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Business Plan Example - DOC

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									Wellington Pet Photography
                              Business Plan
                              February 2008


                              By John Smith


Owner and Business Name:

John Smith

Wellington Pet Photography

Address:

8 Main St, Newtown

Wellington

Phone:

04 494-0975 (Home)

027 4525628 (Mobile)

Email:

petphotography@hotmail.com




Bankers:                               Accountant:

National Bank, Willis St               Frank Casey, Better Accountants Limited

Wellington                             5 Jackson St

                                       Petone

Lawyer:                                Business Advisor:

Jane Doe, Wellington Lawyers Limited   Rhys Cocker
Level 6, St John’s Building            Capital Development Agency Limited
26 The Terrace                         Level 3, Terrace Legal House
Wellington                             104 The Terrace

                                       Wellington
Contents



           1. Executive Summary                             2

           2. Introduction                                  4

           3. Goals and Objectives                          5

           4. Business Details                              6
                  Business Ownership and Legal Structure
                  Company Location and Facilities
                  Products and Services
                  Start-Up Summary

           5. Business Management                           9
                  Skills and Experienc e
                  Staff Requirements
                  Advisors, Networks and Support

           6. Business Environment                          12
                  Target Market
                  Market Size
                  Market Trends
                  Competition
                  Competitive Edge

           7. SWOT Analysis                                 15

           8. Legal Implications/Regulations                17
                  Business Ownership and Legal Structure
                  Cont ractual Process and Documentation
                  Financial Regulations and Insurance
                  Compliance Issues

           9. Marketing Strategy                            20
                  Purpose and Positioning
                  Marketing Plan

           10. Risk Management Plan                         23

           11. Financial Plan                               25
                  Personal Budget
                  Sales Forecast
                  Costing and Pricing
                  Twelve Month Cashflow
                  Statement of Financial Performance

           Appendices & Quotes                              33




                                                                 1
1. Executive Summary


Wellington Pet Phot ography is a small business aimed at bringing a smile to every pet owner's face
when they see their beautiful family member c aptured in a stunning portrait. The business will offer a
wide variety of products, such as: formal studio portraits, location portrait sessions, holiday candi d
photographs, portrait finishes, and framing. Portrait sittings are available in either t he well -equipped
studio, the comfort of the client's home, or in an out door setting.

Wellington P et Photography is currently located in Newtown, Wellington. Initial ly the owner and
founder, John Smith, will be the only staff member, though there are plans to recruit a further full -time
photographic assistant after six months. The business will be established as a home -operated, sole
trader.

With eight years experience in a variety of creative and commercial employment, John has acquired a
range of transferable skills and attributes. These include sales experience t hrough his previous retail
management experience as well as photographic and design management skills gained through his
professional study.

Our target markets are middle- to upper-middle class families, couples and individuals within the
Wellington region who own pets. We chose these groups bec ause they are most likely to have pets
that would be considered a member of the family, and because they are most able to afford high-
quality studio portraits of their pets. In the Wellingt on region t here are 166,974 households according
to the 2006 Census. Approximately 56% of these households earn above the average annual national
income and these will be target market. Within this target market are 93,505 households. If we
assume that 63% of these hous eholds own a pet then the target market of middle to upper income
households with pets is 58,908 households.

The pet is treated as a family member; and the owners spend approximat ely $562 million annually ion
New Zealand on their pets. This increased import ance and love for the family pet has caused existing
pet services to flourish and has creat ed entirely new fields of pet care. Scores of entrepreneurs are
developing businesses catering to pet owners.

Wellington Pet Photography will reach this audience by targeting clients of these existing markets.
We will fill an existing need for t he client by specialising in pet photography. Through advertisements
in the print media, brochures, and establishing working relationships with pet organisations and pet
specialty businesses frequented by our potential client base, we will highlight our quality products and
services.

Wellington Pet Photography is in a unique position of competition. We compete against the standard
portrait studio that may photograph pets, but only as an adjunct to photographing people. Wellington
Pet Photography's competitive edge is its commitment to customer service and satisfaction. We offer
an array of services, flexible scheduling, and have the latest technology to produce beautiful
photographic portraits. At Wellington Pet Photography, pets are our primary business, not a sideline
or hobby. We understand pets and how to get t he right elements together for a successful portrait
session. We are patient, and our number-one goal is quality results.

Photography businesses usually require a significant initial investment in equipment and facilities.
However the owner of Wellington Pet P hotography has been an avid photographer for many years
and possesses professional-level photographic equipment to get the business off to a good start. In
addition, the will be a home-based business, with no lease commitment. The charts and tables
included at the back of the plan demonstrate that these considerations, plus the support of Work and
Income, allow Wellington Pet Photography to function with no debt and limited overheads. This gives
the business a quicker break-even point and inc reas ed profit margins from the start. As Wellington
Pet Photography grows, a debt -free philos ophy will be maint ained.

Thanks to the provision of the Enterpris e Allowanc e the cash flow is expected to be positive from the
first month and the months where t here is negative cashflow is generally preceded by higher income
months due to seas onal fluctuations. It is anticipated t hat a Net profit of $36,465 will be made for the
first 12 months trading and that the business will achieve a cash surplus of $11,479.08 for t he first 12
months. This will provide working capital and funds for expansion of the business in the second year.


                                                                                                        2
2. Introduction



Establishing a pet photography business has been a goal for t he past two years. For the past year
John has worked with an experienced and renowned commercial photographer in order to develop
the reputation and professionalism required to establish this business.

Our mission statement is “Treating your Pet like a member of our family ”

The keys to success at Wellington Pet Photography include:

       Customer Satisfaction: providing a service that consistently meets or exceeds customers’
        expectations.
       Environment: providing an environment conducive to bringing the best out of the pet.
       Convenience: offering clients a wide range of services in a location or environment
        convenient to them.
       Reputation: reputation of the owner and business as providing superior personal service.
       Profe ssionalism: includes everything from meeting deadlines to hiring the best staff.
       Individual Attention: Each client's experience will be tailored to his or her preference.
       Repeat busine ss/Recommendations: giving the kind of service that brings people back and
        encourages them to rec ommend us to friends and colleagues.
       Competitive Pricing: providing a fair and competitive price for the quality and array of
        services offered that provides the business with a fair and reasonable profit.




                                                                                                    3
3. Goals and Objective s

Wellington Pet Phot ography is a small business aimed at bringing a s mile to every pet owner's face
when they see their beautiful family member capt ured in a stunning portrait. We have set goals for the
business and these are as follows.


0-6 Month Goals
       Added image manipulation to services provided.
       Secured a business mentor.
       Cont racted tax/accounting consultant.
       Attended Biz financial training.
       Developed, and maintained, relationships with pet specialty show organisers, breeder
        organisations, pet stores and veterinarians to be preferred supplier and to be recommended
        to their clients.
       Applied to Work and Income for start-up funding.
       Identified a preferred income protection insurance plan (to afford a replacement photographer
        and/or loss of income protection).
       Maintain relationships with wedding and event organisers to supplement any downturn by
        undertaking other types of photography work.


6-12 Month Goals
       To achieve profit of $36, 000.
       Completed work for 150 numbers of clients.
       Created 100 pieces of stock photography and submitted to stock libraries.
       Maintained relationships with pet specialty show organisers, breeder organisations, pet
        stores and veterinarians.


1-2 Year Goals
       To achieve profit of $55, 000.
       Completed work for 300 clients.
       Hold first national pet photo exhibition.
       Targeted 20 major pet shows and pet organisations in other parts of New Zealand.



3-5 Year Goals

       To achieve profit of $100,000.
       Completed work for 500 clients.
       To be recognised as New Zealand’s top pet photography business.
       Franc hised the pet phot ography business nationwide.
       Franc hised the pet phot ography business into Australia.




                                                                                                      4
4. Busine ss Detail s


Busine ss Ownership and Legal Structure
Wellington Pet Phot ography is designed to be a home -based business and will initially operate as a
sole trader business. At this time it is the most app ropriate structure as the business is managed and
run by one person, John Smith. John is entitled to all the profits that the business makes while also
liable for all tax es and debts the business incurs. At this initial stage the business will face no long
term liabilities or debts such as a lease or hire purchase costs.

