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Executive Summary
Retro Marketing is a company that has a deep focus and passion for selling insurance policies and various appliances. A laser-sharp focus on this pair of industries has made us more appealing to clients within these industries.
Another thing that makes Retro Marketing special is how responsive we are to the needs of our customers. We go out of our way to ensure our call center agents are equipped with the skills to provide remarkable services.
We offer inbound and outbound B2C services mainly. This includes services such as closing sales leads, following up on customer inquiries, market research, CRM, and more. Basically, there's little we can't do.
Our services are also especially affordable compared to our direct competitors. The sheer volume of calls that go in and out daily accounts for all expenses and allows us to have a steady revenue stream. We also spent a significant amount on marketing when we started Retro Marketing, which seems to have paid off considering our sales performance.
At the time of writing, we have generated just over $3,000,000. Our sales analysis indicates that this figure will grow by about 8% YoY. An investment of $700,000 would increase this to over 20% YoY from Year 2.
Retro Marketing is seeking $700,000 in growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $3,268,470 | $4,051,920 | $4,893,160 |
| Gross margin | 44% | 45% | 45% |
| Net profit / (loss) | ($80,604) | $38,372 | $261,603 |
Company Overview
Retro Marketing is an outbound call centre & sales service founded by Ivan Krkic, operating as an LLC. Headquartered in Phoenix, Arizona, USA, Retro Marketing was established to serve the growing demand for specialist services in this sector.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Invest the $700,000 in agents, training and marketing while keeping EBITDA positive |
| Year 2 | Grow revenue by 24% to $4,051,920, return to net profit, hire additional agents |
| Year 3 | Grow revenue to $4,893,160 and net profit to $261,603; reach 100 employees |
Retro Marketing was founded by Ivan Krkic in 2019. The company is registered as an LLC in Arizona.
Ivan Krkic was a leading call center salesman for Detroit Energizer. His experience and passion for this competitive industry gave him the grit needed to build a thriving business.
The call center currently has 74 employees, many of them part-time agents, and is looking to reach the 100-employee mark by Year 3.
Our primary mission is to provide our valued clients with outstanding service - time after time.
It seems like we're not doing a bad job so far. Retro Marketing was voted the #3 best business in a local Phoenix business poll.
Market & Customer Analysis
The call center industry is undeniably vibrant. It's large and forecast to keep growing strongly over the next decade.
Given that call centers make up a large share of the global customer service industry, it's clear that there is a great opportunity for success in this boisterous industry. Our analysis indicates that many Phoenix-based call centers are experiencing similar growth, which brings more competition.
We've been able to overcome this threat with ease. Our pricing strategy makes our call center services more accessible than those of the vast majority of our competitors. We've also taken advantage of innovative market trends such as Machine Learning and Conversational AI. These tech tools have made us far more productive and competitive in the market.
Customer analysis:
We've put great effort into learning about the needs and preferences of our customers. This has been highly influential to our business' value system.
Our customers typically range between the ages of 18 - 75. Considering the wide range of products we promote, they are based anywhere in the US.
These individuals are interested in purchasing value-filled insurance policies and high-quality appliances. They have a median household income of $12,000 and can be considered as working class.
Customer feedback is highly important for the success of our business, given the ever-changing interests of our target audience. We stay aware of their core values by conducting focus groups. Although this is a considerably expensive process, it's been highly effective.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Teleperformance | Global scale, broad service range | Large enterprise focus; higher price point |
| TTEC | National presence, technology platform | Large enterprise focus; broad multi-sector offering |
| Alorica | Large agent capacity, competitive pricing | Broad multi-sector offering |
Retro Marketing’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: Sector focus on insurance and appliance sales; founder with 15+ years in call centre sales; relationships with 142 businesses; competitive pricing; established team of 74 with a full management team | Weaknesses: Single location; price-led positioning keeps margins thin; reliance on two core sectors |
| External | Opportunities: Growing call centre demand; conversational AI and machine learning productivity; expansion into adjacent sectors; growth capital to add agents | Threats: Large national and global competitors with greater resources; telemarketing regulation; agent turnover; economic downturn reducing client spend |
Sales & Marketing Plan
Our wealth of contacts and pricing strategy have proven to be the winning aspects of our sales plan. Ivan Krkic, our CEO, has over 15 years of experience in the industry.
This has led to him building long-term relationships with many businesses and consumers. Long story short, our database is virtually endless. The 142 businesses that we've built relationships with are a bonus.
We also have a distinct focus on undercutting our competitors. However, we don't compromise on the quality we provide our customers either. This added value has enabled us to attract and retain our customers.
The quality of our sales team is also unprecedented. We've invested significantly in the training of our call center pros. Their diligence and passion have been instrumental to the growth of Retro Marketing. Beyond that, we have generous incentives for team members who meet their targets.
Additional marketing notes:
We've found that social media marketing isn't particularly effective when it comes to the call center business. Clients are more prone to give contracts to call centers that have a reputation for getting the job done.
However, we do make use of email marketing. This allows us to share our successes in a newsletter with our subscribers, most of whom are already loyal clients.
Hosting seminars about how to sell on the phone has also been highly effective in terms of presenting ourselves as an authority in the industry. We host one every quarter and share that content on YouTube and social media.
Operating Plan
Key personnel and duties:
Riley Smith — Admin Assistant
- Safe storage of physical and digital files
Donovan Given — Social Media
- Working closely with our CMO to develop effective social media campaigns
Lisa McBride — Supervisor
- Overseeing all staff members and daily operations
- Assisting with client inquiries when necessary
Patricia Lewis — Sales Manager
- Supervising our sales team in particular
- Training and mentoring them to ensure they meet their goals
Gary Oldfield — CRM Manager
- Addressing the various needs of our customers
- Developing strategies to improve our customer experience
Gary Jeremy — Janitor
- Ensuring that our call center is clean at all times
- Liaising with the supervisor if cleaning materials are required
Management Team
CEO: Ivan Krkic
Ivan is a veteran in the call center industry and has worked for one of the largest call centers in the USA, J Telemarketing. This experience has been invaluable for the business. He also holds an MBA from the University of Notre Dame, so he has the business acumen to match. Our CEO’s leadership style and ability to teach others has catapulted us to success.
CMO: Hillary Kent
When it comes to marketing our call center, Hillary has simply outdone herself. She has the natural ability to make a brand’s messaging consistent and relatable, which is her greatest strength. She holds a diploma in communications from the University of Nebraska.
CFO: David Bryant
David makes sure that our numbers add up, and he does an excellent job at it. Having studied at arguably the finest institution in the world, Harvard University, it's clear that he has the skill set to help us achieve our financial goals.
HR: Julio Neuer
Our talented sales team is a result of Julio’s excellent recruitment processes. He knows how to spot a diamond in the rough. Beyond that, he ensures that all team members are happy in their positions considering the pressure that working in a call center can bring. Even though he studied agriculture at DePauw University, he has an excellent eye for talent.
Operations Manager: Beverly Franklin
Beverly makes sure that our bustling call center is running smoothly at all times. Her ability to organize our entire operation has made us a well-oiled machine. Beverly studied business management at the prestigious UCLA.
Financial Plan
Projected Profit or Loss Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $3,268,470 | $4,051,920 | $4,893,160 |
| Direct Cost of Sales | $117,830 | $141,760 | $166,420 |
| Production Payroll | $1,712,640 | $2,079,380 | $2,507,930 |
| Total Cost of Sales | $1,830,470 | $2,221,140 | $2,674,350 |
| Gross Margin | $1,438,000 | $1,830,780 | $2,218,810 |
| Gross Margin % | 44.0% | 45.2% | 45.3% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Sales and Marketing Payroll | $136,300 | $182,900 | $191,700 |
