Download - QQwikpay Business Plan_v1
-
8/3/2019 QQwikpay Business Plan_v1
1/36
Business plan and summary
skype: qqwikpay
mailto:[email protected]:[email protected] -
8/3/2019 QQwikpay Business Plan_v1
2/36
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _______________ in thisbusiness plan is confidential; therefore, reader agrees not to disclose it without the express writtenpermission of _______________.
It is acknowledged by reader that information to be furnished in this business plan is in all respectsconfidential in nature, other than information which is in the public domain through other meansand that any disclosure or use of same by reader may cause serious harm or damage to
_______________.
Upon request, this document is to be immediately returned to _______________.
___________________Signature
___________________Name (typed or printed)
___________________Date
This is a business plan. It does not imply an offering of securities.
-
8/3/2019 QQwikpay Business Plan_v1
3/36
Table of Contents
1.0 Executive Summary ............................................................................................................................... 1Chart: Highlights .................................................................................................................................. 1
1.1 Objectives .......................................................................................................................................... 11.2 Mission ............................................................................................................................................... 11.3 Keys to Success .................................................................................................................................. 2
2.0 Company Summary ............................................................................................................................... 22.1 Company Ownership ......................................................................................................................... 22.2 Start-up Summary .............................................................................................................................. 2
Table: Start-up ..................................................................................................................................... 2
2.3 Company Locations and Facilities ..................................................................................................... 23.0 Services .................................................................................................................................................. 3
3.1 Service Description ............................................................................................................................ 33.2 Competitive Comparison ................................................................................................................... 33.3 Sales Literature .................................................................................................................................. 3
4.0 Market Analysis Summary .................................................................................................................... 3Table: Market Analysis ........................................................................................................................ 4Chart: Market Analysis (Pie) ............................................................................................................... 5
4.1 Target Market Segment Strategy ....................................................................................................... 54.1.1 Market Needs .............................................................................................................................. 54.1.2 Market Trends ............................................................................................................................. 64.1.3 Market Growth ............................................................................................................................ 6
4.2 Service Business Analysis ................................................................................................................. 64.2.1 Business Participants .................................................................................................................. 74.2.2 Competition and Buying Patterns ............................................................................................... 8
4.2.3 Main Competitors ....................................................................................................................... 85.0 Web Plan Summary ............................................................................................................................. 105.1 Website Marketing Strategy ............................................................................................................ 105.2 Development Requirements ............................................................................................................. 10
-
8/3/2019 QQwikpay Business Plan_v1
4/36
Table of Contents
Table: Personnel ................................................................................................................................. 16
8.0 Financial Plan ....................................................................................................................................... 168.1 Start-up Funding .............................................................................................................................. 17
Table: Start-up Funding ..................................................................................................................... 17
8.2 Break-even Analysis ........................................................................................................................ 17Table: Break-even Analysis ............................................................................................................... 18Chart: Break-even Analysis ............................................................................................................... 18
8.3 Projected Profit and Loss ................................................................................................................. 18Table: Profit and Loss ........................................................................................................................ 19Chart: Profit Monthly ......................................................................................................................... 19Chart: Profit Yearly ............................................................................................................................ 20Chart: Gross Margin Monthly ............................................................................................................ 20Chart: Gross Margin Yearly ............................................................................................................... 21
8.4 Projected Cash Flow ........................................................................................................................ 21Table: Cash Flow ............................................................................................................................... 22Chart: Cash ......................................................................................................................................... 23
8.5 Projected Balance Sheet ................................................................................................................... 23Table: Balance Sheet .......................................................................................................................... 24
8.6 The Investment Offering .................................................................................................................. 24Table: Investment Offering ................................................................................................................ 25
8.7 Use of Funds .................................................................................................................................... 25
Table: Use of Funds ........................................................................................................................... 258.8 Payback ............................................................................................................................................ 26
Table: Payback ................................................................................................................................... 26
-
8/3/2019 QQwikpay Business Plan_v1
5/36
QQwikpay Business Plan
1.0 Executive Summary
QQwikpay is a new, ecommerce payment platform offering a large selection of currency andpayment solutions. Merchants can easily sell their online products while processing ecommercetransactions. Consumers can securely send payment to vendors using their checking account,credit card, debit card or mobile processing. Founded by a serial entrepreneur, Chase Justin,the Company will be headquartered in the UK.
The purpose of this plan is to obtain sufficient funding 365,000 from crowdcube.com to coverinitial start-up expenses.
Chart: Highlights
Sales
Gross Margin
Net Profit
64,000128,000192,000256,000320,000384,000448,000512,000576,000
640,000
Highlights
-
8/3/2019 QQwikpay Business Plan_v1
6/36
QQwikpay Business Plan
1.3 Keys to Success
1. Commitment to providing high quality customer service (24/7 support).2. Online and offline advertising.3. Gaining a reputable reputation.4. Developing visibility.
2.0 Company Summary
QQwikpay is a new online payment service managed by Chase Justin, a serial entrepreneur.The Company was formed to take advantage of the perceived weaknesses and inadequacies of other top competitors in terms of customer care and rates. QQwikpay specializes in eCommercetransactions providing secure and reliable online payment programs; we aim to serve as aservice for people to send money using any method of payment.
2.1 Company Ownership
The Company is solely owned by Chase Justin and currently registered as QQWIKPAY LTD inLondon (07895418 ).
2.2 Start-up Summary
The start-up costs for QQwikpay will cover a number of details to get the Company fullyoperational online. Included in start-up costs are all necessary expenditures to cover processingsetup, website development, payment integration, mobile card reader, and advertising.
Table: Start-up
Start-up
Requirements
-
8/3/2019 QQwikpay Business Plan_v1
7/36
QQwikpay Business Plan
3.0 Services
QQwikpay's online payment system empowers an unlimited number of small, mid-size, andlarge web based storefronts to sell online and process all types of ecommerce transactions,while enabling consumers to securely connect for transmission of transaction data. WithQQwikpay consumers can choose their method of payment, which allows merchants to captureall possible sales. Online merchants can expect to see an increase of sales, as it has beenshown by studies that credit card spending is higher than cash spending.
Our number of banking partners combined with our payment processing technology allows us totailor our solutions to match the individual needs of the client.
3.1 Service Description
1. Online payment processing. QQwikpay provides sellers with a competitive, low fixed rateof 2.25%, without tiered pricing. QQwikpay accepts credit card, debit card, and bankaccount. Our system is compatible with all shopping carts.
2. Mobile processing. This service will be provided in Phase 2 of 2012. Consumers andbusinesses have the option of using their mobile phone to perform transactions. Consumers
will be able to manage their account no matter their location, and merchants can acceptpayment anytime, anywhere even if they are selling on the road or at a tradeshow.3. Money back for consumers. Consumers that use their checking account for payment
automatically receives 1% back.
3.2 Competitive Comparison
Competition in this industry is based on service, quality, price, processing system speed,customer support and reliability. Our most competitive edge is lower fees for merchants, highquality customer support. In addition, we will be the first to offer 1% cash back for consumers.
3.3 Sales Literature
-
8/3/2019 QQwikpay Business Plan_v1
8/36
QQwikpay Business Plan
We are focusing on these particular segments as the market is continuing to grow: More than 326,400,000 was processed in 2010 for global e-commerce Revenue surpassed 11,520,000,000 for 2010 Cross border transactions owning half the market share of business Only a handful of front-runners in the business; therefore, there is significant opportunity
for QQwikpay to capture a large part of market share. 38 percent of those who own a Smartphone have made a mobile payment (mobile
processing)
Table: Market Analysis
-
8/3/2019 QQwikpay Business Plan_v1
9/36
QQwikpay Business Plan
Chart: Market Analysis (Pie)
Online merchants
Mobile payment
Market Analysis (Pie)
4.1 Target Market Segment Strategy
ECommerce has grown to represent a significant percentage of retail sales and profits;therefore, merchants are seeking payment strategies that can enhance their online services,open new markets and protect the bottom line.
The target market for QQwikpay is consumers, online merchants and small business owners inthe US, UK, and Europe. We have chosen these segments because of growth and potentialinternational customers. According to Javelin Strategy and Research, 63 percent of U.S. adultsshop online, and expects this number to grow to 78 percent by 2014.
-
8/3/2019 QQwikpay Business Plan_v1
10/36
QQwikpay Business Plan
4.1.2 Market Trends
With online payments other than debit or credit cards expected to grow to 30 percent of purchase volume by 2014, eCommerce merchants have to consider enhancing theirpayment options to take advantage of this consumer trend.
Mobile devices will soon be the primary form of payment for millions of people globally.
