internet service provider business plan sample

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Internet Service Provider Business Plan

The internet service market in this internet world is tremendous. With a recurring revenue model and extensive target market, it truly offers a rewarding business opportunity.

Starting an Internet Service Provider (ISP) business requires substantial initial investments. However, with an actionable business plan, you can easily secure funds for the business and grow it to its full potential.

Need help writing a business plan for your ISP business? You’re at the right place. Our internet service provider business plan template will help you get started.

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• Fill in the blanks – Outline
• Financial Tables

How to Write An Internet Service Provider Business Plan?

Writing an internet service provider business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Describe what kind of internet service company you run and the name of it. You may specialize in one of the following Internet service businesses:

• Broadband ISP
• Wireless ISP
• Fiber optic ISP
• Satellite ISP
• Describe the legal structure of your ISP company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your internet service company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your internet service provider services from them. Point out how you have a competitive edge in the market.
• Regulatory Environment: List regulations and licensing requirements that may affect your internet services company, such as business registration, data protection, and privacy guidelines, content regulations, insurance, environmental regulations, state and federal regulations, etc.

Here are a few tips for writing the market analysis section of your internet service provider business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Broadband service
• DSL service
• Cable service
• Fiber optic service
• Satellite service
• Technical support: Outline the customer support services you will offer to your customers. This includes 24*7 support options, self-help resources, phone, email, and live chat solutions.
• Service Level Agreements (SLAs): Describe the service level guarantees you will offer your business customers. This will include uptime guarantees, response time for technical support, and compensation in case of service disruption.
• Value-added services: Mention if your internet service company offers any additional services. You may include services like digital phone services, security solutions, cloud storage, etc.

In short, this section of your internet service provider plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Pricing Strategy: Describe your pricing strategy—how you plan to price your internet services and stay competitive in the local market. You can mention any limited-time offers you plan on offering to attract new customers to your internet service.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with residential complexes and corporate houses, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on membership plans, value-added services, etc.

Overall, this section of your internet service provider business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your ISP business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your Internet business’s staffing requirements, including the number of technicians, test engineers, sales and marketing employees, and customer service staff needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your internet service business. Your operational processes may include offering internet connectivity, technical support, onboarding new clients, creating network infrastructure, billing, and training staff.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your internet service business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your internet service company, and describe their roles and responsibilities in successfully running the business.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

This section should describe the key personnel for your internet provider services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your internet service business’s assets, liabilities, and equity.
• Financing Needs: Calculate costs associated with starting an internet service business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the internet service industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your internet service provider business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample internet company business plan will provide an idea for writing a successful internet service provider plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our internet service provider business plan pdf .

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Frequently Asked Questions

Why do you need an internet service provider business plan.

A business plan is an essential tool for anyone looking to start or run a successful Internet service business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your ISP company.

How to get funding for your internet service provider business?

There are several ways to get funding for your internet service business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your internet service provider business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your internet service provider business plan and outline your vision as you have in your mind.

What is the easiest way to write your internet service provider business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any internet service provider business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How detailed should the financial projections be in my internet service provider business plan?

The level of detail of the financial projections of your internet service business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

Can a good internet service provider business plan help me secure funding?

Indeed. A well-crafted internet service provider business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Write an ISP Company Business Plan [Sample Template]

Are you about starting an internet service provider company? If YES, here is a complete sample ISP business plan template & feasibility report you can use FREE . Okay, so we have considered all the requirements for starting an internet service provider company. We also took it further by analyzing and drafting a sample internet service provider company marketing plan template backed up by actionable guerrilla marketing ideas for internet service provider companies. So let’s proceed to the business planning section.

Why Start an ISP Company?

If you are ICT inclined and you have the start – up capital and you are looking towards starting a business in the ICT industry, one of your best bet is to start an Internet Service Provider (ISP) company. There is indeed a huge global market for the services rendered by Internet Service Provider (ISP) companies.

All you need to do to attract client and maximize profits as a newbie in this industry is to ensure that your business is well – publicized, you reduce downtime to the barest minimum and your fees are affordable. To achieve all that is stated above, you should be ready to work hard and smart, hire dedicated and competent employees and above all, have a reliable server and pretty fast internet connection et al.

If you are truly serious about starting your own Internet Service Provider (ISP) company, then the best place to start is to draft a good business plan. The sample Internet Service Provider (ISP) company business plant template below will guide you on how to draft yours with little or no stress.

A Sample ISP Company Business Plan Template

1. industry overview.

Operators in the Internet service providers (ISPs) industry use wired infrastructure to provide clients with internet access and related services such as web hosting, web page designing and hardware or software consulting related to internet connectivity.

Aside from telecommunications companies, ISP companies may also lease out capacity on their networks to support the network infrastructure of other companies (i.e. backbone services). It is important to clearly state that wireless internet and VoIP services are not part of the Internet Services Providers (ISPs) industry.

This industry also includes businesses that act as intermediaries between ISPs, website servers and online content providers; these operators are known as internet backbone providers. It is an undisputable fact that the internet has rapidly developed a universal presence in almost all facets of daily life and business, profiting the Internet Service Providers (ISPs) industry.

In addition, current regulatory overhaul is expected to drive government-subsidized network expansion and increase the number of broadband connections in the united states, driving revenue growth for the Internet Service Providers (ISPs) industry. Going forward, ISPs companies will look towards benefiting from the increased internet traffic from both individual and corporate clients.

A close study of the industry shows that the demand for the Internet Service Providers (ISPs) industry grew substantially over the past five years due to high demand from companies hoping to expand their online activities and presence. This trend is expected to continue to grow. Most of the employees, management and business owners in industry have worked in complimentary information technology industries.

The Internet Service Providers (ISPs) industry is indeed a very large industry and pretty much active in all the parts of the world. Statistics has it that in the United States of America alone, there are about 1,014 registered and licensed Internet service providers (ISPs) companies scattered all across the United States, responsible for employing about 233,886 people.

The industry rakes in about $97 billion annually. The industry is projected to grow at the rate of 4.3 percent annually within 2011 and 2016. The companies with the lion shares of the available market in this industry are AT&T Inc., CenturyLink, Comcast Corporation, Time Warner Cable Inc. and Verizon Communications.

Basically, the Internet Service Providers (ISPs) industry offers only one product to her clients: internet access. Nevertheless, the industry has created reliable methods for delivering that product. In as much as each internet connection type has various speeds, variations, advantages and disadvantages associated with it, it is mostly useful to distinguish only between broadband and narrowband residential internet access. In addition to connecting consumers ( both residential and commercial ) to the World Wide Web.

