PHOTOGRAPHY STUDIO BUSINESS PLAN
PREPARED BY
NWOSU, CHINONYE FLORENCE
MATRIC NO. NOU171037780
COURSE CODE: GST302
COURSE NAME: BUSINESS CREATION AND GROWTH
SUBMITTED TO NATIONAL OPEN UNIVERSITY OF
NIGERIA
SPECIAL STUDY CENTRE NUTRW, GARKI II, ABUJA
NOVEMBER, 2019
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INTRODUCTION
1.1 Executive Summary
Families need photographs to capture the special moments of their
lives. Families of professionals are busy, and if too much time goes
by between photos, these moments are lost forever. Babies,
especially, grow fast and parents need photos of them several times
a year.
While nearly everyone has a camera for snapshots, people need
professional quality photos when they will be shown to an important
audience, and when people want to be seen in the best light. The
Internet has expanded the use of photos, making it possible for
anyone to send them or to publish them for wide viewing.
Professionals often have business needs for high-quality photos, and
through this familiarity, they acquire a taste for them. When these
professionals need photos to preserve memories, or to display family
photos when they entertain at home, they have the budget and the
desire for similarly high-quality photos. Just as they appoint their
homes with fine furniture and decorations, the photos on their walls
need to exhibit their standards of quality.
Most people use professional photo studios only on rare occasions,
such as weddings, yearbook pictures, or baby portraits. Because the
client has to initiate the call, many special moments are lost and the
studio loses potential business. Photo studios generally charge a
large fee for CDs of their clients' digital images. For these reasons,
most photo studios are rarely used by families as a whole.
This photography business plan shows how Nonye's Photo Studio will
meet the needs of professionals and their families to capture the
special moments in their lives and present them in the best light. We
will establish a relationship in which we initiate the calls to keep
their photos up to date. Digital files of their photos will be available
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for free by e-mail, or with a nominal fee for CD. Because of our
relationship with the families, when something big like a wedding
comes, there's no place else they would go.
Nonye's will grow at an annual rate of over 40 percent by targeting
families of professionals with newborn babies for baby pictures and
then developing a relationship with the client over the years for
ongoing photographs. The funding requested in this plan is projected
to result in a comfortable annual net profit by Year 3.
The opening of Nonye's Photo Studio will mark a change in the way
professional photography is delivered. Rather than being a rare
place to visit, this photo studio will be a fun part of a family's lives,
helping them capture special moments and share them in a digital
world.
Nonye's Photo Studio helps clients preserve memories and portray
themselves in the best light. We thrive on repeat business by
developing relationships with our clients and calling them with timely
reminders for new photos. We make professional quality
photographs easily available in a digital format. We do this by using a
pricing structure that makes our digital photographs a household
staple and by making it fun for them to come here or to have us in
their homes.
1.2 Objectives
In addition to livelihood, we’re in this business for the enjoyment of
photography and having fun with people. We want to keep it simple.
Our objectives are:
To generate a comfortable net profit by the third year.
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To develop systems of production for each product category
that are easy to replicate with new clients to keep it simple and
fun.
To have a client relationship system and call plan that will keep
us on top of each of our client's scheduled needs at all times.
1.3 Keys to Success
Our keys for success are:
Target marketing for the gateway products of baby pictures,
high school photos and wedding albums.
Developing relationships with our clients through personal
customer service, to turn one-time customers into lifetime
clients.
Our system of tracking clients' ongoing needs for photos and
taking the initiative to call them for appointments.
1.4 Company Summary
Nwosu, Chinonye Florence has worked as
an industrial photographer and freelance portrait photographer in
Abuja for 2 years. She has found that personal
customerrelationships are the key to repeat business and will open
Nonye's Photo Studio in Garki II, Abuja on that premise.
1.5 Company Ownership
Nonye's Photo Studio is a sole proprietorship owned by Nwosu
Chinonye Florence. It will open in a rented space at Garki II, Abuja.
Chinonye is an undergraduate student of National Open University of
Nigeria, Abuja and is an upcoming photographer in Abuja. She has 2
years’ experience capturing the special moments of people's lives.
1.6 Start-up Summary
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Start-up Expenses
Rent 500,000
Furniture 200,000
Props 300,000
Inventor of albums, mattes and frames 500,000
Long term Assets required
Camera 1,000,000
Camera digital back 300,000
Lights 300,000
Computer (laptops and desktops) 500,000
Electric signs 200,000
TOTAL START-UP EXPENSES 0
1.7 Company Locations and Facilities
We will open in Garki Modern Market, the heart of the commercial
district with ample free parking. The space will be rented for
N500,000 yearly.
The studio will have a highly visible electric sign and a 20-foot wide
display window visible to passing foot and auto traffic. Customers
will enter a public area with a counter, samples of our photographs
and albums, and couches for waiting. A separate playroom with props
and other toys will accommodate children with sitting areas for
parents, while a utility area off the back door will be set up to
accommodate pets and their props. Children, pets and props can be
brought into the photography studio for their photographs. An
office and working area will be used for assembling the final
product.
1.8 Products
Nonye's Photo Studio will help our clients to look their best, will
keep their photos up-to-date, and will capture the special moments
of their lives.
Nonye's Photo Studio has a comprehensive program to preserve
memories on an ongoing basis. We see individual pictures, especially
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baby pictures, as gateway products for our programs of ongoing
photography.
All of our photos are created in a high-resolution digital format,
from which our prints are made. Since the Internet and commonly
used printers typically use the lower-resolution 300 dpi format, 300
dpi digital files are available to clients for a nominal charge. Higher-
quality digital photos and prints carry full pricing. We will retain the
high-resolution data and clients can order more prints from us if
they wish.
Our photo studio includes quality props for portraits and baby, child
and pet photography. The physical environment of the studio is fun
and accessible, making families want to come here. We also go
regularly to people’s homes and bring cameras and lights that are out
of the budget of non-professionals.
1.9 Product Description
Our products include:
1. Baby Pictures
Our specialty is baby pictures. We have a unique combination of
props and a passion for babies. Babies are also our prime gateway
product for entering families into our programs of ongoing pictures.
2. High School Senior Yearbook Portraits
Senior pictures are a long-standing tradition that brings high school
seniors into photo studios. By making these photos easily accessible
in digital form, and by marketing prominently on the Internet, we
hope to capture much of this market.
We offer a special package of a family portrait at half price with
the senior picture. It is often the parents who are paying for the
senior portrait, so we want to establish a relationship with the
parents. The parents will want a picture of their senior with the rest
of the family. This introduction to the family will allow us to market
our other services.
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3. Family and Pet Portraits
Portraits of the entire family are needed for display, to send to
relatives and to use in family newsletters and websites. Most
families have pets, and we can arrange family portraits that include
them. While we don’t specialize in pet portraits, we have props and
will take stand-alone photos of pets as well. There’s an additional
charge for exotic animals.
4. Individual Portraits
Individual portraits are commonly needed for individual and business
websites, business cards, brochures and annual reports.
Model’s Portfolio and Glamour Shots
Photos suitable for magazine publication.
5. Wedding Album
Weddings are one of the most special moments of life. Our wedding
album includes up to 7 hours of wedding photography, with prints
displayed in a custom photo album and digital images on CD.
1.10 Annual Portrait Program
We take the initiative to schedule the annual portrait and we replace
it in last year's frame while saving last year's photo in a portfolio.
1. Baby Picture Program
We arrange pictures of the baby at 1 month, 3 months, 6 months, 9
months, 1 year, 18 months, 2 years, and 2½ years.
2. Child Portrait Program
We arrange a portrait of the child at 3 years, 4 years and 5 years,
or until the child begins to be photographed annually for school
pictures.
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3. Capturing Memories Program
We arrange an annual portrait of the family and individual pictures
of each member of the family. Photos can include pets and the house
and grounds, if desired.
2.1 Market analysis
MARKET ANALYSIS
YEAR YEAR YEAR YEAR YEAR
1 2 3 4 5
Potential Growt CAGR
Customers h
Families of 1% 19,083 19,350 19,621 19,896 20,175 1.40%
College
Graduates
Families of 1% 46,398 47,048 47,707 48,375 49,052 1.40%
High School
Graduates
Families of 1% 9,355 9,486 9,619 9,754 9,891 1.40%
Non-High-
School
Graduates
Total 1.40% 74,836 75,884 76,947 78,025 79,118 1.40%
2.2 Target Market Segment Strategy
Our target market is families of college-educated people who are
most likely to be professionals. This is the population most likely to
order professional photos on a regular basis, having both the means
and the desire for professional quality photographs.
Since women make most of the purchasing decisions in families, our
specific target market is middle-aged professional women in the
Abuja area, roughly 200,000 people.
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2.3 Market Trends
Photography has gone digital. Digital cameras are replacing
conventional cameras faster than DVDs are replacing VHS in video
stores. Even cell phones have digital cameras on them. The uses of
photography have expanded as well because of Web pages on the
Internet and email. Digital images are needed for printing uses as
well, for such uses as brochures and business cards.
Photo studios have mostly switched to digital format because it also
allows for easy processing and manipulation. They have been less
amenable to making digital files affordably available to clients, and
this is a trend on which we intend to capitalize.
2.4 Market Growth
The growth rate used in the table is based on the 1.4 percent
growth rate experienced by the Eugene-Springfield area over the
past year. This growth is reflected in the accompanying chart and
graph.
2.5 Market Needs
Families have photos taken to preserve memories. Most photos are
taken by consumers with their own cameras, which are increasingly
digital and are even part of their cell phones. Most of these photos
are low quality but no one cares because only the family views them.
2.6 Industry Analysis
The competition is divided between luxury magazine-quality
photographers, moderate professional photographers who mostly
pose their subjects, and same-day photo studios.
Nonye's Photo Studio is not a luxury, magazine-quality studio,
but our service and photo quality is high compared to other
moderate professional photographers. Our rates are comparable to
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theirs, but we add value through personal contact and easy
dissemination of digital images.
2.7 Strategy and Implementation Summary
The key element of Nonye's strategy is to reach parents of newborn
babies in target neighborhoods soon after they leave the
hospital. Parents and other relatives want baby photos several times
a year, and this pattern can form the basis of a long-term
relationship. We will take the initiative to phone parents to take
pictures instead of waiting for them to remember, when
parents request this service.
Referrals will be solicited from clients through specialty advertising
to reach their friends and family.
The target market is female professionals. Professionals are more
likely to have the means and taste for professional photographs.
The world is becoming more digital and we will exceed the
competition in providing access to digital files easily and affordably.
2.8 Competitive Edge
Our competitive edge is that we provide not only a photograph, but a
program of ongoing portraits to capture the special moments in a
family's life. We then make the digital images of their photos easily
and affordably available for distributing on the Internet.
2.9 Marketing Strategy
Nonye's Photo Studio is unique in having programs to capture the
special moments of a family's life. These moments can easily pass by
and be lost by busy professional families. We take the initiative to
call them, if they request this service, to schedule appointments to
mark the special stages of growth in their families. We're there for
baby pictures, high school senior pictures, wedding pictures and
photos for their professional needs.
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Our prices are about the same as those at other photo studios,
but we email digital files of our clients' images for free to help them
put their pictures on the Web. There is no charge for our calling
service, either, so we are a great value.
We will get the word out by conventional advertising to start, and by
a yellow page ad and a website. We have a targeted marketing effort
to families of newborn babies.
2.10 Marketing Programs
Our marketing programs include:
Website development
Yellow page ad developed
Direct mail program to parents of new babies in our target
area
Newspaper display ads the first six months
Radio spots the first six months
SALES FORECAST
YEAR 1 YEAR 2 YEAR 3
Unit Sales
Portraits 300 600 900
Family Photos On-Site 109 218 436
Weddings 32 34 36
TOTAL UNIT SALES 441 852 1,372
Unit Prices Year 1 Year 2 Year 3
Portraits 100,000 200,000 400,000
Family Photos On-Site 300,000 350,000 500,000
Weddings 400,000 600,000 800,000
Milestones
Installation of electric sign during the month of December.
Move in during the month of December.
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Employee training while moving in during the month of
December.
Website development
Yellow page ad developed
Design direct mail program to parents of new babies in our
target area
Display advertising in newspapers
Radio spots on radio stations targeted to female professionals
the first six months.
3.1 Management Summary
Chinonye is the Director of Nonye's Photo Studio as well as the
photographer.
Management Team
Nwosu, Chinonye Florence is an undergraduate student of National
Open University of Nigeria, Abuja. She has 2 years’ experience as an
industrial photographer and freelance portrait photographer.
Blessing Ifeoma is a trusted family member with five years’
experience in retail sales. She is also an amateur photographer who
has an active interest in and understanding of photography.
PERSONNEL PLAN
YEAR 1 YEAR 2 YEAR 3
Owner 150,000 150,000 300,000
Employee (s) 50,000 50,000 70,000
TOTAL PEOPLE 0 3 4
Total Payroll 200,000 300,000 580,000
4.1 Financial Plan
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Nonye's Photo Studio will become profitable in its fifth month of
operation. It will grow vigorously each year after that to its
optimum level. This optimum level will produce sales sufficient for a
generous net profit, even with the owner's and employee's salaries.
The business will be funded with an investment by the owner and
loan secured from bank or other financial agencies.
4.2 Important Assumptions
We assume a stable economy with reasonable growth and a steady
rise in interest rates. We also assume that our competitors won't
adopt our strategy within the first two years. After that, our
approach is likely to make a change in what our competitors charge
for digital files, because they'll see it's effective in bringing in
repeat business as well as new business.
4.3 Projected Profit and Loss
This business is projected to become profitable in the fifth month,
after the start-up advertising is completed and customers begin to
discover the service. For the year 2020, the business will be
profitable. It will grow at a vigorous rate over the next two years.
Our utility costs include monthly charges for high-speed Internet
access via a corporate account, which will essential to delivering our
finished images to most of our customers.
The optimum level of profitability for this one-photographer shop is
reached in 2022. Our profit margins are much higher than the
industry average because of our innovative product-delivery options
- digital images require no film, no paper, and no chemicals, just
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storage units (CDs and DVDs) and delivery (computer and Internet
access).
4.4 Projected Cash Flow
Cash reserves reach the minimum point in March 2006. From that
point, cash flow is positive, reaching a robust level by the end of
2008.
As sales increase, we will supplement our prop and furniture
inventory with the purchase of new items as current assets.
4.5 Business Ratios
Nonye's Photo Studios is part of the photographic portrait studio
industry. Industry standard growth is currently 7.3% annually.
Nonye's Photo Studio is projected to grow weed-like annually by
seizing its target market early and building on it.
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