SOLUTION: COM203 ASSIGNMENT 2 | My Assignment Tutor

COM203 ASSIGNMENT 2: BUSINESS PLAN Content Page Business Plan Summary…………………………………………………………………………………………….. 4 The Business……………………………………………………………………………………………………………… 5 Business details………………………………………………………………………………………………….. 5 Business premises………………………………………………………………………………………………. 6 Organisation chart………………………………………………………………………………………………. 6 Management & ownership…………………………………………………………………………………… 7 Key personnel……………………………………………………………………………………………………. 7 Products/services………………………………………………………………………………………………… 9 Insurance…………………………………………………………………………………………………………. 10 Legal considerations…………………………………………………………………………………………. 11 The Market……………………………………………………………………………………………………………… 12 Market research………………………………………………………………………………………………… 12 Market targets………………………………………………………………………………………………….. 12 Environmental/industry analysis…………………………………………………………………………. 12 Your customers………………………………………………………………………………………………… 12 S.W.O.T. analysis…………………………………………………………………………………………….. 13 Your competitors……………………………………………………………………………………………… 14 Advertising & sales…………………………………………………………………………………………… 15 The Future………………………………………………………………………………………………………………. 16 Vision statement……………………………………………………………………………………………….. 16 Mission statement…………………………………………………………………………………………….. 16 Goals/objectives……………………………………………………………………………………………….. 16 Action plan………………………………………………………………………………………………………. 16 The Finances…………………………………………………………………………………………………………… 17 Key objectives …………………………………………………………………………………………………. 17 Assumptions…………………………………………………………………………………………………….. 17 Start-up costs……………………………………………………………………………………………………. 17 Balance sheet forecast……………………………………………………………………………………….. 18 Profit and loss forecast………………………………………………………………………………………. 19 Expected cash flow…………………………………………………………………………………………… 20 Supporting documentation………………………………………………………………………………………. 21 Reference List…………………………………………………………………………………………………………. 22 Business Plan Summary Creative Locals is a comprehensive creative and marketing communications agency headquartered in Singapore, focusing on creating new ideas. It specialised in graphic design, strategic brand planning, and digital marketing, founded by Charissa Lee, who self-learn multi-disciplinary creativity herself. Her vision was to introduce some local touch into the advertising industry. She is proficient in visual communication and marketing, committed to expanding her boundaries, providing solutions to help brands connect with their target audiences. As Charissa aspires to customise solutions with some local and yet creative characteristics, the name Creative Locals was named thereafter. With the desire for marketing and advertising, Creative Locals can break through the boundaries, providing every customer with ideals and methods and, however, still keep some local touches. As a sole proprietorship, Charissa Lee oversees and is responsible for all parts of the business. Respective sections of the business plan will have an in-depth analysis of the agency, the industry, and the future. The Business 2.1 Business details Business owner(s): Charissa Lee Products/services: Creative Locals is an integrated creative and marketing communications consulting agency specialising in graphic design, strategic brand planning, and digital marketing. Customers can look forward to a ground-breaking idea that will attract the attention of local and foreign audiences. Registrations details : Business Name: Creative Locals Trading name(s): Creative Locals Date registered: 23 September 2019 Business Location: 22 Mackenzie Road #01-01 Singapore 228686 Business structure: Sole Proprietorship ABN: 01234567890 UEN: T19LL0239B Business owner(s): Charissa Lee Primary SSIC: 70201 – Management Consultancy Services (General) Secondary SSIC: 74192 – Art and Graphic Design Services GST: As the Creative Locals expected taxable turnover does not exceed one million, so no registration of GST required (IRAS, n.d) Domain names: www.creative-locals.com Licences/permits & certifications: Online digital advertising: Internet service and content provider licenseData Protection Trustmark (DPTM) certification Business premises Business location Creative Locals is located in a shophouse at Mackenzie Road, where there are many other start-up agencies there. The place is a quiet street during the day, where the employee can draw some inspiration. While at night, there are a few bars there, to relax after the day’s work. Buy/lease The agency is currently leased at $4,000 per month. A friend of the founder introduced the space to her, so not much refurbishment is needed. Organisation chart Charissa Lee is responsible for Creative Locals’ operations, from executions of business to customer relationships. Creative Locals has grown from a one-person team to a team of five, thanks to our customers’ support in the past. The company’s positions are mainly creative director, account manager, account executive, copywriter, and creative designer. Figure 1: Creative Locals Organisation Chart Management & ownership Name of owner(s): Charissa Lee Details of management & ownership As both the founder and owner of Creative Locals, Charissa Lee will be responsible for the business. Since Creative Locals is a sole proprietorship, Charissa has the final decision in any decision-making. She not only oversees the execution of the business and creative aspects of the projects but is also responsible for accounts management. Experience Charissa Lee has a bachelor’s degree in Web Communication and Marketing. She has been in the Digital industry for four years as an E-commerce Marketing Specialist in a media company in Singapore. 