business plan photography studio

8/10/2019 Business Plan Photography Studio

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NAME

CLASS -2014-2015


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SPECIMEN PROFORMA OF PROJECT REPORT

(PHOTOGRAPHY STUDIO)

PROJECT REPORT OF THE ENTERPRISE

NAME OF THE UNITS AND ADDRESSMs. Duggal photography studioGreater Kailash

TELEPHONE

Office xxxxx xxxxxPersonal xxxxx xxxxx

NAME AND ADDRESS OF THE PROMOTERS. Amarjeet DuggalD- !!" Mayapuri"#e$ Delhi - %%!&

CONSTITUTION OF THE FIRMProprietor firm

QUALIFICATION OF THE ENTREPRENEUR% years free lance photography experience

LOCATIONM 'loc( Mar(etGreater Kailash Mar(et

NAME AND ADDRESS OF THE BANK)D*+ 'A#KG, A , KA/0AS) MA,K


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ACKNOWLEDGEMENT

/ am 1ery than(ful to e1eryone $ho all supported me" for / ha1e

completed my project effecti1ely and moreo1er on time.

/ am e2ually grateful to my teacher 3333333333 $ho ga1e me moral

support and guided me in different matters regarding the topic. shehad 4een 1ery (ind and patient $hile suggesting me the outlines of

this project and correcting my dou4ts. / than( her for her o1erall

supports.

0ast 4ut not the least" / $ould li(e to than( my parents $ho helped me a

lot in gathering different information" collecting data and guiding me

from time to time in ma(ing this project. Despite of their 4usy

schedules" they ga1e me different ideas in ma(ing this project

uni2ue.

han(ing you NameCLASS


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EXECUTIVE SUMMARY

! OBJECTIVES

"! MISSION#! KEYS TO SUCCESS

$! COMPANY SUMMARY

%! COMPANY OWNERSHIP

&! START'UP SUMMARY

! SERVICES

! MARKET ANALYSIS SUMMARY

*! MARKET SEGMENTATION+! TARGET MARKET SEGMENT STRATEGY

! SERVICE BUSINESS ANALYSIS

"! COMPETITION AND BUYING PATTERNS

#! STRATEGY , IMPLEMENTATION SUMMARY

$! COMPETITIVE EDGE

%! MARKETING STRATEGY

&! SALES STRATEGY

! SALES FORECAST

! MILESTONES

*! MANAGEMENT SUMMARY

20. PERSONNEL PLAN

" ! FINANCIAL PLAN

""! START'UP FUNDINGBREAK'EVEN ANALYSIS"#! PROJECTED PROFIT AND LOSS

"$! PROJECTED BALANCE SHEET

"%! BUSINESS RATIOS

"&! LONG'TERM PLAN


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EXECUTIVE SUMMARY

Ms. D5GGA0 +ommercial Photography" located in and ser1ing

Delhites $ill ser1e small and medium-si6ed 4usinesses and non-profits for all of their studio photography needs 4y creating

4eautiful shots that ser1e the client7s needs" offering excellent

ser1ice and flexi4ility $ith a personal touch" and offering 1alue-

added ser1ices related to photography. *ounded and directed 4y

1eteran freelance commercial photographer Priyan(a D5GGA0"

Ms. Duggal+ommercial Photography intends to raise`

8"9%"%%% 4yadding limited partners to the 4usiness in order to open a studio

space" hire staff" and undergo a ne$ mar(eting campaign.

Sales and profits from the 4usiness are projected to rise steadily"

from ` 98":%"%%% re1enues and ` 8%%"%%% profits in the first year

to ` &8%%"%%% re1enues and` ;;%"%%% profits in year 8. Gross

margins and net profit margins $ill 4e relati1ely steady at &8 part of creati1ity.

COMPANY SUMMARY

Ms. Duggal+ommercial Photography $ill 4e 4ased in acon1eniently-located studio space $ithin the commercial centre of

Greater Kailash area. he company $as founded 4y Priyan(a

D5GGA0 in ;;;. *or more than ten years" Ms. Duggal has

operated as a freelance photographer speciali6ing in commercial

shoots" esta4lishing a reputation among small 4usinesses as a

professional and talented photographer. O1er this time" D5GGA07s4usiness has steadily gro$n" including a 1ariety of returning clients

$ho rely on Ms. Duggalfor their product photography for

pamphlets" 4rochures" $e4sites" and other mar(eting collateral.

Ms. Duggalhas operated $ithout a de1oted studio during this time"

tra1eling to client sites and setting up a studio space $here1er

possi4le.

COMPANY OWNERSHIP

Ms. Duggal +ommercial Photography $as esta4lished as a sole

proprietorship in ;;; and is currently 4eing re-esta4lished as a

limited lia4ility partnership to facilitate the participation of in1esting

partners. +urrently" all shares of Ms. Duggal +ommercial

Photography are o$ned 4y M-! D.//a0!


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START'UP SUMMARY

Start-up expenses include the legal fees associated $ith re-

incorporating the 4usiness" permits associated $ith a studio space"and the 4uild-out of the studio space.

Mar(eting includes a promotional campaign to alert customers and

potential customers to the ser1ices and capacity Ms. Duggal

+ommercial Photography is adding. ,ent includes t$o months of

studio rent to co1er the 4uild-out period and t$o additional monthsfor a security deposit.

0ong-term assets include additional photography e2uipment

@cameras" tripods" 4ac(drops" *lashes" lighting that must 4e

purchased.


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START-UP , B5/, M # S

Start-up xpenses0egal ` !8"%%%Stationery etc. ` %"%%%/nsurance ` %"%%%,ent ` C%"%%%Mar(eting ` "%%"%%%Studio 'uild-Out ` !%"%%%

otal Start-up xpenses ` !" 8"%%%

Start-up Assets+ash ,e2uired ` "8%"%%%Other +urrent Assets ` %"%%%0ong-term Assets ` 9"%%"%%%

otal Assets ` ":%"%%%otal ,e2uirements ` 1+%1+++


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SERVICES

Ser1ices to 4e offered include the follo$ing=

Studio commercial photographyOn-site commercial photography

Set dressing ser1ices for photo shoots

Photo editing and digital editing $or(

Deli1ery of prints or digital files of photo shoots

*raming of photos

?e4 portal to access digital files from shoots and manage

editing process $ith clients

,ental of the studio space to su4contractors $hen

time allo$s

/n the future" as additional staff is added" there are plans to offer

graphic design ser1ices for the photos ta(en" and to expand to a

multi-room studio to allo$ for multiple shoots simultaneously.

MARKET ANALYSIS SUMMARY

he mar(et for commercial photography includes all 4usinesses

and non-profits. *or Ms. Duggal +ommercial Photography" the

target mar(et is small and medium-si6ed 4usinesses and non-

profits @those $ith Marriages and parties etc. 4ased $ithin the city

limits of Delhi #+,.

/n the past t$o years" the mar(et for commercial photography in

+ity has contracted due to the recent economic do$nturn. /t is

estimated 4y the /ndian +ham4er of +ommerce that commercial


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photography has shrun( from ` 8.& million to ` .8 million annual

re1enues since t$o years ago. Small and medium-si6ed

4usinesses $hich formerly used large commercial studios can nolonger afford their rates. his has created an opportunity for

smaller photography studios $ith lo$er o1erhead and prices to

ser1e this mar(et and sei6e mar(et share in time for a mar(et

ups$ing.


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MARKET SEGMENTATION

Ve23 Sma00 B.-45e--e-6 hese 4usinesses are generally run 4y

their o$ners. Photography needs tend to 4e for their 4asicmar(eting collateral @signs" menus" pamphlets" 4rochures"

$e4sites" ne$sletters" etc. . hese 4usinesses generally 4egin 4y

ta(ing these photographs in-house" 4ut" o1er time" determine that

this method produces su4-standard results. hey then see(

inexpensi1e freelance photographers $ho can 2uic(ly handle their

needs.

Sma00 B.-45e--e-6 hese 4usinesses ha1e ongoing and regular

needs for photography of their products and ser1ices" such as

2uarterly catalogs. hey appreciate esta4lishing relationships $ith

1endors $ho understand their $ay of $or(ing" allo$ them access

to the creati1e process" and reduce the stress of creating

mar(eting materials. hey prefer to $or( $ith one 1endor for all

photography needs and $ill 4e reluctant to change that 1endor

once it is found.

Me74.m B.-45e--e-6 hese 4usinesses ha1e mar(eting

departments $hich outsource photography to photo studios. hey

ha1e a higher 1olume of photography needs than smaller

4usinesses and pay great attention to the 2uality of the images as

$ell as the price. Eolume discounts may 4e needed to retain

4usinesses in this category.


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MARKET ANALYSIS

Yea2 Yea2 " Yea2 # Yea2 $

Yea2 %

Potential

+ustomers

G289:; CAGR

Eery Small

'usinesses

%< "%%% " %% "! % "99 " : %.%% S:.748 - sta4lished % years ago" this company does not

operate a studio" 4ut uses student photographers to offer lo$er-

priced on-site photography shoots

M-! D.//a0 P;8:8/2a=;e2- - sta4lished 9 years ago" this

company su4contracts all of its photography $or( to freelance

photographers" acting as a 4ro(er 4et$een these freelancers and

clients. his leads to a lo$er le1el of 2uality assurance" and some

client dissatisfaction


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COMPETITION AND BUYING PATTERNS

here are 1ery fe$ 4arriers to entry into the commercial

photography 4usiness. At the lo$-end of the mar(et" freelancephotographers $ith inexpensi1e digital cameras start $or( officially

and unofficially e1ery day. )o$e1er" at the high end of the mar(et"

2uality photographers $or(ing $ith the 4est e2uipment and a

studio space are protected 4y the capital re2uired to purchase

e2uipment and to rent and 4uild out a studio.

+ustomers among small and medium-si6ed 4usinesses see( lo$

prices" 4ut $ill not sacrifice 2uality. he 4est 2uality is o4tained in

the controlled en1ironment of a studio" $ith $ell-trained

photographers and high-2uality e2uipment. +ustomers choose

4et$een photo studios 4ased on their $e4sites and portfolios of

$or(" as $ell as the personal assurances of the salesperson they

$or( $ith at the studio that their needs $ill 4e ta(en care of.

?ord of mouth is extremely important for this 4usiness. ?hile the

product of the $or( 4ecomes 1ery 1isi4le" it is important that

customers feel so strongly a4out the experience of $or(ing $ith

their photo studio that they tal( a4out it to other 4usinesses and

contacts. hese referrals are extremely helpful in generating

4usiness.


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STRATEGY AND IMPLEMENTATION SUMMARY

o 4uild its reputation as a 2uality choice for commercial

photography in the city" D5GGA07s +ommercial Photography $illfocus on small and medium-si6ed 4usinesses. hese include=

Eery Small 'usinesses @under !% employees

Small 'usinesses @!% to !%% employees

Medium 'usinesses @!%% to 8%% employees

o reach these target mar(ets" Ms. Duggal $ill use email

mar(eting" 4usiness net$or(ing" and $e4 mar(eting to find clients

and to ensure that clients find Mr.. D5GGA0. he + O" Priyan(a

D5GGA0" $ill sell to clients" and 4oth he and an additional team of

assistant photographers $ill 4e assigned to client photo shoots in

the D5GGA07s studio and" $hen needed" at client sites.

COMPETITIVE EDGE

Mr.. D5GGA07s +ommercial Photography has a competiti1e edge

from the reputation of Priyan(a D5GGA0 in the 4usiness

community as a high-2uality photographer $ho is easy to $or(

$ith and attenti1e to the needs of clients. Ms. Duggal $ill continueto de1elop this competiti1e edge 4y training additional

photographers $ith his signature style of photography and high

attention to customer ser1ice.


