Top Digital Marketing Financial Models
Digital marketing or online marketing is the promotion of products or services using digital technologies. You can use it to attract new customers, motivate current customers to make repeat purchases, and strengthen customer loyalty. Looking at the innumerable opportunities with digital marketing, we will discuss the value of a Digital Marketing Financial Model in this article.
But let’s try to grasp the concept of digital marketing a little more.
Mainly, there are three main activities that the entire digital market revolves around:
- Producing content
- Promoting content
- Analyzing results to improve the content
Then what is content?
Content is anything that people can consume.
It could be in the form of an article, blog post, infographic, video, image or presentation. The primary purpose of content is to provide value to the reader, viewer, listener or consumer. And when you’re able to do that effectively, you’re well on your way to succeeding with digital marketing.
This article has gathered all the essentials of starting your own digital marketing business from scratch. You will get to know effective financial planning strategies. In addition, we’ve discussed the importance of a business plan and marketing KPIs.
1. Content Marketing | Digital Marketing Financial Model in Excel
For many companies, marketing can be viewed as an expense or cost. However, this is far from the truth. Many big brands can invest in advertising because they know that their investment will yield a high return on investment (ROI). Content marketing isn’t about increasing revenue. It’s about customer utility and satisfaction through personalization. To do this well, you need data to conduct a meaningful analysis of people’s preferences and understand how to engage with your audience more effectively.
Here is how you can start your own content marketing business.
Understand What Makes a Good Content Marketer
Before starting a content marketing business, you must first understand what it takes to be a good content marketer. Content marketers are responsible for creating, publishing, and distributing content relevant to their audience.
The best content marketers are experts at understanding their audience and creating valuable and relevant content. They also know how to promote their content in a way that will reach their target audience.
Narrow Down Your Niche
When starting a content marketing business, the first step you should take is to narrow down your niche. You want to become an authority within your niche, not just another marketer.
Once you’ve found your target audience, think about what exactly makes them tick. What problems are they trying to solve? Your goal should be to help them solve their issues with the information you publish on your blog or website.
Become an Expert in Your Niche
Content marketers need to understand their audience and the challenges they face daily. Content marketers can’t produce effective content unless they know their target audiences’ needs and motivations.
Even if some of these needs seem obvious, it still pays to conduct thorough research. The end product of your research should be a list of problems that you can solve through the content you create for your blog or website.
Grow an Audience
Building an audience is one of the most important aspects of starting a content marketing business. This audience will become your primary source of income, so you need to understand them inside and out.
There are several ways to attract people to view your content, including social media, email outreach, influencer marketing, paid ads, etc. Once you’ve attracted customers to read your blog or visit your website regularly, they’ll become familiar with who you are and what topics you write about.
Get a Digital Marketing Financial Model from Oak Business Consultant
A Digital Marketing Financial Model is essential for starting this business. It will allow you to determine whether or not your business idea is viable.
There are several ways to create a financial model for your business, including through spreadsheets and accounting software like QuickBooks. But we would like to save you all the hassle. This is why we have already prepared a specific content marketing business financial model.
2. Social Media Marketing Agency | Digital Marketing Financial Model
Starting your own social media marketing agency can be a very lucrative business venture. However, you need to consider a few important things before starting out. Here you will find some of the most important aspects of starting your own social media marketing agency.
Identify Your Services
First, you’ll need to decide what services you want to offer. Some of the most popular services include social media management, content creation, and online reputation management. An excellent way to decide between these services is to understand your strengths and weaknesses. Once you know what you are good at and what you enjoy doing, you can better focus your services.
Areas of Expertise
Which social media platforms are you already familiar with? Which ones do you enjoy using most? Are there any sites or apps you have used extensively in the past? If so, these are ideal platforms for you. You can focus on optimizing these channels and use them as a “test group” to add new features and test out changes before moving on to other areas. When starting, it’s always best to stick with what you know. This way, there will be less room for mistakes and errors down the road, which could cost you a lot in the long term.
Develop a Marketing Strategy
Third, you’ll need to develop a viable marketing strategy. This strategy should include both online and offline marketing efforts. Online marketing efforts should include things like SEO, social media marketing, and email marketing. Offline marketing efforts should include things like print ads, direct mail, and TV commercials. By using a mix of online and offline marketing strategies, you’ll be able to reach more potential customers.
Goals and Objectives
What kind of goals do you want to achieve with your social media marketing agency? Do you want to increase brand awareness, drive website traffic, or generate leads? Once you know your goals, it will be easier to develop specific objectives that can help you achieve those goals. Without clear objectives, it will be difficult to track your progress and determine whether or not your efforts are successful.
Get a Digital Marketing Financial Model
Strong financial planning is the key to a successful business. You’ll need to create a financial model that outlines your estimated expenses and revenues. This will help you determine whether or not your business is viable. Also how much money you can expect to make. You can even hire an interim CFO for this purpose. It’s important to be realistic with your assumptions. But doing all this sounds like no easy job. This is where our team of financial experts comes in. They have prepared a specific Digital Marketing Financial Model for you. This is the only social media marketing agency financial model you will need.
