ThanksBud by Anthony Johnson

BUSINESS PLAN v. 1.0

February 20, 2009 UALR Bowen School of Law Submitted by: Anthony Johnson RJ Martino Roxane Martino P.O. Box 34151 Little Rock, AR 72203 PH: (501) 859-6035 info@thanksbud.com

TABLE OF CONTENTS

Executive Summary.. ....................................................................... 1 Company Summary.. ....................................................................... 3 Services .......................................................................................... 5 Market Analysi s . ........... ................................................................. 7 Comp etitiv e Analysi s ...................................................................... 12 Marketing plan.............................................................................. 13 Sales strategy................................................................................ 15 Management team ......................................................................... 17 operations plan.. ........................................................................... 19 critical risks .................................................................................. 22 Financial Plan.............. ................................................................. 22 Offering........................ ................................................................. 30

EXECUTIVE SUMMARY

â&#x20AC;&#x153;An Online Social Marketplace Changing the Way People Buy and Sell Services.â&#x20AC;? - ThanksBud

Company and Vision This clear and challenging vision of ThanksBud demonstrates our goal to revolutionize the service industry. Historically, potential buyers go straight to the phone book, call each provider one by one, negotiate and compare rates, and finally pick a provider that hopefully does quality work. However, this process is dated and inefficient. ThanksBud is changing this process and taking giant steps towards defining how services should be bought and sold. The company was founded on the premise that the service industry has yet to acknowledge and utilize the social nature of the Internet and advancements in mobile technology. ThanksBud allows buyers to search service providers online and read reviews on each provider. After reviewing the potential providers, the buyer can then create a job and distribute an offer to multiple providers through text message (SMS) and e-mail. Instantaneously, providers are able to accept the job and get to work. As a result, the buyer receives quality work for the best price available and the provider receives compensation, a new steady source of income, and both parties are benefited.

Marketing Opportunity According to the International Association for the Wireless Telecommunications Industry, wireless subscribers in the US have gone from 28.1 million in June of 1995 to 262.7 million in June of 2008 equating to 84% of the US population. In addition, those 262.7 million subscribers are sending 79 billion text messages per month. More people are using phones as part of their every day life and most of them use their phones for more than talking. Online shopping has also seen incredible growth over the past 10 years. ComScore announced that US commerce conducted over the Internet totaled $214.4 billion in 2008, a 7 percent increase versus the previous year. Coupon sites had a 46 percent increase in traffic during the year, reaching more than 31.5 million in December. Classifieds also saw a sharp increase in traffic, growing 27 percent to 52.8 million visitors as Americans attempted to save and make money under the current financial market. Category leader Craigslist grew 51 percent during the year. ComScore predicted that 2009 would be another record-breaking year for mobile Internet, with smartphones continuing to offer new features and to drop in price. ThanksBud will fit perfectly within these growing industries and will benefit from the Internet and mobile market trends shown above. At first, ThanksBud will focus on six service categories: lawn care services, handyman services, plumbing services, painting services, deck and fence services, and heating and air conditioning services. Once those categories become profitable, ThanksBud will expand its services to include more fields including computing services, educational services, professional services, and more. Each time ThanksBud expands services, the company will be able to expand its target market, expand its value to existing users, and expand the overall profitability of the company. In fact, each new service category can be seen as an opportunity to significantly increase profit. ThanksBud anticipates a tremendous demand for its online marketplace especially in todayâ&#x20AC;&#x2122;s market where every American is going to great lengths to keep spending down and save money through new and innovative services.

Founders ThanksBud is lead by a highly experienced team that possesses strong entrepreneurial spirit and relentless work ethic. The team consists of three unique members each with their own distinct attributes and diverse background. All members of the ThanksBud team have law school educations and either have owned or currently own successful start-up companies. Other diverse member backgrounds include computer engineering undergraduate degrees, financial industry experience, graphic design, and web development. ThanksBud also has a well-rounded and experienced advisor committee including Dr. Joseph Bell, a startup venture consultant for over 15 years, and Bill Stowers, employed by Stephens inc. from 19771985 as the director of new business development and named President of Stephens Real Estate in 1984. Bill Stowers is now principle and founder of Stowers and Associates a corporate consulting and investment banking firm.

Financials ThanksBud is projected to have a loss for the first three years of operation. However, that time will be used primarily for developing the platform, recruiting service providers, and expanding market awareness. Following these years, with its second infusion of cash, ThanksBud will have the necessary cash flow to focus on advertising and company growth. The change in focus will drive profits far past expectations. In fact, projected net profits for years four and five are $4.4M and $13.6M. ThanksBud is currently seeking $600,000 of round one seed funding. These funds will be used for product development, service provider recruitment, and advertising during ThanksBudâ&#x20AC;&#x2122;s beta launch. After year 1, ThanksBud will seek an additional $5M round of venture funding from institutional investors. In return for the $600,000 seed investment and the $5M venture round of funding, a 15% and 35% ownership is offered to the investor. The investment has a projected return of 1,23% and 742% following ThanksBudâ&#x20AC;&#x2122;s first five years after launch.

COMPANY PROFILE ThanksBud is an online social marketplace where people come to buy and sell services. ThanksBud specializes in distribution. Once a new customer posts a service that he needs completed, the service offer is distributed to every service provider in our database within range of the offer though email and text message. Once the service provider gets the offer alert, ThanksBud will allow them to request more information on the project, interact through the Internet with the potential client, or even accept the offer with the push of a button on their cell phones. Once a job offer is accepted, payment is placed in escrow until both parties are satisfied with the work and reviews are posted to the site. ThanksBud is the first company to become more than online want ads. ThanksBud takes the service buyer and provider from start to finish guaranteeing the most benefit for everyone involved. ThanksBud is a tech start-up company founded in May of 2008 by three partners: Anthony Johnson, RJ Martino, and Roxane Martino. All three partners have extensive experience in the technology industry, and have maintained excellent reputations within their fields. Additionally, ThanksBud’s founders have experiences that compliment their expertise in technology such as engineering, financial, business management, accounting, and academics. All partners have started successful companies on a local level and have the skill, character, and passion to build ThanksBud into a national company developing it into one of the powerhouses for online services.

Company Ownership ThanksBud is set up as an LLC in the state of Arkansas and has three founding partners:

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Anthony Johnson, majority partner, 40% interest in ThanksBud.

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RJ Martino, majority partner, 40% interest in ThanksBud.

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Roxane Martino, minority partner, 20% interest of ThanksBud, Inc.

Start-up Summary ThanksBud will beta launch in five cities located in a region that is geographically central to Little Rock. Launching in a focused and regional demographic will allow ThanksBud to manageably grow revenue streams while maintaining control of growth and marketing. The five cities that ThanksBud will launch in are set as follows: Dallas, Memphis, Kansas City, Houston, and Little Rock. We chose these five cities for their regional convenience, our familiarity with each marketplace, and because they have sufficient populations to properly provide data that will be used in determining what changes need to be made before we enter larger markets. The first year will largely consist of marketing the ThanksBud brand, recruiting service providers for these cities as well as new cities coming soon, and organizing growth structure. A portion of the start-up capital will go toward legal fees. Service provider recruitment and marketing design is pivotal to the success of ThanksBud and the budget must be able to support the branding of an image that will be a driving force in the success of our company. Additional hardware will be needed including computers, phones, servers, and web site costs. Travel will be required in order to meet with investors, organize marketing campaigns, and resolve issues that may arise.

The majority of the start-up funding will be used for service provider recruitment and spending which is laid out in the marketing sections below. Because we understand that cash is scarce for start-up companies, ThanksBud will use the reserve cash for any expenses needed to propel the business past start-up and into the more profitable stages of the company.

Start-up Requirements Start-up Expenses Legal Marketing Design Service Provider Recruitment Travel Expenses Rent Deposit Servers, Hardware, Site Costs Other Total Start-up Expenses

$20,000 $10,000 $80,000 $8,000 $1,500 $25,000 $5,000 $149,500

Start-up Assets Other Current Assets Total Assets

$10,000 $10,000

Total Requirements

$159,500

SERVICE DESCRIPTION ThanksBud is an online social marketplace changing the way people buy and sell services. When a service buyer has an issue, the buyer posts the new project and the price they are willing to pay on thanksbud.com. Providers in that area are notified of a new posting through text message and e-mail. The service provider can instantly accept through text message, ignore the job, or request more information. The first provider to accept will be sent further information to get in touch with the user and the service buyerâ&#x20AC;&#x2122;s account is charged for the amount of the project. Next, the provider completes the project and the problem is solved. Finally, the service buyer and the service provider both leave feedback and the transaction is complete. The review will be broken into subcategories and each provider will be given a ThankRank. The ThankRank will be a visual representation of how many positive and negative reviews that the provider has received. New ThanksBud users will be able to drill down into these ThankRanks and read more detailed reviews. By using the ThankRank system, service buyers will be able to select trustworthy and competent service providers with confidence. Potential buyers will be able to search ThanksBudâ&#x20AC;&#x2122;s databases without registration and free of charge. ThanksBud allows potential buyers to search through both keywords and a categories for ease of use. Before a service buyer can post a project, they will be forced to register an account. After registering, a service buyer can post new service projects and send projects to service providers in their areas via text messaging (SMS) and e-mail. ThanksBud will deduct 10% of the total transaction amount as a fee for our services. This fee will not be hidden to either the buyer or the seller of the service. For example, if a service buyer posts a project for $100, the message sent to the use will include an offer of $90 to complete the service. This way, the service buyer pays the amount expected and the service provider gets paid the amount that he agreed to provide the service for. From the service providerâ&#x20AC;&#x2122;s perspective, service providers will have access to an unlimited stream of job offers and will be able to keep a steady flow of business opportunities even when business is slow. All providers are worried about workflow. Long droughts of activity as an independent contractor or small business can mean the end for a company. Giving those providers a backup plan, at the very least, will be more than enough to entice the providers to set up an account with ThanksBud. During the start-up phase, ThanksBud will focus on six categories of service providers including handymen, plumbers, deck/fence builders, lawn care providers, heating and air services, and painters. Eventually, ThanksBud will expand to cover all major service categories. ThanksBud will outsource the registration of service providers in order to populate the databases for the start-up phase of the company. ThanksBud has set up a short pre-registration process in order to efficiently and effectively build our database of service providers. We will begin by populating service providers in five cities including Dallas, Memphis, Kansas City, Houston, and Little Rock. After year one, ThanksBud will expand to include all six services provider categories for the 50 largest cities in the United States and will eventually grow to accommodate every major city in the United States. Potentially, ThanksBud will expand its markets globally. Essentially, ThanksBud will facilitate a merger of technology and the services industry to create more jobs for providers, a competitive pricing model for consumers, and connectivity within the field of small services like never before.

