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JOHN DEL ANEY, DECEMBER 2009

FRIENDS & FAMILY FOTOS INC. (Working title)

Having been in the photography business for a number of years, I have been able toclosely observe the business models that have succeeded (and failed) in the Egg HarborTwp area. It has struck me that there are a number of studio portrait locations thatconcentrate on formal, posed family photography. Then there are the kids only malloperations (which also provide Christmas themes) and also locations that offer passportand ID photography as a side business.

My desire would be to have a one-stop location for all portrait type photographicneeds that would not rely too heavily on one sector of the market. And although I wouldcertainly accommodate the more tradition types of posed shots with backgrounds andholiday themes, I intend to also offer more relaxed situations for friends, families and

individuals to feel more at ease with their surroundings.As a stimulus to income, I will have a small number of high- profit photographic

accessories such as popular batteries and memory cards at the sales check out.

LOCATIONThe Shore Mall would be my desired location as I believe that larger locations in this

area have prohibitive rents and already offer some (though not identical) competing typesof business that I intend to carry-on. Its location near the shore, beside the Garden StateParkway and in the fast-growing EHT and Galloway Township areas provide a steadystream of customers, additionally attracted by the anchor Boscovs store.

EMPLOYEESThe plan I envisage includes myself, two full time and three part-time employees

working regular mall hours. I maintain contact with a number of former colleagues whohave expressed a keen interest in joining me in this endeavor, one of whom will be apartner.

EQUIPMENT The technical side of the business will require an initial purchase of two SLR typecameras along with tripods, lighting, backdrops and numerous accessories. A bulkpurchase from B&H Photo will cover our needs. Images will be processed and printed on astand-alone digital unit (probably from Fujifilm) along with a maintenance and suppliescontract. Hard copy folders and wallets (with our logo) will be purchased locally.

The business end of the daily store management and operation (such as cash

registers and supplies) will be dealt with on a case-by-case basis using the experience andcontacts we have gained over numerous years in the retail trade.

START-UP MONEY My initial estimate of start-up money (itemized below) will be provided from threesources. I and my business partner will each provide $10,000; we hope to secure $80,000from the State Small Business Agency, while we hope to secure $20,000 from Bank ofAmerica. This comes to a total of $120,000. The following is a breakdown of start-up costs.

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ITEMS MONTHLY YEARLY

Rent 12,000 48,000Property Insurance 150 1800

Liability Insurance 100 1200

Corporate Tax 40 480

Federal Taxes 80 960

State Taxes 30 360

Local Taxes 10 120

Mercantile License 6.25 75

FUTA & SUTA 40 480

Sales Taxes 1680 20160

EIN Number 31.25 75

Lawyer 250 3000

Accountant 333.3 4000

Advertising- Business Cards & Flyers 41.6 500

Web Site Domain Name 10 120

OSHA Materials 10 120

Water 90 1080

Electricity 130 1560

Telephone 120 1440

Heat 150 1800

Security Gate 170 2040Alarm System 60 720

Payroll

Loan Repayment 600 7200

Subscription & Dues 20 240

Fuji Frontier Lease 250 3000

Camera Equipment (Appendix 1) 300 3600

Camera Accessories (Appendix 2) 75 900

Lighting Accessories (Appendix3) 50 600

Studio Accessories (Appendix 4) 50 600

Office Expenses (Appendix 5 ) 25 300

Stationery (Appendix 6) 10 120

Domestic cleaning supplies (Appendix 7) 10 120

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