The Real Time Fashion Photography Studio Marketing Essay

Published Date: 23 Mar 2015

Real time Fashion Photography studio is a small business aimed at bringing a smile to every model's face when they see their beauty captured in a stunning portrait. The business will offer a wide variety of products, such as: formal studio portraits, location portrait sessions, holiday candid photographs, portrait finishes, and framing. Portrait sittings are available in either the well-equipped studio, the comfort of the client's home, or in an outdoor setting.

Real time Fashion Photography will be located in Indira Nagar, Bangalore. The business will be established as Sole Proprietorship.

With two years experience in a variety of dealing with Fashion portfolio, British library, Bone China, I have acquired a range of transferable skills and attributes. These include sales experience through my previous retail management experience as well as photographic and design management skills gained through professional studies at Ayr College as well as Image College of art, animation and technology.

My target audience will be upcoming models those who were studying fashion, love fashion to be a part of their carrier, and also one who have glamour and beauty and wanted to show their talent and skills. In Bangalore city there are numerous no of institutes around 16 institutes for fashion and total no of student in each year comes around 2000 students each year. Not only institutes, a individual also be my target audience who wants to shows his talent through his portfolio.

Real-time Fashion Photography studio will reach their audience by targeting clients of these existing markets. We will fill an existing need for the client by specialising in fashion photography. Through advertisements in the print media, brochures, and establishing working relationships with fashion organizations and we will highlight our quality products and services to them. Each Clients of real-time fashion studio will receive a customizable profile page to introduce their skills and a photo album.

Real-time Fashion Photography will be in a unique position of competition. We compete against the standard portrait studio that may photograph people, but only as an adjunct to fashion photographing. Real-time Fashion Photography will be in competitive edge as its commitment to customer service and satisfaction. We offer an array of services, flexible scheduling, and have the latest technology, with state of art infrastructure to produce beautiful fashion stylist photographic portraits. At Real-time Fashion Photography studio, models will our primary business; we understand model and how to get the right elements together for a successful portrait session. Our number-one goal will be quality results.

Photography businesses usually require a significant initial investment in equipment and facilities. However the owner of Real-time Fashion Photography has been freelancer fashion photographer for two years and experienced professional-level photographic equipment to get the business off to a good start. In addition, the will be a cash support from family-based business. I really say thanks for giving a backbone support towards my fashion studio to my family members.

2. Introduction

Establishing a Real-time Fashion studio business has been a goal for the past two years. For the past year i had worked with an experienced model in order to develop the reputation and professionalism required to establish this business.

My mission statement is "Treating our each model like beauty and Glamour"

The keys to success at Real-Time Fashion Photography studio 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 model.

Convenience: offering clients a wide range of services in a location or environment convenient to them.

Reputation: reputation of the model and business as providing superior personal service.

Professionalism: 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 business/Recommendations: giving the kind of service that brings people back and encourages them to recommend 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. Goals and Objectives

Real-Time Fashion Photography studio will be a small business aimed at bringing a smile to every model face when they see their beautiful face captured 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.

Setting up basic machines

Secured a business mentor.

Contracted tax/accounting consultant.

Attending Biz financial training.

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).

6-12 Month Goals

To achieve profit of minimum Rs 8 lakh.

Completed work for 350 numbers of clients.

Created 100 pieces of stock photography and submitted to stock libraries.

Maintained relationships with modeling agencies, Movie-Makers, Advertising agencies, fashion photographers.

1-2 Year Goals

To achieve profit of 15 lakh.

Completed work for 450 clients.

Have to done at least 3 photo exhibitions in 5star hotels.

Targeted 2 other places to open in India which include Pune, and Chennai.

3-5 Year Goals

To achieve profit of 25 lakh.

Completed work for 1200 clients.

To be recognised as India's top 10 fashion photography studios.

Franchised the fashion photography business nationwide.

Franchised the fashion photography business into India.

4. Business Details

Business Ownership and Legal Structure

Real-Time Fashion Photography will design to be a Sole Proprietorship business and will initially operate as a sole trader business. At this time it is the most appropriate structure as the business is managed and run by me. At this initial stage the business will face no long term liabilities or debts such as a lease or hire purchase costs; it's all supported by my family.

