Digital Marketing Agency Business Plan

Hasham bin Noor, M.Zubair, Hammad, M.
Usama Siraj
Business Plan
PixelFire Digital Marketing Agency
CONFIDENTIAL
Digital Marketing Agency
Business plan
Prepared January 2023
Executive Summary
PixelFire
Overview
PixelFire is a newly formed digital marketing agency that is run by two Friends,
Zubair and Hisham, who collectively have more than two decades of experience
running e-commerce sites, working at digital marketing agencies, and helping small
to medium size businesses achieve their digital growth goals.
While PixelFire has been operating as a small consultancy for the past two years, it
is now looking to raise some funding and become a full service digital marketing
agency that will need to purchase technology assets and ramp up hiring to meet
client demands. Additionally, once the PixelFire ramps up their marketing efforts,
there will be a need for internal resources to manage all the new clients that they
will onboard.
PixelFire will operate initially as a fully remote organization with resources across
various functional areas of the business including Search Engine Optimization
("SEO"), Conversion Rate Optimization ("CRO"), paid advertising (including social
media and search), as well as contractors who will support auxiliary revenue
streams such as content writing and design services.
PixelFire is well-positioned to quickly become one of the most trusted digital

marketing agencies in the industry given its existing reputation and the plans of
building a proprietary technology solution that will bring meaningful value to
clients. As PixelFire furthers their reputation in the market, PixelFire is poised for
long-term success and will be able to increase hiring and expand service offerings
to meet client demands with ease.
Service Offerings
After completing their fundraising, PixelFire will expand their operations to four

main revenue streams:
• Search Engine Optimization

• SEO marketing services include SEO strategy development, technical
SEO, keyword targeting, content marketing, and link building
• Paid Advertising
• Includes full-service PPC marketing efforts, including search engine

advertising, paid shopping ads, display ads, paid social media ads,
retargeting, and more
• Conversion Rate Optimization
• eCommerce CRO services will run over thousands of AB tests across a

variety of eCommerce platforms with the goal of driving sales.
Through targeted user research, a team of UX analysts, and
psychological experts, PixelFire will grow not only transactions but
average order and customer lifetime value for clients
• Copywriting & Design Services
• Industry-focused content writers and designers who excel in

translating the voice and tone of a client's business into conversion-
driving copy or rich and engaging design
Expectations
Financing Needed
Given the management team's long-standing success in the industry, PixelFire will
be looking to secure an Bank loan in the amount of $30,000 to finance the
acquisition of initial startup technology costs as well as cover initial cash flow
needs as PixelFire ramps up customer acquisition and operates at a loss in Year 1.
Forecast
Given industry growth and the new technology platform PixelFire will develop, the
projected next five years will see strong growth from DMA as they service new and
existing clients while capturing additional wallet share with existing new services
as PixelFire grows to become a one-stop-shop for all types of digital
marketing. Across the company, PixelFire is projecting to ramp up meaningfully
after securing their debt capital and hiring several resources to achieve 2023
revenue of $500K, which will grow to $4 million by 2026. EBITDA will also grow
from $1 million in 2023 to $4 million by 2026.
Financial Highlights by Year

Opportunity
Business Overview
Service Offerings
At launch, PixelFire will operate across four main service categories all focused on
digital marketing services for clients. The main categories are outlined below as
well as their revenue assumptions used in the financial projections.

• Customers will pay a monthly recurring charge that averages out to
$3,000

• Customers pay the agency a fee of 15% of the client's advertising
budget, which was assumed to be an average of $10,000 per month

• Customers will pay a monthly recurring charge that is tiered based on
the number of tests and campaigns run per month but will average out
to $4,000


driving copy or rich and engaging designs
• Customers will be charged per hour for design and writing services at
an average rate of $100 per hour
Growth Strategy
Within the first five years of operations, PixelFire will look to drive revenue growth
by not only acquiring new customers but also expanding their wallet share with
existing customers. By reducing the churn rate and upselling customers on
additional services, they will enhance the client LTV.
In addition to organic client growth, PixelFire will also be launching new service
offerings, standalone product offerings, and will establish several partnerships for
referral revenue. The main inorganic growth avenue is with the development of
a proprietary reporting and marketing forecast dashboard. This will become an
integral selling point in PixelFire's service packages as a way to visualize audits,
changes, and provide instant access/feedback to the user. PixelFire anticipates
eventually launching this technology as a standalone product that will further
its growth far in excess of the financial projections in this business plan.
Target Market
Overall Market
Over the past five years, the Digital Advertising Agencies industry has benefited
from the rapid shift from traditional print advertising to digital advertisements. In
particular, strong demand for digital advertising services from the retail, financial
services, automotive and telecommunication sectors have bolstered industry
revenue. As more consumers generate website traffic through the use of
smartphones and tablets, many businesses have purchased digital advertising
services to build brand awareness across multiple screens and platforms.
Additionally, as more product manufacturers are directly selling their products
online, many retailers are demanding industry activities such as search engine
visibility services to help them compete. Over the five years to 2019, industry
revenue is anticipated to grow at an annualized rate of 17.2%, including a 5.6% jump
in 2019 to reach $15.7 billion. Over the five years to 2019 total industry operators are
expected to increase at an annualized rate of 16.2% to 4,471.
Many businesses have demanded industry services to spread advertisements in

digital formats, namely online for streamed video content. Furthermore, some
industry clients have moved away from business models that require research and
tangible results prior to the launch of an advertisement, in favor of a testing
environment that has evaluated the commercial viability of new ideas. For example,
clients have purchased digital advertising services that measure online traffic
demographics related to their social media websites prior to launching a product,
greatly benefiting the industry. Industry profit (measured as earnings before
interest and taxes) is expected to be 6.1% in 2019, due to increased demand for
specialized and niche digital advertising services. Total number of industry
employees are expected to grow at an annualized rate of 16.5% to 71,049 in 2019.
Over the five years to 2024, digital advertising agencies that can develop innovative
tools such as data mining, with applications for analyzing customer purchasing
behavior, will experience strong demand. As online media streaming services and
social media continue to generate substantial internet traffic, many businesses will
strengthen their investments in digital advertising. As a result, industry revenue is
forecast to increase at an annualized rate of 4.4% to $19.5 billion over the five years
to 2024.
Key Market Drivers
Internet traffic volume
Internet traffic volumes represent the total data sent over the internet globally per
month. As the amount of internet traffic increases due to more consumers
accessing websites from their mobile devices, tablets or computers, many
businesses will expand their online presence. As a result, demand for digital
adverting services will rise as more businesses use advertising to drive website
traffic volumes. Internet traffic volume is expected to increase substantially in 2019,
representing a potential opportunity for the industry.
Total advertising expenditure

