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`BIG EASY TECHNOLOGIES, L.L.C.
`
`Business Plan
`
`It contains
`This Business Plan is the property of Big Easy Technologies, L.L.C.
`confidential information proprietary to Big Easy Technologies and its contents ‘
`may not be reproduced or distributed, in part or in whole, without the express
`written perniission of the officers of Big Easy Technologies. This copy remains
`the property of Big Easy Technologies and must be returned upon request.
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`Version A
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`Big Easy Technologies
`Business Plan
`
`Table of Contents
`
`Section
`
`Page
`
`Statement of Intent ....................
`
`......................................
`
`......................................
`
`1
`
`Vision and Mission ....
`....
`Vision Statement ......
`Mission Statement........... .
`
`.......................................... .. 2
`.....
`.......................................................................... .. 2
`..............
`
`; ......................................................................................... .. 2
`
`3
`Summary of the
`......
`...........................,............... .. 3
`Business Concept ........................................
`.................
`
`The Individual User’s Perspective .......
`.................................................................. 3
`The Advertiser’s Perspective .....................
`..............
`4
`The Corporate User’s Perspective ......................
`.................................................... .. 5
`The Software Developer’s Perspective .................
`...................................................... 7
`The Big Easy Perspective ..................
`.......................
`8
`Products and Services .............................
`............................................................. .. 9
`Patents........ ....
`.............
`....................................... .. 9
`
`Initial Products .....................................
`
`.............. .. ........................
`
`....
`
`................... .. 9
`
`CANDiBAR Client: End User Functionality ......................................................... 9
`CANDi Server: Advertiser Services ......
`.............. .. 10
`
`.............................................. .. 11
`BeKeeper and the Bee Icon .................................
`Initial Revenue Sources ........
`.........
`................................................................. .. 12
`
`12
`........
`...................... .;........
`Banner Advertising. .................
`BeClassifieds.com Advertising ...............
`....................................................... .. 12
`Advertisers’ Reports...........
`............................
`......................... .. 12
`Pre—insta1led Material ......
`...............................................................
`13
`
`................................................ .. 13
`BeKeeper/Bee Icon Creation........................
`.................... .. 13
`BeLibrary
`Additional Products and Revenue Sources......... ........................................................ .; 13
`
`CANDi Lire and BcCard Deluxe
`
`................................................................. .. 13
`
`14
`....
`......
`............
`Icon Deve1oper.............
`Enhancements to the CANDIBAR Itself ...... .., ................................................... .. 14
`AffinityNet ..........
`...............
`.........................
`..................................
`...... .; 14
`Potential Future Products and Revenue Sources ....
`...................................
`.... .. 15
`
`.......................................................... .. 17
`..............................
`Marketing and Sales ..........
`Positioning of Products and Services................. ..........
`..........
`.............................. .. 17
`Marketing Strategy................
`..............................................................................;.... .. 18
`Market Identification .............................
`............................... .._. ................. .. 18 _
`Innovators ...................
`18
`
`................................................ .. 19
`.......................
`Early Adopters .....................
`.
`.
`Early Majority .................... ..,....................................
`...................................... .. 19
`Late. Majority ...........................................................................
`....
`19
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`Big Easy Technologies
`Business Plan
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`...................................................................................................... .. 19
`Laggards .....
`Marketing for Initial Product Roll—Out .................. ., ...........................
`20
`Innovators and Early Adopters ......................
`....................................................... .. 20
`Low-HangingFruit........................................................... .. 20
`Communication and Branding .......................
`..................................... .; .............. 20
`Early Majority..........., ............................................................................................. .. 21
`MainstreamPragmatism .......... .. 21
`Initial Target Markets in the Early Majority Category ....................................... .. 22
`Owning a Market .............................., ................................................................. .. 23
`Late Majority
`23
`Organization and Management .............................................................................
`....... .. 25
`Processes .. .......................
`.......................
`....................................
`........................ 25
`Partners ......... .,..................................
`.......................
`....
`.................
`25
`People........... ...............................................
`..................
`....................................... 26
`Timeline and Milestones .....................................................................
`......................... .. 28
`
`Financial Plan ......... ., ....................................................................................................... .. 29
`Revenue Projections and Pro Forma Income Statement ............................................. .. 29
`Revenue Targets and Monitoring............................,..............
`......................... .. 29
`Structure and Capitalization .....
`........................................
`............................
`30
`Existing Stmcture and Capitalization
`.........................................
`.........
`....... 30
`Possible Future Form of Business andCapital 31
`APPENDIX
`............................................................................................................. .. 1
`
`\
`‘
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`.........................................
`Timeline and Milestone Project Plan ..........
`APPENDIX B .............
`.....................................
`..................
`Pro Forma Financial Forecasts .........
`....................
`.......................................
`
`................ .. 1
`2
`......... .. 2
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`Appendix
`Terminology. ............
`
`.................. .; ............................ .; ............................. .. 3
`...............................................................................
`............. .. 3
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`Big Easy Technologies
`Business Plan
`
`Statement of Intent
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`This Business Plan documents the activities to be undertaken to position the
`company, financially and organizationally, to take advantage of the almost
`limitless opportunities provided by the CANDi System technology and
`applicationarchitecture for development of new products, services, and add-on
`features. Its primary purpose is to serve as a guide to the management of Big Easy
`Technology as the company moves from the product development stage into the
`initial start up and organization of an on-going operation. To this end, this
`Business Plan contains many projections, assumptions, and formulations of
`intention, all made in good faith and with the hope of being as realistic and
`accurate as possible. However, no one can guarantee the future, and no statement
`made herein. is to be construed as any sort of guarantee or warranty of service,
`deliverable, or return on investment.
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`Big Easy Technologies
`Business Plan
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`Vision and Mission
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`Vision Statement
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`The genius of CANDi technology is software that enables users to connect into the
`ubiquitous network, just as cordless phones today connect into the ubiquitous dial tone.
`CANDi technology from Big Easy Technologies will allow users to instantly connect the
`broadest range of electronic devices—computers, printers, disk drives, phones, cameras,
`appliances, software and services- into a universal network.
`
`“We will be the dominant interface between end users and their data, anywhere,
`anytime, any place, and from any device.”
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`-
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`We will position ourselves as our customers’ primary medium for distribution,
`management, and relocation of information technologies, regardless of what new or
`expanded technologies may appear.
`'
`
`Mission Statement
`
`Big Easy Technologies is a developer of personalized products and services that deliver
`simplified technologies for both new and experienced users. Our efforts will be guided
`by two basic concepts: if the technology has a big enough market to make the product a
`financial success, and if we can create a technology that is easy for the customer to use »
`and understand, we will be successful.
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`Big Easy Technologies
`Business Plan
`
`Summary of the Business
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`Business Concept
`
`The Internet has expanded rapidly in the past several years and growth is expected to
`continue at a strong pace for the foreseeable future. This dramatic growth has created a
`problem in which users of the Internet find it increasingly difficult to locate items of
`interest. Search engines provided adequate solutions in the early years, but since the
`Internet now boasts of over 40 million Web sites, Search Engine Technology has found it
`difficult to keep up with growing demand. In a recent study, Search Engines could
`account for only 13% of Web sites available.
`It is not unusual to request a search and
`receive over two millionresponses. This is time-consuming and not cost effective for
`consumer and advertiser alike.
`
`The increasing inadequacy of Search Engine Technology offers excellent opportunities
`for Big Easy Technologies within this market. We intend to address the needs of users in
`four major areas. They are:
`
`_ The Individual User of the Internet
`The Advertiser on the Internet A
`The Corporate User of the lntranetflnternet/Extranet
`The Software Developer on the Internet.
