| 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: |
|
|
|
| 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 |
|
|
|
|
| Net Income |
$(354,395.00) |
$997,530.00 |
$1,994,780.00 |
| Net Income after Taxes |
$(315,411.55) |
$887,801.70 |
$1,775,354.20 |
|
|
|
|
| Assumptions: |
|
|
|
| Year 1: 5% market penetration |
|
|
| Year 2: 15% market penetration |
|
|
| Year 3: 30% market penetration |
|
|
| Assume 11% tax |
|
|
|
| Standard Subscription = 25% |
|
|
| Premium Subscription=45% |
|
|
| Plus Subscription=30% |
|
|
|
| 2.3 million students attend college a year |
|
|
| Philadelphia is 1% |
|
|
|
| Tutors are paid 15$ an hour |
|
|
|
|
|
|
|
|
