KNH Advertising Agency Business Plan Term Project - Entrepreneurship

This business plan details the establishment of KNH Advertising Agency in Saudi Arabia, focusing on providing marketing solutions to both new start-ups and existing businesses. The plan includes an industry analysis highlighting the growth of entrepreneurial ventures and the limited number of mark...Read More

Running head: BUSINESS PLAN TERM PROJECT
BUSINESS PLAN TERM PROJECT
KNH ADVERTISING AGENCY
Address:
Phone Number:
Name Of The Lead Entrepreneur:
Contact Number Of the Lead Entrepreneur:

1BUSINESS PLAN TERM PROJECT
Table of Contents
1.0 Executive Summary...................................................................................................................3
2.0 Industry Analysis.......................................................................................................................3
2.1 Industry Size, Growth Rate and Sales Projections................................................................3
2.2 Industry Structure..................................................................................................................4
2.3 Nature of Participants............................................................................................................5
2.4 Key Success Factors..............................................................................................................5
2.4.1 Novelty of the Business Idea..........................................................................................5
2.4.2 Timing.............................................................................................................................6
2.4.3 Entrepreneurs..................................................................................................................6
2.5 Industry Trends......................................................................................................................6
2.6 Long-term Prospects..............................................................................................................7
3.0 Company Description................................................................................................................7
3.1 Company History...................................................................................................................7
3.2 Mission Statement.................................................................................................................9
3.3 Services..................................................................................................................................9
3.4 Current Status........................................................................................................................9
3.5 Legal Status and Ownership..................................................................................................9
3.6 Key Partnership...................................................................................................................10
4.0 Market Analysis.......................................................................................................................10
4.1 Marketing Segmentation and Target Market Selection.......................................................10
4.2 Buyer Behavior....................................................................................................................10
4.3 Competition Analysis..........................................................................................................11
4.4 Estimates of Annual Sales and Market Share......................................................................13
5.0 Economics of the Business......................................................................................................14
5.1 Revenue Drivers and Profit Margin.....................................................................................14
5.2 Fixed and Variable Costs.....................................................................................................14
5.3 Operating Leverage and its Implications.............................................................................14
5.4 Start-up Costs.......................................................................................................................14
6.0 Marketing Plan.........................................................................................................................15
6.1 Overall Marketing Strategy.................................................................................................15
6.2 Marketing Mix.....................................................................................................................17
6.3 Sales Process........................................................................................................................18

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6.4 Sales Tactics........................................................................................................................19
7.0 Design and Development Plan.................................................................................................20
7.1 Development Status and Tasks............................................................................................20
7.2 Challenges and Risks...........................................................................................................20
7.3 Projected Development Costs..............................................................................................21
7.4 Proprietary Issues.................................................................................................................21
8.0 Operations Plan........................................................................................................................21
8.1 General Approach to Operations.........................................................................................21
8.2 Service Production...............................................................................................................22
8.3 Business Location................................................................................................................22
8.4 Facilities and Equipment.....................................................................................................23
9.0 Management Team and Company...........................................................................................23
9.1 Management Team..............................................................................................................23
9.2 Board of Directors...............................................................................................................24
9.3 Board of Advisers................................................................................................................24
9.4 Company Structure..............................................................................................................25
10.0 Overall Schedule....................................................................................................................27
11.0 Growth Plan...........................................................................................................................29
11.1 Internal Growth Strategies.................................................................................................29
11.2 External Growth Strategies................................................................................................29
11.3 Projected Exit Strategies....................................................................................................29
12.0 Financial Projections.............................................................................................................29
12.1 Sources and uses of fund statement..................................................................................29
12.2 Pro Forma Income Statement............................................................................................30
12.3 Pro Forma Balance Sheet...................................................................................................30
12.4 Pro Forma Cash Flows.......................................................................................................31
12.5 Ratio Analysis....................................................................................................................32

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1.0 Executive Summary
The purpose of this paper is to create a business plan for the venture KNH Advertising
Agency which would be established in Eastern Province, Khobar, Alolyaa District, Saudi Arabia
and offer marketing solutions or advertisement services to the different new start-ups and also
the existing business corporations of the concerned nation. The paper firstly undertakes an
industry analysis and this reveals the fact there are only a handful of advertisement agencies
which offer marketing solutions or advertisement services to the corporations or to the new start-
ups within Saudi Arabia. Furthermore, the entrepreneurs, Khalid Alameer, Namad Alshetawi and
Naif Alsfayan, consider the novelty of the business idea, its timing and also their skill sets as the
three most important critical success factors which are likely to affect the success of the venture.
Along with these aspects, the paper also highlights the services which would be offered by the
venture, its structure (functional structure), the Board of Directors (Khalid Alameer, Namad
Alshetawi and Naif Alsfayan) and other important details regarding the venture. In addition to
these, the paper also sheds light on the marketing strategy that the venture will use (digital
marketing strategies), its target market (new start-up business ventures and also the existing
business ventures of Saudi Arabia), the product, price, promotion and the place strategies that the
ventures needs to use and the important details related to marketing.
The paper also undertakes a discussion of the sales process and the sales tactics that
needs to be used by the venture for the purpose of enhancing its sales. More importantly, the
results of the competition analysis reveals the fact that because of the novelty of the business
idea used by the venture it is not likely to face any significant amount of business competition
with Saudi Arabia. Along with these, the paper also outlines the revenue drivers, profit share,
fixed and variable cost and the other important details of the break even calculation.
Furthermore, the paper also provides a brief overview of the management and the operations
plan that would be followed by the venture for achievement of its business goal, that is, to
become the largest and the most profitable marketing solution provider within the nation of
Saudi Arabia. Lastly, the paper also undertakes financial analysis and concludes by
recommending the growth strategies like product diversification, franchising and others that the
concerned venture needs to follow in future to accelerate the pace of its growth or development.
2.0 Industry Analysis
2.1 Industry Size, Growth Rate and Sales Projections
The number of entrepreneurial start-up business ventures established in the year 2018 in
the nation of Saudi Arabia showed an increase of 31% in comparison to the year 2017. This is
likely to boost the national economy of Saudi Arabia by more than $67 million and this account
for around 9% of the entire revenue generated by the business sector of the concerned nation.
More importantly, unlike the other nations of the world wherein it is seen that the different
entrepreneurial business ventures are the resultant effect of the investments made by the foreign
sponsors or the business corporations within the nation of Saudi Arabia it is seen that these
ventures are established through the initiatives of the local entrepreneurs of the concerned nation.
As a matter of fact, it is seen that Saudi Arabia had emerged as one of the most important
hotspots of entrepreneurial business venture establishment on the score of the thriving nature of
the national economy of the concerned nation.

