Projecting Online Advertising for Business Plans As a consultant to tech startups, I’ve seen entrepreneurs planning online ventures confused when it comes to projecting advertising revenue. Having done ad projections with the benefit of live models from which to extract real data, I offer the following guidelines on how you can calculate revenue projections for your business plan. Baseline Criteria: Let’s assume that for Year One you will only use third-party ad-serving networks, instead of direct selling. This is as simple as adding their code snippets to your pages, to automatically feed their ads to your site. Because it’s rare to find one service that can fill all your inventory, I recommend a primary service and a backup service. In terms of ad providers, I’ve used Contextweb for CPM and Google AdSense for CPC. Year One Assumptions: 2 CPM ad slots per page80% of your inventory filled (a common percentage with a 2-service approach)$1.20 earned per 1,000 pages viewed You start by projecting monthly page views. Future Years:
Five Keys to Building a Successful Gaming Company | Blog | Daily Dose Want to be the next Zynga? If your answer is yes, you're not alone. Just ask Philip Holt. Holt says Heroes is an action strategy game that mixes story, drama and humor, along with some "riveting gameplay." 1. 2. Then make sure your team knows your core strengths and principles -- the things that are unique to your company and aren't altered by platform limitations, market conditions or competitive influences. 3. 4. 5. What other keys to business success would you add? Shazam For TV can go large with ITV ad sales deal Shazam has won a significant deal in its curious effort to diversify in to audio-tagging TV ads. UK commercial TV leader ITV’s ad sales team, ITV Commercial, will offer the functionality to its advertisers. Mobile app Shazam has long let users identify music around them using pattern recognition. Recently, it trained that technology toward Shazam For TV, with which users of the same app can unlock features of TV advertisements by listening to those ads. Shazam For TV has been somewhat experimental, leveraged through partnerships with individual shows and directly with advertisers. But now it can go large across a whole broadcast network. How excited should those advertisers be? ITV and Shazam are calling this a “UK exclusive”, so don’t expect to see Shazamable ads on Channel 4, Channel 5, Sky channels or elsewhere in the country; ITV was keen to keep the ability to sell these ads all for itself.
The Resource for Entrepreneurs. Five Common Startup Money Mistakes It's easy to go wrong when mapping out financials for a new venture. Here's how to avoid some typical potholes. Figuring out the financial details of a new venture can seem a mix of aspiration (How much I'd like to make. . .) and folly (I need borrow how much?). But writing down numbers on paper and as accurately as possible is important. It can provide a map to show where you are trying to go and what it will take to get there. But it's easy to go wrong when mapping out a financial plan, especially on first-time ventures. 1. Often, entrepreneurs who have employees factor in wages but forget about payroll withholdings, like Social Security, Medicare, unemployment insurance, and income-tax, says Raffaele Mari, an accountant in Newport Beach, Calif., who teaches a financial course for entrepreneurs at Pepperdine University. The fix: Mari recommends using a worksheet, such as SCORE's 12-month cash-flow worksheet. Related: Sample Cashflow Worksheet 2. Related: Sample Startup Costs Worksheet
Testing For Dummies | Testing Employee Equity: How Much? The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. I am going to try to address that question in this post. First, a caveat. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. Once you have assembled a core team that is operating the business, you need to move from art to science in terms of granting employee equity. We have developed a formula that we like to use for this purpose. The first thing you do is you figure out how valuable your company is (we call this "best value"). The second thing you do is break up your org chart into brackets. When you have the brackets set up, you put a multiplier next to them. Senior Team: 0.5x Director Level: 0.25x Key Functions: 0.1x All Others: 0.05x Then you multiply the employee's base salary by the multiplier to get to a dollar value of equity.
How to Estimate Startup Costs One of the reasons having a business plan is a good first step for starting a business is to answer the fundamental, and critical question of how much money it will take to get the venture started. I've had two good friends who, with different businesses in different years, started strong but failed because they ran out of resources. In the first case, additional funding might have been available had my friend planned better and applied for a larger loan. The point is, having an educated idea about startup costs can benefit your business more than not having a plan at all, and facing more unforeseen surprises. You can calculate starting costs by making three simple lists, a few educated guesses and then adding them all up. Related: Starting Costs Calculator List spending on assets. If you're either making or selling products, think about the inventory you'll need to have at the start. All of these items make up your starting assets. Related: Two Weeks to Startup: Day 3.
Music Hack Paris Alliance of Angels - Presentation Guidelines Tell Your Story Well A successful pitch is like an engaging movie trailer – it should clearly convey the gist of your business and provoke investors to engage. Be interesting, tell a memorable story, and make heavy use of visuals. 10 – 15 slides are all that’s needed. Purpose Declare what your company does in a single sentence. Problem Describe your customer’s burning pain point. Solution Describe your product and explain why it makes the customer’s pain go away. Market Size Use both tops-down and bottoms-up.Segment and identify your sweet spot. Business Model Explain how you make money.State your customer acquisition cost and lifetime value. Go-to-Market Describe your sales distribution model. Traction List current customers, partners and users, as well as your pipeline. Competition List your competitors and describe your economic moat. Team List your founders, key management and advisors. Financials Offer