6 November 2011

EduScaff.com
123 Washington Street
San Diego, Ca 1111
!61" ###$##%#
&erson '
123 (n) (ddress
(n) Cit), '' 123%#
Dear Sir*+adam,
We are a start u- com-an) .ith an e/treme0) innovative idea in the s-irit of the &resident1s 2No chi0d
0eft behind3 mantra. We, 0i4e )ou, are interested in advancing human4ind b) creating a -ositive societa0
change. We .ou0d 0i4e to invite )ou to -artici-ate on the ground f0oor of a booming business. (fter )ou
revie. the attached business -0an, .e are sure )ou .i00 agree $ this is a once in a 0ife time o--ortunit).
We are see4ing financia0 assistance to gro. this business faster than .e are -ro5ecting. We .ou0d 0i4e to
invest more funds into mar4eting and e/-ose this -roduct to more organi6ations and -eo-0e .or0d .ide.
7n order to do this, .e .ou0d need an additiona0 infusion of ca-ita0. We are -ositive that after revie.ing
our business -0an, )ou .i00 agree, this is a uni8ue mar4et, and )ou are staring at the mouth of the 0ion.
We 0oo4 for.ard to having )ou as -art of our team and to he0- )ou earn a substantia0 dividend on )our
investment. &0ease contact me after revie.ing our business -0an, and 7 .i00 be ha--) to -rovide )ou .ith
our advanced gro.th -0ans and discuss an) 8uestions )ou ma) have.
9er) tru0) )ours,
George Briceno
:eorge ;riceno
&resident*CE<
Emai0, gbceo=eduscaff.com


EduScaff.com
where
Practice makes Perfect


EduScaff.com ;usiness &0an
1.0 Executive Summary
EduScaff.com is a start-up organization whose vision is to create the finest educational software
for adult learners wishing to obtain their General Equivalency Degree (GED. !he software
product has been designed and created by a software engineer" with #$ years in the education
business and who has a specialization in adult education" to meet the needs of this special
customer segment. !he software will be constructive by teaching to a scaffold methodology
which has been proven to be e%tremely successful. !he program was constructed over a period
of & years" tested with hundreds of students" and tailored to the suggestions of numerous
teachers. EduScaff.com was formed as a 'alifornia (.(.'. by founder and owner Geroge )riceno
and will be based in San Diego.
The Market
EduScaff.com has identified three distinct mar*et segments that will be interested in the
software product. !hese segments are the most li*ely consumers of the software. !he
segments are as follows+
School Districts- ,ll states are required to provide education for students that wish to obtain
their GED. !he school districts are often the educational providers and they are interested in
EduScaff.com-s software as they help the students obtain their GED.
Proactive Parents- .arents who are ta*ing an active role in the education of their children will
be loo*ing for aids that they can use at home to help with their child-s learning progress.
,lthough the program is geared towards adult learners" the problems are designed with
simplicity in mind and can be used with any age group.
Agencies- /any states have formed agencies that act as bro*ers to connect service providers
with individuals. !he agencies have generally been formed as a result of a settlement or payout
from a lawsuit (including class action.
.arents are e%pected to purchase only one copy of the program" while the other segments will
generally purchase multiple copies0site licenses and are li*ely to purchase upgrades to
subsequent versions.
The Product
!his software pac*age utilizes the scaffold instruction methodology which is a tool used to
progress the student up a math ladder. !he ob1ectives being to advance the student
incrementally by having him successively master each rung. Each step brings new *nowledge
and challenges based on previous concepts learned. Since each prior step is the foundation for
the ne%t step" previous material is constantly being reviewed.
!here are seven sections to this math methodology. Section one covers the foundational s*ills
such as addition" subtraction" multiplication" division" place values" and rounding numbers.
Section seven covers the top level s*ills" i.e." advanced .ythagorean !heorem" algebra"
statistics" probability" ratio" proportion problems" and many more. Each of the seven sections
concludes with word problems that put into practice the student-s understanding of the section
covered.
,t the onset" the student is tested for his understanding of the most rudimentary math
concepts. !his is accomplished by having him ta*e the Section 2 test. 2f the student obtains a
score of 345 or better" he has a mastery of all the s*ills required for that section and is ready
to advance to the second level. !his procedure continues for each section until he scores less
than 345. ,lthough it is not required that the student achieve a score of 345 at all levels" this
is the recommended score to assure a high learning level.
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EduScaff.com ;usiness &0an
2f the student needs to obtain his GED within a short time frame then the scores for levels 6
through 622 could be dropped to an 745 passing level. !hese guidelines can be tailored to each
student8s needs.
9or the first three sections of the program" the use of a calculator is discouraged. !his is to
stimulate the brain cells and to wean the student from calculator dependency. !his method has
been shown to build the students- self confidence. 9or the remaining four sections the program
provides a calculator for the student to use.
9or the teacher or parent" all activities of the student" or students" are trac*ed. !wo critical
reports are generated. :ne report" in table format" shows the scores of each module that the
student has done and the date in which it was completed. !he second report is a graph
depicting the score vs. the time it too* the student to complete the module. !he higher the
score and the lower the time" the more the student has mastered that module. 2t is a quic*
visual way to see the students- progress.
9or the student" all modules provide visual or audio feed bac*. !hese options are set in the
student profile. 2f the student opts to have feed bac* given" then the feed bac*s will consist of
praises and disapprovals" in either audio and0or te%tual mode. !here are hundreds of different
types of comments built into the program so the student should not become blas; and tune
them out.
Competitive Edge
!here are several companies on the mar*et selling educational products but none that are
tailored to this targeted segment. EduScaff.com will leverage their competitive edge by
incorporating entertainment into their software product" a means of creating interest" building
self-confidence" and eliminating apathy while using the software. !his interest will increase the
amount of time that the students use the software" thereby increasing the effectiveness of the
program. EduScaff.com is convinced that when students en1oy what they are doing they are
li*ely to use the product instead of having to be forced to use it.
!he other advantage that the product has is that all the modules and help files are in two
languages" English and Spanish. !he language is selected in the student profile menu. !his
opens the mar*et up to our <ispanic student cliental and international mar*ets.
Management
EduScaff.com has been founded and will be led by George )riceno. George is a
software engineer and for thirteen years has been teaching adults General Equivalency Degree
sub1ects. <e developed the Scaffold methodology for =eading" >riting and /ath. !he original
concept was done on paper and with E%cel spreadsheets. ?umerous te%t boo*s were
incorporated into the paper version of this teaching methodology. ,fter carefully studying all
aspects of the difficulties the students were having" George developed this methodology and
wrote a computer program that simplified the tas* of teaching and monitoring student
progress. !his was the foundation of his idea to start a software company. <e realized that he
could develop a study aid that would be fun and effective. 2t would be fun because the students
would en1oy using it" it would be effective because it teaches important necessary life s*ills to
individuals and would boost their self-esteem. 2t would be unique because no other product is
tailored to this mar*et segment.
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#.# 'ompany Summary
EduScaff.com is a start-up organization specializing in General Equivalency Degree
(GED software programs. 2t was founded as a 'alifornia based (.(.'. !he company is owned
by its founder George )riceno.
@.4 /ar*et ,nalysis Summary
!he mar*et for General Equivalency Degree software can be segmented into three groups. !he
first is school districts" the second is proactive parents" and the last is agencies charged with
special education administration. Each of the three segments is distinct and will be
communicated with in different ways. !hese three segments have been chosen because they
are the main purchasers of products for adult learners.
!he software industry for individuals who wish to attain their GED is non-e%istent. !here are
numerous software companies that tailor to children and college students but none that are
tailored to GED students. !his leaves the mar*et wide open for our product.
!he ?ational Education ,ssociation supports ma*ing high school graduation a national priority
by investing A#4 billion over the ne%t #4 years to support dropout prevention programs"
starting with A# billion appropriation in 9B47. 2n @444" the ?ational 'enter for Education
Statistics reported that $&.3 percent of all <ispanic #7- through @C-year-olds had not
completed secondary schooling. !his compares with 3.@ percent of >hite" #D.$ percent of
)lac*" and &.C percent of ,sian young adults. ,ccording to these estimates" about $4 percent of
<igh School students drop out before graduation" meaning about one million students fail to
graduate from high school every year. :ver a time span of #4 years that is #4 million students
that have dropped out of school - ripe for GED education and potential customers for our
software program.
$.4 Strategy and 2mplementation Summary
EduScaff.com will leverage their competitive edge of combining education" entertainment" and
the dual language mode within their software product to help them quic*ly gain mar*et share.
,ll of the competitors- software concentrates on providing educational pac*ages for the E-#@
grade groups and college students. >hile this is useful for adult learners" it does not always
motivate them due to the lessons are not developed with them in mind. EduScaff.com has
added entertaining elements into their software" encouraging the students to use the software
and have fun while they learn.
EduScaff.com1s mar4eting strateg) .i00 be to raise visibi0it) of the soft.are -roduct among the
decision ma4ers .ho are in charge of -urchasing aids and instructiona0 too0s. >he cam-aign .i00 be
targeted to reach these -eo-0e*organi6ations so that the) are a.are of the o-tions the) have in
deve0o-ing the s4i00s of individua0s .ith a desire to further their education. ?ast0), the sa0es strateg)
.i00 see4 to convince the -ros-ective customers that there can be significant gains in 0earning
through EduScaff.com1s carefu00) designed soft.are.