Over and above, the Internet Service Providers (ISPs.) industry is still very much open to any aspiring entrepreneur who has the required start – up capital and technical expertise to start his or her own Internet Service Provider (ISP) company and of course make good money from the industry.

As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition in the industry.

2. Executive Summary

Josh Cain Technologies®, LLC is a U.S based and world class Internet Service Provider (ISP) company. We have been able to secure a standard and well – positioned office facility in a central business district in Columbus, one of the largest cities in Ohio.

We are an internet service provider (ISP) company that is set to compete in the highly competitive Internet Service Providers (ISPs) industry not only in the United States market, but also in the global market.

Josh Cain Technologies®, LLC will provide services such as wired broadband internet access, wired narrowband internet access, internet backbone and carrier services, hardware and software consulting, web hosting, dial up internet access, residential broadband services and business broadband services.

We will ensure that our internet connection is reliable, fast and affordable. Our workers are going to be selected from a pool of talented and highly creative IT experts in and around Columbus – Ohio and also from any part of the United States as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading Internet Service Provider (ISP) companies in the United States and throughout the globe. We have put plans in place to build a state of the art internet server in Columbus – Ohio. Our company will be well equipped and we will ensure that we follow the trend in the industry.

At Josh Cain Technologies®, LLC our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Josh Cain Technologies®, LLC is founded by Joshua Bridgestone and his friend and business partner for many years Cain McGregor. Josh and Cain are products of Silicon Valley and they have combine qualifications and experience in the ICT industry and business management et al that will help them build the business to favorable compete in the Internet Service Providers (ISPs) industry.

3. Our Products and Services

Josh Cain Technologies®, LLC is established with the aim of maximizing profits in the internet service providers (ISPs) industry. We want to compete favorably with leading internet service provider (ISPs) companies such as AT&T Inc., CenturyLink, Comcast Corporation, Time Warner Cable Inc. and Verizon Communications in the United States which is why we have but in place a competent team and equipment that will ensure that meet and even surpass our customers’ expectations.

We will work hard to ensure that Josh Cain Technologies®, LLC is not just accepted nationally in the United States of America, but also in other parts of the world. Our products and services are listed below;

• Providing wired broadband internet access
• Providing wired narrowband internet access
• Providing internet backbone and carrier services
• Hardware and software consulting
• Web hosting
• Dial up internet access
• Residential broadband services
• Business broadband services

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class internet service provider (ISPs) company whose services and brand will not only be accepted in the United States of America, but also in other parts of the world.
• Our mission is to provide highly reliable, secure and fast internet services and other related services that will assist businesses, individuals and non-profit organizations in connecting to the internet, promoting their brands and reaching out to a wide range of potential customers all over the globe via the internet.

We want to build an internet service provider (ISPs) company that can favorably compete with other leading brands in the internet service provider (ISPs) industry.

Our Business Structure

Josh Cain Technologies®, LLC is an internet service provider (ISPs) company that intend starting small in Columbus – Ohio, but hope to grow big in order to compete favorably with leading internet service provider (ISPs) companies such as AT&T Inc., CenturyLink, Comcast Corporation, Time Warner Cable Inc. and Verizon Communications et al in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Josh Cain Technologies®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• General Manager
• ICT Specialist
• Human Resources and Admin Manager
• Sales and Marketing Executive

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization.

General Manager:

• Serves as project manager of the organization; works directly with employees
• Responsible for designing concepts and contracts
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that ICT and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and ICT experts
• Ensures that the organization work in line with international best practices.

ICT Specialists

• Responsible for handling services such as wired broadband internet access, wired narrowband internet access, internet backbone and carrier services, hardware and software consulting, web hosting, dial up internet access, residential broadband services and business broadband services
• Liaises with clients to determine their requirement and budget
• Handles website hosting services
• Responsible for Optimizing Website Functionality for owners of existing websites
• Responsible for Search Engine Optimization Services and Code Writing Services

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Josh Cain Technologies®, LLC
• Serves as internal auditor for Josh Cain Technologies®, LLC
• Welcome clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the HR manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned by the human resources and admin manager.

6. SWOT Analysis

Because of our drive for excellence when it comes to running a standard and world – class internet service provider (ISP) company, we were able to engage some of the finest business consultants in the United States of America to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard and world – class internet service provider (ISP) company.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Columbus – Ohio and throughout the United States. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Josh Cain Technologies®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient ICT experts, a team with excellent qualifications and experience various niche areas in the internet service providers (ISPs) industry.

Aside from the synergy that exists in our carefully selected ICT experts, our fast, secured and highly reliable internet connection, we have state of the art internet server that will guarantee minimal downtime and our services will be guided by international best practices in the industry.

As a new internet service provider (ISP) company in Columbus – Ohio, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive internet service providers (ISPs) industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities available in the internet service providers (ISPs) industry is massive considering the number of individuals and corporate organizations whose businesses depends on the services of internet service provider (ISP) companies. As an internet service provider company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new internet service provider (ISP) company in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

It is obvious that as more big players move in to the internet service providers (ISPs) industry; it now becomes pretty important for smaller internet service provider (ISP) companies to have strong partnerships. So also, competitive pricing, niche specific approaches, and excellent service will all play a key role in this industry as smaller internet service provider (ISP) business continue to compete and grow.

Going forward, prices are likely to increase as internet service provider (ISP) companies lay differentiation and additional services on top of existing hosting plans. Another important trend in this industry is the degree to which individual website hosting providers are able to do so in an automated way that minimizes the need for human intervention.

The more automated this process is, the higher margins will be on individual accounts. As a consumer, it’s helpful to understand how efficient your potential host’s processes are in this respect – it will save you tremendous amounts of aggravation when an issue does occur.

Like every other IT related services, internet service provider (ISP) services are continually evolving. Technologies are changing and improving with rapid astonishment, and as a result the technological boundaries for internet services are being pushed as well to meet the ever-changing demand.

This creates opportunities for consumers: not just to search for the cheapest internet service provider, but to think about what kinds of business models they want to support and whether or not they need specific features in their packages.

Lastly, customers are also becoming savvier with respect to potential security issues connected with the cloud. As a result, internet service provider (ISP) companies are developing stronger communications around this issue in the form of copy, collateral, and training et al for their sales and marketing teams.

