Free Cloud Computing Service 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
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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!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a cloud computing and virtual machine company while showcasing the expected financials and operations over the next three years. Cloud Computing, Inc. (“the Company”) is a New York based corporation that will provide offsite management of customers domain names, cloud computing machines, and security certificates to customers on a nationwide basis. The Company was founded by John Doe.
1.1 Products and Services
The primary source of revenue for the business will come from the direct hosting and management of virtual machines and cloud computing software on behalf of customers on the Company’s server network. At the onset of operations, the Company will have the capacity to host up to 2,000 separate cloud computing systems. The Company will also have specialized servers for customers that have extensive dedicated server needs (this is especially true of businesses that have a high volume of bandwidth needs). From this segment of the business, the Company will generate monthly recurring revenues for providing these services. Cloud Computing, Inc. will also generate secondary streams of revenue from the sale of domain names (as a third party vendor) as well as security certificates. The Company’s final revenue stream will come from affiliate revenues among vendors that can provide customers with virtual machine development solutions. The third section of the business plan will further describe the services offered by Cloud Computing, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 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 office location. • Financing for the first six months of operation. • Capital to purchase servers. Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
Cloud Computing’s mission is to become the recognized leader in its targeted market for outstanding cloud computing and virtual machine services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the information technology 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 mid sized to large businesses within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Cloud Computing, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Cloud Computing, Inc. requires $100,000 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 Cloud Computing, 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 Cloud Computing, Inc. Based on historical numbers, the business could fetch a sales premium of up to 6 times earnings based on the recurring revenues generated from cloud computing and virtual machine services.
3.0 Products and Services
Below is a description of the services offered by Cloud Computing, Inc.
3.1 Cloud Computing Services
The primary revenue center for the business will come from the ongoing dedicated virtual machine and cloud computing services that will be offered to medium and large sized businesses within the Company’s targeted market. These virtual machines and cloud computing services will allow businesses to more effectively communicate by allowing individuals to connect to a broad spectrum of programs from one centrally located server.
3.2 Ancillary Products
In addition to cloud computing and dedicated server services, the business will also provide customers with the ability to register domain names, obtain security certificates (issued by certified authorities), dedicated customer support, and other ancillary services that compliment the Company’s primary revenue center. Mr. Doe expects that these ancillary services will generate 25% of the business’s revenues.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the technology services 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 sluggish. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this sluggish will continue for a significant period of time, at which point the economy will begin a prolonged recovery period However, cloud computing businesses operate with great economic stability as the recurring streams of revenue ensure that these businesses remain profitable despite deleterious economic climates.
4.2 Industry Analysis
The dedicated web hosting industry, server collocation industry, and general technology industries are extremely important to both businesses and individual users. This industry aggregately generates in excess of $160 billion dollars a year. The market is comprised of approximately 12,000 businesses that operate throughout the continental United States. Additionally, the industry employs more than 300,000 people and generates gross annual payrolls of $50 billion dollars. The industry has had tremendous growth over the last twenty years. As more businesses and individuals demand more sophisticated technology systems, the industry has seen its growth increase to an average five year compounded growth rate of 70.1%. This trend is expected to continue as the need for Internet, intranet, and communications continues to grow beyond the standard economic rate of growth. Additionally, the technology landscape is an ever-changing arena of business where new technologies and businesses are being developed on a regular basis and with this growth is the need for continually upgrading and improving existing information technology platforms. Approximately 40% of the industry revenues are generated from information technology expenditures. As businesses continually need greater levels of internet connectivity (including the introduction of cloud computing), the market share of IT is expected to increase as a function of the technology industry as a whole.
4.3 Customer Profile
Cloud Computing, Inc. will have two primary client groups: small businesses and corporations. Common traits among small business clients will include: • Annual revenues of $100,000 to $1,000,000 • Will spend $500 on cloud computing services and virtual machine services. Among business clients, Mr. Doe has outlined the following demographics that will be used to target this customer segment: • Annual revenues of $1,000,000+ • Maintains a large scale information infrastructure • 50% of clients will want their server to have secure cloud computing functionality.
4.4 Competitive Analysis
As stated above, the recurring streams of revenue and economic stability of virtual machine hosting businesses have driven several thousand market agents into the industry. As such, one of the ways that cloud computing and dedicated server companies remain competitive is by providing superior customer service to its client base. Major competitors in this field, include, but are not limited to: • GoDaddy.com (largest by volume competitor) • UplinkEarth.com (well regarded, but has recently had severe technical issues).
5.0 Marketing Plan
Cloud Computing, Inc. 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 Company.
5.1 Marketing Objectives
• Establish relationships with web development firms that operate on a national basis.
• Implement a large scale search engine optimization and pay per click campaign at the onset of operations.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends to use a high impact marketing campaign that will generate a substantial amount of traffic to Cloud Computing, Inc.’s online platform. These strategies primarily 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 cloud computing services, the Company will appear on the first page of the search (this will take a substantial amount of work). This strategy is technically complicated, and the Company 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, Cloud Computing, Inc. 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 will be the primary method for generating visitors at the onset of operations.
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
• Cloud Computing, Inc. will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $100,000 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 an economic downturn, the business may have a decline in its revenue growth. However, Cloud Computing, Inc. will generate recurring streams of revenue from its developed client base that will ensure the Company’s profitability on a monthly basis. Additionally, the margins generated by the business are extremely high while operating costs are moderately low.
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