Sample Web Site Plan

January, 2000
This sample Web plan has been made available to users of Web Strategy
Pro, website planning software published by Palo Alto Software. Our
sample plans were developed by existing companies or new business
start-ups as research instruments to determine market viability or
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changed, and substantial portions of text may have been omitted to
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You are welcome to use this plan as a starting point to create your own,
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Copyright Palo Alto Software, Inc., 2000
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by

__________ in this Web plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of __________.
It is acknowledged by reader that information to be furnished in this Web
plan is in all respects confidential in nature, other than information which is in
the public domain through other means and that any disclosure or use of
same by reader, may cause serious harm or damage to __________.
Upon request, this document is to be immediately returned to __________.
___________________
Signature
___________________
Date
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Name (typed or printed)
This is a website business plan. It does not imply an offering of securities.
Table Of Contents
1.0
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2
Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2.0
Market Analysis Summary . . . . . . .

2.1
Market Segmentation . . . . . .
2.2
Website Demographics Strategy .
2.2.1 Market Needs . . . .
2.2.2 Market Trends . . . .
2.2.3 Market Growth . . . .
2.3
Industry Analysis . . . . . . . .
2.3.1 Industry Participants .
2.3.2 Internet Presence . . .
2.3.3 Competition and Buying
3.0
Website
3.1
3.2
3.3
3.4
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Site Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Traffic Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Development Requirements . . . . . . . . . . . . . . . . . . . . . . . 7
3.4.1 Front End . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.4.2 Back End . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.4.3 Resource Requirements . . . . . . . . . . . . . . . . . . . . 8
3.4.4 Future Development . . . . . . . . . . . . . . . . . . . . . 9
3.4.5 Milestones . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.0
Strategy
4.1
4.2
4.3
4.4
4.5
and Implementation Summary

Competitive Edge . . . . . . . .
Website Marketing Strategy . . .
Online Sales Strategy . . . . . .
Online Sales Forecast . . . . . .
Strategic Internet Alliances . . . .
5.0
Financial Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.1
Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.2
Expense and Contributions . . . . . . . . . . . . . . . . . . . . . . . 14
6.0
Controls
6.1
6.2
6.3
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Organizational Implications .
Risks and Assumptions . . .
Contingency Plan . . . . .
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.2
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. 11
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. 12
. 13
. 16
. 16
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. 16
Zenith Consulting
1.0 Executive Summary
Zenith Consulting will be formed as a consulting company that specializes in online marketing,
focusing on helping Internet companies set up online distribution programs. Its founders are
former Internet producers and online marketers who worked at well-known brand-name Internet
companies, launching and promoting successful online distribution programs. They are founding
Zenith to formalize the consulting services they offer.
Highlights
$1,400,000
$1,200,000
$1,000,000
Sales
$800,000
Gross
$600,000
Contribution
$400,000
$200,000
$0
2001
2002
2003
1.1 Objectives
1.
2.
3.
Capture 100 qualified consulting client leads.

Establish a proposal acceptance rate at 30%.
Bill four $10,000 projects per month by the end of the first year.
1.2 Keys to Success

1.
2.
3.
Excellence in fulfilling the promise -- completely confidential, reliable, trustworthy expertise

and information.
Developing visibility to generate new business leads.
Leveraging from a single pool of expertise into multiple revenue generating opportunities:
retainer consulting, Internet-production consulting, online-market research and published
reports.
This sample plan produced in Web Strategy Pro software. www.paloalto.com 1-800-229-7526
Page 1
Zenith Consulting
2.0 Market Analysis Summary
Zenith Consulting will cater to start-up and established dot-coms that are trying to expand their
online distribution. Dot-coms have come to terms with the fact that marketing and online
distribution needs to happen with strong, well-implemented online marketing programs, and not
just by throwing millions of Venture Capital (VC) money to traditional offline campaigns like TV
advertising.
2.1 Market Segmentation

1.
Well funded dot-coms: our most important market segment is the privately held start-up
dot-com, such as the thousands found in the Silicon Valley. These companies will be calling
on Zenith for development of their online distribution plans, as well as for help in
determining the best online-affinity-marketing program for their business.
2.
Medium-sized growth public dot-coms: particularly in community and commerce, and some
content sites, Zenith will offer expertise in developing targeted affiliate and viral online
marketing programs to more established dot-coms that are looking to take advantage of
the power of the Web, and not spend as much money in traditional offline marketing.
Market Analysis (Pie)
Well-funded local
Public local
All other
Table 2.1: Market Analysis

