This is an example of a completed business plan for a startup company providing web and graphic design services (screen design, online marketing, i. e. search engine optimization, social media marketing, click display marketing and web development) to companies in Germany. The company offers its services in the form of long-term maintenance contracts as well as complete service packages and campaigns, in order to enable the customers to focus on their actual core businesses. The location is the area of Giessen.
The company founder and manager has extensive knowledge experience in the field, both in practice as a web designer and internet marketer (8 years, employed/self-employed) as well as academically, being a graduate in electrical engineering and web design.
The business plan elaborates on crucial points like the concept (services incl. range of systems and programming languages, and the related operational procedures, USP, company vision), provides an overview of the market situation (competitive but with still increasing demand), as well as a risk analysis. It also gives information regarding potential business partners (an existing network of independent contractors) the marketing plan and financing.
While the expansion of the business is part of the strategy, it is expected that in the long-term the number of clients will decrease, so the focus lies on the increase of customer’s quality and loyalty (i.e. long-term and extensive customer relationships) by providing professionalism as well as high quality. It can be assumed that – given the current situation – the company will not only be well-established within short but also grow quickly.
While the facts as such might already be promising, their appropriate, convincing presentation is a crucial aspect as well. The financing of a business is an important issue, and a professional and adequate business plan will help establish the professional trust of potential investors.
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The primary business concept of the [SAMPLE DESIGN BUSINESS PLAN] Ltd. entails providing web and graphic design services to companies in Germany.
So far the focus of the manager’s work has been in these areas, both as a freelancer (self-employed) and on a permanent, long-term basis. Future clients will be supported in optimally structuring their digital marketing formation and choosing the right strategy. The [SAMPLE DESIGN BUSINESS PLAN] Ltd. will provide companies with adjustments to long-term maintenance contracts as well as complete service packages and campaigns, so that businesses can concentrate on their core operational competencies. The outsourcing of digital marketing work has become very important for companies in recent years in order to remain competitive. The manager is a graduate in electrical engineering and web design with 8 years of experience in web design / Internet marketing. He completed his studies in web design 2 years ago and has numerous references and professional certifications. A previous client and longtime employer who first hired Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder as an electrician was really satisfied with his work.
The manager will pursue further opportunities for expansion in the course of business. A particular focus in this case is the further utilization of existing knowledge in the area of screen design, online marketing (search engine optimization, social media marketing and click display marketing) and web development. Given the success to date, an existing network of independent contractors and the thought-out strategy of the manger is to assume that [SAMPLE DESIGN BUSINESS PLAN] Ltd. will establish itself well and grow rapidly.
The marketing services [SAMPLE DESIGN BUSINESS PLAN] Ltd. offers are in the areas of web design, graphic design and other services (Screen design, online marketing and web development). The manager can cover the complete range of web design services, having studied it and having access to a network of freelance experts. The manager has exceptional expertise when it comes to sites with mobile end devices, making him the right partner in even the most demanding projects. The following list includes the complete range of systems and programming languages, in which the startup can provide services:
HTML & CSS
PHP & MySQL
Content management systems (building your own CMS, thus easy to adjust and flexible)
The right decisions can be made at the very start of the project based on the manager’s experience in the field of online marketing and search engine optimization. The client’s aims for a modern-looking website with good functionality and a stable, lucrative Internet presence will be fulfilled to his/her complete satisfaction. The manager has also carried out numerous projects in the area of graphic design and is particularly well-versed in professional Adobe Creative Cloud programs and the Adobe Document Cloud programs. Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder obtained a number of certificates in a period of four months, which gave him further expertise apart from that attained in the course of his studies, so that he mastered the most complex applications and can pass this knowledge on to his assistants. More specifically, the [SAMPLE DESIGN BUSINESS PLAN] Ltd. offers graphic design services in the following areas:
Flyer and brochure design
Poster and print advertisement design
Product, image and advertising photography
The other services can generally be divided in three areas: screen design, online marketing und web development. Screen design is mainly about design of user interfaces for applications. Web development involves mainly programming applications (native, web and hybrid) and online marketing revolves around the following aspects:
SEO (Search Engine Optimization)
SEM (search engine marketing)
SEA (Search advertising)
Facebook marketing / Twitter marketing
Email Marketing / Newsletter marketing
Given this vast range of expertise, the [SAMPLE DESIGN BUSINESS PLAN] Ltd. can provide a very wide variety of services of very high quality and on great terms. The services can be provided as part of a maintenance contract for a fixed period of one year or as individual or package services. Currently, Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder already has a portfolio of clients from small and medium-size enterprises and associations. In the course of further expansion the product portfolio will also be extended because these clients will continue to be the startup’s most important target group.
1.2 Operational procedures The new clients acquired through various marketing activities (see marketing plan) make project requests by phone or email or conclude a maintenance contract. Clients can track the work done and the results through a seamless control system, and they also can ask for help and feedback in weekly video conferences. More complex project requirements will necessitate longer communication. Client requests are logged and freelance partners are informed what services have to be provided and for how long so that they can plan their time accordingly. The [SAMPLE DESIGN BUSINESS PLAN] Ltd. will have to outsource part of the services in the first few years to freelancers. Clients will be billed by adding up the working hours at the usual rates in this branch, which are in the range of XX-XX Euro.
The [SAMPLE DESIGN BUSINESS PLAN] Ltd. will create new synergies within its various business areas with view to benefit from further progressive marketing automation and digitization of the company, as being competitive largely depends on efficient use of marketing tools, particularly digital ones. The manager could attract a number of partners as a freelance web designer and online marketer / marketing consultant before founding his company, who would be suitable both as initial customers as well as references, making them crucial to the success of the [SAMPLE DESIGN BUSINESS PLAN] Ltd.
The departments of the [SAMPLE DESIGN BUSINESS PLAN] Ltd. could support each other, but are interdependent only to a very slight extent. It is also assumed that demand for the different services will probably peak at different times, so there will be an even balance of the workload of the manager and the assistants and the utilization of infrastructural resources. The most important selling point is definitely going to be the highly trained and experienced industry manager with the extensive software and expert knowledge that he’s bringing to [SAMPLE DESIGN BUSINESS PLAN] Ltd. His qualifications enable him to represent the company to the best possible extent. He has management experience both on site and by telephone.
1.4 Goal of the Company / Vision
The strategy of the company entails quality management without being too expensive for the main target group of clients (small and medium enterprises and local associations or establishments, public or private). This positioning can allow Design Ltd. to benefit maximally from the market environment on location and the prevailing demand and plan for rapid growth at an early stage. The company can be even more flexible by using modern technology with view to the Best Practice (communication, project management, management / accounting, etc.). Consistent analysis of business processes and the realization of cost savings at all levels will sustain satisfying conditions for clients. The strategy aims to present the company in the highly competitive online marketing field as service-oriented right from the start so as to increase its chances of being recommended by satisfied clients. The company’s professional services will ensure it is not forgotten by its clients and can serve their needs over a longer period. In X-X years the company would like to start hiring staff full-time to improve the capital planning and alleviate the workload of the manager so as to be active in other marketing areas as well. X-X full-time employees and a X-digit annual turnover with a profit in the range of XXX.XXX – XXX.XXX Euro are realistic X-year prospects.
2. Sample Design Business Plan: Market and Competition Analysis
2.1 Market Situation: Digital Services
The market for the services to be offered by [SAMPLE DESIGN BUSINESS PLAN] Ltd. is quite competitive in Germany, but despite this demand is not only high but on the rise. First, a European labor market study is used as an indicator of what trends are currently important. Then we examine the trends currently perceived by the major full-service digital agencies and established as part of a survey of the Bundesverband Digitale Wirtschaft (BVDW) e.V. (German Digital Analytics Association – GDAA). A recent labor market analysis of the European Web Association (https://de.webmasters-europe.org) in XXXX showed that compared to last year the number of vacancies for Internet specialists has remained at approximately the same very high level as in XXXX. Demand is highest for web developers and Linux administrators (more than X,XXX job vacancies for each), followed by online marketing experts (more than X,XXX jobs) and project managers (more than X,XXX vacancies). The demand for “pure” web designers, however, is not quite as high with just under X,XXX vacancies. The analysis of specific competences showed that new web technologies and development methods are becoming integrated within the current job profiles very quickly and companies are looking for very highly skilled experts that possess the latest know-how. HTML5 has become the standard for web designers. A lot of companies expect very good CSS knowledge and experience in the design of responsive websites that range from XX-inch screens to Smartphones.
There is still very high and urgent demand for IT specialists in Germany. According to the most recent data (XXXX) there were XX,XXX open and difficult to fill vacancies for IT professionals, of which XX,XXX at medium-size IT companies. It is estimated that companies in the ICT industry have created some XX,XXX new jobs in Germany in XXXX. The demand for IT freelancers is stable at a high level and will increase even more, as the GULP Project Exchange reported. The trade magazine Computer Week reported a strong and still growing demand for freelance Internet experts. Startups and smaller companies suffer most acutely from the lack of skilled workers, as they are generally not able to pay such high salaries as large companies are and the expenses and costs for staff are always higher.
As for Content Management Systems, there are XXX vacancies for highly skilled Typo3 experts, which is slightly less y/y (XXX, -X%). Demand for know-how of CMS-applications such as WordPress (+XX%), Drupal (+X%) and Joomla (+XXX%) has increased. It is highest for Joomla with XXX vacancies, but this is just a bit more than WordPress (XXX).
Based on this data one can claim demand for IT services is stable throughout Europe. Social media is the leading aspect in the area of web business/online marketing, as it has always been. Know-how/experience in SEO, SEM and SEA is highly demanded by online marketing managers. About XX percent of all companies in Germany employ at least one person who takes care of social media. This is up X% from XXXX.
Below is a table showing data of a survey of the XXX top digital agencies, which generated turnover of X,X bln. Euro in XXXX (just under XX.XXX staff). This data is essential for t he prospects of [SAMPLE DESIGN BUSINESS PLAN] Ltd.
First we see that competition is rising – a tendency closely followed by freelancers on online forums (ex. selbstaendig-im-netz.de):
Source: “Full-Service-Internet Agencies in Germany –Turnover, Developments and Trends 2015”, GDAA
The following data reflects the general market situation. Only about a third of agencies are resistant to fluctuation and a fifth are optimistic about the prevalent trend.
Source: “Full-Service-Internet Agencies in Germany –Turnover, Developments and Trends 2015”, GDAA
Most revenues are generated in areas where Sample Design Business Plan will be especially well positioned: the technical implementation. It is therefore of considerable advantage that the founder can contribute so much experience and expert knowledge. Marketing, branding and e-commerce remain the main revenue drivers for full-service agencies, which gives the founder an edge.
Source: “Full-Service-Internet Agencies in Germany –Turnover, Developments and Trends 2015”, GDAA
Source: “Full-Service-Internet Agencies in Germany –Turnover, Developments and Trends 2015”, GDAA
How is the web design industry changing? The Internet was a haven for newcomers and self-taught mavericks until recently and many companies underestimated its power as a marketing tool. However, many local SMEs are now thinking seriously about Internet marketing and want to have a professional website and Facebook page. Companies’ marketing efforts will move increasingly to the Internet, and with them the marketing budgets. When the potential of the Internet is recognized, the demand for high-quality work will skyrocket. The price will take a back seat to quality as the most important factor for customers. When that happens, the market will consolidate. Clients will contract for web designers who have a lot of experience and can demonstrate excellent references. They may also turn to consultants who can recognize good quality and look out for suitable web designers. The Internet continues to evolve rapidly, and its complexity is constantly increasing. Web designers, especially freelancers, have a lot of projects and there are always more. The Internet pervades our everyday lives. We are online always and everywhere – in front of the TV, as we travel, on our trackers. It is getting harder and harder to adapt web pages to all browsers and to ensure that no potential customers will be driven away by display errors. Even making a website visible in Google and potentially profiting from it takes a lot of experience and knowledge. The increasingly specialized requirements make it more and more difficult to be a one-man full-service web agency. Instead, specialized web designers will come together and work as experts in various fields under one roof. These teams need to develop highly efficient procedures and ensure high levels of productivity and professionalism. Clients are trying to be visible on as many platforms as possible. They expect their Internet agency not only to create an excellent website, but also to organize (for example) a Facebook campaign and integrate it into the rest of the marketing mix. With the increasing complexity it is becoming more difficult for small companies to offer a fully comprehensive product range. This is why they will build networks and cooperate with partners. The number of new clients will decrease. Loyal clients will be key to the agencies. Since an Internet project can never be 100% complete, there will arise new possibilities by means of new technologies. That’s why it is very important for the agencies to keep their loyal clients. It won’t be necessary to “learn the ropes” at new companies. It is important to know the clients in detail and to serve and consult them optimally. The opposite isn’t true: The ever more complex, interconnected Internet marketing activities cannot be carried out by third parties – not easily at any rate. When clients contract a new agency, they’ll take hours to find their way around.
Structural change has some essential features of industrialization. With the above mentioned changes, the industry will focus more on cost minimization on one hand and profit maximization on the other. Since teamwork will dominate the future, it is important that all of today’s web designers acquire the relevant skills. There should be no limitations on the productivity achieved through specialization stemming from loss of resources during information exchange within the team. To this end, comprehensive frameworks are being developed and process optimization is being established. The Internet may be a global phenomenon, but the agencies will be working under the same roof as to facilitate communication between team members. In order for small agencies to remain competitive, they must limit their service portfolio to the core competencies and obtain other services from external companies. It is economically sound to standardize and automate as many processes as possible. This is why good programmers and ideas are needed – the more efficiently you work, the lower the prices you can afford without compromising quality. Every website and every Facebook campaign seems unique, but they are all based on reusable modules and systems that are adapted to the needs of the agencies. These systems with new, intelligent software replace people and automate some processes fully. We can conclude that the digital design industry is entering a period of consolidation, and the outcome for individual market players can be either positive or negative. It makes sense to deal with the prospects in such a way as to benefit from the changes. The data clearly show that the startup is highly competitive and entering a very demanding market environment. Recent developments have set the course, there is an economic necessity for modernization and the historical development indicates stable and strong future growth. [SAMPLE DESIGN BUSINESS PLAN] Limited’s market entry should be quick and successful thanks to its good references and the existing customer base.
2.2 Competition Analysis
The market for digital agencies is traditionally one of the most competitive markets in the service sector. Big and small agencies, in-house marketing departments and an infinite, often web-based number of freelancers all share the workload. There is no single big player on this market. A market share is acquired based on the number of employees, industry recognitions and key references one can provide. The unique selling points of the [SAMPLE DESIGN BUSINESS PLAN] Ltd. include the expertise of the founder, his existing network and acquired know-how. These are only some of the advantage this startup is bringing to the market, however. Few companies can afford to compete directly with Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder Plan, whose impressive references and excellent technical know-how are unbeatable. [SAMPLE DESIGN BUSINESS PLAN] Ltd. will be a very efficient player on the market due to the founder’s skills, knowledge and professionalism. The founder will run the startup in line with the prevailing trends in digital marketing, which is a very important element especially in terms of outsourcing and communication with staff and partners. The pricing strategy is quite flexible, so even extremely price-conscious clients could be accommodated.
It should be noted that the companies with the best prices are not likely to compete with the [SAMPLE DESIGN BUSINESS PLAN] Ltd. directly because it is much more difficult for them to offer the practical and optimal, individualized, powerful digital marketing tools for specific target groups. Of course, the personal approach and professional communication play an important role.
The combination of professionalism and high quality gives the startup a definite edge over the competition. Vertical and potentially horizontal service coverage in the marketing segment will encourage clients to form a long-term partnership with the startup. Clients will help facilitate the market growth of [SAMPLE DESIGN BUSINESS PLAN] Ltd. in all the areas it covers thanks to the excellent communication skills and impressive references of the founder. A clear and professionally designed website and the use of diverse marketing channels will prove decisive in terms of promoting [SAMPLE DESIGN BUSINESS PLAN] Ltd. on the market (see also the marketing plan). Another important competition aspect involves the consistent pursuit of progress and continuous implementation of the latest technologies. The most important development in the industry in recent years was “Cloud/SaaS Services”, where companies don’t need to use their own hardware and software. Instead, they contract service providers that ensure access to all the relevant applications on the Internet. At the moment these are mainly storage systems and office applications, but soon the applications will become more complex. Cloud computing, automation and cross-channel integration still play a minor role for the target group, but they will become increasingly important as the market matures in the years to come. The [SAMPLE DESIGN BUSINESS PLAN] Ltd. can keep up with these trends without any problems and even offer such services on the market after its successful establishment in the core segment. This is another reason why the startup will hold its own against the competition no matter how strong it may be and will even be able to improve its market status.
2.3 Target Group
[SAMPLE DESIGN BUSINESS PLAN] Ltd. will offer services mainly to SMEs, but also maintain existing connections with associations and institutions. Its multifaceted marketing consulting services are applicable in every area, particularly house and garden, the construction industry, consumer electronics, IT, tourism, leisure and sport, textiles and clothing, food and the automobile market. [SAMPLE DESIGN BUSINESS PLAN] Ltd. will initially cater mainly to SMEs, but in the long term efforts will be made to solicit business from larger companies and include lucrative, long-term training and maintenance contracts in the project portfolio. Fewer monthly revenue fluctuations mean better planning as regards recruitment, facilitating long-term growth.
[SAMPLE DESIGN BUSINESS PLAN] Ltd. is facing mainly operative risks. High marketing investments should lead to higher revenue. The prices must correspond to the quality of services. Long-term research on the competition was done to assess the effectiveness of marketing investments accurately. Comprehensive data on the companies managed by the founder was collected. Health and accident insurance and contractual details such as hiring freelance assistants and buying program licenses have been researched very thoroughly to ensure legal compliance and protection. We will be insured against damage to or theft of expensive laptops. Other security measures will include a powerful backup system, encryption of critical data and professional antivirus software to protect against data loss and other marketing-specific risks, especially in relation to cybercrime. Due to the complex nature of the business project, it is extremely important not to compromise on performance and to focus on quality, maintenance and reliability. This is the only way to ensure adequate pricing and the cooperation of other professional enterprises. Proper contract execution will help avoid additional costs to [SAMPLE DESIGN BUSINESS PLAN] Ltd. in the long term and implement effective, predictable and transparent cost structures as a result of the focus on quality. The manager’s experience and qualifications, the solid business model and diversified revenue sources are quite likely to offset any and all issues that the complex and demanding environment may cause.
3. Sample Design Business Plan: Opportunities and Threats (SWOT-Analysis)
The following SWOT matrix gives a clear picture of all strengths, weaknesses, opportunities and threats:
· Lucrative business areas
· Existing business connections with well-positioned companies
· Technically skilled manager with leadership competence and industry recognition, certificates
· Very high workload for the manager, especially in the beginning
· Hard to find staff/organize outsourcing
· Manager has no startup founding experience
· Synergy potential via founder’s know-how
· Market for marketing services is very dynamic, real experts are rare
· Great innovation potential for long-term expansion
· Severe price competition in the performance-sensitive area of marketing services
· Legal risks where technical problems arise
· Liquidity risks in case of slower market growth
4. Sample Design Business Plan: Location
The Sample Town is in the area of Giessen, which has been home to the founder for many years. It has numerous advantages as the location of the company. The Sample Town offers [SAMPLE DESIGN BUSINESS PLAN] Ltd. good opportunities to attract clients. Nestling between Marburg, Frankfurt and Bad Hersfeld, the Town is a popular and easily accessible destination that offers many opportunities for collaboration and networking. The site infrastructure is well developed and the quality of life is high, so that productive, inspired work is possible in balance with a satisfying social and family life. The well-equipped office spaces on site and in the nearby towns provide a good basis for all kinds of business activities. Fast Internet connections allow for the unrestricted establishment of Internet-based companies.
5. Sample Design Business Plan: Partner/s
[SAMPLE DESIGN BUSINESS PLAN] Ltd. can rely on Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder Plan’s existing network of contacts, developed in the course of his work as an independent marketing consultant performing various business activities. The following list contains information about the individual companies and reference persons, who will be contacted right after the startup launch:
6. Sample Design Business Plan: Marketing Strategy
6.1 Communication Strategy
The main focus of [SAMPLE DESIGN BUSINESS PLAN] Ltd’s marketing activities will naturally be on Internet marketing, as this will promote all the company’s services most efficiently. Adwords and advertising on social networks will play a major role. The website will be created according to all the best practices and will offer a variety of instruments to generate leads such as downloads, leaflets, forms and showcases. The aim is to encourage visitors to contact the company. A carefully thought-out email marketing and direct telephone contact strategy completes the marketing mix. Ads in local magazines are one possible approach for [SAMPLE DESIGN BUSINESS PLAN] Ltd. This way the company can attract local establishments and clients who don’t first look online for service providers. Giveaways and brochures will be posted and handed out at briefings with clients on location to attract new clients and generate orders, ex. some clients might mention the company in conversation with other clients. This also strengthens the company’s professional image and status.
Participation in exhibitions is also among [SAMPLE DESIGN BUSINESS PLAN] Ltd.’s communication strategies. [SAMPLE DESIGN BUSINESS PLAN] Ltd. could be represented at industry conferences and fairs such as INNO IT (Kiel), IT & Business (Stuttgart) or IT & BÜRO (Friedrichshafen), and many other events. There are many networking events and lecture series in the greater area of Frankfurt specifically designed for SMEs, which build an optimal enterprise exchange framework.
6.2 Pricing Strategy
[SAMPLE DESIGN BUSINESS PLAN] Ltd’s marketing services are oriented to the upscale European market. Signing maintenance contracts with loyal clients will enable us to achieve solid predictability of revenue and at the same time ensure longer-term customer loyalty in terms of fulfilling orders as compared to our competitors. The entry-level hourly rate of about EUR XX is very competitive. Other companies charge between XX-XXX Euro, and the working speed is difficult to estimate. This is why references are so important for a smart buyer. The quality standard will facilitate [SAMPLE DESIGN BUSINESS PLAN] Ltd’s success in communication to attract serious, well-paying clients. The fact that [SAMPLE DESIGN BUSINESS PLAN] Ltd.’s efficient organization can also assist in bringing the rates down will give us an advantage over German enterprises operating on the same market segment and level in terms of concluding service contracts. The startup is aiming for the premium marketing consulting segment in the long term so as to be able to offer outsourcers an attractive margin rate.
7. Sample Design Business Plan: The Manager/Founder
Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder Plan will be a success manager thanks to his numerous qualifications. He studied electrical engineering and started work as an electrician at an engineering consultancy called Partner Firm Design Business Plan in XXXX after spending a year in the US. He still works for Partner Firm Design Business Plan, but has shifted his focus to web design and media in the last decade. He studied web design from XXXX to XXXX and graduated with several certificates in Adobe Design programming in XXXX. He has been active as a freelance designer since XXXX.
Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder Plan can fulfill the expectations of his employers and clients in all areas. His excellent connections and running projects with key decision-makers and his numerous certificates will contribute to easy acquisition of new clients. Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder Plan is fluent in English and speaks a little Spanish. He is a native speaker of German. His language skills, long-year experience in team and project management and international assistants will help him be an excellent manager.
8. Sample Design Business Plan: Legal Form
The Ltd. legal form is selected based on the premise of avoiding personal liability and entering the market in a form that is reputable both in Germany and worldwide. Other advantages are that more shareholders can join a Ltd. and the costs of founding and operating an enterprise in this legal form are easy to predict. The form is also a juridical entity, meaning that contracts and accounts can be signed and opened in the name of the Ltd., which later makes it easier to sell, among other things. Some disadvantages of this legal form are the slightly higher notary fees and the costs of drafting the partnership agreement. In addition, it must be ensured that no actions are taken that could be construed as gross negligence, because in this case the managing partner may be liable with his personal assets. The accounting and expenses for tax consulting services are usually a bit higher than those for joint partnerships. In conclusion, we can say the Ltd. provides some tax benefits and can also serve one well as a tax “piggy bank” for a rainy day. You can safeguard hidden assets / reserves because profits are not distributed as they would be with other business partnerships. The corporate tax is lower than the income tax levied on joint partnerships.
One full-time office assistant will be hired in the first three years. Big parts of projects will be outsourced to freelance designers and developers. This is an approach to ensure lower and more flexible fixed costs. X-X more full-time staff members will be hired to enhance capacity and security in a five-year term.
10. Sample Design Business Plan: Financial Planning
Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder Plan is planning to provide equity contribution in the amount of XX,XXX Euro as the manager and sole shareholder. Target debt financing in the amount of XXX,XXX Euro is intended to complement the contribution. [SAMPLE DESIGN BUSINESS PLAN] Ltd. is expected to enter the market quickly due to its contacts, agree on good payment terms with partners and maintain cash reserves. Despite the high market entry costs (marketing, investment in equipment and staff) [SAMPLE DESIGN BUSINESS PLAN] Ltd. will survive and grow without additional debt financing in the first 3 years thanks to stable organization of internal processes and close cooperation with customers and partners.
10.2 Revenue Source Clarification
The revenue will be limited in the first several months following market entry, as it will take some time to equip the company and attract new clients. However, revenue will solidify and grow after the third quarter. This tendency will continue in the following months. An increase of app. XX% y/y is expected in the third year. Thereafter the revenue will increase by XX-XX% a year due to the expanding project portfolio. Growth will level off at XX-XX% in X-X years. The positive effects mentioned in the market analysis can easily result to exponential revenue growth upon acquisition of the right clients, which is why the above estimates are rather conservative. The following table shows revenue estimate per month in the first three years.
[TABLE REMOVED] Source: Financial Plan (Manager’s estimate)
Web and graphic design will generate the most revenue (see pie chart). However, long-term maintenance contracts will account for a rising percentage of the revenue.
[TABLE REMOVED] Source: Financial Plan (Manager’s estimate)
Mr. [SAMPLE DESIGN BUSINESS PLAN] Founder Plan is planning to provide equity contribution in the amount of XX,XXX Euro as the manager and sole shareholder. Target debt financing in the amount of XXX,XXX Euro is intended to complement the contribution, thus creating the economic potential for a good and fast market launch. Go Back Up
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