empowering the next generation of builders build-it-yourself seeks partners who can help bring our...

Empowering the next generation of buildersEmpowering the next generation of builders

Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to

kids and their parents at home.

John Galinato617-875-1960

[email protected]

Empowering the next generation of builders

What We Do …

Inspire and guide kids to create, design, build and invent.



The Product

Mission:Inspire and guide kids to use technology constructively, collaboratively and creatively.

What we offer:A unique, online laboratory for builders

Parents pay a $30/mo. membership fee:-Access to project plans, modules-Four live, mentored Webcast lessons/mo.-Invention Universe online virtual community


Content Specialists

Collaboration


Product Differentiators

1) Multidisciplinary projects - Playful, socially conscious storylines - Combine art and technology - Attract broad range of kids 2) Build-It-Blocks (modular construction) - Build complex projects quickly

3) Collaboration with art and engineering students (live webcasts)

- Build mentor relationships



Value Proposition

We provide consistent, high-quality, high value technology enrichment at a fraction of the cost of traditional instruction.

We bring the university student TA (Teaching Assistant) concept, coupled with proven content and online collaboration tools, to kids online.



Target Customers

Boys and girls ages 8-13 interested in art or technology.

Parents who want their kids to go to college and understand the need to be fluent in technology.

Skills exercised in a BIY workshop series:1) Problem solving skills2) Presentation skills



Growth Plan

Validate that parents value the Build-It-Yourself

vision.


Grow the team and infrastructure to serve

1,000+ members

Partner with after school programs like Sylvan, Kaplan and Bright Horizons, publishers and retail outlets to grow

quickly.

Proof of Concept$600K+ revenue3000+ customers

Thru 2012

Proof of Execution1,000+ members

2013

Rollout$50M+ revenue

150,000+ members

2-4 years


1. 3,000+ customers / 20+ schools

2. $200+ revenue per customer

3. $600,000+ revenue

4. 6+ years in development

5. 90% of business is recurring

6. 15% of revenue is on-line.


Proof of Concept Phase – Validation (through 2012)


Proof of Concept Phase - Validation

Proven content and supporting platforms


30Projects

20Lessons

100Build-It-Blocks

Record of attracting talent from the Cornell, MIT, Harvard and Mass Art communities.


Strategy:1. Hire an MBA business developer.2. Evolve our content and supporting platforms.3. Close corporate distribution partnerships.

Assets (2012):1. Repeat customer base. (500 kids/yr. at $200/kid)2. Well-tested content and supporting platforms.3. Access to network of developers and Webcast specialists

from Cornell, Mass Art and MIT communities.


Proof of Execution Phase - 2013Raise our valuation


How big is our market?

College bound Kids:Every kid who goes to college should be technology fluent and therefore is a potential customer.

300K Members:We need 2% of target US market to build a $72M business.

(300K x $240/yr including supplies and embedded advertising)


30 million kids

ages 8 - 13 15 million target market.Half will go to college. 62% have broadband access at

home.


Growth Plan

Validate that parents value the Build-It-Yourself

vision.


Grow the team and infrastructure to serve

3,000 members

Partner with after school programs like Sylvan, Kaplan and Bright Horizons, publishers and retail outlets to grow

quickly to 300,000 members.

Proof of Concept$100K revenue500 customers

2011

Proof of Execution$540K revenue3,000 members

2013

Rollout$72M revenue

300,000 members

2017


1. 3,000+ customers / 20+ schools

2. $200+ revenue per customer

3. $750,000+ revenue

4. 6+ years in development

5. 80%+ of business is recurring

6. 25%+ of revenue is on-line.


Proof of Concept Phase Validation


Proof of Execution Phase - Serve 3,000 members

Viral Marketing Program:12 interns10 developers15+ schools500 students / yearNetwork of specialists

Corporate Partnerships:Close a corporate distribution partnership that has the potential to generate 3,000 members in a year. (300K members @ $240/year in 3-5 years)


The Team:We need to recruit, train and manage a network of 30 Webcast specialists.

We need to recruit an MBA deal maker.

Infrastructure:We need to automate and expand our infrastructure.



John Galinatowww.build-it-yourself.com617-875-1960

Investment of $105K is required to:



• grow the team• expand infrastructure • develop distribution partnerships

$540K annual revenue(3,000 members x $15/mo)


Retail outlets promote

Build-It-Yourself memberships because they drive sales of their products, encourage family shopping and monetize their

on-line presence.

5,000 to 300,000 Leverage

Strategic partners place highly valued content in retail outlets such as Home Depot, Radio Shack, Sylvan Learning Centers, Barnes & Nobel.

4 to 5,000 Leverage

Build-It-Yourself sells content branding to highly targeted strategic partners including publishers, after school programs manufacturers and distributors.

1 to 4 Leverage

(Build-It-Yourself) (Partners) (Retail)

Rollout Phase - Serve 300,000 members


John Galinatowww.build-it-yourself.com617-875-1960

Investment of $1.5+ million may be required to:


Rollout Phase - Serve 300,000 members

• grow the team• brand the product • evolve the product and infrastructure • develop distribution partnerships

$72M annual revenue(300,000 members x $20/mo)


Business Plan Support Slides


Market Segmentation

Value Net

Benchmarks

Financials

Team

Comps

Product Development

What We Do


What We Do …

Build-It-Yourself provides after-school and at-home workshops that inspire and empower kids tocreate, design, build and invent.

We engage boys and girls in playful approaches to design, invention and scientific inquiry.

We train kids to apply technology to solve problems.



Our Workshops Are In Demand

• More than 16 schools served:

– 85% are repeat customers

– Include BB&N, Concord Academy, Lawrence Academy

– Growth via word-of-mouth

• More than 2,500 kids served

• More than $500K revenue generated

“Clio was thrilled. She couldn't stop talking about what she did.”

Parent

“I never thought my son would give up soccer for anything.”

Parent

“Wow!”

Program director sitting in on a webcast from China.

Key Statistics Validation



The Product – Invention Universe

Database of Content Elements:Online database of:• Playful storylines and associated

challenges • Building tricks and lessons• Functional building blocks that

enable kids to build complex projects quickly.


Content Specialists

CollaborationTools


• Seth Mastin – BA Computer Science, MIT• Rebekah Gendron – MEd, Rhode Island Univ• Max Seidman – Sophomore BB&N• Valeria Roman – Science Journalist, Argentina• Naseem Makiya – Junior Harvard• Michael Hsu – Sophomore, Choate• Liu Huan – Senior, Shanghai High School• Joan Tarud – MS Mechanical Engineering, MIT

Network of Specialists:Graduates and students from the Cornell/Harvard/MIT community who inspire and guide kids.


Content Specialists

CollaborationTools



Effective Collaboration Tools:2-way audio/video webcast platform enables kids to collaborate with peers and specialists in a global laboratory.

Wiki project management

Invention Universe


Content Specialists

CollaborationTools



Product Differentiators

1) Multidiscipline - Attract broad range of kids

2) Build-It-Blocks (modular construction) - Build complex projects quickly

3) Collaboration with art and engineering students

- Build mentor relationships

4) Focus on the presentation of ideas- Kids get positive feedback when

their projects look cool.


Content Specialists

Collaboration


Value Proposition


• Large and growing demand for technology training and constructive, after-school activities.

• Collaboration with MIT.

• Proven and acclaimed content.

• Unique workshop delivery model.

• Access to Cornell/MIT student specialists.

• Project has attracted talented developers.

High-quality technology instruction at a fraction of the cost of traditional instruction.


Value Proposition

High-quality technology instruction at a fraction of the cost of traditional instruction.

Bring the university student TA (Teaching Assistant) concept coupled with proven content and online collaboration tools to kids online.




"The goal is to highlight the 'powerful ideas' in the modules -- that is, the ideas that help you understand how the module works, and provide you with a foundation for building other things."

Professor Mitchel Resnick, from the MIT Media Lab, directing the collaboration between MIT and Build-It-Yourself to develop a database of construction modules

"Build-It-Yourself is a fascinating program that engages students in creative projects to design and build robots. Both of my children --ages 7 and 9-- have participated in Build-It-Yourself workshops and learned greatly from it. It's very interesting pedagogy."

