business plan for creative agency

7/23/2019 Business Plan for Creative Agency

http://slidepdf.com/reader/full/business-plan-for-creative-agency 1/27



BUSINESS PLAN FOR ADVERTISING FIRM – TIGER

BRANDING, PROWLING MARKETEER

Prepared for

Dr. A. K. M. Saiful Majid

Course Instructor: W301 Entrepreneurship

Professor

Institute of Business Administration, University of Dhaka

Prepared by

Sajeed Alam ZR-60

Roll Number: ZR-60, BBA Batch 20, Section A


January 10, 2014



i

January 10, 2014

Dr. A.K.M. Saiful Majid

Course Instructor: W301 Entrepreneurship

Professor


Honorable Professor,

As commissioned on December 2014 under the Individual Assignments segment of your course

curriculum, I am submitting the attached business plan titled Business Plan for Advertising Firm –

TIGER BRANDING, Prowling Marketeer. The business plan developed is based on research conducted

and class lectures on business plan development and consists of:

A structured approach of a business plan consisting of all the standard components as

referenced from Dr. Donald F. Kuratko

Situation Analysis using SWOT and Porter’s Five Forces

Elaborate marketing studies and market entry and pricing strategies

Financial analysis of costs, profitability and break-even sales Organization management plans and strategies

In completion of this assignment, I am immensely grateful to you for handing over this practical learning

opportunity, by exploring all the practical and theoretical aspects required to establish a proper business.

This experiential learning experience is quite important to our development as students and future

entrepreneurs and writing this business plan has helped me immensely. Thank you once again sir for

everything.

Sincerely,

__________

Sajeed Alam

ZR-60, BBA Batch 20, Section A

Enclosure: Business Plan for Advertising Firm –

TIGER BRANDING, Prowling Marketeer.



ii

TABLE OF CONTENTS

Page No.

1. BUSINESS OVERVIEW

1.1 Business inception 11.2 Business name, logo and tagline 1

1.3 Industry background 2

1.4 Business description

1.4.1 Business summary 3

1.4.2 Business mission, vison and values 4

2. MARKETING

2.1 Market Situation Analysis 5

2.1.1 SWOT Analysis 5

2.1.2 Competitor Analysis 6

2.2 Service Offering 7

2.2.1 Service 7

2.2.2 Pricing 7

2.2.3 Place 9

2.2.4 Promotion 10

3. OPERATIONS

3.1 Office Location 12

3.2 Operational Procedures 13

3.3 Equipment and Logistics 14

4. MANAGEMENT

4.1 Organizational Structure 15

4.2 Employee Structure 16

4.3 Corporate Governance 17

5. FINANCIAL SEGMENT

5.1 Pro forma Balance Sheet 17

5.2 Income Statement 18

6. CRITICAL RISKS

6.1 Problems and risks 19

6.2 Alternative courses of action 19

7. HARVEST STRATEGY

7.1 Continuity of Business Strategy 20

8. MILESTRONE SCHEDULE 20

9. APPENDIX 21



iii

EXECUTIVE SUMMARY

The advertising industry of Bangladesh has been growing since the late 1990s with the growing

emergence of multinational companies in the local market. With growing global trends in

consumer behavior and the burgeoning economic scenario of Bangladesh in recent times,

consumers have become increasingly sensitive to the brand behavior. As a result, brands, both

local and multinational have been heavily focused on marketing their products and services in

a localized manner, aligning with global standards to successfully position them into consumer

mindsets. This is where a lot of advertising agencies have been stepping into the scenario.

Around 2003, global advertising agencies like GREY and Leo Burnett stepped into the scenario

while the MNCs used their in-house advertising. However, due to the growing demand for localmarketing intelligence, local advertising firms such as Asiatic ThreeSixty have dominated the

local market.