Market Analysis
Potential Customers
Well-funded local
Public local
All other
Total
Growth
25%
15%
20%
20.65%
2001
1,500
1,000
2,500
5,000
2002
1,875
1,150
3,000
6,025
2003
2,344
1,323
3,600
7,267
2004
2,930
1,521
4,320
8,771
2005
3,663
1,749
5,184
10,596
CAGR
25.01%
15.00%
20.00%
20.65%
Page 2
Zenith Consulting
2.2 Website Demographics Strategy
Zenith Consulting is focused on dot-coms with good private funding (VC and Angel funding) as well
as established public dot-coms.
Private start-up dot-coms, and public dot-coms who want to stay above the rest of their crowded
space, have realized that the best way to succeed in marketing online is to have targeted affiliate
programs with good customer follow-up, and perks for being a customer/user. Start-ups in todays
marketplace can no longer afford to blow millions of dollars in offline marketing campaigns, and
instead have realized that the best way to succeed online is to do it by harnessing the word-ofmouth power of the Web.
2.2.1 Market Needs

Our target dot-coms are dependent on hiring good people with Internet knowledge. Because of the
relative youth of the Internet industry, finding Web savvy people to hire, with significant Web
experience, is close to impossible.
They need to move very quickly to keep ahead of their competition, and to draw the necessary
buzz required to take their companies to the next level: acquisition or IPO.
Key to the success of Internet business is the ability to bring targeted users and buyers to the dotcoms website. Whether they are trying to create a community of niche users, or sell products to
them, they have no use for untargeted traffic that visits the website one time - and never returns.
They are looking to implement online distribution and marketing programs that bring them the
most lasting bang for their buck.
They want to implement programs that focus on their target market, and that once built, start
growing exponentially, generating more users and more visibility and brand identity as the
program gets recognized and accepted by their users and community members.
Zenith Consulting has the expertise and Internet knowledge based on actual experience working
on and implementing programs at various dot-coms that the target market dot-coms need. Real
expertise based on real work experience.
2.2.2 Market Trends

One important trend is the greater focus on online distribution. Although offline marketing is still
important, dot-coms are realizing that offline marketing has its place once the dot-com is fairly
well established online. If the online community, that the dot-coms are targeting, does not know
about the dot-coms service, then trying to advertise and gain credibility in the offline world has
limited success.
Another important trend is towards setting up online affinity and affiliate programs (sometimes
referred to as viral programs). Amazon.com brings in more then 30% of its revenue thorough
the success of their associates program. Now think about the last time that you saw an
Amazon.com commercial on TV. Dot-coms are following Amazon.coms Internet distribution
strategy and realizing that they need to get a solid business online within the online community.
Page 3
Zenith Consulting
2.2.3 Market Growth
The market for dot-coms in the community, content and commerce area has been growing at
approximately 200% per year during the last three years, according to a study by Online Research
published earlier this year.
It is harder to gauge the more important growth rate, which would be the growth in Internet
marketing consulting. John Doe, an expert in online marketing-related consulting, estimated the
growth in focused online marketing consulting at 75% per year, according to a report published in
the San Jose Chronicle.
In our market analysis, we suggest growth in the number of potential customers between 6% and
7% per year.
2.3 Industry Analysis

The consulting business consists of thousands of smaller consulting organizations and individual
consultants for every one of the few dozen well-known companies.
Consulting participants range from major international name-brand consultants to tens of
thousands of individuals. One of Zenith's challenges will be establishing itself as a "real" consulting
company, positioned as a relatively risk-free dot-com purchase.
2.3.1 Industry Participants