I anticipate registering the business as a Limit ed company in the second year, subject to professional
advic e. Such advant ages would include:

       Limited liability on the business operations.
       The perception of professionalism by clients.
       Taking advantage of lower company tax rates as profits increase above $38,000 per annum .
       Providing a structure that would allow other photographers to participate in my company
        ownership in the future.
       Ability to franchise the concept.


Company Locations and Facilities
Wellington Pet Photography is located Newtown, Wellington. It is a home -based business, with an
area of t he lower floor dedicated to client reception, office, and a small studio. Clients can elect to
have the portrait sitting done in the studio, on location in the client 's home, or in an outdoor setting.

The benefits of having the business located at home include:

       Overheads for the business, in the form of the rental of space, power supply and landline
        telephone, can be minimised.
       A percent age proportion of the building cost and utilities can be claimed for tax purposes.
       The household’s insuranc e policy can be amended to incorporate the business’s IT and
        photographic equipment.
       The location on the main road of Newtown means that clients can easily access the premises
        by either public or private transportation.

Our office is equipped with a fax machine, email and a comput er. The company will maintain a high
degree of professionalism by using only the highest-quality photographic equipment and film to
produce its portraits.


Products and Services
Wellington Pet Photography offers a variety of products and services to meet our client's needs. We
offer specific information on each of our products to the prospective client. This information is
designed to help the client select a setting for the port rait session. The pictures we provide give the
client a feel for the variety of poses that can be used, and helps them decide if they wish to
incorporate other family members in the portrait. The discussion of the different settings helps the
client select a studio session, home session, or outdoor location for t he portrait. We also provide
instructions for each s etting. For example, for formal portrait sessions, we provide det ailed
instructions to the owner for aiding their pet to feel at home in unfamiliar surroundings, and items
such as a favorite toy or blanket to bring along to the s ession. The following sections are examples of
the servic es we provide and the resulting product.

Formal Studio Portrait
The studio is a controlled environment, free from distraction, where t he pet can be comfortably posed
and lighted to enhanc e the beauty of the final image. A variety of props and backgrounds will be us ed
to stage a setting t hat will highlight t he pet 's features and coat color. These sessions must not be
rushed, so the pet can become comfortable in the studio environment and be cert ain that the studio

                                                                                                        5
lights do not frighten or excite the pet. There is a standard charge for the portrait session which we
refer to as the sitting fee. The owner is provided immediate digital images to be certain we have
captured a pleasing likeness. These digital images are not the final proofs, but they do provide
photographer and client with the assurance the session is accomplishing the desired outcome.

A total of 24 proof-quality photographs will be provided for the client within five days of the photo
session. The client will then have ten days to consider the images bef ore making a final selection.

Location Portrait Session
The pet may be more comfortable in the home or a familiar outdoor location. The staff of Wellington
Pet Photography will travel to the location prior to the portrait session to select an area that is best
suited for the session and is most acceptable to the owner. Prior to the session, Wellingt on P et
Photography staff will stage the lighting and any other props needed for the photo session. If the
location selected for the photo session is in a public park, the owner, not Wellington Pet Photography,
is legally responsible for the behaviour of the pet. The fee for a photo session in t he home is more
than the studio because the equipment must be transported, staged, and then broken down. The
client will be provided 36 photographic -quality images within five working days of the photo session.
The client will then have ten working days to consider the images before making a final selection.

Holiday Candid Photographs
Wellington Pet Photography, through arrangements with local pet stores and other pet specialty
stores, will provide pet owners with the opportunity to have 12 snapshot -quality photographs taken of
their pet with Santa Claus or the Easter Bunny. Wellington Pet Photography will also be available at
these locations for other holiday-themed occasions, such as Valentine's Day, Mother's Day or
Halloween. The fee for these candid photos is standard and includes twelve photos that will be mailed
to the client within five days. The Digital images from these photo sessions will remain the property of
Wellington Pet Phot ography should the client wish to have reprints made.

Additional Services
Wellington Pet Photography is aware that a pet portrait is an investment as well as a c herished
memory. We offer a variety of portrait finishes from which to choose. Thes e finishes will be shown to
the client upon pick up of the proofs, and t he client will be given a brochure which illustrates these
finishes to compliment a variety of pet images. These finishes are us ed on the beautiful portraits that
are displayed in our studio gallery. Wellington Pet Photography also offers custom and ready made
framing for all portraits. We have a beautiful selection of tabletop frames to enhance the client 's
selection, and a variety of framing materials displayed in the studio for custom frame construction. At
Wellington Pet Phot ography we are committed to customer service and satisfaction.

Start-up Summary
The founder of Wellington Pet Photography is a graduate of the New Zealand School of Phot ography
and has the full range of photographic equipment required for the business. Where assistance will be
required is in purchasing the photographic software required for image manipulation, a quality photo
printer and start-up capital to meet initial marketing costs.

As the owner has no capital available to meet these start-up costs, funding is being sought from Work
and Income’s Enterprise Allowance Scheme. Once these assets and start-up costs are met the
business will be able to begin operations.

However, the owner will also be contributing a range of photographic and business assets that are
required for operation.




                                                                                                      6
               Assets Contributed by The Business Owner                              Value
               High-end Digital Camera                                           $1,500.00
               Vehicle                                                           $3,000.00
               Tripod and Other Photographic Equipment                            $700.00
               Office Desk                                                        $450.00
                                                                                 $5,650.00

               Start-Up Costs                                                        Value
               Image Manipulation Software                                       $1,000.00
               Photo Printer                                                      $600.00
               Website Development                                                $800.00
               Business Cards                                                     $200.00
               Brochures and Fliers                                               $500.00
               Ad vertising                                                      $1,200.00
               Yellow Pages Ad                                                    $700.00
                                                                                 $5,000.00

               Funding Sought from Work and Income                               $5,000.00




A range of suppliers were approac hed for the majority of these start -up costs in order to ensure both
quality and a competitive price. Quotes, from the chosen suppliers, for all the start-up costs
purchased through the E nterprise Allowance Grant are included in the appendices at the back of the
business plan.

Additional equipment will be purchased within the first year. This will be funded through positive cash
flow.


               Additional Assets To Be Purchased               Period                Value
               Lighting Equipment                          Within 3 months       $1,000.00
               PDA                                         Within 6 months        $800.00
                                                                     st
               New Telescopic Lens                          Within 1 year        $1,200.00
                                                                                 $3,000.00




                                                                                                          7
5. Busine ss Management


Management Summary
The management of Wellington Pet Photography will be very simple in the first few years with the
founder also managing the business. In addition to performing the artistic functions of the business,
the photographer, John Smith, is also the propriet or and initially must be involved in all aspects of the
business, such as marketing, payroll, management of both accounts receivable and accounts
payable, and other miscellaneous business details.

Additional personnel can be added as the business accounts grow, in order to alleviate these
responsibilities from the photographer, and this is expected to happen after six months when the
business expects to employ a full-time office and photographer's assistant.

Wellington Pet Photography's growth will be deliberate rather t han fast paced. It is a reasonable
assumption t hat the demands of the office, and also assisting the photographer, might become too
much for one individual. Depending on the strengt hs of the individual that fills the first full-time
position, a second staff member may be hired part-time within the first two years, and both will be
trained in the other's duties.


Skills and Experience
With eight years experience in a variety of creative and commercial employment, John has acquired a
range of transferable skills and attributes. These include sales experience t hrough his previous retail
management as well as phot ographic and design management skills gained t hrough his professional
study.

John’s creative career path started after graduating with a professional diploma (photography major)
and since then he has also completed post graduate papers in graphic design and communications.
John has spent the past year as a photographic assistant for a well known New Zealand
photographer assisting him on both national and international assignments.

Prior to completing his diploma John had managed a retail art shop for three years prior to which he
had four years retail assistant experience in a range of retail outlets.

John Smith has built a strong net work with other established photographers and belongs to the New
Zealand Institute of Professional Photographers who openly provide professional and legal advice
and benefits. In areas such as financial planning, accounting and legal advice John is curren tly
building relationships wit h such advisors to develop these areas of the business (see A dvisors,
Networks and Support).

A CV is attached in the appendices.


