EXTERIOR SIGNS AND

SYSTEMS LLC

L-1 VISA
Business Plan

L-1 Beneficiary: John Johnson Phone: +123 123 123 123

E-mail: [email protected]
 THIS IS A SAMPLE BUSINESS PLAN

This file was created by redacting an actual business plan The Plan Writers
wrote for a client. All client information and proprietary content has been
removed. As such, the business model, managers and financial pro forma herein
are entirely theoretical – only the structure of the plan itself and portions of the
market and industry research remain “real”.

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EXTERIOR SIGNS AND SYSTEMS LLC 2 BUSINESS PLAN

CONFIDENTIALITY STATEMENT

This document contains confidential information proprietary to EXTERIOR SIGNS AND SYSTEMS LLC. This
information and related conversations are submitted solely for the purpose of introducing selected parties
to the Company’s Business Plan. The Company’s disclosure of information contained herein and in related
conversations does not constitute any subscription or authorization to use the information, ideas, or
concepts presented, or to disclose any information to other parties. The Company retains ownership of this
Plan, and the concepts and ideas described herein.
Each recipient of this document agrees to treat it in a strictly confidential manner. The recipient may not
disclose, directly or indirectly, or permit any agent or affiliate to disclose any of the information contained
herein, or reproduce this document in whole or part without the prior written consent of the Company.
Any party who accepts delivery of this Plan or any other document or verbal communication of confidential
information from the Company agrees to be bound by the terms of this Confidentiality Statement and
further agrees to promptly return documents to the Company upon request.

MISSION STATEMENT

Provide distribution and sales support for

the products (sign systems) of the parent
company, The Advertising Company

VISION

Support the parent company (The Advertising P

Company) in acquiring a large market share of
r
the U.S. signs and displays industry by providing
exceptional customer care in pre- and after-sales o

processes and continuously enlarging the v

number of clients.
i

e
EXTERIOR SIGNS AND SYSTEMS LLC 3 BUSINESS PLAN
 CONTENTS

CONFIDENTIALITY STATEMENT ................................................................................................................... 3

MISSION STATEMENT ................................................................................................................................. 3
VISION ........................................................................................................................................................ 3
EXECUTIVE SUMMARY ................................................................................................................................ 5
Short-term Growth Strategy............................................................................................................................. 5
Target Market .................................................................................................................................................. 5
Business Model ............................................................................................................................................... 5
Company Overview .......................................................................................................................................... 5
L-1 Beneficiary ................................................................................................................................................. 5
Competitors ..................................................................................................................................................... 6
Marketing Plan................................................................................................................................................. 6
Financial Summary .......................................................................................................................................... 6
Objectives ........................................................................................................................................................ 6
THE FOREIGN ENTITY ................................................................................................................................. 7
EXTERIOR SIGNS AND SYSTEMS LLC .......................................................................................................... 8
Company Description ...................................................................................................................................... 8
Products & Services ........................................................................................................................................ 9
Company Structure and Ownership ................................................................................................................ 9
Business Goals ................................................................................................................................................ 9
Timetable (Year 1) ......................................................................................................................................... 10
STARTUP SUMMARY ................................................................................................................................. 11
L-1 BENEFICIARY ...................................................................................................................................... 12
PERSONNEL ............................................................................................................................................. 14
PERSONNEL FORECAST ............................................................................................................................ 15
Organizational Chart ...................................................................................................................................... 16
INDUSTRY ANALYSIS ................................................................................................................................ 17
Demand Determinants .................................................................................................................................. 20
COMPETITIVE ANALYSIS ........................................................................................................................... 21
COMPETITIVE ADVANTAGES ...................................................................................................................... 22
MARKETING ............................................................................................................................................. 23
Target Market ................................................................................................................................................ 23
Marketing Objectives ..................................................................................................................................... 23
Marketing Campaign ..................................................................................................................................... 24
Website .......................................................................................................................................................... 23
Social Media .................................................................................................................................................. 23
Word of Mouth ............................................................................................................................................... 23
Business Networking ..................................................................................................................................... 23
Trade Shows .................................................................................................................................................. 23
Printed Material ............................................................................................................................................. 23
Press .............................................................................................................................................................. 23
Samples ......................................................................................................................................................... 23
SWOT ANALYSIS ....................................................................................................................................... 25
REVENUE FORECAST ................................................................................................................................ 26
BREAK-EVEN ANALYSIS ............................................................................................................................ 27
PROJECTED INCOME STATEMENT ............................................................................................................. 28
ROJECTED CASH FLOW ............................................................................................................................. 29
PROJECTED BALANCE SHEET ................................................................................................................... 30

EXTERIOR SIGNS AND SYSTEMS LLC 4 BUSINESS PLAN

EXECUTIVE SUMMARY

EXTERIOR SIGNS AND SYSTEMS LLC, hereinafter also referred to as ‘the Company’, ‘Sign Systems and
Supplies’, and ‘the US entity’, specializes in the sale of signs and displays manufactured by its parent
company in Jordan. EXTERIOR SIGNS AND SYSTEMS is a subsidiary of the Amman-based company, and
Partners Co. Advertising Company, also referred to herein as ‘the foreign entity’.
John Johnson has education and experience that prepared him well to successfully manage EXTERIOR
SIGNS AND SYSTEMS LLC as its General Manager. Mr. Johnson is well acquainted with the parent
company’s products and customers’ needs and he will ensure an efficient sales process for the parent
company’s products in the U.S.
The Company will offer exceptional pre-sale and after-sale support to ensure customer satisfaction. Upon
approval of an L-1 visa, the Company will hire John Johnson as the General Manager. The Company will
have ten employees by year 5.
The foreign entity owns 100% of EXTERIOR SIGNS AND SYSTEMS LLC. The parent company has invested
$123,330 to support the operations of the U.S. entity.