8. Our Target Market

Before starting our internet service provider (ISP) company, we are certain that there is a wide range of both corporate and individual clients who cannot successfully run their businesses without the services of internet service provider (ISP) companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that our internet service provider (ISP) company is well accepted in the market place.

Below is a list of the people and organizations that we have specifically market our products and services to;

• Website Designers and IT Specialists
• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Manufacturers and Distributors
• Real Estate Owners, Developers, and Contractors
• Research and Development Companies
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Celebrities, Politicians, Public Figures and Public Speakers
• Sport Organizations
• Religious Organizations
• Political Parties
• Television Stations
• Printing Press (Publishing Houses) and Authors
• Branding and Advertising agencies
• Entrepreneurs and Start – Ups

Our competitive advantage

Surviving in the business world as an internet service provider (ISP) company requires more than, your expertise, knowing how to deliver standard website hosting jobs but also how to network with key people that matters; decision makers that can decide who will get internet service provider (ISP) services contract.

Without a shadow of doubt, there are loads of big time investors, that have a stake in the internet service providers (ISPs) industry; but one thing is certain, there is room big enough to accommodate both the big internet service provider (ISP) companies and the small internet service provider (ISP) companies.

All smaller internet service provider (ISP) companies need to do to survive in the industry is to concentrate on providing internet connections cum services to small to medium scale businesses and individual clients.

We are quite aware that to be highly competitive in the internet service providers (ISPs) industry means that you are not only expected to be able to offer fast and highly reliable and pocket friendly internet connection, but you must be able to meet set targets. No one would want to continue to buy your products or hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient ICT experts, a team with excellent qualifications and experience various niche areas in the internet service providers (ISPs) industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups internet service provider (ISP) companies in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Josh Cain Technologies®, LLC is established with the aim of maximizing profits in the internet service providers (ISPs) industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Josh Cain Technologies®, LLC will generate income by offering the following ISP related services;

10. Sales Forecast

One thing is certain; there would always be corporate organization and individual who would need the services of internet service provider (ISP) companies.

We are well positioned to take on the available market in the internet service providers (ISPs) industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our internet service provider (ISP) company to enviable heights.

We have been able to critically examine the internet service providers (ISPs) market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Columbus – Ohio.

Below are the sales projections for Josh Cain Technologies®, LLC it is based on the location of our business and of course the wide range of our services and products we offer and target market;

• First Fiscal Year-: $240,000
• Second Fiscal Year-: $550,000
• Third Fiscal Year-: $950,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same ISP services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competitions in the internet service providers (ISPs) industry hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the internet service provider (ISPs) industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Josh Cain Technologies®, LLC.

Our corporate goal is to grow Josh Cain Technologies®, LLC to become one of the top 10 internet service provider (ISP) brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States of America but also in other parts of the world.

Josh Cain Technologies®, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our internet service provider (ISP) company by sending introductory letters alongside our brochure to individuals, website designers, corporate organizations, religious organizations and key stake holders in Columbus – Ohio.
• Promptness in bidding for internet service provider (ISP)contracts from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent and reliable internet connections cum services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in-house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our internet service provider (ISP) company.

Below are the platforms we intend to leverage on to promote and advertise Josh Cain Technologies®, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic locations all around Columbus – Ohio
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Josh Cain Technologies®, LLC and the services and products we offer
• List our internet service provider (ISP) company in local directories / yellow pages
• Advertise our internet service provider (ISP) company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Josh Cain Technologies®, LLC we will keep the prices of our internet connections and similar services and products below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations that would hire our services or purchase our products. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by Josh Cain Technologies®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Josh Cain Technologies®, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via Point of Sales Machines (POS Machines)
• Payment via mobile money platform
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our internet connections and other related services and products without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our ISP services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting an internet service provider (ISP) company; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Josh Cain Technologies®, LLC in the United States of America;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
• The total cost for hiring business consultant – $5,000.
• The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
• The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
• The total cost for leasing facility for the business – $150,000.
• The total cost for facility remodeling – $50,000
• Other start-up expenses including stationery, business cards and signage et al – $2000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for purchase of standard and world – class reliable internet server- $100,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Projectors, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $15,000
• Miscellaneous – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand ( 350,000 ) U.S. dollars to successfully set – up a medium scale but standard internet service provider (ISP) company firm in the United States of America.

Generating Funds / Startup Capital for Josh Cain Technologies®, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as internet service provider (ISP) company. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Josh Cain Technologies®, LLC is a private – partnership business that is solely owned and financed by Joshua Bridgestone and his friend and business partner for many years Cain McGregor. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

Since they are the sole financier of the business, they have decided to adopt the following means to generate start – up capital for the business;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Josh Cain Technologies®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our internet connections and other related products and services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Josh Cain Technologies®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our company: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Building a standard and world – class internet server: In Progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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ISP Business Plan

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Web Solutions, Inc.

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Web Solutions, Inc. (Web Solutions) is an Internet Service Provider (ISP) based in Phoenix, Arizona. The company offers the following services to its customers:

• Dialup and dedicated Internet access (up to 64 Kbps).
• High bandwidth Internet access (128 Kbps).
• Integrated Services Digital Network (ISDN).
• Digital Subscriber Line (DSL).
• Website and virtual domain hosting.
• Server co-location.
• Network design, installation, and administration services.
• Web design (currently outsourced).

Web Solutions is a company driven to provide customers with a complete solution to their entire current and future Internet and private network needs. The company’s customer base includes all consumers and all small- to medium-sized businesses, including start-ups.

Web Solutions benefits from several strategic alliances by receiving very competitive pricing on most services, allowing the company to offer competitive pricing on its services to customers.

ISPs offer a way for people to enter the Internet. According to International Data Corporation (IDC), an information technology research and consulting firm located in Framingham, Massachusetts, the consumer ISP market will expand from $10.7 billion in 1998 to $37 billion in 2003.

Competitive threats come from other ISPs located in or around Phoenix, including the following companies: Jump.Net, Arizona.Net, EarthLink, and Mindspring. Most competitors offer solutions for Windows, and perhaps Macintosh, but ignore all other operating systems. With the rise of Linux and other alternative operating systems, there is potential for Web Solutions to surpass its competitors.

Web Solutions has a world-class management team with direct knowledge of the industry, extensive research experience, and unique administration skills. Its team includes Mr. Jason Williams, Mrs. Amy Williams, and Ms. Geena James.

Projected revenues for 2000 through 2002 substantial steady growth. The company is seeking a major investment to fund four areas of growth in the company:

• Increase personnel to handle sales, service, and development efforts.
• Increase marketing to assure future customers are aware of our offerings and aggressive pricing.
• Expand our base of operations (using wholesale providers, partnerships, and other mechanisms) to include at least the top 100 U.S. markets for dialup and dedicated Internet access.
• Perform research and development to bring new products to market.

1.1 Mission

The mission of Web Solutions is to provide customers with a complete solution to all their current and future Internet and private network needs.

Web Solutions has established a reputation for quality work and plans to continue to enhance its image in the industry. The company seeks to become a well-known and respected provider of advanced network solutions by:

• Increasing service offerings.
• Increasing availability and accessibility to current and future customers.
• Creating innovative, unique, and cost-effective solutions to problems currently faced by customers.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Web Solutions, Inc. is a C-class corporation, incorporated in the State of Arizona in July, 1997. The company’s principal offices are currently located in Phoenix, AZ. All operations, from administration to product development, take place at this leased office location. The company plans to move to a bigger facility as it expands and its staff grows beyond its current four full-time employees.

Web Solutions currently delivers Internet service to dialup and ISDN customers, and will commence to sell DSL services by February of this year. The company currently hosts approximately 30 websites and has five co-located servers. Additionally, the company is evaluating e-commerce software, looking for the solution which provides the greatest flexibility while allowing operations to remain simple for its customers.

All services are competitively price and targeted to small “Mom-and-Pop” businesses and small office/home office (SOHO) customers. Web Solutions feels that this market segment has largely been neglected because of the amount of “hand-holding” required by this segment, and the inability to pay the astronomical fees charged by many ISPs for typically poor service and user support.

By working to simplify the creation, management, and support of our services, the company will enable customers to perform many tasks themselves, or automating these tasks based on the customer’s stated needs. This will make our pricing more competitive, the customers perception of service high, and the operation as a whole more reliable and profitable.

With current hardware and facilities, the company can do the following:

• Handle an unlimited number of dialup users.
• Handle up to 46 dedicated channels.
• Handle up to 1,000 email users.

3.1 Service Description

Web Solutions is a traditional, full-service ISP, offering dialup and dedicated Internet access, Web and virtual domain hosting, server co-located, and network-related professional solutions (design, installation, management, etc.). The company allows people and companies to access and publish documents on the World Wide Web without the need to hire full-time system administrators, costly high-speed network connections, dedicated servers, and other similar expenses or expertise.

The company provides many of the services that customers need to get online. The company provides both connectivity and consulting on topics ranging from office automation to Web server planning. The company has ongoing research and development to provide solutions to current customer issues (e-commerce, ease-of-use features, etc.) and to develop new products and services which enable the company to enter and compete in new markets and attract new customers.

Web Solutions selects products which meet the following criterion:

• Benefit to customers/company : the product must materially benefit the customer or the company in some way. This may manifest itself as a side benefit, an improvement on current services, or additional revenue stream to the company.
• Cost/benefit ratio : the benefits realized must be at least as great as the cost of implementation, production, and maintenance of the product.
• Maintainability : the product must be maintainable by PhoenixARIZONA.COM personnel. The company has had some experience with products where source code and other maintenance resources are unavailable and has had major difficulties with these restrictions. The company has a strong preference for Open Source and similar distribution methods where source code is available to personnel to correct problems which vendors consider too unimportant to warrant effort on.

Web Solutions makes a concerted effort to keep customers informed and to remedy problems in the shortest possible times. The company has lost very few customers to technical support issues, and will continue to make high quality support one of its primary goals.

Web Solutions offers telephone support during extended business hours (8 a.m. to 8 p.m.) and has an on-call pager for emergencies (network-down and server-down situations). In the future, the company plans to implement a 24/7 network operations center (NOC) and a toll-free technical support phone number.

3.2 Fulfillment

Currently, all products are implementations of Open Source products. The groupware product will be based upon OpenDesk.com’s software, which is available under an Open Source license. Web Solutions will be extending the functionality of this product, and release those changes back to the development community.

With the VVD product, the company will have to design and manufacture custom equipment for customers to receive the data and convert it to video or voice.

Currently, the company has no products to return. The company’s usage policy states that it will refund a portion of the customers’ monthly access fee if there are extended network outages due to events within our control.

The company gives technical advice to pre-sales customers and technical support is offered for all purchases by the customer. These services are offered by Web Solutions at no cost to our clientele.

3.3 Future Services

Free (advertiser supported) back-office service with email, file sharing, calendaring/scheduling, and other applications are options for future services from Web Solutions. This would allow groups (both for-profit and nonprofit) to have the collaboration enjoyed by major corporations with multimillion-dollar management information systems (MIS) budgets for little or no cost. It also would produce an avenue through which to offer future free and pay services.

Web Solutions plans to have the initial launch of the back-office product by March 31st. The company currently has a potential customer (a local radio station) who wishes to privately brand this product and offer it to their customers.

Web Solutions is in the process of researching a future service of integrated voice, video, and data over high speed TCP/IP network connections (DSL, etc.) so as to merge the traditional telephone, cable, and ISP functionalities, extend them, and affordably offer them to consumers. This product would compete directly with traditional cable and telephone companies, and provide new and innovative revenue streams. Current plans for this product are to price the consumer product very aggressively and take the profit from secondary services such as advertising. Web Solutions plans to have a working prototype of the server and clients needed for the VVD product by October 1, 2000, and a limited launch by March 1, 2001.

Market Analysis Summary how to do a market analysis for your business plan.">

The topics which follow discuss our customers, our competitors, and conditions within our industry. The Market Analysis data found in the following table and chart is taken from the 1997 U.S. Census.

4.1 Market Segmentation

The company’s customer base includes all consumers and all small- to medium-sized businesses, including start-ups. The company plans to concentrate on SOHO clients, as these are perfect targets for our new high-speed offerings, and hold the greatest growth potential for the company. Web Solutions feels that these market segments have special pricing and service needs, and make more dedicated, reliable customers.

4.2 Service Business Analysis

The following sub-topics look at the size and concentration of businesses in this group, the way services are bought and sold, and specific competitors.

4.2.1 Competition and Buying Patterns

Web Solutions believes that its customers choose its products and services based on the following criteria:

• Experience.
• Reputation.
• Accessibility.