Furthermore, the emergence of social media has massively transformed the paradigm of

marketing, thus introducing social media marketing. Nowadays, technology itself has become

central to marketing and even virtual reality and mobile application development are part of

marketing services provided by ad firms in Bangladesh. Consequently, the industry has become

highly lucrative for new entrants due to the relatively low start-up costs, easy knowledge of

digital marketing trends and the most important aspect being creativity itself. The more creative

agencies are, the better they are excelling. As a result, this business plan proposes the

establishment of an advertising agency, Tiger Branding.

The name Tiger Branding is significant in terms of being an emerging and dominating

advertising firm, which will seek to prowl on marketing intelligence and aggressively market

the products to successfully position them into consumer mindsets. The organizational mission

and vision also emphasize on socially responsible and ethical practices, with a view to ensuring

that while the client is the lord, the content, i.e. the product or service to be marketed, will

remain the king and the company will strive to maximize and promote the utility of the product

or service.

In spite of a growing number of advertising firms already existing in the market, Tiger

Branding’s core competencies will lie in the field of Digital Marketing, with its employee



iv

expertise in mobile application development, web design and firm knowledge of social media

intelligence. Pricing strategies have also been competitively placed in order to position the

company as a low-cost advertising agency providing superior services. Also, in order to enter

the already saturated market, BTL strategies have been proposed which include the creation of

a company design portfolio, a show reel to showcase video making competencies, and

corporate gifts to be provided to corporate clients showcasing the design and marketing

capabilities of Tiger Branding.

In terms of operations, the organization will follow a continuous process of client life cycle

management with constant monitoring and evaluation. A fairly flat organizational structure

will be maintained to ensure effective communication between the design teams and customer

management teams, in order to develop the best marketing solutions. Employees will be

working in small, cross-functional teams to maximize communication efficiency. For further

operational flexibility, a combination of part-time (based on projects) and full time employees

will be maintained. In terms of expenses and finances required, a significant initial investment

in technological capital (equipment) will be required which will be adequately compensated

for via a projected client locking of 15 clients in the first year and a significant profit in Year

1.

Risks to the business include the high investment on machinery and equipment which may not

be adequately compensated for if client deals are not secured as per the desired targets.

However, due to the nature of the industry which is highly creativity induced, the same

equipment and workforce competencies can be widely applied to providing creative and design

based solutions to any industry. In terms of milestones to be achieved, the company expects to

reach a client portfolio of around 50 clients by its third year of operations and expects to

diversify into international clientele and virtual reality marketing.

Overall, the most significant investment in Tiger Branding will be that of creativity, which

itself is a non-monetary but immensely valuable asset. Provided the company runs as projected,

it may soon become one of the top performing advertising agencies in the industry.



1

1.0 BUSINESS OVERVIEW

1.1 Business inception

The proposed business plan caters to the establishment of an advertising firm. An advertising

firm, is a service-oriented company which caters to marketing and advertising services of

various brands, goods, services, organizations, NGOs and even government agencies. Services

provided by advertising firms include logo design, campaign designs and marketing

consultancy, advertisement development and a host of services catering to the promotion of the

specific brand, product or company. In the advent of the digital revolution and the proliferation

of social media, social media marketing itself is a significant part and an important tool for

advertising firms in the industry. Based on these aspects, the proposed business plan caters tothe development of an advertising firm providing all the above wide range of marketing

solutions. The proposed name of the company is: TIGER BRANDING. The proposed tagline

is: Prowling Marketeer.

1.2 Business name, logo and tagline

The rationale behind the name includes the national sentiment and the national animal of

Bangladesh and its pride, the Royal Bengal Tiger. A tiger itself is a fearless animal whichdominates the animal kingdom with its strength and hunting prowess, and a Royal Bengal Tiger

is unique among all tigers. Likewise, Tiger Branding aims to be an advertising firm which

fearlessly and comprehensively devours market intelligence to design and provide marketing

solutions which captivate the target market of the client. The tagline, Prowling Marketeer,

refers to the motion of a tiger prowling and its similarity in the proposed business’s approach,

to prowl on the market and provide marketing solutions which puts the target consumers in

awe. The logo features a tiger inside a circle representing the heart of Bangladesh.



2

Figure 1. Company logo and tagline

1.3 Industry Background

The advertising agency industry of Bangladesh has seen a significant creative transformation

in recent times. With the expansion of multinational company operations around 1998 (when

Grameenphone entered the market and the Lever Brothers Bangladesh Ltd name was rebranded

to Unilever Bangladesh Ltd), these MNCs sought the services of locally renowned art directorsto help develop advertisement concepts. Print media was designed by global headquarters and

most advertising was done in house. Around 2002, advertising companies entered the market,

as both local and foreign products proliferated, particularly the fast-moving consumer goods.

Leo Burnett entered into a joint venture as Bitopi-Leo Burnett, Ogilvy entered in 2008, GREY

Dhaka has been operating since 2005. Local companies include Applebox Films, which

specializes solely on advertisement making and is headed by renowned art director, Piplu R

Khan, Beatnik Studios, Maverick Studios, Horin Branding and many more. Currently, there

are over 60 registered advertising agencies, both local and international, operating in different

capacities in the country. They provide a host of marketing services from consumer intelligence

development, marketing and promotional strategies, campaign design and launch, logo design,

web hosting to social media marketing.



3

Figure 2. Grameenphone 3G Print ad designed by GREY Dhaka

The industry is highly capital intensive in terms of technological capital as advanced

computers, television recording equipment, cameras and software are required to transform

ideas into visible components. However, due to the growth of social media marketing and the

propensity of all companies to enter the social media scene, marketing costs are significantly

reduced. The most challenging aspect of the industry lies in its core essence of a constantly

innovative sphere. Marketing is a dynamic field as consumer trends change by the minute and

the internet’s global connectivity makes consumer behavior even more dynamic. To tap into

the consumer mindset via the perfect positioning, campaign design, logo design and market

offering requires a constant exercise of creativity. As a result, a lot of young and aspiring

entrepreneurs are entering the industry due to the relatively low startup costs and their creative

and innovative drive to attract the attention of the target customers. Moreover, companies are

becoming increasingly consumer sensitive, thus localizing their brand messages and appeal.

The more local a brand is, the better it sells as distributed by Bengali taglines and youth-

oriented marketing campaigns. A notable example of that is “Bondhu Chara Life Impossible”

– a youth oriented tagline of Airtel, promoting its cheap call rates. Capitalizing on all of that,

local ad firms with good understanding of the young population and potential customer base of

Bangladesh, are increasingly sought by big businesses to market their products. All of this

makes the industry highly conducive to entrepreneurship.

1.4 Business description

1.4.1 Business summary

Tiger Branding is a proposed Advertising Agency, providing a host of marketing solutions and

services ranging from logo design to campaign development and ad making, social media



4

marketing services and marketing consultancy (The service offering is explained in details in

section 2.2). Although, the business is part of an imitative model of existing advertising

agencies, it aspires to capitalize on creativity as the most vital asset and apply this to reinvent

and add a unique perspective to conventional marketing strategies and channels. The most

distinctive feature of Tiger Branding includes:

A unique approach to digital marketing through illustrations and video clip animation

User Experience Interface design and development

The above approach is not very commonplace among existing advertising agencies due to the

shortage of computer and mobile application programmers in the industry and the lack of

familiarity with social media trends among the companies. This is where my personal

knowledge of mobile application development and extensive experience with social media

interaction and technological framework may help device a competitive advantage in creating

a unique value proposition for the business.

1.4.2 Business mission, vision and values

The mission statement of Tiger Branding is as follows:

To provide comprehensive marketing solutions to clients that can successfully captivate

consumer minds and maximize the value and utility for all stakeholders involved in a socially

responsible, ethical and transparent manner.