Staff Requirements
Initially no permanent staff will be employed, wit h a photographic assistant contracted in on a project
by project basis as required.

After six months a receptionist/photographer assistant position will be advertised and appointed. The
duties and job description for this person would include:

       General reception duties, including phones, mail, and greeting customers.
       Setting appointments and managing appointment calendar.
       Tracking stock and supplies.
       Billing, handling both accounts receivable and accounts payable.
       Assist photographer in portrait sessions.
       Assist with marketing strategies and plans.



                                                                                                        8
This position has been budget ed for at $16 per hour and the successful applicant will be expected to
work 40 hours per week, including some night and weekend work.

It is understood that anyone employed by the business must have a written employment agreement,
whet her it be an individual agreement or a collective agreement. It is recognised t hat the Department
of Labour website has an employment agreement builder to provide guidance to employers and
employees on content for the creation of individual employment agreements. The builder provides
examples of clauses drawn from a range of existing employment agreements, indicates which
clauses are legally required in all agreements, and assembles the clauses into one draft agreement
for saving and printing out.

Further information on employment relations can als o be accessed on this site including processes
for managing pay roll, kiwisaver and holiday pay.


Advi sors, Networks and Support
It is recognised that the owner has not previously run a business and that he will need the s upport of
a range of experienced business people, particularly in developing the financial management and
processes required for the business.

The following advisors will be utilised to assist the business owner operate the business in the most
efficient manner.


               Bankers:
               National Bank, Willis St
               Wellington

               Providing assistance in minimising bank fees and identifying banking products that
               can help manage and maximise cash flow.

               Accountant:
               Frank Casey
               Better Accountants Limited
               5 Jackson St
               Petone

               Assisting in establishing financial processes for the business and will complete end
               of year accounts.

               Lawyer:
               Jane Doe
               Wellington Lawy ers Limited
               Level 6, St John’s Building
               26 The Terrace
               Wellington

               Reviewing client copyright agreements and will be utilised when a limited liability
               company is established.

               Busine ss Advi sor:
               Rhys Cocker
               Capit al Development Agency Limited
               Level 3, Terrace Legal House
               104 The Terrace
               Wellington

               Providing business advice through the first six months of the business operations.




                                                                                                      9
Busine ss Mentor:
Jack Ryan
Ex. Small Business Owner
Wellington

Experienced small business owner who is now retired who has run retail and tourism
businesses. Will be used as a ment or and advisor to the business in the long-term.

Profe ssional Association:
New Zealand Institute of Professional Phot ographers
Christchurch

Represents over 300 commercial photographers in New Zealand. Provides
resources, information, marketing and net working opportunities for members.




                                                                                  10
6. Busine ss Environment


Busine ss Environment Summary
Many of today's white collar professionals, bet ween the ages of 26 and 60, have at least one pet in
the household. The pet is treated as a family member; and the owners spend approximat ely $562
million annually on their pets. Wellington Pet Photography will reach this audience by targeting clients
of thes e existing markets. We will fill an existing need for the client by specialising in pet photography.
Through advertisements in the print media, brochures, and establishing working relationships with pet
organisations and pet specialty businesses frequented by our potential client base, we will highlight
our quality products and services.


Target Market
Our target markets are middle- to upper-middle class families, couples and individuals within the
Wellington region who own pets. We chose these groups bec ause they are most likely to have pets
that would be considered a member of the family, and because they are most able to afford high-
quality studio portraits of their pets.

In today's current environment, pets occupy a prominent place in a family, or as the central focus of
attention in a single household. Sales trends for pet-related merchandise have shown substantial
annual increases since 1996 (Hous ehold Expenditure Survey, 2004). P et industry sales closely
parallel the general trends, such as gourmet foods, high-fashion accessories, and medical and dental
needs (Simpson, 1998). Wellington P et Photography fills a need for capturing a moment in time, or
preserving a special relationship and providing loved ones (the human kind) wit h a high quality
portrait of them and their best friend. Considering the rise in income and population, coupled with the
increased spending for pet -related items and services, the demand for pet photography s ervices can
only increase.


Market Size
While no figures exist for overall pet ownership in New Zealand, it is known t hat 47% of New Zealand
households own a cat and so it is reasonable to assume that New Zealand’s rate of pet ownership
would be similar to America where according to the 2005-2006 National Pet Owners Survey 63% of
Hous eholds own a pet.

In the Wellington region there are 166,974 households according to the 2006 Census. Approximately
56% of t hese households earn above the average annual national income and these will be target
market. Within this target market are 93,505 households. If we assume that 63% of these households
own a pet then the target market of middle to upper income households with pets is 58,908
households.


Market Trends
Pets have always been an important part of the New Zealand family. However, as the New Zealand
culture has changed in the last two decades, an even more prominent role for the pet has emerged.
In today's mobile society, people oft en lose touch with their community, friends, and family, so they
draw closer to their pets. As more people put off having children until later in life, pets are increasingly
lapping up the luxuries that had once been reserved for human housemates. Making pets into family
members is typical of an economy driven by middle -aged professionals with two-income households
and fewer, if any, children. These "baby boomers" are now hitting the peak years of 35 to 65. In some
cases, the pet alleviat es the Empty Nest Syndrome for older married couples. Their animals are not
just pets but companions, and many owners consider their pets their children. Society is getting better
educated and more accepting of pets across the board, and there is existing research that proves
pets are a benefit to one's health.

The importance of the family pet is evident, and it calculates into big business. People want to show
how much they care. Thus, it only makes sense that this important member of the family should be
included in the family portrait, or even have a s eparate photo shoot of their own. Indeed, with
increasing frequency, we now see pictures of pets on employee's desks in addition to, or instead of,
human family members. A photography studio that openly welcomes animals appears to be a viable
business unto itself.
                                                                                                         11
As New Zealanders have enjoyed increased standards of living, they expect to pass this on to their
pets. Where consumers used t o pick up pet food on their weekly excursion to the grocery store, they
now buy gourmet premium foods, which exclude animal by -products and replace them with prime
cuts of meats and other high-level ingredients, some of which are sold only through veterinary offices.
Pet owners spent $562 million on their pets according to Statistics New Zealand’s 2004 Household
Expenditure Survey.

While no New Zealand figures can be sourced it is known that the number of U.S. households with
pets has held steady over the past ten years. However, the amount of money Americans spend on
their pets has exploded wit h owners s pending double on pet related items what they did 10 years
ago. Thus, while there does not seem to be a great increase in people who own pets, the ones that
do have them are valuing them more.

The market trend, as the human element permeat es the pet industry, leads to pets not being buried in
shoeboxes in the back yard as much as they once were. The trend, since 1996, has been to give an
animal a proper funeral. The market segment of pet owners is becoming a more s olid profit maker,
with the trend towards spending more money on a pet wit h every passing year.

This increas ed importance and love for the family pet has caused existing pet services to flourish and
has creat ed entirely new fields of pet care. Scores of entrepreneurs are developing businesses
catering to pet owners.


Competition
Wellington P et Photography is in a unique position of competition. While the portrait phot ography
business is composed of dozens of small, individually -owned studios, pet portrait photography is a
new, but very successful, niche market which is experiencing rapid growt h. We compete against the
standard port rait studio that may photograph pets, but only as an adjunct to photographing people.
We compete against one other exclusive pet photographer in the Wellingt on region, and a host of
amateur photographers. The benefits and drawbacks of each of our competitors as compared with
the servic es we offer are hardly a match in quality and price.

We are experts in working with pets to make them comfortable and to bring out the inner quality and
personality of the pet. We also work with the other family members to include them in the portrait
session, if that is the desire of the client. Although we are a new organis ation, we are not novices to
photography or photographing pets. Our scheduling and location flexibility are specifically geared to
be client friendly.

The fee schedules for Wellington Pet Photography portraits are competitively priced. No ot her area
photographer offers the flexibility and array of services provided to t he client at Wellington P et
Photography. Our commitment to customer service and satisfaction is unequaled.

Our major competitors are:

Pet Shoot Limited
Based from home in Lower Hutt.

Strengths:
       Exclusive Pet Photographer.
       Have been in the market longer.
       Have established client base and reputation.

