Free Classifed Ads Website Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $150,000 for the development of an online classified ads website that will provide a platform for people to market their services within the local market of the New York metropolitan area. This business plan will also showcase the expected financials and operations over the next three years. Classified Ads Website, Inc. (“the Company”) is a New York based corporation that will sell subscription based advertising space while generating advertising revenues via its online platform (www.mysite.com) to users. The Company was founded by John Doe.
1.1 Products and Services
The Classified Ads Website allows business users and personal users to place information on the website that will allow users within the New York metropolitan area to see the products/services offered by the Company’s customer base. The business will generate recurring streams of revenue from the ongoing enrollment of businesses on the Company’s website. The business will generate revenues from static and dynamic advertisements that generate revenues on a per 1000 impressions basis while concurrently earning other income from affiliate partner revenues. The third section of the business plan will further describe the services offered by the Classified Ads Website.
1.2 The Financing
Mr. Doe is seeking to raise $150,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s online platform. • Financing for the first six months of operation. • Capital to purchase servers, computers, and related technology Mr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
The Classified Ads Website’s mission is to become the recognized leader in its targeted market as a platform where people can place high impact classified ads.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the online and Internet industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and businesses within the Company’s demographic.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Classified Ads Website, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Classified Ads Website requires $150,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Classified Ads Website, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Classified Ads Website. Based on historical numbers, the business could fetch a sales premium of up to 10 times earnings.
3.0 Products and Services
Below is a description of the benefits offered by the Classified Ads Website.
3.1 Benefits of the Classified Ads Website
Below is a brief summary of benefits offered to the end user of the Classified Ads Website (www.mysite.com): Advertisers • Users can quickly interact with businesses and individuals offering services on the Company’s platform. • Business can maintain an extensive profile that will feature their classified advertisements. The business will generate recurring streams of revenue from the ongoing sale of classified advertisements to users that are uploading advertisements to the website. The anticipated monthly fee for this service will be $9.99 per advertisement.
3.2 Advertising Revenues
The secondary revenues will come from the sale of advertising space to businesses. At the onset of operations the business will develop a relationship with Google AdSense so that the business can immediately generate revenue. Each time a visiting user clicks on one of the advertisements for the business, the Company receives a payment from Google. These ads will be tastefully placed throughout the Classified Ads Website’s platform. The Company also intends to develop its own internal advertising programs that will feature static advertisements within the website. These advertisements will be sold directly to advertisers rather than through a third party system, like Google AdSense. In the future, the Classified Ads Website will also seek to develop product affiliation and corporate sponsorship relationships which would further the Company’s visibility and revenue streams.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the online advertising and e-commerce industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue for a significant period of time, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
According to PriceWaterhouseCoopers 2007 report on aggregate internet marketing budget statistics, it is anticipated that internet marketing expenditures in the US will reach $50 billion dollars per year by 2010. Currently, internet marketing is a $40 billion dollar per year industry. Approximately 80% of this revenue is from keyword search advertising with the rest of the revenue generated from rich media, banners, classifieds, sponsorships, referrals, and email advertisements. This industry is expected to continue to grow as the numbers of businesses increase. The growth rate of the industry over the last five years has been well over 40% per year with this trend expecting to continue and then level off over the next five years.
4.3 Customer Profile
The Classified Ads Website’s average client will be a business owner operating within the New York metropolitan area. Common traits among end users will include: • Annual business revenue of $100,000 to $500,000 per year. • Between the ages of 25 and 60. • Has high speed internet access • Is familiar with the concept and operations of online classified websites.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Classified Ads Website intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Classified Ads Website.
5.1 Marketing Objectives
• Develop promotional giveaways that will draw users to the website via viral marketing methods.
• Establish relationships with advertisers that are targeting people that search online for services that they need.
• Develop an expansive online presence through the use of pay per click marketing and search engine optimization.
5.2 Marketing Strategies
Mr. Doe intends to use a high impact marketing campaign that will generate a substantial amount of traffic to www.mysite.com. These strategies include the use of search engine optimization and pay per click marketing. The Company’s web development firm will place large amounts of linking text on the Company’s website. For instance, when a person does a Google search for specific services in the New York metropolitan area, the Company will appear on the first page of the search. This strategy is technically complicated, and the Classified Ads Website will use a search engine optimization firm to develop the Company’s visibility on a non-paid basis. Management expects that a SEO firm will place large amounts of linking data and text specific keywords into the business’s website, which will allow the Company to appear more frequently among search engines. A majority of web portal and search engine companies use very complicated algorithms to determine a website’s relevance in relation to a specific keyword. SEO firms place text and tags on the website to increase the rank of a specific website. Additionally, the Classified Ads Website will use several pay methods for increasing the Company’s visibility. This strategy is expensive, but the results can be phenomenal if this marketing strategy is properly executed. These advertisements appear along the border and side of a website, and each time a person clicks on the website, a small fee ranging from fifty cents to one dollar is charged to the Company’s account. This strategy will be used until the Company gains momentum.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Classified Ads Website will have an annual revenue growth rate of 31% per year.
• The Owner will acquire $150,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of a severe economic decline, the demand for specialty online based advertising may decrease significantly, which may cause the advertising revenue generated by the business to level off or decline. However, the high margins associated with the Classified Ads Website will ensure that the business will be able to remain profitable and cash flow positive at all times.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis