Detailed Business plan_Mobile First Inc.

Mobile First Inc.
A Mobile Monetization Company based on analytics driven solutions
As Presented to
Venture Capitalists
For a Equity Line of Credit
In the amount of $1,500,000
Rachit Jauhari
CEO – Mobile First Inc.
11825, Chase Wellesley Drive,
Richmond, VA- 23233
8049289672
rjauhari.contact@mobilefirst.com

Table of Contents
1 EXECUTIVE SUMMARY......................................................................................................................................4
2 BUSINESS OVERVIEW........................................................................................................................................4
2.1 MISSION STATEMENT...................................................................................................................................4
2.2 DESCRIPTION OF BUSINESS......................................................................................................................4
2.3 TRENDS IN THE INDUSTRY........................................................................................................................5
2.4 GOVERNMENT REGULATIONS..................................................................................................................5
3. MARKET ANALYSIS............................................................................................................................................6
3.1 MARKET RESEARCH AND TRENDS........................................................................................................6
3.2 MARKET SEGMENT.......................................................................................................................................6
ASSUMPTIONS -........................................................................................................................................................7
3.3 PRODUCTS AND SERVICES.........................................................................................................................8
3.4 PRICING MODEL...............................................................................................................................................8
3.5 SWOT ANALYSIS...............................................................................................................................................8
STRENGTHS/OPPORTUNITIES .................................................................................................................................8
WEAKNESSES/ THREATS..........................................................................................................................................9
3.6 ASSUMPTIONS...................................................................................................................................................9
4 THE COMPETITION.............................................................................................................................................9
4.1 COMPETITORS STRENGTHS AND WEAKNESSES........................................................................10
4.2 COMPETITIVE ADVANTAGE...................................................................................................................10
5 SALES AND MARKETING PLAN..................................................................................................................10
5.1 CUSTOMERS.....................................................................................................................................................10
5.2 ADVERTISING AND PROMOTION........................................................................................................10
5.3 DISTRIBUTION MODEL.............................................................................................................................10
6. OPERATING PLAN...........................................................................................................................................11
6.1 BUSINESS LOCATIONS AND REQUIREMENTS/ ADVANTAGES/ LEASE DETAILS......11
Richmond Headquarters -.......................................................................................................................11
NewDelhi Office...........................................................................................................................................11
6.2 TECHNOLOGICAL INFRASTRUCTURE...............................................................................................11
6.3 R&D......................................................................................................................................................................12
7 FINANCIAL ANALYSIS.....................................................................................................................................12
SUMMARY POINTS –............................................................................................................................................12
8 TERM SHEET.......................................................................................................................................................12
9 WORKS CITED.....................................................................................................................................................13

10 OTHER REFERENCES...................................................................................................................................14
11 APPENDIX..........................................................................................................................................................15
11.1 COST ANALYSIS...........................................................................................................................................15
11.2 REQUIRED STARTUP FUNDS..............................................................................................................16
11.3 SOURCES OF FUNDING............................................................................................................................16
11.4 SALARIES AND WAGES...........................................................................................................................17
11.5 FIXED OPERATING EXPENSES..........................................................................................................19
11.6 PROJECTED SALES FORECAST............................................................................................................20
11.7 CASHDISBURSEMENTS..........................................................................................................................22
11.8 PROJECTED INCOME STATEMENT- YEAR ONE.........................................................................23
11.9 CASH FLOW FROM YEAR ONE.............................................................................................................24
11.10 YEAR END SUMMARY...........................................................................................................................25

1 Executive Summary
The world is more connected than ever. You can see a smartphone in almost
every hand in developed economies. Even, the demand of smartphones is increasing
very fast in South East Asia and also other parts of world. "Internet of Things" is in
its early stages as was internet in 1990's, which means the world is moving towards
"smart" devices which will have an RFID attached and can be operated by a
smartphone with the added benefit- they can make their own "smart" decisions. All
these trends suggest that a lot is going to happen in the mobile industry and
gradually we will be using them more than ever, even for our daily activities.
Most of the businesses today have their websites and they face one issue- they may
have their websites also for mobiles but those are not well suited for mobile and
other digital environment. Websites in mobiles are not properly visible and hard to
use. Even if the ads come on them, they are not properly visible and accessible. And
if the ads are visible properly, they are not well targeted. They appear on the
screens on the customers who actually don’t want them. And in the whole process,
companies miss their target customers who actually would like those ads and would
have converted those ads into offers, or future sales.
Mobile First Inc. solves this problem. It is a mobile monetization company, which
helps businesses achieve analytics and customer insights driven results. It provides
a platform “Mobiip” which is based on artificial intelligence- and helps you publish
your ads where it meets its targeted customers.
2 Business Overview
2.1 Mission Statement
Our mission is to help the businesses reach their customers through efficient, smart
and responsive ways on the digital platforms. Through Big Data Analytics and our
qualified professionals, we will make sure that that our client's money and efforts on
advertisements and digital platforms is well spent.
2.2 Description of Business
Most of the businesses design their websites with the target to engage their
customers. They spend millions of dollars for digital advertising. But, they fail to
capture their audience. The reasons being two-

Firstly, once a company decides to make its website, their approach is to make a
website which is PC based. They are not mobile friendly. But now, the digital world
is changing fast. The websites such created don’t open properly in other digital
platforms, hard to read, not content specific and completely miss the idea of
customer preferences. A lot of companies are now adopting a "Mobile First"
strategy.
Secondly, once website is created and published, generally three things occur.
Either it needs to be advertised on some other sites or mobile apps, or it shows
other’s advertisements, or a combination of both. In all the scenarios, if the company
is not tracking its advertisements, their conversion rate, and customer analytics; it
makes no profit to run these advertisements. Also, it needs to be mentioned that
these advertisements are not even properly visible on the company’s mobile site.
Mobile First Inc. tackles this second problem. It provides businesses a complete
range of solutions to reach their target consumers. Mobile First Inc. is a mobile
monetization company. Our primary service is providing the businesses a digital
platform and Big Data insights so that their advertisements on digital platforms
reach their target customers in cost effective manner.
2.3 Trends in the industry
 Average number of connected devices used per person in US in 2014 – 2.9
(Average number of connected devices used per person in selected countries
in 2014)
 Global connected device sales from 2008 to 2015 (in million units) has
increased from 1463 t 3413 (Company)
 Number of mobile shoppers in the United States from 2013 to 2018 (in
millions) – 122.9 to 198.( (Number of mobile shoppers in the United States
from 2013 to 2018 (in millions))
 Number of devices to hit 4.3 per person by 2020 (Waring, 2014)
 U.S. consumer spends 60 hours a week consuming content across devices
(THE U.S. DIGITAL CONSUMER REPORT, 2014)
 86% of people use their smartphones while consuming other media (Google:
How to Make Your Website Work Across Devices, 2013)
All these trends suggest that a lot is going to happen in the mobile industry and
gradually we will be using them more than ever, even for our daily activities.
2.4 Government Regulations
There are no significant regulations for this industry

3. Market Analysis
3.1 Market Research and Trends
People in US spend 11.7 percent of their media time on their mobile phones and
tablets, yet mobile ads only account for 1.6 percent of total ad spend. This is a silver
platter opportunity for us.
 Over 50 percent of companies allocated less than five percent of their
marketing budget to mobile advertising (Statistics and facts about Mobile
Marketing in the U.S., 2015)
 Less than a half optimized their internet presence for the needs of mobile
users. (Statistics and facts about Mobile Marketing in the U.S., 2015)
 Digital video ad spending is rising faster than search and display. US digital
video ad revenue will rise by a CAGR of 21.9% through 2020. (Hoelzel, 2015)
 Mobile search will overtake desktop search ad revenue by 2019. Mobile
search ad spend will rise by a 25.2% CAGR, while desktop search ad revenue
will decline during the same period. (Hoelzel, 2015)
 Mobile display ads, including banners, rich media, and sponsorships, will
overtake desktop display-related spending even earlier, in 2017. (Hoelzel,
2015)
 The rapid embrace of programmatic ad-buying tools is fueling a dramatic
uptick in the share of digital ad spending coming through programmatic
channels. Programmatic transactions will be a majority of total US digital ad
spends this year. (Hoelzel, 2015)(Digital advertising spending in the United
States from 2012 to 2018 (in billion U.S. dollars)) (Mobile advertising
spending in the United States from 2011 to 2019 (in billion U.S. dollars))
(Ciccotelli, 2015)
3.2 Market Segment
The market segment is targeting the retail industry in US that spends on mobile and
digital advertising.
Market 2015 2016 2017 2018 2019 2020 2021 CAG
R
Digital
advertisi
ng
58.60 66.49 74.11 82.24 91.26 101.27 112.38

spending
worldwi
de from
2012 to
2018 (in
billion
U.S.
dollars)
Mobile
Advertisi
ng In US
30.45 42.01 50.84 57.95 65.49 74.01 83.64
Retailers 7.06 11.00 13.32 15.18 17.15 19.39 21.91 12.9
0%
Applicab
le
Market(
Bottom
10%)
0.42 0.66 0.80 0.91 1.03 1.16 1.31 20
%
Target
Market(
BILLION
$)
0.0021
19
0.0033
01
0.0039
95
0.0045
54
0.0051
46
0.0058
16
0.0065
72
Target
Market $ 2,119,3
20.00
4,291,4
02.16
5,193,4
03.61
5,919,7
03.76
6,689,9
29.24
7,560,3
70.42
8,544,0
66.59
30
%
Retailers Share 23.20%
Target Market 0.50000%
Applicable Market 5%
Assumptions -
1. Retailer's share 23.2 % for first year (Digital advertising spending in the
United States from 2012 to 2018 (in billion U.S. dollars))
2. CAGR is 12.9 % for retailers. (Ciccotelli, 2015)

3.3 Products and services
Mobile First Inc. is a B2B Business model. Our product comes in the form of service
provided to businesses. There are four different kinds of products based on the cost
and type of advertisements-
1. Product A – High end Advertisements
2. Product B - Rich end Advertisements
3. Product C - Medium end Advertisements
4. Product D – Low end Advertisements
The product description and differentiation is being worked on and it depends
basically on the types of contracts we secure with our clients.
3.4 Pricing Model
Today’s digital advertising is filled with many different pricing options. A lot of
options for pricing will be implemented based on the clients, requirements and
the contracts. A few of them are listed here–
 Click-through rate (CTR) Model
 Conversion Rate Model
 CPF (cost-per-follower/fan)
 CPV (cost-per-view)
 CPI (cost per app install)
 CPVM (cost-per-viewable-impression)
3.5 SWOT ANALYSIS
Strengths/Opportunities
 First company to provide a complete set of solutions ranging from digital
platform friendly site, design approach and advertising centric
 Helps the businesses reach their target customers
 Helps the businesses spend their money on the right advertising platforms
 A new technology- Responsive Design
 A new Technology- A platform with artificial intelligence
 Increase in digital advertising in US
 Increase in smartphones and other digital platforms’ usage