3. Transcription Services | Digital Marketing Financial Model Excel Template
So, you’ve decided to start your own transcription services business. That’s great! But before you get started, there are a few things you need to know. Here are all the essential aspects of starting and running a transcription services business.
Narrow Down the Niche/Service Type
First, you need to decide what type of transcription services you want to offer. There are three main types of transcription: audio, video, and text. Audio and video transcription is the most common type. That’s why our primary focus is on audio and video transcription.
Next, you need to determine your business model. The three most common models regarding this business are
- Individual freelancer
- Virtual assistant
- Full-fledged transcription services company
Once you’ve decided what type of transcription services business you want to run and have chosen a business model, it’s time to determine the scope.
Setting the Scope
What types of files will your service transcribe? For example, will you do closed captioning or subtitles? Will you transcribe music or medical records as well as dialogue from videos and interviews? These factors will help determine which equipment you need, how much training is required, what price range is acceptable for your business, etc. So, think deeply about the scope before going forward with this business.
Evaluate Ease of Acquisition
Now that we know what type of transcription services business we want to start, it’s time to look at the competitive landscape. How easy is it to find people who can do the transcription work? If you’re starting an audio and video transcription services business, you’ll need to find skilled people in both transcription and video/audio editing. The good news is that such people are relatively easy to find. The bad news is that they won’t come cheap. You can expect to pay around $25-50 per hour for quality transcribers.
You must have a strong marketing plan for your transcription services business. If you go with an individual freelancer model, you’ll have to find customers independently. That means the first few customers will be difficult to land, but finding more should become more manageable.
If you choose the virtual assistant model, someone else will do most of the work for you. You can either go with a recruitment agency or hire somebody to serve as your front-facing virtual assistant who advertises your services and manages incoming orders. Or, there are CFO services out there where you can get all the expertise in one package.
Finally, marketing efforts will need to be much broader for full-fledged transcription services companies that employ several people working from home. You’ll need to focus on online marketing, such as finding influential people and engaging them in a social media campaign to help promote your business.
Getting a Financial Model
Before putting your transcription services business up, the digital business financial model is the most important thing you need to consider. It will be difficult to start such a business without any pre-existing funds. You’ll need those funds to pay for transcription equipment, training, and setting your marketing KPIs. In addition, the first few orders from customers until your business starts making enough money that it has a positive cash flow. This is where Oak Business Consultant comes in. We have already prepared a financial model for your transcription services business. This financial model will save all your financial planning efforts by taking all the guesswork out of the process.
4. Dropshipping | Digital Marketing Financial Model in Excel
Dropshipping is a business model in which eCommerce entrepreneurs sell products without carrying any inventory. Instead, when a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s door. Dropshipping apps like Oberlo let you add products from various suppliers into your shop to fuel your product offering.
Drop shipping is the perfect business model for new eCommerce entrepreneurs. It’s simple to set up and manage, and it doesn’t require a large up-front investment. You can also run your dropshipping business in your spare time – you don’t need to quit your job to start a successful store.
Choose a Niche Market
When starting a dropshipping business, your first step is to choose a niche market and find suppliers. If you already have experience in an industry you’re interested in, this process will be straightforward. Otherwise, we recommend learning about different industries and developing ideas for products and services to sell online.
Dropshipping Opportunities: How do You Find One?
The best place to start looking for drop shipping opportunities is on wholesalers’ websites or manufacturers of products similar to what you want to sell. You can also find drop shipping opportunities by doing a simple Google search for “dropshipping suppliers.” Once you find a supplier, read their terms of service and ensure that they are a reputable company.
Marketing Your Dropshipping Business
Once your store is set up, you need to start marketing it. The best way to market your dropshipping business is to use digital marketing channels like Facebook Ads, Instagram Ads, and Google AdWords. Paid traffic is the best way to generate sales quickly, but you can also market your store organically on social media and blogs once it’s set up. If you don’t want to put in the time and effort to learn how to do digital marketing manually, you can sign up for a managed service like Sendlane that will handle everything for you.
Getting a Financial Model for Your Dropshipping Business
One of the most important aspects of starting a business is ensuring a financial model to ensure your business is sustainable. When starting a dropshipping business, it’s important to remember that you will likely have to invest money in marketing to generate sales. You also need to make sure you are pricing your products at a point where you can make a profit. If you’re not sure about all this, here is a ready-made dropshipping business financial model for you. Our financial experts have put together a detailed model that you can use to calculate your costs, profits, and more.
5. Mobile App Development Agency | Digital Marketing Financial Model Excel Template
Mobile apps have all sorts of uses, from entertainment and productivity applications to news apps that keep people up-to-date. As you might expect, businesses want an app for many reasons. It could be a way to reach out to customers, encourage loyalty and increase sales. But above all else, an app is one of the most efficient ways for a business to add value to its operations or improve productivity.
