eK-12 Business Plan Presentation
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eK-12 Final Business Plan presentation. This is a proprietary business idea to incorporate digital tablets into the classroom.
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eK-12 Business Plan Presentation
- 1. eK-12Results Learning Andy Amanda Peter Robert Ryan Sorenson Klein Meyers Schmaltz Jaeger
- 2. AGENDA The Problem & Opportunity Timeline Competition Management & Ops Assumptions Financial Overview Strategic Partnerships Marketing & Sales eK-12 Results Learning
- 3. THE PROBLEM & OPPORTUNITY
- 4. The Spend and Results eK-12 Results Learning
- 5. Standardized Testing *Math *Reading *Science Proficient Proficient 26% 21% Non- Non- Proficient Proficient Proficient 48% Non- 74% 52% Proficient 79% Also, the US has fallen to 30th place in reading and math *Source: Harvard Business Review eK-12 Results Learning
- 6. What If? Modernize curriculum delivery Assess through technology Metrically-based continuous improvement eK-12 Results Learning
- 7. eK-12 Results Learning To develop an interactive software curriculum delivery, assessment, and data system for: Kindergarten through 12 grade Private, public and charter schools eK-12 Results Learning
- 8. Business Results Educational transformation through: Continuous curriculum and classroom improvements Individual learning plans No limits learning Organic data reporting resource Curriculum partnership eK-12 Results Learning
- 9. Business Methodology Delivery Assessments D Data D A eK-12 Results Learning
- 10. Delivered through Momentum Today Tomorrow Yesterday Momentum
- 11. Momentum
- 12. Delivery System eK-12 Results Learning
- 13. Achievement Unlocked A -500 points B - 450 points C - 400 points D – 350 points F – 300 points eK-12 Results Learning
- 14. iPad 7:11 PM Momentum Calendar Mail Safari
- 15. iPad 7:11 PM Momentum Calendar Mail Safari Momentum Login Thanks for returning Andy! Cancel OK
- 16. iPad 7:11 PM Home Home Classes Andrew Sorenson – 6th Grade 6001-8 Homeroom Andrew Sorenson 6040-1 Science My Account Sign Out 6010-2 Language Arts M 12,085 6050-4 Health Recent Activities 6025-3 Math 6065-2 Industrial Tech Mathematics M 430/1000 Course 2 24/50 6040-1 Social Studies Last Played 9/10/2012 48% complete 6101-8 French View Activity Language Arts M 620/800 Reader 31/40 Last Played 9/9/2012 78% complete View Activity Amanda Klein Peter Meyers Robert Schmaltz M 18,150 M 13,830 M 8,990 Share 2 classes Share French Share 3 classes
- 17. iPad 7:11 PM Home Home Classes Andrew Sorenson – 6th Grade 6001-8 Homeroom Unit 2 6040-1 Science 6010-2 Language Arts Geometry Review 6050-4 Health Story Problems – Fixed Costs vs Variable Costs 6025-3 Math Converting Units 6065-2 Industrial Tech 6040-1 Social Studies 6101-8 French Read Text Watch Video Examples Do Problems
- 18. iPad 7:11 PM Home Home 6025-3 Math Andrew Sorenson – 6th Grade Unit 2 Read Text Return Geometry Review Story Problems In basketball practice, Kathlene made 17 Converting Units baskets in 25 attempts. She compared the number of baskets she made by using the ratio 17/25. A ratio is a comparison of two quantities by division. Word Properties Kathlene can write her ratio of baskets made Examples Definition Find to attempts in three different ways: ra-tio [rey-shoh, -shee-oh] noun, plural ra-tios 17/25 relation between twothe number to 25 1. the magnitudes with respect to similar 17 17:25 of times the first contains the second Sometimes a ratio can be simplified. To simplify a ratio, first 2. proportional relation; rate: the ratio write it in a fraction and rejections then simply the fraction. To between acceptances form and compare ratios, write them as fractions with common denominators, then compare the numerators. Aa Page 214 of 550
- 19. iPad 7:11 PM Home Home 6025-3 Math Andrew Sorenson – 6th Grade Unit 2 Watch Videos Return Geometry Review Story Problems Converting Units
- 20. iPad 7:11 PM Home Home 6025-3 Math Andrew Sorenson – 6th Grade Unit 2 Examples Return Geometry Review Story Problems Converting Units Example 1.1 Tell me about this
- 21. iPad 7:11 PM Home Home Classes Andrew Sorenson – 6th Grade 6001-8 Homeroom Andrew Sorenson 6040-1 Science My Account Sign Out 6010-2 Language Arts M 12,085 6050-4 Health Recent Activities 6025-3 Math 6065-2 Industrial Tech Mathematics M 430/1000 Course 2 24/50 6040-1 Social Studies Last Played 11/1/2012 48% complete 6101-8 French View Activity Language Arts M 620/800 Reader 31/40 Last Played 9/9/2012 78% complete View Activity Peter Meyers Robert Schmaltz Ryan Jaeger M 13,830 M 8,990 M 12,150 Share French Share 3 classes Share 2 classes
- 22. iPad 7:11 PM Home Home Classes Andrew Sorenson – 6th Grade 6001-8 Homeroom Andrew Sorenson 6040-1 Science Compare Activity My Account Sign Out 6010-2 Language Arts Ryan Jaeger M 12,085 6050-4 Health Ryan J Andy S 6025-3 Math 6065-2 Industrial Tech Mathematics M 650/1000 M 430/1000 Course 2 32/50 24/50 6040-1 Social Studies 65% complete 48% complete 6101-8 French Compare Achievements Language M 560/800 M 620/800 Arts Reader 28/40 31/40 70% complete 78% complete Compare Achievements Peter Meyers Robert Schmaltz Ryan Jaeger M 13,830 M 8,990 M 12,150 Share French Share 3 classes Share 2 classes
- 26. MOMENTUM Program Start Email Email Single ID Sign Calendar On Assessment Calendar Entry Screen (Momentum Assessment) Social Social Reporting Reports Assessment Read Video Read Momentum Video Examples Database Assessment Assessment Tool Examples Assessment
- 28. The Market *132,183 Elementary/Secondary Government funded Schools in the US Hundreds of Curriculum Education, the future of Constant Providers tomorrow Change *National Center for Education Statistics eK-12 Results Learning
- 29. The Market Characteristics: Ages 23-55 Value education School Board Administrators Responsible Social Not desk bound Teachers Media Specialists Busy Seekers of new methods eK-12 Results Learning
- 30. Momentum Stakeholders An individualized learning platform Students Single login for all systems Parents Assessment methodology Educators Data offerings that measure curriculum effectiveness Content Providers eK-12 Results Learning
- 31. Points of Differentiation Customization Accessibility Technology & eK-12 Results Learning Solution to Data Bridge the Gap Supported Curriculums eK-12 Results Learning
- 32. Marketing Activities Offline Activities Online Activities Shows Web site FETC, January 28-31, 2013 Social media TCEA, February 4-8, 2013 Whitepapers ISTE, June 23-26, 2013 Webinars MEMO Fall Conference, October 2013 Email campaigns TIES Education Technology Conference, December 9-11, 2013 Memberships MEMO (Minnesota Education Media Organization) eK-12 Results Learning
- 33. Sales Relationship based Sales cycle 5 business owners will sell New classroom products are considered at any point in the year. Especially when the outcome… Benefits Students | Improves Test Scores | Easy to Use | Efficiencies eK-12 Results Learning
- 34. Targeted School Systems eK-12 Results Learning
- 35. COMPETITION
- 36. Competitors eK-12 Results Learning
- 38. Strategic Partnerships Our strategic partnership will operate in such a way that each party will mutually benefit in the relationship. eK-12 Results Learning Selective Hardware Suppliers 5% distributor discount/neutral cost Microsoft Bizspark Education Curriculum Providers
- 39. eK-12 TIMELINE
- 40. eK-12 Timeline Year 1 Year 2 Year 3 Year 4 Year 5 development Analyze current year of profit Leverage data 12+ Software “Momentum” Firstpilot program and make schools active with Momentum Start Pilot Program changes focused towardsexpand level of awareness due to necessary Money Original sunkHigh to Eden costs have been absorbed Expand to Minnetonka 3+ Breck added to the revenue streams mouth Prairie, Eagan & schools marketing, sales and word of and Edina Increase production capacity Operational efficiencies = lower operating costs 1 2 3 4 5 eK-12 Results Learning
- 41. MANAGEMENT
- 42. Business Structure Peter Meyers, President Andy Sorenson, VP Operations eK-12 Results Learning Amanda Klein, VP Sales & Marketing Ryan Jaeger, VP Finance Robert Schmaltz, VP Technology eK-12 Results Learning
- 43. Operations eK-12 36th West Main Street, Waconia, MN eK-12 Results Learning