 Helps the clients increase their customers’ base and help them
concentrate on their target customers
 Initial target base is reachable
Weaknesses/ Threats
 Establishing relationships with businesses and other advertising platforms
 Initial setup costs
 Evolving technology
 Lot of competition
3.6 Main Assumptions
Most of the assumptions have been mentioned in the appendix while calculating.
Listed here is some of the main assumptions-
 Salaries, Wages, Tax rates etc. have been used as per industry standards. The
sources have been listed in the “References’ field.
 COGS of technology service-based industry are minimal. We assumed COGS
to be 5% of the sales.
 In the Income statement sheet, sales been divided equally in all the months.
 The applicable market in the retail industry is big but we assumed it to be
only 5 % of the current retail market. Our target in the initial years will be
businesses who are small to medium sized level and who are willing and
capable to invest such money on the digital ads. Hence, 5 % seems
reasonable. Also, in the initial years, our actual target market (on whom our
projections are based) is actually 0.5 % of that market.
 Cost analysis of ads based industry is difficult because it depends on the
service contracts and also on the pricing models and click –through and
conversion rates. Hence, WE considered four products- A, B,C,D based on the
service contracts, cost models, advertising space etc. and calculated COGS on
a percent basis. Also, the numbers are industry average for a small startup,
which is very much attainable.
4 The Competition
The competition is huge in the field of digital advertising. Big Players like Google,
Yahoo, and Facebook etc. together are the market leaders in the digital ad world.
Also, there are a lot of other advertising companies who can be the moderate
competitors.

4.1 Competitors Strengths and Weaknesses
Big players like Google do not concentrate on providing personalized services. Also,
the size is too big on the digital ad worlds that it becomes really difficult for medium
to low range businesses to have their ads displayed on the proper channels. Also,
they are not sure if it is really beneficial to them or their ads are just a number in te
big space.
4.2 Competitive Advantage
With the new platform “Mobiip”, Mobile First Inc. is able to understand what a
user is viewing in a mobile app, or on a website; curate a set of products or
content in real time that is relevant to what the user is viewing, and serve it
instantly and relatively unobtrusively in the app.
We are putting the consumer at the center of advertising.
5 Sales And Marketing Plan
5.1 Customers
Our customers are the businesses who have online presence, have their
websites, digital channels and spend on digital advertisements. Our target
customers for the initial years will be the retailers in US who are spending on
digital ads and want to target their customers on all the digital platforms.
5.2 Advertising and Promotion
We will engage in advertising on social media, technology magazines, social;
media and through other channels which are relevant to the industry we are
targeting. Having a B2B Business model, we also need to strategies on reaching
our clients directly.
5.3 Distribution Model
We are a service-based company. For the distribution of our services, we need
cloud space and other digital infrastructure that is robust, and can connect our
clients on a secured platform.

5.4 Customer Service Policy
Customer Service is enhanced by a website and 1-800 inquiry line. Customers
can also chat online or request specific meetings either through our website, or
through personal customer professionals. Our product also insures monthly
customer feedback surveys.
6. Operating Plan
6.1 Business Locations and requirements/ advantages/ lease
details
We are a US based company. Our headquarters is in Richmond, Virginia, US.
We have also an office in New Delhi, India where most of our technology
professionals work. The two offices are currently being leased on a yearly basis.
Richmond Headquarters -
Status: Active
Rental Rate: $12 /SF/Year
Space Available: 4000 Sq. Ft
Total Rent for a year: $48000
Advantages- The office is located in the downtown Richmond area, with
ease of commute and benefit of being close to Richmond Airport.
New Delhi Office
Status- Active
Rental Rate - $3022/ Year
Space: - 4000 Sq. Ft
Total Rent for a year: 3022
Advantages - The facility is closely located to the metro facility, equipped
with high speed Internet and is located in a safe office building.
6.2 Technological Infrastructure
All the services and technology will be cloud based. Even the analytical tools
used will be on cloud; many of them are open resources. This helps us reaching
high scalability with very little risk involved in the costs of technological
infrastructure. Also, our software professionals have customized the technology

