BUSINESS PLAN CONFIDENTIAL
EXPLORE AMERICA, LP - PREPARED OCTOBER 2019 -
DOMAINS http:// ExploreAlabama.us
http:// ExploreNebraska.us
http:// ExploreAlaska.us
http:// ExploreNevada.us
http:// ExploreArizona.com
http:// ExploreNewHampshire.us
http:// ExploreArkansas.us
http:// ExploreNewJersey.us
http:// ExploreCalifornia.com
http:// ExploreNewMexico.com
http:// ExploreColorado.com
http:// ExploreNewYorkState.us
http:// ExploreConnecticut.com
http:// ExploreNorthCarolina.com
http:// ExploreDelaware.com
http:// ExploreNorthDakota.us
http:// ExploreFlorida.com
http:// ExploreOhio.com
http:// ExploreGeorgia.us
http:// ExploreOklahoma.com
http:// ExploreHawaii.us
http:// ExploreOregon.com
http:// ExploreIdahoUS.com
http:// ExplorePennsylvania.com
http:// ExploreIllinois.com
http:// ExploreRhodeIsland.us
http:// ExploreIndiana.us
http:// ExploreSouthCarolina.us
http:// ExploreIowa.us
http:// ExploreSouthDakota.us
http:// ExploreKansas.us
http:// ExploreTennessee.us
http:// ExploreKentuckyUS.com
http:// ExploreTexas.com
http:// ExploreLouisiana.us
http:// ExploreUtah.us
http:// ExploreMaine.us
http:// ExploreVermontUS.com
http:// ExploreMarylandUS.com
http:// ExploreVirginiaUS.com
http:// ExploreMassachusetts.us
http:// ExploreWashingtonUS.com
http:// ExploreMichigan.com
http:// ExploreWashingtonDC.us
http:// ExploreMinnesotaUS.com
http:// ExploreWestVirginia.us
http:// ExploreMississippi.com
http:// ExploreWisconsin.us
http:// ExploreMissouri.us
http:// ExploreWyoming.com
http:// ExploreMontanaUS.com
TABLE OF CONTENTS Executive Summary Opportunity
1
Opportunity
5
Problem & Solution Target Market
1
5
9
Company Overview
11
11
It Starts in Texas
13
Texas Community Roadmap
Financial Plan Forecast Financing
13
16 16
17
5 Year Financial Projections Statements
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18 19
EXECUTIVE SUMMARY OPPORTUNITY WE CELEBRATE SMALL-TOWN AMERICA EXPLORE.US allows users to find new small towns to experience and helps them discover the best of what each has to offer. We believe the hidden beauty, charm, and adventures that exist within small-town America are something that has yet to be shared with the rest of the world. SIMPLY PUT... Explore.US celebrates small-town life. We want to shine a light on the towns, people, and businesses in these communities. We do this by lending a voice to small towns and telling the stories and surfacing the hidden gems that exist within them. The authentic connections, slower pace of life, unique experiences, and expanded view of the world are only the start to why there is a growing interest in small towns. Explore.US inspires users to take a detour off the beaten path and transform the way they think about and connect with new destinations by encouraging them to form a deeper connection with those around them. Our brand positioning defines three main components: the people who will be attracted to our brand (target audience), the category in which we compete (competitive set), and how we distinguish ourselves in that category (our most compelling benefit). With that in mind, our team defined our brand positioning as: To seekers of authenticity, Explore.US is the inspiration resource that opens the door to the best experiences of small-town America. TARGET AUDIENCE Our target audience definition articulates those who will be attracted to our brand, those whom we believe to be most receptive to our offering. To cast the widest net possible while still providing focus and actionable clarity, the target audience typically is best defined by commonalities that transcend demographics and unify the kind of people who could be attracted to the brand. Seekers of Authenticity Our target audience reaches beyond the simplistic definition of “movers and travelers� identified in our market research. Our best prospects are united by something much more meaningful, something they all have in common: they are seekers of authenticity.
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PAGE - 01
For our target audience, the best things in life are establishing real connections and creating genuine memories whether they are at work, at home, or around friends. What makes for an authentic experience differs from one person to the next–from eating at a local restaurant to learning about a community’s history to participating in a cultural event. But ultimately, seekers of authenticity are drawn in by the beauty that comes from experiencing something that has yet to be explored. COMPETITIVE SET The competitive set identifies the category in which our brand competes and how we want to be considered. This sets the backdrop against which our brand has a compelling benefit. It is intended not to differentiate our brand from others but simply to define the playing field on which we compete. Inspiration Resource Inspiration is a word that impels action. It awakens people to new possibilities and allows them to go beyond the ordinary experiences and monotony of everyday schedules. Inspiration propels us from apathy to possibility and transforms the way we view and take in the world around us. As an inspiration resource, Explore.US works to inspire our users to imagine and discover new possibilities during their planning journey–and we do this by sparking a sense of curiosity through our content, imagery, and featured destinations. Explore.US is not alone when it comes to being an inspiration resource. Pinterest, TripAdvisor, tourism companies, travel directories, and even family and friends also serve as sources of inspiration. This is why Explore.US strives to excite and to encourage users to explore the possibilities waiting in small-town America. MOST COMPELLING BENEFIT The most compelling benefit is our point of differentiation–the advantage that makes Explore.US desirable to our target audience. This idea lies at the intersection of what is meaningful to our target audience and the strengths our brand delivers. It answers the question, “What is the most compelling offering we can make, communicate, and deliver consistently to our target audience?” Opens the door to the best experiences of small-town America Opens the door–Users today have access to a multitude of information resources, but still unmet is the need for hyperlocalized and in-depth information on small-town America. Explore.US offers users just that, as the internal team works to provide accurate and relevant information that will allow users the chance to uncover what small-town America has to offer– illuminating the adventures that await them, both across the country and around the corner. The best experiences of small-town America–Explore.US believes there are hidden gems in every small town that have yet to be explored. We seek to provide users with hyper-localized information for the communities they are interested in discovering. Explore.US wants to save users time during the planning process by offering a tool that shows them the best experiences through must-see, must-do, must-eat, and must-try lists on the website. Explore.US opens the door for users to discover what each small town offers.
ADVERTISING VALUE For as little as $100 per month, Explore.US arms advertisers with tailored advertising packages designed to reach the right consumers at the right location at the right time. Media buyers can purchase plans by the month, location, device, user demographic, message type, and platform. We dynamically serve ads to users based on their interest, history, and shared social information.
WHY US? As humans, the decisions we make about the company we keep are often influenced by how we want to be seen through the eyes of others. So it is essential that the image of our brand be an identity people admire, desire to affiliate with or, most importantly, aspire to be like. EXPLORERS Explorers are those who are unafraid to embrace the unfamiliar by taking part in new adventures and unique experiences. These are people who avoid areas and activities where there are numerous tourists, indicating a desire to explore the untouched and unexposed. Explorers are united by their sense of curiosity and yearning to discover new destinations and immerse themselves in different cultures. Whether their next adventure is trying a new local restaurant, setting off on a road trip, or finding a fresh start by moving to a new town, they are all united by their longing to make lasting memories through meaningful experiences. When people choose to use Explore.US, that says they are not afraid to take the road less traveled and uncover a new adventure.
