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Socialy Business Plan

Socially

617-232-1121

123 Anywhere

Boston, MA

This Business Plan is a DRAFT and Should not be Considered for Investment 1
Confidentiality Agreement

The undersigned reader of SOCIALLYS Business Plan hereby acknowledges that the information provided is
completely confidential and therefore the reader agrees not to disclose anything found in the business plan
without the express written consent of SOCIALLY..

It is also acknowledged by the reader that the information to be furnished in this business plan is in all aspects
confidential in nature, other than information that is in the public domain through other means and that any
disclosure or use of the same by the reader may cause serious harm and or damage to SOCIALLY...

Upon request this business plan document will be immediately returned to SOCIALLY..

This is a business plan. It does not imply an offer of any securities.

__________________________________________________

Signature

__________________________________________________

Printed Name

This Business Plan is a DRAFT and Should not be Considered for Investment 2
Overview

Socially is a geo-storytelling platform that integrates with existing social media channels
enabling users to digitally compile their own life story, revive and enhance their existing
content through categorization and mapping. Socially not only facilitates new connections
through shared experiences but more uniquely allows for lost or missed connections to be
found based on a shared time and place. By interacting with the user, Socially will promote
filling in new native content which will provide a more valuable complete story of their lives.

This Business Plan is a DRAFT and Should not be Considered for Investment 3
Table of Contents

Executive Summary ............................................................................................................... 5


Product Summary................................................................................................................................. 6
Market Summary ................................................................................................................................. 6
Mission ................................................................................................................................................ 6
Three Year Objectives........................................................................................................................... 6
Keys to Success .................................................................................................................................... 7

Socialy: Compile, Build and Share your Lifes Story ................................................................. 7


Product Description.............................................................................................................................. 7

Industry Overview ............................................................................................................... 10


The Market ........................................................................................................................................ 10
Market Needs .................................................................................................................................... 11
Market Trends ................................................................................................................................... 12
Market Growth .................................................................................................................................. 12
Market Segmentation......................................................................................................................... 13

Strategy & Implementation Summary .................................................................................. 14


Management Team ............................................................................................................................ 16
SWOT Analysis ................................................................................................................................... 18
Value Proposition ............................................................................................................................... 18

Competitive Comparison ..................................................................................................... 19


Marketing Plan .................................................................................................................... 20
Promotion Strategy ............................................................................................................................ 20

Financial Forecasts .............................................................................................................. 22


Financial Highlights ............................................................................................................................ 23
Financial Indicators ............................................................................................................................ 24
Revenue Forecast ............................................................................................................................... 25
Projected Profit and Loss .................................................................................................................... 26
Projected Cash Flow ........................................................................................................................... 27
Projected Balance Sheet ..................................................................................................................... 28
Sensitivity Analysis ............................................................................................................................. 29

Appendix............................................................................................................................. 30

This Business Plan is a DRAFT and Should not be Considered for Investment 4
Table of Figures

Figure 1: Organizational Chart ............................................................................................................................ 12


Figure 2: Post-Financing Expenses ...................................................................................................................... 16
Figure 3: Financial Highlights .............................................................................................................................. 17
Figure 4: Financial Indicators .............................................................................................................................. 18
Figure 5: Revenue Forecast................................................................................................................................. 19
Figure 6: Profit & Loss ......................................................................................................................................... 20
Figure 7: Cash Flow ............................................................................................................................................. 21
Figure 8: Wages & Payroll ................................................................................................................................... 22
Figure 9: Balance Sheet....................................................................................................................................... 23
Figure 10: Scenario Analysis ............................................................................................................................... 24
Figure 11: Break-Even Analysis ........................................................................................................................... 25
Figure 12: 12 Month Profit & Loss ...................................................................................................................... 26
Figure 13: 12 Month Cash Flow Statement ........................................................................................................ 27

This Business Plan is a DRAFT and Should not be Considered for Investment 5
Executive Summary
Product Summary

Socialy integrates with Facebook, Twitter and Instagram to compile a visual database of a persons past
social media entries categorized by interests. With the information synchronized, it is placed on an
interactive world map where users may follow their personal story or that of others both in the past and
as it happens. The platform may be used for both General Users and later for companies that are
interested in supporting engagement with their brand, such as a coffee company that is promoting its
fair trade campaign for Guatemala farmers. Socialy will sell focused advertising through platform that is
tailored based on the region users are in, interests, favorite brands and unique experiences that have.
More details are explained in the Products Description.

Market Opportunity

Social networking related sites generate revenues of $8.6 Billion with total profits of $553.2 Million. The
industry has been growing extremely quickly within the past few years with growth of 36.1% from 2009-
14 with the market being pulled from casual social networks. The industry is continued to grow
significantly as companies realize the rewards of connecting with their audience and learning more about
the behavior and preferences of the target demographics.

The global market for SaaS has experienced double digit growth from 2011 to 2012, with the largest share of
industry revenues in the United States and Europe, key countries for expansion. The software industry in the
United States is valued at $189.5Bn according to IBIS World. With key service economies in North America and
Europe and fast paced SaaS growth, Socialy has the opportunity to quickly scale to reach its addressable
market. However, it recognizes the need to focus on gathering data during the pilot in order to better segment
the service users and consumer demographics, as well as better refine the product and pricing elements before
it scales globally to reach these markets. Additional information may be found in the Industry Overview.

Mission

To enhance and complete the social media life story of everyone Online in order to help users make
connections and share experiences with new, old or existing friends and customers.

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Key Objectives

Obtain over 50,000 by the middle of 2015 during the initial commercialization period.
Raise a total of $3.0 M for the Series-A round of financing.
Use the data from Beta testing and commercialization to improve the product.
Maintain integration and synchronization with whatever social media channels are popular.
Expand the platform into all international markets where target social media channels exist.
Complete Phase 2 Development and continue to improve the platform to grow user base.

Keys to Success

Focusing on a strong UI/UX so that users have an enjoyable experience.


To establish Socialy's position as a voice and personality in order to evoke emotional
engagement from its users.
Categorize and map existing entries thereby enhancing and adding value to them for the user.
Revive old social media content and making it relevant again.
Explore your entries to find lost or missed connections using a place in time.
Keeping the massive and compiled data system organized so users are not overwhelmed.
Allowing users to organize and easily search their social media content
Encouraging a place where users may connect, follow and interact.
Enable users to find old friends that they shared an experience with.
Keep friends closer by enabling them to build and share their life story with other friends/family.
Target marketing opportunities based on users identified interests, experiences, and location
Segmented demographic data to help make informed marketing decisions

Socialy: Compile, Build and Share your Lifes Story

Product Description

Current: Core Features


The Socialy home page serves as the master control system to the users social media life story. With a single
click, users may instantly synchronize their social media profiles into the Socialy system. Once historical and
present entries are uploaded and categorized they are placed along an organized timeline and world map. The
full global database on the timeline has many interactive features that both companies and General Users may
engage in:

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For General Users
Organized Library: Entries are automatically organized based on a series of features including category,
time period and location. For instance, users may search for entries that are only affiliated with business,
family, food or life events. There are a total of nine categories, not including a custom search function.
The users may easily search entries based on locations or keywords. The world map places and organizes
entries within specific areas based on either their GPS data or the users custom mapping.

Explore Feature: The explore a location feature enables people to learn about a region quickly and
explore events that happened in it. Users may be interested to learn about the trips their friends have
taken to a certain region, local business reviews, potential places to live or attempt to re-connect with old
friends in a certain geographic area. The explore an entry feature allows users to select an entry by
category/interest and explore other entries at that time within a given radius.

Connect People: Unlike traditional social networks, Socialy uses time and place to identify overlapping
entries and sends out notifications, thus enabling users to find lost or missed connections.

Follow Feature: In addition to viewing ones own history, they can follow other Socialy users such as
friends or family to view their lifes story. This is a key feature of Socialy that will help to keep people
engaged and connected on a more personal level by sharing the same experiences or interests
differentiating it from the immediate posting boards of Facebook, Twitter, Instagram and Blogs but
compiling them all into a fully organized and searchable timeline.

For Companies
Brand Engagement: A major reason for the popularity of social networks is due to the ability for
companies to rapidly, efficiently and affordably interact with their audience. With the ability to do this,
they may make the brand appear to be more human or emotional, which has been shown to increase
loyalty rates and combat negative complaints about the company online.

Consumer Preferences: Online brands may have an increased understanding about their target
demographic and translate this understanding into more effective marketing campaigns. Existing social
media channels provide a good database for information, however, brands may know aggregated
information across all channels and organized so they may investigate about their most loyal customers.

Targeted Advertising: A key revenue driver for Socialy and value added for companies will be the targeted
advertising feature. Brands can build their presence and offer the same highly targeted deals that they
are able to on Facebook with the same database of information available. With access to individual
consumer preferences, location and other relevant information they may effectively target them, increase
their customer base and maximize their advertising budget.

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Vote Map: Vote map is a feature that allows businesses to gather information on their product, service
or campaign. Visitors can vote on specific entries. Once a vote has been added it will provide basic
information on the voter including and limited to city of origin and username. This allows the
administrator to gather useful demographic information.

Phase II Development: Additional Features


Entry Linking (Chain Links): This is a way to include other peoples entries with your own. Imagine you
are reading through your story board and you come across an entry that relates to yours or you want to
link it to yours for reference, simply click the link button and it prompts a screen that will show your
entries. Socialy will suggest entries based on the keywords, but you can also perform a search on all your
entries to find where you want to add the link. When you have found it, you just click on the story and it
will add it as a link. You can add as many links to as many stories as you like. The author of the linked
entry will receive a notification and an email to help further engagement. Unlike the traditional share"
this creates a more valuable lasting connection between users.

Daily Trends: Every day there will be a daily trends window that will allow viewers to see what trending
using keywords generated from daily news is. Unlike other platforms we will search your previously
written content and suggest relevant entries. This is a great way to revive old entries and bring value to
them and increase followers.

Map Room: The map room is a collection of geo-stories grouped around popular, or trending topics (i.e
Travel Diaries, Ice Bucket Challenge, etc) where like-minded users have a place to engage. It provides a
unique marketing opportunity for businesses to get involved by targeting special interest groups.

I-Frame: Provide code snippets so people can i-frame the map and categories into their website or blog.

