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The Website Marketing Group is a Sydney-based award winning, full service web development<br />
and digital marketing agency. We create, design, promote and maintain web solutions for<br />
Australia’s top brands.<br />
TWMG is now a brand name that is recognised as high quality and prestigious and is attracting<br />
larger profitable clients throughout Australia and Asia such as CSR, Caroma, B&D Doors, Dulux,<br />
Jeld-Wen, CRC, Chamberlain and many large government departments.<br />
Everything we do is underpinned by cloud-based proprietary software tools and systems. We use<br />
sophisticated analysis, intelligent interpretation, insight and proven strategy to ensure our clients<br />
are a step ahead of their competition. We grow targeted traffic via SEO, generate conversions,<br />
and increase profits, results and ROI. The Company and the Group continues to grow from<br />
strength to strength over the past 6 years we are the major sponsors of ad:tech Australia. We<br />
build and promote the http://www.adtechaustralia.com/ sites throughout the Asia Pacific region so<br />
the TWMG brand is well known in the marketing manager circles.<br />
The head-office in Sydney has 11 experts and a production office of 10 experienced<br />
programmers in our Indonesia office since 2006. We also have 2 copywriters in the Philippines<br />
and a graphic designer in Tokyo our Sydney office lease after 5 years is now up.<br />
We are an established profitable brand with a proven business model that is scalable and has<br />
enviable client base which can be easily bolted onto a larger agency and the processes would<br />
enable The Website Marketing Group to open up tomorrow in any APAC market successfully.
Contents<br />
1. Executive Summary<br />
- Context and Scope<br />
- Vision and Strategy Statement<br />
- Purpose<br />
2. Situation Analysis<br />
- Customer Analysis<br />
- Competitor Analysis<br />
- Financial Analysis<br />
- Profit and Loss Statement<br />
3. Marketing Strategy<br />
- Product<br />
- Place<br />
- Price<br />
4. Forecast<br />
- Promotion<br />
5. Resources<br />
6. Conclusion<br />
7. TWMG Clients
Executive Summary<br />
Context and Scope<br />
The original founder, Michael Doyle, has decided to sell<br />
the business as one of his elderly parents in the UK is not<br />
well and he wants to step back from TWMG for a bit and<br />
also focus on another product he has built (Top4).<br />
However, he would remain with TWMG if it was with a<br />
group further to discussion and terms.<br />
The Website Marketing Group (TWMG) is a successful<br />
Sydney based company, that has been in operation since<br />
2008.<br />
The managing director and management team are<br />
experienced in the online industry and have all contributed<br />
into successfully creating the business based on their<br />
Innovative systems and processes.<br />
Michael Doyle<br />
Managing Director<br />
https://au.linkedin.<br />
com/in/michaelcdoyle
Executive Summary<br />
Vision<br />
To be recognised as the leading provider of innovative web based communication<br />
solutions to tier one companies and mid sized high growth businesses across all<br />
industries.<br />
Strategy statement<br />
Capitalise in the current niche position and grow into the web communications<br />
consultancy of choice for tier one companies and mid sized high growth businesses by:<br />
● Marketing existing products and services to customers<br />
● Building residual income opportunities with complimentary products and services<br />
● Fostering continual innovation in web portal design, data management and e-<br />
commerce<br />
● Refining the low cost portal development and service model
Executive Summary<br />
Purpose<br />
The managing director aims to diversify his assets by selling the TWMG<br />
business.<br />
This document is the business plan for The Website Marketing Group.<br />
It was prepared to meet the following objectives:<br />
●<br />
●<br />
●<br />
To present TWMG's current structure and position in the industry<br />
To outline capital requirements and buy in options for potential investors / purchasers<br />
To show the company's current position financially and across the industry
Customer Analysis<br />
Objective<br />
• Understand the structure and size of the web portal market in order to appropriately position TWMG<br />
• Identify the target segments within the web portal market<br />
Primarily TWMG's customers are small, medium and large businesses generating $1 million + rev. p.a and<br />
many businesses that are on the ASX such as CSR, B&D Doors, Caroma Dorf – GWA and Jeld-Wen CSR ,<br />
Chamberlain USA .<br />
Our target audience are the directors, marketing managers and digital managers of these organisations.<br />
They have an understanding for the need for an online strategy and are able to make decisions for the<br />
organization<br />
Growth and increased margins will come from engaging medium sized companies in the $1million - $50<br />
million revenue bracket both directly and indirectly through marketing and advertising agencies.<br />
These companies generally have anywhere between 10-200 employees and don't have an in-house digital<br />
web department.<br />
TWMG’s current customer base and inquiries come from small , large and government departments with a<br />
focus on mid to large business, not for profits and government departments.
Competitor Analysis<br />
Objective<br />
Understand the “competitor threat” and the likely reaction of competitors to TWMG's market growth in the<br />
online industry. Also understanding the nature of the industry by frequently reviewing current competitors and<br />
their products and services.<br />
There are approximately 250 marketing agencies situated in Melbourne and Sydney. There is an opportunity<br />
to create web development supply relationships with the small to medium sized agencies for the Top 2000<br />
public and private companies and government organisations.<br />
There are approximately 40 Sydney based digital marketing agencies. The size of these agencies ranges<br />
from large (10% of the industry with over 35 staff), medium (30% of the industry with 10-25 staff) and small<br />
(60% of the industry with 10 or less staff).<br />
TWMG's advantage is retaining good design resources, scaling output for large jobs quickly and having an<br />
office that clients can visit.<br />
TWMG is now a brand name that is recognised as high quality and prestigious and is now attracting larger<br />
clients such as CSR, Caroma, B&D Doors, Dulux. Jeld-Wen, CRC.