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MARKET MAJOR METROS Explore.US targets affluent and mobile consumers who primarily live in census described urban areas or urban clusters with populations of 100,000+. Our intent is to inspire millions to visit small-towns within a 3 hour round-trip from their home. We estimate a potential reach of 168,000,000 monthly active users in America. SMALL-TOWN U.S.A. The must see, must do, must eat, must try places and experiences in thousands of small-towns across the United States and just around the corner. We make it extremely simple for community leaders to promote the events, experiences, and places in and around their town. BRAND ALIGNMENT We seek to align ourselves with authentic brands who exemplify insightful and genuine user experiences. Our platform serves ads, messages, and reports which support the user journey before, during, and after they make a purchase decision. GENUINE, INSIGHTFUL CHAMPIONS Explore.US depends on a network of community leaders who deliver the most authentic information about the best of the best within their town, interests, or expertise. We want to unearth the stories about hometown heroes, modern-day explorers, small acts of kindness, those who define the new narrative about small-town U.S.A.
FORECAST Explore.US launches in Texas in 2020. We will use Texas as a beta test for marketing, business development, and digital user experience. We project gross revenue will reach in excess of $300M by year 5. The first year of operations will see the lowest net profit margin as Explore.US ramps up operations to compete nationally. Explore.US expects to reach 3,000 of the 12,483 total available communities with populations over 3,000. We expect to reach 11,400,000 of the total 18,000,000 businesses available. We plan to convert less than one percent of potential businesses available in 2020 and ramp up to 12% of available capacity by 2024. We believe Explore.US will carve out a lasting niche in the United States and will seek to expand internationally by 2023.
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OPPORTUNITY PROBLEM & SOLUTION UNMET NEED 80% of Americans said they noticed a significant drops in stress just after two days of traveling. FOR MOVERS • Community analystics in dynamic and interesting formats • Ability to connect with and deep-dive into town before choosing to visit • Connect with experts and locals about where to go and what to see FOR TRAVELERS • Only the best - experts and locals vote, comment, and help the best places gain recognition • High-quality and hyper-local media and information • Tailored experience based on time, budget, and interests
OUR SOLUTION OPEN THE DOOR TO SMALL-TOWN AMERICA Explore.US illuminates the adventures that await our users, both across the country and around the corner. Our platform will feature authentic, high-quality photography and a visual aesthetic that permeates the platform. All of our assets are designed for a mobile-first experience that incorporates visual cues to help navigation. TAILORED USER EXPERIENCE A site dedicated to fueling exploration of small-town America however users prefer. After a short questionnaire users can explore based on: • Proximity to users locations • Users’ personal interests • Users’ friends’ interests • Expert recommendations • Users’ past behavior • Upcoming holidays • Towns that are “new and noteworthy” or “popular” • Towns related to a major event in history or culture
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STEPS FOR MOVERS S IN THE MOVING PLANNING PROCESS First Step
Second Step
All Other Steps
44
Searched for information online
18
All Steps
14
Most Influential
76
30 17
Visited the location(s)
27
26
70 34
13
Asked family members
18
19
50 18
8
Asked friends
6
29
43 4
6
Looked for ratings online
13
20
39 3
4 4
Social media
16
4 3 10
Asked employer
13 10
Read a local paper or magazine
24
3
17
4
14
1
16 7
Read travel magazines 0
0 20
40
60
80
100
Movers (n=206) irst step you took when planning your move? second step you took when planning your move? ps did you take when planning your move? hese steps did you find to be most influential when planning your move?
SURFACE SMALL BUT POWERFUL NEXT STEPS We will always provide at least one way for users to take a next step, either within or across core experiences. Over time, we will build systems to personalize these recommendations. A few ways for Explore.US to help users take the next step: • Save to list • Upload photo • Make a reservation • Ask/answer a question • Add rating/review • See similar towns • Subscribe to newsletter • See my travel history Explore.US will utilize all functions of mobile devices to help users opt-in to notifications such as deal alerts and trip reminders.
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L PLANNING PROCESS
STEPS FOR TRAVELERS First Step
most rall step s. It’s al step
Second Step
All Other Steps
62
Searched for information online
All Steps
17
8
Most Influential
87
59 7
Looked for ratings online
24 14
Asked family members
12
8
Asked friends
9
3 10
Social media
20
17 13
11
42
11
34
8
26
4
Read travel guidebooks
24
Read travel magazines
11 7 9
1
Spoke to a travel agent
115 7
2
011
-
Went to a travel show
8
16
51
0
14
20
1
40
60
80
100
cent domestic overnight leisure trip? t recent domestic overnight leisure trip? nt domestic overnight leisure trip? hen planning your most recent domestic overnight leisure trip?
SUPERCHARGE THE SEARCH ENGINE We will enhance the perceived speed and utility of the search function by offering search recommendations based on highly searched, recommended days to visit, recommended for you. We will also optimize the site for voice commands. PRIORITIZE ACTIONABLE INSPIRATION Explore.US will focus on delivering experiences that spark a sense of curiosity, propelling users from apathy to possibility. We will invest millions of dollars per year on high-quality editorial content about thousands of towns in America. Our content will effectively set us apart by celebrating the uniqueness of small-towns and the lives of those who occupy them. REWARD USERS FOR INCREASED PARTICIPATION Explore.US will reward users with badges and an invite only ambassador program where fans can earn rewards and unlock more ways to share explorations in small-towns.
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THE GROWTH OF THE EXPERIENCE ECONOMY CONSUMABLE SPENDING TRENDS
Experience-related services have grown mo consumption spending, and nearly 4.0x faster t
DELIVER THE BEST AND ONLY THE BEST
We are experts at researching and curating the best experiences worth exploring in small-town America. As experts, our ratings are trusted and authoritative. Explore.US uses a dual rating system where verified influencers and experts have one rating system and locals have another rating system. Users now can see what the locals prefer and what professions suggest.
Source:We Mckinsey Company, Cashing initon the US strive to&immerse users in what would beExperience like to visit Economy, and live in2017 thousands of small-towns in the United States. Instagram 1Experiences
include the following Bureau of Economic Analysis categories: membership clubs, sports centers, parks, theaters, museums,sounds, casino gambling, food motion of small-town America. Our and Facebook videos are ourservice go-to tactic for capturing short burstsevents, of sights, and extension of the website platform.
service, accommodations, air travel, package tours, and foreign travel by U.S. residents social platforms carry advertising and a seamless
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TARGET MARKET USERS Explore.US is meant for those who seek authentic experiences off the beaten-path. We have discovered our audience demographics are typically urban/suburban, affluent, and socially active adults between the ages of 25-55, with families making up 40% of our market mix. SMALL TOWN LISTINGS We are in search of places the local go. We are not interested in the places every tourist knows about and frequents. Our business listings are only the best and most unique places in small-town America. Explore.US seeks to increase the advertising efforts of over 24,000 small-town businesses by the end of 2020. ESTABLISH BRANDS Explore.US attracts users who are willing to go the extra mile to achieve quality experiences, goods, and services. We are aligning ourselves with the top outdoor goods retailers, consumer brands, equipment sales, real estate brokers, and other major brands. PUBLISHERS We are partnering with iHeart Media and Gow Media to produce radio and podcast series which promote Explore.US communities. Explore.US will ultimately work with hundreds of local and well-known media outlets to provide top coverage of small-town America.
TRAVEL TRENDS IN AMERICA • Small-Town Travel is the #1 Travel Trend on Pinterest in 2019, an increase of 276% from 2018 • 42% of Americans actively avoid places Tourist go according to a study by Culture Trip in 2018 • 72% of Millennials prefer to spend more money on experiences than on material things according to Inc.com in 2018 • In an article by Stylus, U.S. “staycations” are the most popular among Millennials and will account for 50% of all travel in 2019 • According to Forbes in 2018, 80% of Americans said they feel a significant decrease in stress just after two days of traveling
TARGET COMMUNITIES: Between 1,000,000+ and 100,000 in population Explore.US will focus on connecting with consumers and users in over 360 of the most populated cities in the United States. Our mission is to begin with the highly populated places to reach the most amount of people possible with the message of getting out of town to explore within a 3 hour round trip drive. We believe that distance will give users a diverse selection of towns within a commute for a family with young children and busy professionals who are looking to sneak away for a weekend.
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COMPANY OVERVIEW BOARD OF DIRECTORS
George Lane Mr. Lane is the founder of Explore.US and Chairman of the Board. His media background began in the late 1970’s when he created Broker’s Choice magazine shortly after leaving PaineWebber. Several years later this concept was rebranded as PINNACLE MAGAZINE, which he and his team launched in 37 US markets. During that same time he launched FARM and RANCH which was ultimately introduced into six US regions. In the late 1990’s and early 2000’s other titles and their corresponding websites were launched. Included were TEXAS SPORTING JOURNAL, LIVING WELL, CANVAS, RESIDENCE INTERNATIONAL, AMERICAN LUXURY ESTATES, and CLASSIC PROPERTIES INTERNATIONAL. The concept of Explore America, LLC, coupled with its national brand, Explore.US and its numerous sub-sites, began shortly after Mr. Lane recognized a lack of quality marketing in small, high-end communities. Incubation commenced in Texas in communities starting with Fulshear, Richmond, Brenham, and Navasota. Since then 378 community landing pages have been developed in Texas and approximately 2,000 more within all 50 states by mid 2018.
Waters Davis Mr. Davis currently holds seats on several boards of directors for a realm of organizations to include; two publicly traded companies, two private companies (Explore.US included), and the Christian Foundation Houston. Mr. Davis specializes in compensation and auditing. His expertise in these fields is widely known and respected throughout multiple industries throughout the United States. Mr. Davis has held numerous top leadership positions within the energy industry. Mr. Davis is a graduate of the University of Texas and the Harvard Business School (MBA).
Michael Chadwick Mr. Chadwick has over four decades of progressive investment banking experience. Currently, Mr. Chadwick owns and operates as an independent contractor for investment banking services. Prior to becoming independent, Mr. Chadwick was the managing director of Shoreline Capital, LLC. Mr. Chadwick holds series 7, 24, 79, 99, and 63 licenses to trade securities which he has used to advise numerous public and private corporations in acquisition.
David Gow Mr. Gow is the Chairman and CEO of Gow Media. Prior to founding Gow Media, David was with Ashford.com, first as the CFO and ultimately as the CEO. His background also includes serving as the Director of Corporate Strategy at Compaq Computers, and as a consultant at McKinsey & Co. His education includes a BA in Economics from Williams College and a Masters degree from Harvard University.
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Andrew Van Chau Mr. Van Chau has been involved with executive-level leadership communication and crisis-management strategies for over two decades. His experience, training, and education culminated in the successful launch of a private consulting firm which specializes in C-level communication strategies. In his lifetime, Mr. Van Chau has influenced leaders on projects ranging from the 2010 BP spill cleanup to the 2017 Hurricane Harvey recovery.
Bret A. Hammett Bret Hammett is the owner and President of a predominant wine importing and wholesale business which caters to restaurants and small retail shops who appreciate aged French and Italian wines. Mr. Hammett has over 35 years of experience and knowledge in fine wines from some of the most exclusive wine regions in Europe. Prior to entering the wine industry, Mr. Hammett served as a Senior Vice President and Exploration Manager for Goodrich Petroleum where he interfaced with community leaders and industry experts across Texas and Louisiana.
LAUNCH TEAM
Adam Winters Adam leads the operations, sales, strategy, marketing, finance, and business development at Explore.US. Upon launch, Adam will transition into a leadership position in sales/marketing/business development and will lead the efforts for Explore.US enter new communities and establish our footprint. Adam is an MBA, PMP designation, numerous awards and accolades for excellence in journalism and a Bronze Star for actions in combat while leading a platoon in during Operation Enduring Freedom.
Steve Mullen Steve leads the technology, security, and information departments of Explore.US. Steve has built every digital facet of Explore.US from the start as Our Texas Town in 2017 to the evolution into a national competitive brand with multiple websites. Steve will continue to play a vital role in the data security, management, and processing as Explore.US grows and gains functionality. Steve Mullen started his career at IBM on the Linux Operating System. He grew his career at IBM for 30 years before departing to start a company.
Katie Mecham Katie leads the creative arts department at Explore.US. Katie is responsible for all the inspiring high-quality images on Explore.US and in all the documents we create off-site. She was instrumental in the transition from Our Texas Town to Explore.US. Katie has been working with George for several years. She got her start with George Lane by editing art and photos for his numerous magazines.
Bonnie McFarren Bonnie leads the back office and administrative functions at Explore.US. Bonnie has been responsible for documenting and accounting for all changes made to Explore.US, the financial plan, and communications plan. Bonnie has been with George Lane since he was publishing magazines before digital publications were a thing. Bonnie brings decades of experience and wisdom to her role.
ADVISORY BOARD • Lonnie Schiller - CEO, Schiller Del Grande Restaurant Group • Rick Harsch - Principal, National Realty Consultants • Don McCoy - President, Fulshear-Katy Area Chamber of Commerce • Graham McKernan - CMO, Gow Communications • Page Michel - Vice-Chairman, Texas Chamber of Commerce Executives • Mitch Thames - Chairman, Texas Chamber of Commerce Executives
• Daniel McJunkin - President, Fort Bend County ESD #4 Board • Bob Hale - President, HAR.com (Homes and Rentals) • John Lunn - Group Publisher, Morris Communications • Cleo Franklin - Strategic Marketing Consultant • Juan Rivas - Social Media Consultant
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IT STARTS IN TEXAS TEXAS COMMUNITY ROADMAP - 2019 - 2020 4,000+ COMMUNITIES IN 15 MONTHS Explore.US will include over 4,000 communities within the first 15 months of operations. Our primary community mix will cover communities within a 90 driving radius of major metro areas, starting in Texas. We expect to uncover a minimum of 250 communities surrounding Houston, Austin, Dallas, and San Antonio within the first 6 months that will provide the testing foundation for Explore.US’ services, content, and business systems. We expect to explore over 800 communities in Texas by the end of 2020.
TEXAS COMMUNITY ROADMAP COMMUNITY AMBASSADORS AND BUSINESS DEVELOPMENT The Explore.US Community Ambassadors will be the primary effort to secure new community interest and generate business listing revenue in Texas. These teams will enter new communities in order to engage community leaders in business associations, government, and prominent business owners. Our teams will be supported with print materials, graphic and digital presentation support, and marketing efforts coordinated with their movement. BRAND AMBASSADORS AND THE RICHARDS GROUP The Explore.US Brand Ambassadors and The Richards Group team will be the primary efforts to attract and convert major brands to advertise on Explore.US. Our teams will work with major media buyers to tailor advertising placements that serve contextual ads to their desired markets and demographics. We estimate it will take up to five to seven touches to convert local businesses into paid business listings on Explore.US. The Explore.US coordinated approach is meant to provide at least 10 to 12 touches for each potential advertiser prior to the Ambassador meeting the advertiser. THE BUSINESS DIRECTORY
16
NUMBER OF BUSINESS COMUNNITY TOUCHES
14
As of October 2019, Explore.US has uploaded more than 23 million business records in the United States. We are working with community leaders and data suppliers to verify the accuracy of our data and that every business we display to users is considered by outsiders, insiders, and critics to be among the best any town has to offer.
12 10 8 6 4 2 0
RADIO
DIRECT MAIL
BILLBOARD
DIGITAL ADS
COMMUNITY COMMUNITY DEV. LEADERS/ TEAMS CONTENT CONTRIBUTORS
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Explore.US will use machine learning, artificial intelligence, and human intelligence to continuously improve our data handling methods and data security. We will be one of the largest and highest quality data-supplier for small-town America in the world by the end of 2021.
DATA ANALYTICS GAINED TESTING INTERFACES, CONTENT, AND ADVERTISING We estimate many community websites will be similar in business demographics and content. Explore.US will take full advantage of the ability to split test every detail of our community websites to ensure we exceed user experience expectations and advertiser value. IMPROVE USER TARGETING TECHNIQUES Data generated will be used by Explore.US to better serve our user base with content and advertisements they deem most relevant and interesting. Explore.US will use social media and website analytical data to improve original content innovation and delivery to our users. PROOF MODEL FOR EXPLORE.US By the end of 2020, we aim to have a working and scalable location-based search and content website network which adds direct value to the communities it serves in 25 states. We hope to achieve our desired results in Texas and scale our model to all 50 states in early 2021. We believe this is a noble journey and one worth discussing with every Community leader across the United States. Texas is a great place to begin.
2019 ACCELERATED START CHAMBER & ASSOCIATION SPONSORHIP Chambers of Commerce, Convention and Visitors Bureaus, Tourism boards, and numerous other community centered organizations work with Explore.US to source and qualify stories and leads for content and advertising purposes. PRE-SALES PACKAGES AND MULTI-YEAR DISCOUNTS Explore.US is offering exclusive First-Mover adverting bundles to early adopters in select Texas Regions in 2019 and 2020. The First-Mover bundles will be available to major advertisers in Texas in 2019 and throughout the country in 2020. First-Mover Bundles include the following community display advertisements: • Community Top Slide Sponsorship • Dedicated AMP landing page with phone and email capture • Sponsored Micro-Influencer posts on popular social media platforms such as; Facebook, Instagram, Pinterest, and Youtube • Phone and Email Lead Qualification and lead delivery • Monthly analytical reporting and insights • Explore.US original story features such as Hometown Heroes, which highlights people who make a difference in their community. Community Bundles carry a one-time setup fee of $100 per community and a fixed monthly subscription of $75 per community. Explore.US honors tier and bulk pricing for major brands who desire to advertise in more than 10 communities. RADIO CO-SPONSORING Explore.US seeks to align itself with brands that exemplify our promise to communities - “celebrate small-town life”. Our brand promise aligns with local businesses and major multi-nationals who wish to reach consumers in major metros with authentic messages to build awareness about new products and services that fit their consumer behavior and preferences. PRIVATE INVESTMENT Explore.US will receive $1.5M in private startup capital investment in 2019 to be used for website design, development, and business development systems and personnel needed to launch Texas and rapidly scale to all 50 states within 12 months.
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FINANCIAL PLAN FORECAST KEY ASSUMPTIONS • 5,000 towns exist in the United States that will benefit the most from the Explore.US platform. We estimate over 18,000,000 business listings exist within the 5,000 communities. Explore.US will reach most communities and business listings within the first 2 years of operation. • We will uncover another 3,000 communities in the United States by expanding our platform to support “small-towns” in the “big cities” which means we will highlight the must, see, must do, must eat, and must try places in urban neighborhoods AND rural American communities. Explore.US will expand our model to major metros worldwide in 2022. • Explore.US will beta test and start operations in Texas in Q4 2019 and Q1 2020. Then expand nationally by the end of Q1 2020. Our expected national advertising revenue capacity in the United States is expected to max out $2.75bn. 1. 2019 - Texas ONLY - Sell less than 0.10% of potential advertising capacity 2. 2020 - Small-Town Launch - Sell 1% of potential advertising capacity 3. 2021 - National Growth - Sell 2% of potential advertising capacity 4. 2022 - Major-Metro Growth - Sell 6% of potential advertising capacity 5. 2023 - National Maturity and Global Growth - Sell 8% of potential advertising capacity 6. 2024 - Global Growth Continues - Sell 12% of potential advertising capacity We believe new community growth will slow after 6 years until we reach 100% participation from target communities by year 10. • The value of Explore.US Premier membership at $50 per month is attractive to the best businesses in the United States. Premier membership benefits summary: More attractive business listing and placement, opportunity to be featured in Explore.US content and more high-value advertising opportunities. • Explore.US will contribute an average of 3% gross revenue annually to communities we serve. Our give-backs may be in the form of scholarships and other forms contributions which directly enrich the lives of the community members we serve. All contributions are disbursed annually in December. • Explore.US assumes community leadership and other community influencers will embrace us as a valuable resource for visitors, residents, and the best businesses. • Explore.US assumes Google, Youtube, Facebook, Pinterest, and Instagram do not make drastic changes to their core algorithms. • Explore.US assumes consumers will continue to use Search Engines and Social Media to discover, consume, and share information across all devices.
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Financial Plan Forecast
Explore.US-2019
Key assumptions
REVENUE BY MONTH
Revenue by Month
EXPENSES BY MONTH
Expenses by Month
NET PROFIT (OR LOSS) BY YEAR
Net Profit (or Loss) by Year
Net Profit (or Loss) by Year
FINANCING 6
USE OF FUNDS
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Initial funds raised will be used for the following purposes: • Internal Team Acquisition (18 people total in 2019) • Chief Level Leadership • Internal Advertising Sales • Corporate Support Staff
5
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• Contract Labor: • The Richards Group - Advertising creation, digital strategy, and media buyers 6 • Technicians and Engineers - Build and manage website platform, apps, voice integration, updates CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is sharedgeneral only with the understanding you will not share its contents or ideas with • Virtual Assistants - Cold calls and low-skill that labor assistance, data entry, and quality control third parties without the express written consent of the plan author. • Community Ambassadors - field account executives for small-towns, and neighborhoods • Content Producers - Creative professionals and local amateurs to write editorials, take photos, and videos • Social Media Influencers - local professionals who market to their audience and niches • Professional Support Functions - HR, Accounting, Legal, Customer Service and other professional support functions • Expenses • Software as a Service (SaaS) - Software subscriptions that help automate communication and business functions • Advertising and Promotions - Paid promotions to build awareness for Explore.US launch and growth
SOURCES OF FUNDS Explore.US will seek $1.5M in private investment.
2019 PRE-SALES Explore.US board of directors, advisors, and core management team are leveraging existing relationships with leaders in major brands across the United States. We are also leveraging our existing relationship with The Richards Group to gain early advertising sales from their major clients such as TXU-Energy, The Home Depot, Go RVing, AAA, HEB grocery, Jeep, and Dr. Pepper. The Explore.US business development team is developing systems to automate marketing efforts and build early awareness of Explore.US to small-businesses who exist within the Factual data set. We estimate we will be able to reach over 6,000,000 small-businesses with pre-sales opportunities. The Explore.US business development team is also attending conferences and events that promote community leadership and economic development in small-town USA.
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PAGE - 17
5 YEAR PROJECTIONS
Projected Pro t & Loss (1 of 5) PROJECTED PROFIT & LOSS Net pro�t in 2020
Net pro�t by year
$2M
$200M
$1.5M
$150M
$1M
$100M
$500K
$50M
Projected Pro t & Loss
24
23
20
22
20
21
20
20 20
D
20
'2 0 ec
'2 0
N
ov
'2 0 O ct
pt '2 0
Au
Se
'2 0 g
'2 0 Ju
$0
2020
2021
2022
2023
2024
$29.3M
$72.1M
$155.7M
$231.6M
$332M
$3,725,000
$11.7M
$21.2M
$35.1M
$50.9M
2,800
4,800
9,000
14,000
Revenue Community Top Slider
ly
'2 0
Ju
ne
'2 0 ay
M
Ap r' 20
ar '2 0
M
Fe b
Ja n
'2 0
'2 0
$0
Customers at start
0%
0%
0%
0%
0%
Signups
Churn rate
2,800
2,000
4,200
5,000
5,500
Recurring Charge
$250
$250
$250
$250
$250
$2,275,000
$7,883,750
$17.3M
$28.5M
$38.2M
Community 2nd Slider Customers at start
2,400
4,900
11,100
15,700
0%
0%
0%
0%
0%
Signups
2,400
2,500
6,200
4,600
4,600
Recurring Charge
$175
$175
$175
$175
$175
Category Top Slider
$2,362,500
$8,722,500
$15.6M
$24.1M
$34.6M
2,950
6,450
10,550
15,750
0%
0%
0%
0%
0%
2,950
3,500
4,100
5,200
6,400
Churn rate
Customers at start Churn rate Signups Recurring Charge Premier Business Listings
$150
$150
$150
$150
$150
$6,032,500
$16.8M
$31.1M
$50.3M
$69.5M
20,450
34,450
66,450
98,450
0%
0%
0%
0%
0%
20,450
14,000
32,000
32,000
32,000
$50
$50
$50
$50
$50
$3,574,950
$7,150,050
$21.4M
$28.6M
$42.9M
23,833
47,667
143,000
190,667
286,000
Customers at start Churn rate Signups Recurring Charge Featured Story Sponsorship Unit Sales Unit Prices 2019 Pre-Sales
$150
$150
$150
$150
$150
$2,059,000
$2,034,000
$0
$0
$0
360
2,260
2,260
0
0
0%
100%
Customers at start Churn rate
continued on next page Explore.US-2019: 2020-2024 Original Forecast
Page 11 of 42
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PAGE - 18
STATEMENTS
Projected Pro t & Loss (2 of 5)
PROJECTED PROFIT AND LOSS ...continued from previous page Projected Pro t & Loss
2020
2021
2022
2023
2024
Signups
1,900
0
0
Up-Front Fee
$100
$0
$0
$75
$75
$0
$0
$0
$1,374,999
$2,750,000
$8,250,000
$11M
$16.5M
4,166,665
8,333,333
25,000,000
33,333,333
50,000,000
Recurring Charge Ad Exchange and Ad Network Unit Sales Unit Prices
$0.33
$0.33
$0.33
$0.33
$0.33
$962,514
$1,925,000
$5,775,000
$7,700,000
$11.6M
137,502
275,000
825,000
1,100,000
1,650,000
$7
$7
$7
$7
$7
$962,514
$1,925,000
$5,775,000
$7,700,000
$11.6M
137,502
275,000
825,000
1,100,000
1,650,000
$7
$7
$7
$7
$7
$1,306,269
$2,612,500
$7,837,500
$10.4M
$15.7M
137,502
275,000
825,000
1,100,000
1,650,000
$9.50
$9.50
$9.50
$9.50
$9.50
$811,262
$1,622,500
$4,867,500
$6,490,000
$9,735,000
137,502
275,000
825,000
1,100,000
1,650,000
$5.90
$5.90
$5.90
$5.90
$5.90
$2,131,281
$4,262,500
$12.8M
$17.1M
$25.6M
Unit Sales
137,502
275,000
825,000
1,100,000
1,650,000
Unit Prices
$15.50
$15.50
$15.50
$15.50
$15.50
$380,000
$380,000
$380,000
$380,000
Unit Sales
50,000
50,000
50,000
50,000
Unit Prices
$7.60
$7.60
$7.60
$7.60
$570,000
$660,000
$900,000
$1,200,000
$1,350,000
190,000
220,000
300,000
400,000
450,000
$3
$3
$3
$3
$3
$1,140,000
$1,320,000
$1,800,000
$2,100,000
$2,400,000
190,000
220,000
300,000
350,000
400,000
$6
$6
$6
$6
$6
$400,000
$600,000
$900,000
$1,200,000
$7,607,697
$18.3M
$32.8M
$45.3M
$60.3M
Sales Commissions
$4,393,168
$10.8M
$23.4M
$34.7M
$49.8M
Direct Labor
$3,214,529
$7,462,500
$9,462,500
$10.5M
$10.5M
$3,137,529
$7,222,500
$9,222,500
$10.1M
$10.1M
Facebook - Sponsored Posts Unit Sales Unit Prices Instagram - Sponsored Posts Unit Sales Unit Prices Instagram - Sponsored Stories Unit Sales Unit Prices Pinterest - Sponsored Posts Unit Sales Unit Prices Youtube - Sponsored Videos
Youtube - Ad Revenue
Podcast - Pre-Roll Unit Sales Unit Prices Podcast - Mid-roll Unit Sales Unit Prices Merchandise Sales Direct Costs
Salaries & Wages
continued on next page...
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PAGE - 19
STATEMENTS
Projected Pro t & Loss (3 of 5)
PROJECTED PROFIT AND LOSS ...continued from previous page Projected Pro t & Loss
2020
2021
2022
2023
2024
$42,250
$22,500
$22,500
$22,500
$22,500
$2,710,279
$6,000,000
$8,000,000
$8,000,000
$8,000,000
$385,000
$1,200,000
$1,200,000
$2,100,000
$2,100,000
$77,000
$240,000
$240,000
$420,000
$420,000
$21.7M
$53.8M
$122.8M
$186.3M
$271.7M
74%
75%
79%
80%
82%
$16M
$29.3M
$37.8M
$37.7M
$43.5M
VA Cold Callers (17.63) Community Ambassadors - Base Salary (163.55) Corporate Ambassadors - Base Salary (23.28) Employee Related Expenses Gross Margin Gross Margin % Operating Expenses Salaries & Wages
$2,373,755
$2,680,000
$2,783,950
$2,893,104
$3,007,697
VA Social Reposters (4.83)
$25,000
$30,000
$30,000
$30,000
$30,000
VA Info Admin (4.92)
$22,920
$25,000
$25,000
$25,000
$25,000
VA Customer Service (0.98)
$22,917
$25,000
$25,000
$25,000
$25,000
SEO Contractor (0.98)
$165,000
$180,000
$180,000
$180,000
$180,000
SM Contractor (0.98)
$143,000
$156,000
$156,000
$156,000
$156,000
HR Contractor (0.97)
$40,000
$48,000
$48,000
$48,000
$48,000
Accounting Contractor (0.98)
$59,584
$65,000
$65,000
$65,000
$65,000
Legal (External)
$72,000
$72,000
$72,000
$72,000
$72,000
CEO (0.98)
$183,334
$210,000
$220,500
$231,525
$243,101
COO (0.98)
$165,000
$189,000
$198,450
$208,373
$218,791
CFO (0.98)
$165,000
$189,000
$198,450
$208,373
$218,791
CMO (0.98)
$165,000
$189,000
$198,450
$208,373
$218,791
CTO (0.98)
$165,000
$189,000
$198,450
$208,373
$218,791
Editor-in-Chief (0.98)
$137,500
$157,500
$165,375
$173,644
$182,326
Senior VP of Sales
$100,000
$105,000
$110,250
$115,763
$121,551
