The Business
Our main source of revenue will come from users puchasing access to a professional development resource. Below is a mock-up of the user experience. This is an example of a free professional development resource that educators may choose to complete. The average cost of access to professional development resources is projected to be $15.00.
At TeachEd, we want to provide free and pay-for professional development resources to our users. Not only will we create content in-house (providing both free and pay-for content), we are also an open marketplace where educators can buy and sell professional development content. This will be the largest stream of revenue for TeachEd. The breakdown of costs and revenue for our creators is below.
Our Investor Request
As we are just a start up, as soon as our website is fully functional and ready to go, with the marketing strategies in place, we expect to have a base following on Instagram of 100,000 followers, with this number slowly increasing. Research shows that 25% of followers will purchase from the site. Therefore, we expect around 24,000 users by 6 months of the site being fully functional, with that number steadily increasing. With $15.00 as the average cost per professional development resource for buyers, we expect a gross income of $360,000 within the first 6 months (assuming each user purchases access to 1 averaged priced resource, but the expectation is that they will be return customers).
Based on these statistics, our company valuation is $700,000. We are asking for a $140,000 investment for 20% equity in TeachEd. The investment will be used towards the acquisition of a website developer and marketing costs associated with the launch of the site.