That’s why many businesses want their own mobile applications. There were more than 218 billion app downloads from Google Play in 2020 alone. That means that the demand for quality apps has never been higher than now. If you’re interested in launching your own app development agency, read on to learn how you can start it.
Master the App Development
Even if you plan to run the agency as an owner and not develop any apps, you will still have to learn app development yourself. The reason is simple. You would want to know exactly how to provide valuable services to your customers.
You can start by learning basic concepts, including user interface design guidelines, human-computer interactions and simple programming languages.
Market Before Launching
Before launching a mobile app development agency, you should make sure that there’s enough demand for the service in your area. Start with friends or colleagues who might know about opportunities. There is always a weak tie who can prove to be a hub of opportunities. You can also advertise locally to see if people are interested in hiring an app development agency.
The Value Proposition
Ensure that your mobile app development agency has a compelling value proposition for prospective clients. Identify what they might want from an agency and how you would provide those services better than the competition. To find out what your market wants, you must do extensive market research. Talk to potential clients directly or create surveys so you can ask questions easily online. As a mobile app development agency, understanding the end-user is key in providing a valuable service.
Get a Financial Model Template
A financial model helps you plan all the expenses, revenue and potential risks of launching a mobile app development agency. To start, determine your budget (including costs like office space, employees and equipment). Then, estimate your expected revenue over time based on how many clients you can acquire. And if it sounds intricate, you can always come to Oak Business Consultant. We have already prepared an app development agency financial model. This financial model excel template will guide you as you plan for your agency.
6. Content Management Software | Digital Marketing Financial Model
A content management software agency serves clients by:
- Creating custom websites based on their needs
- Applying updates with the technical knowledge
- Maintaining existing sites well
- Managing large amounts of content efficiently and more
There is a vast scope in this area with a huge potential for customers and revenue.
Starting a content management agency involves careful planning and consideration of all the right factors to be successful.
When starting a business, entrepreneurs typically put a lot of thought into how they will compete in their market, who they will target as end-users or customers, what sets them apart from their competitors, feasibility study to see if the idea is actually viable before investing time and resources into it etc.
The increasing number of websites has led to a steady increase in demand for people capable of building customized sites every day.
If you are interested in starting your own content marketing software agency, here is what you need to do.
Decide a Niche
Deciding a niche for your content management software agency is important for starting this business. You can determine a niche based on several factors such as market growth, the scope for customers, competition etc.
For example, you could choose to focus on one particular aspect of CMS development, such as e-commerce or blogging, instead of trying to become an all-rounder from the beginning.
Identify Your Target Market and Customer Segments
Before starting a business venture, it is necessary to identify your target customer base. You also need to analyze their needs in detail to provide them with better service. It is also important to decide whether you want to build your clientele through referrals or cold calling.
Evaluate Potential Customers’ Needs and Wants
By gaining a thorough understanding of your customers, it becomes easier to find the right angle for promoting your services. You can do this by finding out what they are missing in their current service, how you can improve on that service, and more.
Determine What You Can Offer Them That Your Competitors Cannot
Customers often look for one particular type of CMS solution; if you can offer them something unique along with the product they need, then you stand a better chance of winning their business away from competitors.
For example, if most other options offer off-the-shelf products, you can offer them a customized solution to suit their specific needs.
Establish Pricing and Packages (Financial Modelling)
There is no fixed formula for pricing your services and packages. You can set your own rates based on what you think is feasible and marketable. But you need to factor in the cost of development per hour and other expenses such as office space rental, electricity bills, software licenses etc. when deciding on this aspect of starting a business venture. If all this sounds way too complicated, Oak Business Consultant has got you covered. Our financial experts have already prepared a detailed financial model template in excel for content management software that you can use to make your work easier.
7. Transactional VOD Services | Digital Marketing Financial Model
Transactional VOD services sell videos for download-to-own or play that is then available for streaming through rented or purchased downloads. For example, when you purchase a movie from Apple or Amazon, they will often be available for streaming via iTunes and Amazon Prime. Transactional VOD is also sometimes referred to as electronic sell-through (EST).
Transactional VOD platforms allow viewers instant access to the latest movies and TV shows in their library. Because the content is downloaded, people can also stream them to various devices. With the recent growth in digital content and online streaming services, Transactional VOD has become an increasingly popular option for consumers and businesses looking to start their own service.
Deciding On A Niche
Before you start your own transactional video on-demand service, you need to decide on a niche. This means deciding what videos or movies you want your service to sell or rent. For example, you might choose a niche based on genre (action films, romcoms), by preferred viewing platform (Apple TV vs. Amazon Firestick), or by price point (cheap rentals vs. premium purchases). Once you have chosen a niche, you must stick with it. This will help you stay focused and establish a reputation for within your niche.
