Marketing Service Business Plan

BUSINESS PLAN
Business Plan Prepared By

Ms. Cynthia Truitt
2345 Market Lane

Metro, State A 00000
800-333-3333
Date Prepared
October 200A
Business Plan
Table of Contents
EXECUTIVE SUMMARY 5
MANAGEMENT AND ORGANIZATION 7

Management team 7
Compensation and ownership 7
Board of directors/advisory council 7
Infrastructure 8
Contracts and franchise agreements 8
Insurance 8
Employee stock option plan and other incentives 8
Organization charts 9
SERVICE PLAN
Purpose of the service 10
Unique features 10
Stage of development 10
Future research and development 11
Trademarks, Copyrights 11
Gover nment approvals 11
Service limitations / service liability 11
Related products/services and spin-offs 11
P ro d u c t i o n 12
Facilities 12
Suppliers 12
Environmental factors 12
MARKETING PLAN
Industry profile 13
Current size 13
Growth potential 13
Geographic location 13
Industry trends 14
Seasonality factors 14
Profit characteristics 14
Distribution channels 14
Basis of competition 15
Competition profile 16
Customer profile 17
Target market profile 17
Pricing profile 18
Gross margin on services 18
Break-even analysis 18
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Business Plan
Table of Contents
Market penetration 19
Distribution channels 19
Sales representatives / Direct-sales force 19
Direct mail / telemarketing 19
Advertising and promotion 20
Packaging and labeling 21
Service and warranties 21
Trade shows 21
Future markets 21
OPERATING AND CONTROL SYSTEMS
Administrative policies, procedures, and controls 22
Receiving orders 22
Billing the customers 22
Paying the suppliers 22
Collecting the accounts receivable 22
Reporting to management 22
Staff development 22
Inventory control 23
Handling warranties and re t u rn s 23
Monitoring the company budgets 23
Security systems 23
Documents and paper flow 23
Planning chart 24
Product / Service development 24
Manufacturing 24
Financial re q u i re m e n t s 24
Marketing flow chart 24
Market penetration 24
Management and infrastructure 24
Risk analysis 25
Salvaging assets 25
GROWTH PLAN
New of ferings to market 26
Capital re q u i re m e n t s 26
Personnel re q u i re m e n t s 26
Exit strategy 26
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A Firm
Impression Business Plan
Table of Contents
FINANCIAL PLAN
Sales Projections 27
Income Projections 27
Cash Requirements 27
Sources of Financing 27
Projected Financial Statements
Projected Cash Flow Statements
Projected Year-End Income Statements
Projected Year-End Balance Sheet
Ratio Analysis
SUPPORTING DOCUMENTS Appendix

Historical Balance Sheet
Sales Projections
Operating Expenses Projections
Capital Budget Projection
Equity & Debt Worksheet
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Business Plan
Executive Summary
Venture History
A Firm Impression is a public relations and marketing firm that
specializes in digital communications. We help our clients compete in
the electronic era.
Venture Description
We develop customized online directories (media, association and
employee) and electronic communications, including electronic press
kits, CD ROMs and multimedia presentations. We believe companies
must leverage technology in their marketing communications to
compete in today’s Web-driven world.
A Firm Impression is entering its second year in business and ranks
No. 19 on the Metro Business Journal’s Top 25 Pubic Relations Firms.
We are staffed and equipped to manage larger projects more
profitably, accurately and efficiently in the months ahead.
Venture Organization
Our management team consists of President/CEO Ms. Owner and
finance and quality control/process experts who preside on A Firm
Impression’s Advisory Board. Ms. Owner is a seasoned and well-
respected marketing professional who adapts and uses new
technologies with creative messages to the client’s benefit. The
company operates as an LLC.
Venture Market
The industry is growing and changing at a rapid rate. New
technologies offer opportunities and challenges to traditional
businesses. Keeping pace with this vibrant environment is vitally
important to compete in a fast-moving marketplace. Business owners
seek qualified professionals to help them position their firms to their
ultimate and timely advantage.
Our target market is growing businesses with annual sales of $5 to $25
million that have marketing budgets of $100,000 or greater. We
primarily will target businesses in the telecommunications, energy
(utility) industries. We also will target companies who support women-
owned business enterprises.
Our competition consists of a dozen smaller local agencies, most
notably Thomasville Marketing Agency, Market Advantage, QRS
Group, Inc. and Corporate Imagery. These companies have four to 10
employees and gross revenues ranging from $200,000 to $1 million.
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Business Plan
Executive Summary
Venture Operations
A Firm Impression’s business objectives include:
◆ Growing its annual billings to $300,000 by 200C; $450,000 by 200D;
and $650,000 by 200E.
◆ Becoming recognized as a top woman-owned business in Metro by
200E.
◆ Building a highly profitable agency that delivers excellence
backed by sound business processes.
Venture Financing
We are seeking a line of credit in the amount of $50,000. These funds
will be used to cover cash shortfalls as we grow and develop a wider
client base. We project needing to draw down approximately half of
the $50,000 in the first half of 200B and repay it by year-end. The
owner provided start-up capital in 200A.
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Business Plan
Management and Organization Plan
Management team
The president and CEO, Ms. Cynthia Truitt, is in charge of day-to-day operations
including financing, sales, management, and client retention. Ms. Truitt has 25
years of public relations, marketing and advertising experience (see attached
resume Appendix X). She also has owned and operated two prior companies,
Truitt Consulting, a sole proprietorship, and Best Foot Forward, where she served
as Vice President.
Mr. Ted Powell serves as manager of public relations. He oversees daily client
work while Owner concentrates 30 percent to 50 percent of her time on new
business.
Compensation and ownership

The agency is a limited liability company, is registered in StateA and State B and
is doing business as A Firm Impression.
Ms. Truitt is 100 percent owner of A Firm Impression. Though she has been taking
draws against the company, she will receive a $20K annual salary beginning in
200B.
Advisory Council
A Firm Impression will begin holding quarterly advisory meetings beginning in
200B. The two-person council will consists of:
Person Expertise Phone Current/Past Compensation
Sally Jones Financial 000-0000 President of BSQ $100 quarterly
Advisors, former per diem and
CFO of Horton & Duff dinner
Donald Holt P ro c e s s / 000-000 President -Advantage Same
Quality Systems, for mer Editor
C o n t ro l for PR Digest
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Business Plan
Infrastructure
A Firm Impression has established good relationships with outside counsel,
including the firms and persons identified below.
Firm Role Representative Compensation
Quality Input, Inc. Technical Support Fran Patterson $85 per hour
Able & Willing A t t o rn e y Robert Able $125 per hour
MCT, Inc. Accountant Judy Cole $60-$80 per hour
Safety Net, Inc. Insurance/Financial Herbert Hart Set premium
Planning rates at 1%
commission
First Metro Bank Banker Earl Grant N/A
Reliable Trust Liability Insurance Therese Zimmer $200 annually
Contracts and franchise agreements

A Firm Impression holds a one-year office lease with First Realty. Rent is $975 per
month, for an annual commitment of $11,700. Also, one vehicle is leased for the
company through GM Corporation. The lease is $308 per month or $3,598
annually.
Insurance
Currently health insurance is provided for Ms. Truitt and Mr. Powell. The annual
budget for this insurance is $3,500.
A Firm Impression also carries a business insurance policy, which covers the
following:
◆ Actual loss $10,000
◆ Business liability $1,000,000
◆ Medical payments $5,000
◆ Products-completed operations $2,000,000
◆ General aggregate $2,000,000
Employee stock option plan and other incentives

In time, a profit-sharing plan will be developed for the production staff. Right now,
Ms. Truitt generates new business. As we grow, if sales representatives are
employed, they will be on a commission program.
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Business Plan
Organization charts
Ms. Cynthia Truitt is the president of A Firm Impression. Ms. Truitt has successfully
owned and operated two prior companies before launching A Firm Impression
and she is well respected in the communications industry. She holds several
specialized accreditations in the public relations/communications industry and
earned her master’s degree in media communications from StateA University.
Mr. Ted Powell is the public relations manager. Mr. Powell formerly was an
account manager at QRS Group, Inc. Manager earned a bachelor's degree in
journalism from the University of StateB.
Ms. Betty Bolton is A Firm Impression’s coordinator. She manages the office and its
books as well as serving as account coordinator on projects. Ms. Bolton has
assisted several agencies with their office management and bookkeeping. Prior to
supporting agencies, Ms. Bolton was the office manager at Automated Data
Processing.
Mr. Tom Field has 12 years’ experience in art direction and has a graphic design
degree from Metro Art Institute. He has won several local advertising awards. He
is not an employee of A Firm Impression but works as a subcontractor.
M r. Tr u i t t
President
Ms. Bolton M r. Power M r. Field

Coordinator/Office Public Relations Art Director
Manager Manager
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Business Plan
Service Plan
Purpose of the service

We strive to provide corporations who seek growth and/or exposure strategies and
programs to accelerate their success. A Firm Impression helps companies to
achieve their business goals by gaining a solid understanding of their industry and
by developing marketing solutions to distinguish their businesses in the eyes of
influential audiences.
To position clients for optimum success, we provide the following services:
◆ Copywriting and Design
◆ Consulting
◆ Employee Communications
◆ Marketing Communications
◆ Public Relations
◆ Media Relations
◆ Product Launches
◆ Website Development
◆ Sales Material Development
Unique features
Clients are afraid to invest their marketing dollars when the outcome can’t be
measured or guaranteed. A Firm Impression delivers quantifiable results and
measurable returns on investments, unlike other public relations firms that deliver
intangibles such as improving relationships, images and identities. Our average
ROI is 8:1.
We determine and implement strategies and tactics to support pre-determined
business objectives. We measure outcomes in terms that CEOs and CFOs
understand (attendance, exposure, ticket sales, leads, staying within budget, etc.)
We also tie our clients to their key audiences through electronic solutions,
including online employee directories and electronic communication media such
as Websites, CD-ROMs, electronic postcards and newsletters.
Stage of development
A Firm Impression is entering phase II of its business plan with an aggressive sales
push. We are becoming known in the community and need to increase our client
base. A consistent, sassy advertising and marketing effort will begin in January.
Speaking appearances to professional groups as well as newspaper column
submissions will supplement the campaign.
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Business Plan
Service Plan
Future research and development

A Firm Impression will conduct an informal year-end customer satisfaction survey.
The survey will rank our services based on responsiveness, accuracy, quality,
results delivered and the value added to the overall marketing effort of each
company we serve.
Trademarks, Copyrights
Our name and logo is a registered trademark. We routinely include the copyright
notice on our written, artistic, photographic, graphic materials, and Web sites.
Government approvals
We have not yet had to address this issue. We, of course, recognize that we must
be truthful in our advertising and not mislead the consumer. Some specialized
industries are regulated in their advertising and PR efforts. If we work in those
industries, we will research the government restrictions and act accordingly.
Service limitations / service liability

A limitation of offering companies database-driven employee directories is that
the company is dependent on A Firm Impression during the development and
training stages. This dependence actually is a marketing advantage for A Firm
Impression. If the database becomes corrupt and the data is lost, however, A Firm
Impression could be held liable for the rebuilding of this information.
While we strive for measurable results, we provide a service that in many
instances cannot be guaranteed. We must be careful in what we promise and be
certain to provide accurate and efficient service.
Related products / services spin-offs

After a corporate database is constructed of employee information, several
additional products can be produced:
◆ Employee name badges (with security features)
◆ Parking passes
◆ Reminder systems for service anniversaries and training compliance
◆ Intranet sites of employee listings and corporate information/organizational
charts
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Business Plan
Service Plan
Production
Internal staff will handle copywriting, proofing and production work. High-end
graphic design, photography and website development will be hired out to
subcontractors.
All directory publishing work, except digital photography, will be handled
internally.
Facilities
A Firm Impression’s current office of 1,000 square feet is more than adequate for a
staff of three and can easily accommodate up to five personnel with the right
phone system upgrade and investments in professional cubicles. A Firm
Impression invested in four Macintosh computer earlier this year and forecasts the
need for an additional workstation and computer each year through 200E (when
an entire office upgrade will be needed.)
Suppliers
A Firm Impression is actively building a network of subcontractors. We have
relationships with editors, proofreaders, writers and media-relations specialists. We
will continue to build our pool of production personnel, graphic designers and
Website developers so that we have a variety of professionals on hand.
Environmental factors
A Firm Impression promotes the use of recycled paper and soy ink. Currently the
office does not have a recycling initiative but will develop one. When we reprint
our letterhead and envelopes the first of the year, we will use recycled paper.
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Business Plan
Marketing Plan
Industry profile
C u r rent size
The advertising, public relations and marketing industry is an $80 billion industry.
Based on billings, Metro ranks No. 23. Nearly $700 million advertising dollars flow
through Metro via the agencies that report income to Advertising Age magazine.
The New Day Agency dominates the agency business in Metro with
approximately $250 million in annual billings.
G rowth potential
Ten years ago the public relations industry consisted of approximately 4,400 firms
and 345,000 employees. The Bureau of Labor Statistics has identified public
relations as one of the fastest growing industries with an annual growth rate of 3.5
percent and employment levels from 716,000 six years ago to a projected
1,049,000 in 2005.
Although all job categories within the public relations industry are forecasted to
grow into the next century, many positions stand to be eliminated due to the
increase in technology. The occupational category predicted to be most severely
affected by this change is typist/word processors.1
ABC International continues to lead the big public relations agencies in growth.
ABC earned a 25 percent increase in business in last year. In Metro, Donner &
Kartz dominates the public relations market with $10 million in billings and a staff
of more than 100.
Geographic Locations
New York, Chicago and Los Angeles are the three leading cities for advertising
work. In this region, Noble ranks No. 37; Colstead No. 18; Metro No. 23; and Big
Valley No. 29.
Metro is a very competitive market with an onslaught of small and large
agencies. A Firm Impression intends to target smaller markets with less
competition such as Vanburg, Elton, Mortin and Noble.
1 Encyclopedia of American Industries, Second Edition
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Business Plan
Marketing Plan
Industry Tre n d s
The annual Thomas L. Harris & Co. Public Relations Agency Survey showed that
media relations remained the most important capability of PR firms (97 percent).
The second most frequent use of PR firms was for special events (93 percent),
followed by international communications (92 percent), graphic design (89
percent) and community relations (88 percent).
The use of the Internet continues to grow. This transition to interactive
communications requires a change in thinking and offers new opportunities for
this industry.2
Seasonality factors
Seasonality is not generally an issue for advertising and PR providers. However,
most corporations follow suit in (1) producing annual reports during third and
fourth quarters of the year, (2) revamping marketing and media plans during
fourth quarter, (3) gearing up for holiday sales during standard retail times.
Product launches and announcements occur year round.
P rofit characteristics
“The standard profit for an agency used to be 20 percent pre-tax – now some
agencies are working with 15 percent, some with 10 percent. Clients’ margins are
squeezed, and there has been a decline in agency margin, too, no doubt about
it.” 3
Public relations firms are emphasizing flexible billing to attract and keep clients.4
In traditional billing, ad agencies charged 15 percent commissions on ads placed
within the media and a 17.65 percent mark-up on outside purchases. However,
agencies are moving to straight hourly rates, fees, retainers, even tradeouts.5
Distribution channels
Though the concept of distribution channels doesn’t apply to PR and marketing
services, our industry does depend on referrals from competing agencies that are
overbooked or unqualified to serve a client. Another tactic to increase sales
(although less mainstream) is to pay referrers a 10% bird-dog fee for projects that
come to fruition.
2 Encyclopedia of American Industries, Second Edition

3 Pittsburgh Business Times, v13 n4 p13 (2)
4 Denver Business Jour nal, v46 n4 p5B (1)
5 Denver Business Jour nal, v46 n4 p5B (1)
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Business Plan
Marketing Plan
Basis of competition
Competition is forcing accountability for big and small agencies. Customers are
demanding more while holding agencies firm to their bids. Expectations vary, but
generally the bigger the client and budget, the higher the expectations for
service, turnaround and quality. Price tends to be secondary criteria for larger
clients.
Smaller clients (startups and firms that have never worked with an agency) tend
to suffer from sticker shock. In other words, they need to be educated on the time
and energy required for specific projects in order to be comfortable with the
associated fee.
Small or large companies demand status reports on lengthy projects including ROI
results on applicable projects and a firm understanding of costs that weren’t
originally outlined in estimates.
To compete, an agency benefits from having a knowledgeable estimator as well
as a charismatic sales force to continually generate new projects.
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Business Plan
Marketing Plan
Competition profile
The Metro area supports nearly 200 small and large advertising, marketing and
public relations agencies. The top 25 agencies gross from $6 million to more than
$200 million. The top public relations agency, Donner & Kartz, grosses $10 million
in local billings.
A Firm Impression’s current competitors have annual billings of $200,000 to
$350,000. The competitive analysis chart below summarizes key factors.
Agency Annual Employees Price Strengths Weaknesses

Billings Range
Thomasville $330,000 6 $100 + Owner’s Fragmented
Marketing reputation, delivery, no
Agency connections, office yet
sales ability
Market $200,000 18 $100 + A niche, More add
Advantage strong sales focuses than
ability full service PR
QRS Group, $300,000 9 $90–$100 Good creative Staf f turnover
Inc. niche
Corporate $220,000 4 $100 + Several key Less
Imagery clients established
creative not
s t ro n g
A Firm $180,000 2 $80–$100 Savvy, Manpower,
Impression Persistent, lack of internal
good image graphics,
and sales i n e ff i c i e n t
ability, strong systems
support
network
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Business Plan
Marketing Plan
Customer profile
A Firm Impression’s ideal customer is a privately or publicly held company with
annual sales of $5-$25 million and a minimum marketing budget of $100,000.
We prefer to serve companies that are experienced working with agencies and
marketing firms. We also target companies with diversity initiatives that support
woman-owned business enterprises.
Though our firm serves a variety of customers, we specialize in serving energy and
healthcare companies in the Midwest. The majority of our clients are in the greater
Metro area, but we also serve clients in the High County area and Noble.
Our largest client is a subsidiary of an $18 billion telecommunications company.
Our second largest client is a $1 billion utility, with 2,000 employees and a
marketing budget of $1 million.
Our smallest clients include attorneys, nonprofit organizations, storage facilities
and financial planners who do not budget for marketing, but rather work
reactively to the marketplace.
Target market profile

Ta rget Market 1
Publicly held companies in Vanburg, Elton, Noble and Mortin with annual sales of
$5-$25 million in the energy, telecommunications and high-tech industries (getting
SIC codes).
Marketing Approach/Costs: Direct mail will be sent to regional companies fitting
the above criteria. Twelve companies within driving distance of A Firm Impression
will be hand selected for the premier promotion (yet to be developed). These
companies will be heavily solicited with a high-end campaign. Companies under
consideration are Veritech, Primo, and Glow Industries among others.
Ta rget Market 2
Companies in the greater Metro area with 1,000 or more employees. More
specifically we will approach companies with human resource leaders who would
buy into the development of an electronically produced employee directory with
photos that can be posted on the Intranet.
Marketing Approach/Costs: Schedule face-to-face sales presentations with the
human resource decision-maker. Show the finished product we did for Teknival of
Metro along with a letter of recommendation from the Chief Operating Officer,
Stan Lipton.
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Business Plan
Marketing Plan
Pricing profile
A Firm Impression charges a flat rate of $80 per hour, which is higher than area
freelance rates but lower than area agency rates. To cover our growing overhead
(technology, personnel, new phone systems, increased rent), A Firm Impression
will establish a fee range of $65 - $100 per hour to begin the first of the year. The
adjusted rates will benefit clients who pay too much for administrative support
and will benefit A Firm Impression.
Gross margin on services

Service GR Price Outsourced Price Margin Industry Price
Copywriting $80 $25-$60 32% $60-$150

Design $100 $65-$80 10-15% $60-$125
Consulting $80 N/A 100% $60-$150
Media Relations $80 $25-$60 15-30% $60-$100
Production $80 $45 $25 $40-$75
Account Service $80 $30 $0-26% based $60-$125
on current vender
Break-even analysis
We know that we have to do around $100,000 of revenue to cover our overhead
including staff salaries (this does not include subcontracting). We watch the
margins listed above to make sure that each project is bid to cover any
subcontracting and leave us a reasonable margin. If we are not averaging at
least $10,000 a month after subcontracting fees then we know we are going to
suffer a loss.
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Business Plan
Marketing Plan
Market penetration
Distribution Channel
As a consulting service, A Firm Impression will not leverage standard retail
distribution channels. However, it will build awareness of its services by assigning
a staff member to become active in separate professional and civic associations.
Sales re p re s e n t a t i v e s / d i rect sales forc e

Ms. Truitt will continue to generate new business for A Firm Impression through (1)
customer referrals, (2) direct mail and promotional efforts to energy and
healthcare companies, and (3) by participating in select Request for
Proposal/Qualifications processes.
D i rect mail / telemarketing

A Firm Impression builds a mailing list from the Metro Library’s online copy of
Sorkins to target regional companies in the telecommunications, energy,
healthcare and high-tech industries.
A Firm Impression will continue to mail to, build on and update its internal
database of 250 companies.
Audience Geography Number Design Printing List Postage

targeted Mailed to Cost and Purchase
Paper
Marketing Vanburg 300-500 $100 $300 N/A $350 for
Directors of Noble i n t e rn a l all three
Targeted test
Industries in mailings
Region
Human Metro TBD $100 $300 N/A TBD
Rsources Noble i n t e rn a l
Manageres of
Companies
with
500–1000
employees
D re a m Metro 10-hand $200 N/A N/A
Company Vanburg selected design
Promo Noble and
speciality
items
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Business Plan
Marketing Plan
Advertising and promotion

Month Activity Cost
December Send 65 select executives completed directories $200
and invitations to discuss doing one for their division (postage)
January Mail direct mail to targeted businesses in Vanburg, Costs detailed
Metro and Noble (900 pieces). If a three-percent in previous
response rate isn’t achieved, materials will be revised. section $1,350
Each week throughout the year, send introduction Nominal
letters to Metro’s Convention and Visitor’s Bureau postage costs
convention leads (develop boiler plate letter)
February Submit editorial and ads to the Metro Business News $650
for inclusion in Marketing & PR Tab
March Place advertising in HR World magazine to build $1,450
employee directory business (purchase quarterly ads)
April Update Website and send electronic postcard to $500
clientsand prospects to check it out.
Submit materials for inclusion on Metro Biz Journal N/A
Top 25 Listing of Metro PR firms
May Host client appreciation happy hour in the $600
Town Market
June Place quarter page ad in PR & Marketing Resource $800
Guide published by Metro Biz Journal; also write and
submit article on when and why you need PR.
July Submit editorial in Metro Biz Journal "How to Choose N/A
an Ad or PR Agency" special tab
Drop 2 – direct mail to 3 markets $750
August Place editorial in the Metro Business Quarterly on $50
"Your Media Plan Reflects You" [send reprints to
clients and prospects]
September Announce new clients and contracts in $75
Vince Hugo’s Gazette column
October TBD
November Send clients thank you gifts before Thanksgiving $700
December Send clients, venders, and prospects holiday card $500
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Business Plan
Marketing Plan
Packaging and labeling

A Firm Impression builds name recognition and its brand around an Impressionist
artwork theme (Monet, etc.) We will continue with conservative, upscale
packaging as we develop sales sheets that will complement our existing materials.
See attached samples.
Service and warranties

A Firm Impression does not provide any guarantees on its public relations and
marketing work, as it is a business of controlling the uncontrollable. We do assure
clients, however, that we will stick to budgets and timelines unless the client
chooses to deviate from the original plan.
We also take responsibility for any mistakes we make. If an error occurs in a
printed piece and it was our mistake, we will pay to reprint the piece. If an error
occurs that a customer has signed off on and missed, we often will split the cost
with the customer to retain their business.
Trade shows
We will not incorporate trade shows into our marketing effort at this time. Our goal
is to respond quickly and effectively to leads we generate. A firm our size needs
more controlled exposure at this stage of development.
Future markets
Many opportunities exist in this fast-paced world of marketing. Several under
consideration are listed below:
◆ Building an agency with a focus on quick turn around—like the Kinko’s of the
agency world.
◆ Developing a two-tiered service approach. Tier 1 is standard marketing and
public relations; Tier 2 is intelligence gathering and market monitoring: A Firm
Impression would provide clients market forecasting and trend reports along
with recommendations of potential marketing opportunities.
◆ Environmental PR
◆ Internet Marketing
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Business Plan
Operating and Control Systems
Administrative policies, procedures, and controls

Receiving orders
A potential client makes initial contact with Sales Representative. When a firm
request for services is received, Sales Rep will schedule a meeting with the client.
The Account Manager and possibly the Art Director will be present. Contracts or
proposals will be prepared by the Account Manager and submitted to the client
(via Sales Rep) within two weeks of this meeting. (Deadlines may vary and will be
agreed to at the meeting.)
Billing the customers

The Coordinator will gather the hours, expenses and any other billable items from
all employees and vendors each week. On a monthly basis, bills will be prepared
for each client. Bills are to reach each client by the15th of the month.
Paying the suppliers

The Coordinator will pay bills in the first and third weeks of each month. As bills
arrive they will be filed in our reminder system, so that each vendor is paid within
30 days of billing.
Collecting the accounts receivable

Clients are given 30 days to pay our bills. After the 30 days, we assess a 5%
carrying fee. Our system includes a computerized calendar that prompts the
Coordinator to send out a reminder notice on day 32. On day 45, the Coordinator
places a reminder phone call. By day 50, if payment has not been received, the
Owner places a call. On day 60 a collection notice is sent and all work on the
project is stopped.
Reporting to management
We are still small and all employees and subcontractors ultimately report to the
Owner. However, on a project basis, reporting may be to the Manager or
Coordinator. Weekly meetings are held to ensure open communications. At this
meeting, each member of the company is expected to provide a written update of
progress on pertinent projects.
Staff development
As cash flow improves, we plan to implement a budget for staff to attend select
seminars and trade shows. This program should be formalized by 200D. Until then,
we make an effort to read the trade journals and copy interesting items for each
other. We take advantage of software training offered by our vendors and make a
concerted effort to network in our community.
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Business Plan
Inventory control
We are a service provider and don’t have an inventory tracking system..
Handling warranties and re t u rn s

Our product is not something that can be returned. We do stand behind our
work. If through our mistake or oversight, a client does not see a reasonable
return on their marketing effort, we will redo or supplement the marketing
effort at our expense.
Monitoring the company budgets

The Coordinator does the bookkeeping. By the 7th of each month, the prior
month’s financial statements are submitted to the Owner for review. Any line
item that is over 5% off projection, or has been trending in an unfavorable
direction for over 2 months will be examined in detail. An outside accountant
will be asked to review the books and offer advice every quarter.
Security systems
We are not overly concerned with physical security as we have no inventory
and our equipment is minimal. Our main security concern is our creative
output and client information. As such, we have a password system for each
client’s computer files.
Documents and paper flow

A backup file (both for computer files and paper files) is kept by the
Coordinator. All correspondence with a client is funneled through the
Manager. Contracts and proposals all go through the Owner. At the weekly
meeting, current client files are checked and updated.
As we grow and have more personnel to deal with, a more formal paperwork
system will be put into place.
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Business Plan
Planning chart
Product / service development
Although we are a service provider and not a manufacturer, we do produce some
tangible output (CD-ROMs, brochures, press releases etc.) For each client project
we have a team meeting and develop a project timeline. Within that timeline,
duties are assigned in house or to a subcontractor. Some projects take only a
matter of days (such as a press release) while some may take up to a year (a full-
fledged marketing campaign). The project manager is responsible for keeping the
project on schedule and weekly meetings aid in that process.
Manufacturing
We are not a manufacturer. Our output is at first creative and conceptual. It is
difficult if not impossible to systemize the creative process other than to require
that it occur on time. The physical production of appropriate end product such as
a brochure or a CD-ROM is outsourced.
Financial re q u i re m e n t s
Once we have our line of credit in place, we should be solvent for the next couple
of years. The initial draw on that line of credit is projected for January of 200B. If
we should land an exceptionally large contract, we would need to join forces with
several subcontractors since we are not ready to increase our staff significantly at
this time. In some cases, we may require a substantial retainer to begin a project,
so that we can acquire the needed resources to perform the contract.
Marketing flow chart

Our marketing materials have been developed. Ms. Truitt is responsible for
marketing activities with the help of the Coordinator as needed. Refer to the
Marketing section under Advertising and Promotions for a timeline of marketing
efforts.
Market penetration
Refer to Marketing section under Advertising and Promotions for timeline.
Management and infrastructure

The Owner and Manager are in place. We plan to bring an Art Director in house
in January of 200D; the subcontractor will serve as art director until that time.
Another Project Manager may be brought in house in 200D or 200E. Until the
projects require a second Manager full time for nine consecutive months, we will
subcontract additional project management as needed. We will consult with our
accountant on a quarterly basis and as needed beyond that. Our attorney will be
consulted as needed. These two functions will remain as outside consultants
indefinitely.
24
Business Plan
Risk analysis
A Firm Impression faces the same business risk as any enterprise, such as a loss of
important clients or a downturn in the economy.
We are already carefully protected against our sales projections proving too
ambitious. We are a lean staff with very little overhead. Our relationships with our
subcontractors are strong and we continue to network and develop new contacts
and skill sets. In a slump, we are prepared to offer ourselves as subcontractors to
larger firms. These relationships and non-compete agreements are already being
formulated.
Another risk we face is a marketing campaign fraught with errors and ineffective
in its delivery. Our defense against this is vigilance. We check and double-check
all our work and facts. Clients must sign off on every piece of print work and copy
for any project. If we do make an error that costs our client business, we will draw
on our line of credit to produce a marketing campaign for that client free of
charge.
As technology continues to race forward and prices fluctuate in the marketplace,
we will continue to scan our environment for the most innovative, cost-effective
ways to market. If printing becomes too costly for some of our clients, we will
explore using the Internet’s capabilities for them. One avenue we are exploring
for our clients is matching them up with complementary businesses to share
marketing costs. If we decide to branch out into Market Intelligence work, it
would be easy for us to identify synergistic businesses that do not compete, but
are after the same target market. We could then approach two to five companies
with a win-win cooperative marketing campaign.
Salvaging assets
As a service firm whose main asset is our creativity, we do not own a lot of
salvageable assets. We keep our accounts receivable to a minimum. Our
computer equipment and furniture could be sold, but the value would be so
diminished as to render them negligible. The losses we face are mostly personal.
Our only outstanding debt is to the owner and to the bank that holds our line of
credit. As we assume the Ms. Truitt will have to sign personally on that note, the
bank does not face huge risk and will probably not look to the assets of the
business for repayment.
25
Business Plan
Growth Plan
New offerings to market

