Bright Blue Advertising Firm: A Business Opportunity for Renting Flats for Advertising Shoots

The business environment is full of dynamic opportunities for the different businesses and the different customers alike and hence, the process of entrepreneurship can be understood to be an opportunity which can be undertaken by the different managers in an organization in order to see to it that, they can convert this into a business opportunity. Bright Blue Advertising Firm aims to rent flats of young professionals and students for advertising shoots. Financial projections, problem and opportunity landscape, customer base, market analysis, competitor analysis, funding, and profit and loss are discussed.

The Blue
Bright
Advertising
firm
Name of the student

Summary
– The business environment is full of dynamic opportunities
for the different businesses and the different customers
alike and hence, the process of entrepreneurship can be
understood to be an opportunity which can be undertaken
by the different managers in an organization in order to
see to it that, they can convert this into a business
opportunity (Evans and Leighton 1989).

Entrepreneurial Project Objectives
– To present a business opportunity which can be utilised by the business
investors and can be made use of.
– To analyse the United Kingdom market and to figure out whether the market
will be appropriate for this or not
– To identify the different strategies, pricing policies, information on the market
and other relevant information with respect to the operations of the Bright blue
firm .
– To predict the future operations of the firm in the long run and to identify the
sales and other recommendations which are required to be undertaken.

Financial projections
– Total liabilities including equity of owners in the first year: $1,860,250
– Total assets of the company in the first year: $20,636,622
– Break even sales: $69,128.60
– Cumulative income for the first year: $13,979,651

Problem and Opportunity Landscape
– Advertising has become one of the most popular promotional acts which are used
in order to ensure that the firm is successfully able to gain awareness amongst
the different customers as present
– However, the expenditures incurred in the medium of Advertising can be
considered to be extremely high for the firm as they are required to set up
various sets, visit studios and other related hotels in order to set up the scene for
the advertisement to be shot (Parker 2018).
– Hence, it is for this reason that the Bright Blue advertisement firm has been
formed as it aims to look out for an opportunity to rent the flats of the young
professionals and the students as present in the local cities and towns.

Cont..
– The young professionals as present in these countries, often find it considerably
difficult to look out for opportunity to meet their ends.
– This makes life very difficult for them and hence, in line of this, it can be
rightfully mentioned that, the Bright Blue Advertising firm aims to bring these
students to them and enlist their flats for advertising shoots.
– Once they are able to do this, the shoots will be completed and in line of this,
the overall objective of the company which can be stated to be completing the
shoots shall also be met with.

Problem that the venture seeks to
solve
– The different advertising firms often find it difficult to find an
adequate location for their different advertisements which are to
be released.
– The different advertising firms often find it difficult to find an adequate
location for their different advertisements which are to be released.
– Therefore, the generation of students and the young professionals will be
targeted which will go a long way in assisting them to ensure that they are
successfully able to attain their overall objectives and be able to provide
them with a place where they will be successfully shoot (Storey 2016).

Cont.…
– The young professionals and students as present in the
foreign countries often find it very difficult to meet their
needs as their education is very expensive and it makes
it difficult for them to meet their needs and to find
adequate mine which will help them to fund their
overall education as well.
– In this manner, they will success fully be able to earn money out
of their houses as well and enjoy the extra money as earned by
them.

Existing solutions
– Renting landscapes and sets
– Renting hotels
– Hence, it is for this purpose, that the particular recommendations
will be made. In a similar manner, the organization will be
successfully able to engage into the purpose of advertising and
find adequate locations.

Idea for technology proposed
– The idea which has been rightfully proposed for the purpose of the
business can be stated to be related to the idea in regard to
renting out of homes and rooms from young professionals and
students (Meyer, Neck and Meeks 2017).
– The terms and conditions of this offering can be stated to be
discussed overtime whereby both the parties will be essentially be
able to ensure that they are being able to earn a considerable
amount.

