Creative Pneuma Abbreviated Business Plan Vontrice Roberts Miami, FL

1

2

TABLE OF CONTENTS 1.0 Project Summary .............................................................................................................................................. 3 2.0 Service Description .......................................................................................................................................... 6 3.0 Market Research and Analysis ......................................................................................................................... 7 4.0 Implementation Plan....................................................................................................................................... 14 5.0 Management Plan ........................................................................................................................................... 14 6.0 Performance Measures ................................................................................................................................... 15 7.0 Milestones (One-Year Timeline) .................................................................................................................... 16 8.0 Financial Activities......................................................................................................................................... 18

Creative Pneuma

3

1.0 PROJECT SUMMARY Over the past five years, the Digital Advertising Agencies industry has benefited from the rapid shift from traditional print advertising to digital advertisements. Strong demand for digital advertising services from small business sectors has bolstered industry revenue. As more consumers generate website traffic using smartphones and tablets, many businesses have purchased digital advertising services to build brand awareness across multiple screens and platforms. Additionally, as more product manufacturers are directly selling their products online, many retailers are demanding industry activities such as search engine visibility services to help them compete. Over the last five years, industry revenue is anticipated to grow at an This Photo by Unknown Author is licensed under CC BY-

annualized rate of 11.6%, including a 6.2% jump in 2021 to reach $19.8 billion. However, in 2020, a decline in corporate profit and consumer spending levels stemming from the COVID-19 (coronavirus) outbreak caused industry revenue to decline modestly. Many businesses have demanded industry services to spread advertisements in digital formats, namely online for streamed video content. Furthermore, some industry clients have moved away from business models that require research and tangible results before the launch of an advertisement, in favor of a testing environment that has evaluated the commercial viability of new ideas. For example, clients have purchased digital advertising services that measure online traffic demographics related to their social media websites before launching a product, greatly benefiting the industry. Industry profit is expected to be 6.3% in 2023, due to increased purchase costs. Due to higher demand for specialized and niche digital advertising services, the total number of industry employees is expected to grow at an annualized rate of 9.7%.

Creative Pneuma

4

Over the next five years, digital advertising agencies that can develop innovative tools such as data mining, with applications for analyzing customer purchasing behavior, will experience strong demand. As online media streaming services and social media continue to generate substantial internet traffic, many businesses will strengthen their investments in digital advertising. As a result, industry revenue is forecast to increase at an annualized rate of 3.1% to $23.0 billion over the next five years. Creative Pneuma is a nonprofit organization that aims to provide the highest quality brand management services with a focus on logo and basic graphic design, brand development, and brand management. The brand is built on the concept that businesses, much like people, have their DNA that defines the perception of their brand to their respective markets. Creative Pneuma’s goal of the business is to equip purpose driven businesses with a platform to evolve their operation and develop their brand awareness. The founder, Vontrice Roberts will oversee the overall management and operations of the organization with the help of hired employees. Vontrice Roberts believes in the benefits of exceptional brand management and wants to help increase value and return for all clients.

1.1.THE PROBLEM Small businesses in the United States are faltering at staggering rates and many others are not seeing its 5th anniversary. The top challenges burdening small businesses are limited resources, mission or scope creep, and lack of brand awareness. Considering small businesses drive economies and personal livelihoods it is imperative that all businesses have access to effective branding strategies to propel businesses forward.

1.2 THE SOLUTION Creative Pneuma provides and array of design and brand development to equip mission driven businesses with a platform to evolve their operation and develop their brand awareness. Creative

Creative Pneuma

5

Pneuma provides sustainable services that spur business growth in development giving more businesses an equitable opportunity to thrive in a competitive landscape.

1.3 MISSION Creative Pneuma’s mission is to bring innovation to the values of organizations that aim to positively influence the life and success of their local communities.

1.4 VISION Creative Pneuma’s vision is to design innovative branding solutions with empowerment, influence, and impact at the core of each service provided.

1.5 CORE VALUES Creative Pneuma strives for an inclusive culture based on the values represented below. The company as well as everyone associated with the company will diligently uphold their values and make them obvious in all internal and external interactions. •

Integrity: Creative Pneuma believes words are covenants, and they are powered by a high-level sincerity of purpose in everything they do.

•

Accountability: Creative Pneuma takes their work seriously. They have a self-imposed nature of taking personal responsibility for all clients and services.