Total advertising expenditure typically trends in line with corporate profit. When
corporate profit rises, businesses are likely to revitalize their advertising budgets.
In 2019, total advertising expenditure is expected to increase.
Consumer spending
A rise in consumer spending indicates that more consumers are making

discretionary purchases. This trend encourages many businesses to invest in
advertising services to boost brand awareness and remain competitive. As a result
of these services, businesses benefit from a larger customer base. In 2019,
consumer spending is expected to increase.
Corporate profit
As businesses become more profitable, they often expand their advertising budgets,
since many digital advertising services result in a strong return on investment.
Thus a rise in corporate profitability, particularly in the retail, finance, automotive
and telecommunications sectors, stimulates demand for digital advertising services.
Corporate profit is expected to decline in 2019, representing a threat to the
industry.
Investor uncertainty
Investor uncertainty is an important indicator of industry performance. The degree

to which businesses invest in advertising is related to the confidence that decision
makers have in the market. As uncertainty increases, businesses may decide to
reduce or suspend advertising activities. In 2019, investor uncertainty is expected
to decline.
Industry Services
Digital display advertising makes up an estimated 50.0% of industry revenue in

2019.
This product segment includes various forms of advertising, including banner,

which makes up 12.6% of total revenue, followed by video (10.5%), rich media (8.7%)
and sponsorship (1.5%). Over the past five years, as more users have streamed
videos online, video advertisements have steadily grown, as many advertising
agencies have strategically placed advertisements either before, during or after a
video clip. Furthermore, sponsorship advertising has exhibited growth over the past
five years, particularly for digital-only publications.
Search engine optimization
In 2019, search engine optimization (SEO) and search engine marketing services
are expected to account for 28.9% of industry revenue.
SEO services help increase a company's visibility in a search engine, such as Google,
Yahoo or Bing. Typically, websites that have favorably used SEO to appear in search
engine result pages for certain keywords are more likely to have high online visitor
traffic, which can increase clientele's sales volumes. Digital advertising agencies
that can build website algorithms with the highest relevancy can obtain favorable
placing for their clients in search results. Over the past five years, this market has
steadily grown, due to many businesses developing their online website presence.
However, over the next five years, many clients will expand their online presence
through other mediums, particularly video, which will cut into growth for this
product segment.
Major End Markets
The industry primarily relies on corporate clients from the retail, finance,
automotive and telecommunications sectors.
Retail and telecommunications
In 2019, retail and telecommunications are expected to account for 21.9% and
10.5% of industry revenue, respectively.
Retail has comprised the largest share of digital advertising spending over the past
five years, which can be partly attributed to many consumers making their retail
purchasing decisions online. According to eMarketer, while retailers have
demanded direct response advertisements over the past five years, many retailers
will move toward brand advertising, such as advertisements via video, social display
and hybrid formats.
Comparatively, telecommunication-related advertising has steadily declined over

the past five years, due to data privacy laws that have constrained the ability for
advertisers to implement digital advertisements using user data from consumers'
mobile phones. Furthermore, consolidation among telecommunication providers
has limited their demand for advertising services.
Automotive and financial services
Automotive and financial services are anticipated to make up 12.4% and 12.1% of
industry revenue, respectively.
Over the past five years, demand for digital advertising services from the
automotive sector has steadily increased, due to revitalization in consumer demand
for automobiles. In particular, many consumers have used the internet to shop for
their next vehicle, which has prompted the automotive sector to purchase more
digital advertising services. Additionally, demand for digital advertising services
from the financial sector has remained relatively stagnant over the past five years,
due to many digital advertising services, such as rich media and video formats, not
being as effective with driving customer purchasing decisions, compared with
other sectors, such as the automotive sector.
Consumer packaged goods and consumer products
In 2019, consumer packaged goods and consumer products are expected to

generate 8.8% of industry revenue.
Over the past five years, this product segment has exhibited growth. For bigger
brand products within this segment, demand for digital advertising services has
increased in line with peak seasons, such as Christmas and the back-to-school
period. Comparatively, retailers of lower-priced products within this market
segment typically purchase display advertising campaigns to build brand awareness
and encourage a strong customer base that makes repeat purchases.
Travel and media

Travel and media comprise an estimated 7.8% and 6.3% of industry revenue in
2019, respectively.
In the past five years, the travel and media sectors have increased their demanded
for digital advertising services. Over the next five years, the travel sector will
demand digital advertising services that integrate well with consumers that access
travel websites from their mobile device. Comparatively, media, which includes
social media sites, have increasingly used digital advertising services to generate
website traffic and monetize their websites.
Computing products and consumer electronics
In 2019, computing products and consumer electronics account for an estimated

8.0% of industry revenue.
Over the next five years, this product segment is expected to account for a larger
share of industry revenue. As consumer electronics are expected to exhibit high
growth over the next five years, many electronic companies that manufacture
devices, such as digital and video cameras, telephones and TVs, among other
products, will increase their demand for digital advertising services.
Other sectors
Other sectors include the healthcare and pharmaceutical sector, as well as the
entertainment sector, among others.
Over the next five years, many sectors, such as entertainment, will increasingly
demand digital advertising services to attract users that increasingly access
websites with their smartphone and tablet.
PixelFire Initial Target Market