Cont..
– The Bright Blue advertising firm will undertake the tender
of respective customers who will be required to state
down the different locations which they have to offer .
– In addition to this, they will also be required to state
down the details of the house and the fact that there
would not take place any issues, which will cause and act
as a barrier for the different facets of the firm.

Business model
– The business model can be understood to be a crucial part of any business and goes a long
way in assisting the business to undertake considerable steps in order to ensure that the
business is successfully able to function in the long run.
– The main stance of the company in the given scenario can be stated to be that of a broker
which will connect the different sellers with that of the different individuals who will be
renting their place (Kuratko 2016).
– Moreover, in the form of the income, it has to be understood that, the firm will be keeping a
portion of the payment being made to the student as a commission and will be charging a
nominal fees from the different firms as well.
– The different customers who will be the firms and the individuals who are renting, would be
required to ensure that they register with the firm.

Market Analysis
– In order to ensure that any firm is able to gain long term success, it
becomes considerably crucial for the firm to ensure that they are
able to undertake considerable analysis in the long run, which
would help them to understand and estimate the market size
which they are catering to. There are approximately, 458490
international students as present in the United Kingdom (Studying-
in-uk.org 2019).
– It can be understood that the enrollment in foreign universities
from the perspective of the International students has increased
to a percentage of 3.6%.

Customer base
– One year customer base
It has been planned that in the first year, the firm Bright Blue has aimed to target
all the different customers who are the students and the young professionals. In
this manner, the firm will be able to see to it that the most popular and needful
crowd is being targeted.
– Three year customer base
In the time span of three years, the Bright blue advertising firm has formed an aim
to ensure that it will be able to extend their operations and target the different
restaurants and involve them in a similar scheme to that of the firm.

Cont.…
– Five year customer base
– The time span of five years can be considered to be a
comparatively long time span and in line of this, it can be rightfully
mentioned that, in order to ensure success in the long run, the
firm would be required to ensure that it is targeting the different
shopping malls and other such public areas like gardens and
boutiques for their advertisements

Competitor Analysis
– Any firm if planning to operate in a particular market, will be required to
ensure that, they are successfully able to carry out a competitor analysis.
– In this case, the primary competition as faced by the Bright Blue
Advertising firm can be stated to be the various sets and hotels who are
willing to rent their place to the different customers as present.
– Currently, there are no firms as present in the business market, who offer
a service which is similar to that of Blue Bright advertising company.

IP/ Patent
– It is important for the different businesses to ensure that in order
to ensure long term success of their business, they will be required
to undertake the right kind of technology and Patent which will
ensure that the firm is able to carry out its overall operations
successfully (Shapero and Sokol 1982).
– In the United Kingdom, there are strict code of conducts as well as
laws which require the different companies to undertake various
initiatives which shall then enable them to ensure that they are
able to protect the business.

Funding
Funding for Blue Bright
Advertising company
Venture capitalist Crowd funding

Cont..
– Crowd funding
– The crowd funding can be rightfully defined as a funding practice for a particular
project whereby the funds are raised from various individuals by using the internet as
a medium. This means that, the crowd funding can be understood to be a funding
practice whereby the different individuals contribute towards the different venture
and related initiatives (Schaper 2016).
– Venture capital
– The venture capital can be considered to be another measure which can be adopted
by the firm in order to ensure that it is successfully able to gain a relative amount for
the overall funding of the organization.

Financial analysis
– Summary of start-up expenses
Start-up Expenses
Bldgs / Real Estate $ 8,200
Leasehold Improvements 12,000
Capital Equipment 11,500
Location / Admin Expenses 9,500
Opening Inventory 5,000
Advertising / Promo Expenses 22,500
Other Expenses -
Total Start-up Expenses $ 68,700

