Business plan Splash A2

8/7/2019 Business plan Splash A2

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CENTRO DE CAPACITACION GLORIA DE KRIETE.

2010

Business plan

SPLASH!

T H I R D Y E A R A 2

Members:

Alexandra Ayala Ramírez.

Josselyn Fabiola Duarte Torres.

Katherine Fidelina Mendoza Lara.

Luisa Marcela Vásquez Meléndez.

Roxana Nohemy Guzmán Girón.

Ste hanie Tamara Rodrí uez Sandoval.



2Contenido

EXECUTIVE SUMMARY. ................................................................................................................................ 3

NATURE ............................................................................................................................................. 3

WHY WE CHOSE IT? .............................................................................................................................. 3 ORIGIN OF THE BUSINESS IDEA. ................................................................................................................ 3

WHY DO WE NEED ANOTHER ADVERTISING COMPANY? .................................................................................. 4

IDEALS OF OUR COMPANY. ...................................................................................................................... 4

OBJECTIVES OF OUR AGENCY. .................................................................................................................. 5

MISSION AND VISION OF OUR COMPANY. ................................................................................................... 6

AUDIENCE/ COSTUMERS/OUR MARKET...................................................................................................... 7

SERVICE DESCRIPTION. ................................................................................................................................ 8

DESCRIPTION OF SERVICE AND DISTINCTIVE VALUE. ........................................................................................ 8

POTENTIAL MARKET .................................................................................................................................. 10

WHICH WILL BE OUR MARKET? .............................................................................................................. 10

SIZE OF OUR MARKET........................................................................................................................... 10

LOCATION ........................................................................................................................................ 10

GROWTH BY YEAR ............................................................................................................................... 11

COMPETITION ............................................................................................................................................ 12

EXISTING COMPETITORS ....................................................................................................................... 12

STRATEGIES USED BY THE COMPETITORS (TARGET AUDIENCE, MARKET STRATEGIES) ............................................. 12

POTENTIAL REACTIONS OF COMPETITORS. ................................................................................................. 14

BUSINESS MODEL AND FINANCIAL PLAN. .................................................................................................. 15

RESULT ACCOUNT ............................................................................................................................... 15

CASH FLOW PROJECTIONS ..................................................................................................................... 17

GENERAL BALANCE ............................................................................................................................. 18

SPLASHS FINANCIAL VALUE ................................................................................................................... 20

HYPOTHESIS...................................................................................................................................... 20

MANAGEMENT TEAM ................................................................................................................................ 21

STRUCTURE OF THE MEMBERS OF THE COMPANY.............................................................................. 21

DESCRIPTION OF EACH DEPARTMENT ....................................................................................................... 22

SPLASH¶S TEAM MISSION ................................................................................................................ 23

SKILLS ........................................................................................................................................... 23

SERVICE DEVELOPMENT ............................................................................................................................ 24

PARTNERSHIPS .......................................................................................................................................... 25

MARKETING AND SALES STRATEGIES ......................................................................................................... 26

RISK (PREPARING FOR THE WORST) ........................................................................................................... 27



3Executive summary

Nature

We have created an advertising company that will offer different kinds of services, for

example: banners, newspaper etc.

Why we chose it?

The name:

Because is a word that means something ³fresh´, and also an explosion of creativity, it

identifies us as women that innovate the world through the image and creativity.

Why we decided to create this type of company?

Because nowadays publicity is really important, businesses are growing up and they need

someone who helps them become successful.

Origin of t he business idea

There are a lot of advertising companies in El Salvador because it¶s essential to promote a

product or a service and what better option than to leave this work to professionals who

distinguish the best words, messages, colors, images and music. Nowadays people are

creating more companies, and they need to be recognized in the business world. They

require excellent, persuasive and striking advertising, but among many options what is the

best one for them? This questions that we want to answer, saying:

Splash! Boom of creations«your best choice.

Splash! A new alternative in El Salvador to help companies raise their clients and become

the first option for everybody.We have the tools for managing an advertising agency and

we consider that create, administrate, and make strategies are three assets we have.



4 Why do we need anot her advertising company?

Because our company has all the qualities to achieve success and help enterprises gain

theirs.

We can demonstrate it with our work, because we have the best selection of creative, fresh

and dedicated minds in our team.

We promise that our advertising will be something different, original and professional.We

have new and improved ideas of advertising to your company.

We really know how to work as a strong team and give the best creations in several types of

market.

Ideals of our company

Splash¶s mission is to enable to little and medium size companies around our country more

easily enjoy the benefits of advertising for them.

We really care about our costumers benefits, that¶s why we have created good strategies for

their business advertising, specially because we need them as an emergin but strong

advertising agency, and also because we¶re an excellent option for them.

These ideals guide us in our effort to satisfy our customers, and encourage us to expand our

services.

Sharing our dedication to quality helps us to have a successful customer relationship,

financial partners and partnerships.

We think is our main mission to do our work the best we can, because our customers

deserve it, and also because we¶re growing at the same time as a great team does.



5

Objectives of our agency

General objective:

To be the best advertising agency in El Salvador surpassing the creative expectations in

order to help with our clients presence in the market.

Specific objectives:

y To be an advertising agency identified by our originality and to be always into the

vanguard of the advertising tendencies.

y To work hand by hand with small and medium size companies and grow up

together with them in order to be recognized in all the country.



6

ission and Vision of our company

Mission:

To give the best advertising services, making use of our resources and knowledge to

please our clients, thus achievement to grow up together in the business world.

Vision:

To be a recognized company for offering the best advertising services, and to be the

first options among the new, small and medium Salvadorians companies that wantrecognition in all the country.



7

Audience/ Costumers/Our market.

Our advertising services are for emerging business and already established small and

medium size companies, like stores and small agencies from El Salvador, that want to be

well known in the business world by working with professionals.

Our market has been divided in two pieces:

The first one:

In this part you can find small and emerging companies of our country, for example little

stores like UPS«, or little bakeries, that want assets like a banner to introduce what they

sale or the menu, also to promote their products or services by simple or fancy advertising,

because we work using the amount of money they gave us in a budget, we really take care

about it.

The second part:

In this part you can find medium size companies like Lee Shoes; in this case we offer

different types of services, for example TV advertising, new look for campaigns, and big

banners for publicity in the street.



8Service description

Description of service and distinctive value

We are characterized because we offer the best prices and best advertising services in El

Salvador.

We offer everything that a company needs to sell their products on the competitive market.

Poster««««««««««««.$15.-

Our posters are the size of 1 meter high by 60 wide, in which you can promote products

from one store to a full color film production.

Banner«««««««««««..$20.-

A banner is the size of 1 meter high by 2 wide, ours is a larger poster, where you can

promote your company name or your best bids.

Website or webpage««« $25.-

Our web pages are specifically designed to be a success on the web.

Generally designed with a logo and an attractive and innovative structure, using colors and

different and distinctive images that attract customers to your business.

Billboard ad«««««««««$35.-

Our Billboard ad is a large structure of outdoor advertising (a billing table 2.5 meters high

and 6 wide), we have created it especially for use in high traffic areas or busy streets where

the company is easy to see. Our billboards impact with their size and creativity to

customers that pass through the main highways or principal arterials (mostly to vehicular

traffic).



9Sk ywriting«««««««««....$40.-

The purpose of Skywriting in Splash! is to provide a unique, compelling and cost-effective

medium (called Sky Billboards) for outdoor communication to reach mass markets. The

power of this medium to promote attention and interaction is unique. No other mass marketmedium has the power to interrupt, engage and deliver a message as skywriting. There¶s

nothing quite like having your branding message in high letters in a clear sky directly over

a viewing audience of one to four million people!

All of this and more than you can imagine related with advertising we create it by an

incredible price!



1Potential market

Whichwill be our market?

Our market is identified by being already established and emerging companies that work in

the area of simple products and services because we¶re starting a new agency and we think

is the best size of market we can chose, because in this way we¶re going to please all the

requires that our clients expected we accomplish to be their best choice in advertising.

Size of our market

At this moment, Splash is a small agency that creates the advertising designs to small and

medium companies; that¶s good, but we hope to grow up each year, we hope to become a

popular agency, being recognized in the country because of our creativity, values and the

quality that characterize splash¶s work.

Also our objective in the market is to be a profitable agency where more and more

companies are interested in work with us, it means ³more money doing the work we really

love´.

Location

Splash is advertising company that offers the best service to its clients. It¶s located in San

Salvador, El Salvador near of a popular mall, Metrocentro.

We think this is a convenient place where the companies who need our service can find us

easily. This makes the prices accessible too.

As it was mentioned previously our agency gives the best advertising services to small and

medium companies that have the resources and the necessity to be well known in the

market. In this way, they can get the attention of their clients to buy their products or prefer

their services.



1

Growt h by year

We really want to our future clients be the most popular and successful companies in El

Salvador, we want to work for the ones that value our service; in that way, splash will grow

up as a successful company does, if at this moment it¶s a small agency, in a few years later

it will be bigger. Splash is in the project of growing up and giving more innovated services

each month with the resources it gets.

We expect to have new offers by year for example the first year; we¶re going to offer the

typical services for example: banners, TV and radio advertising, bags with the logo of the

company, etc. But in the second year and the ones that are coming we¶re going to have

different and original services like sky publicity, walls painting, book records or portfolios,

etc.

