Business Plan 07 08

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Business Plan 07 08

  1. 1. www.bestbuddie.biz Page 1 of 20 WWW.BESTBUDDIE.BIZ Business Plan 2007 - 08
  2. 2. www.bestbuddie.biz Page 2 of 20 TABLE OF CONTENTS SECTION 1......................................................................................................4 SITUATION ANALYSIS.......................................................................................4 1.0 Situation Analysis.......................................................................................5 2.0 MISSION AND VISION.................................................................................6 3.0 SERVICE PROPOSITION...............................................................................7 3.0 RESOURCE OVERVIEW...............................................................................10 4.0 COMPETITORS..........................................................................................10 4.0 SWOT Analysis.........................................................................................11 4.1 STRENGTHS..........................................................................................11 4.2 WEAKNESSES........................................................................................12 4.3 OPPORTUNITIES....................................................................................12 4.4 THREATS..............................................................................................12 5.0 COMPETITIVE ADVANTAGE........................................................................13 SECTION 2....................................................................................................14 OPERATIONAL & MARKETING STRATEGIES........................................................14 6.0 OPERATIONAL STRATEGIES.......................................................................15 6.1 OPERATIONAL START UP........................................................................15 6.2 Staff Resources.....................................................................................15 7.0 MARKETING STRATEGIES..........................................................................15 SECTION 3....................................................................................................17 CASH FLOW ANALYSIS....................................................................................17 9.0 FINANCIAL INVESTMENT ..........................................................................18 Appendix A
  3. 3. www.bestbuddie.biz Page 3 of 20 EXECUTIVE SUMMARY Enabling owner / manager Charles Ian Allen to bring to fruition the original design concept of father and best buddy Charles Fredrick Allen, www.bestbuddie.biz is a web portal offering access to forum topics that encourages community participation and enables all individuals to find their ‘best buddy’ to discuss topics of interest. This web site is designed and constructed utilising a new generation of internet communication that enables individuals within the community to connect and contact with others on topics of common and similar interest both locally and nation wide. The design concept has evolved as a result of the experience Charles Ian Allen in website design and marketing analysis. Unlike most other web based contact forums, www.bestbuddie.biz works on an honesty system eliminating the often phantom and false nature of many other web based discussions. The site is focused on creating connections and discussions that are real and meaningful. The website is targeted towards individuals (as home internet users), clubs and associations. Initial marketing will be targeted towards forum discussions surrounding sport and recreation however the site is not limited in any way on creating further sub domain topic forums as they become evident as discussion topics of interest. Access to forum discussions shall be via membership registration. Two levels of site membership shall be maintained:  $10.00 per six (6) months and  $15.00 per twelve (12) months As an internet based concept www.bestbuddie.biz is afforded with the luxury of minimal overhead and ongoing operational costs. Current financial projections indicate the following:  Full sustainability within the first (1) year of operations  Projected yearly gross profit of operations of $163,200 per annum in the first 3 years  Projected yearly net profit of operations of $157,100 for Year 1 and $158,100 for Years 2 and 3  Supportive additional income of $9,600 per annum from unit rental
  4. 4. www.bestbuddie.biz Page 4 of 20 SECTION 1 SITUATION ANALYSIS
