Commercial Photography Business Plan Example

Commercial Photography Business Plan

Flash Commercial Photography, based in Rochester, NY, will cater to the photography needs of small and medium-sized businesses and non-profits. We will create stunning photographs that meet our clients’ requirements while providing excellent service, flexibility, and a personal touch. Additionally, we will offer value-added services related to photography. Our founder and experienced freelance commercial photographer, Matte Flash, aims to secure $53,000 by bringing in limited partners. This investment will enable us to establish a studio space, hire staff, and launch a new marketing campaign.

Sales and profits are projected to grow steadily. In the first year, we expect revenues of $356,000 and profits of $50,000. By year 5, we anticipate revenues of $750,000 and profits of $99,000. Throughout this period, our gross margins and net profit margins will remain stable at 75% and 13%, respectively.

The keys to our success are as follows:

– Establishing Flash Photography’s flexibility in meeting the needs of small and medium-sized businesses

– Offering a range of additional services, including printing, photo editing, framing, and production of photos in various digital formats

– Creating a welcoming studio environment where businesses feel involved in the creative process.

Flash Commercial Photography aims to become one of the top three commercial photography providers in the Rochester, NY area within five years. Our objectives within this timeframe include:

– Achieving a top three market share among commercial photography studios

– Generating over $900,000 in annual revenue

– Supporting a team of five full-time staff members

Our mission is to cater to the studio photography needs of small and medium-sized businesses and non-profits. We achieve this by capturing beautiful shots that align with our clients’ requirements, delivering exceptional service and flexibility, and offering value-added services related to photography. Our goal is to make it effortless for small businesses to outsource their photography needs by providing personalized service.

The keys to our success are:

– Establishing Flash Photography as a flexible partner for small and medium-sized businesses

– Offering a range of additional services, such as printing, photo editing, framing, and various digital formats for photos

– Creating a welcoming atmosphere in our studio and involving businesses in the creative process

Flash Commercial Photography is located in a conveniently accessible studio space within a 30-minute radius of downtown Rochester, NY. Founded by Matte Flash in 1999, the company has thrived as a freelance photographer specialized in commercial shoots. Flash has built a solid reputation among small businesses as a skilled and professional photographer. Throughout the years, Flash’s client base has steadily grown, with many returning clients relying on Flash for their product photography needs for brochures, websites, pamphlets, and other marketing materials. Although Flash has operated without a dedicated studio, they have traveled to client sites and improvised studio spaces as necessary.

Flash Commercial Photography was initially established as a sole proprietorship in 1999 and is currently transitioning to a limited liability partnership to facilitate the inclusion of investing partners. As of now, Matte Flash is the sole owner of all shares in the company.

Start-up expenses include legal fees associated with the re-incorporation, permits for the studio space, and the construction of the studio itself. Our marketing plan encompasses a promotional campaign to inform customers and potential clients about the expanded range of services and capabilities offered by Flash Commercial Photography. The rent budget covers two months of studio rent, allowing for the build-out period and an additional two months for a security deposit.

In the long term, we plan to invest in additional photography equipment such as cameras, tripods, backdrops, flashes, and lighting.

Start-up Requirements:

Legal – $2,500

Stationery etc. – $1,000

Insurance – $1,000

Rent – $8,000

Marketing – $10,000

Studio Build-Out – $2,000

Total Start-up Expenses – $24,500

Start-up Assets:

Cash Required – $15,000

Other Current Assets – $1,000

Long-term Assets – $30,000

Total Assets – $46,000

Total Requirements – $70,500

Services:

– Studio commercial photography

– On-site commercial photography

– Set dressing services for photo shoots

– Photo editing and digital editing work

– Delivery of prints or digital files of photo shoots

– Framing of photos

– Web portal for accessing digital files and managing editing process with clients

– Rental of studio space to subcontractors when available

In the future, additional staff will be added to offer graphic design services for the photos taken and to expand to a multi-room studio for multiple simultaneous shoots.

Market Analysis Summary:

The target market for Flash Commercial Photography is small and medium-sized businesses and non-profits (with under 500 employees) within a 15 mile radius of Rochester, NY. The market for commercial photography in Rochester, NY has contracted due to the recent economic downturn, creating an opportunity for smaller studios with lower overhead and prices to gain market share.

Market Segmentation:

– Very Small Businesses: These businesses typically handle their basic marketing collateral photography in-house but eventually seek inexpensive freelance photographers for higher quality results.

– Small Businesses: These businesses have ongoing photography needs for their products and services and prefer to establish relationships with vendors who understand their working process.

– Medium Businesses: These businesses outsource photography to photo studios and pay attention to both the quality and price. Volume discounts may be necessary to retain these clients.

Market Analysis

Target Market Segment Strategy

Larger businesses in the Rochester area are served by studios that can send photographers to the client site or set up shoots with little notice. These businesses require photography vendors who can shoot in multiple locations at the same time.

Smaller businesses are comfortable working with smaller studios. They are generally unhappy with larger studios as they find they are not a priority compared with the larger clients. They want the same level of service, scaled to the needs and budget of their business, and only a smaller studio can provide this.

Furthermore, larger businesses often bring photo editing work in-house to their marketing departments. Smaller businesses value the ability of a studio to handle this work as their marketing or design departments often do not have the capacity to deal with this work when new materials are being developed.

Medium and small businesses can provide ongoing work. However, without serving very small businesses, Flash will miss out on capturing smaller customers before they grow. Working with very small businesses can also provide a wide base of customers, making the revenue streams of the business less susceptible to the loss of any one customer.

Service Business Analysis

The commercial photography industry is characterized by local photo studios that serve cities or small regions. Very few businesses grow beyond this geographic range. Within a local market, such as Rochester, NY, there are dozens of photo studios in operation. Businesses seek photography vendors through referrals, internet search, and the local yellow pages. Photography studios generally base their charges on the time of the shoot and the number of edited photos provided.

Specific competitors for Flash Commercial Photography include:

Redwood Studios – Established 5 years ago and operating a small studio, this company focuses on product photography only

ImageMakers – Established 10 years ago, this company does not operate a studio but uses student photographers to offer lower-priced on-site photography shoots

Flash Photographers – Established 3 years ago, this company subcontracts all of its photography work to freelance photographers, acting as a broker between these freelancers and clients. This leads to a lower level of quality assurance and some client dissatisfaction

Competition and Buying Patterns

There are very few barriers to entry into the commercial photography business. At the low-end of the market, freelance photographers with inexpensive digital cameras start work every day. However, at the high end of the market, quality photographers working with the best equipment and a studio space are protected by the capital required to purchase equipment and to rent and build out a studio.

Customers among small and medium-sized businesses seek low prices but will not sacrifice quality. The best quality is obtained in the controlled environment of a studio, with well-trained photographers and high-quality equipment. Customers choose photo studios based on their websites and portfolios of work, as well as the personal assurances of the salesperson they work with at the studio that their needs will be taken care of.

Word of mouth is extremely important for this business. While the product of the work becomes very visible, it is important that customers feel so strongly about the experience of working with their photo studio that they talk about it to other businesses and contacts. These referrals are extremely helpful in generating business.

Strategy and Implementation Summary

To build its reputation as a quality choice for commercial photography in the Rochester, NY market, Flash Commercial Photography will focus on small and medium-sized businesses. These include:

• Very Small Businesses (under 20 employees)
• Small Businesses (20 to 200 employees)
• Medium Businesses (200 to 500 employees)

To reach these target markets, Flash will use email marketing, business networking, and web marketing to find clients and to ensure that clients find Flash. The CEO, Matte Flash, will sell to clients, and both he and an additional team of assistant photographers will be assigned to client photo shoots in the Flash studio and, when needed, at client sites.

Competitive Edge

Flash Commercial Photography has a competitive edge from the reputation of Matte Flash in the business community as a high-quality photographer who is easy to work with and attentive to the needs of clients. Flash will continue to develop this competitive edge by training additional photographers with his signature style of photography and high attention to customer service.

To develop good business strategies, perform a SWOT analysis of your business. It’s easy with our free guide and template. Learn how to perform a SWOT analysis

Marketing Strategy

The marketing strategy for Flash Commercial Photography is based on the belief that using a few marketing tactics extremely well is preferable to using many marketing tactics with moderate success with each. The following are components of the initial marketing campaign:

Email Marketing: Emailing a new business announcement and then monthly newsletters with details on new packages, the development of the studio, and new hires to past clients and other targets in the business community. Newsletters will include helpful tips on how to use photography and this will be used to gain permission from marketing departments at prospective client businesses to be sent the newsletters. Within these emails will be calls to action to encourage business referrals.

Business Networking: Matte Flash will promote the business through the local chapter of BNI (Business Networking International), the Chamber of Commerce, and the Rochester Business Owner’s Association. Through these meetings, Flash will introduce his company’s work to other business owners, share leads on business, and receive both exposure and qualified referrals. To encourage members of networking groups to use Flash’s services so that they are educated referrers, Flash will offer a 25% discount on services to members of the networking group on their first purchase.

Web Marketing: Flash Photography will purchase search engine advertising with Google Adwords around commercial photography keywords for the Rochester market and gear its advertisements towards the needs of small and medium-sized businesses. Furthermore, Flash Photography’s website will be optimized for higher search engine ranking under these keywords.

Sales Strategy

The company’s sales strategy is to utilize the experience of Matte Flash as a salesperson. Flash will be able to assure clients of what the company and its photographers can accomplish as all will be personally trained by him.

To increase the closing rate of prospects, Flash will meet clients at their businesses whenever possible to go beyond phone conversations. He will use a portfolio of images and testimonials. Flash will use Salesforce.com as a tool to manage the sales process and to train additional salespeople when the time comes.

The scheduling and fulfillment of services will be administered by the office manager, who will use Salesforce.com and QuickBooks to manage clients and capture information related to orders. Standard procedures for order fulfillment will be created by Flash and checked on an ongoing basis.

Sales Forecast

Sales for photo shoots are expected to drive the business and will grow with the growing staff. Additional photographers will be hired to meet the need first as part-time and then as full-time staff.

Supplementary revenue streams will be photo editing services and printing and framing of images. Finally, off-hours for the studio will be rented for events or other purposes to create a steady monthly stream of revenue.

Sales Forecast

Milestones

The promotional marketing before the opening of the studio is in a two month period in which an initial Web marketing and email marketing campaign will take place, directed by the CEO, with some help from the part-time administrative assistant, and marketing vendors (a Web marketing specialist). Furthermore, ads will be placed to specifically highlight the studio as a rental option for other uses.

• A Web Marketing specialist will be hired to set-up and maintain a Google Adwords campaign and optimize the website for search engines.
• Constant Contact will be used to maintain email marketing with announcements about the studio opening, new staff, and new services.

Milestones:

</br>

</br>

Management Summary

Matte Flash will act as CEO of Flash Commercial Photography. Flash has extensive industry, sales, and operational experience. Immediate hires will include one part-time assistant photographer and one part-time administrative assistant.

The CEO will be responsible for sales and marketing, management of all staff, and fulfillment of client services.

The first part-time assistant photographer will be Timothy Smith, a recent graduate of the School of Visual Arts and an accomplished photographer new to Rochester. The assistant photographer will assist on shoots during training and begin to take the lead on photo shoots over time. He will move to full-time within one year if sales projections are met.

The administrative assistant will be responsible for bookkeeping (accounts payable and receivable), scheduling of shoots and labor, and fielding calls for rental of the studio and initial sales inquiries. He or she will execute marketing campaigns (update website, print brochures and portfolios, etc). He or she will offer customer service to answer basic questions by phone or email.

</br>

Personnel Plan

Flash Commercial Photography will begin its expansion with one part-time assistant photographer and one part-time administrative assistant, with the understanding that both positions will grow to full-time shortly. Each year an additional assistant photographer will be added.

</br>

Financial Plan

The launch of the business will be financed by the founder’s investment and credit and by investments from limited partners. In exchange for $53,000 investment in the business at startup, limited partners will receive 49% ownership shares. The initial funding requirements are modest for the business.

The growth of the business, beyond the first year, will be financed by the free cash flows generated by the business. This will allow for the expansion of staff to include additional photographers, the ramping up of marketing expenditures, and the resulting increase in sales. Only one photographer will be added per year in order to make sure that there is time for adequate training of new staff.

