Free Photography Studio Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $125,000 for the development of a photography studio while showcasing the expected financials and operations over the next three years. The Photography Studio, Inc. (“the Company”) is a New York based corporation that will provide professional photography and film development services customers in its targeted market. The Company was founded in 2008 by John Doe.
1.1 Products and Services
The primary revenue source for the Company will be photography services rendered by Mr. Doe and his staff of photographers. The Company will provide both in studio photography (portraits) and onsite photography for events such as weddings, corporate events, Bar/Bat Mitzvahs, sweet sixteen parties, and other major gatherings. The secondary stream of income will be derived from the sale of developed prints and framing services, which will be provided within the Photography Studio. This is a very important secondary revenue stream for the business. The third section of the business plan will further describe the services offered by the Photography Studio.
1.2 The Financing
Mr. Doe is seeking to raise $125,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Photography Studio’s mission is to become the recognized local leader in its targeted market for photography services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the photography industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and event planners within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Photography Studio, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Photography Studio requires $125,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Photography Studio, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Photography Studio. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Mr. Doe and his staff will provide professional photography services for individuals and businesses throughout the target market. For each photography job completed by the Company, revenue is recognized in two ways. First the business generates the bulk of its fees from the on-site or in-studio services provided by the Company’s photographers. Second, the business generates sales from the proofing and photographic development offered to each client. Additionally, the business sells framing and other miscellaneous album products to customers complimentary to the services offered by the Company.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the photography industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, Photography Studios tend to operate with some degree of economic immunity as people/corporations will continue to host events (described earlier) despite deleterious economic conditions. As such, as long as the Photography Studio can maintain a strong reputation within its market, the business should not have issues with top line income generation.
4.2 Industry Analysis
Aggregately, photographic services generate more than $20 billion dollars per year of sales among 18,000 businesses within the United States. This industry has undergone several changes over the last ten years with the advent of electronic photography that now rivals the quality of traditional film. Within the commercial segment of the industry, approximately 10% of aggregate industry revenues are generated from photography services for magazines, catalogs, and other commerce needs. The remainder of the revenue comes from portraits and event photography. The industry employs almost 80,000 people and provides approximately $3 billion dollars a year of payrolls. The growth of the industry is expected to continue to mirror that of the general economy. The photography industry, while having undergone several technological changes, is a mature industry. Technological changes, such as the development of high quality electronic photography, have created benefits for both photography studios and customers in that proofing is now a streamlined process, and cost of film development has been significant reduced.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Photography Studio intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the business.
5.1 Marketing Objectives
• Establish relationships with event and wedding planners throughout the target market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
The Photography Studio will use a number of marketing strategies to promote sales of its professional photography services. Below is an overview of the marketing strategies that Mr. Doe will use from the onset of operations. The Photography Studio intends to use an online based marketing campaign to develop its sales. Management will hire a web development firm to develop a beautiful flash based interactive website where customers can see the portfolio of Mr. Doe and his staff of photographers. This website will also allow current clients to see the proofs from completed photography services. The business will also maintain a moderate level of print advertising in selected local area newspapers and circulars, which will display the services of the Company along with relevant contact information. These print advertisements will also direct people to the Photography Studio website that showcases the Company’s photographic portfolio. The Company will also begin to market directly to advertising agencies and marketing firms. This will allow the business to complete additional high-margin and high-revenue commercial shoots. Finally, word of mouth advertising is another method that the business will to generate sales. Mr. Doe intends to develop relationships with wedding planners, event planners, and corporate event hosts in order to generate additional sales. Management expects that the business will receive a significant amount of referral business after the fifth year of operation.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Photography Studio will have an annual revenue growth rate of 13% per year.
• The Owner will acquire $125,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are moderately sensitive to changes in the general economy. Professional photography, but all economic standards, is a luxury good, and in the event of a severe economic decline, the business may experience a decrease in its top line revenue. However, the gross margins earned by the business are extremely high, and sales would need to fall by more than 40% before the business is unable to meet its financial obligations.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis