Free VoIP 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 $200,000 for the development of a voice over internet protocol (VoIP) product sales and installation services while showcasing the expected financials and operations over the next three years. VoIP Company, Inc. (“the Company”) is a New York based corporation that will provide sales and installation of VoIP products and services customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The business will generate revenue among two primary revenue streams: the sales of VoIP phone systems and monthly fees from VoIP services. The Company intends to provide phone systems to home users as well as small and medium sized businesses throughout the target market. The Company will also generate revenues from the ongoing sale of voice over internet protocol service. Mr. Doe is currently sourcing a number of major cable suppliers that will work with VoIP Company, Inc. to provide service on an outsourced basis for customers. The Company, through its outsourced VoIP services, will provide customers with many ancillary features including auto attendants, call queues, and conference bridges. The third section of the business plan will further describe the services offered by the VoIP Company.
1.2 The Financing
Mr. Doe is seeking to raise $200,000 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
VoIP Company, Inc. will strive to become recognized as the most progressive enterprise in the VoIP communications business. The Company will offer customers cost effective phone systems and VoIP services for both residences and commercial enterprises.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the telecommunications 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, small businesses, and medium sized businesses within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
VoIP Company, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the VoIP Company requires $200,000 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 VoIP Company, 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 VoIP Company. Based on historical numbers, the business could fetch a sales premium of up to 6 times earnings.
3.0 Products and Services
Below is a description of the products services offered by VoIP Company, Inc.
3.1 Sales of VoIP Phone Systems
A substantial amount of the Company’s gross income will come from the sale and installation of voice over internet protocol based home and office phone systems. The business will maintain an expansive inventory of VoIP boxes, routers, and PBX systems (Private Branch Exchanges used in business operations). Management expects that at the onset of operations, approximately 60% of the Company’s revenues will come from the sale of these products. Once the business establishes a long roster of clients that are enrolled in the Company’s VoIP services, the aggregate income for the business from product sales will decline to about 40% as the recurring income streams grow faster than the product sales segment of the business.
3.2 VoIP Phone Installation and Service
Management expects that the installation and management of voice over internet protocol phone services will flourish as the technology becomes more refined. This area is expected to grow rapidly over the next five years as more and more businesses and homes integrate Voice over Internet Protocol (VoIP) technology. This technology is synchronous with internal wireless internet infrastructures, and Management recognizes the sizable opportunity from these technological developments. VoIP Company, Inc. will generate substantial revenues from the ongoing monthly sale of outsourced VoIP services. At this time, Mr. Doe is sourcing a number of major cable providers that will partner with the Company to provide these services to customers on an outsourced basis.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the VoIP and telecommunications 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 until mid-2010, at which point the economy will begin a prolonged recovery period. However, as economic conditions have deteriorated in the US, businesses (and residences) have sought ways to reduce their monthly expenditures. VoIP Company, Inc., through its products and services, can effectively reduce the costs associated with monthly telecommunications services by more than 50%.
4.2 Industry Analysis
Over the next ten to fifteen years, it is expected that this new technology will completely negate standard telephone lines. However, there are certain drawbacks from both an operating and a regulatory standpoint. VoIP phones must be connected to a broadband connection that is subject to failure should electricity lines go down. Additionally, the regulations regarding the VoIP phone industry is beginning to become more complex. It is difficult to determine the future regulations and taxes that will associated with the VoIP telecommunications industry. The telecommunications industry is one of the largest industries in today’s global economy. In the United States, the industry generates more than $623 billion dollars a year of revenue. Additionally, over three million people are employed among 114,775 telecommunications businesses in the U.S. Annual payrolls are expected to reach $200 billion dollars in 2008 for the industry.
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
There is a significant amount of competition in the VoIP services industry. As the industry further develops, it is fully expected that there will be considerable price compression as agents within the market begin a pricing war. This scenario is fully expected to occur as it did within the long distance and wireless telecommunications markets. However, as this is a new technology and the regulatory landscape has not yet fully developed, this situation is not anticipated to occur for another five to seven years.
5.0 Marketing Plan
VoIP Company, 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 VoIP Company.
5.1 Marketing Objectives
• Establish connections with small business associations that will refer clients to the Company.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Management intends to use a number of marketing strategies that will promote sales of VoIP phone systems and VoIP ongoing service among commercial and residential customers. This Company will accomplish its marketing through several advertising channels including mailings, print advertisements, and through the Company’s website. Currently, Management is developing an expansive sales literature packet that will showcase the features of using the Company’s VoIP product systems and VoIP services for commercial enterprises. These sales literature packets will be distributed among members of the Company’s primary commercial enterprise targeted demographic base. VoIP Company, Inc. will also maintain traditional advertisements among selected newspapers, local newspapers, Yellow Books, and online directories that bring up results for phone system/service providers within the target market. Finally, the Company will develop an interactive online website that will showcase the operations of the business, its VoIP product lines, its services, pricing information, and how to contact the Company. This website will be registered with a number of online local directories and internet portals.
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
• VoIP Company, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $200,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are moderately sensitive to changes in the general economy. VoIP high-speed internet has become a utility that is comparable to electricity for most residences, and the economy would need a sharp pullback or economic recession before customers cancel their subscription accounts. However, once installed, these systems will become integral for both home and business users, and Management expects that even an economic recession would not result in a large revenue decline for the business.
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