LottoGraphs Animated Lottery Videos Brief Business Plan
LottoGraphs is a proposed brief business plan for a start-up company creating animated lottery videos. The plan details the company's goals to produce high-quality videos showcasing lottery results, statistics, and news, targeting lottery players and media outlets. Key revenue streams include advertising, content licensing, and affiliate marketing. The plan also covers market analysis, marketing strategies, operational details including team structure and technology, and financial projections for the next few years. Finally, potential exit strategies are considered.
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LottoGraphs, Inc. Brief Business Plan
Confidential Data All Financials, Plans, Business Projections, Intellectual Property Rights, Copyrights, Trademarks, Service Marks, Design Patents, Utility Patents, and Regular Patent Software Web App and Mobile App contained herein are the proprietary property of Lotto Graphs, Inc. and may not be copied, shared, or disclosed to any third party without written permission.
1. Executive Summary LottoGraphs is a content creation business specializing in producing high-quality, animated lottery videos. These videos feature engaging visuals, informative statistics, and dynamic presentations of lottery draw results, jackpot updates, and related content. The company's mission is to "Improve the quality of play and the overall enjoyment and excitement of Lottery and Keno Play in America and around the World". LottoGraphs aims to become a leading brand in the lottery entertainment space by leveraging the growing popularity of online lotteries and the demand for engaging, visually rich content. The company will be a for-profit corporation, incorporated in Massachusetts. LottoGraphs' organizational culture will emphasize quality, creativity, and progressive research and development at all levels, serving its customer base with online, immediate availability.
LottoGraphs is in the startup phase, currently in beta testing, with a website and initial software apps for sale. The founder is seeking Seed funding in the range of $0.5 - $2.0 million. The company projects significant revenue growth from $9 million in Year 1 to over $62 million in Year 5.
2. Mission Statement LottoGraphs' mission is to "Improve the quality of play and the overall enjoyment and excitement of Lottery and Keno Play in America and around the World". The core values of the company are: integrity, sustainability, education, research, and excellence. The company's vision is to become the one-stop destination for lottery analysis visualization tools for lottery and Keno players all over America and around the world.
3. Company Description LottoGraphs will create and distribute animated videos that simplify and enhance the lottery experience for viewers. The company will focus on delivering.
• Draw Results: Visually appealing animations showing the latest winning numbers for various national and international lotteries.
• Jackpot Updates: Engaging graphics highlighting current jackpot amounts and rollover information.
• Statistical Analysis: Data-driven animations visualizing past winning numbers, hot/cold numbers, frequency charts, and other relevant statistics.
• Lottery News and Explainers: Informative videos covering rule changes, special draws, odds of winning, and responsible gaming tips.
• Storytelling and Entertainment: Creative animations featuring historical lottery stories, lucky winners, and engaging narratives related to lottery themes.
LottoGraphs is not an offshoot or subsidiary of another firm, nor is it a franchise. It is a new organization satisfying a need for state-of-the-art Interactive Multimedia Lottery Software Services. LottoGraphs will utilize creative video animation methodologies with scientifically designed multimedia capabilities to achieve its goals and maintain its core values. The company will consummate the ultimate in low-cost, highly interactive video animation software designed to educate and entertain the lottery and Keno-playing community worldwide with animated historical interactive lottery videos.
4. Products and Services LottoGraphs will offer a range of products and services:
• Animated Lottery Draw Results Videos
• Jackpot Update Videos
• Statistical Analysis Videos
• Lottery News and Explainer Videos
• Storytelling and Entertainment Videos and Podcasts
• Customized Content Creation for lottery operators, retailers, and online gaming platforms
• Content Licensing to news outlets, websites, and other media platforms.
• LottoGraphs' "Database Animation Graphics Engine" will provide real-time, short-term lottery trending activity on any device. This proprietary engine is patent pending.
• The initial products will be Powerball and Mega Millions bundles, with plans to cover other national and international lotteries. The company has completed a pre-production prototype of several state lotteries as well as the UK lottery.
The company also has plans to develop the LottoGraphs Database Animation Graphics Engine for financial marketplace forecasting and fantasy sports betting.
5. Market Analysis
• Target Market: LottoGraphs' target market includes lottery players, casual gamers, news outlets, lottery retailers, online gaming platforms, and social media users. There are 150+ million regular lottery players in the United States, with 35 million devoted weekly players, and 15 million weekly winners.
• Market Size and Trends: The global lottery market is substantial and growing, driven by increased internet penetration, mobile device usage, and the rising popularity of online lotteries. There's a growing demand for engaging and informative digital content, particularly video content. Short-form video content is experiencing a surge in popularity across various social media platforms. Data visualization and animated infographics are becoming increasingly effective tools for communication and engagement.
• Market Opportunity: The worldwide lottery market is a significant industry with a global market size estimated at USD 335 billion in 2023. It is projected to experience steady growth, with a Compound Annual Growth Rate (CAGR) of 5.2% from 2024 to 2030, reaching a revenue forecast of USD 478.2 billion by 2030. The market is experiencing dynamic trends driven by technological advancements, changing consumer behaviors, and evolving regulatory environments. A significant portion of American adults (57%) bought a lottery ticket in the past year. The middle-income demographic ($45,000 - $75,000 annual income) shows the highest participation rate (65%).
• Competition: LottoGraphs will compete with lottery operators' websites and apps, news websites and TV channels, independent lottery websites, and YouTube channels. However, most of these competitors lack high-quality animation and engaging content. LottoGraphs' competitive advantage lies in its high-quality animation, data visualization expertise, multi-platform distribution, and focus on entertainment and Storytelling Podcasts
• Recessionary Opportunities: Recessions often trigger an increase in lottery participation and the expansion of lotteries into new states. As governments seek alternative revenue streams, the adoption of lottery legislation is increasingly favored, bolstering market expansion.
6. Marketing and Sales Strategy
• Branding and Positioning: LottoGraphs will develop a strong brand identity with a memorable logo, color scheme, and tagline. The company will position itself as the go-to source for entertaining and informative animated lottery content.
• Content Marketing: LottoGraphs will create a dedicated YouTube channel and actively post new content on a regular schedule. It will optimize videos for search engines (SEO) and share content across social media platforms.
• Public Relations and Outreach: LottoGraphs will reach out to lottery news outlets and blogs for collaborations and features.
• Partnerships: LottoGraphs will collaborate with lottery retailers to display videos in-store and partner with online gaming platforms.
• Advertising: LottoGraphs will utilize targeted advertising on social media and search engines.
• Traditional Marketing: Direct mail, flyers, banners, and a full spectrum of social media and regular media outlets will be used.
• Reseller and Retail Locations: Connecting with lottery ticket retailers via direct mail, email, flyers, and live sales calls.
• Point-of-Purchase (POP) Signage: LottoGraphs will have POP signage next to lottery ticket machines at retail locations.
• The company will also utilize video webinars and internet-compatible videos to generate sales.
• The sales model for consumer video sales will be driven by mobile apps and the company website.
• The company also plans to develop an affiliate program to build an army of sales associates.
7. Operations Plan
• Production Process: LottoGraphs will develop a streamlined workflow for creating animated videos, from data collection to final rendering. Professional animation software and tools will be utilized (e.g., Adobe After Effects, Toon Boom Harmony, New AI Generation Video Tools, with a focus on ensuring data accuracy and maintaining brand consistency.
• Team Structure:
◦ Creative Director: Oversees the overall creative vision and content strategy.
◦ Animators/Motion Graphics Designers: Create the animated videos.
◦ Data Analyst: Collects, analyzes, and prepares lottery data for visualization.
◦ Marketing/Social Media Manager: Manages social media presence, content distribution, and marketing campaigns.
◦ Sales/Partnerships Manager: Develops and manages relationships with partners and clients.
◦ Initially, some roles may be combined or outsourced, with team scaling as the business grows.
• Technology and Infrastructure: High-performance computers and software for animation and video editing, a reliable internet connection, cloud storage, and website and social media management tools will be utilized.
• Call Center: A US-based call center will be used for Partner and Reseller inquiries.
• Data Centers: Cloud-based data storage will be used for customer and commercial data, as well as internet-based delivery of video animation software services.
• Headquarters: Initial headquarters will be in Massachusetts. The company intends to occupy, within the next five years, multiple facilities in the U.S. and elsewhere. The initial facility will be a 5000 square foot leased facility.
• Software Development: LottoGraphs will establish a software development facility to house all initial video production operations.
• Training and Development: Training will be provided to the pro sales team, and some training will be provided for administrative hires.
8. Financial Projections
• Revenue Streams:
◦ Advertising Revenue: Pre-roll, mid-roll, and sponsored segments on YouTube and other platforms.
◦ Content Licensing: Licensing videos to news outlets, websites, and other media platforms.
◦ Affiliate Marketing: Commissions from promoting lottery-related products and services.
◦ Merchandise: Selling branded merchandise through an online store.
◦ Custom Content Creation: Charging for tailored animation services for clients.
• Subscription services for lottery video products with repeat sales year after year.
• Direct Sales via website and mobile apps.
• Cost Structure: Salaries, software and hardware, marketing and advertising, office space and utilities, website hosting and maintenance, and legal and accounting fees.
• Funding Requirements: Initial funding of $0.5 - $2.0 million is required to cover startup costs, including equipment, software, marketing, and initial operating expenses.
