PRfect Greens is an environmental PR firm based in Eugene, Ore. They specialize in crisis management, image creation, and managing publicity events for companies with sensitive environmental concerns. Their clients include mining, natural gas extraction, and lumber companies who want to improve their public environmental image. PRfect Greens differentiates itself from other PR firms through its specialized skill set and flexibility. With two industry professionals at its helm, PRfect Greens aims to achieve profitability by month 10 and generate significant revenues by year three.

Public Relations Business Plan Example

1.1 Mission

PRfect Greens’ mission is to provide the highest quality environmental PR consultancy. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed customer expectations.

1.2 Keys to Success

The keys to success are attention to detail, thinking outside the box, professionalism, and results.

1.3 Objectives

The objectives for the first three years include:

1. To create a start-up company whose primary goal is to exceed customer expectations.

2. To increase the number of clients served by at least 20% per year through superior performance and referrals.

3. To develop a sustainable business that can survive off its own cash flow.

Company Summary

PRfect Greens is an environmental PR consultancy firm that specializes in working with companies perceived as anti-environmental.

PRfect Greens is a partnership of two industry PR veterans, Birk Grunola and Arbor Hugger.

PRfect Greens will provide PR services to local and regional firms in need of immediate reactionary help and long-term management.

2.1 Company Ownership

PRfect Greens is a private partnership owned equally by Birk Grunola and Arbor Hugger.

2.2 Start-up Summary

The following equipment will be needed. Please note that items considered assets to be used for more than a year will be labeled long-term assets and will be depreciated using the GAAP-approved straight-line depreciation method.

– Two desks and chairs.

– Two file cabinets.

– Two computer systems including one license of QuickBooks Pro, two licenses of Microsoft Office, a CD-RW, printer, digital camera, and a DSL connection.

– Burrelle’s media directory.

– Subscription to LexisNexis researching tools.

– Website development.

Public Relations Business Plan Example

Start-up Requirements:

– Legal: $1,000

– Stationery etc.: $50

– Brochures: $100

– Website development: $1,000

– Lexis Nexus subscription: $300

– Total Start-up Expenses: $2,450

Start-up Assets:

– Cash Required: $59,850

– Other Current Assets: $0

– Long-term Assets: $3,700

– Total Assets: $63,550

Total Requirements: $66,000

Start-up Funding:

– Start-up Expenses to Fund: $2,450

– Start-up Assets to Fund: $63,550

– Total Funding Required: $66,000

Assets:

– Non-cash Assets from Start-up: $3,700

– Cash Requirements from Start-up: $59,850

– Additional Cash Raised: $0

– Cash Balance on Starting Date: $59,850

– Total Assets: $63,550

Liabilities and Capital:

– Liabilities:

– Current Borrowing: $0

– Long-term Liabilities: $0

– Accounts Payable (Outstanding Bills): $0

– Other Current Liabilities (interest-free): $0

– Total Liabilities: $0

Capital:

– Planned Investment:

– Arbor: $33,000

– Birk: $33,000

– Additional Investment Requirement: $0

– Total Planned Investment: $66,000

Loss at Start-up (Start-up Expenses): ($2,450)

Total Capital: $63,550

Total Capital and Liabilities: $63,550

Total Funding: $66,000

Services:

PRfect Greens offers environmental PR services. These services cater to gas, mining, and lumber companies aiming to enhance their environmental image or handle crises. The main services provided are:

– Crisis management: Reactive/proactive assistance in managing crises or situations that may negatively impact the public image of environmentally sensitive companies.

Market Analysis Summary:

PRfect Greens will mainly target gas, mining, and lumber companies within the environmental PR space. These industries have significant business activity and have struggled with maintaining a favorable public image. The company will utilize tailored advertising campaigns and networking activities for each industry.

Market Segmentation:

PRfect Greens has three customer groups:

– Gas companies: Engaged in subterranean drilling for natural gas reserves. They may seek PRfect Greens’ assistance in strengthening their image as environmentally friendly energy providers. Additionally, they may require crisis management services or promotional activities.

Public Relations Business Plan Example

Market Analysis:

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Gas companies 15 16 17 18 19 6.09%

Mining companies 44 48 52 57 62 8.95%

Lumber companies 38 41 44 47 50 7.10%

Total 97 105 113 122 131 7.80%

4.2 Target Market Segment Strategy

The selected customer segments will be targeted in an advertising and networking campaign.

