Vista Total Market Equity is our company’s flagship investment product. This strategy will initially be offered via a mutual fund registered by the U.S. Securities Exchange Commission. Technological advances also allow for economically viable distribution channels such as separate managed portfolios for large accounts. This plan also contains details about our investment products. It’s worth mentioning that we are excited about a piece of research that will be published by the Journal of Portfolio Management. It supports our primary product offering. Ennis Knupp, an elite institution investment consulting firm published a study entitled, ‘Failure Of The Multiple-Specialist Strategy. Case for Whole Stock portfolios.’
VISTA INVESTORS will be structured as a partnership designed to capitalize on industry research performed by one of the founding entrepreneurs, Michael Douglas, during his professional career in investment management research. Douglas has conducted over 30 research visits at investment offices during the past year. Douglas met hundreds of key investment professionals, either via phone or face-toface, with people all over the world. Douglas’s team presents his business plan as an outline of how a successful investment manager organization should look in the face of changing industry influences.
VISTAINVESTORS will offer high net-worth or angel#8221 investors the opportunity to purchase minority ownership in return for contributions towards VISTAINVESTORS’′ operating capital and to provide seed assets to support the investment products described. This document by itself does not constitute an offer or guarantee of any kind. There are many risks associated with VISTA INVESTORS’’s business plan, beyond those listed in this document.
1.1 Objectives
The purpose of VISTA INVESTORS is to create value for owners, employees, and investors via the establishment of an investment management organization designed for the Third Generation. Merrill Lynch & Co., Inc., Barra Strategic Consulting Group define the Third Generation as a phase within the investment industry that requires a specific set of abilities for success. This study, many other studies and, perhaps most importantly, our industry experience have been used by our team to create a plan for the success VISTA INVESTORS.
1.2 Mission
All portfolios can be executed quickly and efficiently with buy and sell decisions. Trading rotations are used, where applicable, to avoid any type or systematic advantage/disavantage that accounts might experience. We would not allow any circumstances to force us to stray from our discipline.
1.3 Keys to Success
Performance is the most critical factor in investment management. Morningstar is a widely-respected organization for its accreditation in mutual funds. This is why one of our main goals is to achieve a rating. Morningstar will only rate funds with a minimum three-year performance history.
The Center for Technology and Investment (CTI) is a company devoted to bringing investment in technology within reach of rural small business owners. This company was founded on the belief that rural small businesses are in dire need of technology consulting and experience. However, they don’t have the resources to hire large multinational companies to do the job.
Through innovative funding sources, including grants and charitable contributions made by the owner’s company and by individuals who are interested in helping rural Oregon develop economically, CTI will become an innovative new force in rural Oregon.
CTI’’s management team is comprised of Bill Franklin. Over 35 years of technology development in Silicon Valley, Mr. Franklin was also one of the first Electrical Engineers at the Stanford Research Institute (SRI). Mr. Franklin is a leading expert in the general field of technological advancement, and has owned several businesses during his lifetime, including two that he sold for a profit.
CTI’s services are available in all areas of Oregon. If the company expands, they will likely expand into the rural West. Over 45,000 small, rural, mom-and-pop businesses are located in the Western United States. Many of them have very limited or no experience with high tech and don’t know how to find alternative funding sources.
The purpose of this investment business plan is to help formalize the business strategy, as well as to provide evidence that CTI is a worthy investment for a $10,000 open line of credit from X bank. This open credit is to provide cash flow management and a $10,000 loan to start with CTI.
1.1 Objectives
By the end of Year 1, approximately 500 clients will be served by the Center for Technology and Investment. At least 50% of these clients will have purchased products or services from the Center for Technology and Investment by Month 4.
Here are some financial goals.
Within the first year achieve a 25% contribution margin on books, software, academic materials, and other products.
Keep service revenue costs below 20%
From Month 1 to Month 12, net revenue increased 350%
30 % net revenue margin in year 1, 35% in year 2.
1.2 Mission
The Center for Technology and Investment (a non-profit organization) was founded to assist rural small businesses in using technology more efficiently. The company’s charter is based on evidence that many rural small business owners simply don’t have the resources or connections to use technology wisely. Our goal is to help small business owners bridge this gap by providing training and education on how to best use technology to make the most of their resources and maximize the potential for their businesses.
When all of its clients reach growth rates exceeding 20%, the organization will have fulfilled their mission.
1.3 Keys for Success
Here are some key points to success.
Focus on your target market. Go deeper into the demographics.
Intricate planning and execution. Quarterly seminars need to be thoroughly researched, with accurate costs understood and fresh content maintained.
Retainer consultation must be at a low price to rural business owners. It must also represent a small percentage of any SBA grants or other funding that the business owner gets. CTI must continue to be a consultant, not as a broker in SBA or other funding.
Financials need to be maintained at the top, due to the nonprofit status of an industry that is largely for-profit.
Staryoo.com will be a revolutionary platform that provides a Web-based trading system for Chinese securities investors and institutions. Staryoo.com is going to revolutionize the way that millions of Chinese investors invest in China. Particular to Staryoo.com will be investment features that have recently not been available to the investor in China, including, real-time stock price quotes, technical and fundamental analysis, expert commentary on market action and recommendations, investment forums and chat rooms, online bank transfers, remote pager notification, and educational material including books and tapes. The platform’s intelligent interface can be customized to fit your level of investment experience and profile.