2.5 Key personnel Current Staff Job TitleNameExpected staff turnoverSkills or strengthsAccount ManagerRachel Koh3-4 yearsDegree in public relations management Five years experience in customer relations management Account ExecutiveMichelle Lee2-3 yearsDegree in marketing and managementFresh graduateCopywriterJustina Khoo2-3 yearsDegree in Mass Communications Three years of experience in an advertising agencyCreative DesignerNicholas Ho2-3 yearsDegree in digital media Two years of experience in a digital advertising agency, with knowledge of Photoshop, Illustrator, or and InDesign Required staff Job TitleQuantityExpected staff turnoverSkills necessaryDate requiredChief Finance Officer15-6 yearsDegree in accountancy or finance8-10 years of experience in finance control Proven leadership and management experience (Half, 2019)Sept-21Copywriter12-3 yearsDegree in Mass Communications or relevant Creative conceptualisingUnderstand local marketer to input local tasteJun-21Creative Designer22-3 yearsDegree in business or marketing Proficiency in Adobe program, include conceptualisation, creation of works of an art collection2-3 years relevant experienceJun-21 Requirement options Creative Locals will begin recruitment by advertising our jobs and their requirements. A video of the recruitment will be created and uploaded onto various social media platforms, creating an advertisement to expand the recruitment process’s coverage. Not only that, but Creative Locals will also be using job portals such as LinkedIn, JobStreet, and Jobs Central for recruitment. Training programs All newly recruited employees will be sent for courses offered by the General Assembly, which provide free activities that introduce digital marketing, programming, and graphic design (Generalassemb.ly, 2019). Employees will be able to choose the different types of courses offered that interest them. The agency will also be applying for Skillsfuture SG for course subsidies for employees over 35 of age (ssg.gov.sg, n.d). Furthermore, employees can choose other courses to help with their career development, not necessarily to select courses related to creative design and marketing. For Charissa, she will attend some talks where the industry’s market leaders will make their speeches and learn about other business owners’ and leaders’ experiences. Additionally, she will take up some online courses to enhance and update her skills. Skills retention strategies In the first quarter of the year, a yearly performance appraisal will be conducted to ensure that employees’ skills are developed and maintained, and a team evaluation every six months. Employees will be evaluated based on their key performance indicators (KPI) to analyse their strengths and weakness. By doing so, the agency would be able to identify those employees that need to enhance their skills and knowledge, or if it is time to change employee’s position due to no progression for the current one. Product/services Product/ServiceDescriptionPriceAdvertising(ads, digital banners)Paid advertising programCooperate with Key Opinion Leaders (KOL)$3,000 – $6,000Campaign conceptualisationCreate innovative and resourceful solutions through communication channels (social media platforms, newsletters, magazines, presentations, infographics). Develop effective communication solutions for customers to connect and inspire their desired audiences and brands.$4,000 – $8,000Social media specialistTo execute, plan and monitor the social media strategies by integrating practical and optimal platforms to provide creative and valuable content.$3,000 – $6,000Content developmentGenerate clear and concise visual content and experiences through accurate media channels to attract and attract the right audience$6,000 – $8,000 Market position Creative Locals provides a wide range of services. We believe that result-oriented solutions can satisfy our customers to build brand loyalty and credibility in the market. Through extensive research and understanding of customers from a broader perspective, we can meet our customers’ expectations with detailed planning and conceptualisation without reducing the budget’s quality. Creative Locals believe that through unremitting efforts and hard work, we can deliver quality work. Unique selling position Creative Locals has distinctive local characteristics in our campaign. The agency not only provides services but also injects some local elements associated with the locals and deliverables. Pricing strategy & Value to clients Our customers will receive quality work value for money through our pricing strategy. Insurance Workers compensation The