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CLASS -
2014-2015
SPECIMEN PROFORMA OF PROJECT REPORT
(PHOTOGRAPHY STUDIO)
PROJECT REPORT OF THE ENTERPRISE
NAME OF THE UNITS AND ADDRESS
Ms. Duggal photography studio
Greater Kailash
TELEPHONE
Office xxxxx xxxxx
Personal xxxxx xxxxx
NAME AND ADDRESS OF THE PROMOTER
S. Amarjeet Duggal
D-!!" Mayapuri"
#e$ Delhi - %%!&
CONSTITUTION OF THE FIRM
Proprietor firm
QUALIFICATION OF THE ENTREPRENEUR
% years free lance photography experience
LOCATION
M 'loc( Mar(et
Greater Kailash Mar(et
NAME AND ADDRESS OF THE BANK
)D*+ 'A#K
G,-A.-, KA/0AS) MA,K-.
ACKNOWLEDGEMENT
/ am 1ery than(ful to e1eryone $ho all supported me" for / ha1e
completed my project effecti1ely and moreo1er on time.
/ am e2ually grateful to my teacher 3333333333 $ho ga1e me moral
support and guided me in different matters regarding the topic. she
had 4een 1ery (ind and patient $hile suggesting me the outlines of
this project and correcting my dou4ts. / than( her for her o1erall
supports.
0ast 4ut not the least" / $ould li(e to than( my parents $ho helped me a
lot in gathering different information" collecting data and guiding me
from time to time in ma(ing this project. Despite of their 4usy
schedules" they ga1e me different ideas in ma(ing this project
uni2ue.
.han(ing you Name
CLASS
EXECUTIVE SUMMARY
! OBJECTIVES
"! MISSION
#! KEYS TO SUCCESS
$! COMPANY SUMMARY
%! COMPANY OWNERSHIP
&! START'UP SUMMARY
(! SERVICES
)! MARKET ANALYSIS SUMMARY
*! MARKET SEGMENTATION
+! TARGET MARKET SEGMENT STRATEGY
! SERVICE BUSINESS ANALYSIS
"! COMPETITION AND BUYING PATTERNS
#! STRATEGY , IMPLEMENTATION SUMMARY
$! COMPETITIVE EDGE
%! MARKETING STRATEGY
&! SALES STRATEGY
(! SALES FORECAST
)! MILESTONES
*! MANAGEMENT SUMMARY
20. PERSONNEL PLAN
"! FINANCIAL PLAN
""! START'UP FUNDINGBREAK'EVEN ANALYSIS
"#! PROJECTED PROFIT AND LOSS
"$! PROJECTED BALANCE SHEET
"%! BUSINESS RATIOS
"&! LONG'TERM PLAN
EXECUTIVE SUMMARY
Ms. D5GGA0 +ommercial Photography" located in and ser1ing
Delhites $ill ser1e small and medium-si6ed 4usinesses and non-
profits for all of their studio photography needs 4y creating
4eautiful shots that ser1e the client7s needs" offering excellent
ser1ice and flexi4ility $ith a personal touch" and offering 1alue-
added ser1ices related to photography. *ounded and directed 4y
1eteran freelance commercial photographer Priyan(a D5GGA0"
Ms. Duggal+ommercial Photography intends to raise `8"9%"%%% 4y
adding limited partners to the 4usiness in order to open a studio
space" hire staff" and undergo a ne$ mar(eting campaign.
Sales and profits from the 4usiness are projected to rise steadily"
from `98":%"%%% re1enues and `8%%"%%% profits in the first year
to `&8%%"%%% re1enues and `;;%"%%% profits in year 8. Gross
margins and net profit margins $ill 4e relati1ely steady at &8<
and 9< respecti1ely.
.he (eys to success for the 4usiness include=
-sta4lishing Ms. Duggal Photography as flexi4le to the needs of
small and medium-si6ed 4usinesses
Offering a range of additional ser1ices" such as printing" photo
editing" and framing of photos in a 1ariety of digital formats
Ma(ing 4usinesses feel at home at studio > part of creati1ity.