This Business Plan is a DRAFT and Should not be Considered for Investment 9
Industry Overview

All research in the business plan comes from IBIS World Industry Research and Pew Research Center.

The Social Networking Sites (SNS) industry is benefiting from an increasing consumer base, as more Americans
conduct services online. Additionally, SNS attract a growing share of advertising revenue, as they measure the
effectiveness of advertising and leverage significant consumer information to accurately target such
advertising, thus boosting its effectiveness. As the industry leverages its consumer information, revenue is
expected to grow at a 36.1% annualized five-year rate to $8.6 billion in 2014. This growth includes a 27.6%
spurt in 2014 due to increasing disposable income, which is expected to boost consumer spending on
discretionary services like subscriptions or add-ons.

The Market

Five years ago, SNS were much smaller and unable to monetize their services. During this time, the
industry invested significantly in targeted advertising services and consumer controls. As the number of
subscribers grew, the amount of revenue per subscriber also increased, while costs per subscriber
contracted. Industry profit, as measured by earnings before interest and taxes, is expected to expand to
6.2% of industry revenue in 2014.

As profit and the amount of time spent on SNS escalate, new companies are looking to enter the industry.
The number of enterprises is expected to grow rapidly, as opportunities for growth present themselves
on new platforms and devices, with increasingly specialized networking sites. As more SNS develop ways
to leverage their consumer base, they will generate higher consumer and advertising revenue. Growing
advertising spending and disposable income growth are expected to benefit the industry. However, the
industry will be growing from a higher base in the next five years, and SNS are expected to focus on
expansion in Asia and Latin America. Consequently, revenue is projected to grow at a slower average
22.6% rate per year to $23.9 billion in 2019.

The vast amount of personal information shared on SNS has generated privacy issues, which have been
exacerbated by revelations on government tracking of personal information on these networks. The
growing practice of data licensing, through which operators themselves make their data available to

This Business Plan is a DRAFT and Should not be Considered for Investment 10
industry partners, as well as the notoriously shadowy privacy settings of major industry players, are
triggering concerns among users. This growing crisis of confidence is expected to compel industry players
to strengthen their privacy protection regulations in the coming years.

Market Needs

The main market problem is that


social media websites focus too
much on short-term entries
rather than viewing the entire
social media profile as a timeline
or life story. While some social
media platforms such as
Facebook do have a timeline
feature, they do not promote or
focus on the entire timeline and
it becomes difficult for users to
search an organized database
based on historical events.
Socialy solves this by categorizing
entries and providing a robust
search function. With the growth
of these social platforms they
have in effect become life
journals and Socialy has
recognized and is ready to
capitalize on this. Socialy
dramatically simplifies that
timeline experience for users by
constructing a platform that
integrates social media channels
over the entire timeline of ones
life through geo-storytelling.

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Market Trends

Data from the Pew Research Center demonstrates that 58% of Americans now own a smartphone, with
42% owning an e-reader. These trends are rapidly increasing with mobile web usage now surpassing
desktop in web viewing. Socialy has developed a mobile web application that is more robust than other
iOS and Android applications in its features and performance. The smartphone usage is expected to
continue its upward growth as cell phones distributed on the market are replacing traditional phones and
are equipped with the ability to run sophisticated web applications.

Market Growth

This industry is quickly expanding as a share of the economy. In the 5 years to 2019, industry value added,
which represents its contribution to the economy, is projected to grow at a 26.9% annualized rate.
Meanwhile, GDP growth is forecast to increase at a 2.7% average rate per year over the same ten-year
period.

A shift toward spending online time at social networking sites (SNS) is fueling industry revenue.
Additionally, companies in this space are generating an increasing amount of advertising revenue per user
by developing targeted advertising platforms and tools to measure the effectiveness of advertising. Not
only are advertisers following users in a shift toward digital advertisements, but also, companies are
increasingly using SNS to reach out to General Users, further strengthening the bond between the
industries.

New technologies are also helping to stimulate industry growth. Smartphones and tablets are the latest
consumer devices on which the industry is developing social networking platforms. Consequently, as the
penetration of such mobile devices increases, industry operators also stand to gain. In response to rapid
industry growth and expanding
opportunities, the number of
firms in the industry is forecast
to grow at a 39.0% annualized
rate to 28,224 in the 5 years to
2019.investments by SNS. As a
result, the average company
profit is projected to increase
only slightly in the next five
years.

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Forward Projections of Social Networking Sites (Revenue)
35,000.00

30,000.00
Revenue $ Millions USD

25,000.00

20,000.00

15,000.00

10,000.00

5,000.00

0.00
2015 2016 2017 2018 2019 2020
Year

Market Segmentation

Most adults use social media websites, with a slightly large shift towards young adult females. However,
the platform attracts the mass market demographic It may be slightly more valuable for the 30 -49
demographic that has compiled significant life experiences across the world and over a long period of
time. Given the massive amount of data uploaded to social networking sites, it provides significant
capability for individuals of all age groups and demographics to benefit from the platform.

Ages 18-29: This age group is focused around those that have the highest probability of using social media,
generally in college with a smaller than average income given their focus on education or entry level job
positions. They will likely use Socialy to communicate with their friend networks, share vacation photos
and engage with their favorite brands and will be the most likely to adopt Instagram, Pinterest and other
new social networking sites..

