Operational plan april 2009

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An 18 month operating plan example for startups.

Operational plan april 2009

  1. 1. © Copyright 2009 BuzzGain. http://www.buzzgain.com BuzzGain Operational Plan 2009 mukund@buzzgain.com +91 998 054 2748
  2. 2. © Copyright 2009 BuzzGain. http://www.buzzgain.com Agenda 1. Market Analysis 2. Product Plan 3. Marketing Plan 4. Sales and Distribution Plan 5. Financial Plan http://www.buzzgai © Copyright 2009
  3. 3. © Copyright 2009 BuzzGain. http://www.buzzgain.com Agenda • What have we completed? – Basics of DIY PR • What is left? – User Experience: Examples of great User Experience – Quality: Works consistently every time – Ease of campaign setup and value • Who is the competition? – High end: Radian 6, Visible Tech, Dna13 – Low end: Techrigy, Buzzstream, Filtrbox, Scoutlabs • Priorities http://www.buzzgai © Copyright 2009
  4. 4. © Copyright 2009 BuzzGain. http://www.buzzgain.com 2009 Target Addressable Market Segment Use Potential # Monthly revenue Where to target customers potential 1. SMB PR Media outreach 32,000 $320,000 ODwyer PR List, agency & reporting & PRSA 2. Social Media Social media 12,000 $120,000 Twitter, SCNR New Media Forum Consultants monitoring 3. Marketing Marketing 65,000 $650,000 Marketingprofs, Sphere Consultants campaign 4. SMB Tech Competitive 125,000 $1,250,000 Crunchbase, Tradevibes, companies analysis Ycombinator 5. Community 5500 $55,000 Web-strategist, Ants Eye View Consultants Total 239,000 $23,950,000 / @30% month marketshare $7,983,333/mo http://www.buzzgai © Copyright 2009
  5. 5. © Copyright 2009 BuzzGain. http://www.buzzgain.com Key Assumptions • Annual contract value - $1500 • Churn – 7% • Renewal rate 89% • Average employee cost US$20,000 • Overhead cost per employee (% of payroll) – 28% http://www.buzzgai © Copyright 2009
  6. 6. © Copyright 2009 BuzzGain. http://www.buzzgain.com Intelligent Aggregation can power many applications • Brand • Account • Stock • Blogger • Early Adopter Monitoring Profiling sentiment relations program • Competitive • Influencer analysis • Media management Analysis analysis • Company Outreach • Social • SEO & Link • Briefing research • Social Media Customer building report •Trend Monitoring service • Ad targeting preparation analysis Custome Marketin Public Sales r Finance g Relations Service Aggregated, Actionable, Influence Management Platform http://www.buzzgai © Copyright 2009
  7. 7. © Copyright 2009 BuzzGain. http://www.buzzgain.com Immediate Opportunity for Agency, Consultant & SMB Offering Nurture Research Reporting & Positioning / Customers Market Analysis Messaging Agency / SMB Consultant Generate Media Influencer Build Product Awareness Outreach targeting Get Early Press Adopters Release http://www.buzzgai © Copyright 2009
  8. 8. © Copyright 2009 BuzzGain. http://www.buzzgain.com Thriving Competitive Landscape Technology, Value • Over $140 M Actionable, invested in space Insightful • Total # paying customers = 400 • Total revenue of all 30+ players < $50 Million • Most people use manual techniquesAggregation, • Cottage industry Reporting of consultants High Low Customer Time to Value & Cost to customer http://www.buzzgai © Copyright 2009
  9. 9. © Copyright 2009 BuzzGain. http://www.buzzgain.com 2009 Go to Market Strategy • Midsize PR Save $400K monthly agency time and Direct Inside Sales run rate exiting • Marketing increase 2009 consultants revenues Increase $100K monthly Resellers SMB <$500 Million customer run rate exiting Partnerships High Technology awareness 2009 What we are not doing in 2009  Targeting large F1000 enterprise customers proactively http://www.buzzgai © Copyright 2009
  10. 10. © Copyright 2009 BuzzGain. http://www.buzzgain.com Marketing Tactics Organic Funded • Public Relations • Partnerships • Content marketing • Events • SEO • Analyst Relations • Educational webinar • Blogging • Guest blogging • Commenting http://www.buzzgai © Copyright 2009
  11. 11. © Copyright 2009 BuzzGain. http://www.buzzgain.com Competition Funding, Customers Target Segment Employees Pricing RevenueRadian 6 $6.5M, Dec About 50, PR Agency PR 43 $500/topic 2008 agencies, F1000 profile/moVisible $15M ’07, About 50, F1000 – F1000 Large 82 <$5M CPG customers withTechnologies WPP partnershipBuzzLogic $12M ‘08, About 100 F1000 Advertisers for 30+ $1000 / topic / <$5 M blogs monthTechrigy 1M 08 100+ SMM consultants 10+ $299 - $599 / <500K month 10K – 50K termsBuzzstream 500K, None 10-50+ SEO link building, 4 SMBCollective Intellect $11M, <1 M About 50 Large brands - 20+ rev F100 Fin ServicesFiltrbox $2M 2/09 100+ SMB, Bloggers 15 $100/year - user <200K $600/year-groupScout Labs $2 M 2007, 50+ in beta SMB 20+ $250/mo-5 <1M terms/workspaceCision Public, Over 1000, mostly Large accounts 2600+ WW F1000 and PR agenciesVocus Public, 3,379 Large, PRWeb 463 $80M smallDNA13 $5M 07, 100+ large Large enterprises, companies Canada http://www.buzzgai © Copyright 2009
  12. 12. © Copyright 2009 BuzzGain. http://www.buzzgain.com 2009 Milestones Feb 2009 Jun 2009 Sep 2009 Dec 2009 250 paid customers Exit public beta Competitive Intelligence application beta 50 paid customers 500 paid customers India GTM strategy Profitable quarter http://www.buzzgai © Copyright 2009
  13. 13. © Copyright 2009 BuzzGain. http://www.buzzgain.com Capital Needs & Use of Proceeds • We have enough to fund us to profit - Dec ‘09 • Use of Proceeds 1. Fund sales & marketing 2. Key product management & finance hires 3. Develop competitive analysis application 4. Accelerate proprietary blog contact database (ensure cash cow PR beachhead) http://www.buzzgai © Copyright 2009
  14. 14. © Copyright 2009 BuzzGain. http://www.buzzgain.com Target Model Financials Sales 100% Cost of Goods Sold (20% to 50%) 40% Gross Margin 60% Sales & Marketing (20% to 35%) 30% R&D (10% to 15%) 10% G&A (4% to 6%) 5% Total Expenses 45% Operating Profit (15%-25%) 15% http://www.buzzgai © Copyright 2009

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