At the highest level are the few established major names in Internet consulting. Most of these are
organized as partnerships established in major online markets such as the Silicon Valley, New York
City, Boston, and Seattle, linked together by interconnecting directors and sharing the name and
corporate wisdom. Some evolved from management consulting companies (e.g. Marchfirst) and
some from Web design firms (IXL). These companies charge very high rates for consulting, and
maintain relatively high overhead structures and fulfillment structures based on partners selling
and junior associates fulfilling.
At the intermediate level are some function-specific or market-specific consultants, such as the
market research firms (Forrester, Zona).
There are hundreds of small to medium-sized consulting firms that have yet to prove their
expertise. The industry is ripe for a few consulting firms with real Internet start-up veterans to
help dot-coms realize their full online potential on the Web.
Page 4
Zenith Consulting
2.3.2 Internet Presence
In the online marketing, and online program implementation space, having an Internet presence is
a MUST.
All other competitor firms have online sites, trying to sell their services and expertise to all the dotcoms in their area.
It is very important for Zenith Consulting to develop a website that immediately shows expertise in
the online distribution area. The main selling point for Zenith Consulting is experienced and
seasoned dot-com experts. The Zenith website must relay all of these ideas and experience to the
potential dot-com client.
2.3.3 Competition and Buying Patterns

The key element in purchase decisions made at the Zenith client level is trust in the professional
reputation, reliability of the consulting firm, and expertise based on real experience in the dot-com
world.
Pricing of projects and billing rates are surprisingly variable. In consulting at this level, it is easier
to be priced too low than too high. Clients and potential clients expect to pay substantial fees for
the best quality professional advice, especially if they can get their hands on a consultant who has
been there, done that in a real dot-com. The nature of the billing, however, is sensitive. Clients
are much more likely to be offended when a job starts at $20K and ends up at $30K because of
overruns, than if the same job started at $30K or even $35K.
Clients rarely compare consultants directly, looking for two, or more, possible providers of a
proposed project or job. Usually they follow word-of-mouth recommendations and either go for the
job or not, rather than selecting from a menu of possible providers. It is very important to capture
word-of-mouth, and relay to potential clients the real world Internet experience held by the
consultants at Zenith.
The most important element of general competition, by far, is what it takes to keep clients for
repeat business. It is worth making huge concessions in any single project to maintain a client
relationship that brings the client back for the future projects.
3.0 Website Strategy

The Zenith Consulting website will be the virtual business card and portfolio for the company, as
well as its online home.
It will showcase the Internet background of the Zenith consultants, as well as the portfolio of all
the past and current online projects done by Zenith Consulting.
The Zenith Consulting website needs to be a simple yet classy and well designed website that, at
the same time, is in keeping with the latest trends in user interface design. A site that is too flashy,
or tries to use too much of the latest Shockwave of Flash technology can be over done, and cause
potential clients to look elsewhere for online distribution expertise.
To further show off its expertise, the Zenith website should create a resources area, offering
articles, research and weekly newsletters to interested parties. Eventually a program to show off
the viral online marketing (a new-fangled business plan buzzword for what is essentially word-ofmouth) expertise would also be very beneficial.
Page 5
Zenith Consulting
The key to the website strategy will be combining a well designed front end (what you see
onscreen (the part of the software you interact with)), with a back end (software that runs on a
network server (behind the scenes)) capable of recording leads and proposal requests, as well as
running Zeniths own viral online marketing program.
3.1 Business Model

Our business model is based on the number of billable projects we get from clients. Because we
are in the business of online consulting a website is a MUST. It creates a virtual online portfolio for
Zenith Consulting.
Because the site is also intended to increase word-of-mouth and awareness, we are building the
website with an impeccable front end that demonstrates the consultants dot-com expertise.
Our model requires giving our clients an excellent implementation plan, to increase the success
rate of online distribution programs we help dot-coms create.
3.2 Site Positioning

The Zenith Consulting positioning statement is as follows:
For the dot-com who is struggling to create a strong online marketing and distribution strategy,
Zenith Consulting provides real dot-com start-up experience and Web savvy with proven success
stories of programs created and implement for successful dot-coms.
3.3 Traffic Forecast

For Zenith Consulting the most important traffic measurement is page views as related to users
filling out the proposal request form.
We will measure page views on each separate page that we serve (About Us, Resources, Services,
Contact Us, and Proposal Request Form) in order to determine which page, or sequence of pages,
prompts users to fill in a proposal request form.
As we expand our resources and research offerings, we will also want to measure how many users
download our research reports, and how many users sign up for our newsletter. This area of the
site will take time to develop, but will serve to measure the word-of-mouth and brand identity that
Zenith Consulting builds within the Internet consulting industry.
Page 6
Zenith Consulting
Traffic Forecast Yearly
300,000
250,000
User Sessions
200,000
Page Views
Leads/calls per page view
150,000
Leads/calls generated
100,000
Closerate per call/lead

