final business plan to send

Ryan Saliba (513092M)

1/38


2/38

Contents

1 - Executive summary ................................................................................................................. 1

2 - Introduction ............................................................................................................................ 4

2.1 - Introduction to the business ....................................................................................................... 4

2.2 - Technology review ...................................................................................................................... 7

2.3 - Intellectual property ................................................................................................................... 9

2.4 - Licensing .................................................................................................................................... 10

3 - Business opportunity ............................................................................................................. 11

3.1 - Market description ................................................................................................................... 11

3.2 - Target products ......................................................................................................................... 12

3.3 - Competition .............................................................................................................................. 14

3.4 - Commercial strategy ................................................................................................................. 15

3.5 - Market potential ....................................................................................................................... 16

4 - Management & Operating Team ............................................................................................ 19

4.1 - Founder-Director ...................................................................................................................... 19

4.2 - Key Employees .......................................................................................................................... 20

4.3 - Consultants ............................................................................................................................... 20

5 - Operating Plan ...................................................................................................................... 22

5.1 - Main Business Milestones ........................................................................................................ 22

5.2 - Resource requirements ............................................................................................................ 24

5.3 - Corporate alliances ................................................................................................................... 25

5.4 - Financial analysis....................................................................................................................... 26

6 - Appendices ........................................................................................................................... 27

6.1 - Short-form CV's and Job Descriptions ...................................................................................... 27

6.2 - Feasibility of business idea ....................................................................................................... 30

6.3 - Marketing Brochure .................................................................................................................. 33

6.4 - Pricing Strategy + Cash Flow Forecast ...................................................................................... 34


3/38

1 - Executive summary

Small businesses are great. They can offer excellent products, possibly at a better quality or price than the next big companies. However, small businesses can suffer from a fundamental flaw: the lack of manpower or cash flow makes it hard for these businesses to work in marketing their services. If a business cannot target its customers effectively, it will not enjoy the growth it can expect.

Bknown Marketing is a start-up sole trading business created to provide marketing services specifically to these small businesses. The business will be offering a selection of marketing packages, ranging from creation of social media pages (such as Facebook and Youtube), website design, creation of a brand, and the creation of a simple marketing plan for the business to follow. With these services, Bknown marketing aims to help small businesses to be known in their own competitive market!

There are around 30,000 micro-businesses locally, which employ less than ten employees and this market has not yet effectively been targeted by competing marketing agencies. Competitors regularly charge more than what the small businesses can invest, or else, they fail to provide a complete solution towards up-to-date digital marketing. Small businesses require a low-cost, high return solution, which will not only increase sales, but also raise brand awareness and attract new and existing customers. Primary market research proved that businesses will be spending more money on digital marketing in the coming years and a large proportion of micro-businesses will be willing to outsource work to a talented marketing agency. Four potential clients are ready to do business with Bknown. Initially, the founder will be able to handle the initial workload, but will eventually need to be accompanied by a creative team consisting of a web designer, a graphic designer and a social media & PR specialist. For the first three years, Bknown Marketing will act as a sole-trading business, and will be based in a small office space in Valletta. Registration of trademarks and web domain names are currently underway.

The business is looking to raise €20,000 of finance for its start-up funding, €10,000 of which will be invested by the founder, and another €10,000 from a business loan. It is estimated that the business can immediately start paying back the loan in monthly instalments, and the loan will be repaid within three years. An overdraft facility of €5,000 is also required for daily working capital requirements.

-20000

-10000

0

10000

20000

30000

40000

50000

Q1 2016

Q2 Q3 Q4 Q1 2017

Q2 Q3 Q4 Q1 2018

Q2 Q3 Q4

Sales Costs Profit


4/38

Key Facts

- Bknown Marketing will

specialise in carrying up-to-

date Digital Marketing on

behalf of small businesses.

- The main marketing trends

the business will be

following are explained in

section 2.1.

- Main technology platforms

to be used by Bknown

Marketing are explained in

section 2.2.

Intellectual Property

- Registration of company

name and logo.

- Registration of web

domain names

- Intellectual 'know-how'

Licensing

- Will require licensing for

use of Adobe creative

software, and cloud-

based storage.

2 - Introduction

This section will give a brief overview of the technological trends that

Bknown Marketing will be utilising in the course of its operations.

2.1 - Introduction to the business

Bknown Marketing will be set up as a marketing agency, providing creative

and consultation services to small businesses in order to help them grow

according to their potential.

Marketing is all about the actions a business does in order to reach out to

prospects that are willing to part their hard earned cash with the offering of

their business. If a business is able to accurately target these prospects, it

stands a better chance of generating the sale, and this fact can be applied

even to the smallest niche market. Target enough prospects, and profit

follows.

The ways and means of arriving to that sale has varied throughout the ages.

In fact, the world has recently got over the shift from no-internet to internet

based advertising, and is now in the process of making the relationship

between brands and consumers a bit more human. Gone are the days where

people were merely experimenting with the boundaries of the internet;

where in order to rank first in a search engine, one simply had to tick off a

cheat-list. Similarly, advertising is now not simply a case of registering with

Yellow Pages and waiting for the calls to come in.

What we are experiencing in the marketing world right now is a very diverse

offering, with consumers and prospects becoming more tech-savvy, while at

the same time, becoming very proficient in blocking out unnecessary

advertising content on their devices. In spite of having an array of marketing

tools available to them, a lot of small businesses find themselves struggling

to produce any effective marketing campaign. At best, this might mean that

the business will not generate the profit it has the potential to gather. At

worst, it might make the small business fail.