We are exploring the possibilities of adding a division that would be research
oriented—Market Intelligence and Forecasting. The formation of this division might
be accomplished through merging with another firm.
Another attractive growth opportunity for us is in Internet marketing. Traditional
advertising (banners) is not working effectively in this medium. Our challenge is to
stay attuned to the technology and be ready to adapt and create innovative
ways of marketing on the web for our clients.
Capital requirements
The company was started with an investment and a loan from the Owner. Its
immediate funding needs are for a $50,000 line of credit. Future funding may be
needed if we decide to open an auxiliary company or gear up to target a larger
market.
Personnel requirements
In order to increase our profitability, we need to bring more art design work in
house. In 200C we will hire a part-time designer. In 200D we will add a full-time
designer as well as retaining the part-time help. By 200D or 200E we will also need
another account manager and additional office support personnel.
Exit strategy
When A Firm Impression is well established in the community and is being
routinely solicited by new clients based on existing ad campaigns rather than
contact with Ms. Truitt, then we can consider an exit strategy. An outright sale is
an option, however, a merger with another public relations firm is a more likely
scenario. Our sales will need to be in at least the $3 million range to make us
attractive to the kind of firm with which this owner would want to join forces.
26
Business Plan
Financial Plan
Sales Projections
Sales are projected as follows:
200B $ 268,000
200C $ 402,000
200D $ 653,250
In our first full year of operations sales were close to $200,000. The 200B forecast is
achievable if each staff member bills one-half of his or her time at the assigned
hourly rates. We are becoming well known in town and our contacts are
multiplying while our existing clients are utilizing us for increasingly larger budget
projects. Print brokering numbers are not included, which provide an additional
$10,000 of annual income or act as a cushion to make up for slower periods. Our
relationships with our subcontractors are strong and provide us the ability to take
on large projects without increasing our overhead. Established firms of our
projected staff size commonly have sales up to $1 million annually.
Income Projections
Net income projections are as follows:
200B $ 50,186
200C $ 99,788
200D $ 179,075
We posted a net loss for the year 200A of ($7,888). This was our start-up year and
the loss was expected. A Firm Impression can easily net the $50,186 projected
200B profit by adjusting our design prices in accordance with those we subcontract.
We will achieve greater margins by hiring a part-time designer and bringing more
projects in house. Our projections show us hiring part-time design help in 200C and
additional full-time design help in 200D. Subcontracting costs as a percentage of
sales will decrease under this plan. The overhead costs associated with this level of
additional staffing are minimal.
Cash Requirements
The only cash required is to cover cash flows. $50,000 should suffice.
Sources of Financing
A Firm Impression is seeking a Line of Credit at 10% interest to cover cash shortfalls.
27
A Firm Impression
Cash Flow Statement
200B Pre Start-up JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Cash In
Cash Sales 2,750 2,750 7,500 5,250 5,250 7,500 5,250 5,250 7,500 5,250 5,250 7,500 67,000
Collections from Accounts Receivables 3,390 8,140 7,950 22,290 15,540 15,450 22,290 15,540 15,450 22,290 15,540 15,450 179,320
Equity Received - - - - - - - - - - - - - -
Loans Received - 12,000 7,000 3,000 - - - - - - - - - 22,000
Other Cash In (receipts from other assets) - - - - - - - - - - - - -
Other Cash In (interest, royalties etc.) - - - - - - - - - - - - -
Total Cash In - 18,140 17,890 18,450 27,540 20,790 22,950 27,540 20,790 22,950 27,540 20,790 22,950 268,320
Total Cash Available 4,612 22,752 26,729 31,658 37,296 34,888 35,725 34,482 27,809 34,296 36,444 40,746 46,583 272,932
Cash Out
Inventory Expenditures
Inventory/Raw Material (Cash) - - - - - - - - - - - - - -
Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - - -
Production Expenses - - - - - - - - - - - - - -
Operating Expenses
Advertising - 1,350 650 1,450 - - 800 750 - - - - - 5,000
Bank Charges - - - - - - - - - - - - - -
Dues & Subscriptions - 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Insurance - 20 20 20 20 20 20 20 20 20 20 20 20 240
Licenses & Fees - - - - - - - - - - - - - -
Marketing & Promotion - - - - 500 600 - - 50 75 75 700 500 2,500
Meals & Entertainment - 125 125 125 125 125 125 125 125 125 125 125 125 1,500
Miscellaneous - - - - - - - - - - - - - -
Office Expense - 35 35 35 35 35 35 35 35 35 35 35 35 420
Office Supplies - 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Outside Services - 4,345 4,345 11,850 8,295 8,295 11,850 8,295 8,295 11,850 8,295 8,295 11,850 105,860
Payroll Expenses
Salaries & Wages - 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 61,992
Payroll Taxes - 179 179 179 179 179 179 179 179 179 179 179 179 2,148
Benefits - 275 275 275 275 275 275 275 275 275 275 275 275 3,300
Professional Fees - - - 300 - - 300 - - 300 - - 300 1,200
Property Taxes - - - - - - - - - - - - - -
Rent - 975 975 975 975 975 975 975 975 975 975 975 975 11,700
Repairs & Maintenance - - - - - - - - - - - - - -
Shipping & Delivery - - - - - - - - - - - - - -
Telephone - 320 320 320 320 320 320 320 320 320 320 320 320 3,840
Training & Development - - - - - - - - - - - - - -
Travel - - - - - - - - - - - - - -
Utilities - - - - - - - - - - - - - -
Vehicle - 366 366 366 366 366 366 366 366 366 366 366 366 4,392
Computer & Internet - 145 145 145 145 145 145 145 145 145 145 145 145 1,740
Equipment & Furniture - - 250 - 500 - - 1,300 - 350 - - - 2,400
Other - - - - - - - - - - - - - -
Paid on Account - - - - - - - - - - - - - -
Non-operating Costs
Capital Purchases - - - - - - - - - - - - - -
Estimated Income Tax Payments - - - - 643 - 4,641 - - 4,698 - - 5,073 15,056
Interest Payments - 192 250 275 234 192 167 92 92 92 92 92 92 1,862
Loan Principal Payments - - - - 5,000 5,000 3,000 9,000 - - - - - 22,000
Owner's Draw - - - - - - - - - - - - 10,000 10,000
Other Cash Out - - - - - - - - - - - - - -
Total Cash Out - 13,913 13,521 21,901 23,198 22,113 28,784 27,463 16,463 25,391 16,488 17,113 35,841 262,190
Monthly Cash Flow (cash in - cash out) - 4,227 4,369 (3,451) 4,342 (1,323) (5,834) 77 4,327 (2,441) 11,052 3,677 (12,891) 6,130
Beginning Cash Balance 4,612 4,612 8,839 13,208 9,756 14,098 12,775 6,942 7,019 11,346 8,904 19,956 23,633 4,612
Ending Cash Balance 4,612 8,839 13,208 9,756 14,098 12,775 6,942 7,019 11,346 8,904 19,956 23,633 10,742 10,742
A Firm Impression
Cash Flow Statement
200C JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Cash In
Cash Sales 4,125 4,125 11,250 7,875 7,875 11,250 7,875 7,875 11,250 7,875 7,875 11,250 100,500
Equity Received - - - - - - - - - - - - -
Loans Received - - - - - - - - - - - - -
Total Cash In 26,460 16,335 23,175 41,310 31,185 34,425 41,310 31,185 34,425 41,310 31,185 34,425 386,730
Total Cash Available 37,202 33,684 37,868 49,189 53,600 64,121 67,540 73,243 84,644 88,726 96,848 107,209 397,472
Cash Out
Inventory/Raw Material (Cash) - - - - - - - - - - - - -
Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - -
Production Expenses - - - - - - - - - - - - -
Operating Expenses
Advertising 2,160 1,040 2,320 - - 1,280 1,200 - - - - - 8,000
Bank Charges - - - - - - - - - - - - -
Dues & Subscriptions 124 124 124 124 124 124 124 124 124 124 124 124 1,483
Insurance 21 21 21 21 21 21 21 21 21 21 21 21 247
Licenses & Fees - - - - - - - - - - - - -
Marketing & Promotion - - - 800 960 - - 80 120 120 1,120 800 4,000
Meals & Entertainment 129 129 129 129 129 129 129 129 129 129 129 129 1,545
Miscellaneous - - - - - - - - - - - - -
Office Expense 36 36 36 36 36 36 36 36 36 36 36 36 433
Office Supplies 309 309 309 309 309 309 309 309 309 309 309 309 3,708
Outside Services 5,775 5,775 15,750 11,025 11,025 15,750 11,025 11,025 15,750 11,025 11,025 15,750 140,700
Payroll Expenses
Salaries & Wages 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 102,000
Payroll Taxes 298 298 298 298 298 298 298 298 298 298 298 298 3,570
Benefits 283 283 283 283 283 283 283 283 283 283 283 283 3,399
Professional Fees - - - - - - - - - - - - -
Property Taxes - - - - - - - - - - - - -
Rent 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 12,051
Repairs & Maintenance - - - - - - - - - - - - -
Shipping & Delivery - - - - - - - - - - - - -
Telephone 700 700 700 700 700 700 700 700 700 700 700 700 8,400
Training & Development - - - - - - - - - - - - -
Travel - - - - - - - - - - - - -
Utilities - - - - - - - - - - - - -
Vehicle 366 366 366 366 366 366 366 366 366 366 366 366 4,392
Computer & Internet 149 149 149 149 149 149 149 149 149 149 149 149 1,792
Equipment & Furniture - 258 - 515 - - 1,339 - 361 - - - 2,472
Other - - - - - - - - - - - - -
Paid on Account - - - - - - - - - - - - -
Non-operating Costs
Capital Purchases - - - - - - - - - - - - -
Estimated Income Tax Payments - - - 2,516 - 8,943 - - 9,080 - - 9,397 29,936
Interest Payments - - - - - - - - - - - - -
Loan Principal Payments - - - - - - - - - - - - -
Owner's Draw - - - - - - - - - - - 20,000 20,000
Other Cash Out - - - - - - - - - - - - -
Total Cash Out 19,853 18,991 29,988 26,775 23,903 37,891 25,482 23,023 37,228 23,063 24,063 57,866 348,129
Monthly Cash Flow (cash in - cash out) 6,607 (2,656) (6,813) 14,535 7,282 (3,466) 15,828 8,162 (2,803) 18,247 7,122 (23,441) 38,601
Beginning Cash Balance 10,742 17,349 14,693 7,879 22,415 29,696 26,230 42,058 50,219 47,416 65,663 72,784 10,742
Ending Cash Balance 17,349 14,693 7,879 22,415 29,696 26,230 42,058 50,219 47,416 65,663 72,784 49,343 49,343
A Firm Impression
Cash Flow Statement
200D JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Cash In
Cash Sales 6,703 6,703 18,281 12,797 12,797 18,281 12,797 12,797 18,281 12,797 12,797 18,281 163,313
Equity Received - - - - - - - - - - - - -
Loans Received - - - - - - - - - - - - -
Total Cash In 40,185 26,544 37,659 67,129 50,676 55,941 67,129 50,676 55,941 67,129 50,676 55,941 625,624
Total Cash Available 89,528 82,382 85,406 108,395 117,793 134,130 142,514 154,317 171,585 181,199 196,136 212,214 674,967
Cash Out
Inventory/Raw Material (Cash) - - - - - - - - - - - - -
Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - -
Production Expenses - - - - - - - - - - - - -
Operating Expenses
Advertising 3,510 1,690 3,770 - - 2,080 1,950 - - - - - 13,000
Bank Charges - - - - - - - - - - - - -
Insurance 21 21 21 21 21 21 21 21 21 21 21 21 255
Licenses & Fees - - - - - - - - - - - - -
Marketing & Promotion - - - 1,300 1,560 - - 130 195 195 1,820 1,300 6,500
Miscellaneous - - - - - - - - - - - - -
Office Expense 37 37 37 37 37 37 37 37 37 37 37 37 446
Office Supplies 318 318 318 318 318 318 318 318 318 318 318 318 3,819
Payroll Expenses
Salaries & Wages 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 184,000
Payroll Taxes 537 537 537 537 537 537 537 537 537 537 537 537 6,440
Benefits 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 66,000
Property Taxes - - - - - - - - - - - - -
Rent 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 12,413
Telephone 721 721 721 721 721 721 721 721 721 721 721 721 8,652
Training & Development - 1,000 - - 1,000 - - - - - 1,000 - 3,000
Travel - 1,500 - - 1,500 - - 3,000 - - 1,500 - 7,500
Utilities - - - - - - - - - - - - -
Vehicle 366 366 366 366 366 366 366 366 366 366 366 366 4,392
Other - - - - - - - - - - - - -
Paid on Account - - - - - - - - - - - - -
Non-operating Costs
Capital Purchases - - - - - - - - - - - - -
Estimated Income Tax Payments - - - 3,905 - 16,296 - - 16,579 - - 16,942 53,723
Interest Payments - - - - - - - - - - - - -
Loan Principal Payments - - - - - - - - - - - - -
Owner's Draw - - - - - - - - - - - 30,000 30,000
Other Cash Out - - - - - - - - - - - - -
Total Cash Out 33,690 34,636 44,139 41,279 39,603 58,745 38,872 38,673 57,515 35,738 39,863 88,612 551,365
Monthly Cash Flow (cash in - cash out) 6,495 (8,091) (6,480) 25,850 11,073 (2,804) 28,257 12,003 (1,574) 31,391 10,813 (32,671) 74,259
Beginning Cash Balance 49,343 55,838 47,747 41,267 67,117 78,190 75,385 103,642 115,644 114,070 145,461 156,273 49,343
Ending Cash Balance 55,838 47,747 41,267 67,117 78,190 75,385 103,642 115,644 114,070 145,461 156,273 123,602 123,602
A Firm Impression
Year-End
Income Statement (Projected)
200B 200C 200D
Net Sales (less returns & allowances) 268,000 402,000 653,250
Cost of Goods Sold - - -
Gross Margin $ 268,000 $ 402,000 $ 653,250
Operating Expenses
Advertising 5,000 8,000 13,000
Bad Debt Expense 2,680 4,020 6,533
Bank Charges - - -
Depreciation & Amortization - - -
Dues & Subscriptions 1,440 1,483 1,528
Insurance 240 247 255
Licenses & Fees - - -
Marketing & Promotion 2,500 4,000 6,500
Meals & Entertainment 1,500 1,545 1,591
Miscellaneous - - -
Office Expense 420 433 446
Office Supplies 3,600 3,708 3,819
Outside Services 105,860 140,700 143,715
Payroll Expenses
Salaries & Wages 61,992 102,000 184,000
Payroll Taxes 2,148 3,570 6,440
Benefits 3,300 3,399 66,000
Professional Fees 1,200 - -
Property Taxes - - -
Rent 11,700 12,051 12,413
Repairs & Maintenance - - -
Shipping & Delivery - - -
Telephone 3,840 8,400 8,652
Training & Development - - 3,000
Travel - - 7,500
Utilities - - -
Vehicle 4,392 4,392 4,392
Computer & Internet 1,740 1,792 1,846
Equipment & Furniture 2,400 2,472 2,546
Other - - -
Total Operating Expenses $ 215,952 $ 302,212 $ 474,175
Operating Income $ 52,048 $ 99,788 $ 179,075
Interest Expense 1,862 - -

