QQwikpay Business Plan

Business plan and summary
crowdcube@qqwikpay.co.uk
skype: qqwikpay
qqwikpay.co.uk
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _______________ in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of _______________.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to
_______________.
Upon request, this document is to be immediately returned to _______________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
Table of Contents
1.0 Executive Summary...............................................................................................................................1

Chart: Highlights..................................................................................................................................1
1.1 Objectives..........................................................................................................................................1
1.2 Mission...............................................................................................................................................1
1.3 Keys to Success..................................................................................................................................2
2.0 Company Summary...............................................................................................................................2
2.1 Company Ownership.........................................................................................................................2
2.2 Start-up Summary..............................................................................................................................2
Table: Start-up.....................................................................................................................................2
2.3 Company Locations and Facilities.....................................................................................................2
3.0 Services..................................................................................................................................................3
3.1 Service Description............................................................................................................................3
3.2 Competitive Comparison...................................................................................................................3
3.3 Sales Literature..................................................................................................................................3
4.0 Market Analysis Summary....................................................................................................................3
Table: Market Analysis........................................................................................................................4
Chart: Market Analysis (Pie)...............................................................................................................5
4.1 Target Market Segment Strategy.......................................................................................................5
4.1.1 Market Needs..............................................................................................................................5
4.1.2 Market Trends.............................................................................................................................6
4.1.3 Market Growth............................................................................................................................6
4.2 Service Business Analysis.................................................................................................................6
4.2.1 Business Participants..................................................................................................................7
4.2.2 Competition and Buying Patterns...............................................................................................8
4.2.3 Main Competitors.......................................................................................................................8
5.0 Web Plan Summary.............................................................................................................................10
5.1 Website Marketing Strategy............................................................................................................10
5.2 Development Requirements.............................................................................................................10
6.0 Strategy and Implementation Summary...............................................................................................10
6.1 SWOT Analysis...............................................................................................................................11
6.1.1 Strengths...................................................................................................................................11
6.1.2 Weaknesses...............................................................................................................................11
6.1.3 Opportunities.............................................................................................................................11
6.1.4 Threats.......................................................................................................................................11
6.2 Competitive Edge.............................................................................................................................11
6.3 Marketing Strategy...........................................................................................................................11
6.3.1 Pricing Strategy.........................................................................................................................13
6.3.2 Promotion Strategy...................................................................................................................14
6.4 Sales Strategy...................................................................................................................................14
6.4.1 Sales Forecast............................................................................................................................14
Table: Sales Forecast.....................................................................................................................14
Chart: Sales Monthly.....................................................................................................................15
Chart: Sales by Year......................................................................................................................15
6.7 Strategic Alliances...........................................................................................................................16
7.0 Management Summary........................................................................................................................16
7.1 Management Team...........................................................................................................................16
Page 1
Table of Contents
Table: Personnel.................................................................................................................................16
8.0 Financial Plan.......................................................................................................................................16
8.1 Start-up Funding..............................................................................................................................17
Table: Start-up Funding.....................................................................................................................17
8.2 Break-even Analysis........................................................................................................................17
Table: Break-even Analysis...............................................................................................................18
Chart: Break-even Analysis...............................................................................................................18
8.3 Projected Profit and Loss.................................................................................................................18
Table: Profit and Loss........................................................................................................................19
Chart: Profit Monthly.........................................................................................................................19
Chart: Profit Yearly............................................................................................................................20
Chart: Gross Margin Monthly............................................................................................................20
Chart: Gross Margin Yearly...............................................................................................................21
8.4 Projected Cash Flow........................................................................................................................21
Table: Cash Flow...............................................................................................................................22
Chart: Cash.........................................................................................................................................23
8.5 Projected Balance Sheet...................................................................................................................23
Table: Balance Sheet..........................................................................................................................24
8.6 The Investment Offering..................................................................................................................24
Table: Investment Offering................................................................................................................25
8.7 Use of Funds....................................................................................................................................25
Table: Use of Funds...........................................................................................................................25
8.8 Payback............................................................................................................................................26
Table: Payback...................................................................................................................................26
Chart: Payback Period........................................................................................................................26
Table: Sales Forecast...................................................................................................................................1
......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................2
......................................................................................................................................................................2
Table: Profit and Loss..................................................................................................................................3
......................................................................................................................................................................3
Table: Cash Flow.........................................................................................................................................4
......................................................................................................................................................................5
Table: Balance Sheet....................................................................................................................................6
Page 2
QQwikpay Business Plan
1.0 Executive Summary

QQwikpay is a new, ecommerce payment platform offering a large selection of currency and
payment solutions. Merchants can easily sell their online products while processing ecommerce
transactions. Consumers can securely send payment to vendors using their checking account,
credit card, debit card or mobile processing. Founded by a serial entrepreneur, Chase Justin,
the Company will be headquartered in the UK.
The purpose of this plan is to obtain sufficient funding 365,000 from crowdcube.com to cover
initial start-up expenses.
Chart: Highlights
Highlights
640,000
576,000
512,000
448,000
Sales
384,000
320,000
Gross Margin
256,000
Net Profit
192,000
128,000
64,000
0
2012
2013
2014
1.1 Objectives
1. To become the online destination choice for payment processing.
2. To be extremely competitive in the marketplace, and undercut our top competitor while
gaining a large portion of market share.
3. To create strong demand for our service by offering our customers an incentive for using
our service.
4. Implement cutting edge technology to enhance speed of delivery.
1.2 Mission
QQwikpay aims to benefit both the seller and the consumer by providing low fixed rates and a
cash back incentive for consumers. We will provide high quality customer service by providing
personal attention to all clients.
Page 1
1.3 Keys to Success

1.
2.
3.
4.
Commitment to providing high quality customer service (24/7 support).

Online and offline advertising.
Gaining a reputable reputation.
Developing visibility.
2.0 Company Summary

QQwikpay is a new online payment service managed by Chase Justin, a serial entrepreneur.
The Company was formed to take advantage of the perceived weaknesses and inadequacies of
other top competitors in terms of customer care and rates. QQwikpay specializes in eCommerce
transactions providing secure and reliable online payment programs; we aim to serve as a
service for people to send money using any method of payment.
2.1 Company Ownership
The Company is solely owned by Chase Justin and currently registered as QQWIKPAY LTD in
London (07895418).
2.2 Start-up Summary
The start-up costs for QQwikpay will cover a number of details to get the Company fully
operational online. Included in start-up costs are all necessary expenditures to cover processing
setup, website development, payment integration, mobile card reader, and advertising.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Web development
Insurance
Payment processing
Payment integration
Mobile card reader
Advertising
Total Start-up Expenses
0
0
0
0
0
0
0
0
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
365000
0
0
365000
Total Requirements
365000
2.3 Company Locations and Facilities

The Company will operate solely online but headquarters will be located in the UK.
Page 2
3.0 Services
QQwikpay's online payment system empowers an unlimited number of small, mid-size, and
large web based storefronts to sell online and process all types of ecommerce transactions,
while enabling consumers to securely connect for transmission of transaction data. With
QQwikpay consumers can choose their method of payment, which allows merchants to capture
all possible sales. Online merchants can expect to see an increase of sales, as it has been
shown by studies that credit card spending is higher than cash spending.
Our number of banking partners combined with our payment processing technology allows us to
tailor our solutions to match the individual needs of the client.
3.1 Service Description
1. Online payment processing. QQwikpay provides sellers with a competitive, low fixed rate
2.
3.
of 2.25%, without tiered pricing. QQwikpay accepts credit card, debit card, and bank
account. Our system is compatible with all shopping carts.
Mobile processing. This service will be provided in Phase 2 of 2012. Consumers and
businesses have the option of using their mobile phone to perform transactions. Consumers
will be able to manage their account no matter their location, and merchants can accept
payment anytime, anywhere even if they are selling on the road or at a tradeshow.
Money back for consumers. Consumers that use their checking account for payment
automatically receives 1% back.
3.2 Competitive Comparison

Competition in this industry is based on service, quality, price, processing system speed,
customer support and reliability. Our most competitive edge is lower fees for merchants, high
quality customer support. In addition, we will be the first to offer 1% cash back for consumers.
3.3 Sales Literature
At the present time no sales literature/brochures are available.
4.0 Market Analysis Summary
Transaction processing services are provided by a range of companies active in the payments,
cards and capital market arenas, supported by network operators that enable communication
between the various parties. Most transaction processors operate at a national level, seeking
economies of scale to limit processing costs. But as consolidation gathers pace there is growing
pressure on processors to offer cross-border services.
QQwikpay is focusing its services on online merchants, consumers and small business owners
for mobile processing. Initially, we will target the US, UK and Europe. Specific countries include
the following: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Hong Kong, Hungary, Ireland, Italy,
Japan, Latvia, Lithuania, Malaysia, Mexico, Norway, Panama, Peru, Philippines, Poland,
Slovakia, Spain, Sweden, Netherlands, Thailand, Turkey, USA, United Kingdom, Uruguay, and
Singapore.
Page 3
We are focusing on these particular segments as the market is continuing to grow:

More than 326,400,000 was processed in 2010 for global e-commerce
Revenue surpassed 11,520,000,000 for 2010
Cross border transactions owning half the market share of business
Only a handful of front-runners in the business; therefore, there is significant opportunity
for QQwikpay to capture a large part of market share.
38 percent of those who own a Smartphone have made a mobile payment (mobile
processing)
Table: Market Analysis
Market Analysis
Potential Customers
Online merchants
Mobile payment
Total
Growth
5%
3%
4.30%
2012
2013
2014
2015
2016
25,000,000
10,000,000
35,000,000
26,250,000
10,250,000
36,365,000
27,562,500
10,506,250
38,068,750
28,940,625
10,768,906
39,709,531
30,387,656
11,038,129
41,425,785
CAGR
5.00%
2.50%
4.30%
Page 4
Chart: Market Analysis (Pie)
Market Analysis (Pie)
Online merchants
Mobile payment
4.1 Target Market Segment Strategy

ECommerce has grown to represent a significant percentage of retail sales and profits;
therefore, merchants are seeking payment strategies that can enhance their online services,
open new markets and protect the bottom line.
The target market for QQwikpay is consumers, online merchants and small business owners in
the US, UK, and Europe. We have chosen these segments because of growth and potential
international customers. According to Javelin Strategy and Research, 63 percent of U.S. adults
shop online, and expects this number to grow to 78 percent by 2014.
By having a global payment processor, QQwikpay can help start tapping the vast potential
markets for services beyond U.S. borders.
Advertising is the key type of marketing strategy utilized for company awareness. Maintaining
and further enhancing the Company's reputation in the market is crucial to gaining additional
market share of this target market.
4.1.1 Market Needs
Payment options are a determining factor in where a consumer shops online. Thus, online
merchants need expanded services that improve the consumers shopping experience, prompt
more frequent visits, increase average order value and boost sales. By having multiple payment
options at checkout, online merchants can expect to see fewer cart abandonments and more
sales.
Page 5
4.1.2 Market Trends
With online payments other than debit or credit cards expected to grow to 30 percent of
purchase volume by 2014, eCommerce merchants have to consider enhancing their
payment options to take advantage of this consumer trend.
Mobile devices will soon be the primary form of payment for millions of people globally.
According to Aite Group forecasts, mobile bill payments will reach 13 billion in gross dollar
volume in 2015, up from 10 billion in 2010, which represents a 68 percent compound
annual growth rate. A November 2010 Aite Group report stated the United States is moving
closer to a tipping point that will lead to the popularization of mobile payments.1
Credit card payments continue to be strong in European E-Commerce. In Europe, in 2010

credit cards were the most popular online payment method with a share of approx. 40%.
Electronic payment methods are also gaining popularity in Asia and Africa. The Global
Online Payment Methods 2011 report by yStats.com clearly shows that the market for
electronic payments continues to grow in Asia as well.2
4.1.3 Market Growth

Transactions via cell phone-based payment systems are expected to have grown 149.4 percent
year-on-year for 2011 to 48.14 billion Yuan (4,857,600,000) and are expected to exceed 200
billion Yuan in 2013, according to figures released recently.3
E Marketing Research Corporation said the mobile payments market is expected to generate
604 billion in sales.4
4.2 Service Business Analysis
There is an information advantage held by sales people in the industry that is difficult for
merchants to overcome. Not only is the industry fundamentally very complex, most providers
don't seem the least bit inclined to make it any easier.
In this industry there are few barriers to entry and a loosely regulated industry. Those in the
payment processing business are not required to obtain any licenses or certifications and the
only governing body that ever really gets involved is the FTC.
Five Payment Trends to Watch in 2011. January 2011. Retrieved at: https://www.thepaypalblog.com/2011/01/five-payment-trendsto-watch-in-2011/
2
PR.com. Dynamic Trend for Online Payment Method. Retrieved at: http://www.pr.com/press-release/325943
Global times. Mobile Payment Growth Expected to Reach 150%. Retrieved at:
http://www.globaltimes.cn/NEWS/tabid/99/ID/689456/Mobile-payment-growth-expected-to-reach-150.aspx
4
Brafton. Mobile Payment Growth Boosting Need for Mobile SEO. Retrieved at: http://www.brafton.com/news/mobile-paymentgrowth-boosting-need-for-mobile-seo
Page 6
Mobile Processing
Gartner defines a mobile payment as paying for a product or service using mobile technology
such as a short message service (SMS), Wireless Application Protocol (WAP), Unstructured
Supplementary Service Data (USSD) and NFC. It includes transactions that use banking
instruments such as cash, bank accounts or debit and credit cards, as well as noncarrier stored
value accounts, such as travel cards, gift cards or PayPal. It does not include transactions that
use mobile operators billing systems, such as purchase of mobile content or telebanking by
mobile to the service center via an interactive voice response (IVR) system.