The company vision can be summarized as follows:

Tiger Branding expects to reach the ranks of a unique marketing agency where success is

measured by a continuous flow of creativity to constantly improve marketing solutions and

strategies for clients, and to develop a formidable reputation of a dynamic marketeer.

The proposed enacted values of Tiger Branding can be simply outlined as follows:

To challenge the status quo constantly and embrace failure as a cornerstone for

development

To ensure transparency across all levels within the organization and outside

To ensure that the customer is the lord while the content, i.e. the brand itself, remains

the king



5

2.0 MARKETING

2.1 Market Situation Analysis

After comprehensive understanding of the industry and the target consumers, external and

internal factors of the proposed advertising firm, Tiger Branding, need to be analyzed to

identify the company’s competitive standing and its challenges, constraints and growth

opportunities.

2.1.1 SWOT Analysis

The SWOT analysis for Tiger Branding caters to the company’s internal, prospective strengths

and weaknesses to emphasize on, and its external opportunities and threats to capitalize on.

Strengths:

Strong knowledge of social media trends due to the presence of a young team actively

involved in social media marketing. This helps capitalize on devising the right social

media marketing strategies.

Strong technical knowledge: web designing, logo designing, movie making,

photography

Low startup costs due to the existing resource pool of computers and electronic devicesand a young and agile workforce to bolster creativity

Existence of a strong network among existing peers and the alumni association of IBA,

DU which itself contains a host of entrepreneurs and top executives at the leading

companies of Bangladesh

Weaknesses:

Lack of market understanding to cater to brands which are designed for the majority of

the public and will require consumer behavioral understanding at the grassroots Perceptual bias of big corporate clients preferring skilled advertising agencies over

start-up enterprises which may result in not being able to secure them

Lack of technical knowledge on mobile application development, which is an emerging

platform for digital marketing

Opportunities:

The increasing popularity and extensive use of social media by Bangladeshi citizens is

a green field for social media marketing, which is one of the key services to be provided by Tiger Branding



6

Reputed and large scale advertising firms often outsource copyrighting and designing

work to lower scale advertising firms, and Tiger Branding can capitalize on that to take

in these outsourced projects and indirectly interact with the big clients, while

simultaneously increasing its portfolio of marketing experience.

Threats:

Creativity is extremely dynamic and non-quantifiable and so companies can easily gain

a competitive edge

Social Media Marketing is becoming increasingly commonplace for regular users to

learn and so many clients may choose to do so themselves instead of hiring advertising

agencies

Media personalities are launching their own advertising agencies banking on their

experience in film and television and they stand as threats to nascent advertising start-

up ventures like Tiger Branding

2.1.2 Competitor Analysis

Tiger Branding is a relatively small scale proposed advertising firm with prospects for growth.

Given the size, scale and scope of services to be provided, the major competitors of Tiger

Branding include:

i. Beatnik Designs: Beatnik is a start-up venture itself with a highly successful run in the

last 4 to 5 months. It extensively focuses on social media marketing and has secured

clients such as popular restaurants George’s Café and Veni Vidi Vici and large scale

companies like IPDC and LG Bangladesh. One of the biggest strengths of Beatnik is its

unique designs for all sorts of media (print and digital) and its widespread expertise in

mobile application development.

ii.

Maverick Studios: Maverick Studios is a hub of advertising innovation. The company

has tapped into the corporate marketing industry, developing marketing content for the

biggest corporate clients such as Grameenphone, and overseeing B2B promotion. Its

social media marketing is also widely recognized and the company manages social

media engagement of top companies like Robi. Maverick Studios also has a dedicated

research division for the development of mobile applications and unique software called

ice9 interactive and is currently developing virtual reality entertainment.



