Copyright 2007

Online Sales

Adam W. M.Kristaps K.Céline T.Andrei C. Z.

Copyright 2007

The Business

Opportunity • Costly Inventories• Full Sales Capacity

Wholesaler Virtual Consignment Goals

• $2,000,000 in three years Competitive Advantage

• Under Price Competitors• Companies Rely on OnlineSales

Value Proposition

Copyright 2007

Business Model

Copyright 2007

Management & Organization Structure

1. Management Team

Adam W. M. Céline T. Kristaps K. Andrei C. Z. Mohammad S.

2. Employees

IT Professional Customer Service

Representative

3. Board of DirectorsCEO E-Commerce CEO’s Law Firm Representative

Copyright 2007

Management & Organization Structure

Ownership• Equal Partnership

Canadian Corporation Register Domain Name (.ca, .com) Service Providers

• Law Firm (Osler)

Copyright 2007

Industry Analysis

Mostly Wholesale Industry Canadian Wholesale

• 501 Billion Dollar Industry 2006 United States Wholesale

• Over $3 Trillion, 2005 Canadian Retail =391 Billion United States Retail = $1.78 Trillion, 2005 Attractive Market Entry Low Competition

Copyright 2007

Business Unit Strategy

Marketing and e-Strategy• Advertising and Customer Relationship

Management IT and Cyber Security

• Personnel

• Systems

• Clients

Copyright 2007

Operations

SWOT and Risk analysis• In-house knowledge + flexible product offer

• Capitalize on excess inventory using an online sales force

• Build relationships to secure product variety

• Develop a strict cyber security policy

• Risks: Fraud, payment default, cyber attacks Implementation and Evaluation

• Execution Timeline

• Balanced Scorecard

Copyright 2007

Cash Flow Budget: March 2008-2010Cash Inflows (Income): 2008 2009 2010 Total (3 years)Beginning Cash Balance (as of Jan 08) $32,017 $537,621 $1,403,431 $1,973,069Cash Inflows (Income):

Acc.Rec. from commision: $764,508 $1,146,763 $1,720,144 $3,631,415

Ads Sales $120,804 $181,207 $208,388 $510,399Google AdSense 171,676.71$ 214,595.89$ 268,244.87$ $654,517 Total Cash Inflows $1,056,990 $1,542,565 $2,196,776 $4,141,813

Available Cash Balance $1,089,007 $2,080,186 $3,600,207 $6,114,882

Cash Outflows (Expenses):Advertising/Marketing $180,000 $180,000 $180,000 $540,000PayPal Service Charges $98,115 $106,740 $111,630 $316,486Banking charges $2,400 $2,400 $2,400 $7,200Office supplies $2,400 $2,400 $2,400 $7,200Payroll $108,000 $124,200 $124,200 $356,400Rent $31,710 $46,277 $65,903 $143,890Utilities & Telephone $36,000 $36,720 $37,440 $110,160Insurance $12,000 $12,600 $13,200 $37,800Server Lease $6,000 $6,300 $6,615 $18,915Miscelenous expenses $6,000 $6,300 $6,300 $18,600Taxes & Licenses $68,760 $152,819 $298,409 $519,988

Subtotal $551,385 $676,756 $848,498 $2,076,639

Total Cash Outflows $551,385 $676,756 $848,498 $2,076,639

Ending Cash Balance $537,621 $1,403,431 $2,751,709 $4,038,243

Copyright 2007

Profit projections: 2008-2010

2008 2009 2010Sales $885,312.81 $1,327,969.21 $1,928,531.48COGS $132,796.92 $199,195.38 $192,853.15Total Cost of Sales $132,796.92 $199,195.38 $192,853.15Gross Margin $752,515.88 $1,128,773.83 $1,735,678.34ExpensesAdvertising/Marketing $180,000.00 $180,000.00 $180,000.00PayPal Service Charges $98,115.30 $106,740.30 $111,630.30Banking charges $2,400.00 $2,400.00 $2,400.00Office supplies $2,400.00 $2,400.00 $2,400.00Payroll $108,000.00 $124,200.00 $124,200.00Insurance $26,559.38 $39,839.08 $57,855.94Rent $36,000.00 $36,720.00 $37,440.00Utilities & Telephone 12000 $12,600.00 $13,200.00Server Lease $6,000.00 $6,300.00 $6,615.00Miscelenous expenses $6,000.00 $6,300.00 $6,300.00Total Operating Costs $477,474.68 $517,499.38 $542,041.24

Profit before Taxes $275,041.20 $611,274.45 $1,193,637.09Taxes $68,760.30 $152,818.61 $298,409.27

Net Profit $206,280.90 $458,455.84 $895,227.82

Copyright 2007

Sites Visits: March 2007-2008

Sites Visits Mar 07-08

0

50,000

100,000

150,000

200,000

250,000

April May June July August September October November December January February March

Month

Sites Visits Mar 07-08

Copyright 2007

1

2

Number of registrants

Number of listings-

50,000.00

100,000.00

150,000.00

Number of units

Revenue Projections 2008

Number of registrants Number of listings

Revenue projections: 2008-2010