According to Aite Group forecasts, mobile bill payments will reach 13 billion in gross dollarvolume in 2015, up from 10 billion in 2010, which represents a 68 percent compoundannual growth rate. A November 2010 Aite Group report stated the United States is movingcloser to a tipping point that will lead to the popularization of mobile payments. 1
Credit card payments continue to be strong in European E-Commerce. In Europe, in 2010credit cards were the most popular online payment method with a share of approx. 40%.Electronic payment methods are also gaining popularity in Asia and Africa. The GlobalOnline Payment Methods 2011 report by yStats.com clearly shows that the market forelectronic payments continues to grow in Asia as well. 2
4.1.3 Market Growth
Transactions via cell phone-based payment systems are expected to have grown 149.4 percentyear-on-year for 2011 to 48.14 billion Yuan (4,857,600,000) and are expected to exceed 200billion Yuan in 2013, according to figures released recently. 3E Marketing Research Corporation said the mobile payments market is expected to generate604 billion in sales. 4
4.2 Service Business Analysis
-
8/3/2019 QQwikpay Business Plan_v1
11/36
QQwikpay Business Plan
Mobile Processing
Gartner defines a mobile payment as paying for a product or service using mobile technologysuch as a short message service (SMS), Wireless Application Protocol (WAP), UnstructuredSupplementary Service Data (USSD) and NFC. It includes transactions that use bankinginstruments such as cash, bank accounts or debit and credit cards, as well as noncarrier storedvalue accounts, such as travel cards, gift cards or PayPal. It does not include transactions thatuse mobile operators billing systems, such as purchase of mobile content or telebanking bymobile to the service center via an interactive voice response (IVR) system.
In terms of both number of users and transaction volumes, Gartner expects Asia/Pacific andJapan to maintain a larger share of the market through 2012. While mobile paymentpenetration in Western Europe is expected to rise from 0.9 percent in 2009 to 2.5 percent in2012, and from 1.7 percent to 3 percent in North America; penetration in Asia/Pacific andJapan will rise from 2 percent in 2009 to 3.8 percent in 2012. Mobile payment penetration inEastern Europe, the Middle East and Africa (EMEA) and Latin America is also expected toexceed 3 percent by 2012.
4.2.1 Business Participants
1. Acquiring Bank (Merchant Bank) - A Merchant Bank, also known as the Acquirer orAcquiring Bank, is the financial institution that provides a merchant with a MerchantAccount. The Merchant Bank handles acceptance and payment of credit card transactions tothe Merchant's bank account. In a way, they front the money for the Issuing Banks,depositing the Merchant's funds prior to the actual transfer via Interchange from thecardholder's issuing bank A Merchant Bank pays the Issuing Banks and Card Associationsfees for transactions processed on behalf of its Merchant Account holders. In return,
Merchant Banks provide their services to Merchants for a fee normally called a discount rate. 5
2. Merchant Services Provider (MSP) - If the Merchant did not set up their Merchantd l h h k h h b d d d
-
8/3/2019 QQwikpay Business Plan_v1
12/36
QQwikpay Business Plan
distributed cards and charge the cardholder interest and fees for the use of the card. (Shift4)
5. Card Associations (Brand) - These are organizations such as Visa, MasterCard, AmericanExpress and Discover that work in conjunction with various local, state, territory and federalgovernment agencies to make the rules regarding acceptance and use of credit cards. Theserules include security regulations, data requirements and interchange rates. AmericanExpress and Discover issue cards directly to the consumer without a bank intermediary.(Shift 4)
6. Processors - Processors provide a point of connectivity for the Merchant to authorize andsettle its credit card transactions through the appropriate payment network for each of thecard types accepted by the Merchant. Some Processors have also aligned or purchasedMerchant Banks in order to act as a Merchant Services Provider to its Merchants. Alltransactions require a Front-End and a Back-End Processor. In some cases, the Back-EndProcessor and Front-End Processor may be one and the same. Front-End Processors handlethe up-front authorization of a credit card transaction. They have connectivity to all of theCard Associations and route transactions to the appropriate network for authorization. TheFront-End Processor is the Merchants point of connectivity for authorization and settlementof transactions. When a Merchant settles or submits a batch, it is sent to the Front-EndProcessor who then routes the batch to its Back-End Processor. Back-End Processors receivesettlement batches from the Front-End Processor. Transactions from all Merchants aregrouped together by BIN (Bank Identification Number) range and submitted to theappropriate Issuing Bank on a scheduled time frame. (Shift 4)
4.2.2 Competition and Buying Patterns
A big part of capturing online sales involves convenience. Merchants and business owners will
likely choose a payment processing company based on:1. Setup fees2. Annual Fees
-
8/3/2019 QQwikpay Business Plan_v1
13/36
QQwikpay Business Plan
Owns 18% of the total market 2,304 in Total Payment Volume every second in Q3 2011 Expects revenue will make up 3.84 billion to 4.48 billion in 2013 Tiered pricing ranging from 2.2-2.9% for USA with international sales 3.9%, 2.4-
3.9% for Europe Nearly 100 million users Sign-up fee: None Transaction Fees: 0.3+2.2-2.9% Refund fees: 10 for chargeback Payment types accepted: Visa, MasterCard, Discover, and American Express. Other services: Compatible with shopping cartsTangible and digital products
and membership sites . Buyer has to register as PayPal member. Membershipavailable in 37 countries
2. Skrill ( Moneybookers ) - This company was founded in 2001 and became the firstemoney issuer to obtain an electronic money license from the FSA. Moneybookers is oneof Europe's largest online payment systems and among the world's leading eWalletproviders with over fifteen million account holders. Moneybookers worldwide payment
network offers businesses access to over 100 payment options in over 200 countries andterritories. Ranked number 12 fastest growing technology company in the UK Considered first competitor to PayPal 23.1 million members worldwide 29,089,149,615.36 processed transactions worldwide Bought by Investcorp Technology Partners for 105 Million in March 2007, March
2009 has been put up for sale by its owners Investcorp for an estimated 365m Pricing from 1.9-2.9% and non European customers 2.9-3.9% plus 19.95 a
month Used by more than 70,000 merchants.
3 Adelante Started over eight years ago Adelante supplies a wide variety of software
-
8/3/2019 QQwikpay Business Plan_v1
14/36
QQwikpay Business Plan
1M merchant milestone this month
5.0 Web Plan Summary
In year one, QQwikpay will develop its online presence that will serve as the Company's onlinehome and as a portfolio. Due to the geographic dispersion of potential customers, the websitewill be used as the main sales tool. The QQwikpay site will feature all services along withpertinent information.
Developing a user-friendly site is one of the primary design goals of the site allowing customersto easily and quickly navigate around the site, finding the information that they are seeking.
5.1 Website Marketing Strategy
Because of the Company's eight (8) partnerships and the potential to add more, we will launchon several popular websites throughout the USA, UK, and Europe.
Our next critical strategy is to implement paid and non-paid placements in search engines. Fora small fee, we will pay for potential customers to click through to our site from an
advertisement on a search engine page to the site. The non-paid method will be submission of the URL to all major search engines, particularly Google and Yahoo, so that QQwikpay displayswhen a prospective customer is searching for payment processing.
In addition to advertisements on search engines, we will advertise on billboards and withwebsites that have similar customer demographics.
5.2 Development Requirements
The website will require one full-time programmer to design and develop the site withprocessing integration 2 weeks.
6 0 Strategy and Implementation Summary
-
8/3/2019 QQwikpay Business Plan_v1
15/36
QQwikpay Business Plan
6.1 SWOT Analysis
The following SWOT Analysis captures the key strengths and weaknesses within the Company,and describes the opportunities and threats facing the Company.
6.1.1 Strengths
Rates are considerably lower than top competitors. QQwikpay will be the first to offer a money back offer to consumers. High quality customer service.
6.1.2 Weaknesses
1. Large initial capital requirement.2. Ongoing expenses related to establishing and maintaining a processing network.3. The reluctance of merchants to change.
6.1.3 Opportunities
Businesses are selling to people across the world via multiple channels; therefore, thereis growing need of business owners to have a reliable and secure payment processing service inplace.1. Strong relationships with alliances offering source of referrals.
6.1.4 Threats
1. Emerging and local competition from European peers and global providers.
2. Price pressure from competitors.6.2 Competitive Edge
-
8/3/2019 QQwikpay Business Plan_v1
16/36
QQwikpay Business Plan
QuickTime and a TIFF (Uncompressed) decompressor
are needed to see this picture.
-
8/3/2019 QQwikpay Business Plan_v1
17/36
QQwikpay Business Plan
QuickTime and a
TIFF (Uncompressed) decompressorare needed to see this picture.
-
8/3/2019 QQwikpay Business Plan_v1
18/36
QQwikpay Business Plan
Mobile merchants will pay 2.25% a full 45 cents less than the market leaders. Our profit willbe 1.13% on total volume processed.
6.3.2 Promotion Strategy
The Company plans to use an aggressive marketing program that will include onlineadvertising, print ads, billboards and other platforms to generate service awareness, and valueproposition.
6.4 Sales Strategy
QQwikpay will see a significant profit from its low fixed rate offer. Even though the Companycharges a lesser rate, we foresee the company will see a profit within the first year due to itsstrategic alliances offering a source of referral and online and offline advertising. Furthermore,the company's growing advertising program will generate the growth the company needs tosurvive.
6.4.1 Sales Forecast
Our sales forecast is presented in the chart and table below.
Table: Sales Forecast
Sales Forecast 2012 2013 2014
SalesPayment processing 518,400 559,872 615,859
0 0 0Total Sales 518,400 559,872 615,859
Direct Cost of Sales 2012 2013 2014Internet purchase 8,294.4 8,958.08 9,853.44
-
8/3/2019 QQwikpay Business Plan_v1
19/36
QQwikpay Business Plan
Chart: Sales Monthly
Chart: Sales by Year
Payment processing
$0
0
6,400
12,800
19,200
25,600
32,000
38,400
44,800
J
Sales Monthly
640,000
Sales by Year
-
8/3/2019 QQwikpay Business Plan_v1
20/36
QQwikpay Business Plan
6.7 Strategic Alliances
We are in the process of setting up with 8 different companies in order to efficiently handle thetransactions across the globe. The Company will seek further alliances as it grows into morecountries.
7.0 Management Summary
QQwikpay's management team is made up of the principal, and two employees. Each memberhas specific industry experience that will apply to their assignment.
7.1 Management Team
Chase Justin , founder and owner, is a serial entrepreneur and has been self employed sincehigh school. He has a business and accounting background that provides him with theknowledge needed to manage the company's operation.
Table: Personnel
Personnel Plan2012 2013 2014
Chase Justin 0 0 0Dillon Llyod 0 0 0Philip Ramirez 0 0 0Total People 0 0 0
Total Payroll 0 0 0
8.0 Financial Plan
We are seeking 365k to launch QQwikpay with a 15% ownership. We are seeking these funds
-
8/3/2019 QQwikpay Business Plan_v1
21/36
QQwikpay Business Plan
8.1 Start-up Funding
QQwikpay start-up costs are detailed above, in the Start-up Table. The following table showshow these start-up costs will be funded by owner and investor capital.
Table: Start-up Funding
Start-up Funding Start-up Expenses to Fund 0Start-up Assets to Fund 365,000
Total Funding Required 365,000AssetsNon-cash Assets from Start-up 0Cash Requirements from Start-up 365,000Additional Cash Raised 0Cash Balance on Starting Date 365,000Total Assets 365,000
Liabilities and Capital
LiabilitiesCurrent Borrowing 0Long-term Liabilities 0Accounts Payable (Outstanding Bills) 0Other Current Liabilities (interest-free) 0Total Liabilities 0
Capital
Planned InvestmentOwner 0Investor 36,500Investor 36,500
-
8/3/2019 QQwikpay Business Plan_v1
22/36
QQwikpay Business Plan
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even 2,195
Assumptions:Average Percent Variable Cost 2%Estimated Monthly Fixed Cost 2,160
Chart: Break-even Analysis
0
640
1,280
1,920
(640 )
(1,280 )
(1,920 )
0 768 1 536 2 304 3 072 3 840
Break-even Analysis
-
8/3/2019 QQwikpay Business Plan_v1
23/36
QQwikpay Business Plan
Table: Profit and Loss
Pro Forma Profit and Loss2012 2013 2014
Sales 518,400 559,872 615,859Direct Cost of Sales 8,294 8,958 9,853Other Costs of Sales 0 0 0Total Cost of Sales 8,294.4 8,958 9,853
Gross Margin 510,105 550,913 606,005
Gross Margin % 98.40% 98.40% 98.40%
ExpensesPayroll 0 0 0Marketing/Promotion 25,920 27,520 27,520Depreciation 0 0 0Insurance 0 0 0Payroll Taxes 0 0 0Other 0 0 0
Total Operating Expenses 25,920 27,520 27,520
Profit Before Interest and Taxes 484,185 523,393 578,485EBITDA 484,185 523,393 578,485
Interest Expense 0 0 0Taxes Incurred 145,255 157,018 173,545
Net Profit 338,929 366,375 404,940Net Profit/Sales 65.38% 65.44% 65.75%
Chart: Profit Monthly
-
8/3/2019 QQwikpay Business Plan_v1
24/36
QQwikpay Business Plan
Chart: Profit Yearly
Chart: Gross Margin Monthly
0
64,000
128,000
192,000
256,000
320,000
384,000
2012 2013 2014
Profit Yearly
44,800
Gross Margin Monthly
-
8/3/2019 QQwikpay Business Plan_v1
25/36
QQwikpay Business Plan
Chart: Gross Margin Yearly
8.4 Projected Cash Flow
The cash flow projection shows that provisions for ongoing expenses are adequate to meet theneeds of the company as the business generates sufficient cash flow to support operations.
