Smart space will achieve millions dollar revenue while delivering strong profitability and cash flow. Smart space will launch its application, Smart Space events, and all-in-one digital events service. We are expecting to show a global presence with projected customer base of half a million.
SUBSCRIPTION
Considering the different usage and needs of the customers, Smart Space will provide four subscription plans.
BASIC: This plan will be best suited for personal meetings. In this plan up to 80 participants can be hosted. Also, unlimited group meeting can be conducted for 30 minutes including private chat and group chat option. Moreover, one-to-one meeting can be conducted for 25 minutes. Initially, in order to form a strong customer base and show the significance of the Smart Space, we will not charge our users for the basic plan.
PRO: This plan will be best suited for small teams and focused groups. Pro plan will include all the benefits of Basic plan; plus, it can host up to 100 participants. Also, there will be an add-on option will be provided to increase the participants up to 200. Pro plan will enable the users to stream social media, and 1 GB cloud recording will be included in this plan. The subscription cost of Pro plan will be $18 per month.
BUSINESS: This plan will be best suited for the small businesses. Business plan will include all the benefits of Pro plan; plus, it can host up to 300 participants. This option of recorded transcripts will be provided. Keeping the security in mind, business plan will include managed domain. The subscription cost of Business plan will be $24 per month.
EXECUTIVE: The Executive plan will be best suited for large enterprises. Executive plan will include all the benefits of Business plan; plus, it can host up to 500 participants. Smart Space will provide unlimited cloud storage under this plan. The subscription cost of Executive plan will be $27 per month.
OPTIONAL ADD-ON PLANS
LARGE MEETINGS: This will allow the subscribe to add the number of participants including up to 1000 interactive participants. This add-on will cost $60 per month.
CLOUD STORAGE: This will allow the used to store, stream, and download videos from the Smart Space cloud. Plus, MP4 and M4A file formats will be included in it. This add-on will cost $50 per month.
INCOME FROM OPERATIONS
GAAP income for first year is expected to be $24 million. After adjusting payroll tax, stock-based compensation expense, acquisition-related expense, etc. non-GAAP income from operations is projected to be $11 million. GAAP income for second year is expected to be between $54 million and $58 million. Also, non-GAAP income from operations is projected to be between $31 million to $34 million.
WEBSITE BUILDING COST
PRICE FACTORS
AVERAGE COST
Web Design
$ 80000/ Design
Website Maintenance
$ 52000/ Year
Website Marketing
$ 1000/ Month
Website Design Service (Agency, Freelancer, or Website Builder)
$ 75000
Website Maintenance Service
$ 5000/ Year
PPC COST
Smart Space will spend about $35000 per month on PPC services. These services will include up to 10,000 targeted keywords. Google customer match, Gmail competitor ads, Initial campaign development and strategy, Industry analysis, Ad performance testing, result analysis report, fraud activity monitoring, and banner ad design will be included in above mentioned cost. Plus, international campaign with additional language will additionally cost about $220. The project Cost per Click (CPC) will be $1.02, Cost through Rate (CTR) will be 1.4%, Cost per Mille (CPM) will be $15.3, and conversion rate will be 4.6%.
OTHER PROMOTIONAL TACTICS
INFLUENCER MARKETING
Earlier influencer marketing was limited to celebrities, but now there is a trend of social media influencers. We will capture the mass population through social media platforms such as Instagram, YouTube, Snapchat, and Facebook. Running marketing campaign will enable Smart Space to target the diverse audience with different demographics. In fact, influencer marketing industry has grown up to $10 billion in the year 2020 (Adweek, 2021). Hence this shows the efficiency and effectivity of the influencer marketing.
EMAIL MARKETING
Smart Space will attract the customer base through email marketing. A signup form will be created on the website. The benefit of creating this signup is that the first-time users who like the website can stay in touch with the Smart Space’s activities. In order to gather the contact information of the visitors, form of newsletter signup and pop-ups will be created. Plus, we can test our email marketing campaign through online testing tools. We can also test subject lines, content, from names, etc. Also, we can test our reach too.
REFERRAL MARKETING
Referral marketing is one of the most effective promotional tactics. Most of the people trust the product or service recommended by the colleagues. Therefore, this word-of-mouth advertising will help Smart Space to build a loyal customer base. Smart Space will reward the customers in form of discounts who recommended the platform to others. All in all, inbound marketing strategy have customer satisfaction as the top most priority.
LOYALTY PROGRAM
Many well-established brands have been rewarding their loyal customers even before this concept came under limelight. Smart Space will provide additional discounts to the customers who have been using this platform for a long time. This creates the sense of belongingness and customers feel appreciated. Moreover, it helps the organization to develop a long-term relationship with its customers.
PPC PLAN
CAMPAIGN 1
It will be used to promote the network traffic on the website by targeting the customer segments through ads, social media, and email marketing.
CAMPAIGN 2
It will be used to increase the conversion rate; that is, converting the website visitors to the customers. Plus, this campaign will focus on decreasing the bounce rate; that is, visitors who entered the site but leave it without subscribing.
KEYWORDS
Keywords
Bid (CAD)
Keywords match
Video call
$1.02
Exact Match
Video conference
$0.93
Exact Match
iCloud space
$1.07
Exact Match
Free video call
$0.84
Phrase Match
Smart Space
$1.03
Exact Match
Team meeting
$1.00
Exact Match
Online Workplace
$0.78
Exact Match
Online meeting subscription
$0.94
Phrase Match
Low-cost video call
$0.87
Phrase Match
Free video communication
$1.01
Phrase Match
Best virtual workplace
$0.98
Phrase Match
Work from home
$1.04
Phrase Match
Remote workplace
$1.01
Phrase Match
Online platform to work
$0.99
Phrase Match
Daily Budget: $150 per day, considering the daily expenses and Return on Investment
FINANCIAL PROJECTION
Year Ending January 31st
2022 2023
Projected Ending ARR $24 million $54 million
Total Revenue $16 million $42 million
Total Gross Profit $14 million $37 million
Sales of Marketing $500,000 $1 million
Research and Development $450,000 $650,000
General and Administrative $350,000 $450,000
Income from Operations $12.7 million $34.9 million
Expenses $1.7 million $2.9 million
(Web design, Web maintenance, income tax)
Non-GAAP Net Income $11 million $32 million