Photography Business Plan - Research Paper Example

Photography Business Plan Professor: School: Date: 1.0 Executive Summary Photography with a Difference is a model and local fashion photography business in the Brisbane & Sunshine Coast Region. It specializes in an array of professional photographic services to clients such as wedding events. Photography with a Difference is now planning to venture into the local fashion photography business. This specialization will provide this business with a unique niche in the Australian market as the photographs will be taken by a trained professional who has earned a good reputation as a professional photographer. What sets Photography with a Difference apart is its capacity to present a successful illustration of a photograph, that is, a photograph with content for the purpose of communication. This is the key aspect that sets the work of this business apart from other photographers, as well as what will ensure its success. Photography with a Difference has a god market potential. With over 6,000 photography businesses in Australia which have an annual revenue of about $1 billion, a modest approximated market share for this business in the Brisbane & Sunshine Coast Region would be $200,000/year. This estimate in market share can be attained with a rational and manageable endeavor put into the business. Considering the goals and objectives that have been set in this business, the prospects for growth are great. Photography with a Difference has the capacity to meet the standards that are required by the modern-day clients. The entrance of Photography with a difference will mark a revolution in the manner in which professional photography is conveyed to customers.  1.1 Mission Statement Photography with a difference is committed to being a model and local fashion photography business in the Brisbane & Sunshine Coast Region by preserving client’s memories with high quality photographic products at affordable prices in a timely manner. Photography with a Difference also plans to thrive on repeat business and referrals from satisfied clients through the development of positive relationships with them (clients). My long term aspiration for Photography with a difference is to become the premier photography business in Brisbane & Sunshine Coast Region.  Serving clients of diverse backgrounds and assisting my clients in preserving their memories and special events. 1.2 Objectives Photography with a Difference is in this business for the purpose of enjoying professional photography. The following are the objectives of this business. To generate an adequate net profit margin by the fourth year of operation. To come up with systems of production for every product class that is simple to reproduce with new customers to maintain it straightforward and fun. To develop a customer relationship system that will enable us to be on top of our entire customer's planned needs. 1.3 Keys to Success Target marketing for the local fashion photography business. Development of positive relations with our customers which will retain them and also attract others. Efficient management leadership. Accessible photography services in a website that is appealing to surf. Exceptional customer relations that will enhance repeat business. Establishment of effective promotional strategies. 1.4 Unique Selling Proposition (USP) The unique selling points of Photography with a Difference include the following: Possession of a good stock of props as well as wardrobe for different sessions. Have a good relationship with restricted locations for shooting photographs. Offer hair and makeup for each session, which is also included in the price. Provide excellent packaging. Provision of deliveries on products 1.5 SWOT Analysis a) Strengths Photography with a Difference has the following strengths: Trained professional photographers, makeup artist, as well as hair stylist. This is the crucial skill that is needed to survive in this photography business. My personal studio: This provides the business with great prospects for expansion. Reputation as a model/fashion photographer: I have won trophies in several model/fashion events something which has earned Photography with a Difference a good brand name in the Brisbane & Sunshine Coast Region. Quick turnaround. b) Weaknesses Photography with differences faces the following weaknesses: I am not quite conversant with Photoshop, which is an essential software for the success in this business. I have enrolled in a class to polish my expertise in using this software. Lack of accounting skills for the proper management of this business, and am not good n giving my clients directions to my office. I have enrolled for an Accounting class to learn a bit about it. c) Opportunities Promotion my business to modelling agencies. This will help in making me aware whenever there are fashion events. For example, promotion of Photography with a Difference to these agencies will ensure that this company is always invited for photo shoots and therefore increasing its chances of growth and survival in the industry. Promotion of my business Facebook and other social platforms. This will help in raising awareness about my business. For instance, marketing the services offered by Photography with a Difference may increase the client base of this business. Promote of Photography with a Difference through its website www.photographybylyle.net d) Threats Threat of new technology such as the canon 1d w (wildlife). Photography with a Difference will need to update itself with this new and many more technologies so as to remain relevant in this photo industry. Threat of legal suits. Lawsuits may arise during the course of conducting business and include areas such as breach of contracts by Photography with a Difference. Lawsuits are expensive to handle. 