Profit and Loss |
Revenue: |
Year 1 |
Year 2 |
Year 3 |
Premium Subscription |
$517,500.00 |
$1,552,500.00 |
$2,070,000.00 |
Plus Subscription |
$448,500.00 |
$1,345,500.00 |
$2,691,000.00 |
Total Revenue: |
$966,000.00 |
$2,898,000.00 |
$4,761,000.00 |
Expenses: |
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|
|
Counselors |
$600,000.00 |
$900,000.00 |
$1,200,000.00 |
Development |
$50,000.00 |
$20,000.00 |
$10,000.00 |
Hosting |
$200.00 |
$200.00 |
$200.00 |
Domain Name |
$20.00 |
$20.00 |
$20.00 |
Skype Fees |
$10,000.00 |
$20,000.00 |
$30,000.00 |
Legal Fees |
$5,000.00 |
$5,000.00 |
$5,000.00 |
Tutors |
$5,175.00 |
$155,250.00 |
$621,000.00 |
Management |
$400,000.00 |
$400,000.00 |
$400,000.00 |
Salesman |
$250,000.00 |
$400,000.00 |
$500,000.00 |
Total Expenses: |
$1,320,395.00 |
$1,900,470.00 |
$2,766,220.00 |
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|
|
|
Net Income |
$(354,395.00) |
$997,530.00 |
$1,994,780.00 |
Net Income after Taxes |
$(315,411.55) |
$887,801.70 |
$1,775,354.20 |
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Assumptions: |
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Year 1: 5% market penetration |
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Year 2: 15% market penetration |
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Year 3: 30% market penetration |
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Assume 11% tax |
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Standard Subscription = 25% |
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Premium Subscription=45% |
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Plus Subscription=30% |
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2.3 million students attend college a year |
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Philadelphia is 1% |
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Tutors are paid 15$ an hour |
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