Jazar Dezign Business Plan.doc


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Jazar Dezign Business Plan.doc

  1. 1. Business and Marketing Plan
  2. 2. Table Of Contents 1.0 Executive Summary 1.1 Objectives 1.2 Keys to Success 2.0 Market Analysis Summary 2.1 Market Segmentation 2.2 Demographics Strategy 2.2.1 Market Assessments 2.2.2 Market Trends 2.2.3 Market Growth 2.3 Industry Analysis 2.3.1 Industry Participants 2.3.2 Internet Presence 2.3.3 Competition and Buying Patterns 3.0 Business Model 3.1 Competitive Edge 3.2 Marketing Strategy 3.2.1 Strategic Alliance 3.2.2 Affiliates Programs 3.2.3 Mailing Lists 3.2.4 Credentials 3.2.5 Seminars and Forums 3.2.6 Search Engine Optimization 3.2.7 Outsource Resources 3.2.8 Sales Force 3.2.9 CRM 3.2.10 Auto Responders 3.2.11 Public Content 4.0 Financial Analysis 4.1 Resource Requirements 4.2 Online Sales Strategy 4.3 Online Sales Forecast 4.4 Break-even Analysis 4.5 Expense and Contributions 5.0 Controls 5.1 Organizational Implications 5.2 Risk Assessment and Contingency Plan
  3. 3. 1.0 Executive Summary Jazar Dezign provides businesses ranging from small to mid-sized companies to Fortune 1000 companies with online facilitation combined with eMarketing strategies to increase ROI. We do this by providing business consultation which we integrate into the design of our clients’ websites and sales copy. Focused on our clients’ mission we develop marketing strategies and are the only in our field that will guarantee a amount of visitors. Founded by Jeffery Beale in 2001, Jazar Dezign has transformed from a traditional web design firm to an eMarketing firm. 1.1 Objectives 6 Month Goal 1. Capture 250 qualified consulting client leads. 2. Establish a proposal acceptance rate at 40%. 3. Bill four $1,500 projects per month by the end of the first year. 4. Develop a turn key process for running the business 5. Facilitating a sales team and a design team First Year Goal 1. Expanding to 1000 qualified consulting client leads. 2. Establish a proposal acceptance rate at 60%. 3. Bill ten $1,500 and five $5,500 projects per month by the end of the third year. 4. Establish a nationwide sales campaign. Three Year Plus Goal 1. Capture 2500 qualified consulting client leads. 2. Establish a proposal acceptance rate at 70%. 3. Bill twenty five $1,500, twenty $5,500 and two $20,000 plus projects per month by the end of the fifth year. 4. Make process franchised. 1.2 Keys to Success 1. Provide excellent service establishing repeat business and referral business. 2. Establish relationships with companies that work within the target market circles. 3. Create value above pricing structure. 4. Leveraging company track record and alliances to obtain and solidify new business. 5. Leveraging from a single pool of expertise into multiple revenue generating opportunities: retainer consulting, Internet-production consulting, online-market research and published reports, seminars, books and ebooks, marketing subsidiary ebusinesses.
  4. 4. 2.0 Market Analysis Summary Jazar Dezign caters to start-up and established ebusinesses that wish to expand their online distribution. eBusinesses have come to terms with the fact that marketing and online distribution needs to happen with strong, well-implemented online marketing programs, and not just by throwing millions of Venture Capital (VC) money to traditional offline campaigns like TV advertising and print ads. 2.1 Market Segmentation 1. Well funded ebusinesses: our most important market segment is the privately held start-up businesses, such as the thousands found around the nation due to the increase of self employment. Thomas Regional Directory Company states 49 percent of respondents indicated that they did not have a Web site, 42 percent said that site development was imminent. More than one-third (36 percent) plan to initiate an online sales operation, however, 38 percent indicated that they need help selling their products/services over the Internet, and 55 percent wanted to know how to set up a Web site. These companies will be calling on Jazar Dezign for development of their online distribution plans, as well as for help in determining the best online-affinity-marketing program for their business. Thomas Regional Directory Company also states that many small biz owners are aware of the challenges involved with an e-commerce operation, with 61 percent indicating that they were very interested in learning how to drive traffic, and 56 percent curious about search engine listings. More sophisticated online issues were of concern too: 53 percent want to know about generating sales leads online; 52 percent were very interested in online promotion; 49 percent were curious about tracking online marketing effectiveness; and 40 percent were interested in security issues. This shows a great demand for our market offering. 2. Medium-sized growth public ebusinesses: particularly in community and commerce, and some content sites, Jazar Dezign will offer expertise in developing targeted affiliate and viral online marketing programs to more established ebusinesses that are looking to take advantage of the power of the Web, and not spend as much money in traditional offline marketing. 2.2 Demographics Strategy Jazar Dezign is focused on ebusinesses with annual incomes that range between $50K to $2.5M. Private start-up ebusinesses and public ebusinesses who want to stay above the rest of their crowded space, have realized that the best way to succeed in marketing online is to have targeted affiliate programs with good customer follow-up, and perks for being a customer/user. Start-ups in today’s marketplace can no longer afford to blow millions of dollars in offline marketing campaigns, and instead have realized that the best way to succeed online is to do it by harnessing the word-of-mouth power of the Web.
  5. 5. 2.2.1 Market Assessments Our target ebusinesses are dependent on hiring good people with Internet knowledge. Because of the relative youth of the Internet industry, finding Web savvy people to hire, with significant Web experience, is close to impossible. Also these business typically can not afford to hire a staff to handle their online needs due to the salary rate versus the amount of work needed to successfully execute an online marketing campaign. They need to move very quickly to keep ahead of their competition, and to draw the necessary buzz required to take their companies to the next level: acquisition or IPO. Key to the success of Internet business is the ability to bring targeted users and buyers to the ebusiness’ website. Whether they are trying to create a community of niche users, or sell products to them, they have no use for untargeted traffic that visits the website one time - and never returns. They are looking to implement online distribution and marketing programs that bring them the most lasting bang for their buck. They want to implement programs that focus on their target market, and that once built, start growing exponentially, generating more users and more visibility and brand identity as the program gets recognized and accepted by their users and community members. Jazar Dezign has the expertise and Internet knowledge based on actual experience working on and implementing programs at various ebusinesses that the target market ebusinesses need.. 2.2.2 Market Trends One important trend is the greater focus on online distribution. Although offline marketing is still important, ebusinesses are realizing that offline marketing has its place once the ebusiness is fairly well established online. If the online community, that the ebusinesses are targeting, does not know about the ebusiness’ service, then trying to advertise and gain credibility in the offline world has limited success. Another important trend is towards setting up online affinity and affiliate programs (sometimes referred to as “viral” programs). Amazon.com brings in more then 30% of its revenue thorough the success of their associates program. Now think about the last time that you saw an Amazon.com commercial on TV. Ebusinesses are following Amazon.com’s Internet distribution strategy and realizing that they need to get a solid business online within the online community. Search engine optimization is yet another important trend as 85% of visitors come from the result of search engines. With an emphasis on which keywords define your site you can gauge which visitors come to your site. This combined with well written copy can maximize your marketing effectiveness and close more sales. Last, the importance of business alliances increases business on and offline. This is what makes link popularity so important. It gives you an opportunity to strategically align with thousands of non-competitive businesses that will help increase your word-of-mouth marketing.
  6. 6. 2.2.3 Market Growth The market for ebusinesses in the community is steadily rising. The Census Bureau of the Department of Commerce found that year-over-year online retail sales were up by more than 25 percent. The Internet's Impact on Small Businesses General eBay non-eBay SB SB SB Helped business grow or expand 58% 82% 57% Helped business become more profitable 51% 79% 49% Helped business reduce costs 49% 78% 45% Business relies on the Internet to survive 15% 31% 14% Internet has had no impact on business 33% 15% 24% Base: Businesses with Internet access. General SB = 168; eBay SB = 211; non-eBay SB = 138 Source: AC Nielsen for eBay 2.3 Industry Analysis The eMarketing industry is constantly increasing in demand as more businesses are relying on Internet presence to increase profits and decrease overhead. The ever changing in technology and methods of online marketing makes it more cost effective to hire a professional consulting firm versus hiring and training in house staff. As you can see the demands for qualified marketing firms are significant in the marketplace. Objectives for Sourcing Operations in 2004 Improve services offered to customers 66.2% Increase effectiveness of procurement process 51.3% Lower purchasing costs 50.0% Lower managing costs 50.0% Manage supplier relationships 44.8% Reduce inventory investment 31.2% Increase flexibility and responsiveness of manufacturing 28.6% Reduce sales costs 21.4% Reduce out of stocks 20.1% Increase flexibility and responsiveness of transport operations 19.5% Other 7.1% Base: 157 global executives Source: IT Toolbox 2.3.1 Industry Participants
  7. 7. At the highest level are the few established major names in Internet consulting. Most of these are organized as partnerships established in major online markets such as the Silicon Valley, New York City, Boston, and Seattle, linked together by interconnecting directors and sharing the name and corporate wisdom. Some evolved from management consulting companies (e.g. Marchfirst) and some from Web design firms (IXL). These companies charge very high rates for consulting, and maintain relatively high overhead structures and fulfillment structures based on partners selling and junior associates fulfilling. None of these companies are based in the Southeastern region. At the intermediate level are some function-specific or market-specific consultants, such as the market research firms (Forrester, Zona). There are hundreds of small to medium-sized consulting firms that have yet to prove their expertise. The industry is ripe for a few consulting firms with real Internet start-up veterans to help ebusinesses realize their full online potential on the Web. 2.3.2 Internet Presence In the online marketing, and online program implementation space, having an Internet presence is a MUST. All other competitor firms have online sites, trying to sell their services and expertise to all the ebusinesses in their area. It is very important for Jazar Dezign to develop a website that immediately shows expertise in the online distribution area. The main selling point for Jazar Dezign is experienced and seasoned ebusiness experts. The Jazar Dezign website must relay all of these ideas and experience to the potential ebusiness client. 2.3.3 Competition and Buying Patterns The key element in purchase decisions made at the Jazar Dezign client level is trust in the professional reputation, reliability of the consulting firm, and expertise based on real experience in the ebusiness world. Pricing of projects and billing rates are surprisingly variable. In consulting at this level, it is easier to be priced too low than too high. Clients and potential clients expect to pay substantial fees for the best quality professional advice, especially if they can get their hands on a consultant who has “been there, done that” in a real ebusiness. The nature of the billing, however, is sensitive. Clients are much more likely to be offended when a job starts at $20K and ends up at $30K because of overruns, than if the same job started at $30K or even $35K. Clients rarely compare consultants directly, looking for two, or more, possible providers of a proposed project or job. Usually they follow word-of-mouth recommendations and either go for the job or not, rather than selecting from a menu of possible providers. It is very important to capture word-of-mouth, and relay to potential clients the real world Internet experience held by the consultants at Jazar Dezign. The most important element of general competition, by far, is what it takes to keep clients for repeat business.
