Business plan of the company web technology

1. SUMMARY OF BUSINESS – PLAN

     1.1 Business idea

The business idea of ​​this project is the organization of an enterprise in the field of web technology to provide quality services to small businesses, aspiring entrepreneurs, and individuals (the production of corporate web resources, business cards, hosting services, domain registration, promotion and advertising on the Internet, business planning on the Internet, analysis of online business, web-based business consulting). Also, the company will be engaged in its own business activities on the Internet (revenues from advertising space on its own web resources, affiliate programs).

The company is scheduled to register in legal form an entrepreneur – an individual (FIE) in July 2007. To organize activities, the author of a business idea plans to rent premises for the provision of services, purchase equipment necessary to provide this type of services and make the necessary investments in web technologies (Internet resources).

This will allow to organize a new venture to provide services in the field of web technologies that are in demand in the market. In Estonia, and in Europe as a whole, there are all conditions for the provision of this type of service, and there is a growing demand for these services every year.

     1.2 Overview of the entrepreneur (planned enterprise)

The author of the business idea has an economic education in the specialty “Entrepreneurship” (“Ettevõtlus” Narva Kaubanduskool, 1998-2000), certificate from the Narva Business Center (Course “Ideest projektini”, 2002), certificate of courses “Klienditeenindaja” (KEA Erakool, 2001) . (CV application)

He worked as a sales representative at Interframe (advertising for business clients on the Internet and by phone, advertising production services for enterprises). Experience – 2 years.

The author of a business idea independently mastered the profession of a webmaster (creating dynamic web resources of medium complexity, travel, news sites, promotion on the Internet).

Author’s own portal and related online resources:

https://spain.sc

Planned address and location of the enterprise

Legal address:

Location:

As an office at the initial stage, it is planned to use a room in an apartment equipped with a computer, office equipment, a telephone and the Internet. The office space is 12 square meters.

Customers

Legal entities and individuals (firms, organizations, start-up entrepreneurs).

Partner commercials (Google, Yahoo, other large companies).

20% of clients are located in Estonia, 80% abroad (export of services).

Services

Production of web resources (portals, online stores, websites, business cards).

Hosting services (placement of sites on the Internet).

Domain registration.

Services promotion and advertising on the Internet.

Creation and active development of their own resources on the Internet (portals) as advertising sites, bringing a steady growing income.

View of the company

Many different options for services.

Versatile and skillful service.

Individual approach to the wishes of customers.

High quality services at an average price level.

Way of action

Flexible working hours (the possibility of orders 7 days a week).

Active communication with customers, the study of their demand.

Ease orders and service.

Flexible pricing system.

The possibility of discounts for regular customers.

Informing customers about new services and technologies.

Free after-sales advice. Technical support throughout the year.

Various methods of payment for services (cash, bank transfer, electronic payment systems).

Sophisticated marketing system.

Affiliate program to attract partners.

     1.3 Market

In the market of web services and web design, clients are legal entities and private individuals, start-up entrepreneurs, and advertiser partners. They buy these services in order to develop their business, promote their products and services, attract new customers.

Currently, in the field of web services and web design, there is a trend of steady, stable growth, both in Estonia and in Europe as a whole.

There are many market niches on which small entrepreneurs successfully operate. Improving the quality of Internet services and their availability also contributes to the growth of this field of activity.

As the market for Internet services grows, so does the cost of advertising on the Internet. The volume of the online advertising market in Europe in 2005 was 7.4 billion euros, a growth of 29% per year.

     1.4 Financing requirements

The financing scheme and planned sources are presented in table №1.

Table №1. Investment plan

№	Name	Total cost, ЕЕК	Sources of Own finds, ЕЕК	financing Starting help, ЕЕК
1.	Purchase of equipment	20000	—	20000
2.	Starting working capital	30000	30000	—
	TOTAL	50000 100 %	30000 60 %	20000 40 %

The total cost of the project will be 50,000 EEK.

The entrepreneur plans to invest 3000 EEK from his own funds or 60% of the total amount of financing. In addition, the entrepreneur contributes a computer with programs and developments to the business as a non-monetary contribution and its resources on the Internet for a total value of 50,000 EEK (Estimated at market value). Thus, self-financing, including non-cash contribution, will be 80,000 EEK or 80% of the total project cost.

For the acquisition of the remaining funds, the entrepreneur plans to apply to the Employment Department with a petition for receiving starting assistance in the amount of 20,000 EEK.

The need for working capital is planned to be financed at the expense of the entrepreneur’s own funds (30,000 EEK) and sales revenues.

     1.5 Tactical and strategic objectives

Tactical targets are:

1) Finding a source of funding for the project in the amount of 20,000 EEK.

2) Registration of the company.

3) Purchase of equipment, software, installation and adjustment of their work.

4) Conclusion of contracts with suppliers and customers.

5) Opening of the enterprise.

Strategic goals are:

1) Organization and creation of a stable enterprise.

2) Achievement of the net sales of services in the amount of EEK 100,000 per year in 2007–2008.

3) Making a profit of 20,000 EEK for the period 2007-2008.

4) Creation of another workplace in 2008

     1.6 Estimated Results

For the first year of operation (July 2007 – July 2008) it is planned to achieve the following results:

1) The net sales of services – 100,000 crowns.

2) Profit – 20,000 crowns.

3) Investments in business – 23000 EEK.

4) 1 new job will be created with an average salary of 6,000 EEK per month in July 2007 with a subsequent increase to 2 jobs with an average salary of 5,000 EEK per month by the end of 2007. For the first year of activity, a salary of 41,000 EEK will be paid.

5) A new venture will be created in the field of web services and web design, providing services in demand on the market.

6) As taxes, the company will pay 3960 EEK on social tax from an individual in the first year of activity and 86460 EEK on social tax and income tax from an individual from 2007 to 2010.

Table No. 2. Cash Flow Forecasts for 2006 – 2009

DESCRIPTION	June	July	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Total 2006-2007	2007-2008	2008-2009
1.0 Cash at the beginning of the period	0	6000	6500	7010	5010	7410	9820	12720	12020	16330	20030	25730	0	20440	37440
2.0 INCOME	32000	3000	4000	5000	6000	7000	8000	9000	10000	11000	12000	13000	120000	200000	300000
Revenues from the sale of services	2000	3000	4000	5000	6000	7000	8000	9000	10000	11000	12000	13000	90000	200000	300000
Starting help	20000												20000
Own funds	10000												10000
3.0 COSTS	26000	2500	3490	7000	3600	4590	5100	9700	5690	7300	6300	18290	98560	183000	285500
Materials	500			500			500			1000			2500	5000	7000
Salary		2000	2000	3000	3000	3000	4000	4000	4000	5000	5000	6000	41000	100000	150000
Taxes of entrepreneur – individual			990			990			990			990	3960	33000	49500
Electricity, telephone, internet	300	300	300	300	300	300	300	300	300	600	600	600	4500	6000	9000
Office expenses	100	100	100	100	100	100	100	200	200	200	200	300	1700	5000	10000
Marketing expenses		100	100	100	200	200	200	300	300	500	500	500	3000	6000	10000
Founding expenses	100												100
Equipment	20000												20000	10000	20000
Web Technology Investments	5000			3000				5000				10000	23000	20000	30000
4.0 Cash balance at the end of the period	6000	6500	7010	5010	7410	9820	12720	12020	16330	20030	25730	20440	20440	37440	51940