Free Radio Station 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 a radio
station company while showcasing the expected financials and operations over the
next three years. Radio Station, Inc. (“the Company”) is a
based corporation that will provide develop and distribute radio programming
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 radio broadcasted programs produced by the
business. Once the Company “green lights” a new radio show or format, the
business will aggressively produce, distribute, and market the show to the
At this time, the business is acquiring its
radio licenses so that the business can immediately begin broadcasting once the
requisite capital is in place.
The third section of the business plan will further describe the services
offered by the Radio Station,
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 radio show programs
produced and distributed by the Company. The financing will be used for the
1.3 Mission Statement
To produce quality
radio entertainment and other media that provides the Company’s audience with
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
radio station industry. Through his expertise, he will be able to bring
the operations of the business to profitability within its first year of
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 quality disc jockeys and on air personalities that can
provide the Company with extensive materials that the Company can produce and
distribute via its radio broadcasting operations.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Radio Station, Inc.
The Company is registered as a corporation in the State of
2.2 Required Funds
At this time, the Radio Station
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 radio broadcasting.
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 Radio Station, 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 previous
3.0 Products and Services
3.1 Radio Operations
Below is a brief summary of
benefits offered to the listener and the advertiser of Radio Station, Inc.
stream of music content that appeals to an independent music audience.
giveaways of merchandise to listeners that register on the Radio Station
updates in the content and music programming offered by the business so the
Company may continue to maintain a large diverse customer base.
- Content that
appeals to a wide demographic of world wide listeners.
- Oversight for
the listening base of the radio station through third party advertising
- The ability
to quickly see the results from an advertising campaign.
The business will institute
several merchandise giveaways as a promotional campaign for the business’s
website. This should allow the business to draw more people to the website to
register for email updates and notification of new content.
3.2 Advertising Revenues
Among advertising revenue, the
primary stream of revenue generated from advertisements will come from the
Company’s broadcasting station. At the onset of operations, the Company will
solicit a third party advertising agency firm to source all advertisements that
will be played on the Company’s broadcasting station.
A secondary stream of revenue
generated for the business will come from the sale of static and dynamic
advertisements throughout the website and during streaming radio content. There
are a number of third party advertising providers that will pay the Company
directly for hosting their streaming content of advertisements. Radio Station,
Inc. will make full use of this content in order to generate predictable streams
of revenue on a monthly basis. Management is currently sourcing vendors for this
aspect of the Company’s revenue generation.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
The business of providing radio
broadcasted content with the ability to generate revenue from advertising sales
is a complicated business that has many operating facets. Typically,
entertainment media content is immune from general changes in the economy, as
the content is provided for free, and if people continue to listen to the
program, 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
Within the United States there are more than 7,000 radio program production 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. Radio is a mature industry, and the future
expected growth rate will equal that of the general economy.
4.3 Customer Profile
As each radio program and
production will target a different demographic, Radio Station, Inc. will conduct
an extensive demographic and marketing profile before each new radio program is
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
Radio Station, Inc. intends to
maintain an extensive marketing campaign that will ensure maximum visibility for
the business’s developed radio programming among its targeted market. Below is
an overview of the marketing strategies and objectives of the Radio Station,
5.1 Marketing Objectives
Establish a strong presence in targeted domestic markets.
Establish connections with entertainment advertising agencies and marketing
Build a large network of financial backers.
5.2 Marketing Strategies
Management intends on running a
number of advertisements within the United States that feature descriptions of
the Company’s radio programming, its disc jockeys, radio personalities, and
descriptions of the format of the Radio Station.
At the onset of operations, the Company will quickly source a number of
marketing firms and advertising agencies that place advertisements for
businesses on the radio waves. Radio Station, Inc. will develop an extensive
information brochure showcasing the listening base and the demographics targeted
by the business. As stated earlier, the Company intends to use a third party
advertising firm that will place radio advertisements for the Company’s online
and traditional broadcasts. This strategy will allow the business to operate
profitability from the onset of operations as the advertising revenues will be
generated immediately after the business launches.
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.more than 1 page.o:p>
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
77.1 Underlying Assumptions
The Company has based its
proforma financial statements on the following:
Radio Station, 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
Radio Station’s revenues are
moderately sensitive to changes in the general economy. Advertising revenues
have a tendency to decline in the event of an economic recession, as content
providers compete for small amounts of advertising dollars. The high gross
margins achieved by the Company will allow the business to remain profitable
even in the event of an economic recession.
7.3 Source of Funds /b>
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