0
64,000
128,000
192,000
256,000
320,000384,000
448,000
512,000
576,000
640,000
2012 2013 2014
Gross Margin Yearly
-
8/3/2019 QQwikpay Business Plan_v1
26/36
QQwikpay Business Plan
Table: Cash Flow
Pro Forma Cash Flow 2012 2013 2014
Cash Received
Cash from OperationsCash Sales 518,400 559,872 615,859Subtotal Cash from Operations 518,400 559,872 615,859
Additional Cash ReceivedSales Tax, VAT, HST/GST Received 0 0 0New Current Borrowing 0 0 0New Other Liabilities (interest-free) 0 0 0New Long-term Liabilities 0 0 0Sales of Other Current Assets 0 0 0Sales of Long-term Assets 0 0 0New Investment Received 365,000 0 0Subtotal Cash Received 838,400 559,872 615,859
Expenditures 2012 2013 2014
Expenditures from OperationsCash Spending 0 0 0Bill Payments 165,012 192,049 209,487Subtotal Spent on Operations 165,012 192,049 209,487
Additional Cash SpentSales Tax, VAT, HST/GST Paid Out 0 0 0Principal Repayment of Current Borrowing 0 0 0Other Liabilities Principal Repayment 0 0 0Long-term Liabilities Principal Repayment 0 0 0Purchase Other Current Assets 0 0 0Purchase Long-term Assets 0 0 0Dividends 0 0 0
-
8/3/2019 QQwikpay Business Plan_v1
27/36
QQwikpay Business Plan
Chart: Cash
8.5 Projected Balance Sheet
The following table presents the Balance Sheet for QQwikpay.
Net Cash Flow
Cash Balance
0
128,000
256,000
384,000
512,000
640,000
768,000
896,000
1,024,000
J a
n
F e b
M a r
A p r
M a y
J u
n
J
u l
A u g
S e p
O c t
N o v
D e c
Cash
-
8/3/2019 QQwikpay Business Plan_v1
28/36
QQwikpay Business Plan
Table: Balance Sheet
Pro Forma Balance Sheet 2012 2013 2014
Assets
Current AssetsCash 993,387 1,361,209 1,767,581Other Current Assets 0 0 0Total Current Assets 993,387 1,361,209 1,767,581
Long-term AssetsLong-term Assets 0 0 0Accumulated Depreciation 0 0 0Total Long-term Assets 0 0 0Total Assets 993,387 1,361,209 1,767,581
Liabilities and Capital 2012 2013 2014
Current Liabilities
Accounts Payable 14,457 15,904 17,335Current Borrowing 0 0 0Other Current Liabilities 0 0 0Subtotal Current Liabilities 14,457 15,904 17,335
Long-term Liabilities 0 0 0Total Liabilities 14,457 15,904 17,335
Paid-in Capital 640,000 640,000 640,000Retained Earnings 0 338,929 705,305Earnings 338,929 366,375 404,940.Total Capital 978,929 1,345,305 1,750,245Total Liabilities and Capital 993,387 1,361,209 1,767,581
Net Worth 978,929 1,345,305 1,750,245
-
8/3/2019 QQwikpay Business Plan_v1
29/36
QQwikpay Business Plan
Table: Investment Offering
Investment Offering Seed Round 1 Round 2 ExitProposed Year: 1 2 3 7
Valuation, Investment, SharesInvestment Amount 365,000 0 0Equity Share Offering Percentage 15% 0.00% 0.00%Valuation 2,433,333 0 0 43,000,000Investor Exit Payout 4,024,800 0 0
Investor Years Until Exit 6 5 4Investor IRR 48.56% 0.00% 0.00%
Share Ownership Year 1 Year 2 Year 3 Year 7Founders' Shares 10,000 10,000 10,000 10,000Stock Split Multiple 0 0 0Stock Options Issued 0 0 0 0Investor Shares Issued 1,429 0 0Price per share 244.00 0.00 0.00 3,762.50Options Holders' Shares 0 0 0 0
Year 1 Investors' Shares 1,429 1,429 1,429 1,429Year 2 Investors' Shares 0 0 0Year 3 Investors' Shares 0 0Total Shares Outstanding 11,429 11,429 11,429 11,429
Equity Ownership Percentage Year 1 Year 2 Year 3 Year 7Founders' Equity 85.00% 85.00% 85.00% 85.0%Option Holders' Equity 0.00% 0.00% 0.00% 0.00%Year 1 Investors' Equity 15.0% 15.0% 15.0% 15.0%Year 2 Investors' Equity 0.00% 0.00% 0.00%Year 3 Investors' Equity 0.00% 0.00%Total Equity 100.00% 100.00% 100.00% 100.00%Investors' Equity 15.0% 15.0% 15.0% 15.0%Founders' & Employees' Equity 85.0% 85.0% 85.0% 85.0%