Short-term Growth Strategy

In the first years of operations, EXTERIOR SIGNS AND SYSTEMS LLC anticipates increasing brand visibility
and building relationships with prospective clients that have the potential to become long-term
partnerships.

Target Market
EXTERIOR SIGNS AND SYSTEMS LLC targets sign makers, display and exhibition stands manufacturers and
businesses that need sign systems.

Business Model
EXTERIOR SIGNS AND SYSTEMS LLC supports sales of the foreign entity by selling its sign systems. The
Company sells products manufactured by the foreign entity through its website and sales team. The parent
company will send the sign systems produced in Jordan in the form of aluminum profiles, accessories and
plastic parts. These systems are semi-finished and will be cut to size and assembled in the U.S.
The prices very extensively and they can start at a few hundred dollars for small businesses and go to tens
of thousands of dollars for larger entities, such as hospitals or hotels.

Company Overview
EXTERIOR SIGNS AND SYSTEMS LLC was registered in 2018 in Kansas. The Company will be located in
Shawnee, Kansas.

L-1 Beneficiary
John Johnson is result oriented, with an excellent record of achievements, proven skills in managing people
in the most productive way, and expertise in the international sign systems market. He is well prepared to
take the role of General Manager of the U.S. entity, as he knows the needs of the parent company and has
extensive managerial skills that will ensure growth for both the U.S. and foreign entities.

EXTERIOR SIGNS AND SYSTEMS LLC 5 BUSINESS PLAN

Competitors
EXTERIOR SIGNS AND SYSTEMS LLC sells products from its well-established parent company and it
competes with other companies manufacturing and selling sign system products, such as Competitor #1,
Competitor #2, Competitor #3. Exceptional customer support, in addition to high-quality products, will
ensure the Company acquires a large share of the U.S. market.

Marketing Plan
EXTERIOR SIGNS AND SYSTEMS LLC will have a website (www.samplesite.us) optimized to be highly ranked
in Google search. In order to increase its visibility, the Company will use social media to promote its
services. The Company will also rely on word of mouth and recommendations. EXTERIOR SIGNS AND
SYSTEMS will participate in trade shows and use every opportunity to network. The Company will carefully
listen to customers’ needs and strive to make its clients fully satisfied.

Financial Summary
EXTERIOR SIGNS AND SYSTEMS LLC’s financial model shows consistent growth for the brand over the next
five years. Plans call for the Company to achieve over a million in annual gross revenue, with a net profit of
$123,123 in year five. The following graph illustrates the financial goals of EXTERIOR SIGNS AND SYSTEMS
LLC within the next five years.

Highlights

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue $410,000 $550,000 $690,000 $840,000 $1,020,000
Gross Margin $205,000 $275,000 $345,000 $420,000 $510,000
Net Profit ($11,771) ($16,033) $27,603 $74,605 $132,846

Revenue Gross Margin Net Profit

Objectives
The purpose of this plan is to provide USCIS with the information necessary to evaluate the scope and
future growth of EXTERIOR SIGNS AND SYSTEMS LLC in the marketplace. In addition to serving as a
roadmap for management, the plan will show that:

A significant market opportunity The parent company, The Advertising The correct capital structure will allow
exists when analyzing current market Company, has invested $123,123 to for a long-lasting, profitable business.
demands and competitive support the Company’s operations.
landscape.

EXTERIOR SIGNS AND SYSTEMS LLC 6 BUSINESS PLAN

 THE FOREIGN ENTITY

The Advertising Company

The Advertising Company (www.sample.com) was
founded in Amman in 1979. In more than 35 years it
has been transformed from a small advertising office,
into a specialized sign designer and manufacturer.
The Advertising Company specializes in the design,
manufacture and installation of signs and exhibition
stands. Having more than 71 qualified employees, the
company supplies hundreds of diversified projects,
including major architectural projects and international
hotels throughout the Middle East.
The company is up to date with market and industry
trends and participates at major sign events in the
world. Its sign systems products were recognized by
many industry leaders and displayed in Orlando U.S. at
the largest specialized sign exhibition in the world, held
by International Sign Association.

Among its products and services are the following:

Complete sign scheduling, Manufacturing and Marketing Signs:

specification, and design service for manufacturing high quality and
architectural projects. This chargeable international standard signs with different
service takes into consideration the sign systems, materials and state of the art
improvement of way-finding and technologies (CNC router machines, laser
enhancing corporate identity. cutting and engraving, large-format digital
printing, etc.)

Electronic Signs: a complete system Booths and Exhibition Systems: The

for convention centers, conference company is specialized in providing
rooms, moving messages, currency different solutions to its customers, to
exchange rates, electronic queuing present their corporate identity and send
systems, etc. the company message to its customers
by developing different 3D designs,
including all kinds of floors, furniture,
branding, audio and visual equipment.
The company also provides LED Systems
with different lighting set-ups and all
colors.

The quality of the company’s products ensures its longevity, while the provision of comprehensive and
proactive pre-sale and after-sales services plays a pivotal role in guaranteeing and maintaining excellent
customer service and overall customer satisfaction.
In 2002, The Advertising Company opened a new branch in, Qatar to serve the increasing demand in the
Arabian Gulf Area.
Recently, the Company has obtained the ISO 9001 certification.

EXTERIOR SIGNS AND SYSTEMS LLC 7 BUSINESS PLAN

EXTERIOR SIGNSS AND SYSTEMS LLC

Company Description
EXTERIOR SIGNSS AND SYSTEMS will import and sell sign system products manufactured by its parent
company, The Advertising Company.

The foreign entity will send the sign systems produced in Jordan in the form of aluminum profiles,
accessories and plastic parts. Semi-manufactured products will be cut to size and assembled in the U.S.
entity.

The Company will promote and sell the sign systems to sign makers and businesses in the U.S. The sign
makers will install the system with the graphics.

