Fantasy Sports Website Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Fantasy Sports Website Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Fantasy Sports Website business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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Fantasy sports websites have become extremely popular over the past five years given that online platforms that include mobile applications can readily handle the amount of traffic that is generated by these websites on an ongoing basis. These companies are able to generate very high gross margins from both subscription fees as well as advertising and sponsorship income. Additionally, there are a number of opportunities to generate additional incomes through specialized opportunities with merchants, sports leagues, as well as other organizations that focus on professional sports. Many people have now enjoy the fancy sports as one of the newer ways to enjoy any sort of professional athletic activity. It is estimated that approximately 100 million people within the United States have played or continue to play online fantasy sports with their friends and colleagues. Additionally, these businesses have been further compounded in their popularity by the number of companies that host ongoing pools for fantasy football, fantasy basketball, college basketball, baseball, and other professional sports such as hockey. This trend is expected to continue in perpetuity given that many organizations find engaging in fantasy sports to be a teambuilding exercise.
The barriers to entry for a new fantasy sports website are considered somewhat moderate given that there is a significant amount of complexity as it relates to the development of the actual online platform. Generally, a new fantasy sports website can be developed for as little as $100,000 to as much as $1 million depending on the amount of depth that will be experienced by the user. Given the highly competitive landscape these days among fantasy sports websites it is important to allow for a significant amount of capital to be used in order to develop these platforms. This is especially true if money is going to be changing hands during the course of business operations. There are many organizations that now allow users to directly put up cash when in order to engage in for profit playing.
Most fantasy sports websites are developed by using capital either from the entrepreneur or a group of investors. Until this type of business is profitable, most banks and lenders will not provide ongoing financial support until recurring shims revenue from advertising, subscription income, and related service income are generated. As with all businesses, a fantasy sports website business plan should include a profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. One of the things that should be heavily focused on within the business plan is a competitive landscape among other fantasy sports websites. It is important that to know each of the competitors strengths and weaknesses as a comparison the platform it’s can be developed by your company. Additionally, a very well-developed demographic analysis should be included as well that focuses on the age range, median household income, median family income, location, and other pertinent information about the target user. This will assist tremendously during the course of the development and implementation of the fantasy sports website marketing plan.
The marketing plan should focus extensively on using both traditional as well as online marketing strategies in order to drive people and users to the website. For traditional marketing – most newer fantasy sports websites will engage in a broad based televised ad campaign in order to increase brand awareness among a large demographic of potential users. Most of these advertising campaigns take place during televised sports events. As it relates to online marketing one of the ways that these companies have become successful is through the extensive use of social media. Finally, in some cases for very well-capitalized companies they will solicit celebrity endorsement among well-known athletes that will promote the business. It is important to note that this requires a significant amount of capital and many athletes that promote businesses will often want a certain percentage of equity in exchange for their promotional services.
For the fantasy sports website SWOT analysis there are a number of considerations that need to be made. As it relates the strengths, a fantasy sports website is typically able to generate extremely high gross margins from services. This is especially true if a substantial portion of the income is going to be produced through advertising, sponsorship, or subscription service based services. For weaknesses, there are a significant number of competitors in this field at this time. A majority of these competitors have gained a significant amount of market share and as such it is going to be imperative for a new fantasy sports website is able to provide a differentiating factor to its user base. Relating to opportunities, many fantasy sports websites once they have established a significant user base will allow individuals to compete against each other in exchange for cash prizes. This aspect of a fantasy sports website is controversial and there are some laws that are pending regarding how these sites are regulated. Additionally, many of these websites will look to create co-branding opportunities with professional sports leagues in order to increase brand awareness. For threats, there are some pending regulations regarding how these websites operate given that there is some level of betting involved among individual users as well as through direct cash prizes available on these websites. As such, it is important for an entrepreneur looking to enter this field to have an understanding of the legal landscape that they are going into if they are going permit users to win cash prizes as part of the overall menu of services.
Fantasy Sports Website Business Plan (text of the plan – sample images only)
The purchased plan’s figures are specific for a fantasy sports website.
1.0 Executive Summary
The purpose of this business plan is to raise $150,000 for the development of an fantasy sports website that will provide a platform for people to play fantasy sports within leagues on the site. This business plan will also showcase the expected financials and operations over the next three years. The Fantasy Sports Website, Inc. (“the Company”) is a New York based corporation that will sell advertising space while generating revenues through subscriptions among users of the website. The Company was founded by John Doe.
1.1 The Site
Fantasy Sports Website, Inc. will primarily generate revenues from subscription based income among people that want to play fantasy sports (with a focus on football, baseball, basketball, and hockey) in a league style format with their friends. The website will also have open entry leagues for people that want to play against other members of the website.
The business will generate revenues from static and dynamic advertisements that generate revenues on a per 1000 impressions basis while concurrently earning other income from affiliate partner revenues. The third section of the business plan will further describe the services offered by the Fantasy Sports Website.
1.2 Financing
Mr. Doe is seeking to raise $150,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:
- Development of the Company’s fantasy sports website platform.
- Financing for the first six months of operation.
- Capital to purchase servers, computers, and related technology
Mr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
The Fantasy Sports Website’s mission is to become the recognized leader in its targeted market as a platform where people can enjoy fantasy sports.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the online and Internet industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the Company’s demographic.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Fantasy Sports Website, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Fantasy Sports Website requires $150,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Fantasy Sports Website, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Fantasy Sports Website. Based on historical numbers, the business could fetch a sales premium of up to 10 times earnings.
3.0 Products and Services
Below is a description of the services offered by the Fantasy Sports Website.
3.1 Fantasy Sports Website Operations
As stated in the executive summary, the primary revenue center for the business will come through the ongoing usage of the website by customers that want to play fantasy sports. The website will have a number of portals related to different sports. Fantasy leagues will include sports such as:
- Football
- Baseball
- Basketball
- Hockey
- Soccer
Management anticipates that each user will pay $19.95 per season.
3.2 Advertising Revenues
The revenues will come from the sale of advertising space to businesses. At the onset of operations the business will develop a relationship with Google AdSense so that the business can immediately generate revenue. Each time a visiting user clicks on one of the advertisements for the business, the Company receives a payment from Google. These ads will be tastefully placed throughout the Fantasy Sports Website platform.
The Company also intends to develop its own internal advertising programs that will feature static advertisements within the website. These advertisements will be sold directly to advertisers rather than through a third party system, like Google AdSense. In the future, the Fantasy Sports Website will also seek to develop product affiliation and corporate sponsorship relationships which would further the Company’s visibility and revenue streams.
Remaining Text in Purchased Version (including research)
6.0 Organizational Plan and Personnel Summary
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- The Fantasy Sports Website will have an annual revenue growth rate of 31% per year.
- The Owner will acquire $150,000 of debt funds to develop the business.
- The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of a severe economic decline, the demand for specialty online based advertising and fantasy gaming services may decrease significantly, which may cause the advertising/subscription revenue generated by the business to level off or decline. However, the high margins associated with the Fantasy Sports Website will ensure that the business will be able to remain profitable and cash flow positive at all times.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