Dr. Fernando Reimers, Associate Professor and Director of HGSE's International Education Policy program, describing the Build-It-Yourself program to colleagues at the Harvard Graduate School of Education

"Thanks for putting on one of the best Robotics workshops that I have been to."

Science teacher at the Jamestown Middle School, RI commenting on a Build-It-Yourself workshop for teachers


Collaborating on-line comes naturally to the next generation!



Proof of Concept Phase Assets

Proven content and supporting platforms


30Projects

20Lessons

100Build-It-Blocks

Record of attracting talent from the Cornell, MIT, Harvard and Mass Art communities. (24 contractors)


Opportunity:

1. Summer Camps7.3 Million Kids

2. After-school TimeOrganized by schools2.5 Million Kids

3. After-school TimeOrganized by families15 Million Kids

Sources:American Camp AssociationInstitute for Educational Science, US Dept. of EducationDigest of Education Statistics: 2005

Assume 65% of kids can afford a computer and $120/year15M Kids

Market Segments

26,569 Schools 3M Kids450K Kids (15%)

71,270 Schools 20M `Kids

5 largest for-profit organizations160K Kids

2M kids (10%)

23 MillionKids

Grades 3 to 8

@ Home

Public After-school

Private School

Commercial After-school

Public School

Private After-school

Summer CampsSummer Camps 12,000 Camps 7.3M Kids


The Value Net

Suppliers:Marratech / GoogleCraft StoresRadio Shack


Customers:Summer CampsAfter-school programsParents


Complementors:PublishersManufacturersRetail OutletsSchools


Competitors:TeachersLocal MuseumsMad ScienceBright Horizons


Build-It-YourselfBuild-It-Yourself


The Demand Factors

1) Kids seek rich, online experiences.

2) Two-thirds of U.S. families are now headed by either two working parents or a single working parent. These families need after-school programs.

3) Many parents want to position kids to get into good schools.

4) Corporations are demanding a labor pool that is better trained in engineering and technology.

Kids Parents Corporations



Customer Profiles

ParentsParents seek engaging, constructive activities for their kids when not in school.


Camp DirectorsCamp Directors seek popular programs.7.3 million kids attend 12,000 summer camps.

After-School Program DirectorsAfter-school Program Directors seek educational programs. 3 million kids are enrolled in after-school enrichment programs.

Sources:American Camp AssociationInstitute for Educational Science, US Dept. of EducationDigest of Education Statistics: 2005


The Value Net











Cost

After-School Enrichment Competitors

Consistent Quality(Control overcontent + instructor)

$25-$50/hr

$10-$25/hr

$5/hr

Mad Science

First LEGO

Invent Now Kids

Local Museums

ID Tech Camps

Private Tutors

Sports Programs

Build-It-YourselfInterns$35/hr

Build-It-YourselfMembers

$5/hr


Technology Program Competitors# kids served Locations

Gross revenue

$/hour per student

Artistic / Playful

Collaborate online

Build-It-Blocks

Focus on presentation Notes

Build-It-Yourself - Camp 440 1 $51K $18.00 Yes Yes Yes Yes Concord Academy Summer Camp

Build-It-Yourself - After-school

170 1 $28K $9.17 Yes Yes Yes Yes Brookline, MA Public School partly subsidized

Build-It-Yourself - @Home 300,000 1 $50M+ $2.50 Yes Yes Yes Yes 5-year plan

First LEGO League G3-8 88,000 8,800 $3.5M $5.00 No No No Yes Manchester, NH: Non-profit, 25,000 volunteer team leaders

US First K-12 130,000 10,700 $15M No No No Yes International

First LEGO Camp 1 $8.33 No No No No Manchester, NH: First School Camp requires one chaperone per group of ten.

MOS / Robotech 1 $28.57 No No No No Boston,MA: Robotech 2D game course (1 day) Director of MOS in 2004 said after-school w orkshops are losing money.

Mad Science (w/o facility) 600,000 166 $25M $7.93 No No No No International, based in Montreal, Canada, Price does not reflect added fees for facility.

iD Tech Camps 30,000 73 $21M $18.00 No No No No National, based in Campbell, CA. Held in 50 universities. Family business. Noah Boskey took Flash course

Children's Tech Wkshp 32 $2M $17.68 No No No No National, Graphic Design; Animation and Digital Video Production; Video Game Creation; Robotics. Jonathan Heckerman took game course,

Science Adventurers …. KLC School Partnerships

200,000 600 $16.00 No No No No Serves 200K kids in 600 elementary schools. Offers content through school partnerships.