The Company will provide stylish, modern, clean-look, modular sign systems. Its range includes indoor,
outdoor, illuminated or non-illuminated, flat and curved systems.

The products the Company will sell are comprehensive, employing a wide range of materials and
techniques of production. Its products are made of quality environmentally friendly materials like
aluminum, acrylic, polycarbonate, and ABS.

The Company will offer all fixing options; door, wall, name plates, directories, free occupied, suspended,
projected, desk-stand, pylons (free standing), and paper flex. Products are compatible with most types of
braille and tactile text. A wide range of standard and custom sizes are available. Products are simple to
use, assemble, and install.

EXTERIOR SIGNS AND SYSTEMS LLC 8 BUSINESS PLAN

EXTERIOR SIGNSS AND SYSTEMS LLC highly values professionalism, timeliness, and client experience. The
U.S. Company strives to reduce distribution costs and ensure timely delivery of quality products and
services. The Company will benefit from the L-1 Beneficiary’s background and knowledge of the industry.
As Mr. Johnson is the General Manager of the parent company, he will be able to implement successful
business strategies in line with The Advertising Company’s philosophy, understanding fully its needs.

Mr. Johnson has made connections with prospective partners in the U.S. and he is capable of negotiating
deals that promote the growth of EXTERIOR SIGNSS AND SYSTEMS LLC and its parent company.

The Company will focus on the U.S. market but the scope will be global. The U.S. entity will constantly work
on further developing relationships with clients throughout the U.S., which will result in greater revenues for
the parent company.

In addition, the Company may start making products in the U.S. in future and exporting them to the Middle
East and other parts of the world where there is a preference for U.S.-made products.

The Company will also be able to send materials from the U.S. to its parent company in Jordan. EXTERIOR
SIGNSS AND SYSTEMS is committed to the future development of The Advertising Company. With its
efforts, the Company will facilitate operations of the foreign entity and bring even greater success to The
Advertising Company. The parent company can rely on the U.S. entity, knowing Mr. Johnson’s competence
in the core business, products, and market.

Products & Services

The Company will distribute and sell a wide range of sign system products. The products serve various
industries, including medical, hospitality, and retail businesses.
The Company will provide pre- and after-sale customer support.

Company Structure and Ownership

EXTERIOR SIGNSS AND SYSTEMS LLC was formed in 2018 in Kansas as a Limited Liability Company. The
Advertising Company owns 100% of EXTERIOR SIGNSS AND SYSTEMS LLC.

Business Goals

Short-term Goals Intermediate-term Goals Long-term Goals

(within one year) (2-3 years): (within five years):
• Hire the General Manager • Acquire new clients, in addition • Grow revenue to
upon issuance of an L-1 visa to keeping the existing ones $1,020,000 in year 5
• Gain visibility among sign • Hire four employees (two Sales • Grow profit to approximately
makers and other Representatives and two $133,000 in year 5
businesses in need of sign Fabrication Staff) • Become recognized as a
systems • Achieve revenues of $690,000
reliable partner among sign
• Maintain high-quality in year 3
system distributors
customer service at every • Achieve profit of approximately
stage of operations $27,600 in year 3
• Achieve revenues of
$410,000

EXTERIOR SIGNS AND SYSTEMS LLC 9 BUSINESS PLAN

Timetable (Year 1)

Month Action

M1 Hire the General Manager and staff to start operations of the Company

M2 Create overall sales and marketing strategy

M3 Implement a marketing campaign to increase brand awareness

M4 Exhibit at ISA Show in Orlando and establish new customer base

M5 Analyze trade show data

M6 Follow up with exhibition visitors

M7 Conduct six months evaluation of sales performance and prepare improvement strategies

M8 Send newsletter and contact prospective customers

M9 Create engaging content on social media

M10 Follow up existing customers

M11 Create a marketing plan for year 2

M12 Review operations together with the Jordanian entity and plan an operational strategy for year 2

EXTERIOR SIGNS AND SYSTEMS LLC 10 BUSINESS PLAN

STARTUP SUMMARY

Start-up funding includes all the expenditures, both start-up assets, and start-up
expenses, incurred before the Company starts earning revenue.
The parent company has invested $123,123 to support the operations of the
Company.
As depicted in the table, $123,123 is used for start-up expenses and the remaining
$123,123 is working capital.
The investment risk is minimal based on the existing market demand within the
industry. EXTERIOR SIGNSS AND SYSTEMS LLC’s financial model shows consistent
growth for the brand over the next five years.

Use of Start-up Funding

Expenses

Legal and business fees $123,123

Website Development $123,123

Miscellaneous $123,123

Total Start-up Expenses $123,123

Short-Term Assets

Working Capital $123,123

Total Short-Term Assets $123,123

Total Expenses & Assets

Total Start-up Expenses $123,123

Total Start-up Assets $123,123

Total Funding Requirements $123,123

EXTERIOR SIGNS AND SYSTEMS LLC 11 BUSINESS PLAN

 L-1 BENEFICIARY

John Johnson is a Partner and the General Manager of

SIGNS Systems and Supplies’ parent company, The
Advertising Company. Upon issuance of his visa, he will
become the General Manager of the U.S. entity. Mr.
Johnson has extensive international experience and
managerial skills that he will employ in the U.S. entity.

EDUCATION:

• Bachelor’s Degree in Economics and Accounting, Jordan University, 1992

EXPERIENCE:

The Advertising Company, Jordan

• Since 2013, Partner and General Manager
• 1992 – 2013 Partner and Deputy General Manager

AREAS OF EXPERTISE:

• Advertisements in newspapers and other media

• Way-finding system design
• Sign manufacturing techniques
• Sign design concepts
• Project management and coordination
• Modular exhibition systems techniques
• Aluminum profile concept design for signs and exhibitions

TRADE SHOWS:

• Mr. Johnson has visited numerous sign exhibitions and trade shows in Germany, UK, China,
Denmark, and exhibited at trade shows in Orlando, U.S., Dubai, UAE, and Amman, Jordan

EXTERIOR SIGNS AND SYSTEMS LLC 12 BUSINESS PLAN

The main duties of Mr. Johnson within EXTERIOR SIGNS AND SYSTEMS will be:

Duties % Time

Creating, communicating, and implementing the organization's vision, mission, and

5%
overall direction to ensure it is consistent with values of the parent company

Planning and developing short and long-term goals and objectives in order to maintain
8%
steady annual growth

Attending relevant trade shows and conferences, such as ISA Sign Expo in Orlando,
4%
and remaining up to date with market trends
Motivating and assisting the team in the U.S. in raising overall performance 8%

Developing new markets and formulating new cooperation models with new vendor
8%
partners in order to improve sales performance

Providing training for the Company’s team, ensuring that all divisions in the Company
6%
operate smoothly

Evaluating performance of employees, taking corrective measures if needed and

6%
praising employees when they achieve the desired results
Maintaining compensation plans and performance incentives for employees 5%

Paying close attention to operations and market trends, analyzing problematic

11%
situations and occurrences, and providing solutions to ensure the Company’s growth

Networking and establishing long-term relationships with key clients 8%

Preparing budgets and reviewing financial and non-financial reports to devise solutions
9%
or improvements and ensuring expenditures are maintained within the budget

Performing SWOT analysis to mitigate any potential risks through industry and market
7%
changes and potential growth opportunities

Ensuring high levels of customer service to match the high quality of the Company’s
8%
products

Conducting periodic reviews of the U.S. operations with the Jordanian team 7%

EXTERIOR SIGNS AND SYSTEMS LLC 13 BUSINESS PLAN

PERSONNEL

Core to the successful management of the business is the hiring of the following personnel:

Educational
Position Main Duties and Time Allocation (%)
Requirements
• Identify potential clients 20%
• Inform potential clients about products offered 10%
• Close sales 10%
SALES & • Build customer relationships 10% Bachelor’s degree
MARKETING • Review sales records and take corrective measures as needed or higher
MANAGER 10%
• Research consumer trends and habits 10%
• Create and implement sales & marketing campaigns 20%
• Analyze marketing data 10%

• Work on continuously improving sales by creating (together

with the Sales & Marketing Manager) and implementing sales
strategies to ensure the Company hits sales target 5%
• Plan and develop short- and long-term goals and objectives
with the Sales & Marketing Manager in order to maintain
steady annual growth 5%
• Contact regular and prospective clients to explain the product, High-school
SALES answer questions, and quote prices 25% diploma minimum,
REPRESENTATIVES • Establish long-term relationships with customers 5% bachelor’s degree
• Provide exceptional pre- and post-sales customer care 15% preferable
• Inform potential clients on sales conditions and pricing 15%
• Close the sales 10%
• Help the Company’s revenues grow by nurturing and enhancing
relationships with clients, as well as developing relationships
with new clients 20%

• Inspect all the parts received from the foreign entity 15%
• Cut parts to right size 25%
• Assemble the sign systems 50%
High-school
FABRICATION STAFF • Prepare sign systems to be shipped to clients 10% diploma

EXTERIOR SIGNS AND SYSTEMS LLC 14 BUSINESS PLAN

PERSONNEL FORECAST

EXTERIOR SIGNS AND SYSTEMS LLC will be under the leadership of John Johnson as the Company’s
General Manager. The Company will have four employees in year 1 and 10 in year 5. The following table
details the personnel forecast in the following five years:

Personnel Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Management Count
General Manager 1 1 1 1 1
Sales & Marketing Manager 1 1 1 1 1
Sales Representatives 1 2 3 4 5
Fabrication Staff 1 2 3 3 3
Total Number 4 6 8 9 10
Management Salary
General Manager $11,111 $11,111 $11,111 $11,111 $11,111
Sales & Marketing Manager $11,111 $11,111 $11,111 $11,111 $11,111
Sales Representatives $11,111 $11,111 $11,111 $11,111 $11,111
Fabrication Staff $11,111 $11,111 $11,111 $11,111 $11,111
Management Cost
General Manager $11,111 $11,111 $11,111 $11,111 $11,111
Sales & Marketing Manager $11,111 $11,111 $11,111 $11,111 $11,111
Sales Representatives $11,111 $11,111 $11,111 $11,111 $11,111
Fabrication Staff $11,111 $11,111 $11,111 $11,111 $11,111
Total Payroll $11,111 $11,111 $11,111 $11,111 $11,111

Number of Employees per Year

YEAR 5 10

YEAR 4 9

YEAR 3 8

YEAR 2 6

YEAR 1 4

0 2 4 6 8 10 12

EXTERIOR SIGNS AND SYSTEMS LLC 15 BUSINESS PLAN

 Personnel Cost per Year

YEAR 5

YEAR 4

YEAR 3

YEAR 2

YEAR 1

Organizational Chart
The following organizational chart presents the organizational structure of the Company. All positions will
be there from year 1. The number of Fabrication Staff will increase from one to three by Year 3, and the
number of Sales Representatives will increase from one to five by Year 5.