Weaknesses:
       Array of services is limited.
       Inflexible with schedules
       Limited studio capability.
       Quality of final portrait.

                                                                                                     12
Standard Portrait Studios
Based throughout the region, operating both from homes and commercial premises.

Strengths:
     Established studio locations and support staff.
       Established client base, often with repeat clients.
       Reputation as reliable and stable business.

Weaknesses:
       Often very expensive.
       Little or no experience in pet photography. Pets are a sideline and not the major focus of the
        business.
       Can be inflexible with scheduling and out-of-studio work.


Local Amateur Phot ographers
Operate from home.

Strengths:
       Pricing.

Weaknesses:
       Quality of final product.
       Lack of professional photographic equipment and skills.


Competitive Edge
Wellington P et Photography's competitive edge is its commitment to customer service and
satisfaction. We offer an array of services, flexible sc heduling, and have t he latest technology to
produce beautiful photographic portraits. At Wellington Pet Photography, pets are our primary
business, not a sideline or hobby. We understand pets and how to get the right elements together for
a successful port rait session. We are patient, and our number one goal is quality results.




                                                                                                   13
7. SWOT Analysi s



Strengths

       Formally skilled in photography (Professional Diploma).
       Have an established professional network (other photographers and related creative
        professionals).
       Acquired photographic best practice skills and knowledge (t hrough working as a phot ographic
        assistant).
       Relationship building – appreciat es the value of building and sustaining professional
        relationships.
       Use local suppliers who have a reputation for excellence and timeliness; thus, we add back to
        the economy of the area.
       Have strong skills in graphic design and image manipulation.
       Care about our community. We participate with the local SP CA by creating a virtual adoption
        page on their website by photographing t he animals available for adoption. These
        photographs have helped to increas e the adoption rates of the local programs.


Weaknesse s

       Limited financial management skills and experience.
       Limited business and industry management experience.
       Small existing client base.
       No start-up capital available.
       Loss of income due to illness and not being able to work.


Opportunities

       Can add image manipulation as an additional service and charge.
       Target major pet shows and pet organisations in other parts of New Zealand.
       Can create stock photography and submit to stock libraries.
       Hold first national pet photo exhibition.
       Franc hise the pet photography business nationwide.
       Franc hise pet photography business into Australia.


Threats

       Established portrait photographers in the Wellington region.
       Sudden negative change in the economy, since this is a luxury item.
       Increased competition in the regional market.



This analysis has been used to create a set of strategic goals for my business, taking into account
strategies to mitigate against weaknesses and threats, along with goals to exploit my opportunities.




                                                                                                  14
Forward Plans

    Opportunities                                                                              Completion Date

    Add image manipulation to services provided.                                               3-6 months

    Create stock photography and submit to stock libraries.                                    6-12 months

    Hold first national pet photo exhibition.                                                  1-2 years

    Target major pet shows and pet organisations in other parts of New Zealand.                1-2 years

    Franchise the pet photography business nationwide.                                         3-5 years

    Franchise pet photography business into Australia.                                         3-5 years



Contingency/Task Plans

    Weaknesses                          Contingenc y/Task                                                  Date Completed

    Limited financial management          Contract tax/accounting consultant.                             Completed
    skills and experience.
                                          Undertake free financial training through the Biz
                                           Programme.                                                      3-6 months

    Limited business and industry         Utilise resources provided through membership of New            Completed
    management experience.                 Zealand Institute of Professional Photographers.
                                          Identify and approach a business mentor.

                                                                                                           Completed

    Small existing client base.           Develop relationships with pet specialty show                   1-3 months
                                           organisers, breeder organisations, pet stores and
                                           veterinarians to be preferred supplier and to be
                                           recommended to their clients.

    No start-up capital available.        Apply to Work and Income for start-up funding.                  Within 1 month

    Loss of income due to illness         Identify a preferred income protection insurance plan           Within 1 month
    and not being able to work.            (to afford a replacement photographer and/or loss of
                                           income protection).

    Threats                             Contingenc y/Task                                                  Date Completed

    Established portrait                  Continuously observe competitors (what they do and              Ongoing
    photographers in the                   who they do it for) and pitch the business with a point of
    Wellington region.                     difference.

    Sudden negative change in the         Maintain relationships with pet specialty show                  Ongoing
    economy, since this is a luxury        organisers, breeder organisations, pet stores and
    item.                                  veterinarians to be preferred supplier.
                                          Maintain relationships with wedding and event
                                           organisers to supplement any downturn by undertaking            Ongoing
                                           other types of photography work.

    Increased competition in the          Maintain relationships with pet specialty show                  Ongoing
    regional market.                       organisers, breeder organisations, pet stores and
                                           veterinarians to limit access to market for competitors.




                                                                                                                     15
8. Legal Implications/ Regulations


The primary legal considerations are business legal structure, copyright (e.g. licensing), privacy (e. g.
property and model approvals) and regulatory (e. g. tax).


Contractual Process and Documentation
Before each job starts it is important to clearly doc ument the expectations (S ervices required) with
each client. This will effectively be t he c ontractual arrangement with t he client for each project. To
ensure all legal obligations are covered the following documentation has been sourced t hrough other
professionals and associations.

       Project brief.
       Estimate/Invoice template.
       Licenses and Order Confirmation Form.
       Terms and Conditions of Engagement.
       Talent and Property Release Form.

Project Brief
Briefs provide a job description for each project; they are created before any work starts outlining the
details of the images required by the client.

Copy right – License Agreement
Copy right is a form of prot ection for original works that photographers enjoy. It is afford ed
automatically to any work, immediately on its creation in fix ed form, and the copyright on the work
normally becomes the property of the creator. Copyright is part and parcel of the creation process.

Wellington P et Photography retains the copyright of all images photographed (in order to control who
can reproduce them) as outlined in the Terms and Conditions of E ngagement. In addition this
information will be printed on the back of each photograph.

To determine client reproduction rights for each pr oject a License and Order Confirmation Form will
be prepared for the client to read and sign before t he commencement of any work. This Li cense
outlines the agreed media, time period and territories where the client can use these images where
the client needs t o us e the photographs for publication. This is expected to be the case for breeders
and pet specialty show organisers.

Estimate (Cost)
Written estimates are developed in accordance t o the brief and licensing requirements. GST and any
additional costs are itemized (e.g. travel).

Terms and Conditions
The Terms and Conditions of Engagement are the standard provided for use by the New Zealand
Institute of Professional Photographers.

Release Forms
Under the Privacy Act 1993 approval needs to be sought to photograph personal property and
people. The New Zealand Institute has professionally prepared Model Releas e and Property Release
forms available for photographers to use.


Financial Regulations and Insurance
John Smith is going t o be GS T registered and a tax agent has been consulted to assist Wellington
Pet Photography set up processes in relation to GS T and tax. Spreads heets have been set up to
manage sales and expenses on a monthly basis , and t he business owner will complete the two
monthly GS T ret urns. The tax agent will complete annual business accounts.

A current business account has been set up through National Bank. This account has linked accounts
for tax and GS T.
                                                                                                      16
The owner's current insurance is through State, who offers a full line of insurance c overage, and
photographic and IT equipment will be insured for its full value by adding a rider to the existing
owner's policy.

Income protection insurance will also be commenced in order to ensure that any unexpected illness
can be managed.


Compliance Issue s
The owner has rec eived an affirmative answer from Wellington City Council that the business can
operate from a residential neighborhood, since noise, traffic, and pollution are not factors to be
considered in this type of business.

Compliance to the following Acts needs to be adhered to at all times:

       Privacy Act 1993
       Fair Trading Act 1986
       Cons umers Guarant ees Act 1993
       Unsolicited Goods Act 1975
       Unsolicited Electronic Messages Act 2007
       Healt h and Safety in Employment Act 2002

Wellington Pet Photography recognises it has a responsibility for the health and safety of ourselves,
our colleagues and our customers. We have a policy of identifying hazards in the work environment
and, wherever possible, of taking practical action to ensure that these hazards do not cause
accidents and injury so as to protect employees and other form of any harm that could result from
work activities. This policy recognises that the handling of animals presents health and s afety issues
for staff and customers.

In order to manage the risk Wellington P et Photography will implement a t hree step health and safety
policy action plan. Thes e three steps are

       The development of an effective system for managing hazards in the place of work .
       Ensuring that employees have all the pr actical information they need to carry out their work
        safely.
       The recording, reporting and investigating of all accidents or incidents in the place of work .

We aim to implement this action to t he best of their ability within the resources available. P rogress in
implementing the three step plan will be regularly reviewed.




                                                                                                          17
9. Marketing Strategy


Marketing Summary
Wellington Pet Photography will use marketing databases to accurately target our market. Working
closely with local pet show organisations, specialty pet stores, and other pet service businesses, we
will place well -designed advertising material in these locations to illustrate our capabilities. Our
portrait studio will maint ain flexible hours and scheduling t o accommodate and expand our client
base. Because we are dedicat ed to customer service and satisfaction, we will use our client base to
continually maintain our reputation for excellence.


Purpose and Positioning
The purpose of Wellington Pet Photography’s marketing program is to instill top of mind awareness of
their services within their target market. This will be accomplished by positioning Wellington Pet
Photography as understanding that a pet is an important family member and that this special
relationship should be captured in a way that pleases the client. Unlike port rait studios that
photograph pets only as a sideline, pets are Wellington Pet P hotography’s only business. For the pet
owner who desires a photographic portrait, Wellington Pet Photography's custom port rait package will
capture the beauty and pers onality of the pet and document a lasting and cherished piece of art.


Marketing Strategy
Our research suggests that the best way to reach Wellington P et Photography's target audience for
portrait photography is through t he pet-related services they use. Wellington Pet Photography will
establish working relationships with businesses such as grooming salons, specialty pet stores, and
veterinary clinics. We hope to place brochures and framed pet portraits in these locations.

Another strong marketing opportunity is available through the local area pet shows and local breeder
associations. Wellington P et Photography will establish a working arrangement with the New Zealand
Pet Show net work to provide photographic services to document winning pets, their owner/breeder,
and show judges. In addition to the exposure with breeders, Wellingt on Pet Photography will have an
exhibit space at these pet shows with framed examples of our work, brochures, and business cards.
This will increas e our exposure to the attendees of the pet shows, most of whom are pet owners.

Finally, Wellington Pet Photography will establish relationships with pet specialty stores to offer
candid photographs of pets and owners during holiday occasions. Although this gene rates revenue, it
will be us ed as a marketing tool to increase exposure to people bet ween 26 and 60 years old. This
marketing strategy is aimed at increasing our studio and on -location portrait business.

The Marketing tools Wellington Pet Photography plans to use are:

       Business cards.
       Brochures.
       Fliers.
       Advertising in pet and animal magazines. These advertisements target breeders and pet
        enthusiasts, and highlight Wellington Pet Photography's quality portrait packages and
        reasonable prices.
       Web Site.
       Personal Selling.
       Direct marketing approaches to pet specialty show organisers, breeder organisations, pet
        stores and veterinarians to limit access to market for competitors. From the yellow pages and
        industry websites 83 pot ential referral organisations have been identified.
       Exhibitions.
       Advertising in local newspapers (Kapi-Mana News, Cook Straight News, Contact).
       Electronic newsletters and communications to client data base.


                                                                                                   18
Marketing Plan



  Date        Promotion                                                              Budget

  April             Complete logo and brand identity.                               $0

                    Print business cards.                                           $200

                    Design and print flier.                                         $500

                    Visit galleries .                                               $0

                    Register website address.                                       $50

                    Develop client database.                                        $0
                                                                                     $0
                    Develop referral database from yellow pages and industry
                     web sites.
                    Contract website designer.                                      $750
                    Secure Yellow Pages Ad.                                         $700
                    Ad vertise in Pet Today Magazine.                               $600
                    Ad vertise in local community newspaper for Eastern and         $600
                     Southern Suburbs of Wellington.

  Ma y              Continue to develop Client Data Base                            $0

                    Send direct mail letter introducing services to the referral    $50
                     database.
                    Personally visit 20 organisations from the referral database.   $0

  June              Ad vertise in local newspapers for the Hutt Valley              $600
                    Send electronic newsletter to client data base.                 $0

                    Approach 3 pet stores for taking in store photos of Mums        $0
                     and Pets for Mothers Days.
                    Personally visit 20 organisations from the referral database.   $0

  July              Attend two pet shows.                                           $0

                    Ad vertise in local newspapers for Porirua.                     $600

                    Personally visit 20 organisations from the referral database.   $0

  August            Attend two pet shows.                                           $0

                    Sponsor award at local pet show.                                $300

                    Personally visit 20 organisations from the referral database.   $0

  September         Ad vertise in local Wellington City newspapers.                 $600

                    Send electronic newsletter to client data base.                 $0

                    Personally visit 20 organisations from the referral database.   $0




                                                                                              19
October       Approach 3 pet stores for taking in store photos of Pets for    $0
               Halloween.
              Hold exhibition in local library of pet photos, and invite      $400
               contributions from the public.
              Send out exhibition invitations via email to all referral       $0
               organisations and client database.
              Personally visit 20 organisations from the referral database.   $0

November      Attend two pet shows.                                           $0

              Ad vertise Christmas specials and gift vouchers in local        $600
               newspaper.
              Deliver fliers to 3,000 homes in Eastern Suburbs.               $1,000

              Personally visit 20 organisations from the referral database.   $0

              Send electronic newsletter to client data base.                 $0

December      Attend two pet shows.                                           $0
              Ad vertise Christmas specials and gift vouchers in local        $600
               newspaper.
              Personally visit 20 organisations from the referral database.   $0

              Approach 6 pet stores for taking in store photos of Pets for    $0
               Christmas.

January       Attend two pet shows.                                           $0

              Personally visit 20 organisations from the referral database.   $0

February      Ad vertise in local newspapers for the Hutt Valley              $600

              Approach 3 pet stores for taking in store photos of Pets for    $0
               Valentines Day.
              Send out email to client database informing them of             $0
               Valentines Day special offers.
              Personally visit 20 organisations from the referral database.   $0

March         Send electronic newsletter to client data base.                 $0

              Personally visit 20 organisations from the referral database.   $0

              Approach 3 pet stores for taking in store photos of Pets with   $0
               the Easter Bunny.




                                                                                        20
10. Ri sk Management Plan

My risk analysis plan aims to

          Identify the risks that may impact on my business .
          Provide the basis for a risk management plan.
          Ensure each risk is analyzed in terms of probability and impact .
          Ensure that there is a containment plan for each identified risk.
          Identify an appropriate contingently plan for high risks .

The following measures are being taken to address weaknesses and minimizes threats and are taken
from the SWOT analysis section of this plan.

        Weaknesses                                Contingenc y/Task                                Date Completed

        Limited financial management skills and    Contract tax/accounting consultant.            Completed
        experience.
                                                   Undertake free financial training through
                                                    the Biz Programme.                             3-6 months

        Limited business and industry              Utilise resources provided through             Completed
        management experience.                      membership of New Zealand Institute of
                                                    Professional Photographers.
                                                   Identify and approach a business mentor.
                                                                                                   Completed

        Small existing client base.                Develop relationships with pet specialty       1-3 months
                                                    show organisers, breeder organisations,
                                                    pet stores and veterinarians to be preferred
                                                    supplier and to be recommended to their
                                                    clients.

        No start-up capital available.             Apply to Work and Income for start-up          Within 1 month
                                                    funding.

        Loss of income due to illness and not      Identify a preferred income protection         Within 1 month
        being able to work.                         insurance plan (to afford a replacement
                                                    photographer and/or loss of income
                                                    protection).

        Threats                                   Contingenc y/Task                                Date Completed

        Established portrait photographers in      Continuously observe competitors (what         Ongoing
        the Wellington region.                      they do and who they do it for) and pitch
                                                    the business with a point of difference.

        Sudden negative change in the              Maintain relationships with pet specialty      Ongoing
        economy, since this is a luxury item.       show organisers, breeder organisations,
                                                    pet stores and veterinarians to be preferred
                                                    supplier.
                                                   Maintain relationships with wedding and        Ongoing
                                                    event organisers to supplement any
                                                    downturn by undertaking other types of
                                                    photography work.