Financial Analysis<br />
Current Financial Standing<br />
• The business receives over 400+new inquiries per year<br />
• Outstanding accounts receivable for work in production is $280,000<br />
• Accounts payable is $0. All payments are up to date and the company has no debtors<br />
• 1600 plus Clients have used the services of TWMG and are a good source of referrals<br />
and repeat business<br />
• There are currently 36 jobs in production
Financial Analysis<br />
Financial Impact and Requirements<br />
TWMG’s objective is to rapidly grow the business over the next three years (see Forecast)<br />
To achieve these objectives, TWMG requires additional capital based on one buy in<br />
option;<br />
●<br />
Purchase TWMG in total for $TBD<br />
This creates the opportunity for an Investor to contribute $TBD for which they will receive a<br />
TBD% stake in TWMG.<br />
Risk is assessed as very low as TWMG is already a well established company with<br />
recurring revenue and clients.
Financial Analysis<br />
TWMG Profit and Loss Statement<br />
2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15<br />
Revenue 504 640 775 838 945 1037 1150<br />
Total Operating Costs 254 307 362 425 458 513 578<br />
Gross Profit 250 332 414 463 487 524 572<br />
Sales, General & Admin 149 210 230 254 263 278 298<br />
Net Profit (EBIT) 101 122 184 209 224 246 274<br />
Financial Year ($ '000)
Marketing Strategy<br />
Objective<br />
Capitalise in the current niche position and grow into the web communications consultancy of<br />
choice by:<br />
●<br />
●<br />
●<br />
●<br />
Marketing existing products and services to customers<br />
Building residual income opportunities with complimentary products and services<br />
Fostering continual innovation in web portal design, data management and e-commerce<br />
Refining the low cost portal development and service model with the establishment of<br />
our offshore office in Indonesia which we did 2 years ago.
Marketing Strategy<br />
Product<br />
TWMG provides complete web development and digital marketing services. We create, design,<br />
promote and maintain these web solutions.<br />
Our services include:<br />
- Website Development<br />
- Software Development<br />
- Smartphone App Development<br />
- Website & Email Hosting<br />
- Search Engine Optimisation<br />
- Social Media Strategies<br />
- Email Marketing<br />
- Branding & Logo Design<br />
Everything we do is underpinned by proprietary software tools and systems. We use<br />
sophisticated analysis, intelligent interpretation, insight and proven strategy to ensure our<br />
clients are a step ahead of their competition. We grow targeted traffic, generate conversions,<br />
and increase profits, results and ROI.
Marketing Strategy<br />
Place<br />
TWMG primarily services the entire Sydney region. Our services are available nationwide<br />
and we have worked with organisations interstate and in the greater NSW regions. TWMG<br />
has the infrastructure and processes to expand to neighbouring countries in the Asia<br />
Pacific region.<br />
Price<br />
TWMG charges at an hourly rate of $100 per hour for SME's. For larger clients TWMG<br />
charges $130 - $150 per hour.<br />
The average order value is between $10,000 - $35,000 + as TWMG's custom built<br />
websites begin at $10,000.
Forecast<br />
2015 – 2018<br />
TWMG’s objective is to grow revenue by an average of 30% per annum has been achieved.<br />
This target will be met by taking on sales, marketing and design talent in conjunction with the<br />
execution of the business and marketing strategy.<br />
The company has grown its revenue base from $504k in 2008 to $1.15M in April 2015.<br />
Earnings for financial year ending June 2014 is $1M.<br />
All sales have been done by the current MD and the business can be easily scaled up with a<br />
sales team<br />
Revenue and growth forecast is based on:<br />
●<br />
●<br />
●<br />
An increase by 30% per annum of current work inquiries with a 25% conversion to order<br />
rate<br />
TWMG receives over 40 inbound inquiries per month<br />
Maintaining a base cost of sales of minimum $100/hour to $150/hour
Forecast<br />
TWMG is growing its mid sized customer base via the increase in web based inquiries it is<br />
receiving.<br />
Transitioning its core business from small to mid sized companies will increase gross margins<br />
by 7% and decrease percentage of operational expenses per project.<br />
TWMG currently has a 25% conversion from lead to sale rate.<br />
This conversion rate couple with work being charged between $100 - $150 per hour will<br />
generate a 35% profit margin growth.
Resources<br />
TWMG currently employs 2 full time employees and 9 contractors in Sydney.<br />
The current employees of TWMG are satisfied with the work environment at TWMG along with<br />
the founder and would stay on with new ownership or management changes.<br />
TWMG has also opened an offshore office in Indonesia with 7 programmers.<br />
TWMG also has 10 years worth of code from over 1,600 projects. This enables TWMG to<br />
increase profits by cutting costs and increasing project turnaround time.
Proprietary Tools<br />
Quote Tool
Proprietary Tools<br />
Sales Tools
Conclusion<br />
TWMG has grown into a highly successful web development organisation. It has made its<br />
presence in the industry and has been established as a high quality web development<br />
company. This has been achieved through the continuous output of excellent work for some<br />
of Australia's largest companies across all industries.<br />
TWMG also has other projects in work other than web development. The main project is a<br />
business directory called Top 4 (not included in this sale).<br />
TWMG has also recently taken on board a dedicated salesperson with experience in<br />
outbound sales and lead to sale conversion. TWMG predicts this move will allow the<br />
company to reach a new level of prospective clients.
TWMG Clients
TWMG Clients
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