Business plan
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The first steps to opening an advertising agency are usually the most difficult. So many problems need to be solved! And, above all, choose the right company format that will suit both your desires and your capabilities. It’s good if you are familiar with the basic parameters of an advertising agency, you understand what company formats generally exist in the domestic market. And if not? Fortunately, this is not a reason to give up your goal; the main thing is to arm yourself with the necessary knowledge.
So, let's define the basics of an advertising agency. What do you need when starting a new company? First of all, you should determine the format of your company. This will allow you to calculate the approximate budget of the advertising agency and decide whether you can handle such a project financially. Many entrepreneurs prefer to start with a small company that primarily provides intermediary services. Small staff, modest orders and equally modest incomes. According to experts, such companies have virtually no chance of achieving success in this market segment.
Counting on high profits, it will take a lot to invest in the development of the company. When opening an LLC to provide advertising services, prepare in advance a package of documents for registering an advertising agency so that there are no problems with regulatory authorities. You can also save money on office rent, since negotiations with the majority of clients will be conducted on their territory. So huge areas and European-quality renovations are not at all what you need. But if you are going to produce an intellectual product yourself, you shouldn’t skimp on the technical equipment of your office. Designers will need powerful computers and quality software.
Creative personnel are the soil on which high-quality advertising services are nurtured. But good specialists need to be paid a good salary, otherwise they will go to your competitors. To work in many areas, today it has become convenient to hire freelancers who can bring new ideas. To open and organize the work of a new type of advertising agency, you will need a staff of 6-8 people, no less. And remember that mistakes in such a business are unacceptable. The slightest mistake can lead to clients avoiding your agency. Regardless of whether you are taking on a business such as advertising in transport or on advertising projections, everything must be performed at a high level.
A professional example of a business plan for opening an advertising agency from scratch with ready-made calculations will help a beginner and an experienced businessman to reduce risks to a minimum and overcome all difficulties without loss for themselves. It describes in detail the sequence of actions when creating this business. You will learn what responsibilities the director of an advertising agency may have, and you will understand how to calculate the payback of an advertising campaign and other events. Having chosen the right direction for yourself, you will constantly move forward towards your intended goal, and nothing will stop you from achieving it and staying on top of success.
How to turn from a small, unknown advertising agency into a monster of an advertising business earning tens of thousands of dollars every month? The best minds in the advertising business struggle with this question every year, but not everyone manages to find the exact answer. Opening a business like a modest advertising workshop is not so difficult, but growing it into a competitive company is much more difficult. Only an active advertising policy will lead you to the pinnacle of success; the main thing is to choose the right direction.
There is no point in opening an advertising agency if you do not have sufficient financial resources and connections in this business. Otherwise, you will always feel that you are constantly missing something - either money, or experienced specialists, or normal orders. As a result, such a deficit will result in banal bankruptcy, when you are left with nothing. By the way, you can open an advertising company from scratch, but you are unlikely to be able to sell an existing business.
So, what does it take to open a successful advertising agency, where to start? And, most importantly, in what direction should we develop? In order to open his own business - an advertising agency - from scratch, an entrepreneur needs experience. But even more, he needs experienced advertising business specialists - creative, out-of-the-box thinkers, capable of bringing success to your company in the shortest possible time. It is clear that such people do not lie around on the road and the employment center is also unlikely to help you find them. A person who knows how to establish contacts with advertisers and ask for discounts from companies that own advertising space is most likely already working at some advertising agency.
Therefore, when planning to open your own advertising agency, think about how to attract good advertisers to this business. To do this, you may have to resort to the most unimaginable tricks, and an increased salary in this case will be only one of the baits. And it’s not a fact that, having received a tempting business offer from your advertising agency, such a specialist will enthusiastically throw himself on your neck. Moving to a new, unknown company is a risky step, and in order to convince an experienced manager or designer to change jobs, you will have to try very hard.
Having mastered the features of promotion in a business such as an advertising agency, you can take the first step towards the development of the company. And, having decided, for example, to open your own workshop, an outdoor advertising company, you will already know in which direction to move so that success comes to you. But in order to achieve this, to keep luck in your hands, you need to be guided by a competent advertising agency business plan. In this document you will find a lot of important information, you will find out how profitable advertising can be and what difficulties an entrepreneur who decides to open his own business risks facing.
Outdoor advertising is one of the most effective ways to promote new products and services. It is not for nothing that almost all large firms and enterprises resort to it. Therefore, many entrepreneurs who are well versed in this market segment decide to open a business on outdoor advertising and billboards.
Business and advertising are absolutely inseparable things. And while new firms and companies are opening, the services of advertising agencies that are ready to actively help businessmen break into their niche will also be in demand. Despite the high level of competition that reigns among agencies providing advertising services, it is impossible to say that this business is absolutely hopeless.
Business related to outdoor advertising is classified as passive. You simply rent out billboards, just like you rent out any space - office or industrial premises. The costs of outdoor advertising are not comparable to the level of profit if you manage to establish work with clients. All this suggests that opening an advertising agency for the production of outdoor advertising promises very good income for its owner.
The billboard business is very similar to regular rentals. How to open such an agency? There are some features in this business, which are very important to take into account to achieve optimal results. There is no special equipment required to open an advertising agency. First of all, the entrepreneur needs to find a suitable place for advertising structures and constantly maintain their technical condition. Such structures are very susceptible to the influence of various climatic factors. Constant exposure to precipitation and wind can lead to structural damage, which should be noticed and repaired in a timely manner.
When planning to open an advertising company, carefully study the rules for installing billboards. Firstly, its maximum visual accessibility should be ensured, taking into account seasonal factors. For example, if in winter bare tree branches do not interfere much with the perception of the image, then in summer the situation will change for a much worse time. In addition, a business such as an advertising agency, even if it is a mini-company, implies a clear understanding of working with the target audience. It is better to advertise products for children in the immediate vicinity of kindergartens and educational institutions, and sports equipment - not far from sports schools, swimming pools, and stadiums. If you plan to build a business on real estate advertising, then billboards must be placed near new buildings under construction.
When planning to organize an advertising business, your own advertising agency, think in advance about your strategy for finding clients, since your profit directly depends on the number of orders. Develop sample agreements with the advertising agent and with the advertiser. If you want to start producing outdoor advertising not only on billboards, but also on houses, get acquainted with the current legislation, which prescribes the rules for placing advertising on residential buildings. As the experience of creating advertising not only in our country but also abroad shows, entrepreneurs who are guided by a clear plan of action achieve success. To do this, you should always have a professional advertising agency business plan at hand to help you choose the right direction.
FEDERAL EDUCATION AGENCY
KAMA STATE ENGINEERING AND ECONOMIC ACADEMY
Faculty of Economics
Department of Economics and Management
COURSE PROJECT
Completed by: student of group 5222-b
Karimullina D.R.
Checked:
Senior Lecturer
Lukyanova A.V.
Naberezhnye Chelny.
Title page of the business plan
Address Prospect Mira, 15/a
Telephone 34-15-42
Strictly confidential
Please return if you are not interested in the project
To whom Karimullina Dinara Ravilevna
Brief project name
Full project name Opening an advertising agency with the goal of making a profit, offering the advertising market new ideas and solutions for creating and promoting customer products.
Head of the enterprise Karimullina Dinara Ravilevna
Tel. 57-98-38
The project was prepared Karimullina Dinara Ravilevna
Tel. 57-98-38
Project start date January 2009
Project duration 3 years
The period of time from the date for which the source data is current, from the start date of the project 4 months
Date of preparation December 2008
Confidentiality Memorandum
This business plan is provided for consideration on a confidential basis to make a decision on joint cooperation, and cannot be used or copied for any other purposes, or transferred to third parties. By accepting this business plan for consideration, the recipient assumes responsibility and guarantees the return of this copy to the bearer if he does not intend to cooperate with the new enterprise. All data, enterprise estimates and conclusions provided for this project regarding its potential profitability, sales volumes and costs, as well as the information contained are obtained from reputable sources and calculated by a qualified project preparer.
Summary of the business plan
Credo - Positive LLC is being created as a creative advertising agency. Essence of the proposed project:
3. Creating your own production base and taking a leading position in the market.
The financial resources required to implement the project are 500,000 rubles. A loan is taken out from a bank at 20% per annum for 1.5 years. The payback period of the project, excluding the production base, is 1.5 years; we are already starting to receive profits in the 10th month of existence. Profit is set at 40%. Profitability by the second year of life will be 39.18%.
We use the latest website building technologies: Ruby on rails, jQuery, Mootools, Web 2.0, Ajax. All sites undergo compatibility tests: IE 6-8, Opera 9+, FF 2-3, Safari 3-4
Issues with full color (advertising boards) are solved using the latest equipment that uses piezoelectric technology (inkjet printing) and allows printing with a resolution of up to 400 Dpi. For full-color printing, solvent inks are used, providing durability for up to 3 years outdoors in any weather and temperature changes. The technology eliminates the need for additional lamination, as well as other types of image protection from UV rays. This printing technology is designed specifically for outdoor advertising: printing standard 3 x 6 m banners, stickers for vehicles, signs for buildings and structures, etc. For comfortable perception of printed products in an interior design, the distance to it must be at least 1 m (for glossy posters, there are other printing technologies). The printing width of the new machine is 1850 mm. The length can be practically unlimited, since the device allows you to print on roll materials - paper, film (including self-adhesive), PVC banner fabric and mesh. The thickness of the material is up to 1.5-2 mm.
So, searching for a compromise on large format printing can be considered pointless. When you order, you immediately receive: high quality, printing with a resolution of up to 400 Dpi on the widest printer in the city, ideal for outdoor advertising. Prompt order execution. The equipment is located in Naberezhnye Chelny, which allows us to reduce the order execution time to one day. The average printing speed is 1 banner per hour.
4. Description of the service
The ideal structure of an advertising agency covers all three levels of the advertising business: clienting – creative – media planning. So to speak, three sources and three components...