It’s imperative to conduct thorough market research about your competitors so that you can plan your own strategy accordingly. Some popular transactional VOD services include iTunes Store from Apple, Google Play from Google, Amazon Instant Video from Amazon, Steam from Valve Corporation, PlayStation Store from Sony Interactive Entertainment Inc., Xbox Game Store from Microsoft Corporation and Vudu from Walmart Inc.
Analyzing your competitors will allow you to pinpoint their strengths and weaknesses, as well as how they market themselves. You can then use that information to develop a strategy for your own business.
For example, many significant competitors offer rentals at the same price point of $4.99 to $5.99 a pop when pricing. For a consumer looking for a cheap rental, this seems like a reasonable deal until you realize that each rental lasts only 24 hours, after which it must be rented again unless bought outright. This means that if you’re renting from one of these competitors at full price every time your movie expires, you could potentially end up spending much more than if you simply bought the movie outright.
Marketing Your Service
Once you’ve determined your niche, develop compelling marketing messages that distinguish your service from the competition. Consider what makes your business unique and how you can position yourself as an authority in this industry.
To estimate your required budget for starting a transactional video-on-demand service, you need to do some financial modeling. This means studying what it takes to run this business. This way, you can identify the costs and revenue sources needed to make it successful.
With this information in hand, you’ll be able to draft up an initial budget for how much money you need and where exactly the funding will come from. But you don’t need to worry about a financial model template at all. Oak Business Consultant has got your back. We have prepared the specific financial model for transactional video-on-demand service for you. This financial model covers the main costs involved with starting this business and the revenue sources needed to make it successful.
8. Influencer Marketing Software | Digital Marketing Financial Model Excel Template
Influencer marketing uses social media personalities to reach potential customers. The term “influence” refers to the degree of impact a celebrity can have on people’s perceptions. Influencers refer to anyone who can express their opinion and influence others (e.g. YouTubers, Instagram models)
Influencers leverage their vast audience and a larger following by promoting brands and products to increase sales, raise brand awareness, and boost engagement in hopes that they will earn a commission from sales generated directly from them or an affiliate link in their description.
If you are looking to start an influencer marketing software business, there are several things to consider before you get started.
Since most influencer marketers will likely use Snapchat and Instagram, it would be important to focus on one platform to provide better support. After choosing a specific platform to focus on, start researching your competitors in this industry.
Consider making the service accessible but with limitations such as a limited number of posts or followers until they upgrade their account. This freemium model is good for startups looking for initial traction because it allows consumers to see the benefits of buying into your software without feeling like they wasted their time or money trying out your product if they were not satisfied. If you plan to have a subscription-based model, think about creating a tiered pricing structure. However, make sure your product can offer more value for a higher price point to justify the increase of cost since you will be losing out on potential customers who cannot afford to spend as much.
In this industry, advertisers and influencers work with each other on a business-to-business basis. You need to establish your company’s credibility and become a middleman between these two parties if you plan on making this an affiliate marketing agency. Networking is essential in influencer marketing because it increases your chances of finding clients looking for help with their campaigns since they need software support and someone with experience within the field.
For those starting an influencer marketing service to fine-tune your niche, research your competitors, determine your platform, create a revenue model, and develop relationships with influencers.
Digital Marketing Financial Model
It is important to determine what your startup’s expenses will be, including web development, initial inventory for the system, marketing costs, and any other branches of the business you plan on opening to support influencer marketing. It is equally important to set a realistic vision of how much money you expect your business to make and keep track of all revenue and expenses each month with detailed financial reports. This is where Oak Business Consultant comes in. We have business consultants who are experts in financial modeling for startups. And they have prepared this financial model for influencer marketing software service. This financial model will take care of your startup’s financial planning. By following this model, you will be able to maintain the sustainable growth of your company.
9. Customer Engagement Software | Digital Marketing Financial Model
Customer engagement software service is a type of software service that helps organizations improve customer engagement. All companies want to keep their customers happy. However, without the right tools in place, they may struggle. This means that there are endless opportunities for new businesses looking to get into this space.
When starting your own company selling customer engagement software, it is important to carry out market research to gain insight into what features the market demands and how big the potential market size is. Once these areas have been identified, it becomes less daunting knowing where to start and what skills to master.
Narrowing Down a Niche
When starting any type of customer engagement software business, it is important first to determine the best niche market for this venture. Ask yourself these questions: Is there already an established market? What demographic do I want my product to serve? How big is this community? Your answers should inform the next steps in starting your business.
It’s important to remember that you will be competing for your target audience with already established brands and entrepreneurs with most customer engagement software businesses. Researching competitors and how possible it is to provide a superior product or service can help with decision-making processes when it comes time to build out the venture.
A successful customer engagement software service needs to be marketed and promoted well. It is important to think about how your target customers will discover you, what marketing strategy you plan on using, and what messaging is most appealing for this demographic. No two businesses are the same, so it’s crucial to pick strategies that align with your business goals and values.
It’s essential when starting any business to do some financial modeling in excel. Even if you’re bootstrapping — because knowing how much money needs to be raised and whether there’s a viable market size can help keep up the momentum during the early stages of building out the venture. Additionally, it can be helpful to make a financial projection for three to five years and then update your numbers each quarter. So, without any further ado, here is what you need – a specific financial model for a customer engagement software start-up.
10. Online SEO Services Start-up | Digital Marketing Financial Model
Online SEO services are a great way to use your technical knowledge and analytical skills to help businesses grow their online presence. If you’re thinking of starting up an SEO service business, you need to consider the following aspects before taking the plunge.
Understanding the Niche Market
The niche market is something that needs careful consideration when starting anything new. If you select a narrow niche, it’s unlikely you’ll find enough people interested in what your service offers. However, if you go too broad, there is also likely not enough demand for what you offer. You should pick a specific niche to gain the most success with your start-up. For example, if you love sports and happen to be a baseball expert, it might be difficult to attract customers looking for SEO services in only that niche. Instead, focus on local businesses that cater to the sports industry. That way, you will have a large pool of potential customers who want SEO services.
Before setting up an online business, the first thing you should do is research the competition. There are many companies with full portfolios offering industry-specific SEO services. Therefore, it’s important to make sure your start-up can deliver what larger businesses offer at a cheaper price point. If you find that the niche market is already saturated with competition, look for another smaller niche or one where many companies only provide fundamental services.
Larger companies have resources that you can take advantage of to help your business stand out from the crowd. For example, you might consider what keywords they are targeting to determine what potential customers are typing into search engines. You can also look at their website’s code or other SEO characteristics to learn how they structure their backlinks. This information will give your start-up a competitive edge when it comes to offering more comprehensive SEO services for clients who care about the same things as larger businesses do.
Mastering the Skill Set
Starting up an online SEO service business isn’t easy. You might be tempted to use cheap labor and do the job yourself to save on operating costs. However, it would be best if you mastered white hat SEO techniques before offering anything to customers. That way, you can offer a wider range of services at a high standard.
Once your start-up has gone live, and you’re ready to accumulate clients, it’s important to know how much money this customer base will generate for your business each month. You would want to cover any expenses and salaries involved in running your business with ease. This is where you can make the most of a financial model template. Oak Business Consultant’s financial experts have already done all the hard work for you. We have the perfect financial model for SEO services start-ups. All you need to do is get this financial model today and start your business like a professional.
11. Online Freelancer Platform | Digital Marketing Financial Model
Starting an online freelancer platform can be very profitable, but it is no simple task. Before launching, there are many things to consider, like deciding on a niche, conducting proper market research and competitor analysis, and creating financial models.
We will walk you through the essential steps in starting an online freelancer marketplace. Let’s get started!
First of all, there are two main types of platforms.
1) A generalist marketplace where users sell their services along with other user-generated products (a bit like Amazon).
2) A job board where employers post workers’ profiles to apply for specific jobs. This type of platform is more akin to Monster or LinkedIn.
A generalist platform might be more profitable, but a job board is easier to operate.
Let’s discuss some of the things you’ll need to consider during your market research:
1. What is the size of your potential market?
For example, Fiverr targets web designers, translators, and other freelance professionals with limited budgets, whereas Upwork addresses a wider audience, including bigger companies looking for larger projects.
2. Who are the main players in the industry already?
Which platforms have been successful thus far, or which ones are on their way out? You can find this information by researching Google Trends and Google Keyword Planner. It might be hard to compete with established platforms, so it’s important to know whether they have been around for more than five years before launching.
3. How much are people willing to spend on your service?
This might seem like an obvious question, but it’s actually quite important. Platforms like Fiverr offer services that cost just $5, which means they target users who simply want a task completed fast and cheaply. Upwork, on the other hand, allows high-budget projects but charges more in commission. In addition, its freelancers often work for hire on bigger projects (with 70%+ job budgets) than Fiverr’s freelancers (closer to 30%). This proves that the market has different expectations of what it wants from its freelancer platform.
4. What channels will you use for marketing?
There are many ways you can spread the word about your website:
– Social media marketing
– Search engine marketing
– Content marketing
– Offline ads and promotions
Social media is great for starting conversations and distributing content related to your niche. However, building up a community that will support your brand takes time. Therefore, it might be more beneficial to invest in search engines or content marketing first. That way, you can establish an online presence before investing in social media strategies.
5. What types of features will set you apart from competitors?
Now that we’ve covered some important aspects of market research like market size, existing competition, and marketing channels, let’s talk about features.
Communication tools allow for more efficient collaboration between sellers and buyers. Platforms often charge either a fixed fee or a percentage of each transaction in commission. Most platforms offer payment protection to ensure the seller gets paid after finishing a project. There are also additional security measures like escrow accounts that hold onto the funds until both parties are satisfied with the project’s outcome. Usually, when you set up an account on these platforms, your earnings are tied to your profile until you withdraw them yourself. This protects against fraud and scammers who might try to make money disappear before receiving their commission.