Competitive Web Sites

Online Sites Member fee

Build? Work w/ mentors

Resume builder

Portfolio Social networking

Games

Neo Pets Free Virtual No No No Yes Yes

Webkins Free Simple No No No Yes NoClub Penguin $7/mo No No No No Yes Yes

Guia Free No No No Art Yes Yes

LEGO Bionicle Free Yes No No No Yes Yes

Scratch Free Yes No No Programs Yes Yes

BIY Invention Universe $10/mo Yes Yes Yes Projects Yes Yes

Comments

Embeded ads, keep virtual petsBuy stuffed toysDisney, games, socializing, secureAvatars, games, bit of everythingStories, games, buildMIT, galleries, challenges


The Value Net











Publishers After-schoolPrograms

Retailers Manufacturers

• Monetize web presence.

• Expand curriculum.

• Generate new revenue.

• Add value to products.

• Drive new product development.

• Sell products.

Build-A-BeariRobot

• Monetize web presence.

PenquinSunset

Mad Science

Potential Distribution Partners


Potential Distribution Corporate Partners

After School Service ProvidersSylvanKaplanBright HorizonsMad ScienceBuild-A-Bear

Publishers McGraw HillHoughton MifflinPenguinSunsetMarvel ComicsElectronic Arts

RetailersRadio ShackHome DepotWalmart

ManufacturersMicrosoft XboxNintendo WiiMidWest HobbiesFutaba


Everyone Wins in the Build-It-Yourself Eco-system

Kids

Parents

Corporate Partners- Have fun!- Solve problems creatively.- Integrate multiple disciplines.- Reinforce core curricula.- Collaborate and share ideas.- Develop important tech skills.

- Deliver high-quality programs.- Reach kids and parents at-home.- Develop new revenue streams.- Differentiate.- Develop future employees.- Affiliate with a “do-good” program.

- See their kids engaged and excited!- Collaborate and work with their kids.

Investors- Receive an attractive ROI.- Help solve a major social problem.



Scaling to a Global Market

• On-site

• Fee per workshop

• In-person specialists

• Word-of-mouth distribution

• New England area

• On-line

• Subscription based revenue

• On-line specialists

• Distribution partnerships

• National and international

Current Model Going Forward Model



Proof of ConceptPhase

Proof of Execution Phase

Roll Out Phase

Strategic 2,500+ students paid $200+ for BIY workshops. ($10-$20/hr)

Secure $100K investment.Grow from 50 on-line customers to 3,000 online members @ $10/mo.

Grow from 3,000 online members to 300,000 online members.Show profitability.

Infrastructure Content and supporting online platforms developed.Collaboration tools tested.Development team recruited.

Develop Invention Universe to serve 3000 members.Develop program to recruit, train and manage webcasters in university communities.

Expand content.Automate member support.

Distribution Strong testimonials and repeat customer relationships built.

Initiate viral marketing program. Close corporate distribution partnership > $50K

Multiple distribution deals in place.

44

Growth Phases - Milestones


Proof of Execution Phase Strategy / Assets

Strategy:1. Hire and MBA business developer to lead the company.2. Close a corporate distribution partnership that has the

potential to generate 3,000 members in a year. (300K members @ $240/year in 3-5 years)

Assets (2012):1. Repeat customer base (500 kids/yr at $200/kid.)2. Content and supporting platforms.3. Access to network of developers and Webcast specialists

from Cornell, Mass Art and MIT communities



Proof of Execution Phase - Serve 3,000 membersRevenue Mo 1 Mo 2 Mo 3 Mo 4 Mo 5 Mo 6 Mo 7 Mo 8 Mo 9 Mo 10# new members (Key Assumption) - - 20 30 50 80 120 200 350 500 Total members - - 20 50 100 180 300 500 850 1,350 Monthly fee 10$ 10$ 10$ 10$ 10$ 10$ 10$ 10$ 10$ 10$ New revenue per month -$ -$ 200$ 500$ 1,000$ 1,800$ 3,000$ 5,000$ 8,500$ 13,500$ Existing on-site revenue 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Total Revenue 6,000$ 6,000$ 6,200$ 6,500$ 7,000$ 7,800$ 9,000$ 11,000$ 14,500$ 19,500$