2.0 Business Description Photography with a Difference has been in the business of industrial photography as well as freelance portrait photography in the Brisbane & Sunshine Coast Region for five years. This business has been relying on personal client relationships, which is the important for repeat business and it also plans to venture into the local fashion photography business on that premise. This business also plans to launch its online presence later this year through its website address, www.photographybylyle.net that is presently under development. 2.1 Business Ownership Photography with a difference is a sole proprietorship business and I am the owner. I am currently receiving formal training in Photography at the CATC design school. 2.2 Start-up Summary The comprehensive start-up requirements are presented as follows: Start-up Expenses Rent $1,000 Insurance $600 Filing Fees $100 Utilities and Deposits $ 800 Paper $ 400 Website Development $2,000 Software $1,000 Personnel cost $1,500 Total Start-up Expenses $7,400 Start-up Assets Cash Required $5,000 Other Current Assets $4,500 Long-term Assets $20,000 Total Assets $29,500 Total Start-up Requirements $36,900 2.3 Business Location and Facilities Photography with a Difference has plans which are underway to open an office in a leased 700 square foot in the Brisbane & Sunshine Coast Region.  This space will be leased for a period of four years starting with $1,000 per month while adjustments to the cost of living will be made annually. This office will function as an administration center as well as a store for photography equipments and products. Clients will enter the office through a public area which has a counter, illustrations of our photographs, as well as couches where they can sit while waiting to be served. An office in addition to the working area will be utilized for pulling together the final product. 3.1 The Marketing Plan 1. Customer Analysis The customers of Photography with a Difference are mainly the editorial markets in Australia, clothing designers and advertising agencies, who capture the biggest market for fashion photography. They generally work from an office and are mostly 25 to 45 years old, with at least half of them being females. This class of customers may approve a budget of between $3,000 and $100,000 in a month for the purchase of photographs. Advertising agencies are almost certainly to be professionals and to have the means as well as the savor for professional photographs. There are about 30 such advertising agencies in the metropolitan area. Researching what the photograph buyer actually wants and needs includes comprehending what appeals to them. Photography with a Difference will target aspiring models because they form a diverse population that can provide a large source for professional photographs to be tapped from. Photography with a Difference will utilize a "high-tech, high-touch" technique to get to and retain customers for their continuing photograph needs. This business will make it reasonably priced as well as effortless for clients to broadcast their photographs electronically. 2. Competitive Analysis A competitive environment exists between photographers who specialize in luxury magazine-quality photographs, moderate photographs, as well as instant photograph studios. The products that are produced by other big photograph agencies are nearly as good as those produced by Photography with a Difference, and in some cases, better. The satisfaction from the clients is good also. However, the prices that clients are being charged by these large photo agencies are higher as compared to what Photography with a Difference charges as a result of their superior overhead costs as well as large photograph collections which ought to be searched to locate images. They also employ many people for the purpose of running their company. However, these large photograph agencies do not provide the greatest customer service as they are too large to offer personal attention for every call for photographs. The advertising in addition to promotional efforts that are provided by these large photograph agencies is efficient. Photography with a Difference does not aim at competing with these large photograph agencies. It fills the niche of the smaller markets, in terms of their needs. There are a lot of smaller markets as well as fashion photographers who labors to meet the wants of these smaller markets. Their prices are generally the same since there are industry standards that exist in this business that are held to rather narrowly. Away from the one-sided art of photography, Photography with a Difference’s business relies on the proprietor’s capacity to offer enhanced customer service, that is, timely, suitable, and ethical. 3. Market Potential Currently, the market area for my photography business is in the Brisbane & Sunshine Coast Region where I rely mostly on fashion event and weddings. Potentially, the entire Australian market and eventually the world is my market area attributable to computers, email, and the Internet. A risk exists of spreading a lot and trying to “perform all as well as be all” – the prospect is to happen to be involved in a lot of areas that exists in the photography world. Photography with a Difference seeks to be a medium, effective business with the capacity to do well in the niche which it is intended to fill, that is, selling fashion photographs to the editorial markets, clothing designers as well as advertising agencies. This market niche offers very promising prospects for this business. The present version of Photographer’s Market records over 100 markets which have the likelihood of using fashion photographs. The sales volume to these potential markets will depend with the amount of time and effort that will be devoted in developing them. Considering the availability of markets for photographs, the potential for growth of Photography with a Difference is great. This growth will call for proper time as well as effort put together with the constant desire to sustain a realistic and manageable enterprise. 