Raising Development Finance for a Marketing Company

This client provides marketing information and other services to advertising agencies and corporate clients. Over time their clients started to ask for a specific service that they were not geared up to deliver. Upon doing some research, the directors realised that no one else was offering this service and there was indeed latent demand. They therefore decided to launch a new product to address this gap in the market.

Objectives

The directors had two main objectives:

1. To understand the full financial implications of developing and launching their new product, so they could be sure that the returns would outweigh the investment – i.e. a feasibility study.
2. To plan how the new venture would be organised; how long it would take before the venture made money; how much it would cost; and the changes in staff requirements.

Platinum’s Value

Over a period of six months, we worked very closely with the directors to:

1. Ensure the product was feasible – we helped the directors research the market by guiding them through the market research process – advising on research methodology, who to talk to, and how to present the results.
2. Determine what it would cost to launch the product – we worked on the marketing and communications strategy; new staff roles and responsibilities; new processes and procedures; etc.
3. Develop cash and profit projections – we made sure it was clear when money would start to come in and when the new venture would start to make a profit.
4. Create a business plan for presentation to potential investors and lenders.

All our work was completed in conjunction with the company directors. We worked in this manner for two main reasons:

1. It was important that they owned the final business plan as they were going to present it to investors; and
2. This was a good way of keeping the cost of our involvement within their budget.

Once we had a business plan in place we were able to introduce the directors to an investor that provided the bulk of the money required. We also then supported the directors’ application to their bank to make up the remainder.

A Great Result

The client launched their new product successfully. The funds required to achieve their goals were raised through a combination of private investment and a bank loan.

A Satisfied Client

“We just could not have done this without you, Thanks ever so much”.

News

***We are delighted to announce that Platinum has won the 2nd contract for Access to Finance- 2007/08***

***Can we make your accounts and business finance one less thing to worry about?***

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