5/38

Fresh trends are always emerging in the marketing world. The company will be specialised in dealing

with these, and incorporating them into easy-to-apply packages for the businesses to follow. What

follows are some current trends that the Bknown Marketing will rely on when working for clients:

Traditional vs. Digital Marketing

Traditional marketing media employs a variety of marketing methods which are not directly linked to

digital or internet means. These might include television, radio, print, yellow pages, billboards,

leaflets and in-store promotions.

Digital methods take these a step further, and employ digital design into the equation, and quite

possibly, internet based advertising, such as websites, Pay per Click advertising, Social Media and E-

mail marketing. If carried out effectively, these methods can generate a higher return on investment

than traditional marketing methods.

Nowadays, the most effective marketing campaigns use a mix of both (with a bias towards any one

of them depending on the type of business). Marketing campaigns with low return usually use up

their entire marketing budget on simply one campaign in either traditional, or digital.

Bknown Marketing will be guiding small businesses at

choosing the best mix of traditional and digital marketing

methods. The focus will be on digital marketing, since this

allows the business to maximise profit gains from their

marketing efforts.

Outbound vs. Inbound Marketing

Traditional marketing methods were predominantly outbound - they reach out to the consumer,

dragging them into making business with their company. In a way, it almost feels like 'forced'

advertising; you are sitting down watching television, and you just have to look at the adverts.

On the other hand, inbound marketing attempts to attract customers by being more human. This

can be done in various ways. Content marketing for example, attracts users by providing them with

interesting and relevant content (such as articles, product reviews,

webinars and blogs) and thus establishing a relationship with the

brand. Social media interaction is also another way where a brand

will be more successful if it employs inbound techniques rather

than outbound.


6/38

For example, a running shoe store using a social media page might either simply show the product

along with a (boring) long description and the price (outbound), whereas a more intelligent store

might provide interesting content relating to athletes who use the brand going on a journey and

providing hints on how best to train for an event (inbound). The latter provides a story, and will be in

a better position to attract a loyal customer base (alternatively known in the business world as

'returning customers').

A lot of small businesses definitely require help in carrying out effective marketing. The agency will

preferentially encourage its clients to be involved in inbound marketing techniques, guiding them to

provide focused content related to their niche market.

Advertising vs. PR

The internet is becoming more and more social. Intelligent brands are focusing on letting users

generate content on their behalf, and thus helping the brand establish a more intimate relationship

with their followers, as opposed to simply using advertising to lure clients in.

Advertising mostly includes all the paid actions that are used to showcase the business to the

people; examples include radio, television and print advertisements. Some people think that

marketing can cost a lot, yet, advertising can actually be the biggest cost of marketing, and that

businesses can actually market themselves in other ways other than advertising!

Advertising should be considered as part of the whole marketing strategy, not the only one. In other

words, a marketing strategy should not only be based on advertising. In fact, there is a distinction to

be made between expensive and inexpensive marketing. If a business spends €200 on a marketing

activity which does not generate a good deal of return, then the company has just invested in

expensive marketing. If the same business spent €20,000 on marketing but realised a profit of

€40,000, then that business surely realised its investment, and it can be said that it carried out

inexpensive marketing.

The company will be guiding new and established

brands with choosing the best ratio of advertising to PR,

and will also help provide fresh approaches to building

lasting relationships with clients. Ultimately, Bknown will

encourage businesses to provide a smaller marketing

budget to provide a bigger return, which in the end

results in a greater profit margin for the business.


7/38

Stronger shift towards mobile

Mobile internet usage is gradually increasing, to a point where it has even surpassed desk based

browsing in certain areas. More and more devices are becoming internet ready, and so is the

interconnectivity between devices. Marketing will soon follow this trend, and the brands that are

ready to respond to this, will quite probably enjoy a better future!

2.2 - Technology review

This section will highlight some of the technologies available to the agency.

Devices: Nowadays, almost everyone in the developed world has access to a computer and to the

internet, and the wide majority of people own a smart phone. This increase in the use of technology

has shifted marketing trends completely, causing the user to be in control of what he wants to see,

and neglecting anything else which might not be important to him. This represents an unparalleled

opportunity for brands to market themselves, only if they choose to market according to what their

audience is requesting!

Search Engine Optimisation (SEO) is the process by which marketers help a website rank higher

when searched through a search engine such as Google. The goal is for a website to appear first

when searched for on a search engine, since this has obvious benefits for the amount of people who

visit the website of the business.

Digital Advertising entails several methods of running effective advertising campaigns on the

internet, and takes into account the planning, execution and analysis of the campaign. The most

popular type is the so-called Pay per Click (PPC) advertising exemplified by those adverts that appear

on the side of the screen when visiting certain websites. The advertiser pays the publisher of these

adverts a fee for each click that is served on these adverts.

Digital Design involves the use of creative packages such as Adobe Illustrator and Adobe Photoshop,

along with a creative approach to designing websites, such that the brand image is emphasised in a

coherent way across all marketing streams. This type of design is very flexible, yet demands a

professional approach, such that the end result looks equally professional.

Email Marketing is a very effective marketing tool. It involves sending e-mails to a customer list, who

would have already had given permission to send them promotional material. Once again, creativity

http://icemalta.com/course/professional-diploma-in-digital-marketing/



8/38

is called for, and the more creative the campaigns are, the better the results one can expect. After

suitable templates are created, creative e-mails can easily be drafted in a matter of minutes by the

user. Another plus point of using e-mail marketing is the fact that results can easily be analysed,

using already existing packages, such as MailChimp.

