Free Infomercial Company 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!
1.0 Executive Summary
The purpose of this business plan is to raise $1,800,000 for the development of an informational program production company while showcasing the expected financials and operations over the next three years. Infomercial Company, Inc. (“the Company”) is a New York based corporation that will provide develop and distribute sales based television programs produced by the business to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the Company will be actively engaged in the development and distribution of sales based TV programs produced by the business on behalf of clients. Once the Company receives an order for an infomercial production, the business will aggressively produce, distribute, and market the infomercial to networks or cable companies that will showcase the infomercial to the general public. The Company will earn substantial income from the distribution and licensure fees from the infomercial productions coupled with ongoing royalties from sales that are made by clients that are successfully earning income with produced infomercials. The third section of the business plan will further describe the services offered by the Infomercial Company.
1.2 The Financing
Mr. Doe is seeking to raise $1.8 million from an investor or group of investor(s). On a preliminary basis, Mr. Doe intends to sell a 50% interest in the business in exchange for the capital sought in this business plan. The investor will also receive a seat on the board of directors as well as a regular stream of dividends from the royalties earned on the sales based infomercial programs produced and distributed by the Company. The financing will be used for the following: • Development of the Company’s initial infomercial production infrastructure. • Financing for the first six months of operation. • Capital to purchase production equipment.
1.3 Mission Statement
To produce quality infomercials and other media that provides the Company’s clients with a method of effectively selling their products on TV and through online video distribution channels.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the entertainment and sales 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 clients that are seeking to have infomercials developed in order to produce income from TV based sales.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Infomercial Company, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Infomercial Company requires $1.8 million of investor funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
At this time, Mr. Doe is seeking to sell a 50% equity interest in the business in exchange for the requisite capital sought in this business plan. The investor will receive a seat on the board of directors and a share of the ongoing royalties generated by the Company’s productions.
2.4 Management Equity
Once the requisite capital is raised, Mr. Doe will retain a 50% ownership interest in the business.
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 Infomercial Company, Inc. Based on historical numbers, the business could fetch a sales premium of up to 10 times earnings if the Company earns substantial royalty income from the ongoing sales that are made by the Company’s clients.
3.0 Products and Services
Below is a description of the infomercial production and distribution services offered by the Infomercial Company.
3.1 Production Revenues
The bulk of the Company’s revenues will come from the development of infomercials for businesses that are seeking to reach specific demographics. These programs will be primarily placed by national advertising agencies that distribute infomercials to cable TV networks.
3.2 Ongoing Royalties
As the Company develops its portfolio of produced infomercials, in some deals, the business may receive ongoing royalties as the client generates sales through the programs produced by the Infomercial Company. These types of royalty deals will be reviewed on a case by case basis depending on the product and potential earnings income of the product being sold. Lower production costs would be offered in exchange for royalty based income based on sales.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
The business of providing televised content with the intent to generate sales is a complex business with many facets of operations. Typically, sales media content tends to not be immune from negative changes in the economy as revenues are wholly driven by sales and not entertainment. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
4.2 Industry Analysis
Within the United States there are more than 7,000 television program production companies (including infomercial companies) that operate among several thousand markets within the United States. Each year these companies aggregately generate $57 billion dollars a year of revenue while providing jobs for more than 280,000 people. Aggregate payrolls in each of the last five years have reached $9 billion dollars. Television is a mature industry, and the future expected growth rate will equal that of the general economy. One of the current issues facing the industry is the decline of people watching television in the United States. The advent of the internet and several other forms of media has caused a dramatic shift in how media companies do business. One of the most common trends among television programming companies (again, including infomercial businesses) is to develop content that can be concurrently streamed on the Internet.
4.3 Customer Profile
Among businesses that will use the Company’s infomercial production operations, the Company has outlined the following demographics: • Annual revenues in excess of $10,000,000 per year • EBITDA of $1,000,000+ • Operates in a product selling capacity. • Is seeking to spend $100,000 to $500,000 on an infomercial productions.
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
Infomercial Company, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business’s developed infomercials (on behalf of clients) among its targeted market. Below is an overview of the marketing strategies and objectives of the Infomercial Company.
5.1 Marketing Objectives
• Establish connections with entertainment advertising agencies and marketing firms that will outsource infomercial development to the business.
• Establish a strong presence in targeted domestic markets.
5.2 Marketing Strategies
Management intends on running a number of advertisements within the United States that specifically target advertising agencies, marketing firms, and other businesses that work with companies that are seeking to develop a greater advertising presence via the development of infomercial programming. On a regular basis, the Management Team will attend industry conventions and trade shows among companies that sell specialized financial products, new inventions, and informational products.
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
• Infomercial Company, Inc. will have an annual revenue growth rate of 16% per year.
• The Founder will acquire $1.8 million of equity funds to develop the business.
7.2 Sensitivity Analysis
The Company’s revenues are sensitive to the overall condition of the economic climate. Advertising revenues have a tendency to decline in an economic recession, as businesses scale down their marketing efforts. However, the high gross margins generated by the business through its production operations will ensure that the Company is able to maintain profitability and a positive cash flow 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