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Do you want to start youtube channel business?
In this era, where the trends of businesses are going towards those, which require a small investment resulting in a large payback, people are mostly looking for a business plan youtube that can be done online. If you too are planning to start a business on the web, and has the skill to create and edit videos, the most worthwhile option you can have is to create a YouTube channel.
Probably you will be thinking that you just need to create an account to move forward. But, it is wrong, you’ll need to make a detailed youtube business plan. To help you in making one, we are providing here a sample YouTube video channel business plan template for a startup named, ‘BrightShows’.
Executive Summary
Before thinking about how to start youtube business, you must create your youtube channel business plan. Your youtube business plan will help you in prioritizing your business plan youtube and following a stepwise approach in order to meet your goals.
2.1 The Business
BrightShows will be a YouTube channel sharing motivational, educational and nutritional videos, owned by Krista James. The business plan youtube will be based in Bellingham, Washington State.
2.2 Management
BrightShows will be a channel providing informative and educational video content in various domains. So, in order to run our business plan youtube, we’ll require a team of video editors, graphic designers, web developers, SEO specialists, and content writers. Krista has decided to get this team through rigorous testing from her own city and also to find some freelance workers from around the world.
2.3 Customers
Our customers will be from the whole world. As our educational videos will mostly be for college and university domain, so our major users will be the young boys and girls throughout the world.
2.4 Business Target
Our target is to reach a million views by the end of the first year, and 30 million views by the end of the first three years.
Company Summary
3.1 Company Owner
Krista has a bachelors’ degree in Software Engineering. During the course of her studies, she was continuously involved in freelance video editing and graphic designing works. Pursuing her interests, she took a 12-week workshop on Digital Editing while preparing herself for starting a web-based business plan youtube.
3.2 Why the Business is being started
Krista had a keen interest in editing and video making tools, she is an expert in using all the related software like Adobe Premiere Pro, Adobe Photoshop, Vegas Pro, KineMaster, etc. Due to her freelance experience, she knows how to start a youtube business and due to the technical skills she has, she can actually implement her ideas through her business plan youtube.
3.3 How the Business will be started
BrightShows will be based on making informative, educational, and motivational videos. In order to manage all these domains, Krista will procure space in Bellingham with the best ISP, computers, servers, cameras, movie making equipment, and other necessary devices. Moreover, she’ll hire a team of content writers, web developers, SEO Specialists, graphic designers, video editors, video makers, and tutors to help her in providing informative videos for her channel.
If you are thinking about how can i start a business with youtube, read the following youtube business model thoroughly. This youtube business plan will cover all the essential details to start this business plan youtube.
The startup summary, developed by our youtube business plan writer is as follows:
The detailed startup requirements are given below:
| Start-up Expenses | ||
| Legal | $55 300 | |
| Consultants | $0 | |
| Insurance | $32 750 | |
| Rent | $32 500 | |
| Research and Development | $32 750 | |
| Expensed Equipment | $32 750 | |
| Signs | $1 250 | |
| TOTAL START-UP EXPENSES | $187 300 | |
| Start-up Assets | $220 875 | |
| Cash Required | $332 500 | |
| Start-up Inventory | $32 625 | |
| Other Current Assets | $232 500 | |
| Long-term Assets | $235 000 | |
| TOTAL ASSETS | $121 875 | |
| Total Requirements | $245 000 | |
| START-UP FUNDING | ||
| START-UP FUNDING | $273 125 | |
| Start-up Expenses to Fund | $151 875 | |
| Start-up Assets to Fund | $123 000 | |
| TOTAL FUNDING REQUIRED | $0 | |
| Assets | $23 125 | |
| Non-cash Assets from Start-up | $18 750 | |
| Cash Requirements from Start-up | $0 | |
| Additional Cash Raised | $18 750 | |
| Cash Balance on Starting Date | $21 875 | |
| TOTAL ASSETS | $373 125 | |
| Liabilities and Capital | $0 | |
| Liabilities | $0 | |
| Current Borrowing | $0 | |
| Long-term Liabilities | $0 | |
| Accounts Payable (Outstanding Bills) | $0 | |
| Other Current Liabilities (interest-free) | $0 | |
| TOTAL LIABILITIES | $0 | |
| Capital | $620 125 | |
| Planned Investment | $620 125 | |
| Investor 1 | $0 | |
| Investor 2 | $0 | |
| Other | $0 | |
| Additional Investment Requirement | $0 | |
| TOTAL PLANNED INVESTMENT | $620 125 | |
| Loss at Start-up (Start-up Expenses) | $313 125 | |
| TOTAL CAPITAL | $251 875 | |
| TOTAL CAPITAL AND LIABILITIES | $251 875 | |
| Total Funding | $255 000 | |
Products
BrightShows will be based on serving its customers through informative and educational contents. The basic services which Krista has decided to provide are given here for anyone who wants to know how to start up on youtube.