Social Media Marketing involves the creative use of several social media channels, such as

Facebook, Twitter, Instagram, Youtube and others. A lot of people nowadays are always connected

to such social media platforms, and hence this results in an indispensable marketing opportunity, if

executed well. There is virtually no limit to how creative one might be when approaching social

media. However, it is important that results should always be analysed, such that subsequent

campaigns can be fine-tuned for better reception.

Web Analytics using Google Analytics allows smart businesses to fully measure and monitor their

marketing efforts across their platforms. In advanced stages, it is very possible to align the KPI's (Key

Performance Indicator's) of the business with that of the analytics software, such that the goals of

the business are in line with the digital marketing strategy.

Ultimately, these tools are all available to businesses nowadays, most of them for free. However, to

unleash the potential that these tools possess, all these streams have to be combined in a thought

out marketing strategy, possibly alongside a solid advertising campaign on traditional media. Results

have to be constantly analysed.

Micro and small businesses will definitely not be able to afford employing a full-time employee

responsible for marketing, and hence will definitely require guidance in how to use these tools

effectively, and how to amalgamate all the marketing streams into one coherent plan.

After all, if a car is broken, the driver can either fix it himself, to the detriment of his own work time

and with the possibility that the end result is not as professional. Otherwise, the driver might take

the car to the mechanic for a more professional job and while the car is being fixed, the driver can

continue his work unhindered.




9/38

2.3 - Intellectual property

The business will require the registration of the company name and logo as a registered trademark.

Similarly, registration of web domain names is currently underway. The business will not be

producing any tangible products. Hence, the business will not require registration of designs. It is not

foreseen that the business will be producing any patentable inventions.

The biggest IP resides in the know-how of the employees, who bring specific expertise to the

business.

Other IP Issues

The agency will be generating IP on behalf of its clients. This IP will have in turn been generated

either by employees of the agency, or else by third-parties. This represents some risk in IP

management, which at a later stage might prove to be expensive to manage. Such IP might include:

- Any creative work done by the agency with regards to logo creation, brand creation, artwork,

photography, video productions, content creation, etc.

- Any data gathered from analysis of marketing reports, data from Google Analytics and agreements

with third parties.

In order to reduce risk, each business arrangement with a client will have to be preceded by a

'Professional Services Agreement'. This will be drafted out by a legal professional and should include

the following points:

- The agency will generate IP in order to meet the expected outcome for the sales agreement. This IP

includes any logos, brand work, artwork, and any other creative work undertaken by the agency. The

ownership of this IP will be passed to the client, upon full and final payment of any outstanding

invoices. This will stand only for the final concept presented to the client.

- The client will be responsible for filing any registration of trademarks.

- Unless there is any other agreement, ownership of IP generated during the creation of rejected

concepts will remain strictly with the agency. In this way, the client will own his version of the brand

concept and the agency will be able to recycle elements of unclaimed concepts into other projects.

- Final projects should be allowed to be displayed on the portfolio of the agency, after all the

invoices are settle and transfer of IP to the client is done.


10/38

- Ownership of any IP generated by the employees is strictly owned by the agency, pending transfer

to the client.

- Ownership of any IP generated by third parties is subject to a similar agreement. Ownership of final

work undertaken by third parties will be transferred to the agency and ownership of unclaimed work

will remain with the third-party, unless there is any other agreement.

2.4 - Licensing

The following licences will need to be paid for:

- Adobe Creative Cloud will allow access to creative

software such as Adobe Photoshop and Adobe

Illustrator. This package includes software for the

creation of websites and managing files across

devices and users. This allows the business team to

work seamlessly on each project.

The complete package for business users costs €69.99 per month, per licence.

- Cloud Based storage, such as Dropbox. This will prevent the use of

traditional servers to store files in and will cost around €500 per

year for 5 five licences, paid monthly.


11/38

Key Facts

- Target market of Bknown

Marketing is the micro/small

business sector.

- Smaller businesses are

limited on both manpower

and cash turnover, and

outsourcing marketing work

will prove invaluable to these

businesses.

Target Products

- Social Media Package

- Digital Media Package

- Concept Design Package

- Ultimate Package

Competition

- Strong competition in

sector, but Bknown Marketing

will compete by targeting

smaller business, and using

less expensive prices.

Commercial Strategy

- Digital marketing +Blog

- Brochure distribution

- Seminars and Webinars

3 - Business opportunity

Bknown Marketing will be capable of offering several services related to

marketing and advertising, with a clear focus on digital marketing. Almost any

business needs a solid marketing strategy to survive. However, the core

markets which the business intends to capture will be outlined in the following

sections.

3.1 - Market description

The company will be providing marketing services to small businesses involved

in a wide range of fields. Small businesses are limited on both budget and

manpower. These small businesses will stand a lot to gain with the proper

marketing strategies.

This will be done through a range of services intended to help these small

businesses target their products to the right clients. The leading products will

focus on digital marketing, since this type of marketing will result in huge gains

in spite of being cheaper than traditional marketing streams.

Marketing a business used to be simple. What had to be done was to list the

business in the local Yellow Pages, run some adverts on a popular TV and radio

programme, design some adverts for newspapers, and print some leaflets to

distribute around.