•

Harmony: Creative Pneuma will establish and maintain peaceful work and training environments for clients and staff alike, promoting positive relationships and repeat business.

•

Innovation: Creative Pneuma believes in fostering new ideas, creative thinking, and change through innovative practices and services.

Creative Pneuma

6

2.0 SERVICE DESCRIPTION Creative Pneuma was established to provide world-class digital marketing services for small and midsize businesses. Creative Pneuma wants to compete favorably with the foremost marketing brands. The brand will ensure all services are effective and products are sustainable. Below is an overview of the service industries: Graphics & Design Creative Pneuma has established a reputation for delivering modern, innovative, custombranded professional design and branding services. They also offer a variety of services that will design a brand’s overall theme, presentation, platform, and brand identity that will stand out in your respective industry and customer base you are trying to target and influence. As a result, the finished product will be a powerful brand ready to be marketed to the masses. Services offered but not limited to: •

Logo Design

•

Website & Mobile Designs

•

Packaging & Labels

Brand Development and Management Creative Pneuma will leverage their relationship with Industry Insiders that will promote a company’s brand across all the major Social Media platforms. In addition, they will promote and advertise brands and ensure the brand achieves the best results in positioning. Services offered but not limited to: •

Social Media Marketing

•

Email Marketing and Video Marketing

•

Influencer Marketing

•

SEO & SEM

Creative Pneuma

7

3.0 MARKET RESEARCH AND ANALYSIS Digital Marketing Industry Over the last five years, the industry has exhibited strong growth due to more businesses requiring digital advertising services to strengthen their online presence. In particular, the shift from desktop to mobile has bolstered demand for industry services; in 2019, mobile ad revenue is expected to constitute about half of all digital ad revenue, according to the latest full -year data from the Internet Advertising Revenue Report by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC). Over the last five years, industry revenue is anticipated to grow at an annualized rate of 11.6%, including a jump of 6.2% in 2021 to $19.8 billion. Profit, measured as earnings before interest and taxes, is expected to account for 6.3% of revenue. According to Forrester Research Inc, by 2024, e-commerce sales are expected to account for 17.0% of all US retail sales, up from 12.7% in 2017 (latest data available). Additionally, e commerce sales are expected to rise over the five years to 2026. As a result, many of this industry's customers, particularly retailers, will recognize how vital their digital presence is to drive sales volumes. According to Magna, in3 2020, half of all advertising dollars spent worldwide will be online. The number of videos streamed online is also anticipated to continue rising, enticing many businesses to invest in digital advertising services to target specific demographics. As a result, the Interactive Advertising Bureau forecasts that video advertising-related revenue will triple over the next five years, providing a strong revenue stream for the industry. Over the next five years, fewer consumers will use computers as their only form of internet access; in response, many busines ses will purchase streamlined digital advertising services that integrate numerous screens and platforms.

Creative Pneuma

8

Mobile advertising is growing fast in the internet age, and companies are continuing to invest strongly in the format. This trend is facilitated by the number of mobile internet connections, which is expected to increase over the five years to 2026. During this period, the differentiation between digital media and traditional advertising, including advertisements tailored to TV programs, is expected to become less marked. Interactive advertisements, such as social media advertisements that enable consumers to discuss their TV programs online, will become increasingly popular.

Creative Pneuma

9

Industry Brief Key Statistics

Key External Drivers

% = 2016–21 Annual Growth

$19.8bn

3.5%

2.4%

Revenue

Corporate profit

Consumer spending

4.6%

23.5%

Investor uncertainty

Internet traffic volume

0.1%

2.6%

Percentage of business conducted online

Total advertising expenditure

Annual

Annual

Annual Growth

Growth

Growth

2016–2026

2016–2021

2021–2026

11.6%

3.1%

Industry Structure

$1.2bn Profit

POSITIVE IMPACT Annual

Annual Growth

Growth

2016–2021

Life Cycle Growth

Capital Intensity Low

Industry Globalization Low / Increasing

2016–2021

4.3%

MIXED IMPACT

6.2% Profit Margin Annual

Annual Growth

Growth

2016–2021

Revenue Volatility Medium

Concentration Medium

Regulation & Policy Medium / Steady

Barriers to Entry Medium / Increasing

2016–2021

-2.5pp NEGATIVE IMPACT Industry Assistance None / Steady

5,523

Technology Change High

Competition High / Increasing

Businesses Annual

Annual

Annual Growth

Growth

Growth

2016–2026

2016–2021

2021–2026

13.7%

9.1%

Key Trends

74,437

•

More businesses are investing in digital advertising to broaden their reach

•

Many industry operators have streamlined their services to integrate well with numerous devices

