Question

To prepare for the examination of financing sources, write a two- to three-page (not including the title and reference pages) Executive Summary for a Business Plan. This process involves the describing the market, describing your capital needs as well as defining and describing your business. This plan should focus on the entrepreneurial idea you identified in BUS 604 (if you have not completed BUS604, please contact your instructor for approval of your entrepreneurial idea). Use the template below to develop your executive summary. You must include a minimum of two scholarly or professional resources to support your summary.

The Executive Summary must include:

Company Background
Here you will provide some information about your company and its primary objective. This information is designed to give your target audience an idea of the services or products that your company provides. This section should be two to three paragraphs.

Describe the background of the company. Be sure to address the following questions: What is the company’s principle objective? Where is the company located? When was it founded?

Describe the uniqueness of idea: Is the idea an opportunity?

Business/Product or Service
Describe your product or service in greater detail. If multiple products or services are offered, describe them in the order of significance. This section should be one to two paragraphs.

Explicitly, what products or services does your organization offer?

What is the order of significance of the products or services?

What is the product or service’s stage (introductory, growth, maturity)?

(Note: If your company is new, it would be introductory; if it’s ongoing but looking to expand, it will be in the growth phase. If your product or service has reached maturity, it indicates market saturation, and you are seeking funds to change or alter your product to remain competitive.)

What are your future plans to further develop your product or service?

Protectability of idea: Is a patent needed?

The Market
Define and describe your market (i.e. athletic apparel, consulting services, business software, and restaurant equipment). You will need to do research and justify to your perspective investors that your product or service is meeting a need that is currently missing in the industry. You need to establish this justification by describing the gaps in the industry and how your product or service closes those gaps. This section should be your largest section because it requires research; three to nine paragraphs.

What is the current size of the market?

How much of the current market size can you capture (i.e. what percent)?

Does your business have current customers or customers that have expressed interest in your product or service? (This is optional but beneficial if there are customers)

Capital Requirements
Discuss your financial requirements and plan in this section. You will need to provide a clear description about required finances and how your company plans on using funds. It’s always best to overestimate by 30% to cover the cost of areas initially missed.

Financial requirements: Are the financial requirements consistent with the business opportunity and targeted market?

Funding: Is the idea worthy of external funding; what external funding source are you considering (bootstrapping, angels, venture capital, bank financing, etc.)? How will you use the money?

Answer 1

?Digital Ocean established in the year 2011 by Ben and Moisey Uretsky is a US cloud-based host company with head quarters in New York City and having data centers all over the world. It provides developers with cloud services which helps to set up and scale applications enabling it to function at the same time on numerous computers. As on January 2018 Digital Ocean was recognized as the third-largest hosting organization worldwide in terms of web-facing computers.

On 15^th January, 2013 Digital Ocean became one of the first cloud-hosting establishment to offer SSD-based virtual machines. Subsequently with Tech Crunch evaluation and assessment organized by Hacker News Digital Ocean experienced a quick boost in their consumers. Thus in December 2013 Digital Ocean inaugurated its first European data center situated in Amsterdam.

By the end of December 2013 Net craft reported that Digital Ocean was the fastest emerging cloud hosting service globally with regard to web-facing computer. During 2014 the organization maintained a consistent growth and expansion plans by opening new data centers in Singapore and London. As per a report by Net craft by May 2015 Digital Ocean was recognized globally as the second largest hosting provider.

During 2015 Digital Ocean planned it’s growth and expansion program further by opening a data center in Toronto, Canada and later in 2016 they consistently persisted with their global expansion plans and opened a data center in Bangalore, India and as on July 2017 the organization had 12 data centers all over the world.

Digital Ocean seed funding was led by IA Ventures where it raised around $ 3 million in July 2013. In December 2014 Digital Ocean raised $ 50 million in debt financing from Fortress Investment Group in the form of a five-year term loan whereas in July 2015 it raised around $ 85 million in its series of funding led by Access Industries with contribution from Andreessen Horowitz and as on December 2015 Digital Ocean had raised around $ 124 million in funding.

Digital Ocean’s community platform was been recognized as a go-to resource for system administrators and developers who were indeed interested towards developing and setting up cloud applications. Thus numerous developers were facilitated with various tutorial guidelines, dynamic Q&A section and several community projects.

Digital Ocean community site were able to facilitate with wide-ranging tutorials and guidelines for developers learning to work with Linux and seeking to form complex setups within their infrastructure. Furthermore they were also able to provide 24X7 supports to their consumers free of cost.

Their core offering was called Droplet a virtual machine with a predefined compute, storage space and networking capacity with the alternative to add resources like storage on demand as required. It was able to provide software developers with high-performing Linux Servers at economical prices facilitating with a hyper-focus on simplicity and good user experience. Furthermore Digital Ocean’s servers used only high-performance solid state disks and as a consequence their speed directly benefited good performance of hosted websites and applications.

Digital Ocean long term business plan is to focus on working together and contributing globally to developer communities and thus they conducted various activities which ranged from conducting effective workshops, coding contests and conferences to connect effectively and efficiently with the developer community.