If you searched business plan adult industry looking for information on how to prepare a fund-raising document for the XXX market space, you'll be pleased to learn that it's not a very different project from any other business venture. Just because there's a stigma attached to most of the adult entertainment business models out there, the process of getting plan together is the same. You need to describe the services you plan to provide, outline the customer base for the business, show the projected revenues of a period of 3-5 years, and prove to your capital partners that this could be a profitable undertaking. While some banks will extend SBA-backed loans for "soft" adult ventures (a book store specializing in erotica, for example), you'll most likely find that private or angel investors are your best bet for the capital raise—and they will want to see a five-year model showing:
• The share of the business you'd relinquish for funding (investor proposition)
• Your planned exit strategy and timeline
• The intended use of funds, by category
• Your projected revenues and expenses year by year
• The ultimate net profit, as compared to known figures for similar ventures
The financial model needs to include underlying assumptions, broken out in a table so they're easy to digest, and it should show a monthly detail for the first year of operations post-funding (this is standard fare, typically included in the appendix). Remember that the body of the plan needs to make clear what service or product suite you envision (will you make films, run a club, sell periodicals, etc.) and the likely market for it. Having handy stats about the growth of the adult industry, the demographic makeup and spending patterns of the most common consumers, and the state of the market in your area is a good idea. Call MasterPlans if you want expert help with this. Our team of trained researchers, modelers, and writers can make your adult industry business plan in as little as 5-7 days. (877) 453-2011.
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