4.2.2 Main Competitors

Competitive threats come from other ISPs, including the following companies: Jump.Net, Arizona.Net, AOL, EarthLink, Mindspring, and Prodigy Internet. Most of our competitors offer solutions for Windows, and perhaps Mac, but ignore all other operating systems. With the rise of Linux and other alternative operating systems, there is potential for Web Solutions to surpass its competitors.

Key competitors are detailed as follows:

Jump.Net Jump.Net offers a wide variety of services to match customer needs. They have split information into two categories:

• Basic service: for customers looking for a simple, inexpensive way to connect their home or business to the Internet.
• Complete details: for customers who need a custom solution for unique requirements, Jump.net offers the following services:
• ADSL & SDSL.
• Modem service.
• Nationwide access.
• Functionalities.
• FTP services.
• Hardware sales.
• Leased lines.
• Telnet-only service.
• Web hosting.

Arizona.Net Arizona.Net is San Antonio’s first and largest ISP. Locally owned and operated since 1994, Arizona.Net specializes in modem dial-up, ISDN, dedicated local area network (LAN) access and T1 (a high-speed network link that transmits data at 1.5 Mbps) to the Internet. Arizona.Net now serves Phoenix, San Antonio, Houston, Dallas, Spring, Georgetown, Dripping Springs, Bandera, New Braunfels, and Boerne.

For dialup connections, Arizona.Net uses an all-digital modem pool consisting of equipment from US Robotics, Ascend, and Livingston. All of their locations maintain a full 56k modem pool, upgraded to the latest version of the v.90 standard. These digital modems allow for a more reliable connection, and enable them to make ISDN connections on the same equipment, so they can offer 64k ISDN service with all dialup accounts. To make sure that customers can get to their services, Arizona.Net maintains a no-busy-signal policy.

If customers report a busy signal, Arizona.Net has the ability to connect as many telephone lines as necessary to relieve the problem. Currently, none of their locations are having any problems with busy signals. Arizona.Net maintains multiple separate T3 (a high-speed network link that transmits data at 45 Mpbs) connections to the Internet backbone through multiple backbone providers. These separate connections give Arizona.Net more than enough bandwidth to handle future growth as well as provide the security of uninterrupted service.

EarthLink EarthLink helps its members have an enjoyable and productive Internet experience by providing reliable, unlimited Internet access and Web hosting services, outstanding technical support, useful information, and innovative services. Prices are among the lowest in the industry. EarthLink offers the following services:

• Internet access.
• High-speed access.
• EarthLink Sprint bundle.

Mindspring MindSpring Biz delivers complete Business Internet Solutions for any small business backed with its award winning service and support. Its business plans–whether Web Hosting, e-commerce, high speed dedicated access, or Web Design–are packaged to fit customer needs today and are tailored to grow along with business for tomorrow. Mindspring offers the following business solutions:

• Business access.
• E-commerce.
• Domain reservation.
• Dedicated access.
• MindSpring dialup access.
• SDSL Waiting Lis.
• Promotional solutions.

4.2.3 Risks

The company recognizes that it is subject to both market and industry risks. The company’s view of its risks, as well as how each is being addressed, is as follows:

• Regulations . Possible problems caused by a sudden increase in regulation by local, State, or Federal authorities. One way the company can reduce this risk is to diversify into several different, but related, business areas. If one area becomes too heavily regulated it may be sold and the profit rolled back into the company to bolster the remaining business or start a new venture.
• Monopolistic pricing . Aggressive or monopolistic pricing by large or heavily-funded providers. By holding prices down, it becomes difficult for competitors to “low-ball” the company. By diversifying, we can protect business in one area by bundling it with offerings from another area, meeting the needs of the customers and strengthening their ties to the company.
• Legal matters . Lawsuits stemming from user abuse or accessibility of pornographic or questionable materials. The courts have historically classified ISP’s as “carriers” unless the ISP made an incomplete effort to actively filter material posted by or made available to its users. The company’s usage policy clearly states that illegal behavior will result in termination of service, but we do not otherwise attempt to control the access of its users or their content, thus maintaining the company’s stance as a “carrier” in the eyes of the law. If the legal environment should change, the company will modify its policies and procedures to conform to the prevailing legal environment.
• Technology . Sudden and unexpected shifts in technology or the popularity of the Internet. The company will maintain an active research and development effort, as well as ongoing review of forthcoming technologies from competitors and vendors, in order to stay near the top of the technological curve. Also, the diversification of the company’s business allows it to respond to shifts in revenue by redistributing material and personnel into those efforts most likely to generate the highest return on investment.

4.2.4 Business Participants

The alternative is to be a content provider. This is a less desirable position as it leaves the company too much at the whim of the public and forces the company to renew its efforts continuously to provide usable content.

The ISP industry has begun the process of specialization. Many companies who began by filling all needs (as we do today) have moved into areas which utilize their strengths. These specializations include:

• Functionalities (“Server Hotel”) facilities.
• Dialup access.
• Content provision.

Additionally, there are a few new markets emerging, such as Applications Service Providers.