Our advertising agency is engaged in the careful development and implementation of an advertising campaign for any product, including consulting, marketing, branding, advertising and PR. We are interested in this modern business, which is at the intersection of science, commerce and art. We try to be high-class professionals in all types of marketing, advertising and PR activities, in the development and promotion of our clients' brands. Strict adherence to our basic principles of building relationships with clients will help us stay in the market, grow and develop: friendliness and attention to his wishes and needs; flexible financial policy; strict adherence to production deadlines; providing the opportunity to choose from several creative development options; maximum efficient use allocated budget.
Our business connections with representatives of the advertising market, the media and knowledge of the peculiarities of this market allow us to offer our clients special conditions and discounts, building optimal forms of interaction. When performing our work, we take into account the characteristics of the product and the wishes of the Customer, creating a special image of the product, and also take into account the opinions of the consumer (based on research Annex 1). Based on the findings, we prepare a mock-up of future advertising and provide it to the Customer for review (this includes the advertising campaign script, ad texts, the number of involved promoters, and a list of necessary advertising equipment). The scale of the advertising campaign is calculated depending on the Client’s budget planning. After the customer approves the sketches, our agency will produce the final raw materials. Throughout the entire work, we will consult with representatives of the Customer and conduct additional research if necessary. The main venues for advertising campaigns are restaurants, cafes, nightclubs, shops. To carry out the campaign, at the request of the Client, female models and young people from 18 to 28 years old, an artistic troupe, a dance troupe, and musicians can be involved. We have an extensive list of promoters needed to carry out an advertising campaign.
Our range of services includes: conducting research, developing campaign concepts and creative; development of media strategy and media planning; placement of advertising and information materials in the media (outdoor advertising, press, radio, television, Internet) - media relations; carrying out PR, advertising and promotion campaigns; production of advertising and information materials (printing, audio and video media, souvenirs, etc.), advertising cards for the Russian Sunbox chain, creation of Internet sites and media projects; website optimization and promotion; advertising on the Internet (photos of our services are presented in Appendix 2).
Merchandising is a set of activities carried out on the sales floor and aimed at promoting a product, brand, type or packaging.
Merchandising contributes to the effective presentation of the product at the point of sale (assortment, trade stock, visible number of copies of the product, awareness of sellers about your product).
The following activities are possible within the framework of merchandising:
Display of goods (in the sales area, on shelf space, placement of product groups)
Placement of POS materials
Tracking the availability of goods at a retail outlet, etc.
An audit of retail outlets (retailaudit) is a check of retail outlets for the presence of the required number of assortment, price positions of products, advertising POS materials corresponding to a given outlet, as well as for the presence of competitors.
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Tasting Consultation Gift with purchase Demonstration Announcement Sampling Survey, testing Raffle, lottery, TsVP Distributing leaflets |
Event marketing Presentations Store openings Work at exhibitions Concerts, parties, corporate receptions Sports events Test Drive City holidays. Carrying out spraying |
Trade marketing Incentive programs, loyalty programs for retailers, distributors and other intermediaries Mystery Shopper program (Mr. Shopper) |
Courier delivery of correspondence and business proposals in the Republic of Tatarstan |
Corporate identity development: Logo (trademark), business card, letterhead, price list, restyling (updating, reworking the existing style), 3d implementation of corporate identity
Video production: Video scripts, video postcards, 3D videos (3D animation), animation videos, game videos, combined videos (combining video with 3D animation, with hand-drawn graphics, + complex effects, representative videos of character, logo, environment...)
Graffiti painting
Printed products (printing): Business cards
pocket calendar 2 tbsp. (100*70mm), table calendar, 2 pcs. (house), desk calendar, wall calendar, quarterly poster, calendar, A 4, 1st. (21x30 cm), poster, calendar, A 3, 1st. (30x42 cm), poster, calendar, A 2, 1st. (42x59 cm), poster, calendar, A 1, 1st. (59x84 cm), poster, calendar, A 0, 1st. (84x119cm), leaflet (risography) A6 / A5 / A4 / A3, discount card, 2 pcs. (85x54mm), newspaper module (black and white / color), label, postcard (branded / personalized), CD cover (compact disc), packaging, A4 booklet, 2 pcs., two folds (creasing)
LED signs
Neon signs
Cityformat
Rent of 6x3 boards
Illuminated / non-illuminated volumetric letters
Pseudo-volume letters
Light box single sided/double sided
Panel-bracket (light / non-light)
Signs
Signpost one-sided / double-sided
Tablet sign one-sided / two-sided
Application
Lamination
Information stand
Full color printing on banners, solid sheet materials
Placing advertising media inside the TT allows for a targeted impact on various target audiences, both mass and narrow (hard-to-reach). Location: train stations, pharmacies, food and non-food stores, universities, cinemas, night clubs, entertainment centers, restaurants, bars, cafes, beauty salons, sports complexes, fitness clubs, etc. Design of smoking areas. The work uses red PVC plastic with branding, laminated plywood, and Oracal film. A trash can, an information board, a sign, and ashtrays are installed at each place.
POS materials
Wobblers (a flat advertising product on a leg. Only the wobbler leg is glued to the shelf. The design feature of the leg allows you to place wobblers on surfaces of different sizes and structures. The advantage of a wobbler is that it saves space when placing it.)
Dispensers are a type of POS materials intended for placing advertising information (leaflets, booklets, etc.). Placed on horizontal surfaces, where they can be easily reached by hand. Structurally, the dispenser is a poster with a pocket for laying out materials on the front side and a leg providing stability on the back.
Mobiles (consists of a flat or three-dimensional advertising image suspended from the ceiling. Its main advantage is that the mobile does not occupy retail space and is visible from a great distance.)
Coin holders (a POS material that is incomparable in terms of the attention it receives: not a single buyer of a retail outlet will pass by this small “plate”. The effect of this material is incredibly great!)
Dummies (an exact copy of the product packaging or the product itself). Available in the same size, larger or smaller. Placed on shelves, floor or display cases.
Racks (in the standard version they are used for displaying large quantity goods). Modern stands combine storage and advertising functions. A beautifully designed trade advertising stand attracts the buyer's attention to the product that is laid out on the shelves.
Tabletop displays, stands (they perform a presentational role - samples of goods are laid out on them, to which the visitor’s eye will cling. This is convenient when the product is one-piece or exclusive, and to purchase it you need to contact the seller. The role of the display is to encourage the buyer to do this.)
Flags (inexpensive and effective remedy. Its peculiarity lies in the possibility of installation on literally any surface: ceiling, walls, any horizontal surface.)
Hard posters, life-size figures (portable posters glued to a rigid base with a leg. Hard posters the height of a person, which are shaped like a human silhouette. Posters are used to display advertising images on shelves, counters, on the floor, in promotions and other places.)
Shelf talkers, shelf stoppers (is an advertising element designed to visually unite and highlight on common shelf products of one brand. Placed on shelves at points of sale, shelf talkers highlight the position of a product and attract additional customer attention to it.)
Other: Photo recovery, electronic photo albums, electronic cards (web), photomontage of any complexity
3 d Design: Interior (3d design), entrance group (3d design)
Advertising is a channel for the dissemination of information on the market, as well as a prerequisite for feedback from it. That is why, taking into account the fact that advertising is an integral part of the marketing system, there is a need to consider its functions, the mechanism of interaction with other elements of the system, and determine the place of advertising in their hierarchy, which means finding ways to optimally manage advertising activities.
By creating demand and stimulating sales, forcing consumers to buy goods and accelerating the process of “purchase and sale”, and hence the turnover of capital, advertising performs in the market economic function. In addition, she also carries out informational function. In this role, advertising provides consumers with a targeted flow of information about the manufacturer and its products, in particular, their consumer value.
At the same time, it is obvious that, being part of the marketing system, advertising steps over the narrow boundaries of the information function and takes on another function communication. With the help of questionnaires, surveys, collecting opinions, and analyzing the process of selling goods used in the process of studying advertising activities, feedback is maintained with the market and the consumer. This allows you to control the promotion of products to the market, create and consolidate among consumers a stable system of preferences for them, and, if necessary, quickly adjust the process of sales and advertising activities. Thus, they are realized controlling And corrective advertising functions.
We will focus on creativity. In our progressive times, ordinary advertising is no longer interesting, consumers take it for granted, they simply don’t pay attention to it, we don’t just want to make money from our clients. And give them the same opportunity. Our standard orders will be the development of a corporate identity, the production of presentation materials and souvenirs, as well as the creation of websites. But we will not perform even these standard services in a standard manner. It is creative ideas that will make any advertisement stylish and bright that are the main wealth and main weapon of any self-respecting advertising agency.
For example, chocolate bars with corporate symbols, or the use of ambient advertising. The term "ambient media" appeared in the UK in the mid-90s. last century. He was not associated with any fundamentally new media. It has come to mean advertising that reaches consumers in the most unexpected places (ambient in English means “surrounding”). Today, ambient advertising is one of the fastest growing segments of the advertising market in European countries. The reason for the emergence of the ambient movement is a change in the view of advertising in general. Traditional advertising has become so familiar that people no longer pay attention to it.
Placing direct advertising in books is one of the best ways to reach your target audience. While getting acquainted with the book, the reader will simultaneously become familiar with advertising of goods and services, presented in the form of modules on separate pages. And if you take into account the ability of a reader interested in these goods and services to make purchasing decisions, advertising in a book can be very effective. All that remains is to place it correctly.
So we will not only make advertising in an original way, but also place it in an original way.
Currently, many entrepreneurs who want to connect their business with advertising activities have a question about the need for licensing. In accordance with Article 17 of the Federal Law of September 25, 1998 N 158-FZ “On licensing of certain types of activities” (containing an exhaustive list of types of activities requiring licensing), advertising activities are not subject to licensing. Article 19 of the above-mentioned Law states that the obligation to license other types of activities may be established by other federal laws that entered into force before September 25, 1998. Law No. 108-FZ, which was adopted earlier than this date, also does not contain a requirement to license advertising activities. But the Law “On Advertising” reveals the content of the concepts “advertising producer” and “advertising distributor”, the activities of which are classified as advertising. From the content of these concepts it is clear that almost all types of activities that an advertising producer and advertising distributor can engage in for the purpose of distributing advertising in any form are subject to licensing in accordance with Article 17 of Law N 158-FZ. This can be: television broadcasting, radio broadcasting, broadcasting of additional information, publishing and printing activities, distribution (except for retail trade) and reproduction of audiovisual works and phonograms on any type of media. At the same time, obtaining a license to carry out advertising activities as such is not necessary.
