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Web Design Business Plan

Ibrio Incorporated

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Strategy and Implementation Summary

Ibrio Inc. will initially focus all marketing and sales efforts toward the Central Pennsylvania area, this includes Harrisburg, Lebanon, Lancaster, and York counties.

We will market ourselves as an Internet and Web services organization devoted to offering high-end services to small businesses exclusively. Our target customer will be the owners of any small or home-based company who are looking to implement their business into the Web.

5.1 Competitive Edge

We have a valuable competitive edge over our local competitors based on the fact that we have streamlined all our services into the small business market. Through setting up several strategic partnerships with various Internet and Web-related companies, we are able to offer our clients an affordable and efficient proprietary Web package that will meet all their related needs.

Ibrio Inc. also has as its lead development manager, Brandon Andrews, a main principal in the company. Brandon Andrews has four years of commercial Web development experience and has been recognized as a leader and innovator in the graphic design and layout areas of website development.

5.2 Marketing Strategy

Successful marketing of Web services to small business owners depends on how you approach and follow-up every potential client. It is very important to deliver our marketing pitch in a clear, no non-sense method. Details of the Internet and Web are still relatively unknown by many small business owners, giving it the tendency to confuse and intimidate easily.

5.2.1 Marketing Programs

The following is a summary of our marketing programs from the Milestones table:

We will begin our marketing by acquiring memberships from the following organizations (October 2-9):

  • Lebanon Chamber of Commerce.
  • Harrisburg Chamber of Commerce.
  • Hershey Partnership.

We plan on doing a large scale marketing project during this month including (March 5 - April 5, 2001):

  • Radio advertising (WHP 580).
  • Ad placement in local trade publications (The Central Penn Business Journal).
  • Billboard Ads to promote wide-spread name recognition.

5.2.2 Pricing Strategy

For most small business owners, cost, both residual and one-time are huge influences on the decisions they make regarding everyday operations of their company. Even though we offer 100% customized services and our pricing is based on an hourly fee, to make it easier and less confusing for the clients, Ibrio has established a packaged pricing system.

  • Budget Domain Website Package ($585.00): For simple, information based websites. Popular with companies who just need to gain an Internet presence.

  • Mid-Level Website Package ($945.00): Information based websites with a large amount of content. Popular with companies that have a large services/products list and/or want to implement more of their business into the Web.

  • Catalog Website Package ($1,440.00): Usually reserved for product-oriented websites that are e-commerce enabled. Popular with companies that have a desire to market heavily on the Internet or sell their products/services directly from the Web.

  • Website Hosting (from $15.00 to $45.00 per month): Depending on the type and size of the website, the price for hosting can vary greatly. The average cost of hosting for most clients is $25 per month.

  • Website Maintenance ($45.00 per hour): We charge a set fee of $45.00 per hour billed in 10 minute increments. If a client feels as though they will need their website updated or maintained on a regular basis, packages are available at a discount rate.

5.2.3 Promotion Strategy

Our target client is part of a very specific demographic, for this reason, we market and promote our services in a direct and specifically targeted manner.

Print Ads:

  • Currently we advertise in eight separate area yellow page directories. All our ads appear under either the Internet Services or Website Design headings.
  • Ibrio Inc. also has an ad listing in a national business directory under the heading of Web Developers.
  • In the near future we will feature ads in several area business publications such as The Central Penn Business Journal and the Who's Who in Dauphin County.

Direct Mail and Fax:

  • We have sent out targeted bulk mail flyers promoting special offerings by our company.
  • We have participated in targeted broadcast fax promotions to small businesses in our area.
  • In the near future we will begin a new aggressive, ongoing bulk mail campaign to promote our Web development and hosting services.

Mass Media Ads:

  • We will begin advertising on a broader scale within the next six months. Radio spots will be continuously played during local area talk shows and news programs, this placement is intended to reach the highest percentage of our target client possible.
  • Billboard ad placement will be the second mass media marketing campaign we will implement into our marketing efforts. Billboard ads will be intended as 'name recognition' advertising.

Educational Seminars:

  • Ibrio Inc. has been invited to speak to business owners and managers at several Internet and Web-related educational seminars on a variety of topic. In the near future, we will promote our services through these seminars.

Local Area Commerce Groups:

  • To promote our services and our name as a participant in the Web services industry, we will be joining many of the local area Chamber of Commerce groups and various other strategic partnership clubs.

5.3 Sales Strategy

Our clients are small business owners, most are very protective of their company, and almost all of them are salesmen themselves. We sell value, service, and quality when we talk to business owners. We need to convince them that they can look past all of the hype surrounding the Internet and still see why having a website is worth the money spent.

We currently utilize a database system specifically targeted toward our desired demographic to establish our first contact with every potential client. It has proven a successful method for soliciting new business directly due to the method in which we approach the first call. The salesman always requests to speak to the business owner, asking for him by his first name only, and when asked who is calling, responds by providing simply his first name as well. Once on the phone with the business owner, there is absolutely no script and the salesman clearly identifies himself and asks the business owner if he has ever considered having a website developed for his company, no matter what the response, a brief conversation will always pursue, sometimes leading to an appointment, and sometimes to a follow-up call.