| Advertising/Promotion | $58,400 | $77,300 | $86,900 |
| Travel | $14,200 | $17,600 | $19,300 |
| Other Sales and Marketing Expenses | $9,600 | $11,800 | $12,900 |
| Total Sales and Marketing Expenses | $218,500 | $289,600 | $310,800 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $556,400 | $598,400 | $651,800 |
| Depreciation | $136,000 | $155,300 | $96,560 |
| Dues and Subscriptions | $4,800 | $5,300 | $5,700 |
| Professional Fees | $26,400 | $31,700 | $33,200 |
| Rent | $214,800 | $276,400 | $284,700 |
| Software Purchases | $46,300 | $58,900 | $70,400 |
| Insurance | $21,700 | $27,400 | $32,100 |
| Telephone and Internet Access | $28,900 | $36,700 | $43,800 |
| Utilities | $33,600 | $44,100 | $47,900 |
| Miscellaneous | $18,200 | $22,600 | $26,100 |
| Payroll Taxes | $204,454 | $243,158 | $284,872 |
| Total General and Administrative Expenses | $1,291,554 | $1,499,958 | $1,577,132 |
| Total Operating Expenses | $1,510,054 | $1,789,558 | $1,887,932 |
| Profit Before Interest and Taxes | ($72,054) | $41,222 | $330,878 |
| EBITDA | $63,946 | $196,522 | $427,438 |
| Interest Expense | $8,550 | $2,850 | $0 |
| Taxes Incurred | $0 | $0 | $69,275 |
| Net Profit | ($80,604) | $38,372 | $261,603 |
| Net Profit/Sales | (2.5%) | 0.9% | 5.3% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $0 | $0 | $0 |
| Cash from Receivables | $3,244,791 | $3,959,472 | $4,793,894 |
| Subtotal Cash from Operations | $3,244,791 | $3,959,472 | $4,793,894 |
| Additional Cash Received | |||
| New Investment Received | $700,000 | $0 | $0 |
| Subtotal Cash Received | $3,944,791 | $3,959,472 | $4,793,894 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $2,609,794 | $3,103,838 | $3,636,302 |
| Bill Payments | $612,812 | $741,550 | $892,311 |
| Subtotal Spent on Operations | $3,222,606 | $3,845,388 | $4,528,613 |
| Additional Cash Spent | |||
| Principal Repayment of Current Borrowing | $60,000 | $60,000 | $0 |
| Purchase Long-term Assets | $268,000 | $96,500 | $74,800 |
| Dividends | $0 | $0 | $85,000 |
| Subtotal Cash Spent | $3,550,606 | $4,001,888 | $4,688,413 |
| Net Cash Flow | $394,185 | ($42,416) | $105,481 |
| Cash Balance | $580,585 | $538,169 | $643,650 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $580,585 | $538,169 | $643,650 |
| Accounts Receivable | $385,679 | $478,127 | $577,393 |
| Total Current Assets | $966,264 | $1,016,296 | $1,221,043 |
| Long-term Assets | |||
| Long-term Assets | $680,000 | $776,500 | $851,300 |
| Accumulated Depreciation | ($374,500) | ($529,800) | ($626,360) |
| Total Long-term Assets | $305,500 | $246,700 | $224,940 |
| Total Assets | $1,271,764 | $1,262,996 | $1,445,983 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $48,768 | $61,628 | $68,012 |
| Current Borrowing | $60,000 | $0 | $0 |
| Subtotal Current Liabilities | $108,768 | $61,628 | $68,012 |
| Total Liabilities | $108,768 | $61,628 | $68,012 |
| Paid-in Capital | $850,000 | $850,000 | $850,000 |
| Retained Earnings | $393,600 | $312,996 | $266,368 |
| Earnings | ($80,604) | $38,372 | $261,603 |
| Total Capital | $1,162,996 | $1,201,368 | $1,377,971 |
| Total Liabilities and Capital | $1,271,764 | $1,262,996 | $1,445,983 |
| Net Worth | $1,162,996 | $1,201,368 | $1,377,971 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $3,268,470 | $4,051,920 | $4,893,160 |
| Agent payroll and direct call costs | $1,830,470 | $2,221,140 | $2,674,350 |
| Gross profit | $1,438,000 | $1,830,780 | $2,218,810 |
| Gross margin | 44% | 45% | 45% |
| Salaries, wages and payroll taxes | $897,154 | $1,024,458 | $1,128,372 |
| Marketing and advertising | $82,200 | $106,700 | $119,100 |
| Rent and utilities | $248,400 | $320,500 | $332,600 |
| Other operating costs (incl. depreciation, interest, tax) | $282,300 | $337,900 | $307,860 |
| Total operating expenses | $1,510,054 | $1,789,558 | $1,887,932 |
| Interest and income tax | $8,550 | $2,850 | $69,275 |
| Net profit / (loss) | ($80,604) | $38,372 | $261,603 |
Break-even analysis:
- Estimated monthly fixed costs: $125,800
- Monthly revenue required to break even: $285,900
- Break-even is projected to be reached in Year 2, as revenue grows past this level.
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