`
`A
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`We will address each of these areas by providing a better navigationtool -4 one
`customized by the user so that it coordinates converging technologies and creates one
`simple, easy-to-use interface that travels seamlessly from computer to computer.
`
`The Individual User’s Perspective
`
`Big Easy Technologies was organized to develop and launch a truly unique product for
`the desktop, called the CANDiBAR (Consumer Access to Networks, Desktops, and the
`Interllntranet). This innovative and unique software allows the user to save, organize,
`and access favorite Web sites, documents, and applications in an easy-to-use, icon-based
`control bar. Users can create customized rows of icons (called Channel Rows) by using
`simple drag-and—drop techniques. Users can also add Channel Rows provided by Web
`A Partners. For example, professional associations, such as the American Medical
`Association or the American Bar Association, could offer pre-selected rows of icons
`containing information considered useful to their membership. Large and complex Web
`sites, such as Amazoneom or eBay, could provide their users with Channel Rows
`representing subsectionsof the site or categories of products. The CANDiBAR also
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`Big Easy Technologies
`Business Plan
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`provides an address book and features that make it easy to inform others of updates and
`changes.
`
`The client software resides on an individual’s PC, and enables the user to access his
`personalized information stored on the CANDi Server. This use of client—server
`architecture provides a very important benefit to the user:
`the personalized CANDiBAR
`can be accessed from anywhere! Provided a PC has been enabled with the client-side
`. software and can access the CANDi Server over the Internet, the same CANDiBAR,
`complete with address book, personal documents and favorite sites, is available at home,
`at work, at school, at a client’s, or abroad. No longer will the user have to carry around
`his documents on paper, diskettes or CD3, nor have to worry about “synching up” his
`home address book with the work version, or to fumble around in the evening trying to
`relocate a site that he previously found and bookmarked at work.
`
`Big Easy Technologies is committed to allowing its customers to keep their private
`affairs private. Software that tracks demographic data and usage patterns does not
`identify individual users. The user’s CANDi password is encrypted using the RSA public
`key encryption algorithm in a one-way encryption; the password is never present in clear
`text and cannot be decrypted. Big Easy plans to use SSL (Secure Sockets Layer) to
`encrypt credit card numbers, and Java encryption to encrypt sensitive information
`traveling between the client and server. Individual users’ information stored on CANDi
`Servers can be protected in storage with both passwords and encryption.
`
`Big Easy Technologies is committed to providing software that is easy to use. Care has
`been taken to use familiar, user-friendly tools and features. ‘On-line help is available.
`However, if there are additional questions, the Customer Service Center is available
`twenty-four hours a day to assist users.
`’
`
`The CANDiBAR and support from the Customer Service Center are offered free of
`charge to individual customers, another aspect of the product that should prove extremely
`appealing.
`
`The Advertiser’s Perspective
`
`Big Easy Technologies offers better and more focused advertising services due to the
`capabilities of the CANDiBAR to capture information and deliver advertising material to
`users. Advertiser services include the capture and maintenance of advertiser registration
`information, the management of advertiser account status, the reception of advertising
`material, the presentation and printing of reports of user demographic data, and the
`management of targeting designations.
`
`The CANDiBAR is independent of any browser software or operating system. Its
`audience, therefore, is not limited to a predefined subset of all users connecting to the
`Internet; its potential audience is all users of the Internet. Advertisers will not have to
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`Big Easy Technologies
`Business Plan
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`predict future market shares of various technologies in order to approximate the size of
`their audience.
`
`Banner advertising on the CANDiBAR is visible whether or not the user is connected to
`the Internet — the only product known to date that offers this feature. Because the
`CANDiBAR client is independent of the browser software, it resides on the desktop and
`is active even if the browser is not connected to the Internet.
`I
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`Advertising on the CANDiBAR is intertwined with the user; it reflects his likes and
`dislikes and stays with him as he moves from site and site and from application to
`application. It is a much more personal, less intrusive approach than the disjointed,
`“targeted” banner displays that currently hit the Internet user.
`
`The CANDiBAR can generate higlzlyfocused demographic reports. It can monitor and
`store the number of visits and duration of visits to a particular site, as well as store the
`users’ favorite sites and applications. It can also collect information about activity on the _
`desktop even when the user is not connected to the Internet. Because there are features of
`the CANDiBAR that make it useful at all times, not just when the user is connected to the
`Internet, the CANDiBAR should remain open during the entire time the desktop is in use.
`
`The Corporate User’s Perspective
`
`The CANDi System has an architecture that makes it attractive to more than just
`individuals and advertisers. The CANDi System architecture is ideal for providing
`document sharing, secure messaging, broadcast messaging, file sharing, and encryption.
`Corporations need this functionality, but have been reluctant to invest in the necessary
`infrastructure for many reasons.
`
`1.
`
`Installing client software on every corporate desktop is expensive and can be difficult;
`the logistics of getting corporate standard software on all laptops and home systems
`of mobile workers are nightmarish.
`
`2. Even if a connection, or virtual connection, is easily established via Internet, there is
`still the requirement to have compatible software on each end of the connection. For
`example, you must have the Lotus Notes client to connect to the Notes server to share
`documents. This has two undesirable effects: first, it forces the corporation to choose
`one standard software for each business application; and, second, those within the
`corporation may not communicate with others who do not share the corporate
`V standard software, As a result, many corporations have built a pseudo-
`lntranet/Extranet out of electronic mail — an unstable and insecure solution. V
`
`3.
`
`If encryption is desired to maintain confidentiality and protect the corporation, then
`the requirement to have identical software on each end of the connection gives rise to
`another set of problems. If the encryption capability is buried within each
`application, so each user ends up with several encryption keys, one for each
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`Big Easy Technologies
`Business Plan
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`In this instance, the difficulty and expense of key management increases
`application.
`with the number of keys that must be maintained. Alternatively, the corporation can
`rely on “stand-alone” encryption technology (i.e., independent of any one
`application), such as a Kerberos or DCE server or a Certificate Authority. In this
`instance, the corporation can either maintain this infrastructure in-house or outsource
`a significant piece of its security architecture; both alternatives can be risky,
`expensive, and — worst of all ~ ineffective if not properly managed.
`
`- 4. Even if the corporation supplies a connection and compatible software on each end,
`users still have to learn many different kinds of programs. This also proves
`expensive, as corporations establish and maintain on-going user training and user
`support functions.
`
`The CANDi System architecture, eventual ubiquity, and ease of use position Big Easy
`Technologies to offer a cost-effective solution to small- to medium- to large corporations.
`The CANDiBAR is o_n_e interface for most frequently needed services: broadcast
`messaging, e-mail, file transfer, document sharing, and encryption. The CANDi System
`can do for all these services what Adobe did for document reading.
`
`Yet because it is interactive. the CANDiBAR can do so much more than display
`documents. It can be used by any organization or membership to create an Intranet or
`Extranet, or to facilitate communication and navigation when using the Internet.
`
`The Bee icon can be used to great effect by corporate commercial enterprises to help
`customers navigate Web sites and provide easy access to favorite sites. Hyperlinks,
`Channel Rows, and documents can be pre-loaded in the CANDiBAR, thus reaching
`millions of potential customers. Nonprofit organizations can use the same features to
`disseminate information to selected members or to the Internet community at large.
`
`The CANDi System can be used to create a “virtual Intranet” for groups that do not share
`a common server, or to maximize use for corporations that already have an established
`Intranet. It can provide software distribution and document shaiing capabilities within a
`common, easy—t0-use format. The Bee icon can be used to organize corporate Web pages
`and facilitate navigation. The CANDiBAR can display messages to employees or
`members.