I anticipate registering the business as a Limited company in the second year, subject to professional advice. Such advantages 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 1000000 rs 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

Real-time Fashion Photography will be located Indira Nagar, Bangalore. It will be Sole Proprietorship business, with an area of the 1400 square feet dedicated to client reception, office, and a small studio. Clients can elect to have the portrait sitting done in the studio, on location , or in an outdoor setting.

The benefits of having the business located at Indira nagar include:

Overheads for the business, in the form of the rental of space, power supply and landline telephone, can be minimized as compare to other part of Bangalore such as M.G road, Bgrade Road.

The location on the main road of Indira nagar means that clients can easily access the premises by either public or private transportation.

It's also in central part of Bangalore. So that most of youngster who want to have portfolio can easily access me.

Our office will be equipped with a fax machine, email and a computer. The company will maintain a high degree of professionalism by using only the highest-quality photographic equipment and graphics to produce its portfolio.

Products and Services

Real-time Fashion Photography Studio 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 will design to help the client select a setting for the portfolio session. The pictures we provide will give the client a feel for the variety of poses that can be used, and helps them decide if they wish to incorporate other fashion models in their portfolio. The discussion of the different settings helps the client select a studio session, home session, or outdoor location for the portfolio. We also provide instructions for each setting.

Fashion Photography Studio

The studio will be controlled environment, free from distraction, where the model can be comfortably posed and lighted to enhance the beauty of the final image. A variety of props and backgrounds will be used to stage a setting that will highlight the model's features and coat color. These sessions must not be rushed, so the model can become comfortable in the studio environment and be certain that the studio lights do not frighten or excite the model. There is a standard charge for the portfolio session which we refer to as the sitting fee. The model will 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 two days of the photo session. The client will then have 1 days to consider the images before making a final selection.

Location for Portfolio Session

The model may be more comfortable in the home or a familiar outdoor location. The staff of Real-Time Fashion Photography will travel to the location prior to the portfolio session to select an area that will be the best suited for the session and will most acceptable to the model. Prior to the session, Real-Time Fashion Photography staff will stage the lighting and any other props needed for the photo session. If the location selected for the photo session will be in a public park, the model, not Real-Time Fashion Photography, will legally responsible for the behaviour of the public's. The fee for a photo session in the home or outdoor will be more than the studio because the equipment must be transported, staged, and then broken down. The client will be provided 24 photographic-quality images within two working days of the photo session. The client will then have one working day to consider the images before making a final selection.

Additional Services

Real-Time Fashion Photography will aware that a model portfolio will be investment as well as a cherished display of beauty and glamour. We offer a variety of portfolio finishes from which to choose. These finishes will be shown to the client upon pick up of the proofs, and the client will be given a brochure which illustrates these finishes to compliment a variety of model images. These finishes are used on the beautiful portfolio's that will display in our studio gallery. Real-Time Fashion Photography also offers custom and readymade framing for all portfolios. 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 Real-Time Fashion Photography we will committed to customer service and satisfaction.

Start-up Summary

The founder of Real-time Fashion Photography Studio had graduated from Image College of Art, Animation and Technology. As I am the owner have a capital available of Rs 40-45 lakh from family 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 done the business will be able to begin operations.

A range of suppliers were approached 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 Enterprise Allowance Grant are included in the appendices at the back of the business plan.

. Business Management

Management Summary

The management of Real-time Fashion Photography studio 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 market expert as well as owner will both 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 having all things and equipments that will be 1 month after starting off.

Real-Time Fashion Photography's growth will be deliberate rather than fast paced. It is a reasonable assumption that the demands of the office, and also assisting the photographer, might become too much for one individual. Depending on the strengths of the individual that fills the first full-time position, a second staff member may be hired within the first two week, and both will be trained in the other's duties.

Skills and Experience

With two years experience in a variety of creative and commercial employment, Owner(me)had acquired a range of transferable skills and attributes. These include sales experience through his previous Freelance work as well as photographic and design management skills gained through his professional study.

I had creative career path started during graduating with a professional degree and since I had also completed one year foundation course in graphic design from Ayr college Scotland. I had spent the past year as a Freelance photographic work for well known Indian companies like British Library, Bone-China and for model work I did completed portfolios for numerous models such as one of my client Rupa Khurana had performed in T.V serials in Rahul lai jayegaa Dulaneyaa in NDTV.

