The business idea of this project is the organization of a Web Incubator – an enterprise in the field of web technology to provide quality services to small businesses, start-up entrepreneurs – website development, hosting services, domain registration, promotion and advertising services on the Internet, search for goods, services, partners, creation of a web incubator system.
1. External analysis
The market size according to our research of these firms amounted to € 16,541,655 in 2020 (not all firms have yet been reported in the report) and € 16,096,333 in 2019. The profit of the market was 373,821 € in 2020 (not all firms have been reported yet) and 4,316,794 € in 2019. There are 58 legal entities operating on the Estonian market with 173 employees in 2020 and 152 in 2019. In the web services market, clients are legal entities, start-up entrepreneurs, advertising partners. They buy these services in order to develop their business, promote their goods and services, and attract new potential buyers. Potential clients are legal entities in Estonia without company websites.
2. Internal analysis
A good website is an extension of a company’s business, a representative office or an online store that offers visitors the information, products and services they need when they request it, as well as fast and convenient customer service. When creating a website, the most important thing is to base it on its purpose – why the page was made and what problem-task it should solve. Every business has different goals. Some just want to include their contact information, others have a page as a marketing and sales channel. The simplest example of an automated sales channel is an online store. The product is under development. Creation of the concept Selling site. The most suitable for the client’s business.
3. The Swot Matrix
All employees of the firm can live in different cities. The studio’s income directly depends on its work. He is not limited by salary. The initial capital for opening a web studio is minimal: computers and registration costs.
Some clients are very conservative and traditionally prefer to work with a real, rather than a virtual, executing company. Studio income can be zero during the “quiet” period. The work of the company’s employees from different cities, and negotiations with customers from other regions, require additional costs for mobile communications. Strong competition. The local market is very limited and there are quite strong players in other “rich” markets. The main disadvantage of such a business is that it costs nothing, it cannot be sold. The only estimated cost is the studio site.
You can develop unlimitedly on the Internet. Studios do not depend on retail space, market saturation with competitors or the ability to pay customers in one city. If you wish, you can always create sites for clients from other cities, and if you know foreign languages and the specifics of the country and market, for clients from other countries. New clients are brought to the studio with good recommendations. People are more willing to go to a studio that an acquaintance, friend, or colleague has recommended to them than a little-known one. Possibility of studio development to such size, fame and income as the world’s top studios.
In a small regional market for website development, a strong player may appear at any time and monopolize the market. If the studio works with outsourcing, their unfair attitude to work can lead to the loss of time for website creation. Young guys, who usually work in a web studio, can just get up and leave the business at any time. Simply because they treat it as a hobby.
1. Financial Objectives
Sales and Profit
Sales volume – 14,700 € in 2021-2022
Profit – 2,000 € for the period 2021-2022
Marketing and advertising costs – 1200 €
Coworking and PR costs – 500 €
The costs of creating a brand of the company – 500 €
9 % market share of website sales in Ida-Viru County, Estonia
2. Non-financial Objectives
Brand Objectives Brand recognition of Web Incubator
Creation of logo, graphic design and visual 3D model of the company brand
Internet based objectives
Company website Creation
Creation of a corporate portal dedicated to small business, entrepreneurship, cybersecurity, Internet fraud
Creation of company pages in Facebook, Twitter, Instagram, Vimeo, Youtube with 100 subscribers each
3. Customer Objectives
Attracting new customers
6 clients without company websites
6 clients with sites in need of rework
4. Strategic Objectives
Potential clients – legal entities in Estonia without company websites Clients with outdated and patching sites
Creation of a product / service that best suits the client’s business
Concept of Selling site
Our business is not determined by the manufacturer, but by the consumer. This is determined not by the name of the firm and the charter, but by the need that the consumer satisfies when purchasing a product or service.
Marketing Mix Implementation
1. Brand and product management
My product is different from my competitors because Contains USP Creation of a product / service most suitable for the client’s business
Concept of Selling site
Discount opportunity Lifetime website warranty
Initial website promotion Proposal for the creation of a CRM system for integrated business process management
My product / service is:
Creation of websites for companies in Estonia, business card pages, portals.
Placement and promotion of sites on the Internet.
Creation of web-based business management systems. Online booking. CRM, HRM, HRS, POS, LMS, Worksuite, E-Commerce.
We will design your new website or update (redesign) an existing website. We will develop an exclusive design for your site. We will carry out the development of the site, we will enter all the necessary information provided by you and ensure uninterrupted operation.
Placing your site on the Internet. Hosting and VPS. Dedicated IP for the site when hosted on a VPS.
Domain registration for our clients.
A small staff of the studio reduces the cost of creating a website.
For the development of html-pages, only the NOTEBOOK is used, the html-code is written manually, which avoids unnecessary code, the pages are loaded faster.
A guarantee of correcting all errors and typos made through the fault of our studio for FREE!
Possibility of updating and redesigning an existing site.
Administration services for your site: constant support and updating, business correspondence with clients. We will be the permanent web representation of your company.
2. Pricing strategy
Services and prices
The price of the services is set in accordance with the prices of competitors and the expected benefit of the buyer.
Tariff plan Site cost, €
Portal 1000 – 2000
3. Channel management and retailing
Standard methods of promoting a web studio are not very suitable. Offline in this business works extremely poorly due to the fact that the target audience itself is focused on the Internet and is looking for partners there. The main efforts should be directed specifically to online.
The following directions are planned:
· Has its own website web1.info Listed in B2B network goodfirms.co/company/web-incubator
· Development of several corporate landing pages and their SEO-promotion.
· Launch of contextual advertising to the region of interest (Ida-Viru County).
· Launch of a corporate portal dedicated to entrepreneurship, small business, Internet business, website development and promotion, cybersecurity, Internet fraud.
· Active work with social networks. There is a Facebook page.
· Publications of experts on topical issues in online publications and blogs that specialize in website development and Internet marketing.
· Effective networking: participation in specialized conferences, webinars as a listener and speaker.
4. Integrated marketing communications
It is important to acquire the status of a specialist in your industry, then you can quickly reach the level when customers are already looking for your attention, and not vice versa. This is important in any area, especially on the Internet. And it is advisable to start from some position: for example, with several customers with whom you have worked before. Most of the work on Internet promotion will be done in-house, but you will need a budget for SEO marketing and launching contextual advertising.
A total of 1200 euros are planned. € 100 will be required monthly.
Advertising start-up costs may include creating a website, placing banners or advertisements on the Internet, posting advertisements or articles in the media, and mailing out advertising brochures or newsletters.
An important advertising tool for a web design studio is its own website. An important part of the website of a web design studio is a portfolio of completed works. In this section, you need not only place links to the sites made, but also ask customers to write their reviews about cooperation with you. Another common method of advertising is placing the name and contact details of the studio on the developed sites. It is also possible to place your banner on the websites of clients and partners for free on the basis of an agreement on mutual exchange of banners.
legal entities in Ida-Viru County without company websites (6 companies)
legal entities sites in need of redesign (6 firms)
Market size – 165,955 € per year (sales in Ida-Viru County)
Reaching 9 % market share in Ida-Viru County, Estonia
Gross sales (Sales volume) – 14,700 € in 2021-2022
Refunds and discounts – 100 €
Gross margin – 14600 €
Variable costs related to the marketing plan:
Advertising – 1200 €
Coworking, promotion, PR – 500 €
Staff (sales representative) – 400 €
Brand creation – 500 €
Market research – 100 €