In terms of both number of users and transaction volumes, Gartner expects Asia/Pacific and
Japan to maintain a larger share of the market through 2012. While mobile payment
penetration in Western Europe is expected to rise from 0.9 percent in 2009 to 2.5 percent in
2012, and from 1.7 percent to 3 percent in North America; penetration in Asia/Pacific and
Japan will rise from 2 percent in 2009 to 3.8 percent in 2012. Mobile payment penetration in
Eastern Europe, the Middle East and Africa (EMEA) and Latin America is also expected to
exceed 3 percent by 2012.
4.2.1 Business Participants
1. Acquiring Bank (Merchant Bank) - A Merchant Bank, also known as the Acquirer or
Acquiring Bank, is the financial institution that provides a merchant with a Merchant
Account. The Merchant Bank handles acceptance and payment of credit card transactions to
the Merchant's bank account. In a way, they front the money for the Issuing Banks,
depositing the Merchant's funds prior to the actual transfer via Interchange from the
cardholder's issuing bank A Merchant Bank pays the Issuing Banks and Card Associations
fees for transactions processed on behalf of its Merchant Account holders. In return,
Merchant Banks provide their services to Merchants for a fee normally called a discount r
ate.5
2. Merchant Services Provider (MSP) - If the Merchant did not set up their Merchant
Account directly with a Merchant Bank, then the Member Service Provider/Independent
Sales Organization will be the organization to quote a Discount Rate to the Merchant. There
are several different types of organizations that can provide this service to the Merchant:
Merchant Banks, Member Service Providers, Independent Sales Organizations and
Processors. (Shift 4)
3. Payment Gateways - Payment Gateways connect the Merchant to the bank or Processor
that is acting as the front-end connection to the Card Associations. They are called
Gateways because they take many inputs from a variety of different applications and route
those inputs to the appropriate bank or Processor. Gateways communicate with the bank or
Processor using dial-up connections, Internet-based connections and/or privately held
leased line connectivity. Besides offering simple data transportation, Gateways can offer
additional value added services such as advanced reporting, auditing and fraud control.
Different Gateways support different Point-of-Sale (POS) and Property Management
Systems (PMS), banks, Processors and merchant types. (Shift 4)
4. Issuing Bank - Also known as the issuer, this is the financial institution that physically
provides a credit card to an individual for use. These institutions promote the use of these
Shift 4 Secure Safe Processing. http://www.shift4.com/Players.cfm
Page 7
distributed cards and charge the cardholder interest and fees for the use of the card. (Shift
4)
5. Card Associations (Brand) - These are organizations such as Visa, MasterCard, American
Express and Discover that work in conjunction with various local, state, territory and federal
government agencies to make the rules regarding acceptance and use of credit cards. These
rules include security regulations, data requirements and interchange rates. American
Express and Discover issue cards directly to the consumer without a bank intermediary.
(Shift 4)
6. Processors - Processors provide a point of connectivity for the Merchant to authorize and
settle its credit card transactions through the appropriate payment network for each of the
card types accepted by the Merchant. Some Processors have also aligned or purchased
Merchant Banks in order to act as a Merchant Services Provider to its Merchants. All
transactions require a Front-End and a Back-End Processor. In some cases, the Back-End
Processor and Front-End Processor may be one and the same. Front-End Processors handle
the up-front authorization of a credit card transaction. They have connectivity to all of the
Card Associations and route transactions to the appropriate network for authorization. The
Front-End Processor is the Merchants point of connectivity for authorization and settlement
of transactions. When a Merchant settles or submits a batch, it is sent to the Front-End
Processor who then routes the batch to its Back-End Processor. Back-End Processors receive
settlement batches from the Front-End Processor. Transactions from all Merchants are
grouped together by BIN (Bank Identification Number) range and submitted to the
appropriate Issuing Bank on a scheduled time frame. (Shift 4)
4.2.2 Competition and Buying Patterns