Nowadays though, it is a lot more complex than that.

To start off with, a business with no website online is almost like a man without

a mouth; the ability to reach out to potential clients is severely reduced. The

website has to be kept up to date with the latest design trends and it has to

work well on mobile devices. It then has to be optimised so that it can appear

before other websites when people search for it on a search engine such as

Google. Next, the business has to have its social media presence in check, as

well as look into the possibility of e-mail marketing. Then, the business also has

to consider using the traditional modes of marketing, all while amalgamating

all these streams into one coherent plan.

Without doubt, small businesses usually find marketing tasks to be a struggle.


12/38

Most of the times they would have the right product on offer, but they would not have enough

resources to reach their intended clients. This is even more evident in micro-businesses which

employ less than 10 people (95.1% of all local businesses fall into this category), since manpower

and cash turnover can be a constant struggle. Companies with high turnover usually employ a full on

marketing agency to undertake their creative work, but smaller companies usually cannot find the

funds to pay these big marketing agencies.

According to market research carried out in the months before August 2015, it was observed that

marketing needs for small businesses include:

- Guidance into the most effective marketing streams for their type of business,

- Return on investment has to be very clear,

- An increase in sales,

- The ability to target both new and existing clients,

- Increased awareness about their brand.

What they do not require are:

- High cost, low return offerings,

- Temporary offerings (such as running a random advert on traditional media, which will be

expensive and will not render a good return).

Some small businesses may also require guidance with running their business. In the future, the

company might plan to offer such business consultation aimed specifically at small businesses, in

order to expand the company's service offerings to small businesses.

3.2 - Target products

Bknown Marketing will at the outset offer a number of packages designed to suit the needs of

various client-businesses. These packages can be further tailored to meet various particular needs.

Examples of these packages include:

- 1. Social Media Package:

This would be the least expensive of the packages. It requires that the business

already has the basic design functionality required to be able to market online

(an approved concept and up-to-date artwork). This package is best suited for


13/38

clients who want to explore the possibility of new marketing methods in order to increase their

customer base. It will entail the creation of a digital marketing strategy for a period of around one

year, as well as the creation of appropriate template content for the main social media platforms

relevant to the particular business (Facebook, Instagram, Twitter...). This package will also include

the setting up of an e-mail marketing strategy. Furthermore, the client will also benefit from

updated analysis of the campaigns while they are ongoing.

- 2. Digital Media Package:

This package includes all of the features offered in the Social Media

Package, with the added feature of providing updated Search Engine

Optimisation (SEO) for their websit and analysis of Google Analytics for

their particular website. A PPC (Pay per Click) marketing campaign will also

be explored. This package requires the business to have an up-to-date

website. For a slightly higher price, The Digital Media Package will offer far

better return than the Social Media Package. The client will benefit from

increased web traffic to their website, since efforts from social media will

all be pushed into the website, which obviously offers a more comprehensive look into the particular

business.

- 3. Concept Design Package:

This package will be directed towards those businesses which do not have an

up-to-date concept around their business. These businesses require the

setting up of relevant marketing artwork (such as a theme, a fresh logo,

etc...) before any digital marketing is set to take place. The first step would

be for the agency to understand the business and the client's wants and

needs. This will be followed by a design exercise tailored to the needs of the

particular client. This package will be highly customisable, since it is expected that clients will fall into

varying degrees of readiness for digital marketing. This package will be bundled along with any one

of the previous packages, as part of a one year, or possibly longer, strategy.

- 4. Ultimate Package:

This package will include the amalgamation of all the previous package

offerings, along with analysing the need for pushing into further streams of

marketing, such as traditional marketing on radio, TV and print media, along


14/38

with other possibilities such as organisation of events or expos. This package is considered to be a

complete solution towards digital marketing and will be priced as such. It can be tailored to meet

particular client needs, so as to include a longer term strategy, as well as the possibility for charging

for individual campaigns as part of an overall strategy.

3.3 - Competition

There are several marketing agencies already on the market. There are two separating factors

between them all: their intended target market and what their marketing services focus on.

Some very successful marketing agencies include Think Design, Marketing in Malta, Emma Diacono

Design and Marketing Advisory Services. Looking at the websites of these companies from a small

business point of view, these agencies seem a little, out of reach, something that looks like it will

cost a lot of money to do business with such huge agencies. And that is normally the case! In fact,

their portfolio shows the work they have done to large companies such as Vodafone, Unilever,

Kinnie and BOV amongst others!

In spite of the fact that these businesses do mention that they will cater for different budgets, upon

enquiring, few were willing to serve small businesses. The ones that did quoted thousands of Euros

for the drafting of a simple marketing plan.

Bknown Marketing though will focus more on small businesses. There is some competition in this

area as well. Some examples follow:

Springbox Media do a lot of work with small businesses, but they do tend to

focus a lot on website marketing as a priority, rather than taking a complete

approach towards digital and possibly, non-digital marketing. Their price is relatively mid-range,

though their work is of high quality.

Stevencamilleri.com on the other hand, focuses a lot on brand creation

and digital design (designing of logos, artwork, etc...), before actually

carrying out digital marketing and website creation. They do charge very modest rates though and

they do cater for brand creation, website design and execution of a marketing plan.