I have invested over $200,000 plus into the LottoGraphs Project over the years
• Financial Forecasts:
◦ Year 1: $9 Million in sales revenue.
◦ Year 5: Gross Revenue of $62 Million with an operating margin of 49% of sales.
• LottoGraphs projects significant revenue growth - $9 million in Year 1 to over $62 million in Year 5.
* The company aims to achieve a positive cash flow within 12-18 months and profitability within 2-3 years.
* Debt free during the business plan period.
* Operate on a cash basis, with repeat sales year after year.
• Key Performance Indicators (KPIs): Website traffic, video views, subscriber growth, conversion rates, and customer acquisition cost.
• Net Income After Taxes: Projected to growth - $5,641,133.09 in Year 1 to $38,850,921.65 in Year 5.
• Operating Cash Flow: Projected to grow from $5,642,077.31 in Year 1 to $38,856,438.94 in Year 5.
Detailed Financial Projections (Years 1-5) (Note: These projections are based on the data provided in the sources and may vary)
Year 1 Year 2 Year 3 Year 4 Year 5
Sales $9,128,080.69 $22,820,201.72 $39,935,353.00 $59,903,029.50 $62,898,180.98
Cost of Sales $6,000.00 $15,000.00 $26,250.00 $39,375.00 $41,343.75
Gross Profit $9,122,080.69 $22,805,201.72 $39,909,103.00 $59,863,654.50 $62,856,837.23
Gross Margin 49.97% 49.97% 49.97% 49.97% 49.97%
Selling Costs $517,437.62 $1,293,594.05 $2,263,789.59 $3,395,684.38 $3,565,468.60
Research & Development $154,301.55 $385,753.86 $675,069.25 $1,012,603.87 $1,063,234.06
General & Administrative $36,450.03 $91,125.07 $159,468.87 $239,203.30 $251,163.47
Total Operating Expenses $708,189.19 $1,770,472.98 $3,098,327.71 $4,647,491.55 $4,879,866.13
Income from Operations $8,413,891.50 $21,034,728.74 $36,810,775.29 $55,216,162.95 $57,976,971.10
Interest Income $5,778.06 $14,445.15 $25,279.02 $37,918.52 $39,814.45
Interest Expense $70.54 $176.36 $308.62 $462.93 $486.07
Income before Taxes $8,419,600.77 $21,048,997.53 $36,835,745.69 $55,253,618.54 $57,996,300.48
Taxes on Income $2,778,467.68 $6,946,169.19 $12,155,796.09 $18,233,694.13 $19,145,378.83
Net Income After Taxes $5,641,133.09 $14,102,828.34 $24,679,949.60 $37,019,924.41 $38,850,921.65
Operating Cash Flow $5,642,077.31 $14,105,193.27 $24,684,088.22 $37,025,132.33 $38,856,438.94
Cash $5,703,631.35 $14,259,078.35 $24,953,387.13 $37,430,080.69 $39,301,584.72
Total Assets $5,804,502.88 $14,511,257.19 $25,394,700.09 $38,092,050.13 $39,996,652.64
Key Financial Assumptions
• Annual Growth Rate: 15% in Year 1, 8.5% in Year 2, 5% in Year 3, 2.5% in Years 4 and 5.
• Gross Margin: 49.97%.
• Consistent growth in revenue, net income, and cash flow across the five years.
• No long-term debt, operating on a cash basis.
9. Management Team
· William Lott, a licensed pilot and IBM software engineer, formerly worked on the original Lotus Notes development team at Lotus Development Corp. before it was acquired by IBM. His knowledge and experience with rolling out major software application products to a mass market is invaluable. He is the driving force behind this new and innovative product.
• Larry Hall: Senior Systems Engineer. Larry is a Sr. Computer Systems Engineer with Windows Server experience, CompTia A+ Certified, Network Communication, Firewall, Security and CLOUD Systems Certified Administrator and our System Guru for LottoGraphs Platform.
• Roy Rhodes: Business Development Manager. Roy Rhodes is retired but has worked for three Fortune 500 companies in various management capacities including sales. He will head up our Business Development Team, reaching out to Vendors, Lottery Retailers, and other Lottery Companies for Joint Venture Deals.
Outside Sourced Teams
Sumit Sajankar, Shifan Asif Khan, Shashank Bafna,, Gaurav Raghuvanshi
Sanjay , Hanif
10. Risk Analysis The risk of business failure is considered low due to the established nature of the lottery industry. The primary risks are related to business liability regarding product quality and services. These risks will be mitigated with a standard business liability insurance policy.
11. Exit Strategy Potential exit strategies include:
• Acquisition by a larger media or gambling company or lottery operator.
• Initial Public Offering (IPO) after achieving significant scale and profitability.
• Strategic partnership with a major player in the gaming or entertainment industry.
We have started to contacted The
DraftKings +
JackPocket which was acquired by them last year.
SEE HERE >>
Also started Contacting
www.Lottery.com as another potential Joint Venture Partner as well.
There are other Gaming Companies, and State Lotteries that we will be targeting in the coming months.
12. Strategic Plan
• Obtain First Seed Round funding of $.5 – 2.0 Million.
• Lease a larger initial LG facility by the end of FY-1
• Operate LG for 24 months or until Revenues exceed Expenses.
• Year 5 Gross Revenue of $62 Million and Operating Margin of 49+% of Sales.
• Achieve $9 Million in First Full Year Sales Revenue.
• Achieve a Website Page Rank of ‘5’ and 10000 Page Views/month in the first year.
• Provide tested and verified Interactive Multimedia Lottery Videos - with affordable rates.
• Create branding recognition to attract a constantly increasing number of Video Subscribers.
• Demonstrate the delivery of Presentation Models with Facebook-enabled acquisition.
• Be recognized nationally as a leader in advanced Interactive Multimedia Lottery Videos.
• Demonstrated success in building a track record of developing new Video capabilities.
• Add New AI Artificial Intelligence Features to LottoGraphs Software Development.
13. Competitive Advantages
• High-Quality Animation: Visually stunning and engaging animations that stand out from text-based or static graphic content.
• Data Visualization Expertise: Presenting complex data in a clear, concise, and visually appealing manner.
• Multi-Platform Distribution: Reaching a wider audience through YouTube, social media, and potential partnerships with other platforms.
• Focus on Entertainment and Storytelling: Creating engaging content that goes beyond just delivering results.
• Strong Brand Identity: Developing a recognizable and trustworthy brand associated with lottery information and entertainment.
• Patent Pending Database Animation Graphics Engine for real-time interactive analysis.
• First to Market with Real-Time Interactive Animated Graphic Analysis.
14. Investor Highlights
• Proven Market: The lottery industry's consistent growth and recession-resistant nature provide a stable foundation for investment.
• Large Target Audience: LottoGraphs appeals to a broad demographic of lottery players, including both casual and avid participants.
• Scalable Business Model: The product's digital format enables efficient distribution and scalability.
• Multiple Revenue Streams: Diverse revenue channels ensure stability and growth potential.
• High Growth Potential: The business model is designed to generate significant profits with a goal of achieving $9 million in first-year sales and a five-year gross revenue of $62 million.
• Unique and Innovative Product: Animated data videos with real-time analysis set it apart from the competition.
15. Expansion Strategy
• Expand into all other State Lottery Games in the U.S. and other lottery games globally.
• Develop for Casino Keno games.
• Develop for Sports Betting Venues.
• Expand into other Video Animation Services.
• Explore acquiring other, profitable Video Lottery firms.
• Add a Gaming Component to LottoGraphs for Facebook Apps.
• Sports Betting App Development for Draft King and Fantasy Sports Betting, FanDual, MGMBet etc.
Develop LottoGraphs Database Animation Graphics Engine for financial marketplace forecasting and fantasy sports betting.
16. Use of Funds
• Initial funding will be used for startup costs:
◦ Equipment
◦ Software
◦ Marketing
◦ Initial Operating Expenses
17. Financial Summary
• LottoGraphs projects significant revenue growth - $9 million in Year 1 to over $62 million in Year 5
◦ Net Income After Taxes: projected to grow from $5,641,133.09 in Year 1 to $38,850,921.65 in Year 5
◦ Operating Cash Flow: projected to grow from $5,642,077.31 in Year 1 to $38,856,438.94 in Year 5
I’m not a Financial Expert and we should get these Financial Numbers verified by a Certified CPA – Certified Public Accountant. They were taken from other Comparable Companies in this Lottery Industry Space.
Conclusion LottoGraphs offers a compelling investment opportunity in a thriving and resilient market. The company’s innovative product, combined with its multiple revenue streams, strong management team, and well-defined operational strategy, makes it a strong candidate for significant growth and profitability. The business plan demonstrates a commitment to quality, creativity, and continuous improvement, making it an attractive investment for a collaborative partnership.
This comprehensive plan highlights how LottoGraphs meets investment criteria by showcasing a passionate and experienced team, a scalable and profitable business model, and a unique product with high growth potential.
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Reference video material for LottoGraphs
KENO - Lottery Games Promo Video
https://www.youtube.com/watch?v=JYHl5F4U7xY
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Use LottoGraphs to Track Trends, Like Financial Professionals use to track trends in the marketplace
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William B. Lott Jr.
Founder, Creator & CEO
The LottoGraphs Company
298 Union Street
Lynn, Mass. 01901
www.LottoGraphs.tv
Skype ID = live:wlott2004