The name of our company will be www.webwidth.com and we will provide three types
of services. We will create Web Pages, Non-commercial programs and blueprints in
Auto-CAD for construction plans. Our company will enter a very competitive market, but
our unique business strategies will help us succeed.
In order to start our business there are several steps that we have to carry out first. One of
the most important cost drivers in every company is labor; in this aspect our company
will be very cost effective because a great part of the necessary activities to provide our
services will be performed abroad. The Webwidth Company expects to establish
connections with small businesses in countries such as India, China and Uruguay where
fixed and variable costs can be lower than if our company were to execute all activities in
Once we have established connections with the suppliers of the service, our duty as
intermediaries will be to find customers. In the moment a client company hires us to
create a web page or to write a program we will send the order to a supplier overseas and
as soon as the work is done we will return it to the customers. Creating our company
requires a considerable amount of money, thorough planning and a lot of creativity. Upon
the completion of the set up stage, it is assumed that www.webwidth.com will not be a
very complicated company to run, but which will give high returns on investment.
The process in detail
It is essential to establish connections all over the world with companies that will work
with the same standards of quality as our competitors. At the beginning we may not have
many suppliers but as our business grows more companies in other countries can register
on our website. A very ambitious marketing strategy will help us find many customers in
the USA. Our customers may vary from independent architects that need construction
plans or a website to advertise their services, to giant fruit distributing companies that
need non-commercial programs to calculate the correlation between their business
The customers as well as the suppliers will receive usernames and passwords to enter our
site. With their unique ID customers and suppliers can enter the conference room and the
message board on our web site. The conference room is something similar to an 800
number, where customers can interact with our representatives. The conference room will
be featured with a video player, an instant messenger and a very powerful FTP. The
software included in the conference room will be purchased from Cisco systems and from
Rhinosoft. Cisco will sell us the IP/ TV that is a comprehensive network video system
which transmits video both live and prerecorded to PC desktops over IP networks. With
the video player our clients will be able to negotiate with our representatives in a very
personal way, almost as though they were negotiating from person to person in a real life
environment. On the other hand, Rhinosoft will supply an FTP-tree ActiveX that will
enable the information required to create the WebPages or to draw the blueprints to be
transferred securely and promptly. The legal terms of the contract to purchase the FTP-
tree from Rhinosoft will allow us to issue an unlimited number of accounts just as long
they are for business purposes. Whenever a client requires one of our services they can
enter our conference room 24 hours a day, and discuss aspects of the contract such as
budget, time frame and project specifications.
It is possible that we will find clients that will hire us on a permanent basis. These clients
could be those that just need blueprints or a simple and straightforward program. If they
have been working for a while with our company, and feel comfortable with our services,
they will also have the option to place their order on a project inbox, instead of having to
talk always with our customer support representatives.
As soon as we have entered into a contract with one of our clients, we will post an ad on
our message board. This message board will only be accessible to those suppliers that
have registered with us. The message will include a brief explanation of the project and
will be left on the message board for a specific amount of time. It is assumed that
proposals referring to timing and costs will be received from several companies around
the world. We will have the advantage of choosing the best company for the job. The
assigned company will meet with one of our representatives in a similar approach to the
interaction between The Webwidth Company and its clients.
Once the projects have been completed the suppliers will send them back to us. We will
then upload the WebPages on our server, or simply send them to the clients as well as the
blueprints or programs by using our FTP. The Webwidth Company would prefer to
perform all financial transactions using digital cash issued by our clients’ banks. If any
company is not eager to pay us in this way, then we will accept credit card payments.
The last component of our business activity will be to pay our suppliers. Our company is
practically working on commission, but because our services are so complex and
efficient, our commission will constitute 40% of the revenues.
Why Invest in The Webwidth Company?
The Webwidth Company will be very competitive with respect to other companies
providing the same services. One of the key advantages is that several of our costs will be
lower. We will not have to deal with production costs because we are outsourcing almost
everything. Our only costs will be selling and administrative. The fact that we are
indirectly using cheaper labor will not cause our high commissions to be questionable by
Many companies providing this same service can find that for some projects their
employees may not be very well prepared, or their budgets may not fit into their
production costs. In our case, it is possible for us to face the same problem, but having a
world of suppliers will enable us to narrow down the difficulties.
The virtual conference room will bring a lot of advantages to our company. The
Webwidth Company will be able to skip several of the ordinary negotiation steps and as a
consequence reduce selling costs. For instance, long distance call and traveling expenses
can be reduced to a feasible level. Our representatives will able to negotiate the contract
and receive the project’s specifications in only one meeting that will approximately last
Why bother to go through an intermediary?
The first reason is that we will have very good connections and neither suppliers nor
customers will have awareness of the existence of the other. Customers will probably
want the job done quickly and they will prefer to deal with us rather than wasting time
looking for suppliers around the globe.
Customers could create their own message boards and find good deals this way, but why
bother if they may only require the service once? Even the regular clients will prefer to
deal with us because suppliers overseas will not have our powerful hardware and
software. Customers would have to go back to the old school negotiation method to find
good deals abroad.
It is impossible to stop suppliers from discovering who our clients are. This may be a risk
for us, because some suppliers could try to steal or clients. Even though this risk exists
we all know that specializing is more cost effective than trying to perform many activities
within the same company. Many of our suppliers will be small companies that will not
want to spend much money in advertisement and will be eager to lets us deal with the
logistics of the business.
All three components of the equation will have something to win. The customers will
find lower rates with us that if they were hiring other companies in the USA. The
suppliers will have connections, and will not have to worry about advertising, customer
support and purchasing expensive hardware and software to meet with clients. In our
case, we will have high rates of return from our investment. In the attachment you will
find an estimate of our activities and pro forma financial statements that will show you
why you should invest in The Webwidth Company.