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.