At the same time we hope to have a good carpet of clients in our data base, because in this

business is require to know your costumers and grow up at the same time.



1Competition

Existing competitors

The advertising world is a big industry, because it has amazing opportunities for people

who work in this area.

We are a new agency that want to work in the same world as others, that¶s why we

understand that in our country we have some competitors, some of them have many years

in the business and others are like us, they are:

Check it out.

Perros y Gatos

Gutierrez and Avilez studios.

Strategies used by t he competitors (target audience, market strategies)

Check it out:

It gives to its audience fresh works.

They are a creative studio; they¶re free to do a lot of things beside advertising.

They use charisma to call the attention of the costumers.

Perros y Gatos:

They have good works to show to their potential customers.

They¶re original in their strategies of marketing.

Gutierrez and Avilez studios:

They have a good marketing department; they work with already establishedcompanies.

They offer good prices to call the attention.

The clients only pay ¾ of the work in the first time in their services.

They have a book of records that has their works with important companies to show

to the clients.



1 Description of t heir strengt hs and weaknesses.

Check it out

Perros y Gatos

Strengths:

y Their team/people

y Looking for

partnership.

y Charismatic.

y Outgoing/sociable

/talkative.

y Power of conviction.

Weaknesses:

y They¶re beginners.

y Not original.

y Their name.

y They don¶t have a

book of records of

their works.

Strengths:

y Three years of

experience.

y They already have

clients.

y Outgoing and fresh

people.

y Good partnerships

y Interesting works.

Weaknesses:

y Their name.

y They aren¶t well

known.



14

Gutierrez and Avilez studio:

Potential reactions of competitors

Costumer retentions.

Improve the business.

Make new works.

Look for other strategies

Look for partnerships.

Strengths:

y Good marketingy Excellent prices

y Good record

y Original ideas

y Interesting works.

y Five years of

experiences.

Weaknesses:

y Not well known.

y They can¶t compete

with the biggest

company of

advertising in our

country.

y They don¶t have

enough people on

their team.



1Business model and financial plan

Result account

In this table we give you the result account of Splash!

First year

Incomes

Operating income

Sales

Expected sales $6,000

Financial income

Interest of the bank account $30.00

Investment partners $4,000

Extraordinary income

Total income $10,030

Expenses

Operating expenses

Shopping

Raw materials (ink, paper, etc.) $1,000

Services

Leases $500.00

Insurances $400.00

Internet $240.00



1

Hosting $100.00

Taxes

Taxes $300.00

Employee expenses

Wages $4,000

Social security $1,000

Training $200.00

Financial expenses

Loan interest $25.00

Extraordinary expenses

Total expenses $7,765

Results

Operating results (6,000-1,000) $5,000

Financial result (4,030-25) $4,005

Results from de ordinary activities (5,000+4,005) $9,005

Extraordinary result 0

Profit before taxes $9,005

Financial result (9,005-35%de 9,005) $5,853.25



1 Cash flow projections

Now in the next chart we show the cash flow projections.

October November

Cash inflows

Available cash 1,500 1,500

Value of cash sales 500 500

Value of proceeds of loans granted to partners,employees or individuals

100 100

Value of loans that are processed by banks 100 100

Value of loans received from partners 200 150

Occasional sales of fixed assets 0 0

Value of interest earned on loans to banks or individuals

15 15

Subtotal Cash receipts in the month 2,415 2,365

Total brute income in two month 4,780

Cash out

Payment of social security contributions 34 34

Payments of benefits (vacation, etc) 200 200

Payments to suppliers 300 300

Public services payments 200 200

Leases payments 200 200

Payment of financial obligations to banks and partners

20 20





1

Total current

active

6,350 Total current passive 3,100

FIXED ACTI

VE

PASS

IV

E TO

LO

NG

TIME

Machinery andequipment

2,000 Bank obligations

Accounts payable

1,000

700

Furniture 500 Other

Total passive to long

time

0

1,700

Total fixed

active

2,500 OTHER PASSIVE

Total other passive 0

OTHER

ACTIVE

Passive total 4,800

Prepaid expenses 1,000 Heritage 5,050

Other 0 Capital 6,000

Total Other

active

1,000 Retained utilities 1,000

Total Actives 9,850 Previous period utilities 2,000

Total Heritage 14,050

Total Passives andheritage

18,850



2 Splashs financial value

Splash is an emerging agency, that¶s why we have a little but sure budget in our hands, to

calculate the value in money of our company we organized the information in the following

chart.

First year

Assets Value in $$

Technological equipment: (printers, copy

machines, etc.)

$2000

Paint can reserve. $72

Location $300Insures $300

Taxes $300

Furniture $500

Employees payment $5200

Suppliers $1000

Total $9672

In the chart we can find the current value that splash! has by now, because is our first year,

and we¶re starting from zero.

Hypot hesis

This the first year of our agency and our initial budget is $9672, but if we add the profits of

two years we think our initial budget we¶ll be the double of the first year.



2Management team

y Stephanie Tamara Rodriguez Sandoval

y Katherine Fidelina Mendoza Laray Josselyn Fabiola Duarte Torres

y Alexandra Ayala Ramirez

y Roxana Nohemy Guzmán Girón

y Luisa Marcela Vasquez Melendez.

Structure of the members of the company.

Sales department

Account department

Designer

Copywriter

Creative department

Administrative

department



2 Description of each department

y Administrative department:

This department is controlling the process of our work and customers also it¶s the main

office working with the creative department so that we can offer the best service of advertising to our audience.

General manager: Roxana Nohemy Guzmán Girón

y Accountant ( a sub department of administrative department)

The accountant sees the financial management of the clients, of the worker and

supplies payment. The accountant directs each campaign, the agency¶s financial

politic, the accounting and the budgetary control.

Account department chief: Josselyn Fabiola Duarte Torres.

y Sales department:

It plans how to promote our services to our customers, also it plans how the

publicity is going to be; in which media and the specific areas in which it will

appear so that it can be seen, read, heard by the audience to whom it is being

addressed.

Sales department manager: Stephanie Tamara Rodriguez Sandoval

y Creative department:

This department is the core of an advertising company. Its main objective is to

create a message that gets what the advertiser wants to get to the addressed

audience. The mission of this department is to create the idea, to transmit the basic

message of the campaign, to express this idea in a way that is as persuasive as

possible in adapting to each environment, and design the material of presentation to

the client.

Main designer: Katherine Fidelina Mendoza Lara

y Copywriter:

Is the element that connects the advertiser with the audience through the world. It

must communicate in a clear, brief and brilliant way the ideas that the advertiser

wants to transmit.

Copywriter department manager: Alexandra Ayala Ramirez



2

y Designer:

The designers are encharged of giving ideas about how the agency can give the best

services to our clients through their original designs they create the best advertising

to get the attention of the companies who need our services.

Co-Designer: Luisa Marcela Vásquez Meléndez.

Splash¶s team mission

To work as a strong team for becoming the best professionals in the area, give the best

services to our clients and respect the different ideas that we have for doing an amazing,

original and great work to our costumers.

Sk ills

As a good team we want to show the skills we have, our team is trained to be the leader

so here is the list of our skills:

Imaginative.

Creative.

Outgoing.Serious when is necessary.

Honest people.

Competitive soul.

Good taste for colors.

Responsible.

Etc.

We want to improve our skills, so every day we practice the values we¶ve learned and team

work which is the most important key of success.



24Service development

At this moment we have already established our work in little stores, we have done

advertise for clients in Mercado San. Jacinto because we¶re starting to sell our services, wehave amazing strategies of marketing that will be described in the follow pages.

Here we have made some offers because we want to call the attention of our potential

already costumers.

Offers and Promotions!

-If you are our client for the first time and request a web page, we will create a poster for

your company completely free!

-For the payment of three months in Skywriting services, we give you the creation of a

banner for your business.

- For payment of services in two Billboards, we give you the creation of a website.

-If you are a frequent customer, we give you the card 30% off at any of our advertising

services.





2

Marketing and sales strategies

Location

First of all, the location of our agency is a key factor to attract clients because this makes

the prices of our services accessible.

Look for changes and growth

As we said before, innovation is an important factor to Splash because through it, our

agency can grow up each day and keep up its clients.

Through its new advertising designs Splash can make the difference in the creative market.

Be positive and do our work with passion and love

We¶re sure we will be a successful agency in the market, but as any other business in it,

we¶re also conscious that sometimes we will have problems and bad moments with thesales, even so our objective is clear, ³do our work with passion and love and be positive

although the sales aren¶t as good as we wish.

Innovation

Like all companies, we change our image, logo and slogan each year and use this strategy

because we know it's important to innovate and upgrade in the world of advertising.



2

Risk (Preparing for t he worst )

As every business we know that we may have problems during our business grows, that¶s

why we thought in different solutions that can help our company balance and not become

bankrupt.

Here we have the most common risks:

y Slower growth than the expected

y Higher costs than the expected

y Sudden arrival of a competitor

y Competitors

These are our contingency strategies:

y Alliance with one of the major global leaders

y Sale or exploitation of the technology used.

y Look the help of our partnerships.

y Total or partial sale of the company.

.

Documents

Business plan Splash A2