BUSINESS PLAN
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Ti Zhao Summer 2012 Professor: John Schaffeld Entrepreneurship for Designers-IDUS-733-01
TPBS Branding service I
Env des ironm ign ent
CONTENT Executive Summary I. Market Analysis - General study of Branding Services in China - Target Market - Competition - SWOT Analysis - Strategies for Countering Weakness - Strategies for Countering Threats - Interview Report II. Marketing Strategy - TPBS’s Mission - What Makes us Unique - Partnerships - Sales Strategies
III. Service Design - TPBS Service Design Strategy - TPBS Service Process - Pricing IV. Promotion - Branding - Web Advertising - Social Media V. Organization Plan - Legal Structure - Management Team VI. Financial - Investment Request - First year Financial Forecasting - Exit Strategy
Executive Summary In China, people are starting to pay more attention to brands. The most successful brands have risen in value and significance, improved in quality and reliability, and developed an extensive presence online. The growing stature of Chinese brands is reflected in their international presence in categories as diverse as alcohol, apparel, appliances, finance, pharmaceuticals and technology. Even the large State Owned Enterprises (SOEs) are more brand-focused because of increased competition at both home and overseas. It has also been observed that many large manufacturing factories with long histories have a strong need to transform from manufacturers to innovators. However, some other small and medium sized Chinese manufacturers still pay too much attention to production and sales but ignore the importance of brand development. Based on observations of the Chinese economic and cultural status quo and solid research on the development of Chinese brands, this business plan will talk about a branding service intermediary agency which mainly serves small and medium Chinese manufacturers. Via a native knowledge of the Chinese language and culture, we want to help these manufacturers by building connections between these companies and experienced American brand consulting services.
I
Market Analysis Understanding my clients’ situation and needs is a crucial factor for our success.
General study of Branding Services in China For finding and understanding my target customer, I did research on Chinese industries and their perception of brand and branding services. Here are some my findings: • The growing stature of Chinese brands is reflected in their international presence in categories as diverse as alcohol, apparel, appliances, finance, pharmaceuticals and technology. • Even the large State Owned Enterprises (SOEs) are more brand-focused because of increased competition at home. • Many manufacture factories have strong needs transform from manufacturers to innovators. • Some Chinese brands are not ready to explore the international market but still want to build a solid brand image in the domestic market. Regarding Chinese branding perception of brand and branding services, people in China are starting to pay more attention to brands. The most successful brands have risen in value and significance, improved in quality and reliability, and developed an extensive presence online. • Methods by which companies have created a strong brand are: Reaching the large, lucrative, and complicated youth market adjusting their branding strategies to both cities and the countryside. • Altering the advertising and marketing media mix to leverage the exponential growth of mobile communications. • Connecting with online consumers by understanding how and why they use the Internet. • Adopting social media to make a maximum brand impact. • Reconsidering the impact of a more free market on SOEs (state-owned enterprises.) With competition comes the need (and opportunity) to brand their offerings. • Exploring the unabated desire for luxury and the cultural forces that drive it. • Using online marketplaces to establish a compelling presence in the rapidly evolving world of e-commerce.
Target Market
It has been reported that most small to medium sized manufacturers in China still do not have strong awareness about brand management. These manufacturers, have historically made their profit from mass production, low price, and ordinary quality. In the rapidly developing Chinese economy, product offerings with these features are attracting fewer and fewer consumers with their growing sophistication and different needs. These companies need branding services, which can strengthen their competitiveness in a crowded and chaotic market environment.
Competition There are some international brand consultant firms working with Chinese companies. In my research, MillwardBrown is a very strong global brand consultant agency. Their success relies on a strong research platform, WPP plc. Millward Brown is a global company focused on brands, media, and communications. It is part of Kantar Group, the insights arm of WPP plc, and is the world’s second largest market research organization after Nielsen Compan Their services: Brand & business strategy/ Brand & customer experience/ Consumer needs & values / Creative development and campaign evaluation / Market research / Marketing accountability & brand valuation / Media effectiveness / ROI & forecasting There are also few Chinese consultancy firms that are helping in-country companies looking to expand their brand. The most successful one is China Bridge. They are familiar with the Chinese cultural and commercial environment. They collaborate with many international firms for research and innovation consulting. Their services: Trend Report/ Culture, Social and Consumer Behavior Analysis / Aesthetics Analysis, Color - Material - Finishing / Persona Building / Product, Service or Brand Effectiveness / Competitive Analysis / Industry Reports / Forecasting Many of my competitors are large in scale and strong in experience, however China is a diverse market with many opportunities in terms of brand consulting. For example, at Millward Brown they mainly focus on entire industries who want get into the international market or large State Owned Enterprises who want to create more connections with their local customers and compete with competitors in home. However, there are opportunities in China for smaller branding projects. For example, many individual factories want to transform from commodity manufacturers to market innovators with their own brand.
SWOT Analysis Strengths
S
Comparatively affordable service fee Bilingual ability Native knowledge of China and its markets An educated awareness of “Brand” Experience with the particulars of Chinese business culture
Opportunities
O
Global brand consultants pitch for large accounts. I can focus on smaller companies they tend to pass over As a small scale firm we are more flexible on strategy change, service process adjustment and price offer While I reside in the US, I can make personal connections with American brand consulting companies
Positive
W
Weaknesses
What I have learned about branding is from school. I have limited practice in real life Lack of work Visa Unfamiliarity with the Laws concerning non-citizens doing business in the states
Threats
T
We don’t have the same resources in financing, service diversity, and partnership building as global brand consulting companies Our business model could be copied by other entrepreneurs if we don’t prepare commercial defensive mechanisms
Negative
Internal Factors
External Factors
W
eaknesses
hat I have learned about branding from school. I have limited practice real life ck of work Visa nfamiliarity with the Laws ncerning non-citizens doing siness in the states
Internal Factors
Strategies for Countering Weakness I will expand my educational knowledge by talking with people, who are experienced in brand consulting field, my target customers with their real needs, and marketing strategists who can advise me in operational planning. When I am finding my partners, I will look for people who have practical experience in brand consultancies. Partner with someone who is legal to set up a business in the States. We will find a legal adviser to take charge of our legal transaction and operations.
Strategies for Countering Threats We will pay attention to the uniqueness of our business model. As a branding services intermediary agency, we will gain money from different channels.
We also will create a proprietary methodology to avoid other people copying our business model. In some cases, we would like to convince our later competitors who have special resources and channels to merge with us for mutual benefit.
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Interview Report Interviewee 1 : Strong Wang Researcher at WSF, Steelcase MFA: Design Management Interviewed by phone call Past experience: Co-Founder, Design Researcher and Design Strategist at the Volta Collaborative Chief Executive Officer at International China Art Union; Experience Designer at American Homeowner Preservation, LL; Teaching Assistant at Savannah College of Art and Design Interviewee 2 : Tommy Hardy Professor of Design Management, Savannah College of Design and Art B.I.D., Auburn University Interviewed by mail Past experience: Design strategist operating consulting firm Verbal-Visual Framework; consulting experience includes Coca-Cola, Ford, JP Morgan, Lenovo, Lowe’s, Maytag, Merck, Polaroid, Procter & Gamble, Samsung, Tupperware, Verizon and Xerox; prior to operating consultancy, employed at IBM Corp. for 22 years: started as industrial designer, followed by location and division design management positions, then appointed corporate manager of the IBM Design Program responsible for worldwide product design and brand identity
•
Chinese have a different understanding of brand.
•
Address your clients’ concern whether they will see a return on investment (ROI) from your service.
•
Discover what services are currently offered by successful brand consulting companies. Make my consulting service list by assessing my strengths, education, and experience.
•
Another way to beat your competitors is to collaborate with them.
•
Investigate more about the relationship between Chinese brands and the brand culture of China.
•
Think about both the opportunities and challenges that the Internet brings as an emerging communication medium.
•
Based on the understanding of my client’s culture, customers, and national conditions, I should convert my brand consulting language into vivid and clear language that my customers can easily understand.
•
Speaking Chinese is a coveted skill in the brand marketing industry.