        Increased competition in the regional      Maintain relationships with pet specialty      Ongoing
        market.                                     show organisers, breeder organisations,
                                                    pet stores and veterinarians to limit access
                                                    to market for competitors.




                                                                                                                21
I have identified the following risk treatments for the identified risk:

       A voidance – not performing an activity.
       Reduction – reducing the severity of the loss.
       Risk retention – self insurance.
       Risk transfer – insuranc e, contracting out the risk.

All risks with a score greater than 10 will form part of the regular external review of my b usiness with
my business advisors.


     Operational Risk               Probability    Severity     Score      Action to Prevent/Manage Risk
                                    1-5            1-5          PxS

     Damage/Theft/Fire to           1              5            5          Equipment to be insured - on site and in
     equipment                                                             transit.

     I.T. Failure                   1              4            4          Backups will be perform ed to an external
                                                                           hard drive, supported by DVD backups of
                                                                           image files on a monthly basis. The hard
                                                                           drive will be held off site.
                                                                           Accountant to hold copies of all financials .

     Illness/Injury                 1              5            5          An agreement has been established with
                                                                           another professional photographer who
                                                                           will step in to my business should the
                                                                           photographer be unable to work for any
                                                                           length of time.

     Financial Risk                 Probability    Severity     Score      Action to Prevent/Manage Risk
                                    1-5            1-5          PxS

     Credit risk                    2              3            6          Sales will generally be paid in advance.
                                                                           Where this is not the case and an issue
                                                                           arises then the business is a member of
                                                                           NZIPP which has provides strong legal
                                                                           representation.

     Business performance           3              4            12         Regular financial statements will be
                                                                           prepared for discussion with the business
                                                                           accountant and business advisors.
                                                                           Sales and marketing strategies will be
                                                                           discussed and agreed monthly with
                                                                           business advisors.

     Sales fall below expectation   3              5            15         Supplementary income will be sought in
                                                                           the following areas:
                                                                               Graphic design contract work.
                                                                               Event photography.
                                                                               Family Portrait photography.

     Legal Risks                    Probability    Severity     Score      Action to Prevent/Manage Risk
                                    1-5            1-5          PxS

     Copyright Issues               3              2            6          Licensing will be provided to all clients to
                                                                           protect both the client and the business.
                                                                           The NZIPP membership provides legal
                                                                           advice and documentation for copyright
                                                                           issues.



                                                                                                               22
11. Financial Plan



Financial Summary
Photography businesses usually require a significant initial investment in equipment and facilities.
However the owner of Wellington Pet P hotography has been a n avid photographer for many years
and possesses professional-level photographic equipment to get the business off to a good start. In
addition, the will be a home-based business, with no lease commitment. The charts and tables that
follow demonstrat e that these considerations, plus the support of Work and Income, allow Wellington
Pet Photography to function with no debt and limited overheads. This gives the business a quicker
break-even point and increas ed profit margins from the start. As Wellington Pet P hotography grows, a
debt-free philosophy will be maintained.

Although Wellington Pet P hotography begins with little extra cash, our growt h over t he first year
allows t he business to gain financial ground quickly. Thanks to the provision of the E nterprise
Allowance the cash flow is expected to be positive from the first month and the months where there is
negative cashflow is generally preceded by higher income months due to seasonal fluctuations.

It is anticipated that a Net profit of $36,465 will be mad e for the first 12 months trading and that the
business will achieve a cash surplus of $11,479.08 for the first 12 months. This will provide working
capital and funds for expansion of the business in the second year.


Personal Budget
The business will need to cover the owner’s living expenses and drawings set in the cashflow are
initially calculated to meet this need.



                          MONTHL Y BUDGET                                     MONTHL Y AMOUNT

                          Loan, Credit Card and HP Payments                                $100.00

                          Home Loan Repayments/Rent                                      $1,600.00

                          Rates                                                              $0.00

                          Electricity and Gas                                              $120.00

                          Telephone, Internet and Mobile                                    $40.00

                          Groceries and Food                                               $400.00

                          Transport/Vehicle Expenses                                        $60.00

                          Insurance                                                         $50.00

                          Child Care/Household Help/School Fees                            $200.00

                          Clothing Expenses                                                $100.00

                          Entertainment                                                    $160.00

                          Other                                                              $0.00

                                                                     Total               $2,830.00

                          OTHER INCOME                                        MONTHL Y AMOUNT

                          Accommodation Supplement                                         $715.00



                                                                                                      23
                           Working For Families                                                    $0.00

                           Other Benefit                                                           $0.00

                           Part-time Work                                                        $400.00

                           Other Regular Income                                                    $0.00

                                                                            Total           $1,115.00

                           MONTHLY INCOME REQUIRED                                          $1,715.00



Sales Foreca st
Wellington Pet Phot ography wishes to maintain a steady rat e of sales growth; however, we
understand that sales will vary in different months. As noted in the following chart and table, rapid
increases prior to the holiday seasons will boost sales and then allow that growth to level off at a
steady rate.

Based on the market research, analysis of competitors and the business owner’s previous
photographic industry experience these sales forecasts are realistic and reflect industry sales trends.
Being a new business, we realise that the home and studio port rait sessions will be the slowest to
grow because they require initial marketing efforts and advertising. The Holiday S easonal P romotion
and the Pet Show Loc ation segments target an existing market already built by the pet sp ecialty
sponsors and merchants. Because the client base is already established, this will be the first segment
of the business to show significant growth.



                               Apr    May      Jun    Jul   Aug    Sep         Oct   Nov   Dec     Jan     Feb   Mar

Studio Portrait Sessions        10     12      12     15     15        15       25   40    40       15     18    18

Home Portrait Sessions           2         5      5   8      8         8        10   15    15       10     12    15

Holiday Location Shoots          0         0   20     0      0         0        30   10    60       10      0    45

Pet Show Location Shoots         8     10      10     10     10        15       15   25    25       10     20    40

Custom Framing Jobs              2         4      4   4      5         5        5    15    15       5       7    10



Costing and Pricing
Digital imaging technology has brought new and exciting tools to photography. Today the client can
see the images recorded in the studio moments after they are taken. High-resolution printers make a
print of the image readily available - no processing of film is required. This also significantly reduces
the cost of each service.

Pricing for the servic es provided are limited by the pricing of both direct and indirect competitors. In
undertaking mark et research the costs for services were also tested with pot ential customers. We
have established prices for the first year of operation and expect that as the reputation of the
business grows we will be able to increase our charges. The charges in the first year are generally
10-15% lower than our direct competitor.

Key information from the Pricing and Costing exercise is that:

        The break even hourly charge out rate for labour and overheads is $61.95 excluding GS T.
        That the mark-up on all services is 25% for the first year.
        That the sale price for Studio Portraits is $135 + GST.


                                                                                                            24
   That the sale price for Home Portraits is $215 + GS T.
   That the sale price for Holiday Location Shoots is $40 + GS T.
   That the sale price for Pet Show Location Shoots is $45 + GST.
   That the average sale price for Custom Framing is $140 + GS T.


    COSTING MODEL
                                                                                            Annual
                                                                                            Hours
    Weekly hours paid for by the Business                                        40           2,080
    Less Time Not Spent at Work                                                             Hours
    20 Days Annual Leave                                                                        160
    5 Days Sick Leave                                                                           40
    11 Days Statutory Holidays                                                                  88
                                                                                               288
    Hours Spent at Work                                                                                         1,792


    Percentage of Time Spent Creating Product/Providing Service                60%
    Percentage of Time Spent Doing Other Tasks i.e. Admin/Sales                40%

    Hours Available to Produce Product/Provide Service                                                          1,075

    Net Monthly Drawings Required from the Business                        $1,715.00


    Gross Weekly Income Required (Assumes 25% Tax)                                           $527.69


    Annual Income Required                                                              $27,440.00

    Hourly Rate for Productive Hours                                                                           $25.52
    ACC (Worked from ACC Website Calculator)                                $480.22
    ACC Cost Per Productive Hour                                                                                $0.45

    Hourly Rate to Cover Labour Cost                                                                           $25.97


    Total Annual Fixed Overheads                                           38691.61


    Overheads Per Productive Hour                                                                              $35.99

    Break-even Hourly Charge on Overheads & Labour                                                             $61.95




    PRICING MODEL
    Studio Portraits (Sessions)
                                              Time Per Session (Hours)          1.5
                                   Total Charge on Overheads & Labour                           $92.93
                                          Cost of Materials Per Session         $15             $15.00
                                                              Total Cost                        $107.93
                                                    Mark-up Percentage          25%
                                                           Mark-up Cost                         $26.98
                                                        Total Sale Price                        $134.91
                                         Total Sale Price (Rounded to)          GST Excl.       $135.00


                                                                                                          25
Home Portrait (Sessions)
                                          Time Per Session (Hours)    2.5
                               Total Charge on Overheads & Labour                 $154.88
                                      Cost of Materials Per Session   $15         $15.00
                                                         Total Cost               $169.88
                                               Mark-up Percentage     25%
                                                      Mark-up Cost                $42.47
                                                   Total Sale Price               $212.35
                                    Total Sale Price (Rounded to)     GST Excl.   $215.00


Holiday Locations (Sessions)
                                          Time Per Session (Hours)    0.4
                               Total Charge on Overheads & Labour                 $24.78
                                      Cost of Materials Per Session   $6           $6.00
                                                         Total Cost               $30.78
                                               Mark-up Percentage     25%
                                                     Mark-up Cost                  $7.70
                                                   Total Sale Price               $38.48
                                    Total Sale Price (Rounded to)     GST Excl.   $40.00

Pet Show Location (Sessions)
                                          Time Per Session (Hours)    0.45
                               Total Charge on Overheads & Labour                 $27.88
                                      Cost of Materials Per Session   $6           $6.00
                                                         Total Cost               $33.88
                                               Mark-up Percentage     25%
                                                     Mark-up Cost                  $8.47
                                                   Total Sale Price               $42.35
                                    Total Sale Price (Rounded to)     GST Excl.   $45.00

Custom Framing (Jobs)
                                      Average Time Per Job (Hours)     1
                               Total Charge on Overheads & Labour                 $61.95
                                  Average Cost of Materials Per Job   $50         $50.00
                                                         Total Cost               $111.95
                                              Mark-up Percentage      25%
                                                     Mark-up Cost                 $27.99
                                                  Total Sale Price                $139.94
                                 Average Sale Price (Rounded to)      GST Excl.   $140.00




                                                                                            26
Financial Statements and Ca shflow

The projected statement of financial performance for the 12 months ended March 2009 and a 12
month cashflow is attached.

The following notes pertain to the cashflow.

1.      Sales have been forecasted based on market research and have been prepared on a realistic
        basis, based on our industry experience.

2.      The E nterprise Grant is shown as a separate line of income. Expendit ure for this grant is s et
        out in section 4.5 Start-Up Summary and repeated below.


               Start-Up Costs                                                       Value
               Image Manipulation Software                                      $1,000.00
               Photo Printer                                                     $600.00
               Website Development                                               $800.00
               Business Cards                                                    $200.00
               Brochures and Fliers                                              $500.00
               Ad vertising                                                     $1,200.00
               Yellow Pages Ad                                                   $700.00
                                                                                $5,000.00


3.      Lower sales in January 2009 are anticipat ed and reflect an expected seasonal trend.
        However this month is supported by firm sales in October, November and December 2008
        and sales build significantly in Marc h 2009.

4.      A provision for Insuranc e of $750 has been made. This has been priced with St ate Insurance
        and $10 per month will go towards an increase in the home contents insurance which will
        cover the business goods. Income protection insurance has also been costed at $70 per
        month based on expected earnings and this will be started after three months.

5.      A provision for Accident Compensation premiums based on Cover Plus at $426. 88 for the
        owner and $283.57 for the photographic assistant has been allowed for.

6.      Drawings have been set at a modest level to cover owners living expens es based on the
        personal budget. These are set at $1,715 per month in the first year.

7.      GST will be paid on a cash basis every 2 months .

8.      It is anticipat ed that a Net profit of $36,465 will be made for the first 12 months trading.
        Taxation has been calculated on this profit as per the table below. $592.56 will be transferred
        every month int o a separate tax account.

             Taxation Allowance                                     Tax Rate
             Annual Taxable Income                   $36,465.00
             Income Under $38,000                    $36,465.00       19.50%      $7,110.68
             Income $38,001 to $60,000                    $0.00       33.00%          $0.00
             Income $60,001 and over                        $0.00     39.00%          $0.00
             Total Tax                                                            $7,110.68


9.      An amount of $2,286.25 for depreciation has been allowed for, based on capital purchases
        as well as a high-end digit al camera, vehicle, tripod, photographic equipment and an office
        desk introduced to the business. The depreciation figures will be finalised by my accountant
        and will take into account issues such as business use on my vehicle, which ca n only be
        completed once I have run a vehicle log book.


                                                                                                     27
                                                 Life of Asset   Months Owned Prior                    Depn
             Description               Value        in Years       to End of Year        %DV          Claimed
 High-End Digital Camera                 1,500        3                  12             33.33           500.00
 Vehicle                                 3,000        5                  12             20.00           600.00
 Tripod/Other Photographic Equipment       700        3                  12             33.33           233.33
 Office Desk                               450        8                  12             12.50            56.25
 Image Manipulation Software             1,000        3                  12             33.33           333.33
 Photo Printer                             600        3                  12             33.33           200.00
 Lighting Equipment                      1,000        5                  9              20.00           150.00
 PDA                                       800        3                  6              33.33           133.33
 New Telescopic Lens                     1,200        5                  4              20.00            80.00
                                       10,250                                                          2286.25



10.     The business is projecting a cash surplus of $1 1,479.08 for the first 12 months. This will
        provide working capital and funds for expansion of the business in the second year.




                                                                                                28
Sales Forecast Assumptions
                                           Apr-08       May-08       Jun-08       Jul-08       Aug-08       Sep-08       Oct-08       Nov-08     Dec-08    Jan-09       Feb-09        Mar-09
Studio Portraits (Sessions)                     10           12           12           15           15           15           25           40         40        15           18            18
    Average Price Per Unit (Excl. GST)     $135.00      $135.00      $135.00      $135.00      $135.00      $135.00      $135.00       $135.00   $135.00   $135.00      $135.00       $135.00
  Cost of Materials Per Unit (Excl. GST)    $15.00       $15.00       $15.00       $15.00       $15.00       $15.00       $15.00        $15.00    $15.00    $15.00       $15.00        $15.00
Home Portrait (Sessions)                            2            5            5            8            8            8        10           15         15        10           12            15
    Average Price Per Unit (Excl. GST)     $215.00      $215.00      $215.00      $215.00      $215.00      $215.00      $215.00       $215.00   $215.00   $215.00      $215.00       $215.00
  Cost of Materials Per Unit (Excl. GST)    $15.00       $15.00       $15.00       $15.00       $15.00       $15.00       $15.00        $15.00    $15.00    $15.00       $15.00        $15.00
Holiday Location (Sessions)                         0            0        20               0            0            0        30           10         60        10               0         45
    Average Price Per Unit (Excl. GST)      $40.00       $40.00       $40.00       $40.00       $40.00       $40.00       $40.00        $40.00    $40.00    $40.00       $40.00        $40.00
  Cost of Materials Per Unit (Excl. GST)     $6.00        $6.00        $6.00        $6.00        $6.00        $6.00        $6.00         $6.00     $6.00     $6.00        $6.00         $6.00
Pet Show Location (Sessions)                        8        10           10           10           10           15           15           25         25        10           20            40
    Average Price Per Unit (Excl. GST)      $45.00       $45.00       $45.00       $45.00       $45.00       $45.00       $45.00        $45.00    $45.00    $45.00       $45.00        $45.00
  Cost of Materials Per Unit (Excl. GST)     $6.00        $6.00        $6.00        $6.00        $6.00        $6.00        $6.00         $6.00     $6.00     $6.00        $6.00         $6.00
Custom Fram ing (Jobs)                              2            4            4            4            5            5            5        15         15            5            7         10
    Average Price Per Unit (Excl. GST)     $140.00      $140.00      $140.00      $140.00      $140.00      $140.00      $140.00       $140.00   $140.00   $140.00      $140.00       $140.00
  Cost of Materials Per Unit (Excl. GST)    $50.00       $50.00       $50.00       $50.00       $50.00       $50.00       $50.00        $50.00    $50.00    $50.00       $50.00        $50.00




