Digital Marketing Agency Business Plan
Overview
54 & Cloudy, a brand new digital marketing agency, was established by Tom and Stephen who are industry veterans with more than twenty years of combined experience managing ecommerce sites, working for digital agencies and helping small businesses achieve their digital growth goals.
While 54 & Cloudy has been operating as a small consultancy for the past two years, it is now looking to raise some funding and become a full-service digital marketing agency that will need to purchase technology assets and ramp up hiring to meet client demands. Additionally, once the 54 & Cloudy ramps up their marketing efforts, there will be a need for internal resources to manage all the new clients that they will onboard.
54 & Cloudy, initially, will operate remotely with resources that span various functional areas of business such as Search Engine Optimization (« SEO »), Conversion rate Optimization (“CROâ€)), paid advertising (including on social media), aswell as contractors who support auxiliary revenue streams (e.g. content writing and design).
54 & Cloudy has the potential to become one of the most trusted digital agencies in the sector due to its reputation and plans to build a unique technology solution that will provide meaningful value for clients. 54 & Cloudy has built a strong reputation in the market and is well-positioned to continue that success. 54 & Cloudy can increase staffing and expand its service offerings to meet client requirements.
Service Offerings
After completing their fundraising, 54 & Cloudy will expand their operations to four main revenue streams:
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Search Engine Optimization
- SEO services include link building, keyword targeting, technical SEO and SEO strategy development.
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Paid Advertising
- Includes full-service PPC marketing efforts, including search engine advertising, paid shopping ads, display ads, paid social media ads, retargeting, and more
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Conversion Rate Optimization
- eCommerce CRO Services will run thousands of AB test across a variety eCommerce platforms with the aim of driving sales. 54 & Cloudy is a team made up UX analysts and psychological professionals. This will allow clients to grow their customer lifetime value and increase their average order.
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Copywriting & Design Services
- Industrious content writers and designers that are able to translate the voice and tone from a client’s business into conversion-driving copy and rich, engaging design.
Expectations
Finance is required
54 & Cloudy, a long-standing success story in the industry, will seek an SBA loan amounting $300,000 to fund initial startup technology costs. This will also cover initial cash flow needs. 54 & Cloudy ramps down customer acquisition and operates at a loss for the first year.
Forecast
DMA expects strong growth over the next five year due to industry growth. 54 & Cloudy plans to develop a new technology platform 54 & Cloudy. This will allow them to continue servicing existing clients, while gaining additional wallet shares with their existing services. 54 & Cloudy hopes that this will make them a one-stop-shop in digital marketing. Across the company, 54 & Cloudy is projecting to ramp up meaningfully after securing their debt capital and hiring several resources to achieve 2023 revenue of $2,535,009, which will grow to $12.6 million by 2026. EBITDA is expected to grow from $738526 at the end of 2023, to $5.115,174 at the end of 2026.