Ages 30-49: This young professional demographic will likely be climbing the workforce ladder and have a
larger income. However, they will likely be most focused around using Facebook, as over 90% of the 200
people on Instagram are under the age of 35 according to Business Insider. This age group will likely be
very interested in keeping in touch with their high school classmates, college friends and co-workers that
travel for work or leisure and have compiled a database of experiences they can share.

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Ages 50-64: This age group is growing but use Facebook less often and are very unlikely to use other social
networking platforms. They will likely be using the platform to keep in touch with their family, particularly
children. Some with higher incomes may travel and be active with their friend networks, however are not
expected to have a high degree of rapid adoption or be significantly technology savvy, however time spent
by this group on social spent on social media is increasing and largely overlooked. Preliminary work
through early advertising on Facebook and in beta show that Plasters model appeals to them creating a
largely untapped market opportunity.

Strategy & Implementation Summary

The strategy of Socialy is not to be another social networking site, but to integrate and simplify the
existing ones and help users to construct a timeline that works with the latest and most popular social
networking platforms. This system will enable users to stay continually engaged with the platform,
regardless of the individual performance of any one social networking website.

The platform will begin by advertising on existing social media channels to encourage sign-up on Socialy.
It will also focus on public relations to gain massive media attention on blogs, national media outlets and
other content. In addition to
paid channels, it will also
take-on more guerilla
strategies applied towards
converting users through the
existing social media
platforms using techniques
such as content generation
and event promotion.

Revenue Model

Socialy will be completely


free for users, but will sell
additional features and
advertising. With access the
users complete social media
profiles, the company may
construct a complete
database of their

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product/brand preferences, geographic location and psychographic details that are vital drivers for
detailed customer experience.

CSV Uploader This feature will allow businesses to upload a CSV to allow for large data sets to
be added to their map. They will also be able to create data sets by manually adding them into a
browser-based table. - $9.99 per download
GeoAds (Activated once we reach 5000 users) This allows us to advertise business accounts.
The initial functionality will generate a new category on your map called GeoAds. Anything
moved in this category will be shared to all Plaster members. We will provide a maximum view
threshold so that when the business reaches the view threshold they will need to purchase more
page views. This will be monitored with analytics that the business can view. Price per 1,000
impressions

Phase II

Vote Maps When activated will allow businesses to create entries to vote on. Once someone
votes their avatar will show up on the map from the town they associated their account with. It
will not show their actual address but will give the businesses location and number based
demographics. FREE
Promoted Pins This widget will allow businesses to promote deals to their map. Any follower
of the business will show a promoted pin that will let them know of any promotions or deals in
that location. This will also work with the explore button for people that arent following the
business. Price per 1,000 impressions
Social CRM Businesses will be able to manage territories, and sales staff privately. Redefine the
way you achieve your marketing and sales goals my mapping and managing all your leads. Keep
track of your staff and entry updates by adding one entry that everyone can follow to simplify
the on-going messaging. - $9.99 Per Download
Privacy Scraper Allow the user to put specific categories or sub-categories to private, which will
convert all entries under the hierarchy to private. Have an option to convert all entries into
private allowing provisions for specific followers to see certain library categories. Free
Collaboration Activate users to share their mapped data with yours. Set provisions to add them
to specific categories, sub-categories or all. This is a great way to add more value to the map,
easily add more content to your account, and see what your collaborators are doing as a
management tool. - ($2.99 - up to 5 collaborators); ($9.99 - up to 25 collaborators)

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Management Team
John Doe Chief Executive Officer

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Susan Miller Chief Operating Officer


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Kevin Jones -Chief Financial Officer


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Adrian Wilcourt Legal Compliance


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Organizational Chart

Adrian
Board/Investors
Wilcourt/Legal

John Doe/CEO

Susan Kevin
Miller/COO Jones/CFO

Marketing
Sales Director Accounting
Director

Sales Reps Collections

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SWOT Analysis

Strengths

A very powerful UX/UI delivering the customer a powerful and unique visual experience.
Solving the key problem of an inability to compile and organize historical social media entries.
Integrating all social media entries from the top social networks into a centralized location.
Providing users the ability to view and search historical and present information based on
interests shared with friends and family.
A defensible market position once a mass amount of users have been acquired.
Web based and mobile platforms have already been completed and are ready for scaling.
Beta testing is in the periods of finalization with good market support from the trail users.

Weaknesses

It may be initially challenging to quickly alert the masses about the Socialy platform.
Keeping up with traffic will require a continual improvement of technology used.
Social networking moves fast and the company must keep up with changing trends.
There are few barriers to entry initially and the company should focus on being defensible.

Opportunities

The social media and SaaS markets are both growing far above any other industries.
The profit margins are extremely high compared to traditional economy sectors.
The company offers many opportunities for revenue generation beyond advertising.
Advertising has proven an extremely profitable revenue stream on social media platforms.
Social media adoption is increasing globally with internet penetration rates.

Threats

The rapid changing technologies may create a different landscape in 5- 10 years.


The platform may be at risk if an existing network provides the same integration.
Advertisers are conscious about their spending and budgets are becoming competitive.
Individual consumer preferences are rapidly changing and platforms must be able to adapt.

