11. Financial Analysis
For the first 12 months we are looking at a cost of about £200,000
a month. Whilst a lot of thought has gone into calculating this
figure, please allow a 25% margin for unknown complications. This does not
include VIRGIN’s Management.
By 12 months Sienna will be fully released and we will have 135 partners
integrated to the network. It will take new partners about 10 months to
reach potential.
Once partners reach potential each has been recorded as
earning £2,000 a month, an easily achievable target.
When partners make £2,000 a month we make £1,000.
Partners start generating income in month 8.
Please note that the financials do not factor VAT or TAX, this aside....
At month 17 Sienna becomes profitable, at this time an investment of around
£3,350,000 will have been made.
At Month 28 Sienna is in the black
At Month 60 Sienna’s pre tax profit
for the niche travel industry is £122,936,852
The above calculates the growth of new business who connect to the network
by sales people and researchers, who will be contacting the companies
that we feel would most benefit from connecting to Sienna.
It does not account for residual money made by the Flagship websites we
create for VIRGIN HOLIDAY’s or the Conde Nast Traveller magazine
distribution promoting these Flagship websites. It’s quite possible
this will make VIRGIN HOLIDAY’s similar figures.
Other Industries.
Sienna can be easily adapted to other industries. Within the VIRGIN family
alone there are over 300 companies specialising in different industries.
Not all industries will be as successful as the travel industry but many
will. I’m sure given a think tank we could come up with 100 other
suitable business types. If all performed as well as the travel industry
we would be looking at £12,000,000,000
for other small and medium business.
Big Business
The Financial Forecast only accounts for small and small to medium business,
but as the network grows we can offer existing brands completely new wings
to their company MARKS & SPENSOR TRAVEL for interest.
Big Business and known brands will generate
similar, if not greater revenue.
SIENNA SHOPPING
When the time is right and suppliers entrenched in Sienna it will be time
to open Sienna to the public, this may take 18 months maybe 3 years, either
way it’s difficult for me to estimate
profit but I’d hope for a similar figure as Big Business.
All
told Sienna’s 5 years profits should reach £36,000,000,000.
|