At launch, PixelFire will focus on businesses that are driving more than $1 million in
e-commerce sales per year and looking to spend more than $5,000 per month on
digital advertising. Many of these clients will have both a digital and retail presence
and will be looking to grow their digital footprint across multiple channels without
having to hire an internal team. While geographic location is not a barrier, PixelFire
will initially focus on West Coast businesses due to the founders' existing network.
Lastly, PixelFire is not limiting themselves on the type of e-commerce product the
client sells but will be looking to work with clients who have average order values
("AOV") above $35, which will make digital advertising easier and more profitable.
Competition
Competitive Landscape
The digital marketing agency landscape is filled with thousands of small companies
that have fewer than ten employees with only a handful of organizations that have
reached scale to have more than 50 employees. Additionally, the market is rapidly
becoming more reliant on various technology and software providers, who
themselves are now some of the biggest competitors in the market. Detailed below
are several of the large digital agencies as well as large service providers in the
market.
Large Digital Marketing Agencies
• Ignite Visibility
• Ignite Visibility is one of the highest awarded digital marketing agency
in the industry, specializing in digital marketing strategy, SEO, paid
media, social media, email marketing, analytics, Amazon, and CRO.
• WebFX
• WebFX is a performance-focused digital marketing agency with

services designed to increase qualified leads, phone calls, and
transactions for clients. Founded in 1996 and headquartered in
Harrisburg, Penn., they have over 250 digital marketing, design, and
development experts who serve customers through SEO, PPC, web
design, and more.
• Power Digital Marketing

• Power Digital is a digital marketing agency based in San Diego with an

office in New York. The agency, founded in 2012, has more than 300
employees and provides content marketing, email marketing, PPC,
SEO, social media marketing, web design, and PR services. Power
Digital serves mid-market and other-sized companies in the consumer
products & services, advertising & marketing, business services, and
retail industries.
• Disruptive Advertising
• This Utah-based agency has a marketing team of 50+ that has

conducted over 2,500 marketing campaign audits since 2011.
Disruptive Advertising specializes in traffic, conversion, and analytics
to help its clients outperform their competitors.
Service Providers That Displace Agencies
• SEMrush
• SEMrush is a leading online visibility management software-as-a-
service platform. With over 7 million businesses having used the
platform across 50 products, tools and add-ons including tools for
search, content, social media, and market research. The company
tracks data from more than 140 countries, seamlessly integrates with
Google and task management platforms.
• Ahrefs
• Ahrefs is a software company that develops online SEO tools and free
educational materials for marketing professionals. Ahrefs database has
over 11 billion keywords and more than 400 billion indexed pages.
• MailChimp/Klaviyo
• Both of these companies are best-in-class email marketing and growth

marketing platforms that helps deliver more personalized experiences
across owned marketing channels like email, SMS, in-app
notifications, and web.
PixelFire Advantages
While the market is highly competitive, PixelFire sets themselves apart by

leveraging proprietary technology and world-class third party software.
Additionally, PixelFire will only initially work with clients who operate within
specific niches in the e-commerce space and this will allow PixelFire to develop a
sector expertise and reputation for excellence that will drive organic growth.
Some of the key advantages that PixelFire will have when going head-to-head with
competitors includes the following:
• Targeted user segments to conduct market research that is the exact

audience of the client
• Relationships with BI data firms that help find the sweet spot in terms of
pricing, sales, etc. These kinds of licenses cost nearly 6-figures but PixelFire
has a sweetheart deal
• Custom reporting dashboard that brings in paid, organic and outbound sales
touchpoints
• Custom dashboard for A/B split testing, which allows agency and customers
to take analysis and turn into immediate actionable copy tests
• Direct integration with eCommerce platforms (WooCommerce, Shopify, Wix)
or off-the-shelf CMS platform
Keys to Success
Given the competitive nature of the industry, PixelFire will need to be aware of the
various keys to success that are critical for long-term growth in the market.
• Ability to quickly adopt new technology

• Digital agencies must stay up-to-date with the latest developments in
technology, from the newest advertising platform to the latest
software used to track and analyze campaigns
• Membership of an industry organization
• Membership in the American Association of Advertising Agencies may

indicate a higher level of professionalism in operations and boost the
agency's credibility and image
• Ability to compete on tender

• As a highly competitive industry, digital advertising agencies must be

able to develop professional proposals for work and accounts to
secure contracts
• Having a good reputation
• Digital advertisers that develop a solid brand with a good reputation

achieve a greater level of success within the industry
• Proprietary Technology
• Building and scaling tools and technology that are proprietary will
allow PixelFire to scale and capture market share with a defensible
offering that can increase LTV and reduce long-term churn
Execution
Marketing & Sales
Like other rapidly growing B2B companies, PixelFire will focus on targeted digital
and print marketing, multiple advertising campaigns, conventions/trade shows,
and strategic partnerships. Since PixelFire has already been offering its services on
a consulting basis and has developed a loyal following, organic inbound traffic is
already coming in and will continue to create a compounding effect that will propel
PixelFire to strong and sustainable growth.
In order to continue growth and maintain their industry-leading reputation,

