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BUSINESS PLAN

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Table of Contents
I. Executive Summary....................................................................................................................................................................6
Smiley Comics Values................................................................................................................................................................7
Smiley Comics Mission Statement...........................................................................................................................................7
Smiley Comics Vision................................................................................................................................................................7
II. Business and Industry Profile..................................................................................................................................................8
Growth, Goals and Objectives.................................................................................................................................................8
Industry Analysis.......................................................................................................................................................................8
III. Business Strategy.....................................................................................................................................................................9
Desired image and Position......................................................................................................................................................9
SWOT Analysis..........................................................................................................................................................................9
IV. Company Products and Services............................................................................................................................................10
.....................................................................................................................................................................................................10
Customer Benefits...................................................................................................................................................................10
What We Guarantee ...............................................................................................................................................................10
What Makes Our Services Unique........................................................................................................................................10
Trademark and Copyright Protection...................................................................................................................................10
Production Process..................................................................................................................................................................10
Future Products and Services.................................................................................................................................................11
V. Marketing Strategy.................................................................................................................................................................12
Target Market..........................................................................................................................................................................12
Customers Motivation to Buy................................................................................................................................................12
Advertising and Promotion .................................................................................................................................................12
Media Uses:...........................................................................................................................................................................12
Media Costs:..........................................................................................................................................................................12
Pricing......................................................................................................................................................................................13
Desired Image in the Market:................................................................................................................................................13
Comparison Against Competitors’ Prices:............................................................................................................................13
Distribution Strategy..............................................................................................................................................................13
Channels and Distribution Used:...........................................................................................................................................13
Labor Needs.............................................................................................................................................................................14
Wages Rate: ..........................................................................................................................................................................14
VI. Location and Layout..............................................................................................................................................................15
VII. Competitive Analysis............................................................................................................................................................16
Existing and Future Competitors..........................................................................................................................................16
VIII. Description of Management Team.....................................................................................................................................18
Key Managers and Employees...............................................................................................................................................18

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IX. Plan of Operation..................................................................................................................................................................19
Form of Ownership.................................................................................................................................................................19
Decision Making Authority....................................................................................................................................................19
Benefits Package......................................................................................................................................................................19
Retirement Package ..............................................................................................................................................................19
Health Benefit Package.........................................................................................................................................................20
Additional Benefits...............................................................................................................................................................20
X. Financial Requirements..........................................................................................................................................................21
Income Statement....................................................................................................................................................................22
Cash Flow Analysis.................................................................................................................................................................24
Balance Sheet...........................................................................................................................................................................25
Key Ratios................................................................................................................................................................................26
Appendix.......................................................................................................................................................................................28
Szilard Gyalay ........................................................................................................................................................................29
Matthew Dickinson.................................................................................................................................................................31
Paula R. Seapan.......................................................................................................................................................................32
Tomoko Yamagami..................................................................................................................................................................33
Company Structure.................................................................................................................................................................34
Additional Comic Examples...................................................................................................................................................35

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I. Executive Summary

Imagine a world where smiles are delivered through the touch of a button. A
convenience like this is straight out of 1960’s commercial, where everyday features are
automated. Smiley Comics will do just that, providing smiles through personalized
comics delivered directly to our customers.

Many applications are offered to mobile phones. Text messaging, stock quotes,
internet links, etc. All these information services can be burdensome and impersonal.
Comics are a classic entertainment medium, popular with all ages, virtually untapped in
the mobile communication world. Smiley Comics uses this classic medium in a unique
and personalized way, in order to fulfill our motto: ‘We want to put a smile on your face!’

Smiley Comics is an entertainment service offered to the consumer through mobile


communication providers. We create personalized entertainment products targeted to an
individual, using that individual’s known profile. Theses products, comics, are
downloaded direct to the consumer’s personal mobile devices.

Smiley Comics offers a unique and personalized product. It is unique because our
product is created within our company; it is not currently out on the market. Personalized,
because we will be creating products based on our customers’ age, interests, likes and
dislikes. A key part of our strategy is connecting with our customer, and creating a
personalized product for them.

Smiley Comics has recruited a team of diverse and talented leaders. This team
consists of over 15 years of telecommunications industry experience, and over 20 years of
management experience. We have a creative director with a history in the comic industry,
giving key insights into our product. Our management team is fluent in five languages, a
key advantage in any global marketplace. With two MBA’s, one PhD, and an award-
winning artist, this team is prepared to successfully lead Smiley Comics.

This management team’s commitment is shown in their initial capital investment to


Smiley Comics. The estimated cost to launch Smiley Comics is approximately 300K
dollars, and our management team will fulfill that requirement. The additional capital will
come from other outside investors, such as SBA loans or venture capitalists.