- 44. Gate 1 Gate 2 Project Initiation • Customer needs Concept Definition identified and formation Gate 3 of project plan • Product specification • Team assembled (including customer identified through team Product Design Gate 4 brainstorming sessions representation) • Key dates & deliverables • Programming phase laid out and finalize (Initial build/bug Pre-Production /Pilot Gate 5 project timeline investigation) Run • Test plan identification and development Product Launch Gate 6 • Test plan completed • Dry run data migration • Customized and on-site pilot run Momentum Project platform loaded on hardware and Audit delivered to • Review of customer lessons learned • Physical on-site for future installation/training/ projects implementation • Project period financial review and audit Stage Gate Process eK-12 Results Learning
- 45. ASSUMPTIONS
- 46. Assumptions 1. One school class = 750 students 2. Year/Schools: Yr. 1/1, Yr. 2/+2, Yr. 3/+3, Yr. 4/+3, Yr. 5/+3 3. Price of Momentum per student is $15. This price will increase 10% in year two and 25% in year three 4. 5% mark up on hardware bought through eK-12 5. $7/Month for device training and repair 6. Multiple revenue streams (hardware and service) eK-12 Results Learning
- 48. Financials Years one & two are development years (loss) Year three (profit) Year four have 6-9 months of liquidity Two major upgrades 2013 ($294,578) 2015 ($230,020) eK-12 Results Learning
- 49. Financials-Ratios Ratio Calculation Gross Margin 42-46% Net Profit 25-27% Margin eK-12 Results Learning
- 50. Startup Funding-Overview Business Startup Costs Business Startup Year 2013 Facility Improvements $ 31,710 Equipment $ 160,140 Computers $ 53,500 Marketing $ 26,028 Services $ 17,000 Phones $ 1,200 Miscellaneous $ 5,000 Total Startup Costs $ 294,578 eK-12 Results Learning
- 51. Startup Funding-Overview eK-12 Results Learning
- 52. Startup Funding-Overview Year 2013 2014 2015 2016 2017 Sales $111,600 $1,114,875 $3,274,331 $5,251,406 $6,716,250 Gross Profit $78,000 $440,625 $1,379,606 $2,449,481 $3,121,875 Expenses $580,996 $619,295 $1,015,913 $1,055,336 $1,279,097 People $349,956 $362,204 $642,000 $697,835 $900,891 Net Profit ($502,996) ($178,670) $272,770 $1,045,609 $1,382,084 eK-12 Results Learning
- 53. Financials-Risk Mitigation (Monthly) Year 2013 2014 2015 2016 2017 Monthly Operating $43,013.08 $43,686.92 $73,629.83 $79,368.58 $99,271.58 Expense Monthly Loan $4,775.25 $13,441.58 $13,441.58 $13,441.58 $4,775.25 Payments Total Monthly $47,788.33 $57,128.50 $87,071.42 $92,810.17 $104,046.83 Operating Expense Year End Cash $42,124 $721,773 $2,724,585 $6,904,108 $12,492,859 Balance Months of Liquidity .88 12.63 31.29 74.39 120.07 eK-12 Results Learning
- 54. Financials What's in it for you? Low risk 15% payback annually $61,987.76 Total Payout 25% ROI eK-12 Results Learning
Editor's Notes
- We are eK-12 and we are a software company. The purpose of today’s presentation is to present an opportunity to invest in our business. We are seeking $250,000 in private investment. For this investment, eK-12 anticipates a 15% payback in our 2nd, 3rd and 4th year of operation. This represents 1/3 of our investment needs. The five eK-12 members believe in the business so much that they will be contributing $250,000 in start up funding and we will be pursuing a $250,000 Small Business Loan. Let’s start with a landscape of our next 30 minutes.15% payback annually$37,500 annual dividend$112,500 total dividend over three years
- Here’s a roadmap to what we will be discussing today.We will begin with the opportunity, (revise as needed)Product – MomentumService and hardware supportBusiness StructureLeadership/ManagementOperationsBusiness Operations, product launch, supply, distributionStartup FundingFinancesExpected ROIMarketing, Markets, Promotion & SalesThought Leadership, Flexibility of Offerings, technology and data supported curriculumStrategic PartnershipWho wins?
- Let’s discuss the problem, solution and overall opportunity
- Here’s the problem – There has been a 375% increase in education spend with flat results for the past 30 years. While spending has increased, the results have not changed. For example, since 1980, we have increased our educational program spend from $7 billion to $77 billion with very little to show for it.
- Here’s another way to look at the problem:Standardized testing has long been the way of measuring educational attainment. In March 2012, Harvard Business Review (HBR) cited that in nationwide National Education Advanced Placement (NEAP) tests taken in 2009 that 74% scored below “proficient” in math, 62% in reading, and 79% in science (Childress, 2012). That despite focusing lessons plans specifically how to improve these testing results, we have still failed to reach a proficient level.This begs the question of whether there is a better way
- The gap in results made this group examine – how we learn, how we measure it and how we improve it over time. We asked ourselves what if we could modern how curriculum is being delivered, how to track, assess and report on it using today’s technology and provide a data resource to allow for continuous improvement through metrically proven results? To be a company that owns the data and understansd how we best learn to achieve desired results?This is our business
- Stated another way – (state what’s on slide)
- Delivery, assessment and data software systemEk-12’s DAD method
- This would allow us to move from books and non-integrated technology to a streamlined technology focused enhanced educational experience
- When we set out to design momentum, we looked at the needs that were unmet or underservedWe found that while there were a number of technology driven education programs but they relied on companies like smartboard that either relied on proprietary hardware platforms or missed out on connecting the various needs of each stakeholderWe wanted something that would could deliver content like Apple or Amazon – go further and assess the learner’s understanding of content, and then save data that could be used to determine the effectiveness of the learning process in real timeThis is why we designed “Momentum.” It’s a digital delivery, assessment, and data acquisition software product
- Starting with platforms, we designed something that would be accessible anywhere, ran on all sorts of devices, and could operate without constraints from legacy systems
- Assessments are an important part of identifying whether a learner truly understands a subject How we do that can greatly affect the outcomeWilliam Wraga – professor in the program in educational administration and policy at the College of Education, University of George stated that research shows that “high stakes testing” like that in No Child Left Behind can actually be counterproductive If we acknowledge that the goal of education is to actually learn, we realized we had to make some changes on the way tests are doneUnlike traditional tests, a fully digital environment allows us to dynamically change the difficulty in real timeWe designed a system that utilizes achievements. Essentially it works like grades but allows students to keep trying until they can demonstrate competencyGrades are then given based on the number of achievements they’ve earned
- We’ve done a lot of talking about momentum but it’s always easier to show peopleThis is a typical launch screen on an iPadIt’s platform independent but for the purposes of this explanation we’re showing off the iPad concept
- Click the Momentum app launches Everything done through a single-sign on using Microsoft technology
- - borrowing from other successful industries, we’ve made Momentum a fun tool where learners can access their classes, see their friends, and see their progress through classes
- Momentum recognizes that there are several different mediums for learning, so when a student selects their subject and unit, they can read the digital textbook, watch a video which is assigned by the content provider or the instructor, follow some examples, or do some problems (in this case it’s math)
- The digital textbook isn’t all that different from other successful formats like Apple’s textbooks or Amazon’s kindle. However, the underpinning are different because we’re recording data thus knowing how long it took to read, where students spent the longest time, what words were most commonly looked up, and other bits of data that might be helpful for researchers
