that I bought the Proposal Pack. The reaction from my existing clients has been great! They are very impressed with how detailed and professional my new business proposals are."
October 20XX Richard Douglas 1939 Lake Washington Drive Seattle WA Dear Mr. Douglas We are starting an exciting new venture web hosting company called QW Host. This offers new opportunities for clients looking for efficient and economical solutions to their web hosting needs. It also offers an investment opportunity for you.
Although there are many web hosting companies already offering their services in North America the market is vast and growing by the minute. QW Host will not only be competitive with industry leaders but we plan to offer better service at lower prices. Our target audience is new businesses. As these companies tend to start with basic services and then expand as their own businesses grow we at QW Host expect to grow along with our clients. To launch our new company we have acquired funds from variety of sources as we’ve documented in our attached proposal. We still need additional capital in the amount of $7500 loan from you. This will be good investment for all parties. We have the ability and business know how; you have the capital to get us started. We are offering you 20% return as described herein. We know that you have invested in many local startups that now form the backbone of our local business community. We look forward to counting you among our backers as we move forward with our exciting business venture. Let’s make it happen. Sincerely John Jackson
Owner QW Host 425 555 1212 firstname.lastname@example.org www.qwhost.com QW Host
17493 NE 30th Place Redmond WA PH 425 555 1212 FX 425 555 1213 www.qwhost.com Seeking Private Investor Funding Prepared for. Richard Douglas Prepared by. John Jackson Owner Business plan for QW Host startup web site development graphic design and hosting company. QW Host is seeking small business startup loan of $7500.00 from private investor. Proposal Number. BP 101
Executive Summary Organization Marketing Financial Objectives QW Host has been developed and set up to offer high quality hosting with affordable prices and guaranteed uptime to businesses as well as other organizations. With our top of the line servers and quality support we offer web hosting experience never seen before for these prices. For half the price of our competitors we offer double the space and bandwidth as well as support response time of eight hours or less. We also offer to all of our customers site builder free with any package plan so that they can easily build and upload their site. There’s no need to hire out or possess any knowledge of programming or graphic design. Our site builder allows customers another resource and tool to help them on their quest for great website. Highlights of QW Host. High Quality Servers. Our servers are the latest technology and maintained on site. We offer both Windows and Linux servers for all of our customers from shared hosting all the way up to dedicated. We limit each server to no more than clients. Other hosts may cram thousands of clients onto one server. 24 Online Support. Our technical support is available hours day and days week. We guarantee top of the line support. If we cannot fix customer’s problem in hours or less we will give that customer free month of hosting.
Free Site Builder. For any client that signs up for hosting package with us we include free site builder. This site builder is browser based and exports the site using FTP so that the site instantly shows up online. No programming experience is required. Clients can save anything they’ve worked on and then come back and make changes later. More Space and Bandwidth. We offer double the space and bandwidth of our competitors. This guarantees that our customers will never run out and will be able to do more with their websites. The Mission for QW Host is to become recognizable North American Web hosting company utilising the connective power of the internet to become leader in shared as well as dedicated hosting. We will offer great hosting for personal sites as well as big companies and give both the opportunity to grow online via our services. To accomplish this we will offer round the clock professional support before and after clients have used our services. We also will offer state of the art servers at economical prices so that great variety of clients can use and trust our service. This in combination with our large amount of space and bandwidth and our free site builder will enable our clients to grow their websites while we grow our business. QW Host offers high quality hosting at affordable prices. QW Host. Our website offers the ability to sign up online for any hosting package we offer. Within minutes login and FTP information will be sent to the client. This allows customers to instantly get online and start building website. We also offer two DNS numbers so that people can point their domains to their packages and in hours or less have their website working online. Hosting Shared hosting will be provided to all users who want only basic business page or personal page. Our prices for shared hosting start at $2.50 per month and range up to $7.50. Our base plan of $2.50 offers MB and GB of bandwidth. Our maximum shared hosting plan at $7.50 offers 1500MB and GB of bandwidth.