Value Proposition

The key value proposition that Socialy offers is the ability to create a synchronized database of present
and historical entries across the most popular social networks. This enables users compile, organize and

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search a historical collection of their daily lives with minimal effort. They can then use this to build on
existing relationships and create new ones.

Competitive Comparison

Socialy is an innovative technology unlike any existing options available, as there are not currently any
websites that specialize in synchronizing social media entries and organizing them in a valuable way for
General Users. While some social media platforms provide a historical database of entries, such as the
Facebook timeline feature, all do not enable interaction and specialization around this feature. Therefore,
no current solution exists that enables all these functions to be solved on a single platform. Socialy goes
beyond this to provide a unique opportunity for users to explore locations based on time and entries
based on time or place. Socialys' strength is its ability to access immediate content through its users
existing social media entries -thereby utilizing and adding value to the publics already expended efforts.
Similar companies and features include:

Findery: This competitor focuses on newly created public notes about places left by others including
stories about a places history, favorite things, memories, what is coming and little known facts. While
Socialy has all of these features, Findery does not have the same ability to synchronize based on its data
scraping algorithm to effectively create the users full social media life story.

Stellar Stories: This application is a storytelling app which enables users to create photo and video stories
with an emphasis on design. It has a minimalist artistic feel that enables users to upload well designed
photos that are then categorized and shared publically. This application is more of a public art network
than an aggregated personal timeline to share with friends and family. Moreover, its emphasis on design
and art results in a lack of information depth compared to Socialy.

Storehouse: This application operates on a similar foundation of Socialy of sharing life events and
storytelling, however it provides less information and requires more effort by encouraging casual creators
to entry their picture and videos to design a narrative. It is essentially a flow of pictures and videos, but
organized in a method that tells a story with captions and brief text.

Swarm: This application focuses more on sharing daily activity and location based networking with
existing friends that are close by through a "check-in" to location feature. This features allow the ability
to see friends that are close by and to share insights about life such as how frequently a person goes out
to the gym or friends that they have been socializing with. It is a smaller more narrowly focused version
of Socialy. This same application is very similar to Social Maps, another similar competitor. Socialy creates
a deeper level of engagement between users by allowing them to "check-in" to entries themselves

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Marketing Plan

The marketing efforts of Socialy will focus on three core elements, which include acquiring, converting
and retaining its users. Each phase will play a role into the marketing process and will be built upon and
supported by the marketing budget and targeted promotional strategies. The acquisition of users through
and increasing rise in brand awareness will not only fuel an initial base of users but also serve to curb any
competition growing into the space.

Conversion of these users for the purposes of advertising and promotions of goods and services can be
leveraged through the metrics of subscribers entries and interests. Monetization opportunities in
targeting specific demographics identified by the content of their entries, the behavior in their social
media life and by their changing geography can be built to suit commercial needs.

Retention of users will be a byproduct of consistent engagement both from a content and functionality
perspective. Infusing the platform with relevant content, and then drawing users to this content with
their own social media life will increasingly bind users to the platform as a lifestyle tool. Increasing the
functionality of the site through robust programming as well as integrating all successful media platforms
in order to maximize reach and methods of sharing.

Promotion Strategy

Public Relations

The company will acquire an experienced public relations professional or company with experience in this
marketplace and brand. The objectives will be to reinforce brand with increased awareness, interest and
stimulating demand. The cultivation of a favorable coverage in a blend of media may include articles,
interviews, press releases and stories of endorsement. The effective monitoring of Socialys image in
addition to the growth of goodwill and management of crisis protocol will provide essential support for
ongoing marketing efforts.

Targeted Advertising

A unified promotional strategy will co-ordinate efforts, maximize results and minimize the cost of user
acquisition. Potential media targeted would be online news media, respected bloggers, podcasters,
micro publications, Online video, news releases, sponsors and advocacy programs. Facebook and Google
Ad word campaigns as well as event marketing with trade shows, seminars and targeted influencers;
brand advocates would support and add to increased awareness. Influencers of groups and
organizations will leverage their channels to reach target markets, special interest groups, opinion
leaders and trade associations. These grass-root adoption approaches, streamlined with more tactical
larger scale campaigns, will be a significant entry point in user acquisition.

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Strategic Alliances

Strategic alliances may include engaging other social media networks that will enable users to very easily
integrate their existing accounts and content into Socialy. By continually bringing added value in function,
Socialy would encourage usage for the existing social media platforms involved. Such alliances could lead
to increased adoption of the platform as a channel in acquiring referrals, potentially tied to a cost per
acquisition program. Build alliances with established companies that will benefit synergistically through
Socialys unique offering and user base. Examples may include; papr.il, shutterfly, and blurb.com. Enhance
the user experience by creating widgets that facilitate content creation, categorizing, and mapping.
Examples may include; browser extensions, and wordpress plug-ins, Alliances with companies that are
eager for content such as Paper.il, shutterfly,webshots or synergistic relationships with blog sites such as
Blogger or Wordpress.

21
Financial Forecasts

The financial forecast are assumptions driven from comparable ratios in the Internet Services sector according
to data from NYUs website from data collected from S&P Capital IQ, Bloomberg and the Fed. Assumptions are
also made from IBIS World report and the Pew Industry research into social media spending. Conversion rates
and revenue per user is listed in the three year Profit & Loss statement.