                                                                                                                                                                                 29
Twelve Month Cashflow
                             Apr-08    May-08    Jun-08    Jul-08     Aug-08    Sep-08    Oct-08    Nov-08     Dec-08     Jan-09      Feb-09     Mar-09      Total
Income
Sales - Studio Portraits     1518.75   1822.50   1822.50   2278.13    2278.13   2278.13   3796.88    6075.00    6075.00    2278.13    2733.75     2733.75    35690.63
Sales - Home Portraits        483.75   1209.38   1209.38   1935.00    1935.00   1935.00   2418.75    3628.13    3628.13    2418.75    2902.50     3628.13    27331.88
Sales - Holiday Locations       0.00      0.00    900.00      0.00       0.00      0.00   1350.00     450.00    2700.00     450.00       0.00     2025.00     7875.00
Sales - Pet Show Locations    405.00    506.25    506.25    506.25     506.25    759.38    759.38    1265.63    1265.63     506.25    1012.50     2025.00    10023.75
Sales - Custom Framing        315.00    630.00    630.00    630.00     787.50    787.50    787.50    2362.50    2362.50     787.50    1102.50     1575.00    12757.50
Enterprise Allowance         1000.00   1000.00   1000.00   1000.00    1000.00   1000.00      0.00       0.00       0.00       0.00       0.00        0.00     6000.00
Enterprise Grant             5000.00      0.00      0.00      0.00       0.00      0.00      0.00       0.00       0.00       0.00       0.00        0.00     5000.00
Ow ners Cash                  500.00      0.00      0.00      0.00       0.00      0.00      0.00       0.00       0.00       0.00       0.00        0.00        500.00
Total Income                 9222.50   5168.13   6068.13   6349.38    6506.88   6760.00   9112.50   13781.25   16031.25    6440.63    7751.25    11986.88   105178.75


Outgoings
Materials                     369.00    579.38    714.38    680.63     736.88    770.63   1175.63    2008.13    2345.63     838.13    1035.00     1693.13    12946.50
ACC provision                  40.02     40.02     40.02     40.02      40.02     40.02     87.28      87.28      87.28      87.28      87.28       87.28        763.80
Advertising/Marketing        3400.00     50.00    600.00    600.00     300.00    600.00    400.00    1600.00     600.00       0.00     600.00        0.00     8750.00
Rent                          520.00    520.00    520.00    520.00     520.00    520.00    520.00     520.00     520.00     520.00     520.00      520.00     6240.00
Repairs and Maint.             30.00     30.00     30.00     30.00      30.00     30.00     30.00      30.00      30.00      30.00      30.00       30.00        360.00
Pow er                         75.00     75.00     75.00     75.00      75.00     75.00     75.00      75.00      75.00      75.00      75.00       75.00        900.00
Contractors                    30.00     45.00     75.00     75.00      75.00     75.00      0.00       0.00       0.00       0.00       0.00        0.00        375.00
Vehicle                       150.00    150.00    150.00    150.00     150.00    150.00    150.00     150.00     150.00     150.00     150.00      150.00     1800.00
Telephone                     150.00    150.00    150.00    150.00     150.00    150.00    150.00     150.00     150.00     150.00     150.00      150.00     1800.00
Internet                       50.00     50.00     50.00     50.00      50.00     50.00     50.00      50.00      50.00      50.00      50.00       50.00        600.00
Stationery/Printing           100.00    100.00    100.00    100.00     100.00    100.00    100.00     100.00     100.00     100.00     100.00      100.00     1200.00
Insurance                      10.00     10.00     10.00     80.00      80.00     80.00     80.00      80.00      80.00      80.00      80.00       80.00        750.00
Professional Fees             100.00    100.00      0.00      0.00       0.00      0.00      0.00       0.00       0.00       0.00       0.00      300.00        500.00
General Expenses               50.00     50.00     50.00     50.00      50.00     50.00     50.00      50.00      50.00      50.00      50.00       50.00        600.00
Wages                           0.00      0.00      0.00      0.00       0.00      0.00   2773.33    2773.33    2773.33    2773.33    2773.33     2773.33    16639.98
Capital Expenditure          1600.00      0.00      0.00   1000.00       0.00      0.00    800.00       0.00    1200.00       0.00       0.00        0.00     4600.00
Bank Fees                      20.00     20.00     20.00     20.00      20.00     20.00     20.00      20.00      20.00      20.00      20.00       20.00        240.00
Draw ings                    1715.00   1715.00   1715.00   1715.00    1715.00   1715.00   1715.00    1715.00    1715.00    1715.00    1715.00     1715.00    20580.00
Tax account provision         592.56    592.56    592.56    592.56     592.56    592.56    592.56     592.56     592.56     592.56     592.56      592.56     7110.68
GST                             0.00    585.25      0.00    694.72       0.00    913.26      0.00    1591.72       0.00    1655.95       0.00     1502.83     6943.72
Total Outgoings              9001.58   4862.20   4891.95   6622.92    4684.45   5931.46   8768.79   11593.01   10538.79    8887.24    8028.17     9889.12    93699.67


CASH FLOW                     220.92    305.93   1176.17   (273.54)   1822.42    828.54    343.71    2188.24    5492.46   (2446.62)   (276.92)    2097.76    11479.08
Balance                       220.92    526.85   1703.03   1429.48    3251.91   4080.44   4424.15    6612.40   12104.86    9658.24    9381.32    11479.08


                                                                                                                                                            30
Projected Statement of Financial Performance
for the 12 months ended March 2009

Sales                                                     88603.33
less cost of sales                                        12946.50
Gross profit                                              75656.83

Less Expenses
ACC provision                                    678.93
Ad vertising/Marketing                          7777.78
Rent                                            5546.67
Repairs and Maint.                               320.00
Power                                            800.00
Contractors                                      333.33
Vehicle                                         1600.00
Telephone                                       1600.00
Internet                                         533.33
Stationery/Printing                             1066.67
Insurance                                        666.67
Professional Fees                                444.44
General Expenses                                 533.33
Wages                                          14791.09
Bank Fees                                        213.33
Depreciation                                    2286.25
Total Expenses                                            39191.83



Profit/Loss                                               36465.00




                                                                     31
APPENDICES
 & QUOTES




             32
                             JOHN SMITH - Curriculum Vitae

8 Main St                                                 Phone: 04 494-0975 (Home)
Newtown                                                   Mobile: 027 4525628 (Mobile)

Wellington                                                Email: johnsmith@hotmail.com


OBJECTIV E
I am a hard working, ambitious and customer orientated professional who thrive on success. I want to use my
creative talents to create a strong photography business that is critically recognized.


QUALIFICATIONS/ EDUCATION
       Post-graduate Graphic Design Papers, Massey University (Currently Studying)
       Photography Diploma, School of Photography, Massey Wellington, 2006.
       Retail Management Diploma, New Zealand Retailers Association, 2004.
       Wellington College – NCEA, 2001


EMPLOYMENT HISTORY
Photographic Assistant, Rob Famous Photography Limited (2006 -2007)
       Completed 18 national and international assignments with business owner.
       Assisted with photographic shoot for Rugby World Cup.
       Developed knowledge of industry best practice, networks with experienced phot ographers and

Manager, Art Retail Limited (2002-2004)
       Managed art shop with annual sales of $220,000.
       Developed knowledge of business and staff management.

Retail Assistant, Hannahs Shoes (2001 -2002)
       Full-time retail assistant. Graduated to being in charge of Men’s Shoes for store.
       Developed customer service and stock management skills.

Previous jobs were also in retail from 1999 -2001 while at school and aft er leaving school.


SKILLS/ACCOMPLISHMENTS
       26 Photos displayed at City Gallery exhibition.
       Winner of Wellington Photographic Student Award 2005.
       Completed three student photographic exhibitions.
       Member of Wellington Pet Show Association.
       Strong sales and customer service skills.
       Wide range of small business management kno wledge
       Wide range of creative skills in photography and graphic design.




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