- Providing motivational and inspirational videos
- Providing informative videos about health and nutrition
- Providing high-quality videos on Software Engineering Subjects mainly focused on Computer Languages, Computer Architecture, Machine Learning, and Data Structures courses
- Providing video and photo editing tutorials
- Providing YouTube channel marketing services by SEO techniques, web developing and optimizing themes and content
Marketing Analysis of Youtube Channel Business
Almost 5 billion videos are watched on YouTube daily, so marketing your youtube channel effectively is the only way of getting among those 5 billion.
Note
So, after you have enough content and videos, go for making a youtube marketing business strategy to let people know about your channel. For effective marketing either you can contact a youtube channel marketing company or you yourself can do it by using the most related keywords, thumbnails, and themes.
5.1 Market Trends
The revenue that can be generated through YouTube channel depends upon your talent and creativity to enhance your videos. According to the latest facts, 5 Billion videos are being watched on YouTube every day, and more than 10 thousand videos have generated more than a billion views on this platform. Thus, you can earn immensely by starting this business plan youtube provided that you manage your content, and run your channel smoothly. If you will be able to grab people’s attention through your videos you will be paid by the site itself, and also you will get ads to make a profit.
5.2 Marketing Segmentation
Web-based businesses have the biggest advantage of having its customers throughout the world. People around the world who understand our language can benefit from our videos. To analyze the mindset of our subscribers in more detail, we have divided them in a group of three, as given here:
Operational/Strategic Planning Services
The detailed marketing segmentation of our target audience is as follows:
5.2.1 College & University Students: Our primary subscribers will be students, they will watch our videos to learn computer languages such as C, C++, Java, Python. They are also expected to watch our videos on motivational and inspirational talks. Moreover, they would surely like to learn video and photo editing software from us in their summer break.
5.2.2 Adults & Old: The second group of our target customers will comprise of the adults and old, who are expected to watch our motivational and inspirational talks, as well as our useful videos on health and nutrition.
5.2.3 Other Businesses: The owners of YouTube channels other than us will also be our target customers. We expect other channels to utilize our services of editing, graphic designing, optimizing content and marketing their channel.
Our detailed marketing segmentation is as follows:
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Students | 48% | 22 334 | 32 344 | 43 665 | 52 544 | 66 432 | 10,00% |
| Adults & Old | 32% | 12 867 | 14 433 | 15 999 | 17 565 | 19 131 | 15,32% |
| Businesses | 20% | 11 433 | 13 344 | 16 553 | 18 745 | 20 545 | 13,43% |
| Total | 100% | 46 634 | 60 121 | 76 217 | 88 854 | 106 108 | 9,54% |
5.3 Business Target
Our target is to achieve the maximum traffic on our channel by providing our customers with high-quality informative content. Our aim is to reach a million views by the end of the first year, and 30 million views by the end of the first three years.
5.4 Product Pricing
If you are starting a YouTube channel, you cannot set the prices for your services. You’ll be paid a fixed amount by the site after you reach a certain view count. BrightShows will also be providing YouTube Channel Marketing Services, so we have decided to set the prices high for everyone who wants to get their content and videos optimized by us.
Strategy
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In modern times, where the source of infotainment for most of the people is internet, starting a successful youtube channel will prove to be extremely profitable. Having the essential video-making and editing skills is the best strategy for starting a youtube channel. If you think you haven’t any unique idea, then you can search for youtube channel business ideas available on the web.
6.1 Competitive Analysis
There are more than 23 million channels on YouTube, to make yours a prominent one, you have to come up with some competitive advantages. The biggest competitive advantage of BrightShows is its wide variety of playlists. We are offering educational, motivational, informational and nutritional content, which will surely be a way to get more and more users. Secondly, our team is expert in their work, we are sure that the quality, content and the way of delivering we’ll have will be different than all others. Our tutorials are very well explained and we don’t waste even a single minute by dragging the content. Lastly, we will promptly respond to any query in our user’s mind in the comment section, creating an environment of mutual learning.
6.2 Sales Strategy
To let more and more people, know about us;
- We will advertise our services through social media and our Facebook page
- We will use the most related keywords and Search Engine Optimization to highlight our content
- We will create our website and post a link to our videos by related references
- We will create attractive thumbnails and themes with appealing video titles to attract customers
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Motivational Videos | 1 887 030 | 2 680 320 | 2 588 240 |
| Informative Videos | 802 370 | 815 430 | 823 540 |
| Educational Videos | 539 320 | 770230 | 1 002 310 |
| YouTube Marketing | 265 450 | 322 390 | 393 320 |
| TOTAL UNIT SALES | 3 494 170 | 4 588 370 | 4 807 410 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Motivational Videos | $140,00 | $150,00 | $160,00 |
| Informative Videos | $600,00 | $800,00 | $1 000,00 |
| Educational Videos | $700,00 | $800,00 | $900,00 |
| YouTube Marketing | $650,00 | $750,00 | $850,00 |
| Sales | |||
| Motivational Videos | $2 149 800 | $2 784 000 | $3 383 200 |
| Informative Videos | $120 050 | $194 500 | $268 500 |
| Educational Videos | $50 110 | $71 600 | $93 000 |
| YouTube Marketing | $139 350 | $194 600 | $249 850 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Motivational Videos | $0,70 | $0,80 | $0,90 |
| Informative Videos | $0,40 | $0,45 | $0,50 |
| Educational Videos | $0,30 | $0,35 | $0,40 |
| YouTube Marketing | $3,00 | $3,50 | $4,00 |
| Direct Cost of Sales | |||
| Motivational Videos | $989 300 | $1 839 000 | $2 679 700 |
| Informative Videos | $66 600 | $119 900 | $173 200 |
| Educational Videos | $17 900 | $35 000 | $52 100 |
| YouTube Marketing | $19 400 | $67 600 | $115 800 |
| Subtotal Direct Cost of Sales | $1 294 100 | $1 699 400 | $2 104 700 |
Personnel plan
If you are starting a YouTube business focusing on more than one domains you’ll need to hire some staff. If you are looking for how to make successful youtube channel, you must hire your staff after rigorous testing and learn some skills by yourself to operate the channel.
7.1 Company Staff
Krista has decided to manage the website and teach the video and photo editing skills by herself. She will hire the following staff for other purposes.
- 2 Video Editing Experts
- 1 Software Engineer to teach content related to software education
- 4 Content writers to create content about health, nutrition, and motivational tasks
- 2 Speak persons to address the audience in nutritional and motivational videos
- 1 Web Developer
- 1 Graphic Designer to accomplish designing work
- 2 Assistants for making videos
- 1 SEO Specialist for search engine optimization
The company will also acquire freelance services for content writing if need be.
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Video Editing Experts | $85 000 | $95 000 | $105 000 |
| Software Engineer | $50 000 | $55 000 | $60 000 |
| Content Writers | $187 000 | $194 000 | $201 000 |
| Speak/Voice Persons | $50 000 | $55 000 | $60 000 |
| Web Developer | $85 000 | $95 000 | $105 000 |
| Graphic Artist | $50 000 | $55 000 | $60 000 |
| Assistants | $50 000 | $55 000 | $60 000 |
| SEO Specialist | $85 000 | $95 000 | $105 000 |
| Total Salaries | $235 000 | $260 000 | $285 000 |
Financial Plan
Starting a YouTube channel is a business that doesn’t require a lot of investment neither does it require the lengthy procedures of registrations and licensing, you can easily start a YouTube channel by sitting in your home. However, if you aim at hiring certain staff like BrightShows then you’ll need to spend some amount to pay the salaries of your employees. If you want to know how to plan a youtube channel and how to balance your investments with the profit earned, you can take help from this youtube channel business model. Here we are providing a free financial plan of BrightShows enlisting the details of forecasted profits.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10,00% | 11,00% | 12,00% |
| Long-term Interest Rate | 10,00% | 10,00% | 10,00% |
| Tax Rate | 26,42% | 27,76% | 28,12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | ||
| Monthly Units Break-even | 5530 | |
| Monthly Revenue Break-even | $159 740 | |
| Assumptions: | ||
| Average Per-Unit Revenue | $260,87 | |
| Average Per-Unit Variable Cost | $0,89 | |
| Estimated Monthly Fixed Cost | $196 410 | |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $309 069 | $385 934 | $462 799 |
| Direct Cost of Sales | $15 100 | $19 153 | $23 206 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $15 100 | $19 153 | $23 206 |
| Gross Margin | $293 969 | $366 781 | $439 593 |