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The national economy of Saudi Arabia in the year 2019 showed a growth rate of 2.4%
while generating revenue of more than $ 78,652.18 crores. This high growth rate of the national
economy of Saudi Arabia is an important factor which had substantially influenced the different
entrepreneurs of the concerned nation to establish their entrepreneurial business ventures in the
concerned nation. However, the important issue arises since it is seen that there are not many
business corporations within the spectrum of the nation under discussion here which offer
marketing services to these entrepreneurial business ventures. Marketing is one of the core
business processes of the business ventures and the success attained by the entrepreneurial
business ventures is substantially reliant on the effectiveness or for that matter the efficiency of
the marketing strategies which are being used by them. The usage of effective marketing or for
that matter promotional strategies helps the entrepreneurial business ventures to adequately
promote or advertise the services or the products offered by them and also cascade the required
information regarding their venture to the target market on which they focus upon.
However, in the absence of any corporation within the nation of Saudi Arabia offering
marketing services to the different entrepreneurial business ventures it is seen that these ventures
have failed to attain the desired growth level. Thus, it is likely that the entrepreneurial business
venture KNH Advertising Agency on the score of the advertising and marketing services that it
intends to offer to the new entrepreneurial business ventures have the entire market to itself
because of the absence of other corporations which offer similar services. More importantly,
apart from the new entrepreneurial business ventures KNH Advertising Agency would also focus
on the existing business corporations of Saudi Arabia and offer them the required advertising and
marketing services to accelerate the pace of their growth. In the light of these aspects, it can be
said that KNH Advertising Agency is likely to have a high growth rate in business sector of
Saudi Arabia in the absence of any strong competitors and also on the basis of the novelty of the
business services that it intends to offer provided it is being able to maintain high standards of
quality. Furthermore, it is seen that the venture under discussion here would be able to capitalize
on atleast 10% of these start-ups and the existing corporations of Saudi Arabia within the very
first year of its business.
2.2 Industry Structure
Industry structure refers to the size or for that matter the number of competitors which are
there within a particular industry. The size of the competitors rather than the number of
competitors is a better way of analyzing industry structure since it might happen that despite the
presence of a large number of competitors the actual competition within a particular industry
might be less because of the small size or the nature of the business operations of these
competitors and vice versa. More importantly, in the present times it is seen that the industry
structure is being primarily defined in terms of perfect competition and imperfect competition.
Furthermore, the imperfect industry structure is further subdivided into three distinctive
categories, namely, monopoly, oligopoly and monopolistic competition. In the particular context
of the entrepreneurial business venture KNH Advertising Agency it can be said that the industry
in which the concerned venture intends to operate has very few corporations which offer the kind
or for that matter the nature of services that the venture intends to offer to its clients. Thus, it can
be said that the entrepreneurial business venture would be able to enjoy monopoly within the
industry of its operation provided it focusing effectively on the quality of services which are
being offered and also take the help of adequate business strategy for facilitating its growth.

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2.3 Nature of Participants
As mentioned there are very few corporations within the nation of Saudi Arabia which
offer marketing or advertising services to the new start-up business ventures or the existing ones
within the concerned nation. Some of the most important ones in this relation are New Step
Media, sendian creations, 6W Agency, Maze, Blue Brand and others. However, at the same time
it is seen that these corporations primarily focus on the different existing business corporations of
the nation under discussion here and the marketing or the advertisement services offered by them
do not extent to the entrepreneurial business ventures of the concerned nation. Furthermore, the
marketing as well as the advertisement services offered by these corporations of the nation of
Saudi Arabia are very conservation in nature and the majority of these corporations recommend
the usage of the traditional marketing strategies to their clients. As a matter of fact, it is seen that
even when these corporations formulate or for that matter design digital marketing campaigns to
their business clients they lack of effective usage of the concepts of innovation, creativity and
other important attributes which makes a marketing or advertisement grab the attention of the
customers. Thus, in order to overcome the competition that KNH Advertising Agency is likely to
face from these corporations, it would take the help of the concepts of innovation and design
thinking for creating different kinds of digital marketing campaigns or more precisely social
media marketing campaigns for its clients which will enable them to influence the buying
behavior of their consumers. In addition to this, the venture rather than merely focusing on the
existing business corporations of Saudi Arabia would also focus on the new start-up ventures of
the concerned nation as well.
2.4 Key Success Factors
Key success factors are those factors which the corporations are required to have so as to
achieve the goals or for that matter the objectives of their business and thus it becomes important
for the corporations to devote the required amount of attention to them for the achievement of
their business goals or objectives. Key success factors becomes even more important from the
perspective of the different entrepreneurial business ventures since they have the opportunity to
attain the required amount of success despite the competition within the industry in which they
operate by focusing effectively on the success factors. In the particular context of the start-up
venture KNH Advertising Agency the three most important success factors which are likely to
influence the success of the concerned venture are listed below-
2.4.1 Novelty of the Business Idea
The success or the failure of the different entrepreneurial business ventures substantially
depends on the nature or for that matter the kind of business idea on the basis of which the
concerned venture had been established. The entrepreneurs are required to select the kind of
business ideas which are not only innovative or novel in nature but also formulated by taking
into consideration the demand for the same in the business market. In the particular context of
KNH Advertising Agency, it can be said that it is true that the business idea selected by the
entrepreneurs is not a completely innovative or for that matter a novel one however the business
idea when analyzed from the perspective of the nation of Saudi Arabia becomes a completely
innovative or a novel one. This can be explained on the basis of the fact that there are very
business corporations in the nation of Saudi Arabia which are presently offering marketing or
advertisement services to the existing corporations of the concerned nation and even lesser
number of corporations that offer these services to the start-up business ventures of the nation. In
the light of these aspects it can be said that the novelty of the business idea on the basis of which

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KNH Advertising Agency would be established is an important critical success factor which is
likely to influence the success of the concerned venture in the nation of Saudi Arabia.
2.4.2 Timing
The timing of the establishment of a business venture is an important factor which
substantially influences the success or the failure of the same. This enables the entrepreneurs to
effectively capitalize on the different emerging trends on the basis of which they have
established their venture when they are in demand. For instance, within the nation of Saudi
Arabia it is seen that the number of entrepreneurial business ventures which are being established
had increased exponentially and also the different existing corporations of the concerned nation
are also trying to expand their business operations globally. This in turn had made the marketing
or the advertisement services offered by KNH Advertising Agency an imperative one from the
perspective of these corporations and thus it can be said that the present time is the most suitable
one for the establishment of the venture under discussion here. This is likely to help the
corporation to effectively capitalize on the high demand for marketing and advertisement
services within the business sector of Saudi Arabia and thereby would enable KNH Advertising
Agency to attain the desired success within the concerned nation.
2.4.3 Entrepreneurs
The effectiveness or for that matter the efficiency of the entrepreneurs is an important
factor which directly contributes towards the success or the failure of the entrepreneurial
business ventures. The different entrepreneurial trails, their knowledge and skill sets are
important since they help in the identification of the most profitable business ideas, the
formulation of the management plan, operations plan, the marketing plan and other important
attributes of the venture. These aspects are important since they substantially influence the
success attained by the venture. In the particular context of the venture KNH Advertising
Agency, it is seen that three entrepreneurs who have decided to come establish the concerned
venture had the required skill set as well as knowledge or qualification which in turn had not
only helped them to identify the novel business idea on the basis of which the concerned venture
had been established but also effectively design the different business processes of the venture as
well. As a matter of fact, all the three entrepreneurs, Khalid Alameer, Namad Alshetawi and Naif
Alsfayan, hold degrees in human resource management and the knowledge that they acquired
during the degree courses are likely to help them to adequately manage the new venture. These
are likely to enhance the efficiency of the concerned venture and also help it to attain the
required success as well.
2.5 Industry Trends
It is seen that only 3% of the entrepreneurial business ventures which are being
established within the nation of Saudi Arabia every year are being able to sustain themselves and
the rest of the 97% of the start-ups fail to attain the required success or for that matter to sustain
themselves. One of the most important factors which directly contribute towards the failure of
the different entrepreneurial business ventures can be attributed to the ineffectiveness of the
marketing strategies used by them for the promotion of the services or the products offered by
them. As a matter of fact, within the business sector of Saudi Arabia it is seen that there are very
few corporations which offer digital marketing or social media marketing services to the existing
corporations or the new start-up ventures and even the corporations themselves do not ardently
focus on the aspect of marketing or advertisement. This in turn had resulted in the failure of the

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different corporations within the concerned nation. However, presently an interesting trend seen
within the business sector of Saudi Arabia can be attributed to the fact that the different
corporations in the face of the large number of corporations that had failed are increasing
focusing on the aspect of marketing or promoting the services or the products offered by them.
This in turn had substantially enhanced the demand for these services within the Saudi Arabia
and it is precisely this particular trend that the start-up venture under discussion here intends to
capitalize upon.
2.6 Long-term Prospects
The entrepreneurs are required to select the kind of business ideas which rather than
being profitable at the present moment would also be profitable in the future as well. This aspect
of the business idea identification is important since it helps the entrepreneurs to ensure the long-
term growth or for that matter the development of their business venture. The entrepreneurs for
the selection of the business idea on the basis of which KNH Advertising Agency would be
established had taken this particular aspect of business idea selection into consideration. For
instance, marketing is one of the most important business functions that almost all the business
corporations had to use for the adequate promotion or for that matter the advertisement of the
products or the services offered by them.
More importantly, the business sector of the nation of Saudi Arabia had shown signs of
extensive growth which is likely to continue in the future as well and also the number of
entrepreneurial business ventures that are being established within the concerned nation had
increased exponentially. It is very obviously that these corporations would have to take the help
of marketing or advertisement agencies which would help them with the marketing or the
advertisement of the products or the services and in the absence of any effective corporations
within the concerned nation offering the same they would have to use the services offered by
KNH Advertising Agency. This in turn ensures the future growth or the long-term growth of the
entrepreneurial business venture under discussion here.
3.0 Company Description
3.1 Company History
The name of the entrepreneurial business venture which the entrepreneurs, Khalid
Alameer, Namad Alshetawi and Naif Alsfayan, intend to establish is “KNH Advertising
Agency” and the logo of the venture is highlighted by the below given figure-

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Figure 1: Logo and Tagline of KNH Advertising Agency
Source: (Created by the Author)
KNH Advertising Agency intends to capitalize on the increasing demand for marketing
as well as advertisements within the business sector of the nation of Saudi Arabia. For instance,
in the recent years it had been seen a substantial number of start-up corporations and also the
existing ones have failed to attain the required amount of success on the score of the ineffective
marketing strategies used by them. Thus, the entrepreneurial business venture intends to provide
marketing solution for the new entrepreneurs and also the existing business corporations of Saudi
Arabia by suggesting them effective marketing strategies as well as plans. The primary focus of
the venture would on offering the kind of marketing recommendations to the start-up ventures or
the existing corporations of Saudi Arabia which will enable them to adequately influence the
attitude or for that matter the buying behavior of their customers and thereby influence their
profitability.
The core services which will be offered by the entrepreneurial business venture under
discussion here are social media account management, digital content development, influencers
and brand ambassador program. In addition to these, the corporation also intends to help the new
entrepreneurial business ventures to select the most suitable target markets or the customers base
on which they can focus upon for the purpose of earning the maximum amount of profitability.
The venture also intends to take the help of the different social media influencers for helping its
clients to attain the required amount of success by helping them to influence the buying behavior
of their customers. More importantly, the entrepreneurs also found out the majority of the
marketing solutions which are being offered by the marketing or the advertising agencies within
the nation of Saudi Arabia are highly expensive in nature and thus the start-up ventures or the
well-established business corporations do not like to take the help of the same. Thus, the
entrepreneurial business venture under discussion here intends to overcome this particular
shortcoming of the marketing or the advertisement services offered by the corporations of Saudi
Arabia by offering high quality affordable services to the new start-up ventures and the other
corporations within the concerned nation.

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3.2 Mission Statement
The mission of KNH Advertising Agency is to offer the best quality marketing solutions
to its clients so as to help them to effectively influence the attitude or the buying behavior of its
customers and thereby help them to attain the desired level of success.
3.3 Services
As mentioned, the services which the entrepreneurial business venture KNH Advertising
Agency intends to offer to the different start-up business ventures and also the existing business
corporations of the nation of Saudi Arabia are related to the aspect of marketing or
advertisement. More importantly, the services offered by the entrepreneurial business venture
under discussion here would be directed to resolve the marketing or for that matter the
advertisement issues that the different start-up business ventures and also the existing business
corporations of the nation of Saudi Arabia are presently facing. As a matter of fact, it is seen that
the usage of ineffective marketing or advertising had substantially narrowed down the sales
volume and thereby the profitability of the corporations within Saudi Arabia while contributing
to the failure of a substantial number of entrepreneurial business ventures. Thus, the venture will
offer the kind of marketing or advertisement solutions to the entrepreneurial business ventures
and the business corporations of Saudi Arabia which will enable them to overcome the marketing
issues that they are presently facing. Furthermore, the primary focus of the venture would be on
recommending the kind of marketing or advertisement strategies to the entrepreneurial business
ventures or the corporations under discussion here which will enable them to effectively
influence the attitude or the buying behavior of their customers and thereby attain the desired
level of growth. Along with the digital marketing services or the social media marketing services
which the venture would offer it would also take the help of different social media influencers
for accelerating the growth or for that matter the development of its clients within the business
sector of Saudi Arabia.
3.4 Current Status
The entire planning stage of the venture had been completed by the entrepreneurs and
they have already formulated the operations plan, the management plan, the marketing plan and
others that would be followed by the concerned venture. Furthermore, the entrepreneurs have
also designed the sales strategies, marketing strategies and others for the venture along with the
financial projections for the same. In addition to these, the entrepreneurs have also procured the
capital which is needed for the establishment of the entrepreneurial business venture under
discussion here. Thus, it can be said that the only thing which is still is the actual establishment
of the entrepreneurial venture in the nation of Saudi Arabia.
3.5 Legal Status and Ownership
The entrepreneurs have filed for a business license and also the different permits which
are required for the establishment of a new entrepreneurial business venture within the nation of
Saudi Arabia. The venture would be established once all the paperwork is being completed and
also the permits as well as the license are being obtained by the entrepreneurs. More importantly,
all the three individuals or entrepreneurs involved in the formulation of this business plan would
be the joint owners or the co-owners of the venture and thereby would have equal rights as well
as obligations towards the venture. As a matter of fact, the licenses and the permits of the venture
would be procured on the name of the three entrepreneurs, Khalid Alameer, Namad Alshetawi
and Naif Alsfayan.

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3.6 Key Partnership
The venture would be established through a partnership between the three entrepreneurs,
namely, Khalid Alameer, Namad Alshetawi and Naif Alsfayan, who had worked collectively for
the formulation of this business plan. Furthermore, each of these three entrepreneurs would be
making an initial investment of 100,000 SR for the establishment of the venture and thus each of
them would be holding equal interests or shares within the venture.
4.0 Market Analysis
4.1 Marketing Segmentation and Target Market Selection
Market segmentation and targeting are two of the most important processes related to
marketing that the different corporations are required to follow for the purpose of creating
effective marketing strategies which in turn would enable them to influence the behavior of their
customers. Market segmentation is the process through which the corporations are being able to
divide the entire market into smaller sections and thereby select the segment of potential
customers with similar characteristics on which they would focus upon. The selection of a
suitable customer segment or target market is important since it helps the corporations to not
only modify the products or the services which are being offered by them as per the demands,
needs or the requirements of the concerned group but also enables the corporations to formulate
adequate marketing campaigns by taking into account the characteristics features of this group so
as to influence its buying behavior. More importantly, the corporations are also required to take
the help of adequate targeting strategies for influencing the attitude or for that matter the buying
behavior of the target market or the customer segment that had been selected by it.
In the particular context of the entrepreneurial business venture KNH Advertising
Agency, the target market or for that matter the customer segment on which the concerned
venture would focus upon are the new start-ups or the entrepreneurial business ventures within
the nation of Saudi Arabia. In addition to this, the concerned venture would also focus on the
existing business corporations of Saudi Arabia as their customer segment or target market. The
entrepreneurs have selected these two customer segments since these are the ones which have to
face the adverse effects of not using adequate or effective marketing strategies for promoting the
services or the products offered by them and also for the purpose of influencing the buying
behavior or the attitude of their customers. Thus, it is likely that these groups would be willing to
use the different marketing services which the entrepreneurial venture KNH Advertising Agency
intends to offer within the nation of Saudi Arabia. Furthermore, the entrepreneurial business
venture under discussion here also intends to take the help of different digital marketing
strategies like social media marketing, e-newsletters, promotional emails, content marketing,
search engine optimization and others for the purpose of targeting the customer segments or the
target market that had been selected by it.
4.2 Buyer Behavior
Buyer behavior refers to the activities or for that matter the actions which are being
undertaken by the customers or the clients before undertaking the actual process of purchasing
the products or the services offered by the corporations. Buyer behavior also refers to the study
of the individuals or the groups and also the factors which influence or motivates them to
purchase one particular product or service in comparison to the others which are available to
them. More importantly, it had been seen that the buying behavior of the individuals

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substantially depends on the effectiveness of the marketing campaigns which are being used by
the corporations and also the extent to which they appeal to the rationale or the thought process
of the individuals. In this relation, the precepts of the rationale choice theory are important to
note since it clearly indicates the fact that the customers are more likely to purchase the products
or the services the marketing or the advertisement products of which appeal to their rationale or
their thought process. Thus, it becomes all the more important for the corporations to take the
help of effective marketing or advertisement campaigns so as to effectively influence the attitude
or the buying behavior of their customers.
In the particular context of the entrepreneurial business venture KNH Advertising
Agency, it is seen that because of the novelty of the business idea on the basis of which the
concerned venture had been established there are no significant competitors of the venture within
the nation of Saudi Arabia. Thus, on the score of lack of effective options the customers do not
have the privilege to switch brands and thereby have no other option but to use the services
which are being offered by the entrepreneurial business venture under discussion here. However,
at the same time it needs to be said that the different entrepreneurial business ventures of Saudi
Arabia or for that matter even its existing well-established business corporations over the years
had not taken the help of the services which are being offered by the marketing or the advertising
agencies. This behavior displayed by the different start-up ventures within the nation of Saudi
Arabia and also by its well-established business corporations is likely to pose various problems
for the business services which the venture KNH Advertising Agency intends to offer in the
nation under discussion here. Thus, it becomes all the more important for KNH Advertising
Agency to take the help of adequate marketing or advertisement campaigns and strategies so as
to effectively influence the buying behavior or the attitude of the customer base or the target
market that had been selected by it.
4.3 Competition Analysis
The framework of competitor analysis becomes especially important from the perspective
of the different corporations since it not only helps them to identify their business competitors
but also the nature or the kind of threats posed by them as well. This is important since it enables
the corporations to formulate effective strategies, tactics, measures and others for overcoming the
threats posed by their competitors. More importantly, it is seen that the framework of competitor
analysis also helps the corporations to find out the relative strengths and the weaknesses of their
rivals or competitors which in turn can be used by the corporations for guiding their strategy
formulation process. These in short are some of the most important reasons or the factors which
had propelled the contemporary business corporations to take the help of the framework of
competitor analysis. The most important competitors of KNH Advertising Agency within the
nation of Saudi Arabia are New Step Media, sendian creations, 6W Agency and others. In
addition to these, the venture is also likely to face indirect competition from the different
corporations of the concerned nation like Maze, Blue Brand and others which along with
marketing solutions also offer other kinds of business services to the corporations of Saudi
Arabia. The venture is also likely to face a significant amount of business competition in future
from the different entrepreneurial business ventures which are presently being established within
the concerned nation and intend to offer marketing services to the existing business ventures of
Saudi Arabia. A comparison of the venture under discussion here with its competitors
operational in the nation of Saudi Arabia would reveal the below given information-

12BUSINESS PLAN TERM PROJECT
Attributes KNH
Advertising
Agency
New Step Media 6W Agency Blue Brand
Size Would be
established with
three
entrepreneurs
and would
operate in
Eastern Province,
Khobar, Alolyaa
District
The corporation
presently has
more than 50
workers and is
operational in the
entire Saudi
Arabia
Presently has
more than 100
employees and
operations all
over Saudi
Arabia
Present has more
than 60
employees and
operational all
over Saudi
Arabia
Services Marketing and
advertisement
services
Marketing
services,
business
solutions and
others
Advertisement
services,
business services
and others
Business
solutions and
marketing
services
Value
Proposition
Offers creative or
innovative
marketing and
advertising
solutions which
will help the
entrepreneurial
business ventures
and also the
existing business
corporations to
overcome the
marketing issues
that they face
Offers marketing
services which
will help the
corporations to
influence the
buying behavior
of their
customers
Offers marketing
services which
would help the
corporations to
effectively
promote the
products or the
services offered
by them
Offers business
and marketing
solutions which
help the
corporations to
overcome the
issues that they
face
Price Strategy Cost leadership Premium pricing
policy
Mid-premium
pricing policy
Premium pricing
policy
Target Market Existing business
corporations of
Saudi Arabia and
also the new
start-ups or the
entrepreneurial
business ventures
which are being
established in the
concerned nation
Existing business
corporations of
Saudi Arabia
Existing business
corporations of
Saudi Arabia
Existing business
corporations of
Saudi Arabia
Marketing
Strategy
Digital
marketing
strategies like
Digital
marketing
strategies and
Digital
marketing
strategies
Digital marketing
strategies

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social media
marketing, e-
newsletters,
promotional
emails, usage of
digital media
influencers and
also seminars
also traditional
marketing
strategies
The most important strength points of these corporations can be attributed to their
positive brand image within the business sector of Saudi Arabia, their long history within the
concerned nation, the wide range of traditional and digital marketing services that are being
offered by them and others. However, at the same time it needs to be said that there are various
weaknesses of these corporations as well because of which the majority of the new
entrepreneurial business ventures and also the well-established business ventures of Saudi Arabia
do not like to take the help of the services offered by them. For instance, the marketing solutions
or the services offered by them are highly expensive in nature, the marketing solutions offered by
them more often than not have failed to yield the desired results, majority of these corporations
merely recommend the usage of traditional marketing strategies and even when they recommend
the usage of digital marketing strategies these lack the usage of innovation and creativity and
others. Furthermore, these corporations merely focus on the existing well-established business
corporations of Saudi Arabia while completely disregarding the new entrepreneurial business
ventures which are being established almost on a regular basis within the concerned nation.
These weaknesses of the marketing or the advertising agencies of Saudi Arabia have been used
by the venture KNH Advertising Agency for improving the quality or for that matter the nature
of the services that it would offer to its clients. For instance, the entrepreneurial business venture
intends to offer high quality affordable marketing solutions which will take the help of the
concepts of innovation and creativity for recommending the usage of the kind of social media
marketing strategies to the new start-up corporations or the well-established corporations of
Saudi Arabia which will enable them to effectively influence the attitude or the buying behavior
of their customers. In the light of these aspects, it can be said that the effective usage of the
framework of competitor analysis had helped the venture KNH Advertising Agency to
substantially improve the nature or the quality of services that it intends to offer.
4.4 Estimates of Annual Sales and Market Share
As per the estimate of the entrepreneurs it is likely that every month the venture would
get atleast 17 clients which comes down to roughly around 204 clients in the first year of
business itself. Furthermore, the venture would try to enhance the number of its clients by
focusing effectively on the aspect of quality and also by introducing more services for the start-
up business ventures and also the other business corporations of the nation of Saudi Arabia.
These measures are likely to help the venture to monopolize the business sector of the nation and
thereby hold the maximum amount of market share as well.

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5.0 Economics of the Business
5.1 Revenue Drivers and Profit Margin
The most important revenue drivers of the entrepreneurial business venture KNH
Advertising Agency would be the number of clients the venture gets, the satisfaction level of
these clients, their loyalty towards the venture, the number of clients that they refer to the venture
and others. These aspects would substantially determine the revenue earned by the venture along
with some other factors like the operations cost of the venture, the extent to which it is being to
penetrate into the market of the nation under discussion here and others. It is expected that the
venture would be able to have a net profit of 122,200 SR.
5.2 Fixed and Variable Costs
Particulars Amount
Nos. of Clients 17
Avg. Revenue per client p.m. 2,000
Revenue per month 34,000
Less: Variable Cost p.m. 5,100
Contribution Margin p.m. 28,900
Fixed Costs:
Marketing Cost 100,000
Employee Cost 250,000
Depreciation of Office Floor 16,000
Depreciation of Equipment 10,000
General & Administrative Costs 28,600
Total Fixed Costs 404,600
Break-Even Point in Months 14
Break-Even Point in Years 1.2
The above given table clearly indicates the fact the variable costs which would be
incurred by the venture would be around 5,100 SR. On the other hand, the fixed costs which
would be incurred by the venture would be around 404,600 SR.
5.3 Operating Leverage and its Implications
The variable costs that the venture would incur is only 5,100 SR which means that the
venture will have a high operating leverage. This is an indication of the fact that the venture has
more fixed costs in its cost structure and does it would not have to worry about unexpected
increases in its operations costs which can adversely affect the profitability of the corporations.
5.4 Start-up Costs
Start-Up Costs:
Particulars Amount

