Culture Connect Product Line and Business Model

	B	C	D	E	G	H	I	J	K	L	M	N	O	P	Q	R	S	AD	AE	AF	AG
1							PY1	Y1	Y2	Y3	Y4	Y5	Y6	Y7	Y8	Y9	Y10	Y5 Q1	Y5 Q2	Y5 Q3	Y5 Q4

2
3	Client Types	Avg Revenue	Avg Units	Conversion	New Clients Conversion
4	Level I	$15,000	40	4%		Product Trials		30	40	50	65	80	100	125	150	180	210
5	Level II	$10,000	25	5%		Level I		1.2	1.6	2	2.6	3.2	4	5	6	7.2	8.4
6	Level III	$5,000	12	6%		Level II		1.5	2	2.5	3.25	4	5	6.25	7.5	9	10.5
7	Level IV	$2,500	8	10%		Level III		1.8	2.4	3	3.9	4.8	6	7.5	9	10.8	12.6
8	Level V	$1,500	6	10%		Level IV		3	4	5	6.5	8	10	12.5	15	18	21
9	Level VI	$800	3	10%		Level V		3	4	5	6.5	8	10	12.5	15	18	21
10						Level VI		3	4	5	6.5	8	10	12.5	15	18	21
11						New Clients		14	18	23	29	36	45	56	68	81	95
12	Shaded Cells are inputs
13					Total Clients
14						Renewal Rate		85%	85%	83%	82%	80%	80%	80%	80%	80%	80%
15						Level I	0	1.2	2.6	4.2	6.0	8.0	10.4	13.3	16.7	20.5	24.8
16						Level II	2	3.2	4.7	6.4	8.5	10.8	13.6	17.2	21.2	26.0	31.3
17						Level III	0	1.8	3.9	6.3	9.0	12.0	15.6	20.0	25.0	30.8	37.2
18						Level IV	1	3.9	7.3	11.0	15.5	20.4	26.4	33.6	41.9	51.5	62.2
19						Level V	1	3.9	7.3	11.0	15.5	20.4	26.4	33.6	41.9	51.5	62.2
20						Level VI	0	3.0	6.6	10.4	15.1	20.0	26.0	33.3	41.7	51.3	62.1
21						Total Clients	4	17	32	49	70	92	118	151	188	232	280
22
23					Revenue		Discounts
24						Product Price		$350	$350	$350	$375	$375	$375	$375	$400	$400	$400
25						Trials	15%	$8,925	$11,900	$14,875	$20,719	$25,500	$31,875	$39,844	$51,000	$61,200	$71,400
26						Level I	10%	$15,120	$33,012	$52,600	$81,313	$108,250	$140,600	$179,980	$239,983	$295,666	$357,493
27						Level II	10%	$25,200	$37,170	$50,539	$71,824	$91,209	$115,155	$144,858	$191,112	$233,890	$281,612
28						Level III	5%	$7,182	$15,681	$24,985	$38,624	$51,419	$66,785	$85,491	$113,992	$140,442	$169,809
29						Level IV	5%	$10,241	$19,345	$29,356	$44,317	$58,253	$75,103	$95,707	$127,270	$156,536	$189,069
30						Level V	0%	$8,085	$15,272	$23,176	$34,987	$45,989	$59,292	$75,558	$100,476	$123,581	$149,265
31						Level VI	0%	$3,150	$6,878	$10,958	$16,940	$22,552	$29,292	$37,496	$49,996	$61,597	$74,478
32						Total Revenue		$77,903	$139,257	$206,489	$308,722	$403,173	$518,101	$658,934	$873,830	$1,072,912	$1,293,126
33						Effective Unit Price		$321	$323	$323	$347	$347	$347	$347	$370	$371	$371
34
35					Total Units
36						Product Trials		30	40	50	65	80	100	125	150	180	210
37						Level I		48	105	167	241	321	417	533	667	821	993
38						Level II		80	118	160	213	270	341	429	531	650	782
39						Level III		22	47	75	108	144	187	240	300	370	447
40						Level IV		31	58	88	124	164	211	269	335	412	498
41						Level V		23	44	66	93	123	158	201	251	309	373
42						Level VI		9	20	31	45	60	78	100	125	154	186
43						Total Units		243	431	638	890	1162	1492	1898	2359	2895	3489
44
45					Headcount
46						Management		2	3	3	3	3	3	4	4	4	4
47						Dev		1	1	2	2	2	2	2	2	2	2
48						Sales		0	0	1	1	1	1	1	1	2	2
49						Marketing		0	0	0	0	1	1	1	1	1	1
50						Total Headcount		3	4	6	6	7	7	8	8	9	9
51
52				Rates	Salaries