PixelFire plans to utilize their own digital marketing knowledge to expand within
their core markets, growing into new markets, and increase wallet share with
existing customers.
Digital and Print Marketing
PixelFire will launch a robust digital marketing campaign across paid search and
through digital publications/blogs specific to their core demographics. With a
unique skill set and offering, PixelFire will be able to gain meaningful momentum
through paid search, providing them with business demographic information and
contact information for re-targeting and promotional messaging. Additionally, by
working with key online and print publications and blogs specific to the company's
various end-markets, PixelFire will be able to develop a strong industry presence
that will be crucial for recurring customer growth. Some of the tactics that
PixelFire will use to attract customers will include free site audits, industry specific
templates, and other free services to capture emails and upsell customers.
Strategic Partners
Relationships will be formed with multiple organizations that are selling to the
same end-customer including with design agencies, print media groups, traditional
advertising agencies, and other non-marketing service providers like bankers,
lawyers, and small business associations. By building a large team of strategic
partners, PixelFire will be able to generate a stable and reliable customer base that
will ultimately lead to repeat customers and an increased potential for larger
contracts.
Customer Re-engagement
As with any business services company, recurring customers are a vital source of
income as well as word-of-mouth for a growing business. As PixelFire continues to
sell within their core demographic, they will be using various engagement tactics to
drive retention and improve new referrals from existing customers. Through
building a strong group of loyal customers, PixelFire will be able to identify key
growth opportunities for the business including new product lines and end markets
to work with.
Organic Marketing
As a leading digital marketing agency, PixelFire will be able to also publish onsite
blogs, detailed landing pages, and other relevant content, as they would for any
client, in order to drive organic rankings and new customer acquisition. By focusing
on long tail niche content in combination with highly competitive keywords and
questions, PixelFire will generate strong SEO growth and generate meaningful
organic traffic.
Trade Shows/Conventions
Many businesses find success with generating brand awareness and increasing
sales conversion by attending trade shows and conventions to market their
products and services. These gatherings allow businesses, consumers, and potential
large partners to make a connection with the business and its leadership team
before committing to a long-term contract. There are several large technology,
small business, and entrepreneur conventions and organizations held all over the
United States that will provide a sizable pool of potential customers that PixelFire
can interact with and demonstrate their services and product’s functionality.
Operations
Location
The business will be based out of the Bay Area where PixelFire's two founders are
located. Given office rent prices and the plan to hire resources independent of
physical location, PixelFire is planning to operate as a fully remote organization for
the near term. There will be a small rent expense to cover the founders' rent but no
other rent or office costs will be incurred by PixelFire in the projections.
Technology
PixelFire will be utilizing many of the industry's leading automation, data tracking,
analytics software for handling client work. This technology will include SEO tools,
paid advertising automation platforms, A/B testing systems, and other useful
resources that can help client's achieve their growth targets. Additionally, PixelFire
will utilize several internal tools including a CRM, Slack, an email marketing
platform, and other services to grow the business and manage operations and a
remote workforce at scale.
Milestones & Metrics

Milestones Table
Milestone Due Date
Secure Funding September 01, 2021
Complete Resource Hiring Plan January 01, 2023
Launch CRO & Design Services February 01, 2023
Launch Proprietary Technology Platform September 01, 2023

For Clients
Go Live With Proprietary Technology September 01, 2025

Service As Standalone
Key metrics
As with many B2B businesses, PixelFire will be tracking several key customer
acquisition and customer retention metrics that will drive overall profitability and
allow for more reliable hiring need forecasting.
The metrics PixelFire will be tracking include:
• Revenue by Service Line

• EBITDA
• Contribution Margin by Service Line
• Cost Per Acquisition ("CPA")
• Churn Rate by Service Line
• Revenue Per Employee

• MRR and ARR
Company
Overview
PixelFire is co-owned by the two founders who each have a 50% ownership in the
business. The company is based in the Bay Area and is a California LLC. There are
no other ownership interests in the business at this time.
Team
Leadership Team
PixelFire is currently being run as a small agency by the two founders who are
looking to secure funding to make additional hiring and take on enterprise-level
clients. The two founders, Zubair and Hisham, have extensive experience in the
market not only as e-commerce digital marketers but also as technical/UX
engineers.
Tom was previously a technical/UX engineer at a successful digital marketing

agency where he worked on building proprietary dashboards, reporting tools, and
advertising automation for both internal and external use cases. Stephen, on the
other hand, is PixelFire's e-commerce marketing expert with more than a decade
working at e-commerce companies including a fashion business in the Bay Area in
2013 that was later sold in 2019. Since the sale of that business, Stephen has worked
as a contractor developing his product-side and marketing expertise for small to
medium size businesses.
The two founders compliment each other's skillsets and both are looking to move
PixelFire from a small contract consulting business to a full service digital
marketing agency.
Hiring Strategy
In addition to PixelFire's leadership team, there will be a strong hiring strategy to

handle all the new clients as the business grows over the five year projection
period. With a mix of full-time hires and contractors, the Company will look to
scale hiring to meet client demand but not be overstaffed so that people are not
fully utilized.
The following roles will be areas PixelFire will hire for to handle client services.
• E-Commerce Product Engineer

• Acts as primary technical architect and engineer for all development,
testing, and product development
• Analyst/ Technician
• Full-stack in-house marketer that is expert in all services the firm

employs. Has extensive background and experience in search engine
optimization, conversion rate optimization, paid search marketing,
outbound email, and site analytics
• Paid Media Specialist
• Initially outsourced, this role handles all of the Google / Microsoft /

LinkedIn / etc. ad management as well as its reporting
• Project Manager
• Liaisons the day to day relationships with our clients, working closely
with technical and marketing leads to deliver on contract scope and
goals. Managers the timelines and execution of all projects to ensure
their success
• Account Manager
• In-house sales lead that possesses ability to sell-in and move

prospects through the buyer’s journey. Based on our target markets,
this role has experience and knowledge specifically to help those
business types grow
• Outsource Junior Roles
• Copywriting
• Design
• Paid Marketing
• CRO Analyst
PixelFire anticipates growing from 13 resources in Year 1 to more than 45 by Year 5.

As outlined in the chart below, this growth will result in Year 5 personnel expenses
exceeding $3.8 million, up from $965,000 in Year 1. Revenue per employee will
increase from $185,000 in Year 1 to $262,000 in Year 5.

Financial Plan
Forecast
Key assumptions
PixelFire developed the following financials utilizing their extensive industry

knowledge and relevant historic financial performance.
At launch, PixelFire will operate across four main service categories all focused on
digital marketing services for clients. The main categories are outlined below as
well as their revenue assumptions used in the financial projections.