•
Confidence, personality, patience and fortitude are important for starting a business.
•
Have money to live on for two years, including business travel
•
Because of the simplicity and low costs, a sole proprietorship business model is recommended for individual consultant.
•
Ensure your business idea is viable, unique and competitive
•
Clearly define your target market and clients
•
Venture capital is appropriate start-up money for a small brand consulting agency
•
Accurate niche target market positing, proprietary methodology and experience will lead to a success.
II
Summary of the Business The strongest service providers are those that have the best reletionships with their partners.
TPBS’s Mission Trans- Pacific Branding Solutions (TPBS) is a branding consulting intermediary agency aiming to provide an access between American brand consulting agencies who want to explore the expansive Chinese market and Chinese manufacturers who have a need for accurate and affordable global branding consulting services. TPBS has a small but highly trained team, each member specializing in different areas of our core services; An understanding of particular Chinese business practices, a native knowledge of Chinese cultural context, an educated awareness of “Brand”, and relationships with larger American branding consultancies with whom we can access advanced offerings to provide our customers with a la carte services as needed. Via media promotion through multiple avenues, building a company website, and attending relevant conferences, we will find and attract connections that would be our potential customers in future.
What Makes Us Unique Our networks about brands, communications, research and media channels. Our ability to recognize and integrate the multiple complementary disciplines to custom services to fit different clients’ needs. Our understanding of our clients in culture, history. Our focus- we do not try to be all things to all people.
Why we do what we do According to my research, Chinese small and medium sized manufacturers usually have four concerns about engaging professional brand management services: 1. They believe manufacturers with small and medium size don’t need brand management during their early stage of development. 2. A massive influx of funding will be needed for branding services. 3. Brand services cannot increase revenue in the short term. 4. Truly successful brands take a lot of time to build. Via my understanding of branding and knowledge about Chinese industries I would like to explain WHAT WE DO IS NEEDED FOR OUR CLIENTS. 1. Well designed brands not only could help these manufacturers withstand risks that will happen later on in their operations but also would bring these manufacturers long term recognition and trust from their customers. In short, an accurate brand position allows small and medium manufacturers being unique and competitive in their field and ensures a lasting and stable development in future. 2. Actually, instead of a lump-sum investment in their branding, they could invest incrementally in their brands. Services like positioning their brand, creating a brand philosophy, and building branding strategies work best when done in the early stages of a newborn business. Then once those companies accumulate more capital, they can spend more money on promotion channels to strength their brand influences. 3. First, appropriate brand strategies can effectively reduce marketing costs without blind and useless advertising. Second, even distribution channels, selling agencies, and promotional techniques could generate quick profits for small and medium manufacturers but well-designed brand strategies are the keys to keep a sustained growth in their sales. 4. To build brands with good reputation in a short time is possible. With appropriate brand strategies small and medium sized manufacturers could use their own advantages to promote themselves. For example, compared with larger scaled competitors, they are more flexible and innovative in production and sales. These attributes could be at the core of their branding strategies in competing to build their unique brand images.
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Partnerships r
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As a branding services intermediary agency, I would like to collaborate with both brand consulting agencies in the States as well as with some Chinese language experts, research groups, and some other Chinese companies who could help me offer my clients flexible services to fit their diverse needs. These strategic partners will help me become unique and competitive in the branding service field.
gn i s e d b iesfirms with whom we desire to build relationships. For technical partnerships, we are looking for appropriate brandeconsulting W ncservices, price, and speciality will help our Chinese clients Collaborating with brand consulting agencies with their different scale, e agservices that we can not offer ourselves. Our focus- we do not by giving them access to more flexible and appropriate branding try to be all things to all people. For strategic partnerships we are looking for companies who are experts in certain areas, such as research and online marketing. With a mutual beneficial relationship, both TPBS and these companies would become more competitive in our respective fields.
tio a rn e t In erts exp
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Brand consulting experts
Landor
Landor
Interbrand
Prophet
MillwardBrown
Eggstrategy
Marshall P & rog In re no ss va ive tiv e M Lo ult ca ipl tio e ns D Cl ive ie rse nt s
M Pa utip rtn le er sh ip s D Se ive rv rse ic es
Lo Hi ng st or y
C Va om lu pa at ny io n
Technical Partnerships
Ideal Technical partnerships Brief Introduction Landor
http://landor.com/#!
