Web3-Based Digital Media Platform Business Plan, Financial Model, and Pitch Deck – Case Study

Background

This case study is about a digital media company under the NFT framework based in Japan that wanted to use our business plan services. They provide news and reporting on the mainstream and emerging world of NFTs, Metaverse, Decentralization, Crypto, and Blockchain. The client wanted us to prepare the financial model, Web3-Based Digital Media Platform business plan, and pitch deck to acquire the investment.

Challenges

The company provides professional media and marketing services which form the basis of revenue structure. The news agency and educational platform serve the purpose of increasing traffic and website visibility. The challenges were to enhance visibility. Being a service-providing industry, defining revenue streams was challenging.

Other challenges are to cope with the security issues and the authenticity of the news and to identify the unrealized potential of rising technologies, i.e., WEB3, Metaverse, NFTs, Blockchain, and Crypto.

Our business plan for the Web3-Based Digital Media Platform also determined our client’s tokenomics and equity distribution strategy based on market research. We also considered the legal requirements. As per Japanese regulations, Security Tokens are regulated under the Financial Instruments and Exchange Act, which demands proper disclosure of issuers and token holders.

Solution

The Oak Business Consultant utilized its sagacious business and financial expertise and determined our client’s needs. We identified organic visitors of major competitors and set them as benchmarks for TAM, SAM, and SOM analysis. In addition, we developed the pricing strategy in a way to gain a competitive advantage over other digital media channels. 

The Web3-Based Digital Media Platform’s business plan addresses the issues of transparency and authenticity. So, we formulated the trust-building approach by approaching influencers and well-known investors and proposed the blockchain-based security policy.

Business Highlights

The company’s vision and mission are focused on providing genuine and authentic news to educate and bring awareness to the readers.

The prevailing data shows that the target market should be people aged 18 – 34. Moreover, the classification related to investment in NFTs between upper or lower-income groups does not offer any discrepancy.

The risks involved in the business include volatility, media-hyping situations, negative news, scams, hacks, and technological errors.

A few of the services (revenue and non-revenue generating) our client provides are:

– News

– NFT Collections

– Press Release

– Interviews, Web Stories

– Expert Alliance

– Events

– Educational Platforms

SWOT Analysis

The company’s strengths involve an educational platform, online courses and affiliations, publications, and credible information. Their strengths also provide a competitive edge over mainstream competitors. The weaknesses may involve the lack of presence on socializing websites and direct interaction with the visitors.

There is a huge potential and an opportunity to expand market share, adopt new technology and increase expert alliance. However, the threat of high competition and rapid technological advancement will always exist in the market, for which the company has to determine a sustainable strategy.

We have made the competitor’s application/features comparative analysis in this NFT marketplace proposal for the better provision of clients’ services.

Marketing Strategy

The marketing strategy formulated for the Web3-Based Digital Media Platform Business Plan consists of diversified techniques and channels to capture the market share. A few of these include content marketing, SEO, visibility on social media platforms, physical events and exhibitions, educational seminars, and customer retention strategies.

Tokenomics

The study of parameters determines the characteristics of crypto or cryptographic tokens to create economic value. Our client plans to launch Equity Tokens to build trust and enhance stakeholders’ loyalty. The tokens will be distributed among investors, employees, and community members.

Financial Highlights 

1. Input Assumptions

We developed the NFT Studio business plan assumptions considering the B2B model. Being a digital platform, the most significant expenses are allocated to marketing. Assumptions include customer growth rate, employee payrolls, operating costs, and benchmark estimations.

2. Revenue Analysis

Based on the sustainable business environment and already having a good marketing reputation, we have forecasted a 616% growth in revenue for the next five years. And 584% growth in the number of customers. The rapid growth indicates the boom in crypto, decentralization, and blockchain.

3. Financial Statements

The company statements show a negative net profit margin for the first two years. Solely because of fewer leads generated. But predicts a sudden rise of more than 60% from the third year because of increasing marketing campaigns and increasing leads.

4. Breakeven Analysis

The company will probably achieve breakeven in its third year while the variable cost remains nearly the same for the five-year forecast.

5. Company Valuation

We have calculated the company’s net value by keeping the two scenarios in mind. First, the principal investor will provide continuous funding until the business becomes profitable. Second, the principal investor will only provide the financing initially. And will require further investment from other channels for the following years.

In both cases, the NPV of the company will remain almost the same. But obviously, the equity share will decrease in the second scenario. 

Pitch Deck:

A pitch deck is a presentation deck we use to pitch your idea or company to any number of audiences, generally investors. We also developed a  pitch deck with an NFT Studio business plan for our client to acquire investors. An attractive and appealing presentation catches an eye, so we have utilized the latest applications and tools to enhance visibility. And mentioned the crucial operational and financial factors for positive image creation.

Conclusion

The digital media platform has a lot of potential growth in the future. While Blockchain technology is gaining strength day by day, a well-crafted business plan for blockchain is a must to make profound development in the industry. Digital media has already built trust among the people, and they are inclined to digitalize their lives.

Oak Business Consultant makes businesses stand out and perform exceptionally well. We go through a deep analysis of market research and financial forecasting. Additionally, we consider every aspect of the company to give our clients a critical viewpoint in developing their journey.