6. How will you do the financial planning?
Platforms like Fiverr and Upwork earn money by charging a fee (either a fixed rate or percentage of each transaction) from buyers or sellers, so your revenue will be similar. However, if you have more expenses than income, it means you’ll have to either raise fees or lower costs to keep them at a level that allows you to continue operating. This is the reason we suggest using a professionally prepared financial model template. We have prepared a specific financial model for online freelancer platforms. It has everything you need to start your business successfully.
12. SVOD Service Business | Digital Marketing Financial Model
Video streaming services are big business, with market research showing that there were 338 million subscriptions to SVOD services in the US in 2021. The numbers are expected to grow to 450 million by 2026. The proliferation of mobile devices and tablets has allowed people to watch content on the go. It can be difficult for emerging companies in any field to compete against established players. However, a new service provider can enter this dynamic marketplace if they know what fills a niche or offers improved services over their competitors.
Starting an SVOD service business can be daunting but also extremely rewarding. Whether you are looking to get into the video streaming market yourself or want to expand your existing movie rental business to include subscription services, there are a few things that you need to consider.
Decide on a Niche
The first thing that any new start-up needs to do is to decide exactly what they want their company focus to be. It can be difficult to enter the market and compete with established players who already have millions of subscribers. Unfortunately, the video streaming industry has no shortage of companies competing for customers’ time and money. Therefore, it’s important to find a way to add value to your potential customer base. If you know your competition well, it should be easy to identify gaps in what they offer and how they provide it.
Market research is a crucial aspect of starting any business. You need to know exactly how much potential customers will be willing to pay for a subscription and what kind of content they want on the platform. This information can help you decide whether you should offer one type of plan periodically or make more sense to offer different levels with different price points.
Start by listing out the current competitors in your target market and how each of them provides their SVOD services compared to yours:
– How many screens per month does the service allow users?
– What types of content are available on each platform?
– What devices is the service available on?
– How does billing work for this type of service?
Look at how many active users each competitor has and what kind of revenue they bring in. This will give you an idea about your potential market share. You can then use that data to decide whether or not it makes sense to get into this particular industry.
It isn’t easy to go ahead with any business project without knowing exactly how much money you will make. There are no hard and fast rules here, but financial modeling helps you come up with a number that makes sense. It will be based on the input variables like initial capital investment, operating costs, customer acquisition costs, subscription rates, etc. This is where you can make the most of a financial model template. We have prepared a financial model for the SVOD services business with all the essentials covered.
13. Video Agency | Digital Marketing Financial Model
Starting a video agency can be rewarding, but it does require some work. Learn the steps you need to take to get started by exploring this guide.
A video agency is essentially a business that tracks down companies who want to make videos and connects them with the best people for the job. The company may also manage the entire process of making the video.
Video agencies might choose their client base carefully to ensure that they are compatible with each other or provide services that anyone could benefit from. Video agencies range in size, dealing with anywhere between two to two hundred clients at once. Working for one involves everything from scriptwriting and editing footage to recording voiceovers and designing websites. Some larger agencies might maintain an in-house staff.
Choosing the Right Business Model
Depending on which business model you choose, your work might involve a wide range of tasks. For example, some agencies focus on making and producing videos. They leave the marketing and editing to outside companies. Others may only work with smaller clients while reserving more complex projects for larger agencies. Still, others specialize in creating adverts or putting together promotional websites.
Choosing the right business model depends largely on where your interests lie. There are several options available to any entrepreneur who wants to start this kind of business:
Undoubtedly the most lucrative option. Advertising agencies focus exclusively on video production for major corporations or products associated with television ads. The agency usually takes care of everything from brainstorming sessions to casting to post-production services.
It would help if you had the necessary connections to start this business. Otherwise, finding clients will be a major hurdle. Moreover, advertising agencies only make money when their client does well. As a result, you may face heavy competition from other agencies in your field. In addition, if you are not particularly creative yourself, running an agency may feel frustrating for you.
Video Production Firms
These companies focus on producing videos for smaller businesses and individual clients. This can be very lucrative, but it is significantly riskier than other options because you’re less likely to clinch a corporate deal with a business owner or non-profit organization. Finally, while this option does allow creativity and independence that’s often missing from advertising agencies, video production firms still need to handle the knotty tasks of selling and marketing their videos, which is not always easy.
Video Production Franchises
Establishing a franchise for a popular company can also be an excellent idea. In this case, you would give up some independence in exchange for greater support from those who have already been successful with video production agencies. For example, VidPro has negotiated discounts from suppliers and tips on how to deal with clients that your local franchise might not know about. This option also allows you to sell a tested product that’s sure to be popular without having to worry too much about business development or marketing strategies.
