Sample Business Plan
Canada / British Columbia Business Services Society
601 West Cordova Street Vancouver BC V6B 1G1 Phone: 604-775-5525 In BC: 1- 800- 667-2272 http://www.smallbusinessbc.ca Fax: 604-775-5520
Sample Plan Business Plan for the period Starting May 1998
CD-ROM Extra is a magazine with headquarters located in Cape Discovery, B.C. The magazine was originally distributed to and sold in a small number of Vancouver area computer stores; with the popularity of the magazine increasing steadily, the magazine is now distributed throughout Southwestern B.C. and Southern Alberta. CD-ROM Extra is unique in that it focusses exclusively on CD-ROM products for the North American market. In addition to our own in-house staff, we have regular editorial contributions from industry experts in locations such as Silicon Valley, Kanata, Ontario and Chiba, Japan. The magazine contains expert commentary, industry news, samples and reviews of CD-ROM applications, reader feedback and tips on using CD-ROM applications.
Ownership and Management
CD-ROM Extra Inc. was incorporated under the laws of British Columbia in 1996 and is owned and operated by two partners, Clarence D. Rawm and Catherine D. Dyskmann. Mr. Rawm owns 60% of the company while Ms. Dyskmann owns the remaining 40%; both partners are equally involved in operation and management of the company. Clarence D. Rawm worked at Microsoft Inc. in Redmond, WA for eight years and was a programmer on the Windows 3.0 design team. Clarence also has worked with Sun Microsystems in Cupertino, CA and Newbridge Networks in Kanata, Ontario. Catherine D. Dyskmann received her Diploma in Computer Science from the British Columbia Institute of Technology (BCIT) in 1989. Ms. Dyskmann spent four years in Japan, working for Sony as part of their compact disc research and development department. Prior to founding the magazine, Ms. Dyskmann was a CD-ROM product development manager for Silicon Graphics.
Key Initiatives and Objectives
The primary objective of the company is to expand the magazine's distribution into Edmonton, Saskatchewan, Manitoba and Ontario while expanding each issue from 20,000 copies to 50,000 copies. Bank loans totalling $33,000 are required to finance the expansion and maintain positive cash flows in the first year. We are also working to increase our distribution into retail stores and bookstores as part of our expansion strategy. Negotiations with distributors and sales efforts are currently underway in order to realize these objectives. In addition, we are also planning to create an interactive on-line Internet website in order to gain more feedback from our customer base.
There are over 250,000 CD-ROM drives in use in Canada and up to 11 million in the United States. All industry experts agree that the phenomenal 100% or more annual growth rates seen since 1994 will continue for at least three years. It is estimated that as many as 1,000,000 CD-ROM drives, the owners of which are all potential customers for the magazine, will be in use in Canada by the year 2000. During 1996, despite a general downturn in business for general consumer periodicals, computer related periodicals have experienced steady growth. Advertising revenues for 35 leading computer related periodicals grew by approximately 32% to U.S. $650 million in 1996 versus U.S. $490 million in 1995. While 1997 figures are not yet available, a similar increase is expected by industry experts.
CD-ROM Extra has several competitive advantages over our competitors including a focus on the Canadian market. Both CD-ROM Buyer's Guide and Multimedia CD have virtually no Canadian content and, with the exception of Corel, no advertising from Canadian companies. By analyzing new products and technologies from a Canadian rather than American standpoint, we can attract more readers in...
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