Fulfillment Process HTTP://beta.thanksbud.com has been in development for over a year and the website is currently being internally tested by the ThanksBud team. See image below.

ThanksBud Website: ThanksBud.com will focus on simplicity, usability, and benefit to the user. The founding partners will use their expertise in online marketing and interface development gained through their years of experience while owning a web application development company. ThanksBudâ&#x20AC;&#x2122;s main product will be a robust web based environment where users can search the ThanksBud community for service providers in their area. Further, ThanksBud.com will maintain many social networking features that will include messaging, chatting, photos, and reviews. Most of these features will be limited to use while a project is underway. Messaging will be enabled after a new project has been accepted so that the buyer and the seller can efficiently communicate through out the project. Also, service providers will be able to post pictures of their progress directly from their cell phones. After the project is completed, the service buyer will review the service provider and this information will be available to all ThanksBud.com users.

Text Messaging (SMS)/Mobile Technology:

The entire process of buying and selling services with

ThanksBud.com can be accomplished through a cell phone. Negotiations, new project offers, alerts, and accepting projects can be easily conducted through simple text messaging. Further, with growth and recent advancements in smart phone technology, full website interface functionality, and on board applications will add to simplifying mobile interface for ThanksBud users.

Technology ThanksBud is an Internet business and, therefore, will be heavily reliant on Internet and mobile technology to run the services that it provides. The customer will benefit from the never before seen network of online service providers, ease of use, and access to provider information. Combining social networking, online marketing, customer review systems, easy to use interface, customer support, and the cell phone will be the foundation for adoption of the ThanksBud marketplace.

The use of text messaging, which, up until now, was non-existent within the service industry, allows fast response time and efficient distribution. In turn, service buyers will receive access to the service providers and seemliness communication between the parties will contribute to a great experience and repeat customers. Online shopping has completely revamped peer-to-peer transactions. ThanksBud will continue this trend by revolutionizing the way that people select service providers and negotiate prices within the service industry. ThanksBud’s technology will make it cheap, easy, and practical to get great services every time.

Future Services With the growth of cell phone applications, ThanksBud will work to develop mobile phone applications that will allow users to fully utilize ThanksBud through a simple mobile interface. These applications will help market ThanksBud.com and will also encourage new users to try the product and post their first project. The first mobile application will be for the iPhone but applications will be developed for Microsoft, Palm, Blackberry, and Android. In addition to mobile applications, ThanksBud will develop applications for social networks. According to Comscore, Facebook and Myspace had 68,557,534 and 58,555,800 unique visitors during the month of January 2009. By developing a ThanksBud application for these social networking sites, users will be able to keep track of their projects and utilize ThanksBud’s functionality effortlessly and without ever having to leave the website likely used on a day-to-day basis. In addition to functionality, developing a third party application for Facebook, Myspace, and other social networking sites will increase Internet visibility and will act as an efficient and viral marketing campaign. Friends will be able to easily tell friends about their experience with ThanksBud.com and the service will be easily shared across these already established social networks. ThanksBud plans to incorporate our business structure into many areas of the service industry. By focusing on growing ThanksBud incrementally, we can ensure that each category is properly populated with service providers for each market that ThanksBud does business in. Further, new users will not be turned away by empty categories and too many options in an unfamiliar environment. Each time ThanksBud expands its service capabilities, ThanksBud will be essentially starting a new company that will have the potential to be as large as the previous. ThanksBud will eventually grow to accommodate any service requested by service providers.

MARKET ANALYSIS “People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully.” - Steve Jobs Every person of every age spends a large part of his earnings on services. Online purchasing is growing at a staggering rate. Whether a young boy has started a small lawn mowing business or an adult has a successful deck building company, each type of service provider needs people to purchase their services. People from all types of communities have service needs and with the ever-growing age of technology and connectivity the way to buy and sell services is changing.

With such a large potential market, attempting to market to everyone and cover every service could easily overwhelm ThanksBud. Thus, ThanksBud has decided to focus its efforts towards building a seamless and robust online marketplace. In addition, ThanksBud will limit its target market to five cities and the number of service categories offered to six including: plumbing, deck/fence repair, lawn care, heat/air conditioning service providers, painting, and handyman services. Once ThanksBud has penetrated the target marketplace, we will expand our marketing coverage to include 50 cities. ThanksBud will also expand the number of service categories offered through our online marketplace. By controlling each release, ThanksBud can sufficiently focus its efforts on proper marketing, customer service, and overall success within each region and within each service category. Focused and controlled growth will allow ThanksBud to increase its target market without forfeiting company integrity and long-term customer satisfaction.

Market Segmentation Online companies must clearly address the distinct segmentation of the market based on age of the online user. ThanksBud wants to bridge the gap between the new age user and the old customs of the service industry. The first market segment to get on board will be the young Internet user and, in our case, the young homeowner that has grown accustom to online purchasing. Between 1950 and 2000, the share of jobs in the goods-producing sector—which includes the construction and mining industries as well as manufacturing—fell from 41 percent to 20 percent; virtually all employment growth between 2000 and 2010 is expected to come from the services-producing sector. The share of workers using computers increased from 24 percent in 1984 to 73.1 percent in 2008. According to internetworldstats.com, Internet users in the US have grown 128.3% between the years of 2000 and 2008. Therefore, the possible bridge between young and old potential users is closing and the vast majority of people of all ages have the knowledge required to use ThanksBud’s online marketplace. However, since age demographics will remain proportionally constant in each city as to service buyers, the market segmentation must be analyzed from the viewpoint of the service provider. To start, ThanksBud will segment the marketplace based on six service categories: plumbing, painting, handyman services, fence/deck repair, lawn care, and heating and air conditioning services.

Considerations: 1.

The first year marketplace consists of homeowners within Dallas, Houston, Kansas City, Memphis, and the Little Rock metropolitan area. These cities average approximately one million people and total over 1.8 million households.

During year two, the marketplace will grow from five to 50 cities within the US. These cities average over one million people and total over 19 million households.

The 1% growth of each population during years 2-5 is comprised of 1% population growth.

The Market Analysis Table assumes that each user will only utilize ThanksBud’s marketplace one time per year for only one of six service categories. The data does not consider repeat customers and expansion of services that may apply to individuals that do not own homes.

For each additional service used by each registered user of ThanksBud, the number of transactions can potentially double.

Market Analysis Potential Customers Growth % of Target Market

Year 1 Year 2 Year 3 Year 4 (5 City (Increase Launch) to 50 Cities) 1,345,000 13,569,710 13,690,480 113,812,325

% of Target Market

3,655,000 36,876,295

37,203,485 37,534,596

37,868,6554

5,000,000 50,445,005

51,346,921 51,346,921

51,803,909

- Does Not Use the Internet - Uses the Internet

Total

Year 5

13,935,255

Market Analysis

Target Market ThanksBud is initially tapping into the following services areas: home repair, plumbing, handyman work, lawn care, and painting. Most homeowner expenditures for services can be grouped into one of these categories. ThanksBud has conservatively represented all projections made in this business plan with the following assumption: each service buyer using ThanksBud.com will only use the ThanksBud marketplace for one service only one time per year. According to the US Census Bureauâ&#x20AC;&#x2122;s average annual expenditures and characteristics, consumer expenditure Survey taken in 2007, homeowners spend an average of $4,853 per year on household services. Applying this figure to the 1.8 million homeowners within our first year target market and the 19 million homeowners within second year target market, total market opportunity equates to $8.7 billion and $92.2 billion respectively. ThanksBud understands that the total market share gained during our first few years will be a small portion of this potential market. However, knowing the potential market can give us a basis for making realistic projections for each stage of our company. By marketing online, ThanksBud will expose the young, frequent Internet user to its service. Online marketing will include mobile applications, social network applications (e.g. Facebook and Myspace), online advertising, and search engine optimization strategies. In addition, ThanksBud will allow new users the opportunity to share ThanksBud.com with their email contacts. By utilizing registered usersâ&#x20AC;&#x2122; email contacts, ThanksBud will be able to grow virally to friends of users. Most likely, the majority of these users will also be young Internet users. Once the younger population has become aware of ThanksBud.com, the older user will be more likely to hear about the service. With the data indicating that Internet usage in the US has penetrated over 73% of the US population, ThanksBud will rely on the fact that many older homeowners will also be subjected to the online marketing campaigns.

Market Needs The service industry needs information. Although companies have attempted to provide information about providers with success, service buyers still lack the necessary information to make decisions beyond service provider reputation. Like those companies, ThanksBud intends to conveniently provide information and reviews to ensure quality but, on top of that, ThanksBud will provide a platform to communicate and make offers to those providers. ThanksBud will also utilize mobile technology to ensure that each buyer’s service request is instantly distributed to multiple qualified providers that all have incentive to keep prices on par with industry and regional standards. The service industry currently does not provide a universal method for service costs. Thus, a buyer never has enough information to negotiate. ThanksBud plans to solve this problem by becoming a real-time exchange where ThanksBud users can come to check recent service transactions within their region and compare prices. By using this information, buyers can make informed offers to providers through ThanksBud’s unique service. No company has managed to build a marketplace that can provide such a useful tool for buying services.