With many of the functions being launched in Phase II, the company expects a most revenues to be generated
at the initiation of Phase II. The financials assume initiation of Phase II in the third quarter of 2015. A full
breakdown of revenue forecasts may be found in the appropriate revenue forecast section. Fixed expenses are
expected to remain relatively low compared to other industries with a profit margin between 15-25% (with
variation accounting for early or later than expected launch of Phase II services located in the sensitivity analysis
section).

Startup Expenses Startup Liabilities


Platform Enhancements 25,000 Liabilities and Capital
Start-up Marketing Materials 350,000 Current Borrowing $0
New Staff Training 15,000 Long-Term Liabilities $0
Start-up Travel Expenses 20,000 Accounts Payable $0
Hosting Expenses 1,500 Other Current Liabilities $0
Due Diligence (Legal/Professional) 20,000
Total Startup Expenses $ 431,500
Startup Investments
Planned Investment
Startup Assets
Owner $0
Cash on Hand 1,453,500 External Sources 2,000,000
Programming Expenses 100,000 Total Planned Investment $2,000,000
Bug Fixes/Software Enhancements 15,000
Total Startup Assets $ 1,568,500 Startup Funding
Total Liabilities $0
Total Requirements
Total Planned Investment 2,000,000
Total Startup Expenses 431,500 Total Funding $2,000,000
Total Startup Assets 1,568,500
Total Requirements $ 2,000,000

22
Financial Highlights

The financial highlights are how the company is projected to perform over the course of the next twelve months
and three to five years. The projections are based on comparable facilities based on estimated revenue range
and size, along with geographic location. We have assumed that for at least the first six-months of post-money
financing that expenses may be greater than revenues while the company invests into growth.

Financial Highlights ($000)


Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Year 2 Year 3
Revenue 0 0 0 0 0 0 0 0 0 57 88 136 280 3182 7411
Gross Margin 0 0 0 0 0 0 0 0 0 45 70 109 225 2576 5982
Operating Expense 40 40 40 40 40 40 40 40 40 40 40 40 478 717 1076
EBITDA (68) (68) (68) (68) (68) (68) (68) (68) (68) (22) 2 41 (590) 1188 3901
Net Profit (68) (68) (68) (68) (68) (68) (68) (68) (68) (23) 2 41 (597) 1062 3504

Gross Margin/Revenue N/A N/A N/A N/A N/A N/A N/A N/A N/A 80% 80% 80% 80% 81% 81%
EBITDA/Revenue N/A N/A N/A N/A N/A N/A N/A N/A N/A -40% 3% 30% -211% 37% 53%
Net Profit/Revenue N/A N/A N/A N/A N/A N/A N/A N/A N/A -41% 2% 30% -213% 33% 47%

Net Cash Flow (68) (68) (68) (68) (68) (68) (68) (68) (68) (22) 2 41 (590) 1070 3511
Cash Balance - Ending 1386 1318 1250 1182 1114 1046 979 911 843 820 823 864 864 1934 5445

Projected Operating Highlights By Year ($000) Projected Revenues By Year ($000)


8000 8000
7000 7000
6000
6000
5000
5000
4000
3000 4000

2000 3000
1000 2000
0
1000
(1000) Year 1 Year 2 Year 3
0
Revenue Gross Margin EBITDA Net Profit Year 1 Year 2 Year 3

Projected Cash Flow By Year ($000) Projected Net Income By Year ($000)
6000 4000

5000 3500
3000
4000
2500
3000
2000
2000 1500

1000 1000
500
0
Year 1 Year 2 Year 3 0
(1000) Year 1 Year 2 Year 3
(500)
Net Cash Flow Cash Balance (1000)

23
Financial Indicators

The company believes that it can reach an increasing net profit margin due to economies of scale. Through
investments in capital expenditures, it may decrease its general and administrative expenses. Financial
indicators are based upon the performance of comparable companies in the same asset class, revenue
range and age both from publicly available information and our internal database of research.

Financial Indicators
Year 1 Year 2 Year 3
Profitability %'s:
Gross Margin 80% 81% 81%
Net Profit Margin -213% 33% 47%
EBITDA to Revenue -211% 37% 53%
Return on Assets -21% 27% 47%
Return on Equity -43% 43% 59%

Financial Indicators
100%

50%

0%
Year 1 Year 2 Year 3
-50%

-100%

-150%

-200%

-250%

Gross Margin Net Profit Margin EBITDA to Revenue Return on Assets

24
Revenue Forecast

Revenue Forecast
Year 1 Year 2 Year 3
Revenue Forecast
CSV Uploader 1,800 521,705 939,069
Promoted Pins 10,821 74,673 108,276
Geo Advertisements 189,369 2,253,061 5,632,652
Social CRM 77,989 332,356 731,182
Total Revenue $ 279,979 $ 3,181,794 $ 7,411,179

Direct Cost of Revenue


General COGS $ 55,257 $ 605,793 $ 1,428,786
Other $ - $ - $ -
Subtotal Cost of Revenue $ 55,257 $ 605,793 $ 1,428,786

Revenue By Year
8000

7000

6000

5000

4000

3000

2000

1000

0
Year 1 Year 2 Year 3

Year 1 Revenue Monthly


160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

25
Projected Profit and Loss

The profit and loss assume that the company will have margins at a comparable level to companies within
its industry. While management might not have incurred exactly for future operating expenses, they have
been assumed to reasonable reach comparable profit margins to industry comparables. The management
will operate with minimal expenditures to focus on R&D and commercialization expenses until the
company has sufficient income to support dividend distribution.

Pro Forma Profit and Loss


Year 1 Year 2 Year 3
Membership Level 139,990 1,060,598 1,543,996
Conversion Rate 10% 15% 24%
Estimated Retained/Active Members 13,999 159,090 370,559
Revenue $ 279,979 $ 3,181,794 $ 7,411,179
Subtotal Cost of Revenue $ 55,257 $ 605,793 $ 1,428,786
Total Cost of Revenue $ 55,257 $ 605,793 $ 1,428,786

Gross Margin $ 224,723 $ 2,576,001 $ 5,982,393


Gross Margin/Revenue 80% 81% 81%

Expenses
Marketing & Advertising $ 192,000 $ 288,000 $ 432,000
Bank & Merchant Fees $ 1,200 $ 1,800 $ 2,700
Web Design/Development Contractors $ 48,000 $ 72,000 $ 108,000
Call Center Support $ 72,000 $ 108,000 $ 162,000
Conferences & Seminars $ 6,000 $ 9,000 $ 13,500
Customer Discounts and Refunds $ 72,000 $ 108,000 $ 162,000
Dues and Subscriptions $ 3,600 $ 5,400 $ 8,100
Search Engine Optimization $ 12,000 $ 18,000 $ 27,000
Insurance (Liability and Property) $ 3,600 $ 5,400 $ 8,100
Legal and Professional Fees $ 3,000 $ 4,500 $ 6,750
Office Expenses & Supplies $ 1,200 $ 1,800 $ 2,700
Postage and Delivery $ 600 $ 900 $ 1,350
Rent (on business property) $ 1,800 $ 2,700 $ 4,050
Office Expenses & Supplies $ 600 $ 900 $ 1,350
Rent of Vehicles and Equipment $ - $ - $ -
Public Relations $ 18,000 $ 27,000 $ 40,500
Telephone and Communications $ - $ - $ -
Travel $ 6,000 $ 9,000 $ 13,500
Utilities $ 480 $ 720 $ 1,080
Trade Shows $ 36,000 $ 54,000 $ 81,000
Total Operating Expenses $ 478,080 $ 717,120 $ 1,075,680
Wages & Payroll $ 336,175 $ 671,125 $ 1,006,075
Depreciation, Amortization & Taxes $ 7,667 $ 125,676 $ 396,964
Net Income $ (597,199) $ 1,062,080 $ 3,503,674
Net Income/Revenue -213% 33% 47%

26
Projected Cash Flow

Pro Forma Cash Flow


Year 1 Year 2 Year 3
Beginning Cash Balance $ 1,453,500 $ 863,968 $ 1,933,715
Cash Inflows
Income from Sales $ 279,979 $ 3,181,794 $ 7,411,179
Accounts Receivable $ - $ - $ -
Total Cash Inflows $ 279,979 $ 3,181,794 $ 7,411,179

Cash Outflows

Investing Activities
New Fixed Assets Purchases $ - $ - $ -
Inventory Addition to Bal.Sheet $ - $ - $ -
Cost of Sales $ 55,257 $ 605,793 $ 1,428,786

Operating Activities
Salaries and Wages $ 336,175 $ 671,125 $ 1,006,075
Fixed Business Expenses $ 478,080 $ 717,120 $ 1,075,680
Taxes $ - $ 118,009 $ 389,297

Financing Activities
Loan Payments $ - $ - $ -
Line of Credit Interest $ - $ - $ -
Line of Credit Repayments $ - $ - $ -
Dividends Paid $ - $ - $ -

Total Cash Outflows $ 869,511.57 $ 2,112,047.18 $ 3,899,838.00


Cash Flow $ (589,532.37) $ 1,069,747.13 $ 3,511,341.13
Operating Cash Balance $ 863,967.63 $ 1,933,714.76 $ 5,445,055.89
Ending Cash Balance $ 863,967.63 $ 1,933,714.76 $ 5,445,055.89

Year 1 Cash
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
-
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

(200,000)

Net Cash Flows Cash Balance

27
Projected Balance Sheet

The projected balance sheet assumes that there are no dividend draws and all cash flow is re-invested
back into the company at the end of the year. The balance sheet does not assume any line of credits or
account receivables that are outstanding at the end of the year and that the company will have paid off
all liabilities. Likewise, it assumes that all accounts will pay within thirty-days and there will be no
delinquency of payments.

