The Digital Commando Academy Business Plan
1. Business Overview
The Digital Commando Academy is a unique Facebook Advertising Training Platform specialising in growing a community of elite advertising experts.
We will achieve this by delivering tier 1, 2 and 3 training, taking subscribers from complete beginners to advanced advertisers.
There is currently a huge gap in the market for large scale Facebook Training Academy that supports subscribers with training whilst also supplying them with introductions to live enquiries. This model allows users to earn while they learn.
2. Vision Statement
We believe that by providing an interactive, premium training platform and pricing monthly subscriptions competitively, we can offer customers the best of both worlds when it comes to service and pricing. By utilising Stefan Wesley’s (The Digital Commando) proven expertise in Facebook Advertising, we offer our subscribers a superior level of training and access to an exclusive group of experts. Ultimately, The Digital Commando Academy will be the Number 1 most talked Facebook Ads Training Platform, well known for great results and leaving our subscribers excited and looking forward to their marketing journey.
3. Personal Statement
Facebook Ad Revenue is continuing to increase year over year. This has resulted in increase demand for agencies to deliver this service and with the average agency charging approximately 15-20% of the total ad spend as a management fee we can identify quickly that agencies need to be working with budgets of £3000 per month+ for the contract to be worth it’s while taking on. For small businesses this sort of monthly budget is unfeasible meaning they are forces to use large brand names such as Yell.Com who currently charge up to 50% as a management fee.
Over the past few years, whilst managing a number of digital agencies, I noticed that 9/10 customer enquiries where they where seeking Facebook Ads Management, had a total monthly budget of under £1000. This resulted in a rapid increase in requests for Facebook Ads Training. One of the main difficulties many agencies have is delivering ongoing training to clients based in multiple locations all over the World.
For this reason I created The Digital Commando Academy, allowing me to share my expertise, experience and passion through an elite on-demand Facebook Ads Training Academy to marketers all over the World.
4. Sigma Digital vs. Competition
Having worked at alongside a large number of Digital Marketing Agencies I have a clear and current update on their pricing structure.
• Monthly Subscription Fee
o Cat Howell – $297
o Digital Commando Academy – $247
o Frank Kern – $99
o Cardone U – $97
o Spencer Lodge – $97
o Youpreneur – $59
5. Business Objectives
4.1. Short Term
We will grow the business by achieving 61 paid subscribers. This will allow us to hit our monthly break even point. We estimate this will be achieved within the first quarter.
4.2. Medium Term
For years 1 and 2, we plan on continuing to grow the business by a minimum of 360 paid subscribers per year. At this level of growth we will achieve sufficient turnover to cover overheads and pay back non-equity investors within 12 months of the platform launch whilst growing the business turnover to a total of £142,560 per months generating over £1m in net profit in year 2.
4.3. Long Term
Our long term goal is to grow the business to a 5000 consistent monthly subscribers, this growth will generate the company £1m in monthly revenue. We would then seek a company valuation and sell the company for a value that we currently estimate at £69m.
6. Marketing Strategy
As experts in Facebook Marketing we are going to use our strengths to acquire new subscribers;
• Facebook Ads
• Instagram Ads
• LinkedIn Ads
• YouTube Pre-Roll Ads
• Google Ads
• Face to Face Promotional Events
• Industry Affiliates
7. Market Analysis
7.1. Market Research
Although there is a high demand for a platform of this kind, there are none that are currently delivering the level of service or training alongside an affluent community for the regions that we are going to target which are, Dubai, UK, USA and Spain.
Conducting research has allowed us to validate our business idea and approach for the following reasons;
• Facebook Ads is a high value growth industry with average mobile ads growth of 50% year on year.
• Digital Marketing agencies currently can not provide an on demand service at a price point that is affordable for small businesses.
We have carefully priced our subscription, taking care to ensure we remain competitive but also turn a good profit. In regards to subscription itself, we intend to follow current trends and constantly update the platform with relevant training. We will also use our individuality to offer something different from the competition. We will do this by harnessing the exposure of Stefan Wesley (The Digital Commando) and his online connections and following.
7.2. Market Research Findings
• Digital Agencies currently providing a service rather that delivering training.
• Businesses now have more disposable revenue due to recent economic recovery.
• Businesses are unable to find packages at competitive enough pricing.
This shows that there is an ever growing need for The Digital Commando Academy.
Our target audiences include;
• Freelancers (Seeking to earn while they learn).
• Small businesses (that can not afford agency prices).
• Armed Forces leavers that can relate to Stefan Wesley’s (The Digital Commando) story.
• Digital Agencies (seeking to up-skill whilst generating leads).
• Digital Agencies using the platform for a cheaper alternative to lead generation.
7.3. Premises Research
At the Digital Commando Academy we believe in innovation, for this reason no premises is require and all team members will work remotely. This will have a positive impact on the company in the following ways;
• Reduced overheads for the business.
• Access to a larger talent pool if required.
8. Opportunities and Threats
• The Digital Commando Academy is unique with with very few agencies having access to the training platform infrastructure and thier fore not competing to gain customers through online subscription models.
• There is a large volume of businesses and individuals in need of training in Facebook and Instagram Advertising.
• Because the model is extremely profitable, we may have agencies that seek to compete after we have launched. With this in mind it is key that we are the first to market and control market share.
8.3. Best case
Our overall intention is to make The Digital Commando Academy sustainable at over 1000 consistent monthly subscribers and become a well known brand allowing us continue to grow the company to the golden number of 5000 in order to acquire our estimated sale value.
8.4. Worst case
If we fail to reach our sales targets for the first year, then the viability of the business model must be questioned. Activities will be monitored closely on a weekly basis.
We will review the sales and profit monthly, and conduct our first serious review of the position after our 1st quarter following the launch of the platform and after every quarter consecutively. If we are significantly under target at any point we should re-examine our publicity and marketing. If changes made at this point do not bring the company into profit by the end of the 1rd trading year, then we will break even and liquidate the company.
Outstanding debts at this point should be minimal to none with investor returns estimated at £20k + £250,000 initial investment.
9. Financial Overview
The company will bring on 30 new subscribers per month. Subscribers will only received customer leads when they are a paid member of the platform, this model is designed to increase LTV of Subscribers. By following this model, we increase our income monthly revenue through increasing monthly subscribers by just 30 per month. By looking to expand the business by only 30 new subscribers per month, the business will break even by the end of the first quarter.
Turnover for Year 1 (Jan 2021) is forecasted at £463,320. This is based upon hitting the ground running with our current enquiries and initial client base and growing at 30 Subscribers per month. This will allow us to generate a return for investors in 2 ways;
• Non-equity £50,000 investment – Returns £100,000
• Equity Investors Dividends (25% Shareholder for £250,000 investment) – £70,708.75
The company would continue to do this for year 2. Years 3, these payments would be made as well as providing a 25% share in the company. This would see the initial investment of £250,00 making return of;
End of year 2 (Jan 2022)
• Equity Investors Dividends (25% Shareholder for £250,000 investment) – £284,548.75
End of year 3 (Jan2023)
• Equity Investors Dividends (25% Shareholder for £250,000 investment) – £498,388.75
The company would continue to pay dividends in this way until 5000 consistent month users are reached.
At the estimated value today – Investors would be paid on sale of company estimated at £69m
Company sold for £69m
• Equity Investors Dividends (25% Shareholder for £250,000 investment) – £17,250,000
The business is looking for investment to bring The Digital Commando Academy to market.
Investment Package 1 – 18 Month ROI
We are seeking financing of just £50,000, largely to support the marketing of The Digital Commando Academy. In return we would pay back £100,000 within 18 months of the initial investment.
I know the £50,000 finance amount may be quite a bit less than your usual investment commitment. However, there is a substantial upside to The Digital Commando Academy. Furthermore, the risk is very low because there is a huge market for Facebook and Instagram advertising course with the model we have created. We believe many people would prefer to learn these digital advertising rather than outsource this service to an agency. In addition, in line with our forecast we would only need to sign up less than 50% of our anticipated sales to ensure your return on investment meaning your investment would have substantial security.
Investment Package 2 – Equity Investment
As we foresee significant growth over the next 5 years we are offering investment in return for equity up to a maximum of 25%. For this we are offering investors a maximum of 25% share in the company for £250,000 pro rata.