Professional social network business plan
The relevance of research
Online communication has always existed, but only now it has reached a qualitatively new level, moving from chat rooms, local forums and thematic sites to mass communities where most average Internet users spend tens, if not hundreds of hours.
Today, the Internet is the best means of finding a job. Its main advantage is the regular updating of the database of vacancies posted on the Web. This makes it possible to send a resume to the employer immediately after a vacancy appears, which significantly increases the chances of successful employment and saves time.
Social networks, thematic forums, blogs are popular today as a job search. In addition to a quick response to a vacancy, they provide an opportunity to leave a comment, communicate with the employer directly, i.e. there is a possibility of feedback. At the same time, representatives of different professions use the Internet to communicate with specialists in similar areas to exchange experiences.
Content
Project Summary
1. Relevance of the project
2. Marketing research of the social networks market
2.1. Overview of the social media market
2.1.1. General information about social network
2.1.2. Development of social networks abroad
2.1.3. The Development of Social Media in India
2.1.4. Gender specifics in social media in India
2.2 India Social Media Market Competitive Landscape Analysis
2.3 Social Media Market Pricing Analysis in India
3.Marketing plan
3.1. Marketing strategy
3.2. Enterprise business model
3.3. Assortment and pricing policy
3.4. advertising and promotion
3.5 SWOT Analysis
4. Organizational plan
4.1 Location of the establishment. Stages of project implementation
4.2 Organizational structure and staffing
4.3 Legal, tax and information support of the project
5. Production plan
5.1. Main characteristics of production
5.2. Calculation of the cost of fixed assets
5.3. Calculation of the cost of direct costs
5.4. Working capital
6. Financial plan
6.1. Key financial plan assumptions
6.2. Project financing
6.3. Sales analysis
6.4. Analysis of the structure of direct costs
6.5. Analysis of the structure of general and administrative costs
6.6. Analysis of the structure of tax payments
6.7. Loan service analysis
6.8. Analysis of the structure of the total cost
6.9. Financial results of the project
6.10. Cash flow statement
6.11. Dynamics of working capital
6.12. Discount rate calculation
6.13. Investment efficiency indicators
6.14. Break even analysis
6.15. Sensitivity analysis
6.16. Conclusions on the feasibility of the project
7. Risk Analysis
7.1. Description and ways to minimize risks
7.2. Project risk profile
An excerpt from a business plan
1. Relevance of the project
Indian professionals do not have enough choice of Internet resources where the specialized “public” gathers. Today, for these purposes, either wide-ranging Odnoklassniki, Vkontakte, Facebook, My Circle are used, which in the process of development are replenished with an audience, including potential employees and managers recruiting staff. Rare social networks for specialists are either underdeveloped or highly specialized.
...
2. Marketing research of the social networks market
2.1. Overview of the social media market
2.1.1. General information about social networks
2.1.2 Development of social networks abroad
Today, more and more people around the world are becoming active users of social networks. According to the Global Digital Statshot for 2017, prepared by We Are Social and Hootsuite, the number of social network users in the world exceeded 3 billion, despite the fact that there are 7,524 billion people on the planet.
The march on the Internet social networks began in 1995 with the American portal Classmates.com (“Odnoklassniki” is its Indian counterpart). The project turned out to be very successful, which in the next few years provoked the emergence of more than a dozen similar services. But the official beginning of the social networking boom is considered to be 2003-2004, when LinkedIn, MySpace and Facebook were launched.
2.1.3 Development of social media in India
The fashion for social networks came to India in 2006, i.e. two years later after their appearance abroad. Today, according to HootSuite, India ranks 24th in the world in terms of the number of active social media accounts.
2.1.4. Features of the behavior of Indian Internet users of professional social networks
Chart 1. Reasons for using the Internet by Indian Internet users by gender in 2016, %
2.2. Analysis of the competitive environment in the Indian social media market
Social networks of a wide profile.
1. Vkontakte.
Created October 10, 2006. This is the largest social network in Runet (Indian-speaking Internet), the first most popular site in Belarus, one of the most popular in India, Ukraine, and Kazakhstan. The resource initially positioned itself as a social network for students and graduates of Indian universities, but later began to call itself ""a modern, fast and aesthetic way to communicate online."" According to statistics from the LiveInternet service, as of February 1, 2018, the daily audience of VKontakte is more than 83 million people.
2.3. Price analysis of the social media market in India
The planned social network should enable users to enjoy both virtual communication on the network and live meetings if they live in the same region / city, make friends and create interest groups, share their photos, participate in contests, polls and social network voting, receive products of partner brands of the network for testing.
For the most accurate and reasonably priced implementation of all these features in one site, it is necessary to study the market for existing services for the development of social networks.