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Office Space & Collaborative Room 80,000
Equipment 50,000
Marketing Cost 100,000
Employee Cost 250,000
Total Start-Up Cost 480,000
Contribution from Partner 1 100,000
Contribution from Partner 2 100,000
Contribution from Partner 3 100,000
Fund from Sponsorship 180,000
Total Initial Investment 480,000
The total start-up cost incurred by the entrepreneurs for the establishment of the venture
would be around 480,000 SR. Furthermore, each of three entrepreneurs would make an initial
investment of 100,000 SR and the remaining 180,000 SR would be obtained through
sponsorship.
6.0 Marketing Plan
6.1 Overall Marketing Strategy
The primary objective of the marketing strategy which is being used by the corporations
is to adequately promote the products or the services offered by them and also to cascade the
required information regarding them corporation to their target audience or the customer
segments on which they focus upon. This is important since it helps the corporations to appeal to
the rationale or the thought process of their customers which in turn helps them to effectively
influence the attitude or for that matter the buying behavior displayed by their customers. This in
turn helps the corporations to enhance their sales volume and thereby the profitability earned by
them as well. More importantly, the prominence that the marketing strategy holds for a particular
corporation also becomes apparent from the fact that the customers are more like to purchase the
kind of products or services about which they already know rather than the ones they have no
idea about. The resultant effect of this is that the marketing strategies which are being used by
the different corporations try to familiarize the customers with the different attributes, value
proposition and the other important aspects of the products or the services that are being offered
by them.
It had been seen that the corporations have relied on the usage of the traditional
marketing strategies and thereby have taken the help of the traditional media platforms like
television, radio, newspaper, magazines and others for promoting the services or the products
offered by them. In addition to these, the strategy of ‘word of mouth’ promotion had also been
extensively used by the different corporations for adequately promoting the products or the
services offered by them. However, at the same time it needs to be said that the usage of this

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marketing strategy is very expensive, is not timely in nature and also the audience base is very
narrow for this strategy. On the other hand, presently it had been seen that the usage of the
different digital marketing strategies like social media marketing, e-newsletters, promotional
emails, search engine optimization, content marketing and others have gained prominence and
they are trying to overcome the limitations of the traditional marketing strategies. As a matter of
fact, it is seen that the digital marketing strategies are more timely in nature, cost effective and
the audience to whom the corporation can market their products or the services is also very high
in comparison to the traditional marketing strategies. These attributes of the digital marketing
strategies have influenced the corporations from the different parts of the world to extensively
use the same rather than the traditional marketing strategies that they had been using since the
traditional times.
KNH Advertising Agency intends to take the help of the digital marketing strategies
particular social media marketing for the purpose of promoting the marketing solutions which
would be provided by it to the new entrepreneurial business ventures and also the existing
business ventures of the nation of Saudi Arabia. More importantly, the venture also intends to
take the help of the different influencers for the purpose of changing the attitude of the new start-
up business ventures and also the existing business corporations of Saudi Arabia regarding the
importance of marketing from the perspective of the business. Furthermore, along with the usage
of the social media marketing and the usage of the digital media influencers, the entrepreneurial
business venture would also send e-newsletters and promotional emails to the different business
ventures of the nation of Saudi Arabia for the purpose of adequately promoting the services
offered by it. KNH Advertising Agency had decided to take the help of these marketing
strategies or measures for the promotion or the advertisement of the services offered by it since
they are cost effective, timely in nature and would offer the opportunity to the concerned venture
to promote or advertise its services before a large number of people because of the extensive
usage of different social media platforms in the recent times. In addition to these, KNH
Advertising Agency would also arrange different kinds of seminars wherein it would promote
the marketing solutions offered by it while highlighting the need for the corporations to use
effective marketing strategies.
The venture KNH Advertising Agency also intends to take the help of adequate
positioning strategies for the purpose of differentiating the marketing services which are being
offered by it in comparison with its rivals or competitors and also for the purpose of gaining a
unique market position within the business sector of Saudi Arabia. The corporations for the
purpose of attaining a unique marketing position needs to either focus on the attribute of cost or
on the attribute of quality. KNH Advertising Agency intends to focus on the attribute of quality
for the purpose of attaining a unique position within the business sector of the nation of Saudi
Arabia. For instance, the plan of the venture is to suggest innovative as well as creative
marketing solutions to the different business corporations and also the entrepreneurial business
ventures of the nation under discussion here and thereby attain a unique position within its
business market.
6.2 Marketing Mix
Marketing mix is an important framework which helps the business corporations to
formulate effective product, price, promotion and distribution related strategies by taking into
perspective their overall business goals or objectives and also the threats as well as the

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opportunities which galore the corporations in the business environment of their operation. In the
particular context of the entrepreneurial business venture KNH Advertising Agency it is seen
that the services which the concerned venture intends to offers are likely to help the different
start-up corporations and the other business corporations of the nation of Saudi Arabia to
overcome the marketing issues that they face. The importance or for that matter the value of the
services which are being offered by KNH Advertising Agency becomes apparent from the fact
that the disregard of marketing activities or the usage of ineffective marketing strategies had
substantially slowed down the growth of the different business corporations of Saudi Arabia
while contributing towards the failure of the some of the corporations as well. More importantly,
within the nation of Saudi Arabia it is seen that there are very few marketing or advertisement
agencies which offer the kind of services that KNH Advertising Agency intends to offer and this
in turn would substantially enhance the demand for the services offered by it. In addition to the
social media marketing services that KNH Advertising Agency intends to offer it would also take
the help of the different digital media influencers for the purpose of helping its clients to
effectively influence the attitude or the buying behavior of their customers.
Price is an important factor which directly influences the buying behavior displayed by
the customers and if the price of the services or the products offered by the corporations are not
in synchronicity with the pricing needs of the customers then it is more likely that they would not
purchase the same. Thus, it had become important for the corporations to take into account the
pricing needs of their customers for formulating or for that matter to design the price strategy
that they would use as regard s the products or the services offered by them. In the particular
context of the business sector of the nation of Saudi Arabia it is seen that there are very few
corporations which offer marketing or advertising services to the business corporations and the
ones which offer the same charge exorbitant amount of price for the same. This in turn makes it
very difficult for the majority of the corporations to use the marketing solutions offered by the
marketing or the advertising agencies. Thus, in order to overcome this particular limitation KNH
Advertising Agency intends to take the help of the cost leadership strategy. Cost leadership
strategy helps the corporations to offer the best quality products or services to their customers at
affordable prices in comparison to the ones which are being offered by their competitors or
rivals. KNH Advertising Agency taking the help of this particular strategy would offer marketing
solutions to its clients at affordable prices in comparison to the price which is being charged by
its rivals within the business sector of Saudi Arabia. KNH Advertising Agency is hoping that
through the adequate usage of this particular strategy it would be able to substantially enhance its
customer base and also earn the satisfaction as well as the loyalty of the same which in turn
would help it to acquire the required success within the business sector of Saudi Arabia.
As already mentioned, KNH Advertising Agency intends to take the help of the digital
marketing strategies rather than the traditional marketing strategies for the promotion of the
marketing services which would be offered by it in the business market of Saudi Arabia. More
importantly, the corporation intends to take the help of social media marketing for promoting its
services over the different social networking platforms so as to adequately influence the attitude
as well as the buying behavior of its customers. In addition to these, the entrepreneurial business
venture under discussion here also intends to take the different e-newsletters, promotional
emails, digital media influencers and others for adequately marketing or promoting the
marketing solutions offered by it. Furthermore, KNH Advertising Agency also intends to
frequently organize seminars or workshops wherein it would promote the services offered by it

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by highlighting the importance of the marketing process from the perspective of the different
corporations and also the benefits that the corporations stand to reap through the usage of
effective marketing strategies. These in short are some of the most important promotional
strategies which will be used by KNH Advertising Agency for the promotion or for that matter
the advertisement of the marketing services that it intends to offer to the new start-up ventures
and the other corporations of the nation of Saudi Arabia.
The place strategy denotes the distribution strategy which is being used by the
corporations in relation to the products or the services offered by it. KNH Advertising Agency
intends to establish its own distribution system through the usage of which the marketing
services would be offered to the business clients of the concerned venture. For the attainment of
this particular end the venture already has one Social media account manager and Digital content
developer manager, one influencer and brand ambassador program manager. In this relation, it
needs to be said that the marketing or the advertising services which would be offered by the
entrepreneurial business venture under discussion would not only be designed but also delivered
by these individuals related to the venture. In future, when the business of the venture grows it
would recruit more candidates who would be able to perform the above mentioned tasks while
taking into consideration the quality parameters or the quality standards of the concerned
venture. The usage of this method for the delivery of services by KNH Advertising Agency
ensures the fact that it would not have spend any additional amount of money on its supply chain
network while ensuring the fact that the services which are offered by the venture are timely and
of high quality.
6.3 Sales Process
Sales process refers to the repetitive steps which are being followed by a sales person or a
sales representative to take a prospective buyer from the early stage of awareness to a closed
sale. The sales process generally consists of five to seven steps, namely, prospecting,
preparation, approach, presentation, handling objections, closing and finally follow-up. The
entrepreneurial business venture KNH Advertising Agency intends to use all these seven steps
within the sales process which would be used by it. For instance, prospecting is the step wherein
the corporations try to find potential or suitable customers who would be interested in purchasing
the products or the services offered by them. Thus, during this particular stage KNH Advertising
Agency would try to identify the new start-up business ventures and also the existing business
corporations of the nation of Saudi Arabia which would be interested in availing the marketing
or advertising services offered by the entrepreneurial business venture under discussion here. In
the second step, that is, preparation, is the step wherein adequate preparations are being made by
the corporations regarding the market condition, the alternative products or services that are
available to the customers and others. KNH Advertising Agency in this stage would be
adequately identify the kind of alternative options that its potential clients have, the benefits
offered these alternative services and others.
In the third step, namely, approach, the sales representative of KNH Advertising Agency
would have to approach the new start-up business ventures and also the existing ones of the
nation of Saudi Arabia and this is the first point of contact between the venture and its potential
clients. In this relation, it needs to be said that the corporations have the opportunity to follow
either of the three approach methods which are being normally used, namely, premium approach,
question approach and product approach. Premium approach is the one wherein the potential

19BUSINESS PLAN TERM PROJECT
clients are being offered a gift to attract their attention whereas the question approach is the one
wherein a probing question is being asked from the clients to make them release the value of the
products or the services which are being offered by the corporation. Lastly, the product or the
service approach is the one wherein some free samples are being offered to the potential clients
for making them understand the benefits that they would derive through the usage of the
products or the services offered by the corporation. In the particular context of KNH Advertising
Agency, it needs to be said that the concerned venture intends to use the question approach. It is
likely that the concerned venture would be able to grab the attention of the new start-up business
ventures of Saudi Arabia and also of its different business corporations by asking them probing
questions regarding the ineffectiveness of the marketing strategies which are being used by them
and also the manner in which these marketing strategies have contributed towards their growth or
development.
In the third stage, that is, presentation, the representatives of KNH Advertising Agency
would have to offer a presentation to the potential clients so as to offer them the required
information related to the marketing solution that the venture offers and also the manner in
which it would benefit them. The fifth stage, that is, the stage of handling objections, is perhaps
the most important one from the perspective of the entrepreneurial business venture KNH
Advertising Agency since in this particular stage the venture would have the handle the different
objections placed by its potential clients and also make them understand the benefits that they
would reap through the usage of the services offered by the concerned venture. In the sixth stage,
the venture would have to finally convince the potential clients to purchase the marketing or the
advertising services offered by it and thereby take the orders for the sale. On the basis of the
orders which would be placed by the clients adequate production forms would be created and the
services would be delivered to the customers. Furthermore, the payment for the services would
be collected at the time of delivery of the services. The last stage involves the action of
following-up on the clients after the sale had been made and addressing any issues that the
concerned clients are facing. These in short are some of the most important steps that the venture
KNH Advertising Agency would follow as part of its sales process.
6.4 Sales Tactics
Sales tactics can be defined as the series or actions or the actions which are being
followed by the corporations for the effective implementation of the sales strategy that had been
formulated by them. The sales tactics followed by the corporations can comprise of different
actions like the creation of business brochures, websites, organization of business seminars,
sending free sample products or services to the potential clients and others. KNH Advertising
Agency intends to take the help of the tactics of sending brochures, creating its own website and
also the organization of business seminars for the effective implementation of the sales strategy
that had been formulated by it. For instance, the relevant information regarding the venture and
also the services offered by it along with the benefits that the clients would get through the usage
of the same would be cascaded through the brochures that the venture would send to the new
entrepreneurial business ventures of Saudi Arabia and also its existing business ventures by the
different brochures created by the venture and its official website. In addition to these, the
different seminars which would be organized by the venture would also highlight the benefits
that the corporations would acquire through the usage of the services offered by the corporation
and also the need for the same. These in short are three most important sales tactics that the

20BUSINESS PLAN TERM PROJECT
entrepreneurial business under discussion here intends to follow for the effective implementation
of the sales strategy that it had formulated or devised.
In addition to the above mentioned measures, the entrepreneurial business venture KNH
Advertising Agency also intends to create a sales team once the business of the venture gets
established and starts to generate revenue. The sales team would consist of around 15 highly
skilled as well as qualified sales professionals with adequate experience in the sales background.
Furthermore, a sales pitch would also be created which the members of the sales team would
have to use for making the sales however the sales professionals would have the leverage to
modify or amend the sales pitch through the usage of their innovation and creativity provided
they stay within the stipulations or the norms of the venture. More importantly, in order to
motivate the sale professionals to give higher number of sales they would be provided incentives
on each of the sales that they give after they achieve their monthly target along with their wages.
7.0 Design and Development Plan
7.1 Development Status and Tasks
Many entrepreneurs fail to attain the required success since they fail to effectively
develop the product or the service that they had thought of offering to their customers. The
entrepreneurs for the venture KNH Advertising Agency for avoiding this particular pitfall had
taken the help of the process of service prototyping and also followed the steps or the stages
related to the effective usage of the same. Firstly, the goal or the objective of the marketing
solutions or the advertisement services that the venture intends to offer to its clients had been
clearly defined. Secondly, initially the entrepreneurs to keep the service really simple so as to
avoid the complications had focused mainly on the aspect of social media marketing services and
after a certain period of time it will start to offer the other services associated with the same.
Thirdly, the marketing professionals of the venture had formulated a few plans, campaigns
blueprints and others also tested it on some of the smaller business corporations of Eastern
Province, Khobar, Alolyaa District to test the effectiveness of the same. As a matter of fact, the
results obtained from these testing clearly indicate that the services which the venture intends to
offer are more than likely to help to corporations to overcome the issues related to marketing that
they face while helping them to adequately influence the behavior of their customers as well. The
last stage would be the consultation stage with the clients wherein these plans, campaign
blueprints and others would be modified so as to suit the needs or the requirements of the clients.
7.2 Challenges and Risks
The most important challenge that the entrepreneurs faced related to the designing of the
services was to formulate the blueprint design or the plan through which it would be able to
resolve the marketing issues experienced by its clients. However, at the same time it needs to be
said that there is a certain element of risk associated with it since it is highly like that the plan or
the blueprint designed by the entrepreneurs would not be effective in the case of all the
corporations. Thus, the entrepreneurs have designed to modify the blueprints or the plans a per
the need or the requirements of the different clients.
7.3 Projected Development Costs
The projected development cost for the venture is expected to between 10,000 SR and
20,000 SR.