-
8/3/2019 QQwikpay Business Plan_v1
30/36
QQwikpay Business Plan
8.8 Payback
As the table below shows, the initial investor will find that the payback period on thatinvestment will be five years. Our desire is to find an investor who recognizes the potential forlong-term gain.
Table: Payback
Payback
Projected Payback CalculationInvestment 2012 2013 2014 2015 2016
Investment 365,000Cash Returns by Year 73,000 73,000 73,000 73,000 73,000Combination as Income Stream (365,000) 73,000 73,000 73,000 73,000 73,000Cumulative Net Cash Flow toInvestors
(365,000) (292,000) (219,000) (146,000) (73,000) 0
Payback Period 5 years
Chart: Payback Period
128 000
192,000256,000
320,000Payback Period
-
8/3/2019 QQwikpay Business Plan_v1
31/36
Appendix
Table: Sales Forecast
Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Payment processing 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200
0 0 0 0 0 0 0 0 0 0 0 0
Total Sales 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Internet purchase 691 691 691 691 691 691 691 691 691 691 691 691
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
Subtotal Direct Cost of Sales 691 691 691 691 691 691 691 691 691 691 691 691
Page 1
-
8/3/2019 QQwikpay Business Plan_v1
32/36
Appendix
Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Chase Justin 0 0 0 0 0 0 0 0 0 0 0 0
Dillon Llyod 0 0 0 0 0 0 0 0 0 0 0 0
Philip Ramirez 0 0 0 0 0 0 0 0 0 0 0 0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll 0 0 0 0 0 0 0 0 0 0 0 0
Page 2
-
8/3/2019 QQwikpay Business Plan_v1
33/36
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200
Direct Cost of Sales 691 691 691 691 691 691 691 691 691 691 691 691
Other Costs of Sales 0 0 0 0 0 0 0 0 0 0 0 0
Total Cost of Sales 691 691 691 691 691 691 691 691 691 691 691 691
Gross Margin 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508 42,508
Gross Margin % 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40% 98.40%
Expenses
Payroll 0 0 0 0 0 0 0 0 0 0 0 0
Ma rk eti ng/ Pro mot io n 2,160 2, 160 2 ,16 0 2, 16 0 2 ,160 2 ,16 0 2, 160 2 ,16 0 2, 16 0 2 ,160 2 ,16 0 2, 16 0
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0
Insurance 0 0 0 0 0 0 0 0 0 0 0 0
Payroll Taxes 15% 0 0 0 0 0 0 0 0 0 0 0 0Other 0 0 0 0 0 0 0 0 0 0 0 0
Total Operating Expenses 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160
Profit Before Interest and Taxes
40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348
EBITDA 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348 40,348
Interest Expense 0 0 0 0 0 0 0 0 0 0 0 0
Taxe s I nc urr ed 1 2,104 12, 104 12 ,10 4 12, 10 4 12 ,104 12 ,10 4 12, 104 12 ,10 4 12, 10 4 12 ,104 12 ,10 4 12, 10 4
Net Profit 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244 28,244Net Profit/Sales 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38% 65.38%
Page 3
-
8/3/2019 QQwikpay Business Plan_v1
34/36
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200
Subtotal Cash from Operations 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200 43,200
Additional Cash Received
Sales Tax, VAT, HST/GSTReceived
0.00% 0 0 0 0 0 0 0 0 0 0 0 0
New Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0
New Other Liabilities (interest-free)
0 0 0 0 0 0 0 0 0 0 0 0
New Long-term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0
Sales of Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0
Sales of Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0New Investment Received 365,000 0 0 0 0 0 0 0 0 0 0 0
Subt ota l C as h R ec ei ve d 3 92 ,52 0 43 ,200 43 ,2 00 43 ,20 0 43 ,20 0 43 ,20 0 43 ,20 0 43 ,20 0 43 ,20 0 43, 20 0 43, 20 0 43, 20 0
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending 0 0 0 0 0 0 0 0 0 0 0 0
Bill Payments 498 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956
Subtota l Spent on Operations 498 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956
Additional Cash Spent
Sales Tax, VAT, HST/GST PaidOut
0 0 0 0 0 0 0 0 0 0 0 0
Principal Repayment of CurrentBorrowing
0 0 0 0 0 0 0 0 0 0 0 0
Other Liabilities PrincipalRepayment
0 0 0 0 0 0 0 0 0 0 0 0
Long-term Liabilities PrincipalRepayment
0 0 0 0 0 0 0 0 0 0 0 0
Purchase Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0
Purchase Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0
Dividends 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal Cash Spent 498 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956 14,956
Page 4
A di
-
8/3/2019 QQwikpay Business Plan_v1
35/36
Appendix
Net Cash Flow 362,701 18,076 18,076 18,076 18,076 18,076 18,076 18,076 18,076 18,076 18,076 18,076
Cash Balance 682,701.44
700,777.44
718,853.44
736,929.44
755,005.44
773,081.44
791,157.44
809,233.44
827,309.44
845,385.44
863,461.44
881,537.44
Page 5
A di
-
8/3/2019 QQwikpay Business Plan_v1
36/36
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets StartingBalances
Current Assets
Cash 365,000 682,701.44
700,777.44
718,853.44
736,929.44
755,005.44
773,081.44
791,157.44
809,233.44
827,309.44
845,385.44
863,461.44
881,537.44
Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Current Assets 365,000 682,701.
44700,777.
44718,853.
44736,929.
44755,005.
44773,081.
44791,157.
44809,233.
44827,309.
44845,385.
44863,461.
44881,537.
44
Long-term Assets
Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0 0Accumulated Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Assets 365,000 682,701.
44700,777.
44718,853.
44736,929.
44755,005.
44773,081.
44791,157.
44809,233.
44827,309.
44845,385.
44863,461.
44881,537.
44
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Ac coun ts P aya bl e 0 14 ,45 7 14, 45 7 1 4, 457 14 ,4 57 14 ,45 7 14 ,45 7 14, 45 7 1 4, 457 14 ,4 57 14 ,45 7 14 ,45 7 14, 45 7Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0Other Current Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0Subtotal Current Liabilities 0 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457 14,457
Long-term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0 Tota l L iabi li ti es 0 14 ,45 7 14, 45 7 1 4, 457 14 ,4 57 14 ,45 7 14 ,45 7 14, 45 7 1 4, 457 14 ,4 57 14 ,45 7 14 ,45 7 14, 45 7
Paid-in Capital 365,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000Retained Earnings 0 0 0 0 0 0 0 0 0 0 0 0 0Earnings 0 18,076 56,488.3
2
84,732.8 112,976.
64
141,221.
12
169,464.
96
197,709.
44
225,953.
28
254,197.
76
282,441.
6
310,686.
08
338,929.
92 Total Capital 365,000 651,568 696,488.32
724,732.8
752,976.64
781,221.12
809,464.96
837,709.44
865,953.28
894,197.76
922,441.6
950,686.08
978,929.92
Total Liabi li ties and Capital 365,000 682,701.44
710,945.92
739,189.76
767,434.24
795,678.08
823,922.56
852,166.4
880,410.88
908,654.72
936,899.2
965,143.04
993,387.52
Net Worth 365,000 651,568 696,488 724,732 752,976 781,221 809,464 837,709 865,953 894,197 922,441 950,686 978,929
Page 6