J BXXXXX

RID
creative solutions

Business Plan

OWNERS

Brittany Parker & Bryce Johnston Bridj Creative Solutions 1625 Oak Street
Suite 230 Kansas City, MO 64108 816-872-7303 816-872-7817 brittany@bridj.com bryce@bridj.com

Executive Summary ........................................................................................................................... 2 General Company Description .................................................................................................... 3-4 Products & Services ........................................................................................................................... 6 Marketing & Competition .......................................................................................................... 7-10 Marketing Our Business ............................................................................................................11-12 Niche ............................................................................................................................................. 11 Strategy....................................................................................................................................11-12 Operational Plan .........................................................................................................................13-15 Production ................................................................................................................................... 13 Location .................................................................................................................................. 13-14 Legal Environment ..................................................................................................................... 14 Personnel & Operations ........................................................................................................14-15

Table of Contents

Inventory...................................................................................................................................... 15 Suppliers for Inventory.............................................................................................................. 15 Cedit Policies ............................................................................................................................... 15 Management & Organization ........................................................................................................ 16 Financial Plan .....................................................................................................................................17-18 12 Month Sales Projection & Analysis ..................................................................................... 17 Break-even Analysis ................................................................................................................... 18 Breakthrough Analysis...............................................................................................................18 Cost/Pricing Analysis ................................................................................................................18 Appendices ...................................................................................................................................20-24

Executive Summary
Bridj will specialize in small business creative solutions. Our clients will be developing and small businesses who are trying to get their name out in the large Kansas City market. Our products will include advertisement designs and media purchasing for clients. We will also adjust ads to fit correct publication sizes. The owners are Bryce Johnston, who will specialize in client relations and account management, and Brittany Parker, who will specialize in design and creative direction. This industry is on the incline because as companies try to grow in the tough economy, they will need a lot of advertisement and exposure to gain new customers. The advertising industry is projected to increase by 3.6% each year over the next five years. We believe that if we continue to make effective creative solutions for small businesses in the area, our work will attract more new businesses every year who want to inform people about their new developing business. We will be applying for a loan of $135,000. The money will be used to purchase the necessary equipment to start our business, pay the secretarys hourly wages, and get our business off the ground by making fliers and the necessary connections with local businesses. The money will allow us to create above average work with multiple businesses, which will in turn give us the necessary income to make a profit, which will allow us to pay the loans back.

General Company Description

We are a creative solutions company that will design and create print and digital advertisements for small businesses. Along with this will be medi planning and buying. Our industry is at the mature stage but is not stagnant. We are in a growth industry and things are constantly being changed from traditional to digital but none are completely dead yet. Some changes we foresee in the industry is the continuation of traditional media to digital media and the technology of how we go about creating our products. Some of these are long term having a digital transition but short term factors would be the actual technology itself. Our company will be poised to take advantage of these by starting out with the newest and most up-to-date technology while staying true to traditional but also advancing while offering digital products as well. Mission & Vision Statements: Mission Statement At Bridj we strive to make the unnoticed, noticed. Vision Statement Our vision is to be the go-to agency for small business creative solutions in Kansas City. Company Goals & Objectives: Goals Carter to the needs of small businesses. Be known for our small business niche. Be reasonably priced for our clients while still earning a profit.

Objectives Have high client satisfaction. To have most clients return for more business and become loyal. Business Philosophy What is important to our business is focusing on small business so that the can become noticed and strive as high as bigger companies do and create a close relationship with each client. Our Market Our products are aimed at our market of small businesses. Legal Form of Ownership Bridj is a limited liability corporation because the members of the company will be protected from some or all acts and debts of the company, so as individuals we can not be sued for anything and cant be charged anymore money if our company were to go bankrupt. Our profits are taxed at the member level and not at the company level.
3

Company Strenghts & Core Competencies Strengths Factors that will make our company succeed by creating close relationships and holding loyal clients. Our major competitive strengths are focusing on small businesses and striving for quality products for a reasonable price. Compentencies Brittany Strengths and skills include design and creativity with the use of Adobe products and is experienced in media planning and buying. Also has communication and customer service skills as well. Bryce Strengths include interpersonal communication, problem solving, creativity, general knowledge of design programs and experience in managing talent.

Our services include creation and production of print and web advertisements, media planning/buying of the advertisements for the client and managing client accounts. We are aimed towards small businesses with only having three employees and a smaller business space makes us similar to the businesses that we are servicing. As creative solutions we want to bridge the gap between a clients product and how to get that product out to the customer without a high price for the client or an intimidating big advertising agency.

Products & Services

Marketing & Competition

Market Research
Economics Facts about our industry In the Kansas City metropolitan area, professional and business services experienced the largest increase in employment, gaining 9,900 jobs from August 2011 to August 2012. 5,500 of these jobs were on the Missouri side. From 2010 to 2011, Kansas City dropped in national rankings from 38th to 70th in its conduciveness to small businesses. As of 2008, there were 50,404 small businesses in Kansas City. Growth potential and opportunity for a business of your size. - The advertising industry is on the incline in 2012, and the digital age will allow for smaller firms like us to use our knowledge of social media strategies to give the best image to the client. IBIS World projects digital media will allow for a steady increase in revenue in the industry over the next five years. Advertising as a whole is a $31.3 billion industry, with around 12,000 businesses. Our main focuses will be media planning, creative services, and other creative solutions which account for about 20% of the market share. Our main barriers to entry will be consumer acceptance and brand recognition. Being in a larger market with a lot of agencies makes it difficult to get started. The costs will not be as much of an issue because of our small needs equipment wise, and only having to pay one hourly employee. We will overcome the barriers by focusing on the needs of small businesses in the Kansas City Metro area. Our affordability will allow us to gain clients early because it appeals to businesses that need to jump start and get their name out there. Our competition will not be the really big ad agencies because they are going to be dealing with larger clients, whereas we will focus more on small and developing businesses Effects to the company: Change in technology In the digital age, technological change is inevitable. Keeping up-t-date with the latest technologies is key when trying to keep clients relevant, so we will have to keep our softwares upgraded regularly, and hardware when necessary. It will also be important for us to keep up with the changes in social media technologies, and ensure the clients who want to will be kept in the loop in those realms. Change in government regulations Because social media is still new, the government has not starte to make many regulations regarding this. However, our company will have to be flexible in order to maintain success will abiding by regulations the government may start making to control social media. Also, creative property guidelines will have to be set (i.e. if we make a logo for somebody, who owns the rights?), and will have to abide by government regulations if they are to change.
7

Change in the economy If the economy continues to decline, businesses will not be able to afford as much advertising and media as normal. This will actually benefit us, because of our pricing structure and appeal to smaller businesses. However, if the economy starts to negatively affect our business, certain changes will have to be made to account for losing business. Change in your industry The advertising industry is always changing with the way the market fluctuates and audiences become bored of old ideas. This means we will always have to be looking ahead and preparing for these changes, and adjusting with each clients target market. Product Simple and unique advertisements that build a bridge between a product to a customer to the service of the company providing it. Features Unique and individualized performances for each service. Aimed toward small businesses and is a small business as well. Fair a reasonable price set for small businesses. Benefits Close relationship with client. Support and follow-up before and after services. For every return of a client there is a discount rate on prices. Customers The businesses we work with will be limited at first to the Kansas City, MO area, and branching out over time if possible. Because we will be located downtown, ideally we would like to stay as close to home as possible when we start out, but we will take what we can get at first. Our main customers will be small and developing businesses. We would like to keep our prices affordable for businesses trying to get off the ground, so the businesses we work with will not be high income businesses at first. Our goal is to maintain these clients throughout the growth process. Competition Entrepreneur Advertising Group 2120 Washington St., Kansas City, MO This company is similar in almost every way to ours. They focus on start-up businesses as their clients, but have some clients with a yearly income over 100-million dollars. They are also a location rival, located just a few blocks west of our location.

Marketing & Competiton continued...

Competition continued... Graphicmachine 2300 Main Street #900 Kansas City, MO This company is a very small but successful full-service digital creation agency. They are a location competitor because they are also just a couple blocks from our planned location. They focus mainly on interactive design, mobile applications and marketing strategy. These are all services we offer as well, and they have a structure to their business similar to ours.

Our competitive advantages are that we are a small company that pays a lot of attention to detail by limiting our client base to small and developing businesses, and giving them as much attention as possible. We have a good location in the downtown Kansas City area, very close to the Kauffman Center and other artistic landmarks. We have good people who can make the right decisions and have a high amount of creativity. Our main disadvantages stem around the fact that we have yet to establish ourselves in any way. It takes time in this industry to build a good reputation and get the repeat clients to maintain a steady income. We will turn our youth into an advantage by relating to the clients we are trying to attract, those being young and small businesses.

Table 1: Competitive Analysis Factor Me

Our product will be one of our advantages because we can pay more attention to detail with less clients. We will be middle of the road price to help small businesses afford our work. Our quality of work will be what sets us apart from most small firms. We will pride ourselves on our service and attention we give our clients, which is what a small firm is all about. Our reliability still has to be established with our clients. This element will also take some time to establish.

Strength

Weakness

Competitor A
They offer similar products.

Competitor B
They offer a similar product as us, but do not handle media buying.

Importance to Customer 4

Products

Price Quality Selection Service

X X

EAG has slightly higher Graphicmachine has a prices than us, for simi- similar pricing structure lar clients. to us. They have high quality, but they use a lot of similar layouts for sites and ads. Very high quality, they try to focus on keeping a low amount of projects to ensure quality.

2 5

Much like us, they They provide excellent have a small firm and service which is how low amount of clients they continue to attract so they can give each small businesses. client more attention.

Reliability Stability Expertise Company Reputation Location Appearence Sales Method Credit Policies Advertising Image

X X X X X X X X X X

They have to be reliable It appears they are reliable based on the in order to continue reviews from their getting clients. clients. EAG has been around for a while, and seems to Graphicmachine has stable company. be very stable. They have a large amount of experienced employees with a lot of expertise. They have a solid reputation with new businesses. Located right by us They have very few areas of focus, which allows them to have higher expertise in those areas. They are smaller but still have a solid reputation. Also located close to us in downtown

4 3 5 3 2 3 3 3 1 4

We are young and have little experience right now, so we will have to gain our expertise over time. We do not have one at all. We are located in a great spot in downtown KC. We will have an attractive facility. We plan on being soft sell and using connections to gain new clients.

I have not been to their location, but the pictures They have a nice facility as well. make it look nice. They do a good job of selling their image to small businesses. They do not sell hard at all, and they are selective about who they try to attract. I could not find any info I could not find any info on their credit policies. on their credit policies. They advertise a little, They do not do a lot of but not overwhelming. advertising. They have a solid image They have the innovaof working with small tive image with creative businesses. designers.

We do not sell on credit. We will not invest a lot in our own advertising. Our image of being a young, innovative company will help us.

10

Marketing Our Business

Niche
Our niche is small business clients. We strive to let the smaller companies achieve as big of goals as bigger companies that have an advantage over the smaller. This is unique because like our target clients, we are a small company as well. With this we can build strong and lasting relationships with our clients.

Strategy
Promotion We will get the word out to our possible clients via direct mail to small businesses in the area and by word of mouth through networking. Our advertising of direct mail will be print and at least once every two months because it shows that we are consistent but not obnoxious or too desperate. We will be using this because it is directly to the intended clients that we are striving for and makes it more personal and shows that we are caring and what to create a relationship with them. Our methods of promotion are little-to-no cost, with word of mouth and networking having no cost and direct mail being fairly cheap and easy to do. The image that we want to project is that we are small like them and we want to create long lasting relationships with them and provide our quality work to them as more than just clients. With this, we want our clients to see us as open and as people just like them, a small business working for small businesses. In addition to our advertising we have a logo that will be on any piece that talks about our company or anything from us to potential or current clients. Along with this we will have it posted throughout our location. Promotional Budget To send out flyers directly in the mail it is about $12 for every 50 flyers, which we would do about every two months prior to start up. After startup we can then send brochures for about $38 for every 50, with the same time frame. Pricing Flat Rates Creation of an ad: $135/piece Advert coordination(negotiation w/ publication): $100/publication Resizing for each publication: $25/publication. Discount Rate Every one year a client is a loyal customer the price will drop 10% with a total percent off up to 30% for a total of three year loyalty program. This allows us to keep repeat customers, in the hopes they will refer us to other potential clients. Methods of Prices We base our pricing off an average because the amount of effort put into each client varies, we have a set price for our quality creations to give our creative team substantial credit for their efforts.
11

Methods of Prices contiued... We base our pricing off an average because the amount of effort put into each client varies, we have a set price for our quality creations to give our creative team substantial credit for their efforts. Our flat rates are based off rates of both freelance and company based competition. Our methods of setting prices low enough for small companies but high enough for our quality work. Our pricing strategy fits with our competitions prices because our prices are slightly below the average. Their prices are typically higher than ours because they are freelancers and they have a lower number of clients and spend a greater amount of time with the client on each individual piece of work. The competitive factor is important but we dont intend our clients to make their purchasing decisions based solely on price, but also on our creative and quality work. Customer Service & Credit Policies Each client will have an account in which all records are kept. Once the client and design team have agreed on a final product the client will pay the creation price and negotiate the coordination and resizing based on the publications the client and the account team decide on. Payment methods will be check or credit card via Intuit GoPayment via iPhone or iPad. Clients will be able to reach Bryce or Brittany via secretary during typical work hours of 9-5 but if needed clients can contact us directly after hours when needed. Our location is not necessarily a prime importance because clients dont have to come to us for meetings because we could also come to them. But more importantly we can do meetings and business online and send things to our clients without having to meet up. If clients come to the place of business it is conveniently located in downtown Kansas City near other agencies and close to the Kansas City Star and Kauffman Center. Attached to the offices building is a free parking lot as well. The office space is classified as a creative/loft which suits the creative solutions atmosphere and clients should expect a more creative environment when coming to a creative solutions business or a business related to advertising. They are typically filled with creative things and have a modern and industrial feel, which is similar to our office space. Its a small work space for the aimed clients of small businesses. We are in the vicinity of our competitors which is good because we can be in the same environment that they are in and live like how they are and become inspired like how they might be from their location and feed of our competition. Plus, if clients are shopping around for creative solutions in the area then they are more likely to find our business. Distribution Channels We sell our services via web and our own sales force via word of mouth, networking and social media marketing and direct mail marketing to small businesses.
12

Proposed Location

Operational Plan
Production
Production Techniques & Costs Our production techniques will feature using optimal technologies to design print and web ads, as well as digital media. Many of our costs will be up front, including buying the computers and tablets ($7400). Costs of samples to show to clients will also be included, and will vary depending on the paper and printing quality and size. We will use feedback from clients to maintain a level of quality we see fit for our business. Return clients will be our biggest asset, so making sure they are satisfied with the quality of our work is key. Customer Service All customers will contact us through our secretary, and issues that cannot be handled at the front desk will be forwarded on to Brittany or Bryce, depending on what part of the company the issue deals with. Product Development Our product is not so much physical as it is creative, so developing our product will happen as we continue to impress clients with our work. We are selling ourselves more than anything, so client relations and maintaining an image will be a big part of our development.

Quality Control

Location

Physical Requirements Amount of Space 1,620 square feet of space. It will feature two large desks but the workspace for Brittany and Bryce will be wide open. The secretary will have a desk in the front area when people walk in. There will also be a conference room for meetings with clients if necessary, but most meetings will be in the open to allow for a relaxed atmosphere and better communication. Type of Building The location is the upstairs suite in a larger building. It is a loft style, with windows facing the street on two sides. It has hardwood floors and is very open. Power & Other Utilities The building just has to be able to handle good wireless internet connection throughout. Also, good connection to wireless phones and 4G.

13

Access Because we are a company that has the ability to take our work anywhere, access for clients is not a major priority. It is convenient that we are located very close to a lot of small businesses in downtown Kansas City, which makes it easier for us to come to them. We will not have to do any major construction on the building, just some rearranging based on comfort and usability. Having a lot of parking spaces is not a big deal, but we will have enough that clients who drive to our location will be able to park very close to the building. Cost Rent $12/SF/Year - 1,620 SF - $1,620/month Utilities Electricity + Water: $170/month (average based on seasons) KC P&L Insurance Renters insurance - $20/month Furniture Budget $500 each for desks for Bryce and Brittany, $200 for the secretary desk. $500 for couch in the entryway. More expensive comfort furniture will be acquired as we make more money, along with miscellaneous creativity supporting items (dart board, ping pong table, love sac etc.) We will have a large table in the conference room with 6 chairs to go along, totalling $1700. 9 am to 5 pm Monday through Friday.

Business Hours

Legal Environment

Health, Workplace, & Environmental Regulations Location Regulations Regulations regarding locations of advertisements will be discussed with clients. Although we will have to deal with these regulations more when media buying, the clients will need to be kept up with what they can and cannot due. Insurance Coverage Trademarks, Copyrights, or Patents (pending, existing, or purchased) Because we base much of our business around creativity, ensuring that credit for ideas and designs is appropriately given is important. If we design logos for a company, they have the right to give us a one time payment (based on the work put in) to own the rights to that design.