$.# 'ompetitive Edge
EduScaff.com-s competitive edge is their clever incorporation of e%tensive reading materials" a
plethora of illustrative e%amples" and videos for each sub1ect area" in the students8 choice of
either English or Spanish" all imbedded in the software. 'urrently" there are several different
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EduScaff.com ;usiness &0an
vendors that are mar*eting educational software" but none that tailor their programs strictly to
the GED students and with the option of selecting another language. !he vast ma1ority of the
educational software available on the mar*et is geared towards the age groups E-#@.
EduScaff.com has developed their software so that all problems are randomly generated and
the li*elihood of obtaining the same set of problems is virtually non-e%istent. !he competitors8
software pac*ages draw their questions from a database. !his limits the amount of questions a
student would receive before commencing to see previously done problems. EduScaff.com
believes in the adage" F.ractice ma*es perfectF" and has developed it-s programs to be
completely random without the use of any databases other than to trac* student progress.
$.@ /ar*eting Strategy
EduScaff.com-s mar*eting strategy reflects their perception of the industry+ that most of the
companies operating today are operated by educatorsG that they ma*e nice productsG but not
many people *now about the products" and overall awareness is poor. !he reality is that so
many prospective customers in the Hnited States are unaware of the different available
products. EduScaff.com will employ an aggressive mar*eting strategy to raise awareness of
their products among customers who are in need of these products" and thereby increasing
software purchases. EduScaff.com will be advertising heavily in various industry 1ournals and
magazines as a proven method of reaching the target audience. !he ads will generate
awareness of EduScaff.com and will lead the customers to EduScaff.com-s website where they
can demo the software. !his strategy is based on the philosophy that you can have a great
product" but if no one *nows about it you are not going to be successful.
, table with sales forecast information and charts displaying monthly and yearly sales
pro1ections follows. ,ll calculations were conservatively done.
C.4 9inancial .lan
!he following sections outline important financial information.
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EduScaff.com ;usiness &0an
Financials
Year 1 Year 2 Year 3
Beginning Balance
Opening Balance Cash & Checking $1,500 $73,352 $168,259
Plus !ne" #ecei$e%
&e' (n$es)*en) $0 $0 $0
&e' +!ans $0 $0 $0
,ales $157,9-1 $217,272 $262,5--
O)her $0 $0 $0
,u.)!)al !ne" #ecei$e% $157,9-1 $217,272 $262,5--
+ess !ne" ,pen)
/irec) C!s)s
/irec) C!s) !0 ,ales $7,087 $9,-28 $12,6-0
O)her C!s)s !0 ,ales $1,077 $1,300 $1,500
&!r*al Opera)ing 12penses
Pa"r!ll an% Pa"r!ll 3a2es, Bene0i)s, 1)c4 $25,-66 $53,-52 $58,000
#en) an% 5)ili)ies $6,000 $6,000 $8,000
,ales an% arke)ing 12penses $6,08- $8,000 $8,000
O)her Opera)ing 12penses $0 $0 $0
O)her Ou)0l!'s
Pa"*en)s !0 3a2es $32,-1- $35,655 $39,93-
/e.) Pa"*en)s $0 $0 $0
Purchase !0 6sse)s $7,961 $8,530 $9,927
O)her $0 $0 $0
,u.)!)al !ne" ,pen) $86,089 $122,365 $138,001
1n%ing Balance
1n%ing Balance Cash an% Checking $73,352 $168,259 $292,802
Pr!0i) Be0!re (n)eres) an% 3a2es
,ales $157,9-1 $217,272 $262,5--
+ess C!s) !0 ,ales 7$8,16-8 7$10,7288 7$1-,1-08
9r!ss argin $1-9,777 $206,5-- $2-8,-0-
+ess Opera)ing 12penses 7$37,5508 7$67,-528 7$7-,0008
Pr!0i) Be0!re (n)eres) an% 3a2es $112,227 $139,092 $17-,-0-
Net Cash Flow $71,852 $9-,907 $12-,5-3
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&.# .ro1ected 'ash 9low
!he following chart and table show pro1ected cash flow.
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!he following page is not part of the business plan.
Functional Areas and Support Systems
Functional Area
7,ee :igure 742- 8
Supporting Inormation Systems
7,ee :igure 146 8
;u*an #es!urce anage*en) ,upp!r) !0 Business Opera)i!ns
arke)ing ,upp!r) C!*pe)i)i$e 6%$an)age
:inance (n)erac)i$e /ecisi!n ,upp!r)
6cc!un)ing 3ransac)i!n Pr!cessing ,"s)e*s
Some of challenges that the company can face are server overload or crash" not enough staff to
handle customer support" and illegal copying of our software.
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