| Gross Margin % | 94,98% | 94,72% | 94,46% |
| Expenses | |||
| Payroll | $138 036 | $162 898 | $187 760 |
| Sales and Marketing and Other Expenses | $1 850 | $2 000 | $2 150 |
| Depreciation | $2 070 | $2 070 | $2 070 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4 000 | $4 250 | $4 500 |
| Insurance | $1 800 | $1 800 | $1 800 |
| Rent | $6 500 | $7 000 | $7 500 |
| Payroll Taxes | $34 510 | $40 726 | $46 942 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $188 766 | $220 744 | $252 722 |
| Profit Before Interest and Taxes | $105 205 | $146 040 | $186 875 |
| EBITDA | $107 275 | $148 110 | $188 945 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $26 838 | $37 315 | $47 792 |
| Net Profit | $78 367 | $108 725 | $139 083 |
| Net Profit/Sales | 30,00% | 39,32% | 48,64% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40 124 | $45 046 | $50 068 |
| Cash from Receivables | $7 023 | $8 610 | $9 297 |
| SUBTOTAL CASH FROM OPERATIONS | $47 143 | $53 651 | $59 359 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47 143 | $53 651 | $55 359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21 647 | $24 204 | $26 951 |
| Bill Payments | $13 539 | $15 385 | $170 631 |
| SUBTOTAL SPENT ON OPERATIONS | $35 296 | $39 549 | $43 582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35 296 | $35 489 | $43 882 |
| Net Cash Flow | $11 551 | $13 167 | $15 683 |
| Cash Balance | $21 823 | $22 381 | $28 239 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184 666 | $218 525 | $252 384 |
| Accounts Receivable | $12 613 | $14 493 | $16 373 |
| Inventory | $2 980 | $3 450 | $3 920 |
| Other Current Assets | $1 000 | $1 000 | $1 000 |
| TOTAL CURRENT ASSETS | $201 259 | $237 468 | $273 677 |
| Long-term Assets | |||
| Long-term Assets | $10 000 | $10 000 | $10 000 |
| Accumulated Depreciation | $12 420 | $14 490 | $16 560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198 839 | $232 978 | $267 117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9 482 | $10 792 | $12 102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9 482 | $10 792 | $12 102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9 482 | $10 792 | $12 102 |
| Paid-in Capital | $30 000 | $30 000 | $30 000 |
| Retained Earnings | $48 651 | $72 636 | $96 621 |
| Earnings | $100 709 | $119 555 | $138 401 |
| TOTAL CAPITAL | $189 360 | $222 190 | $255 020 |
| TOTAL LIABILITIES AND CAPITAL | $198 839 | $232 978 | $267 117 |
| Net Worth | $182 060 | $226 240 | $270 420 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 4,35% | 30,82% | 63,29% | 4,00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5,61% | 4,71% | 3,81% | 9,70% |
| Inventory | 1,85% | 1,82% | 1,79% | 9,80% |
| Other Current Assets | 1,75% | 2,02% | 2,29% | 27,40% |
| Total Current Assets | 138,53% | 150,99% | 163,45% | 54,60% |
| Long-term Assets | -9,47% | -21,01% | -32,55% | 58,40% |
| TOTAL ASSETS | 100,00% | 100,00% | 100,00% | 100,00% |
| Current Liabilities | 4,68% | 3,04% | 2,76% | 27,30% |
| Long-term Liabilities | 0,00% | 0,00% | 0,00% | 25,80% |
| Total Liabilities | 4,68% | 3,04% | 2,76% | 54,10% |
| NET WORTH | 99,32% | 101,04% | 102,76% | 44,90% |
| Percent of Sales | ||||
| Sales | 100,00% | 100,00% | 100,00% | 100,00% |
| Gross Margin | 94,18% | 93,85% | 93,52% | 0,00% |
| Selling, General & Administrative Expenses | 74,29% | 71,83% | 69,37% | 65,20% |
| Advertising Expenses | 2,06% | 1,11% | 0,28% | 1,40% |
| Profit Before Interest and Taxes | 26,47% | 29,30% | 32,13% | 2,86% |
| Main Ratios | ||||
| Current | 25,86 | 29,39 | 32,92 | 1,63 |
| Quick | 25,4 | 28,88 | 32,36 | 0,84 |
| Total Debt to Total Assets | 2,68% | 1,04% | 0,76% | 67,10% |
| Pre-tax Return on Net Worth | 66,83% | 71,26% | 75,69% | 4,40% |
| Pre-tax Return on Assets | 64,88% | 69,75% | 74,62% | 9,00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19,20% | 21,16% | 23,12% | N.A. |
| Return on Equity | 47,79% | 50,53% | 53,27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4,56 | 4,56 | 4,56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19,7 | 22,55 | 25,4 | N.A. |
| Accounts Payable Turnover | 14,17 | 14,67 | 15,17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1,84 | 1,55 | 1,26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0,02 | -0,04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120 943 | $140 664 | $160 385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0,45 | 0,48 | 0,51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23,66 | 27,01 | 30,36 | N.A. |
| Sales/Net Worth | 1,68 | 1,29 | 0,9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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