Starting Goat Farming Business Plan (PDF)
Starting a goat farming business is a lucrative and rewarding venture. As the global population continues to expand, so does the appetite for lean and flavorful goat meat, presenting a compelling opportunity for entrepreneurs to enter this business. This trend, coupled with the perception of goat meat as a healthy and sustainable protein source, positions goat farming as a lucrative industry ready to be tapped into. Additionally, goats are hardy animals that can thrive in diverse climates and require relatively modest resources, thus lowering the operating expenses of the business hence increasing its profitability. This is due to the remarkable resilience of goats, which enables them to thrive even in the most challenging conditions, whether it be limited access to food or adverse weather conditions. Goats are known for their ability to flourish with minimalistic and cost-effective housing setups, making them an ideal choice for resource-conscious farmers. To build a sustainable, profitable goat farming business, you require sufficient knowledge of how to efficiently raise the goats, good business management skills, and a good goat production business plan. This article will outline how to start the goat rearing business, and the goat farming business plan – PDF, Word and Excel.
Market Research
Market research is a crucial step before you start a goat farming business. Start by examining the prevailing prices of goat meat in your target market to gauge market competitiveness and establish competitive pricing strategies. Identify potential customers and their preferences to tailor your offerings effectively, whether it’s local consumers, butcheries, restaurants, or other businesses. Additionally, take into account the seasonality of goat prices, as fluctuations throughout the year can influence your production and pricing decisions, ultimately enabling you to make informed choices that maximize profitability and meet consumer demands.
Financial projections serve as a critical aspect of your market research when venturing into goat farming business. These projections encompass not only revenue and profitability estimations but also help you determine crucial elements such as startup costs and ongoing operational expenses. By meticulously forecasting your financial requirements, you can create a well-structured budget that guides your allocation of resources and ensures effective financial management throughout the journey of establishing and running your goat farming business. This proactive approach to financial planning is instrumental in achieving your business goals, securing necessary funding, and maintaining the long-term sustainability and success of your venture.
Selecting the right goat breed is a pivotal decision for your goat farming business. Extensive research is required to make an informed choice, taking into account several crucial factors. Firstly, consider the availability of goat breeds in your region, as some breeds may be more prevalent than others, which can impact accessibility and procurement costs. Secondly, assess the feed conversion efficiency of potential goat breeds, as this directly influences your operational expenses and overall profitability. Thirdly, weigh the cost of purchasing different breeds against your budget constraints, ensuring that your choice aligns with your financial capacity. Lastly, align your breed selection with the specific needs and preferences of your target market, as different breeds can cater to varying consumer demands.
Selecting Land for Goat Farming Business
You obviously require land for the goat farming business. There are some factors that you have to consider when selecting land for goat production business. A large enough area must be available for erecting the necessary goat pens. It is advisable to locate the project nearer to good roads as that will help minimize costs. This will also enable the farmer have easy access to and from the goat farming project. Does the location offer proximity to a reliable source of clean and fresh water? Your choice of land must also factor in the presence of a favourable climate. Is the land space easy to fence right round to ensure the goats are secure? This is important for two main things. One, goats are adventurous and tend to easily escape when they figure out a loophole. Two, if improperly fenced, goats become vulnerable to predators. Being able to escape also makes them vulnerable to predators. Fencing is strategic in that it provides an additional layer of security for your goat farming business. The assumption is that you would have setup secure housing for the goats. During the day when the goats are roaming around the fence will be keeping them secure. When indoors (usually overnight), the goat housing and the fence essentially become two layers of security.
Water logging or flooding is not good for the goats. You need to pick a land space that enables easy runoff. The ease of fencing also depends on the nature of the terrain in question. That is why it is imperative that you should choose a land space characterised by a flat to gentle slope. You must consider the availability of pastures – goats require pasture to graze on. Ideally you want a land space big enough to be segmented. This segmentation will be essential for having a goat rotational grazing regiment. You should divide the pasture into different parts. To avoid over usage of pasture and the growth of less desirable forage, you should rotate the pastures where your goats graze on. This means that you should allow your goats to graze on one pasture while the other pasture is resting. The pasture should have various types of pasture plants or grasses. This will increase the food value and help to meetup all types of necessary nutrient requirements for goats, leading to profitability of your goat farming business plan. Your goat farming business plan should take into account the cost of purchasing or leasing the land.
Housing For Goat Farming Project
Goats are so hardy that they can thrive whilst staying in the open day and night. However, in order to build a successful goat farming business you must house them. Housing for goats serves two core purposes namely, security and protection from extreme weather conditions. The location of your goat housing must be elevated and be where dryness can be maintained all the time. This is all central to ensuring flooding is not possible since it is not good for the goats. Any build-up of water or moisture increases the chances of disease breakouts. That same elevation is also pertinent in protecting the goats from predators. The floor or bed of the goat housing must also be maintained dry at all times. Ventilation and adequate natural lighting is important for your goats so factor that in when designing your housing. The goat shelter must be well-ventilated, and should be easy to clean. Poor ventilation is bad to the health and performance of your goats. Extreme temperatures can reduce the productivity of goats. Poor ventilation may also lead to circulation of harmful gases which can cause respiratory problems to the goats. This also implies the housing must be big enough to allow free goat movement inside.
Materials that can be used for construction of goat housing include wooden poles, bamboo poles, bricks, cement and concrete. You can always figure out how to blend these together depending on what you have. In principle of course the aim is to use cost-effective yet robust materials. You must also segment your goats as well. Have separate goat housing units or spaces for pregnant goats, nursing goats, weaned goats, diseased goats, and the rest of the goats. You just have to bear in mind that you must allow more space for bigger goats. The bigger the goat, the bigger the living space it needs. The costs of constructing the housing should be included in the goat production business plan.
Equipment For Goat Production Business
Goat farming requires both basic and specialized equipment. It is obvious you need feed and water equipment. Your feeders can be according to the type of feed in question. For example, you can have separate feeders for hay, grains, and so on. Water trough or containers can be makeshift or commercial ones. You will also need other handy implements such as forks, wheelbarrows, pallets, buckets, shovels, scales, thermometers, and the like. Depending on the nature of your goat farming operations you may need specialized equipment. Examples of these are castrators, drenchers, and hoof trimmers. The goat farming business plan should include the costs of acquiring the equipment.
Breeding Stock For the Goat Farming Business
To start keeping goats for profit, you require breeding stock. The breeding stock consists of male goats which are known as bucks, and female goats which are known as does. When choosing breeding stock for goat farming business, you should be very careful of the health history of the goats. It’s advisable to purchase the breeding stock from goat farmers who have a good reputation in the goat production business. The goats which you select should be strong with an overall appearance of good health. Request to see the records of the breeding stock which you want to purchase. The growth potential of your kids will depend on the nature and quality of the parent stock. Thus it is of great importance to buy a good goat breeding stock from reliable goat farmers. The goat farming business plan should take into consideration the cost of buying the breeding stock.
Breeds of Goats
Goat breeds have different meat characteristics. There are goats that are best for meat production, milk production, or both. Focus on purebreds, request for comprehensive records, and physically inspect the goats when buying. Some of the important attributes to look for are high reproductive rates, good maternal ability, zero physical defects, good feed efficiency, and disease resistance. There are various breeds of goats which are used in commercial goat farming operations. The popular breeds for goat meat production include the Boer goats, Spanish breed, Black Bengal, Kalahari Red, Rangeland among others. The Boer Goat is a highly productive meat breed and considered a superior breed. This type of breed is originally from the Eastern Cape in South Africa and it’s more expensive compared to other breeds. A good Boer buck that is between 6-12 months can service 25 does while a full-grown buck that is 13 months old can service 50 does in a year. The Boer Goat is considered superior because it has a good bone structure, large body size, grows fast, heavy weight and can easily adapt to a wide range of pastures. Some farmers cross breed an superior breed e.g. the Boer Goat with indigenous breeds. This is in order to get the right quality of offspring with good meat quality, resistant to diseases, health and adaptable to various pastures.
Feed for the Goats
Feed is the largest cost of running a goat farming project. The most economical source of nutrients for meat goats are browse and pasture. In some cases, pasture and browse will be sufficient to meet the nutritional requirements required by meat goats. Goats are versatile, inquistive and energetic in their feeding habits. Goats can adapt to different environments. They can consume over 80 different kinds of plants. Goats are browsers by nature, they are not grazers. However, they will also eat grass. A suitable area for the goat farming project should ideally have low bushes. Goats enjoy browse materials like trees, bushes, twigs and leaves.
Even though goats will browse and feed on pasture, you will have to give them supplementary feed for you to be profitable in your goat farming business. Enough pasture might not be available throughout the year due to seasonal changes. To enable goats to grow fast and reach their full growth potential in a short time, you will have to give them supplementary feed. There are various kinds of supplementary feed you can give to your goats including hay (lucernes), grains (e.g. wheat, oats, maize , sorghum, barley etc), commercial goat feed, minerals and salts. The goats also require sufficient water. The goat farming business plan should take into consideration the feed costs.
Pastures and hay tend to make the biggest chunk of a goat’s diet. Grains should not be a major part of the diet of young goats. This is because bloating can occur due to indigestion. As goats grow older though, it becomes essential to include grains in their daily diet. The grain component in the total diet should range from roughly 10 percent to 16 percent. As for garden or home residues, make sure they are not rotten or too sugary. Concentrates are a common part of the supplementary feeding of goats. Their composition varies and your choice would depend on the nutrients your goats are lacking.
Health & Disease Management in Goat Farming
When doing goat farming, the health and well-being of your animals are foundational to the success of your operation. A comprehensive health and disease management program is not only vital for the welfare of your goats but also crucial for the profitability of your venture. It begins with a proactive approach encompassing preventive care, such as vaccinations, deworming, and regular veterinary check-ups. Tailoring a vaccination schedule to the specific diseases prevalent in your region is paramount to safeguarding your herd.
Ensuring proper nutrition is equally essential, with a focus on providing a well-balanced diet tailored to the age, breed, and purpose of your goats. Adequate access to clean water is fundamental. The management of your goat’s environment plays a pivotal role, with clean, well-ventilated, and dry shelters reducing the risk of infections. Regular sanitation practices, including manure removal, are vital. Monitoring your goats for signs of illness and implementing quarantine and isolation protocols for new arrivals or sick individuals are crucial components of disease prevention. Maintaining meticulous records and having an emergency response plan in place adds an extra layer of protection. Continuous education and staying updated on evolving health challenges within the industry ensure that you can adapt to changing circumstances effectively.
Goat Farming Business Model
The goat farming business model revolves around a simple yet effective process that begins with acquiring both male and female breeding goats. These goats serve as the foundation of your operation, with the primary goal being the breeding of kids. As the goats reproduce, you nurture and care for the young goats until they reach the desired market age. At this point, you strategically sell them to the market, generating revenue. One of the key considerations in this business model is the management of feed, which constitutes a significant portion of the expenses.
Despite the expense associated with feeding, the revenue generated from selling the fully grown goats far exceeds the feeding costs and other operating expenses. This revenue surplus translates into a healthy profit margin. The beauty of this model lies in its repeatability, as you can cycle through this process multiple times throughout the year. This consistent breeding and selling strategy ensure a steady and predictable stream of income, making the goat farming business a financially sustainable and rewarding venture in the long term.
Capital for a Commercial Goat Farming Project
Starting a goat farming business requires capital. The capital is required for constructing the goat housings, purchasing the breeding stock, purchasing supplementary feeds and other costs associated with running a goat farming business. The amount of capital you need for your goat rearing business will depend on the size of your goat farming project. Your goat farming business plan should clearly outline the money required to start and operate a goat meat production business.
You can get a loan from the bank, or funding from investors, to use as capital to start your goat farming business. If you plan to raise capital from investors and a loan from the bank, you need a good goat farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your business overtime. Goat farming is very profitable, so if you reinvest the profits you get, you can quickly grow. Even if you are not planning to get a loan, you should still get a goat farming business plan to guide you in starting and operating the business. It is essential for you to have a goat farming business plan before you venture into the goat farming business, so that you know all the costs involved and you make an informed decision.
Management And Labour for a Goat Farm
The number of employees you require for your goat farming project will depend on the size of your goat farming project. You will need goat keepers who will be responsible for f eeding the goats, cleaning and disinfecting the goat housings, and other duties. There may also be need for finance and marketing team, depending on the size of your goat production business. Your goat farming business plan should take into account the salary costs for all the people you are going to employ.
Marketing Plan
Developing a comprehensive marketing plan is a critical component of ensuring the success and profitability of your goat farming business. While the quality of your goat meat is undoubtedly crucial, effective marketing is equally vital in reaching your intended audience and maximizing sales. To create a tailored marketing strategy, you must first understand your target market. Identify your ideal customers, whether they are individual consumers, local markets, butcheries, restaurants, or other businesses. Gain insights into their preferences, needs, and buying behaviors, as this knowledge will form the foundation of your marketing approach.
Develop compelling promotional strategies to increase brand visibility and entice potential customers. This might involve offering special discounts, limited-time deals, or collaborating with local businesses to cross-promote your products. In today’s digital era, establishing a strong online presence is a must. Create a user-friendly website that not only displays your products but also communicates your farming practices and contact information. Additionally, leverage social media platforms to engage with your target audience, sharing valuable content about your goat farming journey. Invest in online advertising campaigns to reach a wider audience and consider participating in local events or farmers’ markets to showcase your offerings.
Carefully selecting the right distribution channels is equally pivotal. Consider the various options available, such as direct sales, farmers’ markets, abattoirs, butcheries, local retailers, or restaurant partnerships. Each channel offers unique advantages and considerations. Direct sales might involve setting up an online store, while farmers’ markets provide face-to-face interactions with customers. Local retailers can extend your reach to a broader audience, abattoirs & butcheries may buy in bulky, and collaborating with restaurants can give your product a premium positioning. Analyze your target market and business model to determine the most effective distribution channels that align with your goals.
The market for goat meat is very huge and is ever increasing. The annual global demand of goat meat is 5 million tonnes. That’s a lot! You can supply goat meat to abattoirs, local butcher shops, retailers, hotels, supermarkets, restaurants, wholesalers and individual consumers. Goat meat has to be sold whilst it’s still fresh, thus you should locate your goat farm close to your market. The goat production business plan ought to include a proper marketing plan to use in your goat business.
Goats can be kept for meat, milk, hair and fiber uses. This article and business plan is for goat meat production. The export market for goats is very huge! As you grow your goat farming business you will be able to export the goat meat to other countries. The largest importers of goat meat include United Arab Emirates, Indonesia, United States of America, Caribbean, South Korea, Angola, Taiwan, China, India, Middle East, European Union, Malaysia, Singapore, Brunei.
Keys To Profitability in Goat Farming
Achieving profitability in your goat farming venture hinges on a strategic approach that encompasses a multitude of crucial factors. First and foremost, breed selection is fundamental. Choose goat breeds that align with your production purpose and cater to local demand and environmental conditions. The quality and marketability of your goats are significantly influenced by your breed choices.
Efficient management practices play a pivotal role in optimizing resource utilization. This includes careful attention to feeding, housing, and sanitation. Minimizing waste and maximizing feed conversion efficiency can substantially impact operational costs. Moreover, a comprehensive disease management strategy is essential to maintain the health of your herd, reducing losses and veterinary expenses, ultimately contributing to higher profitability.
Crafting an effective marketing strategy tailored to your target market is equally vital. Whether you opt for direct-to-consumer sales, local markets, restaurants, or wholesale distribution channels, robust branding, packaging, and promotion can help you capture market share and maximize revenue. Cost control measures, especially in the realm of feed expenses, should be a consistent focus, with exploration of affordable and high-quality feed sourcing options. Additionally, maintaining meticulous records, planning for scalability, engaging in continuous learning, adept financial management, and embracing adaptability are all part of the blueprint for long-term profitability in the dynamic world of goat farming. Incorporating these key factors into your business model can help you build a sustainable and profitable goat farming operation poised for success.
Why You Need A Goat Farming Business Plan
A comprehensive business plan serves as a vital tool for gaining a deep understanding of the profitability of your goat farming business and the myriad factors that impact it. It provides a financial roadmap, helping you estimate initial investments, operational costs, and potential revenue streams. More importantly, it prompts you to identify and assess various factors that can influence profitability, such as pricing strategies, feed and healthcare costs. Additionally, a well-structured business plan allows for sensitivity analysis, enabling you to assess how changes in these key variables can impact your bottom line. This forward-thinking approach not only helps you anticipate potential risks but also equips you with the knowledge and strategies necessary to optimize profitability and ensure the long-term success of your goat farming venture.
A well-crafted business plan is a powerful tool in securing funding for your goat farming venture. It provides potential investors, lenders, or financial institutions with a comprehensive overview of your business goals, strategies, and financial projections. By showcasing your market research, operational plans, and financial forecasts, the business plan demonstrates that you have thoroughly assessed the risks and potential rewards of your goat farming business. This level of preparation and professionalism not only instills confidence in potential stakeholders but also serves as evidence of your commitment to the success of your endeavor. As a result, a strong business plan significantly enhances your credibility and increases the likelihood of securing the necessary funding to launch, expand, or sustain your goat farming operation.
Pre-Written Goat Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the goat farming business, we encourage you to purchase our well-researched and comprehensive goats business plan. We introduced the business plans after discovering that many were venturing into the goat meat production business without enough knowledge and understanding of how to run the goats business, how to keep the goats, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global goat farming business plan will make it easier for you to launch and run your goat meat business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the goat farming business.
Uses of the Goat Farming Business Plan (PDF, Word And Excel)
The goat farming business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your goat production business
- As a goat farming business proposal
- Assessing profitability of the goat meat production business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Goat Farming Business Plan (PDF, Word And Excel)
The goat farming business plan include, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Risk Analysis
- Industry Analysis
- Market Analysis
- SWOT & PEST Analysis
- Operational Requirements (Including technical aspects of how to keep and rear the goats, feed requirements etc)
- Operational Strategy
- Why some people in goat farming business fail, so that you can avoid their mistakes
- Ways to raise capital to start your goat farming business
The Pre-written goat farming business plan package consist of 4 files
- Goat Farming Business Plan – PDF file (Comprehensive Version – 84 Pages)
- Goat Farming Business Plan – Editable Word File (Comprehensive Version – 84 Pages)
- Goat Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 39 pages)
- Goat Farming Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of goats, selling price of the goats etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Goat Meat Production Business Plan (PDF)
Testimonial 3
I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!
Testimonial 1
StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.
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I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.
Testimonial 5
I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed. It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.
Testimonial 4
The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.
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I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.
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Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!
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Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.
Get the Goat Farming Business Plan (PDF, Word And Excel)
Click Buy Now below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!
If you want to purchase multiple business plans at once then click here: Business Plans Store.
The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.
We wish you the best in your goat farming business! Check out our collection of business plans , and more business ideas .
Goat Farming Business Frequently Asked Questions
How do i start goat farming business.
You start the goat farming business by purchasing breeding stock (male & female goats). You also require goat housing, equipment and feed. A good goat farming business plan is also required.
How do goat farmers make money?
Goat farmers make money by selling goats for meat. Other goat farmers can also make money by raising goats for milk and wool. Our goat farming business plan is only for meat production.
What is the goat farming business model?
The goat farming business model is based on purchasing male and female goats. The goats will breed to produce kids which you then feed and raise up to maturity. After the goats mature, you then sell them for a profit. This is how goat producers make money.
Is goat farming a profitable business?
Yes, goat farming is a very profitable business. To attain profitability in the goat production business, you should select a good breed of goats, adequately feed them with cost-efficient feed, and have a ready market which you can sell to at a good price. Our goat farming business plan has financial statements that will show you the profitability of the business.
Can goat farming make you rich?
Yes, goat farming business can make you rich over time. However this is not a get-rich quick scheme. You have to be patient, have good business management skills and reinvest some of your profits into the business. After a few years following good business practices, goat farming can make you rich.
Which goat breed is more profitable?
The boer goat is one of the most profitable goat breeds as it is very efficient at meat production. Boer goats are superior breeds which grow fast with a heavy weight and good bone structure making them good for business profitability. Other profitable meat goat breeds include Kalahari Red goat, Nubian goat, Rangeland goat and Barbari Goat.
Can I get a loan for goat farming?
Yes, you can get a loan or funding for goat farming business. Banks often provides loans to goat farmers. Governments also provide loans and grants for goat farming business. You can also approach other funding organisations and NGOs to seek for funding. However they all require a good goat production business plan before they can give you a loan.
Are goats more profitable than cattle?
It depends. However under normal conditions, goats are more profitable than cattle. Also you get money from goats quickly as compared to cattle as goats reproduce faster.
Are goats a good investment?
Yes, goats are a good business investment, however you need to adequately take care of them and have a good market for them. A good goat farming business plan is also required to guide you in your business and ensure that you get a good return for your investment.
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1. Why is utilizing an example business plan a good idea?
Sample business plans can help you quickly and easily write a business plan for your own business. Business plans are an important tool for any business, but they can be challenging to create. A sample business plan will help you understand the business plan format , the benefit of market research, and how to write a compelling executive summary. It can also serve as a guide for creating your own business plan, outlining the key sections and providing examples of successful plans. Utilizing the best business plan template can save you time and ensure that your plan is well-structured and comprehensive.
Business plan examples may even help you with the different sections of a plan, including market analysis, business description, cash flow statements/business financial statements, and more. Business plans can also show you how a quality plan in your exact business plan category is organized and shows you the appropriate business communications style to use when writing your business plan.
2. Who would benefit from using an example business plan?
Any entrepreneur or business owner who has never written a business plan before can benefit from an example or sample plan. New business owners often start with business plan templates , which are helpful but are sometimes more useful after reviewing other sample business plans.
A good sample plan can be a step-by-step guide as you work on your business planning and business idea. Once you have a sense for the flow, specs, and details, etc. that business plans have, utilizing a business plan template will help you pull everything together, helping you create a plan investors and other stakeholders will value. A solid business plan will also help you if you need a bank loan, which may require a startup business plan. Download our free business plan template to help you get started on your own business plan.
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3. How do you get started with a sample business plan and maximize its benefit?
First you should read the business plan thoroughly. Study both the type of information provided in key sections like the executive summary, target market analysis, summary, etc., as well as the format and style of the plan. As you read, you may find yourself thinking through things such as improving or evaluating your business planning process, your business idea, or reconsidering who you want to write your business plan for. This is OK and part of the process. In fact, when you start writing a business plan for the first time, it will be much easier because you’ve gone through this process.
After this initial read, outline your business plan and copy in from the sample plan sections that apply to your business. For instance, if the sample plan included public relations in their marketing strategy and sales plan, and you will also use this tactic, you can copy it into your plan and edit it as appropriate. Finally, answer the other questions answered in the sample plan in ways that reflect your unique business and target customers.
Writing a business plan can seem daunting. Starting your business plan writing process by reviewing a plan that’s already been created can remove a lot of mental and emotional barriers while helping you craft the best plan you can.
4. When should you not use a sample business plan?
If your business is unlike any other, using a sample business plan will not be as effective. In this situation, writing a business plan from scratch utilizing a business plan template is probably your best path forward.
As an example, Facebook’s early business plan was unlike others since it was paving a new path and way of doing business. But, groundbreaking new businesses like Facebook are not the norm, and the vast majority of companies will benefit from utilizing sample business plans.
5. How do you choose the right type of business plan for your venture?
Selecting the appropriate type of business plan depends on your business’s stage, needs, and goals. Let’s explore the different types of business plans and how to determine which business plan format is right for you.
- Startup Business Plan : This type of plan is for businesses just starting out and seeking funding or investment. It typically includes a detailed analysis of the market, target audience, competition, and financial projections.
- Traditional Business Plan : Traditional business plans are the most common type of business plan, used by established businesses to outline their goals and strategies. It includes all the key sections such as market analysis, company description, and financial statements.
- Internal Business Plan : Internal business plans are used for internal purposes, to guide the day-to-day operations and decision-making of the business. It may not be as detailed as a traditional business plan, but still includes important information such as company mission, objectives, and key performance indicators.
- Feasibility Business Plan : A feasibility business plan is used to assess the viability of a new product or service in the market. It includes detailed research and analysis to determine if the business idea is feasible and profitable.
- One-Page Business Plan : As the name suggests, this type of business plan is condensed into one page and includes the most critical information about the business. It can be a useful tool for pitching to potential investors or partners.
- Strategic Business Plan : A strategic plan looks at the big picture and long-term business goals of a company. It may include the company’s mission statement, core values, and overarching strategies for achieving success.
Ultimately, the type of business plan you choose will depend on your business’s specific needs and goals. It may also be beneficial to combine elements from different types of plans to create a customized plan that best fits your business. Carefully consider your objectives and resources before deciding on the right type of plan for your venture.
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The business plan example below is for Shoutmouth, a company that enjoyed much success in the early 2000’s and which was able to raise funding. While the plan’s premise (social networking) is not as unique now as it was then, the format and structure of this business plan still holds.
I. Executive Summary
Business Overview
Launched in late February 2007, Shoutmouth.com is the most comprehensive music news website on the Internet .
Music is one of the most searched and accessed interests on the Internet. Top music artists like Akon receive over 3 million searches each month. In addition, over 500 music artists each receive over 25,000 searches a month.