With both the development of the Chinese national super highway project and China’s imminent membership into the World Trade Organization (WTO), Internet use and Internet investing will grow very rapidly. A report by China Internet Information Center shows that China had 4.5 million Internet users as of June 1999. This is twice the 1998 estimate, and it is expected to rise to 20 millions by 2000. 40 million of the 45 million Chinese investors are individual investors. It is anticipated that as foreign equities markets (in particular the U.S. markets) are made available to the individual investor, their trading volume will increase enormously. Mr. Pen Reng, Vice President for Shanghai Securities Co., LTD., the second largest brokerage in China, it is estimated that the number of individual investors in China will increase to 250 million by 2005. Staryoo.com anticipated this trend, and will be the first company to offer international trading support.
In recent years, the U.S. equity market has seen a dramatic increase in trading volume. The combination of historic market heights and the increase in NASDAQ issuers has contributed to the significant rise in daily trading volume. At the same time, technology has advanced to the point where more investors are trading online. This has led to an entirely new set of self-reliant value-oriented investors who are more comfortable with electronic commerce. We expect these same trends to continue in China, and we will be well placed to profit from the large market opportunity for cheaper, faster, more reliable and less costly trading systems.
Staryoo.com has a Sunnyvale, CA, office and is based out of Shanghai, China. Starmile Systems Engineering Co. LTD. (Starmile), has provided technical support and initial seed capital. It is located in Shuzhou. China. Staryoo.com was established in the United States to serve two purposes. First, it will facilitate the transfer from the Chinese equities marketplace to one which allows access to U.S. equity markets. Second, Staryoo.com must be able to rapidly and efficiently go public in the U.S. to market and develop this trading platform. For the purposes of the following objectives, additional funding may be required in the fourth quarter (Q4).
1.1 Objectives
Alpha and Beta testing of Web platform, January 15, Year 1, and May 15, Years 1, respectively with strategic partners from China
For the initial deployment of trading platform, complete negotiations with two major brokerage firms by June 1, Year 1.
Receive your first round funding by June of Year 1.
Staryoo.com available for individual investors beginning June 1, Year 1 (without online trading).
Staryoo.com available for online trading beginning September 15, Year 1.
Staryoo.com has U.S. Equities Markets available in China in Q2 Year 2*.
At year’s end, generate revenues of $300,000.
Register 18,000 members, 14 brokerages and more by Q4 Year 1.
Staryoo.com is now available as a trading site in the U.S. during Q3 Year 3.
Staryoo.com U.S. private company by Q4-Year 3.
* * Q4-year WTO membership anticipated by 8211
1.2 Mission
Staryoo.com is committed to providing investors with the most complete Web-based trading platform. We will continue to improve this trading platform through listening to our customers and adapting our product range to meet their needs. Staryoo.com is dedicated to providing exceptional customer service that will earn investor trust and confidence.
As we strive for first class image, quality, service and fair profit, both investors and employees will see first-class results. Staryoo.com understands that employees are our most valuable resource. Staryoo.com will reward and nurture its employees as the company reaches milestones and develops technologies.
1.3 Keys to Success
To succeed in this business we must:
Staryoo.com’s Web-based trading platform is unique among all others. It offers investors more functionality and features that are required for advanced Internet trading.
Staryoo.com ensures 100% customer satisfaction. Staryoo.com offers order transmission and customer support to ensure consistent and repeat usage.
Leverage Starmile’s technical expertise and client base to ensure that a wide range of customers are informed about Staryoo.com’s equities trading platform and the advantages of using this platform.
1.4 Strategic Advantage
Staryoo.com will have a competitive advantage over competing Web-based trading platform providers due to the following strategic reasons:
Starmile is an expert in technology fields such as bank information processing and account inquires.
Starmile has developed a payment-cryptography system that is ISO9002 and National Cryptography Administration Committee certified.
Starmile has developed an internet-based, non-Web-based trading platform for China JiangQian Tide. This system includes most of the functionality being proposed for the Staryoo.com trading platform, including: transactions and trading of Shanghai A shares, statement of account transactions/balance, Windows NT based, online retrieval of market reviews and exchange information, downloading of historical data, input of stock symbol and lookup, network security/firewall implementation, and built-in analysis systems.
The Board of Directors and management team are diverse and highly experienced. A variety of backgrounds, including those in the technology, banking, or securities industries.
Starmile relationships with American companies are a better way to penetrate China’s market. American companies won’t have the same difficulties as Chinese companies because they will be culturally sensitive.
This is a sample plan for an hypothetical investment company that invests in other companies. The hypothetical Venture Capital company starts with $20 million to start its initial investment fund. It invests $5,000,000 in each of its four initial companies within the first month of its existence. It receives a monthly management fee of two per cent (2%) of the fund’s value. It pays salaries and expenses to its partners and employees from the management fees.
The cash flow table lists investments as long-term investments. They are also included in the balance sheet as long term assets. These investments are visible in this sample plan for the first few months.
One of the target companies fails the third time, and $5 million is written off. You’ll see that the result is a $5m sale of long term assets in the cashflow and a balancing in of $5m in sales costs in the profit and losses. It results in a loss that year and a write-off. This results in a tax deduction and the investment balance is increased to $15 millions.
One of these target companies will transact $50 million for the fifth consecutive year. As you can see, there is a $45m equity appreciation in sales forecasts and a $5m sale of long-term assets. There’s now a $45million profit. Meanwhile, the balance of long term assets drops to $10million.
This is a simplified example. The business model holds long-term assets and waits for them to appreciate. It doesn’t track the value of assets and doesn’t record write-downs of assets after they are sold. Sales and cost-of-sales are the appreciation of assets and their write down, as well the management fees.
This explanation has been broken into key topics and copied to be linked to the tables. These are:
