Infotext Strategy Letter

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Newsletter Publishing Business Plan

Strategy and Implementation Summary

The Infotext Strategy Letter will focus on three geographical markets - the United States, Europe, and Latin America; and in limited product segments - personal computers, software, networks, telecommunications, personal organizers, and technology integration products.

The target subscriber is usually a manager in a larger corporation, and occasionally an owner or president of a medium-sized corporation in a high-growth period.

5.1 Sales Strategy

The sales forecast monthly summary is included in the appendix. The annual sales projections are included here. Subscribers, renewals, and cancellations, as well as sales units, are detailed in the General Assumptions table in the Financial Chapter.

For purposes of planning, we assume  that a cancellation costs $300 on average. Cancellations will come at various times during the year, but on average a cancellation in the third month is a good guess.

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Newsletter subscriptions $151,206 $211,720 $296,250 $414,750 $580,650
Cancellations ($1,800) ($2,700) ($4,800) ($8,100) ($12,300)
Total Sales $149,406 $209,020 $291,450 $406,650 $568,350
Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5
Outside editing $7,959 $0 $0 $0 $0
Outside Production $7,959 $0 $0 $0 $0
Physical Production $11,938 $13,000 $14,000 $15,000 $17,000
Other $9,700 $10,000 $10,000 $10,000 $10,000
Subtotal Direct Cost of Sales $37,555 $23,000 $24,000 $25,000 $27,000

5.2 Milestones

Our detailed milestones are shown in the following table and chart. The related budgets are included with the expenses shown in the projected Profit and Loss statement, which is in the financial analysis that comes in Chapter 7 of this plan; or in the direct cost of sales portion of the sales forecast, for outside vendors.

Milestones
Milestone Start Date End Date Budget Manager Department
Business plan 6/1/2002 7/19/2002 $0 Hattusa M Devpt
Hiring main manager 7/19/2002 8/31/2002 $1,000 Hattusa M Devpt
Initial layout design 9/1/2002 9/30/2002 $3,000 TBD Newsletter
Website prototype 9/1/2002 11/15/2002 $10,000 TBD Newsletter
Coverage plan, first year 10/1/2002 12/15/2002 $0 TBD Newsletter
Initial mailing 11/15/2002 12/15/2002 $5,000 Arcadia F Marketing
Website launch 11/15/2002 12/15/2002 $7,500 TBD Newsletter
Newsletter launch 12/31/2002 1/10/2003 $7,500 Arcadia F Marketing
Initial marketing 1/10/2003 3/31/2003 $10,000 Arcadia F Marketing
Initial content, first issue 10/1/2002 11/31/2002 $0 TBD Newsletter
Totals $44,000