• Customers will pay a monthly recurring charge that averages out to
$3,000
• Given the long-term nature of SEO, the churn rate is 5%

• Customers pay the agency a fee of 15% of the client's advertising
budget, which was assumed to be an average of $10,000 per month
• Churn rate is slightly higher than SEO at 7.5%

• Customers will pay a monthly recurring charge that is tiered based on
the number of tests and campaigns run per month but will average out
to $4,000
• Churn rate is high at 20% due to nature of the service line

driving copy or rich and engaging designs
• This is an ancillary service within PixelFire's paid and optimization
offerings but can be expanded to help clients develop all onsite and
paid messaging
• Customers will be charged per hour for design and writing services at
an average rate of $100 per hour
The financial projections assume a SBA loan for $300,000 at 8% over 10 years and
those funds will be sufficient to cover all growth and hiring projections outlined in
the business plan.
PixelFire believes that the introduction of proprietary reporting and marketing

forecast dashboards will help accelerate new customer acquisition and allow churn
rates to remain low for existing customers. This will be an integral selling point in
PixelFire's service packages as a way to visualize audits, changes, and provide
instant access/feedback to the user. In the future, PixelFire may look to offer the
reporting and forecasting dashboard as a separate stand-alone service offering.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Sources of Funds
Given the management team's long-standing success in the industry, PixelFire will
be looking to secure an SBA loan in the amount of $300,000 to finance the
acquisition of initial startup technology costs as well as cover initial cash flow
needs as they ramp up customer acquisition and operates at a loss in Year 1.
Use of funds
PixelFire is securing an SBA loan for $300,000 that will be used to fund initial
technology asset purchases of $65,000, startup costs including licensing, legal, and
other marketing costs of $50,000, as well as cover cash flow needs during Year 1 as
PixelFire grows from negative operating income to cash flow positive by year end.
Statements
Projected Profit and Loss
FY2023 FY2023 FY2024 FY2025 FY2026
Revenue $2,535,009 $6,134,191 $8,530,075 $10,691,847 $12,577,804
Direct Costs $202,801 $490,735 $682,406 $855,348 $1,006,224

Gross Margin $2,332,208 $5,643,456 $7,847,669 $9,836,499 $11,571,579
Gross Margin % 92% 92% 92% 92% 92%
Operating
Expenses
Salaries &
$834,588 $1,653,750 $2,315,254 $2,920,698 $3,303,737
Wages
Employee
Related $130,918 $255,150 $343,980 $434,110 $503,219
Expenses
Marketing $380,251 $920,129 $1,279,511 $1,603,777 $1,886,671
IT Systems $25,350 $61,342 $85,301 $106,918 $125,778
Business
$76,050 $184,026 $255,902 $320,756 $377,334
Software
Professional
$26,500 $18,000 $20,000 $24,000 $26,000
Services
Rent $26,000 $24,000 $26,000 $27,500 $30,000
Insurance $12,675 $30,671 $42,650 $53,460 $62,889
Travel & Meals $6,000 $7,500 $9,000 $12,000 $15,000
Miscellaneous $25,350 $61,342 $85,301 $106,918 $125,778
Startup
$50,000
Expenses
Total Operating
$1,593,682 $3,215,910 $4,462,900 $5,610,136 $6,456,405
Expenses
Operating
$738,526 $2,427,546 $3,384,770 $4,226,362 $5,115,174
Income
Interest Incurred $21,386 $21,714 $19,891 $17,916 $15,778
Depreciation and
$13,000 $13,000 $13,000 $13,000 $13,000
Amortization
Gain or Loss from

Sale of Assets
Income Taxes $140,828 $478,566 $670,376 $839,089 $1,017,280
Total Expenses $1,971,698 $4,219,924 $5,848,573 $7,335,489 $8,508,688

Net Profit $563,311 $1,914,267 $2,681,502 $3,356,358 $4,069,116
Net Profit /
22% 31% 31% 31% 32%
Sales
Projected Balance Sheet
Starting
FY2023 FY2023 FY2024 FY2025 FY2026
Balances
Cash $551,891 $2,344,549 $4,896,712 $8,133,657 $12,099,258
Accounts
$393,567 $585,420 $778,616 $946,867 $1,100,425
Receivable
Inventory
Other Current
Assets
Total Current
$945,458 $2,929,969 $5,675,328 $9,080,524 $13,199,682
Assets
Long-Term
$65,000 $65,000 $65,000 $65,000 $65,000
Assets
Accumulated
($13,000) ($26,000) ($39,000) ($52,000) ($65,000)
Depreciation
Total Long-
$52,000 $39,000 $26,000 $13,000 $0
Term Assets
Total Assets $997,458 $2,968,969 $5,701,328 $9,093,524 $13,199,682

Accounts
$58,083 $85,485 $113,245 $137,575 $159,769
Payable
Income Taxes
$94,717 $146,526 $193,412 $230,684 $273,434
Payable
Sales Taxes
$0 $0 $0 $0 $0
Payable
Short-Term
$21,966 $23,789 $25,764 $27,902 $30,218
Debt
Prepaid
$0 $0 $0 $0 $0 $0
Revenue
Total Current
$0 $174,766 $255,800 $332,421 $396,161 $463,421
Liabilities
Long-Term Debt $259,380 $235,591 $209,827 $181,925 $151,707
Long-Term
$259,380 $235,591 $209,827 $181,925 $151,707
Liabilities
Total
$0 $434,147 $491,391 $542,248 $578,086 $615,128
Liabilities
Paid-In Capital
Retained
$0 $0 $563,311 $2,477,578 $5,159,080 $8,515,438
Earnings
Earnings $563,311 $1,914,267 $2,681,502 $3,356,358 $4,069,116
Total Owner's
$0 $563,311 $2,477,578 $5,159,080 $8,515,438 $12,584,554
Equity
Total
Liabilities & $0 $997,458 $2,968,969 $5,701,328 $9,093,524 $13,199,682
Equity
Projected Cash Flow Statement
FY2023 FY2023 FY2024 FY2025 FY2026
Net Cash Flow

from Operations
Net Profit $563,311 $1,914,267 $2,681,502 $3,356,358 $4,069,116
Depreciation &
$13,000 $13,000 $13,000 $13,000 $13,000
Amortization
Change in
Accounts ($393,567) ($191,853) ($193,196) ($168,251) ($153,558)
Receivable
Change in
Inventory
Change in
Accounts $58,083 $27,402 $27,760 $24,330 $22,194
Payable
Change in
Income Tax $94,717 $51,809 $46,886 $37,272 $42,750
Payable
Change in Sales
$0 $0 $0 $0 $0
Tax Payable
Change in
Prepaid $0 $0 $0 $0 $0
Revenue
Net Cash Flow

$335,545 $1,814,624 $2,575,953 $3,262,708 $3,993,503
from Operations
Investing &
Financing
Assets
Purchased or ($65,000)
Sold
Net Cash from

($65,000)
Investing
Investments
Received
Dividends &
Distributions
Change in
Short-Term $21,966 $1,823 $1,974 $2,138 $2,316
Debt
Change in Long-
$259,380 ($23,789) ($25,764) ($27,902) ($30,218)
Term Debt
Net Cash from

$281,346 ($21,966) ($23,789) ($25,764) ($27,902)
Financing
Cash at Beginning
$0 $551,891 $2,344,549 $4,896,712 $8,133,657
of Period
Net Change in Cash $551,891 $1,792,658 $2,552,163 $3,236,945 $3,965,601
Cash at End of
$551,891 $2,344,549 $4,896,712 $8,133,657 $12,099,258
Period
Appendix
Profit and Loss Statement (With monthly detail)
FY2023 Sept '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22 May '22 June '22 July '22 Aug '22
Total Revenue $44,375 $69,188 $91,695 $127,713 $159,990 $190,584 $225,841 $258,159 $291,889 $322,527 $359,481 $393,567
Total Direct
$3,550 $5,535 $7,336 $10,217 $12,799 $15,247 $18,067 $20,653 $23,351 $25,802 $28,758 $31,486
Costs
Gross Margin $40,825 $63,653 $84,360 $117,496 $147,191 $175,337 $207,774 $237,506 $268,538 $296,725 $330,723 $362,082
Gross Margin % 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92%
Operating
Expenses
Salaries and
$57,914 $57,914 $57,914 $57,914 $57,918 $72,502 $78,752 $78,752 $78,752 $78,752 $78,752 $78,752
Wages
Employee Related
$8,583 $8,583 $8,582 $8,583 $8,584 $11,500 $12,751 $12,750 $12,750 $12,751 $12,750 $12,751
Expenses
Marketing $6,656 $10,378 $13,755 $19,157 $23,998 $28,588 $33,876 $38,724 $43,783 $48,379 $53,922 $59,035
IT Systems $444 $692 $917 $1,277 $1,600 $1,905 $2,259 $2,581 $2,919 $3,226 $3,594 $3,936
Business Software $1,331 $2,076 $2,751 $3,831 $4,800 $5,717 $6,776 $7,744 $8,757 $9,676 $10,784 $11,807
Professional
$10,000 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Services
Rent $4,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Insurance $222 $346 $458 $639 $800 $953 $1,129 $1,291 $1,459 $1,613 $1,797 $1,968
Travel & Meals $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Miscellaneous $444 $692 $917 $1,277 $1,600 $1,905 $2,259 $2,581 $2,919 $3,226 $3,594 $3,936
Startup Expenses $50,000
33
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Total
Operating $140,094 $84,680 $89,294 $96,678 $103,300 $127,072 $141,800 $148,425 $155,339 $161,621 $169,196 $176,183
Expenses
Operating
($99,269) ($21,027) ($4,935) $20,818 $43,891 $48,265 $65,974 $89,082 $113,198 $135,104 $161,527 $185,898
Income
Interest Incurred $2,000 $1,989 $1,978 $1,967 $1,956 $1,945 $1,933 $1,922 $1,910 $1,899 $1,887
Depreciation and
$1,083 $1,084 $1,083 $1,083 $1,084 $1,083 $1,083 $1,084 $1,083 $1,083 $1,084 $1,083
Amortization
Gain or Loss from

Sale of Assets
Income Taxes $0 $0 $0 $0 $0 $0 $6,860 $17,213 $22,038 $26,423 $31,708 $36,586
Total Expenses $144,727 $93,299 $99,702 $109,956 $119,149 $145,358 $169,755 $189,308 $203,734 $216,839 $232,645 $247,226
Net Profit ($100,352) ($24,111) ($8,007) $17,757 $40,841 $45,225 $56,086 $68,852 $88,155 $105,688 $126,836 $146,341
Net Profit /
(226%) (35%) (9%) 14% 26% 24% 25% 27% 30% 33% 35% 37%
Sales
34
FY2023 FY2023 FY2024 FY2025 FY2026
Total Revenue $2,535,009 $6,134,191 $8,530,075 $10,691,847 $12,577,804
Total Direct Costs $202,801 $490,735 $682,406 $855,348 $1,006,224
Gross Margin $2,332,208 $5,643,456 $7,847,669 $9,836,499 $11,571,579
Gross Margin % 92% 92% 92% 92% 92%
Operating Expenses
Salaries and Wages $834,588 $1,653,750 $2,315,254 $2,920,698 $3,303,737
Employee Related Expenses $130,918 $255,150 $343,980 $434,110 $503,219
Marketing $380,251 $920,129 $1,279,511 $1,603,777 $1,886,671
IT Systems $25,350 $61,342 $85,301 $106,918 $125,778
Business Software $76,050 $184,026 $255,902 $320,756 $377,334
Professional Services $26,500 $18,000 $20,000 $24,000 $26,000
Rent $26,000 $24,000 $26,000 $27,500 $30,000
Insurance $12,675 $30,671 $42,650 $53,460 $62,889
Travel & Meals $6,000 $7,500 $9,000 $12,000 $15,000
Miscellaneous $25,350 $61,342 $85,301 $106,918 $125,778
Startup Expenses $50,000
Total Operating Expenses $1,593,682 $3,215,910 $4,462,900 $5,610,136 $6,456,405
Operating Income $738,526 $2,427,546 $3,384,770 $4,226,362 $5,115,174
Interest Incurred $21,386 $21,714 $19,891 $17,916 $15,778
Depreciation and Amortization $13,000 $13,000 $13,000 $13,000 $13,000
Gain or Loss from Sale of Assets
Income Taxes $140,828 $478,566 $670,376 $839,089 $1,017,280
Total Expenses $1,971,698 $4,219,924 $5,848,573 $7,335,489 $8,508,688
Net Profit $563,311 $1,914,267 $2,681,502 $3,356,358 $4,069,116
35
Net Profit / Sales 22% 31% 31% 31% 32%
36
Balance Sheet (With Monthly Detail)