• Access services ISPs offer a way for people to enter the Internet. According to IDC, America Online (including subscribers to CompuServe, which AOL acquired in September, 1997), has approximately a 43% share of the total subscribers in the ISP segment, followed by Microsoft’s MSN, and AT&T Corporation’s WorldNet. After these major players, roughly 5,000 ISPs fight over the remainder of the market. IDC estimates that the consumer ISP market will expand from $10.7 billion in 1998 to $37 billion in 2003. When users access the Internet, they dial into the local point of presence (POP) of an ISP or online service provider (OSP). ISPs offer basic, flat-rate Internet access to customers, either through their own networks, or through networks leased from other ISPs. Users dial into an ISP’s network through ordinary phone lines and, using a browser, access the Web. OSPs, such as America Online, provide original content in areas such as shopping, news groups, gaming groups, investor information, and magazines. Access fees for both ISPs and OSPs typically range from $19.95 to $21.95 per month for unlimited Internet use. The flat rate system was pioneered by America Online in 1996 and has led to an explosion of subscribers. Flat rates have also served to increase the amount of time that users spend online, which has forced many local telephone service companies to upgrade capacity in order to accommodate the heavy usage.
• A taxing issue One nettlesome issue that could potentially slow the growth of e-commerce is the taxation of goods and services. Currently, fees paid to ISPs and OSPs are tax-free, except in a few states. Purchases, however, are subject to the same taxes that apply to goods sold in a store or catalog. When online purchases are made, purchasers are technically responsible for remitting state and local taxes. The only exception occurs when a consumer buys from a corporation with a physical presence in that consumer’s home state. In actuality, however, online shoppers rarely pay this cyber-taxation. While state and local governments are disturbed at this loss of revenue–and the potential loss of immense future revenue–federal governmental officials have adopted a hands-off policy with regard to Internet taxation. In October, 1998, the Internet Tax Freedom Act was passed, placing a three-year ban on any new Internet sales taxes or taxes on ISPs. During this three-year time frame, a committee of government and business representatives known as The Advisory Commission on Electronic Commerce will meet to discuss a more permanent tax policy. The 19 members of the commission include three federal officials, eight business and consumer leaders, and eight representatives of state and local governments.
• ISPs face challenges The rise in Internet users has proven to be a boon for Internet service providers, which charge monthly subscription fees in return for providing access. While business has been good for many of these ISPs, a number of challenges threaten the long-term growth and profitability of these companies.
• “Free” Internet access proves viable While most headlines or advertisements proclaiming free Internet service are actually a bit misleading, the impact of this business model is starting to be felt. The most prominent and successful example of a free ISP is in the United Kingdom, where Freeserve plc does not charge its customers access fees. Unlike the United States, however, local calls in the United Kingdom are billed on a per-minute basis, so heavy Internet users may actually pay more than in the United States. In the United States, different types of “free” plans are being marketed. One strategy gives a subscriber free service in exchange for having advertisements scroll constantly across his or her PC screen. A different slant to this marketing scheme allows a consumer to earn a free personal computer, provided that he or she signs up for a few years of Internet service in advance.

The following is a list of services which various websites provide:

• Destinations . Destinations are places, or websites, located on the Internet where people can go for information, entertainment, or commerce.
• Content providers . This type of website offers mostly original content (like news articles) to subscribers. Some of the major content providers include ESPN Sports Zone (a joint venture between Infoseek Corp. and Walt Disney Co.), SportsLine USA Inc., privately held The Motley Fool Inc., and MSNBC (a joint venture between Microsoft and NBC). With new websites being established every day, it’s difficult to come up with a reasonable estimate for the size of this market.
• Portals . These websites tend to gather content into one place rather than creating it themselves. Some of the major portals include Yahoo! Inc. (1998 sales of $206 million), Infoseek Corporation ($63 million in fiscal year 1998), and Lycos Inc. ($56 million in fiscal year 1998). Although e-commerce has started to become a larger promotion of these companies’ business, portals typically rely on the sale of advertising space to generate revenue. According to Jupiter Communications, a market research firm based in New York City, advertisers spent approximately $2 billion for online ads in 1998. Jupiter believes that this number will hit $9 billion in 2002.
• Communities . Communities are similar to portals, in that their primary revenue streams come from advertisers. Some of the major community sites include Geocities (1998 sales of $18.4 million), now a part of Yahoo! Xoom.com Inc. ($8.3 million), and theglobe.com Inc. ($5.5 million).
• Business-to-consumer e-commerce . Estimates for the amount of online spending by consumers in 1998 range from $7 billion to $13 billion, with at least 25% occurring during the Christmas shopping season. Forrester Research, an information technology research firm in Cambridge, Massachusetts, believes that online retail spending will hit $108 billion in 2003. Some of the major publicly traded online retailers included Amazon.com Inc. (1998 sales of $610 million), CDnow Inc. ($98 million), barnesandnoble. com Inc. ($62 million), and Beyond.com corp. ($37 million). A variety of “real-world” companies including Gap Inc., Lands’ End Inc., and Macy’s have established retail operations on the Internet.
• Business-to-business e-commerce . Although there are very few pure business-to-business e-commerce firms, this segment dwarfs the business-to-consumer sector. Forrester believes that this market, which totaled $43 billion in 1998, should rise to $1.3 trillion by 2003. Most companies in this category, like Cisco Systems and Dell Computer Corporation, have other sales channels, but are increasingly using the Internet to lower costs and reach a wider customer base. Dell generates an estimated $30 million in sales every day via the Internet, while Cisco estimates that it produces approximately $33 million a day in sales through the Internet.
• Auctions . The online market for auctions is headed by eBay Inc., (1998 revenues of $86.1 million, with $745 million of gross merchandise sales).
• Hardware: networking equipment . The hardware sector provides the infrastructure on which the Internet is built. Hardware companies provide the equipment that forms the interconnections between the networks that comprise the Internet. Their products steer traffic through a spiderweb of routes to the correct destination. One critical piece of networking equipment is the router, which acts as a traffic officer by directing data to the proper destination. Another key element of the Internet infrastructure is a remote access concentrator. Access concentrators link employees and customers to an organization’s internal network, and link consumers to the Internet via their ISP.

Strategy and Implementation Summary

The company will also implement a low-cost strategy. This will be achieved by working to establish and develop agreements with local media companies to exchange services for discounted advertising and other exposures. Web Solutions’ market strategy is to build on its core portfolio of products and services using the company’s expertise in the ISP industry.

The company will leverage its discounted services to help provide secondary income streams. For instance, the company plans to launch free email services, business directories, and other similar services which will attract current and potential customers to our Web pages. These “page views” will be used to generate advertising revenue, as well as increase exposure of our own products and services.

Web Solutions will be able to excel in the market because the company is small, highly focused, and motivated. The company can respond quickly to changing opportunities and take advantage of the latest technologies.

The company plans to expand its marketing efforts, service offerings, and production. It is anticipated that additional services will be offered and more personnel hired within 30 days of initial capital funding. Web Solutions plans to capitalize on the following areas of growth:

• High-speed Internet connectivity via DSL, Wireless, and other technologies.
• Web hosting and design tailored to small, local businesses.
• E-commerce and associated online databases.

5.1 Competitive Edge

Web Solutions is currently the lowest-priced provider in Phoenix for most commercial services, and its reputation has been consistently high. Size gives the company a competitive advantage, in that it can see where the industry is going and move in that direction more quickly than the competition. This also allows the company to be more efficient at recruiting and hiring highly creative and talented individuals who tend to shy away from large “corporate” environments. The company has worked to overcome old mistakes made by existing ISPs by hiring technically-savvy individuals.

5.2 Marketing Strategy

The concentrated marketing activities of Web Solutions focus on the business mission and are comprehensive in nature. The following activities are the marketing department’s mission:

• Advertising design and placement.
• Public relations schedules and press releases throughout each year.
• Creation of annual advertorial (advertisement/tutorial) themes for trade journals and industry conferences.
• Planning and execution of all industry conferences, including the reservation of space, booths, personnel, messages, literature, etc.
• Collection, analysis, and internal dissemination of competitive information.
• Creation and maintenance of all corporate literature.
• Design, maintenance, and monitoring of websites.
• Design and creation of sales support material.
• Collection and dissemination of client testimonials.

5.2.1 Marketing Programs

To generate sales, the company uses direct marketing, computer reseller and repair facilities, and high-traffic areas (e.g. store checkout stands). Currently, several local companies display the company’s CD-ROMs at their checkout stands in the Phoenix area in exchange for free Web hosting.

Marketing initiatives will focus on four areas: efficient (“Server Hotel”) facilities, Web hosting, dialup access, and content provision. Marketing activities will be concentrated in the following categories:

• Contact Campaigns . This initiative will encompass various methods of reaching potential customers to generate interest, followed by direct mail to the potential customer.
• Print Advertising . Ads will be developed and placed in several industry publications.
• Trade Shows . The company will participate in selected local and national shows that will provide an opportunity to develop exposure. This is a very effective tool in creating awareness and stimulating lead activity.
• Industry Organizations and Associates . The recommendation is to join a number of organizations that are relevant to the company as a whole. This initiative will create awareness of the company within the industry, and provide networking opportunities.
• Telemarketing Campaign . Telemarketing activities geared to identify qualified leads, follow-up on sales progress to the qualified leads, and assurance that new potential contact lists are current and accurate.
• Promotional GiveAways . This is a traditional way of advertising a company’s name by giving something away. This will be used in conjunction with community service organization fund-raising efforts and traditional advertising.

5.3 Sales Forecast

The sales forecast chart and table are presented below. Final sales forecasts are based on predictions mentioned in the Executive Summary.

5.4 Strategic Alliances

Web Solutions currently has strategic relationships with:

• World Communications for Internet service.
• Phoenix DSL Networks for DSL resale.
• Phoenix Communications for high-speed wireless.
• Internet of Phoenix for dialup connectivity (they provide wholesale pricing in the Phoenix area).

Web Solutions benefits from these relationships by receiving very competitive pricing on most of these services, allowing the company to offer competitive pricing on its services to customers.

The company is currently pursuing an agreement with a local radio station to provide Web-hosting services which will eventually include extended email services and dial-up access offered to their listeners under a co-branding agreement. There have also been discussions about this becoming a nationwide collaboration between Web Solutions and the stations’ parent company, Jordan’s Media.

The company plans to develop community calendaring and groupware applications for use by the company and the afore-mentioned radio station. This will provide a simple, useful tool for organizations, businesses, and individuals to organize, plan, announce, and track projects and events. This is being based on the Open Source project maintained at www.opendesk.com and will most likely be developed to contain both Open Source and proprietary components.

In the future, the company plans to partner with backbone providers, wholesale carriers, and other strategic organizations to:

• Reduce cost of goods and services utilized.
• Increase the number and variety of goods and services offered to customers.
• Chart the growth of the company into new territories.

At this time, the company is establishing re-seller agreements with DSL and Wireless high-bandwidth providers, and other services which will allow the company to compete in these markets, thus allowing for broader consumer recognition.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The company’s management philosophy is based on responsibility and mutual respect. Web Solutions has an environment and structure that encourages productivity and respect for customers and fellow employees. The company’s goal is to create an environment where:

• Creativity can flourish.
• Generating new ideas and products is well rewarded.
• Management structure is relatively flat and communication is encouraged.
• Mutual respect and sharing of knowledge is encouraged.

6.1 Management Team

Web Solution’s management is highly experienced and qualified. Key members of its management teams are listed below.

• Geena James – Treasurer

6.2 Personnel Plan

The Web Solutions annual Personnel Plan is shown below. First year monthly expenses are included in the appendix.

Financial Plan investor-ready personnel plan .">

This section presents our financial projections for the term of the plan.

The company is raising a large investment for the purpose of growth and operations. This funding will cover operating expenses and product development during this period. The following is a breakdown of how the funds will be used.

7.1 Important Assumptions

• Nature and Limitation of Projections . This financial projection is based on sales volume at the levels described in the revenue section and presents, to the best of management’s knowledge and belief, the company’s expected assets, liabilities, capital, revenues, and expenses. The projections reflect management’s judgement of the expected conditions and its expected course of action, given the hypothetical assumptions.
• Revenues . The company’s revenue is derived primarily from subscriptions. Revenue projections are based on the 1999 sales in the comparable market nationwide, based on industry average. The exact numbers can be found in the Sales Forecast table and chart section.
• Expenses . The company’s expenses are primarily those of salaries, sales commissions, and administrative costs. Other expenses are based on management’s estimates and industry averages.

7.2 Break-even Analysis

The following table and chart reflect the company’s break-even estimates. These are based on fixed and variable cost estimates derived from past income statement data. Given that Web Solutions has little in the way of marginal costs, the break even analysis reflects the industry’s high gross margins. Unless one of the potential future risks seriously impacts profitability, or the company loses its ability to rapidly adjust to changing market conditions, the company does not see this as a serious issue.

7.3 Projected Profit and Loss

Web Solutions is in the early stage of development, thus initial projections have only been made on accounts that are believed to most drive the income statement. The following table provides Web Solution’s projected income statements for 2000-2002.

7.4 Projected Cash Flow

This chart and table show our cash flow and cash balance projections.

7.5 Projected Balance Sheet

The following table outlines Web Solution’s projected balance sheets for fiscal years 2000-2002.

7.6 Business Ratios

Standard business ratios are shown in this table. Industry Profile ratios are based on NAICS code 518111 for Internet Service Providers.

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Business Plan Template for Internet Service Providers

• Great for beginners
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Starting an Internet service provider business is an exciting venture, but it requires careful planning and strategy. That's where ClickUp's Business Plan Template for Internet Service Providers comes in handy!

With this template, you can:

• Define your strategic goals and objectives to ensure the success of your ISP
• Create accurate financial projections to attract investors and secure funding
• Develop effective marketing strategies to reach your target audience and gain a competitive edge
• Outline operational plans to guide the growth and development of your Internet services

Whether you're a telecommunications company or a startup, ClickUp's Business Plan Template for Internet Service Providers has everything you need to launch and scale your ISP. Start planning your path to success today!