However, music fans are largely unsatisfied when it comes to the news and information they seek on the artists they love. This is because most music websites (e.g., RollingStone.com, MTV.com, Billboard.com, etc.) cover only the top eight to ten music stories each day – the stories with mass appeal. This type of generic coverage does not satisfy the needs of serious music fans. Music fans generally listen to many different artists and genres of music. By publishing over 100 music stories each day, Shoutmouth enables these fans to read news on all their favorite artists.
In addition to publishing comprehensive music news on over 1200 music artists, Shoutmouth is a social network that allows fans to meet and communicate with other fans about music, and allows them to:
- Create personal profiles
- Interact with other members
- Provide comments on news stories and music videos
- Submit news stories and videos
- Recommend new music artists to add to the community
- Receive customized news and email alerts on their favorite artists
Success Factors
Shoutmouth is uniquely qualified to succeed due to the following reasons:
- Entrepreneurial track record : Shoutmouth’s CEO and team have helped launch numerous successful ventures.
- Affiliate marketing track record : Online affiliate marketing expertise has been cited as one of MySpace’s key success factors. Over the past two years, Shoutmouth’s founders have run one of the most successful online affiliate marketing programs, having sold products to over 500,000 music customers online.
- Key milestones completed : Shoutmouth’s founders have invested $500,000 to-date to staff the company (we currently have an 11-person full-time team), build the core technology, and launch the site. We have succeeded in gaining initial customer traction with 50,000 unique visitors in March, 100,000 unique visitors in April, and 200,000 unique visitors in May 2007.
Unique Investment Metrics
The Shoutmouth investment opportunity is very exciting due to the metrics of the business.
To begin, over the past two years, over twenty social networks have been acquired. The value in these networks is their relationships with large numbers of customers, which allow acquirers to effectively sell to this audience.
The sales price of these social networks has ranged from $25 to $137 per member. Shoutmouth has the ability to enroll members at less than $1 each, thus providing an extraordinary return on marketing expenditures. In fact, during an April 2007 test, we were able to sign-up 2,000 members to artist-specific Shoutmouth newsletters at a cost of only 43 cents per member.
While we are building Shoutmouth to last, potential acquirers include many types of companies that seek relationships with music fans such as music media/publishing (e.g., MTV, Rolling Stone), ticketing (e.g., Ticketmaster, LiveNation) and digital music sales firms (e.g., iTunes, The Orchard).
Financial Strategy, Needs and Exit Strategy
While Shoutmouth’s technological, marketing and operational infrastructure has been developed, we currently require $3 million to execute on our marketing and technology plan over the next 24 months until we hit profitability.
Shoutmouth will primarily generate revenues from selling advertising space. As technologies evolve that allow us to seamlessly integrate music sampling and purchasing on our site, sales of downloadable music are also expected to become a significant revenue source. To a lesser extent, we may sell other music-related items such as ringtones, concert tickets, and apparel.
Topline projections over the next three years are as follows:
II. Shoutmouth Overview
What is Shoutmouth?
Shoutmouth is an operating company of The Kisco Group Inc. (TKG). Since 2003, TKG has capitalized on web-based marketing opportunities via launching targeted websites and generating web-based leads. TKG revenues in 2005 exceeded $1.3 million and grew to $3.5 million in 2006. Shoutmouth is currently the sole focus of TKG; all other TKG business units have been divested.
Development of Shoutmouth began in August 2006 and the site officially launched on February 21, 2007. Shoutmouth (located at www.shoutmouth.com) is the most comprehensive music news community on the Internet. The website covers 1,200 popular bands and music artists and offers more than 100 new music articles each day. In addition to providing news, Shoutmouth is a web community. That is, Shoutmouth members can actively participate on the site, by doing things such as commenting on news stories and submitting their own stories.
The Market Size and Need for Shoutmouth
The music market is clearly vast. According to IFPI, which represents the recording industry worldwide, global music sales were $33.5 billion in 2005, with the U.S. accounting for $12.3 billion of that amount. Importantly, digitally music sales are seeing substantial growth, with IFPI reporting sales of $400 million in 2004, $1.1 billion in 2005 and $2 billion in 2006.
Online, music is the one of the most frequently searched and accessed interests. For example, according to Wordtracker, the music artist Eminem received over 1.7 million web searches in December 2006, while band Green Day received 534,000 searches.
To put these figures in perspective, top celebrities in other entertainment fields receive but a fraction of this search volume. For example, December 2006 search volumes for select sports stars and actors were as follows: Kobe Bryant, 122K; Tiger Woods, 88K; Cameron Diaz, 332K; and Tom Cruise, 82K.
Conversely, 225 music artists received over 100,000 searches in December 2006, and over 500 music artists received over 25,000 searches.
This data is corroborated by Nielsen BuzzMetrics which plots the most popular topics bloggers are posting about. The chart to the right plots September 25, 2006 to March 25, 2007 and shows how music dominates other entertainment sectors online.
When searching for music artists online, fans, which are primarily between the ages of 13 and 35, are looking for news, pictures, lyrics, videos and audio files. In addition, fans enjoy publicly voicing their opinions about music and interacting with other fans.
There is currently no website besides Shoutmouth that provides comprehensive music news. Currently, to get the latest news on their favorite artists, fans must visit the official websites or fan websites of each of the artists they like . Even then, it is unlikely that the fan will get all the news that has occurred. To solve this problem, Shoutmouth scours the web and uncovers news from thousands of web sites.
What Shoutmouth Does and Will Offer
As of May 2007, the site covers the 1,200 most popular music artists (popularity primarily based on the number of web searches over the past 12 months for each artist).
Shoutmouth currently offers members the ability to:
- Read over 500 new music articles each week
- Read special features such as album reviews, interviews, new album release dates, top quotes of the week and other special reports
- Watch and rate music videos
- Listen to select music audio clips
- Comment on news stories and music videos
- Submit news stories that they see/hear of elsewhere
- Suggest new music artists to add to the site
- View articles by music artist or by genre (current genres include Rock, Pop, Rap, R&B, Country, and Electronic)
- Create a user profile that includes their favorite music artists, Shoutmouth friends, news stories submitted to Shoutmouth, and comments made. Members have the ability to find other members based on their favorite artists and via our search functions.
- Receive customized news and email alerts. Members can customize their “My News” page to include only artists they specify. Likewise, they can choose to receive email alerts whenever there is a new story on one of their favorite artists.
While establishing itself as the premier music news community, Shoutmouth will embark on the more aggressive goal of becoming the premier music community online . To accomplish this, Shoutmouth will begin to offer additional content (more videos, audio, pictures, lyrics, etc.) and additional functionality (music compatibility testing (e.g., if you like this, you’ll like this), voting capabilities, member-to-member messaging, etc.). We have already begun mapping out our content and technology growths plans to achieve this goal upon financing.
Importantly, Shoutmouth expects to be able to add massive amounts of relevant content (e.g., lyrics, reviews, pictures, video files, audio files, etc.) via member submissions and moderation. This is the same way that YouTube has been able to quickly add millions of videos and Wikipedia has been able to add millions of articles. Importantly, since established music websites (e.g., MTV, RollingStone.com, Billboard.com, etc.) are not community based, they would have to hire thousands of staff members to rival the content that Shoutmouth will have.
How We Get and Publish Our News
Currently, news stories that appear on Shoutmouth are gathered from numerous online sources. Shoutmouth’s staff writers find these stories by using RSS and News feeds that cover thousands of websites. In addition, Shoutmouth community members have the ability to submit stories they find elsewhere.
Typical stories include factual information plus the insight of the author. Shoutmouth editors ensure that all stories are properly classified by artist and genre, and that duplicate articles are filtered out.
Over the past three months, Shoutmouth has developed a solid infrastructure, which we consider a core competitive advantage, that that allows us to provide comprehensive music news . This infrastructure includes:
- Setting up hundreds of RSS feeds based on comprehensive research regarding sites from which to receive feeds
- Training our editorial team regarding identifying a story and weeding out duplicates
- Assigning music artists among our five-person editorial team to better manage work flow and avoid duplicate articles
We are working on a system to ensure that member-submitted articles are automatically routed to the appropriate member of Shoutmouth’s editorial team to improve our efficiencies further.
Shoutmouth’s Goal to Break News First
The majority (approximately 90%) of Shoutmouth’s articles are currently developed by our in-house editorial team, while the balance is submitted by members. In addition, virtually all of our articles are based on information gleaned from other websites. As such, we are generally not the first to publish news; however we are the first and only site to publish all the news in one easily-accessible place. The one current exception is news which is published on bands’ official MySpace pages; Shoutmouth generally publishes articles on this news 24 to 48 hours before it is reported by other news or music sites (due to our efficiencies in finding news).
Shoutmouth realizes that it will gain a key competitive advantage, and will generate significant market buzz, if it is able to report on music news stories before other media sources . To accomplish this, we have begun contacting publicity departments at record labels to gain direct access to music news. We expect these contacts to enable us to gain immediate and sometimes exclusive access to news which will help further establish Shoutmouth as the canonical source for music news. We also plan to more aggressively solicit member submissions of new, buzzworthy news events and will consider offering rewards for unique substantiated news (much the way paparazzi are compensated).
III. Competition in the Online Music Market
This section of the business plan provides a competitive analysis, which is an overview of the competitive landscape, discusses both indirect and direct competitors and then details Shoutmouth’s competitive advantages.
Because consumer demand for music on the Internet is so great, there are a vast number of music websites. In summary, we consider most sectors of the online music market (which are discussed below) to be indirect competitors and potentially partners, rather than direct competitors, because none of them focus on music news.
The reason we believe that no one focuses on music news is that it is very difficult to do. Because news is very important to music fans, most music websites offer news. However, they primarily get their news from organizations such as CNN, Reuters, the Associated Press and BBC. These large organizations only write about the music stories that have mass appeal, which traditionally amounts to 8-10 music news stories per day. However, since music fans are often zealots when it comes to their favorite artists, they are not merely interested in cover stories. For instance, a U2 fan cares about any U2 news, particularly news that a non-U2 fan might consider insignificant.
In fact, because Shoutmouth is the sole one-stop shop for getting comprehensive music news, there might be an opportunity to license our content to other music websites.
Sectors of the Online Music Market
Shoutmouth specifically competes in the community-based music news market. While players in this market represent direct competitors, Shoutmouth faces indirect competitors in the following markets:
- Community-Based Sites
- Community-Based News Sites
- Community-Based Music Sites
- Traditional Music Websites
- Official Artist and Fan Sites
Each of these markets is described below.
A. Community-Based Sites
Community-based sites, also known as social networking sites, are websites in which members can create profiles, leave comments throughout the site, and communicate with other members among other features.
A June 2006 report by Piper Jaffray entitled “Silk Road: Social Networking is Here to Stay” effectively sums up the power and longevity of social networking:
“We believe social networking sites have become a permanent part of the fabric of web applications and are rapidly becoming one of the most popular activities online, potentially impacting how other popular services such as email, IM, and maybe even search are accessed.
As a clear indication of the growth rate and scale of social networking, consider this: MySpace monthly page views have now surpassed MSN or AOL in the U.S. and are nearly 75% of the size of Yahoo!. Social networking has filled a gap that was left by all the existing portals and web services and it is fulfilling a very important and basic function for millions of users: allowing them to express themselves and connect with their friends, with the two functions tightly integrated.
The leading sites such as MySpace (News Corp), Facebook, and others are amassing significant power in the new landscape of the Internet and the existing Internet companies are likely to have to work with these newcomers as they may yield material control on the flow of traffic to other applications.”
Social networking sites such as MySpace.com, Facebook.com, Tagged.com, and TagWorld.com have educated consumers regarding the value of these sites and how to use them. Their success has spurred genre-specific social networks such as community-based/social networking news sites and music sites, which are discussed below.
Shoutmouth doesn’t view established social networking sites as competitors since these sites have a general focus. That is, members talk about all aspects of life, from dating to music to movies, etc. Conversely, Shoutmouth is solely focused on music.
B. Community-Based News Sites
Community-based news sites are sites in which members decide what’s newsworthy and what’s not. For instance, on Digg.com, the most prominent community-based news site, members “Digg” stories that they feel are most newsworthy. The stories that the community feels are most important rise to Digg’s homepage, while less important stories get little attention.
Digg’s one million members can submit stories, “digg” stories, and comment on stories. Digg focuses on general news with a slant towards technology, gaming and unique/sensational news. While Digg does have a Music area within its Entertainment section, this receives little focus. In fact, at the time of the writing of this plan, Digg’s music home page only includes one article submitted within the past 48 hours. Furthermore, Digg doesn’t pare down the music category into sub-categories such as Rock and individual music artists. Conversely, these sub-categories are the entire focus of Shoutmouth.
Other sites that are similar to Digg include Newsvine.com, Spotback.com and Gabbr.com. Of most relevance is the Digg-like site for music, Noisetap.com, which was launched by Ticketmaster in January 2007.
Like Digg, Noisetap.com allows members to submit and vote for music stories. Noisetap.com is organized by music genre and not by music artist. This most likely will not satisfy the needs of many music fans since they don’t have the ability to find news on the specific artists they care most about. Likewise, without a full-time staff actively researching and publishing news stories at the artist-level, Noisetap.com will never be able to offer the comprehensive news that Shoutmouth does.
While Shoutmouth is currently similar to community-based news sites in that members can submit stories and comment on the news they find most interesting, no established player in the market provides a comprehensive focus on music. In addition, Shoutmouth sees these sites as marketing partners as we have and will continue to submit our stories on them to increase our readership.
C. Community-Based Music Sites
There are many community-based music websites, although none focuses on music news such as Shoutmouth. Conversely, these sites generally give members the ability to create and listen to song play lists. The community acts to help individual members find new music and new friends based on similarities in their music tastes. Prominent sites in this genre include Last.fm, Finetune, Pandora, RadioBlogClub, MyStrands, iLike[1] and iJigg.
Last.fm is the most prominent community-based music site and is a good model with which to compare Shoutmouth. Likewise, we will benchmark our performance against Last.fm as we reach of goal of becoming the premier music news community and focus on becoming the premier music community.
According to Alexa, Last.fm is the 359th most visited site on the Internet. While Last.fm focuses on allowing members to create customized Internet stations based on their music tastes, the site has much additional content and social networking features. For instance, for each artist, Last.fm includes pictures, a bio, concert dates, discography, fans on Last.fm, and similar artists. Fans are also able to create journals and communicate with other fans. Key features that Last.fm doesn’t currently focus on include news and video.
D. Traditional Music Websites
Traditional music websites such as MTV.com, RollingStone.com, Billboard.com, NME.com, AOL Music, and Yahoo! Music tend to have many features such as news, reviews, pictures, videos and audio. While these sites are generally very well done and extremely popular, they are under-serving visitors in two core areas: music news and community .
These sites’ lack of music news stems from the difficulty in creating this news, specifically that it requires filtering through thousands of articles and websites to find relevant stories. Likewise, as discussed, these firms might wish to license our news content in the future.
Regarding community , none of the top music sites are thriving communities. Rather, either these sites offer no community features or they recently began offering select features (e.g., submitting reviews or commenting on articles). Even when available, the community features on these sites are afterthoughts and are not engrained within the core fabric of the sites.
While they haven’t been able to transform their current sites into communities, top music websites clearly understand the power of online music communities and have an appetite for them. For example, in January 2007, MTV invested in social networking website TagWorld. MTV also acquired RateMyProfessors.com and Quizilla.com (teen social network) in January 2007 and October 2006 respectively.
As mentioned previously, our vision is to build and incorporate additional technologies, and use our “army” of members to publish vast amounts of music content on Shoutmouth, in order to fully satisfy music fans and leapfrog traditional music sites in terms of their music content.
E. Official Artist and Fan Sites
Shoutmouth com’s with official music artist websites and fan websites. These sites often include news about the specific artist as well as pictures, videos and other relevant information.
On one hand, official music artist and fan websites are direct competitors to Shoutmouth. This is because some of these sites offer comprehensive news on the specific artist they cover. In addition, many offer forums, discussion boards or other ways to communicate with other fans.
However, two factors separate Shoutmouth from these types of sites: 1) breadth and 2) sophistication.
- Breadth : Most music fans love more than one artist. As such, in order to get the news they want, they would have to visit/join multiple fan or artist websites rather than getting all of their news from Shoutmouth.
- Sophistication : While some official music artist websites are technologically sophisticated, offering forums, networking and other worthwhile features, the majority of artist and fan websites have limited usability, functionality and networking ability. In fact, this deficiency has lead to the success of MusicToday, which provides front and back-end technology to power artist websites.
Specifically, MusicToday offers web design and hosting, develops sophisticated online stores, builds online fan clubs and offers web ticketing among other services to select top music artists such as Dave Matthews Band, Christina Aguilera, Kenny Chesney, Britney Spears and Usher. While offering sophisticated tools for select music artist websites, MusicToday offers little to no music news nor advanced social networking functions. For instance, the official Dave Matthews Band website offers less than one news story per month.
F. Direct Competitors: Community-Based Music News Sites
Shoutmouth’s direct competitors are other music news websites that have social or community features that allow users to join the site, submit articles, comment on articles, create public profiles and/or communicate with other members. Shoutmouth has identified one significant player who offers this service, AbsolutePunk.net.
AbsolutePunk.net has done a good job of building a user base (the site claims 125,000+ registered members and nearly 500,000 unregistered members). In addition, the user base is very active — the average story on their site receives approximately 20 comments. AbsolutePunk.net offers music news, reviews, pictures and interviews among other features.
On the negative side, AbsolutePunk.net’s articles are generally posted by one staff writer (as opposed to Shoutmouth’s five writers), most articles are simply one sentence posts rather than full articles, and no attempt seems to have been made to cover all news stories. In addition, the site only covers the punk music genre. Although “punk” is broadly defined on the site, the site doesn’t cater to genres such as R&B, rap and country among others, failing to satisfy the broader market.
AbsolutePunk.net is owned by Indieclick, a Los Angeles-based media company. According to the AbsolutePunk.net website, the site:
- Has developed a loyal (72% return rate) reader base
- 5,182,147 Posts
- 163,535 Threads
- 126,448 Members
- 1,711 Artist Profiles
- 20,774 Multimedia Files
- Approx 76,000 visits per day.
- Approx 276,000 pageviews per day.
Shoutmouth’s Competitive Advantage
In addition to being the first to fill the untapped market void for comprehensive music news, Shoutmouth’s competitive advantage in the market primarily includes the following:
Online Marketing Sophistication
Content Development Experience and Expertise
Shoutmouth’s team, primarily team members DL and PF, has operated an affiliate marketing business focusing on music for the past four years. Affiliate marketing is defined as a system of revenue sharing between one site (the affiliate) which features an ad or content designed to drive traffic to another site (the merchant). The affiliate receives a fee based on traffic to the merchant which converts to sales.
Our affiliate business has focused on connecting music fans, primarily aged 13 to 30, with music offers such as iPods and ringtones. Over the past two years, we have successful sold affiliated offers to over 500,000 customers. We have become a significant online advertiser, receiving Google’s “over 1 million leads” award, and are recognized as a major player among the top affiliate networks.
It is important to note that affiliate marketing success has been credited with part of MySpace’s success. This is because effective affiliate marketers understand how to drive and convert on Internet traffic.
Shoutmouth will employ its affiliate marketing techniques to drive traffic to Shoutmouth.com and enroll members. We will utilize technologies and proprietary techniques that allow us to monitor multiple metrics such as the cost per visitor, cost per member sign-up, etc., so that we can set and maintain profitable metrics.
Another venture that Shoutmouth team members, primarily PK and DL, launched was the development of over 3,000 niche websites. To create the content for these websites, we employed a virtual work force of over 90 researchers in India and 30 writers and editors in the US.
This experience taught us how to manage a large workforce, train writers to improve content quality and motivate a large group of people. These skill sets will be critical in allowing Shoutmouth to grow the content of the site, as developed by both staff and members, while maintaining quality standards.
IV. Marketing Plan
Shoutmouth’s marketing plan includes the following:
Online Advertising : Shoutmouth will initiate pay-per-click advertising campaigns on Google and Yahoo! in order to inexpensively drive traffic to the site. Specifically, Shoutmouth believes it can drive qualified traffic to the site for 20 cents per visitor and achieve a 20% member conversion rate, thus generating members at a cost of $1.00 per member.
Keys to Shoutmouth’s success in achieving this metric include:
- Conducting thorough keyword research and advertising on appropriate keywords and keyword groups
- Creating advertising text that maximizes click through rates
- Creating landing pages that maximize conversions while maintaining the highest Google AdWords quality score possible
- Closely monitoring conversions to quickly stop and/or modify unprofitable campaigns
- Getting individuals to enter their email address to join the newsletter is much easier than getting them to join a site where they have to create a username, select a password, etc. As such, step one will be to get visitors to sign up for artist-specific newsletters.
- Once on the newsletter distribution list, members will constantly receive messages (embedded in their daily newsletter) regarding the benefits of participating more on Shoutmouth.
- Active Shoutmouth Membership: the constant reminders regarding Shoutmouth’s value proposition in the daily newsletters will influence members to participate more actively on the site (e.g., customize their profile, visit the site more often, etc.).
Invite-A-Friend : Shoutmouth is in the process of creating an aggressive invite-a-friend/member referral program. In doing so, we are following the lead of social movie community, Flixster, which grew to 5 million members within 10 months. It did this by encouraging members, during their initial registration process, to upload and send an invitation to multiple contacts in their email address books. The technology to develop this process is fairly complex and we expect to be completed with and to rollout this program in June 2007.
Direct Email Marketing : Shoutmouth will directly contact bloggers and prominent music fans we find online to tell them about Shoutmouth, encourage them to join, and encourage them to write about Shoutmouth on their blogs and online journals .
Creating/Distributing Buzzworthy/Viral Content : Shoutmouth plans to have several buzzworthy/viral articles (i.e., content that people would want to email to their friends since it is funny, interesting, etc.) on the site each day. With a single click, visitors will be able to send these articles to social bookmarking sites such as Digg.com or Fark.com, where these articles could receive widespread attention. In addition to our traditional news stories, Shoutmouth will also periodically create special reports/features in order to satisfy our members and visitors and to try to get widespread exposure.
An example of the power of such buzzworthy content, Shoutmouth has already succeeded in having two stories accepted by Fark and Digg, which have brought in over 50,000 unique visitors.
Super Fans/Street Team Development : Shoutmouth also plans to recruit “super fans.” Super fans are individuals who are passionate about a certain music artist/band and actively contribute articles and/or comments on Shoutmouth. We will recruit these fans, reward them with status (e.g., adding a gold Shoutmouth headphones image to their profile page) and encourage them to more aggressively promote the site by:
- Submitting more news to Shoutmouth
- Commenting on more articles on Shoutmouth
- Growing the Shoutmouth community around their favorite artist(s) by actively recruiting new members to join the site (such as actively posting Shoutmouth-related comments on their MySpace pages, on other music forums, etc.)
Public Relations : Upon financing, Shoutmouth will hire a public relations firm to help us get mentions in media sources ranging from magazines, newspapers, radio, television and blogs. To date, we have developed and issued press releases via Billboard Publicity Wire which have been syndicated throughout the web. An effective PR firm will enable Shoutmouth to quickly reach a wide audience.
Widgets : Shoutmouth will create artist-specific and genre-specific music news widgets. For example, our U2 widget (see example on right) would include all of the recent U2 articles published on Shoutmouth. The widget can easily be placed on MySpace pages, blogs, etc. Each story title in the widget links to the full article on Shoutmouth.
Shoutmouth has great expectations for our widget. To begin, no such widget currently exists as there is no one place to get comprehensive news for specific music artists. Secondly, each time someone places a Shoutmouth widget on their blog or social networking page, it will effectively market Shoutmouth to a wide audience at zero cost to us.
V. Technology/Site Development Plan
This section provides a brief roadmap of the initial and future functionality of Shoutmouth.
Initial Site Functionality
The initial Shoutmouth website will include the following features:
- Ability to submit and comment on news stories
- Ability to suggest new music artists to add to the site
- Ability to create user profiles
- Ability to receive customized news and email alerts
- Articles categorized by artist and core genre (e.g., Rock, Rap, Pop, etc.)
- Music artist sections which includes News, Bio and Fans
Future Site Functionality
Shoutmouth will use news and basic functionality as the platform though which we will build a thriving music community. After initial launch, the Shoutmouth technology team will work on incorporating additional features such as:
- Ability to message other members via the site (e.g., members will have an Inbox on the site)
- Event calendars: members will receive online calendars. With the click of a button, the member will be able to add tour dates of their favorite artists/bands to their calendar.
- Articles also categorized by sub-genre (e.g., Alternative Rock, West Coast Rap, etc.)
- Music artist sections to also include videos, audio files, photo galleries, reviews and event calendars to which members can upload files and vote on top content.
- Forums and member blogs
- Music compatibility testing (suggestions on song/artists members might like)
- Trivia quizzes
- Music playlists
VI. Financial Plan
Revenue Model
During the first six months, Shoutmouth will not generate any revenues as it will not sell advertising space nor offer products for sale. This decision has been made to spur the growth of the Shoutmouth community. By initially positioning Shoutmouth more as a non-profit, for-the-people-by-the-people venture, members will be more prone to promote the site and invite their friends than if the site looks too commercial.
Starting in September 2007, Shoutmouth will primarily generate revenues from selling advertising space. As technologies (such as the Snocap music widget) evolve that allow us to seamlessly integrate music sampling and purchasing on our site, sales of downloadable music are also expected to be a significant revenue source. To a lesser extent, we may sell other music-related items such as ringtones, concert tickets, and apparel.
Funding To Date
To date, Shoutmouth’s founders have invested $500,000 in Shoutmouth, with which we have accomplished the following:
- Built the site’s core technology
- Hired and trained our core staff (we currently maintain an 11-person full-time team)
- Populated the website with content (over 10,000 articles and 1,200 artist bios)
- Generated brand awareness among music fans, including driving 50,000 unique visitors in March, 100,000 unique visitors in April, and 200,000 unique visitors in May 2007.
Funding Requirements/Use of Funds
Shoutmouth is currently seeking $3 million to provide funding for the next 24 months. At this point, the site will be profitable and can grow organically, or additional capital may be sought to more aggressively expand our member base.
The capital will be used as follows:
- Execution of Marketing plan : in order for Shoutmouth to grow its visitor and member base, we need to invest dollars in online advertising and public relations. With regards to online advertising, we are confident that we can enroll members at a cost of $1 per member, which is a fraction of the value of the members to an acquirer (minimum $25 per member), thus providing a significant return on our marketing investments.
- Execution of Technology plan : in order to build a thriving community, Shoutmouth needs to offer its visitors a “stickier” website and enhanced features. We currently maintain a vast “wish list” of features, such as members uploading and rating pictures and videos, trivia quizzes, and member-to-member messaging, that will significantly improve the site’s functionality and value proposition.
- Staffing : In order to reach our goals, we will have to hire additional technical and operations personnel.
Financial Projections
Below is an overview of Shoutmouth’s Financial Projections for the next three years. Please see the Appendix for the full financial projections and key assumptions.
Exit Strategy / Valuation Metric
Shoutmouth’s most likely exit strategy is to be acquired by a traditional music website or property (e.g., Viacom/MTV, Ticketmaster, Rolling Stone), an entertainment/media conglomerate (e.g., Yahoo!, IAC/InterActiveCorp, NBC), or a large social networking site (e.g., News Corp/MySpace).
This strategy is supported by the significant M&A activity in the social networking market, which includes the following transactions over the past 24 months:
Regarding valuation, below are the estimated valuations of social networking companies on a per member basis upon exit:
- Del.icio.us: $50 – $100 per member
- MySpace: $25 per member
- Xing (business social network): $137 per member at IPO in 10/06
- Flickr: $56 – $130 per member
- Grouper: $130 per member
Based on this data, not only are social networking sites a promising investment, but sites that can acquire members for less than $25 each (a conservative valuation estimate based on the figures above), should earn a solid return on investment. As discussed above, Shoutmouth’s goal is to acquire members for no more than $1 each.
In addition, per the membership projections above, Shoutmouth’s valuation at the end of 2009, at a $25 valuation per member, is expected to be $239 million. A more conservative, using a 24.4 time EBITDA multiple (the average multiple of tech M&A deals in 2006 according to The M&A Advisor), yields a $121 million valuation in 2009.
Shoutmouth’s founding team includes entrepreneurs and managers with a track record of success and a history of successfully working together.
Management Team
DL, Co-Founder and CEO
D has a history of successfully launching and growing businesses of all sizes. As president and co-founder of an entrepreneurial services firm., D has personally assisted in the launch and development of over 100 ventures.
Over the past three years, D founded and has managed The Kisco Group which includes an affiliate marketing division (2006 revenues exceeded $3 million), a search engine optimization business which includes a network of 3,000 websites (2006 revenues exceeded $500,000) and an e-commerce business (which includes TopPayingKeywords.com and ShowerHeadsEtc.com).
D earned his Bachelors degree from the University of South Carolina.
PK, Co-Founder and Vice President of Operations
For the past two years, P has managed The Kisco Group’s search engine optimization business where he hired, trained and managed nearly 100 employees and a dozen outside firms. During this time, P has honed his management skills with regards to content development, marketing and operations.
P has had a passion for music since childhood and has been a semi-professional drummer for the past 15 years.
P earned his Bachelors of Arts degree, magna cum laude, from Clemson University.
PF, Co-Founder and Vice President of Technology
For the past year, P has managed The Kisco Group’s affiliate marketing business. In addition to setting up and managing widespread marketing campaigns, P has developed sophisticated analytic techniques to precisely analyze web traffic in order to optimize profitability.
Since August 2006, P has shifted his efforts and leveraged his technology skills in developing the Shoutmouth website. P has been instrumental in selecting the Content Management Platform upon which Shoutmouth is built, and finding and managing the technology team.
P earned his Bachelor of Arts degree from Swarthmore College.
AB, Marketing Manager
A’s background in music includes being a singer, songwriter, guitarist and producer. He has also worked on the marketing side of music, having marketed Veritas Records through the development and distribution of promotional materials.
A’s career also includes psychological research and administration, having served as a Research Assistant with the Interpersonal Perception And Communication Laboratory in Cambridge, MA.
A earned his Bachelor of Arts degree in Psychology from Ohio State University.
M, Lead Technology Developer
M is an experienced web programmer with expertise in web design, application development and database development among others.
M’s work experience includes serving as a Senior Developer at Spheres. M has also engaged in multiple, long term freelance projects including serving as a Database Developer Consultant with The Penn Group and a Web Developer Consultant with Volution Media Group and Allied Online Consulting Group.
M earned his Bachelors degree in Computer Science with a minor in Cognitive Science from Rutgers University.
Content Development Team
Shoutmouth’s writing team, managed by PK, includes the following members:
- JS, Editorial Manager: former content manager and copywriter for Scholastic Inc. and Promotions.com.
- TZ: former music intern (Virgin Records and WRRV) and author of the blog, The Tom Z Show .
- ML: former assistant editor for Adventure Publishing; author of the blog Certified Gangsta ; and former editor-in-chief of Fordham University’s newspaper The Paper .
- SB: former staff writer for Paste Magazine , The Clarion Ledger , and Nightclub and Bar Magazine among others.
- CSJ: former editorial intern for Rolling Stone and Editorial Assistant for Psychology Today .
Outsourced Technology Team
Shoutmouth works very closely with 2skies, a technology firm based in Australia with staff in Australia and the United States. 2skies is run by JDN, one of the co-founding developers of XE, the platform upon which Shoutmouth is built.
XE is an extensible, Open Source web application framework written in PHP and licensed under the GNU General Public License. XE delivers the requisite infrastructure and tools to create custom web applications that include fully dynamic multi-platform Content Management Solutions (CMS).
VIII. Appendix: Shoutmouth Financial Projections 3-Year Income Statement
3-Year Balance Sheet
As of December 31
3-Year Cash Flow Statement
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5 Types Business Plan PDF Templates with Free Samples
Creating a business plan can be a daunting task for many entrepreneurs. To make the process easier, having a template to work from can be helpful.
We will outline five popular types of business plan PDF templates and provide free samples for each type. This way, you can get a better understanding of which template is best suited to your business needs and objectives. With a suitable template, you can ensure your business plan is comprehensive and professional.
Read on to discover the five types of business plan PDF templates with free samples.
#1 One Page Business Plan Template PDF
Are you starting a business and want a simple plan? The One Page Business Plan Template PDF is perfect! Here are two templates overview you need to know:
Template 1: Blue Business Plan
The Blue Business Plan is a simple yet professional one-page template perfect for small businesses and startups. It's easy to customize and is available in a PDF format for convenient use.
Template Highlights:
Here are some of its highlights:
Clean and minimalist design that looks professional and modern
It provides space for company summary, product/service description, target market, marketing and sales strategies, and financial projections.
Easy to fill out with a straightforward format that eliminates the need for extensive business planning
Try it out with the free sample and see how it can help your business succeed.
Template 2: One Page Business Plan Workbook
This template is a comprehensive workbook that includes everything you need to create a business plan from start to finish. This business plan workbook is perfect for anyone who wants a complete template that guides them through the process step-by-step.
This template breaks down the business plan into clear and concise sections, making it easy to follow.
Each section includes a corresponding worksheet to help you gather and organize the necessary information for your business plan.
The workbook provides detailed instructions and guidance on how to fill out each section, including tips and examples.
#2 Startup Business Plan Template PDF
A startup business plan template PDF is helpful for those wanting to start their own business. Here are two templates overview you need to know:
Template 1: Fox Gradient Business Presentation
Are you looking for a modern and eye-catching business plan template? The Fox Gradient Business Presentation template might be perfect for you! Whether starting a new business or seeking funding, this Fox Gradient Business Presentation template is a great choice to make a lasting impression.
This template has a professional and sleek design that will make your business plan stand out.
Using gradients and geometric shapes creates a visually stunning effect that will impress your audience.
