Business Plan 07 08

www.bestbuddie.biz Page 1 of 20

WWW.BESTBUDDIE.BIZ

Business Plan 2007 - 08


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


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


SECTION 1

SITUATION ANALYSIS


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


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.


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


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


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


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,


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


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


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


SECTION 2

OPERATIONAL & MARKETING STRATEGIES


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:


 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.


SECTION 3

CASH FLOW ANALYSIS


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.

Business Plan 07 08

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