Pure Concepts, focus a lot on concept design for new (or possibly existing)

businesses and can also cater for marketing plans, though once again, their focus is

not on digital marketing, but on marketing as a whole (equal balance between

digital and non-digital). They have also recently partnered up with a company


15/38

involved in traditional media such as billboard advertising and printing services. Their strength lies in

creating a Brand Proposal (designing of a brand concept from scratch, with relevant artwork),

however, Pure Concepts do not cater for Web Design at this point in time (they outsource should

there be need to do web design). They charge relatively modest rates for creating a solid brand

image, but they do fall short of providing a complete package at a good cost.

Switch Digital and Defined Branding do a very good job in

providing a complete package for marketing. In fact they started

out primarily targetting small businesses. Currently though, they are

focusing their efforts on clients which can afford to pay a premium

for their services, and their portfolio is constantly being updated with ever bigger companies using

their services.

Bknown Marketing will fall in between these extremes. What the business will be offering is a

complete marketing solution, with a clear focus on digital marketing. Our services will include brand

creation, website design, social media marketing and more importantly, the amalgamation of all

these into one coherent plan. The price point will be accessible to a wide range of small businesses,

where we will cater our offering according to the budget of the client.

At the outset, the average hourly rate for services will be very competitive when compared with the

previous competitors. Competitors usually charge an average of €45 to €60 per hour, for carrying

out most of their tasks. Bknown Marketing will be charging €40 per hour to carry out its main

offerings. Since Bknown Marketing will specialise in digital tools, it is not anticipated that this

reduction in price will result in a decrease in quality.

3.4 - Commercial strategy

The company will be engaged in direct sales with its clients and at the outset will be based in a small

office environment in Valletta.

The first step to reaching clients will be via digital marketing methods. The website will be online

first; an up-to-date, mobile-ready website showcasing what the business is all about. In line with

this, a blog about marketing will be set up. Released periodically, this will showcase some interesting

news in the marketing world, the latest trends as well as some easy to follow guides, while all

providing relevant content to the local market. The point of the blog will be to attract interest and

attention from businesses, albeit in an indirect way! Furthermore, this blog is intended to establish


16/38

the company as a lead voice in the local marketing arena.

The website and blog will be complimented by a solid social media strategy spanning Facebook,

LinkedIn, Twitter and YouTube. The main focus will be on Facebook, since this platform allows better

intelligent targeting of adverts and promotional material to specific audiences.

Furthermore, leaflets will be distributed to retail outlets and businesses in specific areas. These

creative brochures will give a quick glimpse of what the business is all about, along with inviting

interested persons to free seminars and webinars, held exclusively to persons who opt into a

database through our website.

These seminars will provide two main benefits:

- Sessions will be very interactive and will provide clients with information on what marketing work

they can do themselves, and what work would be wiser to leave to a company like ours to do on

their behalf.

- Even if the person opts into the database but does not attend the seminars, by building a database

of business owners (or persons responsible for marketing), the company will be in a better position

to offer specific e-mail marketing to these, in the hope of doing business with them at a later stage.

It is planned that 5% of the annual turnover will go towards marketing the business.

3.5 - Market potential

The business is aimed to provide marketing services to small businesses that may be limited on cash

flow. Hence would want to see fast results from any investment done on marketing.

The potential market includes a wide majority of small business (which do account for 99.9% of all

local businesses), with a greater focus on micro businesses (those businesses which employ less than

ten persons). There are around 30,000 of these micro businesses in Malta which account for 95.1%

share of total local businesses.

Primary market research conducted before August 2015 proved that small businesses are really

looking into ways of effectively marketing their offerings. Digital marketing use is increasing globally

and so is the associated amount of outsourced work to marketing agencies.


17/38

Businesses also were keen to use

an external marketing agency if

they were to retain some control in

what gets marketed. In fact, out of

53 small business owners, 61

percent said that they would use a

marketing agency, especially if

return would be guaranteed, 10

percent already make use of a

marketing agency, and 29% were

not willing to outsource work (which might be related to the fact that a number of respondents

mentioned that digital marketing was not relevant to their area).

A number of respondents of the primary market research also came from the social organisations

and event organisers, however, for the purposes of this plan, these were still treated as small

businesses, since the product that they request would be identical to those which normal small

businesses (retail or otherwise) would request.

A summary of the feasibility study carried out earlier this year is included in the appendices.

On the other hand, most of these businesses might not need marketing services, either because they

already do undertake sufficient marketing, or else they do not feel the need to do so. It is estimated

that the small business will be able to reach and provide services to around 10 - 30 small businesses,

which translates to roughly 0.01% of the number of small businesses in Malta. This number is based

on a rough estimate of the work needed to maintain good work ethic, by employing 4 employees

into the business by the end of the third year.

The number of businesses Bknown will be working with depends on the number and type of

employees engaged in the agency. This will be further outlined in Section 5.

Through extensive market research conducted in a feasibility study, it was estimated that other

marketing companies charge an average of €45 to €60 per hour, for a wide variety of marketing

services.

Since our intended market will be smaller businesses, our pricing strategy will be an effective hourly

charge of €40 per hour of work. The details of arriving to this figure will be given in the financial

analysis. This provides us with a rough figure of how much the packages will cost to the end client.

29%

10% 61%

Not interested in outsourcing

Already Outsource

Interested in outsourcing


18/38

1) Social media Package: this package will entail around 4-6 hours of work per week at the outset,

going down to one hour of work per week for each business. Hence, this package will cost around

€2,320 for one year (around 58 hours work) (average of €190 per month).