Expenses Mo 1 Mo 2 Mo 3 Mo 4 Mo 5 Mo 6 Mo 7 Mo 8 Mo 9 Mo 10Fixed Expenses

Rent, Utilities, ISP, Tax, Debt, Supplies, Misc 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Labor, John G, Liu Huan, Dev 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ Business Developer (Key Assumption) 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ 3,000$ Total 17,000$ 17,000$ 17,000$ 17,000$ 17,000$ 17,000$ 17,000$ 17,000$ 17,000$ 17,000$ Variable Expense

Members / mentor 50 50 50 50 50 50 60 70 80 100# mentors 0 0 0 1 2 4 5 7 11 14# webcast hrs / member / mo 4 4 4 4 4 4 4 4 4 4# members / webcast 10 10 10 10 10 10 10 10 10 10# classes / mo 0 0 8 20 40 72 120 200 340 540# classes / mentor / mo

compensation / hr 10$ 10$ 10$ 10$ 10$ 10$ 10$ 10$ 10$ 10$ Total mentor compensation -$ -$ 80$ 200$ 400$ 720$ 1,200$ 2,000$ 3,400$ 5,400$ Management

Mentors / Manager 10 10 10 10 10 10 10 10 10 10# managers 1 1 1 1 1 1 1 1 1 1# hrs / mo / mgr 10 10 10 10 10 10 10 10 10 10compensation / hr $14 $14 $14 $14 $14 $14 $14 $14 $14 $14Mentor mgmt compensation $140 $140 $140 $140 $140 $140 $140 $70 $100 $149Total variable expense $140 $140 $220 $340 $540 $860 $1,340 $2,070 $3,500 $5,549Total fixed and variable expense 17,140$ 17,140$ 17,220$ 17,340$ 17,540$ 17,860$ 18,340$ 19,070$ 20,500$ 22,549$

Monthly Cash Flow (11,140)$ (11,140)$ (11,020)$ (10,840)$ (10,540)$ (10,060)$ (9,340)$ (8,070)$ (6,000)$ (3,049)$

Cum Cash Flow (11,140)$ (22,280)$ (33,300)$ (44,140)$ (54,680)$ (64,740)$ (74,080)$ (82,150)$ (88,150)$ (91,199)$

Mo 11 Mo 12 Total

700 950 3,000

2,050 3,000

10$ 10$

20,500$ 30,000$ 84,000$

6,000$ 6,000$ 72,000$

26,500$ 36,000$ 156,000$

Mo 11 Mo 12 Total

6,000$ 6,000$ 72,000$

8,000$ 8,000$ 96,000$

3,000$ 3,000$ 36,000$

17,000$ 17,000$ 204,000$

100 100

21 30

4 4

10 10

820 1200

10$ 10$

8,200$ 12,000$ 33,600$

10 10

1 2

10 10

$14 $14

$189 $287 1,775$

$8,389 $12,287 35,375$

25,389$ 29,287$ 239,375$

1,111$ 6,713$

(90,088)$ (83,375)$



$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

1 2 3 4 5 6 7 8 9 10 11 12

Month After Investment

Revenue Fixed Expense Variable Expense

$(100,000)

$(80,000)

$(60,000)

$(40,000)

$(20,000)

$-

$20,000

$40,000

$60,000

1 2 3 4 5 6 7 8 9 10 11 12

Month after investment

Revenue Expense Cash Flow


$91K - Worst case cash flow


Revenue $156K - Online rev $84K - Onsite rev $72K

Expense: $239K -Fixed cost $204K -Webcast cost $ 35K

Worst case cash flow: ($91K)

Break even: Month 10

Capital Required $105KTo grow from $15K => $360K annualized online revenue.



Rollout Phase - Financials

5-year Target: 300,000 customers => $79M revenueAnnualized #'s based on month 12 of each year.

Conclusions Yr 1 Yr 2 Yr3 Yr4 Yr5Revenue 739,500$ 2,717,500$ 7,502,000$ 25,470,000$ 78,625,000$ Expense 959,790$ 2,475,850$ 6,621,408$ 18,955,849$ 51,593,173$ EBITDA (220,290)$ 241,650$ 880,592$ 6,514,151$ 27,031,827$ % Earnings / Revenue -30% 9% 12% 26% 34%

Profile Yr 1 Yr 2 Yr3 Yr 4 Yr 5# Online Members 3,000 10,000 28,000 96,000 300,000 Revenue / Member 247$ 272$ 268$ 265$ 262$ # Employees 6 14 31 75 151 # Webcasters (tutors) 10 32 128 480 1,280 Revenue/Employee 87,000$ 123,523$ 119,079$ 130,615$ 166,932$


Rollout Phase - Financial Assumptions1) Sales:

There are 6 revenue streams:

1. Online memberships are the largest revenue stream.

2. Printed pieces in POS displays drive online memberships.

3. Workshops in after school programs drive online memberships.

4. Ecommerce results from projects that require parts, tools and supplies.

5. Advertising revenue results from website traffic.

1/2 of members are repeat customers or from a % conversion from printed pieces

that are placed in schools, store counters and book stores. ($0 acquisition cost)

1/2 of members will come from effective, leveraged, distribution strategies.

2) Membership fee:

The membership fee is equivalent to popular multiplayer game subscriptions.

10M WOW gamers pay $13-$15/mo; Guitar Master - $29/mo

http://www.icelan.com/everquest/part3/everquest_review_p3.htm

Members get access to project plans, Webcast lessons and feedback, online exhibits

and project portfolios, Ecommerce discounts, and master builder certifications.

For a membership fee of $240/yr, typically a member would spend 166 hours

in groups of 8 members at a cost of $1.44/hr


3) Customer acquisition cost is a key assumption:

Customer acquisition cost is zero for printed pieces for 1/2 of customer base.

The customer acquisition cost for 1/2 of customer base is $35/member

$29 - Amazon.com

$60 - Credit Cards

$34 - Various E-Commerce Sites

http://retailindustry.about.com/library/weekly/aa122599a.htm

$31 - Typical Retail Customer

http://www.acroterion.ca/Knowledge_Base_Customer_Acquisition_Costs.html

4) Member / Webcaster ratio is a key assumption:

Live Webcasting is a differentiator. It's fundamental to success.

BIY is selling an opportunity for kids to build relationships with

Webcast 'tutors' from university communities such as MIT and Harvard.

This plan assumes 80 members/tutor in Yr1 to 100 members/tutor in Yr 3.

In practice, members will be online simultaneously with a

Webcast 'tutor' and other members in groups of 1 - 16.

Assume each member is online an average of 4 hours per month or one 1-hr workshop/wk.

Then a webcaster would have to serve 400 member-webcast hours per month.

(100 members x 4 hours / month).

If we assume the average webcast room size will be 10 members,

then the webcaster would have to serve 40 hours per month or 10 hours per week.

Students at MIT are not allowed to work more than 20 hours per week in a UROP program.

We are proposing a firm commitment for 10 hours per week.

This is less than it would take to participate on an athletic team.

Rollout Phase - Financial Assumptions


5) Potential: (Can this be a $50M business?)

There are 20+ million kids between the ages of 8 - 12 in the US.

1.5% market penetration would yield the following results:

$78,625,000 Revenue

$57,116,969 Expense

$21,508,031 Earnings (before tax)

27% Earnings / Revenue Ratio (before tax)

Bright Horizons has a 5.4% Earnings / Revenue ration (after tax)

McGraw Hill Publishing has a 14.4% Earnings / Revenue ration (after tax)

6) Productivity:

4 college student Webcast contractors @ 10hrs/wk = 1 employee

4 college student Webcast contractors @ $10/hr - $12/hr are paid $20K/yr - $24K/yr