Advertising: This campaign will target prospective customers through industry trade journals. It will highlight PRfect Greens as a specialized environmental PR firm that provides proactive and reactive PR services. The advertisements will also showcase the founders’ expertise and the services provided by PRfect Greens.

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4.3 Service Business Analysis

The PR industry in Eugene has various competitors. However, few possess the specialized skills required for environmental PR work. Competitors include general communication firms, small local PR firms, and large national firms.

PRfect Greens will gain market share by leveraging their competitive edges, which include their specialized skill set for environmental PR and their flexibility in addressing client needs.

4.3.1 Competition and Buying Patterns

Competition exists in the form of general communication firms, which offer a wide range of communication services. Buying patterns for companies typically involve RFPs for larger companies and informal referrals/networking for smaller clients.

Strategy and Implementation Summary

PRfect Greens’ marketing and sales strategies aim to establish visibility and communicate their unmatched service offering. They emphasize their specialized skill set and flexibility in serving clients.

5.1 Competitive Edge

PRfect Greens’ competitive edge lies in their specialized skill set. This allows them to provide valuable insight into the customer’s industry and its relationship with public relations.

5.2 Marketing Strategy

PRfect Greens will use targeted advertising and networking to generate visibility and communicate their message as the premier environmental PR firm. Advertising will focus on specific industry journals, chosen to reach a specific demographic. Networking activities will leverage existing relationships established by Birk and Arbor.

5.3 Sales Strategy

The sales strategy focuses on turning prospective customers into long-term clients. It involves a presentation outlining PRfect Greens’ services, personalized attention, past client portfolio, and creative thinking. The portfolio itself will showcase PRfect Greens’ creativity and competence.

5.3.1 Sales Forecast

The first month will be dedicated to setting up the office and devising the marketing campaign, with no sales activity. The second month will see a small amount of activity with limited duration projects.

By month three and four, visibility will have increased, leading to a growing number of inquiries and projects.

Sales will steadily increase, reaching profitability by month 10, and continuing to increase through the end of year three.

Public Relations Business Plan Example

Public Relations Business Plan Example

Sales Forecast:

Sales Forecast
Year 1 Year 2 Year 3
Sales
Crisis management $18,700 $48,000 $55,000
Image management $46,069 $104,556 $115,676
Event management $29,945 $67,961 $75,189
Total Sales $94,714 $220,517 $245,865
Direct Cost of Sales Year 1 Year 2 Year 3
Crisis management $935 $2,400 $2,750
Image management $2,303 $5,228 $5,784
Event management $1,497 $3,398 $3,759
Subtotal Direct Cost of Sales $4,736 $11,026 $12,293

5.4 Milestones

PRfect Greens will have several milestones early on:

  1. Business plan completion. Business plans are typically created to secure capital, but PRfect Greens will use the plan to develop a strategic focus and track adherence to the plan at multiple intervals.
  2. Office set up.
  3. Establishment of the first major project.
  4. Near full service capacity.

Public Relations Business Plan Example

Milestones:

Business plan completion 1/1/2001 2/1/2001 $0 Arbor Marketing
Office set up 1/1/2001 2/1/2001 $0 Birk Department
Establishment of the first major project 1/1/2001 7/1/2001 $0 Arbor & Birk Department
Near full service capacity 1/1/2001 8/30/2002 $0 Everyone Department
Totals $0

Web Plan Summary:

The website will serve as a resource for developing visibility, disseminating information such as a portfolio of past projects and case studies, and providing a way for prospective customers to contact PRfect Greens.

Website Marketing Strategy:

The marketing of the website will include the following actions:

– Search engine submission for prospective customers using the Internet for research. PRfect Greens will submit their site to popular search engines to appear at the top of the search list.

– Advertising the site through written materials distributed to prospective customers.

Development Requirements:

The website development will be done by a University of Oregon computer science graduate student. The student will be chosen for their technical competence and below-market rates.

Management Summary:

Birk Grunola:

Birk received a BS in communications and environmental science from the University of Oregon. He worked for the Weyerhauser corporation in their marketing department and eventually became the head of the in-house staff for external communications. After five years in this position, Birk wanted more flexibility and autonomy.

Arbor Hugger:

Arbor received a biology degree from American University. He worked for the Environmental Protection Industry (EPA) in Washington D.C., progressing to a managerial role in external communications. After 10 years at the EPA, Arbor sought a more progressive organization and became the PR director for the National Gas Exploration Association. After three years, Arbor wanted more flexibility. Arbor and Birk, who remained in contact since high school, decided to start their own firm after realizing they were both unhappy in their current jobs.