7

iii. Magneto Digital: Magneto Digital is also a growing start-up enterprise which is

heavily involved in social media marketing. Its top clients include over 20 restaurant

chains which have a social media following of over 50000 people on all social media

platforms thanks to Magneto’s unique marketing designs. The company is also actively

involved in content marketing and consultancy services for top corporate clients like

Grameenphone.

2.2 Service Offering

As a nascent advertising firm, Tiger Branding’s prior objective is to capitalize on the growing

opportunities of social media marketing, print media and content design and visual/audio

content generation. With practical considerations in mind, the company proposes to operate in

a competitively priced structure, establish offices in a convenient location and promote itself

to clients accordingly.

2.2.1 Service

The main services to be offered by Tiger Branding include:

Digital Marketing: comprising social media marketing on Facebook, Twitter, YouTube,

Instagram and Google+, content generation on social media platforms, digital platform

page management and consumer engagement, digital advertisement promotion and

consumer trend analytics

Content Marketing: SEO, digital advertisements, visual/audio media

Support services for major advertising firms: via logo design, peripheral creative media

design and other support design and creative work

2.2.2 Pricing

Based on the services mentioned above, the pricing at advertising firms is usually arbitrary as

it depends on the duration, creative complexity, scale and magnitude of the task involved.

However, certain rates can be standardized as per global standards and in view of competitive

pricing compared to that of existing advertising firms. Tiger Branding has the following basic

pricing plans for clients to avail:



8

i. Social Media Marketing/Digital Marketing

Platform/marketing type Quotation/Price

Facebook

Sponsored advertisements, searchadvertisements

10% markup of actual costs which range between bids of US$0.6 and US$2 per

square inch of impression as set by

Facebook

Facebook page management via dealing

with customer comments, messages and

feedback and providing view and

engagement analytics per month

Tk. 4,000 per month of page administration

and customer response management, and a

detailed consumer engagement report at the

end of each month

Design of digital banner and online content Tk. 3000 per 50 impressions/ content

designs

Google+ and Google

Page administration and content generation

along with boosting content

5% markup of actual costs ranging between

US $0.5 and $1.6 per square inch of

impression as set by Google

Search Engine Optimization (SEO) to

promote company on Google search results

15% markup of actual costs depending on

the type of SEO preferred by clients.

Instagram

Digital content generation Tk. 2000 per 100 impressions

Twitter

Tweets and impressions Tk. 2000 per 100 tweets

Website

Web interface design Tk. 4000 per webpage (basic template)

Tk. 3000 per impression of flash animation

Tk. 1000 per month for monthly website

engagement analytics report

Mobile application

Mobile application user interface design Tk. 3000 per 1000 impressions



9

ii. Development of audio-visual and design-oriented content

Content type Quotation/Price

Logo creation, company banner design,

color scheme, font and theme design

Tk. 3000 per logo

Tk. 5000 for overall packageCreation of advertisement or video clips Tk. 2000 per minute of footage

Tk. 4000 per 10 seconds of animation

Creation of radio commercial Tk. 1000 per 10 seconds

Creation of company visiting card Tk. 1000

Office interior design specifics via CAD

designs based on logo, theme and values

Tk. 5000

Product packaging design Tk. 1000 per 5 square inches of design

space

It must be noted that these standard prices will be subject to change based on the length,

complexity and creative input required to develop a superior experience for the client. Prices

will be negotiable in bulk and mass scale consignments and will vary for outsourced work

received from other advertising firms.

2.2.3 Place

The main target customer base of Tiger Branding constitutes the following:

Local and multinational companies specializing in products (fast moving consumer

goods) and service delivery

NGOs and government organizations

Retail stores and brands

Educational institutions

Other large scale advertising firms seeking to outsource design work

As a service provider, Tiger Branding’s major engagement will be with corporate clients and

businesses (B2B) which will require setting up offices in a convenient and accessible location.

However, as a start-up enterprise with limited operations, I have located the office premises to

be in Uttara in a commercial enterprise operated and owned by my family to compensate for

high rental costs throughout Dhaka city.



10

Figure 3. Office Interior

2.2.4 Promotion

As part of a B2B model, Tiger Branding’s major promotional activities will be centered on

BTL marketing strategies to tap into the corporate client base. It will follow the following

strategies to tap into the market:



11

Relationship development through existing network – capitalizing on the alumni

network for IBA graduate entrepreneurs and top executives at reputed local and

multinational companies

Establishment of a website featuring design portfolio and sample work – thewebsite itself will be effectively designed to showcase the web designing capabilities

of Tiger Branding and a show reel will be featured to showcase its video making

capabilities. The website will also feature a design portfolio to showcase the design

capabilities.

Figure 4. Website Interface

An effective presence on social media with Facebook, Twitter, Instagram and

YouTube pages actively featuring content and capabilities of Tiger Branding



12

Visiting cards with design portfolios to be prepared and submitted to corporate

clients as a token and promotional tool – may include calendars and gift items

exclusively designed by Tiger Branding as corporate gifts

Figure 6. Visiting Card

3.0 OPERATIONS

3.1 Office location

As cited in the earlier segment, the location has been selected in accordance with the

competitive advantage of having an existing vacant office space at Uttara Sector 12. Due to the

existing overcrowded nature of Gulshan and Banani and the high rental costs in those areas,

Uttara is a budding location for businesses to move into. Furthermore, due to the existing family

owned space, costs are further deduced and more resources can be invested to improve the

services and technological competencies. Rent is hence not a cost consideration but standard

utility expenses will be provided. The initial office of Tiger Branding will be located in Uttara

Sector 12, House 3, Suite 7A, and Road 14. The following Google Map illustration identifies

the location of the office premises.



13

Figure 5. Location of Tiger Branding office

3.2 Operational procedures

The standard operating procedure of Tiger Branding can be described as follows in sequential

order:

i. Client scouting and engagement

ii. Listing of client requirements

iii. Preparation of a proposal and draft of client requirements in simulation

iv. Negotiation with client on terms of design, monetary agreements and terms

v.

Revision of agreement and designs and final securing of client deal

vi. Execution of marketing tasks

vii. Constant monitoring and evaluation of tasks with feedback and engagement with

client

viii. Completion/continuity of tasks as described in terms of agreement

ix. Closing of client deal

Tiger Branding consists of three proposed cross-functional core teams:



14

i. Client management team: This team deals with the entire client management life

cycle:

a.

Client scouting, engagement and securing

b. Client interaction and relationship development

c. Client retention

ii. Design focus team: Once client requirements are received, the client management team

collaborates with the design focus team to prepare a proposal for the client. The client

management team submits the proposal and re-engages with the client. After final terms

are agreed upon, the Design focus team executes the tasks.

iii. Monitoring and evaluation team: a cross-functional team constituting team heads,

overseeing timely execution of projects and performance evaluation of employees.

3.3 Equipment and logistics

The nature of an advertising firm is technological capital intensive and high quality equipment

is required. Following is the list of required equipment and the corresponding expenses:

i. Digital Single Lens Reflex Camera with 18.1 Megapixel Resolution and Full HD

recording capability – preferred model is Canon EOS 650D with a market price of

Tk. 54,000

ii. Camera Kit, tripod and lens – approximately Tk. 13,000

iii. 3 Apple MacBook Pro 13” Laptop – 1 currently owned and the rest accounting to Tk.

2, 30,000

iv. 3 Core i5, Dedicated 2GB graphics operating Desktop computers – approximately

Tk. 1,20,000

v. Office furniture – One conference table, 20 office chairs, 15 desk stands of Board and

Partex furniture at approximately Tk. 3,75,000

vi.

High speed internet connection – Link 3 enterprise connection of 20 Mbps at Tk.

8000 per month

vii. Air conditioning and office interior expenses – Tk. 9,80,000

viii. Utility expenses contingent on use

The overall initial expense for setting up and procuring equipment will hence wrap up to

approximately Tk. 17,73,000.



15

4.0 MANAGEMENT

4.1 Organizational structure

Tiger Branding proposes to follow a highly flat organizational structure with employeesworking on cross-functional teams offering high engagement and communication. The

organizational structure can be outlined as follows:

i. Top management – the top management will consist of:

a)

CEO and Creative Director – overseeing entire operations

b) Head of Design Team – overseeing operations of Design Team

c) Head of Customer Relationship – overseeing customer relationship

d) Head of Audit, M&E – overseeing accounting and company finances along with

evaluation of targets

ii. Operational teams – there will be three operational teams which will be cross-

functional in nature and constantly collaborate to deliver results:

a. Client management team: This team deals with the entire client management

life cycle:

Client scouting, engagement and securing

Client interaction and relationship development

Client retention

b. Design focus team: Once client requirements are received, the client

management team collaborates with the design focus team to prepare a proposal

for the client. The client management team submits the proposal and re-engages

with the client. After final terms are agreed upon, the Design focus team

executes the tasks.

c.

Monitoring and evaluation team: a cross-functional team constituting team

heads, overseeing timely execution of projects and performance evaluation of

employees.

iii. Audit and Evaluation Team – this will consist of the CEO and Creative Director, the

head of this department and representatives from each team



16

4.2 Employee structure

There will be 3 types of employees at Tiger Branding:

i. Permanent employees – Permanent employees will be stationed in each team and

will receive fixed salaries along with project-based bonuses and incentives ii. Part-time employees – Part-time employees will work on an ad-hoc basis

depending on the pro ject and will receive payment based on the project’s revenue

distribution.

iii. Office staff – for office maintenance

All permanent and part-time employees will be from 3 categories: managerial, technical and

operational.

The technical employees will be from the following expertise:

i. Web application development with knowledge of Java, C++ and .html

ii. Mobile application development with knowledge of iOS and Android apps

iii. Expert proficiency in Adobe Creative Suite

iv. Expert proficiency in video editing software suites

v. Video shooting and photography

The managerial employees will be from the following expertise:

i. Expertise in leadership and management of teams to ensure tasks are executed

on time

ii. Business acumen, strong market understanding and ability to make financial

analysis and projections

iii. Ability to set organizational ethics, guidelines and implement them for

monitoring and evaluation

iv. Good communication skills for client engagement

The operational employees must have:

i. Strong design and aesthetic sense

ii. Ability to work under pressure situations and perseverance

iii. Good communication skills for client management

iv. Relentless pursuit of creativity



17

4.3 Corporate governance

Tiger Branding will be a sole proprietorship. All employees will receive salaries and

performance-based pay and incentives. In terms of legal structure, the owner will be solely

responsible for all assets and liabilities.

5.0 FINANCIAL SEGMENT

The financial segment of Tiger Branding will analyze the financial viability of the business and

the feasibility of operations via various financial statements.

5.1 Pro Forma Balance Sheet

The following assumptions were made in preparing the balance sheet

A bank loan of Tk. 20,00,000 will be taken in the first year

A total of 15 clients will be locked in 2015, each of them taking standard digital

marketing services accounting to over Tk. 2,00,000 per month

TIGER BRANDING

Pro Forma Balance Sheet for the Years 2015-17

2015 2016 2017

ASSETS

Current assets

Cash Tk. 8,00,000 Tk. 9,70,000 Tk. 9,20,000

Accounts receivable 4,00,000 5,00,000 2,00,000

Inventory 10,000,000 12,80,000 13,00,000

Prepaid expenses 4,50,000 4,00,000 3,00,000

Total current assets Tk. 26,50,000 Tk. 31,50,000 Tk. 27,20,000

Fixed assets

Equipment Tk. 17,73,000 Tk. 22,40,000 Tk. 25,60,000

Less: Accumulated

depreciation

(30,000) (45,000) (60,000)