•

Many digital agencies have entered the industry to take advantage of the shift away from traditional advertising

•

Revenue deceleration will be tied to slowed growth in the number of mobile internet connections

•

Many digital advertising agencies will continue to enter the industry

•

The number of videos streamed online is anticipated to continue rising

•

Agencies that can develop innovative tools to analyze customer purchasing behavior will experience strong demand

Employment Annual

Annual

Annual Growth

Growth

Growth

2016–2026

2016–2021

2021–2026

9.7%

5.4%

$7.2bn Wages Annual

Annual

Annual Growth

Growth

Growth

2016–2026

2016–2021

2021–2026

9.8%

5.0%

Creative Pneuma

10

The Digital Advertising Agencies industry is in the growth phase of its life cycle. Over next ten years, industry value-added, which measures the industry's contribution to the overall economy, is anticipated to grow at an annualized rate of 6.6%. Comparatively, GDP is expected to grow at an annualized rate of 2.1% during the same period. As internet traffic volume skyrockets during the period, more businesses will purchase digital advertising services to derive sales volumes. In particular, strong demand for digital advertising services from the retail, financial services, automotive, and telecommunication sectors will bolster industry revenue over the 10 years. Small, independently operated digital advertising agencies have also inundated the market, due to need-based demand for advertising services from niche markets, such as local businesses. As the advent of new tools enable digital advertisers to measure consumer demographics, particularly the movement of consumers across devices, demand for industry services will increase. Mobile technology, such as location tracking, has provided the industry with new methods to advertise products and services over the past five years, which will likely become more prevalent in the coming years. Also, advancements in software and analytics have made the distribution of digital advertisements more targeted and effective.

Creative Pneuma

11

Web Design The Web Design Services industry, which comprises companies that provide web design services including graphic and user experience design, is expected to grow at an annualized rate of 5.8% over the last five years, reaching $39.6 billion. The proliferation of broadband and mobile internet connections has made the internet an extremely powerful tool, which is the primary contributor to strong industry growth. For example, as the internet has grown in popularity, individuals and businesses alike have developed hundreds of millions of websites to provide information to friends, family, fans, or customers. As the reach and utility of the internet have grown tremendously during the current period, demand for industry services has followed. Although the demand is on the rise, a growing number of potential customers are internally developing and maintaining their websites, with the help of third-party software. For example, websites such as Shopify, Squarespace, and Wix, enable companies to design and develop websites without any prior coding experience. This negatively affects the industry as would -be customers opt to use the convenient software in place of industry services to save money and time. Furthermore, many large companies are also opting to develop native applications for mobile devices and tablets, forgoing the use of industry services. Native applications boast an array of features, such as push notifications, that enable businesses to better connect with customers. Although companies often have a native application in addition to a mobile website, the growing popularity of native applications switches companies' focus away from industry-relevant services. Consequently, these conditions have suppressed industry growth over the past five years. Furthermore, the outbreak of COVID-19 (coronavirus) in 2020 has put a strain on business sentiment, with corporate profit anticipated to decline an estimated 12.1% in the year. As a result, businesses are putting off creating websites and opting to utilize in-house employees to update and maintain websites, pushing revenue down an anticipated 2.0% in 2020 alone. Declining demand from these clients has further exacerbated pressure on profit margins, causing them to decrease over the last five years.

Creative Pneuma

12

Over the next five years, IBISWorld estimates that industry revenue will increase at an annualized rate of 2.4% to $44.6 billion. During the outlook period, industry operators will continue to benefit from increased internet connectivity, particularly across mobile platforms. Online website development platforms, however, are anticipated to limit growth, because these services often provide a more affordable and simpler experience. There will likely be a slight uptick in demand from businesses as corporate profit improves in line with the economy as it rebounds from the pandemic and subsequent recession in 2020.

Creative Pneuma

13

3.2 TARGET MARKET The target market will be Florida-based religious denominations, for example, the Florida Cocoa Church of God. Focus will be directly on cities in the following counties for other target audiences: Polk, Lake, Osceola, and Orange. The company’s services, in essence, provides a platform to generate revenue, market & advertise, and develop brand. Start-up businesses will need the services to begin the brand’s development, and more tenured businesses need a branding agency to refresh their platforms and bridge the gap into the social media platforms that they are not too familiar with. This way, Creative Pneuma can generate revenue from both sides of the market; new businesses and already established businesses. Customer Profile: The current business focus is on small and midsized businesses. The reason this is the target market is that they often lack experience, have realistic expectations of brand development, and do not have the necessary or appropriate funds to afford costly, yet fundamental, branding services.. Creative Pneuma will bridge that gap and offer services that will simplify the process.

Creative Pneuma

14

4.0 IMPLEMENTATION PLAN To be highly competitive in marketing industries, Creative Pneuma will be intentional about customer service, delivering consistent quality services to meet the expectations of the clients paying for the service. Creative Pneuma is coming into the market well prepared to favorably compete in the industry by positioning itself as a responsible and high-quality provider that comes to provide custom and perfect service for businesses. The services will be carried out by a highly trained professional in the industry who knows what it takes to deliver value and top-notch service. The services will all be sustainable, and effective, protecting the integrity of the brand, and the overall execution of the work. Furthermore, Creative Pneuma will continuously strive to uplift humanity through its works. Creative Pneuma will do this by regularly donating to other local non-profit entities that serve entrepreneurs. When the time arises, Creative Pneuma will always hire local talent to support the local economy where the company is based. Creative Pneuma does not take this quest lightly and has a goal to provide good jobs for people throughout their existence.

5.0 MANAGEMENT PLAN The organizational structure of the company cannot be over-emphasized, especially in a competitive market. Vontrice will serve in leadership and operational capacities within the company. He will be saddled with the responsibility of making executive and administrative decisions concerning the operations and activities of the company. He is an equally creative, forward-thinking, and motivated team leader with solid organizational skills.

Creative Pneuma

15

6.0 PERFORMANCE MEASURES Project evaluation will be the responsibility of the board of directors and consist of a formal evaluative strategy.

Formative Evaluation - Primarily qualitative in nature, the formative evaluation will be conducted through interviews and open-ended questionnaires. Volunteers, partners, and program participants will be asked about the day-to-day operation of Creative Pneuma, the support provided, the quality of services and programming, its impact, and other questions to provide feedback for the ongoing improvement of the operation of the Project. The board of directors will meet regularly with project staff to share findings from the formative evaluation effort. Periodic reports will be prepared that identify the major findings of the formative evaluation and how they have been used to improve Project operation.

Summative Evaluation - Primarily quantitative in nature, the summative evaluation will begin with establishing baseline data at the beginning of the Project and then be conducted at 6month intervals. Success in achieving the organization’s objectives can be measured through the following metrics: •

Metric 1: Number of business and individual clients acquired each year.

•

Metric 2: Continued success and branding awareness of each client. Creative Pneuma follows up with clients are the 6-month and 1-year marks.

A yearly report will be issued that presents the formative and summative findings.

Creative Pneuma

16

7.0 MILESTONES (ONE-YEAR TIMELINE) Month One o o o o o o o

Advertise project staff positions and ensure positions are advertised in underrepresented communities Interview candidates for open staff and volunteer positions Meet local businesses, marketing agencies, brand awareness platforms, and other potential partners and trusting relationships with community partners Update policy and procedure manual Obtain Insurance Seek funding (grants, donations, fundraisers) Meet with Planning Committee

Month Two o o o o o o o o o o o o o o

Preparation for operation Meeting with Planning Committee Meetings with community leaders Meetings with partners to re-establish activities and responsibilities, etc. Recruitment/selection/training of staff members Recruitment/selection/training of volunteers Prepare Press release, news, and media meeting Revamp Website and Social Media Presence Complete Marketing Plan to promote program Create Flyers for Marketing Campaign Finalize marketing items, signage etc. Preliminary advertising of operation Set up communication board of Program Team Members Collection of baseline data on the community

Month Three o o o

Face to Face Community Outreach Host community outreach event to spread awareness of organization Implement monitoring and evaluation methodology, surveys, monthly reports, and social media analytics

Months Four - Seven o o o

Face to Face Community Outreach Begin operation Implement monitoring and evaluation methodology, surveys, monthly reports, and social media analytics

Creative Pneuma

17

`

Months Eight - Nine o o o o o o o

Face to Face Community Outreach Re-evaluate program offerings Expansion of program offerings Follow-up meetings with community partners Prepare for annual fundraising event Board meeting Highlight work/success online (social media, press release, website)

Month Ten o o

Host annual fundraising event Implement monitoring and evaluation methodology, surveys, monthly reports, and social media analytics

Month Eleven o o o

Start Preparing final summative evaluation for the end of twelfth month Start Preparing close out report for all grants awarded Implement monitoring and evaluation methodology, surveys, monthly reports, and social media analytics

Month Twelve o o o

Implement monitoring and evaluation methodology, surveys, monthly reports, and social media analytics Complete final summative evaluation for the end of twelfth month Evaluation

Creative Pneuma

18

8.0 FINANCIAL ACTIVITIES The following section contains the financial information for Creative Pneuma. The below pro forma(s) show annual projections for years 1 - 3.

Projected Expenses (2023) Projected Expenses (2024) Projected Expense (2025)

$64,713.00 $175,658.60 $181,841.53

Income Item Marketing/Branding Service Revenue Grants Sponsorships Fundraising and Individual Donations Total

2023 $60,000.00 $2,500.00 $500.00 $750.00 $63,750.00

2024 $170,000.00 $3,500.00 $1,500.00 $1,000.00 $176,000.00

2025 $178,500.00 $4,500.00 $1,575.00 $1,050.00 $185,625.00

Budget Narrative Programming runs year-round. The organization seeks to serve 500-1000 businesses annually. The total program budget is $64,713 for year 2023. The budget includes $10,000 in fundraising expenses $8,975 in administrative expenses, $9,600 for occupancy, $0 for human resources (program-based), $29,388 in programming expenses, and 6,750 in miscellaneous expenses. The total projected revenue for 2023 is $300,000.

Creative Pneuma

19

Fundraising Expenses Item

2023

2024

2025

$3,250.00 $2,500.00 $1,750.00 $2,500.00

$3,347.50 $2,575.00 $1,802.50 $2,575.00

$3,514.88 $2,703.75 $1,892.63 $2,703.75

$10,000.00

$10,300.00

$10,815.00

2023

2024

2025

Business Insurance Prof. Services (legal, consulting, and accounting)

$403.00 $1,250.00

$415.09 $1,287.50

Telecommunications Software (Quickbooks, CRM, Canva, etc) Staff Annual Training Business Bank Account Website Domain and Hosting Vendor Conference Fees Business Cards & Stationary

$3,600.00 $2,500.00 $500.00 $105.00 $117.00 $500.00 $100.00

$3,708.00 $2,575.00 $515.00

$435.84 $1,351.88 $3,893.40 $2,703.75 $540.75

$120.51 $515.00 $103.00

$126.54 $540.75 $108.15

Total

$8,975.00

$9,136.10

$9,592.91

Marketing Video/Photography Fundraising/Awareness Events Social Media Outreach Initiatives Total

Administrative Costs Item

Occupancy Item

2023

2024

2025

Office Space

$9,600.00

$10,000.00

$10,000.00

Total

$9,600.00

$10,000.00

$10,000.00

Creative Pneuma

20

Human Resources Staff

2023

2024

2025

Executive Director Director of Programs & Services

$0.00 $0.00

$60,000.00 $45,000.00

$61,800.00 $46,350.00

Total

$0.00

$105,000.00

$108,150.00

Programming & Supplies Item General Office Supplies Technology (MacBook Pro)

2023

2024

2025

$2,500.00 $150.00

$2,575.00

$2,703.75

Technology (Doc Station) Technology (USB-C Adapter) Technology (Wireless Mouse) Technology (USB-C to USB Adapter) Event Hosting and Setup (Marketing/Branding Classes) Client Marketing/Branding Expenses Ongoing Equipment/Supply Needs

$80.00 $12.00 $86.00 $60.00 $5,000.00 $20,000.00 $1,500.00

$5,150.00 $25,000.00 $1,545.00

$5,407.50 $26,250.00 $1,622.25

Total

$29,388.00

$34,270.00

$35,983.50

Miscellaneous Expenses Item

2023

2024

2025

Transportation/Mileage Volunteer Appreciation Program Evaluative Tools

$5,500.00 $750.00 $500.00

$5,665.00 $772.50 $515.00

$5,948.25 $811.13 $540.75

Total

$6,750.00

$6,952.50

$7,300.13

Creative Pneuma