  8. 8. It is worth making huge concessions in any single project to maintain a client relationship that brings the client back for the future projects. 3.0 Business Model Jazar Dezign provides small to mid sized companies with online facilitation and marketing strategies guarantying a set number of exposed looks from their prospective clients. The target customer is usually a CEO, VP of Online Marketing, or VP/ Director of Production in a private well-funded ebusiness, or a publicly traded ebusiness. Procedure in which Jazar Dezign will follow will be to gather information in the business consultation and design a road map, develop a virtual office following the guidelines set in the consultation, implement a marketing strategy and provide reports. 3.1 Competitive Edge We start with a critical competitive edge: there is no competitor we know of that offers online facilitation combined with tactical and strategic online marketing focused on the business structure that was mapped out prior thus developing and defining a full purpose to online presence. Traditional web designer provides designs and back end solutions that provides an online space which does not guarantee any generation of visitors. Internet marketers focus on ways to bring clients’ visitors but do not focus on the goal of the client and what they are trying to accomplish at the end result. Business Consultants provide a roadmap to projected goals but do not implement any solutions. They outline the path only. Our positioning on this point is very hard to match, we first provide the consultation that will outline the roadmap that will bring the desired end result. Then we facilitate the client online with a structure that is based on the stated expectations. Last we implement the marketing needed to bring the targeted market that was stated in the outline and work within the parameters to achieve the goal stated. We will guarantee a specific amount of visitors to our clients’ site in the first year. No other company can take a company of any size and offer such a complete solution. 3.2 Marketing Strategy Marketing and business consulting success depends heavily on recognition of expertise and clear sight of value. It is important to gain professional recognition and have highly regarded referrals to succeed in this industry. Our main draw of business will be word of mouth. It is important that we are recognized in the right sectors. To gain the recognition we will do the following: 3.2.1 Strategic Alliances We will develop and maintain a database of professionals that are directly aligned with the target market we wish to service. We will develop strategic alliances with these professionals offering our services to their customers and prospective customers. We will offer custom packages in line with their product offerings. 3.2.2 Affiliates Programs
  9. 9. We will participate and offer affiliate programs to build relationships with other vendors in our space. 3.2.3 Mailing Lists We will build an opt in mailing list that will receive our weekly newsletter of tips and techniques. We will also include articles by other experts that reinforce our value. We will provide other media mediums with articles written giving our expert advice on topics that are currently affecting the market. We will also develop a series of ebooks that focus on specific topics. 3.2.4 Credentials We will utilize our web site as our primary example of work. We will also offer access to our portfolio. Our site will offer links to other resources that will benefit our clients as well as our links will be on the exchanging sites. 3.2.5 Seminars and Forums We will attend and head business focused forums, seminars and networks. Our main goal is to develop our own seminar and network in the next six months. In these seminars and networks we will offer our expertise and our services if addressed. 3.2.6 Search Engine Optimization We will optimize and market our site to rank high in search engines. We will add our site to vortals, portals, and directories. 3.2.7 Outsource Resources We will develop an outsourcing system to generate and pass on work. 3.2.8 Sales Force We will hire a very enthusiastic sales team to canvas and call prospects. 3.2.9 CRM We will maintain constant contact with our existing clients, new prospects and business allies. We will do this through emails and letters. We will send a letter to each client quarterly with a survey enclosed. Our goal is to stay fresh in the minds of our clients and business partners. 3.2.10 Auto Responders We will have an auto responder that will periodically send out messages to all that email us. 3.2.11 Public Content We will have a periodic newsletter to our member base to reintroduce ourselves to the public. We will generate press releases monthly as well as author articles and ezines. We will provide this content freely to the public. 4.0 Financial Analysis
  10. 10. We want to finance Jazar Dezign with the revenue generated by servicing clients. Our focus it to develop a self sustaining entity in which proper planning and pricing can operate with minimal to no outside influence. Our business structure is designed to generate 25% above overhead for each project. With this business structure we are able to cover our overhead by obtaining a minimum of four clients monthly. 4.1 Resource Requirements Jazar Dezign will need the following resources for operating capital. 1. Virtual Office – Jazar will operate in a tele-working environment. There will be a virtual office leased for meetings and administrative duties. Lease will be maintained at $150 per month ($1800 annually) 2. Phone and utilities will cost $195 monthly ($2340 annually) 3. Transportation will range between $120 and $180 monthly ($2160 annually) 4. Promotional material will cost $3600 annually 5. Web hosting ($600 annual) 6. Computers and software ($3000) Jazar Dezign will have the following staffing needs. 1. Project Manager - Facilitates the technical and content objectives for assigned programs. Responsible for scoping projects, communicating with the origin and the development team, and managing these projects from inception through completion. Requires a bachelor's degree. May be expected to have an advanced degree in a related area and at least 3 years of experience in the field. Generally manages exempt and nonexempt employees. Relies on experience and judgment to plan and accomplish goals. Typically reports to a senior producer. ($68,000 annually) 2. Four sales reps the first 3 months, twelve sales reps by the first six months, twenty three reps by the first year that will work on a 10% commission based income with a two lead minimum quota a week 3. Three five person staffed design team that will work on an outsourced rate of 25% commission or flat rate. 4. Retain an attorney for contract review ($800 annual) 5. Accountant - Prepares balance sheets, profit and loss statements, and other financial reports. Responsibilities also include analyzing trends, costs, revenues, financial commitments, and obligations incurred to predict future revenues and expenses. ($6400 annual) 4.2 Online Sales Strategy
  11. 11. In our business, sales are defined as client service. It is repeat business. One doesn't sell an Internet consulting project, one develops a proposal that solves a particular challenge for the client. Word-of-mouth for our services, based on good client relationships and networking will make sales for Jazar Dezign. For the best online sales strategy, the most important factor is up-to-date information on the Jazar Dezign website, with clear and well-presented Success Stories to help close the deal with a potential client. Well informed consultants are needed to fully gather the information about the clients’ needs as this information will facilitate the solution. 4.3 Online Sales Forecast The following table and chart give a run-down on forecasted sales. We expect sales to increase at a rate of 5% per month for the first few months. Early on there will be a lot of sales time devoted to gaining new customers. The first six months of the Jazar Dezign business will be spent mainly getting proposals to clients, and building awareness to bring in future clients. We project an average of four projects per month for the first six months. We project our sales to increase in the next six months to ten projects per month. At the end of the first year we expect to be billing an average of four projects per month at $10,000 per project. 4.4 Break-even Analysis For the first six months we will operate solely via teleworking with no virtual office or employment of Project Managers. We will only need to generate $5500 monthly to cover all overhead expenses. We plan To employ a Project Manager at the eight month when projects exceed ten per month to manage client as well as developer relations. We will then generate no less than $15000 monthly. We project in 18 months we will break even eliminating all past debts and following the same work procedures remain in the black. 4.5 Expense and Contributions Our expenses will be considerably low due to the teleworking and outsourcing which will eliminate a lot of office overhead. Since our market offering is digital we will not have product expenses and can monitor and adjust our pricing to always project a 45% or greater profit margin. Our profit margin will also remain significantly greater than our expense due to the outsourcing of work on a commission bases. All business in regards to consultation such as attorneys and accountants will be on an as needed base and on retention. Our staff will be 100% commission based until the workload demands we hire a Project Manager. 5.0 Controls
  12. 12. Tracking and follow-up is critical to making this plan work. We will have monthly meetings to review schedules, particularly the milestones, and establish ongoing budgets and additional programs. The key is not to create an inflexible plan, written in stone and ignoring new development, but to keep a live plan for which we can make course corrections as needed. 5.1 Organizational Implications Jazar Dezign will use the expertise of its consultants to manage and maintain the operation of Jazar Dezign Jazar Dezign will organize a sales staff with expertise in consultive business to business sales. Jazar Dezign will hire outsourced experts to create the clients’ website, front-end templates, and back-end forms. Once their job is completed the Jazar Dezign consultants will each be responsible for updating portions of the clients’ websites, and keeping them maintained. Jazar Dezign will hire outsourced Internet marketing experts to implement the marketing strategies and track results 5.2 Risk Assessment and Contingency Plan Our biggest uncertainty is the outsourced consultants meeting our high quality standards. We will conduct extensive Research in developing working relationship with companies and individuals that prove to have the same high standards in quality work as we do. If we can not find outsource consultants that will meet our standards we will hire in house designers and marketing personnel and train them in a 18 week training course. Our next concern is ensuring proper turn around time in our projects. We will need to ensure that we can communicate with the outsourced experts and ensure that we have ample time to QA the project before delivering the end result to the client. We will allow two weeks lead time to ensure we have ample time. Our last concern is that the client clearly understands our market offer and does not confuse us with companies that only offer a fraction of our services. We will need to convey that we are not just designers but a full eMarketing firm that offers a complete solution for their Internet marketing needs. Since we offer a unique angle to an existing service we are constantly differentiating ourselves and showing our uniqueness. Once we create a loyal client base we will be to show by example and clarify any misunderstandings of exactly what we offer.