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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Custom Business Plan
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Free Web Hosting 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.



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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 $100,000 for the development of a website hosting company while showcasing the expected financials and operations over the next three years. Web Hosting Company, Inc. (“the Company”) is a New York based corporation that will provide offsite management of customers domain names, websites, and security certificates to customers on a nationwide basis. The Company was founded in 2008 by John Doe.

1.1 Products and Services

The primary source of revenue for the business will come from the direct hosting of websites 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 30,000 separate domains and websites on its servers. The Company will also have specialized servers for customers that have extensive dedicated web server needs (this is especially true of businesses that have a high volume of e-commerce transactions). From this segment of the business, the Company will generate monthly recurring revenues for providing these services. Web Hosting Company, 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 website development solutions. The third section of the business plan will further describe the services offered by Web Hosting Company.

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.

1.3 Mission Statement

Web Hosting Company’s mission is to become the recognized leader in its targeted market for outstanding web hosting and technical support 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 individuals and businesses within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Web Hosting Company, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, Web Hosting Company, 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 Web Hosting 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 Web Hosting Company. Based on historical numbers, the business could fetch a sales premium of up to 6 times earnings based on the recurring revenues generated from web hosting services.

3.0 Products and Services

Below is a description of the web hosting services offered by the Web Hosting Company.

3.1 Web Hosting Services

As stated in the executive summary, Web Hosting Company, Inc. is primarily engaged in the business of providing a secure solution for individuals and businesses to host their websites so that anyone surfing the web can access their developed website. The business will have a multitude of packages available so that the Company can cater to individuals (with small websites) to large corporations that have enterprise level networking and hosting needs. The Company will feature state of the art servers that are capable of handling web traffic, email transmissions, and e-commerce transactions. The business will generate recurring revenues (billed on monthly, quarterly, or yearly basis) for rending these services to clients. As is standard in the industry, the Company will provide 24 hour phone and email support for any client that has a technical issue. In regards to service specifications, the business will be able to provide service to customers that have PHP or ASP.Net developed websites.

3.2 Ancillary Web Hosting Products

In addition to web hosting 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 web hosting and 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 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-2009, at which point the economy will begin a prolonged recovery period. However, web hosting 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

According to the US Economic Census, there are approximately 7,000 companies that provide web hosting or web hosting related services to customers within the United States. Each year, these businesses aggregately generate more than $20 billion of revenue while providing jobs for more than 100,000 people. In each of the last five years, aggregate payrolls have exceeded $4 billion per year. This is a mature industry, and Management expects that the future growth rate of the industry will mirror that of both the US economy and the global economy. As time progresses, Management expects that the number of businesses operating within this market will continue to grow. One of the primary attractive elements to this market is that the demand for web hosting services is insulated from changes in the general economy. The recurring streams of revenue generated by these companies coupled with the fact that business clients will always want to maintain a web presence makes the industry very attractive from a financial perspective.

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

As stated above, the recurring streams of revenue and economic stability of web hosting businesses have driven several thousand market agents into the industry. As such, one of the ways that web hosting companies remain competitive is by providing superior customer service to its client base. As web hosting is a commoditized industry, it is imperative that Web Hosting Company, Inc. offer round the clock support for its customers.

5.0 Marketing Plan

Web Hosting 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 Company.

5.1 Marketing Objectives

  • • Implement a large scale search engine optimization and pay per click campaign at the onset of operations.

  • • Establish relationships with web development firms that operate on a national basis.

  • • 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 Web Hosting Company’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 web hosting 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, Web Hosting Company, 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.

5.3 Pricing

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

  • • Web Hosting Company, 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, Web Hosting Company 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

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7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis