Digital Marketing Agency Business Plan Upmetrics

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Web Spice ConsultancyBusinessPlanOriginal. Fearless. Independent.Prepared By10200 Bolsa Ave, Westminster, CA, 92683John Doesupport@upmetrics.co(650) 359-3153https://upmetrics.co

Table of ContentsExecutive Summary3Introduction3Mission Statement3Vision Statement4Keys to Success4Objectives4Financial Highlights53 Year profit forecast5Business Summary6Company Ownership6Startup Summary6StartupProducts and ServicesServices799SWOT Analysis11Market Analysis13Market Trends13Target Market13Competitive advantage14StrategyPricing StrategyPayment OptionsPublicity and Advertising Strategy15151516Sales Forecast16Sales Yearly17Detailed Sales Forecast17Management Plan19Personnel Plan19Average Salaries19Financial Plan21Important Assumptions21Brake-even Analysis21Projected Profit and Loss22Profit Yearly231 / 28

Gross Margin Yearly24Projected Cash Flow24Projected Balance Sheet26Business Ratios272 / 28

Executive SummaryBefore you think about how to start a Digital Marketing Agency, you mustcreate a detailed Digital Marketing Agency business plan. It will not only guideyou in the initial phases of your startup but will also help you later on.Read More IntroductionWeb Spice Consultancy is a U.S based and world-class digital marketingagency. We have been able to secure a standard and well – positioned officefacility in a central business district in Cape May – New Jersey.We are a social media marketing company that is set to compete in the highlycompetitive social media marketing industry not only in the United StatesRead More market but also in the global market because our clientele base will not beStart Writing here.upmetrics.coMission StatementOur mission is to provide professional and highly creative result-oriented digitalmarketing services and other related advisory and consulting services that willassist businesses, individuals, and non-profit organizations in promoting theirbrands and reaching out to a wide range of potential customers all over theglobe.Read More Start Writing here.2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy3 / 28

Vision StatementOur vision is to establish a standard and world-class digital marketingagencies whose services and brand will not only be accepted in the UnitedStates of America but also in other parts of the world.Read More Start Writing here.Keys to SuccessThe following keys to success will be observed for the digital marketingagency business plan in the United States:Top-quality digital marketing services.Building trust with clients.Having a good location in a commercially dense region.Read More Start Writing here.ObjectivesTo build a well – structured advertising agency that can compete in the highlycompetitive advertising agencies in the United StatesTo maintain professional and technical knowledge by attending educationalworkshops; reviewing professional publications, establishing personalnetworks, benchmarking state-of-the-art practices, and participating inRead More professional societies.Start Writing here.2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy4 / 28

Financial HighlightsThe company is seeking 2.5 million of financing to fund the acquisition ofVihaan Advertising and its initial operations. This funding will cover thepurchase of Vihaan Advertising, marketing, purchase of extra software, andhardware. Projected revenues for 2021 to 2023 are 200,000, 1.5 million, and 2.2 million, respectively. Our target is to be the most popular advertisementagency in Austin and to earn a profit margin of 100k per month by theendof ReadMorethe first year.Start Writing here.3 Year profit forecastSalesGross MarginNet .00kFinancial YearSalesGross MarginNet 1200100002020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy14.00k16.0 5 / 28

Business SummaryWeb Spice Consultancy is a U.S based and world-class marketing agency thatwill be located in Cape May – New Jersey. We have been able to secure astandard and well – positioned office facility in a central business district inCape May. We are a digital marketing agency that is set to compete in thehighly competitive digital marketing agencies in the United States.Read More Start Writing here.Company OwnershipWeb Spice Consultancy is founded by Rooney Wilberforce and his friend andbusiness partner for many years Festus Holloway. They both graduated fromIllinois Institute of Technology with BSc in Business Administration and theyhave a combined experience that revolves around market researching, sales,web designing, graphic designing, corporate branding, and advertising andbusiness management, etc.Read More upmetrics.coStart Writing here.Startup SummaryRooney Wilberforce and Festus Holloway will invest equally in the company.They will also secure a long-term business loan. The following table and chartshow the projected initial start-up costs of Web Spice Consultancy.Read More Start Writing here.2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy6 / 28

artup ExpensesLegal 1,000Stationery etc. 1,000Brochures 1,000Advertising 20,000Expensed Computer Equipment/Software 10,000Insurance 0Rent 1,500Research and Development 0Other 0TOTAL STARTUP EXPENSES 34,500Startup AssetsCash Required 155,500Other Current Assets 10,0002020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy7 / 28

STARTUPAMOUNTLong-term Assets 0TOTAL ASSETS 165,500Total Requirements 200,0002020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy8 / 28

Products and ServicesBefore starting a digital marketing agency, you must take many things intoconsideration such as you must consider what types of digital marketingservices will you be providing to your clients. Deciding your services isextremely important since it helps you plan other components of your businessso make sure to consider it before you think about how to start a digitalmarketing agency.Read More Web Spice Consultancy was established with the aim of maximizing profits inthe Digital Marketing Agencies industry. We want to compete favorably withthe leading digital marketing agencies in the United States of America and theworld which is why we have put in place a competent team that will ensure thatwe meet and even surpass our customers’ expectations.Read More We will work hard to ensure that Web Spice Consultancy does not just work forStart Writing here.Servicesupmetrics.coSearch engine optimization (SEO)Banner advertising Video advertising Rich media advertising Sponsorship advertising Classifieds/directories Lead generation 2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cyMobile messaging/email 9 / 28

Digital display advertising Mobile advertising Social media management 2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cyOther related digital marketing advisory andconsulting services10 / 28

SWOT AnalysisWeb Spice Consultancy engaged the services of a core professional in the areaof business consulting and structuring to assist our organization in building awell – structured digital marketing business that can favorably compete in thehighly competitive digital marketing agencies industry in the United States andthe world at large.Read More Part of what the team of business consultants did was to work with theStart Writing here.upmetrics.co2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy11 / 28

StrengthsWeaknessesOur core strength lies in the power of ourteam; our workforce. We have a team ofcreative, result-driven, and highlyproficient digital marketing experts, ateam with excellent qualifications andexperience in various niche areas in thedigital marketing agencies industry andother related industry.As a new digital marketing agency inCape May – New Jersey, it might takesome time for our organization to breakinto the market and gain acceptanceespecially from top profile clients in thealready saturated and highly competitivedigital marketing agencies industry; thatis perhaps our major weakness.Aside from the synergy that exists in ourcarefully selected digital marketingexperts, our services will be measurable,result-driven, and guided by bestpractices in the industry.Another weakness is that we may nothave the required cash to pump intopromoting our business especially viamainstream media (TV, Radio andNewspapers, etc) the way we would wantto.OpportunitiesS WO TNo doubt, the opportunities available inthe digital marketing agencies industry ismassive considering the number ofindividuals and corporate organizationswith an active presence on the internetand of course the pretty large numbers ofpeople who visit the internet / socialmedia platforms on a daily basis and ownmobile phones/smartphones and otherrelated gadgets.ThreatsJust like any other business, one of themajor threats that we are likely going toface is an economic downturn. It is a factthat an economic downturn affectspurchasing/spending power. Anotherthreat that may likely confront us is thearrival of a digital marketing agency oreven a social media marketing companyin the same location where our targetmarket exists and who may want to adoptthe same Business model as us.As a standard and world-class digitalmarketing agency, we are ready to takeadvantage of any opportunity that isavailable in the industry.2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy12 / 28

Market AnalysisThe most important component of an effective Digital Marketing Agencybusiness plan is its accurate market analysis. If you are starting on a smallerscale, you can do the market analysis yourself by taking help from this DigitalMarketing Agency business plan sample or other Digital Marketing Agencybusiness plans available online.Read More Market TrendsNo doubt, the Digital Marketing Agencies industry has benefited from the rapidswitch from traditional print advertising to digital advertisements. As moreconsumers generate website traffic through the use of smartphones andtablets, businesses have purchased digital advertising services to build brandawareness across multiple screens and platforms.Read More In the next five years, the industry will continue to grow, as more effectiveStart Writing here.upmetrics.coTarget MarketBefore starting our digital marketing agency, we are certain that there is a widerange of both corporate and individual clients who cannot successfully runtheir businesses without the services and support of a standard digitalmarketing agency; a company that can help them reach out to their targetmarket.Read More In view of that, we have created strategies that will enable us to reach out toStart Writing here.2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy13 / 28

Competitive advantageSurviving in the business world as a digital marketing agency requires morethan your expertise, knowing how to conduct your business but also how tonetwork with key people that matters; decision-makers that can decide who willget a contract or a business deal.We are quite aware that to be highly competitive in the digital marketingRead More agencies industry means that you are not only expected to be able to deliverStart Writing here.2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy14 / 28