Market Trends Internet usage and online shopping are at all time highs. Online shopping has grown exponentially over the past few years. In fact, ComScore, an online analytics company, announced that US commerce conducted over the Internet totaled $214.4 billion in 2008. Discount sites had a 46 percent increase in traffic, reaching more than 31.5 million in December alone. Classifieds also saw a sharp increase in traffic, growing 27 percent to 52.8 million visitors as Americans attempted to save and make money in light of the current economic market. Craigslist, leader in online classifieds, grew 51 percent. ComScore predicted that 2009 would be another record-breaking year for the mobile Internet, with smartphones continuing to drop in price and to offer new features. Consumer spending is moving online and the tightening of household budgets has driven consumers to go online in order to find the best ways to stretch their dollars. In addition, mobile shopping and mobile Internet is increasing at an incredible rate with the recent launch of the Apple iPhone and app store and the launch of similar application marketplaces imitated by the other major cell phone companies. According businessinsider.com, Apple analyst Gene Munster has stated that “there will be 85 million iPhone and iPod touch users by the end of 2009. Roughly 95% of iPhone and iPod touch owners are projected to use the app store in 2009, spending on average $15 each. That’s a $1.21 billion market.” This projection shows Americans’ newfound willingness to spend money through mobile applications. ThanksBud intends to capture market share of these growing sources of consumer spending before theses trends becomes the norm. People are getting more Internet savvy, consumer freedom is becoming more of an asset, and the first person to deliver these things to the masses can gain huge profits by capitalizing on these trends.

Market Growth Internet Usage Growth

a73.1% of the United States population uses the Internet. a128.3% growth from 2000-2008

Http://www.internetworldstats.com/stats.htm - “Internet Usage Statistics”

Online Shopper Growth

aU.S. Commerce conducted over the Internet totaled $214.4 billion in 2008. aUS online retail sales are expected to rise 11% in 2009. aand Coupon sites increased in number of unique visitors from 27 million to 35 million, a 32% change, between October November of 2008 which made them the number 1 visitor gaining website category.

Population Growth

aThe United States population is approximately 306 million people and population continues to grow at roughly 1% equating to roughly over 3 million people each year. ausers Approximately one in six Americans is a homeowner, which means that ThanksBud gains 500,000 new potential per year by population growth alone.

Mobile Commerce Growth

a262.7 million wireless subscribers in the US capturing 84% of the US population. a17.5% of households in the US are wireless only. amore Young adults who are cell phone owners are far more likely to report text messaging overall (81%). However, a surprising statistic is that fully 66% of those ages 30-49 use text messaging. a44.7% of US mobile phone users surveyed say a mobile phone with better Internet capability will be a key factor

in their next mobile phone purchase decision.10

Comscore Online Analytics Http://www.itfacts.biz/us-e-commerce-to-reach-156-bln-in-2009/12548 Http://www.itfacts.biz/fastest-growing-web-categories-in-november-2008/12276 US Census Bureau Supra. http://www.ctia.org/media/industry_info/index.cfm/AID/10323 Supra. http://www.itfacts.biz/category/mobile-usage http://www.itfacts.biz/category/mobile-usage

COMPETITIVE ANALYSIS

MARKETING PLAN Market Opportunities According to the United States census bureau, the US population has grown to over 305 million people at an annual growth rate of .89%. Over 65% of these individuals are homeowners. Each homeowner spends an average of $4,853 per year on services for their home. This equates to a market value of over $900 billion for the purchase of home repairs. ThanksBud intends capture a small portion of that vast marketplace by focusing on six specific service industries: lawn care, plumbing, heating and air conditioning, painting, deck and fence building, and handyman services. In addition to their common thread with having to do with home repair, ThanksBud decided to begin with focusing on these six service categories for the following reasons:

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Nearly one quarter of U.S. households utilized professional lawn care services in 2008. Industry sales reached over $54 billion in 2008.11

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According to BusinessWire, although highly fragmented, residential HVAC ("Heating, Ventilating and Air Conditioning") and plumbing service industries was worth approximately $70 billion in 2008.

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Over 500,000 plumbers and 312,000 heating and air condition mechanics worked in 2006.12

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Plumbing retail sails hit 12.5 billion in 2005.13 In addition to retail sales, over 1.5 million new houses were built in 2007 each needing contracted plumbers, HVAC service professionals, lawn care service providers, painters, and deck builders.14

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An estimated 7.5 million homes have decks and the decking market was worth about $ 4 billion in 2004.15

ThanksBud intends to focus on these six areas of service in order to gain market share and visibility within the home repair industry. Only then will we expand our efforts to market new services. ThanksBud will begin with six services; however, will quickly expand the capabilities to encompass many other industries. Each time ThanksBud increases the number of industries, the company has the potential to double its marketplace, double its usage by current customers, and consequently double its profit.

Marketing Strategy ThanksBud will focus its marketing energy towards Internet advertising and online visibility during the start-up phase of the company and will later incorporate print advertising and public relations events to supplement marketing in key geographic regions.

Online Marketing Recognition by the Tech Community After reading start-up blogs and tech writers tear down company after company, ThanksBud has learned that those same 11 12 13 14 15

http://www.ibisworld.com/industry/retail.aspx?indid=1497&chid=1 http://www.bls.gov/oco/ocos211.htm#projections_data Market Share Reporter, Home Improvement Market, 2008, 18th Edition. US Department of Housing and Urban Development, US Census Bureau News Joint Release, Jan. 22, 2009. Supra.

bloggers and tech writers are the first people to convince that a new tech start-up is worth visiting. ThanksBud will spend a constant and systematic amount of time and energy towards making sure that the tech community knows about our company, understands our company, and most importantly speaks positively about our company. Approximate Budget: $1,000/month.

AdWords and Natural Ranking During its start-up year, ThanksBud will focus on marketing aggressively, efficiently, and virally through utilizing proven online marketing success tools. ThanksBud’s co-founders have extensive experience in search engine optimization and online marketing. ThanksBud will budget $10,000 for AdWords on Google Adwords and $2,000 for AdWords on other search engines. Google is by far the number one driver of website visitors and a substantial investment must go into getting Google to favor ThanksBud.com over other service marketplaces. Another $5,000 per month will be used for search engine optimization in hopes to increase ThanksBud’s natural ranking. Approximate Budget: $17,000/month.

Mobile Phone Applications In addition to direct marketing expenditure, ThanksBud will create mobile applications and API’s that will be able to be imbedded into social networking sites and cellular phones. The first application that ThanksBud will develop will be for the iPhone. Because of the unique ability for users of ThanksBud to buy and sell services completely through cell phones, an application would improve this experience exponentially. The amount of flexibility added to what a user could would greatly expand the capabilities of the mobile interface and effectually benefit user experience. Also, people will be able to use and share the service wherever they go. Approximate Budget: $25,000.

Social Networking Applications Next, ThanksBud will develop Facebook and MySpace applications. By allowing ThanksBud users to attach an application to their social networking sites, users will both passively advertise by association and actively invite friends to use the ThanksBud marketplace. According to ComScore, MySpace had 76 million unique visitors and Facebook had 55 million unique visitors in the month of December 2008. With the growth of social networking sites such as these, online marketing has changed. A popular application on either network could mean a large increase in unique visitors coming to the website. ThanksBud intends to use sufficient resources to build these applications during its first year as a company. Approximate Budget: $20,000.

Import Contacts One form of online marketing that will be relatively free of cost will be made possible through our satisfied users. Once a user registers with ThankBud.com, they will have the option to spread the word through e-mail. When a user is logged in to the website, the home page log-in screen will be replaced with an “import contacts” screen that will allow a user to send a generic letter to all the people in their address books. This service will be compatible with Gmail, Hotmail, AOL Mail, and most other popular web-mail service providers. To entice the user to share ThanksBud.com, we will offer incentives to use this service. Incentives will include giveaways, upgraded job offer distribution, and improved ThankRank. Approximate Budget: $500/month.

Print Marketing and Events Print Advertising Print advertising will be used to target specific audiences. In order to supplement online advertising and to focus marketing efforts directed towards particular geographic regions, ThanksBud will spend part of the marketing budget on print advertising. This advertising will include magazine advertising, newspaper classified advertising, and possibly gorilla marketing (e.g. flyers, stickers, etc.). Local newspapers provide large attentive audiences, focused clientele, and regional advertising opportunities. In addition, magazines and tradeshows involving the service categories offered on ThanksBud will provide a proper venue for print advertising. ThanksBud intends to keep track of website statistics through Google Analytics and will be able to determine which regional areas may need an influx of print advertising in order to boost visibility and drive users to the website. Approximate Budget: $20,000.

Public Relations Events In order to expose ThanksBud to influential members of each community in which we launch, ThanksBud will host events in each of the six start-up cities. These events will be geared towards providing information to people that will pass the information along to the masses. ThanksBud will invite large players in the service industries offered on ThanksBud as well as individuals that may influence local usersâ&#x20AC;&#x2122; choices in Internet usage (i.e. bloggers, radio broadcasters, and journalists). ThanksBud will only throw these events if necessary and if potential benefit heavily outweighs cost and time. Approximate Budget: $35,000.

SALES STRATEGY The ThanksBud sales team will have thorough service and technical expertise and will be trained in following up with leads, informing and helping potential providers and buyers, and making sales to large businesses which may lead to good sources of recurring revenue. The sales team will be adaptable. Even though the initial push for sales will be made through Internet advertising, the sales team will need to back up the online marketplace as it begins to grow. When users have questions, inquiries, or just present interest in ThanksBud, the sales team will then inform the potential customer and promote the functionality of the website. With such a large volume of Internet traffic, the sales team must be motivated individuals that can assist current users and recruit new users simultaneously. Once a qualified user is found, the sales team will promote deals and offers to entice new users to use and reuse the service. The sales team will also develop current service providersâ&#x20AC;&#x2122; profiles and information in order to make them more likely to get job offers from service buyers.

