1. Brief Investment Memorandum
Nowadays it is difficult to imagine a company that is not represented on the Internet. Website — an element of the consumer communication chain that directly or indirectly affects the company’s revenue. That is why companies invest in the development of sites and their support.
In the proposed plan, we will analyze an example of how a web studio can work, the main products of which are website development and support for finished projects. The project payback period is 9 months, and the break-even point is reached for 4 months.
It is necessary to rent an office with a ready repair area of 75 m², as well as hire 8 specialists.
For calculations, the average site development price of 2 500 USA dollar was taken, the execution time is 1 month. The subscription fee for the support of the finished site is 200 USA dollar . All work, even at peak load, is performed by the team. When the complexity and number of projects increases, staff expansion will be required.
The amount of the initial investment is 12 000 USA dollar ;
Monthly expenses — 10 000 USA dollar;
Monthly profit – 4 000 USA dollar;
Payback period – 9 months;
Break-even point – 4 months;
Return on sales – 39%.
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2. Description of the business, product or service
The site for the company performs a number of functions:
- Presentation of the company on the Internet
- 24 hour online office
- Sales tool
- Advertising media platform
- Information Exchange Automation
- Customer Interaction Tool
- Loyalty marketing tool
Types of developed sites, prices and terms.
1. Welcome page . Price – 1 200, term 2-4 weeks.
A welcome page or “stub page” is needed before opening the main project site or in the first months of the company’s work. The page will tell visitors about the project and the date of full launch. The subscription form will help to collect the addresses or phone numbers of interested visitors in order to directly tell them about the opening of the main site, and in time to inform about promotions and discounts. Welcome page is a good way to gather a database of potential clients even before launching the main project.
2. Website on the designer . Price – 3 000, the term is 4-8 weeks.
This option is suitable if you need to check the business hypothesis, the project budget is limited or you need a site with basic functions, for example, a landing page. The site builder allows you to create a multi-page site, spending a minimum of time and effort on layout and integration with the control system.
3. Development of a corporate website . Price – 5 000, term 8-12 weeks.
If a project needs to structure a large database and implement complex functions, then it is necessary to develop a full-fledged website on its own management system with any given functions and design. The control system is selected for a specific project.
3. Description of the market
The services of a web studio can be used by an enterprise from any industry: a small, medium or large company that needs to update an outdated website, or a startup researching the market.
Customers can be foreign customers, but this will require employees with knowledge of the English language and the specifics of attracting traffic with contextual advertising and SEO optimization.
Contextual advertising in search engines allows you to get to the first place in the SERP, however, each transition will cost several times more than with organic SERP.
SEO-optimization – these are actions that increase the position of a site in search engines for specific requests. This method of attracting traffic is more complicated, it takes time and deep analysis of the field of activity, but with the right approach it gives a long-term positive effect with a low cost of transition.
4. Sales and marketing
To increase recognition, you can blog, speak at thematic events to increase expertise.
Internal projects are your portfolio. Choosing an artist, a client can see how you solve your own problems. Your own site should meet modern ideas about web design, be simple and informative.
In this business, long-term relationships with clients are often built – for example, you can work with a large restaurateur or streaming entrepreneur and get dozens of projects from them.
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5. Production Plan
- Register IP
- Office rent
- Purchase equipment and furniture
- Hire staff
Opening a studio takes 5 weeks.
6. Organizational structure
Staffing and responsibilities of employees:
- Director of the studio: operational management and strategic management, is engaged in accounting and marketing.
- Designers, developers and a content manager carry out work on creating sites.
- The project manager coordinates the work of the team, communicates with customers.
Employees are rewarded, depending on the number of completed projects.
7. Risk factors
- Low level of technical specialists. It is necessary to carefully select team members, to encourage continuous development, the pursuit of new challenges.
- Inadequate demand. Strengthening the reputation, high level of service, solving tasks on time, establishing long-term relationships with customers.
- A large number of corrections from the customer / dissatisfaction with the result. It is necessary to carry out explanatory work, as clients are not specialists and it is difficult for them to formulate their requirements. After that, a detailed technical task is drawn up, which secures the agreement and confirms that the parties understood each other.