Advertising Agency We believe in work that sells Business Plan [ Y E A R ] John Doe 10200 Bolsa Ave, Westminster, CA, 92683 (650) 359-3153 info@upmetrics.co https://upmetrics.co Table of Contents Executive Summary 4 Introduction 5 Mission Statement 5 Vision Statement 6 Financial Highlights 6 3 Year profit forecast 6 Chart 6 Business Summary 7 Company Ownership 8 Startup Summary 8 Startup 9 Chart 9 Products and Services 11 Services 12 Market Analysis 13 Market Segmentation 14 Market Analysis 15 Chart 15 Business Owners 15 Institutions & Organizations 15 Online Companies 16 Business Target 16 Market Trends 16 Strategy 17 Competitive Analysis 18 Sales Strategy 18 Sales Forecast 18 Sales Yearly 19 Chart 19 Detailed Sales Forecast 19 Management Plan 21 Personnel Plan 22 Average Salaries 22 Financial Plan 23 1 / 32 Important Assumptions 24 Brake-even Analysis 24 Projected Profit and Loss 25 Profit Yearly 26 Chart 26 Gross Margin Yearly 26 Chart 26 Projected Cash Flow 27 Projected Balance Sheet 29 Business Ratios 30 2 / 32 Easy to use Business Plan Software Get started using a business plan template is always the fastest way to write your business plan, but as you know, you can't just fill in the blanks along with a template. 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See How It Works [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 3 / 32 1. Executive Summary Introduction Mission Statement Vision Statement Financial Highlights [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 4 / 32 Before you think about how to start an Advertising business, you must create a detailed Advertising Agency business plan. It will not only guide you in the initial phases of your startup but will also help you later on. Introduction Start Writing here... Established in March 2018, Apex Advertising is a U.S based and world-class advertising agency that will be located in Los Angeles – California. We have been able to secure a standard and well – positioned office facility in a central business district in Inglewood. Apex Advertising Agency is a specialist public consultation, PR, political liaison, and creative agency that operates across the Mission Statement Start Writing here... Our mission is to provide professional and highly creative result-oriented advertising services and other related advisory and consulting services that will assist businesses, individuals, and non-profit organizations in promoting their brands and reaching out to a wide range of potential customers all over the globe. We will exceed our customers' expectations for campaign returns. To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 5 / 32 Vision Statement Start Writing here... Our vision is to establish a standard and world-class advertising agency whose services and brand will not only be accepted in the United States of America but also in other parts of the world. Financial Highlights Start Writing here... The company is seeking $2.5 million of financing to fund the acquisition of Vihaan Advertising and its initial operations. This funding will cover the purchase of Vihaan Advertising, marketing, purchase of extra software, and hardware. Projected revenues for 1999 to 2001 are $200,000, $1.5 million, and $2.2 million, respectively. Our target is to be the most popular advertisement 3 Year profit forecast Financial Year Sales Gross Margin Net Profit Year1 10000 500 6000 Year2 12000 800 8000 Year3 14000 1200 10000 Sales Gross Margin Net Profit Year1 Year2 Year3 0 5.00k 10.00k 15.00k To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 6 / 32 2. Business Summary Company Ownership Startup Summary [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 7 / 32 Start Writing here... Apex Advertising is a registered and licensed advertisement company located in Los Angeles – California, owned by Albert Finney. The business will be based on advertising and marketing small and large businesses in Los Angeles by traditional means of making billboards and by using digital and social platforms. Company Ownership Start Writing here... Apex Advertising is founded by Albert Finney and her friend and business partner for many years Lesly Henderson. They both graduated from the University of California, Beckley with BA in Mass Communications and they have a combined experience that revolves around corporate branding and advertising, market researching, sales, web designing, graphic designing, and Startup Summary Start Writing here... Albert Finney and Lesly Henderson will invest equally in the company. They will also secure a long-term business loan. The following table and chart show the projected initial start-up costs of Apex Advertising. To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 8 / 32 Startup Category Amount Expenses 45124 Assets 845411 Investment 124511 Loans 145212 Amount Expenses Assets Investment Loans 0 250.00k 500.00k 750.00k 1.00M Startup Expenses Amount Legal $1,000 Stationery etc. $1,000 Brochures $1,000 Advertising $20,000 Expensed Computer Equipment/Software $10,000 Insurance $0 Rent $1,500 Research and Development $0 Other $0 TOTAL START-UP EXPENSES $34,500 Startup Assets Cash Required $155,500 [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 9 / 32 Other Current Assets $10,000 Long-term Assets $0 TOTAL ASSETS $165,500 Total Requirements $200,000 Startup Expenses Amount [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 10 / 32 3. Products and Services [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 11 / 32 Before starting an Advertising Agency, you must take many things into consideration such as you must consider what types of advertising services will you be providing to your clients. Deciding your services is extremely important since it helps you plan other components of your business so make sure to consider it before you think about how to start an Advertising Agency. Start Writing here... The services offered by Apex Advertising cover an advertising project in its entirety, from the original concept to post-campaign evaluation. To adopt additional paths for advertisement besides traditional means Albert has decided to start a digital marketing agency. The service includes the following: Services Printing innovative flyers and brochures Designing appealing and unique billboards Making related banners and flags Making business cards and invitation cards Advertising through social media sites, websites, and emails Advertising using the technique of search engine optimization To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 12 / 32 4. Market Analysis Market Segmentation Business Target Market Trends [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 13 / 32 The most important component of an effective Advertising Agency business plan is its accurate market analysis. If you are starting on a smaller scale, you can do the market analysis yourself by taking help from this Advertising Agency business plan sample or other Advertising Agency business plans available online. Start Writing here... The next important step you have to take if you are looking for how to start your own marketing agency is to do an accurate market analysis. You need to figure out what others in the same business are doing and what additional services you’ll have to provide to take a lead upon them. Albert has decided to start a marketing agency not just for the sake of opening his own business but Market Segmentation Start Writing here... To know and focus on the demands of its customers, Apex Advertising has divided its customers into the following target groups. The detailed marketing segmentation of our target audience is as follows: To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 14 / 32 Market Analysis Financial Year Units Sold Institutions & Organizations 60 Business Owners 20 Online Companies 20 Institutions & Organizations: 60.0 % Institutions & Organizations: 60.0 % Business Owners: 20.0 % Business Owners: 20.0 % Online Companies: 20.0 % Online Companies: 20.0 % Business Owners Start writing here... The biggest category of our customers will be the owners of small and large businesses based in Austin. They will avail of our services of designing billboards and printing brochures for them as well as the services of our experts to make their website SEO friendly. Institutions & Organizations Start writing here... Our second target group comprises various institutions and organizations located in Austin including public-sector organizations, schools, colleges and universities, political parties, sports organizations, and non-profit organizations. They will need our services to promote their ideas and services. To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 15 / 32 Online Companies Start writing here... Our third target group will be the online companies not just restricted to Austin but to anywhere in the United States. They will avail just our services of social media marketing, developing websites, and SEO their content. Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR Institutions & Organizations 32% 11 433 13 344 16 553 18 745 20 545 13,43% Business Owners 48% 22 334 32 344 43 665 52 544 66 432 10,00% Online Companies 20% 12 867 14 433 15 999 17 565 19 131 15,32% Total 100% 46 634 60 121 76 217 88 854 106 108 9,54% Business Target Start Writing here... We aim at extending our services to several cities through our online servicing. Our financial goals to be achieved over the course of three years are: To balance the initial cost of the startup with earned profits by the end of the first year Market Trends Start Writing here... The entrepreneurs when they are taking a startup, can’t focus on each and everything by themselves and they want the services of some professional and trustee organization to do marketing work for their business. According to a report by IBISWorld, stats have shown a noticeable growth rate of 4.2% of the advertising industry in the United States over the past five years, generating a To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 16 / 32 5. Strategy Competitive Analysis Sales Strategy [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 17 / 32 After identifying the market demand, market trends, and the potential customers of the startup, the next step is to define an effective strategy for attracting those clients. Like marketing analysis, sales strategy is also an important component of an Advertising Agency business startup and must be properly planned before you think about starting your own Advertising Agency Business. Start Writing here... Apex Advertising's strategy is to utilize the extensive network of contacts both Albert and Lesly have with companies already sold on the value of email marketing. In addition, Promerit will use its internal expertise to launch an email marketing campaign directed at a select group of its target customers. Competitive Analysis Start Writing here... Our biggest competitive advantage is that our company will not only be making billboards and banners but in addition to these, we will be hiring IT Experts and Web Developers to advertise through digital media. Our skilled and experienced employees will make your website SEO friendly. Secondly, our staff especially web developers are highly experienced and despite their prior Sales Strategy Start Writing here... We’ll ensure a 25% increase in our website traffic every month and a gradual increase in our means to convert that traffic to our customers. We’ll SEO our website to give our customers an example of how we work. We’ll advertise us by posting appealing billboards and banners in public places Sales Forecast The following is the sales forecast for three years. We have no cost of sales, as all of our deliverables is electronic, and our labor costs are included in the Personnel table. To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 18 / 32 Sales Forecast Start writing here... Sales Yearly Financial Year Institutions & Organizations ... Business Owners Online Companies Year1 45784 784574 32125 Year2 12451 457844 45125 Year3 32541 124515 45125 Institutions & Organizations Business Owners Online Companies Year1 Year2 Year3 0 100.00k 200.00k 300.00k 400.00k 500.00k 600.00k 700.00k 800.00k 900.00k 1.0... Detailed Sales Forecast Detailed sales forecast data is provided in below table: Sales Forecast Year 1 Year 2 Year 3 Unit Sales Flyers & brochures 1 887 030 2 680 320 2 588 240 Billboards, banners & flags 802 370 815 430 823 540 Business & invitation cards 539 320 770230 1 002 310 Digital advertising 265 450 322 390 393 320 TOTAL UNIT SALES 3 494 170 4 588 370 4 807 410 Unit Prices Flyers & brochures $140,00 $150,00 $160,00 Billboards, banners & flags $600,00 $800,00 $1 000,00 [YEAR ] Bus ines s Plan | Adv er tis ing Agenc y 19 / 32