SALES FORECAST The average cost for each of our six service types is: (1) $100-250 for plumbing16, (2) $200-400 for interior and $15005500 for exterior painting17, (3) $150-425 for heat and air repairs and $1500-3500 for replacement18, (4) $1800 for a 200 square foot deck with no add-ons19, (5) $40 per week for lawn care, and (6) $60-125 per hour for a professional handyman company often with a $150-350 minimum.20 ThanksBud will make 10% on each project completed through our website. Sales Forecasts will use the conservative end of each average service charge to calculate projections.

Year One During year one, ThanksBud will launch in five cities with populations amounting to over 5 million people with 2 million of those people owning their homes. Our goal is to attract 1% of each cities population or 20,000 unique visitors to ThanksBud.com per month. Of those 20,000 visitors, ThanksBud is conservatively projecting to transact (5) handyman, (5) plumbing, (3) Lawn Care, (2) Deck Repair, (2) Heating and Air, and (2) Painting transactions in our first month per city with a 32% monthly growth rate for the first year.

16 17 18 19 20

http://www.gomestic.com/Homeowners/Plumbing-Costs.284909 http://www.costhelper.com/cost/home-garden/painting-interior.html http://www.blueribbonhomewarranty.com/repaircosts.htm http://www.amazingdecks.com/deck_estimator.htm http://www.costhelper.com/cost/home-garden/handyman.html

Years Two through Five After ThanksBudâ&#x20AC;&#x2122;s second round of funding, the target market will increase in size by 10 fold. ThanksBud extend its marketplace the 50 largest metropolitan areas within the US containing approximately 50 million potential consumers and over 19 million homeowners. Therefore, sales forecasts reflect growth that is proportional to growth in target market population. After expanding to 50 cities, ThanksBud will increase its target market in accordance with its resources and demand. Thus, ThanksBud is conservatively projecting a 10% monthly rate of growth for years 3-4 and reducing the growth rate to 5% in year 5. In comparison, companies like Angieâ&#x20AC;&#x2122;s list, a main competitor of ThanksBud, experienced a 605% growth during the five years after its first year to launch.

Notable Assumptions For the purposes of this plan, ThanksBud assumes that each service buyer purchases one service per year. Also, increases in market size and offered categories have not been taken into account. If projections were to consider increased categories, multiple transactions by each user, and expansion of market size to include the remaining 83% of homeowners in the US (250 million people), revenues would seem unreasonable. Therefore, ThanksBud has used the most conservative numbers for all projections. Conservative numbers will force ThanksBud maintain perspective and to remain cautiously deliberate with cash flow, expenditures, and growth. See table for Sales Forecast by Month and Sales by Year in the Appendix Section.

Sales by Month

Sales by Year

MANAGEMENT TEAM Key Employees Anthony Johnson, Co-Founder, President of Sales Prior to co-founding ThanksBud, LLC, Anthony Johnson obtained a B.S. in computer engineering and is currently working at Friday Law Firm while attending UALR Bowen School of Law. The balance of computer knowledge and business structure gives him all the tools necessary to understand both technical and business sides of an online company. Anthony Johnson leads the marketing division and ensures that business relations are in the proper order so that ThanksBud will meet goals and projections. He also develops new marketing strategies, advertising campaigns, handles legal matters, and oversees accounting.

RJ Martino, Co-Founder, President of Product RJ Martinoâ&#x20AC;&#x2122;s first start-up was as cofounder of iProv. LLC, a computer networking, web design, and marketing company based out of Little Rock, AR. RJ has started multiple companies and has expertise in many areas of the computing industry. RJ has equal knowledge of technical components and practical application of those components. RJ Martino is a majority shareholder and one of the three co-founders of ThanksBud, LLC. RJ Martino leads the development team and makes decision about structural design and integrity. He currently oversees the development division ensuring productivity and functionality. RJ also pioneers new features and hires new employees to work within the development division.

Roxane Martino, Co-Founder, Vice President of Operations Along with RJ, Roxane Martino also cofounded of iProv. LLC. As the third co-founder of ThanksBud, Roxane will be managing the overall operations and coordination between the business team and the technical team. Roxane obtained

her undergraduate degree in Art and Design from the University of Arkansas at Little Rock and is currently enrolled at the University of Arkansas at Little Rock Bowen School of Law. Roxane Martino helps in managing the marketing department and has a strong influence on design and presentation of ThanksBud. Roxane also coordinates the marketing and design departments with the development department to ensure that everyone is on the same page.

Management Team Gaps The founding members have the sufficient skills to manage workload during ThanksBud’s start-up year. However, as the company grows, additional management will need to be hired. Marketing Manager – To ensure systematic and deliberate marketing efforts continue for the life of the company, ThanksBud will need a marketing specialist to analyze response to marketing efforts and to adjust and implement new marketing strategies accordingly. Sales Manager - Sales and customer support will be a large part of the growing process. As our sales force grows, ThanksBud will need to hire a manager to keep track of goals and make sure that those goals are met. Human Resources Manager - As ThanksBud grows, the need for a human resource specialist will increase as well. Until an HR manager is hired, the founding members will interview, approve, and hire new employees.

Organizational Structure RJ Martino and Anthony Johnson are the creators, majority partners, and co-founders of ThanksBud. Roxane has been on board since inception and is also a founding partner of ThanksBud. Initially, all employees will answer directly to a partner and the workload will be split among them. RJ Martino will lead the development department, Anthony Johnson will lead the marketing and business departments, and Roxane Martino will be in charge of operations. Each partner is multi-faceted and will be involved in all large decisions as well as many decisions that are made in other departments. As ThanksBud will begin with a small staff, each person will have to utilize their diverse backgrounds by adjusting their scope of employment to handle anything that comes their way. All major decisions that cannot be agreed upon by ThanksBud’s co-founders will be decided by vote. Each founder will have one vote per share of ThanksBud ownership. Only in the case of a tie will the advisory board will be given voting authority. The board’s vote will resolve any executive stalemates. As a small company with only 3 employees during our first year of operation, ThanksBud will stress the importance of performing as a team and working together to attack the various problems presented.

OPERATIONS PLAN Location ThanksBudâ&#x20AC;&#x2122;s main office is located in Little Rock, Arkansas. However, ThanksBud will relocate if it becomes necessary to maximize financing and growth potential. Little Rock is centrally located within the US and will be especially convenient during its first year as it launches in 5 cities located within a 450 miles radius. ThanksBud will focus on cost and functionality in selecting all real estate purchases. A cost-benefit analysis will be considered before each major company decision.

Personnel Plan ThanksBud is assuming rapid growth in the second and third years. If projections vary from actual growth, personnel will be adjusted accordingly. ThanksBud will not attempt to demand unreasonable sales numbers in order to support an oversized personnel. On the contrary, the number of employees will be based directly on sales growth and will only increase when ThanksBud can no longer run efficiently otherwise. During year one, the three founders will draw minimal salaries and necessary support will be contracted. During year 2, ThanksBud will expand from 5 to 50 cities and will need proper full time support. We will hire (5) Programmers, (10) Sales Representatives that each be assigned 5 cities, (4) Administrative Staff, an Office Manager, and (5) Customer Service Representatives. During years 3-5, personnel will grow to support growth in sales. In addition, ThanksBudâ&#x20AC;&#x2122;s co-founders will be forced to distribute the quickly increasing number of responsibilities that come with company growth to department head positions including VP of Development, Senior Programmer, and Sales Manager.

Personnel Plan Development Personnel President of Product Senior Programmer VP of Development Programmer(s) Subtotal Sales and Marketing Personnel President of Sales Market Researcher/ Analyst Sales Manager Sales Representative(s) Subtotal

Year 1

Year 2

Year 3

Year 4

Year 5

$36,000 $0 $0 $0 $36,000

$90,000 $0 $0 $348,000 $438,000

$120,000 $0 $0 $361,920 $481,920

$120,000 $85,000 $0 $376,397 $581,397

$120,000 $88,400 $95,000 $391,453 $694,853

$36,000 $0

$90,000 $0

$120,000 $0

$120,000 $78,000

$120,000 $159,120

$0 $0 $36,000

$0 $450,000 $540,000

$62,000 $468,000 $650,000

$64,480 $621,720 $884,200

$67,059 $736,589 $1,082,768

General and Administrative Personnel VP of Operations Administrative Staff Office Manager Customer Support Representative(s) Subtotal

$36,000 $0 $0 $0

$90,000 $152,004 $42,000 $210,000

$120,000 $158,080 $43,680 $260,400

$120,000 $164,403 $45,427 $354,816

$120,000 $208,979 $47,244 $453,009

$36,000

$494,004

$582,160

$684,646

$829,232

Total People

Total Payroll

$108,000

$1,472,004

$1,714,080

$2,150,243

$2,606,853

Distribution ThanksBud’s distribution strategy pioneers new and marketable mobile technology to provide users the most efficient and effective tool to buy and sell services online. Each time that a service buyer creates a new project, the project will be distributed to every provider within range that sells the type of services desired. This distribution will be done through text message (SMS), e-mail, and the website “my account” page simultaneously. By integrating multiple technological avenues to distribute job offers, service buyers can receive quotes from numerous providers quickly. Service providers can receive text updates that will be able to accept a job while working in the field. The end result will give service providers free leads and workflow; and, it will give service buyers leverage to negotiate cheap services without sacrificing service quality. Once distribution of job offer is sent and a service provider accepts or has further questions, the sales team will support this distribution by linking jobs with providers in the case that no one accepts the job and, even more, to assist with individuals that are unfamiliar with the process. Salesmen’s role in assisting projects that are in progress will decrease as more ThanksBud users become familiar with the marketplace and how it works.

Customer Service and Dispute Resolution ThanksBud anticipates that a few users will be unfamiliar with our unique process and may decide that ThanksBud is just not for them. ThanksBud also anticipates that some projects may not go as smoothly as most and disputes may arise. However, to assist in preventing these situations, ThanksBud will employ a team of customer service and dispute resolution representatives. These employees will answer the questions and concerns of ThanksBud users and will play a pivotal role in resolving disputes as quickly as possible. Because disputes are inevitable when dealing with such large transaction volume, ThanksBud has allotted 1% of total revenue for cost of dispute resolution beyond customer service representative expenditures.21

Strategic Alliances One current strategic alliance formed that will undoubtedly benefit ThanksBud is with CJRW, a marketing agency with its office in Little Rock, Arkansas that is ranked in the top 3% of 5,900 marketing agencies across the US. CJRW’s expertise in advertising, marketing, public relations, interaction research, diversity marketing, media placement, and 21 The 1% of total revenue figure was established by taking the average number of disputes per transaction for similar coupon websites. These sites include eBay.com, Amazon.com, Shop.com, Paypal.com, Buy.com, etc.

video production will be beneficial to ThanksBud through every stage growth. With discussions concerning ThanksBud’s website launch, iPhone application release, and social networking utilization underway, ThanksBud has already realized the value of CJRW’s expertise and insight that would be lacking if not for this alliance. Small legal issues can grow to large company problems when gone unaddressed or unnoticed. Therefore, ThanksBud needs strong legal advisors that can help recognize potential legal threats. On top of the fact that all co-founders of ThanksBud attend law school at the University of Arkansas, each co-founder owns one or more successful small businesses. Consequently, strong relationships throughout the Little Rock business community have been formed resulting is overwhelming support and assistance. ThanksBud has been working closely with attorneys of Rose Law Firm, Friday Law Firm, and Hosto, Buchan, Prater & Lawrence Law Firm in order to anticipate potential legal threats and minimize their potential costs to ThanksBud. Further, they have helped to form budget estimates on dispute resolution costs, insurance needs, and amount of legal protection needed for all of ThanksBud’s current and future projects.

Milestones

Company Launch Date ThanksBud is currently in private beta and users can sign up for updates through our website: www.thanksbud.com. Although private beta may be available as soon as Mid-April 2009, our fully accessible website and official company launch is tentatively set for June 1, 2009.

CRITICAL RISKS Direct Online Competition The biggest threat will be direct online competitors imitating our modifying their business models. Companies with large resources could potentially gain a large part of the market share quickly by adapting to our companyâ&#x20AC;&#x2122;s unique business model. However, ThanksBud intends to gain market share quickly and develop a name for being the most innovative, easy, and satisfactory service available.

Service Disputes Although ThanksBud foresees some disputes between service providers and service buyers due to failure to communicate terms, quality of work, or other reasons, ThanksBud does not expect this to be a large percentage. ThanksBud heavily focuses on customer support, dispute resolution, and customer satisfaction as discussed in the operating agreement. Further, the rating system will allow buyers to leave reviews for poor service providers, which will prevent future buyers from using these providers and will, in turn, reduce the number of disputes.

Intellectual Property It is difficult to put a price tag on intellectual property. All products developed will have a intellectual property protection including: copyright, trademark, patents, trade secrets, and confidentiality agreements. But, many countries do not protect these laws like the United States. Additionally, any protection lawsuits can be expensive and may unnecessarily dilute company resources.

Economic Conditions ThanksBudâ&#x20AC;&#x2122;s services are directly dependent on economic market conditions. Although many companies diversely suffer from recession, statistics have shown, as discussed in the marketing strategy section, that coupon sites and discount sites have grown over the last few months and thrive in down markets. People are looking for any and every avenue to save money and ThanksBud will allow customers to do so.

FINANCIAL PLAN ThanksBudâ&#x20AC;&#x2122;s business model is based on distribution of services between service buyers and service providers. Revenue is generated per transaction and, therefore, in order to generate large revenue, ThanksBud must increase the number of transactions. Because ThanksBud plans to increase market size during year 2 and then systematically increase both market size and category coverage, significant inflows of capital is required to properly fund projected growth.

START-UP FUNDING REQUIRED Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required

$149,500 $10,000 $159,500

Assets Non-cash Assets from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets

$10,000 $510,500 $510,500 $520,500

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Other Current Liabilities (interest-free) Total Liabilities

$0 $0 $0 $0

Capital Planned Investment Angel Investors Bootstrap Funding Total Planned Investment

$600,000 $70,000 $670,000

Loss at Start-up (Start-up Expenses) Total Capital

-$149,500 $520,500

Total Capital and Liabilities Total Funding

$520,500 $670,000

Projected Profit and Loss Direct costs of sales are directly proportional to sales by nature of ThanksBudâ&#x20AC;&#x2122;s business model. When a service buyer creates a job offer, the buyer will set a fixe price that reflects the amount that he is willing to pay for that particular service. However, before ThanksBud distributes the offer to service providers, ThanksBud decreases the offer by 10%. Service

providers then accept the job with full knowledge that he is getting paid the amount quoted in the distributed offer (90% of the original offer). Once a service provider accepts the job, ThanksBud charges the service buyerâ&#x20AC;&#x2122;s account and places the funds in escrow. At this point, the contract for service is between the service provider and service buyer. Once the project is completed, the service provider receives the amount he agreed to provide the service for, the buyer pays the amount he offered to pay, and ThanksBud retains the 10% remainder. Therefore, profits are directly proportional to the number of services bought and sold through our online marketplace and the key to early financial success is increasing that number. Marketing and advertising will be the largest use of funds during ThanksBudâ&#x20AC;&#x2122;s start-up year as we try to gain industry awareness and online presence. After the start-up stage, the marketing budget will increase proportionally with growth but, eventually, expenditures will level out. Once ThanksBud has acquired a solid foundation of customers, the less money will be sufficient to market to a larger audience. The annual profit and loss projections for years 1-5 are included in the table below. Detailed monthly projections for years 1-2 and quarterly/annual projections for years 3-5 are located in the appendix.

Pro Forma Profit and Loss Year 1 Sales $1,447,960 Direct Cost of Sales $1,324,644 Development $36,000 Payroll Other Costs of Sales $1,448 Total Cost of Sales $1,362,092

Year 2 $14,832,071 $13,567,185 $438,000

Year 3 Year 4 $48,210,870 $137,551,190 $44,003,892 $125,321,583 $481,920 $581,397

Year 5 $303,482,220 $276,408,820 $694,853

$14,832 $14,020,017

$48,211 $137,551 $44,534,023 $126,040,531

$303,482 $277,407,155

Gross Margin Gross Margin %

$85,868 5.93%

$812,054 5.47%

$3,676,847 7.63%

$11,510,659 8.37%

$26,075,065 8.59%

$36,000

$540,000

$650,000

$884,200

$1,082,768

$267,000 $20,000 $35,004 Year 1 $0

$748,450 $318,343 $70,008 Year 2 $260,000

$823,295 $350,177 $145,600 Year 3 $792,000

$905,625 $385,195 $221,424 Year 4 $936,000

$996,187 $423,715 $303,081 Year 5 $1,080,000

Operating Expenses Sales and Marketing Expenses Sales and Marketing Payroll Online Advertising Print Advertising PR Events Salesmen / Employee Bonuses

Other Sales and $0 Marketing Expenses Total Sales and $358,004 Marketing Expenses Sales and 24.72% Marketing % General and Administrative Expenses General and Administrative Payroll Marketing/ Promotion Office Supplies Utilities Insurance Payroll Tax (8.25%) Legal Travel Expenses Rent Total General and Administrative Expenses General and Administrative % Other Expenses: Consulting Miscellaneous Expenses Total Other Expenses Other % Total Operating Expenses

$35,480

$39,028

$42,931

$47,224

$1,972,281

$2,800,100

$3,375,375

$3,932,975

13.30%

5.81%

2.45%

1.30%

$36,000

$494,004

$582,160

$684,646

$829,232

$12,000

$53,648

$59,012

$64,914

$71,405

$5,040 $12,000 $12,000 $8,910 $19,900 $24,000 $18,000 $147,850

$45,077 $36,000 $24,000 $121,440 $108,000 $120,000 $178,200 $1,180,370

$49,585 $36,000 $26,400 $141,412 $118,800 $132,000 $189,000 $1,334,369

$54,543 $36,000 $29,040 $177,395 $130,680 $145,200 $226,800 $1,549,218

$59,997 $36,000 $31,944 $215,065 $143,748 $159,720 $264,600 $1,811,711

10.21%

7.96%

2.77%

1.13%

0.60%

$1,500 $6,000

$6,000 $11,938

$6,000 $13,132

$10,000 $14,445

$20,000 $15,889

$7,500

$17,938

$19,132

$24,445

$35,889

0.52%

0.12%

0.04%

0.02%

0.01%

$513,354

$3,170,588

$4,153,601

$4,949,038

$5,780,575

Year 2 $133,572 $133,572

Year 3 $57,109 $57,109

Year 4 $198,094 $198,094

Year 5 $648,114 $648,114

Other Income Year 1 Interest Income $10,113 Total Other Income $10,113

EBITDA Taxes Incurred

-$417,373 $0

-$2,224,962 $0

-$419,645 $0

$6,759,715 $2,365,900

$20,942,603 $7,329,911

Net Profit Net Profit/Sales

-$417,373 -28.82%

-$2,224,962 -15.00%

-$419,645 -0.87%

$4,393,815 3.19%

$13,612,692 4.49%

Profit Monthly

Profit Yearly

Gross Margin Monthly

Gross Margin Yearly

Projected Cash Flow Because the service we provide is an online marketplace, ThanksBud has a very low cost of operation and therefore increased sales can significantly impact levels of cash flow. Furthermore, ThanksBud will not carry inventory and will not need to obtain any short-term or long-term debt. The annual cash flow projections for years 1-5 are included in the table below. Detailed monthly projections for years 1-2 and quarterly/annual projections for years 3-5 can be found in the appendix.

Pro Forma Cash Flow Cash Flows From Operating Activities: Cash Sales Expenditures from Operations Net Cash Flow From Operating Activities Cash Flows From Investment Activities: Additional Cash Received Interest Income (4% Based on Average Monthly Cash Balance) New Investment Received Additional Cash Spent Purchase Other Current Assets Purchase Long-term Assets Dividends Taxes Paid Net Cash Flow From Investment Activities Net Cash Flow Cash Balance

Year 1

Year 2

Year 3

Year 4

Year 5

$1,447,960 $1,875,446

$14,832,071 $17,190,605

$48,210,870 $48,687,624

$137,551,190 $130,989,569

$303,482,220 $283,187,730

-$427,486

-$2,358,534

-$476,754

$6,561,621

$20,294,490

$10,113

$133,572

$81,154

$136,703

$437,913

$5,000,000

$2,400

$27,600

$30,000

$37,000

$44,000

$0 $0 $7,713

$360,000 $0 $4,745,972

$400,000 $0 -$348,846

$3,000,000 $2,365,900 -$5,266,197

$9,000,000 $7,329,911 -$15,935,998

-$419,773 $90,727

$2,387,438 $2,478,165

-$825,600 $1,652,565

$1,295,424 $2,947,989

$4,358,492 $7,306,481

Projected Balance Sheet Because the service providerâ&#x20AC;&#x2122;s money is held in escrow after being immediately drafted from the service buyerâ&#x20AC;&#x2122;s account, the accounts payable and accounts receivable items have been moved. Escrow payments and distributions to the service provider are handled within the earnings section of this table. The annual balance sheet projections for years 1-5 are included in the table below.

Pro Forma Balance Sheet Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets

Year 1

Year 2

Year 3

Year 4

Year 5

$510,500 $10,000

$90,727 $12,400

$2,478,165 $40,000

$1,652,565 $70,000

$2,947,989 $107,000

$7,306,481 $151,000

$520,500

$103,127

$2,518,165

$1,722,565

$3,054,989

$7,457,481

Starting Balances

Total Long-term $0 Assets Total Assets $520,500

$103,127

$2,518,165

$1,722,565

$3,054,989

$7,457,481

Liabilities and Capital

Year 1

Year 2

Year 3

Year 4

Year 5

Current Liabilities Long-term Liabilities Total Liabilities

-$0

Paid-in Capital Retained Earnings Earnings Total Capital

$670,000 -$149,500

$5,670,000 -$566,873

$5,670,000 $5,670,000 -$3,151,835 -$3,947,435

$0 $520,500

-$417,373 $103,127

-$2,584,962 -$795,600 $2,518,165 $1,722,565

$1,332,424 $3,054,989

$4,402,492 $7,457,481

Total Liabilities and Capital Net Worth

$520,500

$103,127

$2,518,165

$1,722,565

$3,054,989

$7,457,481

$520,500

$103,127

$2,518,165

$1,722,565

$3,054,989

$7,457,481

$5,670,000 -$2,615,011

THE INVESTMENT OFFERING The initial investment required consists of $70,000 in co-founder investment, $600,000 seed round, followed by a $5,000,000 venture round of funding. In exchange for the seed round of funding, ThanksBud will offer 15% ownership. In exchange for the venture round of funding, ThanksBud will offer 35% ownership. Immediately following the seed round of funding, ThanksBud estimates a post-money valuation of $4M. The breakdown of this estimate includes the following:

Investor Capital

$600,000

Current value of Assets

$10,000

Value of each Co-Founder

$600,000

Future value of the Company

$1,500,000

ThanksBud has planned for a five (5) year exit strategy and has a projected valuation of $106M. Thus, 15% ownership would mean a $10.3M exit payout and a 35% ownership would mean a $37.1M share in ThanksBud. The internal rates of return (IRR) on the two investments, respectively, would be 77% and 49% which equates to a 1,723% and a 742% return on the original investments.

Investment Offering Seed Proposed Years After Launch: 0 Valuation, Investment, Shares Investment Amount Equity Share Offering Percentage Valuation Investor Exit Payout Investor Years Until Exit Investor IRR Total Return Yield

Round 1 1

Exit 5

$600,000 15%

$5,000,000 35%

$4,000,000 $10,335,000 5 77% 1,723%

$14,285,714 $37,100,000 4 49% 742%

$106,000,000

Share Ownership Founders’ Shares Investor Shares Issued Price per share Year 0 Investors’ Shares Year 1 Investors’ Shares Total Shares Outstanding

Year 0 1,000,000 176,471 $3.40 176,471

Year 1 1,000,000 633,484 $7.89 176,471 633,484 1,809,955

Year 5 1,000,000 0 $58.56 176,471 633,484 1,809,955

Equity Ownership Percentage Founders’ Equity Year 0 Investors’ Equity Year 1 Investors’ Equity Total Equity Investors’ Equity Founders’ & Employees’ Equity

Year 0 85% 15% 100% 15% 85%

Year 1 55% 10% 35% 100% 45% 55%

Year 5 55% 10% 35% 100% 45% 55%

1,000,000 1,176,471

1,176,471 1,809,955

1,809,955 1,809,955

Calculated Totals Pre-Money Shares Post-money total shares

1,176,471

APPENDIX

$106,898

-$49,468

Net Cash Flow From Operating Activities

New Investment Received

$200

-$200

-$49,668

$460,832

Purchase Other Current Assets

Purchase Long-term Assets

Dividends

Taxes Paid

Net Cash Flow From Investment Activities

Net Cash Flow

Cash Balance

Additional Cash Spent

Interest Income (4% APR Equivalent based on Previous Month Cash Balance)

Additional Cash Received

Cash Flows From Investment Activities

$57,430

Expenditures from Operations

Month 1

Cash Sales

Cash Flows From Operating Activities:

Pro Forma Cash Flow

$422,382

-$38,450

$1,309

$200

$1,509

-$39,759

$104,039

$64,280

Month 2

$384,503

-$37,880

$1,183

$200

$1,383

-$39,063

$111,163

$72,100

Month 3

$347,295

-$37,207

$1,059

$200

$1,259

-$38,266

$119,316

$81,050

Month 4

$310,879

-$36,417

$937

$200

$1,137

-$37,354

$128,654

$91,300

Month 5

$275,385

-$35,494

$818

$200

$1,018

-$36,312

$139,322

$103,010

Month 6

$240,967

-$34,417

$702

$200

$902

-$35,119

$151,529

$116,410

Month 7

Cash Flow Year 1

$207,807

-$33,160

$589

$200

$789

-$33,749

$165,549

$131,800

Month 8

$176,104

-$31,703

$480

$200

$680

-$32,184

$181,574

$149,390

Month 9

$145,589

-$30,515

$377

$200

$577

-$30,891

$200,421

$169,530

Month 10

$117,028

-$28,561

$277

$200

$477

-$28,837

$221,447

$192,610

Month 11

$90,727

-$26,301

$183

$200

$383

-$26,484

$245,534

$219,050

Month 12

$90,727

-$419,773

$7,713

$2,400

$10,113

-$427,486

$1,875,446

$1,447,960

Year 1

-$237,941.63 -$216,265.14

Net Cash Flow From Operating Activities

$5,000,000

New Investment Received

$2,300

$30,000

$4,967,997

$4,730,055

$4,820,783

Purchase Other Current Assets

Purchase Long-term Assets

Dividends

Taxes Paid

Net Cash Flow From Investment Activities

Net Cash Flow

Cash Balance

Additional Cash Spent

$297

Interest Income (4% APR Equivalent based on Previous Month Cash Balance)

Additional Cash Received

Cash Flows From Investment Activities

$812,242

$4,588,001

-$232,782

-$16,517

$30,000

$2,300

$15,783

$863,475

$574,300

$647,210

Month 14

Expenditures from Operations

Month 13

Cash Sales

Cash Flows From Operating Activities

Pro Forma Cash Flow

$4,356,618

-$231,383

-$17,279

$30,000

$2,300

$15,021

-$214,104.28

$944,279

$730,175

Month 15

$4,127,213

-$229,404

-$18,036

$30,000

$2,300

$14,264

-$211,367.78

$1,036,014

$824,646

Month 16

$3,900,476

-$226,738

-$18,788

$30,000

$2,300

$13,513

-$207,950.14

$1,140,226

$932,276

Month 17

$3,677,219

-$223,257

-$19,530

$30,000

$2,300

$12,770

-$203,726.69

$1,258,702

$1,054,975

Month 18

$3,458,403

-$218,817

-$20,261

$30,000

$2,300

$12,039

-$198,555.71

$1,393,454

$1,194,899

Month 19

Cash Flow Year 2

$3,245,157

-$213,245

-$20,977

$30,000

$2,300

$11,323

-$192,268.23

$1,546,827

$1,354,559

Month 20

$1,920,493

$1,744,960

Month 22

$2,147,347

$1,982,751

Month 23

$3,038,813

-$206,345

-$21,675

$30,000

$2,300

$10,625

$2,840,928

-$197,884

-$22,351

$30,000

$2,300

$9,949

$2,653,333

-$187,595

-$22,999

$30,000

$2,300

$9,301

-$184,669.34 -$175,533.40 -$164,596.59

$1,721,490

$1,536,821

Month 21

$2,478,165

-$175,168

-$23,613

$30,000

$2,300

$8,687

-$151,554.91

$2,406,055

$2,254,501

Month 24

$2,478,165

$2,387,438

$4,745,972

$360,000

$27,600

$5,000,000

$133,572

-$2,358,534

$17,190,605

$14,832,071

Year 2

$27,600 $0 $360,000 $0 $4,745,972

$2,400 $0 $0 $0 $7,713

-$419,773 $90,727

Net Cash Flow Cash Balance

$2,387,438 $2,478,165

$133,572 $5,000,000

$14,832,071 $17,190,605 -$2,358,534

Year 2

$10,113 $0

$1,447,960 $1,875,446 -$427,486

Year 1

Cash Flows From Investment Activities: Additional Cash Received Interest Income (4% Based on Average Monthly Cash Balance) New Investment Received Additional Cash Spent Purchase Other Current Assets Purchase Long-term Assets Dividends Taxes Paid Net Cash Flow From Investment Activities

Cash Flows From Operating Activities: Cash Sales Expenditures from Operations Net Cash Flow From Operating Activities

Pro Forma Cash Flow

Cash Flow Years 1-5

-$825,600 $1,652,565

$30,000 $0 $400,000 $0 -$348,846

$81,154 $0

$48,210,870 $48,687,624 -$476,754

Year 3

$1,295,424 $2,947,989

$37,000 $0 $3,000,000 $2,365,900 -$5,266,197

$136,703 $0

$137,551,190 $130,989,569 $6,561,621

Year 4

$4,358,492 $7,306,481

$44,000 $0 $9,000,000 $7,329,911 -$15,935,998

$437,913 $0

$303,482,220 $283,187,730 $20,294,490

Year 5

$52,845

$3,000

$57

$55,902

$1,528

2.66%

Direct Cost of Sales

Development Payroll

Other Costs of Sales

Total Cost of Sales

Gross Margin

Gross Margin %

$22,250

$1,667

$2,917

$29,834

51.95%

Online Advertising

Print Advertising

PR Events

Salesmen / Employee Bonuses

Other Sales and Marketing Expenses

Total Sales and Marketing Expenses

Sales and Marketing %

$3,000

$1,000

$420

$1,000

$743

$10,000

General and Administrative Payroll

Marketing/Promotion

Office Supplies

Utilities

Insurance

Payroll Tax (8.25%)

Legal

General and Administrative Expenses

$3,000

Sales and Marketing Payroll

Sales and Marketing Expenses

Operating Expenses

$57,430

Month 1

Sales

Pro Forma Profit and Loss

$900

$743

$1,000

$420

$1,000

$3,000

46.41%

$29,834

$2,917

$1,667

$22,250

$3,000

3.33%

$2,138

$62,142

$64

$3,000

$59,078

$64,280

Month 2

$900

$743

$1,000

$420

$1,000

$3,000

41.38%

$29,834

$2,917

$1,667

$22,250

$3,000

3.93%

$2,834

$69,266

$72

$3,000

$66,194

$72,100

Month 3

$900

$743

$1,000

$420

$1,000

$3,000

36.81%

$29,834

$2,917

$1,667

$22,250

$3,000

4.48%

$3,630

$77,420

$81

$3,000

$74,339

$81,050

Month 4

$900

$743

$1,000

$420

$1,000

$3,000

32.68%

$29,834

$2,917

$1,667

$22,250

$3,000

4.98%

$4,542

$86,758

$91

$3,000

$83,666

$91,300

Month 5

$900

$743

$1,000

$420

$1,000

$3,000

28.96%

$29,834

$2,917

$1,667

$22,250

$3,000

5.42%

$5,585

$97,425

$103

$3,000

$94,322

$103,010

Month 6

$900

$743

$1,000

$420

$1,000

$3,000

25.63%

$29,834

$2,917

$1,667

$22,250

$3,000

5.82%

$6,777

$109,633

$116

$3,000

$106,516

$116,410

Month 7

Profit and Loss Year 1

$900

$743

$1,000

$420

$1,000

$3,000

22.64%

$29,834

$2,917

$1,667

$22,250

$3,000

6.18%

$8,147

$123,653

$132

$3,000

$120,521

$131,800

Month 8

$900

$743

$1,000

$420

$1,000

$3,000

19.97%

$29,834

$2,917

$1,667

$22,250

$3,000

6.50%

$9,712

$139,678

$149

$3,000

$136,528

$149,390

Month 9

$900

$743

$1,000

$420

$1,000

$3,000

17.60%

$29,834

$2,917

$1,667

$22,250

$3,000

6.79%

$11,505

$158,025

$170

$3,000

$154,856

$169,530

Month 10

$900

$743

$1,000

$420

$1,000

$3,000

15.49%

$29,834

$2,917

$1,667

$22,250

$3,000

7.04%

$13,559

$179,051

$193

$3,000

$175,858

$192,610

Month 11

$900

$743

$1,000

$420

$1,000

$3,000

13.62%

$29,834

$2,917

$1,667

$22,250

$3,000

7.26%

$15,912

$203,138

$219

$3,000

$199,919

$219,050

Month 12

$19,900

$8,910

$12,000

$5,040

$12,000

$36,000

24.72%

$358,004

$35,004

$20,000

$267,000

$36,000

5.93%

$85,868

$1,362,092

$1,448

$36,000

$1,324,644

$1,447,960

Year 1

$1,500

$20,663

35.98%

Rent

Total General and Administrative Expenses

General and Administrative %

$500

0.87%

$50,996

Miscellaneous Expenses

Total Other Expenses

Other %

Total Operating Expenses

-$49,468

EBITDA

-$49,468

-86.14%

Net Profit

Net Profit/Sales

Taxes Incurred

Interest Income

Total Other Income

Other Income

Consulting

Other Expenses:

$2,000

Travel Expenses

-59.51%

-$38,250

$1,509

$41,896

0.78%

$500

17.99%

$11,563

$1,500

$2,000

-52.26%

-$37,680

$1,383

$41,896

0.69%

$500

16.04%

$11,563

$1,500

$2,000

-45.66%

-$37,007

$1,259

$41,896

0.62%

$500

14.27%

$11,563

$1,500

$2,000

-39.67%

-$36,217

$1,137

$41,896

0.55%

$500

12.66%

$11,563

$1,500

$2,000

-34.26%

-$35,294

$1,018

$41,896

0.49%

$500

11.22%

$11,563

$1,500

$2,000

-29.39%

-$34,217

$902

$41,896

0.43%

$500

9.93%

$11,563

$1,500

$2,000

-25.01%

-$32,960

$789

$41,896

0.38%

$500

8.77%

$11,563

$1,500

$2,000

Profit and Loss Year 1, cont.

-21.09%

-$31,503

$680

$41,896

0.33%

$500

7.74%

$11,563

$1,500

$2,000

-17.88%

-$30,315

$577

$42,396

0.59%

$1,000

$500

6.82%

$11,563

$1,500

$2,000

-14.72%

-$28,361

$477

$42,396

0.52%

$1,000

$500

6.00%

$11,563

$1,500

$2,000

-11.92%

-$26,101

$383

$42,396

0.46%

$1,000

$500

5.28%

$11,563

$1,500

$2,000

-28.82%

-$417,373

$10,113

$513,354

0.52%

$7,500

$6,000

$1,500

10.21%

$147,850

$18,000

$24,000

$528,446

$36,500

$574

$565,521

$8,779

1.53%

Direct Cost of Sales

Development Payroll

Other Costs of Sales

Total Cost of Sales

Gross Margin

Gross Margin %

25.83%

Sales and Marketing %

$41,167

$4,000

$3,000

General and Administrative Payroll

Marketing/Promotion

Office Supplies

Utilities

General and Administrative Expenses

$148,334

Total Sales and Marketing Expenses

$3,000

$3,120

$4,080

$41,167

20.54%

$132,909

$2,575

$5,834

$2,500

$5,834

PR Events

$21,000

Other Sales and Marketing Expenses

$20,000

Print Advertising

$38,500

$20,000

$35,000

Online Advertising

$45,000

2.36%

$15,268

$631,942

$647

$36,500

$594,794

$647,210

Month 14

Salesmen / Employee Bonuses $40,000

$45,000

Sales and Marketing Payroll

Sales and Marketing Expenses

Operating Expenses

$574,300

Month 13

Sales

Pro Forma Profit and Loss

$3,000

$3,245

$4,162

$41,167

18.88%

$137,886

$2,652

$20,000

$5,834

$22,050

$42,350

$45,000

3.10%

$22,652

$707,523

$730

$36,500

$670,293

$730,175

Month 15

$3,000

$3,375

$4,245

$41,167

17.38%

$143,303

$2,732

$20,000

$5,834

$23,153

$46,585

$45,000

3.77%

$31,060

$793,586

$825

$36,500

$756,261

$824,646

Month 16

$3,000

$3,510

$4,330

$41,167

16.00%

$149,201

$2,814

$20,000

$5,834

$24,310

$51,244

$45,000

4.36%

$40,639

$891,636

$932

$36,500

$854,204

$932,276

Month 17

$3,000

$3,650

$4,416

$41,167

14.75%

$155,626

$2,898

$20,000

$5,834

$25,526

$56,368

$45,000

4.89%

$51,560

$1,003,416

$1,055

$36,500

$965,861

$1,054,975

Month 18

$3,000

$3,796

$4,505

$41,167

13.61%

$162,626

$2,985

$20,000

$5,834

$26,802

$62,005

$45,000

5.36%

$64,013

$1,130,886

$1,195

$36,500

$1,093,191

$1,194,899

Month 19

Month 20

$3,000

$3,948

$4,595

$41,167

12.57%

$170,256

$3,075

$20,000

$5,834

$28,142

$68,205

$45,000

5.77%

$78,222

$1,276,337

$1,355

$36,500

$1,238,482

$1,354,559

Profit and Loss Year 2

$3,000

$4,106

$4,687

$41,167

11.62%

$178,576

$3,167

$20,000

$5,834

$29,549

$75,026

$45,000

6.15%

$94,444

$1,442,377

$1,537

$36,500

$1,404,340

$1,536,821

Month 21

$3,000

$4,270

$4,780

$41,167

10.75%

$187,651

$3,262

$20,000

$5,834

$31,027

$82,528

$45,000

6.47%

$112,968

$1,631,992

$1,745

$36,500

$1,593,747

$1,744,960

Month 22

$3,000

$4,441

$4,876

$41,167

9.96%

$197,553

$3,360

$20,000

$5,834

$32,578

$90,781

$45,000

6.76%

$134,132

$1,848,619

$1,983

$36,500

$1,810,136

$1,982,751

Month 23

$3,000

$4,618

$4,974

$41,167

9.24%

$208,361

$3,461

$20,000

$5,834

$34,207

$99,859

$45,000

7.02%

$158,317

$2,096,183

$2,255

$36,500

$2,057,429

$2,254,501

Month 24

$36,000

$45,077

$53,648

$494,004

13.30%

$1,972,281

$35,480

$260,000

$70,008

$318,343

$748,450

$540,000

5.47%

$812,054

$14,020,017

$14,832

$438,000

$13,567,185

$14,832,071

Year 2

$10,120

$9,000

$10,000

$14,850

$97,137

16.91%

Payroll Tax (8.25%)

Legal

Travel Expenses

Rent

Total General and Administrative Expenses

General and Administrative %

$750

$1,250

0.22%

$246,721

Miscellaneous Expenses

Total Other Expenses

Other %

Total Operating Expenses

-$237,645

EBITDA

-$237,645

-41.38%

Net Profit

Net Profit/Sales

$297

Total Other Income

Taxes Incurred

$297

Interest Income

Other Income

$500

Consulting

Other Expenses:

$2,000

Insurance

-30.98%

-$200,482

$15,783

$231,534

0.20%

$1,288

$788

$500

15.04%

$97,337

$14,850

$10,000

$9,000

$10,120

$2,000

-27.27%

-$199,083

$15,021

$236,757

0.18%

$1,327

$827

$500

13.36%

$97,543

$14,850

$10,000

$9,000

$10,120

$2,000

-23.90%

-$197,104

$14,264

$242,428

0.17%

$1,368

$868

$500

11.85%

$97,756

$14,850

$10,000

$9,000

$10,120

$2,000

-20.86%

-$194,438

$13,513

$248,589

0.15%

$1,412

$912

$500

10.51%

$97,976

$14,850

$10,000

$9,000

$10,120

$2,000

-18.10%

-$190,957

$12,770

$255,286

0.14%

$1,457

$957

$500

9.31%

$98,203

$14,850

$10,000

$9,000

$10,120

$2,000

-15.61%

-$186,517

$12,039

$262,568

0.13%

$1,505

$1,005

$500

8.24%

$98,438

$14,850

$10,000

$9,000

$10,120

$2,000

-13.36%

-$180,945

$11,323

$270,491

0.11%

$1,555

$1,055

$500

7.28%

$98,680

$14,850

$10,000

$9,000

$10,120

$2,000

Profit and Loss Year 2, cont.

-11.32%

-$174,045

$10,625

$279,113

0.10%

$1,608

$1,108

$500

6.44%

$98,929

$14,850

$10,000

$9,000

$10,120

$2,000

-9.49%

-$165,584

$9,949

$288,502

0.01%

$1,664

$1,164

$500

5.68%

$99,187

$14,850

$10,000

$9,000

$10,120

$2,000

-7.83%

-$155,295

$9,301

$298,728

0.09%

$1,722

$1,222

$500

5.02%

$99,454

$14,850

$10,000

$9,000

$10,120

$2,000

-6.34%

-$142,868

$8,687

$309,872

0.08%

$1,783

$1,283

$500

4.42%

$99,729

$14,850

$10,000

$9,000

$10,120

$2,000

-15.00%

-$2,224,962

$133,572

$3,170,588

0.12%

$17,938

$11,938

$6,000

7.96%

$1,180,370

$178,200

$120,000

$108,000

$121,440

$24,000

Month 2

$9,000

$5,700

$8,480

$57,430

Month 1

Deck / Fence Building

Painting

Heating and Air Conditioning

Total Sales

$51,687

$574

$583

$52,845

$4,585

Payments to Service Providers

Credit Card Transactions

Text Messaging Fees (42/ Offer @ $0.028 / Text Msg)

Subtotal Direct Cost of Sales

Net Sales

Direct Cost of Sales

$64,280

$8,000

Lawn Care

$5,202

$59,078

$583

$643

$57,852

$9,330

$6,560

$9,000

$9,200

$14,090

$12,250

Plumbing

$16,100

Month 2

$14,000

Month 1

HandyMan

Sales

Sales Forecast

$5,906

$66,194

$583

$721

$64,890

Month 3

$72,100

$10,260

$7,540

$9,000

$10,580

$16,200

$18,520

Month 3

$6,711

$74,339

$583

$811

$72,945

Month 4

$81,050

$11,290

$8,670

$9,000

$12,170

$18,630

$21,290

Month 4

$7,634

$83,666

$583

$913

$82,170

Month 5

$91,300

$12,420

$9,970

$9,000

$13,990

$21,430

$24,490

Month 5

$8,688

$94,322

$583

$1,030

$92,709

Month 6

$103,010

$13,660

$11,460

$9,000

$16,090

$24,640

$28,160

Month 6

$9,894

$106,516

$583

$1,164

$104,769

Month 7

$116,410

$15,020

$13,180

$9,000

$18,500

$28,330

$32,380

Month 7

Sales Forecast Year 1

$11,279

$120,521

$583

$1,318

$118,620

Month 8

$131,800

$16,530

$15,160

$9,000

$21,280

$32,590

$37,240

Month 8

$12,862

$136,528

$583

$1,494

$134,451

Month 9

$149,390

$18,180

$17,440

$9,000

$24,470

$37,470

$42,830

Month 9

$14,674

$154,856

$583

$1,695

$152,577

Month 10

$169,530

$20,000

$20,050

$9,000

$28,140

$43,090

$49,250

Month 10

$16,752

$175,858

$583

$1,926

$173,349

Month 11

$192,610

$21,990

$23,060

$9,000

$32,360

$49,560

$56,640

Month 11

$19,131

$199,919

$583

$2,191

$197,145

Month 12

$219,050

$24,190

$26,520

$9,000

$37,220

$56,990

$65,130

Month 12

$123,316

$1,324,644

$7,000

$14,480

$1,303,164

Year 1

$1,447,960

$181,350

$165,310

$108,000

$232,000

$355,270

$406,030

Year 1

Month 14

$90,000

$57,000

$84,800

$574,300

Month 13

Deck / Fence Building

Painting

Heating and Air Conditioning

Total Sales

$516,870

$5,743

$5,833

$528,446

$45,854

Payments to Service Providers

Credit Card Transactions

Text Messaging Fees (42/Offer @ $0.028 / Text Msg)

Subtotal Direct Cost of Sales

Net Sales

Direct Cost of Sales

$647,210

$80,000

Lawn Care

$52,416

$594,794

$5,833

$6,472

$582,489

$93,280

$65,550

$94,500

$92,000

$140,880

$122,500

Plumbing

$161,000

Month 14

$140,000

Month 13

HandyMan

Sales

Sales Forecast

$59,882

$670,293

$5,833

$7,302

$657,158

Month 15

$730,175

$102,610

$75,380

$99,225

$105,800

$162,010

$185,150

Month 15

$68,385

$756,261

$5,833

$8,247

$742,182

Month 16

$824,646

$112,870

$86,690

$104,186

$121,670

$186,310

$212,920

Month 16

$78,072

$854,204

$5,833

$9,323

$839,048

Month 17

$932,276

$124,160

$99,690

$109,396

$139,920

$214,250

$244,860

Month 17

$89,114

$965,861

$5,833

$10,550

$949,478

Month 18

$1,054,975

$136,570

$114,650

$114,865

$160,910

$246,390

$281,590

Month 18

$101,708

$1,093,191

$5,833

$11,949

$1,075,409

Month 19

$1,194,899

$150,230

$131,840

$120,609

$185,040

$283,350

$323,830

Month 19

Sales Forecast Year 2

$116,077

$1,238,482

$5,833

$13,546

$1,219,103

Month 20

$1,354,559

$165,250

$151,620

$126,639

$212,800

$325,850

$372,400

Month 20

$132,481

$1,404,340

$5,833

$15,368

$1,383,139

Month 21

$1,536,821

$181,780

$174,360

$132,971

$244,720

$374,730

$428,260

Month 21

$151,213

$1,593,747

$5,833

$17,450

$1,570,464

Month 22

$1,744,960

$199,950

$200,520

$139,620

$281,430

$430,940

$492,500

Month 22

$241,940

$265,190

$153,931

$372,190

$569,920

$651,330

Month 24

$5,833

$22,545

$172,614

$197,072

$1,810,136 $2,057,429

$5,833

$19,828

$1,784,476 $2,029,051

Month 23

$1,982,751 $2,254,501

$219,950

$230,600

$146,601

$323,640

$495,580

$566,380

Month 23

$1,264,886

$13,567,185

$70,000

$148,321

$13,348,864

Year 2

$14,832,071

$1,813,390

$1,653,090

$1,432,541

$2,320,120

$3,552,710

$4,060,220

Year 2

$108,000

$165,310

$181,350

$1,447,960

Year 1

Deck / Fence Building

Painting

Heating and Air Conditioning

Total Sales

$1,303,164

$14,480

$7,000

$1,324,644

$123,316

Payments to Service Providers

Credit Card Transactions

Text Messaging Fees (42/Offer @ $0.028 / Text Msg)

Subtotal Direct Cost of Sales

Gross Sales

Direct Cost of Sales

$14,832,071

$232,000

Lawn Care

$1,264,886

$13,567,185

$70,000

$148,321

$13,348,864

$1,813,390

$1,653,090

$1,432,541

$2,320,120

$3,552,710

$355,270

Plumbing

$4,060,220

Year 2

$406,030

Year 1

HandyMan

Sales

Sales Forecast

$4,206,978

$44,003,892

$132,000

$482,109

$43,389,783

Year 3

$48,210,870

$5,173,710

$5,670,900

$3,291,680

$7,959,020

$12,187,330

$13,928,230

Year 3

$12,229,607

$125,321,583

$150,000

$1,375,512

$123,796,071

Year 4

$137,551,190

$14,761,140

$16,179,780

$9,391,550

$22,707,970

$34,771,910

$39,738,840

Year 4

$27,073,400

$276,408,820

$240,000

$3,034,822

$273,133,998

Year 5

$303,482,220

$42,715,280

$34,360,780

$19,944,640

$48,224,440

$73,844,480

$84,392,600

Year 5

Sales Forecast Years 1-5