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MARKETING STRATEGY

he mar(eting strategy for Ms. Duggal +ommercial Photography is

4ased on the 4elief that using a fe$ mar(eting tactics extremely$ell is prefera4le to using many mar(eting tactics $ith moderate

success $ith each. *ollo$ing are components of initial mar(eting

campaign=

Ema40 Ma2>e:45/6 mailing a ne$ 4usiness announcement and

then monthly ne$sletters $ith details on ne$ pac(ages" the

de1elopment of the studio" and ne$ hires to past clientsand other targets in the 4usiness community. #e$sletters $ill

include helpful tips on ho$ to use photography and this $ill 4e

used to gain permission from mar(eting departments at

prospecti1e client 4usinesses to 4e sent the ne$sletters. ?ithin

these emailsF calls to action to encourage 4usiness referrals.

B.-45e-- Ne:982>45/6 Priyan(a D5GGA0 $ill promote the

4usiness through the local chapter of ) @)industan imes " the

+ham4er of +ommerce" and the 'usiness O$ner7s Association.

hrough these meetings" Ms. Duggal $ill introduce his

company7s $or( to other 4usiness o$ners" share leads on

4usiness" and recei1e 4oth exposure and 2ualified referrals. o

encourage mem4ers of net$or(ing groups to use D5GGA07s

ser1ices so that they are educated referrers" Ms. Duggal $ill

offer a !8< discount on ser1ices to mem4ers of the net$or(ing

group on their first purchase.


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We? Ma2>e:45/6 Ms. D5GGA0 Photography $ill purchase

search engine ad1ertising $ith Google around commercial

photography (ey$ords for the city mar(et and gear itsad1ertisements to$ards the needs of small and medium-si6ed

4usinesses. *urthermore" Ms. D5GGA0 Photography7s $e4site

$ill 4e optimi6ed for higher search engine ran(ing under these

(ey$ords.

SALES STRATEGYhe company7s sales strategy is to utili6e the experience of

Priyan(a D5GGA0 as salesperson. Ms. Duggal $ill 4e a4le to

assure clients of $hat the company and its photographers can

accomplish as all $ill 4e personally trained 4y him.

o increase the closing rate of prospects" Ms. Duggal $ill meet

clients at their 4usinesses $hene1er possi4le to go 4eyond phone

con1ersations. )e $ill use a portfolio of images and testimonials.

Ms. Duggal $ill use Salesforce.com as a tool to manage the sales

process" and to train additional salespeople $hen the time comes.

he scheduling and fulfillment of ser1ices $ill 4e administered 4y

the office manager" $ho $ill use Salesforce.com and Buic('oo(s

to manage clients and capture information related to orders.

Standard procedures for order fulfillment $ill 4e created 4y Ms.

Duggal and chec(ed on an ongoing 4asis.


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SALES FORECAST

SALES FORECAST Yea2 Yea2

"

Yea2

#

Yea2

$

Yea2

%Sales

Photo Shoots ` !%:"99! ` !8:"C ` 9%%"%%% 9&%"%%% 8%"%%%Photo diting ` 88"9 8 ` :;"&8; ` ;%"%%% ` !%"%%%` 8%"%%%Print. > *rame ` !9"9! ` !;"8! ` 8%"%%% ` &%"%%% ` %%"%%%Studio ,ental ` & ":9C ` 9:"%%% ` 9:"%%% ` %"%%% ` 8%"%%%

otal Sales ` 98:":9: ` 9;!" ! ` &:"%%% ` :%%"%%% &8%"%%% Yea2 Yea2 " Yea2 # Yea2 $ Yea2 %

Direct +ost of SalesPrint. > *rame +ost ` &" ; ` ! "& 9 ` 9&"8%% ` 8!"8%% ` &8"%%%Other +ost of Sales ` 89" ;8 ` 8C"C ; ` & " %% ` ;%"%%% ` !"8%%

Su4total

Direct +ost of Sales

` +1* & ` +1%&" ` + 1*++ ` $"1%++ ` 1%++


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MILESTONES

he promotional mar(eting 4efore the opening of the studio is in a

t$o month period in $hich an initial ?e4 mar(eting and emailmar(eting campaign $ill ta(e place" directed 4y the + O" $ith

some help from the part-time administrati1e assistant" and

mar(eting 1endors @a ?e4 mar(eting specialist . *urthermore" ads

$ill 4e placed to specifically highlight the studio as a rental option

for other uses.

?e4 Mar(eting specialist $ill 4e hired to set-up and maintainGoogle Ad$ords campaign and to optimi6e $e4site for

search engines.