“Responsive Design” which will be used for digital platforms. Hence, we do not
need to invest big on the technological infrastructure.
6.3 R&D
Our R& D efforts are centered on the market studies and consumers, using Big
Data Analytics, consumer analysis, buying behaviors and people analytics.
7 Financial Analysis
Details of financial analysis are being provided in the summary ranging from cost
analysis, income statements to projections.
Summary Points –
 Owner’s Equity - $200,000
 Investment - $1,500,000
 Positive Cash Flow at the beginning of Year 2
 Net Income of $5081 at year one end
 Net income of $1,405,018 at year two end
 Net income of $ 2,077,751 at year three end
8 Term Sheet
Issuer Mobile FirstInc.
Founder Rachit Jauhari
Amountand
securities 75,000 sharesof SeriesA Convertible PreferredStock
Owner'sequity $200,000
Investment $1,500,000
Pre Money
Valuation $2,500,000
Issue Price $2 pershare
Liquidation
Initial pay Issuance will gotoInvestorsandFounderwithequal liquidation
preference.A merger,re-organizationorothertransactioninwhichcontrol of

the companyis transferredwillbe treatedasliquidation.
Anti Dilution
Provision
The Non-ParticipatingConvertible PreferredStockshall have broad- based
weightedaverage anti dilutionprotectiononissuance of shares.
Representatio
n and
Warranties Standardrepresentations andwarrantiesfromthe company
Board Of
Directors
Three Total.The Non-ParticipatingConvertible PreferredStockwill be
entitledtoone representative,the Founderwill representone director; and
the last directorwill be electedbythe Non-ParticipatingConvertible
PreferredStockholders andthe Founder.
VotingRights
Non-ParticipatingConvertiblePreferredvotesonanequal basisasthe
CommonStockholdersinmattersregarding(1) anincrease inthe numberof
authorizedsharesof PreferredStock;(2)anyadversechange tothe rights,
preferencesandprivilegesof the PreferredStock;(3)anincreaseinthe size of
Board Of Directors;(4)repurchase of CommonStockexceptupontermination
of employment;(5)repurchaseorredemptionof anyPreferredStock;(6)any
transactioninwhichcontrol of the companyistransferred;(7)anamendment
to the Bylawsor Articlesof Incorporation;(8)anydividendordistributionof
capital stock of the company;and (9) any sale,pledge,licenseortransferof
substantiallyall of the Company'sassets.
Information
Rights
So longas any Investorhassharesoutstanding,the Companywill deliverto
each Investorannual,quarterly,andmonthlyfinancial statements;annual
businessplanandbudget,within45 dayspriorto the beginningof the fiscal
year;and otherinformationreasonablyrequestedbyanInvestor.
Rightof First
Refusal
The Investorsshall have apro rata right,basedontheirpercentage equity
ownership of preferredstock,toparticipate insubsequentequityfinancings
of the Company.If anyshareholderof CommonStockwantsto sell shares,he
mustofferthemfirstto the holderof SeriesA Preferred.
Conversion
The holderof SeriesA Preferred shall have the righttoconvertthe SeriesA
Preferred,atanytime,intoshare of CommonStock.The initial conversion
rate shall be 1:1.
Us e of
Proceeds
The proceedsfromthe sale of the SeriesA Preferredwill be usedforworking
seedcapital aswell asworkingcapital accordingto the Company'sBusiness
Plan.
9 Works Cited
Ciccotelli, E. (2015, June 4). Retail Industry Is On Top Of U.S. Digital Ad Spend.
Retrieved September 28, 2015, from http://automotivemobilesolutions.com/:
http://automotivemobilesolutions.com/retail-industry-is-on-top-of-u-s-digital-ad-
spend/

Digital advertising spending in the United States from 2012 to 2018 (in billion U.S.
dollars). (n.d.). Retrieved from Statista:
http://www.statista.com/statistics/270985/online-advertising-expenditure-in-the-
united-states/
Hoelzel, M. (2015, August 05). THE US DIGITAL MEDIA AD SPEND REPORT: Mobile
will fuel strong growth across formats as desktop and traditional spend slow.
Retrieved September 27, 2015, from BusinessInsider:
http://www.businessinsider.com/how-ad-spending-on-mobile-will-grow-faster-
than-on-any-other-advertising-channel-2015-7
Mobile advertising spending in the United States from 2011 to 2019 (in billion U.S.
dollars). (n.d.). Retrieved from Statista:
http://www.statista.com/statistics/269916/mobile-advertising-spending-in-the-
united-states/
Retail Industry Reigns for US Digital Ad Spending. (2015, June 02). Retrieved
September 28, 2015, from www.emarketer.com:
http://www.emarketer.com/Article/Retail-Industry-Reigns-US-Digital-Ad-
Spending/1012554
Statistics and facts about Mobile Marketing in the U.S. (2015). Retrieved September
27, 2015, from Statista.com: http://www.statista.com/topics/1158/mobile-
marketing/
10 Other References
http://www.theguardian.com/media-network/2015/jan/22/business-mobile-first-strategy-
technology-people
http://www.forbes.com/sites/joemckendrick/2014/05/29/why-mobile-first-may-not-be-the-
best-strategy-after-all/
http://www.forbes.com/sites/joemckendrick/2014/05/29/why-mobile-first-may-not-be-the-
best-strategy-after-all/
https://codemyviews.com/blog/how-to-center-anything-with-css
https://www.techopedia.com/definition/29153/mobile-first-strategy
http://bigthink.com/flash-foresight/do-you-have-a-mobile-first-strategy-you-should
http://www.inmobi.com/
http://www.quora.com/How-does-InMobi-make-money
http://www.quora.com/What-are-the-similarities-and-difference-between-InMobi-and-
AppFlood
http://www.quora.com/What-is-the-business-model-of-inmobi#
https://www.techinasia.com/heres-what-you-need-to-know-about-inmobi-and-its-25-million-
indie-fund/
http://www.businessinsider.com/paypal-is-now-a-standalone-company-with-a-mobile-first-
strategy-2015-7
http://www.adweek.com/socialtimes/5-ways-a-mobile-first-strategy-can-integrate-online-
and-offline-marketing/619803
http://owltastic.com/

http://www.slideshare.net/mattbrocklehurst/multi-devicesites-googlenov13
https://storage.googleapis.com/think-emea/docs/article/article-makeitwork.pdf
http://www.statista.com/topics/1158/mobile-marketing/
http://www.grpva.com/files/domestic_business_model.pdf
11 Appendix
11.1 Cost Analysis
Labor Costs - India
Type Number
Average Rate of
Pay
Total Per
Year
Software Professionals(India) 15 $10,000.00 $150,000.00
Digital MarketingConsultantsandExperts
(India) 8 $10,000.00 $50,000.00
CustomerCare Champions(US) 4 $10,000.00 $50,000.00
Finance Professionals(India) 3 $6,000.00 $6,000.00
Data Scientists(India) 10 $10,000.00 $50,000.00
OtherCosts 10 $10,000.00 $50,000.00
Total laborCosts-IndiaOffice 50 $7,120.00 $356,000.00
Labor Costs - US
Type Number
Average Rate of
Pay Total PerYear
Technology Consultants(US) 2 $83,110.00 $166,220.00
Digital MarketingConsultantsand Experts
(US) 2 $80,000.00 $160,000.00
CustomerCare Champions(US) 2 $80,000.00 $160,000.00
Finance Professional (US) 2 $82,020.00 $164,040.00
SalesRepresentative (US) 3 $83,110.00 $249,330.00
Data Scientists(US) 3 $83,110.00 $249,330.00
OtherCosts 2 60,000 $120,000.00
Total 14 $35,096.43 $1,268,920.00
Technology Infrastructure Costs Per Year
Type Number
Average Rate of
Pay
Total Per
Year
Software Licenses 64 400 25600
Storage - Cloud 6000 0.125 750

Space
Hardware 30 300 9000
Other 30 200 6000
Total Costs 41350
11.2 Required Startup Funds
11.3 Sources Of Funding

11.8 Projected Income Statement- Year One

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