After Federal Law No. 128-FZ of August 8, 2001 comes into force, the list of licensed activities will be significantly reduced.
5. Market assessment
In order for the demand for advertising services to be good, among other things, they must meet certain requirements: completeness, complexity, the cost of the service must be justified, efficiency and speed of execution of services, the quality of the service must be high, accessible to the maximum possible number of target consumers.
Medium and small businesses cannot afford an advertising campaign from large advertising network structures. $300 thousand is the minimum amount for which Muscovites agree to plan an advertising campaign. In Tatarstan, the average advertising budget that a small enterprise can afford is 200 thousand rubles. At the same time, the annual turnover of large Tatarstan advertising agencies is 10-15 million rubles." According to forecasts of the Association of Communication Agencies of Russia (ACAR), in 2004 the total volume of the Internet advertising and cinema markets will grow from $18-20 million to $25 million. According to specialists, investing in online advertising is now becoming more and more attractive for advertisers. One of the reasons for the growth Russian market Internet advertising, according to researchers, is that most of the target audience spends significant time on the Internet, and not on a competing TV - after all, you can watch the same programs on the Internet. According to AKAR, the television advertising sector grew by 36% - its volume in the 1st half of the year reached $720-730 million. The share of advertising in the press accounted for $420-440 million (growth compared to the same period in 2003 reached 28%) - Newspapers (including advertising publications) brought in $170–180 million, which is 26% more than last year; $250–260 million came from magazines (an increase of 30%).
In Chelny, according to the catalog of enterprises on one of the Chelny information sites, it was revealed that in the city, 2000 of them are subject to our consideration. Since here we also took into account state-owned enterprises and enterprises that do not require advertising, and which do not fall under the scope of our interests for one reason or another.
According to the city statistics committee, the population as of September 1, 2008. equal to approximately 507 thousand people. Of these, who could use our services, for example, souvenirs, are 50 thousand people who will use our service at least once (for example, order a mug with congratulations). Plus, every potential client will also use our photo services at least once. There are also approximately 2,000 small, medium and large enterprises in the city. Considering the saturation of the market, the approximate amount of costs for our services, the market capacity will be:
50,000 people*(1-0.75)=12,500 people.
2000 enterprises*0.25=500 enterprises
E(person)=12,500*0.005*5000=312,500 rubles
E (enterprises) = 500 * 0.2 * 50000 = 5 million rubles
E (total) = 312,500 + 5,000,000 = 5,312,500 rubles,
Where 0.005 and 0.2 percent are spent on this service, and, respectively, 5,000 and 50,000 are the average monthly income of the population and the profit of firms.
Taking these factors into account, we currently occupy a very small share of the entire Chelny advertising market, but our plans are to develop a larger part of the market and develop throughout Tatarstan.
We are ready to provide all our customers with powerful, well-thought-out and unique advertising, including a wide range of channels and methods of influence. Although at this stage of our activities we are positioned on the market as a small company, we can provide a wide range of services and new well-developed advertising techniques. For example, advertising in unexpected places, on the Internet, or professionally launching a new product or service into the market. The growing trend in demand for advertising services is constantly growing, since the market is already saturated with old methods of promoting goods and more originality and new approaches are required from advertising, in this regard the market is now developing. The most popular advertising services remain a full advertising campaign and new types of advertising, in unexpected places, online advertising, outdoor advertising are growing, souvenir products are also in good demand, and products that help create your name: corporate materials, a trademark, etc.
Our products are used by both companies and ordinary people. The population mainly consumes souvenirs; out of desire to stand out from the crowd (a T-shirt with a photo or interesting picture), make an original gift (mug with a picture, congratulations, “chameleon”). If we evaluate ordinary buyers, then these are mostly young people (both men and women) from 15 to 25 years old, as well as women under 35 years old with an idea original gift. This segment accounts for 15% of the total number of our clients. Our customers are imaginative and original people, their incomes range from less than one or from one to five subsistence minimums. The main part of clients are various enterprises, i.e. their share is 75%. As a rule, start-up advertising companies are mainly approached by representatives of small and medium-sized businesses, so all efforts will be aimed at promoting their advertising products and opportunities designed specifically for this market segment. Of these, enterprises related to social sphere 16.15%; with trade 21.74%; with finances 11.2%; with entertainment 19.04%; with communications and media 3.09%; with technology 11.02%; with construction and real estate 17.14%.
Our customers are interested in the service and have a positive attitude towards it. The reason for turning to us for services is the desired benefit, making a profit from the effective promotion of your product, as well as satisfying the need for originality.
| Who uses advertising | To reach which audiences? | By what means of advertising | For what main purpose? |
| Producers (individually or collectively; national or regional) of consumer goods and/or services | Individual consumers | Radio, television, magazines, newspapers, billboards, direct mail advertising, advertising on transport, etc. | Stimulating demand for a product, a specific brand of product or service |
| Producers (individually or collectively; national or regional) of consumer goods and/or services for resale | Retailers and wholesalers | Trade magazines and newsletters, direct mail advertising | Encouraging retailers and wholesalers to stock and/or promote a product or service to their customers |
| Producers (individually or collectively; national or regional) of goods and/or services for the general consumer and/or specialists | Individual consumers, government, public institutions and groups, the company's own workers and employees | Consumer and specialty print and broadcast media | Stimulating favorable attitudes and possible action on the part of key public relations audiences |
| Producers (individually or collectively; national or regional) of goods and/or services for professionals | Other manufacturers, retailers and wholesalers, government, public institutions and groups | Business magazines and newsletters, direct mail advertising and some general consumer advertising | Stimulating demand for a specific product and/or service for direct use by specialists and/or recommendation to others |
| Producers (individually or collectively; national or regional) of goods and/or services for the general consumer and/or specialists for international distribution | Individual consumers, retailers, other business enterprises, government agencies, public institutions and groups | Advertising media in foreign countries, designed for the general consumer and specialists | Incentivize specific purchases, influence key audiences, drive retail adoption |
| Retailers (singly or collectively) of goods and/or services | Individual consumers | Local newspapers, radio, television, magazines, billboards, transit advertising and direct mail advertising | Promoting favor for a particular store, service or group of retailers |
| Private individuals | Other private individuals | Mainly local newspapers (classified advertising) and posters, as well as cable television | Incentivizing the purchase of a specific product(s) and/or service(s) |
| Government, public institutions and groups | Individual consumers, government organizations, groups, societies and associations | Advertising media designed for general consumers and specialists | Stimulating belief in specific activities, attempts to change behavior in the direction desirable for society, achieving political as well as “commercial” goals |
The most developed areas of service provision in Chelny are (shown in diagram 1). And based on this, we can assume what is most in demand at the moment.
1) Agency independence. It works for several clients and has a certain responsibility to each one. In an effort to provide each advertiser with the highest quality services, the agency does not report to any of them. An independent agency has the opportunity to look at the client’s problems from the outside and give them an objective assessment. The agency rather follows its own principles of creation effective advertising than being willing to submit to the whims of the top management of the advertiser’s organization.
2) Extensive knowledge and experience that agency employees accumulate in the process of working on various orders. Knowledge gained in one industry is often useful to advertisers in other industries.
4) Any savings that a client can receive by having his own (in-house) advertising agency, as a rule, turns out to be less than the total cost of high-quality service, which he deprives himself of by refusing to cooperate with an independent agency.
2) Branding, positioning 26%
1. desire to stand out
2. make an original gift
3. cheer up
4. saving time on searching for a gift
5. assortment, i.e. ability to choose
6. positioning yourself in the market
7. stimulate demand
8. increase sales, profits
9. presentation of a new product, service
10.desire to stand out
11.creation of corporate spirit
12.complexity
13.analysis
14.attracting clients
15. making a name for yourself
16.desire to purchase various booklets and signs
We build a market grid:
When contacting us, our consumers want:
1) stimulate demand
2) increase sales and profits; wish to purchase various booklets, signs; make a name for yourself
3) position yourself in the market; attract clients
4) want to stand out; save time searching for a gift; see the assortment; conduct a presentation of a new product or service; carrying out analysis
6. Competition in sales markets
The advertising market appeared quite a long time ago, but its development occurred quite recently, literally in the last 8-10 years. And this market is growing and changing quite quickly: outdoor advertising has doubled over the past 4 years, online advertising has received its wide and rapid development. So the market is very dynamically developing, growing rapidly and with effective methodology tracking trends is very profitable.
There are about 90 companies in our city that position themselves as somehow related to advertising activities. Moreover, this number also includes companies engaged in advertising as a related service, or providing marketing services for market analysis, i.e. helping to carry out effective advertising.
Diagram 2 - Number of enterprises by specialization
Diagram 3 - Time of existence of enterprises on the market
Our main competitors, I only consider them, because they have already existed on the market for quite a long time and have studied it well, they have extensive experience in advertising, and also my RA will conquer the market at their level. Their prices are approximately the same and slightly higher than our prices, the range is also approximately the same, only a few specialize in something specific. Customer reviews of our competitors are quite good. However, some talk about the sameness of services and the desire to receive similar services at lower prices. Our advantage over them is lower prices, new types of advertising, and in order to conquer a larger part of the market, we will eventually open our own production base and with full pride will be called a full-service agency.
Table - 4.Assessment of competitors
| Advertising agency | Activity | Term of the work | Market coverage |
| ARO | advertising service | 6 years | in Tatarstan |
| Vitali | Design Studio | 6 years | electronic design |
| Hot key | full cycle | 6 years | a very large company with its own base |
| Zodiac | souvenir | 6 years | award products, seals, stamps |
| Indigo | corporate event | 6 years | printing |
| Mizar | outdoor | 6 years | Tatarstan |
| Advertising center | outdoor | 6 years | kr.pred-e in the region |
| Seven | creative Group | 6 years | outdoor advertising |
| TrenT | agency | 6 years | TV |
| Owl | advertising techniques bureau | 6 years | marketing |
| Flyleaf | full cycle | 6 years | marketing, outdoor advertising, printing |
| Shamsulla | advertising and souvenir studio | 6 years | household appliances, fabrics |
7. Marketing plan
The purpose of our company:
5. Take a leading position within five years of work
6. In a year and a half, return your investment, as well as provide a 35% profit on invested capital
7. Rebuild your own building by the fourth year of life and create your own production base.
Stages of entering the market:
1. Interesting, eye-catching and intriguing advertising in the first three months of the company’s existence. The more original the advertisement, the more potential clients will learn about it, and the more potential clients will come to us. After all, in the advertising business you need to present yourself in a more interesting way; if clients see original advertising, they will understand about our company that we can do something just as original for them. At this point, 15% of potential clients may contact us.
2. Over the course of six months, we will develop our client base through experienced personnel, as well as connections of our employees. We will also run advertisements with a list of our services. Already 15% of clients will recommend us to their friends, 5%, and through incentives we will attract another 10%.
3. Dal is already at the stage of retaining its clients, since the name has already been developed, as well as attracting new ones.
| Month | Revenue (t.r.) | Expenses | S/S | Profit | Taxes | Etc. taxes | h. Approx. | Prize |
| January | 150,00 | 136,97 | 60,00 | -46,97 | 0,00 | 12,81 | -59,78 | 0,00 |
| February | 165,00 | 136,97 | 66,00 | -37,97 | 0,00 | 12,81 | -50,78 | 0,00 |
| March | 166,65 | 136,97 | 66,66 | -36,98 | 0,00 | 12,81 | -49,79 | 0,00 |
| April | 168,32 | 136,97 | 67,33 | -35,98 | 0,00 | 12,81 | -48,79 | 0,00 |
| May | 170,00 | 136,97 | 68,00 | -34,97 | 0,00 | 12,81 | -47,78 | 0,00 |
| June | 187,00 | 136,97 | 74,80 | -24,77 | 0,00 | 12,81 | -37,58 | 0,00 |
| July | 205,70 | 136,97 | 82,28 | -13,55 | 0,00 | 12,81 | -26,36 | 0,00 |
| August | 226,27 | 136,97 | 90,51 | -1,21 | 0,00 | 12,81 | -14,02 | 0,00 |
| September | 248,90 | 136,97 | 99,56 | 12,37 | 2,97 | 12,81 | -3,41 | 0,00 |
| October | 273,79 | 136,97 | 109,51 | 27,30 | 6,55 | 12,81 | 7,94 | 0,79 |
| november | 301,16 | 136,97 | 120,47 | 43,73 | 10,49 | 12,81 | 20,43 | 2,04 |
| December | 331,28 | 136,97 | 132,51 | 61,80 | 14,83 | 12,81 | 34,16 | 3,42 |
| January | 364,41 | 136,97 | 145,76 | 81,67 | 19,60 | 12,81 | 49,27 | 4,93 |
| February | 400,85 | 136,97 | 160,34 | 103,54 | 24,85 | 12,81 | 65,88 | 6,59 |
| March | 440,94 | 136,97 | 176,37 | 127,59 | 30,62 | 12,81 | 84,16 | 8,42 |
| April | 485,03 | 136,97 | 194,01 | 154,05 | 36,97 | 12,81 | 104,27 | 10,43 |
| May | 533,53 | 136,97 | 213,41 | 183,15 | 43,96 | 12,81 | 126,39 | 12,64 |
| June | 586,88 | 136,97 | 234,75 | 215,16 | 51,64 | 12,81 | 150,72 | 15,07 |
| July | 645,57 | 136,97 | 258,23 | 250,37 | 60,09 | 12,81 | 177,48 | 17,75 |
| August | 710,13 | 136,97 | 284,05 | 289,11 | 69,39 | 12,81 | 206,92 | 20,69 |
| September | 781,14 | 136,97 | 312,46 | 331,71 | 79,61 | 12,81 | 239,30 | 23,93 |
| October | 859,26 | 136,97 | 343,70 | 378,58 | 90,86 | 12,81 | 274,92 | 27,49 |
| november | 945,18 | 136,97 | 378,07 | 430,14 | 103,23 | 12,81 | 314,10 | 31,41 |
| December | 1039,70 | 136,97 | 415,88 | 486,85 | 116,84 | 12,81 | 357,20 | 35,72 |
To choose the right marketing strategy, it is necessary to determine what type of market the selected product belongs to.
Buyers of these services can be classified as a producer market, since consumers do not use advertising as a final service, but through it they make a profit and increase sales of their service or product. There are quite a few competitors in this market providing similar services. The structure of this market is more or less established, since there are already established agencies that own a larger share of the market; prices are the same, more or less established, since all prices between competitors are already equal to each other and even if they differ from each other, then only slightly.
An agency can use three marketing strategies: undifferentiated, differentiated and concentrated marketing. When choosing a marketing strategy, you should consider the following factors:
Firm resources. When resources are limited, the concentrated marketing strategy turns out to be the most rational.
Degree of product homogeneity. The undifferentiated marketing strategy is suitable for uniform products such as steel, wheat. For products that may differ in design, such as bicycles and cars, differentiated or concentrated marketing strategies are more appropriate.
Stage life cycle goods. When entering the market with a new product, it is advisable to offer only one version of the new product. In this case, it is most reasonable to use undifferentiated marketing strategies.
Degree of market homogeneity. If customers have the same tastes, purchase the same quantities of goods at the same time intervals, and respond in the same way to the same marketing stimuli, it is appropriate to use an undifferentiated marketing strategy.
Marketing strategies of competitors. If competitors are engaged in market segmentation, an undifferentiated marketing strategy can be disastrous. Conversely, if competitors use undifferentiated marketing, benefits can be gained from using differentiated or concentrated marketing strategies.
After analyzing all the facts that influence the marketing strategy, our agency will adhere to a concentrated marketing strategy.
Pricing:
The price of a product is determined in the following sequence:
Setting pricing objectives;
Estimated costs:
Analysis of prices and products of competitors;
Choosing a pricing method;
Setting the final price.
Staging pricing tasks:
Before you begin calculating the price of a product, it is necessary to determine what goals the company seeks to achieve with the help of this product. Examples of goals often encountered in practice can be: ensuring survival, maximizing current profits, gaining leadership in terms of market share, gaining leadership in terms of product quality.
Ensuring survival becomes the main goal of the company in cases where there are too many manufacturers in the market and there is intense competition or customer needs change dramatically. To ensure the operation of enterprises and the sale of their goods, firms are forced to set low prices in the hope of a favorable response from consumers. Survival is more important than profit.
Many firms strive to maximize current profits. They make an assessment of demand and costs: in relation to different levels prices and choose a price that will ensure maximum current profit.
Other firms want to be leaders in terms of market share. They believe that the company with the largest market share will have the lowest costs and the highest long-term profits. Achieving leadership, they go to the maximum possible price reduction.
A company can set itself the goal of ensuring that its product is of the highest quality of all those offered on the market. This usually requires setting a high price for it in order to cover the costs of achieving high quality and carrying out expensive R&D.
After analyzing the prices of competitors, our goals, capabilities, we set prices using the method of focusing on competitors, and this price nB some of our services differ from competitors, but at the same time covers our costs (price list in APPENDIX 3)
In world practice, prices for advertising agency services are established - this is 15% of the Customer’s total advertising budget. We believe it is correct to adhere to this concept of evaluating our services. Regular customers and customers with a large advertising budget will be given a 3% discount.
| Criterion | Credo - Positive | Main competitors | ||
| Hot key | Trent | Hooligan | ||
| Quality | High performance | High performance | High performance of work is not always | Pure default |
| Individual approach | Creative, non-standard approach | Carrying out work with a certain amount of creativity | Performance of work is standard | Using incorrect advertising methods |
| Price level | Above average | High | Above average | Above average |
| Location | In the city center, there are many different studios nearby | The location is inconvenient | In the city center | Downtown |
| Exclusiveness of the service | New service | New service | New service | New service |
| Company reputation | New advertising agency | Reliable reputation | Reliable reputation | Dubious reputation |
Choice of means of circulation.
The process of choosing means of exchange consists of the following stages:
Deciding on the breadth of coverage, frequency of occurrence and impact of advertising;
Selection of the main types of information dissemination media: television, radio, print media, direct mail advertising, billboards, advertising tablets in public transport, advertising design of premises;
Making decisions about the schedule for using advertising media.
Table – 8. Calculation of the cost of one advertising contact per month
With this structure, to attract an additional thousand buyers, you will need 0.52 × 1000 = 520 rubles.
Table – 9. Advertising campaign schedule
Table – 10. Cost estimate for an advertising campaign per year
8. Production plan
Functions of an advertising agency.
3.mediation between the advertiser and the media (purchase of advertising space); advertiser and companies specializing in marketing (market research, motivations); advertiser and owners of printing houses where brochures, catalogs, product operating instructions, posters, etc. are published.
1. Conduct consumer research to identify strengths and weak sides goods for home use.
2. Conduct market research to identify the circle of optimal potential consumers.
3. Develop a marketing strategy and budget.
4. Will assist in finding a product and creating its packaging.
5. Develop a creative concept and conduct preliminary tests.
6. Develop a plan for the use of advertising media that ensures the most effective coverage of target markets.
7. Develop a plan for presenting the product to the trade sector.
8. Develop forms for reflecting creative ideas in materials used in the field of sales promotion and when organizing advertising at points of sale.
9. Develop a plan of promotional activities to capitalize on the novelty of the product.
10. Develop a plan to stimulate interest among sales employees.
The agency performs similar functions when developing a plan for an already established brand, regardless of whether there is a need for a new strategy or not. The planning cycle for each brand is typically one year. While offering the same services, many agencies differ significantly in the style of their work.