Full time base salaries are $60K - $110K/yr

In Year 3, this plan generates revenue of $101,378 per employee

Starbucks productivity is $55K/employee

Microsoft productivity is $500K/employee



7) Gross Profit Margins

Gross Margin = Gross Profit/Sales

52% Build-It-Yourself ($25/hr rev - $12/hr webcast fee)/$25/hr

Bright Horizons (BFAM) an after school service program, has a $1.03B market valuation

22% gross margin (44% is industry average)

13% EBITA (19% industry average)

$40K revenue / employee

From Fidelity (Dec 06)

Microsoft (MSFT) has a $294B market valuation

84% gross margin (74% is industry average for software)41% EBITA (27% is industry average)


From Fidelity (Dec 06)

McGraw Hill Companies (MHP) has a $24B market valuation

61% gross margin (31% is iindustry average for publishers)

24% EBITA (12% is industry average)


8) Cost / Hr of Instruction

BIY can deliver consistent, high-qualtiy instruction at <1/2 price of typical instruction.

If member pays $10/mo and does a 1hr workshop each weekend,

that member is paying $2.50/hr for live collaboration.

In addition the member gets access to

on demand content and web space to post projects.

$10/hr - babysitter

$10-$20/hr - camp or after school enrichment program

$10/hr - cost of public school (per GLTS inner city school 2006 budget)

$50/hr - private tutor



Manage business development

Specify and manage courseware.

Specify and manage platform development

Manage network of workshop leaders and specialists

Build-It-Yourself will recruit a business development team

John Galinato – Content ManagementMEE, Cornell University. More than 25 years of software project management experience.

Liu Huan – Platform Management

MIT class of 2010, Computer Science and Electrical Engineering

Build-It-Yourself will recruit a workshop delivery team of students from

prominent Universities.

http://www.build-it-yourself.com/support/support-biy/biy-team.html

Responsibilities

The Build-It-Yourself team is experienced and dedicated to bringing our highly valued programs online.

Team Members – Background


Platform Architecture and Development.

Platform Architecture and Development.

Content development and webcasting

Lesson plan development

Pete Buletza – EngineerBS in Computer Science, Harvard University. 10 years experience with the CIA, Intuit, and start-up companies developing Internet based technology.

Seth Mastin – EngineerBS in Computer Science, MIT 2005.

Rebekah Gendron – Teacher

Masters Degree in Technology Education, University of Rhode Island. Technology Coordinator in Rhode Island School of the Future.

Ann Butler – Content AdvisorMEd, Harvard Graduate School of Education. 10 years experience in training and teaching. Presently writes for the Boston Globe.

Responsibilities

Build-It-Yourself has a long history of attracting talented, highly skilled contractors.

Contractors – Background


CompsIn $K In $M In $MBIY K-12 (Q1-11) LRN New Oriental Ed (FY11)

Sales 100 100 193 193 558 558Cost of Sales 50 100 50% 108 193 56% 206 558Gross Operating Profit 50 100 50% 85 193 44% 352 558Selling, General, Admin Exp 45 100 45% 58 193 30% 238 558R&D 5 100 5% 6 193 3% 0 558Operating Income (EBIT) 87 100 13% 21 193 11% 114 558

Market Cap $1,140M $3,990MAnnual Sales $680M $558MPrice / Earnings 31.6Price / Sales 1.7 7.2

K-12, Inc. Nov-11 Q1-2012 LRNhttp://www.marketwatch.com/story/k12-inc-reports-first-quarter-fiscal-2012-results-2011-11-15New Oriental Education 11-May EDUhttp://www.thestreet.com/quote/EDU/details/company-profile.html

Gross Operating ProfitAirline Industry 5%Software Industry 90%Retail 15% - 50%Publishing 50% - 60%General Media (best of Pub) 80%

Build-It-Yourself Membership 76% ($50/hr rev : 1 wkshp leader @$10/hr + mgmt exp)Build-It-Yourself On-site 71% ($125/hr rev : 2 wkshp leaders @$12 + mgmt + supplies @ $1/student exp)

EDU

37%

63%

43%

0%

20%


Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to

kids and their parents at home.

John Galinato617-875-1960

[email protected]

empowering the next generation of builders build-it-yourself seeks partners who can help bring our...

Documents

generation of builders

builders parents

guide kids

online collaboration

online laboratory

broad range of kids

proof of execution

complex projects