Other Income (interest, royalties, etc.) - - -
Income Before Taxes $ 50,186 $ 99,788 $ 179,075
Income Taxes (if C Corp) - - -
Net Income $ 50,186 $ 99,788 $ 179,075

A Firm Impression
Year-End
Balance Sheet (Projected)
200B 200C 200D
Assets
Current Assets
Cash & Equivalents 10,742 49,343 123,602
Accounts Receivable 22,500 33,750 54,844
Inventory - - -
Security Deposits - - -
Other Current Assets - - -
Total Current Assets $ 33,242 $ 83,093 $ 178,446
Fixed Assets
Property, Plant & Equipment - - -
Less: Accumulated Depreciation - - -
Other Non-Current Assets - - -
Total Non-Current Assets $ - $ - $ -
Total Assets $ 33,242 $ 83,093 $ 178,446
Liabilities
Current Liabilities
Accounts Payable - - -
Line of Credit - - -
Other Current Liabilities - - -
Total Current Liabilities $ - $ - $ -
Long-term Liabilities
Loans 11,000 11,000 11,000
Mortgages - - -
Other Non-Current Liabilities - - -
Total Non-Current Liabilities $ 11,000 $ 11,000 $ 11,000
Total Liabilities $ 11,000 $ 11,000 $ 11,000
Equity
Equity Investments 5,000 5,000 5,000
Retained Earnings 42,298 142,085 321,161
Less: Owner's & Investor's Draws (25,056) (74,992) (158,715)
Total Equity $ 22,242 $ 72,093 $ 167,446
Total Liabilities and Equity $ 33,242 $ 83,093 $ 178,446

A Firm Impression
Financial Ratios
200B 200C 200D
Profitability Ratios
Gross Margin Gross Income 100.00% 100.00% 100.00%

Net Sales
Operating Margin Operating Income 19.42% 24.82% 27.41%

Net Sales
Net Margin Net Income 18.73% 24.82% 27.41%

Net Sales
Return on Assets (ROA) Net Income 150.97% 120.09% 100.35%

Total Assets
Return on Equity (ROE) Net Income 225.64% 138.41% 106.95%

Shareholders' Equity
Liquidity Ratios
Current Ratio Total Current Assets #DIV/0! #DIV/0! #DIV/0!

Total Current Liabilities
Quick Ratio Current Assets - Inventory #DIV/0! #DIV/0! #DIV/0!

Current Liabilities
Risk Ratios
Debt Ratio Total Liabilities 0.33 0.13 0.06

Total Assets
Debt to Equity Total Liabilities 0.49 0.15 0.07

Shareholders' Equity
Efficiency Ratios
Inventory Turnover Cost of Goods Sold #DIV/0! #DIV/0! #DIV/0!

Inventory
Days Sales Outstanding (DSO) Accounts Receivable 30.64 30.64 30.64

Net Sales/365
Investment Turnover Ratio Net Sales 8.06 4.84 3.66

Total Assets
Business Plan
Supporting Documents
Appendix
Appendix
HISTORICAL BALANCE SHEET
A Firm Impression
12/31/200/B
Assets
Current Assets
Cash & Equivalents 4,612
Accounts Receivable 3,500
Inventory -
Security Deposits -
Other Current Assets -
Total Current Assets $ 8,112
Fixed Assets
Property, Plant & Equipment
Computer Equipment -
Equipment/Machinery -
Furniture & Fixtures -
Vehicles -
Leasehold Improvements -
Building -
Land -
Less: Accumulated Depreciation (Do not enter a negative number) -
Other Non-current Assets -
Total Non-current Assets $ -
Total Assets $ 8,112
Liabilities
Current Liabilities
Accounts Payable -
Line of Credit -
Other Current Liabilities -
Total Current Liabilities $ -
Long-term Liabilities
Loans 11,000
Real Estate Loans -
Other Non-current Liabilities -
Total Long-term Liabilities $ 11,000
Total Liabilities $ 11,000
Equity
Owners Equity 5,000
Retained Earnings (Enter a negative number for a loss) (7,888)
Less: Owner's & Investor's Draws (Not for use by C Corporations) -
Total Equity $ (2,888)
Total Liabilities and Equity $ 8,112
Appendix
SALES PROJECTIONS
A Firm Impression
Year 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Sales Budget
Public Relations Services 11,000 11,000 30,000 21,000 21,000 30,000 21,000 21,000 30,000 21,000 21,000 30,000 268,000
YEAR 1
Product/Service Category B - - - - - - - - - - - - -
Product/Service Category C - - - - - - - - - - - - -
Product/Service Category D - - - - - - - - - - - - -
Product/Service Category E - - - - - - - - - - - - -
YEAR 1
Product/Service Category F - - - - - - - - - - - - -
Product/Service Category G - - - - - - - - - - - - -
Gross Sales 11,000 11,000 30,000 21,000 21,000 30,000 21,000 21,000 30,000 21,000 21,000 30,000 268,000
YEAR 1
Less: Returns & Allowances - - - - - - - - - - - - -

Net Sales 11,000 11,000 30,000 21,000 21,000 30,000 21,000 21,000 30,000 21,000 21,000 30,000 268,000
Other Income - - - - - - - - - - - - -
Total Income 11,000 11,000 30,000 21,000 21,000 30,000 21,000 21,000 30,000 21,000 21,000 30,000 268,000
Credit Management
YEAR 1
Sales (cash) 2,750 2,750 7,500 5,250 5,250 7,500 5,250 5,250 7,500 5,250 5,250 7,500 67,000
Sales (credit) 8,250 8,250 22,500 15,750 15,750 22,500 15,750 15,750 22,500 15,750 15,750 22,500 201,000
Received on Account 3,500 8,250 8,250 22,500 15,750 15,750 22,500 15,750 15,750 22,500 15,750 15,750 182,000
Bad Debt Expense 110 110 300 210 210 300 210 210 300 210 210 300 2,680
Year 1 Assumptions
Public Relations Services sales projections based on each staff member billing 1/2 their time at assigned hourly rates--achievable based on sales in 200A
YEAR 1
Product/Service Category B
Product/Service Category C
Product/Service Category D
Product/Service Category E
YEAR 1
Product/Service Category F
Product/Service Category G
Less: Returns & Allowances
Other Income
YEAR 1
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
Appendix
SALES PROJECTIONS
A Firm Impression
Sales Budget
YEAR 2
YEAR 2
Gross Sales 16,500 16,500 45,000 31,500 31,500 45,000 31,500 31,500 45,000 31,500 31,500 45,000 402,000
YEAR 2

Net Sales 16,500 16,500 45,000 31,500 31,500 45,000 31,500 31,500 45,000 31,500 31,500 45,000 402,000
Other Income - - - - - - - - - - - - -
Total Income 16,500 16,500 45,000 31,500 31,500 45,000 31,500 31,500 45,000 31,500 31,500 45,000 402,000
Credit Management
YEAR 2
Sales (cash) 4,125 4,125 11,250 7,875 7,875 11,250 7,875 7,875 11,250 7,875 7,875 11,250 100,500
Sales (credit) 12,375 12,375 33,750 23,625 23,625 33,750 23,625 23,625 33,750 23,625 23,625 33,750 301,500
Bad Debt Expense 165 165 450 315 315 450 315 315 450 315 315 450 4,020
Year 2 Assumptions
Public Relations Services growth projected based on additional personnel and higher dollar projects as we add new clients and garner more of our exisiting client's business
YEAR 2
YEAR 2
Other Income
YEAR 2
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
Appendix
SALES PROJECTIONS
A Firm Impression
Sales Budget
YEAR 3
YEAR 3
Gross Sales 26,813 26,813 73,125 51,188 51,188 73,125 51,188 51,188 73,125 51,188 51,188 73,125 653,250
YEAR 3

Net Sales 26,813 26,813 73,125 51,188 51,188 73,125 51,188 51,188 73,125 51,188 51,188 73,125 653,250
Other Income - - - - - - - - - - - - -
Total Income 26,813 26,813 73,125 51,188 51,188 73,125 51,188 51,188 73,125 51,188 51,188 73,125 653,250
Credit Management
YEAR 3
Sales (cash) 6,703 6,703 18,281 12,797 12,797 18,281 12,797 12,797 18,281 12,797 12,797 18,281 163,313
Sales (credit) 20,109 20,109 54,844 38,391 38,391 54,844 38,391 38,391 54,844 38,391 38,391 54,844 489,938
Bad Debt Expense 268 268 731 512 512 731 512 512 731 512 512 731 6,533
Year 3 Assumptions
Public Relations Services growth projected based on additional personnel and higher dollar projects as we add new clients and garner more of our exisiting client's business
YEAR 3
YEAR 3
Other Income
YEAR 3
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
Appendix
OPERATING EXPENSE PROJECTIONS
A Firm Impression
Operating Expenses
Advertising 1,350 650 1,450 - - 800 750 - - - - - 5,000
Bank Charges - - - - - - - - - - - - -
YEAR 1
Insurance 20 20 20 20 20 20 20 20 20 20 20 20 240
Licenses & Fees - - - - - - - - - - - - -
Marketing & Promotion - - - 500 600 - - 50 75 75 700 500 2,500
YEAR 1
Miscellaneous - - - - - - - - - - - - -
Office Expense (postage) 35 35 35 35 35 35 35 35 35 35 35 35 420
Office Supplies 300 300 300 300 300 300 300 300 300 300 300 300 3,600
YEAR 1
Payroll Expenses
Salaries & Wages 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 5,166 61,992
Payroll Taxes 179 179 179 179 179 179 179 179 179 179 179 179 2,148
Benefits 275 275 275 275 275 275 275 275 275 275 275 275 3,300
YEAR 1
Professional Fees - - 300 - - 300 - - 300 - - 300 1,200

Property Taxes - - - - - - - - - - - - -
Rent 975 975 975 975 975 975 975 975 975 975 975 975 11,700
YEAR 1

Telephone 320 320 320 320 320 320 320 320 320 320 320 320 3,840
Travel - - - - - - - - - - - - -
YEAR 1
Utilities - - - - - - - - - - - - -
Vehicle 366 366 366 366 366 366 366 366 366 366 366 366 4,392
Other - - - - - - - - - - - - -
Total Operating Expenses 13,721 13,271 21,626 17,321 16,921 20,976 18,371 16,371 20,601 16,396 17,021 20,676 213,272
Assumptions - Year 1
YEAR 1
Advertising based on monthly advertising schedule detailed in marketing section--costs researched with each vendor
Bank Charges
Dues & Subscriptions based on historical charges
Insurance based on historical charges
YEAR 1
Licenses & Fees

Marketing & Promotion based on monthly advertising schedule detailed in marketing section--costs researched with each vendor
Meals & Entertainment based on historical budget for entertaining potential clients
Miscellaneous
YEAR 1
Office Expense (postage) based on historical expense

Office Supplies based on historical expense
Outside Services subcontracting costs based on hisorical percentage of sales (39.5%)
YEAR 1
Payroll Expenses
Salaries & Wages owner-$20,000; manager-$24,000; coordinator-$18,000
Payroll Taxes based on historical rates
Benefits health insurance for owner and manager - based on quote from agent
YEAR 1
Professional Fees fee for accountant to do quarterly review of books

Property Taxes
Rent lease rate
Repairs & Maintenance
YEAR 1
Shipping & Delivery

Telephone based on historical costs
Training & Development
Travel
Utilities
Vehicle car lease
Computer & Internet based on historical rates
Equipment & Furniture additional computer and workstation
Other
Appendix
A Firm Impression
Operating Expenses
Advertising 2,160 1,040 2,320 - - 1,280 1,200 - - - - - 8,000
Bank Charges - - - - - - - - - - - - -
YEAR 2
Insurance 21 21 21 21 21 21 21 21 21 21 21 21 247
Licenses & Fees - - - - - - - - - - - - -
Marketing & Promotion - - - 800 960 - - 80 120 120 1,120 800 4,000
YEAR 2
Miscellaneous - - - - - - - - - - - - -
Office Supplies 309 309 309 309 309 309 309 309 309 309 309 309 3,708
YEAR 2
Payroll Expenses
Salaries & Wages 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 102,000
Payroll Taxes 298 298 298 298 298 298 298 298 298 298 298 298 3,570
Benefits 283 283 283 283 283 283 283 283 283 283 283 283 3,399
YEAR 2
Property Taxes - - - - - - - - - - - - -
Rent 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 1,004 12,051
YEAR 2

Telephone 700 700 700 700 700 700 700 700 700 700 700 700 8,400
Travel - - - - - - - - - - - - -
YEAR 2
Utilities - - - - - - - - - - - - -
Vehicle 366 366 366 366 366 366 366 366 366 366 366 366 4,392
Other - - - - - - - - - - - - -
Advertising 60% increase over prior year to promote growth
Bank Charges
Dues & Subscriptions 3% inflation rate over prior year
YEAR 2
Insurance 3% inflation rate over prior year

Licenses & Fees
Marketing & Promotion 60% increase over prior year to promote growth
Meals & Entertainment 3% inflation rate over prior year
YEAR 2
Miscellaneous
Office Expense (postage) 3% inflation rate over prior year
Office Supplies 3% inflation rate over prior year
Outside Services subcontracting estimated at 36% of sales - more design work kept in house with part-time designer
YEAR 2
Payroll Expenses
Salaries & Wages owner-$24,000; manager-$28,000; coordinator-$20,000; part-time designer-$30,000
Payroll Taxes Based on historical percentages
Benefits 3% inflation rate over prior year
YEAR 2
Professional Fees 3% inflation rate over prior year

Property Taxes
Rent 3% inflation rate over prior year
YEAR 2

Shipping & Delivery
Telephone based on quotes from vendor for upgraded phone system
Training & Development
YEAR 2
Travel
Utilities
Vehicle car lease
Computer & Internet 3% inflation rate over prior year
Equipment & Furniture additional computer and workstation at 3% over prior year's cost
Other
Appendix
A Firm Impression
Operating Expenses
Advertising 3,510 1,690 3,770 - - 2,080 1,950 - - - - - 13,000
Bank Charges - - - - - - - - - - - - -
YEAR 3
Insurance 21 21 21 21 21 21 21 21 21 21 21 21 255
Licenses & Fees - - - - - - - - - - - - -
Marketing & Promotion - - - 1,300 1,560 - - 130 195 195 1,820 1,300 6,500
YEAR 3
Miscellaneous - - - - - - - - - - - - -
Office Supplies 318 318 318 318 318 318 318 318 318 318 318 318 3,819
YEAR 3
Payroll Expenses
Salaries & Wages 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 15,333 184,000
Payroll Taxes 537 537 537 537 537 537 537 537 537 537 537 537 6,440
Benefits 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 66,000
YEAR 3
Property Taxes - - - - - - - - - - - - -
Rent 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 1,034 12,413
YEAR 3

Telephone 721 721 721 721 721 721 721 721 721 721 721 721 8,652
Training & Development - 1,000 - - 1,000 - - - - - 1,000 - 3,000
Travel - 1,500 - - 1,500 - - 3,000 - - 1,500 - 7,500
YEAR 3
Utilities - - - - - - - - - - - - -
Vehicle 366 366 366 366 366 366 366 366 366 366 366 366 4,392
Other - - - - - - - - - - - - -
Advertising 65% increase over prior year to promote growth
Bank Charges
Dues & Subscriptions 3% inflation rate over prior year
YEAR 3
Insurance 3% inflation rate over prior year