- Instructors or content providers can link videos like those on YouTube as reference making Momentum a media rich environment
- Examples can be demonstrated while a verbal explanation is given
- We’ve also integrated a social aspect to the system
- Learners can compare against their friendsDiscuss achievementsAnd some achievements can be made so as to only be unlock-able using teamworkSince we’re focused on proving competency through achievements, this provides an opportunity for unlocking them in a non-linear order and places no “limits” on someone’s learning. They can go as far as they desire in a subject
- If all we had were digital delivery and shift in doing assessments, I’d say we had a great product. However, there is massive value in the data being collectedInstructors can see in real time how individuals are progressing, how their scores relate to their peers, and areas where learners are struggling
- These slides are just examples of the types of reports researchers and educators might like to seeFor example – how long does it take to complete a unit? How many points were earned by various learners?How accurate were they when they earned their Achievements
- Again, there is a tremendous amount of value in the dataSince Momentum is an end-to-end, fully integrated solution, the data it collects can be used to compare curriculums, improve existing curriculums, and mix and match data on things like demographics, scores, and techniquesUltimately, this data could be monetized by licensing datasets to curriculum providers, schools, and researchers
- Lastly, we did a layout of Momentum so that you could see the flow of the user through the systemEverything ultimately flows in/out the momentum databaseIt truly allows a no-limit, modern educational experience
- 132,183 Elementary/Secondary Schools in the US that could benefit from eK-12 services ( our group had the opportunity to have contextual interviews with teachers, administration learners and media specialist and each one of our interviews stated their school was currently running a pilot program trying to integrate tablets. As of 2009 Gov’t spending was $863 billion (US Government Spending, 2012). Comparing to 10 years prior to this number doubled, which tells us there is a consensus to support valuable educationHundreds of curriculum providers – trying to solve the technology implementation adaption. Large in structure, which makes change slow and challenging. Publishing familiarity vs. software and technologyConstant change in surroundings – Platform needed to support this. With change comes the need of a confident and valued industry resourcesSaw a need – found a solution!
- When you are looking at the sales cycle for Momentum, the need starts in the classroom. Teachers and media specialists are first to identify the need and bring this decision to administrators and school boards. Most decisions are implemented full class-wide or school wide. Curriculums revisited every 5 yearsWhen looking at the personal characteristics of our decision makers, we identified these top characteristics. For marketing strategy things such as their own personal equity and responsibility to the success of their students is important, along with their ambition to seek new methods, and we know teachers are not desk bound.
- So when looking at the stakeholders. We have content providers, Educators, parents and Student. There are many benefits to this systems, for example:Students learn based on a individualize learning platform, where they have the opportunity to learn and excel beyond the typical benchmark of a grading scale.For parents, well all schools systems can be customized to run through Momentum. One login, one go to resource to find the information you need. For educators, is the opportunity to see instant feedback and results of taught lessons. Assessments – daily vs. 3 times a year for standardized testing. The data gathered not only helps educators, but this data provides direct feedback to content providers as well.Our marketing efforts target points of emphasis when interacting with different stakeholders.