StrategyAfter identifying the market demand, market trends, and the potentialcustomers of the startup, the next step is to define an effective strategy forattracting those clients. Like marketing analysis, sales strategy is also animportant component of a Digital Marketing Agency business startup andmust be properly planned before you think about starting your own digitalmarketing agency business.Read More We are mindful of the fact that there is stiffer competition in the social mediamarketing industry; hence we have been able to hire some of the bestmarketing experts to handle our sales and marketing.Our sales and marketing team will be recruited based on their vast experiencein the digital marketing agencies industry and they will be trained on aReadregularMore basis so as to be well equipped to meet their targets and the overall businessStart Writing here.Pricing Strategyupmetrics.coAt Web Spice Consultancy we will keep the prices of our services below theaverage market rate for all of our customers by keeping our overhead low andby collecting payment in advance from corporate organizations who would hireour services.In addition, we will also offer special discounted rates to all our customersatRead More regular intervals. We are aware that there are some one-off jobs or governmentStart Writing here.At Web Spice Consultancy, our payment policy will be all-inclusive because weare quite aware that different people prefer different payment options as itsuits them. Here are the payment options that we will make available to ourclients:Payment by via bank transferPayment via online bank transferRead More Payment OptionsStart Writing here.2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy15 / 28

Publicity and Advertising StrategyWe have been able to work with our in house brand and publicity consultants tohelp us map out publicity and advertising strategies that will help us walk ourway into the heart of our target market. We are set to become the number onechoice for both corporate clients and individual clients in the whole of theUnited States and beyond which is why we have made provisions for effectivepublicity and advertisement of our digital marketing agency.Read More Start Writing here.The following is the sales forecast for three years. We have no cost of sales, asall of our deliverables are electronic, and our labor costs are included in thePersonnel table.Read More Sales ForecastStart Writing here.2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy16 / 28

Sales YearlyInstitutions & OrganizationsBusiness OwnersOnline 3Financial YearInstitutions & Organizations Business OwnersOnline 5Year33254112451545125Detailed Sales ForecastDetailed sales forecast data is provided in below table:Sales ForecastYear 1Year 2Year 3Flyers & brochures1,887,0302,680,3202,588,240Billboards, banners & flags802,370815,430823,540Business & invitation cards539,320770,2301,002,310Digital advertising265,450322,390393,320TOTAL UNIT SALES3,494,1704,588,3704,807,410Flyers & brochures 140,00 150,00 160,00Billboards, banners & flags 600,00 800,00 1 000,00Business & invitation cards 700,00 800,00 900,00Digital advertising 650,00 750,00 850,00 2,149,800 2,784,000 3 383 200Unit SalesUnit PricesSalesFlyers & brochures2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy17 / 28

Sales ForecastYear 1Year 2Year 3Billboards, banners & flags 120,050 194,500 268,500Business & invitation cards 50,110 71,600 93,000Digital advertising 139,350 194,600 249,850Flyers & brochures 0,70 0,80 0,90Billboards, banners & flags 0,40 0,45 0,50Business & invitation cards 0,30 0,35 0,40Digital advertising 3,00 3,50 4,00Flyers & brochures 989,300 1,839,000 2,679,700Billboards, banners & flags 66,600 119,900 173,200Business & invitation cards 17,900 35,000 52,100Digital advertising 19,400 67,600 115,800Subtotal Direct Cost of Sales 1,294,100 1,699,400 2,104,700TOTAL SALESDirect Unit CostsDirect Cost of Sales2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy18 / 28

Management PlanThe management plan is also an important component of a Digital MarketingAgency business plan since it gives you an estimate of the staff required foryour startup as well as the costs incurred on their salaries. So, make sure toduly consider it before thinking about how to start a Digital Marketing Agency.The management plan of the Digital Marketing Agency business is as follows.Read More Rooney Wilberforce will be responsible for tactical elements of the marketingcampaign and Festus Holloway will manage the technical aspects of thecampaign.Web Spice Consultancy is a digital marketing agency that intends startingsmall in Cape May but hopes to grow big in order to compete favorablywithRead More leading digital marketing agencies in the industry both in the United States andStart Writing here.Personnel Planupmetrics.coAs a matter of fact, a profit-sharing arrangement will be made available to allour senior management staff and it will be based on their performance for aperiod of five years or more as agreed by the board of trustees of thecompany. In view of the above, we have decided to hire qualified andcompetent hands to occupy the following positions:Read More Chief Executive OfficerStart Writing here.Average SalariesPersonnel PlanYear 1Year 2Year 3Accountant 85 000 95 000 105 000Receptionist 45 000 50 000 55 000Creative Director 152 000 159 000 166 000Human Resources and Admin Manager 152 000 159 000 166 000Sales and Marketing Executive 152 000 159 000 166 0002020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy19 / 28

Personnel PlanYear 1Year 2Year 3Client Service Executive 145 000 152 000 159 000Content Creator / Online Traffic Generator 50 000 55 000 60 000Digital Marketing Specialist 42 000 45 000 48 000Web Designer cum Graphic Artist 42 000 45 000 48 000Total Salaries 304 000 318 000 332 0002020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy20 / 28

Financial PlanThe last component of a Digital Marketing Agency Business plan is an in-depthfinancial plan. The financial plan crafts a detailed map of all the expensesneeded for the startup and how these expenses will be met by the earnedprofits. It is recommended that you use our financial planning tool for guidingyou through all financial aspects needed to be considered for starting a DigitalMarketing Agency.Read More The company is seeking 2.5 million of financing to fund the acquisition ofVihaan Advertising and its initial operations. This funding will cover thepurchase of Vihaan Advertising, marketing, purchase of extra software, andhardware.Read More Start Writing here.Important Assumptionsupmetrics.coThe financial projections of the company are forecast on the basis of the following assumptions.These assumptions are quite conservative and are expected to show deviation but to a limited levelsuch that the company’s major financial strategy will not be affected.Year 1Year 2Year 3Plan Month123Current Interest Rate10,00%11,00%12,00%Long-term Interest Rate10,00%10,00%10,00%Tax Rate26,42%27,76%28,12%Other000Brake-even AnalysisMonthly Units Break-even5530Monthly Revenue Break-even 159 740Assumptions:Average Per-Unit Revenue 260,87Average Per-Unit Variable Cost 0,892020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy21 / 28

Estimated Monthly Fixed Cost 196 410Projected Profit and LossYear 1Year 2Year 3Sales 309 069 385 934 462 799Direct Cost of Sales 15 100 19 153 23 206Other 0 0 0TOTAL COST OF SALES 15 100 19 153 23 206Gross Margin 293 969 366 781 439 593Gross Margin %94,98%94,72%94,46%Payroll 138 036 162 898 187 760Sales and Marketing and Other Expenses 1 850 2 000 2 150Depreciation 2 070 2 070 2 070Leased Equipment 0 0 0Utilities 4 000 4 250 4 500Insurance 1 800 1 800 1 800Rent 6 500 7 000 7 500Payroll Taxes 34 510 40 726 46 942Other 0 0 0Total Operating Expenses 188 766 220 744 252 722Profit Before Interest and Taxes 105 205 146 040 186 875EBITDA 107 275 148 110 188 945Interest Expense 0 0 0Taxes Incurred 26 838 37 315 47 792Net Profit 78 367 108 725 139 083Net Profit/Sales30,00%39,32%48,64%Expenses2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy22 / 28

Profit YearlyProfit15.00k10.00k5.00k0Year1Year2Financial YearProfitYear110000Year212000Year3140002020 - 21 Bu sin ess P la n Web Spice Con su lt a n cyYear323 / 28

Gross Margin YearlyGross Margin15.00k10.00k5.00k0Year1Year2Year3Financial YearGross MarginYear110000Year212000Year314000Projected Cash FlowCash ReceivedYear 1Year 2Year 3Cash Sales 40 124 45 046 50 068Cash from Receivables 7 023 8 610 9 297SUBTOTAL CASH FROM OPERATIONS 47 143 53 651 59 359Sales Tax, VAT, HST/GST Received 0 0 0New Current Borrowing 0 0 0New Other Liabilities (interest-free) 0 0 0New Long-term Liabilities 0 0 0Sales of Other Current Assets 0 0 0Sales of Long-term Assets 0 0 0New Investment Received 0 0 0SUBTOTAL CASH RECEIVED 47 143 53 651 55 359Cash from OperationsAdditional Cash Received2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy24 / 28

Cash ReceivedYear 1Year 2Year 3Cash Spending 21 647 24 204 26 951Bill Payments 13 539 15 385 170 631SUBTOTAL SPENT ON OPERATIONS 35 296 39 549 43 582Sales Tax, VAT, HST/GST Paid Out 0 0 0Principal Repayment of Current Borrowing 0 0 0Other Liabilities Principal Repayment 0 0 0Long-term Liabilities Principal Repayment 0 0 0Purchase Other Current Assets 0 0 0Purchase Long-term Assets 0 0 0Dividends 0 0 0SUBTOTAL CASH SPENT 35 296 35 489 43 882Net Cash Flow 11 551 13 167 15 683Cash Balance 21 823 22 381 28 239Expenditures from OperationsAdditional Cash Spent2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy25 / 28

Projected Balance SheetAssetsYear 1Year 2Year 3Cash 184 666 218 525 252 384Accounts Receivable 12 613 14 493 16 373Inventory 2 980 3 450 3 920Other Current Assets 1 000 1 000 1 000TOTAL CURRENT ASSETS 201 259 237 468 273 677Long-term Assets 10 000 10 000 10 000Accumulated Depreciation 12 420 14 490 16 560TOTAL LONG-TERM ASSETS 980 610 240TOTAL ASSETS 198 839 232 978 267 117Accounts Payable 9 482 10 792 12 102Current Borrowing 0 0 0Other Current Liabilities 0 0 0SUBTOTAL CURRENT LIABILITIES 9 482 10 792 12 102Long-term Liabilities 0 0 0TOTAL LIABILITIES 9 482 10 792 12 102Paid-in Capital 30 000 30 000 30 000Retained Earnings 48 651 72 636 96 621Earnings 100 709 119 555 138 401TOTAL CAPITAL 189 360 222 190 255 020TOTAL LIABILITIES AND CAPITAL 198 839 232 978 267 117Net Worth 182 060 226 240 270 420Current AssetsLong-term AssetsCurrent Liabilities2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy26 / 28

Business RatiosYear 1Year 2Year 3Industry Profile4,35%30,82%63,29%4,00%Accounts ,79%9,80%Other Current Assets1,75%2,02%2,29%27,40%Total Current Assets138,53%150,99%163,45%54,60%Long-term Assets-9,47%-21,01%-32,55%58,40%TOTAL ASSETS100,00%100,00%100,00%100,00%Current Liabilities4,68%3,04%2,76%27,30%Long-term Liabilities0,00%0,00%0,00%25,80%Total Liabilities4,68%3,04%2,76%54,10%NET 100,00%100,00%Gross Margin94,18%93,85%93,52%0,00%Selling, General & Administrative Expenses74,29%71,83%69,37%65,20%Advertising Expenses2,06%1,11%0,28%1,40%Profit Before Interest and 1,63Quick25,428,8832,360,84Total Debt to Total Assets2,68%1,04%0,76%67,10%Pre-tax Return on Net Worth66,83%71,26%75,69%4,40%Pre-tax Return on Assets64,88%69,75%74,62%9,00%Net Profit Margin19,20%21,16%23,12%N.A.Return on Equity47,79%50,53%53,27%N.A.Accounts Receivable Turnover4,564,564,56N.A.Collection Days9299106N.A.Inventory Turnover19,722,5525,4N.A.Accounts Payable Turnover14,1714,6715,17N.A.Sales GrowthPercent of Total AssetsPercent of SalesMain RatiosAdditional RatiosActivity Ratios2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy27 / 28

Year 1Year 2Year 3Industry ProfilePayment Days272727N.A.Total Asset Turnover1,841,551,26N.A.Debt to Net Worth0-0,02-0,04N.A.Current Liab. to Liab.111N.A.Net Working Capital 120 943 140 664 160 385N.A.Interest Coverage000N.A.Assets to Sales0,450,480,51N.A.Current Debt/Total Assets4%3%2%N.A.Acid Test23,6627,0130,36N.A.Sales/Net Worth1,681,290,9N.A.Dividend Payout000N.A.Debt RatiosLiquidity RatiosAdditional Ratios2020 - 21 Bu sin ess P la n Web Spice Con su lt a n cy28 / 28

The most important component of an effective Digital Marketing Agency business plan is its accurate market analysis. If you are starting on a smaller scale, you can do the market analysis yourself by taking help from this Digital Marketing Agency business plan sample or other Digital Market

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