Starting
Sept '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22 May '22 June '22 July '22 Aug '22
Balances
Cash $129,930 $53,735 $25,860 $12,153 $24,727 $43,118 $75,219 $132,947 $213,582 $272,664 $398,862 $551,891
Accounts
$44,375 $69,188 $91,695 $127,713 $159,990 $190,584 $225,841 $258,159 $291,889 $322,527 $359,481 $393,567
Receivable
Inventory
Other Current
Assets
Total Current
$174,305 $122,923 $117,556 $139,866 $184,717 $233,702 $301,060 $391,106 $505,471 $595,190 $758,343 $945,458
Assets
Long-Term
$65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Assets
Accumulated
($1,083) ($2,167) ($3,250) ($4,333) ($5,417) ($6,500) ($7,583) ($8,667) ($9,750) ($10,833) ($11,917) ($13,000)
Depreciation
Total Long-
$63,917 $62,833 $61,750 $60,667 $59,583 $58,500 $57,417 $56,333 $55,250 $54,167 $53,083 $52,000
Term Assets
Total Assets $238,221 $185,756 $179,306 $200,533 $244,300 $292,202 $358,476 $447,440 $560,721 $649,357 $811,426 $997,458
Accounts
$38,573 $11,859 $15,067 $20,199 $24,799 $29,158 $34,182 $38,788 $43,594 $47,960 $53,226 $58,083
Payable
Income Taxes
$0 $0 $0 $0 $0 $0 $6,860 $24,073 $46,111 $26,423 $58,131 $94,717
Payable
Sales Taxes
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payable
Short-Term Debt $20,418 $20,554 $20,691 $20,829 $20,968 $21,108 $21,248 $21,390 $21,533 $21,676 $21,821 $21,966
Prepaid Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current
$0 $58,991 $32,413 $35,758 $41,028 $45,766 $50,266 $62,291 $84,251 $111,238 $96,059 $133,178 $174,766
Liabilities
Long-Term Debt $279,582 $277,806 $276,018 $274,218 $272,406 $270,582 $268,746 $266,898 $265,037 $263,164 $261,279 $259,380
37
Long-Term
$279,582 $277,806 $276,018 $274,218 $272,406 $270,582 $268,746 $266,898 $265,037 $263,164 $261,279 $259,380
Liabilities
Total
$0 $338,573 $310,219 $311,776 $315,246 $318,173 $320,848 $331,037 $351,148 $376,275 $359,223 $394,456 $434,147
Liabilities
Paid-In Capital
Retained
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Earnings
Earnings ($100,352) ($124,463) ($132,470) ($114,713) ($73,872) ($28,647) $27,439 $96,291 $184,446 $290,134 $416,970 $563,311
Total Owner's
$0 ($100,352) ($124,463) ($132,470) ($114,713) ($73,872) ($28,647) $27,439 $96,291 $184,446 $290,134 $416,970 $563,311
Equity
Total
Liabilities & $0 $238,221 $185,756 $179,306 $200,533 $244,300 $292,202 $358,476 $447,440 $560,721 $649,357 $811,426 $997,458
Equity
38
Starting Balances FY2023 FY2023 FY2024 FY2025 FY2026
Cash $551,891 $2,344,549 $4,896,712 $8,133,657 $12,099,258
Accounts Receivable $393,567 $585,420 $778,616 $946,867 $1,100,425
Inventory
Other Current Assets
Total Current Assets $945,458 $2,929,969 $5,675,328 $9,080,524 $13,199,682
Long-Term Assets $65,000 $65,000 $65,000 $65,000 $65,000
Accumulated Depreciation ($13,000) ($26,000) ($39,000) ($52,000) ($65,000)
Total Long-Term Assets $52,000 $39,000 $26,000 $13,000 $0
Total Assets $997,458 $2,968,969 $5,701,328 $9,093,524 $13,199,682
Accounts Payable $58,083 $85,485 $113,245 $137,575 $159,769
Income Taxes Payable $94,717 $146,526 $193,412 $230,684 $273,434
Sales Taxes Payable $0 $0 $0 $0 $0
Short-Term Debt $21,966 $23,789 $25,764 $27,902 $30,218
Prepaid Revenue $0 $0 $0 $0 $0 $0
Total Current Liabilities $0 $174,766 $255,800 $332,421 $396,161 $463,421
Long-Term Debt $259,380 $235,591 $209,827 $181,925 $151,707
Long-Term Liabilities $259,380 $235,591 $209,827 $181,925 $151,707
Total Liabilities $0 $434,147 $491,391 $542,248 $578,086 $615,128
Paid-In Capital
Retained Earnings $0 $0 $563,311 $2,477,578 $5,159,080 $8,515,438
Earnings $563,311 $1,914,267 $2,681,502 $3,356,358 $4,069,116
Total Owner's Equity $0 $563,311 $2,477,578 $5,159,080 $8,515,438 $12,584,554
Total Liabilities & Equity $0 $997,458 $2,968,969 $5,701,328 $9,093,524 $13,199,682
39
40
Cash Flow Statement (With Monthly Detail)

FY2023 Sept '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22 May '22 June '22 July '22 Aug '22
Net Cash Flow

from
Operations
Net Profit ($100,352) ($24,111) ($8,007) $17,757 $40,841 $45,225 $56,086 $68,852 $88,155 $105,688 $126,836 $146,341
Depreciation &
$1,083 $1,083 $1,083 $1,083 $1,083 $1,083 $1,083 $1,083 $1,083 $1,083 $1,083 $1,083
Amortization
Change in
Accounts ($44,375) ($24,813) ($22,508) ($36,018) ($32,276) ($30,594) ($35,257) ($32,318) ($33,730) ($30,638) ($36,954) ($34,086)
Receivable
Change in
Inventory
Change in
Accounts $38,573 ($26,714) $3,207 $5,133 $4,599 $4,360 $5,024 $4,605 $4,807 $4,366 $5,266 $4,857
Payable
Change in
Income Tax $0 $0 $0 $0 $0 $0 $6,860 $17,213 $22,038 ($19,688) $31,708 $36,586
Payable
Change in Sales
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Tax Payable
Change in
Prepaid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Revenue
Net Cash Flow

from ($105,070) ($74,554) ($26,224) ($12,045) $14,247 $20,075 $33,796 $59,435 $82,353 $60,811 $127,939 $154,782
Operations
Investing &
Financing
Assets
Purchased or ($65,000)
Sold
41
Net Cash from