- DAD – Is eK-12’s methodology. But the true solution that sets us apart from our competitors in the market, is our ability to deliver curriculum directly into the hands of our individual learners. No other curriculum provider has figured this out yet. Ek-12 is able to leverage the 100’s of years of experience curriculum providers have contributed and maximize this experience by delivering it in a way that our children prefer to learn today.Because of technology advancements eK-12 is able to reap the benefits of the power of data. Data that only grows more valuable over time because of the ongoing increasing amount of information we are analyzing about the learning experience. Based on the school, classroom and the need of the learners, eK-12 is able to customize this platform. With minimal effort, this system will be gathering data through the assessments, that will allow teachers and learners target areas where improvement is needed, such as math, reading, and science – where are test scores have been flatlined for over 40 years.Lastly – through a thorough interview process with teachers, administrators, students, and media specialists it was clear there is a gap in the tradition way of learning and the current effort of integrating tablets into the classroom. Momentum closes that gap.
- Ek-12 has a blend of offline and online marketing activities. You can see some familiar activities within online to continual be infront of our customer over the year. Because we know our target audience values education and resources, eK-12 will utilize the data their advisory board of educators to write white papers about topics interesting to teachers, media specialists, and administrators. Because time if valuable for teachers, eK-12 will also host short tutorials or webinars on trends and topics to fulfill the need of inquisitive teachers who are looking for new methods in the classroom. We know that teachers are not at the desk. We have identified where specific face to face Education and Technology focused Tradeshows and Events. We have to be aggressive plan to reach thousands of people in a years time. Our theory is boots on the ground to overcome the complexity of intimidating technology. We believe by getting front of our customers through these activities allow us to show them how easy Momentum is to learn and implement into the classroom setting. Also this allows us to channel our conversation around their needs and hopefully speed up the long sales cycle.FETC is the content-rich conference that brings education leaders and technology experts together to exchange techniques and strategies for teaching and learning success.TCEA is a member-based organization devoted to the use of technology in education. Our primary focus is on integrating technology into the PreK-12 environment and providing our members with state-of-the-art information through conferences, workshops, newsletters, the Internet, and collaborations with higher education and business.The International Society for Technology in Education (ISTE®) is the premier membership association for educators and education leaders engaged in improving learning and teaching by advancing the effective use of technology in PK–12 and teacher education.MEMO - MN EducationMedia OrganizationTIES Education Technology Conference – Transforming with technology – MN Based Association w/event
- New Products are considered when it benefits students, improves test scores, is easy to use, efficiencies. All things we believe Momentum can do. Sales approach – much like the learning approach will be hands on. All five business owners will sell. We will work to gain the trust of our clients from the beginning. The great thing about sales and our product, is our ability to customize based on the need of the customer(Not an out of the box solution). Also – the data will sell it self, especially over time. Lastly with no other comparable product, our system can be migrate and become a part of their over systems.
- Ek-12 performed and territory marketing analysis for their school selection to integrate into over the next five years. The 12 schools in the following cities based were considered based on a number of factors including psychographics, demographics, and sociographics along with current relationships within schools. The final filter of this analysis was the schools who have already made technical advancements in the classroom and have expressed interest through financial contribution to this ongoing need. Schools Selected include:Wayzata, Minnetonka, Edina, Eden , Prairies, Woodbury, Eagan, Breck, Blake, The International School of Minnesota, Maranatha Academy, Providence, Bloomington, Waconia, St. Paul AcademyFrom our research, we believe many decision start through referral and networking groups. It is our hope that through the current relationship with Wayzata school district and additional schools in years two and three our sales will be a multiplied effort. Aggressive approach to inform and expand our reach through MN, then 5 state radius and nationally after the first five years. We believe with no comparable product in the market, we stand out amongst our competitors
- When looking at the competitors they have one thing in common, the founded their learning product through publishing textbooks, and other paper and ink type materials. eK-12 starts with the foundations of technology and knows how to build learning for the 21st century from the start. Otherwise, there is no one in the current space where ek-12 wants to play.
