Social Media Marketing Agency [Rs. 4.02 million, Feb-2021]

Social Media Marketing Agency [Rs. 4.02 million, Feb-2021]
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26 May 2021
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Social media marketing industry is emerging as one of the rapidly growing business ventures all over world as well as in Pakistan. There has been an increasing trend of establishing ‘Social Media Marketing Agency’ during the last decade, especially in urban cities. However, this trend is also spreading to small cities and towns due to increasing use of social media i.e. Facebook, Instagram, Twitter etc., as an easy, adorable and fast medium for business promotion and advertisement.

This pre-feasibility study provide basic information for setting up a ‘Social Media Marketing Agency’ that will engage and use various social media, social networks and search engine optimization platforms to market the product and services of different clients. The proposed agency will have the capacity to serve 64 clients, mainly categorized as 10 local clients, 26 international clients and 28 non-permanent clients annually. However, during the first year of operation agency will operate at 45% capacity utilization (i.e. around 29 clients) with a gradual increase of 5% in subsequent years. Background knowledge and technical qualification of the entrepreneur and key staff is extremely important in success of the proposed venture. The agency is assumed to be setup in any of the big city in Pakistan.

The estimated cost of the project is Rs. 4.026 million with capital investment of Rs. 3.446 million and working capital of Rs. 0.580 million. Based on an equity finance model, the project NPV is around Rs. 27.326 million, with an IRR of 68% and Payback Period of 2.90 years. The project will provide employment opportunities to 8 people including owner manager. The legal business status of this project is assumed to be ‘Sole Proprietorship’.

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