G E NERAL MANAGER

FABR ICATION S TAFF S AL ES & MAR KETING MANAG ER

S AL ES R E PRESENTATIVE

EXTERIOR SIGNS AND SYSTEMS LLC 16 BUSINESS PLAN

 INDUSTRY ANALYSIS

Over the five years to 2019, growth in

advertising expenditure and an uptick in
business formation have increased
demand for the Billboard and Sign
Manufacturing industry1. As online media
has challenged many traditional
alternatives to billboards, such as newspapers and magazines, advertisers have continued to value
industry products as a way to reach mass audiences in an increasingly fragmented media landscape.
Nonresidential construction spending has also risen over the past five years, boosting demand for general
signage from commercial, public and institutional facilities. As a result, industry revenue is expected to
increase an annualized 2.5% over the five years to 2019, including projected growth of 1.5% to $16.7
billion over 2019 alone.
Digital billboards have emerged as a potential growth area for the industry. Since these displays make it
easier for customers to transition between advertisements, they sell at higher prices. This has lifted
industry profit, defined as earnings before interest and taxes, especially as technological improvements
have reduced the cost of light-emitting diodes (LEDs) and other electronic components. However, the
complexity of designing, assembling and servicing digital billboards has also increased the industry's need
for skilled labor, and thus raised its wage costs. Over the five years to 2024, digital billboards are expected
to remain the most-significant driver of industry growth, despite increased regulatory attention at the local
level regarding potential quality-of-life and safety issues these products present.
Over the five years to 2024, industry revenue is
expected to continue growing at an annualized
rate of 1.1% to reach $17.6 billion. Total
advertising expenditure is anticipated to
continue growing during the five-year period.
The simultaneous decline of competing
advertising formats, such as newspapers and
TV, will likely cement the industry's products as
a key component of downstream advertising
campaigns. Moreover, continued growth in business formation and nonresidential construction will
increase the size of the industry's potential market, sustaining demand and encouraging the entrance of
new sign manufacturing companies.

1 (2019) Billboard and Sign Manufacturing, Industry Report, IBISWorld, www.ibisworld.com

EXTERIOR SIGNS AND SYSTEMS LLC 17 BUSINESS PLAN

 Products & Services

Products and services and segmentation (2019)

14.40% Traditional billboards and signs

43.70% Digital billboards and signs

41.90% Other

Sales of traditional billboards and signs are

estimated to account for 43.7% of Billboard and
Sign Manufacturing industry revenue. Billboards are
manufactured in a variety of standard sizes,
including 14-by-48-foot bulletins and “posters” with
dimensions of 10 feet by 40 feet or 10.5 feet by 36
feet. Although these designs are the most common
across the industry, manufacturers typically offer
their own range of additional sizes, and many offer
Traditional billboards and signs billboards with custom dimensions. This segment
includes nonelectric signs of all sizes, including
three-dimensional billboards, trade show exhibits
and storefront signage purchased by most brick-
and-mortar businesses. It does not, however, include signs and displays made from paper or paperboard,
which are classified under the Printing industry (IBISWorld report 32311). Over the past five years, this
segment has expanded due to growth in advertising spending and business formation, but has remained a
relatively constant share of overall industry revenue.

Digital billboards and signs are expected to be the

fastest-growing product segment for this industry,
accounting for an estimated 41.9% of revenue. Digital
technology incorporates LEDs, plasma display panels or
projection screens into billboards and advertising
displays. Digital signage can enhance a customer's
retail experience through interactive interfaces, and the
information displayed is computer-programmed and
can be changed instantly. Advertisers particularly value
Digital billboards and signs
electronic displays because several advertising
messages can be loaded into a computer and rotated
every several seconds on one digital board. Additionally,
different messages can be conveyed at different times,
such as coffee advertisements in the morning and liquor advertisements on Friday nights. Advertisers
prefer these features because they can sell multiple advertising slots on the same billboard or on the same
display. Conversely, advertisers can only sell one ad space at a time using traditional billboards and
displays.
The electronic segment also includes big-money items such as scoreboards and other large video displays
used at major collegiate and professional sporting and entertainment venues. For example, industry leader
Daktronics Inc. produces video display systems capable of producing more than 4.0 trillion colors and
costing in excess of $10.0 million. The electronic billboard and displays segment is estimated to have risen
relatively quickly over the past five years as production has become more efficient and because of the
advantages these products provide to advertisers.

EXTERIOR SIGNS AND SYSTEMS LLC 18 BUSINESS PLAN

 Other products manufactured by this industry
include neon signs, countertop displays and
removable letters for marquee and sidewalk
signs. These products have declined as a share of
revenue over the past five years due to gains in
digital display manufacturing. Neon signs, for
example, have increasingly been replaced with
LED technology. In addition, digital displays on
which varying messages can be displayed easily
through computer software have reduced
demand for signs with changeable letters, which
Other can be time-consuming to update. Over the next
five years, this segment is expected to continue
declining as a share of industry revenue as
demand for the industry's core billboard and digital signage offerings increases.

Major Markets

Major market segmentation (2019)

18.50% Retail and food services

Other
42.20%
18.50%
Corporate and trade shows

Outdoor advertising and

transportation
20.80%

Retail and food services

Retailers, accommodation and food services is the largest

market for Billboard and Sign Manufacturing industry
products. Similar to most other physical businesses,
retailers and restaurants require general signage to
publicize their services to potential customers. In addition,
restaurants tend to purchase more signage than
businesses engaged in other industries, since they often
list menu items alongside photographs or additional
descriptions. The rise of fast-casual dining has likely driven
some expansion in this market, since these establishments
tend to rely more heavily on signage to convey information
to customers than single-location full-service eateries.
Retailers are also a substantial market for industry services. Retail establishments tend to locate in
proximity to other businesses in high-traffic areas, so signage can be important in advertising their
products and driving potential customers to their stores in a competitive environment. Most retailers
require fairly simple, traditional industry products. In addition, the industry manufactures some point-of-
purchase displays frequently used by retailers to promote products in-store. Combined, retail and food
services are expected to generate 42.2% of industry revenue.

EXTERIOR SIGNS AND SYSTEMS LLC 19 BUSINESS PLAN

 Outdoor advertising and transportation
Outdoor advertising agencies purchase industry products
for the purpose of renting out display space for other
businesses' marketing efforts. Products sold to this market
include billboards, which cost tens of thousands of dollars
and require significant manufacturing capabilities to
produce. Advertising agencies are increasingly purchasing
digital billboards, which enable agencies to toggle
advertiser messages and generate greater revenue per
individual billboard. This segment also includes transit
agencies, which purchase a great deal of digital signage for
use in conveying timely information such as weather
advisories and departure times. Government agencies,
particularly in major cities, may also purchase larger billboards to publicize public service announcements
or rent display space to advertisers. This segment is estimated to account for 18.5% of industry revenue.
Corporate and trade shows
The corporate and trade shows segment includes signage
related to commercial office buildings, in addition to displays
and exhibits produced for corporate conferences. This segment
moves partly in line with nonresidential construction; the
construction of new office space goes hand-in-hand with
demand for signage for that space, which is usually a one-time
expense. Corporate conferences are a steadier market, though
are still somewhat cyclical, in that they tend to be a
discretionary business expense afforded in growth periods. In
2019, this segment is anticipated to account for 18.5% of
industry revenue.
Other
Other markets for industry products are expected to generate the remaining 20.8% of revenue. This
segment includes exports, which account for only a small share of revenue given the bulky nature of
industry products and the constraints that puts on international trade. The industry's miscellaneous
segment is large because signage is demanded by a wide array of businesses and special events, but no
other markets are expected to account for a significant share of revenue.

Demand Determinants
Demand for the Billboard and Sign Manufacturing industry is determined primarily by business spending on
advertising and promotional activity. Advertising budgets are in turn influenced by levels of corporate profit.
Companies are more likely to invest in rebranding or new marketing campaigns when they have healthy
profit margins. Conversely, when margins are tight, advertising is often among the most discretionary and
earliest expenses to be cut in efforts to preserve profit. As overall corporate profit in the United States has
increased over the past five years, total advertising spending has grown strongly, fueling demand for
industry products.
The media landscape has become increasingly fragmented, with Americans consuming media from an ever
more diverse range of sources. Although the internet has thus enabled advertisers to target consumers
with greater demographic specificity, billboards and outdoor signs are now one of the few remaining ways
to reach a large general audience, helping to sustain downstream demand for industry products.
In addition to selling signage to downstream markets through advertising agencies, industry operators
market their products directly to businesses in a variety of industries. Most brick-and-mortar businesses
require signs to some extent, so rates of business formation have a significant impact on industry demand.
As a result, the industry is highly cyclical; macroeconomic factors such as business sentiment, access to
credit and consumer spending influence the number of US businesses, which in turn determines the size of
the industry's market.

EXTERIOR SIGNS AND SYSTEMS LLC 20 BUSINESS PLAN

COMPETITIVE ANALYSIS

EXTERIOR SIGNS AND SYSTEMSwill compete with major operators of the industry with the goal of
becoming the leading industry player in the U.S., as the parent company is a well-established entity with
high-quality products.
The following are some of Sign Systems and Supplies’ competitors:

COMPETITOR # 1 | www. Competitor1.com

APCO has been providing sign solutions in the US and throughout the world for over 50 years, with a proven
record of managing the most complex of projects. Design and innovation have been at the core of APCO's
business since 1966. With an unprecedented 10 awards for Product Design Excellence as presented by
the Industrial Designer's Society of America, APCO continues to offer the broadest range of innovative sign
solutions in the industry. All APCO products are built to last, easy to maintain and backed by written
warranties. APCO is proud to be an environmentally conscious company, having developed a range of
modular products & manufacturing processes that help to reduce waste, energy consumption and the
negative impact upon our environment, without compromising design or durability.

COMPETITOR # 2 | www.competitor2.com
In 2013 prominent sign systems wholesale supplier on the world market expanded its presence to the
American market with their American owned and operated; America. incredibly flexible sign systems
provide cost-effective sign production of both standard and custom signs, for indoor and outdoor signage.
The company’s wide range of extrusions enable creative sign production. Its diverse sign systems feature
solutions for replaceable inserts, sign rows and sign panels, to provide easy and accessible update of sign
information. The suite includes seven different designs with their own unique features to meet all
customers’ requirements of functionality, as well as providing a plethora of design possibilities.

COMPETITOR # 3 | www. competitor3.com

Competitor # 3 is the among the world’s most popular brands of wayfinding signage systems. In 1995, they
were the first to combine modular aluminum signs with digital printing. Today, Competitor # 3 has grown
into a group of companies spread across nine countries on five continents. Their product lines are regularly
sold in 112 countries to over 14,000 active customers– 4,000 of whom are members of Competitor # 3’s
prestigious Ambassadors Club.

COMPETITOR # 4 | www. competitor4.com

Competitor # 4 is an industry leading signage company developing comprehensive interior and exterior
wayfinding systems for commercial and government clients. With more than 40 years of experience in
planning, fabricating, installing and maintaining signage systems, Competitor # 4 has a proven history of
successfully managing comprehensive signage projects for clients across the country. Competitor # 4 Sign
Systems is dedicated to producing quality signage products, systems, and providing consultation.
Competitor # 4 is among the pioneers in the wayfinding industry, with an extensive line of long-lasting,
modular products that are designed and manufactured in the United States to the highest quality.

EXTERIOR SIGNS AND SYSTEMS LLC 21 BUSINESS PLAN

COMPETITIVE ADVANTAGES

The primary competitive advantages of the Company upon entering the market are as below:

▪ Expertise of the L-1 Beneficiary

Given Mr. Johnson’s broad international experience, he can easily connect and relate to both sign makers
and businesses in need of the Company’s products and better understand their needs and preferences.
The expertise of L-1 beneficiary, John Johnson, will be essential for the success of the Company as he
knows the core business and operations of the foreign entity, and he has proven managerial skills.

