Advertising business

1.1 INTRODUCTION
Advertising is a form of communication whose purpose is to inform potential customers
about products and services and how to obtain and use them. Many advertisements are
also designed to generate increased consumption of those products and services
through the creation and reinforcement of brand image and brand loyalty. Every major
medium is used to deliver these messages, including: television, radio, movies,
magazines, newspapers, video games, the Internet and billboards.

Advertising is the promotion of a companys products and services carried out primarily
to drive sales of the products and services but also to build a brand identity and
communicate changes or new product /services to the customers. Advertising has
become an essential element of the corporate world and hence the companies allot a
considerable amount of revenues as their advertising budget. There are several
reasons for advertising some of which are as follows

Increasing the sales of the product/service

Creating and maintaining a brand identity or brand image.
Communicating a change in the existing product line.
Introduction of a new product or service.

Thus, several reasons for advertising and similarly there exist various media which can
be effectively used for advertising.
Advertisements can also be seen on the walls of an airport walkway, on the sides of
buses, heard in telephone hold messages. Advertisements are usually placed anywhere

an audience can easily and/or frequently access visuals and/or audio and print
organizations which frequently spend large sums of money on advertising.

The purpose of this project is to provide detailed information about my business

improvement idea which is to operate an Advertisement agency as a Electronic
Billboard Media owner instead of normal advertising agency portfolio. The report
includes all the needed sections for an actual business plan document. It starts with the
business profile in order to give a brief idea about the whole business. Then the
marketing plan is included to give explanation about our promotion campaign and plans.
The next plans are the layout, company product and services and the personnel plans.
Each part explains in details what has to be done in order to run the business
successfully. The final plan in this report is the finance one. All needed projections are
included as well as the establishment costs. The report explains how this idea will be
achieved in details.

We have chosen this idea because of many reasons. Electronic Billboard Media will be
highly demanded. Many businessmen are facing the problem regarding the
advertisement. Awareness of advertisement is increasing. There are many businesses
in Malaysia who Lack of advertisement motivated to move on with the idea. Our idea will
provide them ease and give support to the talented businessmen or any organizations
from local or foreigners.

Our idea has come up after many research regarding the difficulties faced by
businesses. We found that there are not many agencies that provide actual message. In
addition to that, businessmen can find local way to advertisement and there are not
much agencies that offer all kinds of advertisements in the same place. This is

considered as a market gap. Our idea fills that gap by providing specialized ads for
individuals especially in Electronics Advertisement using Billboard as a medium.
1.1.1 What are the benefits of making profit?
The success of a small business depends on its ability to continually earn profits.
Profit equals a companys revenues minus expenses. Earning a profit is
important to a small business because profitability impacts whether a company
can secure financing from a bank, attract investors to fund its operations and
grow its business. Companies cannot remain in business without turning a profit.
A business owner must understand the importance of profitability in business
management and develop strategies that give his company the best chance at
remaining profitable.
Business Expansion
Making a profit is essential for a business that desires to expand it operations.
Earning a profit allows you to open other business locations, acquire another
business, target other markets and expand your operations into foreign territory.
The purpose of business expansion is to further increase your profits. Earning a
profit is not the only factor that influences the decision of whether to expand your
business, however. If you desire to grow your business, your management and
back office team should be able to take on additional responsibility. You should
create a business plan for expansion and analyze trends and economic factors
that affect your business.
Ability to Borrow Money
Many small businesses depend on debt financing to operate. Debt financing
obligates a business to repay the money borrowed to the creditor with interest.
Debt financing for a small business typically includes borrowing money from a
bank. A companys profitability plays an important role in whether a bank lends
the company money. In addition to profit, a business owners credit score and

collateral are determining factors in lending decisions. A company that cannot

turn a profit is typically seen as a risk for default by a lender.
Attract Investors
Some small businesses choose to bring in private investors to secure funding for
their operations. A company that earns continual profits is seen as a potentially
good investment option because the investor believes there is a good chance to
earn an attractive return on his investment. Attracting investors depends on your
ability to show the monetary benefits of investing in your business. As a business
owner, you should prepare to show potential investors your ability to generate
profits in previous years and your plans to continue to earn profits in the future.
Hire More Employees
A part of growing a small business includes hiring additional employees who can
handle the growing responsibilities within the company. A small business that is
profitable has a better chance of affording to pay new employees salaries than a
company that is struggling financially. Hiring new employees is an important
element of running a small business because employees are typically given more
responsibility in smaller companies. A business owner must allocate resources to
defining open job positions, developing a hiring process and creating training
programs.

1.2 PROBLEM STATEMENT

During this time ARJ Strategic Media Communication only focusing as an advertising
agencies and holding an account for several clients such as Media Prima (TV3) ,
TV9, Berita Harian, Harian Metro , AMP Radio era f.m, Sinar f.m, Sinar Harian ,
Utusan Malaysia and others. At this point the yearly sales is only 4 million per
annum. Our income commission from media owner is only 10%-15% a year.This
project paper is a proposal on expending a business to increase company income by
becoming Electronic Billboard Media owner instead of Advertising Agency Portfolio

As advertising company there is a limited chance to increases the sales because it

only depends on the media owners demands. The sales income only depends of the
small amount of commissions.
Due to the competitors or other players in the market, ARJ strategic Media
Communication will lose the current client or customers in the future if it doesnt
change the business method.

1.3 PROPOSED SOLUTIONS

This project paper is a proposal on expending a business to increase company
income by becoming

Electronic Billboard Media owner instead of Advertising

Agency Portfolio
To becoming Media Owner as a organization that controls either through personal
ownership or dominate positions on any media enterprise.These positions of
business can generate more opportunity to increase profits
advertisement sales.

through media and