It features customizable icons, maps, charts, and tables to help you present your information clearly and effectively.
Template 2: Startup Business Aesthetic Report
This business plan template is perfect for those who want to showcase their business visually appealingly. The Business Aesthetic Report template is modern and professional and will impress your potential investors.
The template includes 24 unique slides with different color schemes and layouts, allowing you to choose the one that best suits your needs.
It has placeholders for images, so you can easily add your business photos or graphics.
The template also has infographics to help you clearly and concisely present your data.
#3 Small Business Plan Template PDF
If you have a small business, you need a plan! This template can help you get started and achieve your goals. Here are two templates overview you need to know:
Template 1: Weekly Work Plan Summary
This business plan template is perfect for small businesses or entrepreneurs who must organize their weekly tasks and goals. It is simple and easy to understand, even for someone just starting a business.
The Weekly Work Plan Summary template is a one-page document divided into seven days of the week, with sections for morning, afternoon, and evening tasks.
Each day has a space for writing down the top priorities and any additional tasks that must be completed.
There is also a section for noting important weekly meetings or deadlines so everything is organized in one place.
Template 2: Fresh General Plant Work Summary
This Small Business Plan Template PDF is perfect for those who want to focus on their business's operations and daily tasks. Additionally, the financial section provides a clear picture of the company's budget and future revenue projections, making it easier to make informed decisions and plan for growth.
This template includes a one-page summary of the company's operations, sales, marketing, and financial goals.
In addition, it describes the company's products and markets.
The financial section includes a budget for each department and a projection of revenue and expenses for the upcoming year.
#4 Non-profit Business Plan Template PDF
Non-profit businesses also need a plan to reach their goals! Here's a template to help them out. Here are two templates overview you need to know:
Template 1: Store Profit and Loss Analysis Table
This template is perfect for businesses with a physical storefront or online shop. It helps owners track their revenue, expenses, and profits.
The easy-to-read format includes all essential financial information
It helps business owners identify where they can cut costs or increase revenue
Provides a clear snapshot of a business's financial health at a given moment
It can be used to compare performance over multiple periods
It Helps with tax reporting and budget planning
Free sample available for download
Template 2: Profit Financial Management System
The Profit Financial Management System template is essential for businesses looking to manage their finances and track their profits. By providing a clear picture of a business's financial performance, this template can help identify areas for improvement and support financial planning for the future.
This template provides a clear picture of a business's financial performance and can help identify areas for improvement.
Business owners can use the template to set realistic financial goals and track their progress toward meeting them.
The spreadsheet makes it easy to manage finances and track profits, reducing the risk of errors or oversights.
#5 Fill-in-the-blank Business Plan Template PDF
This business plan template is easy to use because it has blanks to fill in with your information. Here are two templates overview you need to know:
Template 1: Modern Black Business Report
The Modern Black Business Report template is a professional and visually appealing option for any business looking to create a comprehensive and attractive business plan. Plus, it's free to download and easily customized to your needs.
Here are the highlights of this template:
This template includes a cover page, executive summary, company description, market analysis, and financial projections.
The cover page has space for your company logo, contact information, and business description.
The market analysis provides an overview of your target market, competitors, and industry trends.
Template 2: Black Business Cover
This business plan template pdf features a stylish, professional-looking cover design, perfect for any business. If you want a professional-looking cover for your business plan that stands out, this black business cover template is ideal for you.
Here are some of the highlights:
The template has a clean and modern black design, making it easy on the eyes and perfect for any business.
The cover is fully editable, so you can add your business name and logo to make it personalized and unique to your company.
The template's sleek and stylish cover gives potential investors and partners a professional impression.
Advantages and Disadvantages of A Business Plan Template
A business plan template's benefits and drawbacks will be discussed here.
Saves Time:
Business plan template PDF files provide a pre-designed structure, making it easier and quicker to create a well-organized plan. This time-saving factor allows entrepreneurs to focus on other critical aspects of their business.
Ensures Comprehensive Planning:
A business plan template PDF prompts entrepreneurs to consider all the essential details and components required for a successful venture. It helps identify potential challenges and solutions, ensuring a more comprehensive planning process.
Professional Formatting:
Using a business plan template PDF ensures that your plan follows a professional format. This consistency helps in presenting your ideas and concepts in a clear and organized manner, making it easier for investors or lenders to understand your vision.
Disadvantages
Lack of Originality:
While templates offer structure and guidance, they may limit creativity and originality. Entrepreneurs may need help to express their unique ideas and differentiate themselves from competitors when using a template.
Not Tailored for Every Business:
Business plan templates are general guidelines that may not address specific industry or business needs. Entrepreneurs must adapt the template to fit their unique circumstances, which can be time-consuming and require additional research.
Potential Inaccuracy:
Templates often provide sample financial projections or market analysis, which may not accurately reflect an entrepreneur's situation. Without in-depth research, relying solely on template data can lead to incorrect assumptions and unrealistic expectations.
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FAQs About Business Plan Template PDF
Q1:what should be included in a business plan pdf.
A business plan template pdf should include details about your business goals, target customers, and marketing plans. It should also have financial projections and an executive summary. Use WPS Office to create or edit your free business plan template pdf.
Q2:How to write a business plan PDF?
To write a business plan PDF, you must start by researching and making a plan.
Look for a free business plan template PDF that fits your needs.
Next, create a clear outline of your business goals and strategies.
Use a startup business plan template PDF or a one-page business plan template PDF to keep it simple.
Remember to include financial projections.
Edit and format your plan using WPS Office, a helpful tool for working with PDF files.
Q3:What are the common mistakes in writing business plan templates?
Some common mistakes are:
Not setting clear goals. Make sure you know what you want to achieve.
Ignoring competition. Research the market and understand who your competitors are.
Underestimating expenses. Be realistic about the costs involved in running a business.
Not including a marketing strategy. Think about how you will promote your business.
You need to update the plan. Your business plan should be a living document that is regularly reviewed and updated.
Q4: How to find a business plan template pdf in WPS Office?
If you need a one-page business plan template pdf, non-profit business plan template pdf, or small business plan template pdf, search online. Once you find a template, use WPS Office to open or edit the PDF file.
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If you want to learn more about the benefits of WPS Office's PDF toolkit, check out their website for more information. You can also download their software and explore their templates to find the perfect fit for your business needs.
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Goat Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding - 39 pages) Goat Farming Business Plan Automated Financial Statements - (Editable Excel File) The business plan can be used in any country and can be easily edited. The financial statements are automated.
Fill-In-the-Blank Small Business Plan Template PDF; One-Page Small Business Plan Template PDF; Startup Business Plan PDF Templates. Startup Business Plan Template; Sample 30-60-90 Day Business Plan for Startup; Nonprofit Business Plan PDF Templates. Nonprofit Business Plan Template PDF; One-Page Business Plan for Nonprofit Organization PDF Fill ...
FILL-IN-THE-BLANK SMALL BUSINESS PLAN TEMPLATE DISCLAIMER Any articles, templates, or information provided by Smartsheet on the website are for reference only. While we strive to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accura cy, reliability,
Business Plan Summary Down in the Dirt Farm is a small-scale, diversified vegetable and livestock farm owned and operated by Phoebe and Taylor Dirt. They have operated the farm on leased land in central Vermont for the past three years. This business plan will serve as an operating guide for Down in the Dirt Farm as they purchase a new farm and ...
page 4 of 19 mission statement keys to success financial overview cash sales revenue financial-year net profit operating margin
There's no right or wrong way to write a business plan. What's important is that your plan meets your needs. Most business plans fall into one of two common categories: traditional or lean startup. Traditional business plans are more common, use a standard structure, and encourage you to go into detail in each section.
A lean business plan format is a shortened version of your more detailed business plan. It's helpful when modifying your plan for a specific audience, like investors or new hires. Also known as a one-page business plan, it includes only the most important, need-to-know information, such as: Company description; Suppliers; Key members of your team
Internal Business Plan: Internal business plans are used for internal purposes, to guide the day-to-day operations and decision-making of the business. It may not be as detailed as a traditional business plan, but still includes important information such as company mission, objectives, and key performance indicators.
Q2:How to write a business plan PDF? To write a business plan PDF, you must start by researching and making a plan. Step1: Look for a free business plan template PDF that fits your needs. Step 2: Next, create a clear outline of your business goals and strategies. Step 3: Use a startup business plan template PDF or a one-page business plan ...
simple small business plan template what do we do? how do we do it? who do we serve? define customer problem define solution provided pricing + billing strategies income streams customer reach strategy referral generation strategy top competitors our competitive advantage success milestone marker 1 success milestone marker 2 opportunities ...