Free Social Networking 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 $175,000 for the development of an social networking based website that acts as a profile and communication forum. This business plan will also showcase the expected financials and operations over the next three years. The Social Networking Website, Inc. (“the Company”) is a New York based corporation that will sell advertising space while providing a community forum through its online platform (www.mysite.com) to users. The Company was founded in 2009 by John Doe.
1.1 Products and Services
Users that enroll on the website’s online directory will be provided with a forum that they can use to connect to other enrolled members. Each user will have a profile their showcases personal information and insight into their daily lives and friends. A social networking website has become a business phenomenon in the last five years. The Social Networking Website will use a high impact marketing campaign that will drive a tremendous amount of traffic to the website. These marketing strategies will be outlined in the fifth section of the business plan. The third section of the business plan will further describe the services offered by the Social Networking Website.
1.2 The Financing
Mr. Doe is seeking to raise $175,000 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.
1.3 Mission Statement
The Social Networking Website’s mission is to provide a forum for the general public to connect from its online platform, www.mysite.com.
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 within the Company’s demographic.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Social Networking Website, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Social Networking Website requires $175,000 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 Social Networking Website, Inc.
2.5 Exit Strategy
The Management has planned for three possible exit strategies. The first strategy would be to sell the Company to a larger entity at a significant premium. Since, the social networking and online advertising content industries maintains a very low risk profile once the business is established; the Management feels that the Company could be sold for ten to fifteen times earnings. The second exit scenario would entail selling a portion of the Company via an initial public offering (or “IPO”). After a detailed analysis, it was found that the Company could sell for twenty to thirty times earnings on the open market depending on the business’s annual growth rate and strength of earnings. However, taking a company public involves significant legal red tape. Social Networking Website, Inc. would be bound by the significant legal framework of the Sarbanes-Oxley Act in addition to the legal requirements set forth in form S1 of the Securities and Exchange Commission. The Company would also have to comply with the Securities Act of 1933 and the Exchange Act of 1934.
3.0 Products and Services
Below is a description of the benefits (to both users and advertisers) offered by the Social Networking Website.
3.1 Benefits of the Social Networking Website
Below is a brief summary of benefits offered to the end user of the Social Networking Website: Included in paid version of business plan.
3.2 Affiliate Programs
In addition to the advertising revenues generated from advertising, the business may also develop affiliate marketing programs that will allow the business to generate additional income from the sale of products from associate vendor’s websites. The typical commission for providing a referral sale is 10%, and this could become a substantial revenue center for the business once the Company’s enrollment begins to expand substantially.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
The business of providing free Internet content with the ability to generate revenue from advertising sales and affiliated product sales is a complicated business that has many operating facets. Typically, online media content is immune from general changes in the economy, as the content is provided for free, and if people continue to go to the website, the business will consistently be able to sell advertising space. As such, much of the following market analysis is geared towards the entry plan of the business and the expansion of its customer base.
4.2 Industry Analysis
The advertising industry is one of America’s largest service providers in the economy. There are over 13,000 firms providing advertising and marketing services to clients. The industry generates over $160 billion dollars of revenue for the U.S. Economy. Additionally, over 200,000 people are employed throughout the industry with an average annual payroll of $75 billion dollars. One of the most interesting aspects of the advertising industry is the ability to develop simultaneous traditional and experimental forms of advertising. The advent of the Internet has allowed businesses to communicate effectively with a number of advertising businesses that provide specialized advertising activities. Many sites are now developing around the concept of providing entertainment content in order to generate revenues. Many major internet portal sites have reached market valuations exceeding $100 billion, and revenues reaching into the tens of billions of dollars.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
With internet technology quickly becoming a saleable commodity, a number of websites have developed within the market that provide identical or substantially similar services to that of the Social Networking website. The current market trend among these websites is to allow users to upload their own content such as music or proprietary videos. As time progresses, Management will continually update the web portal and integrate new technology which will allow users more functionality for their online experience. EXPANDED IN PAID VERSION OF BUSINESS PLAN
5.0 Marketing Plan
The Social Networking 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 Social Networking Website.
5.1 Marketing Objectives
• Develop an expansive online presence through the use of pay per click marketing and search engine optimization.
• Develop promotional giveaways that will draw users to the website via viral marketing methods.
• Establish relationships with advertisers that are targeting a computer savvy younger demographic.
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. Additionally, conventions, technology and advertising trade shows, online advertising activities, sales development and viral marketing campaigns will follow carefully orchestrated strategies by marketing personnel in conjunction with marketing experts. Timely coverage of the Social Networking Website will be further directed through ongoing press relations, news releases and feature stories targeted at key Internet content communities and other media outlets. 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 social networking websites, the Company will appear on the first page of the search. 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.
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 Social Networking Website will have an annual revenue growth rate of 45% per year.
• The Owner will acquire $175,000 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 revenue generated by the business to level off or decline. However, Google AdSense and internal online advertising programs have proven to be a very popular advertising method for many businesses, and only in a steep economic decline does Management foresee a decline in top line revenues.
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