TUNNEL VISION

Business Plan

Content

1. Executive summary
2. Company:
2.1 Objectives
2.2 Mission
2.3 Competitive Strategies
2.4 Growth Strategy
3. Management
4. Marketing Plan:
4.1 SWOT
4.2 The market
4.3 Current competitive situation
4.4 Threats, Opportunities & Key issues
4.5 Disadvantages or threats of the Tunnel Advertising
4.6 Target Market/Key Segments
4.7 Objectives
4.8 Marketing Strategy
5. Operations
5.1 Action Programs
5.2 Controls
6. Financial Summery
6.1 Start up costs
6.2 Recurring costs
6.3 Sales Forecast
6.4 Sales Forecast for 2011
6.5 Sales Forecast for 2012
6.6 Sales Forecast for 2013
6.7 Income Statement
6.8 Balance Sheet
6.9 Cash Flow

Appendices
1. Executive Summary
In recent years, technology and the digital age have helped revolutionize the advertising
industry. LED flat screens, blue tooth, and digital technologies have replaced ink and
paper as the primary resource platforms for companies to advertise through. From
massive billboard sized screens along highways, to small motion censored advertisements
along busy city streets, digital imaging advertisements can be seen all over the world. One
area of our city that is the most heavily bombarded with advertisements is on the walls of
our subways and busses, and along the walls of the platforms. One area that has not been
taken advantage of however is that of the subway tunnels. There are kilometers of unused
space that is viewed by millions of commuters everyday along those subway tunnel walls,
and it is time to join the rest of the world in maximizing the value of this advertising
medium. That is where our company Tunnel Vision comes in. All over the world, subway
tunnels have been transformed into a platform for digital advertisements. From Tokyo to
New York, commuters are shown a type of commercial through the windows of the
subway as hundreds of screens lining the tunnel give passengers the perception that they
are watching one screen, this is done by having the screens pre programmed to the timing
of the train. The images displayed on the screens are timed to coincide with the passing
train to give the perception of a video ad to the viewer. The screens are connected
wirelessly to an external data centre that can managed remotely from anywhere, allowing
the advertiser to update, change, fix or alter the campaign without ever having to actually
go into the tunnels. This also allows for different videos and advertisements to be shown
at different times, in accordance with the busier commuting times, or the various needs of
the businesses that want to advertise. Now with the emergence of blue tooth technology
as a popular norm for cell phone users, the technology can be combined offering
commuters sound along with the images they see in the tunnel, and the possibilities for
advertisements become endless. Signs placed along the entrances to subways, or radio
adds can inform passengers to turn on their blue tooth as they enter the tunnel, and look
for the new tunnel commercials for example; Tim Hortons, as they enter young and Bloor
station. Raffles and prizes can be given away, for example every 100th rider may receive a
coupon in the form of a text message on their cell phone for a free Tim Hortons Coffee.
The possibilities with this technology and this concept are endless for advertisers, and
businesses from all over the world will fight for the most populated subway stations, and
the busiest time slots. Toronto and the TTC need to join the rest of the world in utilizing
available technology, and advertising properties, to stay at the forefront of the advertising
world.

2. Company
As a brand new innovative company we will be following an ethical business practice, by
creating strong relationships with our clients, following the rules and regulations of our

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partners, being environmentally friendly, and most importantly bring a new form of
advertisement to life.

2.1 Objectives
 To become a leader in the digital advertising world by offering an advanced form
of digital advertising in a rapidly growing and demanding market
 To sell a unique, interactive, intelligent form of advertisement
 To help the companies who are advertising to reach their target audience in a new
fashioned and captivating way
 Increase sales for supporting companies by at least 20%

2.2 Mission
Our mission is to bring a new wave of technology to the forefront of the advertising
world and share it with the city of Toronto by placing quality digital signage inside the
TTC Tunnels. We strive for nothing but the best in customer service, and commit
ourselves to delivering a sound return on the investment of our clients.

2.3 Competitive Strategy

Competitive Strategy:
As we would be the first company to offer this service in Canada, price leadership would
be fairly straightforward. There are companies which use in tunnel advertising in many
American, European and Asian cities, so the Price charged per advertisement would be
figured in relation to what these companies charge, but again, having no company in
Canada currently using this form of advertising makes deciding on price much more
flexible. Using the prices that CBS outdoor charges businesses to advertise on the walls of
the subway platforms, or the walls of the subways and busses themselves, we can get a
basis for what to charge. These prices are based on a Cost per thousand viewers rate, and
therefore what we charge would be determined by the number of viewers our
advertisement will reach every time a train passes.

Focus: Our focus would initially be on large corporations with easily recognizable logos
as well as those with large advertising firms at their disposal. Some Toronto based ad
firms that we would focus on include Dentsu, or WPP. We would also focus on the
holding companies that run advertising firms with large corporations as their clients. This
is mainly because initially, with such a new form of advertising, larger corporations would
be able to afford the prices, as well, logo’s like the Nike checkmark, or McDonalds golden

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arches are much easier to display through images that are being seen from a train going by
at the speed of 60km/hr.

Differentiation: What defines us as a different from other advertising companies is that

we are located within the Toronto Subway Tunnel system. We are a digital form of
advertising that has not been done before in the city of Toronto, in this format. Being the
only company that owns this type of advertising real estate in Toronto we can charge
competitively. As well being in an era of great technological advances we have stumbled
upon a type of advertising that can be turned into a totally interactive experience. With the
use of Bluetooth we are now able to send messages to peoples phones. These messages
may contain, promotional material, coupons, or even passwords for contests.

2.4 Growth Strategy

Penetration: Penetration into the market can be completed in a number of ways.
 A massive public relations campaign would be necessary in order to get our
company name out and our idea out to advertising companies, holding companies,
and corporations themselves.
 Videos of the advertising in action can be posted on social networking websites
like YouTube, MySpace, Facebook, Twitter, ect. These websites can also be used
to gain support for this type of advertising to be used in the city of Toronto, even
prior to talking with the TTC.
 When the systems have been installed a PR event will be held in the TTC after
hours. Heads of advertising companies, holding companies, and heads of large
corporations will be invited to a sort of Wine and cheese on a subway car its self,
and taken through the tunnels to be given a preview of just how versatile and
revolutionary this type of advertising is.
 Once the systems are established, installed, and up and running in the tunnels, then
a series of radio commercials, TV commercials, and internet based adds will be
created informing and reminding commuters of which tunnels to look for the
advertisements.
 Posters and billboards can also be established along streets where there are
entrances to the TTC, as well as along the walls of TTC stations.

Market Development: Once one or two companies use our services, we feel that the
market will largely develop its self. Being viewed by millions of people per day, this is a
form of advertising that we feel businesses will be fiercely competing for. Certain stations
like the connecting station of Younge and Bloor at its peak hours for commuters (7-9am,
4-6pm) will be the basis for the competition.

Product Development: the development of our product will be largely up to the

advertising companies, and their creative process. Through our programming, we can
allow these advertising firms to display essentially any video or image for their clients that
can be displayed on an average television screen. The product of the screens themselves
will be updated and upgraded with the advancement of technology. For example if flatter,

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thinner screens become available, we would upgrade the screens in the tunnel. If a faster
connection for the programming systems become available the system will be upgraded.
As well newer technologies if applicable will be added i.e. Bluetooth. By having a
Bluetooth system installed alongside the screens, we would be able to send messages to
riders cell phones with deals coupons, websites, codes for websites ect.. By using this
technology along side our visual advertising will increase interest from companies as well
increase revenues for the companies.

3. Management
Five students at Humber College founded Tunnel Vision.
Bryan Strasberg, Keith Geary, Amandeep Singh Sahota, Navpreet Kaur Thetti, and S.m.
Anowarul Alam.

Bryan Strasberg is the CEO of the Tunnel Advertising with a background that includes
strong leadership skills, organizational skills, and the ability to delegate people and jobs.
The CEO’s job will include but will not be limited to oversee marketing, promotions,
delivery and quality of programs, products and services.
Keith Geary is the Vice-president with the ability to delegate orders, over sees staff and
make sure jobs are properly delegated and completed. The Vice Presidents job will be to
make sure that company’s employees are doing everything they can do to make sure the
company is making money, over seeing customer service and coordinating business
between Finance and Account Executives.

Amandeep Singh Sahota is going to be in charge of Finance. He will be in charge of

delegating funds accordingly, making sure that the company has enough funds at all time
to maintain operations, to collaborate with the Account Executives to establish pricing
models and cost structures.

Navpreet Kaur Thetti and S.m. Anowarul Alam are both going to be Account
Executives. They will be in charge of maintaining client relationships, making sure clients
are pleased with our work and what they asked for, as well they will be in charge of
creating partnerships with key clients and ad agencies.

There will be three people in charge of uploading the advertisements, maintaining the
systems, and over all maintenance.

4. Marketing Plan
4.1 SWOT analysis is a way to help you realize where your firm stands compared
to your competition.

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It takes four factors (strengths, weaknesses, opportunities and threats) and combines them
in such a way that your firm can create a direction. Without an objective for the SWOT
analysis, the process does not reveal much. The firm must decide why a SWOT analysis is
necessary and what it will be used for. The critical SWOT analysis for our company
Tunnel Vision is as follows:

Strengths
 Innovation and creativity: High level of innovation and creativity that makes a
good and intelligent utilization of TTC tunnels empty spaces, which make it easy
to achieve the goals of advertisers, and creates an enjoyable form of advertising.
 Long lasting impression: Our advertising firm has the ability to catch the
attention of the public easily, rate of impression frequency is very high and we
have the ability to create a long period of impression.
 Total Control: We are installing sensors that will record in real time the speed of
passing train that will make it possible for us to take total control of image
alignment.
 Special effects: Tunnel Vision is the only system that allows special effects, for
example animations can move left or right as desired.
 Auto-Maintenance: Individual circuits, control boards and light boards are
triggered precisely by the system. Any system failures are reported in real time to
operator, where the operator will have a two way communication with the monitors
and be able to fix them remotely
 24/7 System Monitor - Our Company’s System is completely controlled and
monitored via the Internet. So there are hardly any chances of breakdown.

