E-World
Market Feasibility Report
E-World Web Design Company
12/7/2010
This market feasibility report will present many aspects of system and business for web design company E-World. Report will examine the market, operational, and financial feasibility as well as internal and external analyzes.
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Table of ContentsExecutive Summary..................................................................................................................................... 2
Market Feasibility Idea................................................................................................................................. 3
Description................................................................................................................................................... 3
Uniqueness.................................................................................................................................................. 3
External Analysis: Applicable Strengths And Weaknesses..........................................................................4
PEST Analysis......................................................................................................................................... 4
SWOT Analysis........................................................................................................................................ 5
Strengths................................................................................................................................................ 5
Weaknesses............................................................................................................................................ 5
Opportunities.......................................................................................................................................... 6
Threats................................................................................................................................................... 6
External Analysis: Feasibility of the Idea.....................................................................................................6
Industry Analysis...................................................................................................................................... 6
Five Porter Forces:............................................................................................................................... 6
Competitor Analysis................................................................................................................................. 8
Current Market for Services..................................................................................................................... 9
Customer Analysis................................................................................................................................... 9
External Analysis: Needed for Implementation..........................................................................................10
Managerial Structure:................................................................................................................................ 10
Financial Feasibility................................................................................................................................... 12
Break Even Analysis:............................................................................................................................. 12
Projected Sales:..................................................................................................................................... 13
Income Statement:................................................................................................................................. 13
Cash Flow Statement:............................................................................................................................ 15
Balance Sheet:....................................................................................................................................... 17
Possible funding options:....................................................................................................................... 18
References:............................................................................................................................................... 19
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Executive Summary
E-World is a small venture found in the commercial area of Klaipeda, Lithuania. Company offers Internet and Web-based services to small businesses in the city of Klaipeda. The services E-World offers consist of website development and design, hosting, maintenance and marketing.
With an experience and knowledge in Web development and business-to-business sales, E-World believes that it can provide a unique and better service to small businesses, in contrast to the services being offered in the market.
The growth rate and demand for the web design, development and promotion for the small businesses is high all the time, and according to the statistics does not show any evidence of decline. Furthermore, it is an amazing fact that only a small number of web design companies have taken an advantage of this opportunity, because there is no leading company in this big market.
E-World believes that this phenomenon of unoccupied market happened due to the high project cost. Our company created a web design system that reduces the cost of the projects. Thus, the E-World will offer same high-end web design services at much lower costs.
This market feasibility report will present many aspects of system and business for web design company E-World. Report will examine the market, operational, and financial feasibility as well as internal and external analyzes.
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Market Feasibility Idea
My idea for market feasibility study is start up web page creation and hosting company with future development opportunity to social network and mail domain creation and maintenance.
Description
The main area of activity is the creation and promotion of Internet sites that can be used as sales tool or tackle other tasks entrusted to it. Creation of web sites for commercial subjects (creation of corporate websites) and promotion is one of the most competitive industries in the field of Internet sites development. Therefore development team is required to have a developed marketing skills and practical experience. We commit ourselves to the task of creating technically ready to move in search engine site, with a competent design, which will increase the recognition of the company and attract new customers. Therefore, we consider the development and manufacturing site, as the first stage of its successful promotion. Quality of design can also greatly enhance the popularity of the company. At the creation stage we offer our customers three different design models from which he/she can choose one that he/she likes and it will be developed further. Manufacturing Web sites in our studio involves the whole cycle of works from domain registration to hosting a siteб as well as providing graphic design.
Uniqueness
Our motto is "The sites that work", and they work not only in a technical sense, but also in economic terms. We will use an individual approach to each client, unlike the template, it will give us solutions that will allow us to create sites that meet the requirements of both customers and their potential clients. The "Completed Work" will allow customers to fully sense the style and quality of developed sites. We believe that the factor determining the success of our company will be the quality of work performed, evidenced by the feedback from our customers. Create a site can many, but to make an effective tool in the market of Internet space can only few.
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External Analysis: Applicable Strengths And Weaknesses
PEST AnalysisPolitical factors
Strengths WeaknessesLithuania became independent and began the privatization process. After joining the EU, began to promote competition, support for small and medium-sized businesses to reduce the influence of monopolies and oligopolies in markets (in accordance with the laws of the Republic of Lithuania, the entity is considered dominant if its market share is not less than 40 percent). The State and the EU is making efforts in order to further reduce the number of state-owned enterprises and monopolies, and increased surveillance. Lithuanian law is enforced racial, cultural and religious equality, which encourages foreign professionals to work in web design industry in Lithuania. Lithuania is a member of the EU, the World Trade Organization and other smaller regulating trade organizations. These unions protect intellectual property, which is crucial to web design industry.
Lithuania is a relatively young country, which is still only 16 years old. Frequent changes of government (now 14th, although in theory should be changed every four years), political instability affects not only government actions, but the country and the economic environment complicates the establishment of a business and its development. Seimas of the Lithuanian Government approved the draft laws. They often form their outright change in policy, laws and fees are regulated by their calculating procedures, company formation, accounting and control rules. These changes negatively impact the industry of web design and software, which is closely related.
Economic Factors
Strengths WeaknessesRapid GDP growth during 2006 has risen by 6.9 percent. Although now it is forecasted that GDP growth rate will slow down, but it should remain high in the future (the Ministry of Finance forecasts - about 5 per cent. Per annum 2010). Average monthly gross wages and salaries in the public sector increased by 19.1 percent and amounted to 1,802 LT and the private sector grew 20.7 percent and amounted to 1,687 LT in year 2010 compared to 2009.
1. Lithuania has noticeably higher the inflation rate than in other EU countries.
2. Slow pace of the middle layer formation.
3. Lack of state support for SME development.
4. Lithuania does not meet the Maastricht inflation criterion.
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Social Factors
Strengths WeaknessesIn Klaipeda, as in the rest of Lithuania, there is no religious fragmentation of the conflict. Klaipeda welcomes overseas products and services. Klaipeda’s has available entertainment niche. The number of unemployed people is uniformly decreasing.Out of these factors as a trend, the demand for software and web design is increasing for past 3 years.
In Klaipeda region has increased mortality rates. 2009 natural population has decline, per 1,000 population was 6.3 in 2010 6.9 (Lithuania respectively 3.2 and 3.9). The increased population migration was observed as a part of trend of the aging population. It affects the region and the economic situation by increasing the number of pensioners. There is a growing crime rate, especially among young people. These factors can diminish the number of clients, because the typical client is 20 to 40 years old.
Technology
Strengths WeaknessesThe State encourages people to purchase computers (to be reimbursed 33 percent of the purchase value), supports the use of cyberspace (tax payment; order the performance of banking operations, consultations on the Internet, the achievement of all public institutions). Increase of Internet users in the group, there is still more of their goods and services to companies that advertise their web sites.
We have the technical base of companies do not provide an optimal work performance and attractive price / quality ratio.
SWOT Analysis
Strengths Weaknesses
Profound and broad understanding of industry.
Superior experience and knowledge. Flexibility of time and projects The capability of meeting the client's
desires with a custom-built, malleable solution.
Limited number of served clients due to the one person venture (at least originally)
The difficulty of building brand image. The inability to meet rapidly growing
demand.
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Opportunities Threats
Partaking in a rapidly growing market. High variety of sales opportunities as
technology advances. Niche for selling templates
Future competition from authorized web design firms.
Substantial leaps in computer technology makes computers a lot easier to use, decreasing the demand for developing web pages.
A substantial increase in client's computer proficiency leads to self-made web sites.
External Analysis: Feasibility of the Idea
Industry Analysis
Internet industry is one of the most dynamic sectors of modern business. And, therefore, is an area that provides opportunities for career growth and rising living standards for talented professionals. At the moment we are seeing consistent development of the Lithuanian Internet and projected growth of an Industry for this year is 20%1. A significant proportion of the advertising market is moving from off-line to on-line, which entails increasing segment of the Internet market. Web site from a simple web-based tool of communication turned into a powerful industry that allows conducting business around the world.
Internet gives basic but sufficient advantage for a business: This is an opportunity to have business partners in every corner of the globe. Promote products, regardless of distance and language skills. Conduct business remotely. Receive information quickly and on time.
Five Porter Forces:
According to online encyclopedia Investopedia.com the Five Porter Forces for Internet Industry are:
1. Threat of New Entrants.
You do not need to look far to realize that the cost of entry has fallen fast. It used to costs an arm and a leg to launch a portal. The price of computer software and servers and network bandwidth - of which portals consume a substantial amount - was enormous. Yet costs are falling fast, as off-the shelf systems can now do what only customized technologies could do just a few of years ago and at a fraction of the price. At the same
1 Kiran C., Web Development 2010
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time, brainy web developers, which were scarce at the height of the internet market boom, are now much easier for new entrants to find and have become more affordable keep. However, the apparent success of companies like Amazon, is not based on their low entry cost into book retailing, but the very large sums of money spent on promotion and growing their business. Entering a new market with a new brand still calls for deep pockets.
2. Power of Suppliers.
Portals generally have little power over suppliers. Basically, this is because they don't actually own much. Most of the information and services they deliver to users is supplied by outside companies – stock brokerages, new magazines and the like. Expect content suppliers to enjoy growing power, especially considering portals will not able to give content away forever. At the same time, internet portals rely on telecom network operators for a steady diet of internet bandwidth. Granted, the telecom bandwidth business is getting increasingly competitive and prices are falling fast. But once systems are hooked up to telecom operator networks, it can be awfully difficult to switch to a new supplier.
3. Power of Buyers.
Internet portals have two sets of buyers: visitors and advertisers. Both enjoy considerable power over portals. Competing sites are just a click away; URL book-marking makes the job of switching to other sites even easier for users. In fact, portals are in constant danger of a mass desertion of users to other sites because in most cases, customers make no financial commitment to the service. Portals' heavy reliance on advertising dollars means that ad spenders can squeeze increasingly better terms for banner space.
4. Availability of Substitutes.
Internet portals must defend themselves from a raft of substitutes. The most obvious are other websites that offer the same, or similar, information and services. Most portals do little more than aggregate information and services that already exists on the internet; original content suppliers represent a readily available set of substitutes. In most cases, they are just a click away. There are more, less obvious substitutes as well, such as television and magazines. Television's clear, moving images never suffer slow connections; magazines can be rolled up and carried on the bus. Don't forget that the good old telephone directories - both white and yellow pages - are still very convenient business search tools.
5. Competitive Rivalry.
Feeble barriers to entry, a slew of substitutes and steadily increasingly buyer power combine to create a disturbing impact: fierce competition and industry rivalry.
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Portal competitors now must lure customers with lower prices and heavy investment in more exciting content services. All of this tends to drive industry profitability down, threatening the survival of players who can't compete.2
Competitor Analysis
Currently in Klaipeda there are only four web sites’ creating companies. They and their areas of activities are presented in table below.
Competitor Name
Web
sit
e de
velo
pmen
t ser
vice
s
WebMod company3: Edit Studija4: MMarius Company5: Emotion Company6:
Web site promotion Web development Web Design Web development
Content Management System (CMS)
Internet Advertising Web development E-commerce
Web DesignThree-dimensional graphics (3D)
Website Support Internet Advertising Internet Marketing
Online Advertising Create corporate style
Photography
Additional Services:
Fla
sh/a
nim
atio
n S
ervi
ces
photo pages Other Web Solutions
N/A N/A
Translation pages
name and online hosting
Prices:Lt Starting from 400lt* Starting from 490lt* Starting from 490 lt* Starting from
400 lt**with minimum tools and widgets included (basic level websites)
2 All information about Five Porter Forces was taken from the online encyclopedia www.investopedia.com3 Information about the services was taken from http://www.webmod.lt/lt/paslaugos_svetainiu_kurimas_web_dizainas4 Information about the services was taken from http://www.e-dit.lt/#Paslaugos5 Information about the services was taken from http://www.mmarius.lt/6 Information about the services was taken from http://www.emotion.lt/paslaugos
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According to the services provided and the number of web sites created, companies WebMod and Emotion are leading companies that provide good quality services for average industry price. Their price and quality ratio is above others in Klaipeda.
Current Market for ServicesAccording to research made by the committee of development of the Informational
society states that 35% of the businesses in Lithuania have their corporate website and 42.8% do not have, but are willing to create one7. Following this demand, I will operate in a niche for website creation and development services. These services include website creation and promotion, both advertising the website and placing adverting on the website, providing Content Management System, 3D object development, flash animation and flash site creation, taking pictures for creation of the website, selling website templates (html, xhtml, php, MySQL and etc.), creation of online galleries, creation of company’s logo, providing hosting and space on the server and registering the domain (name of the website). Also, if customer has need in keeping website maintenance, we will provide it.
Customer Analysis
The typical customer for the Web page creation company that creates the major segment of operational income is business person, or commercial/marketing director with middle or high income, age gap is not considered to be a criterion, who wants to create the website for their company or any other project. Also there are customers of high variety of age and income, who want to create website or any featured object (3D or flash) for their personal use.
7 Information was taken from http://www.ivpk.lt/main-stat.php?cat=62&n=21
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External Analysis: Needed for Implementation
At first, most of the work will fall on the individual entrepreneur, as well as the second office employee. These people can perform any services offered by our company, other than typing. Set of texts will be given to the contractor. To this reason, the firm can hire people of any age and gender, education also has no value. The only requirement is a good typing speed, responsible approach to work and the possibility of long-term access to a computer. In order to ensure the normal operation of the company, entrepreneur must keep in mind workers in amount several times more than needed. This approach is driven by the need of nonstop operation of the company, as well as the fact that it does not require to pay wages for contract workers if they do not work.
Furthermore, additional contract workers can be involved in performing other services (for example: to repair, maintain, and modernize equipment; set up and create software products). Unlike in the case of type writers, above mentioned services require qualified professionals who unlikely will want to work on the contract for a fairly reasonable wage. However, the problem is easily solved. You can hire senior students with appropriate specialties. The main requirement for them is to have a good knowledge of the subject area and responsible attitude toward work. It is driven by the desire of many students to find a small salary in his/her spare time; we can safely assume that the problems with lack of staff at the E-World will not have.
The wage that an individual entrepreneur earns is withdrawn from the profits of the firm. Employees who are working under the contract for each job receive an amount determined by the individual entrepreneurs and specified in the work contract. Also additional reward for contractors for good employment rates and innovations aimed at increasing the firm's profits are available. In the future (at the end of the year) the second office worker will be transferred to a permanent position. Also on similar terms will be hired one or two technicians.
The E-World is not going to abandon the workers on contract, because they are more beneficial to firm’s performance for the aperiodic jobs. The distribution of jobs and control over the execution of all works will be carried out directly by an individual entrepreneur, who is the sole owner of the company.
Talking about hardware, company will need 4 PC’s, one stable server and one mirroring server, plus wide optical internet access point. For creation and maintenance, company will need certain software packages.
Managerial Structure:
As a strategy for selecting components of information-analytical system, the E-World company bases on the principle of "Best-of-breed" - to deploy best-in-class solution for each functional area. Principles for selection of the following criteria:
The system must be able to handle large volumes of data, up to the transactional data The system must provide hundreds of users, including users in the central office and
shops Ability to use sophisticated analytical techniques required for solving the problems of
retail business
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To construct the data warehouse was selected database Sybase IQ, specifically designed for analytic data warehousing; and as a means of data integration - Oracle Data Integrator (Oracle | Sunopsis), representing a relatively new class of tools load data - ELT (Extract Load Transform). For reporting and data analysis platform was chosen MicroStrategy, allowing solving such important problems for the retail business, as ABC analysis, market basket analysis (market basket analysis), etc.
Company E-World has a system of corporate reporting and data analysis, which has become a source of complete, consistent and reliable information about the company, the opportunity for regular monitoring of the company, as well as analysis of the effectiveness of the company from different angles, levels, and non-financial indicators. In particular:
Added the corporate reporting system, replacing several legacy systems accessible through the Web shopping
Increased speed of data acquisition employees. If earlier to obtain the necessary data analyst had to wait hours, but now it is time seconds
Users can create their own reports without IT services, based on a single directory business terms
You can easily handle more complex tasks
Business Intelligence solution allows employees to E-World to track key performance indicators of the company, as well as solve complex analytical problems by identifying relationships between its products, optimize product assortment, the analysis of marketing, sales on credit, on discount cards, with additional services, with sets, etc.
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Financial Feasibility
Break Even Analysis:Break Even Report
Units Fixed Costs Total Costs Total Revenue Profit
0 $700.00 $700.00 $0.00 ($700.00)
1 $700.00 $750.00 $350.00 ($400.00)
2 $700.00 $800.00 $700.00 ($100.00)
3 $700.00 $850.00 $1,050.00 $200.00
4 $700.00 $900.00 $1,400.00 $500.00
5 $700.00 $950.00 $1,750.00 $800.00
6 $700.00 $1,000.00 $2,100.00 $1,100.00
7 $700.00 $1,050.00 $2,450.00 $1,400.00
8 $700.00 $1,100.00 $2,800.00 $1,700.00
9 $700.00 $1,150.00 $3,150.00 $2,000.00
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Projected Sales:
Sales Forecast
Sales Year 1 Year 2
Website Development 15.000 Lt 19.000 Lt
Result-based Marketing 19.000 Lt 20.000 Lt
Maintenance 14.000 Lt 16.000 Lt
Hosting 10.000 Lt 12.000 Lt
Total Sales 58.000 Lt 67.000 Lt
Direct Cost of Sales Year 1 Year 2
Website Development 0 Lt 0 Lt
Result-based Marketing 1.000 Lt 1.500 Lt
Maintenance 0 Lt 0 Lt
Hosting 3.000 Lt 5.000 Lt
Total Direct Cost of Sales 4.000 Lt 6.500 Lt
Income Statement:
Income Statement E-World
Revenue2010 2011
Amount
% of Sales
Amount
% of Sales
Gross sales $58.000
$67.000
Less sales returns and allowances 0 0
Net sales $58.000
100% $67.000
100%
Cost of Sales2010 2011
Amount
% of Sales
Amount
% of Sales
Beginning inventory $0 0% $0 0%Plus goods purchased/manufactured
4.000 7% 6.500 10%
Total goods available $4.000 7% $6.500 10%
Less ending inventory 0 0% 0 0%
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Total cost of goods sold $4.000 7% $6.500 10%
Gross profit (loss) $54.000
93% $60.500
90%
Operating Expenses2010 2011
Amount
% of Sales
Amount
% of Sales
Selling
Salaries and wages $0 0% $0 0%
Commissions $0 0% $0 0%
Advertising $1.800 3% $2.500 4%
Depreciation $0 0% $2.000 3%
Total selling expenses $1.800 3% $4.500 7%
General/Administrative
Salaries and wages $30.000
52% $30.000
45%
Employee benefits $1.200 2% $1.200 2%
Payroll taxes $0 0% $0 0%
Insurance 0% 0%
Rent $0 0% $0 0%
Utilities $0 0% $0 0%
Depreciation and amortization $0 0% $2.000 3%
Office supplies $320 1% $320 0%
Travel and entertainment $0 0% $0 0%
Postage $100 0% $100 0%Equipment maintenance and rental
$0 0% $0 0%
Interest $0 0% $0 0%
Furniture and equipment $0 0% $0 0%Total General/Administrative expenses
$31.620
55% $33.620
50%
Total operating expenses $33.420
58% $38.120
57%
Net income before taxes $20.580
35% $22.380
33%
Taxes on income $4.528 8% $4.924 7%
Net income after taxes $16.052
28% $17.456
26%
Extraordinary gain or loss $0 0% $0 0%
Income tax on extraordinary gain $0 0% $0 0%
Net Income (Loss) $16.052
28% $17.456
26%
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Cash Flow Statement:Cash Flow Forecast
Month: Pre-Start
1 2 3 4 5 6 7 8 9 10 11 12 Totals
Cash sales 1.400 Lt 1.500 Lt 1.500 Lt 1.500 Lt 1.800 Lt 1.500 Lt 1.500 Lt 2.000 Lt 3.000 Lt 2.500 Lt 2.000 Lt 4.000 Lt 24.200 Lt
Collections from credit sales 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 200 Lt 2.400 Lt
New equity inflow 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 3.000 Lt 36.000 Lt
Loans received 40.000 Lt 40.000
Lt
Other 0 Lt
Total Receipts 40.000 Lt
4.600 Lt
4.700 Lt
4.700 Lt
4.700 Lt
5.000 Lt
4.700 Lt
4.700 Lt
5.200 Lt
6.200 Lt
5.700 Lt
5.200 Lt 7.200 Lt 102.600
Lt
Payments
Cash purchases 50 Lt 50 Lt 50 Lt 50 Lt 50 Lt 50 Lt 50 Lt 50 Lt 400 Lt
Payments to creditors 0 Lt
Salaries and wages 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 2.500 Lt 30.000 Lt
Employee benefits 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 1.200 Lt
Payroll taxes 0 Lt
Rent 5.000 Lt 5.000 Lt
Utilities 3.000 Lt 3.000 Lt
Repairs and maintenance 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 100 Lt 600 Lt
Insurance 1.214 Lt 1.214 Lt
Travel 500 Lt 500 Lt
Telephone 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 50 Lt 490 Lt
Postage 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 120 Lt
Office supplies 200 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 10 Lt 320 Lt
Advertising 300 Lt 300 Lt 300 Lt 300 Lt 300 Lt 300 Lt 1.800 Lt
Marketing/promotion
15000 lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 40 Lt 240 Lt
Professional fees 0 Lt
Training and development 3.000 Lt 300 Lt 400 Lt 3.700 Lt
Bank charges 300 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 30 Lt 660 Lt
Miscellaneous 0 Lt
Owner's drawings 0 Lt
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Loan repayments 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 1.000 Lt 12.000 Lt
Tax payments 0 Lt
Capital purchases 0 Lt
Other 0 Lt
Total Payments 24.714 Lt
4.440 Lt
3.730 Lt
4.140 Lt
3.780 Lt
4.140 Lt
3.780 Lt
4.090 Lt
4.180 Lt
4.090 Lt
3.780 Lt
4.090 Lt 4.290 Lt 61.244
LtCashflow
Surplus/Deficit (-)12.286
Lt 160 Lt 970 Lt 560 Lt 920 Lt 860 Lt 920 Lt 610 Lt 1.020 Lt
2.110 Lt
1.920 Lt
1.110 Lt 2.910 Lt 41.356
LtOpening Cash
Balance 0 Lt 27.286 Lt
27.446 Lt
28.416 Lt
28.976 Lt
29.896 Lt
30.756 Lt
31.676 Lt
32.286 Lt
33.306 Lt
35.416 Lt
37.336 Lt
38.446 Lt
Closing Cash Balance
27.286 Lt
27.446 Lt
28.416 Lt
28.976 Lt
29.896 Lt
30.756 Lt
31.676 Lt
32.286 Lt
33.306 Lt
35.416 Lt
37.336 Lt
38.446 Lt
41.356 Lt
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Balance Sheet:E-World
Balance Sheet[December 30, 2010]
AssetsCurrent Assets:
Cash 41356
Accounts Receivable 2400
Less: Reserve for Bad Debts 0 2400
Merchandise Inventory 614
Prepaid Expenses 12714
Notes Receivable 0
Total Current Assets 57.084
Fixed Assets:
Vehicles 0
Less: Accumulated Depreciation 0 0
Furniture and Fixtures 3500
Less: Accumulated Depreciation 0 3500
Equipment 15000
Less: Accumulated Depreciation 0 15000
Buildings 0
Less: Accumulated Depreciation 0 0
Land 0
Total Fixed Assets 18.500
Other Assets:
Goodwill 0
Total Other Assets 0
Total Assets 75.584 Lt
Liabilities and CapitalCurrent Liabilities:
Accounts Payable 0
Sales Taxes Payable 0
Payroll Taxes Payable 0
Accrued Wages Payable 0
Unearned Revenues 0
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Short-Term Notes Payable 0
Short-Term Bank Loan Payable 0
Total Current Liabilities $0
Long-Term Liabilities:
Long-Term Notes Payable 40.000
Mortgage Payable 0
Total Long-Term Liabilities 40.000
Total Liabilities 40.000
Capital:
Owner's Equity 20.000
Net Profit 15.584
Total Capital 35.584
Total Liabilities and Capital 75.584 Lt
Possible funding options:E-World Company’s funding will consist of owner’s investment 40,000.00lt and bank loan in amount of 40,000lt. Owner’s investment will come from savings account. Bank loan will be taken with interest of 7-9%.
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References:
"The Industry Handbook: The Internet Industry." Investopedia.com - Your Source For Investing
Education. N.p., n.d. Web. 30 Oct. 2010.
<http://www.investopedia.com/features/industryhandbook/internet.asp>.
Informacinės Visuomenės Plėtros Komitetas - Statistika. (n.d.). Informacinės Visuomenės
Plėtros Komitetas – Pradžia. Retrieved November 1, 2010, from
http://www.ivpk.lt/main-stat.php?cat=62&n=21
Kiran, C. (n.d.). Web Development. Articler. Retrieved October 30, 2010, from
www.articler.com/23205/The-Web-Development-Industry-Is-Expected-To-Grow-Over-
20-By-2010.html
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