Pro Forma Balance Sheet


Year 1 Year 2 Year 3
Assets
Current Assets
Cash $ 863,968 $ 1,933,715 $ 5,445,056
Other Current Assets $ 431,500 $ 431,500 $ 431,500
Total Current Assets $ 1,295,468 $ 2,365,215 $ 5,876,556

Long-term Assets
Long-term Assets $ 1,568,500 $ 1,568,500 $ 1,568,500
Accumulated Depreciation $ 7,667 $ 15,333 $ 23,000
Total Long-term Assets $ 1,560,833 $ 1,553,167 $ 1,545,500
Total Assets $ 2,856,300 $ 3,918,381 $ 5,968,555

Liabilities and Capital


Current Liabilities
Accounts Payable $ - $ - $ -
Current Borowing $ - $ - $ -
Other Current Liabilities $ - $ - $ -
Subtotal Current Liabilities $ - $ - $ -

Long-term Liabilities $ - $ - $ -
Total Liabilities $ - $ - $ -

Common Stock $ 2,000,000 $ 2,000,000 $ 2,000,000


Retained Earnings $ (597,199) $ 464,881 $ 3,968,556
Total Capital $ 1,402,801 $ 2,464,881 $ 5,968,556
Total Liabilities and Capital $ 1,402,800 $ 2,464,881 $ 5,968,555

28
Sensitivity Analysis

Best Case Scenario (Revenue Increase by 15% )


Year 1 Year 2 Year 3
Revenue $ 321,976 $ 3,659,063 $ 8,522,856
Cost of Goods Sold $ 63,545 $ 696,662 $ 1,643,104
Gross Margin $ 258,431 $ 2,962,401 $ 6,879,752
Gross Margin/Revenue 80% 81% 81%
Operating Expenses $ 478,080 $ 717,120 $ 1,075,680
Wages & Payroll $ 336,175 $ 671,125 $ 1,006,075
EBITDA $ (555,824) $ 1,574,156 $ 4,797,997
EBIT/Revenue 104% 18% 12%

Worst Case Scenario (Revenue Decrease by 15% )


Year 1 Year 2 Year 3
Revenue $ 237,982 $ 2,704,525 $ 6,299,502
Cost of Goods Sold $ 46,968 $ 514,924 $ 1,214,468
Gross Margin $ 191,014 $ 2,189,601 $ 5,085,034
Gross Margin Revenue 80% 81% 81%
Operating Expenses $ 478,080 $ 717,120 $ 1,075,680
Wages & Payroll $ 336,175 $ 671,125 $ 1,006,075
EBITDA $ (623,241) $ 801,356 $ 3,003,279
EBIT/Revenue 141% 25% 16%

Revenue
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
Year 1 Year 2 Year 3

Best Case Most Likely Worst Case

29
Appendix
Year 1 Profit & Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 56,597 $ 87,536 $ 135,847
Subtotal Cost of Revenue $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 11,158 $ 17,272 $ 26,827
Total Cost of Revenue $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 11,158 $ 17,272 $ 26,827

Gross Margin $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 45,439 $ 70,263 $ 109,020


Gross Margin/Revenue N/A N/A N/A N/A N/A N/A N/A N/A N/A 80% 80% 80%

Expenses
Marketing & Advertising $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000
Bank & Merchant Fees $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100
$
Web Design/Development Contractors 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000
Call Center Support $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000
Conferences & Seminars $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Customer Discounts and Refunds $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000
Dues and Subscriptions $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300
Search Engine Optimization $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Insurance (Liability and Property) $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300
Legal and Professional Fees $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250
Office Expenses & Supplies $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100
Postage and Delivery $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50
Rent (on business property) $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150
Office Expenses & Supplies $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50
Rent of Vehicles and Equipment $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Public Relations $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500
Telephone and Communications $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Travel $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Utilities $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 $ 40
Trade Shows $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000
Total Operating Expenses $ 39,840 $ 39,840 $ 39,840 $ 39,840 $ 39,840 $ 39,840 $ 39,840 $ 39,840 $ 39,840 $ 39,840 $ 39,840 $ 39,840

EBIT $ (39,840) $ (39,840) $ (39,840) $ (39,840) $ (39,840) $ (39,840) $ (39,840) $ (39,840) $ (39,840) $ 5,599 $ 30,423 $ 69,180
EBIT/Revenue N/A N/A N/A N/A N/A N/A N/A N/A N/A 10% 35% 51%

30
Year 1 Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cash Received

Revenue
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 56,596.8 $ 87,535.5 $ 135,846.8
New Current Borrowing
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
New Long-Term Liabilities
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sale of Other Current Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sale of Long-Term Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
New Investment Received
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Subtotal Cash Received
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 56,596.8 $ 87,535.5 $ 135,846.8

Expenditures

Expenditures from Operations


$ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 79,012.3 $ 85,126.7 $ 94,681.4
Subtotal Spent on Operations
$ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 79,012.3 $ 85,126.7 $ 94,681.4

Additional Cash Spent

Current Borrowing Repay


$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
L-T Liabilities Principal Repay
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Purchase Inventory
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Purchase Long-Term Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Dividends
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Cash Spent
$ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 67,854.6 $ 79,012.3 $ 85,126.7 $ 94,681.4

Net Cash Flow


$ (67,854.6) $ (67,854.6) $ (67,854.6) $ (67,854.6) $ (67,854.6) $ (67,854.6) $ (67,854.6) $ (67,854.6) $ (67,854.6) $ (22,415.4) $ 2,408.9 $ 41,165.4
Cash Balance
$ 1,385,645.4 $ 1,317,790.8 $ 1,249,936.3 $ 1,182,081.7 $ 1,114,227.1 $ 1,046,372.5 $ 978,517.9 $ 910,663.3 $ 842,808.8 $ 820,393.3 $ 822,802.2 $ 863,967.6

31