+onstant +ontact $ill 4e used to maintain email mar(eting

$ith announcements a4out the studio opening" ne$ staff"

and ne$ ser1ices.


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MILESTONES

M/0 S O# S

Milestone S. Date . Date 'udget DepartmentSign 0ease on

Studio

;F9%F!% 9 ;F9%F!% 9 ` % Operations

)ire Part- ime

Staff

F F!% 9 F F!% 9 ` % Operations

rain Part- imeStaff

F F!% 9 !F9 F!% 9 ` % Operations

Open Studio *or

'usiness

F F!% F F!% ` % Operations

?e4 Mar(eting

+ampaign

F F!% 9 !F9 F!% 9 ` C"%%% Mar(eting

mail Mar(eting

+ampaign

;F F!% %F F!% ` "%%% Mar(eting

,ental Studio

Mar(eting

F 8F!% 9 !F9 F!% 9 ` "%%% Mar(eting

otals ` +1+++

MANAGEMENT SUMMARY

Priyan(a D5GGA0 $ill act as + O of Ms. Duggal +ommercial

Photography. Ms. Duggal has extensi1e industry" sales" and

operational experience. /mmediate hires $ill include one part-time

assistant photographer and one part-time administrati1e assistant.


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he + O $ill 4e responsi4le for sales and mar(eting"

management of all staff" and fulfillment of client ser1ices.

he first part-time assistant photographer $ill 4e Pa0a> A;.@a " a

recent graduate of the School of Eisual Arts and an accomplished

photographer ne$ in the industry. he assistant photographer $ill

assist on shoots during training and 4egin to ta(e the lead on

photo shoots o1er time. )e $ill mo1e to full-time $ithin one year if

sales projections are met.

he administrati1e assistant $ill 4e responsi4le for 4oo((eeping

@accounts paya4le and recei1a4le " scheduling of shoots and la4or"

and fielding calls for rental of the studio and initial sales in2uiries.

)e or she $ill execute mar(eting campaigns @update $e4site" print

4rochures and portfolios" etc . )e or she $ill offer customer ser1ice

to ans$er 4asic 2uestions 4y phone or email.


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PERSONNEL PLAN

Ms. Duggal +ommercial Photography $ill 4egin its expansion $ith

one part-time assistant photographer and one part-timeadministrati1e assistant" $ith the understanding that 4oth positions

$ill gro$ to full-time shortly. ach year an additional assistant

photographer $ill 4e added.

PERSONNEL

PERSONNEL PLAN 3ear 3ear ! 3ear 9 3ear 3ear 8

+ O ` :%"%%% ` :%"%%% ` :%"%%% ` :%"%%% ` :%"%%% Assistant

Photographer

` 99"&9: ` C"%%% ` ;";!% ` 8 "; & ` 89";;9

Administrati1e

Assistant

` ;"% ; ` !C"9 ` %"%%% ` 8"%%% ` 8%"%%%

Assistant

Photographer !

` % ` 9"; ! ` 8"%%% ` 9%"%%% ` 9 "!%%

Assistant

Photographer 9

` % ` % ` % ` 8"%%% ` 98"%%%

Assistant

Photographer

` % ` % ` % ` ` 8"%%%

otal People 9 9 : &

T8:a0 Pa32800 ` !"&88 ` 8%"!C: ` : ";!% ` !% ";! ` ! 8" ;9


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FINANCIAL PLAN

he launch of the 4usiness $ill 4e financed 4y the founder7s

in1estment and credit and 4y in1estments from limited partners. /nexchange for ` 8"9%"%%% in1estment in the 4usiness at startup"

limited partners $ill recei1e ;< o$nership shares. he initial

funding re2uirements are modest for the 4usiness.

he gro$th of the 4usiness" 4eyond the first year" $ill 4e financed

4y the free cash flo$s generated 4y the 4usiness. his $ill allo$for the expansion of staff to include additional photographers" the

ramping up of mar(eting expenditures" and the resulting increase

in sales. Only one photographer $ill 4e added per year in order to

ma(e sure that there is time for ade2uate training of ne$ staff.

