1. eTomes Business Plan Sean Curry | Jason McCandless | Mark McCann

2. In brief… Online eBook Store Online eBook Store We are looking to raise €250,000 We are looking to raise €250,000 The money will be used to pay the salaries of the staff for the first year The money will be used to pay the salaries of the staff for the first year It will also be used to buy the hardware we need to get the store online It will also be used to buy the hardware we need to get the store online

3. Introduction An ebook is an electronic version of a book. The main advantages being portability An ebook is an electronic version of a book. The main advantages being portability Search ability, ability to change font size and face Search ability, ability to change font size and face Easily copied Easily copied Low distribution cost Low distribution cost Instant delivery Instant delivery Removal of need to find a publisher Removal of need to find a publisher

4. eBook reading devices In the past, reading ebooks could be hard on (and sometimes even harmful to) the eyes In the past, reading ebooks could be hard on (and sometimes even harmful to) the eyes They were also not very portable unless the user had a device such as a PDA They were also not very portable unless the user had a device such as a PDA

5. eBook reading devices Advent of paper-like ebook display devices that can store many ebooks and are roughly the size of a novel Advent of paper-like ebook display devices that can store many ebooks and are roughly the size of a novel e-paper looks like paper - it is a static image that is very readable e-paper looks like paper - it is a static image that is very readable But it can be updated to display different text and even images But it can be updated to display different text and even images It will be many times more comfortable for somebody to read than a conventional display It will be many times more comfortable for somebody to read than a conventional display

6. Sony Reader™

7. The Sony Reader™ uses a special display technology called eInk which looks almost exactly like traditional printed paper The Sony Reader™ uses a special display technology called eInk which looks almost exactly like traditional printed paper Where Sony are going with the Reader, other consumer electronic companies are likely to follow Where Sony are going with the Reader, other consumer electronic companies are likely to follow A market similar to that of MP3 players, where the Apple iPod™ is the industry leading music player and there are multiple players and multiple ways to get music A market similar to that of MP3 players, where the Apple iPod™ is the industry leading music player and there are multiple players and multiple ways to get music Our business will become one of the providers of content, an online ebook store Our business will become one of the providers of content, an online ebook store

8. Interface AJAX technology will be utilized to provide a rich client side experience and a simplified “clean” interface will be presented to the users AJAX technology will be utilized to provide a rich client side experience and a simplified “clean” interface will be presented to the users Making it easier for users to navigate the site and faster to purchase items. Making it easier for users to navigate the site and faster to purchase items.

9. Management Plan The management team is made up of the founders of the company: The management team is made up of the founders of the company: Sean Curry Jason McCandless Mark McCann

10. Management Plan The company will be organized as follows: The company will be organized as follows: Three managers who each manage separate areas of the business Three managers who each manage separate areas of the business Four programmers who will work on the project Four programmers who will work on the project Small teams have many less communication paths, so they will be more in touch and won’t need to spend as much time discussing ideas Small teams have many less communication paths, so they will be more in touch and won’t need to spend as much time discussing ideas Also have a secretary to deal with paperwork and back office matters Also have a secretary to deal with paperwork and back office matters

11. Company Philosophy “Provide a large selection of low-cost eBooks to the world”

12. Management Plan The company will start with the three key founders and a team of four seasoned programmers and one secretary The company will start with the three key founders and a team of four seasoned programmers and one secretary Eight people in total Eight people in total By the end of 2006, we hope to expand the team to around twelve By the end of 2006, we hope to expand the team to around twelve By mid 2007, we expect to have around twenty people By mid 2007, we expect to have around twenty people

13. Management Plan The managers will each get paid €30,000 p.a. The managers will each get paid €30,000 p.a. The programmers will get €25,000 p.a. The programmers will get €25,000 p.a. The secretary will get paid €18,000 p.a. The secretary will get paid €18,000 p.a. €208,000 total yearly employment expenditure €208,000 total yearly employment expenditure

14. Market Analysis

15. Demographics Consumer preferences towards electronic and paper books Consumer preferences towards electronic and paper books Attitudes towards eBooks by people who read “paper” books Attitudes towards eBooks by people who read “paper” books

16. Demographics 18% : Online bookstore via the Internet 18% : Online bookstore via the Internet 27% : Self-improvement and inspiration 27% : Self-improvement and inspiration 14% : Art 14% : Art

17. Demographics 35% want to read an e-book 35% want to read an e-book 59% Many titles available as Paper Books 59% Many titles available as Paper Books 56% would buy an e-Book if I can enlarge type 56% would buy an e-Book if I can enlarge type

18. Demographics 70% read on any computer 70% read on any computer 66% buy from net! 66% buy from net!

19. Trade Regulations Digital Rights Management Limit by user Limit by user Limit by time frame Limit by time frame Limits based on fees Limits based on fees

20. Trade Regulations The degree of control eBook publishers can choose to exercise over intellectual property involves: Access Access Sharing Sharing Loaning Loaning

21. Competition Amazon.com Amazon.com ebookimpressions.com ebookimpressions.com eBooks.com eBooks.com

22. Finance Assumptions: Forecasts that say 14% of the world's population presently uses the Internet, and that will grow to 22% by 2010. No e-commerce disaster scenarios. Continued support of financial markets.

23. Finance details As is to be expected in this kind of venture, the cash flow is supported mainly by new capital from new investment in the company. Due to the presence of a large amount of automation in the venture, there would not be a need for a particularly large staff. The following benchmarks chart indicates a very ambitious increase in sales and matching increases in operating expenses. We expect to improve ratios of inventory, payable days, and collection days. Very high rate without corresponding increase in operating expenses. This is because of the leverage available in use of Internet technology as our main marketing and sales channel.

24. Key Financial Indicators One of the more important assumptions is that we can increase sales at a very high rate without corresponding increase in operating expenses. One of the more important assumptions is that we can increase sales at a very high rate without corresponding increase in operating expenses. We expect to improve ratios of inventory, payable days, and collection days. We expect to improve ratios of inventory, payable days, and collection days.

25. Implementation “We will use a combination of the DOM accessed with a client side scripting language, any ECMAScript implementation like JavaScript to dynamically display and interact with the content presented as well as the XMLHttpRequest object to exchange data asynchronously with the web server.” SQL VeriSign Backup Mirrors Shockwave/Flash JS/AJAX XHTML/CSS

26. NTOP – Monitor program providing many useful statistics.

27. Useful for gathering information on how the website is being used, and what areas could use improvement, or where the site is lacking.

28. Disaster Recovery