`
`The CANDi System can also be used to create an Extranet, a connection between two
`different entities. Most organizations do not need a large, sophisticated Extranet, and do
`not have the monetary or personnel resources to build one. The most commonly sought
`connections between organizations are for the purpose of messaging, document sharing,
`and file transfer. Through the CANDi System, Big Easy Technologies can provide these
`services securely, affordably, and with very little lead time.
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`Big Easy Technologies
`Business Plan
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`A The Software Developer’s Perspective _
`
`The CANDiBAR client is written in Java, and has its own Java virtual machine; it also
`makes full use of the client-server architectural model. Because of this, it is possible for
`software developers to use the CANDi System to deliver software and key operating
`components to the desktop. Its large user base will make it the ideal distribution
`mechanism for developers seeking a connection to the vast population of Internet users.
`
`The CANDi System offers the following mechanisms for software distribution:
`
`0 The CANDiBAR is “self-updating,” meaning, that when it is opened, the Java
`code checks to make sure that the latest version of the CANDiBAR is running; if
`not, then the CANDiBAR is updated to the latest version. All of this happens
`automatically. This capability could be extended to all applications loaded into a
`user’s CANDiBAR. Any application stored in the CANDiBAR would then also
`become “self—updating.” This offers additional incentive to both the user and the
`software distributor to make use of the CANDiBAR to store favorite applications.
`
`The CANDi System must, of necessity, effect a file transfer from the CANDi
`Server to the user’s PC. This same file transfer capability could be used to deliver
`software from the beLibrary. Alternatively, application could be included in the
`image load of the CANDiBAR itself, and would install “automatically” along
`with the CANDIBAR. This latter, it is expected, would be reserved to strategic
`partners of Big Easy Technologies.
`
`Banner advertisements within the CANDiBAR could be used to offer or sell
`
`software. A mouse click on the banner could link to the site containing the
`software. Alternatively, clicking on the banner could initiate the software install,
`either from the software distributor’s site or from the CANDi Server.
`e
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`The CANDiBAR could beusecl by software developers to access an object library
`stored on the CANDi Server. Developers could “carry” their toolkit of frequently
`used code around in the CANDiBAR, thus making it easier to work from any
`location.
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`Big Easy Technologies
`Business Plan
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`The Big Easy Perspective
`
`The basic strategy of Big Easy Technologies is very straightforward.
`
`1. We have already developed a high-quality, easy-to-use product that provides
`functionality for which millions of people have an increasing need, a need that
`is not currently being met by any other product; and provides very highly
`' focused data on the activities and preferences of those millions of people, both
`on and off of the Internet.
`»
`
`2. Ensure the rapid and extensive distribution of this product. Options available
`include free downloads from Web sites, agreements with original equipment
`manufacturers to pre-load the CANDiBAR on new computers, promotion by
`ISP’s as a service enhancement for their customers, and distribution through
`Web partners and affinity groups.
`
`3. Use the extensive customer base and detailed demographics to sell advertising .
`services and generate an immediate revenue base.
`
`4. Develop a strong market presence and a solid reputation, based upon the
`ubiquity of our product and they way we treat our customers and business
`partners.
`
`5. Position the company, financially and organizationally, to take advantage of
`the almost limitless opportunities provided by the CANDi System technology
`and application architecture for development of new products, services, and
`- add-on features.
`
`Important to our success is our ability to develop new products and services that closely
`match our customers’ needs. By monitoring the rich information provided by users of
`~ our first product, we will be able to follow a systematic process to create new and
`improve existing products and services that (unlike our potential competitors) will be sure
`to meet our customers’ needs. To initiate ideas for new products, we first begin with
`usage and input information from our current customers: a detailed study of what
`products or services have been most successful, focus groups of customer's needs, and
`conversations with potential buyers about what they like and dislike about current
`' products or services. We then will develop a product or service concept, and discuss and ‘
`develop it. All this must be done with the utmost urgency. The Internet environment has
`caused typical business processes, such as development and delivery, to strive for quicker
`completion than ever before. Current Internet business timelines suggest that standard
`two year‘ business processes are condensed into six month schedules.