Weakness:
 High start up cost: Because of the high start up costs we are gong to have to take
loans from banks, which will put us into financial debt, where we will be putting
most of our revenue towards paying off the bank loans, and the equipment costs.
 Networking Contacts: Because we are a brand new company we have to create
relationships with companies and it might be hard to do at first and might take
some time, gaining companies trust.

Opportunities:
 Competitors approved: Though more and more competitor’s copy our innovative
ideas and trend setting concept into their advertising plan, there is no competitor
for in tunnel advertising concept in Toronto.
 Wider reach for target audience: Our concept of tunnel advertising allows for
much wider reach for target audiences due to the fact that a high volume of persons
are being transported on TTC subways.

 Monopoly in Toronto: As the concept is newly introduced in Toronto we have no

competitors against us, so in this way we can create a monopoly in Tunnel
Advertising in Toronto.

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  Profitable business: Lower maintenance cost and high revenues combined with
reduced hardware can make a profitable business for our company.

 Helpful to clients: We can prove to be a great help to our clients for whose
products we will be advertising. They can advertise their products in an entirely
different manner and we can create a good customer relation.

Threats:
 Changes in the technological environment: The technology is constantly
changing, ever changing technology may pose a possible threat to our Tunnel
Advertising concept as in the case the technology we are using is taken over by the
advent of new technology.

 Possible threat by competitors: Although our company has a monopoly in

Toronto there are possibilities that competitors may enter into our market and
capture our share of market.

 Changes in the government regulations: There may be possibilities of changes

in government regulations, which may not be in favor of our company, which can
also be a possible threat to our company.

4.2 The Market

The market that we will be targeting is agencies and companies. They will be the ones
who will be renting the space from us. The following facts are to show why they should
advertise with us. The following are facts and figures of how many people use the
subway, how much the subway makes on average in a day, how long the track is, what the
busiest stations at peek time are and how many people go through them at those times.

Daily Trips
 Revenue passengers (Fares collected)-793,000
 Sales and Transfer fare -1,176000.
 Of the 150 surface routes, 148 make 243 connections with the Subway/
Scarborough RT system during the A.M rush period (Surface routes increased by 1
in 2008 – Mount Dennis).
 Thursday, October 30, 2008: highest one day ridership- 1, 68600.

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 Average Daily ridership 94,2600

Busiest Stations
(Estimated passenger trips to and from trains daily)

 Bloor (Younger- University- Spadina) – 191,800

 Yonge (Bloor – Dan forth) – 188,600
 St. George (Bloor – Dan forth) – 122,000
 St George (Younge – University – Spadina) – 121,100
 Union – 95,300
 Number of Stations – 69 (subway interchange counted once)
 Number of escalators - 294
 Number of Elevators – 76
 Sytem length 68.3 kilometres(42.4mi)

2008 2007 Increase/

Decrease
Passesnger Trips 466,700,000 459,769,000 6,931,000

Number of Lines
2008 2007 Increase/ Decrease
Subway Lines 3 3 -

Subway lengths
2008 2007 Increase/ Decrease
Younge-University- 18.8 18.8 -
Spadina
Bloor-Danforth 16.3 16.3 -
Shepard 3.4 3.4 -
Scarborough RT 4.0 4.0 -

Kilometers operated (In thousands)

2008 2007 Increase/ Decrease
Subway 46,5444 46,310 234

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 Number of passengers a day
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000 Number of passengers a day
0

4.3 Current Competitive Situation

There is currently one major player competing for the space in the subway tunnels; New
York-based Sub media LLC. The company works with the cities, government, subway
networks, and advertising companies to implement their systems in countries around the
world. Currently Sub media have systems throughout the United States, as well as various
European and Asian Countries. Sidetrack, who was based in Winnipeg, Manitoba was the
first of its kind in Canada. Due to refusal to cooperate with the guidelines of the TTC they
were not able to follow through with their idea of tunnel advertising. Due to too many
complications with their management they no longer exist. By creating our company
Tunnel Vision, we will be creating a monopoly in this industry within Canada. We plan
on becoming partners with the city of Toronto on this project to give further assurances in
our success. This will allow the city to make a profit off of our revenue, which can be put
back into transportation or other government programs.

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4.4 Advantages and Opportunities of Tunnel
Advertising
There are various advantages of using this new cutting edge medium of reaching
consumers:

1) The motion picture like subway medium has the ability to reach a large number and
a wide range of people. A single tunnel display can reach between one and three
million riders a day depending on what city and between which subway stations it is
placed in.