</br>

Start-up Funding

Funding for the business is in part from personal loans, credit cards, and cash investment by the owner, Matte Flash. The remainder of funding will be from one to three limited partners in the form of equity investment.

</br>

Break-even Analysis

The break even for the business is high, as the salaries of staff are relatively fixed.

Projected Profit and Loss

Gross margins are expected to remain consistent, as most costs of the business are not direct costs of sales. The greatest cost of the service is labor, which is part of salaries and not cost of sales, for example.

In year 2, profit is expected to drop as capacity is increased to prepare for growth. This will rectify in future years as sales come in line with the payroll expenses.

Pro Forma Profit and Loss

Sales:

Year 1: $356,636

Year 2: $392,124

Year 3: $476,000

Year 4: $600,000

Year 5: $750,000

Direct Cost of Sales:

Year 1: $70,986

Year 2: $80,562

Year 3: $108,900

Year 4: $142,500

Year 5: $187,500

Other Costs of Sales:

$0

Total Cost of Sales:

Year 1: $70,986

Year 2: $80,562

Year 3: $108,900

Year 4: $142,500

Year 5: $187,500

Gross Margin:

Year 1: $285,650

Year 2: $311,562

Year 3: $367,100

Year 4: $457,500

Year 5: $562,500

Gross Margin %:

Year 1: 80.10%

Year 2: 79.46%

Year 3: 77.12%

Year 4: 76.25%

Year 5: 75.00%

Expenses:

Payroll:

Year 1: $112,755

Year 2: $150,286

Year 3: $164,920

Year 4: $201,921

Year 5: $245,193

Marketing/Promotion:

Year 1: $36,000

Year 2: $36,000

Year 3: $50,000

Year 4: $60,000

Year 5: $70,000

Depreciation:

Year 1: $6,000

Year 2: $6,000

Year 3: $6,000

Year 4: $6,000

Year 5: $6,000

Rent:

Year 1: $24,000

Year 2: $25,200

Year 3: $26,460

Year 4: $27,783

Year 5: $29,172

Utilities:

Year 1: $2,400

Year 2: $3,000

Year 3: $3,500

Year 4: $3,800

Year 5: $4,200

Insurance:

Year 1: $2,400

Year 2: $3,000

Year 3: $3,500

Year 4: $4,000

Year 5: $4,500

Payroll Taxes:

Year 1: $18,091

Year 2: $22,543

Year 3: $24,738

Year 4: $30,288

Year 5: $36,779

Other:

Year 1: $12,000

Year 2: $14,400

Year 3: $17,000

Year 4: $20,000

Year 5: $25,000

Total Operating Expenses:

Year 1: $213,646

Year 2: $260,429

Year 3: $296,118

Year 4: $353,792

Year 5: $420,845

Profit Before Interest and Taxes:

Year 1: $72,004

Year 2: $51,134

Year 3: $70,982

Year 4: $103,708

Year 5: $141,655

EBITDA:

Year 1: $78,004

Year 2: $57,134

Year 3: $76,982

Year 4: $109,708

Year 5: $147,655

Interest Expense:

Year 1: $458

Year 2: $0

Year 3: $0

Year 4: $0

Year 5: $0

Taxes Incurred:

Year 1: $21,464

Year 2: $15,340

Year 3: $21,295

Year 4: $31,112

Year 5: $42,497

Net Profit:

Year 1: $50,082

Year 2: $35,793

Year 3: $49,687

Year 4: $72,596

Year 5: $99,159

Net Profit/Sales:

Year 1: 14.04%

Year 2: 9.13%

Year 3: 10.44%

Year 4: 12.10%

Year 5: 13.22%

Projected Cash Flow

Cash flow is expected to be positive after the first month of operations. This is due to Matte Flash’s proven track record and ability to hit the ground running with continued work for existing clients. Cash reserves will be increased over the first year to prepare for additional expansion in year two.

Pro Forma Cash Flow

Projected Balance Sheet

The business is projected to show growth in retained earnings, allowing for dividends to be paid. Additional capital expenditures will not be substantial after the launch. Over the first five years of operation, net worth will experience healthy growth without requiring additional debt.

Personnel Plan

Pro Forma Profit and Loss

Andrew Brooks

Hello!

I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.

My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.

Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!