Landor Associates is a San Francisco-based brand and creative design consultancy. Founded by Walter Landor and his wife Josephine in 1941, Landor pioneered many of the research, design and consulting methodologies that are now standard in the branding industry.
Interbrand
http://www.interbrand.com/en/Default.aspx
Interbrand, a division of Omnicom, is a global branding consultancy, specializing in vast brand services including brand strategy, brand analytics, brand valuation, corporate design, digital brand management, packaging design and naming. Today, Interbrand is among the world’s largest brand consultancies, having grown to include 42 offices in 28 countries.
Prophet
http://www.prophet.com/home
Prophet is a strategic brand and marketing consultancy with operations in the United States and Europe that specializes in brand, marketing, design, innovation and analytics.
Services Brand architecture Brand engagement Brand identity Brand strategy Branded environments Corporate identity Research Verbal branding & naming Brand strategy Brand analytics Brand valuation Corporate design Digital brand management Packaging design and naming
Brand Marketing Innovation Design Analytics Digital
Ideal Technical partnerships Brief Introduction MillwardBrown
http://www.millwardbrown.com/Home.aspx
Millward Brown is a global company focused on brands, media and communications. It is part of Kantar Group, the insights arm of WPP plc, and the world’s second largest market research organization after Nielsen Company.
Eggstrategy
http://eggstrategy.com/
Interbrand, a division of Omnicom, is a global branding consultancy, specializing in vast brand services including brand strategy, brand analytics, brand valuation, corporate design, digital brand management, packaging design and naming. Today, Interbrand is among the world’s largest brand consultancies, having grown to include 42 offices in 28 countries.
Marshall
http://www.marshallstrategy.com/index.html
At Marshall Strategy, they take a collaborative approach to positioning, identity, naming, and brand architecture, resulting in ownable and sustainable brand strategies that can be executed across media. This approach has proven successful for clients including Adobe, CNN, Sony, McAfee and Disney.
Services Brand & business strategy Brand & customer experience Consumer needs & values Creative development and campaign evaluation Market research Marketing accountability & brand valuation Media effectiveness ROI & forecasting Consumer research, Uncovering actionable consumer insight Uniquely strategic consumer segmentation Market and category trendspotting Brand building and positioning Portfolio optimization Brand innovation or re-innovation Downstream product and communication optimization. Branding Corporate Identity Strategy Positioning, Messaging Brand Architectures Naming
Strategic partnerships
Online Marketing in China is different to that in Western countries. Chinese online users have different habits and experiences in how they use the Internet. To run a successful online business in China requires an online marketing agency as a partner that is familair with the desires of Chinese online users and has experience with online projects in China.
The bigger size of the hexagon reflects the stronger need to build a partnership. Chinese customers with different consuming habits have different experiences with brands. A Chinese research firm who has experience with quantitative and qualitative research could help us to efficiently approach Chinese customers.
Local research group
Online marketing expert
Website designer
International trade expert Translation expert Having an international trade firm as partner would help my clients who want to engage the global market make better decisions and implement strategies with lower risk.
A well-designed website is an important essence of a successful brand. Websites in Asia look different. Chinese companies have different taste and needs with website design, so a Chinese professional website design firm could be really helpful for my branding services.
Taking on a proper translation agency will not only help with communication problems in our brand consulting intermediary services, but also an experienced translation agency could eliminate the unnecessary administrative apparatus, thereby maximizing efficiency and reducing overall costs.
Ideal Strategic partnerships
http://www.horizon-china.com/
Local research group
Horizon Research, founded in 1992, provides services for marketing research, public opinion polling, policy analysis, and enterprise internal research. Horizon Research accepts commissions from both domestic and overseas enterprises, including governmental and non-governmental organizations. It conducts quantitative and qualitative research independently. Over years of practical experience, Horizon Research has grown to outperform its competitors both in understanding its clients’ needs and tailoring specific services to fit those needs. Through the end of 2002, Horizon Research has conducted more than 5,000 research projects in many areas including telecommunication, medicine, cosmetics, personal health-care products, beverages, foods, home appliances, real estate, commercial buildings, fashion, office furniture, entertainment, mail & post services, and tourism; However, Horizon Research primarily focuses on consumables, pharmaceuticals, information technology, real estate, automotive manufacturing, media and entertainment, and finance and insurance.
