Website Design Business Plan Template
If you want to start a successful website design business or expand your current website design business, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of website design business plans.
The following website design business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Website Design Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new website design company that helps businesses and individuals located in [Location] design the website of their dreams. We offer a comprehensive list of services that allows us to be involved in every step of the web design process. We start by providing a free consultation and then offer services based on what the client needs. We specialize in designing a website from the ground up, including web hosting and domain management, but can provide simpler services such as redesign services and SEO. No matter what the client is looking for, we have the skills and vision to make their dreams a reality.
Products Served
[Company Name] provides a comprehensive list of services that encompasses the entire web design process. Providing all of these options allows us to either help build a website completely from scratch or build off of a pre-existing website/template. Some of the specific services we offer include:
- Custom website design and web development
- Domain and web hosting
- Redesign services
- Graphic design and logo design services
- Building out specific web pages
- Branding advice
- DNS changes
- SEO
- Site maps
- Video embedding and linking
- Form integration
We offer free consultations with all new clients to figure out what they need, what their budget is, and what their final vision looks like. At the end of the consultation, we offer specific services and provide a price depending on what the client requires. Clients can purchase individual services or a package that encompasses multiple services and features.
Customer Focus
[Company Name]’s core customer base will be small to midsize businesses located in the [Location] metro area. We expect many of these businesses to be fairly new (only starting within the last five years) with project earnings being less than $5 million.
We will also provide our services to entrepreneurs and individuals who need a website designed for them. However, we do not expect that individuals will make up a large customer segment for our business.
Management Team
[Company Name] is founded and led by [Founder’s Name], who has been a web designer for [X] years. Throughout his career, he has built and designed hundreds of websites for solopreneurs, small agencies, and major corporations. He has worked both as an employee for large web design companies and as a consultant. Now he is ready to utilize his skills and turn his consultancy into a full web design firm.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] provides a service that is in high demand.
- [Founder’s Name] has surveyed businesses in the target market and received extremely positive feedback saying that they explicitly want to make use of [Company Name]’s services.
- The management team has a track record of success in the web design/development industry.
- The web design business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is seeking a total funding of $250,000 of debt capital to open its office. Specifically, these funds will be used as follows:
- Office design/build: $50,000
- Equipment and software: $100,000
- Working capital: $100,000 to pay for marketing, salaries, equipment, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new website design company that helps businesses of [Location] design their dream website. We offer a comprehensive list of services that allows us to be involved in every step of the web design process. We start by providing a free consultation and then offer services based on what the client needs. Depending on the consultation we will typically either build a site from the ground up or provide simpler services like redesign and SEO.
Clients who want to build a completely new website with us will get the works. We will provide domain purchase and management, web hosting, brand advice, and graphic design for the entire site. Together we will collaborate to ensure we add the perfect copy, images, and embedded videos to perfect our clients’ brand. Those who need help with an existing site can purchase limited services where we can help out with SEO, branding, and editing website elements. We are happy to work with a variety of websites including sites made with WordPress, Wix, and Squarespace.
[Company Name] is founded and led by [Founder’s Name], who has been a website designer for 20 years. After years of working as a web design employee and consultant, he is now ready to utilize his skills and experience to launch a new web design firm. He has conducted a market analysis, found a potential location, and is searching for sources of funding.
[Company Name]’s History
Once his market analysis was complete, [Founder’s Name] began surveying the local vacant office space and located an ideal location for his new company. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [Date of Incorporation].
Since incorporation, the company has achieved the following milestones:
- Located available office space for rent that is in a busy commercial district
- Developed the company’s name, logo, and website located at [website]
- Determined equipment and necessary supplies
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] provides a comprehensive list of services that encompasses the entire web design process. This includes everything from creating a custom website from scratch, providing brand advice, offering domain management and web hosting, and providing redesign services.
We offer free consultations with all new potential clients to figure out what they need, what their budget is, and what their final vision looks like. At the end of the consultation, we offer specific services and provide a price depending on what the client requires. Clients can purchase individual services or a package that encompasses multiple services and features.
III. Industry Analysis
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
The Web Design market is in high demand due to the ever-growing need for websites. A website is a necessity now, especially if you want to build a brand, business, or other form of digital presence. However, not everyone knows how to design a good website. Therefore, many people turn to website design services to help them create, design, and perfect their website.
According to IBIS World, the Web Design market grew at a rate of 2.5% per year over the past five years and was valued at $40.6bn in 2022. We expect that the next five years will have similar growth since the demand for web development and design has not slowed down.
Several factors will affect the industry’s growth in the next several years. These include changes in per capita income, gross corporate profits, and technological advances.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve local small to midsize businesses in need of website design services. We expect that these businesses will have at least a few dozen employees and earn less than $5 million in annual revenue. We will also serve entrepreneurs and individuals in need of web design services.
Customer Segmentation
[Company Name] will primarily target the following three customer segments:
- Startups: Businesses that have been in operation for two years or less often need efficient website design services that work within their budget. We can provide them with basic packages that will cover their most essential needs.