3.Marketing plan
3.1 Marketing strategy
The mission of the company is to create one of the best platforms in the Indian Internet segment for career and business development and advanced training of Indian-speaking professionals, the main domestic online platform for brainstorming, crowdsourcing, employment and talent search.
...
3.2. Enterprise business model
Business Description:
The concept of the project is a media platform (social network) that satisfies the needs of users on the basis of paid and free services, implements advertising concepts of third-party organizations and acts as an intermediary in the sale of specialized goods to interested users.
The project involves making a profit from…
3.3. Assortment and pricing policy
The main sources of income for the social network are planned to be the following: ...
3.4. Advertising and promotion
The advertising model of the project implies the possibility for interested organizations to implement targeted marketing and PR projects by ...
3.5.SWOT analysis
4. Organizational plan
4.1. Location of the enterprise. Stages of project implementation
The location of the enterprise in India is of no key importance.
The complex of organizational measures for the implementation of the project contains 3 stages - preparatory, investment and operational.
4.2. Organizational structure and staffing
To save money at the project launch stage, …
4.3. Legal, tax and information support of the project
The project plans to carry out its activities in the form of a Limited Liability Company.
5. Production plan
5.1. Main characteristics of production
The scheme of the social network assumes the possibility of the absence of an office at the initial stage. It is inexpedient to pay rent unless there is any substantial income. Each participant has the opportunity to work remotely.
5.2. Calculation of the cost of fixed assets
6. Financial plan
6.1. Key financial plan assumptions
The financial plan of the project is based on the following assumptions: ...
6.2 Project financing
The main share in financing is occupied by expenses for …
6.3. Sales analysis
The average capacity utilization in the second year of the project after its launch and the start of promotion in the third year is expected to be at the level of …
Sales dynamics for the period 2019-2030 shown in the following diagram.
Diagram 5. Sales volume in monetary terms in 2019-2030, thousand Rs.
6.4. Analysis of the structure of direct costs
In the structure of direct costs, the largest share falls on the wages of service personnel.
Diagram 6. Structure of direct costs, %
6.5 Analysis of the structure of general and administrative costs
In the structure of general and administrative costs, the largest share falls on …
...
6.6. Analysis of the structure of tax payments
The total accrued taxes in the year the project reaches its maximum capacity will amount to … thousand Rs.
Diagram 8. Analysis of the structure of tax payments, %
6.7. Loan service analysis
The loan is attracted for a period of 3 years, with an interest rate of …% …
6.8. Analysis of the structure of the total cost
The structure of the total cost is dominated by personnel costs, and material costs due to the lack of a production process occupy the most insignificant part in the cost structure of the project.
6.9. Financial results of the project
The total net proceeds from the implementation of the project in 2019-2030 will be … thousand Rs., …
Diagram 11. Financial results in 2019-2030, thousand Rs.
Diagram 12. Project profitability indicators in 2019-2030, %
6.10. Cash flow statement
The total net cash flow for 2019-2030 will be … thousand Rs.
6.11. Dynamics of working capital
The dynamics of working capital on the example of the period from 2019 to 2030 of the project implementation is indicated in the following diagram. The superiority of current liabilities is due to the presence of credit in the absence of production activity.
Diagram 15. Dynamics of working capital in 2018-2029, thousand Rs.
6.12. Discount rate calculation
When calculating performance indicators, cash flows are discounted ...
6.13. Investment efficiency indicators
Net present income. …
Diagram 16. NPV profile of the project, thousand Rs.
Payback period.
Payback period РВ (Payback period) - the period from the beginning of the project until the payback of the project. At the same time, the “payback moment” is understood as the earliest period (month) of the project, starting from which the total net income exceeds the total investment. To calculate the payback period, the following ratio is used ...
Diagram 17. Payback of the project, thousand Rs.
6.14. Break even analysis
Break-even analysis is a tool for managing enterprise costs. The ultimate goal is to maximize profits.
6.15. Sensitivity analysis
Sensitivity analysis consists in assessing the impact of changing the initial parameters of the project on its final characteristics, which are usually used as the internal rate of return or NPV.
6.16. Conclusions on the feasibility of the project
In general, the project is characterized by a high level of investment efficiency, has a high NPV and IRR, which is indicative of Internet projects, due to the active promotion of the product, the payback period is 2,7 years. Based on the results of the financial and economic analysis of the project, a conclusion was made about the feasibility of its implementation.
7. Risk Analysis
7.1. Description and ways to minimize risks
Risks are the possibility of obtaining a result that is different from the expected, adverse development of the situation or incurring losses in the course of performing certain activities. Risk is always associated with the occurrence of potentially undesirable or worsening events.
7.2 Project risk profile
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