Online marketing expert
http://www.3digitalminds.com/tw/ 3digitalminds is a full service Internet marketing agency with a focus on web process design, performance marketing, online brand building and online marketing consulting. It has several years of experience in the Chinese online market and many well-known international companies
Ideal Strategic partnerships
http://sinolat.com/
International trade Experts
SinoLat is an international consulting firm specialized in market entry and expansion services in the MERCOSUR, Greater China and Spain. Our main purpose as an international consulting firm is to make the internationalization process of your company a successful experience through the right strategies and an optimal implementation. We increase the presence of your company in international markets while generate more revenue for your business. If you strive for the growth of your business, Sinolat is your partner that helps you make better decisions an implement them at high cost efficiency and low risk. http://f-alternativetranslation.com/
Translation experts
Web Designer
Foreign Alternative Translation is providing superior language services to clients in Asia and around the globe. After years of collaboration with traditional translation agencies, our members are well aware of the structural and operational flaws of such companies. This experience has led us to reject that for a more innovative model based on a highly flexible structure and a common set of values. As a result, we are committed to a more professional, fairer and simply better way of doing business in the field of language-related services.
http://www.woncent.com/ Chinese Woncent is a professional Chinese websites design company. This company started in 2001 mainly targeting at Chinese market. As they start a new project, they only pay attention on website layout and appearance, but also concentrate at consumer psychology and user habit.
III
Service Design A flexible service offering is the key to our success.
TPBS Service Design Strategy Industry Status Industry Reports Competitive Analysis Culture, Social and Consumer Behavior Analysis
Brand Diagnosis Brand Attributes Organizational Attributes Brand Equity Evaluation
Brand Consulting Services TPBS Own Branding Service Liaison Service
Liaison Service
Act as intermediary between Chinese and American Companies As a paid consultant of the Chinese companies. Represent their business interests
TPBS Own Branding Service
The major revenue of TPBS in this period would come from two sources. One will be the TPBS brand consulting service fee and the other will come from a liaison service fee. We will target Chinese small and medium manufacturers that want to get professional branding to compete in a crowded, but largely undifferentiated domestic market. After research and analysis of these Chinese manufacturers, we will provide our customers with an industry status assessment, which will include an industry report, competitive analysis, and a culture, social and consumer behavior analysis. Then based on our knowledge of branding management, we will give a brand diagnoses to our customers. We will offer TPBS brand consulting services to our customers with an affordable price. If these manufacturers want advanced brand consulting services, we will introduce them to the proper American brand consulting company for their needs with whom I already have established a relationship. By knowing the different specialized fields of these consultancies, these Chinese firms will waste less time and money in finding an appropriate brand consulting.
TPBS Own Branding Service TPBS Branding service I
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If our clients choose TPBS brand consulting service, we have enough confidence and technical strength to offer our clients branding services such as Logo design, Environment design, Corporate identity (CI/VI), Naming, and Wayfinding/ Signage design.
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WHAT TPBS OFFER
TPBS Branding service II
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TPBS Branding service I
Env des ironm ign ent
TPBS Branding service II
ate /VI) I por Cor tity (C n ide
TPBS also offers our clients branding services such as Social media, Web design, International branding by collaborating with online marketing firms, international trade consulting firms, and professional web design agencies.
Pricing Liaison Service Introduction Fee Quality Follow-up Service
$ 888 $ 388 / Month
TPBS Branding Service I Logo Design
$188
3 concepts / 2 revisions
Naming
$188
3 concepts / 2 revisions
Environment Design
$268
3 concepts / 2 revisions
Corporate Identity
$588
4 concepts / 3 revisions
Wayfinding/ Signage Design
$268
3 concepts / 2 revisions
Social Media
$268- $368
Price detail depends on the partners my clients choose
Web Design
$200- $800
Price detail depends on thr partners my clients choose
International Brand building
$400- $800
Price detail depends on the partners my clients choose
TPBS Branding Service II
IV
Promotion As a branding service provider, effectively branding our own company reflects on our own abilites.