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`tt6§’)9I@§§t§;°-fibrary.ucsredu/tid/nbn46aoo/pdr
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`- 8 —
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`LOW.09L89
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`May 8, 2000
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`/Big Easy Technologies
`
`Business Plan ‘
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`Products and Services
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`Patents
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`Big Easy Technologies views its novel technologies as important to its ability to
`successfully market new products and services, and recognizes the importance of
`excluding others from copying and using this technologies without permission. Our
`ability to form collaborations and alliances with other companies will be enhanced by the
`possession of a strong patent portfolio.
`V
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`Currently, Big Easy has three pending U.S. patent applications. Two of those
`applications relate to the CANDiBAR product, and the other application relates to its BE
`Card Storage System technology. Foreign patent applications have been filed for all of
`those applications.
`.
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`Initial Products
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`Big Easy Technologies will begin operation by offering seven productslservices, the
`CANDiBAR(free version), CANDiBAR “lite”(purchased version), beLibrary, beDex,
`Targeted Banner Advertising, beClassified Advertising, and the BeKeeper, that will form
`the building blocks for an almost unlimited number of future software products and
`services.
`—
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`CANDiBAR Client: End User Functionality
`
`Big Easy Technology has created the CANDiBAR, innovative navigation software that
`allows the user to save and organize sites in an intuitive, icon—based control bar. The
`features having the highest attraction for PC users are its functionality as a desktop
`organizer for applications and bookmarks, an address-book that can be accessed from any
`PC, and its ability to provide easy access to files stored in the beLibrary.
`
`The client software is written in the Java programming language, and it accesses an-
`Oracle database on Big Easy Technology servers. The user’s CANDiBAR is uploaded to
`Big Easy Technology’s server and can be downloaded by the user, online, at any
`computer. When the user first signs on to the CANDiBAR, all of the applications and
`favorite Web sites stored on the user’s desktop or in the user’s browser will be
`immediately uploaded to the CANDiBAR server. The user can then organize the sites
`and application in rows of icons which represent an application, a site, or category of
`sites. The user can take this navigation tool with him to any computer by simply signing
`onto the CANDiBAR server and downloading his CANDiBAR.
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`Version A (Draft)
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`-
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`- 9 -,
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`May 8, 2000
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`3011OQLSS
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`RJRO00O001161000297
`télfifiaa ggfibrary.ucstedu/tid/nbn46ao0/pdf
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`Big Easy Technologies
`Business Plan
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`Either standard or custom icons can be used to label files of applications and bookmarks.
`The process is truly user friendly, providing familiar alternative methods for creating and
`organizing sites, such as by dragging and dropping icons or manipulating them through a
`menu of options contained within a toolbar. Each client PC can customize an individual
`profile and desktop design that is password protected and available to that user from any
`PC equipped with the CANDiBAR system and an Internet connection. Thus, the user’s
`entire profile, address book, documents, and collection of Internet bookmarks are
`available in exactly the same format at work, at home, at an airport lounge,. . ...anywhere!
`People who use multiple PC’ s at work, at home, and at other locations can use the same
`desktop wherever they sign on, without owning or carrying a laptop computer. This
`feature should be extremely attractive to the growing number of mobile workers.
`
`'
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`The CANDiBAR has two other features designed to simplify the life of the mobile user,
`the beLibrary and the beDex. Each user will be provided with some-storage space on Big
`Easy Technology’ s servers. Files stored in the beLibrary can be accessed from any
`CANDiBAR and can be shared among other CANDiBAR users. Additional space in the
`beLibrary' can be purchased, if desired.
`’
`
`The CANDiBAR has a built-in address book for storing detailed contact information.
`Each user’s beDex is stored on the server, and can be accessed or shared by t