Based on the data obtained, we are developing a preliminary script for the advertising campaign.
This includes:
location - club, restaurant, store, school - the choice depends on the advertised product and the target group;
promoters who help promote a product. Their task is to make every effort to attract attention to the product.
These can be smiling female models, gallant young men, professional dancers, artists, musicians.
As a rule, we offer our clients to use one of the advertising methods - souvenirs with the logo of the advertised product. People who come to the presentation like to receive small gifts. The sketch of the action being developed includes the necessary props. All creative activities of the agency predetermine that the created advertising company must be recorded in the minds of the target group. The effectiveness of advertising depends on this. Therefore, we try to ensure that each promotion is a unique show related to the advertised product.
The sketch is presented to the Customer for consideration and after its approval or disapproval, our agency makes adjustments as necessary and prepares basic materials. After this, the manager responsible for the project determines the costs associated with running the project and presents it to the client for signature. This also includes 20% VAT and 15% agency fees. All further actions - ordering souvenirs and props from production advertising agencies, conducting training with staff, agreements with the administration of the venue - are coordinated by the manager under the leadership of the executive director until the holding of the promotions. Since we are a full-cycle printing house, but without our own production base, we plan to resort to these executors of our requests: Printing house Decor LLC, Promkomzona
How will it be carried out? different kinds of our services, as well as the technologies used in the provision of services in Appendix 5.
Table – 11. Employees, salary, vacation time.
| Full name | Job title | Salary | Deductions | Vacation | Temporary substitute |
Karimullina Ravilevna |
Gene. director | 25 000 | 3250 | May | Creative director |
| Latipova Elvira | Creative director | 20 000 | 2600 | March | Gene. director |
Nizhegorodtseva Catherine |
Designer | 10 000 | 1300 | April | Design Assistant |
| Pichugina Daria | Design Assistant | 8 000 | 1040 | June | Designer |
| Kovalskaya Daria | Advertising Manager | 8 000 | 1040 | July | Creative director |
| Kuznetsova Regina | Advertising agent | 3 000 | 390 | August | Freelancer |
| Fazylzyanova Regina | Freelancer | 2 500 | 325 | September | Advertising agent |
| Gainullina Ramzia | Marketing Manager | 9 000 | 1170 | november | Gene. director |
| Nikonova Marina | Media Relations Manager | 8 000 | 1040 | February | Advertising Manager |
| Krasnova Elena | Psychologist | 5 000 | 650 | December | Media Relations Manager |
| Total | 10 people | 98 500 | 12805 |
Calculation of the amount of funds to open RA :
1) Registration of the RA - 10,000 rubles, this includes drawing up a package of documents, registration and delivery to the tax office, opening a bank account, making a seal, state duty, registration of a legal address.
2) Rent of premises 15,000 rubles
3) Authorized capital 20,000 rubles
4) Office equipment and office furniture, this includes 6 computers for 20,000 rubles, 2 printers for 15,000 rubles, a scanner for 20,000 rubles, a computer for a designer 70,000 rubles, 2 telephone numbers for 10,000 rubles, organization of 6 jobs for 15,000 rubles
5) Payment for outsourced accounting department 5,000 rubles
6) Salaries of employees: General director 25,000, creative director 20,000, designers 18,000, managers 25,000, psychologist 5,000; the rest of the workers are freelance
7) Depreciation of 340,000 for five years was calculated linear method and per month will be 5667 rubles.
8) Deductions from wages 98,500 rubles salary, 12,805 rubles deductions
Total cost for opening and month of existence is 506,972 rubles
Fixed expenses: rent, employee salaries, accounting, deductions and without income tax and loan payments amount to 136,972 rubles.
Salary calculation method: salary plus bonus depending on the work of the agency, the bonus is calculated as a percentage in proportion to the salary (time-based - bonus). Advertising agents and freelancers' salaries are calculated on a piece-rate basis.
9. Organizational plan
As legal status We chose a limited liability company. This form is easy to implement and convenient for us in its structure. A limited liability company has an authorized capital of 10 thousand rubles. It is formed as a result of the investment of money (in thousands of rubles) by the general director and director. In case of bankruptcy, as well as under concluded agreements, each founder is responsible in the amount of his contribution.
According to the form of ownership, our limited liability company has a private form. The owners are the general manager and director.
The activity of the RA is a creative activity, therefore its success, first of all, depends on the qualifications, imagination, and skill of its employees. That is why the quality of designers and advertising sales managers becomes decisive when creating an advertising agency. For us, as a young advertising agency, it seems reasonable to have the following key specialists on our staff. Firstly, designers are needed, one directly responsible for creating an advertising product, the other involved in layout and other routine work. Secondly, we need an “idea generator” that develops concepts for creative products. We also need a couple of managers who will sell advertising, manage existing clients and look for new ones. The general management of the agency will be carried out by the director. It makes sense to outsource accounting to a specialized company; it will be cheaper and more reliable.
Since people are the main capital in the Republic of Armenia, the selection of personnel must be treated with the utmost care. Preferably. So that employees have work experience, or at least are truly talented, sociable and know how to sell. Since we plan to provide a full range of services, it will be useful to assign a separate specialist to each front, as well as establish relationships with several freelancers to carry out unique orders.
* Materials Publishing Department for sales promotion, point-of-sale advertising, brochures, prospectuses, advertising catalogs, product operating instructions.
* Documentation department- due to the importance of complying with contractual estimates, which is becoming increasingly complex economic life Additional services provided to clients are becoming more numerous and varied.
* Research department- in order to better understand the mechanism of advertising and its impact (filling out advertising messages, receptivity to the arguments presented in them, etc.), large advertising agencies organize this department, the activities of which in some cases go far beyond the scope of research into problems directly related with advertising.
And finally, the last service that becomes necessary in agencies with a budget that has crossed a certain threshold is “scheduling”, or “threads”. Here, numerous tasks of various services and departments involved in the development and implementation of an advertising campaign are prepared, put into circulation and coordinated.
Our staff will visit:
1. “Grand Star” competition in Russia (media relations manager)
2. Conference "Newspaper Design", Moscow (designer)
3. Graphic design competition “Grandiose!”, Ryazan (designer, creative director)
I chose this organizational structure (linear-functional) for a number of reasons:
1. expands the ability to make competent decisions
2. reduces the time for solving current production issues by spending 10 minutes every day before the start of the working day.
3. Issues related to the difficulty of regulation and functional and linear structure do not arise in this case. Since gen. Three structures are subordinate to the director, two of which are linear, and one is functional. Moreover, the functional ones are more likely to be freelance employees at the time of the formation of the RA, so problems will not arise yet.
10.Financial plan
We take money for opening from the bank in the amount of 500,000 rubles at 20% per annum for 1.5 years, payment will be made monthly no later than the 20th, in equal installments in the amount of 27,778 rubles. Interest is calculated on the remaining amount.
| Month | Sum | Interest | Total payment | Remainder |
| January | RUB 27,777.78 | RUB 8,333.33 | 36,111.11 rub. | 472,222.22 rub. |
| February | RUB 27,777.78 | RUB 7,870.37 | RUB 35,648.15 | RUB 444,444.44 |
| March | RUB 27,777.78 | 7,407.41 rub. | RUB 35,185.19 | RUB 416,666.67 |
| April | RUB 27,777.78 | RUB 6,944.44 | RUB 34,722.22 | RUB 388,888.89 |
| May | RUB 27,777.78 | RUB 6,481.48 | RUB 34,259.26 | RUB 361,111.11 |
| June | RUB 27,777.78 | 6,018.52 rub. | RUB 33,796.30 | RUB 333,333.33 |
| July | RUB 27,777.78 | RUB 5,555.56 | RUB 33,333.33 | RUB 305,555.56 |
| August | RUB 27,777.78 | RUB 5,092.59 | RUB 32,870.37 | RUB 277,777.78 |
| September | RUB 27,777.78 | RUR 4,629.63 | RUB 32,407.41 | RUB 250,000.00 |
| October | RUB 27,777.78 | RUB 4,166.67 | RUB 31,944.44 | RUB 222,222.22 |
| November | RUB 27,777.78 | RUB 3,703.70 | RUB 31,481.48 | RUB 194,444.44 |
| December | RUB 27,777.78 | RUB 3,240.74 | RUB 31,018.52 | RUB 166,666.67 |
| January | RUB 27,777.78 | RUB 2,777.78 | RUB 30,555.56 | RUB 138,888.89 |
| February | RUB 27,777.78 | RUB 2,314.81 | RUB 30,092.59 | 111 111.11 rub. |
| March | RUB 27,777.78 | RUB 1,851.85 | RUB 29,629.63 | RUB 83,333.33 |
| April | RUB 27,777.78 | RUR 1,388.89 | RUB 29,166.67 | RUB 55,555.56 |
| May | RUB 27,777.78 | 925.93 rub. | RUB 28,703.70 | RUB 27,777.78 |
| June | RUB 27,777.78 | 462.96 rub. | RUB 28,240.74 | 0.00 rub. |
Table - 13. Cash flow report, thousand rubles:
| 1 year | 2 year | 3 year | |
| Cash balance at the beginning of the period | 0 | 1289,98022 | 4695,28 |
| Operating activities | |||
| Receipts | |||
| Repayment of accounts receivable | 30 | 35 | 40 |
| Current year sales | 2594,06 | 7792,63 | 27274,21 |
| Advances from buyers | 50 | 70 | 150 |
| Other supply | 10 | 12 | 20 |
| Total receipts | 2684,06 | 7909,63 | 27484,21 |
| Payments | |||
| Payments to suppliers, contractors | 1037,76 | 3117,05 | 9366,735 |
| Settlements with personnel for wages | 93 | 102,3 | 112,53 |
| Tax deductions (13%) | 12,092 | 13,299 | 14,6289 |
| Taxes (24%) | 34,85 | 727,66 | 14553,2 |
| Travel expenses | 40 | 50 | 60 |
| Office rental and maintenance | 183,6 | 205,632 | 210,75 |
| Payment for communication services | 10 | 12 | 15 |
| Payment for consulting services | 60 | 70 | 76 |
| Other payments | 20 | 30 | 40 |
| Total payments | 1491,302 | 4327,941 | 24448,84 |
| Cash flow from operating activities | 1192,758 | 4871,66922 | 7730,641 |
| Financial activities | |||
| Receipts | |||
| Bank loans and borrowings | 500 | 0 | 0 |
| Non-bank loans and borrowings (external) | |||
| Intragroup financing | |||
| Proceeds from founders | |||
| Total receipts | 500 | 0 | 0 |
| Payments | |||
| Repayment of bank loans and loans | 402,77778 | 176,38889 | 0 |
| Repayment of non-bank loans and borrowings | |||
| Providing an intragroup loan | |||
| Payments to founders | |||
| Total payments | 402,77778 | 176,38889 | 0 |
| Cash flow from financing activities | 97,22222 | -176,38889 | 0 |
| Total Cash Flow | 1289,9802 | 4695,28033 | 7730,641 |
| Cash balance at the end of the period | 1289,9802 | 4695,28033 | 7730,641 |
Break-even point calculation:
Break-even point = fixed costs/C-period costs
After calculations (137.272/70 -42 = 4.903), we came to the conclusion that in order to cover costs we need to provide almost 4.903 services.
Profitability: R= Clean/All expenses,
R1= (62.53/34.85+1037.63+1643.66)*100=2.3%
R2= (2150.6/727.66+3117.05+1643.66)*100=39.18%
After all the calculations, we see that our company begins to make a profit by the month of October, and after taking into account various business trips and unaccounted expenses, we see that the company is quietly beginning to develop after 1.5 years of its existence.
11. Risks in the company’s activities
1.1. The risk of spending all the cash before receiving the order: is unlikely due to the fact that we receive the order, and with it an advance, so there will always be cash.
1.2. The risk of a shortage or no clients at all: we have experienced advertising agents and freelancers, whom we periodically send for advanced training, we also provide unusual services, come up with original methods of advertising umami gene. director, creative director and quite often we send them to various seminars, so this risk is almost impossible. However, if this risk arises, we will launch a system of discounts, and maybe even a price reduction.
1.3. Exceeding the order amount: we draw up a full estimate taking into account unexpected expenses, and in case of which we will try to negotiate with the client.
1.4. Exceeding the company's costs: we clearly plan everything from the beginning, taking into account price increases, and creating a reserve fund.
2.1. The risk of price reductions due to the actions of competitors: is unlikely, because our suppliers are from Chelny, so our prices are already slightly lower than those of our competitors, and we also provide unique, almost individual orders. And if something happens, we can reduce the price through suppliers, i.e. process of reducing prices for their services to 20%
2.2. The industry is rapidly developing in the direction of individualization and originality, but our company will monitor the development of the market by visiting various symposiums, and we have already chosen that our agency focuses on the originality of services.
The number of advertising agencies began to increase rapidly after 2000. These are companies that provide advertising services to various companies: the work includes consulting services, development of a suitable advertising strategy, risk assessment, and provision of advertising services. This business will not require more investments, and this is its main advantage. Below we will look at the business plan of an advertising agency so that you can assess your capabilities for working in this segment.
The first thing worth noting is that the advertising services market is constantly expanding, despite the fact that it is already quite large. What follows from this? The demand for advertising campaign services is constantly growing, as the share of business in all segments is increasing, therefore, the volume of work performed is also growing. Among the advantages of this business there is the absence of a seasonal factor. Although seasonality may affect demand, the impact will be minor. The majority of clients seek advertising services on a regular basis.
If we analyze the services market as a whole, we can conclude that this area is one of the most promising. The success of any investment project or enterprise today will directly depend on marketing and advertising, as well as their effectiveness. This allows us to speak about a very high level of demand.
If we judge the market relative to the share of companies, we can say that it is only half full, which makes entry into it quite easy. It is important to understand that this type of business requires ingenuity, flexibility, and creativity. Therefore, if you are going to open an advertising agency, it will be better if you understand this field. If you have no idea about the advertising business and the advertising services market, it will be very difficult for you in this niche.
The most difficult stage is not only entering the market, but also capturing a site or market share. Today in all major cities There are quite a few advertising campaigns, such services are provided by well-known media. You need to be prepared for high level competition, which is provided by both large and small companies.
How can an entrepreneur fight serious competitors? It is important to immediately prepare a creative approach to developing advertising strategies and campaigns. You should try your best when writing proposals for clients. By providing quality work, you can be sure that the number of your clients will grow every day. A low price may be an attractive factor. Therefore, at the initial stage, make the cost of services slightly lower than the market average.
The main potential clients will be legal entities. An ordinary person rarely uses the services of an advertising campaign, but companies often resort to them: it is not for nothing that they say that advertising is the engine of trade. Most often, small and medium-sized companies will contact you, since large enterprises are accustomed to dealing with large advertising agencies that already have a name and reputation.
Read also: Business plan: Creating a mobile application
Types of advertising agencies: how to choose an activity format
Before you start working, determine the direction of your company's activities, and also choose a work format. Depending on the functions of the advertising agency, they can be divided into distributors and advertising producers. For absolutely small companies it will be very difficult to combine this functionality, and therefore at the initial stage you need to give preference to one direction. Of course, the ideal option would be an advertising agency that would independently generate content and also have established channels for advertising distribution.
- full-cycle advertising agency - performs a full range of turnkey tasks;
- creative advertising agency develops different types advertising campaigns;
- The PR agency specializes in PR campaigns, their development and implementation;
- The Internet agency specializes in Internet marketing, online promotion, website promotion;
- outdoor advertising agency.
Organizational and legal aspects
The first step you will need to complete according to your advertising agency business plan is to register own company in government agencies. You can give preference to individual entrepreneurs or LLCs. Your choice will depend solely on the scale of the company's activities.
You will need to register the following codes according to the OKVED classifier:
- 40 advertising activities;
- 13 research of market conditions and identification of public opinion;
- 29 activities in the field of radio broadcasting and television;
- 22 printing of advertising materials;
- 25 other printing activities;
- 81 photography activities.
Please note that you may not need all of the codes presented. In order to accurately and clearly determine which codes you will need, decide on the direction of your activity.
As a taxation system, you can give preference to UTII or a simplified system. In order to accept payments by bank transfer, be sure to open your own bank account. In addition, it is very important to familiarize yourself with local legislation that regulates the work of advertising companies. Perhaps your region has a different procedure for providing services.
Another important point you should know is that advertising in some places must be done with permission. For example, if you are going to post notices in an elevator, you must obtain permission from the maintenance company. In order not to encounter problems in these nuances, you need to study the legislation.
Before starting activities, you must notify Rospotrebnadzor. The office premises must be brought into compliance with all fire safety standards. The lease agreement for office space must be official.
Marketing business plan for an advertising agency
It is important to understand that the marketing plan for an advertising agency must be ideal. If you can't promote your own business, how can you put together a suitable advertising campaign for your clients' businesses?
- take care of an integrated approach. This means that before taking any action, it is necessary to study the market and its conditions, develop all the steps, create advertising and printing products, conduct work on the Internet, and do much more;
- when searching for advertising channels, you should focus on your potential client - medium and small enterprises;
- you can focus on the benefits. Since most advertising campaigns do not differ from each other, it is necessary to show clients your reasonable prices and high speed of work, as well as a pleasant level of service provided.
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Since the main direction of your business is the provision of advertising services, going somewhere to order marketing and promotion of the company would be a bad step. You must do all the work yourself. When developing a strategy, be sure to pay attention to the following types of promotion:
- Creating your own website. An organization's website is its face. Firstly, it is an attractive marketing product, and secondly, it is a full-fledged information platform for promotion, which will provide basic information about your services and promotions. Be sure to share information about your work here.
- Internet advertising. This type of advertising will be ideal for an advertising agency. More clients will come to you via the Internet. Use different advertising channels to reach more customers.
- Advertising in the media. In a good way There will be advertising on both radio and television. Place advertisements in newspapers and magazines.
Selection of premises for an advertising company
The first thing you need to understand when choosing an office is what functions it will perform. If you plan to meet clients on their territory or in neutral zones, you may prefer more budget-friendly options. If you plan to receive clients in the office, it is better if it is respectable and solid. The good thing is that, unlike most lines of business, for an advertising agency the office will not play a key role, especially if you can work with clients remotely or on neutral territory.
If you are just opening an advertising agency and do not intend to conduct large-scale activities, the first option will be more preferable for you. First of all, you can save a lot. To do this, look for a room in a residential area, but with good transport links.
If you plan to receive clients in the office, things will be a little different. Accommodation suitable for you:
- in the business center;
- in an office building;
- in the mall;
- prestigious areas of the city.
In order to impress the client, you need to take care of the office interior. If you want to show off your creativity, you can opt for vibrant trends and furnish your office space in a modern or kitsch style. However, don't overdo it. Clients prefer a serious approach. Remember that everything in the office should always be neat and clean, it should be furnished depending on the requirements of the staff.
A good solution would be to use it as a presentation of your work; you can create a special stand on which your portfolio will be placed.
When it comes to decorating your office space, you also need to think about purchasing the required equipment. First of all, you need to make sure that a comfortable area is created for receiving clients. Also, you cannot do without:
- office furniture for employees;
- professional computers and equipment for designers;
- printer for independent development of printed materials;
- carrying out telephone line and high-speed Internet;
- photo and video equipment;
- purchasing the necessary software that will be required for the job.
In the modern economic model, advertising, PR, and marketing occupy a prominent place. Not a single serious enterprise can do without advertising. This situation is unlikely to change in the near future. Which means advertising business has a future and it makes sense to invest in it. In addition, the advertising field of activity is very democratic. Here you can find both small advertising companies working “from scratch” and large agencies with huge budgets. You can start working in advertising without having any start-up capital at all..
Advertising business is the general name for the field of activity related to marketing. In general, it includes a fairly wide range of activities. Let's consider one by one what services relate to the advertising business, how this business is organized, how to open an advertising agency, give an idea of the business plan of an advertising agency, and give an approximate calculation of income and expenses.
Advertising activity
Advertising is not the main link in economic activity person. It performs auxiliary functions in the economy. Although from the point of view of economic entities the advertising business is an independent sphere of production, it would be more logical to designate it as “business for business.” The attribution of a particular function to advertising is somewhat arbitrary.
- Informational. Bringing certain information to the target audience;
- Incentive. Formation of specified preferences among the target audience;
- Manipulative. Formation of specified desires among the target audience, bypassing consciousness;
- Image. Creation of the necessary image.
- creation of advertising content;
- creation and promotion of advertising content;
- full advertising cycle.
Large investments and a team are not necessary to create advertising content. It is enough to have clients who need such content. The full cycle usually includes placement and analysis of an advertising campaign. This requires placement sites (media, billboards, etc.), various analytical tools (surveying agents, sales indicators, etc.).
Types of advertising
- Printing. All variety of printed products: booklets, leaflets, business cards, magazines, etc.;
- Outdoor advertising. Posters, signs, billboards, etc.;
- MASS MEDIA. Advertising in television, radio, newspapers;
- Internet. It stands out separately from the media, as it has its own specific characteristics;
- Agents. Conducting advertising campaigns with the involvement of distribution agents;
- Rhetoric. Organization of various lectures, conferences, presentations;
- Hiden advertisment. Advertising that takes place indirectly with any main event.
Characteristic features of the business
The advertising business in Russia is quite young and continues to develop. For a number of reasons, the formation of this business follows the formation of other areas of activity. Those. it develops mainly from requests and understanding of the need for advertising by the customer. An advertising agency thus has two types of target audiences: customers and an impact audience for the advertising content being created. This is one of the main characteristic distinctive features business.
Target Audiences
In this regard, it is necessary to say a few words about target audiences. Target audiences for advertising content are quite diverse; they can be divided into broad and specific – aimed at a specific client.
- industrial enterprises;
- the shops;
- financial companies;
- political associations.
Types of advertising agencies
The division of advertising agencies is different and is based on an understanding of the goals of advertising activities. To start operating, you need to decide on the format of the advertising agency; the business plan must reflect the main key points planned enterprise. The format will determine costs, the approximate customer base of customers and further direction of development.
In this aspect, it is best to classify advertising agencies according to the following format:
- Small advertising studios. These are studios that create custom advertising content, do not have platforms for posting this content and do not implement the full advertising cycle. Those. in fact, these are artists fulfilling orders according to clear technical specifications. In this case, there are no costs or additional specialists for placement, promotion and analysis of advertising. Also, such studios do not have much capacity to create high-budget advertising content;
- Small advertising agencies. These are essentially the same studios in a wider format. In their services they include the entire range of promotion of fairly cheap advertising content. Those. There are platforms for advertising; some analysis of advertising services may be offered;
- Full service advertising agencies. Agencies ready to offer a full range of services. It is possible that some of the services are delegated to various subcontractors - the same small advertising studios or specialized companies for creating advertising. They are characterized by significant costs for working with both types of target audiences.
- Specialized companies. These could be large studios for creating videos, companies specializing in a certain type of advertising, for example, political, etc. The costs will be specific and the work will be highly specific with a specific audience.
Location and premises
For an advertising agency, location does not play a significant role. The main activities related to working with customers are carried out in in electronic format, or on the customer’s premises; in rare cases, work is carried out in the office of an advertising agency. Exceptions may include specialized firms. But even in these cases, location does not play a special role - the customer can visit the company anywhere.
Additional requirements are put forward for the premises if it is planned to carry out some work with the target audience in the office: meetings with the customer, advertising campaigns in the office (say, lectures). Premises for specialized companies have their own requirements. In both cases, everything is situational and the premises are designed depending on the specific implementation.
Equipment
The same can be said about equipment. It all depends on the format and specific implementations. Small advertising studios do not require complex, expensive equipment. This is usually one or more computerized workstations. As services expand, the equipment may include: powerful graphics stations, specialized equipment for printing, holography and other things.
Documentation
In our country, there is a practice of not purchasing licenses for some products, primarily for software products. If the advertising studio is very small and is not actively preparing commercials, then this situation may not lead to negative results. Large advertising companies sell advertising content created using a software product and must provide information on the legality of using the products they use.
Other documentation:
- package of constituent documentation (depending on the form of ownership, individual entrepreneur or joint-stock company);
- a package of external documentation (lease agreements, sublease agreements, contracts, agency agreements, etc.);
- package of internal documentation (organizational, analytical documentation);
Staff
The staff may include quite a few specialists:
- director;
- area managers;
- artist, designer;
- psychologist, sociologist.
Competition
In the sphere of smaller businesses and excluding a few of the largest metropolitan areas, the situation is somewhat simpler. True, demand and profitability are lower here. Among other things, small businesses are strongly influenced by the economic situation in the country. This is the area of expenses that enterprises cut first.
Advertising agency marketing
Good advertising style is about creating advertising content that promotes the advertising agency itself. Advertising includes the same advertising that is the product being sold to the customer. Those. in this vein, it is easier for an advertising agency: it advertises itself with the same means that it subsequently sells (advertising in the media, on billboards, mailings, etc.).
Work with customers:
- system of bonuses and discounts;
- preferences for regular customers;
- working with agents.
Financial plan
The epilogue to an advertising agency’s business plan is the financial plan. It reflects the expenditure and revenue side, the achievement of profitability, and calculates the payback period for investments. Due to the wide variety, it is not possible to provide a standard financial plan. Here is a small calculation from an advertising agency.
Small advertising agency. Premises for rent 20 sq.m. Staff 3 people: director, 2 managers. Several platforms for posting advertising content. The agency creates advertising and places it, in particular on billboards.
Income. Judging the income of an advertising agency can be very conditional. Thus, the price of placement on a billboard along a highway in one of the cities is 10 thousand rubles per month. We get it. From advertising on sites 50 - 80 thousand per month. Other advertising services 50 – 80 thousand per month. Total monthly income is 100 – 160 thousand rubles. Or profit: 15 – 20 thousand per month.
The payback period will be from one to one and a half years. Naturally, as an example, we took a very small agency in small town, factors of its further development, as well as changes in the external environment, were not taken into account.
Ever since trade and market relations and goods arose in the world, there has been an urgent need for advertising. This is not only the engine of progress, but also an integral companion of the market. Today it is difficult to imagine even a small private company entering the market without accompanying advertising services. The need for advertising is proven by the huge number of agencies that appear on the market every year. But, despite fierce competition, these companies are not able to satisfy the growing consumer demand for advertising services, which indicates the relevance of this business idea.
General description of the service
Pros and cons of a business idea
pros
- High demand. Any company, no matter what type of service or product it offers, needs advertising.
- Regular customers. Despite high competition, creativity and quality will help create a loyal customer base.
- High profitability. With a well-integrated marketing strategy and professional staff, you can quickly achieve payback and good profitability.
- Minimum investment.
Flaws
High competition. This disadvantage flows smoothly from the advantage of high demand. The higher the demand, the more supply - this is the law of the market. Therefore, in order to adequately enter the market with this idea and successfully implement it, you will need to put in enough effort, conduct a good marketing campaign and study the competitive environment, identifying weaknesses.
Despite huge competition in the advertising services market, it should be noted that there is a great demand. As demand grows, so does the volume of services companies need. Assessing the entire scope of this market, seasonality should be noted, but it does not fully affect the business.
Creativity is an important criterion
Among other services and goods, this industry is one of the most promising today. With proper planning and development of the company, you can short term reach a profitability of 15-20% and make a good profit.
The advantage of this type of business is the constantly growing demand for services. As long as new companies exist and appear on the market, the demand for advertising services will only grow. Companies are interested in establishing their market positions, outperforming competitors and promoting their products. That is why they turn to advertising agencies for professional help.
In order to occupy your niche and successfully implement your business idea of opening an advertising agency, you need to develop a unique marketing strategy and find strong competitive advantages.
Important qualities for agency leaders in this business are an analytical mind, flexibility and ingenuity. The best option would be to search for personnel in accordance with these requirements. If the owner of the companies has not previously worked in this field, then it makes sense to hire a professional who already has experience in advertising. Only if these conditions are met can you count on the successful development and income of the company.
SWOT analysis of an advertising agency
At the stage of market research, it is important to perform a SWOT analysis of an advertising agency, which takes into account external and internal factors influencing the success of the company's development.
Strengths
- possibility of an individual approach;
- strong professional team;
- high level of service;
- wide range of services;
- minimal investment.
Weak sides
- lack of reputation;
- strong competition;
- lack of regular customers.
Possibilities
- changes in advertising technologies;
- searching for profitable suppliers;
- high level of differentiation in this business segment.
- price fluctuations or dumping by competitors;
- emergence of new technologies from competitors;
- decline business activity and decreased demand for the service.
Search for target audience
Potential clients will be existing companies in the market. Analyze the market in the area where you plan to operate and see whose services these companies mainly use. Identify weaknesses and opportunities that you can offer to companies.
When opening a company, it is important to understand who your services will be intended for: large, medium or small businesses. The number of personnel, equipment, choice of premises and service depend on the correct definition of the target audience.
It will be quite difficult to enter the market and immediately try to hunt for “ big fish" As a rule, large companies with huge advertising budgets already work under long-term contracts with advertising agencies. It will be very difficult to lure such a client without an established reputation and work experience.
Identification of main competitors
You also need to identify your main competitors. These can be large advertising publications, TV channels, radio stations, etc.
These can be broad-profile companies that work with consumers in all areas of advertising services, or they can be narrowly focused companies that provide services only in a certain way (development of slogans, creation of websites, business cards, advertising brochures, etc.).
Determination of pricing policy
In order to enter the market and occupy your niche, it is necessary to correctly determine the pricing policy and offer the consumer the optimal price-quality ratio. It is this criterion that the buyer takes into account when choosing a Seller.
This criterion is unlikely to interest serious buyers who constantly turn to specialized companies for advertising services.
