How do you propose to structure the management team for your venture?
Vice President
Director
Manager
Coordinator
Staff
The Director is the one highest that is directly involved in the daily decisions of the team. The coordinator manages the nitty gritty with the staff and gives updates to the manager. The manager then summarizes the info and presents them to the director who pivots accordingly.
Discuss the priorities of your top executives in the first 90 days and in the first year.
The priorities of my venture, for the first 90 days, all include doing the ground work so after 90 days the product is ready to launch and test. This includes putting together an extensive story map so the algorithm created can properly suggest content sequential to the part of the story the consumer is participating in, actually coding the algorithm, and testing on the comics to then expand to all of the content within the app after 90 days.
Identify your sources of funding.
Our team will operate as a separate branch of DC Universe but still under the greater WB Digital Networks umbrella. That being the case, our funding will come from both the investment into DC Universe from WB Digital Networks, as well as from the revenue that DC Universe is already producing.
Explain how your venture will make money. Does your venture have multiple revenue streams? What are they?
Similar to the value proposition that Netflix gives its algorithm, the actual code and algorithm created by my team with increase the value of DC Universe. This will increase monthly subscribers which will in crease revenue. This will also create more traffic for online shopping and brand recognition which gets revenue through merchandise sales and licensing fees. If successful, we could also sell this algorithm to competitors such as Marvel and Amazon.
What is the expected pricing, and how many sales are needed each month to cover expenses?
The pricing for the DC Universe app is $8 a month. That will not increase with the addition of the algorithm. The cost will be paid by WB Digital Networks and would cost them about $300,000 a year. The sales needed to cover the expense would be after 90 days we would need to keep an increase of 10% new subscribers for a minimum of 2 years and above 1.5% (industry average) thereafter.
What is the profit forecast, when is the break-even point, and how will you ensure cash flow to continue monthly operations prior to achieving profitability?
The breakeven point for our team would be at the 15 month mark if we regularly hit the 10% new monthly subscribers each month. This is a lofty goal, but based on industry experience, if done correctly it is possible and even likely. An algorithm such as this only gets better over time. Netflix, as of July, has 130 million monthly subscribers. With that large of a sample size they can make significant decisions that will nearly always be profitable. As we go we will test and retest. As we gain more subscribers the value proposition for this product gets higher and higher. At 15 months we break even but the line goes on a steep incline after that.
Summarize the venture’s fixed and variable expenses.
Fixed costs include salary for the team as well as office expenses. Variable costs include technical issues and unforeseen costs when creating a new team.