A big part of capturing online sales involves convenience. Merchants and business owners will
likely choose a payment processing company based on:
1. Setup fees
2. Annual Fees
3. Merchant transaction fees. These are the fees your merchant bank charges for the
transactions. Can be a fixed rate or a % of the transaction, or both.
4. Online processing fees: This is charged by the company processing the transactions online
for you. Can be a fixed rate per transaction or a % of the transaction.
5. Bank fees: A generic fee that may be charged for transferring funds to your bank account.
6. Lead time for receiving the cash in your bank.
Before using a particular online vendor site, consumers may ask, does the site have a selection
of payment methods from which to choose? Are there options available for international
payments? Is the buying experience intuitive for site visitors coming from different geographic
regions and countries?
4.2.3 Main Competitors
The following are considered QQwikpay's direct competitors:
1. PayPal - founded in 1998, PayPal is an online payment and money transfer service
allowing consumers to send money via text message, email, phone or Skype. One of
their newest product is PayPal mobile, allowing consumers to send money using PayPal's
browser or by sending a text message. eBay acquired the company in 2002.
Page 8
Owns 18% of the total market

2,304 in Total Payment Volume every second in Q3 2011
Expects revenue will make up 3.84 billion to 4.48 billion in 2013
Tiered pricing ranging from 2.2-2.9% for USA with international sales 3.9%, 2.43.9% for Europe
Nearly 100 million users
Sign-up fee: None
Transaction Fees: 0.3+2.2-2.9%
Refund fees: 10 for chargeback
Payment types accepted: Visa, MasterCard, Discover, and American Express.
Other services: Compatible with shopping cartsTangible and digital products
and membership sites. Buyer has to register as PayPal member. Membership
available in 37 countries
2. Skrill (Moneybookers) - This company was founded in 2001 and became the first
emoney issuer to obtain an electronic money license from the FSA. Moneybookers is one
of Europe's largest online payment systems and among the world's leading eWallet
providers with over fifteen million account holders. Moneybookers worldwide payment
network offers businesses access to over 100 payment options in over 200 countries and
territories.
Ranked number 12 fastest growing technology company in the UK
Considered first competitor to PayPal
23.1 million members worldwide
29,089,149,615.36 processed transactions worldwide
Bought by Investcorp Technology Partners for 105 Million in March 2007, March
2009 has been put up for sale by its owners Investcorp for an estimated 365m
Pricing from 1.9-2.9% and non European customers 2.9-3.9% plus 19.95 a
month
Used by more than 70,000 merchants.
3. Adelante - Started over eight years ago, Adelante supplies a wide variety of software
and hardware products. Presently, there are over 1,500 companies processing in excess
of 440 million per year using their various systems.
Leading mobile processing in UK with 1,500 companies with volume breaking
440,000,000 per year
100 set up fee plus 10 per month and pricing from 2.4-2.7%
4. Squareup - Established in 2009, Square is a revolutionary service that enables anyone
to accept credit cards anywhere. Square offers an easy to use, free credit card reader
that plugs into a phone or iPad.
Leading USA mobile processor
Over 300,000 users with volume pass 448 million yearly
Charges 2.75% for swiped and 3.5% keyed
1,000 new account limit and 1,000 card-not-present limit, anything above held
for 30 days.
5. Gopayment - Its a free app and free credit card reader for smart phones and tablets
that provides an easy, inexpensive way for anyone to get paid with a credit card.
Main competitor to Sqaureup
Advertised rate of 2.7-3.7%
Page 9
1M merchant milestone this month
5.0 Web Plan Summary

In year one, QQwikpay will develop its online presence that will serve as the Company's online
home and as a portfolio. Due to the geographic dispersion of potential customers, the website
will be used as the main sales tool. The QQwikpay site will feature all services along with
pertinent information.
Developing a user-friendly site is one of the primary design goals of the site allowing customers
to easily and quickly navigate around the site, finding the information that they are seeking.
5.1 Website Marketing Strategy
Because of the Company's eight (8) partnerships and the potential to add more, we will launch
on several popular websites throughout the USA, UK, and Europe.
Our next critical strategy is to implement paid and non-paid placements in search engines. For
a small fee, we will pay for potential customers to click through to our site from an
advertisement on a search engine page to the site. The non-paid method will be submission of
the URL to all major search engines, particularly Google and Yahoo, so that QQwikpay displays
when a prospective customer is searching for payment processing.
In addition to advertisements on search engines, we will advertise on billboards and with
websites that have similar customer demographics.
5.2 Development Requirements
The website will require one full-time programmer to design and develop the site with
processing integration 2 weeks.
6.0 Strategy and Implementation Summary
Emphasize high quality service
We will differentiate ourselves with SERVICE! We will establish our business offering as a clear
and viable low cost alternative for our target market.
Build a relationship-oriented business
Build long-term relationships with customers, not single-visit deals. Become their payment
processor destination of choice.
Focus on target markets
We need to focus our offerings on specific population groups as the key market segment we
should own.
Page 10
6.1 SWOT Analysis

The following SWOT Analysis captures the key strengths and weaknesses within the Company,
and describes the opportunities and threats facing the Company.
6.1.1 Strengths
Rates are considerably lower than top competitors.

QQwikpay will be the first to offer a money back offer to consumers.
High quality customer service.
6.1.2 Weaknesses
1. Large initial capital requirement.
2. Ongoing expenses related to establishing and maintaining a processing network.
3. The reluctance of merchants to change.
6.1.3 Opportunities
Businesses are selling to people across the world via multiple channels; therefore, there
is growing need of business owners to have a reliable and secure payment processing service in
place.
1. Strong relationships with alliances offering source of referrals.
6.1.4 Threats
1. Emerging and local competition from European peers and global providers.
2. Price pressure from competitors.
6.2 Competitive Edge
QQwikpay seeks to establish a competitive edge in this industry by offering competitive low
fees, high customer service and an incentive for consumers when using their bank account.
6.3 Marketing Strategy
The Company will position itself as the lower cost alternative to PayPal. With the number of
online payment processing services, it is critical that QQwikpay sets low, but competitive prices.
We will use online/offline advertising for our main source of promotion, including print ads,
billboards and social media sites like Facebook and Twitter. Ads placed in the newspaper and
business related magazines will create customer awareness.
For example, we are planning to display our name, QQwikpay with PayPal's name crossed
out underneath. In addition, we will design a print ad with QQwikpay standing over PayPal's
grave and the words, "Frozen with PayPal? QQwikpay. Unfreeze your account with QQwikpay."
Examples
Page 11
QuickTime and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
Page 12
QuickTime and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
6.3.1 Pricing Strategy

QQwikpay will not use a tiered pricing rate; instead a fixed rate of 2.25% will be applied; and
no monthly fees. With the 2.25% rate, QQwikpay expects 40-65% profit on revenue.
Processing of credit and debit cards is 1.6%, charge to the consumer 2.25%.
Bank accounts listed in our target market will cost less than 20 cents.
1% cash back on all sales, when consumers use their bank account...QQwikpay will still
earn 1% plus 10 cents or more, depending on the region.
Mobile processing is 1.12%.
Page 13
Mobile merchants will pay 2.25% a full 45 cents less than the market leaders. Our profit will
be 1.13% on total volume processed.
6.3.2 Promotion Strategy

