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1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a public relations firm while showcasing the expected financials and operations over the next three years. Public Relations Firm, Inc. (“the Company”) is a New York based corporation that will provide increased visibility to business clients within its targeted market. The Company was founded by John Doe.
1.1 Operations
Public Relations Firm, Inc. seeks to bring businesses into the media spotlight. Through Mr. Doe’s myriad of contacts within the public relations and news industries, he is able to direct attention to businesses that operate among local and regional businesses. The Company will offer these services through several programs. The third section of the business plan will further describe the services offered by the Public Relations Firm.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The business seeks to provide its clients with access to the general and business news media. We strive to increase our client’s visibility among their targeted markets.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the media industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target businesses within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Public Relations Firm, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Public Relations Firm requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Public Relations Firm, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Public Relations Firm. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Operations
Below is a description of the services offered by the Public Relations Firm.
3.1 Public Relations and Marketing Services
A) PR Services • Relations with media content providers and distributors • Strategic planning and program development for entering specific markets. • Business to business visibility through articles in specific trade journals and periodicals. • Crisis, issues, and scandal management services • Brand development, increasing visibility of brand, and brand enhancement consulting
B) Media Monitoring and Analysis (RMS) • Continuous market research and analytic reports
C) Marketing Services • Direct marketing to customers • Guerilla and street marketing for high impact localized marketing campaigns • Internet and Interactive marketing campaigns • Customer relationship management consulting and strategies
D) Public Affairs Services
E) Counseling and Consulting
F) Competitor Intelligence
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the public relations industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Current, the economic climate is moderate. The economy is undergoing a transition period due to changes in global trade policy. At this time, interest rates have remained steady due to appropriate and measured policies by central banks. While there has been volatility, this is expected to subside as the economy adapts to these changes.
In today’s world, the demand for public relations remains strong as companies vie for attention. The Public Relations Firm will be able to generate substantial revenues in any economic climate.
4.2 Industry Analysis
The advertising industry is one of America’s largest service providers in the economy. There are over 621,000 firms providing advertising and marketing services to clients. The industry generates over $16 billion dollars of revenue for the U.S. Economy. Additionally, over 200,000 people are employed throughout the industry with an average annual payroll of 7.5 billion dollars. Among these firms, approximately 6,500 act solely in a public relations capacity. The public relations business segment of the market products $7 billion dollars aggregately among these firms. The industry also provides jobs for 50,000 people, and disperses payrolls exceeding $2 billion dollars per year. One of the most interesting aspects of the advertising industry is the ability to develop simultaneous traditional and experimental forms of advertising. The advent of the Internet has allowed businesses to communicate effectively with a number of advertising businesses that provide specialized advertising activities. As such, public relations companies are now helping smaller businesses develop their marketing campaigns within the online community. Many PR and marketing firms have developed several programs to help businesses develop news and marketing tactics on several new forms of mediums.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Public Relations Firm, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the business.
5.1 Marketing Objectives
- Establish relationships with media firms and publications within the targeted market.
- Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
The Company and its Management intend to actively solicit public relations and marketing work from a selected audience of local and regional companies. Mr. Doe intends to develop a marketing campaign that will target these businesses and individuals through the use of advertisements in trade journals, industry publications, and through word of mouth referrals. Additionally, conventions, business trade shows, online advertising activities, sales development and viral marketing campaigns follow carefully orchestrated strategies by the Company’s marketing personnel in conjunction with retained marketing experts. Timely coverage of Public Relations Firm, Inc. will be further directed through ongoing press relations, news releases and feature stories targeted at key professional communities and other media outlets.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
- The Public Relations Firm will have an annual revenue growth rate of 10% per year.
- The Owner will acquire $100,000 of debt funds to develop the business.
- The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s public relations and marketing programs are affordable during all levels of economic prosperity or recession. However, purchases of public relations management, advertising space, and marketing services will certainly decrease during times of economic recessions. The Company’s significantly high gross margins will allow the business to remain both cash flow positive and profitable during times of economic pullback.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
