Are you about starting a LED screen advertising company? If YES, here is a complete sample LED screen advertising business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a LED screen advertising business. We also took it further by analyzing and drafting a sample LED screen advertising business marketing plan template backed up by actionable guerrilla marketing ideas for LED screen advertising businesses. So let’s proceed to the business planning section.
Establishing a niche business idea is a surefire way to stay on top of your industry. For example, if you are into branding and advertising, one niche business idea that you can start is LED screen advertising business. LED screen display is a flat panel display that uses an array of light-emitting diodes as pixels for a video display. When you make use of LED screen to advertise your goods or services; it is easier for your target market to be attracted.
The truth is that this business is highly profitable because every business would want to increase sales, though your level of profitability is dependent on your ability to come up with workable solutions to advertising cum publicity challenges for various businesses.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your products.
Know that it is one thing to have a fantastic idea cum business plan, but another thing for the business plan to translate to profits, that is why it is important to assemble a team of dedicated workers to work with if you want to be successful with your LED screen advertising business.
Below is a sample LED screen advertising business plan template that can help you to successfully write your own with little or no difficulty.
A Sample LED Screen Advertising Business Plan Template
1. Industry Overview
A LED screen display is a flat panel display, which uses an array of light-emitting diodes as pixels for video display. Their brightness allows them to be used outdoors where they are visible in the sun for store signs and billboards, and in recent years they have also become commonly used in destination signs on public transport vehicles, as well as variable-message signs on highways.
LED displays are capable of providing general illumination in addition to visual display, as when used for stage lighting.
LED screen advertising business is grouped under the billboard & outdoor advertising industry and the industry is composed of companies that create and design advertising materials for public display, including printed, painted or electronic displays.
Billboard & outdoor advertising agency may place the displays on billboards or panels as well as on or within transit vehicles, shopping malls, retail stores and other display structures or sites. If you are a close observer of happenings in the billboard & outdoor advertising industry, you will notice that over the five years to 2018, revenue for the industry is expected to increase.
Industry operators generate revenue through leasing of advertisement space on display faces, including billboards, public transit and street furniture.
The industry experienced stiff competition from various advertising media, but nonetheless, billboards remain an attractive form of advertising because of their ability to reach a mass market, a feat that is becoming more difficult as consumer markets fragment.
Advertising clients are increasingly requesting the measurement of impression and exposure. This has been detrimental to the industry because this reach is easily deliverable through the various quantifiable metrics that online and social media advertisements offer.
The billboard and outdoor advertising industry is in the mature phase of its life cycle and luckily for the industry, the advent of digital media has provided an opportunity for the industry to explore and experience vibrant growth. Of course, the industry is becoming more concentrated, as seen by a few large global firms dominating the market and gaining huge market share of the available market.
The Billboard and Outdoor Advertising Industry is indeed a very large industry and pretty much thriving in all parts of the world.
Statistics has it that in the united states of America alone, there are about 13,103 licensed and registered billboard and outdoor advertising agencies (including strictly LED screen advertising companies) responsible for employing about 37,300 employees and the industry rakes in a whooping sum of $9 billion annually with an annual growth rate projected at 0.6 percent.
It is important to state that the establishments with lion shares of the available market in this industry are CBS Outdoor, Clear Channel Outdoor Holdings and Lamar Advertising.
A recent report published by IBISWorld shows that the Billboard and Outdoor Advertising industry is composed of companies that create and design advertising materials for public display, including printed, painted or electronic displays.
The report shows that operators may place displays on billboards or panels as well as on or within transit vehicles, shopping malls, retail stores and other display structures or sites.
In the report, it was stated that over the five years to 2018, industry revenue has increased marginally at an annualized rate of 0.6 percent to $8.6 billion. In 2018 alone, industry revenue is expected to grow at 1.9 percent. During the period, industry revenue has been supported by strong growth in total advertising expenditure, consumer spending and corporate profit.
To sum up, LED screen advertising business cannot be phased out despite the change in advertising approaches and the emergence of new media.
It is easier for advertising agencies to leverage on modern technology like LED screen to reach out to their target market. As a matter of fact, it is cost effective and far reaching for them to make use of social media platforms to carry out some of their advertising campaigns.
2. Executive Summary
Rainbow Ruby™ LED Screen Advertising, Inc. is a U.S licensed and world class LED screen advertising agency that will be located in downtown Las Vegas – Nevada.
We have been able to secure a well – positioned office facility in a central business district in South McCarran Boulevard at South Virginia Street. We are deliberate about choosing this location because it has a traffic count of 54,550 vehicles on a daily basis.
We are a LED screen advertising company that is set to compete in the highly competitive billboard and outdoor advertising industry in the United States.
Rainbow Ruby™ LED Screen Advertising, Inc. will offer robust LED screen advertising services to both corporate organizations and individuals. Our core services will revolve around creating advertising campaigns on LED screens, billboards and transit displays. Our business goal is to become one of the leading LED screen advertising companies in the United States of America.
