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Executive Summary
Kat Jenkins PR is a public relations firm in Los Angeles dealing with stars and the businesses that create them.
The business was established in 2018 and is on the path to becoming one of the biggest PR firms in Los Angeles.
Our mission is to make PR feel authentic while maintaining the concept of separation between our clients’ public personas and their personal identity. This is especially true for our clients that aren’t businesses.
We are currently working on expanding our operations to New York to bring Broadway stars into the fold. Musical theater is gaining popularity with mainstream consumers, which means more Broadway stars will need public relations services.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $4,386,200 | $5,193,300 | $5,956,700 |
| Gross margin | 65.8% | 60.7% | 61.3% |
| Net profit / (loss) | $411,472 | $195,671 | $422,889 |
Company Overview
Kat Jenkins PR is a public relations house in Los Angeles, California. The business does PR for the stars of Hollywood and entertainment businesses in Los Angeles.
Our mission is to connect stars and businesses with their audience authentically.
The business has recently started expanding its operating network towards New York. The aim is to become a multi-city PR agency in the next three years and sign some international clients in the next five years.
Kat Jenkins PR was established in 2018 and has only grown since its establishment. The client base started with small indie artists and a few D-list actors. The business has expanded its client base to include well-known celebrities, social media personalities, and businesses in the entertainment industry.
Kat Jenkins PR is strategically positioned in Los Angeles. The area offers easy access to our clients and free advertising when people in entertainment walk past our building daily.
Clients have the choice of visiting the office or conducting business virtually. The nature of our service allows this flexibility.
Katrina (Kat) Jenkins is the founder and CEO of Kat Jenkins PR. She has a strong background in PR, with experience at some of the largest firms in the country.
Legal structure: LLC
Mission: To deliver exceptional public relations services to clients in Los Angeles, California, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Strengthen operations, reach revenue of $4,386,200, and build a loyal client base
- Year 2: Expand service capacity, grow revenue to $5,193,300, and hire additional staff
- Year 3: Grow net profit to $422,889, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
The global PR market is large and is expected to keep growing over the next decade.
California is home to a large share of the world’s PR businesses.
The state, and more specifically the city of Los Angeles, is home to Hollywood and is a hub for entertainment personalities and businesses alike. The high concentration of these parties in the area is responsible for the high number of public relations management businesses, as entertainment and public relations go hand in hand.
The PR industry’s demand is driven by the increased ability to provide analytics and show the impact of PR efforts. In the past, these insights were not available, so businesses were not motivated to spend money on PR services. Now, when they see the positive influence it has on their business, they include it in their strategies.
Globalization is a major motivator for public relations services. With businesses entering international markets, connecting to natives is more important than ever. PR strategies involve engaging with native culture and tailoring services to match their locals’ needs.
The increased use of social media in recent years has led to a rise in the demand for PR services. Personalities and businesses alike are eager to establish a social media presence and connect with their audience in that way. Social media is predicted to continue to contribute to the increased demand for PR services.
The public relations industry is highly competitive, with large PR businesses using mergers, acquisitions, and collaborations to increase their market share.
Customer analysis:
Kat Jenkins PR works with entertainment personalities, social media influencers, and businesses in the entertainment industry.
Our customer segmentation revealed the following.
Entertainment personalities are categorized as musicians and actors. These individuals’ ages range between 18 and 60 years old.
Actors and musicians are highly focused on maintaining their image, specifically on maintaining their positive image. They have four primary needs: reputation management, media relations, crisis management, and event promotion.
Social media influencers are categorized as personalities on YouTube, Instagram, and TikTok. These individuals are most commonly aged 16-35, but older personalities are starting to gain popularity in some genres.
Social media influencers value engaging with their audience and constantly work to keep up with trends and stay relevant. They have five primary needs: personal branding, media training, brand partnerships, content strategy, and crisis management.
Businesses in the entertainment industry are categorized as production companies, record labels, and studios. The needs of these businesses include promoting projects, event management, crisis management, and long-term branding.
A new trend has emerged, and businesses are including social media in their brand identity. The PR services required by businesses have expanded to include managing their social media personas.
Kat Jenkins PR currently only works in the Los Angeles region but aims to expand its reach to international shores in the next five years. It will be looking to Canada and the United Kingdom for expansion, as these regions share traits and audiences similar to those of the American market.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Edelman | Global brand, wide reach | Large global firm; higher fees |
| Weber Shandwick | Strong national presence, broad service range | Large network firm; broad rather than entertainment-only focus |
| Rogers & Cowan PMK | Long-standing entertainment PR specialist | Direct competitor for the same talent clients |
Kat Jenkins PR's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Founder with 15 years in PR; trading since 2018 with well-known celebrity and business clients; senior team covering finance, operations and HR; Los Angeles office close to clients | Weaknesses: Smaller brand than global PR networks; Los Angeles only until New York opens; reliance on the founder's client relationships |
| External | Opportunities: Expansion to New York and Broadway performers; social media personalities needing PR; future clients in Canada and the UK | Threats: Large firms growing through mergers and acquisitions; high competition in Los Angeles; cuts to entertainment spending in a downturn |
Sales & Marketing Plan
Kat Jenkins PR has sales goals pertaining to client acquisition. We currently operate strictly in Los Angeles. We are looking to attain clients from New York. New York is the city we are focusing on because it is also an entertainment hub. Our goal is to breach the market of Broadway performers and theaters in the city.
Our long-term client acquisition goal is to have clients based in Canada and the United Kingdom.
Our services have two pricing categories.
Most of our clients prefer having a retainer PR agency, and that is our primary source of sales revenue. The monthly retainer package includes ongoing PR services such as reputation management and media management. A monthly retainer can cost a client anywhere from $10,000 to $50,000, depending on the scope of their case. Major celebrities and businesses are typically at the higher end of that figure.
Event promotions and social media campaigns are short-term projects that are priced per project. We analyze these services on a case-by-case basis, and they are priced between $30,000 and $100,000, depending on the scale and duration of the project.
Kat Jenkins PR’s services are offered in-person and virtually. Many of our clients’ schedules do not afford them the time to visit our offices, and often, the scope of their project does not require it. Our virtual services have become more popular than in-person office meetings in recent years.
We expect this trend to continue as we expand to cities and countries away from our head office in Los Angeles.
Pricing strategy: Pricing is set to be competitive within the Los Angeles, California, USA market while reflecting the quality and specialist nature of the services delivered. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from clients searching for public relations services in Los Angeles, California, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral programme — incentivised referral programme for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Los Angeles, California, USA
- Google Ads — targeted paid search campaigns for high-intent keywords around new campaigns
Marketing budget Year 1: $270,000 (6% of projected revenue)
Additional marketing notes:
Kat Jenkins PR is an upmarket yet authentic public relations firm. We aim to communicate this in our branding. We use gold, black, and a red accent in our marketing. Our tone is professional yet warm, inspiring our clients to feel comfortable but trust our ability to manage their public persona.
As a public relations firm, we have to participate in all marketing platforms. Our extensive marketing budget allocates funds to digital and traditional marketing platforms and public relations.
We promote our services consistently throughout the year, with a special focus on the season when new entertainment projects are released.
Our annual marketing budget is $270,000. We split the funds between a few marketing activities across four marketing categories.
The first marketing category Kat Jenkins PR uses is digital marketing. 40% of our marketing budget goes towards digital marketing and is split in the following way:
- Website: $10,800 (4%)
- SEO: $16,200 (6%)
- Pay Per Click Advertising: $27,000 (10%)
- Social Media Advertising: $32,400 (12%)
- Email Marketing: $10,800 (4%)
- Content Creation: $10,800 (4%)
20% of our marketing budget goes toward traditional marketing and is allocated as follows:
- Print advertising: $16,200 (6%)
- Business cards and flyers: $10,800 (4%)
- Networking events: $27,000 (10%)
10% of our marketing budget goes toward public relations and is allocated as follows:
- Charity and donations: $10,800 (4%)
- Brand partnerships: $16,200 (6%)
Another 5% of the marketing budget is allocated for miscellaneous costs. The remaining 25% goes toward performance-based campaign spend, scaled up on the channels that deliver the best results.
Operating Plan
Client acquisition — Objective: expand the client base to New York.
- Develop and implement a lead generation strategy. Timeline: ongoing. Responsible: Sales Manager.
- Reach out to talent management agencies in New York to access their client base. Timeline: ongoing. Responsible: Business Development Team.
- Successfully pitch to new clients. Timeline: ongoing. Responsible: Sales Team.
Sales — Objective: increase sales revenue by 18%.
- Develop a new pricing model to achieve sales revenue goals. Timeline: beginning of Q1. Responsible: CEO and CFO.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Katrina Jenkins (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Part-time | Full-time | Full-time |
| Support / Junior Staff | — | Part-time | Full-time |
Legal & compliance:
- All required licences and permits for public relations firm operations in Los Angeles, California, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments kept up to date
Management Team
Founder and Chief Executive Officer Katrina (Kat) Jenkins.
Kat oversees the overall business strategy and is responsible for implementing its vision and ensuring organizational growth.
She holds a Bachelor’s and Master's degree in Public Relations and has done several communications and business courses. She has 15 years of experience in the PR industry. Ten of those years were spent working with various industry giants. The remaining 5 years were spent as the Director of Public Relations for a media house in New York.
Chief Financial Officer, Amelia Cadault.
Amelia is responsible for managing the business’s financial strategy and directing the organization to achieve its financial goals.
The French-born accountant has worked in the French and American markets for 10 years. Her dual perspective on financial strategy has been beneficial to Kat Jenkins PR. Her more relaxed, European approach to pricing sets our clients at ease and makes them feel like more than just a customer.
Operations Manager, Jeremiah Louis.
Jeremiah oversees the business’s daily operations and keeps projects and teams on track and functioning smoothly.
Jeremiah has a Bachelor’s degree in Operations Management. He has worked in the entertainment industry for 12 years, with experience at casting agencies, talent management agencies, theaters, and PR environments.
His blended experience offers Kat Jenkins PR perspective from both sides of the coin and allows us to connect to our clients on a deeper level.
HR Manager, Melissa Van der Walt
Melissa manages Kat Jenkins PR’s HR department.
She has a Bachelor’s Degree in Human Resource Management and is a SHRM-CP.
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance over the next three years.
Financial Plan
Projected Profit or Loss Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $4,386,200 | $5,193,300 | $5,956,700 |
| Direct Cost of Sales | $614,100 | $737,400 | $852,800 |
| Production Payroll | $886,400 | $1,301,500 | $1,452,800 |
| Total Cost of Sales | $1,500,500 | $2,038,900 | $2,305,600 |
| Gross Margin | $2,885,700 | $3,154,400 | $3,651,100 |
| Gross Margin % | 65.8% | 60.7% | 61.3% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Sales and Marketing Payroll | $454,300 | $498,600 | $534,900 |
| Advertising/Promotion | $270,000 | $318,400 | $352,600 |
| Travel | $64,800 | $112,300 | $126,400 |
| Other Sales and Marketing Expenses | $38,600 | $45,200 | $51,700 |
| Total Sales and Marketing Expenses | $827,700 | $974,500 | $1,065,600 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $757,200 | $842,700 | $871,500 |
| Depreciation | $37,357 | $82,014 | $86,585 |
| Dues and Subscriptions | $12,600 | $14,800 | $15,900 |
| Professional Fees | $58,200 | $66,400 | $69,800 |
| Rent | $243,600 | $395,400 | $407,300 |
| Software Purchases | $71,400 | $86,900 | $94,200 |
| Insurance | $34,700 | $41,800 | $45,300 |
| Telephone and Internet Access | $21,300 | $28,700 | $30,400 |
| Utilities | $26,800 | $41,500 | $43,200 |
| Miscellaneous | $39,500 | $52,300 | $56,800 |
| Payroll Taxes | $199,300 | $251,066 | $271,624 |
| Total General and Administrative Expenses | $1,501,957 | $1,903,580 | $1,992,609 |
| Total Operating Expenses | $2,329,657 | $2,878,080 | $3,058,209 |
| Profit Before Interest and Taxes | $556,043 | $276,320 | $592,891 |
| EBITDA | $593,400 | $358,334 | $679,476 |
| Interest Expense | $0 | $11,900 | $21,420 |
| Taxes Incurred | $144,571 | $68,749 | $148,582 |
| Net Profit | $411,472 | $195,671 | $422,889 |
| Net Profit/Sales | 9.4% | 3.8% | 7.1% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $87,724 | $103,866 | $119,134 |
| Cash from Receivables | $4,284,732 | $4,992,582 | $5,745,958 |
| Subtotal Cash from Operations | $4,372,456 | $5,096,448 | $5,865,092 |
| Additional Cash Received | |||
| New Long-term Liabilities | $0 | $280,000 | $0 |
| Subtotal Cash Received | $4,372,456 | $5,376,448 | $5,865,092 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $2,297,200 | $2,893,866 | $3,130,824 |
| Bill Payments | $1,577,967 | $1,981,654 | $2,297,925 |
| Subtotal Spent on Operations | $3,875,167 | $4,875,520 | $5,428,749 |
| Additional Cash Spent | |||
| Long-term Liabilities Principal Repayment | $0 | $0 | $56,000 |
| Purchase Long-term Assets | $46,700 | $312,600 | $58,300 |
| Dividends | $260,000 | $120,000 | $310,000 |
| Subtotal Cash Spent | $4,181,867 | $5,308,120 | $5,853,049 |
| Net Cash Flow | $190,589 | $68,328 | $12,043 |
| Cash Balance | $874,889 | $943,217 | $955,260 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $874,889 | $943,217 | $955,260 |
| Accounts Receivable | $526,344 | $623,196 | $714,804 |
| Total Current Assets | $1,401,233 | $1,566,413 | $1,670,064 |
| Long-term Assets | |||
| Long-term Assets | $261,500 | $574,100 | $632,400 |
| Accumulated Depreciation | ($163,857) | ($245,871) | ($332,456) |
| Total Long-term Assets | $97,643 | $328,229 | $299,944 |
| Total Assets | $1,498,876 | $1,894,642 | $1,970,008 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $134,604 | $174,699 | $193,176 |
| Subtotal Current Liabilities | $134,604 | $174,699 | $193,176 |
| Long-term Liabilities | $0 | $280,000 | $224,000 |
| Total Liabilities | $134,604 | $454,699 | $417,176 |
| Paid-in Capital | $120,000 | $120,000 | $120,000 |
| Retained Earnings | $832,800 | $1,124,272 | $1,009,943 |
| Earnings | $411,472 | $195,671 | $422,889 |
| Total Capital | $1,364,272 | $1,439,943 | $1,552,832 |
| Total Liabilities and Capital | $1,498,876 | $1,894,642 | $1,970,008 |
| Net Worth | $1,364,272 | $1,439,943 | $1,552,832 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $4,386,200 | $5,193,300 | $5,956,700 |
| Account staff, events, media placement and direct costs | $1,500,500 | $2,038,900 | $2,305,600 |
| Gross profit | $2,885,700 | $3,154,400 | $3,651,100 |
| Gross margin | 65.8% | 60.7% | 61.3% |
| Salaries and wages | $1,410,800 | $1,592,366 | $1,678,024 |
| Marketing and advertising | $270,000 | $318,400 | $352,600 |
| Rent and utilities | $270,400 | $436,900 | $450,500 |
| Other operating costs | $378,457 | $530,414 | $577,085 |
| Total operating expenses | $2,329,657 | $2,878,080 | $3,058,209 |
| Interest and income tax | $144,571 | $80,649 | $170,002 |
| Net profit / (loss) | $411,472 | $195,671 | $422,889 |
Break-even analysis:
- Estimated fixed monthly costs: $194,100
- To cover fixed costs, Kat Jenkins PR needs to generate approximately $295,000 in monthly revenue
- Projected Year 1 average monthly revenue of $365,517 is above this level
Key financial assumptions:
- Revenue growth of 18% in Year 2 and 15% in Year 3 based on planned capacity expansion and marketing investment
- Account staff, events, media placement and direct costs estimated at 34-39% of revenue across the forecast period, consistent with industry benchmarks
- Staffing costs set at 28-32% of revenue, scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget fixed at about 6% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one
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