Personnel Plan:

Birk and Arbor are the firm’s principals. They will hire a part-time administrative assistant by month four.

Personnel Plan
Year 1 Year 2 Year 3
Arbor $48,000 $60,000 $70,000
Birk $48,000 $60,000 $70,000
Administrative assistant $8,640 $11,520 $15,000
Total People 3 3 3
Total Payroll $104,640 $131,520 $155,000
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Financial Plan:

This section will outline important financial information.

Important Assumptions:

The following table details important financial assumptions.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

Key Financial Indicators:

The following table outlines the key financial indicators.

Public Relations Business Plan Example

Break-even Analysis determines the monthly revenue required to reach the break-even point.

Public Relations Business Plan Example

Break-even Analysis
Monthly Revenue Break-even $11,725
Assumptions:
Average Percent Variable Cost 5%
Estimated Monthly Fixed Cost $11,139

8.4 Projected Profit and Loss

The table below shows projected profit and loss.

Public Relations Business Plan Example

Public Relations Business Plan Example

Public Relations Business Plan Example

Public Relations Business Plan Example

Pro Forma Profit and Loss:

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $94,714 $220,517 $245,865
Direct Cost of Sales $4,736 $11,026 $12,293
Other Production Expenses $0 $0 $0
Total Cost of Sales $4,736 $11,026 $12,293
Gross Margin $89,978 $209,492 $233,572
Gross Margin % 95.00% 95.00% 95.00%
Expenses
Payroll $104,640 $131,520 $155,000
Sales and Marketing and Other Expenses $4,200 $4,200 $4,200
Depreciation $732 $732 $732
Leased Equipment $0 $0 $0
Utilities $1,200 $1,200 $1,200
Insurance $1,200 $1,200 $1,200
Rent $6,000 $6,000 $6,000
Payroll Taxes $15,696 $19,728 $23,250
Other $0 $0 $0
Total Operating Expenses $133,668 $164,580 $191,582
Profit Before Interest and Taxes ($43,690) $44,912 $41,990
EBITDA ($42,958) $45,644 $42,722
Interest Expense $0 $0 $0
Taxes Incurred $0 $13,473 $12,597
Net Profit ($43,690) $31,438 $29,393
Net Profit/Sales -46.13% 14.26% 11.95%

Projected Cash Flow

The chart and table below show projected cash flow.

Public Relations Business Plan Example

Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $33,150 $77,181 $86,053
Cash from Receivables $43,071 $118,773 $154,863
Subtotal Cash from Operations $76,221 $195,954 $240,916
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $76,221 $195,954 $240,916

Projected Balance Sheet

The following table indicates the projected balance sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $1,465 $10,676 $36,174
Accounts Receivable $18,493 $43,057 $48,006
Other Current Assets $0 $0 $0
Total Current Assets $19,958 $53,733 $84,180
Long-term Assets
Long-term Assets $3,700 $3,700 $3,700
Accumulated Depreciation $732 $1,464 $2,196
Total Long-term Assets $2,968 $2,236 $1,504
Total Assets $22,926 $55,969 $85,684
Liabilities and Capital
Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $3,066 $4,671 $4,992
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $3,066 $4,671 $4,992
Long-term Liabilities $0 $0 $0
Total Liabilities $3,066 $4,671 $4,992

Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8743, Public Relations Service, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 132.82% 11.49% 8.60%
Percent of Total Assets
Accounts Receivable 80.67% 76.93% 56.03% 24.20%
Other Current Assets 0.00% 0.00% 0.00% 44.30%
Total Current Assets 87.05% 96.00% 98.24% 72.50%
Long-term Assets 12.95% 4.00% 1.76% 27.50%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Accounts Payable 13.37% 8.35% 5.83% 45.00%
Long-term Liabilities 0.00% 0.00% 0.00% 17.00%
Total Liabilities 13.37% 8.35% 5.83% 62.00%
Net Worth 86.63% 91.65% 94.17% 38.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.00% 95.00% 95.00% 0.00%
Selling, General & Administrative Expenses 141.13% 80.74% 83.05% 79.40%
Advertising Expenses 2.53% 1.09% 0.98% 1.20%
Profit Before Interest and Taxes -46.13% 20.37% 17.08% 2.40%
Main Ratios
Current 6.51 11.50 16.86 1.71
Quick 6.51 11.50 16.86 1.36
Total Debt to Total Assets 13.37% 8.35% 5.83% 62.00%
Pre-tax Return on Net Worth -219.99% 87.55% 52.04% 5.10%
Pre-tax Return on Assets -190.57% 80.24% 49.01% 13.50%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -46.13% 14.26% 11.95% n.a
Return on Equity -219.99% 61.28% 36.43% n.a
Activity Ratios
Accounts Receivable Turnover 3.33 3.33 3.33 n.a
Collection Days 55 78 104 n.a
Accounts Payable Turnover 10.78 12.17 12.17 n.a
Payment Days 27 25 29 n.a
Total Asset Turnover 4.13 3.94 2.87 n.a
Debt Ratios
Debt to Net Worth 0.15 0.09 0.06 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $16,892 $49,062 $79,187 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios Year 1 Year 2 Year 3
Assets to Sales 0.24 0.25 0.35 n.a
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General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss:

