- Country: India
- Industry: Internet, eBusiness
- Stage: Expansion/Growth
- Years in operations: 13, Employees: 3
- Investment size: $175,000 / min. $175,000
- ROI: 30% in 1 years
- Type of investment: Equity
The purpose of this business plan is to raise USD 175,000 (INR Rs 1 crore) for the expansion of a website hosting company.
We are aiming to raise Rs. 1 crore for the expansion of a website hosting company while showcasing the expected financial performance and operations over the next three years. We are a based company that provides domain names, web hosting and e-Mail solutions to customers on a nationwide basis.
The Company's owner has more than 20 years of experience in the information technology industry and has been successfully running the business for the last 13 years since its inception in 2000.
The Company is now seeking finance to expand into:
• Email Solution that synchronize with all smart phones and other devices
• Dedicated Servers
• VPS (virtual Private Server)
• Cloud Servers
• E Commerce website
• CMS Dynamic website
• Email and Newsletter Service for corporates only
Marketing campaigns will be implemented to effectively target individuals and businesses within the target market.
From this segment of the business, the Company will generate monthly and yearly recurring revenues. It will also continue to generate secondary streams of revenue from the sale of domain names (as a third party vendor) as well as from renewal of contracts from previous years. The further section will delve into the details of services offering.
The Company expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
Year / Expected Sales (in Rs)
Expect growth in revenue about 25% to 35% post all the expenses.
One of the ways that web hosting companies remain competitive is by providing superior customer service to its client base along with reasonable pricing. As web hosting is a commoditized industry, it is imperative that the company offers 100% support for its customers. Also, having already run the company profitability with the philosophy of maximum service at least cost, the Company will continue this practice.
Rationale for the deal
With the expansion, the company will have state technology to handle requests for dedicated web servers, email and newsletter transmissions to corporates, VPS services, Cloud services, support e-commerce transactions and manage dynamic CMS and provide email solutions that support smart phones, Blackberry, Android devices and others. The new business will generate recurring revenues (billed on monthly, quarterly, or yearly basis) for rendering these services to clients.
In addition to web hosting services, the business will continue with its existing business to provide customers with the ability to and other ancillary services that compliment the Company’s primary revenue center.
Use of financing
The Company requires Rs.10,000,000 (Rs 1 Crore) of funds. With the acquired funds, it intends to procure servers, software licenses and equipment, set up infrastructure, improve the existing facilities, hire technical professionals, and invest in advertising and marketing.
Opportunity for the investor
We are seeking to raise Rs 1 crore through investor on a profit sharing basis.
You can find the Executive Summary of our Expansion project attached above.
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