Because we have full confidence in our services, and recognize that business owners are generally open to the idea of utilizing the Internet and most even consider it a necessity, we take a very low-pressure, non-abrasive approach to direct selling. We will normally present the information about our company, portfolio, strengths, and pricing to the client and let them make the decision on their own. This method has proven successful provided that we keep our follow-up calls consistent and regular until we receive either a yes or no answer.

5.3.1 Sales Forecast

The following table and chart summarize our forecast sales.  We expect the first month of operations (October) to be spent training the new developer and new salesman. November will be our first month of operation and we expect to grow steadily in the following months.

Website development sales will be the largest portion of our revenue with result-based marketing following. Maintenance and hosting revenue will be built up slowly but are the residual base we will stand on in the future.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Website Development $117,000 $350,000 $750,000
Result-based Marketing $19,250 $81,900 $199,500
Maintenance $14,230 $43,000 $130,000
Hosting $14,040 $40,000 $115,000
Total Sales $164,520 $514,900 $1,194,500
Direct Cost of Sales Year 1 Year 2 Year 3
Website Development $0 $0 $0
Result-based Marketing $9,900 $35,000 $102,600
Maintenance $0 $0 $0
Hosting $5,650 $15,000 $25,000
Subtotal Direct Cost of Sales $15,550 $50,000 $127,600

5.3.2 Sales Programs

The following is a summary of the our sales programs from the Milestones table:

October 9-16: Hiring first salesman. We will be training this employee this month to make telephone calls to business owners in the area and set appointments to meet with them and show them what we have to offer. Starting in mid-November he/she will begin meeting with clients alone.

October 23 - November 2: We will be updating our sales literature including creating brochures, and printing leaflets to be placed in our presentation folders.

February 12-26: Hiring second salesman. We will be training this salesman in the same fashion previously stated.

5.4 Strategic Alliances

Currently, we do not participate in any co-marketing or co-development efforts with outside companies. However, we have specific plans to establish several strategic partnership programs with area ISPs (Internet Service Providers) and computer consulting companies. These partnerships are intended to attract more sub-contracting work from potential competitors, in exchange for a commission to be paid for each lead and resulting new client.

5.5 Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table doesn't show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings every month to discuss the variance and course corrections.

Milestones
Milestone Start Date End Date Budget Manager Department
Incorporation 8/14/2000 8/28/2000 $500 Dave Admin
Acquire Start-up Financing 8/14/2000 10/1/2000 $0 Dave Admin
Accounting/Balance Sheet Setup 8/31/2000 8/31/2000 $300 Dave Admin
Acquire Chamber Memberships 10/2/2000 10/9/2000 $600 Dave Marketing
Staff Sales Position #1 10/9/2000 10/16/2000 $2,240 Dave HR
Staff Development Position #1 10/16/2000 10/23/2000 $3,200 Brandon HR
Upgrade Current Sales Literature 10/23/2000 11/6/2000 $300 Dave Sales
Acquire Dedicated Web Host Service 11/1/2000 11/8/2000 $770 Brandon Development
Staff Development Position #2 1/15/2001 2/1/2001 $3,200 Brandon HR
Staff Sales Position #2 2/12/2001 2/26/2001 $2,240 Dave HR
Acquire Large Scale Outside Marketing 3/5/2001 4/5/2001 $2,000 Dave Marketing
Staff Developer Postion #3 3/19/2001 4/2/2001 $3,200 Brandon HR
Other 1/1/2001 1/1/2001 $0 ABC Department
Totals $18,550
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Sales Forecast
Year 1 Year 2 Year 3
Sales
Website Development $117,000 $350,000 $750,000
Result-based Marketing $19,250 $81,900 $199,500
Maintenance $14,230 $43,000 $130,000
Hosting $14,040 $40,000 $115,000
Total Sales $164,520 $514,900 $1,194,500
Direct Cost of Sales Year 1 Year 2 Year 3
Website Development $0 $0 $0
Result-based Marketing $9,900 $35,000 $102,600
Maintenance $0 $0 $0
Hosting $5,650 $15,000 $25,000
Subtotal Direct Cost of Sales $15,550 $50,000 $127,600
Milestones
Milestone Start Date End Date Budget Manager Department
Incorporation 8/14/2000 8/28/2000 $500 Dave Admin
Acquire Start-up Financing 8/14/2000 10/1/2000 $0 Dave Admin
Accounting/Balance Sheet Setup 8/31/2000 8/31/2000 $300 Dave Admin
Acquire Chamber Memberships 10/2/2000 10/9/2000 $600 Dave Marketing
Staff Sales Position #1 10/9/2000 10/16/2000 $2,240 Dave HR
Staff Development Position #1 10/16/2000 10/23/2000 $3,200 Brandon HR
Upgrade Current Sales Literature 10/23/2000 11/6/2000 $300 Dave Sales
Acquire Dedicated Web Host Service 11/1/2000 11/8/2000 $770 Brandon Development
Staff Development Position #2 1/15/2001 2/1/2001 $3,200 Brandon HR
Staff Sales Position #2 2/12/2001 2/26/2001 $2,240 Dave HR
Acquire Large Scale Outside Marketing 3/5/2001 4/5/2001 $2,000 Dave Marketing
Staff Developer Postion #3 3/19/2001 4/2/2001 $3,200 Brandon HR
Other 1/1/2001 1/1/2001 $0 ABC Department
Totals $18,550