I had built a strong network with other established photographers and belong to the Indian Institute of Professional Photographers who openly provide professional and legal advice and benefits. In areas such as financial planning, accounting and legal advice I will building relationships with such advisors to develop these areas of the business (see Advisors, Networks and Support).

Staff Requirements

Initially few permanent staff will be employed, with a photographic assistant contracted in on a project by project basis as required.

After one month's 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, billing, handling both accounts receivable and accounts payable.

2 Assist photographers in portfolio sessions.

2 Marketing executives

2 Tele Callers with online promotions

1 Makeup Artiste

3 Helper

1 Stylist Artist

3 Post-Production Worker

Salary Chart

Position

Salary (Monthly)

Salary (Yearly)

1 Receptionist

12000

144000

2 Assistant Photographer

15000/each

360000

2 Marketing Executives

15000/each

360000

1 Make-Artist

15000

180000

3 Helper

12000/each

432000

1 Stylist Artist

15000

180000

3 Post-Production Worker

15000/each

540000

Grand Total

183000/Monthly

2196000/yearly

It is understood that anyone employed by the business must have a written employment agreement, whether it be an individual agreement or a collective agreement. It is recognized that the Department of Labor 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.

Advisors, Networks and Support

It is recognised that the owner has not previously run a business and that he will need the support 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:

Oriental bank of commerce, Indira nagar

Bangalore

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

Accountant:

Rahul Singh

Lal bag

Bangalore

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

Lawyer:

Sanjay Nandani

City center

Bangalore

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

Business Advisor:

Lakshy Management Consultant Pvt.

Bangalore

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

Professional Association:

National Institute of Photography

New Delhi

(Represents over 1500+ commercial fashion photographers in India. Provides resources, information, marketing and networking opportunities for members.)

6. Business Environment

Market Size

While no figures exist for overall fashion models in Bangalore, it will known that 15% of Bangalore population's are in fashion industries, that's why it made Bangalore the Fashion capital of East after Paris.

In the Bangalore region there are 16 private and 4 national institutes for fashion. Approximately 2000 student each year needed portfolio and 15% of overall population also will be there in fashion. So within this target market, there is wide range of getting lots of customers. And also Bangalore is house of publishing many of international fashion magazines' so it will be great for my business if we got tie-up from these magazine's company.

Today there are a lot's of opening in glamour world of still for all age groups. It's not just for youngster but also for kids, mature, old every one. As growth of new trends new products regarding jeweler, cloths, food item, shopping malls, hotels, everywhere fashion photography involved.

Market Trends

Fashion has always been an important part of the Bangalorean's lifestyle. However, as the Bangalore culture has changed in the last two decades, an even more prominent role for the fashion has emerged. As Bangalore has enjoyed increased standards of living, they expect to pass this on to their fashion.

Competition

Real-time fashion Photography will be in a unique position of competition. While the portrait photography business is composed of dozens of small, individually-owned studios, fashion photography is a new, but very successful, experiencing rapid growth. We compete against the standard portrait studio that may photograph people, but only as an adjunct to photographing model. The benefits and drawbacks of each of our competitors as compared with the services we offer are hardly a match in quality and price.

We are experts in working with model to make them comfortable and to bring out the inner quality and personality of the fashion model. Although we are a new organisation, we are not novices to photography or photographing models. Our scheduling and location flexibility are specifically geared to be client friendly.

The fee schedules for Real-Time Fashion Photography are competitively priced. No other area photographer offers the flexibility and array of services provided to the client at Real-Time Fashion Photography. Our commitment to customer service and satisfaction is unequaled.

Our major competitors are:

Divas fashion studio

Strengths:

Exclusive Fashion 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.

Prasad Photography Studios

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 fashion photography. Fashions are a sideline and not the major focus of the business.

Can be inflexible with scheduling and out-of-studio work.

Local Amateur Photographers

Operate from home.

Strengths:

Pricing.

Weaknesses:

Quality of final product.

Lack of professional photographic equipment and skills.

Competitive Edge

Real-Time Fashion 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 portfolio. At Real-Time Fashion Photography, Fashion photography is our primary business, not a sideline or hobby. We understand model and how to get the right elements together for a successful portfolio session. We are patient, and our number one goal is quality results.

7. SWOT Analysis

Strengths

Formally skilled in photography.

Have an established professional network (other photographers and related creative professionals).

Acquired photographic best practice skills and knowledge (through working as a photographic assistant).

Relationship building - appreciates the value of building and sustaining professional relationships.

Have strong skills in graphic design and image manipulation.

Weaknesses

Limited business and industry management experience.

Small existing client base.

Less start-up capital available.

Opportunities

Can add image manipulation as an additional service.

Target major fashion shows and fashion organizations in other parts of Bangalore.

Can create stock photography and submit to stock libraries.

Hold first national fashion photo exhibition

Franchise the Fashion photography business nationwide.

Threats

Established Fashion photographers in the Bangalore region.

Sudden negative change in the economy, since this is a luxury item.

Increased competition in the regional market.

Forward Plans

Opportunities

Completion Date

Add image manipulation to services provided.

1 months

Create stock photography and submit to stock libraries.

1-2 months

Hold first national Fashion photo exhibition.

1-2 years

Target major Fashion shows and Fashion organizations in other parts of Bangalore.

1-2 years

Franchise the fashion photography business nationwide.

3-5 years

Contingency/Task Plans

Weaknesses

Contingency/Task

Date Completed

Limited financial management skills and experience.

Contract tax/accounting consultant.

Undertake free financial training through the Biz Programme.

Completed

3-6 months

Limited business and industry management experience.

Utilise resources provided through membership of Indian Institute of Professional Photographers.

Identify and approach a business mentor.

Completed

Completed

Small existing client base.

Develop relationships with fashion institutes.

1-3 months

No start-up capital available.

Apply to Work and Income for start-up funding.

Within 1 month

Loss of income due to illness and not being able to work.

Identify a preferred income protection insurance plan (to afford a replacement photographer and/or loss of income protection).

Within 1 month

Threats

Contingency/Task

Date Completed

Established Fashion photographers in the Bangalore region.

Continuously observe competitors (what they do and who they do it for) and pitch the business with a point of difference.

Ongoing

Sudden negative change in the economy, since this is a luxury item.

Maintain relationships with fashion specialty show organizers.

Maintain relationships with wedding and event organizers to supplement any downturn by undertaking other types of photography work.

Ongoing

Ongoing

Increased competition in the regional market.

Maintain relationships with fashion specialty show organizers to limit access to market for competitors.

Ongoing

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 document the expectations (Services required) with each client. This will effectively be the contractual arrangement with the client for each project. To ensure all legal obligations are covered the following documentation has been sourced through 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.

Copyright - License Agreement

Copyright is a form of protection for original works that photographers enjoy. It is afforded automatically to any work, immediately on its creation in fixed form, and the copyright on the work normally becomes the property of the creator. Copyright is part and parcel of the creation process.

Real-Time Fashion photography retains the copyright of all images photographed (in order to control who can reproduce them) as outlined in the Terms and Conditions of Engagement. In addition this information will be printed on the back of each photograph.

To determine client reproduction rights for each project a License and Order Confirmation Form will be prepared for the client to read and sign before the commencement of any work. This License outlines the agreed media, time period and territories where the client can use these images where the client needs to use the photographs for publication. This is expected to be the case for fashion show organizers.

Estimate (Cost)

Written estimates are developed in accordance to the brief and licensing requirements:

•How many photographs model need basic 16 photographs come under a basic portfolio and 25 photographs come under premium portfolio.

•Basic portfolio charged will be Rs 30000 and premium portfolio will be charged Rs 45000 include make-up artist and fashion stylist.

Terms and Conditions

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

Release Forms

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

Financial Regulations and Insurance

I Will going to be GST (Goods and service taxes) registered and a tax agent has been consulted to assist Real-Time Fashion Photography set up processes in relation to GST and tax. Spreadsheets have been set up to manage sales and expenses on a monthly basis, and the business owner will complete the two monthly GST returns. 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 GST.

The owner's current insurance is through State, who offers a full line of insurance coverage, and photographic and IT equipment will be insured for its full value by adding a rider to the existing owner's policy.

Compliance Issues

I had received an affirmative answer from Bangalore 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

Consumers Guarantees Act 1993

Unsolicited Goods Act 1975

Unsolicited Electronic Messages Act 2007

Health and Safety in Employment Act 2002

Real-Time Fashion Photography recognizes it has a responsibility for the health and safety of us, 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 recognizes that the handling of model presents health and safety issues for staff and customers.

In order to manage the risk Real-Time Fashion Photography will implement a three step health and safety policy action plan. These three steps are

The development of an effective system for managing hazards in the place of work.

Ensuring that employees have all the practical 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 the best of their ability within the resources available. Progress in implementing the three step plan will be regularly reviewed.

9. Marketing Strategy

Marketing Summary

Real-Time Fashion Photography will use marketing databases to accurately target our market. Working closely with local fashion show organizations, Fashion institutes, we will place well-designed advertising material in these locations to illustrate our capabilities. Our fashion studio will maintain flexible hours and scheduling to accommodate and expand our client base. Because we are dedicated to customer service and satisfaction, we will use our client base to continually maintain our reputation for excellence.

Purpose and Positioning

The purpose of Real-Time Fashion Photography's marketing program is to instill top of mind awareness of their services within their target market. This will be accomplished by positioning Real-Time Fashion Photography as understanding that any model can be glamour and that this special relationship should be captured in a way that pleases the client. Unlike other fashion studios that photograph model only as a sideline, for the model who desires a fashion photographic portfolio, will always be cherished with piece of artwork that we going to produce in our studio.

Marketing Strategy

Our research suggests that the best way to reach Real-Time Fashion Photography's target audience for fashion portfolio photography is through the fashion-related services they use. Real-Time Fashion Photography will establish working relationships with businesses such as beauty salons, gyms, shopping malls, café-coffee day, and other get to-gather places. We hope to place brochures and framed fashion model photos in these locations.

Another strong marketing opportunity is available through the local area fashion shows and local fashion associations as well as fashion agency Real-time fashion Photography will establish a working arrangement with the Indian fashion Show network to provide fashion photographic services

Finally, Real-Time Fashion Photography will establish relationships with fashion specialty stores offer fashion portfolio of model during holiday occasions. Although this generates revenue, it will be used as a marketing tool to increase exposure to people between 14 and 60 years old. This marketing strategy is aimed at increasing our studio and on-location fashion portfolio business.

The Marketing tools Real-Time Fashion Photography plans to use are:

Business cards.

Press Meet: in the launch of studio

Brochures.

Fliers.

Advertising in fashion and lifestyle magazines. These advertisements target model and fashion agency enthusiasts, and highlight Real-Time Fashion Photography's quality portrait packages and reasonable prices.

Web Site: creating a website not only creation have collaboration with Google, Msn, Altavista, so that anyone searching for fashion photography or fashion portfolio came to know about my studio and will able to access me at anytime through phone. Online promotions include all social network to like orkut, face book, MySpace etc

Personal Selling.

Direct marketing approaches to fashion specialty show organisers, models organizations, and fashion stores to limit access to market for competitors. From the yellow pages and industry websites 83 potential referral organizations have been identified.

Exhibitions.

Paper Ads: weekly once in all leading news papers

Electronic newsletters and communications to client data base.

SMS Advertisement: Mobile is very common as today everybody having, I planning to have SMS advertisement also SMS Promotions via Bluetooth & Service providers with the studio name

Radio Advertisement: Since Fm had catch the market and lots of people love to listen radio sometime in Online, while driving car, on somewhere loony place, so through radio also many of came to know about my studio.

Handbills promotions near major locations (Malls, Commercial St., etc,)

Mall activities at weekends.

Tie ups with all the major gyms, Spa, Beauty Salons, Fashion Designers, Model coordinators, Fitness Centers, Audio Shops, Pubs, Auditoriums, Coffee Shops, Colleges, Fashion institutes, Movie makers,

Mobile Canter for every 1 months once

Marketing Plan Expenditure

Date

Promotion

Budget

April

1-15

Complete logo and brand identity.

Print business cards.

Design and print flier.

Visit galleries.

Register website address.

Develop client database.

Develop referral database from yellow pages and industry web sites.

Contract website designer.

Secure Yellow Pages Ads

Advertise in fashion and lifestyle related magazines.

Advertise in local community newspaper for Eastern and Southern Suburbs of Wellington.

0

2000

5000

2500

10000

2500

5000

8000

5000

20000

25000

April

16-20

Continue to develop Client Data Base

Send direct mail letter introducing services to the referral database.

0

2500

April

21-30

Advertise in all local as we as national newspapers

Send electronic newsletter to client data base.

Approaching fashion stores for taking in store photos

Personally visit 20 organizations from the referral database.