Licenses & Fees
Marketing & Promotion 65% increase over prior year to promote growth
Meals & Entertainment 3% inflation rate over prior year
YEAR 3
Miscellaneous
Office Expense (postage) 3% inflation rate over prior year
Office Supplies 3% inflation rate over prior year
Outside Services subcontracting budgeted at 22% of sales--new art director will produce more work in house
YEAR 3
Payroll Expenses
Salaries & Wages owner-$30,000; manager-$32,000; coordinator-$22,000; part-time designer-$30,000; art director-$70,000
Payroll Taxes based on historical percentages
Benefits health insurance for three employees
YEAR 3
Professional Fees 3% inflation rate over prior year

Property Taxes
Rent 3% inflation rate over prior year
YEAR 3

Shipping & Delivery
Telephone based on quotes from vendor for upgraded phone system
Training & Development budget for seminar and trade show attendance
YEAR 3
Travel travel budget to attend seminars and trade shows

Utilities
Vehicle car lease
Computer & Internet 3% inflation rate over prior year
Equipment & Furniture additional computer and workstation at 3% over prior year's cost
Other
Appendix
CAPITAL BUDGET PROJECTIONS
YEAR 1
Capital Budget
Owner's Draw - - - - - - - - - - - 10,000 10,000
Investor's Draw - - - - - - - - - - - - -
YEAR 1
Dividends Paid - - - - - - - - - - - - -
Security Deposits - - - - - - - - - - - - -
Amortization - - - - - - - - - - - - -
Depreciation (existing assets) - - - - - - - - - - - - -
YEAR 1
Capital Asset Purchases - - - - - - - - - - - - -

Depreciation (new purchases) - - - - - - - - - - - - -
Land - - - - - - - - - - - - -
Year 1 Total Depreciation -
Owner's Draw
YEAR 1
Investor's Draw
Dividends Paid
Security Deposits
Amortization
YEAR 1
Equipment
Equipment Depreciation
Furniture
YEAR 1
Furniture Depreciation
Leasehold Improvements
Leasehold Depreciation
Vehicles
YEAR 1
Vehicle Depreciation
Building
Building Depreciation
Land
Appendix
YEAR 2
Capital Budget
Owner's Draw - - - - - - - - - - - 20,000 20,000
Investor's Draw - - - - - - - - - - - - -
YEAR 2
Dividends Paid - - - - - - - - - - - - -
Amortization - - - - - - - - - - - - -
YEAR 2

Land - - - - - - - - - - - - -
Owner's Draw
YEAR 2
Investor's Draw
Dividends Paid
Security Deposits
Amortization
YEAR 2
Equipment
Furniture
YEAR 2
Vehicles
YEAR 2
Building
Land
Appendix
YEAR 3
Capital Budget
Owner's Draw - - - - - - - - - - - 30,000 30,000
Investor's Draw - - - - - - - - - - - - -
YEAR 3
Dividends Paid - - - - - - - - - - - - -
Amortization - - - - - - - - - - - - -
YEAR 3

Land - - - - - - - - - - - - -
Owner's Draw
YEAR 3
Investor's Draw
Dividends Paid
Security Deposits
Amortization
YEAR 3
Equipment
Furniture
YEAR 3
Vehicles
YEAR 3
Building
Land
Appendix
Equity Investment
A Firm Impression JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Year 1 - - - - - - - - - - - - -
Year 2 - - - - - - - - - - - - -
Year 3 - - - - - - - - - - - - -
Real Estate Loans

A Firm Impression
Existing Balance -
New Borrowing JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Year 1 - - - - - - - - - - - - -
Outstanding balance - - - - - - - - - - - -
Year 2 - - - - - - - - - - - - -
Year 3 - - - - - - - - - - - - -
Repayment JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Year 1 - principal - - - - - - - - - - - - -
Year 1 - interest - - - - - - - - - - - - -
Year 2 - principal - - - - - - - - - - - - -
Year 2 - interest - - - - - - - - - - - - -
Year 3 - principal - - - - - - - - - - - - -
Year 3 - interest - - - - - - - - - - - - -
Traditional Business Loan and/or other Long-term Loans

A Firm Impression
Loan 1
Existing Balance 11,000
New Borrowing JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Year 1 - - - - - - - - - - - - -
Outstanding balance 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000
Year 2 - - - - - - - - - - - - -
Year 3 - - - - - - - - - - - - -
Year 1 - principal - - - - - - - - - - - - -
Year 1 - interest 92 92 92 92 92 92 92 92 92 92 92 92 1,104
Year 2 - principal - - - - - - - - - - - - -
Year 2 - interest - - - - - - - - - - - - -
Year 3 - principal - - - - - - - - - - - - -
Year 3 - interest - - - - - - - - - - - - -
Loan 2
Borrowing JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Year 1 - - - - - - - - - - - - -
Year 2 - - - - - - - - - - - - -
Year 3 - - - - - - - - - - - - -
Year 1 - principal - - - - - - - - - - - - -
Year 1 - interest - - - - - - - - - - - - -
Year 2 - principal - - - - - - - - - - - - -
Year 2 - interest - - - - - - - - - - - - -
Year 3 - principal - - - - - - - - - - - - -
Year 3 - interest - - - - - - - - - - - - -
Line of Credit
A Firm Impression
Existing Balance -
Borrowing JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Year 1 12,000 7,000 3,000 - - - - - - - - - 22,000
Outstanding balance 12,000 19,000 22,000 17,000 12,000 9,000 - - - - - -
Year 2 - - - - - - - - - - - - -
Year 3 - - - - - - - - - - - - -
Year 1 - principal - - - 5,000 5,000 3,000 9,000 - - - - - 22,000
Year 1 - interest 100 158 183 142 100 75 - - - - - - 758
Year 2 - principal - - - - - - - - - - - - -
Year 2 - interest - - - - - - - - - - - - -
Year 3 - principal - - - - - - - - - - - - -
Year 3 - interest - - - - - - - - - - - - -
Year 1 - total principal paid 22,000

Year 1 - total interest paid 1,862
Year 2 - total principal paid -
Year 2 - total interest paid -
Year 3 - total principal paid -
Year 3 - total interest paid -
Appendix

Marketing Service Business Plan

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BUSINESS PLAN

Business Plan Prepared By

2345 Market Lane

MANAGEMENT AND ORGANIZATION 7

SUPPORTING DOCUMENTS Appendix

Compensation and ownership

Contracts and franchise agreements

Employee stock option plan and other incentives

Ms. Bolton M r. Power M r. Field

Purpose of the service

Future research and development

Service limitations / service liability

Related products / services spin-offs

1 Encyclopedia of American Industries, Second Edition

2 Encyclopedia of American Industries, Second Edition

Agency Annual Employees Price Strengths Weaknesses

Target market profile

Gross margin on services

Copywriting $80 $25-$60 32% $60-$150

Sales re p re s e n t a t i v e s / d i rect sales forc e

D i rect mail / telemarketing

Audience Geography Number Design Printing List Postage

Advertising and promotion

Packaging and labeling

Service and warranties

Administrative policies, procedures, and controls

Billing the customers

Paying the suppliers

Collecting the accounts receivable

Handling warranties and re t u rn s

Monitoring the company budgets

Documents and paper flow

Marketing flow chart

Management and infrastructure

New offerings to market

Operating Income $ 52,048 $ 99,788 $ 179,075

Interest Expense 1,862 - -

Income Before Taxes $ 50,186 $ 99,788 $ 179,075

Income Taxes (if C Corp) - - -

Net Income $ 50,186 $ 99,788 $ 179,075

Total Assets $ 33,242 $ 83,093 $ 178,446

Total Liabilities $ 11,000 $ 11,000 $ 11,000

Total Liabilities and Equity $ 33,242 $ 83,093 $ 178,446

Gross Margin Gross Income 100.00% 100.00% 100.00%

Operating Margin Operating Income 19.42% 24.82% 27.41%

Net Margin Net Income 18.73% 24.82% 27.41%

Return on Assets (ROA) Net Income 150.97% 120.09% 100.35%

Return on Equity (ROE) Net Income 225.64% 138.41% 106.95%

Current Ratio Total Current Assets #DIV/0! #DIV/0! #DIV/0!

Quick Ratio Current Assets - Inventory #DIV/0! #DIV/0! #DIV/0!

Debt Ratio Total Liabilities 0.33 0.13 0.06

Debt to Equity Total Liabilities 0.49 0.15 0.07

Inventory Turnover Cost of Goods Sold #DIV/0! #DIV/0! #DIV/0!

Days Sales Outstanding (DSO) Accounts Receivable 30.64 30.64 30.64

Investment Turnover Ratio Net Sales 8.06 4.84 3.66

Total Assets $ 8,112

Total Liabilities $ 11,000

Total Equity $ (2,888)

Total Liabilities and Equity $ 8,112

Less: Returns & Allowances - - - - - - - - - - - - -

Less: Returns & Allowances - - - - - - - - - - - - -

Less: Returns & Allowances - - - - - - - - - - - - -

Professional Fees - - 300 - - 300 - - 300 - - 300 1,200

Shipping & Delivery - - - - - - - - - - - - -