▪ A Well-Established Parent Company

The Advertising Company is a well-established business that has consistently increasing sales. Working
with a well-regarded brand gives an advantage over businesses that are just starting.

▪ Synergy Created by United Efforts of the U.S. and Jordanian Entity

The combination of a strong U.S. sales team and high-quality products manufactured by the foreign
company will bring synergy in all their efforts. John Johnson will be able to provide the most suitable
services for the needs of the parent company. The Company will enable the parent company to gain a
larger market share by facilitating sales in the U.S.

▪ Having Contacts Within Key Markets

The Company will benefit from its large network of contacts across various commercial and geographic
markets.

▪ International Perspective
EXTERIOR SIGNS AND SYSTEMS is a subsidiary of a global company and it will benefit from its
international perspective. Instead of focusing on U.S. sales only, the Company will have a global
orientation.

▪ Competitive Prices
Since the Company sells products manufactured by its parent company, it is able to offer competitive
prices. Keeping its pricing at competitive level will enable the Company to acquire a large number of
customers and consequently generate more income.

International Competitive Prices

Perspective

Expertise of the A Well-Established

L-1 Beneficiary Parent Company
SUCESS

Synergy Created by Having Contacts

United Efforts of the U.S. within Key Markets
and Jordanian Entity

EXTERIOR SIGNS AND SYSTEMS LLC 22 BUSINESS PLAN

MARKETING

Target Market
The Company facilitates distribution and sales of the products manufactured by the parent company in
Jordan, The Advertising Company. The Company targets sign makers and display and exhibition stands
manufacturers, as well as businesses operating in various industries, such as food and hospitality,
healthcare, etc. that need sign systems.
EXTERIOR SIGNS AND SYSTEMS LLC puts effort into every step of the sales process to ensure high quality
services. The Company strives to establish long-term relationships with clients and to build a reputation as
a reliable partner.

Marketing Objectives
EXTERIOR SIGNS AND SYSTEMS LLC’s marketing objectives encompass the following:
• Increase brand visibility

• Remain attuned to the marketplace

• Integrate new market trends to meet the needs of the end-users of the products

EXTERIOR SIGNS AND SYSTEMS LLC 23 BUSINESS PLAN

Marketing Campaign

Website Word of Mouth Printed Materials Samples

EXTERIOR SIGNS AND In addition to investing in EXTERIOR SIGNS AND The Company will send
SYSTEMS LLC has a search traditional and digital SYSTEMS will print flyers, samples of its products to
engine optimized website marketing campaigns, the brochures, and other major sign makers to make
(www.signsystems.us) with Company will rely on promotional material to them see the quality
information about its reputation, knowing that distribute at conferences offered by Sign Systems
products, prices, contact this is of the utmost and trade shows. The and Supplies. The
information, and an option to importance within the material will promote the Company will strive to
subscribe to newsletter. industry. Sign Systems and Company and its products. attract as many clients as
Supplies’ dedication to possible and to build long-
exceeding customers’ term partnerships.
expectations will bring
recommendations that will
bring new customers.

Social Media Business Networking Trade Shows Press

EXTERIOR SIGNS AND SYSTEMS Networking is one of the EXTERIOR SIGNS AND EXTERIOR SIGNS AND
LLC is aware of the importance of main marketing strategies SYSTEMS will participate in SYSTEMS will make sure to
social media presence. The for the Company. John industry-relevant trade be marketed and appear in
Company will use LinkedIn, Johnson will be proactive in shows presenting the professional publications
Instagram, and Facebook to
promote and build the identity of
promoting the Company’s Company and its products. and magazines presenting
its brand. The Company will services and building Trade shows, such as ISA new trends in the industry,
communicate updates and positive business Sign Expo to be held in such as Signs of the Times
promotional offerings on its social relationships with Orlando in April 2020 are (www.signstimes.com).
media sites. An ever-expanding prospective partners. Mr. an excellent opportunity to Gaining media coverage
social media presence is crucial Johnson will use every bring exposure to the will have instant benefits
in the modern business opportunity to network, Company, expand the for the Company as it will
environment. The focus on social bring exposure to the business network, and boost its visibility and
media will help EXTERIOR SIGNS Company’s products, and develop new business credibility. Being present in
AND SYSTEMS LLC to increase
the awareness and credibility of
develop new business opportunities. the press lets customers
its brand and allow the Company opportunities. The know about the Company,
to communicate directly with its Company will also join the what it offers, and how it
prospective clients and better International Sign differs from the
understand their needs. The Association. competition
information and feedback
obtained from customers will help
the Company continuously
improve its services and
consequently increase sales.

EXTERIOR SIGNS AND SYSTEMS LLC 24 BUSINESS PLAN

 SWOT ANALYSIS

The following is a listing of Sign Systems and Supplies’ key strengths and weaknesses, as well as the
opportunities and threats that exist in the marketplace.

STRENGTHS WEAKNESS

S W
▪ Managerial experience and industry ▪ It will take some time to gain
knowledge of L-1 Beneficiary reputation and brand
recognition in the U.S. market
▪ Well-established parent Company and
its support

▪ Competitive prices

O T
OPPORTUNITIES THREAT

▪ Catering to various industries ▪ Well-established industry

players
▪ Bringing competitive advantage
to its parent company by ▪ New industry entrants offering
providing the sales team in the similar products at
U.S. competitive prices

▪ Establish a timely and effective

information feedback channel,
and keep abreast of the market
dynamics

▪ Exporting U.S. materials to its

parent company

▪ Exporting U.S. products to

various international markets

EXTERIOR SIGNS AND SYSTEMS LLC 25 BUSINESS PLAN

REVENUE FORECAST

The following is a five-year revenue forecast. Direct costs include all costs that can be directly tied to
revenue and include “cost of goods/services.”