- Small to medium-sized businesses: The area has many small and mid-sized businesses with less than 1000 employees. These businesses have varying website needs. With our flexible packages and scalability, we can provide service packages that meet their unique needs.
- Entrepreneurs and individuals: Entrepreneurs and individuals have website design needs as well, and often don’t have the skill or time to create one on their own. Therefore, we expect a small portion of our business will be from this customer segment.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses provide either direct or indirect competition for customers:
Wix
Wix is a popular online website builder that makes it easy for people to build a website without web design experience. Customers can choose a design from a limited selection of templates and then customize them as much as they need. This can make designing a website quick and easy without the need for a developer. Furthermore, when choosing a premium plan, customers can purchase a unique domain and get access to additional features and support.
While Wix is a popular tool, its premium packages are often too pricey for average people. Furthermore, the designs are limited and customers cannot change the design once they have chosen one. Another common complaint from customers is that it can be very difficult to get all the elements positioned in the way that the customer wants. This prevents the customer from creating a website that they are happy with or adequately showcases their brand.
WordPress
Approximately 43% of all the world’s websites are powered and designed by WordPress. This by far makes WordPress our biggest competitor. This powerhouse offers a simple dashboard and process to make creating and designing a website as easy as possible. Customers can self-host a WordPress site, purchase hosting services, or sign up for the more limited WordPress.com which is hosted by WordPress itself.
Like Wix, WordPress offers extremely limited templates that can restrict creativity. This is especially true for customers who try WordPress.com, a free alternative for those wanting a site for simple blogging or personal reasons. There are a limited number of templates available, with many getting phased out every few years. Furthermore, customers often struggle to get elements where they want them, so they have to compromise with a layout that they are not happy with.
Rick’s Website Solutions
Rick’s Website Solutions is a local firm that helps individuals and businesses design great websites. The websites can be for commercial use, such as promoting a company or selling a product, or they can be for personal use such as for planning a wedding or special event. The services provided and the pricing for those services depend on the scope of the project.
While Rick’s will remain a popular option for locals, the firm is very small, with Rick being the only website designer. The firm does not have the capacity to handle larger projects and is showing no signs of expanding anytime soon. Therefore, we expect to take much of his potential business as we will have a larger team and more resources to help our clients.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: [Founder’s Name] has been extremely successful working in the web design industry and will be able to use his previous experience to provide the best service experience. His unique qualifications will serve customers in a much more sophisticated manner than [Company Names] competitors.
- Relationships: [Founder’s Name] knows many of the local leaders, business managers, and other influencers within [Location]. With his [X] years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
- Comprehensive Services: [Company Name] will provide a comprehensive suite of services to help our clients throughout every step of the web design and development process.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Client-focused web design services that are customized for every client
- Service built on long-term relationships
- Thorough knowledge of the clients and their varying needs
Promotions Strategy
[Company Name] expects its initial target market to be businesses within a 20-mile radius of its location. [Company Name]’s promotion strategy to reach these individuals includes:
Targeted Cold Calls
[Company Name] will initially invest significant time and energy into contacting potential clients via telephone. To improve the effectiveness of this phase of the marketing strategy, a highly focused call list will be used, targeting startups and small businesses. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.
Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.
Social Media
[Company Name] will invest heavily in a social media advertising campaign. [Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.
Publications
The company will place print advertisements in key local publications, including newspapers, area magazines, and business newsletters. Additionally, [Company Name] will print brochures and place them in specific locations frequented by target individuals, such as small business development centers.
Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all of the features and benefits of our services. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.
Direct Mail
[Company Name] will blanket businesses with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts, or provide other incentives for companies to try out our services.
Pricing Strategy
[Company Name]’s pricing will be on par with competitors so clients feel they receive great value when purchasing our web design services.
VII. Operations Plan
Functional Roles
To execute [Company Name]’s business model, the company needs to perform several functions:
Service Functions
- Consult with clients about their website needs
- Develop and design websites
- Provide additional requested services
- Fix bugs accordingly
- Provide customer service
Administrative Functions
- Marketing
- Bookkeeping
- Hiring and training staff
- General administrative functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is founded and led by [Founder’s Name], who has been a web designer for [X] years. Throughout his career, he has built and designed hundreds of websites for solopreneurs, small agencies, and major corporations. He has worked both as an employee for large web design companies and as a consultant. Now he is ready to utilize his skills and turn his consultancy into a full web design firm.
Though [Founder’s Name] has never run a managed service provider firm himself, his previous experience has given him an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Hiring Plan
[Founder’s Name] will serve as the President of [Company Name]. To launch, he needs to hire the following personnel:
- Web Designers (3 to start)
- Administrative Staff (1 to start)
- Marketing Staff (1 to start)
IX. Financial Plan
Revenue and Cost Drivers
The key revenues for [Company Name] will come from the fees we charge for our website design services.
The major cost drivers for the company include marketing expenses, labor, equipment purchasing and maintenance, and overhead costs.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $250,000 of debt capital to open its office. Specifically, these funds will be used as follows:
- Office design/build: $50,000
- Equipment and software: $100,000
- Working capital: $100,000 to pay for marketing, salaries, equipment, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