Internal Support Staďż˝ (14.75)
$742,500
$850,500
$893,025
$937,680
$984,555
$364,667
$415,800
$436,590
$458,421
$481,339
$74,000
$45,000
$55,000
$60,000
$60,000
Explore.US Dev & Maintenance
$590,000
$600,000
$600,000
$1,000,000
$1,000,000
Explore.US Hosting & Data Management
$108,000
$108,000
$108,000
$108,000
$108,000
Employee Related Expenses Explore.US Design & Maintenance
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PAGE - 20
Projected Pro t & Loss (4 of 5)
PROJECTED PROFIT AND LOSS ...continued from previous page Projected Pro t & Loss
2020
2021
2022
2023
2024
Voice Integrations
$20,000
$200,000
$200,000
$200,000
$200,000
TRG Media Budget
$2,140,000
$7,000,000
$7,000,000
$7,000,000
$7,000,000
Professional Content Production
$3,264,000
$5,100,000
$5,000,000
$4,500,000
$4,000,000
Local Content Producers
$3,532,000
$5,100,000
$5,000,000
$4,500,000
$4,000,000
In�uencer Promotions
$120,000
$180,000
$180,000
$180,000
$180,000
Business Dev Ads
$283,000
$250,000
$250,000
$500,000
$500,000
$11,000
$12,000
$12,000
$12,000
$12,000
Pipedrive CRM
Design Pickle
$2,000
$2,000
$2,000
$2,000
$2,000
Autopilot - System Automation
$1,500
$1,500
$1,500
$1,500
$1,500
$720
$720
$720
$720
$720
$4,800
$4,800
$4,800
$4,800
$4,800
TypeForms - Info Capture Mailchimp - Outbound Marketing Instapage - Landing Pages
$3,600
$3,600
$3,600
$3,600
$3,600
Later - Social Media Posting
$1,800
$1,800
$1,800
$1,800
$1,800
Stripe - payment processing
$174,943
$487,780
$901,030
$1,457,830
$2,014,630
GetAccept - Proposal Software
$4,800
$4,800
$4,800
$4,800
$4,800
Slack - Internal Communication
$3,000
$3,000
$3,000
$3,000
$3,000
$12,000
$12,000
$12,000
$12,000
$12,000
$1,100
$1,100
$1,100
$1,100
$1,100
Trello - Content Project Management Just Call - Text/Call Ruby Receptionist
$3,588
$3,588
$3,588
$3,588
$3,588
Quickbooks
$3,588
$3,588
$3,588
$3,588
$3,588
$500
$500
$500
$500
$500
$80,000
$96,000
$96,000
$96,000
$96,000
Canva O�ce Space Content Supply Back O�ce
$125,000
$150,000
$150,000
$150,000
$150,000
Community Feedback Loop
$45,833
$50,000
$50,000
$50,000
$50,000
Factual Data & Services
$60,000
Factual Data & Services
$60,000
$90,000
$120,000
$120,000
$120,000
Explore.US Online Shop
$6,664
$20,000
$20,000
$20,000
$20,000
$2,500,000
$250,000
$250,000
$250,000
Mobile App
$150,000
$50,000
$50,000
$50,000
Streaming App
$200,000
$200,000
$200,000
$200,000
Prep for Global Expansion
$2,000,000
Global Expansion
$5,000,000
Cost to Enter Metros
continued on next page...
Explore.US-2019: 2020-2024 Original Forecast
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Page 14 of 42
PAGE - 21
Projected Pro t & Loss (5 of 5)
PROJECTED PROFIT AND LOSS ...continued from previous page Projected Pro t & Loss
2020
2021
2022
2023
2024
Community Donations
$2,163,534
$4,670,025
$6,947,026
$9,960,450
Internal Innovation
$2,163,534
$4,670,025
$6,947,026
$9,960,450
$5,704,235
$24.5M
$85M
$148.6M
$228.2M
$0
$0
$0
$0
$0
$855,385
$3,679,348
$12.8M
$22.3M
$34.2M
$1,667
$4,000
$4,000
$4,000
$4,000
$24.4M
$51.3M
$83.4M
$105.3M
$138M
$4,847,183
$20.9M
$72.3M
$126.3M
$194M
17%
29%
46%
55%
58%
Operating Income Interest Expense Income Taxes Depreciation and Amortization Total Expenses Net Pro�t Net Pro t %
Explore.US-2019: 2020-2024 Original Forecast
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Page 15 of 42
PAGE - 22
PROJECTED BALANCE SHEET
Projected Balance Sheet Projected Balance Sheet
2020
2021
2022
2023
2024
$6,803,585
$25.5M
$100.5M
$228.9M
$425.9M
$6,785,252
$25.5M
$100.4M
$228.9M
$425.9M
$6,785,252
$25.5M
$100.4M
$228.9M
$425.9M
$0
$0
$0
$0
$0
$18,333
$14,333
$10,333
$6,333
$2,333
Long-Term Assets
$20,000
$20,000
$20,000
$20,000
$20,000
Accumulated Depreciation
($1,667)
($5,667)
($9,667)
($13,667)
($17,667)
$6,803,585
$25.5M
$100.5M
$228.9M
$425.9M
Assets Current Assets Cash Accounts Receivable Long-Term Assets
Liabilities & Equity Liabilities Current Liabilities
$256,402
$1,279,658
$3,947,208
$6,153,729
$9,181,607
$256,402
$1,279,658
$3,947,208
$6,153,729
$9,181,607
$0
$0
$0
$0
$0
$256,402
$1,279,658
$3,947,208
$6,153,729
$9,181,607
Accounts Payable Income Taxes Payable Sales Taxes Payable
$0
$0
$0
$0
$0
Short-Term Debt
$0
$0
$0
$0
$0
Prepaid Revenue
$0
$0
$0
$0
$0
$6,547,183
$24.2M
$96.5M
$222.8M
$416.7M
$1,700,000
$1,700,000
$1,700,000
$1,700,000
$1,700,000
$0
$1,697,183
$22.5M
$94.8M
$221.1M
$4,847,183
$20.9M
$72.3M
$126.3M
$194M
Equity Paid-In Capital Retained Earnings Earnings
Explore.US-2019: 2020-2024 Original Forecast
Page 16 of 42
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PAGE - 23
Projected Cash Flow
PROJECTED CASH FLOW STATEMENT Cash �ow in 2020
Cash �ow by year
$2M
$200M
$1.5M
$150M
$1M
$100M
$500K
$50M
Projected Cash Flow
24
23
20
22
20
21
20
20
D
20
20
'2 0
$0
ec
'2 0
N
ov
'2 0 O ct
pt '2 0
Au
Ju
Se
'2 0 g
'2 0 ly
'2 0
Ju
ne
'2 0 ay
M
Ap r' 20
ar '2 0
M
Fe b
Ja n
'2 0
'2 0
$0
2020
2021
2022
2023
2024
$5,105,252
$21.9M
$74.9M
$128.5M
$197M
$4,847,183
$20.9M
$72.3M
$126.3M
$194M
$1,667
$4,000
$4,000
$4,000
$4,000
Change in Accounts Receivable
$0
$0
$0
$0
$0
Change in Accounts Payable
$0
$0
$0
$0
$0
$256,402
$1,023,256
$2,667,550
$2,206,521
$3,027,878
Change in Sales Tax Payable
$0
$0
$0
$0
$0
Change in Prepaid Revenue
$0
$0
$0
$0
$0
($20,000)
($20,000)
Net Cash from Financing
$1,700,000
($3.1M)
$0
$0
$0
Investments Received
$1,700,000
Net Cash from Operations Net Pro�t Depreciation and Amortization
Change in Income Tax Payable
Net Cash from Investing Assets Purchased or Sold
Dividends & Distributions
($3.1M)
$0
$0
$0
$0
$0
$0
$6,785,252
$25.5M
$100.4M
$228.9M
Net Change in Cash
$6,785,252
$18.7M
$74.9M
$128.5M
$197M
Cash at End of Period
$6,785,252
$25.5M
$100.4M
$228.9M
$425.9M
Change in Short-Term Debt Cash at Beginning of Period
Explore.US-2019: 2020-2024 Original Forecast
Page 17 of 42
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PAGE - 24
PROJECTED REVENUE(1 of 3) Revenue $8M
$400M
$6M
$300M
$4M
$200M
$2M
$100M
Revenue
24
23
20
22
20
21
20
20
D
20
20
$0
ec
'2 0
'2 0
N
ov
'2 0 O ct
pt '2 0
Se
Ju
Au
g
'2 0
'2 0 ly
'2 0
Ju
ne
'2 0 ay
M
Ap r' 20
ar '2 0
M
'2 0 Fe b
Ja n
'2 0
$0
2020
2021
2022
2023
2024
$3,725,000
$11.7M
$21.2M
$35.1M
$50.9M
2,800
4,800
9,000
14,000
0%
0%
0%
0%
0%
Signups
2,800
2,000
4,200
5,000
5,500
Recurring Charge
$250
$250
$250
$250
$250
$2,275,000
$7,883,750
$17.3M
$28.5M
$38.2M
Community Top Slider Customers at start Churn rate
Community 2nd Slider Customers at start
2,400
4,900
11,100
15,700
0%
0%
0%
0%
0%
Signups
2,400
2,500
6,200
4,600
4,600
Recurring Charge
$175
$175
$175
$175
$175
Category Top Slider
$2,362,500
$8,722,500
$15.6M
$24.1M
$34.6M
2,950
6,450
10,550
15,750
Churn rate
Customers at start
0%
0%
0%
0%
0%
Signups
Churn rate
2,950
3,500
4,100
5,200
6,400
Recurring Charge
$150
$150
$150
$150
$150
$6,032,500
$16.8M
$31.1M
$50.3M
$69.5M
20,450
34,450
66,450
98,450
0%
0%
0%
0%
0%
20,450
14,000
32,000
32,000
32,000
$50
$50
$50
$50
$50
$3,574,950
$7,150,050
$21.4M
$28.6M
$42.9M
23,833
47,667
143,000
190,667
286,000
$150
$150
$150
$150
$150
$2,059,000
$2,034,000
$0
$0
$0
Premier Business Listings Customers at start Churn rate Signups Recurring Charge Featured Story Sponsorship Unit Sales Unit Prices 2019 Pre-Sales
continued on next page...
Explore.US-2019: 2020-2024 Original Forecast
Page 1 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
PAGE - 25
PROJECTED REVENUE(2 of 3) Revenue ...continued from previous page Revenue Customers at start Churn rate
2020
2021
2022
2023
2024
360
2,260
2,260
0
0
0%
100%
Signups
1,900
0
0
Up-Front Fee
$100
$0
$0
$75
$75
$0
$0
$0
$1,374,999
$2,750,000
$8,250,000
$11M
$16.5M
4,166,665
8,333,333
25,000,000
33,333,333
50,000,000
$0.33
$0.33
$0.33
$0.33
$0.33
$962,514
$1,925,000
$5,775,000
$7,700,000
$11.6M
137,502
275,000
825,000
1,100,000
1,650,000
$7
$7
$7
$7
$7
$962,514
$1,925,000
$5,775,000
$7,700,000
$11.6M
137,502
275,000
825,000
1,100,000
1,650,000
$7
$7
$7
$7
$7
$1,306,269
$2,612,500
$7,837,500
$10.4M
$15.7M
137,502
275,000
825,000
1,100,000
1,650,000
$9.50
$9.50
$9.50
$9.50
$9.50
$811,262
$1,622,500
$4,867,500
$6,490,000
$9,735,000
137,502
275,000
825,000
1,100,000
1,650,000
$5.90
$5.90
$5.90
$5.90
$5.90
$2,131,281
$4,262,500
$12.8M
$17.1M
$25.6M
Unit Sales
137,502
275,000
825,000
1,100,000
1,650,000
Unit Prices
$15.50
$15.50
$15.50
$15.50
$15.50
$380,000
$380,000
$380,000
$380,000
Unit Sales
50,000
50,000
50,000
50,000
Unit Prices
$7.60
$7.60
$7.60
$7.60
$570,000
$660,000
$900,000
$1,200,000
$1,350,000
190,000
220,000
300,000
400,000
450,000
$3
$3
$3
$3
$3
$1,140,000
$1,320,000
$1,800,000
$2,100,000
$2,400,000
2020 190,000
2021 220,000
2022 300,000
2023 350,000
2024 400,000
$6
$6
$6
$6
$6
$400,000
$600,000
$900,000 $1,200,000 continued on next page...
$29.3M
$72.1M
$155.7M
$231.6M
Recurring Charge Ad Exchange and Ad Network Unit Sales Unit Prices Facebook - Sponsored Posts Unit Sales Unit Prices Instagram - Sponsored Posts Unit Sales Unit Prices Instagram - Sponsored Stories Unit Sales Unit Prices Pinterest - Sponsored Posts Unit Sales Unit Prices Youtube - Sponsored Videos
Youtube - Ad Revenue
Revenue (3 of 3) Podcast - Pre-Roll Unit Sales
Unit Prices ...continued from previous page Podcast - Mid-roll Revenue Unit Sales Unit Prices Merchandise Sales Totals
$332M
Explore.US-2019: 2020-2024 Original Forecast
Page 2 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
PAGE - 26
Direct Costs
PROJECTED DIRECT COSTS $2M
$80M
$1.5M
$60M
$1M
$40M
$500K
$20M
Direct Costs
24
23
20
22
20
21
20
20
D
20
20
'2 0
$0
ec
'2 0
N
ov
'2 0 O ct
pt '2 0
Se
'2 0
Au
g
'2 0 Ju
ly
'2 0
Ju
ne
'2 0 ay
M
Ap r' 20
ar '2 0
M
'2 0 Fe b
Ja n
'2 0
$0
2020
2021
2022
2023
2024
Sales Commissions
$4,393,168
$10.8M
$23.4M
$34.7M
$49.8M
Direct Labor
$3,214,529
$7,462,500
$9,462,500
$10.5M
$10.5M
$3,137,529
$7,222,500
$9,222,500
$10.1M
$10.1M
$42,250
$22,500
$22,500
$22,500
$22,500
$2,710,279
$6,000,000
$8,000,000
$8,000,000
$8,000,000
Corporate Ambassadors Base Salary (23.28)
$385,000
$1,200,000
$1,200,000
$2,100,000
$2,100,000
Employee-Related Expenses
$77,000
$240,000
$240,000
$420,000
$420,000
$7,607,697
$18.3M
$32.8M
$45.3M
$60.3M
Salaries and Wages VA Cold Callers (17.63) Community Ambassadors Base Salary (163.55)
Totals
Explore.US-2019: 2020-2024 Original Forecast
Page 4 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
PAGE - 27
Personnel (1 of 2)
PROJECTED PERSONNEL COSTS
$1M
$20M
$750K
$15M
$500K
$10M
$250K
$5M
Head Count
2020
2021
2022
$0
20 20 20 21 20 22 20 23 20 24
'2 0
D
ec
'2 0
N
ov
'2 0 O ct
'2 0
'2 0
Se pt
Au g
Ju ly
'2 0
'2 0
'2 0
Personnel
Ju ne
ay M
Ap
r'
'2 0
M
ar
'2 0 Fe b
'2 0 n Ja
20
$0
2023
2024
136.87
223
273
288
288
$40,267
$44,406
$43,980
$45,193
$45,591
Revenue Per Employee
$213,983
$323,398
$570,211
$804,054
$1,152,830
Net Pro�t Per Employee
$35,415
$93,496
$264,668
$438,410
$673,515
$3,214,529
$7,462,500
$9,462,500
$10.5M
$10.5M
$3,137,529
$7,222,500
$9,222,500
