Overview
54 & Cloudy is a digital marketing agency founded by industry veterans Tom and Stephen. They have combined over two decades of experience managing e-commerce sites and working in digital marketing agencies. Their goal is to help small and medium-sized businesses achieve digital growth.
While 54 & Cloudy 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. In addition, 54 & Cloudy will need to hire internal resources to manage all new clients once they have increased their marketing efforts.
54 & Cloudy 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.
54 & Cloudy 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. 54 & Cloudy has built a strong reputation in the market and is well-positioned to continue that success. 54 & Cloudy can increase staffing and expand its service offerings to meet client requirements.
Service Offerings
After completing their fundraising, 54 & Cloudy will expand their operations to four main revenue streams:
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Search Engine Optimization
- SEO marketing services include SEO strategy development, technical SEO, keyword targeting, content marketing, and link building
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Paid Advertising
- This includes full-service PPC marketing efforts including search engine advertising and paid shopping ads. Display ads, paid Social Media ads, retargeting, social media ads, and more
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Conversion Rate Optimization
- eCommerce CRO services will conduct thousands of AB testing across a variety eCommerce platforms in order to drive sales. 54 & Cloudy, a team consisting of UX analysts and psychological experts, will increase not only the average order and customer lifetime worth for clients through targeted user analysis.
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Copywriting & Design Services
- Designers and content writers who specialize in industry-specific topics and can translate the tone and voice of clients’ businesses into engaging copy or rich design.
Expectations
Finance Required
54 & Cloudy’s success in the industry is a testament to their ability to obtain an SBA loan of $300,000. This will allow 54 & Cloudy to purchase initial startup technology costs and cover initial cash flow requirements as 54 & Cloudy increases customer acquisition. 54 & Cloudy has a loss in Year 1.
Forecast
DMA is expected to grow strongly in the coming five years due to industry growth and the development of 54 & Cloudy’s technology platform. 54 & Cloudy will be able to service new clients as well as existing clients. 54 & Cloudy will gain additional wallet share as it expands its services and becomes a one stop-shop for digital marketing. 54 & Cloudy expects to grow meaningfully in the company after securing their capital and employing several resources. They will achieve $2,535,009 revenue by 2023, which will increase to $12.6million through 2026. EBITDA will grow from $738526 by 2023 to $5.115.174 by 2026.