– Cash flow Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income $13,979,651 $14,259,244 $14,829,709 $15,719,687 $16,977,560 $75,765,851
Depreciation $6,340 $6,467 $6,594 $6,720 $6,847 $32,968
Accounts receivable ($32,750) ($66,810) ($104,224) ($147,303) $0 ($351,086)
Inventories ($196,500) ($400,860) ($625,342) ($883,816) $0 ($2,106,518)
Accounts payable $12,750 $26,010 $40,576 $57,347 $0 $136,682
Amortization 0 0 $0 $0 $0 $0
Other liabilities 0 0 $0 $0 $0 $0
Other operating cash flow items 0 0 $0 $0 $0 $0
Total operating activities $13,769,491 $13,824,051 $14,147,313 $14,752,635 $16,984,407 $73,477,898
$0
Investing activities $0
Capital expenditures $0 $0 $0 $0 $0 $0
Acquisition of business 0 0 0 0 0 $0
Sale of fixed assets ($5,991,279) ($6,111,105) ($6,355,590) ($6,737,009) ($7,276,097) ($32,471,079)
Other investing cash flow items 0 0 0 0 0 $0
Total investing activities ($5,991,279) ($6,111,105) ($6,355,590) ($6,737,009) ($7,276,097) ($32,471,079)
Financing activities
Long-term debt/financing $0 $0 $0 $0 $0 $0
Preferred stock 0 0 0 0 0 0
Total cash dividends paid 0 0 0 0 0 0
Common stock 0 0 0 0 0 0
Other financing cash flow items 0 0 0 0 0 0
Total financing activities $0 $0 $0 $0 $0 $0
Cumulative cash flow $7,778,212 $7,712,946 $7,791,724 $8,015,627 $9,708,310 $41,006,819
Beginning cash balance $1,141,300 $8,919,512 $16,632,458 $24,424,182 $32,439,809
Ending cash balance $8,919,512 $16,632,458 $24,424,182 $32,439,809 $42,148,119

– Profit and Loss
Year-by-year profit and loss assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Annual cumulative price (revenue) increase - 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation (expense) increase - 2.00% 4.00% 6.00% 8.00%
Interest rate on ending cash balance 0.50% 0.50% 0.50% 0.50% 0.50%
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross revenue $32,750,000 $33,405,000 $34,741,200 $36,825,672 $39,771,726
Cost of goods sold $12,750,000 $13,005,000 $13,525,200 $14,336,712 $15,483,649
Gross margin $20,000,000 $20,400,000 $21,216,000 $22,488,960 $24,288,077
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue $20,000,000 $20,400,000 $21,216,000 $22,488,960 $24,288,077
Operating expenses
Sales and marketing $22,500 $22,950 $23,868 $25,300 $27,324
Payroll and payroll taxes $0 $0 $0 $0 $0
Depreciation $6,340 $6,467 $6,594 $6,720 $6,847
Maintenance, repair, and overhaul $230 $235 $239 $244 $248
Total operating expenses $29,070 $29,651 $30,701 $32,264 $34,420
Operating income $19,970,930 $20,370,349 $21,185,299 $22,456,696 $24,253,657
Interest expense on long-term debt $0 $0 $0 $0 $0
Operating income before other items $19,970,930 $20,370,349 $21,185,299 $22,456,696 $24,253,657
Loss (gain) on sale of assets $0 $0 $0 $0 $0
Other unusual expenses (income) $0 $0 $0 $0 $0
Earnings before taxes $19,970,930 $20,370,349 $21,185,299 $22,456,696 $24,253,657
Taxes on income 30% $5,991,279 $6,111,105 $6,355,590 $6,737,009 $7,276,097
Net income (loss) $13,979,651 $14,259,244 $14,829,709 $15,719,687 $16,977,560
Cumulative income $13,979,651 $28,238,895 $43,068,604 $58,788,291 $75,765,851

year Investments Returns roi%
1
$
$13,179,651 -6.24650282
14057770
2 $13,034,651 9.394904398
$14,259,244
3 $13,555,901 $14,829,709 9.3967048
4 $14,368,976 $15,719,687 9.400189686
5 $15,518,069 $16,977,560 9.40510704
Schedule for Investor returns

Management skills
– The management skills which will be required are as follows:
– Planning
– Communication
– Decision making
– Delegation
– Problem solving
– Motivation

Functional skills
– The functional skills which will be required can be stated
to be as follows:
– Financial management
– Marketing, sales and customer service
– Networking

Conclusion
– Therefore, from the given analysis, it can be rightfully understood that, the
decision to open the Blue Bright firm can be considered to be a good decision
which will go a long way in ensuring that the firm is able to attain considerable
success in the long run (Kirzner 2015).
– The population of the country has witnessed temporary migration whereby the
students as well as the young professionals often tend to flock to the country in
search of good jobs and related opportunities which can be used by them.
– However, very often the tend to face issues with respect to meeting their daily
needs. In addition to this, they also face alternate problems related to the loans
and other expenses which they are required to meet.

Cont..
– Hence, the solution of renting out their apartment for a few
working hours might be considered to be a good opportunity for
them to meet their additional needs and it may also allow them to
earn quick money
– Later on, when the firm will achieve success in the long run, then it
aims to expand its target market whereby the firm aims to target
the new cafes and the restaurants as present along with targeting
the public places and other areas in the long run.

Cont..
– In addition to this, the pricing policy which has been adopted by the
firm can also be stated to be very comprehensive in nature with
respect to the fact that the firm has decided to follow the value
based pricing strategy which will go a long way in ensuring that the
firm is successfully able to attract the clients as they will receive a
value for money and additionally, it will also be able to see to it that
the different companies as present will be successful in seeing to it
that, there needs are fulfilled (King and Levine 1993).

Project Viability
Fixed Expenses
Fixed Expenses
Bldgs / Real Estate $ 8,200
Leasehold Improvements 12,000
Capital Equipment 11,500
Location / Admin Expenses 9,500
Opening Inventory 5,000
Advertising / Promo Expenses 22,500
Other Expenses -
Total Fixed Expenses $ 68,700
Variable Expenses
Inventory or Materials 30%
Direct labor (includes payroll taxes) 2%
Other expenses 20%
Other expenses
Salaries (includes payroll taxes) 10%
Supplies
Total Variable Expenses 62%
Breakeven Sales level = $69,128.60 Year 1 Year 2 Year 3 Year 4 Year 5
Net income (loss) -$69,128.60 $13,979,651.00 $14,259,244.02 $14,829,709.44 $15,719,687.00 $16,977,559.98
Cumulative income $13,910,522.40 $28,169,766.42 $42,999,475.86 $58,719,162.87 $75,696,722.85
Positive Cash Flow? TRUE TRUE TRUE TRUE TRUE
Undiscounted break even year 1 years
Actual break even period 0.00 years

Recommendations
– Future actions for potential investors
– Keeping a watch on the financial statements
– Maintaining due diligence
– Assisting the firm in all times

Cont..
– Future research required
– Countries of expansion: It has to be noted that a further research
would be largely required in the domain of understanding whether
the firm will be able to perform well in the different countries as well.
– Service extension: The firm will also be required to plan accordingly
on the different areas where the business aims to expand its
operations into and it will be in regard of this, that the firm will be
able to extend its operations.

References
– Evans, D.S. and Leighton, L.S., 1989. Some empirical aspects of entrepreneurship. The American Economic Review, 79(3),
pp.519-535.
– King, R.G. and Levine, R., 1993. Finance, entrepreneurship and growth. Journal of Monetary economics, 32(3), pp.513-542.
– Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
– Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
– Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship strategic management interface. ‐ Strategic
entrepreneurship: Creating a new mindset, pp.17-44.
– Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
– Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC Press.
– Shapero, A. and Sokol, L., 1982. The social dimensions of entrepreneurship.
– Storey, D.J., 2016. Entrepreneurship and new firm. Routledge.
– Studying-in-uk.org 2019. International student statistics [online]. Available at:
https://www.studying-in-uk.org/international-student-statistics-in-uk/ [Retrieved on: 05 May. 2019].