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Do you want to start Online Company business plan?
If you are thinking of having an online store business, now is a great time to have one since the increased use of the internet during the pandemic has boosted online sales. Starting an online store business doesn’t require you to have a huge initial investment or a proper office to start from. You can start it at any scale and can expand or narrow down your offerings whenever you want. The most amazing thing about this business is that you can start an online store in whatever niche you like. Be it a grocery, clothing, or tech gadgets.
Although setting up this venture is relatively easier, it is still essential to follow the proper procedure of starting a business. First, you will have to make a business plan for online store. To learn how to write a business plan for online store, you can take help from this sample. Here we’ve provided a detailed online retail store business plan developed for ‘Technojar’.
Executive Summary
2.1 The Business
Technojar will be an online tech store owned by Simon Stalin. The business will provide technical products and gadgets to various consumer groups across Queens and Brooklyn. A wide range of products will be offered from smartphones and tablets to laptops and PCs. Hence, Simon will be using a diverse business plan online retail store for Technojar.
2.2 Management of Online Company
To ensure that all aspects of the business are coherent, you must prepare unique retail business plans for the services that you offer. In your online retailer business plan you should evaluate the technical, financial, and human resources you have at your disposal. And then construct a way to utilize and manage these resources in the best way possible.
Here, you will find guidance on how to make a business plan for an online store. We are providing a business plan for online store pdf acquired by Technojar to help you in devising an online retailer business plan for your startup.
2.3 Customers of Online Company
Our customers will work in different sectors and belong to different social groups since technology is used by everyone these days and hence, everyone requires technological assistance. From IT specialists to healthcare workers, Technojar carters to everybody using different kinds of software. However, our potential and recurring customers are identified as follows:
- Individual Consumers
- Banks & Schools
- Commercial Businesses
- Institutions & Organizations
This business plan sample online store devised for Technojar helps address the demands for all of the above consumer groups.
2.4 Business Target
Our target is to become the most trustworthy and reliable choice for our target customers whenever they need assistance with any technological problem, that too with the ease of reaching us online.
You must have a comprehensive business plan for investors to make your business financially sustainable. Our financial targets to meet for the first three years of our launch are demonstrated below:
Company Summary
3.1 Company Owner
Simon Stalin will be the owner of Technojar. Simon has completed his Bachelor’s in Software Engineering from Arizona State University a few years back. After his stellar academic career, he worked as a software engineer at Microsoft for two years. However, he left his job to pursue his dream of running his own business. This online store business plan pdf will help you set up a business in case you have a vision like that of Simons’.
3.2 Why the Online Company is being started
Simon noticed that the there are simpy not many online tech stores in the US. In addition to that, the process of buying tech gadgets is unnecessarily complicated in some of the existing online stores. Simon realized that he could bring innovation in existing modes through his intellect and management knowledge. Therefore, he decided to start his own online tech store to fully implement the ideas he possessed.
3.3 How the Online Company will be started
Step1: Plan Everything
The first step before starting an online business is to come up with a business plan online store. To help you in creating a business plan we’re providing an online store business plan template. Simon decided to offer software solutions for various sectors and applications. Hence, you can have an idea of how a SaaS business plan package for various applications.
Step2: Define the Brand
The next step is to get recognized by defining your business’ services and values. During this time, you will have to develop and brand your policies so that your customers can identify your unique selling point and choose you over your competitors. For that, you will have to have a unique online store business plan sample.
Step3: Establish Your Corporate Office
Simon decided to rent an office in Brooklyn. Computers, a stable internet connection, and a team of web developers and engineers are what that’s needed at the office.
Step4: Establish a Web Presence
Provided that it is an online business store, Simon made sure that his start-up has a website with an interesting interface that is user friendly. He decided to promote his business through different social media platforms.
Step5: Promote and Market
The last step is to develop and execute a marketing plan to promote your services. Efficient marketing and promotion can help you position your business in the marketplace in a successful manner. This business plan template for online store will guide you on how to market your business efficiently.
| Start-up Expenses | |
| Legal | $100,400 |
| Consultants | $0 |
| Insurance | $23,000 |
| Rent | $15,000 |
| Research and Development | $10,000 |
| Expensed Equipment | $56,000 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $207,800 |
| Start-up Assets | $126,000 |
| Cash Required | $119,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $120,000 |
| Long-term Assets | $127,000 |
| TOTAL ASSETS | $531,000 |
| Total Requirements | $738,800 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $207,800 |
| Start-up Assets to Fund | $531,000 |
| TOTAL FUNDING REQUIRED | $738,800 |
| Assets | |
| Non-cash Assets from Start-up | $696,000 |
| Cash Requirements from Start-up | $102,000 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $883,000 |
| Liabilities and Capital | |
| Liabilities | $18,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $58,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $76,000 |
| Capital | |
| Planned Investment | $738,800 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $738,800 |
| Loss at Start-up (Start-up Expenses) | $68,200 |
| TOTAL CAPITAL | $807,000 |
| TOTAL CAPITAL AND LIABILITIES | $883,000 |
| Total Funding | $738,800 |
Services
Before starting any business, you must decide what services you want to provide your customers. The same goes for your online store. The business plan of online store for tech gadgets will be different than a business plan for a video game company because both require different expertise.