Revenue Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Order Value (average)
Large Companies $22,123 $22,123 $22,123 $22,123 $22,123
Small Businesses $22,123 $22,123 $22,123 $22,123 $22,123
Number of Orders
Large Companies 11 15 20 25 31
Small Businesses 8 10 9 9 9
Total Number of Orders 19 25 29 34 40
Revenue
Large Companies $22,123 $22,123 $22,123 $22,123 $22,123
Small Businesses $22,123 $22,123 $22,123 $22,123 $22,123
Total Revenue $22,123 $22,123 $22,123 $22,123 $22,123
Direct Cost of Revenue
Signs $22,123 $22,123 $22,123 $22,123 $22,123
Subtotal Cost of Revenue $22,123 $22,123 $22,123 $22,123 $22,123

The revenue forecast is based on management estimates. The Company plans to increase the number of
orders from 19 to 40 by Year 5. The sales team will grow each year to support the sales efforts of the
Company. The number of orders by small businesses will be similar every year (between 8 and 10), while
the focus will be on clients with larger orders. The number of orders by large companies is expected to grow
from 11 to 31 by Year 5.

Revenue per Year

Year 1 Year 2 Year 3 Year 4 Year 5

EXTERIOR SIGNS AND SYSTEMS LLC 26 BUSINESS PLAN

BREAK-EVEN ANALYSIS

The following break-even analysis shows the revenue necessary to break even in the first year of operation.
Break-even is where revenue equals expenses. As shown below, the Company is expected to incur average
monthly fixed costs of $22,123 in Year 1. To cover fixed and variable costs, which rise and fall with
revenue, the Company must, on average, achieve revenue of $22,123 per month to break even.

Year 1 Break-even Analysis

Monthly Revenue Break-even $22,123

Assumptions:
Average Percent Variable Cost 50%
Estimated Monthly Fixed Cost $22,123

Year 1 Break-even Analysis

$0 $36,650 $73,300

EXTERIOR SIGNS AND SYSTEMS LLC 27 BUSINESS PLAN

PROJECTED INCOME STATEMENT

EXTERIOR SIGNS AND SYSTEMS LLC intends to deploy its funding to maximize growth and profitability. In
the Income Statement table below, gross margin equals sales minus direct costs. The “bottom line” or
profit (as measured before and after taxes and depreciation) equals gross margin minus operating
expenses.

Pro Forma Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $22,123 $22,123 $22,123 $22,123 $22,123
Cost of Revenue $22,123 $22,123 $22,123 $22,123 $22,123

Gross Margin $22,123 $22,123 $22,123 $22,123 $22,123

Gross Margin/Revenue 50% 50% 50% 50% 50%

Expenses
General, Sales & Administrative $22,123 $22,123 $22,123 $22,123 $22,123
Total Personnel $22,123 $22,123 $22,123 $22,123 $22,123
Payroll Taxes & Benefits $22,123 $22,123 $22,123 $22,123 $22,123
Total Operating Expenses $22,123 $22,123 $22,123 $22,123 $22,123

Profit Before Interest and Taxes $22,123 $22,123 $22,123 $22,123 $22,123
EBITDA $22,123 $22,123 $22,123 $22,123 $22,123
Taxes Incurred $22,123 $22,123 $22,123 $22,123 $22,123

Net Profit $22,123 $22,123 $22,123 $22,123 $22,123

Net Profit/Revenue -2.87% -2.92% 4.00% 8.88% 13.02%

Gross Margin

Year 1 Year 2 Year 3 Year 4 Year 5

EXTERIOR SIGNS AND SYSTEMS LLC 28 BUSINESS PLAN

ROJECTED CASH FLOW

The following depictions of EXTERIOR SIGNS AND SYSTEMS LLC’s projected cash flow show that the
Company expects to maintain sufficient cash balances over the five years of this plan. The “pro forma cash
flow” table differs from the “pro forma income statement” table. Pro forma cash flow is intended to
represent the actual flow of cash in and out of EXTERIOR SIGNS AND SYSTEMS LLC In comparison, the
revenue and expense projections on the income statement include “non-cash” items and exclude funding
and investment illustrations.

Pro Forma Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5

Cash Received
Revenue $22,123 $22,123 $22,123 $22,123 $22,123
Subtotal Cash Received $22,123 $22,123 $22,123 $22,123 $22,123

Expenditures
Expenditures from
Operations
Total Personnel $22,123 $22,123 $22,123 $22,123 $22,123

Bill Payments $22,123 $22,123 $22,123 $22,123 $22,123

Subtotal Spent on $22,123 $22,123 $22,123 $22,123 $22,123

Operations

Subtotal Cash Spent $22,123 $22,123 $22,123 $22,123 $22,123

Net Cash Flow $22,123 $22,123 $22,123 $22,123 $22,123

Cash Balance $22,123 $22,123 $22,123 $22,123 $22,123

EXTERIOR SIGNS AND SYSTEMS LLC 29 BUSINESS PLAN

PROJECTED BALANCE SHEET

A balance sheet is a snapshot of EXTERIOR SIGNS AND SYSTEMS LLC’s financial condition.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets
$22,123 $22,123 $22,123 $22,123 $22,123
Cash
$22,123 $22,123 $22,123 $22,123 $22,123
Total Current Assets
$22,123 $22,123 $22,123 $22,123 $22,123
Total Assets

Capital
$22,123 $22,123 $22,123 $22,123 $22,123
Paid-in Capital
$22,123 $22,123 $22,123 $22,123 $22,123
Retained Earnings
$22,123 $22,123 $22,123 $22,123 $22,123
Earnings
$22,123 $22,123 $22,123 $22,123 $22,123
Total Capital

$22,123 $22,123 $22,123 $22,123 $22,123

Net Worth

EXTERIOR SIGNS AND SYSTEMS LLC 30 BUSINESS PLAN