Be prepared to deal with a lot of administrative work. When you first start, your best bet is to hire a secretary or two to handle the legally required paperwork and other mundane tasks that come with running a business. You will need a dedicated space for your office as well. If you’re the sort who prefers working at home, do not be tempted by this option because it can end up being chaotic.
Assembling your team might seem like an overwhelming task initially, but don’t panic because there are plenty of individuals looking for jobs in this field. Post ads offering interns, assistants and intermediaries (people who scout potential clients) commissions for bringing in new business. The more you have in place, the faster your business will grow.
While many video agencies rely on hourly rates, this can be an uncertain way to make money. For example, if the project is more complex than you anticipated or your client adds new requirements in mid-stream, you may end up making less money than expected. Instead, consider fixing the price of each video you produce while charging a percentage (between 5% and 20%, depending on how complicated the work is) of every sale your company makes for its clients. This guarantees that both parties benefit more from working together since they do not need to worry about extra fees or unexpected changes to schedules.
To do this effectively, you need a financial model template. A template that should have three key elements:
- Cash inflows
- Net Cash Flow
But having more than this in a financial model template will make it all smooth for you. And this is where Oak Business Consultant comes in. We have a team of financial marketing consultants who have been providing this service for a long time. And we have prepared this specific template for you. A complete and specific financial model for video agencies.
14. Graphic Design Agency | Digital Marketing Financial Model
Starting a graphic design agency can prove to be extremely rewarding. It is one of the most profitable and scalable businesses that you can choose in today’s world. If you think this line of work is up your alley, then it’s time for you to learn how to start a graphic designing agency.
Choosing A Business Model
Mentioned below are some business models for your graphic designing agency:
Graphic Design Consultancy
If you are a leader in this field and have garnered experience by working with top-notch companies, then starting a consultancy makes sense. You can be the top gun for various clients who need specific services such as logo design, brochure design etc. Your past experiences will prove to be an asset. You can also start a design division within an existing company by leveraging your expertise and experience.
An outsourcing option, freelancing will strategize your cash flow and ensure that there is never a break in income. It also comes with its own set of challenges as you need to be highly experienced and connected due to the competitive nature of your line of work.
This type of business is suited for people who love being hands-on and involved. It makes sense to have a great bunch of designers working for you as this will ensure that your clients get high-quality services time after time. The fixed costs associated with starting a studio are high. Therefore, it is imperative that you find the right location.
Business Process Outsourcing
If you are a small player in this field but have the core competencies to offer specific services such as design outsourcing, logo design etc., then starting your own BPO makes perfect sense. You will gain access to clients who are looking for these services. It is also a cost-efficient business model due to the low set-up costs.
Starting Up Your Graphic Designing Agency
While every business requires a sound knowledge of finance and a good grip, you will need to have a competent grasp of design as well. With more and more businesses looking for innovative ways to promote their products and services, the scope of this sector is immense. It is also important to realize that starting up a graphic designing agency requires hard work and patience. So, if you are ready for it, let’s start with how do you start a graphic design business.
One of the first things that you should consider before starting your own business is the kind of clients you want to work with. Picking up projects that can be done in-house will ensure that your team is productive. You can also start marketing yourself among brands and companies in your niche.
You will need to be visible online in order to get clients for your business. A website can be the perfect platform to showcase your creative works along with the services that you offer at an affordable price point. Social networking sites will also be a big draw for you.
Digital Marketing Financial Model
There are multiple options available when it comes to raising the capital required for your business idea. It is possible to fund your new venture through your savings or take up loans from banks or other financial institutions. You can also look at alternate avenues such as crowdfunding, angel investors etc. But for any method, you will require professional cash-flow projection. This is only possible with a meticulously prepared financial model template. And for that, you don’t need to go anywhere else. Because we have already done all the hard work for you. Here is your financial model for a graphic designing agency. While you have a look at this template, be assured, it will cover every aspect you need to get started.
15. Website Designing Agency | Digital Marketing Financial Model
A website designing agency is a business that aims to provide internet connectivity solutions and services such as web design, service desk support, software licensing, IT security systems and many more.
There are three major business models for setting up a website designing agency:
1. Website Design & Development Model:
Under this model, companies outsource their website designing and development work to an agency. This business model has many benefits for the companies that include cost-effectiveness, high-quality solutions, and fast turnaround times.
2. Managed Services Model:
This model provides services such as software development, IT security consulting, general IT management, and website design and development tasks. Under this model, companies hire employees of an agency for their internal needs. A managed services model is suitable for companies that have medium-level IT needs.
3. Reseller Model:
This business model involves selling third-party products and services like website design templates, web hosting solutions, and software to end customers. Under this model, the agency acts as a reseller of third-party products, though it also has to undertake marketing, sales and distribution activities.
The following are the most crucial steps in starting a website designing agency:
Do thorough research on your niche’s current market size and potential growth opportunities. You can conduct primary or secondary research to gather more information about the industry you want to enter into a business venture.