  5. 5. www.bestbuddie.biz Page 5 of 20 1.0 SITUATION ANALYSIS With the ever increasing movement to a more efficient, borderless and paperless society, the use of the internet as the driving mechanism to achieve such outcomes has increased significantly. Indeed today’s internet has moved from being just that of a repository for information to that of being a social, informative and commercial tool used by individuals, businesses and government. Evidence of the incorporation of the internet into everyday lives was firmly validated at the end of the March quarter 2007 where Australian Bureau of Statistics research demonstrated there were 6.43 million active internet subscribers in Australia which comprised 761,000 businesses and government subscribers and 5.67 million household subscribers (ABS catalogue 8153.0 – Internet Activity Australia, Mar 2007). Of this, 1.3 million or (20%) were located within the Queensland region. Such information is further validated by statistics showing that in 2005-06, 60% of Australian households had home Internet access and 70% had access to a home computer and this figure was an increasing trend. HOUSEHOLD HOME INTERNET OR COMPUTER ACCESS - 1998 to 2005-06 (Source: Australian Bureau of Statistics update 8146.0 - Household Use of Information Technology, Australia, 2005-06) In addition to the increasing use of the internet, sport and physical activities plays an important role in lives of many Australians (Australian Bureau of Statistics report 4177.0 - Participation in Sport and Physical Activities, Australia, 2001) Almost one-third (31.4%) of the population aged 18 years and over had participated in some sport and physical activities that were organised by a club, association or other organisation. Over one-half (50.4% or 7.3 million) of people aged 18 years and over had participated in some non-organised sport and
  6. 6. www.bestbuddie.biz Page 6 of 20 physical activities. Walking for exercise, swimming, cycling and running were the most common non-organised activities. In particular within the Townsville & Thuringowa approximately 400 community sport and recreation clubs have been established which clearly demonstrates the regions passion and interest for sport and recreational activities. This is further supported through the region currently boasting three national sporting teams, one in rugby league and two in basketball. In 1993, the Townsville Crocodiles (previously the Townsville Suns) entered the National Basketball League. In 1995, the North Queensland Cowboys entered the National Rugby League competition. The Townsville Fire joined the Women’s National Basketball League in 2001. The development of national standard sporting facilities such as Dairy Farmers Stadium and the Entertainment Centre have been important in encouraging these successes. Interestingly what is often missing within this sporting environment is the opportunity for participants and observers to interact on a social level to discuss events and goings on within their favourite sporting or recreational pursuit. Hence through this identified need and utilising the internet as a tool to facilitate social interaction the concept of www.bestbuddie.biz has been born. 2.0 MISSION AND VISION Based on the identified need the following vision and mission has been established. Vision: To provide an easy to access communication and social mechanism that encourages community participation and enables all individuals to find their ‘best buddy’ to discuss topics of interest. Mission To utilise an interactive and contemporary internet discussion forum to enable individuals within the community to connect and contact with others on topics of common and similar interest both locally and nation wide.
  7. 7. www.bestbuddie.biz Page 7 of 20 3.0 SERVICE PROPOSITION Product offering www.bestbuddie.biz is a web portal offering access to forum topics. Forum topics can be added or removed dynamically by an administrator. Visitors to the site register as a member to view and post messages. Once a member posts a message to the forum topic, the message is assigned a code. Other members enter the code to receive contact details in relation to the message posted. The website will display a disclaimer advising members as to the validity of the information obtained through www.bestbuddie.biz. Unlike most other web based contact forums, www.bestbuddie.biz works on an honesty system (i.e. you know the name and contact details of the individual) eliminating the often phantom and false nature of many other web based discussions. The site is focused on creating connections and discussions that are real and meaningful. Due to the popularity of sport and recreation within the Australian ethos, these topic forums will be the first point of launch for www.bestbuddie.biz. However the site is not limited in any ways or means from creating further sub domain topic forums as they become evident and of discussion interest. Product pricing Whilst most competitors to www.bestbuddie.biz provide services that are free of charge, www.bestbuddie.biz will operate on a pricing based system to demonstrate value for money of the service to be received. Many individuals utilising free of charge internet chat services do so under a false name and pretence. By placing a value on the service it is envisaged that participants will see greater meaning and value and treat their interaction and responses with greater consideration and respect. Two service values will be applied:  Service 1:- $10 per six month subscription  Service 2:- $15 per 12 month subscription Visitors become users of the site by filling in the contact detail forms (refer to site map within Quotation – Appendix B) Once a visitor subscribes to a service they become a member for the allocated time of the subscription. Members are allowed to view and post messages. When a message is posted, the message is assigned a unique code. When a member responds to viewing a message, that member must enter the corresponding unique code. The member that enters the unique code receives contact details from the message poster and then
  8. 8. www.bestbuddie.biz Page 8 of 20 may proceed to contact the message poster. Such direct contacting mechanisms provides our website with a competitive and differential advantage from that of our competitors whilst fulfilling the need for people to connect with other people with similar interests. Target market www.bestbuddie.biz shall be targeted at two client bases:  Individual consumers  Clubs and recreational organisations Target Regions The initial target market shall be that of the Townsville and Thuringowa region. This market has been selected due to both its proximity to the owner / creator of www.bestbuddie.biz and the strength of this market characteristics to that of the www.bestbuddie.biz concept to kick start marketing the concept. As the site gains momentum and membership the plan is then to expand to a state and then national level. Overview of the Townsville / Thuringowa region Situated on the coastal zone of North Queensland the twin cities of Townsville and Thuringowa provides the northern link for State and Federal Governments, as well as for private enterprise in primary and secondary industries, mining, commerce, retail, and community and cultural services. Indeed the City of Townsville is widely regarded as the capital of North Queensland. As at census 2001 the following statistical information was available on the combined regions: Population Townsville – 91,169 persons Thuringowa– 43,973 persons Age by computer use (total persons): Townsville – 89,154 persons Thuringowa – 43,849 persons
  9. 9. www.bestbuddie.biz Page 9 of 20 Internet use (use of internet at home, work or elsewhere) Townsville - 34,236 (38%) Thuringowa - 15,669 (36%) In comparison of such computer and internet access of 2001 to that of recent statistical evidence and cited within the Situational Analysis the combined Townsville and Thuringowa region demonstrate a higher than average internet use percentage (38% and 36% respectively) to that of Queensland as a whole at 20%. It is also possible that since these statistic are from the 2001 census that such rates may have increased again during that period. Additionally the Townsville & Thuringowa approximately 400 community sport and recreation clubs have been established which clearly demonstrates the regions passion and interest for sport and recreational activities. The region also boasts three national sporting teams, one in rugby league and two in basketball. These elements demonstrated strong interest within the sporting domain and combine to provide an excellent base as the commencement platform for www.bestbuddie.biz. Target market characteristics Identified characteristics of the target market are as follows: Individual consumers:  Identified need – ability to connect and discuss with others on topics of interest  Age – Primary 18-35, secondary 35 +  Gender – male and female  Disposable income – majority of participants within the limited to moderate income bracket  Lifestyle – strong family and social orientation Clubs and recreational organisations  Identified need – ability to enable members to connect and discuss with others on topics of interest  Club size – small to medium sized  Nature of activity – all activities
  10. 10. www.bestbuddie.biz Page 10 of 20 3.0 RESOURCE OVERVIEW The www.bestbuddie.biz web site shall be hosted on a remote computer system. As such no resources are required to support this service operation other than direct hosting and site administration components. 4.0 COMPETITORS www.bestbuddie.biz Free Online Traditional Forums Communities (MySQLForums.com (e.g. yahoo – ) Geocities) Business Size Medium - Large Medium - Large Small Reputation Good Average – Unknown good Location Australia wide Global Global Established Small – large Large Small customer base Management Basic Advanced Basic skill Price Low Free Free Guarantee / Yes Nil NIl Warranty Credit terms 30 days n/a n/a Product quality Good Average - Average - good good Reliability Very good Average – Average – good good Suitability Good Average - Average - good good Product Advanced Advanced Basic features After sales Good Good Basic support Product range Good Good Basic User friendliness Good Unknown Unknown Customer Good Good Average service Sales Personnel Owner Sales Team n/a More visible Good potential Good potential None marketing Main Reason Good quality, Free Free People buy generic domain,
  11. 11. www.bestbuddie.biz Page 11 of 20 4.0 SWOT ANALYSIS The purpose of this SWOT analysis is to identify strategies to facilitate the development of opportunities and strengths, and manage and overcome weaknesses and threats facing our business development opportunities. The following strengths, weaknesses, opportunities and threats have been identified for www.bestbuddie.biz. 4.1 STRENGTHS Strengths Strategy Diversity of application on forum topics Promotion of the diversity of forum topics available Promotion to clubs of their capacity to have an internal discussion basis Internet: utilisation of free of cost internet  wide access marketing techniques (e.g. email  easy and inexpensive marketing) and affiliate marketing to promote No limitation of client base Commencement marketing at target area and then move to promote wider geographically across Australia Not subject to seasonal fluctuations Promote new and topical interest discussion forums to harness and maintain interest Management experience in web Harness internal strengths to ensure based products concept success: i.e.:  Already established web site designer  Understand how relates to the user  Understand how to capture peoples attention and retain and get their return Experience in affiliate marketing – Submission of articles to search engines. Submitted article incorporates links to other sites (e.g. www.bestbuddie.biz
  12. 12. www.bestbuddie.biz Page 12 of 20 4.2 WEAKNESSES Weaknesses Strategy New concept Promotion of site as a business related web site through the use of domain name of .biz to lift profile and give credence Paid access (competitors have free Promote the value and design access) Promote the realism and value for money achieved 4.3 OPPORTUNITIES Opportunities Strategy Size and diversity of local clubs and Promotion of the diversity of associations with their own internet application - use by individuals or presence internally by clubs and associations 4.4 THREATS Threats Strategy Free online communities Need to differentiate away from the free online communities to demonstrate offer something different and better Peoples views and opinions Management and control of potential misuse by others of the site (e.g. use of profanity filter) Internet – not everyone knows how to Positive promotion of the web site understand, getting online through the business name
  13. 13. www.bestbuddie.biz Page 13 of 20 5.0 COMPETITIVE ADVANTAGE Based on an analysis of the unique nature of the product offering and competitor comparison, the competitive advantage of www.bestbuddie.biz lies in its capacity to bring individuals within the community together in a progressive and communicative forum based on friendship development – i.e. best buddies
  14. 14. www.bestbuddie.biz Page 14 of 20 SECTION 2 OPERATIONAL & MARKETING STRATEGIES
  15. 15. www.bestbuddie.biz Page 15 of 20 6.0 OPERATIONAL STRATEGIES Specific operational strategies to be applied in the achievement of our web site operation include: 6.1 OPERATIONAL START UP Timeline Ensure usage of correct host 30/6 Initial programming completed 31/7 Quality Assurance 31/8 TARGET ONLINE DATE: 1/9 Quotation for site development – standing offer with no anticipated change in costs. Quote inclusive of 12 months support and minor updates from that period. 6.2 STAFF RESOURCES Due to the internet based nature of the operation, www.bestbuddie.biz requires minimal human resource support input to enable its ongoing operation. As such the only human resource currently identified within the business is that of owner Charles Allen as site manager and administrator. Additional programming as required shall be conducted through NQ Web Design. Current quote incorporates all design elements required for go live. 7.0 MARKETING STRATEGIES Though internet based in nature, both internet and direct marketing strategies will be utilised to develop interest and momentum for site access and use. The following strategies will be implemented to gain exposure and interest within www.bestbuddie.biz:
  16. 16. www.bestbuddie.biz Page 16 of 20  Internet marketing (affiliation marketing, email campaigning and search engine submissions and search engine optimisation – costs nil other than Charles Allen time)  Direct marketing (flyers at pertinent locations, mail box drop , internet cafes etc). Current cost $80 per batch 200;  Direct sales (i.e. direct warm and cold call contact with clubs and recreational organisations). Nil cost as time is that of Charles Allen; and  Developing referrals from current site users (Nil cost as time is that of Charles Allen All marketing activities will commence from time of and post go live. www.bestbuddie.biz will also benefit directly from the web marketing analysis skills of owner Charles Allen. This includes statistical and site traffic analysis to enable an understanding of site access, return statistics, and from such analysis, identify how to increase traffic flow.
  17. 17. www.bestbuddie.biz Page 17 of 20 SECTION 3 CASH FLOW ANALYSIS
  18. 18. www.bestbuddie.biz Page 18 of 20 9.0 FINANCIAL INVESTMENT www.bestbuddie.biz offers access to forums via membership registration. Two levels of site membership shall be maintained:  $10.00 per six (6) months and  $15.00 per twelve (12) months To facilitate the achievement of a profitable operational enterprise, the following cash flow analysis has been developed. Current estimates predict full sustainability within the first (1) year of operations based on the following projections: Year 1 Year 2 Year 3 Per annum Per annum Per annum Once off expenses Fund injection: Personal input $1,000 Cost of site $7,920 construction Ongoing revenue and costs of operation of www.bestbuddie.biz Total sales $210,000 $210,000 $210,000 Cost of goods sold $46,800 $46,800 $46,800 Gross profit $163,200 $163,200 $163,200 Costs (other) $1,300 $300 $300 Loan repayments $4,800 $4,800 $4,800 Net profit $157,100 $158,100 $158,100 Additional revenue Unit rental $9,600 $9,600 $9,600 Financial forecasts including profit and loss, balance sheet and breakeven analysis included Appendix A. As indicated, www.bestbuddie.biz demonstrates sound financial viability through its low cost maintenance structure.
  19. 19. Appendix A
  20. 20. Appendix B

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