The capital of €82.440 allowed the coverage in 2016 and 2017 of the development of the site and since January 2018, the expansion of the services offered by WATCHANDWIN and to ensure a sufficient cash wheel.
The development of the site with the wide range of its functionalities has been realized in 2017 by a third company. It was financed in part by a bank loan.
The operating costs in 2017 mainly covered market research; support to the development of the site by a consultant and, since June 2017, the remuneration of 2 active partners.
The company also received a loan from Digital Attraxion.
The expenditure of 2016 covered pre-activity costs and expenses related to the creation of the company.
Subsidies granted by the Walloon Region have supported the company as from the beginning.
The 5-year financial plan developed by the WATCHANDWIN team is presented here below.
The income estimates are based on qualitative and quantitative market studies conducted in 2017 which have enabled to determine the value of the services offered by WATCHANDWIN. The assumptions retained are conservative.
It is important to note the annual two-digit rate of change in advertising budgets that are devoted to digital. Advertising videos become a must for advertisers of all types, a growing media!
The rate of acquisition of advertisers is based on the experience of the first surveys. It does not take into account the improvements that a systematized process can bring.
The number of views per user is based on market research and on rates obtained during the test phase of the site.
The forecast costs include two major positions, on the one hand the costs of user’s acquisition and on the other hand the costs of the salespeople responsible for acquiring advertisers.
The costs of acquiring and retaining users cover a set of actions, mainly the acquisition via social networks, a sponsorship program, a loyalty program, the support from a user’s acquisition expert and the hiring of a Community Manager to ensure dynamic and interactive animation/communication with users.
Salespeople will be gradually hired, the first in June 2018, with the aim to have a team of 5 salesman by the beginning of 2020. The rate of engagement will be monitored according to market reactions in order to ensure a good fit between costs and revenues.
A budget for the development of new features is planned each year.
Break even volume
Break even with 5000 users