Free Online Data Storage 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
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 $150,000 for the development of an online information storage that will provide a platform for people to upload their content to the Company’s third party server. This business plan will also showcase the expected financials and operations over the next three years. The Online Data Storage, Inc. (“the Company”) is a New York based corporation that will generate revenues through its secured storage network via its online platform (www.mysite.com) to users. The Company was founded by John Doe.
1.1 Products and Services
The primary revenue center will come from the ongoing sale of network storage on the Company’s servers among individuals and businesses that want to store sensitive information (or standard information). The business will generate monthly fees from the ongoing storage of information on the Company’s third party servers. The business will generate secondary 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 Online Data Storage, Inc.
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 information storage 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
Online Data Storage’s mission is to become a recognized leader for providing secure storage services for individuals and businesses.
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 that require secure and non-secure data storage services.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Online Data Storage, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Online Data Storage 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 Online Data Storage, 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 Online Data Storage. 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 services offered by the Online Data Storage, Inc.
3.1 Online Data Storage Services
As stated in the executive summary, the primary revenue center for the business will come from the ongoing storage of electronic information on the Company’s servers. Each user will be given a unique username and password from which they can upload content. Each user will be given disk space ranging from 1 gigabyte to 1 terabyte. Management will charge a monthly fee of $9.99 per month to $99.99 per month depending on the amount of storage required by the individual user or business user.
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 Online Data Storage website. After time, these advertisements may be removed as the business reaches profitability.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the online data storage 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 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, Online Data Storage, Inc. will be able to remain profitable and cash flow positive at all times due to the highly recurring nature of the Company’s revenues.
4.2 Industry Analysis
The online data storage generates approximately $2 billion per year of revenue while employing approximately 5,000 people. This industry has experienced extremely sharp growth over the last decade as more and more people/businesses have integrated computers and networks into their business and personal lives and require specialized data storage needs. However, this industry is beginning to enter maturing as major competitors such as Moxie, Carbonite, Google, and others have entered the market with massive secure online data storage networks, and the Company expects that the average growth rate for the industry at large will remain at 3% to 5% per year during the next five years.
4.3 Customer Profile
The Online Data Storage, Inc.’s average client will be a young middle to upper middle class male of female or businesses that has offsite data storage needs. Common traits among end users will include: • Annual household income exceeding $50,000 • Between the ages of 25 to 50 • Has high speed internet access • Is familiar with the concept of online data storage. • Among businesses, has annual revenues exceeding $100,000 and holds a significant amount of sensitive information that needs to be constantly stored.
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 Online Data Storage 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 Online Data Storage, Inc.
5.1 Marketing Objectives
• Develop a high impact marketing campaign to inform businesses regarding the Company’s online data storage services.
• Establish relationships with IT professionals that will use the Company’s services to secure their clients services.
• 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 secure online data storage, the Company will appear on the first page of the search. This strategy is technically complicated, and the Online Data Storage, Inc. 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, Online Data Storage, Inc. will generate an expansive amount of revenues from developing ongoing relationships with information technology professionals that will use the Company’s services on a third party basis. This is anticipated to generate a significant amount of revenue from the onset of operations. Management will directly contact large scale IT firms as well as placing advertising within information technology focused publications.
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 Online Data Storage, Inc. 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 revenues of Online Data Storage, Inc. should not decrease as the business will continue to generate revenues on a monthly basis from the Company’s subscription based data storage service. Additionally, among IT professionals, the services rendered by the Company are a necessity.
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