Business Model Design
Design a business model that is highly profitable and sustainable through online channels and offline channels. Here, you must conduct a SWOT analysis and draw up a business roadmap that comprises all the marketing and financial strategies to be adopted by your website designing agency.
Formation of an Agency
Formulate an expert team of professionals to run your business. Ensure that members have requisite abilities and expertise in respective fields such as website designing, content writing and software development. Hire employees that work well as a team and provide excellent customer support services to clients.
Design a portfolio of products and services with a complete focus on core competencies and target market segments. Ensure that the products and services meet customer demands but do not overlap each other.
Marketing and Promotion
Start by building a website and offering services to clients locally. Then, promote your business through social media platforms, forums and online communities. Finally, engage with prospective customers and develop a brand image that is highly beneficial for attracting more clients worldwide.
Financial Model Template
Get a financial model that covers your initial startup costs, future expenses and other investments required to run the business. The model should include monthly expenditures, projected revenues and capital raised for financing the website designing agency’s future growth. But where do you get one? Right here at Oak Business Consultant! We have prepared a financial model template for your business. This is a specifically designed financial model for website designing agencies. You can utilize this financial model template and adjust your assumptions according to your own business.
16. E-commerce Website | Digital Marketing Financial Model
Ecommerce websites have gained a lot of momentum over the past few years. Just 15 years back, it was considered an anomaly for some e-retailers to make more than $1 billion in sales per year. Today, however, the industry has grown rapidly. As a result, companies like Amazon and Alibaba (two major players in this industry) are on track to close their fiscal year with revenues exceeding $100 billion.
It is no wonder then that investors and entrepreneurs alike are starting new Ecommerce start-ups every other day. While the prospects look good, many beginners are inhibited by general misconceptions about the eCommerce business. Ecommerce websites are often considered similar in nature, but in reality, each business is unique in its own way. These businesses have different business models and strategies that work best for them.
All you need for this kind of online enterprise is:
- A website tailored to your customers’ needs
- An easy-to-navigate user interface
- Fast processing speed
- Reliable customer support when customers have issues with shopping or payments
Amazon Case Study
Let us consider the case of Amazon when it started as an eCommerce business. Jeff Bezos wanted to create an online bookstore that would offer a greater selection than traditional bookstores. Another goal was to make this store available to everyone, thus creating a virtual bookstore with reduced overhead and time delay.
Bezos had to ensure that the website satisfied its customers’ needs to achieve this objective. So it started by selling books online for as much as 45% below their list prices. This helped it compete with traditional bookstores and increase sales volume without compromising profit margins.
The next step was to make the products easily available, even for those who did not own credit cards or were uncomfortable buying from websites. Amazon offered different payment options such as cheques, money orders, cash on delivery etc., giving value-conscious buyers a variety of choices when they shopped at its store. To handle these payments quickly and efficiently, Amazon also created an automated system to mail customers a bill, and they paid by mailing in checks.
Finally, Bezos focused on providing personalized customer service. He expanded the product selection to include rare and critically acclaimed books while keeping existing bestsellers in stock. This gave Amazon significant attractions for online shoppers that traditional bookstores did not have.
As you can see, creating an eCommerce website is not just about having a business idea or making something to sell online; it’s about understanding your audience so well that every aspect of your site caters to their specific needs.
To better understand what you should do when starting this business, let us discuss the five essential stages required for building an e-commerce website.
Narrowing Down Niche
The first stage is to pick a niche and product line. For example, as discussed above, Bezos started selling books because there was a huge demand for them online. Thus it allowed him to compete with traditional bookstores.
A new eCommerce business does not need to start as an Amazon or Alibaba. You only have to focus on your niche and carve out a niche market. And if you’re starting, picking such a niche is extremely important as it helps determine the success of your business.
You can choose either an existing market or create a new one. For example, Facebook started as a social networking site for college students to keep in touch with their friends while studying away from home. The founders saw this as a great opportunity because college students had no social media site. As they say, where there is a need, there is a business.
After identifying your product and niche, it’s time to do competitor analysis. That way, you can better understand the strengths and weaknesses of your competitors so that you can work on enhancing your own offering. You should also find out what your customers want from the products currently available in the market so that you have something unique to offer them.
You can also use data mining tools such as Google Analytics to know how people are using each website of a particular industry or niche so that you can improve yours accordingly.
Include fixed and variable expenses, profits, cash flow projections, break-even analysis and all the important assumptions. Then you can have a clear idea of the costs involved in starting this business. In addition to these factors, also include any additional fees such as licensing, taxes etc., which would vary from state to state or country to country. But the best financial model is already here for you. Oak Business Consultant brings you just the right financial model template. This financial model for an eCommerce website has everything you need to start your own business like a professional.
Who is Oak Business Consultant?
We have been in the financial industry, helping SMEs, for decades. Our team of financial experts has helped hundreds of businesses grow into the empire they are today. So, why not take full advantage of our experience? We can provide you with just the right financial model templates and an in-depth consultancy process that will help you get on your feet faster than ever before.