$10.1M
$10.1M
$42,250
$22,500
$22,500
$22,500
$22,500
$2,710,279
$6,000,000
$8,000,000
$8,000,000
$8,000,000
Corporate Ambassadors Base Salary (23.28)
$385,000
$1,200,000
$1,200,000
$2,100,000
$2,100,000
Employee-Related Expenses
$77,000
$240,000
$240,000
$420,000
$420,000
$2,738,422
$3,095,800
$3,220,540
$3,351,525
$3,489,036
$2,373,755
$2,680,000
$2,783,950
$2,893,104
$3,007,697
$25,000
$30,000
$30,000
$30,000
$30,000
Average Salary
Direct Labor Salaries & Wages VA Cold Callers (17.63) Community Ambassadors Base Salary (163.55)
Other Labor Salaries and Wages VA Social Reposters (4.83) VA Info Admin (4.92)
$22,920
$25,000
$25,000
$25,000
$25,000
VA Customer Service (0.98)
$22,917
$25,000
$25,000
$25,000
$25,000
SEO Contractor (0.98)
$165,000
$180,000
$180,000
$180,000
$180,000
SM Contractor (0.98)
$143,000
$156,000
$156,000
$156,000
$156,000
HR Contractor (0.97)
$40,000
$48,000
$48,000
$48,000
$48,000
$65,000
$65,000
$65,000
$65,000
Personnel (2 of 2) Accounting Contractor (0.98)
Legal (External) ...continued CEOfrom (0.98)previous page
$59,584
$72,000
$72,000
$72,000
$72,000
$72,000
$183,334
$210,000
$220,500
$231,525
$243,101
COO (0.98) Personnel CFO (0.98)
$165,000 2020 $165,000
$189,000 2021 $189,000
$198,450 2022 $198,450
$208,373 2023 $208,373
$218,791 2024 $218,791
CMO (0.98)
$165,000
$189,000
$198,450
$208,373
$218,791
CTO (0.98)
$165,000
$189,000
$198,450
Editor-in-Chief (0.98)
$137,500
$157,500
$165,375
$208,373 $218,791 continued on next page... $173,644 $182,326
Senior VP of Sales
$100,000
$105,000
$110,250
$115,763
$121,551
Internal Support Sta� $742,500 (14.75) Explore.US-2019: 2020-2024 Original Forecast
$850,500
$893,025
$937,680
$984,555
$364,667
$415,800
$436,590
$458,421
Page 5 of 42 $481,339
$5,952,951
$10.6M
$12.7M
$13.9M
Employee-Related Expenses
Totals
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
$14M
PAGE - 28
Expenses (1 of 2)
PROJECTED EXPENSES $4M
$40M
$3M
$30M
$2M
$20M
$1M
$10M
Expenses
24
23
20
22
20
21
20
20
D
20
20
$0
ec
'2 0
'2 0
N
ov
'2 0 O ct
pt '2 0
Se
'2 0 g Au
'2 0 Ju
ly
'2 0
Ju
ne
'2 0 ay
M
Ap r' 20
ar '2 0
M
'2 0 Fe b
Ja n
'2 0
$0
2020
2021
2022
2023
2024
$74,000
$45,000
$55,000
$60,000
$60,000
Explore.US Dev & Maintenance
$590,000
$600,000
$600,000
$1,000,000
$1,000,000
Explore.US Hosting & Data Management
$108,000
$108,000
$108,000
$108,000
$108,000
Voice Integrations
$20,000
$200,000
$200,000
$200,000
$200,000
TRG Media Budget
$2,140,000
$7,000,000
$7,000,000
$7,000,000
$7,000,000
Professional Content Production
$3,264,000
$5,100,000
$5,000,000
$4,500,000
$4,000,000
Local Content Producers
$3,532,000
$5,100,000
$5,000,000
$4,500,000
$4,000,000
In�uencer Promotions
$120,000
$180,000
$180,000
$180,000
$180,000
Business Dev Ads
$283,000
$250,000
$250,000
$500,000
$500,000
$11,000
$12,000
$12,000
$12,000
$12,000
Pipedrive CRM
$2,000
$2,000
$2,000
$2,000
$2,000
Autopilot - System Automation
$1,500
$1,500
$1,500
$1,500
$1,500
$720
$720
$720
$720
$720
Mailchimp - Outbound Marketing
$4,800
$4,800
$4,800
$4,800
$4,800
Instapage - Landing Pages
$3,600
$3,600
$3,600
$3,600
$3,600
Later - Social Media Posting
$1,800
$1,800
$1,800
$1,800
$1,800
Stripe - payment processing
$174,943
$487,780
$901,030
$1,457,830
$2,014,630
Explore.US Design & Maintenance
Design Pickle
TypeForms - Info Capture
continued on next page...
Explore.US-2019: 2020-2024 Original Forecast
Page 7 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
PAGE - 29
Expenses (2 of 2)
PROJECTED EXPENSES
...continued from previous page Expenses
2020
2021
2022
2023
2024
GetAccept - Proposal Software
$4,800
$4,800
$4,800
$4,800
$4,800
Slack - Internal Communication
$3,000
$3,000
$3,000
$3,000
$3,000
$12,000
$12,000
$12,000
$12,000
$12,000
Just Call - Text/Call
$1,100
$1,100
$1,100
$1,100
$1,100
Ruby Receptionist
$3,588
$3,588
$3,588
$3,588
$3,588
Quickbooks
$3,588
$3,588
$3,588
$3,588
$3,588
$500
$500
$500
$500
$500
$80,000
$96,000
$96,000
$96,000
$96,000
Content Supply Back O�ce
$125,000
$150,000
$150,000
$150,000
$150,000
Community Feedback Loop
$45,833
$50,000
$50,000
$50,000
$50,000
Factual Data & Services
$60,000
Factual Data & Services
$60,000
$90,000
$120,000
$120,000
$120,000
Explore.US Online Shop
$6,664
$20,000
$20,000
$20,000
$20,000
$2,500,000
$250,000
$250,000
$250,000
Mobile App
$150,000
$50,000
$50,000
$50,000
Streaming App
$200,000
$200,000
$200,000
$200,000
Prep for Global Expansion
$2,000,000
Global Expansion
$5,000,000
Community Donations
$2,163,534
$4,670,025
$6,947,026
$9,960,450
Internal Innovation
$2,163,534
$4,670,025
$6,947,026
$9,960,450
$13.2M
$26.2M
$34.6M
$34.4M
$40M
Trello - Content Project Management
Canva O�ce Space
Cost to Enter Metros
Totals
Explore.US-2019: 2020-2024 Original Forecast
Page 8 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
PAGE - 30
Financing PROJECTED FINANCING Projected cash in 2020
Cash at year's end
$8M
$800M
$6M
$600M
$4M
$400M
$2M
$200M
Financing Amount received 2019 Carry-Over Second Round
24
23
20
22
20
21
20
20
D
20
ec
20
'2 0
'2 0
N
ov
'2 0 O ct
pt '2 0
Se
Au
g
'2 0
'2 0 ly
2021
2022
2023
2024
$1,700,000
$200,000
$1,500,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
Balance Short-Term Debt Line of Credit
Line of Credit
$0
2020
Line of Credit
Available Credit
Ju
'2 0
Ju
ne
'2 0 ay
M
Ap r' 20
ar '2 0
M
'2 0 Fe b
Ja n
'2 0
$0
Explore.US-2019: 2020-2024 Original Forecast
Page 10 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
PAGE - 31