tellatic business outline

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  • 7/31/2019 TellaTic Business Outline

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    Sell knowledge, find answers.

    www.tellatic.com

    [email protected]

    ___________________________________________

    Giuseppe Canale & Shira Crane

    Creators

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    Why Tellatic? Only Timely Information is Valuable

    Information is only useful if you have access to it when you need it. Tellatic does

    exactly that: opens a line of communication with someone who knows what you needto know, when its useful for you.

    We can all relate to the experience of spending too much time searching for a piece of

    information, only to turn up empty handed. Fruitless Internet searching and untimely

    answers are frustrating. Tellatic gives you access to the knowledge you need, when

    you need it, so its as useful as possible.

    How it Works: Buy and Sell Knowledge

    Imagine a website where you discuss and debate a specific argument with an expert

    during affordable, ten-minute chat sessions. This is Tellatic.

    The gratification that comes with sharing our knowledge or learning something new

    is extremely rewarding. This win-win combination forms the foundation of

    Tellatic. A student (not necessarily in the institutional sense, but simply someone

    who needs information) purchases a ten-minute chat session for $9.99. The tutor

    (who is not necessarily a teacher by profession, but someone with extensive personal

    or professional experience in a specific field), explains, advises and responds to

    questions, earning six dollars for each completed session. All this takes place in atraditional, one-on-one chat environment.

    Each tutors reputation is based on the credentials they provide in their profile and

    various student evaluations. Students leave real-time feedback during the chat

    through a sliding rating system and at the end of the session have the opportunity to

    provide constructive criticism. In the unlikely event that the student is completely

    unsatisfied with the information provided, they can file a complaint and receive a

    refund and/or a suggestion for an alternative tutor.

    What We Need: Investments to Grow

    Weve created the prototype, done initial market research and given our all towards

    making Tellatic an efficient, useful tool for Internet users. Now, we need to raise

    money to perfect the software, polish our look, spread the word, protect the interests

    of the project, and hire creative people to work with us and help consolidate our

    ideas.

    If youve ever been part of a team working towards a goal, but lacking the means to

    reach your objective, you know exactly how we feel. Were excited to offer a

    valuable knowledge transfer system thats accessible to everyone.

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    With some expert programmers, a server administrator, a graphic designer, a small

    team of marketers, a customer support system and a legal advisor, Tellatic could

    become a profitable online service for tutors and students everywhere.

    Invest in Tellatic and make it easier for the two billion Internet users worldwide to

    find the information theyre looking for.

    Were looking to raise $325,000 to cover the first year of startup costs (explained in

    detail in the financial forecast). We propose a 4 year payback period.

    1st Year Financial Forecast

    Income

    Estimated 900 sales per day (circa 37 sessions/hour) at $9.99 each

    Total Daily Income $8991.00

    $8991.00 Daily income x 350 days

    Total Annual Income $3,146,850.00

    Tutor Expenses

    900 Daily sales at $6.00 each

    Total Daily Tutor Salary Expense $5,400.00

    $5,400.00 Daily tutor expense x 350 days

    Total Annual Tutor Salary Expense $1,890,000.00

    Payment Processing Expenses

    900 Daily sales at $0.49 each

    Total Daily Payment Processing Expenses $441.00

    $441.00 Daily payment processing expense x 350 days

    Total Annual Payment Processing Expenses $154,350.00

    Total Daily Profit (Before Variable Operating Costs) $3,150.00

    Total Annual Profit (Before Variable Operating Costs) $1,102,500.00

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    1st Year Detailed Forecast

    Annual Income $3,146,850.00

    Annual Tutor Expenses $1,890,000.00

    Annual Payment Processing Expenses $154,350.00

    Total Annual Fixed Expenses $2,044,350.00

    Total Annual Profit Before Variable

    Expenses

    $1,102,500.00

    Variable Operating Expenses

    Marketing $100,000.00

    Programmers $80,000.00

    Legal/Financial Consultant $60,000.00

    Customer Support

    2 escalated priority operators

    4hr/day @$20/hour x 7 days/week

    $58,240.00

    5 low priority 24/7 operators $4,000.00Graphic Designer $20,000.00

    Servers (including consultation) $5,000.00 - $20,000.00Total Variable Operating Expenses $322,240.00 - $337,240.00

    Total Combined Operating Expenses $2,366,590.00 - $2,381,590.00

    Net Profit Before Tax $780,260.00 - $765,260.00

    Income Tax 35% $273,091.00 - $267,841.00

    Net Profit After Tax $507,169.00 - $497,419.00

    2 - 5 Year Financial Forecast

    Income

    Estimated 2760 sales per day (115 sessions/hour) at $9.99 each

    Total Daily Income $27,572.40

    $27,572.40 Daily income x 350 days

    Total Annual Income $9,650,340.00

    Tutor Expenses

    2760 Daily sales at $6.00 each

    Total Daily Tutor Expenses $16,560.00

    $16,560.00 Daily tutor expense x 350 days

    Total Annual Tutor Expenses $5,796,000.00

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    Payment Processing Expenses

    2760 Daily sales at $0.49 each

    Total Daily Payment Processing Expenses $1,352.40

    $1,352.40 Daily payment processing expense x 350 days

    Total Annual Payment Processing Expenses $473,340.00

    Total Daily Profit (Before Variable Operating Costs) $9,660.00

    Total Annual Profit (Before Variable Operating Costs) $3,381,000.00

    2-5 Year Detailed Financial Forecast

    Annual Income $9,650,340.00Annual Tutor Expenses $5,796,000.00

    Payment Processing Expenses $473,340.00

    Total Fixed Expenses $6,269,340.00

    Variable Operating Expenses

    Marketing/Trends $100,000.00

    Programmers / New Development $100,000.00

    Legal/Financial Consultant $60,000.00

    Customer Support

    2 escalated priority operators

    4hr/day @$20/hour x 7 days/week

    $58,240.00

    8 low priority 24/7 operators $6,400.00Graphic Designer $20,000.00

    Servers (consultation included) $10,000.00 - $50,000.00

    New Idea Laboratory/Development $50,000.00

    Statistics $5,000.00

    Searchable Knowledge Base $10,000.00

    Total Variable Operating Expenses $419,640.00 - $459,640.00

    Total Combined Operating Expenses $6,688,980.00 - $6,728,980.00

    Net Profit Before Tax $2,961,360.00 - $2,921,360.00

    Income Tax 35% $1,036,476.00 - $1,022,476.00

    Net Profit After Tax $1,924,884.00 - $1,898,884.00