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7.4 Proprietary Issues
The entrepreneurs have decided to a procure a license for their business venture and also
the marketing solutions or the advertisement services that the venture would offer. This will help
the entrepreneurs to adequately conduct their business ventures within the nation of Saudi Arabia
without having to worry about licensing issues or other related ones.
8.0 Operations Plan
8.1 General Approach to Operations
Operations management is the process or for that matter the approach which is being
followed by the corporations for the administration of the business practices that are likely to
help the corporations to attain the highest possible level of efficiency. The primary objective of
the operations management approach which is being followed by the different corporations is to
convert the raw materials into services and goods so as to maximize the profitability of the
corporation. Thus, the corporations need to devote the required amount of resources for the
development of adequate operations plan which in turn would help them to not only enhance the
overall effectiveness or for that matter the efficiency of their corporation but also to enhance the
profitability earned by them. In this relation, it needs to be said that the aspect of operations
management becomes even more important in the particular context of the different
entrepreneurial business ventures or the start-ups since the entrepreneurs need to devote the
required resources and also time for the development of effective operations management plan
which in turn would enable them to offer the required services or products to their customers and
thereby to make their venture a profitable one. In the particular context of the venture KNH
Advertising Agency, the entrepreneurs have developed an operations plan which will helping the
venture to produce the marketing or the advertising services that it intends to offer to its clients
would also enable it to synchronize the different backstage and the frontstage activities.
Furthermore, the entrepreneurs have also identified the facilities or for that matter the equipment
which would be needed for the production of the marketing solution that it intends to offer along
with the selection of an suitable location for the establishment of its business wherein it would be
able to get access to these facilities or equipment so as to conduct its business operations
effectively. An overview of the different frontstage and the backstage activities which would be
used by KNH Advertising Agency for offering the required services to its clients is outlined by
the below given figure-
Backstage Activities Frontstage Activities
Selection of the staff or the workers who
would be working in the venture
Interacting with the business clients and
offering them the required marketing solutions
that they require
Ensuring that all the workers are following the
operations manual of the venture and working
on the basis of the same
Offering the required assistance to the workers
Maintaining effective relationship with the
different suppliers
Organization of seminars, workshops and
others for the potential clients so as to
influence their buying behavior

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Development of effective relationship with the
city council and other important authorities of
the city
Publication of monthly, quarterly and annual
business reports
Development of the marketing materials that
the venture would use for the promotion or the
advertisement of the services offered by it
Ensuring the workers are completely their
working hours and also the different tasks
which are being delegated to them
Undertaking employee orientation and also
offering the required training to them so that
they are being able to work as per the
performance standards or the expectations of
the venture
Offering the required reward, recognition and
appreciation to the workers so as that they
would feel motivated to maximize their
potential and thereby make a positive
contribution towards the growth or the
development of the venture
Formulation of contingency plans, risk
mitigation plans, emergency plans and others
Organization of workshops for the workers
wherein they would be able to learn the skill
sets or acquire new knowledge which will help
them to improve their performance
8.2 Service Production
KNH Advertising Agency intends to produce the marketing solutions and the
advertisement services which it would offer to the new start-up ventures of Saudi Arabia and
also to its existing business corporations by itself. The services that the entrepreneurial business
venture intends to offer to its clients would be manufactured by the Social media account
manager and Digital content developer manager, digital media influencer and brand ambassador
program manager of the venture. In this relation, it needs to be said that the services which the
venture would offer have been categorized into two categories, namely, social media and content
marketing and digital media influencers and project programming. Each of these categories
would be handled by the above mentioned individuals related to the venture. More importantly,
when the venture becomes a profitable one two different teams headed by the above mentioned
individuals would be created for handling the work related to the concerned categories. In
addition to these, the General Manager of the entrepreneurial business venture KNH Advertising
Agency would serve as the connecting link among these two department or for that matter the
teams of the venture so as to help the venture to offer the best quality marketing solutions or the
advertisement services to its clients.
8.3 Business Location
KNH Advertising Agency intends to start its business activities at Eastern Province,
Khobar, Alolyaa District and thus the first office of the concerned venture would be established
at this particular region of the nation of Saudi Arabia. This particular region had been selected by
the entrepreneurs for the establishment of the business venture because of various reasons.
Firstly, this particular region of Saudi Arabia is connected with the other parts of the concerned
nation and road as well as air transportation are readily available for travelling to the other
locations of Saudi Arabia from this region. Secondly, in the recent years this particular region of
Saudi Arabia had become one of the most important business centers or the hotspots of the
concerned nation. Thirdly, because of the presence of large number of start-ups and other
business corporations in this region KNH Advertising Agency would not only be able to get the
required number of clients but also would be able to procure the resources that are needed for

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offering the services to its clients as well. It is in the light of these aspects that this particular
region of the nation of Saudi Arabia had been selected for the establishment of the
entrepreneurial business venture under discussion here.
8.4 Facilities and Equipment
KNH Advertising Agency for the purpose of offering the required marketing solution or
the advertisement services to its business clients would need various materials like laptops,
internet connection, smartphones, design software, web analytical tools and others. In addition to
these, other important facilities that would be needed by the venture for offering the above
mentioned services to its clients are chairs, coffee, fans, notebooks, paper, pen and others. These
facilities or the equipment are important from the perspective of KNH Advertising Agency since
these are likely to help the professionals related to the concerned venture to offer the required
services to the clients of the venture.
9.0 Management Team and Company
9.1 Management Team
A management team comprises of a group of individuals who usually operate at the
higher levels of a particular corporation and are entrusted with the responsibility of managing the
work of the different workers of the corporation while ensuring the fact that the various business
functions or the business processes of the corporation are being managed adequately. The
management team of a corporation also have the responsibility to ensure the fact that the goals or
the objectives of the individual employees and the entire corporation are in synchronicity with
each other which in turn facilitates the achievement of the same by the corporations. Thus, it can
be said that an effective as well as an efficient management team is an important determinant of
the success earned by the corporation and therefore it becomes important for the corporations to
devote the required amount of resources for the creation of a high performing management team.
It is because of these reasons that the entrepreneurs are required to formulate a management plan
at the time of formulating or for that matter designing the blueprint of the venture so as to ensure
the fact that the different job roles within the venture would be adequately managed. More
importantly, for the formulation of an effective management plan the entrepreneurs are required
to clearly specify the members of the Board of Directors, Board of Advisers, the structure of
venture and other important attributes on the basis of which the entire business of the venture
would be managed. In addition to these, the management plan formulated by the entrepreneurs
should also seek to capture the present status of the reserves or the resources that the venture has,
the goals or the objectives that the concerned venture is trying to achieve, the manner in which
these goals or objectives had been prioritized and also the process that would be followed for the
achievement of the same.
In the particular context of the venture KNH Advertising Agency it is seen that the goal
of the concerned venture is to become the largest and the most profitable marketing solution
provider within the nation of Saudi Arabia. The venture for the achievement of this particular
goal would focus ardently on the aspect of quality of the services which would be offered by it to
its clients and for enhancing the quality of the services it would take the help of the concepts of
innovation and creativity. More importantly, the marketing solutions offered by the venture
would be intended to help its clients to overcome the marketing issues that they face and also for
helping them to influence the behavior of their customers in the best possible manner.

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Furthermore, unlike the other corporations the marketing solutions recommended by the venture
be completely evidence based and thereby would help its clients to derive the best possible
results through the usage of the same. In addition to these, the entrepreneurs have also developed
a management plan which would be followed for ensuring the fact that all the different job roles
of the venture are being adequately managed so as to help the venture to achieve its business
goal. For instance, the management team of the entrepreneurial business venture under
discussion here would be headed by the General Manager of the venture who s entrusted with the
working of managing the performance of the different departments as well as the workers of the
venture. Furthermore, social media manager, digital content developing manager, influencer and
the program manager would be directly reporting to the General Manager. This segregation of
the different departments had been done so as to enhance the effectiveness of the venture and
thereby help it to attain success.
9.2 Board of Directors
The board of directors are a group of a team of individuals who are being appointed by
the shareholders of a corporation for representing the interests of the shareholders associated
with the concerned corporation and also to ensure the fact that the management of the
corporation acts on their behalf. The board of directors of a corporation also needs to ensure the
fact that the interests of the shareholders related to the concerned corporation are safeguarded
and the different business activities of the corporation are directed towards the achievement of
this particular end. In the context of KNH Advertising Agency, the three entrepreneurs of the
venture, namely, Khalid Alameer, Namad Alshetawi and Naif Alsfayan would be assuming the
role of the Board of Directors of the venture. Furthermore, at present the venture does not have
any shareholders and thus the members of the Broad of Directors would be directing the
resources of the venture for the achievement of the business goal of the venture.
9.3 Board of Advisers
A board of advisors is a group of highly qualified business professionals who help the
business corporations by offering them advice regarding the manner in which the corporation can
be managed in a better manner so as to help it to achieve its business goals or objectives. The
members of the board of advisors also have the capacity to perform different executive duties
within the corporation and also facilitate the prompt resolution of the various issues faced by the
corporation as well. In the light of the different valuable services performed by the members of
the board of advisors they have become an integral part of the different business corporations in
the recent times. The entrepreneurial business venture KNH Advertising Agency also intends to
take the help of a board of advisors the members of which would offer valuable advice to the
management of the venture regarding the manner in which the management process used by it
can be improved for facilitating the growth of the corporation. More importantly, the members of
the concerned board would also help the venture to resolve the different problems or for that
matter the issues faced by it and thereby ensure the long-term growth or the development of the
venture as well. The entrepreneurs intend to have highly qualified as well as experienced
business professionals on its board of advisors team so as to help the venture to achieve the
required amount of success.
9.4 Company Structure
Company structure denotes the organization of the various departments within a
particular business corporation and also the manner in which they are linked to each other. Each

25BUSINESS PLAN TERM PROJECT
of the units or for that matter the departments are entrusted with the work of completing a
specialized task or job role and the different departments or the units are being formed by taking
into consideration the job roles which are being performed by the departments. More
importantly, the different departments or for that matter the units are required to collaborate with
each other so as to ensure the effective completion of the work of the corporation and also for
ensuring the fact that the corporation is being able to achieve its overall business goals or
objectives. The company structure that the venture KNH Advertising Agency intends to follow is
being highlighted by the below given figure-
Figure 2: Company Structure of KNH Advertising Agency
Source: (Created by the Author)

Running head: BUSINESS PLAN TERM PROJECT
Figure 2 indicates that there are two major departments within the venture KNH
Advertising Agency, namely, the social media and digital content department and the influencers
and brand ambassador department. For instance, the social media and the digital content
department would be headed by Naif Alsfayan, the Social Media and Digital Content Developers
Manager and the influencers and brand ambassador department would be taken care of by
Namad Alshetawi, the Influencer and Brand Ambassador Program Manager. More importantly,
these two departments would be controlled by the General Manager, Khalid Alameer and thus
managers of the above mentioned two departments would be required to report to the General
Manager of the venture.
10.0 Overall Schedule

Running head: BUSINESS PLAN TERM PROJECT
Milestones Duration Start Date Finish Date
Selection of the
business
10 days 01/01/2020 10/01/2020
Conduct of feasibility
analysis, marketing
analysis, industry
analysis and others
10 days 11/01/2020 21/01/2020
Formulation of the
management plan,
operations plan,
marketing plan and
others
10 days 22/01/2020 01/02/2020
Selection of the legal
structure of the venture
5 days 02/02/2020 07/02/2020
Procurement of
licenses, permits and
others
20 days 08/02/2020 28/02/2020
Obtaining the funds
required for the
establishment of the
venture
15 days 01/03/2020 15/03/2020
Renting the office
space, facilities and
other important items
15 days 16/03/2020 31/03/2020
Completion of the
different prototypes
7 days 01/04/2020 08/04/2020
Procurement of
customers
7 days 09/04/2020 16/04/2020
Start of production 10 days 17/04/2020 27/04/2020
Sale of services 15 days 28/04/2020 12/05/2020

Running head: BUSINESS PLAN TERM PROJECT
11.0 Growth Plan
11.1 Internal Growth Strategies
KNH Advertising Agency in future in order to facilitate the growth of the corporation
intends to take the help of the product diversification strategy and thereby undertake new service
development for the purpose of monopolizing the business market of the nation of Saudi Arabia.
For instance, in future the entrepreneur also intends to offer accounting services, sales services
and others to its business clients so as to enhance the scope of the services offered by it and
thereby to facilitate its growth. In addition to this, the entrepreneurs also intend to expand into
the other neighboring nations and the entrepreneurs intends to achieve this particular objective
by starting its virtual or online services for the corporations located in the other nations of the
world.
11.2 External Growth Strategies
The entrepreneurs intend to expand the business operations of the venture KNH
Advertising Agency by taking the help of the process of franchising through which various
branches of the venture would be established in the different parts of Saudi Arabia. This strategy
while helping the venture to expand through the nation of Saudi Arabia would also help the
entrepreneurs to become one of the largest corporations of the concerned nation.
11.3 Projected Exit Strategies
The exit strategy that the entrepreneurs intend to follow in case the business becomes too
big for them to handle is the transfer of ownership of the corporation to their family members.
Thus, through the usage of this particular strategy the owners would be able to ensure the
continuity of the venture while being able to take the reward for the time, money and the
resources that they have invested into the venture.
12.0 Financial Projections
12.1 Sources and uses of fund statement
Particulars Amount
Office Space & Collaborative Room 80,000
Equipment 50,000
Marketing Cost 100,000
Employee Cost 250,000
Total Start-Up Cost 480,000
Contribution from Partner 1 100,000
Contribution from Partner 2 100,000
Contribution from Partner 3 100,000
Fund from Sponsorship 180,000

30BUSINESS PLAN TERM PROJECT
Total Initial Investment 480,000
12.2 Pro Forma Income Statement
Proforma Income Statement:
Particulars Amount
Nos. of Clients 17
Avg. Revenue per client p.m. 2,000
Revenue from Clients 408,000
Revenue from Sponsorship 180,000
Total Revenue 588,000
Less: Variable Cost 61,200
Gross Profit 526,800
Employee Cost (250,000)
Marketing Cost (100,000)
Depreciation of Office Floor (16,000)
Depreciation of Equipment (10,000)
General & Administrative Costs (28,600)
Net Profit 122,200
12.3 Pro Forma Balance Sheet
Proforma Balance Sheet:
Particulars Amount
Current Assets:
Cash in Hand 318,200
Total Current Assets 318,200
Non-Current Assets:
Office Space & Collaborative Room 80,000
Depreciation of Office Floor (16,000)
Equipment 50,000
Depreciation of Equipment (10,000)

31BUSINESS PLAN TERM PROJECT
Total Non-Current Assets 104,000
TOTAL ASSETS 422,200
LIABILITIES 0
NET ASSETS 422,200
Equity:
Partners' Contribution 300,000
Add: Net Profit 122,200
TOTAL EQUITY 422,200
12.4 Pro Forma Cash Flows
Proforma Cash Flow:
Particulars Amount
Cashflow from Operating Activities:
Collection from Client 408,000
Collection from Sponsorship 180,000
Payment of Variable Cost (61,200)
Employee Cost (250,000)
Marketing Cost (100,000)
General & Administrative Costs (28,600)
Net Cash Flow from Operating Activity 148,200
Cashflow from Investing Activities:
Office Space & Collaborative Room (80,000)
Equipment (50,000)
Net Cash Flow from Investing Activity (130,000)
Cashflow from Financing Activities:
Contribution from Partners 300,000
Net Cash Flow from Financing Activity 300,000
Net Increase in Cash Flow 318,200
Add: Opening Balance 0
Closing Cash Balance 318,200

32BUSINESS PLAN TERM PROJECT
12.5 Ratio Analysis
Ratio Analysis:
Particulars Amount
Gross Profit Margin 89.59%
Net Profit Margin 20.78%
Return on Investment 40.73%