Our VPS and Dedicated servers offer clients high quality and cost effective solution when choosing provider for their hosting business. Our base VPS plans start at $29.95 and go up to $69.95. Our Dedicated Server Plans start at $99.95 and go up to $199.95. Sourcing and Fulfillment All servers are made and located in the U.S.A. Our data center is also located in the U.S.A. and is watched and maintained hours day and days week. Technology All our technology will be inspected each month including hardware for our servers. We also inspect all our server management software programs which are licensed from third parties. Competitive Edge Our edge on the market will be our low price and high quality servers as well as the amount of space we offer and our excellent support. We will target new businesses as well as existing home based businesses that want to update their communications. All businesses need websites and every website needs web hosting. In many cases new clients working within tight budgets look for cheaper hosts and in doing so often have to make do with poor service or equipment such as slow servers. QW Host will offer an efficient economical alternative with some of the lowest prices around for high quality customer support and servers. Main Competitors www.HostinBox.com This company has been in the business for many years and lead the way in high quality servers as well as in price per package. Their support is excellent and their packages come with lot of space as well as bandwidth. They do not have site builder but we foresee one coming soon. www.HostMe.com This company is new to the business only years old. They are currently ranked second in online hosting with efficient servers and an affordable price per package. Their support is top notch and their packages come with an impressive amount of space as well as bandwidth. They have site builder which is free for clients.
www.HostRUS.com – This company has been in the business for many years and now ranks third in online hosting. They offer larger amounts of space than their #1 and #2 competitors. They also have great prices and high capacity high speed servers. Their support is very professional and they offer site builder free to their clients. QW Hosting is forming strategic alliances with websites that offer similar services graphics web design etc.. This will increase our visibility in the marketplace and create new areas of revenue for our company. Also building these partnerships allows us to offer an increasingly broader range of services to our customers. This encourages repeat visitors and steady flow of cash into our business. QW Host has already developed the necessary tools for business including. Maintained Servers Our servers have already been set up and are running with all software needed for hosting clients. They are maintained and monitored hours day at our data center. commerce service Our website incorporates the ability to take and set up orders online. We offer multiple payment methods such as credit card PayPal check and money order. Website development All graphics for website development have already been created coded and integrated into the commerce system. The website is live and taking orders on QW Host.
Products All web hosting products have been set up and inventoried so that we know how many customers we can take on. We also know how many servers we will need to add as our numbers grow. In our data center we currently have servers. Each server can handle clients for current capacity of clients =. Marketing Material Our marketing materials are in the design stage. Please see our marketing plan later in this proposal. Management will initially consist of John Jackson Owner of QW Host. He also acts as the web master having over years of experience in web development. Jill Jackson will act as assistant manager delivering assistance when needed participating in required meetings as well as delivering opinions and ideas on plans. Personnel Plan John Jackson Webmaster Jill Jackson
Outsourcing Coordinator Contract Labour Office Assistant Total People Total Payroll QW Host will target new companies in the business world as well as home based businesses and small to mid sized companies. Our business will be global but our main focus and target area will be North America mostly the United States but also Canada. We will continually strive to deliver high quality hosting as well as other products that go hand in hand with our main focus of service. Also we will focus on pulling in more clients with promotional offers discounts money back guarantee and great savings on price. We will also focus on being ahead of our competitors and the market by looking into and developing new technology that delivers brand new user experience unique to only our business.
Our promotion will focus mainly on the North American Market mainly United States but also Canada although our services will be available for customers around the globe. Our marketing will focus on ad campaigns targeting large number of webmaster related sites as well as businesses in order to bring their attention to our service. Working within our limited budget of $5000 we plan to. Do targeted mailings of brochures as well as sending email messages when possible on monthly basis to all new businesses registered in the state’s business license database. Buying names and email addresses gleaned from state and provincial databases. $55 mo = $660.00 Printing brochures $800.00 Mailing brochures $650.00 Total targeted mailing expenses. $2110.00 Place monthly ad in Start Up North America. a business journal for new U.S and Canadian companies page ad $240 month months $2880.00 Start up Expenses Office setup
$2 year Marketing $5 year Other expenses servers $7 year Salaries $37 year
Research and development Other $1 year Total Start up Expenses $52 782.00 year Start up Assets Needed Cash Balance on Starting Date $25 000.00 Start up Inventory
$7 000.00 Other Current Assets Total Current Assets $7 000.00 Long term Assets Total Assets $7 000.00 Total Requirements
$52 782.00 year Funding Investment Investor Bank $10 000.00 Investor Private $7 500.00
Investor Savings $7 500.00 Total Investment $25 000.00 Current Liabilities Accounts Payable Current Borrowing $10 000.00
Other Current Liabilities Current Liabilities $10 000.00 Long term Liabilities $10 000.00 Total Liabilities $10 000.00
Loss at Start up $15 000.00 Total Capital $25 000.00 Total Capital and Liabilities $25 000.00 The following chart outlines the break even analysis for QW Host. Break even Analysis. Monthly Units Break even
500 basic hosting accounts Monthly Revenue Break even $1 250.00 Assumptions. Average Per Unit Revenue $2.50 Average Per Unit Variable Cost $0.00