Business Plan for ABC Advertising Consultancy: Entrepreneurial Project

This project outlines a comprehensive business plan for ABC Advertising Consultancy, a new venture in the advertising and media industry. The plan begins with an executive summary and business description, detailing the nature of the business, vision, mission, and objectives. It then explores business opportunities, including market trends, competitor analysis, and growing customer demand. The marketing strategy covers product, price, place, promotion, people, process, and physical evidence, along with segmentation, targeting, and positioning. The business operations section describes a systematic approach to managing the firm, including location, workforce management, and technological advancements. The plan also addresses technology, HR strategy, and financial considerations, including feasibility analysis, projected income statements, and cash flow statements, demonstrating the financial viability of the venture. The consultancy aims to provide audio-visual, animated, and print media advertisements to small and medium-sized organizations, leveraging digital tools and social media for promotion and customer engagement. The financial projections indicate a positive trajectory with increasing revenue and profitability over three years.

Entrepreneurial 2
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Table of Contents
1. Executive summary .........................................................................................................................3
2. business description..........................................................................................................................3
3. Business opportunities......................................................................................................................3
4. Marketing strategy ...........................................................................................................................4
5. Business operations .........................................................................................................................5
6. Technology.......................................................................................................................................6
7. HR strategy ......................................................................................................................................6
8. Financial considerations ..................................................................................................................6
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1. EXECUTIVE SUMMARY
Advertising and media industry is passing through a changing face and various innovations
and modifications have been done in this sector. A new venture naming ABC has been planned by
the entrepreneur. Starting the business requires a systematic approach and a proper action plan
needs to be developed for accomplishing this objective. The entrepreneur will decide about
location, name and budget for the enterprise. In addition to this a proper market research will be
conducted by him for identifying opportunities and threats in the market. Appropriate and effective
strategies will be designed for managing the business operations of the corporation.
2. BUSINESS DESCRIPTION
Nature of business
By assessing the market trend business entity has made decision in relation to opening the
advertisement consultancy firm. Moreover, in the present era, growth and success of the each firm
is highly influenced by the advertisements which are placed by them for developing awareness
among the customers. Hence, entrepreneur will make highly attractive advertisements through the
means of animation. Moreover, animated advertisement are the one which grab the attention level
of target market. Further, custom advertisement services will be offered by the entrepreneur which
includes audio-visual and print media. Further, business entity will follow the seven step process to
frame the winning campaign. It includes initial consultation, analysis, planning, creation, designing,
implementation and follow-up. Hence, entrepreneur will consider all the stages for designing the
effective advertisement.
Vision and mission: The vision of company is to become leading consultancy company of UK.The
mission of company is to maximize the wealth of stakeholders by boosting the profitability of
business.
Objectives: To increase the market share by 10% in 6 months.
To reduce the customer complaints by 5% in 3 months.
3. BUSINESS OPPORTUNITIES
Trend of advertisement consultancy services- There are different trends in the market related to
the advertisement. In market era all the organization focuses on advertising which promotes the
products and services in market. In this way, by using the advance technology and animation,
company will provide the effective advertising which increases the market share in these sector. It
affects performance of the organization because easily attain the goals and objectives.
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Availability of competitors- There are many competitors in the marker which creates the strong
advertising. Company will provide the effective advertising to the other organization under which
will help them to create more and more awareness among customers. Along with this, it will also
support in getting competitive advantages over other market players.
Increasing demand among the customers- The key opportunity which is available in front of the
business is associated with growing demand among people in the market. Now the need among
people is increasing along with the passage of time. However, it can be argued that it will not be
easy for the firm to sustain in long run as need and demand of customers keeps on changing at
regular intervals.
Growing market - Growing market is another key opportunity which is available in front of the
selected business organization. Further, the company will be required to make sure that effective
market research is carried out at regular intervals. This will increase cost of operations in short run
but in long run, it will provide wide range of benefits to the company.
4. MARKETING STRATEGY Product: Audio-visual, animated and print media advertisement will be created by the
entrepreneur according to the demand of client. Price: Competitive pricing strategy will be employed by ABC while offering the
advertisement services to the customers. Moreover, high level of competition takes place in
such sector. Hence, by setting competitive prices for the services entrepreneur can influence
the customers to the large extent. Place: Entrepreneur will offer consultancy services to the customers through the means of
internet. For this purpose, business entity will develop official website and thereby deliver
services from it. Promotion: In order to promote the services ABC will place advertisement on social sites.
Moreover, each individual including both professional and non-professional active on social
sites such as Facebook, Twitter etc. In this regard, by circulating information through social
sites business entity can develop awareness among the potential clients. Further,
entrepreneur will also give information to the clients about the advertising consultancy
services through the means of television and newspaper. People: Entrepreneur will appoint 5 personnel for giving advertisement services to the
client. In this regard, business entity will give priority to the skilled personnel in the job
who have ability to make effectual advertisements.
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 Process: With the aim to offer high quality services to the customers business entity will
employ the latest technologies. This in turn will enable entrepreneur to make effectual and
attractive advertisement that satisfy the need of clients to the significant level.
 Physical evidence: In this, entrepreneur will deliver services by developing website. Hence,
entrepreneur will create the website in a highly attractive manner by including images on it.
Moreover, decision making aspect of the customers are highly influenced from the manner
in which website is designed.
Segmentation: Advertisement consultancy will target the small and medium size organization. As
consultancy is operating at small scale, so it will target to small and medium industry. At the
starting they can advertise the products and services of small scale organization . When
company start advertising medium company products they can easily enter into a market. They
will create a effective advertisement for the small scale and medium scale industry. Then many
other organization who are operating its business on high level will get know about their
advertisement consultancy. Through this manner consultancy can expand its business and can
easily operates on large sector.
Targeting: Consultancy will target small and medium companies by providing them a services
which are different from the other advertisement consultancy. They will deliver unique service
to other organization which eager them to make a contract with them. By providing different
services to their clients consultancy can expand its business. This approach will helps in
grabbing organization who are operating on large scales.
Positioning: Consultancy will provide services at reasonable price so that other company agree to
deal with them. They will provide a high quality services which makes them satisfy. If high
quality services provide to them at reasonable price then they can easily capture market share.
They will use advance technology which helps them in providing a unique service to the
customer. Company can advertise products and service on Facebook and twitter. Through this
many of other company will get know about their unique services. Advance technology will
help them in dealing with other organization and it gives them a opportunity to expand its
business. Consultancy can positioning its price by keeping it different from other firm.
5. BUSINESS OPERATIONS
A systematic approach will be used by entrepreneur for managing and executing operations
of the business in a proper way. Initially it is required that location of the business should be
decided, the company needs to be established at a place where customers can easily access it. The
entrepreneur will design strategies for managing the workforce and appropriate staff structure will
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be formulated. Hierarchy in the firm will be established and top management people will be given
accountability for rendering instructions to the subordinates. Latest technical equipments will be
purchased so that effective advertisements can be designed by media consultancy. It will support in
providing quality services to the consumers and it will aid in gaining competitive advantage.
Transactions in the business will be done by making use of cash and card payment systems and
accounts manager will be directed for keeping record of all the financial transactions. Head
managers will be appointed for managing the work of each department and it will assiost in
completing all the tasks in a organized way.
6. TECHNOLOGY
ABC corporation can gain organizational growth and success by making use of innovative
and advanced technology. Entrepreneur can make use of various digital tools and it includes
TAPAD which can be used for doing cross device advertising. Complex and critical algorithm can
be created by making use of this technique. It will support in taking effective marketing decisions
and target consumer market area will be covered. Video innovations will be used for designing
attractive advertisements and various electronic devices will be purchased by the entrepreneur for
accomplishing this objective. It will aid in designing live streaming video aids and enthralling
advertisements will be made by making use of this technology. ABC company will make strong
presence on social networking sites and Snapchat and messaging apps will be used for achieving
this target.
7. HR STRATEGY
HR manager of ABC will recruit the personnel who have experience in the field of
advertisement consultancy. Moreover, skilled personnel are highly able to perform their job in the
best possible manner. In this way, business entity would become to get the desired level of outcome
or success by delivering the high quality services. Further, HR will not discriminate people on the
basis of race, age, gender, disability etc. By this, entrepreneur would become able to attract the
talented personnel for job. In addition to this, training activity will also be organized by HR
manager to develop the familiarity of the personnel with the latest technological aspects. Hence, by
following all such strategies entrepreneur will manage the human resources. This in turn helps
entrepreneur in achieving the predetermined goals and objectives.
8. FINANCIAL CONSIDERATIONS
Feasibility analysis will be conducted by the entrepreneur on the basis of following
assumptions:
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1. Business entity will start the venture by taking loan of £80000. Along with this, entrepreneur
will also make use of personal saving £50000.2. Further, sales revenue of the firm will increase by 15% in each year.3. Salary of the personnel and utility expense will incline by 10% in each year.4. At initial level on designing of website, registration and market research £12000, £10000
and £18000 will be spent by the business entity.5. Marketing and promotional expense as well as miscellaneous expenditure will increase by
8% in each year.6. R&D expense of the company will also incline by 10% in each year.
Project income statement
Particulars Year 1 (￡) Year 2 (￡) Year 3 (￡)
Revenue 200000 230000 264500
Less: COGS (25%) 50000 57500 66125
Gross Profit 150000 172500 198375
Operating Expenses
Designing of website 12000
Legal and Registration
Charges 10000 0 0
Market Research 18000 0 0
Marketing and
promotional 8000 8640 9331.2
Utilities (Electricity &
Phone) 15000 16500 18150
Insurance 12000 12000 12000
Salary 30000 33000 36300
Miscellaneous
Expenses 12000 12960 13996.8
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Maintenance of
equipments 12000 12000 12000
R&D 8000 8800 9680
Total Operating
Expenses 137000 103900 111458
Operating Profit 13000 68600 86917
Less: Interest 10000 8000 6000
PBT 3000 60600 80917
Less: Tax (20%) 600 12120 16183.4
Net Profit 2400 48480 64733.6
Projected cash flow statement
Cash flow
statement
Pre-Operating
Year Year 1 (￡) Year 2 (￡) Year 3 (￡)
CASH INFLOW
Opening Balance 0 50000 122400 208380
Sales 0 200000 230000 264500
Owner's fund 50000
Bank Loan 80000
Total Cash Inflow 130000 250000 352400 472880
CASH
OUTFLOW
Designing of
website 12000
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Working Capital 40000 0 0 0
Legal and
Registration
Charges 10000 0 0 0
Market Research 18000 0
Marketing and
promotional 8000 8640 9331.2
Utilities
(Electricity &
Phone) 0 15000 16500 18150
R&D 8000 8800 9680
Maintenance of
equipments 0 12000 12000 12000
Interest on loan 10000 8000 6000
Salary 0 30000 33000 36300
Miscellaneous
Expenses 0 12000 12960 13996.8
Insurance 0 12000 12000 12000
Tax 0 600 12120 16183.4
Loan Repayment 0 20000 20000 20000
Total Cash
Outflow 80000 127600 144020 153641.4
Closing Balance 50000 122400 208380 319238.6
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