- Hardware suppliers (Apple Microsoft) - Negotiate a 5% distributor discount. Cost neutral position for customer. We don't care if we get this business. We'll offer it as a cost neutral positiont to make it easier for our customers to work with us, but not punish those that have already made their own investment.Microsoft Bizpark - Free program for software startups that would allow us to control costs during the development phase of the business.Educational Curriculum Providers - Most important and essential partnership that we will forge. We are effectively also changing the way that they do business. The old model of purchasing a textbook and replacing it every three years goes away if we are successful. We will ensure them a steady residual revenue stream in order for them to constantly keep their offering up to date and available for us to push out to customers. This is where the real value of Momentum comes in. The data gathered during the initial three years of the business is what will make these partnerships important to form down the road. The curriculum provider will be able to buy data from us, and it will be in their best interest to work with us. Improved scores and results should equate to improved revenues in the future. Our customers are going to be most interested in providing and offering the curriculum that gains results.
- Visual of MilestonesThis too will be a very basic and short section. The only thing to talk about here is that I'll explain the development cycle of Momentum, and why we'll turn a net loss in years one and two. Profit starts in year three, and we can show the projection of years one through five in a very simple slide.acquiring
- All I plan to say here is that we, as a group, happen to have a wide degree of experience among us. We all bring a different background and expertise that makes sense in forming the leadership team in this business. I saw the org chart that you have in the draft presentation, and I don't think you mess with it. I'll just speak about our unique offerings, and a quick breakdown of where we all fit5 membersUnique expertise
- The only two things that I think we need to talk about here are physical location, what it will be used for(Remember to talk about IP), and why we picked where we did(Close proximity to Minneapolis and our targeted customer base, while controlling costs). The other thing is the stage gate process. A very simple overview with the graphic that I added into the paper yesterday. Might be nice to do a quick walk through of each stage with an automated slide that allows me to focus on each stage individually.
- The only two things that I think we need to talk about here are physical location, what it will be used for(Remember to talk about IP), and why we picked where we did(Close proximity to Minneapolis and our targeted customer base, while controlling costs). The other thing is the stage gate process. A very simple overview with the graphic that I added into the paper yesterday. Might be nice to do a quick walk through of each stage with an automated slide that allows me to focus on each stage individually.
- The final part of the revenue stream content licensing. As explained in our paper Ek12 believes making one medium to handle all of the students learning is critical. With this Ek12 has the assumption that a “normal” text book will last three calendar years before being replaced. The average student will have six books (classes) it needs at a given time in school with the average cost of that book $100 dollars. That $100 dollars would normally go to the textbook provider but instead is going to be channeled through Ek12. Ek12 will be taking a fee of 30% on the licensing content to allow it to stay uploaded in Momentum. The cost you will see is $16 dollars a month per user, that number is taking 600 (100*6) / 36 months. Ek12’s 30% equals a $5/profit each month per user. As the servicing of the tablets as stated above this “licensing” fee will also be directly correlated to the number of Momentum units sold monthly.
- Discuss with team here before presentation on what is important.
- Excel Data – Who has this spreadsheet?Key thoughts (RED CIRCLE 2015-2016 Net Profit) Why such a good year? Higher more people and really start to “fine tune” our business.
- Key thoughts (RED CIRCLE 2015-2016 Net Profit) Why such a good year? Higher more people and really start to “fine tune” our business.
- Focus on the Liquidity for 6-9 months here. Year 4 is when it really happens. Explain difference between Debt Payments vs Liquidity overall.
- This is a business we can make money onWe have the technology process, we are different then anything else out there…We have the right system in place