Naming and Logo Design
C: 0 M:99 Y:97 K:0
C: 100 M:100 Y:31 K:24
C: 0 M:0 Y:0 K:100
C: 0 M:0 Y:0 K:60
Naming: Trans-Pacific Branding Solutions ( TPBS): Trans-Pacific refers to our business targets, China and the United States. Branding solutions means our services areas are about brand consulting services and branding intermediary services. Logo shape: The logo is shown as jigsaw puzzle elements attaching the Chinese and American territorial maps. This represents our skill in bringing together the two very different elements of Chinese and American business practices. Logo colors: I picked red and blue from the Chinese national flag and the American national flag color. Black and Grey are text colors making the red and blue stand out.
Brand Attributes
Resourceful
Affordable
TPBS has strong networks. We collaborate with multiple resources to maximize our branding service.
TPBS custom branding services is based on clients’ real needs and budgets.
Efficient
Appropriate
TPBS aims to help our clients get the most effective branding services in the shortest time.
TPBS offers our clients optional services to fit our clients’ situations and needs.
Name card
Connecting Eastyour with business West. Connecting
Zhao Ti
Partner
with the world
T : 912 412 XXXX F : 912 412 XXXX Adasd St, Aassds dsd, United States, 030001
Front side
Slogan Connecting East with West.
www. tpbsbrand.com
Back side
Web Advertising- Social Media Social Network
Social media in China has boomed since 2009. There are an estimated 485 million Internet users in China and around 93 percent of them engage in some sort of social media. In China, there are the world’s most fragmented and multi-faceted social media landscape. To brand TPBS, social media could be an effective way with low cost.
Blogs/ Blog Aggregator
Microblogging
Wiki
Q&A
Light Blog The social media outlet with the most users
How TPBS Exploits Social Media Social Network - Building group - Post TPBS work - Update TPBS news
- Post TPBS Branding service thoughts - Update TPBS news
Light Blog
Micro-blogging - Post TPBS Branding service thoughts - Update TPBS news
- Questions and answers about TPBS’s service list and strength
Q&A
Wiki - Post TPBS’s introduction about history, service, and major members
- Building TPBS blog - Update TPBS news - Post TPBS Branding service thoughts
Blogs/ Blog Aggregator
V
Organization Plan I am looking for a partner who will complement each others strengths and weaknesses.
A partnership will be TPBS’s ideal legal structure. I would most likely want to partner with an American citizen in the creation of this firm. This is for two reasons.
Legal Structure
One, by we can combine our strengths and weaknesses to make up for any individual gaps in cultural or language understanding while exploiting our respective native knowledge when dealing with business people from our own counties. Two, when our companies encounter any legal issues, an American citizen will be more effective to solve these issues.
Management Team TPBS has a small but highly trained team, each member specializing in different areas of our core services; An understanding of particular Chinese business practices, a native knowledge of Chinese cultural context, an educated awareness of "Brand", and relationships with larger American branding consultancies with whom we can access advanced offerings to provide our customers with a la carte services as needed.
Organizational Chart A Partner
Zhao Ti Partner Freelance
B Accounting
C Translator / Editor
D Lawyer
E Branding Senior Consultant
Zhao Ti / Partner Brief: Ti graduated from Donghua University with an industrial BFA degree. She had experience in online game design, and also has been serving as an interactive designer in DVN digital company in Shanghai. Ti will finish her MA in Design Management in 2012 and looks forward to working in the Branding Service Industry. Computer Skills: Adobe CS5/6, Microsoft Office 2010, Core Painter Specialized Skills: Marketing Research, Brain Storming, Idea Visualization, Branding Strategies. Function at TPBS: Marketing Research, TPBS Branding Service Designer, Relationship Building, Branding Service Quality Control
A
Persona A / Partner Brief: She is American citizen and has passion and knowledge on Branding Services. She is good at communication and relationship building. Computer Skills: Adobe CS5/6, Microsoft Office 2010, etc. Specialized Skills: Marketing Research, Brain Storming, Branding Strategies, Industry Relationships, etc. Function at TPBS: TPBS Branding Service designer, Relationship building, Translation Quality Control
B C
Persona B / Accountant / Freelance Function at TPBS: Monthly Financial Affairs Report / Paid monthly
Persona C / Translator& Editor / Function at TPBS: Bulk of Text translation. For example, Industry Status Reports and Industry Status Reports / Paid Hourly
D
Persona D / Lawyer / Freelance Function at TPBS: Write and check out all contracts we make with our partners and clients / Paid hourly
E
A B C DE Persona E / Branding Senior Consultant / Freelance
Function in TPBS: Complicated branding cases consulting
Brief: Has broad experience in branding service, worked in a global company, has brand management experience for five or more years, has had their own brand consulting agency / Paid hourly or by case
VI
Financial Accurate financial forecasting will aid in preventing potential financial crisis.
Investment Request Start-Up Costs (First Year) Business License Legal Fees Office Space Rental Telephones
$30
$30
$920
$920
$800 / M
$9,600
$400 / M
$4,800
Website Hosting
$20 / M
$240
Utilities
$200 / M
$2,400
Office Supplies (monthly) Computer and Software
$150 / M
$1,800 $2,000
$2,000
$ 21,790 $21,790
Employee Payrolls ( First Year) Partner
$ 60000 / Y
$60,000
Partner
$60000 / Y
$60,000
Accountant(Freelance)
$ 200 / M
$2,400
Traslator& Editor(Freelance)
$ 400 / M
$4,800
Lawyer(Freelance)
$ 400 / M
$4,800
Branding Senior Consultant(Freelance)
$600 / M
$7,200 $ 139,200 $139,200
TPBS is a small-sized service agency, so we do not require heavy investment. My partner and I would share investment costs 50/50.
First year Financial Forecasting 2014 Income Projection Income
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Service Sales
$2,000
$2,000
$4,000
$4,000
$7,000
$7,000
$10,000
$10,000
$13,000
$13,000
$16,000
$20,000
Cost of Goods
$200
$200
$300
$300
$400
$400
$800
$800
$900
$900
$900
$1,000
$1,800
$1,800
$3,700
$3,700
$6,600
$600
$9,200
$9,200
$12,100
$12,100
$15,100
$19,000
Office Space Rental
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
$800
Telephones
$400
$400
$400
$400
$400
$400
$400
$400
$400
$400
$400
$400
Website Hosting
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
Utilities
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
Office Supplies
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$2,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Business License
$30
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Legal Fees
$920
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Expense
$4,520
$1,570
$1,570
$1,570
$1,570
$1,570
$1,570
$1,570
$1,570
$1,570
$1,570
$1,570
Salaries
$11,600
$11,600
$11,600
$11,600
$11,600
$11,600
$11,600
$11,600
$11,600
$11,600
$11,600
$11,600
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$11,800
$11,800
$11,800
$11,800
$11,800
$11,800
$11,800
$11,800
$11,800
$11,800
$11,800
$11,800
($14,520) ($11,570) ($9,670)
($9,670)
($6,770)
($6,770)
($4,170)
($5,440)
($1,270)
($1,270)
$1,730
$5,630
Gross Profit Fixed Cost
Computer and Software
Variable Cost
Marketing Total Expense Profit Before Taxes
Exit Strategy Selling: In the case that my partner and I want to explore new business opportunities, we
would sell all or a portion of
TPBS to someone who we believe has the experience and personality to operate TPBS well.
Merging: In these two cases, I would merge as my exit strategy. 1. For strengthening my competitivness, I could merge with some of my partnerships, such as research companies, or brand consulting companies. 2. If my business model is copied by some later competitors, and they have certain specific resources and channels I want to use, I would try to convince them to emerge with TPBS for mutual benefit.
Liquidating: In this case, if TPBS has difficulty in producing profit, we would consider liquidation as our exit strategy .
EXIT