2) Digital Media package: this package will entail around 6-8 hours of work per week at the outset,

going down to two hours of work for each business, and hence, this package will cost around €4400

for one year (average of €366 per month) (total of around 112 hours work).

3) Concept Design package: this package will be an add-on to the previous two packages, and hence

will entail around 20 hours of work for each business, and hence, this package will cost around €800

- €1000 in addition to the cost of the previous packages. If the client then requires additional work,

these will be charged at the standard rate of €40/hour.

4) Ultimate package: this package will entail around 30 hours of work per week for the first month,

going down to 4 hours per week for each business. This package will cost around €12,480 for one

year (€1,040/month) (around 312 hours work).

The values quoted above only give us a rough idea of how much each package will cost, even though

these are highly negotiable depending on the workload required by the client. They do give us an

idea of the total workload the business aims to capture in order to be feasible with the amount of

hours available to work.


19/38

Key Facts

Founder

- Ryan Saliba

- Founder has experience in

handling a business start-

up, marketing work related

to small businesses, digital

marketing and digital

design.

Operating Team

Will consist of:

- Web Designer

- Graphic Designer

- Social Media & PR

Specialist

Main Consultants

- A.A. Financial Services

- Gonzi & Associates

4 - Management & Operating Team

4.1 - Founder-Director

The director, Ryan Saliba, who is also the founder, is currently undertaking a

Master's Degree in Knowledge Based Entrepreneurship and a Professional

Diploma in Digital Marketing. The founder already undertook a Diploma in Design

Studies and worked for almost two years as a Marketing Executive in a successful

start-up sports retail company. Acquiring the role by chance and not by

educational background, it was possible for him to learn all the tools of the trade

the hard way. This experience allowed him to notice gaps in how a small company

markets itself and what means are available to make a brand become known,

with the lowest budget possible. Similarly, he noticed that it is very hard for a new

or a small company to grow without employing a good marketing strategy, with

up-to-date techniques in digital marketing. During the course of work, the

founder also observed that the best marketing strategies for a small business or a

start-up need not costs thousands and a small business might enjoy a good return

by focusing on the essentials.

In fact, the director noticed that small companies tend to put all their eggs in one

basket and commit the majority of their budget to one type of marketing (e.g.

using up the entire budget for a commercial to air on only one station) without

actually spreading the budget into more productive forms of marketing.

The inspiration for the director to open up his own marketing agency was a small

local bike shop, which had no knowledge in marketing and as such, killed its own

growth since people did get to know the outlet other than word of mouth. In such

a case, it would have been very simple to employ a very simple digital marketing

strategy with a limited budget, in order to attract a wave of new customers.

The director is also a keen outdoor enthusiast, involving himself in several sports

and outdoor activities.


20/38

4.2 - Key Employees

Web Designer

A web designer will be needed within the first six months of operating,

specifically to meet the needs of businesses requesting the Ultimate Package.

This web designer will be responsible for creating websites and should have a

proficiency in graphic design and programming. At the outset, this web designer

will be required to provide assistance to the founder in other areas of the

business, such as helping out in the other package offerings.

Graphic Designer

This person will be responsible for communicating visually the design ideas

recommended by the clients and should be fairly proficient in design and technical

skills. This person will mainly be responsible for the Concept Design Package, as

well as providing valuable feedback into the other packages.

Social Media + PR Specialist

This person will be responsible for building the client's online presence and brand

awareness by employing social media tactics. Furthermore, this person will need

to provide feedback when clients request additional marketing feedback, such as

in creating successful events. The ideal candidate will have strong sense of online

communication and business analysis skills.

4.3 - Consultants

Accounting

General accounting and auditing work will be carried by A.A. Financial Services. This

business will provide Bknown Marketing with:

- General accounting tasks, such as tax returns

- Feedback on running the business

- General auditing

- Monthly payroll service for employees


21/38

Legal Advice

Legal consultation work will be handled by Gonzi & Associates. This firm will provide the

business with:

- Legal advice, such as best type of business structure

- Registration of any IP and domain names

- Any employment law and operating licence requirements

- Any contractual work

- General feedback on running the business


22/38

Key Facts

- Bknown Marketing will

operate as a sole trading

business.

- Can start operating from

January 2016

Main talents requested:

- Web designer

- Graphic Designer

- Social Media + PR

specialist

Finance Needed

- €10,000 brought in by

founder as Proprietors

Investment.

- €10,000 business loan

re-payable over three years.

- €5,000 overdraft facility

required for daily working

requirements.

5 - Operating Plan

5.1 - Main Business Milestones

When is the business expected to start operating?

Bknown Marketing intends to start operating in January 2016. This allows the

founder to complete his qualifications in Entrepreneurship and Digital

Marketing, so as to allow the business to enjoy some goodwill on behalf of the

founder.

The business intends to start trading as a sole trading business, since it is

anticipated that the business will carry relatively little risk, at least initially.

Who will do the work?

It is estimated that the founder will take care of the day to day running of the

business for the first five months of 2016. This will include looking for initial

sales, along with providing initial marketing services for the first clients.

Throughout the first three years, the founder will then need to take on the

talents of a dedicated Web Designer, Graphic Designer and PR and Social

Media Specialist

This team of creatives will allow the business to provide the best possible final

products to its clients.

When will employees be taken aboard?

Employee Proposed Employment month

Web Designer June 2016

Graphic Designer March 2017

PR & Social Media Specialist March 2018


23/38

What clients are we expecting?

The following table suggests what number of clients we will be expecting per quarter.