Use of wireless applications for entertainment purposes continues to rise. There are
currently 3.2 million worldwide users utilizing the wireless application platform Smiley
Comics will be using. This growth is projected to continue at an annual cumulative rate of

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23%. Mobile entertainment revenue in the U.S, currently at 3.6 million dollars, is
expected to grow at an annual compound rate at 200% and will reach to 876 million by
2005. Smiley Comics product vision is filling a growing entertainment need.

Smiley Comics Values

Smiley Comics core values stem from our commitment to the customer:

Innovation: We strive to keep our product and the technology that delivers it them fresh
and innovative.

Variety: Our goal is to create a personalized product for all customers by continuously
updating and expanding our product base.

Quality: Product quality is a key element to success, both with the technology utilized,
and product creativity. Wireless customers demand fast downloads, utilizing cutting edge
technology. A visually based product, such as Smiley Comics, also requires high picture
quality. Finally, creativity of our product will determine our ultimate success.

On-time Delivery: Our goal is for our customers to look forward to their Smiley Comics.
Any deviation from our promised delivery would undermine that goal.

Smiley Comics Mission Statement

We are in the business of providing unique, personalized comic strips to mobile


devices. We are committed to a smart, quality product using cutting-edge technology and
innovative humor.

Smiley Comics Vision

After initial establishment into the telecommunications industry, Smiley comics


vision is to be:

Internationally provided through all major wireless providers!

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II. Business and Industry Profile

Growth, Goals and Objectives


Smiley Comics, Inc. is a start-up company founded in 2003. We are actively
pursuing cooperation with 3 major wireless services. Once our market position is
established, we will seek exclusive rights and commercial licensing, as well as
aggressively negotiate competitive rates. Our management team is perfectly formed to
insure Smiley Comics goal of reaching international market by Q2 2005

Industry Analysis

From the Personal Wireless Data Subscribers in United States, we have chosen the
category of Entertainment (Jokes, Video Clips Cartoons and ring Tones)

The following table shows the number of existing and/or projected subscribes in the
targeted market segment.

Year Year Year Year Year Year


2000 2001 2002 2003 2004 2005
300,000 600,000 2,000,000 10,000,000 25,000,000 48,000,000

This table also shows that the customer supply has a tremendous growth of (between
2000 and 2003; this growth is expected to double almost every year until 2005.

Wireless Data Subscribers expected future revenue will be as follows:

Year Year Year Year Year Year


2000 2001 2002 2003 2004 2005
3,600,00 10,800,00 31,200,00 144,000,00 420,000,00 876,000,000
0 0 0 0 0

Expected revenue data shows the similar rapid growth expecting a 300% increase from
2003 to 2004, and 587% growth between 2003 and 2005.

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III. Business Strategy
Desired image and Position
(By our knowledge) We are the first company offering these services. To keep our
market position we will:
• Grow with technology. Insure that we adopt our comic strips to the resolution,
size, speed offered by average and above average wireless devices\
• Keep current with political and social changes. As an example - In 1999 during the
Microsoft monopoly trials we all were throwing pies to Bill Gates and tried to use
Linux, after 9/11/2001 everybody was hunting for Bin Laden and today we play
with a deck of cards formed by the 55 most wanted Iraqi officials
• Continuously revising and improving personalization strategy. Orientation and
personality is well diversified by age, demographic, social and geographical
orientation of our customers.
• Our motto, “We want to put a smile on your face” should be known the same way
the golden arches of MacDonald’s is known, the Microsoft flag is immediately
recognized, and of instant association when the three-tone Intel processor ring is
played.

SWOT Analysis
Smiley Comics weakness is that we are a start-up company, new to a competitive wireless
application market.

Smiley Comics strengths include


• Strong management
• Starting capital
• The industry is booming

Smiley Comics opportunities are given by the dynamic nature of the telecommunications
industry.

Threats are presented by existing and future competitors, such as Gaming, Information
Services, M-Couponing and M-Commerce industries. This information is detailed in
competitor analysis.

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IV. Company Products and Services
What we offer are entertainment services. Our comic strip products, created by our
comic writers, are delivered automatically to our subscribers directly through our
customers’ mobile communication provider.

Customer Benefits

As our motto mentions, ”We want to put a smile on your face everyday!”
Customers will get small funny stories once a day to make their life more enjoyable.

What We Guarantee

We guarantee the on-time delivery of our entertaining and unique products.


If customers are not completely satisfied with our services, we will refund the full current
monthly subscription fee any time.

What Makes Our Services Unique

To make our products more unique and creative, we will seek the talented,
relatively unknown comic writers not only in domestic but also outside of the country.
Our unique comics will be available only in through our provided wireless services.

Trademark and Copyright Protection

The name of the “SMILEY COMICS” and “logo” are protected trademark of Smiley
Comic, Inc. All comics and comic products are property of Smiley Comics, Inc.
Writers and designers will be paid for their services and will release all rights to Smiley
Comics, Inc.

Production Process

First, we will recruit talented and obscure writes worldwide. Once comics are submitted
by “contractors”, these comics will be judged by an internal creative panel. Upon
acceptance, all comic strips will become property of Smiley Comics, Inc.

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Future Products and Services

Our vision is to target not only domestic, but international markets. This process will be
possible by our multicultural and multilingual leadership. In addition, we are looking for
a possibility to extend our services to supply educational application.

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V. Marketing Strategy

Target Market

Our target market consists of anyone who enjoys and relies on their wireless devices on a
daily bases. However, we set up our target market specifically to teenagers, university
students, and professionals who respond to comic humor.

Customers Motivation to Buy

How are we going to motivate consumers to buy our products? We have differentiating
characteristic in our services and products. This is demonstrated in lower priced service
fee compared to other wireless applications, the uniqueness and quality of our product, the
ease of access to the services, and finally, the satisfaction and humor an individual
receives for our products! We believe all of these factors will build a happy customer
base, that will continue to grow.

Advertising and Promotion

Media Uses:
• TV and Radio commercial will be most effective and utilized for our cartoon
publications.
• Promotion of our products on college campuses and high schools are.
• Positive effects from Internet advertising and word of mouth. Today the Internet is
one of the largest resource of information for our target market.

Upon product acceptance and popularity, there is a possibility that we will target
additional demographics.

Media Costs:
Total media costs will be $400K distributed as follow
• $200 for Radio and TV (Carrier will aid in providing co-advertising for using their
service).
• $100K for Internet advertising. Will also look into affiliate programs with other
existing websites that offer cartoons to their users
• $50K for banner ads at local colleges and high schools

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• $20K for paying an individual to be the “Smiley Face Comics” mascot to help
promote our product at local events in the community

• $30K for additional miscellaneous media costs.

Pricing
Cost Structure:

A subscription of $1.99/mth will consist of a comic strip sent directly to the users phone
daily and conveniently billed to the individual’s carrier at the end of each period. We
will also offer a free trial period that includes five free comics before a subscription
fee will be assessed

Desired Image in the Market:


We will have the image of having a competitively priced, quality product that is unique in
the wireless applications market.

Comparison Against Competitors’ Prices:


In the wireless entertainment marketplace, there are still no competitors offering Smiley
Comics services and products. We consider games, information and messaging services
as our competitors. Our prices are still low compared to those markets; our unique and
quality products enable us to compete with lower priced services offered by our
competitors.

Distribution Strategy

Channels and Distribution Used:


In our service, each subscriber will not get same comics. The comics will be delivered to
their devices based upon their individual profiles. These profiles are provided upon
signing up with our service.

Sales Techniques and Incentives:

Sales techniques that we will utilize through the wireless devices and the use of the
Internet will be alerting our potential customers of new and exciting comic information

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that our company has acquired. An incentive that we will offer to the end user is a referral
program. If the individual refers business to us we will discount their subscription.

Labor Needs

Our “writer base” will be recruited from talented schools and college students. In Ventura
County there are 21 school districts, 3 community colleges, and 1 four-year university. A
34,350 total students enrolled in VCCC college district on 2003 spring session.
Additionally, in Greater Los Angeles area there is a large talent pool within the
entertainment industry that Smiley Comics will utilize.

Wages Rate:
The wages of executive management will be negotiated. The contractor wages are paid
based on the economical standards applied to comic strip writers.

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VI. Location and Layout
Smiley Comics location is not essential to our business because our contact is indirect
with our customers and would like to keep overhead expenses low. As mentioned we are
planning to use contractual workers for comic strip creation. This factor reduces our
location needs to: offices for executives and satellite employees, a meeting room, a filing
and IT room, and a utility room.

We are planning to locate main offices in Thousand Oaks or Westlake Village area. This
area has many available office buildings. The advantages presented by this solution are
• Ready furnished.
• Ready networked.
• Ready phone lines.
• Professionally maintained meeting rooms – usually a couple per building and
they can be used freely by schedule by the office renters.
• These buildings are already conforming with all ADA, federal and state
regulations.
• Many of these offices offer a secretarial service that gives a big business look.
These services include picking up the phone, messages taking etc.

Office space rental rates are $650 - $850 depending on size and location.

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VII. Competitive Analysis

Existing and Future Competitors


Our end-user has a fixed amount of time that will be spent utilizing mobile device
applications, and Smiley Comic’s competitors include any other applications that will
monopolize this time. Whereas Smiley Comics is unique in the wireless application field,
providing personalized entertainment to our consumer base, threats to our market share
exist through other entertainment-based wireless applications. These competitors include
Games, either downloaded from an external source or provided from the OEM, as well as
Messaging, and Information Services.

How much of a threat are these competitors? Games are already a popular
application, only expected to grow as network-based multi-player games become more
common. A few disadvantages are that the network-based multi-player games charge on a
‘pay-to-play’ basis. The free games provided in the original wireless device are generally
of poor quality. Finally, all games require significant user interaction, and can take up
significant end-user time and attention. This application would not practical for young
business professionals, with little spare time during the day.

Information Services is already one of the most popular wireless applications. It


offers a wide variety of local or national services, and the ability to increase revenues
through advertisements. Information Services has some challenges though, utilizing
bulky end-user devices, compared to the demand of wireless consumers to go smaller and
smaller. The advertisement aspect of Information Services can have a negative effect on
the end-user, already bombarded with tele-marketers, spam advertisement email, and junk
mail.

Messaging is projected to be the highest revenue growth market, with color


applications and mass marketing increasing consumer interest. Messaging has some
significant obstacles to overcome, because of a low availability in end-user devices. This
low availability, combined with some interoperability between wireless carriers, will stunt
Messaging’s market growth.

The nature of wireless technology demands that Smiley Comics look into future as
well as existing competitors. A few future competitors that stand out are M-Commerce
and M-Couponing. M-commerce is any sale of goods or services using a wireless
connection. To date, the future competitors have more disadvantages than advantages.
The primary disadvantage to M-commerce is public awareness and perception. The
public is not yet aware of M-Commerce possibility, and those that are aware are skeptical

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of wireless information security. M-Commerce also has to overcome the fact that many
user interfaces do not promote its use. M-Couponing is a ‘sister’ of wireless advertising.
The end-user receives a message from a merchant offering a coupon or discount. M-
Couponing offers a unique product in that it will reach individuals who would not
normally use coupons, as well as give a quick marketing response. M-Couponing could
alienate the end-user much like Information Services in that it can become annoying to the
end-user already bombarded by advertising.

Below is a competitor profile matrix using Smiley Comic’s products, Games,


Information Services, and Messaging:

Smiley Games Instant


Key Success Weight Comics Messaging
Factor Rating Weight x Rating Weight x Rating Weight x
Rating Rating Rating
Product Quality 0.2 3 0.6 1 0.2 2 0.4

Price 0.2 2 0.4 4 0.8 2 0.4


Competitiveness
Market Share 0.1 2 0.2 4 0.4 2 0.2

Technology 0.2 3 0.6 4 0.8 1 0.2


Interoperability
Product 0.3 4 1.2 1 0.3 2 0.6
Uniqueness
Totals 1.0 3.0 2.5 1.8

This table illustrates Smiley Comic’s potential to take, and hold, significant market
share as the wireless application market grows.

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VIII. Description of Management Team

Key Managers and Employees


Executive management team
• Tomoko Yamagami – VP of Operations
• Paula Seapan – VP of Marketing and Public Relations
• Matt Dickinson – CFO
• Szilard Gyalay – CEO

Executive assistant – open position

What does the management team bring to the company?


• One BA, Two MBA’s and a PHD
• An award-wining artist
• Over 15 years of telecommunication experience
• Over 10 years of executive management
• Creative director with history in comics
• Fluent in five languages
• FDA, FCC, FAA project management experience

Paula Seapan - over 5 years in micro-technology; 10 years in multimedia production


industry. She brings a detailed knowledge of wireless industry. She is a Graduated Cum
Laude of UCLA, The Anderson School MBA program.

Tomoko Yamagami – over 6 years in entertainment industry with a detailed knowledge of


international market. She is fluent in 2 languages and is a Bachelor of Arts graduate with
emphasis in media arts.

Matt Dickinson – Over 10 years experience as a financial advisor in FCC and FDA
environment with detailed knowledge of the wireless phone industry. Matt also brings the
second MBA to the company.

Szilard Gyalay – Over 12 years in automation industry, over 10 years of executive


management in FAA and FDA environment. Fluent in 3 languages with a PHD in Physics
Science

Detailed resumes and organizational chart in Appendix section

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IX. Plan of Operation

Form of Ownership
Smiley Comics will be incorporated as Smiley Comics, Inc.

We have chosen the corporate ownership for all the positive reasons offered by corporate
status. However, there were some key reasons that we thought that are important for our
endeavor available only by the form of corporate ownership. These are as follow
• Ability to continue indefinitely
• Ability to attract capital
• Transferable ownership
• Limited liability for executives

Decision Making Authority

Every executive will be responsible for his/her own department on day-to-day bases
.
All major contracts will be submitted for approval by Marketing to the executive
committee formed by executive officers. Major transactions will be judged based on
investment value as specified in company bylaws.

In my vision when a new project is on the horizon I expect that the Marketing VP will tell
us what we need the Operations VP will tell us how can or can not accomplish the
requested task and CFO will let us know if we have enough funds to accomplish the
marketing requirement.

Benefits Package
Retirement Package
Comprehensive 401(K) Plan managed through T.Rowe Price brokerage
• Choice of 50 mutual fund
• Choice of 6 level growth strategy plans
• Up to 15% contribution by employee

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• A 100% match for the 3% of employee contribution

Health Benefit Package

Variety of PPO and HMO plans


• 81% coverage for HMO through Blue Cross of California
• 74% coverage of PPO through Aetna
• 100% coverage of eye examination for employee, with 80% coverage of
eyeglass (one/year)

We will comply with all federal and state laws regarding birth, adoption , FMLA ,
dependent care etc.

Additional Benefits

• 125(b) dependent care program with up to $5500 tax deferred savings


• LTD (long term disability) insurance program – paid 100% by Smiley Comics
• Life insurance with up to 5X salary – paid 100% by Smiley Comics
• College Savings plans managed by T.Rowe Price for as little as $50/month

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X. Financial Requirements

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Income Statement

Income Statement - Summary of Years 2003 - 2007

2003 2004 2005 2006 2007 Totals

Revenue from subscribers 573,120 2,149,200 5,501,952 8,252,928 9,903,514 26,380,714

Gross Profit 573,120 2,149,200 5,501,952 8,252,928 9,903,514 26,380,714

Operating Expenses
Salaries and wages 100,000 150,000 200,000 250,000 300,000 1,000,000
Employee benefits 40,000 60,000 80,000 100,000 120,000 400,000
Payroll taxes 30,000 45,000 60,000 75,000 90,000 300,000
Rent 33,600 33,600 33,600 33,600 33,600 168,000
Utilities 8,400 8,400 8,400 8,400 8,400 42,000
Consulting 50,000 50,000 50,000 50,000 50,000 250,000
Insurance 20,000 20,000 20,000 20,000 20,000 100,000
Travel 75,000 75,000 75,000 75,000 75,000 375,000
Telephone 6,000 9,000 12,000 15,000 18,000 60,000
Office supplies 1,800 1,800 1,800 1,800 1,800 9,000
Advertising 200,000 300,000 450,000 600,000 720,000 2,270,000
Professional fees 25,000 25,000 25,000 25,000 25,000 125,000
Interest on Loan Payment 28,058 23,655 18,975 14,014 8,746 93,448
Training and development 50,000 60,000 70,000 80,000 90,000 350,000
Lease Payments for Office Equipment 12,000 14,400 18,000 21,600 25,200 91,200

Total Operating Expenses 679,858 875,855 1,122,775 1,369,414 1,585,746 5,633,648

Operating Income (106,738) 1,273,345 4,379,177 6,883,514 8,317,768 20,747,066

Income (Loss) Before Taxes (106,738) 1,273,345 4,379,177 6,883,514 8,317,768 20,747,066

Income Taxes 432,937 1,488,920 2,340,395 2,828,041 7,090,293

Net Income (Loss) (106,738) 840,408 2,890,257 4,543,119 5,489,727 13,656,773

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Break-Even Analysis (Based on 2004 Data from
Income Statement)

Number of Months 12

CALCULATE YOUR CONTRIBUTION MARGIN

Projected Sales $2,149,200


Contribution Margin $2,149,200
Contribution Margin Ratio 100%

CALCULATE YOUR FIXED EXPENSES

Fixed Expenses
Salaries and wages $150,000
Employee benefits $60,000
Payroll taxes $45,000
Consulting Fees $50,000
Rent $33,600
Utilities $8,400
Office Supplies $1,800
Insurance $20,000
Travel $75,000
Telephone $9,000
Advertising $300,000
Professional fees $25,000
Training and development $60,000
Lease Payments for Office Equipment $14,400
Interest on Loan Payment $23,655
Total Fixed Expenses $875,855

Break-Even Sales $875,855

Monthly Break-Even Sales $72,988

Profit During Period $1,273,345

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Cash Flow Analysis

Monthly Cash Flow Forecast (Based on 2003)

Month: 0 1 2 3 4 5 6 7 8 9 10 11 12 2003

Receipts
Collections from Subscribers 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 573,120
New equity inflow 500,000 500,000
Loans received 500,000 500,000
Total Receipts 1,000,0 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 47,760 1,573,1
00 20

Payments
Salaries and wages 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Employee benefits 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 40,000
Payroll taxes 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000
Rent 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 33,600
Recruiting 5,000 0 0 0 0 0 0 0 0 0 0 0 0
Utiltities 700 700 700 700 700 700 700 700 700 700 700 700 8,400
Consulting 10,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Insurance 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000
Travel 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 75,000
Telephone 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Office supplies 5,000 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Advertising 250,000 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 200,000
Professional fees 10,000 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 35,000
Training and development 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 50,000
Lease payment 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Loan repayments 8,286 8,286 8,286 8,286 8,286 8,286 8,286 8,286 8,286 8,286 8,286 8,286 99,432
Total Payments 280,000 63,769 63,769 63,769 63,769 63,769 63,769 63,769 63,769 63,769 63,769 63,769 63,769 1,045,2
32

Cashflow Surplus/Deficit 720,000 (16,009 (16,009 (16,009 (16,009 (16,009 (16,009 (16,009 (16,009 (16,009 (16,009 (16,009 (16,009 527,888
(-) ) ) ) ) ) ) ) ) ) ) ) )

Opening Cash Balance 0 720,000 703,991 687,981 671,972 655,963 639,953 623,944 607,935 591,925 575,916 559,907 543,897

Closing Cash Balance 720,000 703,991 687,981 671,972 655,963 639,953 623,944 607,935 591,925 575,916 559,907 543,897 527,888

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Balance Sheet

Balance Sheet -Years 2003 - 2007


2003 2004 2005 2006 2007
ASSETS

Current Assets
Cash 527,888 1,772,799 4,257,113 5,108,536 6,130,243
Accounts receivable from Subscribers 573,120 2,149,200 5,501,952 8,252,928 9,903,514

Total Current Assets 1,101,008 3,921,999 9,759,065 13,361,464 16,033,757

Total Assets 1,101,008 3,921,999 9,759,065 13,361,464 16,033,757

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Accounts payable 50,986 62,086 78,278 94,441 107,575
Wages Payable 6,800 10,200 13,600 17,000 20,400
Income taxes payable 108,234 372,230 585,099 707,010
Current portion of Long-Term Debt 41,115 73,909 78,467 83,307 88,447
Total Current Liabilities 98,901 254,429 542,575 779,847 923,432

Long-Term Debt 458,885 384,976 306,509 223,202 134,755


Total Long-Term Liabilities 458,885 384,976 306,509 223,202 134,755

Owners' Equity 543,222 3,282,594 8,909,981 12,358,415 14,975,570

Total Liabilities and Owners' Equity 1,101,008 3,921,999 9,759,065 13,361,464 16,033,757

Smiley Comics Business Plan Page 25 3/26/2009


Key Ratios
Summary of Key Ratios - Years 1 to 5

2003 2004 2005 2006 2007

DATA COLLECTION

Balance Sheet
Cash 527,888 1,772,799 4,257,113 5,108,536 6,130,243
Accounts receivable, net 573,120 2,149,200 5,501,952 8,252,928 9,903,514
Total current assets 1,101,008 3,921,999 9,759,065 13,361,464 16,033,757
Total current liabilities 98,901 254,429 542,575 779,847 923,432
Total long-term liabilities 458,885 384,976 306,509 223,202 134,755
Total owners' equity 543,222 3,282,594 8,909,981 12,358,415 14,975,570

Income Statement
Total sales 573,120 2,149,200 5,501,952 8,252,928 9,903,514
Gross profit 573,120 2,149,200 5,501,952 8,252,928 9,903,514
Total operating expenses 679,858 875,855 1,122,775 1,369,414 1,585,746
Income (loss) before taxes (106,738) 1,273,345 4,379,177 6,883,514 8,317,768
Net income (loss) (106,738) 840,408 2,890,257 4,543,119 5,489,727

KEY RATIOS

Profitability Ratios
Return on equity -20% 26% 32% 37% 37%
Return on sales -19% 39% 53% 55% 55%
Gross profit margin 100% 100% 100% 100% 100%

Leverage and Liquidity Ratios


Current ratio 11 15 18 17 17
Long-term debt ratio 0.5 0.1 0.0 0.0 0.0
Debt to equity ratio 1.0 0.2 0.1 0.1 0.1

Smiley Comics Business Plan Page 26 3/26/2009


Smiley Comics Business Plan Page 27 3/26/2009
Appendix

Smiley Comics Business Plan Page 28 3/26/2009


Szilard Gyalay

2414 Pleasant Way #H, Thousand Oaks, CA 91362


Tel. 805/371-9195
szilard@gyalay.com

CAREER SUMMARY
Over 5 years of quality, manufacturing, test engineering and supervision experience in test equipment development,
software design development and manufacturing process optimization and control using SPC and Six-Sigma
methodology in ISO9001 environment. Over 11 years of intensive IT industry experience in planning, requirement
analysis, programming, development and teaching.