3.2 Market Trends The 21st century Photography is digital. Digital cameras have replaced the conservative cameras in a very fast pace. Other gadgets such as mobile phones also have digital cameras on their systems. The applications for photography have tremendously increased. As a result, digital images are required for printing uses and also, for such uses as for brochures as well as business cards. Nearly all photography studios have jumped over to the digital format since it as well permits for effortless processing and manipulation.  Digital photos have also been less amenable to ensuring that digital files are affordably accessible to customers, plus this is a trend on which Photography with a Difference intends to take advantage of. 3.4 4 P’s Analysis a) The Product Photography with a Difference provides photo editors or buyers with photographs to make use of them in illustrating their publications. The attributes of photographs that are captured on film are of high quality, and also customized as per the needs of the particular photo buyer for the purpose of his/her publication. Photography with a Difference’s unique photographs corresponds to what the editorial market, clothing designers as well as advertising agencies are searching to present to their respective purchasing public. b) Place Photography with a Difference offers professional photography in the Brisbane & Sunshine Coast Region. The head offices for this business will also be located in the same area so as to ease operational costs. c) Promotion Photography with a Difference plans to carry out promotional activities through avenues such as social and print medias. These include platforms such as the newspapers, radio, posters, and banners. These promotional activities are aimed at familiarizing the residents of Brisbane & Sunshine Coast Region with the existence of professional photography services offered by this business. d) Process Photography with a Difference plans to carry out its operations by visiting clients to their preferred photo shoot locations and working from those sites. The business will also search for the best shoot locations for customers so as to increase their level of satisfaction with our services. 3.4 Strategies to Engage with the Photographic Industry For Photography with a Difference to engage with other players in the photography industry, there are several strategies which it can adopt. It is significant for the business to maintain these strategies as they help in making Photography with a Difference relevant in the changing business world. They include the following: Social Media Engagement While looking into the social media marketing plan that would suit Discover Beauty Shop, it was significant to consider the appropriateness for business use, standard features, optional benefits, as well as warranties. The social media is a vital aspect of an all-inclusive marketing strategy to many businesses as a result of the widespread of a number of social networks. Photography with a Difference intends to use this platform so as to market its services to the online community. A good social media marketing plan needs more than updating statuses on Facebook or tweeting. Success in the use of social media platform is achieved through having unique selling points that suit a particular business, and this is done by conducting trial and error to find out what the audience likes. Most of the marketing activities will be carried out through blogs, Facebook, and Twitter. The business as well will use this platform to observe what is trending in photography and how our competitors engage with their clients, find their weaknesses, and capitalize on opportunities to engage with the clients. Networking Opportunities Photography with a Difference intends to engage with the Photography Industry by utilizing the available networking opportunities. These opportunities include the following: 1. Becoming a member of a Professional Photography Association Photography with a Difference will subscribe membership to one of the association dealing with professional photography in Australia, so as to interact and exchange ideas with other professional photographers. This will help in the expansion of this business’ network. One such association includes the Australian Institute of Professional Photography (AIPP), which is one of the most respected membership associations for the Australian photography community. This business will also earn recognition by other professional photographers as well as the public as an accredited expert. Photography with a Difference’ subscription to this association will help this business to become accredited as well as it will receive professional support on different areas of photography. 2. Attending Photography Tradeshows Photography with a Difference will also engage with the photography industry by attending photography Trade Shows in the country. One such Trade Shows for professional photographers is the Photo Marketing Association. Attending such Trade Shows will enable the business to expand in terms of how it does its business, and improve on its weak points. Such Trade Shows will also provide the business with a lot of information which covers newest products, business techniques, as well as trends in photography. These Trade Shows also educate its members on the ways in which they can maximize their earning/profits, which is key to the expansion of Photography with a Difference. 3. Joining LinkedIn Photography with a Difference will also engage with the photography industry by joining LinkedIn.com. This is an imperative step in positioning this business as one dealing with professionalism as well as branding its name. 4.0 Photography Industry Analysis Industry Participants Photography studios in Australia are normally run by professional photographers who possess various education levels as well as experience in this field. There is however significant difference in taste and quality which depends on the skill of individual photographers. This is a very personalized, artistic process that makes it hard for big corporations to come into the market or else to form "chain stores." Participants in this industry are generally individual photographers. New technology There are a number of advanced photography technologies that exists in the photo industry. They include the following a) SLR Cameras- this is an innovative camera that is from Canon. This camera has unique feature that makes photography easier. For instance it has a CMOS Sensor that is largely sized. There is also the Subject Sensing Technology that is used in this camera, and which enhances its speed as well as ease of use while taking photographs. Acquisition of this camera by Photography with a Difference can be very useful in making the work of taking photographs for clients easier. b) Canon EOS-1D W: This is an innovative Professionally DSLR Designed camera that is exclusively for those in the field of Wildlife Photography. This camera has the following useful features; Fast Movement of Data A Large Storage Capacity Remarkable in Low Light Can capture moving objects quite comfortably c) the Canon MT-1 Motion Trigger These new technologies have revolutionized the way photography is done. Photography with a Difference would like to acquire some of these equipments in order to improve the quality of photographs it produces for clients, as well as to remain relevant in this industry. Financial Analysis and Plan Photography with a Difference will become lucrative in its 10 month of operation. After that, it will grow dynamically every year to its optimal level in 2016. This optimal level will generate sales that are sufficient for a comfortable net profit margin, after deducting the proprietor’s and employee’s salaries. This enterprise will be funded through an investment by the proprietor as well as a loan that will be secured from other sources. Start-up Funding The Start-up funding for Photography is presented in the following table. Start-up Funding 2-1.4" Camera $5,000 Camera Digital Back $30,000 Lights $20,000 Computer $2,500 Website $3,000 Equipments $1,000 Business Cards $500 Total $ 62,000 Assumptions An assumption has been made that the economy is stable with a realistic growth as well as a constant increase in interest rates. In addition, I also assume that my competitors will not adopt my strategy during the initial two years.  Photography with a Difference Profit and loss account 2014 2015 Details Earnings $50,000 110,000 Cost of sales (10,000) (15,000) Gross Profit 35,000 60,000 Administrative expenses (20,000) (35,000) Trading profit 10,000 32,000 Interest receivable and similar income - - Loan Interest Payable (30,000) (45,000) Profit on before Taxation – – Operating Costs Operating Cost Annual overheads Weekly overheads /48 weeks Daily overheads /5 Hourly overheads (per 40 hour week) Studio/office rent $12000 $230.00 $46 $5.75 Council Rates $1950 $37.50 $7.5 $0.94 Water Rates No excess Electricity $2000 $38.46 $7.692 $0.9615 Equipment Insurance Public Liability Insurance $1420.16/52wks $29.58 $5.916 $0.7395 Telephones $1380 $115 $23 $2.875 Internet $1380 $115 $23 $2.875 Marketing + advertising $7500 $625 $125 $15.625 Website hosting + maintenance $300 $25 $5 $0.625 Car lease Car maintenance Car insurance + registration Equipment lease: computers cameras lighting + studio Photoshop etc MYOB Own it Own it Own it Updates $600 Own it Own it Own it Updates $50.00 Maintenance $5000 $96.15 $19.23 $2.4 Accountant $5400 $450.00 $90 $112.5 Wages $55000 $1057.69 $22.02 $26.42 superannuation 9.5% $5798 PA $111.33 $22.266 $2.783 TOTAL $99728.16 $1917.84 These numbers were done on 48 weeks as the studio is at my home Financial Projections 2014 2015 Sales $50,000 $110,000 Expenses $20,000 $35,000 Net Profit before Tax $30,000 $50,000 Investment Future Plans and Strategies to Achieve Them Photography with a Difference has big plans for the future. In the next five years, this business aspires to be a leader in the fashion photography business in Brisbane and the entire Australia eventually. Photography with a Difference has a general objective of boosting its net revenue streams and commands a bigger share of the market. In order to do this, the following marketing strategies will be adopted by this business: a) Acquisition: Photography with a Difference will continually explore new plans, regularly through the acquisition of other businesses in the same industry. This strategy will enable the company to expand its operations in the international market, hence being ahead of its competitors. b) Activation: This is a strategy that Photography with a Difference will adopt so as to increase the its client base. c) Activity: This is a strategy where Photography with a Difference will increase its volume as well as value of transactions that are carried out by the company’s marketplace. Read More