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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.
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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
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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.
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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.
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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.
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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.
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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.
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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).
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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!
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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
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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.
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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
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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
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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.
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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.
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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.
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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.
.