Personnel & Operations

Number of Employees Three Type of Labor There will be very little physical labor if any. The labor will be skill-based in the areas of creativity and account management, as well as secretarial work. 14

Operational Plan continued...

Finding Employees For our third employee, we will have a posting on three or four job-posting sites, and go through a selective screening process complete with background checks. We will look for someone who is organized and trustworthy, but also is enjoyable to be around and very personable. Often times the secretary is the first person a client sees when they walk in, so they can set the tone for the entire meeting right away. The secretary will be paid hourly, most likely $12/hour starting out. Brittany and Bryce will make their money split based on the income, and designate a salary after the first year to have an idea how much profit the company is bringing in. We will run a Laissez-Faire leadership style, allowing our employees to be themselves and get all the creative juices working. Leaders will only crack down when necessary, and employees will be expected to be problem solvers. Training The only training that will need to be done is for the secretary. Once we have the person situated, it will mainly be learning what we expect in terms of fielding phone calls and emails, handling the customers, and how to work the scheduling programs to ensure everything runs smoothly.

Inventory
Will not be needed for our size of space and company.

Suppliers for Inventory

Will not be needed for our size of space and company.

Credit Policies

We will not sell on credit. Payments will be made for creative elements after the design has been decided, and the rest will be negotiated and paid for based on the amount and location of media.

15

Management & Organization

Bryce and Brittany will manage the business on a day-to-day basis with a secretary sending and receiving phone calls and emails and doing simple tasks such as setting up meetings with customers and housekeeping. Both have experience in advertising with Bryce being account side and Brittany on the creative side. If Brittany were to be lost or incapacitated the business shall continue with Bryce and vice versa if Brittany were to be lost/incapacitated. Employees Bryce Account and Financial Director Managing accounts, meeting with clients in person and through various communication outlets, balancing schedules and budgets to ensure client satisfaction and reference, handling business transactions, and networking.

Brittany Creative and Art Director Create and design print ads, web ads, website for customers, manage and analyze social media accounts for the business and clients and develop social media strategies. Media planning and buying for clients. Secretary Sending and receiving phone calls and emails and doing simple tasks such as setting up meetings with customers, housekeeping and fulfill duties as needed.

16

12 Month Sales Projection & Analysis

Low Three clients 2 ads each ($810) 5 publications per ad ($4000) 1 re-sizing per publication ( $950) Total of $5,760 Five clients 3 ads each ($2,025) 7 publications per ad ($10,500) 1 re-sizing per publication ($2,625) Total of $15,150 10 clients 3 ads each ($4,050) 7 publications per ad ($21,000) 1 re-sizing per publication ($5,250) Total of $30,300

Financial Plan

Medium

High

The low months will be the months when we first start out, as well as the slower months in the ad industry which are March through May, and September through October. The high months will be more common as we gain clients, and during the Holiday and Summer months, when companies are really looking to advertise and get more business. If it were to be straight averaged between the types of possible months, the 12-month income would be $204,840 before taxes. With the high and low month format established, and based on the amount of high volume months and low volume months, income would be (5 slow months, 4 high months, and 3 medium) $195,450 before taxes.

17

Break-Even Analysis

Breakthrough Analysis
Based on average monthly sales and gradual increase, the breakthrough point will be 10 months after the first year, or 22 months after the initial start of the business.

Cost/Pricing Analysis
In order to determine the cost of our work, I took rates I found from freelance designers as well as advertising firms and found a balance based on our labor as a two person company. Because our total expenses are $13,000 /month, and we are assuming an average of 3 clients at one time, our hourly rate ends up being roughly $27/hour in a 40-hour work week.

18

19

Appendices
Maps & Photos of Location ............................................................................................................. 21 Industry Studies ............................................................................................................................... 22 Brochures & Advertising Materials .............................................................................................. 23 List of Equipment Owned or to be Purchased ........................................................................... 24

20

Map & Photos of Location

21

Industry Studies

22

Brochures & Advertising Materials

Flyer

Brochure

23

List of Equipment Owned or to be Purchased

Two desks costing $500 total. One secretary desk at $200. One couch for $500. Dart board to be purchased after making profit. Ping pong table to be purchased after making profit. One conference table with six chairs for a total of $1,700. Two iMacs costing $6,000. Two iPads costing $1,400. One MacBook Pro costing $1,200. One flat screen television costing $650. Three landline telephones costing $300.

24