Business Plan Template for Internet Service Providers Benefits

Planning for success is crucial for internet service providers, and a business plan template can help in numerous ways:

• Clearly define your strategic goals and objectives for your internet services
• Outline your financial projections and demonstrate the potential profitability of your business
• Develop effective marketing strategies to attract and retain customers
• Establish operational plans to ensure smooth and efficient service delivery
• Attract potential investors and secure funding for your internet service business
• Guide the growth and development of your business by providing a roadmap for success.

Main Elements of Internet Service Providers Business Plan Template

ClickUp's Business Plan Template for Internet Service Providers is designed to help you outline and organize your strategic goals, financial projections, and marketing strategies to attract investors and guide the growth of your Internet services.

Here are the main elements of this template:

• Custom Statuses: Easily track the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add additional details and organize your business plan information.
• Different Views: Access 5 different views to visualize your business plan content, including Topics, Status, Timeline, Business Plan, and Getting Started Guide, giving you flexibility and different perspectives when working on your plan.

With ClickUp's Business Plan Template for Internet Service Providers, you'll have all the tools you need to create a comprehensive and effective business plan for your Internet services.

How To Use Business Plan Template for Internet Service Providers

If you're an Internet Service Provider (ISP) looking to create a solid business plan, the Business Plan Template in ClickUp can help you get started. Just follow these six steps:

1. Define your target market

Start by identifying your target market. Determine the demographics, location, and specific needs of the customers you want to serve. This will help you tailor your services and marketing efforts to attract and retain your ideal customers.

Use custom fields in ClickUp to track key information about your target market, such as age, location, and internet usage habits.

2. Analyze the competition

Research other ISPs in your area and analyze their strengths and weaknesses. Identify what sets your business apart and how you can provide unique value to your customers. Understanding your competition will help you position your business effectively and differentiate yourself in the market.

Use the Workload view in ClickUp to track and compare the performance of your competitors.

3. Outline your services

Outline the internet services you plan to offer, such as residential or commercial packages, different speed options, and any additional features or benefits you can provide. Be sure to consider the needs and preferences of your target market when defining your services.

Use the Board view in ClickUp to create cards for each service you plan to offer and track their development.

4. Develop a marketing strategy

Create a comprehensive marketing strategy to promote your ISP and attract customers. Consider digital marketing tactics such as online advertising, social media campaigns, and search engine optimization. Also, think about traditional marketing methods like local events and partnerships.

Use the Calendar view in ClickUp to plan and schedule your marketing activities, ensuring a consistent and effective approach.

5. Financial planning

Develop a financial plan that includes projected revenue, expenses, and cash flow for your ISP. Consider factors such as equipment costs, staff salaries, marketing expenses, and projected customer acquisition and retention rates. This will help you understand the financial viability of your business and make informed decisions.

Use the Gantt chart in ClickUp to create a timeline for your financial planning and monitor your progress towards your financial goals.

6. Monitor and review

Regularly monitor your business plan and review your progress. Keep track of key performance indicators (KPIs) such as customer acquisition rates, churn rates, and revenue growth. Make adjustments to your strategies and tactics as needed to ensure your ISP's success.

Use the Goals feature in ClickUp to set and track your KPIs, ensuring that you stay on track and achieve your business objectives.

Get Started with ClickUp’s Business Plan Template for Internet Service Providers

Internet service providers can use this Business Plan Template to outline their strategic goals, financial projections, marketing strategies, and operational plans to guide the growth and development of their Internet services.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize different sections of your business plan, such as Executive Summary, Market Analysis, Financial Projections, and more
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will give you a visual representation of your business plan's milestones and deadlines
• The Business Plan View will provide a comprehensive overview of your entire business plan, allowing you to easily navigate and make updates
• The Getting Started Guide View will help you keep track of the steps needed to start implementing your business plan
• Utilize the custom fields Reference, Approved, and Section to add additional information and categorize different parts of your business plan
• Update statuses and custom fields as you progress through each section to keep stakeholders informed of progress
• Monitor and analyze your business plan to ensure it aligns with your goals and objectives
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Internet Company Business Plan Template

Written by Dave Lavinsky

Internet Company Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their internet companies.

If you’re unfamiliar with creating an internet business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an internet business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Internet Business Plan?

A business plan provides a snapshot of your internet business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Internet Provider

If you’re looking to start an internet business or grow your existing internet company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your internet business to improve your chances of success. Your internet business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Internet Businesses

With regards to funding, the main sources of funding for an internet business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for internet companies.

Finish Your Business Plan Today!

How to write a business plan for an internet business.

If you want to start an internet business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your internet business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of internet business you are running and the status. For example, are you a startup, do you have an internet business that you would like to grow, or are you operating a chain of internet businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the internet industry.
• Discuss the type of internet business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of internet business you are operating.

For example, you might specialize in one of the following types of internet businesses:

• WISP (wireless internet service provider): This type of internet business is often used to provide internet service to meet basic household needs in rural communities.
• Wholesale internet provider: This type of internet business involves buying white label internet lines from large internet service providers (ISPs) such as AT&T or Frontier to then rebrand and resell to end-users.
• Fiber broadband internet provider: This type of internet business specializes in providing service through fiber optic cables. Many customers prefer fiber over other types of internet because it is faster and supports heavy use.
• Digital Subscriber Line (DSL): This type of internet provider connects users to the internet through a phone line. A significant portion of the U.S. population has access to this type of service.
• Satellite internet provider: This type of internet business provides internet service via satellite and, although it is slower and less reliable than other types, it is often the only option for customers in very rural areas.

In addition to explaining the type of internet business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of geographical locations served, and reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the internet industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the internet industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your internet business plan:

• How big is the internet industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your internet business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your internet business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of internet business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other internet businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of internet service providers and large corporations that provide internet service such as AT&T or T-Mobile. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of internet business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for customer to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a internet business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of internet company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide cable, satellite, or fiber internet?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your internet company. Document where your company is situated and mention how the site will impact your success. For example, is your internet business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your internet marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your internet business, including answering calls, planning marketing and sales campaigns, billing customers and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your internet business to a new city.

Management Team

To demonstrate your internet business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing internet businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an internet business or successfully running a small WISP.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you use a three-tiered subscription model, and will you offer a free month to new subscribers? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your internet business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a internet business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or testimonials from happy customers.  

Writing a business plan for your internet business is a worthwhile endeavor. If you follow the business plan outline above, by the time you are done, you will truly be an expert. You will understand the internet industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful internet business.

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how a Growthink business planning consultant can create your business plan for you.  

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