1. REVENUE GENERATION
Main source of income will be from the service we provide to the consumers
One of source of income will be basically through advertisements and commission which we will receive from various vendors.
It is a human psychology to go in the order of chronology in which they see the information in front of them. So the first three spots will always have high priority as compared to others in the list.
So the first three spots will always have rates attached to them in decreasing order. Eg. (Rs. 800, Rs. 600, Rs. 400/month)
In Tie-ups, we will have a 25-30% share of the generated revenue.
Revenue share between telecoms & content providers is generally 70:30

2. Pricing

3. Time Period Considered
Start up Costs
Time Period Considered
Months
Initial Capital investment
Rs. 1,50,000
2 Way – SMS server
Rs. 1500
Web Hosting Costs
Rs. 1200
Dual Computer System
Rs. 60,000
Web Domain Rs
Overheads.
Startup Registration Fee
Rs. 25,000
Total
Rs. 1,50,000 ( rounded)
Seed Fund Required
Rs. 300,000
Assumptions : ( Edit)

4. Projected Revenue Category Expected no. of units on network
Expected annual revenue for stores from advertisements
2011
2012
2013
Retail Brands
300
1000
2500
1,80,000
10,00,000
25,00,000
Restaurant brands
100
500
1200
70,000
6,00,000
14,40,000
Multiplexes/malls 25 75
250
12,500
90,000
3,00,000
Bars/Discotheques 50
40,000
1,20,000
Hotels
1,00,000
4,50,000
7,50,000
Others(Garage, rentals etc)
150
Total
625
2100
4800
4,02,500
22,30,000
51,10,000
Service fees (INR)
2011
2012
2013
25,18,500
1,25,92,500
2,51.85,000

5. Earnings from SMS Time line Subscribers Earning/sms
Total expected earnings
1st year
538380 6p
32,302
2nd year
1,61,514
3rd year
3,23,020
Assumptions: Acc to IMRB the no. of Urban subscribers is mn, it is assumed that .1% of them are expected to use the app in 1st year, .5% in 2nd and 1% in the third , even that for a single time

6. Projected P&L 2011 2012 2013 Income from software services, products
2011
2012
2013
Income from software services, products
29,21,000
1,48,22,500
3,02,95,000
Cost of development
2,50,000
1,00,000
3,00,000
Gross Margin
24,71,000
1,47,22,500
2,99,95,000
Selling and marketing expense
2,09,000
6,18,000
15,00,000
General and administration expenses
17,07,400
88,70,000
1,52,74,000
R&D expense
6,50,000
10,00,000
Total Expenses
22,16,400
1,01,38,000
1,77,74,000
Operating income
2,54,600
45,84,500
1,22,21,000
Depreciation
10,000
50,000
1,50,000
PBIT
2,44,600
45,34,500
1,20,71,000
Interest on borrowings
PBT
Tax (30%)
 73,380
13,60,350
36,21,300
PAT
1,71,220
31,74,150
84,47,900
Net profit margin (%)
5.85%
21.4%
27.88%

7. Projected Cash Flow
2011
2012
2013
Operation Activities
Cash Receipts from customers
29,21,000
1,48,22,500
3,02,95,000
Cash Paid for
Product development
2,50,000
1,00,000
3,00,000
General and admisnitrative expense
17,07,400
88,70,000
1,52,74,000
Other Expense
2,09,000
6,18,000
15,00,000
Interest
Income Taxes
 73,380
13,60,350
36,21,300
R&D expense
6,50,000
10,00,000
Net Cash Flow from operations
1,71,220
31,74,150
84,47,900
Investing Activities
Net Cah flow from Investing activities
Financing Activities
Cash Receipt from
Issuance of stock
Equity + Borrowing
1,50,000
Net Cah flow from Financing activities
Total Cash flow
3,21,220
Beginning Cash flow
34,95,370
Ending Cash Flow
1,19,43,270

8. Projected Balance Sheet
2011
2012
2013
Assets
Cash
3,21,220
34,95,370
1,19,43,270
Computers
4,50,000
9.00,000
9,00,000
Furnitures and fixtures
20,000
1,20,000
3,20,000
Less Accumulated Deprication
10,000
50,000
1,50,000
Net Assets
40,000
1,90,000
3,40,000
Total Assets
8,21,220
46,55,370
1,33,53,270
Liabilities and Owners' Equity
Retained Earnings
  ,71,220
45,05,370
1,32,53,270
Total owners' equity
15,00,000
Loss at startup
Total

9. Exit Strategy
Acquisition/mergers would be the right way to go about it.
Companies like OnMobile with their well-known prowess will be interested in buying us out.
The valuation will be based upon the projections shown in the presentation