Our workers are going to be selected from a pool of talented and highly creative advertising and media experts in and around Las Vegas – Nevada.
We will make sure that we take our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading advertising agencies such as CBS Outdoor, Clear Channel Outdoor Holdings and Lamar Advertising in the United States.
At Rainbow Ruby™ LED Screen Advertising, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s business needs precisely and completely.
Rainbow Ruby™ LED Screen Advertising, Inc. is owned and managed by Warren Pickford. Warren Pickford hails from Reno – Nevada, has B.A. in Communications at Northern Michigan University; M.Sc. degree in Computer Science at the University of Wisconsin-Milwaukee; and MBA from the University of Chicago Booth School of Business.
He has over 13 years’ hands on experience working for one of the leading brands in the Billboard and Outdoor Advertising Industry in the United States of America.
3. Our Products and Services
Rainbow Ruby™ LED Screen Advertising, Inc. was established with the aim of maximizing profits in the Billboard and Outdoor Advertising industry.
We want to compete favorably with leading advertising agencies such as CBS Outdoor, Clear Channel Outdoor Holdings and Lamar Advertising in the United States, which is why we have but in place a competent team that will ensure that we meet and even surpass our customers’ expectations.
Our products and services offerings are listed below;
- Aerial LED screen advertising
- Billboard- LED screen display advertising
- LED screen bus, taxicab and subway-car advertising
- Display advertising
- LED screen transit advertising
4. Our Mission and Vision Statement
- Our vision is to establish a standard LED screen advertising company whose services and brand will be accepted in the United States of America.
- Our mission is to provide professional, highly creative and result oriented LED screen advertising services that will assist businesses, individuals and non-profit organizations in promoting their brands and reaching out to a wide range of potential customers. We want to build a LED screen advertising company that can favorably compete with other leading brands in the billboard and outdoor advertising industry.
Our Business Structure
Rainbow Ruby™ LED Screen Advertising, Inc. is a world class LED screen advertising company that intends starting small in Las Vegas – Nevada, but hopes to grow big in order to compete favorably with leading advertising agencies. We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hiring the best hands within our area of operation.
At Rainbow Ruby™ LED Screen Advertising, Inc. we will ensure that we hire people that are qualified, hardworking, and creative, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, Rainbow Ruby™ LED Screen Advertising, Inc. have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Creative Director
- LED Screen Advertising Specialist
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for designing advertising concepts and winning business proposals for the organization
- In charge of copy writing and laying out chronological advertisement plans
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Ensures that the organization work in line with international best practices.
LED Screen Advertising Specialist
- Accountable for handling media planning, buying & representation
- Responsible for creating advertising campaigns
- Responsible for disseminating advertising campaigns through available LED screen outdoor mediums
- Responsible for handling core digital services such as aerial LED screen advertising, billboard- LED screen display advertising, and transit LED screen advertising
- Handles other related media and advertising advisory and consulting services
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily office.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Develops, executes and evaluates new plans for expanding sales
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Rainbow Ruby™ LED Screen Advertising, Inc.
- Serves as internal auditor for Rainbow Ruby™ LED Screen Advertising, Inc.
Client Service Executive
- Welcomes clients and potential clients by greeting them in person, online or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries.
6. SWOT Analysis
Rainbow Ruby™ LED Screen Advertising, Inc. hired the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured LED screen advertising company that can favorably compete in the highly competitive billboard and outdoor advertising industry in the United States.
We know that if we get things right before starting our LED screen advertising company, we will not have to struggle before attract loyal clients and building our clientele base cum corporate profile to a level where we can easily breakeven.
Here is a of the result we got from the SWOT analysis that was conducted on behalf of Rainbow Ruby™ LED Screen Advertising, Inc.;
We can confidently say that we have a team of creative, result driven and highly proficient LED screen advertising cum branding expert, a team with excellent qualifications and experience in various niche areas in the billboard and outdoor advertising industry. Aside from the synergy that exists in our carefully selected LED screen advertising cum branding experts, our services will be measurable, result driven and guided by best practices in the industry.
As a new LED screen advertising company in Las Vegas – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated billboard and outdoor advertising industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business especially via main stream media, the way we would want to.
Without a doubt, the opportunities available in the billboard and outdoor advertising industry especially as a LED screen advertising company is massive considering the number of individuals, businesses, government agencies and corporate organizations who want to reach out to their target market and increase their market shares, we are ready to take advantage of any opportunity that is available in the industry.
A major threat that we are going to face is the advancement of technology that can herald the use of other related display medium for advertising. Another threat that may likely confront us is the arrival of an LED screen advertising company in same location where our target market exists and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
In recent time, individual behavior and demographics are being consolidated to convey more grounded measurements to the advertiser. Real time traffic, social media, and even camera analytics now provide accurate audience metrics for billboard sites. Digital metrics make it easier for media planners to consider and integrate their advertising campaigns.
You will notice that within the last 10 years, digital has completely transformed offline media – print has moved online, TV is now “on-demand”, and radio channels now distribute content via podcasts. Meanwhile, the billboard remains in the real world – only more data-driven and connected to other digital media.
Lastly, the billboard & outdoor advertising industry will continue to evolve due to the advancement of computer technology and software applications designs.
8. Our Target Market
Before starting our advertising agency, we are certain that there is a wide range of both corporate, government and individual clients who cannot successfully run their businesses without the services and support of a standard LED screen advertising company.
In view of that, we have created strategies that will enable us reach out to various corporate organizations, government agencies and individuals who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that we meet and surpass the expectations of our clients Below is a list of the people and organizations that we have specifically market our services to;
- Banks, Insurance Companies and other related Financial Institutions
- Blue Chips Companies
- Corporate Organizations
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- Research and Development Companies
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Celebrities, Politicians, Public Figures and Public Speakers
- Sport Organizations
- Religious Organizations
- Political Parties
- Television Stations
- Printing Press (Publishing Houses) and Authors
- Branding and Advertising agencies
- Entrepreneurs and Startups
Our competitive advantage
Come to think of it, surviving in the business world as a LED screen advertising company requires more than your expertise, but also how to network with key people that matters.
We are quite aware that to be highly competitive in the billboard & outdoor advertising industry means that you are not only expected to be able to deliver consistent and excellent services, but you must be result driven and able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target sales the organization intends to generate when they hire your services.
Part of our competitive advantages are ability to negotiate successfully with regulators, ability to provide services in diverse locations and our ability to attract local support and patronage. So also, we have a team of creative, result driven and highly proficient LED screen advertising experts, a team with excellent qualifications and experience various niche areas in the billboard & outdoor advertising industry and other related industry.
Aside from the synergy that exists in our carefully selected advertising cum digital marketing experts, our services will be measurable, result driven and guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
We are mindful of the fact that there are stiff competitions in the billboard & outdoor advertising industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the billboard and outdoor advertising industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall business goal of Rainbow Ruby™ LED Screen Advertising, Inc.
Our corporate goal is to grow Rainbow Ruby™ LED Screen Advertising, Inc. to become one of the leading advertising brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States of America but also in other parts of the world.
Rainbow Ruby™ LED Screen Advertising, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our LED screen advertising company by sending introductory letters alongside our brochure to key individuals, corporate organizations, government agencies, religious organizations and key stake holders.
- Promptness in bidding for LED screen advertising contracts from the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations.
- List our business on yellow pages’ ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
Rainbow Ruby™ LED Screen Advertising, Inc. is established with the aim of maximizing profits in the billboard & outdoor advertising industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.
Rainbow Ruby™ LED Screen Advertising, Inc. will generate income by offering the following LED screen advertising services and other related services;
- Aerial LED screen advertising
- Billboard- LED screen display advertising
- LED screen bus, taxicab and subway-car advertising
- Display advertising
- LED screen transit advertising
10. Sales Forecast
Rainbow Ruby™ LED Screen Advertising, Inc. is well positioned to take on the available market in billboard and outdoor billboard & outdoor advertising industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our LED screen advertising company to enviable heights.
We have been able to examine the billboard and outdoor advertising industry marketing space, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Rainbow Ruby™ LED Screen Advertising, Inc., it is based on the location of our business and of course the wide range of our LED screen advertising services we offer and our target market;
- First Fiscal Year: $250,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $700,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same advertising services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of the United States.
Below are the platforms we intend to leverage on to promote and advertise Rainbow Ruby™ LED Screen Advertising, Inc.;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our billboards in strategic locations all around Las Vegas – Nevada
- Engage in roadshow from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- List Rainbow Ruby™ LED Screen Advertising, Inc. in local directories / yellow pages
- Advertise Rainbow Ruby™ LED Screen Advertising, Inc. in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.
12. Our Pricing Strategy
At Rainbow Ruby™ LED Screen Advertising, Inc. we will keep the prices of our services below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.
We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by Rainbow Ruby™ LED Screen Advertising, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Rainbow Ruby™ LED Screen Advertising, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part.
13. Startup Expenditure (Budget)
Having done our due diligence, this is what it would cost us to setup Rainbow Ruby™ LED Screen Advertising, Inc. in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Leasing / renting an office space in a good location in Las Vegas – Nevada that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
- The cost for furnishing and equipping the office (computers, printers, projectors, markers, server / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
- The amount required to purchase the needed software applications – $ 3,500
- The cost for launching an official Website will cost – $500
- The amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
- Miscellaneous – $5000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a medium scale but standard LED screen advertising company in the United States of America.
Generating Funds/Startup Capital for Rainbow Ruby™ LED Screen Advertising, Inc.
Rainbow Ruby™ LED Screen Advertising, Inc. is owned, financed and managed by Warren Pickford. He decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
It is an established fact that the future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Rainbow Ruby™ LED Screen Advertising, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our LED screen advertising services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Rainbow Ruby™ LED Screen Advertising, Inc. will make sure that the right foundation, structures and standard operating processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility in a good location in Las Vegas – Nevada: Competed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress