Do you want to start youtube channel business?

Executive Summary

Company Summary

Products

Marketing Analysis of Youtube Channel Business

Strategy

Personnel plan

Financial Plan

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 the business 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 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 business plan will help you in prioritizing your business 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 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, 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.

Youtube Channel Business Plan 1

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.

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.

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 business plan will cover all the essential details to start this business.

The startup summary, developed by our business plan writer is as follows:

Youtube Channel Business Plan 2

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. So, after you have enough content and videos, go for making a youtube marketing 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 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:

Youtube Channel Business Plan 3

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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Students48%22 33432 34443 66552 54466 43210,00%
Adults & Old32%12 86714 43315 99917 56519 13115,32%
Businesses20%11 43313 34416 55318 74520 54513,43%
Total100%46 63460 12176 21788 854106 1089,54%

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

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

Youtube Channel Business Plan 4

6.4 Sales Yearly

Youtube Channel Business Plan 5

6.5 Sales Forecast

Youtube Channel Business Plan 6

Sales Forecast
Unit SalesYear 1Year 2Year 3
Motivational Videos1 887 0302 680 3202 588 240
Informative Videos802 370815 430823 540
Educational Videos539 3207702301 002 310
YouTube Marketing265 450322 390393 320
TOTAL UNIT SALES3 494 1704 588 3704 807 410
Unit PricesYear 1Year 2Year 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 CostsYear 1Year 2Year 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 1Year 2Year 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 1Year 2Year 3
Plan Month123
Current Interest Rate10,00%11,00%12,00%
Long-term Interest Rate10,00%10,00%10,00%
Tax Rate26,42%27,76%28,12%
Other000

8.2 Brake-even Analysis

Youtube Channel Business Plan 7

 Brake-Even Analysis
Monthly Units Break-even5530
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 1Year 2Year 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/Sales30,00%39,32%48,64%

8.3.1 Profit Monthly

Youtube Channel Business Plan 8

8.3.2 Profit Yearly

Youtube Channel Business Plan 9

8.3.3 Gross Margin Monthly

Youtube Channel Business Plan 10

8.3.4 Gross Margin Yearly

Youtube Channel Business Plan 11

8.4 Projected Cash Flow

Youtube Channel Business Plan 12

 Pro Forma Cash Flow
Cash ReceivedYear 1Year 2Year 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
ExpendituresYear 1Year 2Year 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
AssetsYear 1Year 2Year 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 CapitalYear 1Year 2Year 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 1Year 2Year 3INDUSTRY PROFILE
Sales Growth4,35%30,82%63,29%4,00%
Percent of Total Assets
Accounts Receivable5,61%4,71%3,81%9,70%
Inventory1,85%1,82%1,79%9,80%
Other Current Assets1,75%2,02%2,29%27,40%
Total Current Assets138,53%150,99%163,45%54,60%
Long-term Assets-9,47%-21,01%-32,55%58,40%
TOTAL ASSETS100,00%100,00%100,00%100,00%
Current Liabilities4,68%3,04%2,76%27,30%
Long-term Liabilities0,00%0,00%0,00%25,80%
Total Liabilities4,68%3,04%2,76%54,10%
NET WORTH99,32%101,04%102,76%44,90%
Percent of Sales
Sales100,00%100,00%100,00%100,00%
Gross Margin94,18%93,85%93,52%0,00%
Selling, General & Administrative Expenses74,29%71,83%69,37%65,20%
Advertising Expenses2,06%1,11%0,28%1,40%
Profit Before Interest and Taxes26,47%29,30%32,13%2,86%
Main Ratios
Current25,8629,3932,921,63
Quick25,428,8832,360,84
Total Debt to Total Assets2,68%1,04%0,76%67,10%
Pre-tax Return on Net Worth66,83%71,26%75,69%4,40%
Pre-tax Return on Assets64,88%69,75%74,62%9,00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19,20%21,16%23,12%N.A.
Return on Equity47,79%50,53%53,27%N.A.
Activity Ratios
Accounts Receivable Turnover4,564,564,56N.A.
Collection Days9299106N.A.
Inventory Turnover19,722,5525,4N.A.
Accounts Payable Turnover14,1714,6715,17N.A.
Payment Days272727N.A.
Total Asset Turnover1,841,551,26N.A.
Debt Ratios
Debt to Net Worth0-0,02-0,04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120 943$140 664$160 385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0,450,480,51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23,6627,0130,36N.A.
Sales/Net Worth1,681,290,9N.A.
Dividend Payout000N.A.