The Company plans to use an aggressive marketing program that will include online
advertising, print ads, billboards and other platforms to generate service awareness, and value
proposition.
6.4 Sales Strategy
QQwikpay will see a significant profit from its low fixed rate offer. Even though the Company
charges a lesser rate, we foresee the company will see a profit within the first year due to its
strategic alliances offering a source of referral and online and offline advertising. Furthermore,
the company's growing advertising program will generate the growth the company needs to
survive.
6.4.1 Sales Forecast
Our sales forecast is presented in the chart and table below.
Table: Sales Forecast
Sales Forecast
Sales
Payment processing
Total Sales
Direct Cost of Sales
Internet purchase
Subtotal Direct Cost of Sales
2012
2013
2014
518,400
0
518,400
559,872
0
559,872
615,859
0
615,859
2012
8,294.4
0
0
8,294.4
2013
8,958.08
0
0
8,958.08
2014
9,853.44
0
9,853.44
9,853.44
Page 14
Chart: Sales Monthly
Sales Monthly
44,800
38,400
32,000
25,600
Payment processing
$0
19,200
12,800
6,400
Chart: Sales by Year
Sales by Year
640,000
576,000
512,000
448,000
384,000
Payment processing
320,000
$0
256,000
192,000
128,000
64,000
0
2012
2013
2014
Page 15
6.7 Strategic Alliances

We are in the process of setting up with 8 different companies in order to efficiently handle the
transactions across the globe. The Company will seek further alliances as it grows into more
countries.
7.0 Management Summary
QQwikpay's management team is made up of the principal, and two employees. Each member
has specific industry experience that will apply to their assignment.
7.1 Management Team
Chase Justin, founder and owner, is a serial entrepreneur and has been self employed since
high school. He has a business and accounting background that provides him with the
knowledge needed to manage the company's operation.
Table: Personnel
Personnel Plan
Chase Justin
Dillon Llyod
Philip Ramirez
Total People
2012
0
0
0
0
2013
0
0
0
0
2014
0
0
0
0
Total Payroll
8.0 Financial Plan

We are seeking 365k to launch QQwikpay with a 15% ownership. We are seeking these funds
through crowdfunding from www.crowdcube.com. These funds are required for the initial startup expenses.
Processing setup (48-72 hours)

Website devolvement (1-2 weeks)
Card processing integration (1-3 days)
Advertising
Our goal for the first year is .25% of PayPal's market:
5,483,870 in revenue
839,032,258 processed volume
Our projections for the first year:
521,789 in revenue
70,083,870 processed volume
Page 16
8.1 Start-up Funding

QQwikpay start-up costs are detailed above, in the Start-up Table. The following table shows
how these start-up costs will be funded by owner and investor capital.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
0
365,000
365,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
0
365,000
0
365,000
365,000
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
0
0
0
0
0
Capital
Planned Investment
Owner
Investor
Investor
Investor
Investor
Investor
Investor
Investor
Investor
Investor
Investor
Additional Investment Requirement
Total Planned Investment
0
36,500
36,500
36,500
36,500
36,500
36,500
36,500
36,500
36,500
36,500
0
365,000
Loss at Start-up (Start-up Expenses)

Total Capital
0
365,000
Total Capital and Liabilities
365,000
Total Funding
365,000
8.2 Break-even Analysis

Break-even data is presented in the chart and table below.
Page 17
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even
2,195
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
2%
2,160
Chart: Break-even Analysis
Break-even Analysis
1,920
1,280
640
0
(640)
(1,280)
(1,920)
0
768
384
1,536
1,152
2,304
1,920
3,072
2,688
3,840
3,456
4,224
8.3 Projected Profit and Loss

As the Profit and Loss table shows, the company expects to continue its steady growth in
profitability over the next three years of operations.
Page 18
Table: Profit and Loss
Pro Forma Profit and Loss

Sales
Other Costs of Sales
Total Cost of Sales
2012
518,400
8,294
0
8,294.4
2013
559,872
8,958
0
8,958
2014
615,859
9,853
0
9,853
Gross Margin
Gross Margin %
510,105
98.40%
550,913
98.40%
606,005
98.40%
Expenses
Payroll
Marketing/Promotion
Depreciation
Insurance
Payroll Taxes
Other
0
25,920
0
0
0
0
0
27,520
0
0
0
0
0
27,520
0
0
0
0
Total Operating Expenses
25,920
27,520
27,520
Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred
484,185
484,185
0
145,255
523,393
523,393
0
157,018
578,485
578,485
0
173,545
Net Profit
Net Profit/Sales
338,929
65.38%
366,375
65.44%
404,940
65.75%
Chart: Profit Monthly
Profit Monthly
25,600
19,200
12,800
6,400
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Page 19
Chart: Profit Yearly
Profit Yearly
384,000
320,000
256,000
192,000
128,000
64,000
0
2012
2013
2014
Chart: Gross Margin Monthly
Gross Margin Monthly

44,800
38,400
32,000
25,600
19,200
12,800
6,400
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Page 20
Chart: Gross Margin Yearly
Gross Margin Yearly
640,000
576,000
512,000
448,000
384,000
320,000
256,000
192,000
128,000
64,000
0
2012
2013
2014
8.4 Projected Cash Flow

The cash flow projection shows that provisions for ongoing expenses are adequate to meet the
needs of the company as the business generates sufficient cash flow to support operations.
Page 21
Table: Cash Flow
Pro Forma Cash Flow

2012
2013
2014
Cash from Operations

Cash Sales
Subtotal Cash from Operations
518,400
518,400
559,872
559,872
615,859
615,859
Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
0
0
0
0
0
0
365,000
838,400
0
0
0
0
0
0
0
559,872
0
0
0
0
0
0
0
615,859
2012
2013
2014
Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
0
165,012
165,012
0
192,049
192,049
0
209,487
209,487
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
0
0
0
0
0
0
0
165,012
0
0
0
0
0
0
0
192,049
0
0
0
0
0
0
0
209,487
Net Cash Flow

Cash Balance
673,387
673,387
367,822
1,361,209
406,371
1,767,581
Cash Received
Expenditures
Page 22
Chart: Cash
Cash
1,024,000
896,000
768,000
640,000
Net Cash Flow

512,000
Cash Balance
384,000
256,000
128,000
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
8.5 Projected Balance Sheet

The following table presents the Balance Sheet for QQwikpay.
Page 23
Table: Balance Sheet
Pro Forma Balance Sheet

2012
2013
2014
Current Assets
Cash
Total Current Assets
993,387
0
993,387
1,361,209
0
1,361,209
1,767,581
0
1,767,581
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
0
0
0
993,387
0
0
0
1,361,209
0
0
0
1,767,581
2012
2013
2014
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
14,457
0
0
14,457
15,904
0
0
15,904
17,335
0
0
17,335
Total Liabilities
0
14,457
0
15,904
0
17,335
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
640,000
0
338,929
978,929
993,387
640,000
338,929
366,375
1,345,305
1,361,209
640,000
705,305
404,940.
1,750,245
1,767,581
Net Worth
978,929
1,345,305
1,750,245
Assets
8.6 The Investment Offering

QQwikpay is offering 15% ownership of the company an outside investor with an
investment of 365,000 in investment capital. This investor will share in the annual
dividends.
Page 24
Table: Investment Offering
Investment Offering
Proposed Year:
Valuation, Investment, Shares
Investment Amount
Equity Share Offering Percentage
Valuation
Investor Exit Payout
Investor Years Until Exit
Investor IRR
Share Ownership
Founders' Shares
Stock Split Multiple
Stock Options Issued
Investor Shares Issued
Price per share
Options Holders' Shares
Year 1 Investors' Shares
Total Shares Outstanding
Equity Ownership Percentage
Founders' Equity
Option Holders' Equity
Year 1 Investors' Equity
Total Equity
Investors' Equity
Founders' & Employees' Equity
Seed
1
Round 1
2
Round 2
3
365,000
15%
2,433,333
4,024,800
6
48.56%
0
0.00%
0
0
5
0.00%
0
0.00%
0
0
4
0.00%
Year 1
10,000
Year 2
10,000
0
0
0
0.00
0
1,429
0
Year 3
10,000
0
0
0
0.00
0
1,429
0
0
11,429
3,762.50
0
1,429
0
0
11,429
Year 3
85.00%
0.00%
15.0%
0.00%
0.00%
100.00%
15.0%
85.0%
Year 7
85.0%
0.00%
15.0%
0.00%
0.00%
100.00%
15.0%
85.0%
0
1,429
244.00
0
1,429
11,429
11,429
Year 1
85.00%
0.00%
15.0%
Year 2
85.00%
0.00%
15.0%
0.00%
100.00%
15.0%
85.0%
100.00%
15.0%
85.0%
Exit
7
43,000,000
Year 7
10,000
0
0
8.7 Use of Funds

The following table shows our Use of Funds for the requested investment. The money will cover
both start-up expenses, and a cash cushion to cover the varying personnel and marketing costs
of the first year.
Table: Use of Funds
Use of Funds
Use
Processing setup
Website development
Card processing integration
Advertising
Total
Amount
243200
41600
7680
27520
365000
Page 25
8.8 Payback
As the table below shows, the initial investor will find that the payback period on that
investment will be five years. Our desire is to find an investor who recognizes the potential for
long-term gain.
Table: Payback
Payback
Projected Payback Calculation

Investment
365,000
Investment
Cash Returns by Year
Combination as Income Stream
Cumulative Net Cash Flow to
Investors
Payback Period
(365,000)
(365,000)
2012
2013
2014
2015
2016
73,000
73,000
(292,000)
73,000
73,000
(219,000)
73,000
73,000
(146,000)
73,000
73,000
(73,000)
73,000
73,000
0
5 years
Chart: Payback Period
Payback Period
320,000
256,000
192,000
128,000
64,000
0
(64,000)
(128,000)
(192,000)
(256,000)
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Page 26
Appendix
Table: Sales Forecast
Sales Forecast
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Sales
Payment processing
Total Sales
Internet purchase
Subtotal Direct Cost of Sales
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
43,200
Dec
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
Page 1
Appendix
Table: Personnel
Personnel Plan
Jan
Feb
Mar
Apr
May
Jun
Aug
Sep
Oct
Nov
Dec
Chase Justin
Dillon Llyod
Philip Ramirez
Total People
Total Payroll
Jul
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss

Jan
Sales
Other Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
691
42,508
42,508
42,508
42,508
42,508
42,508
42,508
42,508
42,508
42,508
42,508
42,508
98.40%
98.40%
98.40%
98.40%
98.40%
98.40%
98.40%
98.40%
98.40%
98.40%
98.40%
98.40%
Expenses
Payroll
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
Depreciation
Insurance
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Operating Expenses
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
2,160
Profit Before Interest and

Taxes
EBITDA
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
40,348
12,104
12,104
12,104
12,104
12,104
12,104
12,104
12,104
12,104
12,104
12,104
12,104
28,244
28,244
28,244
28,244
28,244
28,244
28,244
28,244
28,244
28,244
28,244
28,244
65.38%
65.38%
65.38%
65.38%
65.38%
65.38%
65.38%
65.38%
65.38%
65.38%
65.38%
65.38%
Marketing/Promotion
Payroll Taxes
Other
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
15%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cash Received
Cash from Operations
Cash Sales
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
Subtotal Cash from Operations
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
Additional Cash Received

Sales Tax, VAT, HST/GST
Received
New Current Borrowing
0.00%
New Other Liabilities (interestfree)

New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
365,000
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
43,200
Subtotal Cash Received

Expenditures
392,520
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Expenditures from Operations

Cash Spending
Bill Payments
498
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
Subtotal Spent on Operations
498
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
Sales Tax, VAT, HST/GST Paid

Out
Principal Repayment of Current
Borrowing
Other Liabilities Principal
Repayment
Long-term Liabilities Principal
Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
498
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
14,956
Additional Cash Spent
Subtotal Cash Spent
Page 4
Appendix
Net Cash Flow
362,701
18,076
18,076
18,076
18,076
18,076
18,076
18,076
18,076
18,076
18,076
18,076
Cash Balance
682,701.
44
700,777.
44
718,853.
44
736,929.
44
755,005.
44
773,081.
44
791,157.
44
809,233.
44
827,309.
44
845,385.
44
863,461.
44
881,537.
44
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
682,701.
44
0
682,701.
44
700,777.
44
0
700,777.
44
718,853.
44
0
718,853.
44
736,929.
44
0
736,929.
44
755,005.
44
0
755,005.
44
773,081.
44
0
773,081.
44
791,157.
44
0
791,157.
44
809,233.
44
0
809,233.
44
827,309.
44
0
827,309.
44
845,385.
44
0
845,385.
44
863,461.
44
0
863,461.
44
881,537.
44
0
881,537.
44
0
0
0
682,701.
44
0
0
0
700,777.
44
0
0
0
718,853.
44
0
0
0
736,929.
44
0
0
0
755,005.
44
0
0
0
773,081.
44
0
0
0
791,157.
44
0
0
0
809,233.
44
0
0
0
827,309.
44
0
0
0
845,385.
44
0
0
0
863,461.
44
0
0
0
881,537.
44
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Starting
Balances
Current Assets
Cash
365,000

Total Current Assets
0
365,000
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
0
0
0
365,000

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
0
0
0
0
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
14,457
0
0
14,457
Total Liabilities
0
0
0
14,457
0
14,457
0
14,457
0
14,457
0
14,457
0
14,457
0
14,457
0
14,457
0
14,457
0
14,457
0
14,457
0
14,457
Paid-in Capital
Retained Earnings
Earnings
365,000
0
0
640,000
0
18,076
640,000
0
84,732.8
Total Capital
365,000
651,568
Total Liabilities and Capital
365,000
682,701.
44
640,000
0
56,488.3
2
696,488.
32
710,945.
92
724,732.
8
739,189.
76
640,000
0
112,976.
64
752,976.
64
767,434.
24
640,000
0
141,221.
12
781,221.
12
795,678.
08
640,000
0
169,464.
96
809,464.
96
823,922.
56
640,000
0
197,709.
44
837,709.
44
852,166.
4
640,000
0
225,953.
28
865,953.
28
880,410.
88
640,000
0
254,197.
76
894,197.
76
908,654.
72
640,000
0
282,441.
6
922,441.
6
936,899.
2
640,000
0
310,686.
08
950,686.
08
965,143.
04
640,000
0
338,929.
92
978,929.
92
993,387.
52
Net Worth
365,000
651,568
696,488
724,732
752,976
781,221
809,464
837,709
865,953
894,197
922,441
950,686
978,929
Page 6

QQwikpay Business Plan - v1

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

QQwikpay Business Plan - v1

Uploaded by

Copyright:

Available Formats

Business plan and summary

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary...............................................................................................................................1

1.0 Executive Summary