It is to be noted that the numbers actually represent the number of clients doing business with the company at any point in time and not the number of new clients. This means that there will be a mixture of carryover customers (say customers who agree to do business with us for one year) and new customers.

These values are roughly reflected on a monthly basis in the cash flow forecast attached in the appendices. The cash flow forecast allows for thirty day payment terms.

Period Social Media Package

Digital Media Package

Concept Design Package

Ultimate Package

2016 Q1 2 2 1 0

Q2 2 2 1 0

Q3 4 6 2 1

Q4 4 6 2 1

2017 Q1 4 6 2 1

Q2 5 6 4 2

Q3 5 6 5 2

Q4 6 8 6 3

2018 Q1 8 8 6 3

Q2 8 8 6 4

Q3 10 10 8 4

Q4 10 10 8 4


24/38

5.2 - Resource requirements

What skills are required?

The founder will handle the first few months of undertaking business. Tasks will include looking for

initial clients and undertaking basic digital marketing tasks for the first confirmed clients, specifically

the Social Media, Digital Design and Concept Design packages.

A web designer, ideally with some design background, will be needed after the first few months, to

provide the web designing functionality needed in the Ultimate Package. This web designer will also

be able to assist in the day to day maintenance of the other packages.

In the second year, a graphic designer with a creative background will be needed in order to provide

a more comprehensive approach to the Concept Design package, along with widening our solutions

in the other packages.

The third year will see the need for someone to specifically manage social media channels on behalf

of clients, along with having experience in carrying out successful PR campaigns, which might include

marketing events.

Where will the work be done?

Negotiations are underway to acquire a small office space in Valletta, to rent for €500 monthly for a

three year term.

This office is already furnished, but will require some additional furnishing to suit the needs of the

business. Main amenities, including internet and telephony, are already included. It is calculated

that at the outset, these additions will cost around €4,500.

Insurance

Insurance services will be provided by Citadel Insurance. An operational package consisting of

Property Insurance, Business Interruption Insurance, Employer's Liability, Public Liability and

Electronic Equipment Insurance, is estimated to cost around €800 per year, for the three year term.

Payments can be split for twice per year.


25/38

Computer Resources at the outset

The company will require the purchase of a standard high performance laptop to carry out the initial

tasks. It is expected that some computer equipment will need to be bought throughout the starting

years of the business. These costs are estimated in the cash flow forecast under 'Capital Expenditure

& Investments.

Licensing of Software + Cloud-based Storage

The company will require the use of the Adobe Creative Cloud platform, which allows access to a

whole suite of tools essential for carrying out work. This platform will cost the business €70 for each

licence per month.

Furthermore, the company will have to pay annual storage options on a cloud-based storage website

to store all the files that the company will be working with. Such websites include Dropbox and

Google Drive, which will cost the company around €600/year.

5.3 - Corporate alliances

Talks are underway to establish a partnership with a local printing

agency, AF Sign Studios, which are based in Gudja. This company

provides for basic and large format printing needs and also fabrication,

signage and vehicle wrapping, amongst other projects which could be handled according to the

project type. This company also provides billboard rentals through a partner company, should the

need arise in specific projects.


26/38

5.4 - Financial analysis

What are the expected sales figures? And costs?

The graph below provides a quick look into the expected sales income generated by quarter, along

with the costs, and the difference between sales and costs.

For a full analysis, please refer to the cash flow forecast present in the appendices.

What are the initial cash needs?

The business will require financing of €20,000 at the beginning of business, €10,000 of which will come from the founder and another €10,000 which will be finance from a business loan.

The business will also require an overdraft facility of €5000.

For a full analysis, please refer to the cash flow forecast present in the appendices.

2016 Q1

Q2 Q3 Q4 2017 Q1

Q2 Q3 Q4 2018 Q1

Q2 Q3 Q4

Sales 600 5,200 13,500 18,000 17,000 25,200 27,700 36,000 36,900 39,500 46,500 46,500

Costs 15,585 12,101 15,681 15,042 20,589 21,370 21,267 20,791 28,661 28,663 29,063 28,663

Profit -9,849 -6,365 1107.3 1745.5 -3,801 3,908 6,411 15,173 8,444 11,562 19,298 19,698

-20000

-10000

0

10000

20000

30000

40000

50000

Am

ou

nt

€


27/38

6 - Appendices

6.1 - Short-form CV's and Job Descriptions

Ryan Saliba - Short CV - Founder of Bknown Marketing

A: 11, Angerita, Gallu Street, Fgura, FGR1404, Malta

T: +356 99227689

E: [email protected]

Education

- Primary & Secondary Education at St. Albert the Great College, Valletta.

- Higher Secondary Education at G.F. Abela Junior College, with A-levels in Maths & Physics.

- University of Malta Education: o Diploma in Design Foundation Studies o B.Sc. in Built Environment Studies o M. Sc. In Knowledge Based Entrepreneurship (Currently in progress)

- Other Education: o Professional Diploma in Digital Marketing, held at the Institute of Computer

Education on behalf of the Digital Marketing Institute. (Currently in progress).

Employment History

- Marketing Manager for three years at a successful start-up retail outlet, Mochika - Outdoor Life. Was part of a team of four people building the business from its beginning to a successful business.

- This provided skills in business management relating to start ups, specific low-cost marketing techniques and the ability to handle different roles at any one time (be it marketing, sales or general management).

Other Skills

- Part of a team who won the Social Impact award at the 2015 Malta Start-up Weekend, an activity where a business idea is created and tested over the course of an intensive weekend. The resulting business idea was called Health Hero, a social platform where funds are gathered for specific persons in need, by means of willing donators signing up for innovative challenges.


28/38

Summary of Job Descriptions:

Job title Web Designer (Full-Time)

Requirements - Computing based Degree at University level or similar.

- Experience in web designing.

- Ability to understand and use Google Analytics.

- Strong understanding of programming languages.

- An understanding of marketing tactics and graphic design.

Job Objectives - Web Designing (both front-end and back-end) for potential business clients.

- Able to handle simple marketing tasks, such as an understanding of how best

to use social media to influence web traffic.

- Ability to work in a micro business (small team) environment.

Job title Graphic Designer (Full-Time)

Requirements - Previous education on graphic design at University level or similar.

- Previous experience in a graphic design role.

- Experience with handling type design, drawing, computer-assisted design,

digital media and photography.

- Creative yet technical (practical) reasoning.

- An understanding into basic marketing principles.

Job Objectives - Graphic Designing of any element requested by clients

- Able to handle simple marketing tasks, such as an understanding of how best

to use graphic design to influence brand uptake.



29/38

Job title Social Media & PR Specialist (Full-Time)

Requirements - Previous education on a marketing related degree at University level or

similar.

- Previous experience in a marketing role, handling social media channels or PR.

- Experience with handling social media channels to influence brand awareness.

- Ability to handle non-digital PR events in conjunction with digital marketing

tactics.

- Creative yet technical (practical) reasoning.

- An understanding into advanced marketing principles.

Job Objectives - Handling of social media channels to generate effective brand awareness.

- Analysing of social media marketing results, such that future marketing

campaigns can be optimised for better uptake.

- Ability to organise PR events as clients' request.

- Able to handle advanced marketing tasks, such as an understanding of how

best to use social media and traditional media to influence brand uptake.



30/38

0%

5%

10%

15%

20%

Temporary Consultation

Frequent Consultation

Handling of design and

concept work

Handling of social media

channels

Updating and managing of

website

Handling all marketing

efforts.

Chart 5: Level of involvement of external marketing agency?

6.2 - Feasibility of business idea

The business idea was tested in a feasibility study carried out by the owner in the months leading to

July 2015. Both Primary and Secondary research were carried out. The following is a summary of the

main points found out in this Feasibility Study.

Primary Research

Primary research was carried out in the form of a questionnaire. A total of 53 respondents were

gathered.

28%

19% 30%

12%

11%

Chart 1: Respondents were coming from:

Retail

Business (not retail)

Social Organisation

Event Organiser

Other

10%

19%

22%

2%

50%

Chart 2: Expectations of return from paying for marketing services: Increased Sales

Greater brand awareness

Reach new clients

Target existing clients

All of the above

25%

25%

9%

9%

12%

18%

2%

Chart 3: Factors which limit digital marketing activity?

Not enough time

Too expensive

Doubtful about return

Digital marketing not relevant

Satisfied with current level of marketing

No experience in digital marketing

Have a digital marketeer on board

61%

29%

10%

Chart 4: Consider using services of external marketing agency? Yes

No

Already use external marketing agency.


31/38

Secondary Research

In 2014, Switch Digital, which is a local digital marketing agency, carried out a survey to study

attitudes towards digital marketing, what the companies accomplished in 2014, and what they aim

to accomplish in 2015. The survey was carried out online, and managed to gather a broad sample

across a number of companies, ranging from sole-trading up to very large businesses. There were 61

full survey responses. The survey was only open to those companies who only do some (even if bare

minimum) digital online marketing. In fact, it was noticed that a large number of companies do not

market online (huge potential for doing business!) and these were not included in the survey.

The full report can easily be found on their website, www.switch.com.mt


32/38


33/38

6.3 - Marketing Brochure


34/38


35/38

6.4 - Pricing Strategy + Cash Flow Forecast

Costs & Profit

According to cash-flow forecast: Total costs for three years: €258,898. Hence, average of €86,299

per year.

Assuming business is to generate a 20% profit margin. Annual costs + 20% profit = €103,559

Cost to client per hour

Now, assuming workers work 48 weeks/year, 20 days/month and 7.5 hours/day = 1,800

hours/year/employee.

Assuming there will be three employees working in the company (maximum of 4 allowed in cash

flow forecast, hence accounting for three employees for safety factor). Therefore, total working

hours = 5,400 hours/year

Therefore cost / hour = €103,559 / 5,400 = €19.18/hour

But, keeping in mind workers will not spend all the hours doing direct client work. Hence, by

applying a safety factor of the employees working only half the hours, 2,700 hours.

Hence, cost/hour = €103,559 / 2700 = €38.35 / hour rounded off to €40/hour.

Approximate Pricing of Product Packages

1) Social Media Package will take approximately 4.75 hours work per month, per client, hence,

€190/month/client

2) Digital Media Package will take approximately 9.15 hours work per month, per client, hence,

€366/month/client

3) Concept Design Package will take approximately 20 hours of work (add-on to previous packages)

and hence will cost around €800/package.

4) Ultimate Package will take approximately 30 hours at the outset, and 4 hours per month and

hence will cost around €1,040/month/client

In order to come up with sales predictions, these figures were multiplied by the likely number of customers per quarter (table under Section 5.1).


36/38


37/38


38/38

final business plan to send

Documents