Advertisement in FTV channel (25 Seconds for 4 weeks)

25000

0

5000

15000

300000

10. Risk 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 minimize threats and are taken from the SWOT analysis section of this plan.

Weaknesses

Contingency/Task

Date Completed

Limited financial management skills and experience.

Contract tax/accounting consultant.

Undertake free financial training through the Biz Programme.

Completed

1-2 months

Limited business and industry management experience.

Utilise resources provided through membership of Indian Institute of Professional Photographers.

Identify and approach a business mentor.

Completed

Completed

Small existing client base.

Develop relationships with fashion specialty show organizers, modeling organizations, fashion stores and magazine companies to be preferred supplier and to be recommended to their clients.

1-3 months

capital available.

Apply to Work and Income for start-up funding.

Within 1 month

Loss of income due to illness and not being able to work.

Identify a preferred income protection insurance plan (to afford a replacement photographer and/or loss of income protection).

Within 1 month

Threats

Contingency/Task

Date Completed

Established fashion photographers in the Bangalore region.

Continuously observe competitors (what they do and who they do it for) and pitch the business with a point of difference.

Ongoing

Sudden negative change in the economy, since this is a luxury item.

Maintain relationships with fashion specialty show organizers, modeling organizations, fashion institutes and magazine companies.

Maintain relationships with wedding and event organizers to supplement any downturn by undertaking other types of photography work.

Ongoing

Ongoing

Increased competition in the regional market.

Maintain relationships with wedding and event organizers to supplement any downturn by undertaking other types of photography work.

Ongoing

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

Avoidance - not performing an activity.

Reduction - reducing the severity of the loss.

Risk retention - self insurance.

Risk transfer - insurance, contracting out the risk.

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

Operational Risk

Probability

1-5

Severity

1-5

Score

PxS

Action to Prevent/Manage Risk

Damage/Theft/Fire to equipment

1

5

5

Equipment to be insured - on site and in transit.

I.T. Failure

1

4

4

Backups will be performed 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

1-5

Severity

1-5

Score

PxS

Action to Prevent/Manage Risk

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 Indian institute of professional photography 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

Sport Photography

Product Photography

Legal Risks

Probability

1-5

Severity

1-5

Score

PxS

Action to Prevent/Manage Risk

Copyright Issues

3

2

6

Licensing will be provided to all clients to protect both the client and the business. The Indian institute of professional photography membership provides legal advice and documentation for copyright issues.

11. Financial Plan

Financial Summary

Photography businesses usually require a significant initial investment in equipment and facilities. However the owner of Real-Time Fashion Photography has been an freelance photographer for many years and possesses professional-level photographic equipment to get the business off to a good start. In addition, the will be business, with 11 month fixed deposit towards land. The charts and tables that follow demonstrate that these considerations, plus the support of Work and Income, allow Real-Time Fashion Photography to function with no debt and limited overheads. This gives the business a quicker break-even point and increased profit margins from the start. As Real-Time Fashion Photography grows, a debt-free philosophy will be always maintained.

Although Real-Time Fashion Photography begins with little extra cash, our growth over the first year allows the business to gain financial ground quickly. Thanks to the provision of the Enterprise Allowance the cash flow is expected to be positive from the first month and the months where there is negative cash flow is generally preceded by higher income months due to seasonal fluctuations.

Sales Forecast

Real-Time Fashion Photography wishes to maintain a steady rate 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 fashion portfolio sessions will be the slowest to grow because they require initial marketing efforts and advertising.

Months

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Basic Portfolio

14

14

18

18

20

24

24

22

20

24

28

30

Premium Portfolio

2

2

5

6

6

8

8

6

6

8

10

12

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 services provided are limited by the pricing of both direct and indirect competitors. In undertaking market research the costs for services were also tested with potential 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.

Types

No of Photographs

Outgoing or Travel

Charges

Basic Portfolio*

16

No

30000

Premium Portfolio*

25

Yes

45000

Both charges include Stylist, Make-up Artist, including all taxes and no additional cost.

Financial Statements and Cash flow

The projected statement of financial performance for the 12 months ended March 2012 and a 12 month cash flow is attached.

The following notes pertain to the cash flow.

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

2. The Enterprise Grant is shown as a separate line of income. Expenditure for this grant is set out in section 4.5 Start-Up Summary and repeated below.

Start-Up Costs

Value

Image Manipulation Software

40000

Photo Printer

30000

Website Development

40000

Business Cards

20000

Brochures and Fliers

20000

Advertising

10000

Yellow Pages Ad

50000

210000

3. A provision for Insurance of 40000 has been made.

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

5. It is anticipated that a Net profit of 957500 will be made for the first 12 months trading. Taxation has been calculated on this profit as per the table below.

Taxation Allowance

 

Tax Rate

 

Annual Taxable Income

957500

 

 

Income Under 200000

0%

0

Income 200001 to 500000

10%

0

Income 500001 to 1000000

.

20%

191500

Total Tax

 

 

191500

5. An amount of 122500 for depreciation has been allowed for, based on capital purchases as well as a high-end digital camera, vehicle, 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 can only be completed once I have run a vehicle log book.

Description

Value

Months Owned Prior to End of Year

%DV

Deprication Claimed

High-End Digital Camera

150000

12

10

15000

Vehicle

760000

12

10

76000

Lens

100000

12

10

10000

Office Desk

15000

12

10

1500

Image Manipulation Software

40000

12

10

4000

Photo Printer

30000

12

10

3000

Lighting Equipment

100000

12

10

10000

Air-conditioner Refrigerator

30000

12

10

3000

 

1225000

 

 

122500

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 -Basic Portfolio

350000

350000

450000

450000

500000

600000

600000

550000

500000

600000

700000

750000

6400000

Sales - Custom Framing

90000

90000

225000

270000

270000

360000

360000

270000

270000

360000

450000

540000

3555000

Total Income

440000

440000

675000

720000

770000

960000

960000

820000

770000

960000

1150000

1290000

9955000

Outgoings

Advertising/Marketing

406000

106000

406000

106000

406000

106000

406000

106000

406000

106000

406000

106000

3072000

Rent

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

600000

Repairs and Maint.

10000

10000

10000

10000

10000

10000

10000

10000

10000

10000

10000

10000

120000

Power

15000

15000

15000

15000

15000

15000

15000

15000

15000

15000

15000

15000

180000

Vehicle fuel

10000

10000

10000

10000

10000

10000

10000

10000

10000

10000

10000

10000

120000

Telephone

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

24000

Internet

5000

5000

5000

5000

5000

5000

5000

5000

5000

5000

5000

5000

60000

Stationery/Printing

20000

20000

20000

20000

20000

20000

20000

20000

20000

20000

20000

20000

240000

Professional Fees

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

600000

General Expenses

10000

10000

10000

10000

10000

10000

10000

10000

10000

10000

10000

10000

120000

Wages

183000

183000

183000

183000

183000

183000

183000

183000

183000

183000

183000

183000

2196000

Water

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

24000

Tax account provision

40000

40000

40000

40000

40000

40000

40000

40000

40000

40000

40000

40000

480000

GST

52800

0

133800

0

178000

0

230400

0

190800

0

253200

0

1039000

Total Outgoings

855800

503000

936800

503000

981000

503000

1033400

503000

993800

503000

1056200

503000

8875000

CASH FLOW

-415800

-63000

-261800

217000

-211000

457000

-73400

317000

-223800

457000

93000

787000

1079200

Balance

-415800

-478800

-740600

-523600

-734600

-277600

-351000

-34000

-257800

199200

292200

1079200

Projected Statement of Financial Performance

for the 12 months ended March 2012

Sales

9955000

Gross profit

9955000

Less Expenses

Advertising/Marketing

3072000

Rent

600000

Repairs and Maint.

120000

Power

180000

Water

24000

Vehicle Fuel

120000

Telephone

24000

Internet

60000

Stationery/Printing

240000

Professional Fees

600000

General Expenses

120000

Wages

2196000

Depreciation

122500

GST

1039000

Tax Account Provision

480000

Total Expenses

8997500

Profit/Loss

957500

Projected Balance Sheet 2011-2012

Assets

Amount

Liabilities

Amount

Vehicle

684000

Profit and loss account

957500

Camera

135000

Fixed Deposit

550000

Lens

90000

Taxes

191500

Light equipments

90000

Tax account provision

480000

Furniture

13500

Suspense account

25200

Photo-Printer

27000

Air-Conditioner and refrigerator

27000

Image manipulation software

36000

Cash in hand

1079200

Computer

22500

2204200

2204200