Infomercial Business Plan
The Infomercial Business Plan is a comprehensive, formal business plan detailing the launch of an infomercial (also know as 'Direct Response') business. The Infomercial Business Plan Table of Contents
includes comprehensive sections of a formal business plan in a format approved and expected by loan officers and investors. The business plan can be easily adapted to any type of infomercial product or business.
Infomercial Business Plan Contents
The plan provides methods for forecasting sales; demographic data that supports the infomercial company's detailed financial analysis; product pricing formulas; a market analysis of the Infomercial industry
; and a concise Executive Summary for an Infomercial Business Plan
Infomercial Business Plan Detailed Sections
This downloaded Infomercial Business Plan can be adapted quickly and easily to develop a comprehensive infomercial business plan for any type of product. The plan details how to develop, produce, launch and manage an innovative infomercial product. The comprehensive plan provides funding and operational requirements necessary for a test phase and, pending a successful test, serves as a guide to execute a full-scale rollout of a national television infomercial.
This Infomercial Business Plan includes exhaustive financial forecasting in layouts required by banks, lenders and investors. The straight-forward design of the financial forecasts presented in this business plan are specific to the infomercial industry and provide an insider's view of how to calculate financial solvency for a long-form (30-minute) infomercial product.
The plan includes an industry-specific performance worksheet used to establish the necessary breakeven requirements for the test phase of an infomercial. The worksheet explains standard industry metrics including Cost per Order (CPO) and Media Efficiency Ratio (MER). The performance worksheet is also used to create formal Infomercial financial forecasts for Sales; Profit and Loss; Cash Flow; and Balance Sheets for 12-month and 3-year projections. These forecasts are a requirement for projecting the infomercial company's on-going financial performance and can be used to manage day-to-day operations for the infomercial campaign. Just as importantly, proper use of this financial data helps determine whether an infomercial company should not launch a product in the infomercial channel due to poor financial projections.
The inherent risk level for testing an infomercial product is very high. In the case of testing this example fitness product, the company's launch plan assumes an initial capital infusion of $200,000 to support the product's test phase. If the test is not successful, the investment cannot be recovered and is considered a loss. If the test is successful, the company will require an additional $860,000 in capital to fund a full campaign rollout of the infomercial. The plan includes a concise Executive Summary for an Infomercial Business Plan.
Assuming a successful test phase, the plan details the full rollout and launch of the product. The company is forecasting total assets and net worth of $64,778 at the end of its first year on total paid-in capital of $1,060,000. After the second year, total assets and net worth are forecast to increase to $72,425 after dividend distributions of $500,000. In the third year, total assets and net worth are forecast to increase to $240,017 after dividend distributions of $1 million.
The plan provides complete details for projecting startup costs and on-going financial forecasting for an Infomercial fitness product, including an Infomercial industry-specific performance worksheet for measuring campaign profitability:
- Infomercial Conversion Rates
- Infomercial Cost per Order (CPO)
- Estimated Infomercial Revenue
- Average Sales Ratios
- Media Efficiency Ratios (MER)
The plan includes highly detailed sections on:
- Infomercial Industry Overview
- Market Analysis Data
- Infomercial Fitness Products and Competitive Comparison
- Strategic Alliances and Vendors Necessary for Success
- Marketing Strategy
- Pricing Formulas
- Distribution Channels
- Timeline and Milestones
- Management Summary
- Personnel Plan
- Infomercial Financial Plan (12-Month and 3-Year Projections)
- Infomercial Performance Worksheet
- Infomercial Sales Forecast
- Profit and Loss
- Cash Flow
- Balance Sheet
- Exit Strategy if the Business Fails
- Complete explanations of each section, including Financials.
The Infomercial Business Plan is an indispensable
guide to launching and operating a successful infomercial business.