Total fixed assets Tk. 17,43,000 Tk. 21,95,000 Tk. 25,00,000



18

Total assets Tk. 45,93,000 Tk. 65,45,000 Tk.52,20,000

LIABILITIES

Current liabilities Tk. 20,00,000 Tk. 28,00,000 Tk. 32,00,000

OWNER’S

EQUITY

Tk. 25,93,000 Tk. 37,45,000 Tk. 20,20,000

Total liabilities and

owner’s equity

Tk. 45,93,000 Tk. 65,45,000 Tk. 52,20,000

5.2 Income Statement

The income statement has the following assumptions:

A total of 15 clients will be locked in 2015, 25 clients in 2016 and 40 clients in 2017

Each client will on average avail Digital Marketing services of Facebook and Instagram

accounting to around Tk. 3,00,000 per month

Inventory and operational expenses have included set up costs of Tk. 17,73,000 for

equipment as calculated earlier Income tax has been estimated at 15%

TIGER BRANDING

Income Statement for the Year Ended December 2015

Sales Revenue Tk. 36,00,000

Less: Cost of Service Provided

Inventory and service components, January 2015 Tk. 14,73,000

Purchases 5,00,000

Cost of service provided 19,73,000

Gross margin Tk. 16,27,000

Operating Expenses

Total operating expenses 13,00,000



19

Operating income Tk. 3,27,000

Financial expenses

Income before taxes Tk. 3,27,000

Estimated income taxes 49,050

Net profit Tk. 2,77,950

6.0 CRITICAL RISKS

6.1 Potential problems and risks

The potential problems of the business include:

High risk and investment required which may not be adequately met by client deals

The advertising agency industry is becoming increasingly more saturated and

differentiated services in the market will be difficult to provide

Clients may not be confident with entrusting marketing services to a start-up agency

Peripheral and outsourced work from other agencies will not be a financially

sustainable business

6.2 Alternative courses of action

Based on the potential problems identified, the following alternative courses of action may be

undertaken:

Merger or strategic partnership with existing advertising agencies of similar scale to

collaborate on a bigger platform with greater resources

Diversifying business to various design-oriented businesses such as interior decoration,

handicraft, video-making and photography ventures



20

7.0 HARVEST STRATEGY

7.1 Continuity of business strategy

After revenue targets and break even sales are achieved, the company will pursue a client-goal-

oriented program. This program will have the following features:

A set of goals in terms of the number of clients to reach per quarter, the number

increasing exponentially

An aggressive performance-based pay grade to motivate employees to deliver results

successfully

Incorporating partners into the business to expand sources of capital and to increase

operations subsequently

Expansion and research into virtual reality software development for marketing

solutions

Expanding client base to foreign companies to gain foreign clients

Securing long-term deals with clients to ensure continuity of service

Increasing physical presence in the community via aggressive BTL marketing to reach

clients

8.0 MILESTONE SCHEDULE

The milestone schedule of Tiger Branding is as follows:

i. Year 1 to Year 2: reach break-even, maintain client base of 15

ii.

Year 2 to Year 3: set target client base of 45iii. Year 3 to Year 4: accumulate foreign clients, set target client base of 70

The above projections are highly speculative and will depend on the company performance,

market situation, consumer behavior and the overall paradigm of marketing globally and

locally.



9.0 APPENDIX

REFERENCES

How to Write a Business Plan | SBA.gov. (n.d.). The U.S. Small Business Administration.

Retrieved May 27, 2014, from http://www.sba.gov/category/navigation-structure/starting-

managing-business/starting-business/how-write-business-plan

Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed., Global ed.). Boston,

[Mass.: Pearson.

Kotler, P., & Armstrong, G. (2012). Principles of marketing (15th ed.). Englewood Cliffs, N.J.:

Prentice Hall.

business plan for creative agency

Documents