Since Simon decided to offer a wide range of services, the business plan developed for his business can be adopted for various online store business plan. You can take help from this business plan online store pdf for your online store business.
- Gadgets
Technojar’s primary products will be technological gadgets, including laptops, PCs, tablets, and smartphones. Besides that, the startup will allow its customers to buy any kind of smart device including fit bits and smart home components as well.
- Embedded Devices
Embedded computers and devices are used by various institutions including hospitals. The unique software, used in these computers, helps doctors with getting clearer images, with the option of getting them in 3D. The following are the features of the computers:
- An audio interface
- Clear, coloured imaging
- 3D figures
- Computer Parts
Today, computers are used by all institutions and businesses to host the databases of customer accounts and extensive data. Due to excessive comuter usage, computer parts are always in demand. That’s why we’ll be offering them on our online tech store.
- Gaming Equipment
Technojar will also sell all kinds of gaming equipment as well as all their components. As these are popular among children and enthusiastic adults alike, it is expected to regularly be in demand.
Technojar will offer free return services to its customer if any of its products are faulty in any way.
Marketing Analysis of Online Store Business
You must have an in-depth knowledge of your target market before starting a business. The ideal way of knowing your customers and competitors is to do the market analysis in your business plans for online store. The market analysis should also study the previous, existing, and forecasted market trends.
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If you don’t know the components of detailed marketing analysis, you can take help from this online store business plan sample pdf free of cost.
5.1 Market Trends
According to Statista, retail e-commerce sales produce about $4.28 trillion yearly. In general, the demand for online store businesses, especially for those about technological devices, has been growing exponentially. The ongoing pandemic has shifted most of the business activities to operate virtually, and hence e-commerce store market has the potential to grow further.
5.2 Marketing Segmentation
As per this business plan for online store pdf, Technojar will have the following groups of potential customers:
Business plan for investors
5.2.1 Individual Consumers
Our biggest customer group will be the individual consumers including kids, teens, and adults, who will be buying smaprthones, latpops, PCs, tablets, and gaming equipment from our online store. They’d form the major chunk of our sales.
5.2.2 Banks & Schools
Our second target customer will be banks and schools who require a variety of technical gadgets and systems for day-to-day functioning.
5.2.3 Commercial Businesses
This will be our third target group of customers. Whether they are a developing business or an established one, we will help provide them with the technology they need to make their products and services available to all of their customers easily.
5.2.4 Institutions & Organizations
All kinds of institutions and organizations, including hospitals and research labs, require technology to build their technical and data infrastructure. As technology is changing every day, we expect them to be our regular customer.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Individual Consumers | 42% | 30,000 | 36,000 | 43,200 | 51,840 | 62,208 | 10.00% |
| Banks & Schools | 18% | 20,100 | 24,120 | 28,944 | 34,733 | 41,679 | 10.00% |
| Commercial Businesses | 21% | 20,700 | 24,840 | 29,808 | 35,770 | 42,924 | 10.00% |
| Institutions & Organizations | 19% | 10,500 | 12,600 | 15,120 | 18,144 | 21,773 | 11.00% |
| Total | 100% | 81,300 | 97,560 | 117,072 | 140,486 | 168,584 | 10% |
If you have a business model similar to that of Technojar, this online store business plan template pdf will help you identify your potential customers.
5.3 Business Target
- To become the number one technology solution provider in Brooklyn and Queens
- To expand our services in the Bronx
- To earn a net profit margin of 10% in the upcoming fiscal year
- To achieve and maintain a CSAT score above 90%
5.4 Product Pricing
Our prices are similar to what our competitors offer. However, as per our sample online store business plan discounts are offered to new customers to establish customer loyalty.
Marketing Strategy
To become prominent amidst a huge competition, you need to come up with a distinguished unique selling point. Moreover, you also need to develop a strong marketing strategy so that more and more people recognize you.
In this online store business plan sample pdf we’re providing the sales strategy of Technojar. You can learn a lot from this free online store business plan. This sample business plan for online store adopted by Technojor will adopt the following strategies:
6.1 Competitive Analysis
- We have excellent customer care service. We’ll record customers’ feedbacks to provide them improved services every time they make an order from us.
- We will have return policies that are less complicated and efficient.
- Discounts will be offered to new customers, which will help acquire a greater market share.
6.2 Sales Strategy
- We will advertise our services through Google Local ads service and social media.
- We’ll offer a 30% discount on new businesses to promote the use of technology in startups.
- Introductory packages and incentives will be provided to small-scale IT businesses.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Gadgets (Laptops, Mobiles, etc) | 950 | 1,007 | 1,067 |
| Computer Parts | 850 | 901 | 955 |
| Gaming Equipment | 650 | 689 | 730 |
| Embedded Devices | 300 | 318 | 337 |
| TOTAL UNIT SALES | 2,750 | 2,915 | 3,090 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Gadgets (Laptops, Mobiles, etc) | $650.00 | $754.00 | $874.64 |
| Computer Parts | $450.00 | $522.00 | $605.52 |
| Gaming Equipment | $500.00 | $580.00 | $672.80 |
| Embedded Devices | $750.00 | $870.00 | $1,009.20 |
| Sales | |||
| Gadgets (Laptops, Mobiles, etc) | $617,500.00 | $759,278.00 | $933,608.23 |
| Computer Parts | $382,500.00 | $470,322.00 | $578,307.93 |
| Gaming Equipment | $325,000.00 | $399,620.00 | $491,372.75 |
| Embedded Devices | $225,000.00 | $276,660.00 | $340,181.14 |
| TOTAL SALES | $1,550,000.00 | $1,905,880.00 | $2,343,470.05 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Gadgets (Laptops, Mobiles, etc) | $300.00 | $330.00 | $346.50 |
| Computer Parts | $200.00 | $220.00 | $231.00 |
| Gaming Equipment | $200.00 | $220.00 | $231.00 |
| Embedded Devices | $450.00 | $495.00 | $519.75 |
| Direct Cost of Sales | |||
| Gadgets (Laptops, Mobiles, etc) | $285,000.00 | $332,310.00 | $369,861.03 |
| Computer Parts | $170,000.00 | $198,220.00 | $220,618.86 |
| Gaming Equipment | $130,000.00 | $151,580.00 | $168,708.54 |
| Embedded Devices | $135,000.00 | $157,410.00 | $175,197.33 |
| Subtotal Direct Cost of Sales | $720,000.00 | $839,520.00 | $934,385.76 |
Personnel plan
The online store business depends heavily on efficiency, technological expertise, and time management. Simon knew the importance of hiring collaborative and skilled employees. Therefore, he created a list of required employees along with selection criteria as he wrote the online store startup business plan.
7.1 Company Staff
As per this sample business plan online store, Technojar will employ for the positions:
- 1 General Manager
- 1 Customer service manager
- 5 Customer Support Individuals
- 2 Supply Chain Executives
- 1 Accountant
- 1 Digital Marketer
- 2 Web Developers
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| General Manager | $52,500 | $57,750 | $63,525 |
| Cusomer Service Manager | $42,500 | $46,750 | $51,425 |
| Cusomer Support | $182,000 | $200,200 | $220,220 |
| Supply Chain Executives | $50,000 | $55,000 | $60,500 |
| Accountant | $23,000 | $25,300 | $27,830 |
| Digital Marketer | $28,800 | $31,680 | $34,848 |
| Web Developers | $50,000 | $55,000 | $60,500 |
| Total Salaries | $428,800 | $471,680 | $518,848 |
Financial Plan
A sole focus on increasing sales does not ensure that your business has become successful and is yielding profits. To earn profits, it is essential to manage your operations timely and efficiently. To make sure that your business is not going into a loss, you must carry out a detailed financial analysis while you design your online store business plan doc.
In your financial plan, you must identify when and how you’ll be able to cover your investment amount with the earned profits. Moreover, you should also analyze your yearly expenses to find out the possibilities of reaching an economy of scale.
Here we’re providing an online store business plan example designed for Technojar. It is quite elaborate, hence will suffice for in-depth guidance.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $1,550,000 | $1,905,880 | $2,343,470 |
| Direct Cost of Sales | $720,000 | $839,520 | $934,386 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $720,000 | $839,520 | $934,386 |
| Gross Margin | $830,000 | $1,066,360 | $1,409,084 |
| Gross Margin % | 53.55% | 55.95% | 60.13% |
| Expenses | |||
| Payroll | $428,800 | $471,680 | $518,848 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $608,000 | $655,130 | $712,748 |
| Profit Before Interest and Taxes | $222,000 | $411,230 | $696,336 |
| EBITDA | $222,000 | $411,230 | $696,336 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $44,400 | $82,246 | $139,267 |
| Net Profit | $177,600 | $328,984 | $557,069 |
| Net Profit/Sales | 11.46% | 17.26% | 23.77% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- How do I write an online business plan?
You can learn how to write a business plan for online store by following this template. It has all the necessary details you need to draft your sample.
- How do you plan an online store?
The first step to planning any business is to read a business plan example for online store to use as a reference.
- How do I write a business plan for e-commerce?
You can write a business plan for e-commerce by looking at a free business plan for online store for guidance.
- How do you write a successful business plan for an online startup?
Writing a successful business plan can be hard when you are just starting but you can find business plan online store sample which you can then follow to develop a strong business plan for your company.
Download Online Store Business Plan Sample in pdf
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