Here you need to rely on creativity and quality. As a rule, large companies have a large advertising budget. Considering the high market positions of these companies, it is important for them to maintain their competitive advantages, which means they will give preference to the advertising agency that offers higher quality, original and effective advertising.
If you plan to occupy an average niche in the market, and the main competitors will be small companies providing services to small businesses, then you should focus on price. But it is not recommended to lower the price. Otherwise, it will negatively affect profitability and your reputation. By offering the lowest price on the market, you simply cannot maintain a staff of professionals. And staff plays a key role in this business.
The best option would be to maintain the average market price, so before entering the market, carefully analyze your competitors' offers.
Advertising agency services
Having analyzed the market for these services in your region and familiarized yourself with the offers of competitors, it is important to highlight popular and related services that you can offer to clients.
The main services may be:
- advertising brochures;
- creation and support of websites;
- creating business cards;
- outdoor advertising;
- banner printing;
- creation of souvenir products;
- advertising in transport;
- conducting advertising campaigns (presentations, promotion of meetings, etc.)
An additional range of services that will help not only generate income, but also attract clients through partners can be:
- promotion of companies through social media;
- naming;
- development of advertising strategy;
- consultations.
Making a business plan
Having determined the feasibility of a business idea to open an advertising agency, it is very important to draw up a plan for its implementation. Beginners often make the mistake of starting a business without clearly planned actions, without calculating payback and financial risks.
This leads to the fact that already at the first stage of work, novice businessmen are faced with problems of finding clients and selling products.
A well-drafted plan is the key to successful activities. The document demonstrates an analysis of the market environment, identifies the main competitors, indicates the payback period and profitability of the business. Therefore, do not think that drafting a document is a waste of time.
In addition, if the initial capital is not enough to implement the project and you need help in the form of investors, you definitely cannot do without such a document. No financial institution or private investor will agree to provide money for a project that has not been thoroughly studied and analyzed.
When writing a plan for investors, you can write two documents. Interior plan will reflect the real state of affairs, and indicate all the weaknesses of the project, risks, number of competitors, etc. An external document will demonstrate the project from its advantageous side.
Please note that we are not talking about hiding facts and distorting figures. Each business project, as shown by SWOT analysis, has strengths and weaknesses. So think about how to demonstrate your business idea to investors and business partners.
Where to start?
To make it easier for you to implement the project, let’s immediately define the main stages of preparation.
- Preparation of documents and company registration.
- Organizational plan:
- search for premises;
- equipment purchase;
- personnel search.
- Marketing plan
- Financial plan
Planning is an important stage of business
As for the document itself, it must be drawn up in strict accordance with this structure:
- Summary – This section describes the relevance of the idea. Also here you need to indicate general provisions, state the mission and objectives of the company, and the range of services provided.
- General provisions – this section contains general information about the company and its founders.
- Sources of financing - indicates whether there is an investor. The amount of initial investment.
- Market analysis indicates capacity, filling with these services. Indicates the strengths and weaknesses of the project. Here it is advisable to conduct a SWOT analysis of the company.
- An organizational plan is a clear guide to action that shows the direction of activity step by step (registering a business, purchasing equipment, searching for personnel, etc.)
- Marketing and strategic plan - this section is devoted to the development of marketing enterprises for market promotion and customer search.
- The production plan includes a detailed list of issues related to the purchase of equipment and machinery.
- The financial plan reflects the necessary expenses, projected profits, profitability and payback forecast.
In addition to this plan, it will be possible to draw up a table that will allow for analysis and identification of risks and opportunities for the project.
Study competitiveness factors using the following criteria:
- individual approach to clients;
- service list;
- price policy;
- reputation;
- company location;
- professionalism of the team;
- efficiency in fulfilling requests.
When analyzing financial risks, it is advisable to include in the calculation scheme data on loan repayment and attracted investor funds, if the company was not opened at the expense of its own initial capital.
Paperwork
Compared to other types of activities, to launch a project to open an advertising agency, you do not need a large package of documents.
To register a company, you need to decide on the form of legal activity (individual entrepreneur, OJSC, LLC, etc.), submit an application and pay the registration fee.
If you decide to register an individual entrepreneur, this will require a minimum of time and documents. An application, a passport and payment of a fee of 800 rubles are required.
- passport of a citizen of the Russian Federation;
- individual entrepreneur registration certificate;
- a document confirming tax registration;
- premises rental agreement;
- medical records of employees (if you hire staff);
- permission from the fire service and sanitary and epidemiological station.
Opening an LLC will require a more labor-intensive procedure:
- Payment 50% authorized capital upon registration (at least 10 thousand rubles). In this case, the second part of the capital must be paid during the first year of the project launch.
- Payment of state duty in the amount of 6,500 rubles.
- statement;
- charter;
- a copy of the minutes of the founders' meeting.
Organizational plan
This section of the business plan serves as a guide to finding personnel, premises, renting and purchasing equipment.
Pay attention not only to the points in this section, but also to the deadlines for completing each one.
Search for premises
It is unlikely that you will be able to conclude a contract with a serious client if you save on renovations and receive visitors in the old premises.
The best option would be to choose an office in the city center. Also consider the number of floors of the office. You should not rent a room on the upper floors; visitors simply may not come to you. Also pay attention to a beautiful sign that will not only attract the attention of clients, but also demonstrate the level of creativity and quality of the advertising agency.
When searching for premises, consider the following parameters:
- renovation must be fresh and of high quality;
- work space for 4-5 employees, at least 40 square meters;
- convenient parking for clients;
- transport accessibility.
Be sure to check your connection to the Internet, because the work of an advertising agency is directly related to this factor.
Equipment purchase
The costs of this stage are clearly related to the specifics of the services that you plan to implement.
- set for printing and presentations;
- photo and video equipment;
- 3 computers (laptops);
- means of communication;
- chairs;
- tables;
- cabinets;
- chairs for clients;
- stationery.
With a minimum start-up capital, you can purchase working used equipment. Subsequently, with the development of the company, you can always increase its level and purchase new equipment.
You should not save on equipment that will directly “work” for the company’s image. This is an inkjet color printer with CISS, MFP, heat press, etc.
Personnel search
As in any other type of business, personnel are a key factor in the success of a company. Profit will directly depend on the professionalism and creativity of employees.
Therefore, when starting the personnel search stage for an advertising agency, it is important to determine the quality criteria by which the selection will be made.
- creativity of thinking;
- communication skills;
- ability to understand people;
- stress resistance.
In addition to these personal qualities, of course, experience in this field and professionalism are required. In accordance with the selected range of services that you plan to implement in your project, you will determine a list of professional skills that the employee must have. These include the ability to work in graphic editors, the ability to compose advertising texts and slogans, work with promotion on social networks, etc.
You can start the project with minimum quantity Human. To provide a full range of services, the following specialists will be needed:
- manager;
- marketer;
- artist (aka designer);
- computer technology specialist;
- operator;
- Poster of advertisements.
At the first stage, you may have to turn to third-party companies for some types of services (printing posters, banners, advertising in the media).
If you have a large amount of initial capital and can afford to hire the necessary specialists and purchase the appropriate equipment, then this will not be necessary.
Marketing plan
When developing a marketing plan, it is worth focusing on its main components:
- An integrated approach to providing services. This service involves the provision of full cycle services. This will allow you to develop a base of regular customers who will not feel comfortable turning to other companies for specific types of services.
- Focus on small and medium-sized businesses. Considering the high competition in the market and the lack of an established reputation, you should immediately focus your attention on small and medium-sized companies.
- Average pricing policy.
Now it is important to think about the directions in which your own promotion of services will be implemented.
- Creating your own website. This part of the work can be entrusted to one of the employees. It is important to rely on a beautiful, clear interface, which will contain up-to-date information about the full list of services, prices, and promotions.
- Promoting the company through social networks. This stage marketing plan can also be assigned to the employee.
- Newsletter commercial offers companies.
- Advertising on radio and TV.
A powerful marketing strategy will quickly gain trust and increase company recognition. But under no circumstances engage in cheap advertising. Advertisements at bus stops, near the metro and entrances are a strategic mistake that should never be made.
It is better to personally send the sales market expansion manager for personal negotiations with clients, where he will leave beautiful printed products. The success of your business will depend on the quality of your personal advertising.
It’s not particularly worth relying on the “word of mouth” effect in the first year of work. The advertising business is such an area that it will take you at least 2-3 years to create a base of regular customers.
In order to immediately enter the market, you must create your own website. Today, about 50% of all orders can be received via the Internet. Follow the deadlines and accuracy of order fulfillment and you will very quickly create a base of regular customers.
Video. What do you need to open an advertising agency?
Costs and payback
Initial expenses are associated with renting premises, repairs, purchasing equipment and registering a company.
- office space rental;
- purchase of furniture and equipment;
- Payment of utility services;
- staff salaries.
For Moscow, start-up capital will be required in the amount of 500-700 thousand rubles.
For regions, this amount can be reduced to 250 thousand rubles.
Below we will give an example of the costs and income of an advertising agency that opens in a small city of 300 thousand people.
Costs required to open an agency:
- registration and paperwork – 30 thousand rubles;
- purchase of furniture – 80 thousand rubles;
- renovation of the premises – 60 thousand rubles
- purchase of equipment – 300 thousand rubles;
- advertising launch – 30 thousand rubles.
Total 500 thousand rubles.
Monthly expenses
- rental of premises (up to 40 square meters) – 50 thousand rubles;
- communication services, Internet – 5 thousand rubles;
- carrying out promotional events – 10 thousand rubles;
- taxes – 5 thousand rubles;
- employees' wages are 80 thousand rubles.
Total: 150 thousand rubles.
Of course, these are very approximate figures and largely depend on the nature of the activity, the scale of production and the list of services provided.
Experts say that about 40% of the agency’s total income comes from:
- development and creation of a logo;
- development of corporate identity;
- creation of business cards and advertising brochures.
- Monthly income – 250,000 rubles.
- Net profit – 80,000 rubles.
- Initial costs – 500,000 rubles.
- Payback period – from 7 months.
Video. Opening an advertising agency. Promotion