Management
• Supervised a Manufacturing Engineering Department with 7 engineers.
• Managed high profile aerospace and industrial projects from engineering board to production floor with cross-
functional teams.
• Coordinated manufacturing floor restructuring and optimization dealing with several business dynamics.
• Managed hardware and software requirements as an IT department Manager with a team of 6 programmers.
Process optimization, quality improvement
• Implement SPC (Statistical Process Control) on the manufacturing floor and increased first pass yield 15% in
less than 2 months.
• Designed statistical application for SPC implementation.
• Used design and process FMEA and DOE to reduce defects and MRB actions, with 25%.
• Coordinated and followed corrective action implementation.
• Implemented Crystal Reports to improve reporting procedure.
• Established automated process control for test data processing in a multi-user environment.
Manufacturing/Test Engineering
• Relocated full (5 million) production line in less than 2 weeks and line had running production second day after
relocation.
• Built test system network of ATE stations for ease of test data communication and test setup adopted by
company.
• Designed fully automated test stations for pressure transducer testing.
Programming
• Over 2.5 years of SBT Pro 5.0i, Pro 3.2i, Pro 3.0i developing, modifying experience.
• Developed manufacturing, fixed capacity schedule and contact management systems for SBT applications.
(MRP I, MRP II, ERP).
• Acted as costumer support of SBT manufacturing modules.
• Converted projects between different versions of FoxPro, Visual FoxPro.
• Experience developing accounting, inventory and payroll systems.
• Created Century Date Kit for SBT 3.2 release in order to handle Y2K dates.
• Implemented data processing system with SQL back-end and Crystal report as front-end applications.
• Create and maintain personal and small business home pages using HTML, DHTML and Java code applets.
• Developed professional and user documentation for software packages.
Training
• Trained many technicians for test equipment and testing software use.
• Worked as a high school teacher for science and software programming classes.
• Accomplished as a mentor/trainer of FoxPro with over 2 years of service.

SOFTWARE
Smiley Comics Business Plan Page 29 3/26/2009
• Visual FoxPro 7.0, 6.0, 5.0, 3.0,
• FoxPro for Windows 2.6,
• FoxPro for DOS 2.6, 2.0.
• Visual Basic 3.0, 6.0
• DBase4,
• Seagate Crystal Reports,
• Seagate Info,
• Seagate Analysis,
• SQL
• Minitab, statistical software
• Web Development,
• Ms Office, MS Project, Visio
• C, C++,
• Windows 85/98/2000, NT
• Novell 3.x and 4.x support,
• Familiar with Linux environment

PROFESSIONAL EXPERIENCE

Advanced Bionice 2002 to present


R&D Auditory – Test Engineering Mamager

Ametek Aerospace (formally Gulton Statham ) 1996 to 2001


Manufacturing Engineering Supervisor

Lahey Financial Systems 1996 to 1999


Senior FoxPro Developer

Nyiradony High School, Nyiradony, Hungary 1993 to 1995


Science / Software Programming Teacher

City Hall of Nyiradony, Hungary 1993 to 1995


Senior FoxPro Developer

Silvana Cehu Silvaniei , Romania 1991 to 1993


Senior Manager of software and hardware.

EDUCATION
PHD Physics Science

CERTIFICATION
Certification in Supervising and Management - Employers Group, Newport Beach
Six Sigma Methodology training – Ametek Aerospace
FCC General Class Ham Radio License

SPECIAL SKILLS
Fluent in Hungarian, Romanian
Trained Emergency Communication Operator

Smiley Comics Business Plan Page 30 3/26/2009


Matthew Dickinson
13480 Laurelhurst Rd
Moorpark, CA 93021
805-552-0301
sdgrown@sbcglobal.net

EMPLOYMENT HISTORY
(2002 – Present) Amgen Inc. Thousand Oaks, CA
“Amgen Inc. is the largest biotech company in the world that dramatically improves people’s lives by producing a variety of drugs that support over $5
billion annually”
Finance Manager
• Financial consolidator for Worldwide Sales & Marketing
• Support monthly close, latest estimates, annual planning and long range planning activities
• Construct financial models and develop valuation analyses
• Support a staff and oversee accounting operations
• Support development of presentations for Senior Management
• Monitor industry and competitive trends, companies, technologies and therapeutic areas of relevance to Amgen

(2000 - 2002) Qualcomm San Diego, CA


“Qualcomm is the worldwide leader in CDMA technology and averages $3-$4 billion in annual revenues”
Financial Analyst
• Responsible for all SG&A financial zand reporting for worldwide operations
• Provided financial support to department leads and project managers explaining variances and implementing cost effective solutions
• Acted as the financial lead for the CRM (Customer Relations Management) Implementation Project implementing strategies to accurately account for all the
capital expenditures through 5 phases
• Worked with the VP of engineering to help manage and budget for substantial capital expenditures
• Assisted in the preparation of Financial Statements and Strategic Plans presented to Senior Management
• Prepared monthly accruals for all expense and revenue sources
• Assisted accounting department with A/P, A/R and month-end close functions
• Produced Cash Flow, NPV, ROA and ROI Analyses for our business unit
• Produced and distributed monthly performance metrics for all departments
• Assisted in the preparation and evaluated business models for phone carriers

(1997 - 1999) Chicken of the Sea International San Diego, CA


“Chicken of the Sea Int’l is headquartered in San Diego with two manufacturing facilities, in the U.S. and American Samoa supporting over $300 million in sales”
Financial Analyst
• Generated variance analysis reports for labor, overhead and material usage
• Balanced monthly inventory reconciliations and created production forecasts
• Coordinated and assigned new product cost estimates
• Maintained and balanced inter-company accounts
• Created monthly cash flow statements and reported borrowing base to banks
• Prepared and analyzed monthly capital expenditures
• Coordinated all accounting functions with a staff of 5 people to ensure timely and accurate reporting
• Generated and analyzed financial data including month-end and year-end financial statements
• Maintained, updated and created new improved processes to manage all the fixed assets within the company

(1996 - 2000) Scripps Tax and Financial Group San Diego, CA


Accountant/Tax Preparer
• Prepared monthly financial statements, reconciliations, sales and use tax and payroll reports for clients
• Prepared taxes for individuals, corporations, partnerships and fiduciaries
• Consulted with clients regarding new tax laws and their implications
• Supervised staff on general accounting principles and tax codes

MAJOR ACCOMPLISHMENTS
Saved a former company over $2 million dollars by re-evaluating the standard costs on their products
Instrumental in implementing new budgeting software that saved the company time and money

HARDWARE/SOFTWARE SKILLS
Software – Excel, Lotus 123, MSWord, WordPerfect, Results, Access, PowerPoint
Accounting and Financial Packages – Peoplesoft, COGNOS, G/L Report Writer, Peachtree, Quickbooks,Oracle,Siebel Systems,
Hyperion, and JDE

EDUCATION
2000 University California Los Angeles
MBA

1996 San Diego State University San Diego, CA


BS Business Administration in Accounting

Smiley Comics Business Plan Page 31 3/26/2009


Paula R. Seapan
10000 Los Arboles
Thousand Oaks, CA 91362
(805) 444-1111
Summary:
Award winning marketing executive with 10 years experience developing innovative programs to launch and position
various products. Experience includes a record of success in leading teams, and proven leadership in taking
organizations to the top.

Education:
University of Notre Dame, Notre Dame, Indiana. Double degree B.A. in Marketing and Philosophy.

UCLA, The Anderson School MBA program. Concentration in Marketing and Finance. Graduated Summa Cum
Laude.

Experience

Marketing Consultant.
• Developed and executed business plans; supervised product management, product marketing, business
development and partner/affiliate marketing programs.
• Designed and implemented direct response program that exceeded expectations.
• Streamlined and developed customer acquisition plan to meet high consumer demand and to reduce customer
acquisition costs.

Sr. Director of Marketing.


• Launched innovative product and Website. Implemented consumer and business-to-business marketing
communications programs which resulted in exceeding membership goals.
• Led research efforts on product functionality and usability; implemented technology and design changes that
increased member registration.

Director of Marketing.
• Forecasted and managed a budget in excess of $40 million to launch and build our brand, as well as grow
operations.
• Developed initial branding and strategic marketing plans that launched key products.
• Negotiated and managed strategic alliances with leading trade and consumer Web sites.
• Implemented online and offline advertising, public relations, promotions and sponsorships.

Director, Retail Products.


• Developed and managed a strategic marketing program which launched into residential telecommunications.
Managed product marketing, partnership, and licensing programs. Directed communications agencies and
staff.
• Launched programs for Internet access, pagers and calling cards, subsequently increasing revenue.

Marketing Consultant.
• Provided marketing management services for non-profit and minority businesses.

Smiley Comics Business Plan Page 32 3/26/2009


Tomoko Yamagami

(805) 777-7686
227 Encino Vista Dr
Thousand Oaks, CA 91362

Education

California Institute of the Arts, Valencia, California


Bachelors of Media & Fine Arts, May 2002.
Graduated Summa Cum Laude. Recipient of the Hurst award for Media Excellence.

Ventura College, Ventura, California


Associate of Art degree in Art, June 2000. Graduated with Honors.

Experience

Publication Designer, June 2001 ~ Present


Harry N. Abrams, Inc., Sylmar, California
Designed and art directed over 10 success publications.
Supervised designers, photographers and illustrators.

Publicity Intern, May 2000 ~ May 2001


Harry N. Abrams, Inc., Sylmar, California
Assisted in the creation of the press kit for all media events.
Created and maintained media database.
Assisted with Marketing and Advertising by performing general administrative
duties.

Editor, 1995 ~ 1997


Japanese International Comics, Japan
Edited weekly comic magazine which has sold over a million weekly copies in
Asia. Recruited and promoted comic staff.

Language Skills

Written and verbal proficiency in Japanese and English.


Smiley Comics Business Plan Page 33 3/26/2009
Company Structure

Szilard Gyalay
CEO

Executive Secretary
Position to be filled Paula Seapan
Marketing/Public
Relations Director

Tomoko Yamagami
Operations
Director

Matt Dickinson
CFO

Smiley Comics Business Plan Page 34 3/26/2009


Additional Comic Examples

Comics for College Students:

Comic for Professionals:

Smiley Comics Business Plan Page 35 3/26/2009

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