2) Subway lines can carry up to 15 times the traffic of a four-lane highway. This
medium has also the ability to grab and hold people’s attention while riding on the
subway. Many of subway riders are less distracted than pedestrians or automobile
drivers are.

3) It has also been proven that this type of medium generates a high recall rate.
Independent market research shows a high percentage of viewers recall the advertising
content. It can differentiate the advertisers from other marketing mediums. The motion
picture nature of the display and the new environment helps to differentiate the
message from other city center advertisements.

4) Finally the tunnel advertising targets the audiences in the centre of the major cities.
Major cities around the world host major subway systems in their key business,
shopping, and residential districts.

4.5 Disadvantages and Threats of Tunnel

Advertising
There are of course a few disadvantages of using this technology. The screens used for in
tunnel advertising are not typically 4:3 ratios compliant and may require some conversion
of the media.

Because of the speed of the subway may vary the text/logos may be difficult to read. With
the sidetrack system the riders see multiple frames. Train conductors can see a system,
which could potentially present a threat to passenger/train safety. Some methods use
advanced electronics that require a high level of calibration for each tunnel. Of course if
the train fails to meet a minimum speed requirement the advertisement won’t be displayed
properly and will lose its ability to inform consumers...

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4.6 Target Market/Key Segments
This new medium provides access to a diverse audience. Although the image of a typical
transit rider may be someone who cannot afford a car, does not have a need for a car
because they live on a bus/subway line, or even park at the subway station to get to work,
market research shows that many riders are above average in education and income.
Therefore it is not surprising that some of the earliest adopters of the new technology have
been auto manufacturers. Well-established brands such as these, or other manufacturer and
service providers can use this medium to reiterate the message that they have already
communicated for television and other mediums. This allows them to gain efficiencies in
the production cost of creating advertisements, which can be spread over more media.
Tunnel advertisements also provide a deeper connection with the younger generations,
who are notoriously difficult and skeptical to reach. This market segment is much more
likely to be engaged by these advertisements, and therefore advantageous for
manufacturers of merchandise geared towards Teens & Gen Y- ers.

4.7 Objectives
Our company by investing in this medium of advertising expects our ads to reach a large
number of people, grab and hold the attention of the potential consumers, generate a high
recall, differentiate ourselves from the competition and finally target audiences in the
centre of the large metropolitan cities. A single tunnel display can reach between one and
three million riders a day, most of them less distracted than pedestrians or automobile
drivers might be. Subway lines can carry up to 15 times the traffic of a four-lane highway.
Market researchers have shown that 92% of subway riders see the advertisements. The
motion picture nature of the display and the new environment helps to differentiate the
message from other centre city advertisements as well as, help separate the company from
the competitor’s promotional strategies. Major cities in the world host subway systems in
their key business, shopping and residential districts, this allows the companies to
capitalize on strategic positioning of the advertisements. Our company has taken notice of
this cutting edge technology and taken advantage of this type of advertisement in our
marketing plan. Our main objective is to do underground advertising in such a manner so
that it catches the attention of the commuters in a way that it was never done before...

4.8 Marketing Strategy

Our marketing strategy, keeping in view Kotler’s 4 P’s would be:

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Product: We would be selling advertising real estate to ad agencies that have clients that
would be interested in advertising their companies in side the Toronto Subway
Tunnels. Strong PR before the release of the real estate will market the product
idea. After we get a strong pull from media because of the PR the idea will start to
market its self.

Place: With respect to place our marketing strategy, we would be introducing tunnel
advertising to the busiest subway satiations of the TTC. By doing so we will help
companies gain the attention of the maximum number of subway rider’s .The stations we
will be targeting include:

 Bloor (Younge- University- Spadina) – 191,800

 Younge (Bloor – Dan forth) – 188,600
 St. George (Bloor – Dan forth) – 122,000
 St George (Younge – University – Spadina) – 121,100

Promotion: We will be promoting our services through various means such as: Radio,
flyers, Newspapers, TV, Tradeshows, Public relation, magazines posters, as well as online
You Tube videos and bill boards throughout Toronto.

5. Operations
Operational Plan:

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For our critical path refer to 4.8

Equipment: The equipment that we will be using is supplied by NetX and consists of:
Media player, CTLXO-P Control Device, DPPXV3C-P Data Pipe Server, DPPXC3-P
Data pipe plant, DPPXV3c-M support data pipe server, DPPX3C-P Support data pipe
client, XLKXC3-P XML Link, WPDXC2-P Web Pad, WPDXC2-M web pad support.

Location: We will secure a small office space, no more than 1000 square feet, at Yonge
and Bloor, preferably within the HSC building. The purpose of this location is to be in
closest possible proximity to the main tunnels we will initiate the advertising systems in
(Yonge and Bloor station). This allows quick and easy maintenance should something go
wrong with the systems or screens in the tunnel. Also, as the system has a wireless
connection set up between the screens themselves in the tunnel, and the programming hub
in our office space, this would greatly reduce the possibility that the signal between the
two would be lost, as well as ensuring optimal speed.

Human Resources: Since much of the day to day operations are completed by
programming, and computers most of the man power needed to keep Tunnel Vision
operational can be found within our in house employees. Installation of the screens,
programming devices, and the computer systems will be completed by our in house
technicians, under supervision of TTC technicians qualified to work within the tunnels.
Maintenance and up keep however must be completed by TTC employees themselves, and
this would be stipulated within our partnership agreement.

Legal Requirements: The main legal concern involved would be that of the safety
regulations in the TTC. Through our partnership agreement with the TTC we would strive
to reach every regulation and requirement demanded by the Toronto Transit Commissions
safety and regulations board. Our number one concern would be the safety of the TTC
passengers, and the insurance that our systems would. Not disrupt service, or distract
drivers and technicians. There are currently no City of Toronto Regulations that prohibit
the displaying of digital images in subway tunnels, and we will meet all other
requirements set out by the City of Toronto Signage Laws.

5.1 Action Programs

Finish
Objectives What is to be done Start Date
Date
Start with strong PR in order to get
Implementation
media coverage and get the publics 16-Apr-10 18-Jun-10
of Marketing
interest.
Talk to the city of
Meet with the city of Toronto in
Toronto
order to get them on board and 19-Jun-10 27-Aug-10
create a partnership.

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 Meet with Bank To secure and gain loan 30-Ag-10 30-Aug-11

After talking to the city and getting

Layout of screens the loan we will start to plan how 29-Oct-10
30-Aug-10
in the tunnels everything will be laid out and
installed inside the tunnels
After getting the city of Toronto on
Have equipment board with us we would start
01-Nov-10 14-Nov-10
installed installing the equipment into the
subway tunnels
Before starting to advertise, the
equipment would be thoroughly
tested to make sure that there are
Test Equipment 11-Nov-10 31-Dec-10
no problems with the screens the
computers and no interference with
the trains
Launch
Once everything is in place then we
advertising 01-Jan-11 N/A
will start advertising on the screens
System

5.2 Controls
The controls that will be put in place will be tailored toward quality control.
 When we partner up with the city of Toronto we will be able to implement a
maintenance program that will take care of the screens and make sure they are
cleaned and maintained. This would also create more jobs for the city of Toronto.
 For program maintenance we would make sure the timing of the commercial is
done correctly, the screen resolution is up to par with what the clients gave us and
so that the advertisements will look as sharp as possible.
 A long with quality assurance we would also have great customer service. We
would create great customer service by making sure that the ads that we upload to
the screens are working properly and to the specifications of the clients, we would
do several tests on them before they get uploaded, and we would be in contact with
the clients if we need anything or if something is not working properly.
 To make sure that we maintain great relationships with our clients, we will be
giving them a report that states how many times their ad was played and the times

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 that it was played. By making this information available the clients will know that
they are getting what they are paying for and will be able to see if they should
advertise during other times and if their ad is working or not.

6.0 Financial Summery

The financial analysis includes projected income statement, for three years, cash flow
statement and balance sheet, which show

1) For the first year start up cost we have taken a loan amount of $50,000 from bank and
rest amount is raised from investors.

2) Our Company gives 25% of each years revenue to TTC as a partnership concern.

3) Indemnification insurance is taken for $10,000 to protect our company from any loss,
which may be suffered during the performance of contract with TTC.

4) For the expansion of our tunnel vision advertising, in the first year we are operating in
two tunnels, then in the second year we are operating in six tunnels likewise in the third
year we are advertising in six tunnels.

5) So with the increase in the number of tunnels our revenue is also expected to increase
by 100% in the first and the second year and an average growth of 50% is estimated in the
upcoming third year.

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 6.1 Startup Costs
Startup Costs
 
One Time costs Year 1 Year 2 Year 3
       
IT EXPENSES      
Computers and Accessories $2,440.76    
DSPXP3-P Player software $1,575.00    
DSPXD3-P Display Director $3,675.00    
Installation and configuration $1,800.00    
DSPXP3-M Support 1 year player $315.00    
DSPXD3-M support 1 year director $735.00    
Media player $1,236.00    
CTLXO-P Control device 1-9 $158.00    
DPPXV3C-P Data Pipe Server 1-9 $1,575.00    
DPPXC3-P Data pipe plant $520.00    
DPPXV3c-M support data pipe server $315.00    
DPPX3C-P Support data pipe client $104.00    
XLKXC3-P XML Link $1,575.00    
XLKXC3-M Support XML Link $315.00    
WPDXC2-P Web Pad $520.00    
WPDXC2-M web pad support $104.00    
32" NEC Commercial grade screen X 100 $67,900.00 $67,900.00 $67,900.00
Website $1,500.00    
IT Expenses Total $86,362.76 $67,900.00 $67,900.00
Business Incorporation costs $1,500.00    
Screen Mounts $34,000.00 $34,000.00 $34,000.00
Office Furniture $2,500.00    
Marketing and Advertising For the Year $15,000.00 $18,000.00 $21,600.00
Indeminification insurance $10,000.00 $12,000.00 $14,400.00
Training $3,200.00    
Total $152,562.76 $131,900.00 $137,900.00

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 Equipments Total Cost

Website

Business Incorporation
costs

Office Furniture

Marketing and Advertising

For the Year

Indeminification insurance

Training

6.2 Recurring costs

Recurring Costs Year 1 Year 2 Year 3
       
Salaries $ 25,000 $ 27,500 $ 30,250
Office rent $ 2,800 $ 2,800 $ 2,800
Office supplies $ 300 $ 300 $ 300
IT maintenance $ 800 $ 1,200 $ 1,200
Telephone and Internet $ 175 $ 175 $ 175
Employee Insurance $ 300 $ 300 $ 300
Interest on Loan from Investors $ 787 $ 667  
Interest on Loan from Bank $ 83.33 $ 83.33  
Office maintenance $ 300 $ 300 $ 300
       
$ $ $
Total Recurring Cost Per Month 30,545.33 33,325.33 35,325.00
$ $ $
Recurring Cost Per Year 366,543.96 399,903.96 423,900.00
       
$ $ $
Total Expenses 519,106.72 531,803.96 561,800.00

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 Salaries
Office rent
Office supplies
IT maintenance
Telephone and Internet
Employee Insurance
Interest on Loan from
Investors
Interest on Loan from
Bank
Office maintenance

6.3 Sales Forecast

Per 1000 Viewers            

           
# of # per # of % of # of Cost per
Station Passengers Hour Hours Views Viewers (k)
Bloor(Young-University-Spadina) 191800 10094 19hrs 0.40 4037.6 32
Young (Bloor- Danforth) 188600 9926 19hrs 0.40 3970.4 32
St. George (Bloor-Danforth) 1,22,000 6421 19hrs 0.40 2568.4 50
St,George (Younge-University-
Spadina) 1,21,100 6374 19hrs 0.40 2549.6 51

18
  
Tariff Hrs/Day Cost/Hr
Peak Hours (Week Days)    
6:30am-10am
3:30pm-7pm 7hrs/day 130/hr
     
General Hours (Week Days)    
10am-3:30pm
7pm-1:30am 12hrs/day 110/hr
     
Weekends    
Saturday (6am-1:30am) 19hrs 30mins 110/hr/day 130/hr/evening
Sunday(9am-1:30am) 16hrs 30mins 100/hr
     
Special Event rates    
Toronto Maple Leaf Game 130/hr
Toronto Raptors Game 130/hr
Toronto Blue Jays 130/hr
Summer Events 130/hr
New Years 150/hr
Concert Nights Event time specific 130/hr

6.4 Sales Forecast for 2011

Dollars per Thousand
  From two Tunnels
                 
# Of # Of # Of # Of
Year 1 Clients Q1 Clients Q2 Clients Q3 clients Q4
Peak Hours 14 $120,120 14 $120,120 14 $120,120 14 $120,12
General Hours 12 $87,120 12 $87,120 12 $87,120 12 $87,120
Saturday Day 12 $15,840 12 $15,840 12 $15,840 12 $15,840
Saturday
Evening 8 $12,480 8 $12,480 8 $12,480 8 $12,480
Sunday 6 $7,200 6 $7,200 6 $7,200 6 $7,200
Special Event Cannot forecast first year
                 
Quarterly
Revenue   $242,760.00   $242,760.00   $242,760.00   $242,760.00
                 
Revenue for
the year
before tax   $971,040.00            

19
6.5 Forecast for 2012
  From Four Tunnels

                 
# Of # Of # Of # Of
Year 2 Clients Q1 Clients Q2 Clients Q3 clients Q4
Peak
Hours 28 $240,240.00 28 $240,240.00 28 $240,240.00 28 $240,240
General
Hours 24 $174,240.00 24 $174,240.00 24 $174,240.00 24 $174,240
Saturday
Day 24 $31,680.00 24 $31,680.00 24 $31,680.00 24 $31,680
Saturday
Evening 16 $24,960.00 16 $24,960.00 16 $24,960.00 16 $24,960

Sunday 12 $14,400.00 12 $14,400.00 12 $14,400.00 12 $14,400

Special
Event Cannot forecast first year

                 

Quarterly
Revenue   $485,520.00   $485,520.00   $485,520.00   $485,520.00

                 
Revenue
for the
year
before
tax   $1,942,080.00            

6.6 Forecast for 2013

20
  From Six Tunnels
                 
# Of # Of # Of # Of
Year 3 Clients Q1 Clients Q2 Clients Q3 clients Q4
Peak Hours 42 $360,360 42 $360,360 42 $360,360 42 $360,360
General Hours 36 $261,360 36 $261,360 36 $261,360 36 $261,360
Saturday Day 36 $47,520 36 $47,520 36 $47,520 36 $47,520
Saturday Evening 24 $37,440 24 $37,440 24 $37,440 24 $37,440
Sunday 18 $21,600 18 $21,600 18 $21,600 18 $21,600
Special Event Cannot forecast first year
                 
Quarterly Revenue   $728,280   $728,280   $728,280   $728,280
                 
Revenue for the year
before tax   $2,913,120            

6.7 Income Statement

Income Statement
  Year 1 Year 2 Year 3
       
       
Revenues $971,040.00 $1,942,080.00 $2,913,120.00
       
Expenses      
Payroll $300,000.00 $330,000.00 $363,000.00
Advertising and Marketing $15,000.00 $18,000.00 $21,600.00
Rent $33,600.00 $33,600.00 $33,600.00
Maintenance $3,600.00 $3,600.00 $3,600.00
Supplies $3,600.00 $3,600.00 $3,600.00
Health Insurance $3,600.00 $3,600.00 $3,600.00
Phone and Internet $2,100.00 $2,100.00 $2,100.00
Interest on loan $10,443.96 $9,000.00  
25% Of revenues to TTC $242,760.00 $485,520.00 $728,280.00
Indeminification Insurance $10,000.00 $12,000.00 $14,400.00
Employee Training $3,200.00    
I.T. Maintainance $9,600.00 $14,400.00 $14,400.00
Business Incorporation $1,500.00    
Website $1,500.00    
Depreciation $12,136.00 $21,126.60 $29,191.34
       
Total Operating Expense $652,639.96 $936,546.60 $1,217,371.34
Operating Revenue $318,400.04 $1,005,533.40 $1,695,748.66
     
Income Taxes $127,360.02 $402,213.36 $678,299.46
Net Profit $191,040.02 $603,320.04 $1,017,449.20

21
 $3,000,000.00

$2,500,000.00

$2,000,000.00

$1,500,000.00

$1,000,000.00

$500,000.00

$-
Total Year1
Revanue Year2
Operating Expenses Operating RevenueYear3 Net Profit

6.8 Balance Sheet

Balance Sheet for the year end
Assets Amount   Liabilities Amount
             
Current Asset       Current Liabilities    
$127,360.0
Cash In Hand       Taxes Payable 2  
$728,27 $519,106.0
Total Current Assets   9   Account Payable (Loan) 0  
$646,46
        Total Current Liabilities   6
Fixed Asset            
$118,862.7 $191,04
Equipments 6     Owner's Equity   0
Furniture $2,500.00          
$121,362.7
Sub Total 6          
Less Depreciation @ 10 % $12,136.28          
$109,22
Total Fixed Assets   6        
         
             
             
$837,50 $837,50
Total Assets   6   Total Liabilities   6

22
6.9 12 Month Cash Flow
  Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
             
Cash
Balance at
the $519,106. $396,687. $426,832. $456,977. $487,121. $517,266.
beginning 00 91 58 25 92 59
             
Cash Inflow            
From
Advertisemen
ts            
Peak hours $40,040.0 $40,040.0 $40,040.0 $40,040.0 $40,040.0 $40,040.0
(Weekdays) 0 0 0 0 0 0
General
hours $29,040.0 $29,040.0 $29,040.0 $29,040.0 $29,040.0 $29,040.0
(Weekdays) 0 0 0 0 0 0
Saturday
Daytime $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00
Saturday
Evening Time $4,160.00 $4,160.00 $4,160.00 $4,160.00 $4,160.00 $4,160.00
Sunday $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00
             
Total Cash $80,920.0 $80,920.0 $80,920.0 $80,920.0 $80,920.0 $80,920.0
Inflow 0 0 0 0 0 0
             
Cash
Outflow            
Computers
and
Accessories $2,440.76 0 0 0 0 0
DSPXP3-P
Player
software $1,575.00 0 0 0 0 0
DSPXD3-P
Display
Director $3,675.00 0 0 0 0 0
Installation
and
configuration $1,800.00 0 0 0 0 0
DSPXP3-M
Support 1
year player $315.00 0 0 0 0 0
DSPXD3-M
support 1
year director $735.00 0 0 0 0 0
Media player $1,236.00 0 0 0 0 0
CTLXO-P
Control
device 1-9 $158.00 0 0 0 0 0
DPPXV3C-P
Data Pipe
Server 1-9 $1,575.00 0 0 0 0 0
DPPXC3-P $520.00 0 0 0 0 0

23
Data pipe
plant
DPPXV3c-M
support data
pipe server $315.00 0 0 0 0 0
DPPX3C-P
Support data
pipe client $104.00 0 0 0 0 0
XLKXC3-P
XML Link $1,575.00 0 0 0 0 0
XLKXC3-M
Support XML
Link $315.00 0 0 0 0 0
WPDXC2-P
Web Pad $520.00 0 0 0 0 0
WPDXC2-M
web pad
support $104.00 0 0 0 0 0
32" NEC
Commercial
grade screen $67,900.0
X 100 0 0 0 0 0 0
Screen $34,000.0
Mounts 0 0 0 0 0 0
Website $1,500.00 0 0 0 0 0
Business
Incorporation
costs $1,500.00 0 0 0 0 0
Office
Furniture $2,500.00 0 0 0 0 0
Marketing
and
Advertising $15,000.0
For the Year 0 0 0 0 0 0
Indeminificati $10,000.0
on insurance 0 0 0 0 0 0
Training $3,200.00 0 0 0 0 0
$25,000.0 $25,000.0 $25,000.0 $25,000.0 $25,000.0 $25,000.0
Salaries 0 0 0 0 0 0
Office rent $2,800.00 $2,800.00 $2,800.00 $2,800.00 $2,800.00 $2,800.00
Office
supplies $300.00 $300.00 $300.00 $300.00 $300.00 $300.00
IT
maintenance $800.00 $800.00 $800.00 $800.00 $800.00 $800.00
Telephone
and Internet $175.00 $175.00 $175.00 $175.00 $175.00 $175.00
Employee
Insurance $300.00 $300.00 $300.00 $300.00 $300.00 $300.00
Interest on
Loan from
Investors $787.00 $787.00 $787.00 $787.00 $787.00 $787.00
Interest on
Loan from
Bank $83.33 $83.33 $83.33 $83.33 $83.33 $83.33
Office $300.00 $300.00 $300.00 $300.00 $300.00 $300.00

24
maintenance
TTC Share @
25% of $20,230.0 $20,230.0 $20,230.0 $20,230.0 $20,230.0 $20,230.0
revenue 0 0 0 0 0 0
Total Cash $203,338. $50,775.3 $50,775.3 $50,775.3 $50,775.3 $50,775.3
Outflow 09 3 3 3 3 3
             
             
$396,687. $426,832. $456,977. $487,121. $517,266. $547,411.
Surplus 91 58 25 92 59 26

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

           
$547,411.26 $577,555.93 $607,700.60 $637,845.27 $667,989.94 $698,134.61
           
           
           
$40,040.00 $40,040.00 $40,040.00 $40,040.00 $40,040.00 $40,040.00
$29,040.00 $29,040.00 $29,040.00 $29,040.00 $29,040.00 $29,040.00
$5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00
$4,160.00 $4,160.00 $4,160.00 $4,160.00 $4,160.00 $4,160.00
$2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00
           
$80,920.00 $80,920.00 $80,920.00 $80,920.00 $80,920.00 $80,920.00
           
           
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0

25
 0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
$25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00
$2,800.00 $2,800.00 $2,800.00 $2,800.00 $2,800.00 $2,800.00
$300.00 $300.00 $300.00 $300.00 $300.00 $300.00
$800.00 $800.00 $800.00 $800.00 $800.00 $800.00
$175.00 $175.00 $175.00 $175.00 $175.00 $175.00
$300.00 $300.00 $300.00 $300.00 $300.00 $300.00
$787.00 $787.00 $787.00 $787.00 $787.00 $787.00
$83.33 $83.33 $83.33 $83.33 $83.33 $83.33
$300.00 $300.00 $300.00 $300.00 $300.00 $300.00
$20,230.00 $20,230.00 $20,230.00 $20,230.00 $20,230.00 $20,230.00
$50,775.33 $50,775.33 $50,775.33 $50,775.33 $50,775.33 $50,775.33
$577,555.93 $607,700.60 $637,845.27 $667,989.94 $698,134.61 $728,279.28

Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5
Total Cash Inflow 80920 80920 80920 80920 80920
Total Cash Outflow 203338.09 50775.33 50775.33 50775.33 50775.33
Surplus 396687.91 426832.58 456977.25 487121.92 517266.59

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Total Cash
Inflow 80920 80920 80920 80920 80920 80920 80920
Total Cash
Outflow 50775.33 50775.33 50775.33 50775.33 50775.33 50775.33 50775.33

Surplus 547411.26 577555.93 607700.6 637845.27 667989.94 698134.61 728279.28

26
27
 100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
Surplus Total Cash Outflow 10
Total Cash Inflow 11 12

Appendices
Information sources
Netx.com- equipment supplier
www.tdcanadatrust.com- maximum amount for a loan
CBSoutdoors.com
Metrovista.com
Dentsu Marketing
Sidetrack.com
Humber College Marketing Department
TTC.ca- statistics
http://www.toronto.ca/legdocs/municode/1184_693.pdf- Toronto Signage Laws
Statscanada.ca
Signarama32-px.smrthlink.com- ideas for screens
www.smvgroup.com Starcom Media
www.digistoremedia.com

28