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $0 $1,815 $3,132 $4,749 $5,519 $9,399 $8,468 $8,427 $11,735 $12,575 $13,351 $15,545
Direct Cost of Sales $0 $91 $157 $237 $276 $470 $423 $421 $587 $629 $668 $777
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $91 $157 $237 $276 $470 $423 $421 $587 $629 $668 $777
Gross Margin $0 $1,724 $2,975 $4,511 $5,243 $8,929 $8,045 $8,005 $11,148 $11,946 $12,684 $14,768
Gross Margin % 0.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00%
Expenses
Payroll $8,000 $8,000 $8,000 $8,960 $8,960 $8,960 $8,960 $8,960 $8,960 $8,960 $8,960 $8,960
Sales and Marketing and Other Expenses $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Depreciation $61 $61 $61 $61 $61 $61 $61 $61 $61 $61 $61 $61
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Payroll Taxes 15% $1,200 $1,200 $1,200 $1,344 $1,344 $1,344 $1,344 $1,344 $1,344 $1,344 $1,344
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $10,311 $10,311 $10,311 $11,415 $11,415 $11,415 $11,415 $11,415 $11,415 $11,415 $11,415 $11,415
Profit Before Interest and Taxes ($10,311) ($8,587) ($7,336) ($6,904) ($6,172) ($2,486) ($3,370) ($3,410) ($267) $531 $1,269 $3,353
EBITDA ($10,250) ($8,526) ($7,275) ($6,843) ($6,111) ($2,425) ($3,309) ($3,349) ($206) $592 $1,330 $3,414
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($10,311) ($8,587) ($7,336) ($6,904) ($6,172) ($2,486) ($3,370) ($3,410) ($267) $531 $1,269 $3,353
Net Profit/Sales 0.00% -473.10% -234.25% -145.38% -111.82% -26.45% -39.80% -40.46% -2.27% 4.22% 9.50% 21.57%

Pro Forma Cash Flow

Cash Received

– Cash from Operations

– Cash Sales

– Cash from Receivables

Subtotal Cash from Operations

Additional Cash Received

– Sales Tax, VAT, HST/GST Received

– New Current Borrowing

– New Other Liabilities (interest-free)

– New Long-term Liabilities

– Sales of Other Current Assets

– Sales of Long-term Assets

– New Investment Received

Subtotal Cash Received

Expenditures

– Expenditures from Operations

– Cash Spending

– Bill Payments

Subtotal Spent on Operations

Additional Cash Spent

– Sales Tax, VAT, HST/GST Paid Out

– Principal Repayment of Current Borrowing

– Other Liabilities Principal Repayment

– Long-term Liabilities Principal Repayment

– Purchase Other Current Assets

– Purchase Long-term Assets

– Dividends

Subtotal Cash Spent

Net Cash Flow

Cash Balance

Pro Forma Balance Sheet

Assets

– Current Assets

– Cash

– Accounts Receivable

– Other Current Assets

– Total Current Assets

Long-term Assets

– Long-term Assets

– Accumulated Depreciation

– Total Long-term Assets

Total Assets

Liabilities and Capital

– Current Liabilities

– Accounts Payable

– Current Borrowing

– Other Current Liabilities

– Subtotal Current Liabilities

Long-term Liabilities

Total Liabilities

Paid-in Capital

Retained Earnings

Earnings

Total Capital

Total Liabilities and Capital

Net Worth

Public Relations Business Plan Example

Business Plan Outline

  • Executive Summary
  • Company Summary
  • Services
  • Market Analysis Summary
  • Strategy and Implementation Summary
  • Web Plan Summary
  • Management Summary
  • Financial Plan
  • Appendix

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