START'UP FUNDING

*unding for the 4usiness is in part from personal loans"

credit cards" and cash in1estment 4y the o$ner" Priyan(a

D5GGA0. he remainder of funding $ill 4e from one to

three limited partners in the form of e2uity in1estment.


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START-UP FUNDING

Start-up xpenses to *und ` ! "8%%Start-up Assets to *und ` :"%%%

otal *unding ,e2uired ` &%"8%% Assets

#on-cash Assets from Start-up ` 9 "%%%+ash ,e2uirements from Start-up ` 8"%%%+ash 'alance on Starting Date ` 8"%%%

otal Assets ` :"%%%0ia4ilities and +apital

0ia4ilities+urrent 'orro$ing ` 8"%%%0ong-term 0ia4ilities ` 8"%%%

Accounts Paya4le @Outstanding 'ills ` !"8%%otal 0ia4ilities ` !"8%%

+apitalO$ner > 0imited Partners ` 8"%%% ` 89"%%%

otal Planned /n1estment ` 8C"%%%0oss at Start-up @Start-up xpenses @ ` ! "8%%

otal +apital ` 99"8%%otal +apital and 0ia4ilities ` :"%%%

T8:a0 F.5745/ ` &%"8%%


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BREAK'EVEN ANALYSIS

he 4rea( e1en for the 4usiness is high

As the salaries of staff are relati1ely fixed.

Monthly 'ills and other xpenses are also to 4e met.

BREAK-EVEN ANALYSIS

Monthly ,e1enue 'rea(-e1en ` !!"!!C

Assumptions=

A1erage Percent Earia4le +ost !%


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PROJECTED PROFIT AND LOSS

Gross margins are expected to remain consistent" as most costs of

the 4usiness are not direct costs of sales. he greatest cost of theser1ice is la4or" $hich is part of salaries and not cost of sales" for

example.

/n year !" profit is expected to drop as capacity is increased to

prepare for gro$th. his $ill rectify in future years as sales come in

line $ith the payroll expenses.

PROJECTED BALANCE SHEET

he 4usiness is projected to sho$ gro$th in retained earnings

@$hich allo$ for di1idends to 4e paid as there are not su4stantial

additional capital expenditures needed after the launch. here $ill

4e healthy gro$th in net $orth o1er the first fi1e years of operation"

as additional de4t is not re2uired to fund the 4usiness.


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PRO FORMA PROFIT AND LOSS

3ear 3ear ! 3ear 9 3ear 3ear 8Sales ` 98:":9

:

` 9;!" ! ` &:"%%

%

` :%%"%%

%

` &8%"%%%

Direct +ost of Sales ` &%";C: ` C%"8:! ` %C";%

%

` !"8%

%

` C&"8%%

otal +ost of Sales ` &%";C: ` C%"8:! ` %C";%

%

` !"8%

%

` C&"8%%

Gross Margin ` !C8":8

%

` 9 "8:! ` 9:&" %

%

` 8&"8%

%

` 8:!"8%%

Gross Margin < C%. %< &;. :< &&. !< &:.!8< &8.%% +apital ` **1"** ` #&1 + ` & 1$&& ` " &1" $ ` " 1%$et ?orth ` #1% " ` *1# % ` $ 1$ $ ` *+1+ % ` "$ 1&*


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LONG'TERM PLAN

he profita4ility of the company $ill increase in a4solute terms $ith

gro$th. )o$e1er" the gross margins and net profit margins $ill notincrease dramatically o1er time as the additional gro$th in

re1enues re2uires additional direct la4or. o maintain the

reputation of the company" this la4or cannot 4e performed 4y less

s(illed" lo$er-$age photographers.

As re1enues gro$ and additional photographers are hired" the+ O $ill focus a greater percentage of time on sales and

prospecting. his $ill allo$ for steady gro$th in re1enues $hile the

4rand of D5GGA07s +ommercial Photography 4ecomes

esta4lished in the mar(et. A larger studio space $ith multiple

rooms can 4e leased after a critical mass of utili6ation has 4een

achie1ed $ith the current space. his $ill allo$ for continued

gro$th.

business plan photography studio

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