Engagements
50,000
0
2001
2002
2003
Table 3.3: Traffic Forecast

Traffic Forecast
Website Traffic
User Sessions
Page Views
Engagements
Total
2001
23,823
95,292
0
95
4
30
119,244
2002
45,000
180,000
0
180
0
54
225,234
2003
65,000
260,000
0
260
0
78
325,338
3.4 Development Requirements

The Zenith website will be initially developed with few technical resources. A simple hosting
provider, Yahoo! Web services, will host the site and provide the technical back end.
Zenith will work with a contracted user interface designer to develop the simple, classy, yet
Internet focused site. The user interface designer will work with a graphic artist to come up with
the website logo, and the website graphics.
The maintenance of the site will be done by the Zenith consultants themselves. As the website rolls
out future development such as newsletters and downloadable market research reports, a
technical resource may need to be contracted to build the trackable download and the newsletter
capabilities. Zenith can also look into pre-packaged solutions through Yahoo! Web hosting.
Page 7
Zenith Consulting
3.4.1 Front End
For Zenith Consulting the user interface (UI) design of the website is a key to the success of the
company. The UI needs to:
1.
2.
3.
4.
Have a clear and easy to use navigation scheme.

Fast loading non-graphic intensive pages. Busy dot-com executives do not have time to
wait for fancy diagrams or flashy shockwaves.
Easy to find, impeccably designed Success Stories area, which showcases the current and
past programs implemented by Zenith.
Lead generation form. Contact Zenith with a request for a proposal.
3.4.2 Back End

Back End Features:
1.
2.
3.
4.
Web hosting with 99.99% uptime. Will be provided by Yahoo! Web Services.
Statistics to determine page views, users, and number of people who have accessed the
Request for Proposal Form. Will initially be provided by Yahoo! Web Services.
Request for Proposal Form linked to an access database to track potential clients. This will
be provided by an outsourced programmer. Form needs to track:
ISP where user is submitting form.
Users vital information (email, company name, type of business).
Type of project, timeframe for project.
Whether project can be done off-site or needs to be done on-site.
Ability to easily FTP (File Transfer Protocol) new documents to website from anywhere.
Yahoo! Web Services provides FTP access from anywhere.
3.4.3 Resource Requirements

Zenith will need the following resources to complete their website:
1.
2.
3.
4.
5.
6.
One user interface designer (80 hours at $100 per hour).

One graphic designer for logo and all graphical elements (80 hours at $100 per hour).
One HTML (Hyper- Text Markup Language) Web developer to code all the HTML pages (40
hours at $60 per hour).
One technical CGI/PERL programmer to write the scripts for the request for proposal form
(25 hours at $100 per hour).
One ongoing Web developer to keep the website maintained (half-time - ongoing).
Three PCs at $3,000 each plus networking and related equipment ($9,000).
Page 8
Zenith Consulting
Start-up
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Expenses
Assets
Table 3.4.3: Start-up

Start-up Plan
Start-up Expenses
Graphic interface design
Graphic logo design
HTML programming
CGI/Perl
Expensed equipment
Other
Total Start-up Expense
$8,000
$8,000
$2,400
$2,500
$9,000
$1,000
$30,900
Start-up Assets Needed

Computer equipment
Software
Other
Total Related Assets
$1,000
$500
$1,000
$2,500
3.4.4 Future Development

After initial implementation of the Zenith website, future development will be based on resources
and business needs.
Phase II of the website will include:
1.
2.
3.
4.
Online viral program to show the power online programs have in action on the Zenith
website.
An online marketing forum.
A weekly online marketing newsletter to all clients.
Downloadable market research reports available online for purchase.
Page 9
Zenith Consulting
3.4.5 Milestones
The accompanying table lists important project milestones, with dates and people in charge, and
budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
What the table doesn't show is the commitment behind it. Our Web plan includes complete
provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the
variance and course corrections.
Milestones
Initial market analysis
tial web scope document
Interface Design
Graphic design and logo
HTML programming
CGI/Perl programming
Review and revisions

Jul
Aug
Sep
Oct
Nov
Dec
Jan
Table 3.4.5: Milestones

Milestones
Milestone
Initial market analysis
Initial web scope document
Interface Design
Graphic design and logo
HTML programming
CGI/Perl programming
Review and revisions
Totals
Plan
Start Date
6/15/00
7/15/00
8/1/00
8/31/00
8/1/00
10/1/00
10/16/00
End Date
7/15/00
8/1/00
8/31/00
9/30/00
10/15/00
10/15/00
1/15/01
Budget
$2,000
$1,000
$8,000
$8,000
$2,400
$2,500
$5,000
$28,900
Manager
Leslie
Terry
Vendor
Vendor
Vendor
Vendor
Leslie
Department
Marketing
Websites
Websites
Websites
Marketing
Marketing
Marketing
Page 10
Zenith Consulting
4.0 Strategy and Implementation Summary
Zenith will focus on three Internet markets, community, content, and commerce dot-coms.
Services will focus on online distribution and the creation of online affiliate and affinity programs.
The target customer is usually a CEO, VP of Online Marketing, or VP/ Director of Production in a
private well-funded dot-com, or a publicly traded dot-com.
Zeniths value proposition is consultants with real world dot-com experience. We are people who
have been there.
4.1 Competitive Edge

We start with a critical competitive edge: there is no competitor we know of that can claim near as
much specific expertise on the problems and opportunities of developing online distribution
programs. We have been in the middle of Internet start-ups, and worked to create successful
programs that are in existence today.
Our positioning on this point is very hard to match, but only if we maintain this focus in our
strategy, marketing, business development, and fulfillment. We should be aware that the tendency
to dilute this expertise with more generalized consulting work could weaken the importance of our
competitive edge.
4.2 Website Marketing Strategy

Marketing in a high-end Internet consulting business depends on recognition for expertise. It starts
with our known contacts in positions to recommend us, and continues with long-term efforts to
develop recognition in professional forums.
We will develop and maintain a database of people in the right positions. It starts with the contacts
we bring in as we start the business. From there we add inquiries and participants in online forums
and seminars about the hottest online distribution topics, and newsletter subscribers. We use the
database to make regular contact with email notices for additional forums and seminars, possibly
group studies and market research reports.
4.3 Online Sales Strategy

In our business, sales are defined as client service. It is repeat business. One doesn't sell an
Internet consulting project, one develops a proposal that works for the client.
Word-of-mouth for our services, based on good client relationships and networking will make sales
for Zenith. For the best online sales strategy, the most important factor is up-to-date information
on the Zenith website, with clear and well-presented Success Stories to help close the deal with a
potential client.
Page 11
Zenith Consulting
4.4 Online Sales Forecast
The following table and chart give a run-down on forecasted sales. We expect sales to increase at
a rate of 1% per month for the first few months.
Early on there will be a lot of sales time devoted to gaining new customers. The first six months of
the Zenith business will be spent mainly getting proposals to clients, and building awareness to
bring in future clients.
At the end of the first year we expect to be billing an average of four projects per month at
$10,000 per project.
Sales by Year
$1,400,000
$1,200,000
$1,000,000
$800,000
Engagements
Other
$600,000
$400,000
$200,000
$0
2001
2002
2003
Page 12
Zenith Consulting
Table 4.4: Sales Forecast

Sales Forecast
Unit Sales
Engagements
Other
Total Unit Sales
2001
30
31
61
2002
54
35
89
2003
78
40
118
Unit Prices
Engagements
Other
2001
$10,000.00
$1,000.00
2002
$12,000.00
$1,250.00
2003
$15,000.00
$1,500.00
Sales
Engagements
Other
Total Sales
$300,000
$31,000
$331,000
$648,000
$43,750
$691,750
$1,170,000
$60,000
$1,230,000
2001
$0.00
$0.00
2002
$0.00
$0.00
2003
$0.00
$0.00
2001
$0
$0
$0
2002
$0
$0
$0
2003
$0
$0
$0
Direct Unit Costs

Engagements
Other
Direct Cost of Sales
Engagements
Other
Subtotal Direct Cost of Sales
4.5 Strategic Internet Alliances

We depend on our alliance with [name omitted] Web design firm, to generate continuous leads for
our Internet consulting services.
We need to make sure that personnel, and especially ownership of [ally], is aware of our support
and reciprocation.
5.0 Financial Analysis

We want to finance the Zenith website with the clients that it helps bring in.
The Zenith website will cost Zenith an average of $1,000 a month to host and maintain.
Considering the fact that Zenith consulting can no longer exist without a website, this is a fixed
monthly cost, necessary to do business.
5.1 Break-even Analysis

The following table and chart summarize our break-even analysis. With fixed costs of $2,500 per
month at the outset (a bare minimum), we need to bill approx. $3,600 to sustain our break-even
point.
Based on our sales forecast we will be billing four projects per month at $10,000 per project by
then end of the first year. By the 12th month of business, we project we will be generating
$40,000 in revenue per month.
Page 13
Zenith Consulting
Break-even Analysis
$3,000
$2,000
$1,000
$0
($1,000)
($2,000)
($3,000)
0
1200
2400
3600
4800
6000
Monthly break-even point

Break-even point = where line intersects with 0
Table 5.1: Break-even Analysis

Break-even Analysis:
Monthly Units Break-even
Monthly Sales Break-even
3,571
$3,571
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$1.00
$0.30
$2,500
5.2 Expense and Contributions

Our projected expenses and contributions is shown on the following table, with sales increasing
from more than $331K the first year to more than a million the third, and is profitable from the
beginning.
As with the break-even, we are projecting very conservative cost of sales and gross margin. Our
cost of sales should be much lower, and gross margin higher, than in this projection. Initially, we
will depend on our partners for most of our fulfillment, which is why costs should be lower than
shown. We prefer to project conservatively so that we make sure we have enough cash.
The detailed monthly projections are included in the appendices.
Page 14
Zenith Consulting
Sales Vs. Expense Yearly
$1,400,000
$1,200,000
$1,000,000
$800,000
Sales
Expenses
$600,000
$400,000
$200,000
$0
2001
2002
2003
Table 5.2: Expense Budget

Expense Budget
Sales
Other Variable Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %
Website Expense Budget
Website development
Website infrastructure
Advertising and promotion
Expensed equipment
Expensed software
Website maintenance
Other
Total Website Expenses
Percent of Sales
Contribution Margin
Contribution Margin / Sales
2001
$331,000
$0
$0
-----------$0
$331,000
100.00%
2002
$691,750
$0
$0
-----------$0
$691,750
100.00%
2003
$1,230,000
$0
$0
-----------$0
$1,230,000
100.00%
$30,000
$6,100
$5,200
$6,000
$7,000
$4,800
$6,000
-----------$65,100
19.67%
$265,900
80.33%
$45,000
$10,000
$7,000
$12,000
$10,000
$9,600
$10,000
-----------$103,600
14.98%
$588,150
85.02%
$60,000
$15,000
$8,500
$17,000
$15,000
$20,000
$20,000
-----------$155,500
12.64%
$1,074,500
87.36%
Page 15
Zenith Consulting
6.0 Controls
Tracking and follow-up is critical to making this plan work. We will have monthly meetings to
review schedules, particularly the milestones, and establish ongoing budgets and additional
programs. The key is not to create an inflexible plan, written in stone and ignoring new
development, but to keep a live plan for which we can make course corrections as needed.
6.1 Organizational Implications

Zenith Consulting will use the expertise of its consultants to manage and maintain the Zenith
website.
Zenith will hire three outsourced experts to create the initial website, front-end templates, and
back-end forms. Once their job is completed the Zenith consultants will each be responsible for
updating a portion of the website, and keeping it maintained.
There will be an implementation schedule for PHASE II of the Zenith site, at which point there will
be a need for another outsourced technical back-end person, and a user interface designer.
All in all, the Zenith website will be fairly easy to run and maintain.
6.2 Risks and Assumptions

Zenith Consulting Risks:
1.
2.
Word-of-mouth does not get enough clients to get the business going.
The Internet industry takes a big dip in the stock market, sending many dot-coms out of
business, and reducing the need for outside consultants.
Zenith Consulting Assumptions:

1.
2.
3.
There are two clients that are ready to take on Zenith consulting services, and get the
Zenith business started.
Zenith will be able to hire the necessary resources to get the website off the ground
quickly.
Zenith has two full-time Internet veterans on board. These consultants have real world dotcom experience.
6.3 Contingency Plan

Our biggest uncertainty is the quality of design and implementation we can get by buying from
outside vendors. Our initial strategy is to depend on the first-rate outside experts whose skill level
is highest. If we end up unable to find satisfactory vendors, and we therefore have to hire and
develop in house, this will change the cost structure.
We should be prepared for this contingency with flexibility in schedule and budget. The critical
piece is that we end up with an excellent showcase website. This is more important than any other
consideration. Our website will be our first sales collateral.
Page 16
Appendix: Zenith Consulting

Table 3.3 Traffic Forecast
Traffic Forecast
Website Traffic
User Sessions
Page Views
Engagements
Total
Jan
473
1,892
0
2
0
1
2,368
Feb
503
2,012
0
2
0
1
2,518
Mar
772
3,088
0
3
0
1
3,864
Apr
1,091
4,364
0
4
0
1
5,461
May
1,753
7,012
0
7
0
2
8,774
Jun
2,489
9,956
0
10
0
3
12,458
Jul
2,268
9,072
0
9
0
3
11,352
Aug
2,146
8,584
0
9
0
3
10,742
Sep
2,580
10,320
0
10
0
3
12,914
Oct
2,955
11,820
0
12
0
4
14,791
Nov
3,176
12,704
0
13
0
4
15,897
Dec
3,617
14,468
0
14
0
4
18,104
Page 1

Table 4.4 Sales Forecast
Sales Forecast
Unit Sales
Engagements
Other
Total Unit Sales
Jan
1
1
2
Feb
1
2
3
Mar
1
2
3
Apr
1
3
4
May
2
3
5
Jun
3
2
5
Jul
3
2
5
Aug
3
2
5
Sep
3
3
6
Oct
4
3
7
Nov
4
4
8
Dec
4
4
8
Unit Prices
Engagements
Other
Jan
$10,000.00
$1,000.00
Feb
$10,000.00
$1,000.00
Mar
$10,000.00
$1,000.00
Apr
$10,000.00
$1,000.00
May
$10,000.00
$1,000.00
Jun
$10,000.00
$1,000.00
Jul
$10,000.00
$1,000.00
Aug
$10,000.00
$1,000.00
Sep
$10,000.00
$1,000.00
Oct
$10,000.00
$1,000.00
Nov
$10,000.00
$1,000.00
Dec
$10,000.00
$1,000.00
Sales
Engagements
Other
Total Sales
$10,000
$1,000
$11,000
$10,000
$2,000
$12,000
$10,000
$2,000
$12,000
$10,000
$3,000
$13,000
$20,000
$3,000
$23,000
$30,000
$2,000
$32,000
$30,000
$2,000
$32,000
$30,000
$2,000
$32,000
$30,000
$3,000
$33,000
$40,000
$3,000
$43,000
$40,000
$4,000
$44,000
$40,000
$4,000
$44,000
Jan
$0.00
$0.00
Feb
$0.00
$0.00
Mar
$0.00
$0.00
Apr
$0.00
$0.00
May
$0.00
$0.00
Jun
$0.00
$0.00
Jul
$0.00
$0.00
Aug
$0.00
$0.00
Sep
$0.00
$0.00
Oct
$0.00
$0.00
Nov
$0.00
$0.00
Dec
$0.00
$0.00
Jan
$0
$0
$0
Feb
$0
$0
$0
Mar
$0
$0
$0
Apr
$0
$0
$0
May
$0
$0
$0
Jun
$0
$0
$0
Jul
$0
$0
$0
Aug
$0
$0
$0
Sep
$0
$0
$0
Oct
$0
$0
$0
Nov
$0
$0
$0
Dec
$0
$0
$0
Direct Unit Costs

Engagements
Other
Engagements
Other
Subtotal Direct Cost of Sales
Page 2

Table 5.2 Expense Budget
Expense Budget
Sales
Other Variable Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %
Website Expense Budget
Website development
Website infrastructure
Advertising and promotion
Expensed equipment
Expensed software
Website maintenance
Other
Total Website Expenses
Percent of Sales
Contribution Margin
Contribution Margin / Sales
Jan
$11,000
$0
$0
-----------$0
$11,000
100.00%
Feb
$12,000
$0
$0
-----------$0
$12,000
100.00%
Mar
$12,000
$0
$0
-----------$0
$12,000
100.00%
Apr
$13,000
$0
$0
-----------$0
$13,000
100.00%
May
$23,000
$0
$0
-----------$0
$23,000
100.00%
Jun
$32,000
$0
$0
-----------$0
$32,000
100.00%
Jul
$32,000
$0
$0
-----------$0
$32,000
100.00%
Aug
$32,000
$0
$0
-----------$0
$32,000
100.00%
Sep
$33,000
$0
$0
-----------$0
$33,000
100.00%
Oct
$43,000
$0
$0
-----------$0
$43,000
100.00%
Nov
$44,000
$0
$0
-----------$0
$44,000
100.00%
Dec
$44,000
$0
$0
-----------$0
$44,000
100.00%
$2,500
$600
$3,000
$1,500
$3,000
$400
$500
-----------$11,500
104.55%
($500)
-4.55%
$2,500
$500
$200
$1,500
$2,000
$400
$500
-----------$7,600
63.33%
$4,400
36.67%
$2,500
$500
$200
$0
$1,000
$400
$500
-----------$5,100
42.50%
$6,900
57.50%
$2,500
$500
$200
$0
$200
$400
$500
-----------$4,300
33.08%
$8,700
66.92%
$2,500
$500
$200
$3,000
$100
$400
$500
-----------$7,200
31.30%
$15,800
68.70%
$2,500
$500
$200
$0
$100
$400
$500
-----------$4,200
13.13%
$27,800
86.88%
$2,500
$500
$200
$0
$100
$400
$500
-----------$4,200
13.13%
$27,800
86.88%
$2,500
$500
$200
$0
$100
$400
$500
-----------$4,200
13.13%
$27,800
86.88%
$2,500
$500
$200
$0
$100
$400
$500
-----------$4,200
12.73%
$28,800
87.27%
$2,500
$500
$200
$0
$100
$400
$500
-----------$4,200
9.77%
$38,800
90.23%
$2,500
$500
$200
$0
$100
$400
$500
-----------$4,200
9.55%
$39,800
90.45%
$2,500
$500
$200
$0
$100
$400
$500
-----------$4,200
9.55%
$39,800
90.45%
Page 3

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January, 2000

The undersigned reader acknowledges that the information provided by

Market Analysis Summary . . . . . . .

and Implementation Summary

Capture 100 qualified consulting client leads.

1.2 Keys to Success

Excellence in fulfilling the promise -- completely confidential, reliable, trustworthy expertise

2.1 Market Segmentation

Market Analysis (Pie)

Table 2.1: Market Analysis

2.2.1 Market Needs

2.2.2 Market Trends

2.3 Industry Analysis

2.3.1 Industry Participants

2.3.3 Competition and Buying Patterns

3.0 Website Strategy

3.1 Business Model

3.2 Site Positioning

3.3 Traffic Forecast

Traffic Forecast Yearly

Closerate per call/lead

Table 3.3: Traffic Forecast

3.4 Development Requirements

Have a clear and easy to use navigation scheme.

3.4.2 Back End

3.4.3 Resource Requirements

One user interface designer (80 hours at $100 per hour).

Table 3.4.3: Start-up

Start-up Assets Needed

3.4.4 Future Development

tial web scope document

Graphic design and logo

Review and revisions

Table 3.4.5: Milestones

4.1 Competitive Edge

4.2 Website Marketing Strategy

4.3 Online Sales Strategy

Table 4.4: Sales Forecast

Direct Unit Costs

4.5 Strategic Internet Alliances

5.0 Financial Analysis

5.1 Break-even Analysis

Monthly break-even point

Table 5.1: Break-even Analysis

5.2 Expense and Contributions

Sales Vs. Expense Yearly

Table 5.2: Expense Budget

6.1 Organizational Implications

6.2 Risks and Assumptions

Zenith Consulting Assumptions:

6.3 Contingency Plan

Appendix: Zenith Consulting

Appendix: Zenith Consulting

Direct Unit Costs

Appendix: Zenith Consulting

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