Work Injury Compensation Act (WICA) stipulates that all employees must have work injury compensation. The company’s provident funds contribution will be allocated to MediShield Life, Singaporean’s basic health insurance coverage. Furthermore, the agency is also covered under AIG Insurance Asia Pacific Pte Ltd, business insurance package, covering property risks (not including the building), work injury, workers’ compensation, and other risks (AIG.sg, 2019). Risk management RiskLikelihoodImpactStrategyMiscommunication & misinterpretation Highly likelyMediumClarify with customers for a better understanding Follow-up with emails for black and white proofLoss of files or backupLikelyHighSetup recovery systems in computersAlways keep a backup in external hard diskFraud/hacking riskHighly unlikelyHighEncrypt confidential documents with passwordsPoor employee’s moraleLikelyHighSet reward systemAsset misappropriation UnlikelyHighHave a detailed income statement Conduct random audit checks of agency accounts Legal considerations The Data Protection Trustmark (DPTM) certification, indicating that the agency practices data protection. Through the stringent, Personal Data Protection Act (PDPA), having DPTM certification will enable customers to trust us and not misuse their data (IMDA, n.d). Operations Production process The production process will be illustrated in Figure 2 below: Figure 2: Creative Locals Production Process Plant & equipment EquipmentPurchase datePurchase priceRunning cost5 x Personal Computer (27-inch iMac)1-Oct-19$3,329 x 5 = $16,645N.A2 x Drawing Tablet (Wacom Cintiq 22)1-Oct-19$1,149 x 2 = $2,298N.AAdobe Creative Cloud1-Oct-19$1,280 per year$119/month Communication channels Customers can contact us via email, phone, or on our website’s chatbot (www.creative-locals.com). They can also contact us through our social media platforms – CreativeLocals.SG. The Market 3.1 Market research Data shows that, compared to the third quarter of 2020, the overall business receipts grew by 7.9% in the fourth quarter of 2020. It also indicated that the information and communication services sector grew by 12.1%, mainly due to increased software publishers’ business activities (Statistics Department, 2020). This shows that there is a demand for such business services. As such, Creative Locals will be creating a feedback form to analyse the market, as shown in Appendix 1. After every finished project or campaign, we will ask our customers to fill up the feedback form. This allows us to further understand why they chose us and the areas that we might need to improve to attract other customers (Frederiksen, 2017). Market targets The Creative Locals plan by the end of 2021. to reach a total revenue of $500,000. Environmental/industry analysis It has been on the rise for lifestyle and interactive engagement in Singapore, given the total population of 5.69 million (Straits Times, 2020). It is almost impossible to attract all 5.69 million people’s attention, given that it also includes newborns and new citizens. As such, Creative Locals have to be very clear who our target audience is to help create ground-breaking content. Your customers Customer demographics Creative Locals is looking to target Singapore’s small and medium-sized enterprises (SMEs) as its primary market. Due to budget constraints, significant companies and SMEs in Asia will become the secondary market. These SMEs help promote and strengthen reforms, as they are intrinsically interested in promoting policies that are conducive to fair competition (EBRD, n.d). Compared with large companies, SMEs tend to be more flexible, faster to make changes and decisions, and are willing to violate norms in creating ground-breaking content (EBRD, n.d). These customers are usually of age 23 to 35. Customer management Creative Locals will adopt art transparency and create creative and innovative contents that can attract customers. Customer retention and loyalty are important goals for successful companies to retain and develop the core customer base (CSM, n.d). Good customer management enables companies to ensure that the services provided meet the needs of the customers. Importantly, it can also identify further growth opportunities (CSM, n.d). To build and maintain strong customer relationships, we must make an effort to attract customers, such as connecting to them, show appreciation and ask for feedback (Kappel, 2017). With the help of technology, we can build our customer relationships through online platforms, making the website and social media platforms top-notch to connect and reach out to potential customers or even keep our customers updated with what we are up to (Kappel, 2017). Also, show appreciation by rewarding long-term customers loyalty discount programs, where reward cards will be issued, or the use of membership program app to track customer rewards (Kappel, 2017). Customers can earn points by purchasing services and being rewarded for things like discounts for the next purchase after accumulating a certain number of points (Kappel, 2017). Not forgetting, asking for customer feedback because be it good or bad, it can help hone specific customer needs and find the best solutions to solve their problems. The more our service meets our customers’ needs, the more our business will grow (Kappel, 2017). S.W.O.T analysis StrengthsWeaknessCentral location – Mackenzie roadSpecialise in a variety of services Have strong bonds with customers Family-like cultureReasonable and negotiable price of servicesConvenient transportationProvide high-quality workAvailable and interactive on all social media platformsPrice competitionUnique local characteristics may avoid potential foreign marketsThe ability to undertake more projects/campaign due to small team sizePoor employees morale Inconsistent cashflows as the initial stage, operations, and income are slow OpportunitiesThreatsBuild more customer relationships and loyaltyMore brand awareness – win awardsMore networking to get opportunities overseas Business development – expanding into the foreign market Demand in the industry Potential customer’s word-of-mouthCyberattacksOverworking and overloading of staff, due to small team size Negative reviews from customers Competitors win proposal pitchingIncrease in competitorsIT or telecommunications interruption Your competitors CompetitorEstablished dateSizeValue to customersStrengthsWeaknessesGoodStuphYear 201050 employeesQuirky, high-quality work that won several awardsAn interesting website that is eye-catchingCustomers will either like it or hate it with the unique characteristicsBlackblue Media GroupYear 200911-50 employeesCommitted to providing quality serviceGood customers relationshipsNever showcase company’s portfolioMercury CreativeYear 20107 employeesCan It canconceptualized for a wide range of industriesA variety range of servicesMay lose brand identityWunderfauksYear 20102-9 employeesHigh-quality work and credibility in the marketShows transparency in work progressFocus too much on results over activities might overwork employees Advertising & sales Planned promotion /advertising typeExpected business improvementCost ($)Target dateContent Marketing – InfographicsRaise awareness, a great form of visualisation between images and data. Allows the reader to scan and then decide if they want to seek out more information$2,000Sept-21Social Media Marketing – Facebook, InstagramGaining brand recognition, social media allows for easy and effective brand building.$450 to $1,600 per monthJun-22Email MarketingBuild relationships with customers, also improve response rates to our direct marketing campaigns$9 to $1,000 per monthJun-21 Marketing strategy To capture the attention of potential customers, Creative Locals will need to build content and marketing services. Furthermore, the agency will need to establish strong customer relationships to gain customer trust and loyalty. It is found that trust and loyalty are inseparable (Levin, Thaichon, and Thu, 2016). Therefore, by demonstrating service agencies can provide, develop brands, and achieve the business goals, customers’ decision-making would be positive because it has established trust between the two parties. Creative Locals will use integrated marketing communications such as advertising, sales promotion, public relations, direct marketing, and digital marketing to raise brand awareness and increase campaign effectiveness. These elements are the core purpose of communications; informing, persuading, and reminding the public of our brand’s presence. Notifying customers in such ways may gain an advantage, whereby customers are willing to try the services. Constant persuasion can enhance customers’ immediate responses, thereby increasing revenue (Key & Czaplewski, 2017). Thus, it is important to use clear and unique promotions customised to a specific audience because if the message is carefully designed, but the message fails to get to the specific audiences, then there will be no impact on the business (Key & Czaplewski, 2017). Not only that, Creative Locals will adopt the use of art transparency. Through it, potential customers would understand how the agency functions and have confidence with the creative works. Customers will also know the reason for being charged at a specific rate (Cohen, 2017). About your future 4.1 Vision statement We exceed our customers’ goals and aspirations through meaningful and resourceful solutions, thereby adding value to our customers’ visions. 4.2 Mission statement Become a valuable partner of all customers, providing quality strategic consulting and innovative solutions. 4.3 Goals/objectives We aim to increase by 30% of brand awareness and customer base. It is a short-term goal that could be achieved through appropriate marketing strategies and an increase in demand for such services. Our long-term goal would be to establish brand recognition in the market, such as achieving the Agency of the year award in five years. This award recognises the different aspects in terms of brand and advertising communication (Aoyawards, 2019). Therefore, receiving this award will significantly help Creative Locals increase and gain existing and potential customers’ trust. Our goal is to enhance and maintain our customers’ image and reputation and generate favourable outcomes. Action plan MilestoneDate of expected completionPerson responsibleSecure at least five customers for a year or more extended contractEnd of Sept 2021Charissa LeeAgency of the year awardEnd of Dec 2021The whole team of Creative LocalsSecure a sponsorship deal with a local companyEnd of Nov 2021Charissa Lee 5.0 About your finances For our financial statements, Creative Locals will implement a revenue tracking list for our customer contracts and generate a monthly budget. In such a way, the agency will be able to track the profit and loss accurately. As the founder, Charissa Lee will first utilise her funds and experience to contribute and start the business. Financial objectives Creative Locals plan to achieve revenue growth of 15% by the second quarter of 2021. We intend to increase revenue by giving special discounts and gifts as a gesture of appreciation to our customers for their next purchase. This gives them the impression that we went the extra mile for them because they are important to us. Also, analyse the marketing data on customers’ purchases and preferences from previous years on different channels (website, social media, email marketing) to see what strategies and channels work best for our agency. Assumptions Start-up costs for (2019) Balance sheet forecast Profit and loss forecast Expected cash flow Expected cash flowJanFebMarAprMayJunJulAugSepOctNovDecOperating balance$20,000$39,280$58,560$77,840$97,120$121,400$145,680$169,960$194,240$208,520$222,800$242,080Cash incoming Sales$20,000$20,000$20,000$20,000$30,000$30,000$30,000$30,000$40,000$40,000$40,000$40,000Total incoming$20,000$20,000$20,000$20,000$30,000$30,000$30,000$30,000$40,000$40,000$40,000$40,000 Expenses Payroll$30,000$30,000$30,000$30,000$45,000$45,000$45,000$45,000$45,000$45,000$50,000$50,000Advertising and Marketing$2,000$2,000$2,000$2,000$2,000$2,000$2,000$2,000$2,000$2,000$2,000$2,000Utilities$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000Insurance$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000$1,000Rent$4,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000$4,000Software$1,280$1,280$1,280$1,280$1,280$1,280$1,280$1,280$1,280$1,280$1,280$1,280Total expenses$39,280$39,280$39,280$39,280$54,280$54,280$54,280$54,280$54,280$54,280$59,280$59,280 Monthly cash balance($19,280)($19,280)($19,280)($19,280)($24,280)($24,280)($24,280)($24,280)($14,280)($14,280)($19,280)($19,280)Closing balance$39,280$58,560$77,840$97,120$121,400$145,680$169,960$194,240$208,520$222,800$242,080$261,360 6.0 Supporting Documentation Enclosed is my supporting document related to this business plan. Attached documents include: Appendix 1: 7.0 Reference AIG. (2019). AIG My Business Insurance. Retrieved from https://www.aig.sg/content/dam/aig/apac/singapore/documents/forms/aig-singapore-sme-office-package.pdf Agency of the year. (2019, November 22). https://www.aoyawards.com/. Cohen, E. (2017). 5 Unconventional Creative Agency Marketing Strategies. aerie-hero-2.png. https://www.workamajig.com/blog/creative-agency-marketing-strategies. Data Protection Trustmark Certification. Infocomm Media Development Authority (IMDA). https://www.imda.gov.sg/programme-listing/data-protection-trustmark-certification. Definition of Customer Management. CSM – Customer Service Manager Magazine. https://www.customerservicemanager.com/customer-management/. Department of Statistics Singapore. (2019). Business Receipts Index. Retrieved from https://www.singstat.gov.sg/-/media/files/news/qbri4q2020.pdf Frederiksen, L. (2017). Why Agencies That Conduct Market Research Grow Faster. HubSpot Blog. https://blog.hubspot.com/marketing/why-agencies-that-conduct-market-research-grow-faster Half, R. (2019). CFO job description and duties | Robert Half. (2018, November 8). https://www.roberthalf.com.sg/our-services/finance-accounting/cfo-jobs. Ho, G. (2020, September 24). Singapore sees its population fall for the first time in 10 years. The Straits Times. https://www.straitstimes.com/politics/singapore-sees-its-population-fall-for-first-time-in-10-years. How GST Works. IRAS. https://www.iras.gov.sg/IRASHome/GST/Non-GST-registered-businesses/Learning-the-basics/How-GST-Works/#title1. Kappel, M. (2017, January 13). 5 Ways to Build Killer Relationships With Customers. Entrepreneur. https://www.entrepreneur.com/article/282364. Key, T. M., & Czaplewski, A. J. (2017). Upstream social marketing strategy: An integrated marketing communications approach. Business Horizons, 60(3), 325-333. Levin, E., Thaichon, P., & Quach, T. N. (2016). The impact of creative competence and project management on longevity of the client-advertising agency relationship. Journal of business & industrial marketing, 31(2), 274-286. Why small businesses matter. European Bank for Reconstruction and Development (EBRD). https://www.ebrd.com/what-we-do/sectors-and-topics/why-small-businesses-matter.html. Workshops and Events. (2019). Upcoming Events and Workshops | General Assembly. https://generalassemb.ly/education?format=events. Skill Future SG. (n.d). Singapore Workforce Skill Qualifications (WSQ). https://www.ssg.gov.sg/wsq.html?activeAcc=3.