53				$80,000		Management		$160,000	$240,000	$240,000	$240,000	$240,000	$240,000	$320,000	$320,000	$320,000	$320,000
54				$60,000		Dev		$60,000	$60,000	$120,000	$120,000	$120,000	$120,000	$120,000	$120,000	$120,000	$120,000
55						Sales		$0	$0	$60,000	$60,000	$60,000	$60,000	$60,000	$60,000	$120,000	$120,000
56						Marketing		$0	$0	$0	$0	$60,000	$60,000	$60,000	$60,000	$60,000	$60,000
57						Incentive Compensation		$50,000	$50,000	$50,000	$75,000	$75,000	$75,000	$75,000	$100,000	$100,000	$100,000
58						Sub Total Salaries		$270,000	$350,000	$470,000	$495,000	$555,000	$555,000	$635,000	$660,000	$720,000	$720,000
59					7.80%	Payroll Taxes		$21,060	$27,300	$36,660	$38,610	$43,290	$43,290	$49,530	$51,480	$56,160	$56,160
60				$600		Healthcare		$21,600	$28,800	$43,200	$43,200	$50,400	$50,400	$57,600	$57,600	$64,800	$64,800
61						Total Salaries		$312,660	$406,100	$549,860	$576,810	$648,690	$648,690	$742,130	$769,080	$840,960	$840,960
62
63				Rates	Per Service Compensation
64				$125		Artist		$30,313	$53,928	$79,798	$111,253	$145,202	$186,537	$237,198	$294,821	$361,932	$436,133
65				$25		Assigned Manager		$6,063	$10,786	$15,960	$22,251	$29,040	$37,307	$47,440	$58,964	$72,386	$87,227
66						Total Per Service		$36,375	$64,714	$95,757	$133,504	$174,243	$223,844	$284,638	$353,785	$434,318	$523,360
67
68					Operating Expenses
69						Software Development		$100,000	$25,000	$25,000	$25,000	$25,000	$30,000	$30,000	$30,000	$30,000	$30,000
70						Licenses and Subscriptions		$35,000	$35,000	$35,000	$42,000	$42,000	$42,000	$42,000	$50,000	$50,000	$50,000
71						Marketing		$25,000	$25,000	$25,000	$25,000	$25,000	$25,000	$25,000	$25,000	$25,000	$25,000
72						Hardware		$15,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000
73						Legal		$30,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000
74						Total Operating Expenses		$205,000	$100,000	$100,000	$107,000	$107,000	$112,000	$112,000	$120,000	$120,000	$120,000
75
76					Total Expenses			$554,035	$570,814	$745,617	$817,314	$929,933	$984,534	$1,138,768	$1,242,865	$1,395,278	$1,484,320
77
78					Cash Flow
79						Culture Connect Product Line Revenue		$77,903	$139,257	$206,489	$308,722	$403,173	$518,101	$658,934	$873,830	$1,072,912	$1,293,126
80						Expenses		-$554,035	-$570,814	-$745,617	-$817,314	-$929,933	-$984,534	-$1,138,768	-$1,242,865	-$1,395,278	-$1,484,320
81						Cash Flow		-$376,132	-$281,556	-$339,128	-$258,591	-$226,760	-$166,434	-$179,834	-$69,035	-$22,366	$108,806
82						Teach To Learn Contributions		$100,000	$150,000	$200,000	$250,000	$300,000	$300,000	$300,000	$300,000	$300,000	$300,000
83						Start-up Capital		$1,000,000	$0	$0	$0	$0	$0	$0	$0	$0	$0
84						Government Grants		$50,000	$100,000	$100,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000
85						Corporate Sponsorships		$50,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000
86						Cash Balance		$823,868	$892,312	$953,183	$1,244,592	$1,617,832	$2,051,398	$2,471,564	$3,002,529	$3,580,163	$4,288,969
87
88
89
90
91
92
93
94
95
96
97
98
99
100