($65,000)
Investing
Investments
Received
Dividends &
Distributions
Change in
Short-Term $20,418 $136 $137 $138 $139 $140 $141 $142 $143 $144 $145 $145
Debt
Change in
Long-Term $279,582 ($1,776) ($1,788) ($1,800) ($1,812) ($1,824) ($1,836) ($1,848) ($1,861) ($1,873) ($1,886) ($1,898)
Debt
Net Cash from

$300,000 ($1,640) ($1,651) ($1,662) ($1,673) ($1,684) ($1,695) ($1,707) ($1,718) ($1,730) ($1,741) ($1,753)
Financing
Cash at Beginning
$0 $129,930 $53,735 $25,860 $12,153 $24,727 $43,118 $75,219 $132,947 $213,582 $272,664 $398,862
of Period
Net Change in
$129,930 ($76,194) ($27,875) ($13,707) $12,574 $18,391 $32,101 $57,729 $80,635 $59,082 $126,198 $153,029
Cash
Cash at End of
$129,930 $53,735 $25,860 $12,153 $24,727 $43,118 $75,219 $132,947 $213,582 $272,664 $398,862 $551,891
Period
42
FY2023 FY2023 FY2024 FY2025 FY2026
Net Cash Flow from Operations
Net Profit $563,311 $1,914,267 $2,681,502 $3,356,358 $4,069,116
Depreciation & Amortization $13,000 $13,000 $13,000 $13,000 $13,000
Change in Accounts Receivable ($393,567) ($191,853) ($193,196) ($168,251) ($153,558)
Change in Inventory
Change in Accounts Payable $58,083 $27,402 $27,760 $24,330 $22,194
Change in Income Tax Payable $94,717 $51,809 $46,886 $37,272 $42,750
Change in Sales Tax Payable $0 $0 $0 $0 $0
Change in Prepaid Revenue $0 $0 $0 $0 $0
Net Cash Flow from Operations $335,545 $1,814,624 $2,575,953 $3,262,708 $3,993,503
Investing & Financing
Assets Purchased or Sold ($65,000)
Net Cash from Investing ($65,000)
Investments Received
Dividends & Distributions
Change in Short-Term Debt $21,966 $1,823 $1,974 $2,138 $2,316
Change in Long-Term Debt $259,380 ($23,789) ($25,764) ($27,902) ($30,218)
Net Cash from Financing $281,346 ($21,966) ($23,789) ($25,764) ($27,902)
Cash at Beginning of Period $0 $551,891 $2,344,549 $4,896,712 $8,133,657
Net Change in Cash $551,891 $1,792,658 $2,552,163 $3,236,945 $3,965,601
Cash at End of Period $551,891 $2,344,549 $4,896,712 $8,133,657 $12,099,258
43

Digital Marketing Agency Business Plan

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Digital Marketing Agency Business Plan

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Hasham bin Noor, M.Zubair, Hammad, M.

Digital Marketing Agency

PixelFire is well-positioned to quickly become one of the most trusted digital

After completing their fundraising, PixelFire will expand their operations to four

• Search Engine Optimization

• Includes full-service PPC marketing efforts, including search engine

• Conversion Rate Optimization

• eCommerce CRO services will run over thousands of AB tests across a

• Copywriting & Design Services

• Industry-focused content writers and designers who excel in

Financial Highlights by Year

• Search Engine Optimization

• Includes full-service PPC marketing efforts, including search engine

• Conversion Rate Optimization

• eCommerce CRO services will run over thousands of AB tests across a

• Copywriting & Design Services

• Industry-focused content writers and designers who excel in

Many businesses have demanded industry services to spread advertisements in

Key Market Drivers

Internet traffic volume

Total advertising expenditure

A rise in consumer spending indicates that more consumers are making

Investor uncertainty is an important indicator of industry performance. The degree

Digital display advertising makes up an estimated 50.0% of industry revenue in

This product segment includes various forms of advertising, including banner,

Search engine optimization

Major End Markets

Retail and telecommunications

Comparatively, telecommunication-related advertising has steadily declined over

Automotive and financial services

Consumer packaged goods and consumer products

In 2019, consumer packaged goods and consumer products are expected to

Travel and media

Computing products and consumer electronics

In 2019, computing products and consumer electronics account for an estimated

PixelFire Initial Target Market

Large Digital Marketing Agencies

• WebFX is a performance-focused digital marketing agency with

• Power Digital Marketing

• Power Digital is a digital marketing agency based in San Diego with an

• This Utah-based agency has a marketing team of 50+ that has

Service Providers That Displace Agencies

• Both of these companies are best-in-class email marketing and growth

While the market is highly competitive, PixelFire sets themselves apart by

• Targeted user segments to conduct market research that is the exact

• Ability to quickly adopt new technology

• Membership in the American Association of Advertising Agencies may

• Ability to compete on tender

• As a highly competitive industry, digital advertising agencies must be

• Having a good reputation

• Digital advertisers that develop a solid brand with a good reputation

In order to continue growth and maintain their industry-leading reputation,

Digital and Print Marketing

Milestones & Metrics

Milestone Due Date

Secure Funding September 01, 2021

Complete Resource Hiring Plan January 01, 2023

Launch CRO & Design Services February 01, 2023

Launch Proprietary Technology Platform September 01, 2023

Go Live With Proprietary Technology September 01, 2025

The metrics PixelFire will be tracking include:

• Revenue by Service Line

• Revenue Per Employee

Tom was previously a technical/UX engineer at a successful digital marketing