OBJECTIVES
Ms. Duggal +ommercial Photography see(s to enter the top three
commercial photography pro1iders in the ,ochester" #3
metropolitan area $ithin fi1e years. ?e see( the follo$ing
o4jecti1es $ithin that fi1e year period=
.o 4e in the top three photography studios of mar(et share
.o exceed `;%% thousand in annual re1enue
.o support fi1e full-time staff
MISSION
Ms. Duggal+ommercial Photography see(s to ser1e small and
medium-si6ed 4usinesses and non-profits for all of their studio
photography needs 4y creating 4eautiful shots that ser1e the
client7s needs" offering excellent ser1ice and flexi4ility $ith a
personal touch" and offering 1alue-added ser1ices related to
photography. Ms. Duggalintends to offer personali6ed ser1ice to
ma(e it easy for small 4usinesses to outsource their photography
needs.
KEYS TO SUCCESS
-sta4lishing Ms. DuggalPhotography as flexi4le to the needs of
small and medium-si6ed 4usinesses
Offering a range of additional ser1ices" such as printing" photo
editing" framing" and production of photos in a 1ariety of
formats
Ma(ing 4usinesses feel at home in studio > part of creati1ity.
COMPANY SUMMARY
Ms. Duggal+ommercial Photography $ill 4e 4ased in a
con1eniently-located studio space $ithin the commercial centre of
Greater Kailash area. .he company $as founded 4y Priyan(a
D5GGA0 in ;;;. *or more than ten years" Ms. Duggal has
operated as a freelance photographer speciali6ing in commercial
shoots" esta4lishing a reputation among small 4usinesses as a
professional and talented photographer. O1er this time" D5GGA07s
4usiness has steadily gro$n" including a 1ariety of returning clients
$ho rely on Ms. Duggalfor their product photography for
pamphlets" 4rochures" $e4sites" and other mar(eting collateral.
Ms. Duggalhas operated $ithout a de1oted studio during this time"
tra1eling to client sites and setting up a studio space $here1er
possi4le.
COMPANY OWNERSHIP
Ms. Duggal +ommercial Photography $as esta4lished as a sole
proprietorship in ;;; and is currently 4eing re-esta4lished as a
limited lia4ility partnership to facilitate the participation of in1esting
partners. +urrently" all shares of Ms. Duggal +ommercial
Photography are o$ned 4y M-! D.//a0!
START'UP SUMMARY
Start-up expenses include the legal fees associated $ith re-
incorporating the 4usiness" permits associated $ith a studio space"
and the 4uild-out of the studio space.
Mar(eting includes a promotional campaign to alert customers and
potential customers to the ser1ices and capacity Ms. Duggal
+ommercial Photography is adding. ,ent includes t$o months of
studio rent to co1er the 4uild-out period and t$o additional months
for a security deposit.
0ong-term assets include additional photography e2uipment
@cameras" tripods" 4ac(drops" *lashes" lightingA that must 4e
purchased.
START-UP ,-B5/,-M-#.S
Start-up -xpenses
0egal ` !8"%%%
Stationery etc. ` %"%%%
/nsurance ` %"%%%
,ent ` C%"%%%
Mar(eting ` "%%"%%%
Studio 'uild-Out ` !%"%%%
.otal Start-up -xpenses ` !"D8"%%%
Start-up Assets
+ash ,e2uired ` "8%"%%%
Other +urrent Assets ` %"%%%
0ong-term Assets ` 9"%%"%%%
.otal Assets ` D":%"%%%
.otal ,e2uirements ` (1+%1+++
SERVICES
Ser1ices to 4e offered include the follo$ing=
Studio commercial photography
On-site commercial photography
Set dressing ser1ices for photo shoots
Photo editing and digital editing $or(
Deli1ery of prints or digital files of photo shoots
*raming of photos
?e4 portal to access digital files from shoots and manage
editing process $ith clients
,ental of the studio space to su4contractors $hen
time allo$s
/n the future" as additional staff is added" there are plans to offer
graphic design ser1ices for the photos ta(en" and to expand to a
multi-room studio to allo$ for multiple shoots simultaneously.
MARKET ANALYSIS SUMMARY
.he mar(et for commercial photography includes all 4usinesses
and non-profits. *or Ms. Duggal +ommercial Photography" the
target mar(et is small and medium-si6ed 4usinesses and non-
profits @those $ith Marriages and parties etc.A 4ased $ithin the city
limits of Delhi #+,.
/n the past t$o years" the mar(et for commercial photography in
+ity has contracted due to the recent economic do$nturn. /t is
estimated 4y the /ndian +ham4er of +ommerce that commercial
photography has shrun( from `8.& million to `D.8 million annual
re1enues since t$o years ago. Small and medium-si6ed
4usinesses $hich formerly used large commercial studios can no
longer afford their rates. .his has created an opportunity for
smaller photography studios $ith lo$er o1erhead and prices to
ser1e this mar(et and sei6e mar(et share in time for a mar(et
ups$ing.
MARKET SEGMENTATION
Ve23 Sma00 B.-45e--e-6 .hese 4usinesses are generally run 4y
their o$ners. Photography needs tend to 4e for their 4asic
mar(eting collateral @signs" menus" pamphlets" 4rochures"
$e4sites" ne$sletters" etc.A. .hese 4usinesses generally 4egin 4y
ta(ing these photographs in-house" 4ut" o1er time" determine that
this method produces su4-standard results. .hey then see(
inexpensi1e freelance photographers $ho can 2uic(ly handle their
needs.
Sma00 B.-45e--e-6 .hese 4usinesses ha1e ongoing and regular
needs for photography of their products and ser1ices" such as
2uarterly catalogs. .hey appreciate esta4lishing relationships $ith
1endors $ho understand their $ay of $or(ing" allo$ them access
to the creati1e process" and reduce the stress of creating
mar(eting materials. .hey prefer to $or( $ith one 1endor for all
photography needs and $ill 4e reluctant to change that 1endor
once it is found.
Me74.m B.-45e--e-6 .hese 4usinesses ha1e mar(eting
departments $hich outsource photography to photo studios. .hey
ha1e a higher 1olume of photography needs than smaller
4usinesses and pay great attention to the 2uality of the images as
$ell as the price. Eolume discounts may 4e needed to retain
4usinesses in this category.
MARKET ANALYSIS
Yea2
Yea2
"
Yea2
#
Yea2
$
Yea2
%
Sales
Photo Shoots `!%:"99! `!8:"CD `9%%"%%% `9&%"%%% `D8%"%%%
Photo -diting `88"9D8 `:;"&8; `;%"%%% `!%"%%% `8%"%%%
Print. > *rame `!9"9! `!;"8!D `8%"%%% `&%"%%% `%%"%%%
Studio ,ental `&":9C `9:"%%% `9:"%%% `D%"%%% `8%"%%%
.otal Sales `98:":9: `9;!"!D `D&:"%%% `:%%"%%% `&8%"%%%
Yea2 Yea2 " Yea2 # Yea2 $ Yea2 %
Direct +ost of Sales
Print. > *rame +ost `&"D; `!"&D9 `9&"8%% `8!"8%% `&8"%%%
Other +ost of Sales `89"D;8 `8C"C; `&"D%% `;%"%%% `!"8%%
Su4total
Direct +ost of Sales
`(+1*)& `)+1%&" `+)1*++ `$"1%++ `)(1%++
MILESTONES
.he promotional mar(eting 4efore the opening of the studio is in a
t$o month period in $hich an initial ?e4 mar(eting and email
mar(eting campaign $ill ta(e place" directed 4y the +-O" $ith
some help from the part-time administrati1e assistant" and
mar(eting 1endors @a ?e4 mar(eting specialistA. *urthermore" ads
$ill 4e placed to specifically highlight the studio as a rental option
for other uses.
?e4 Mar(eting specialist $ill 4e hired to set-up and maintain
Google Ad$ords campaign and to optimi6e $e4site for
search engines.
+onstant +ontact $ill 4e used to maintain email mar(eting
$ith announcements a4out the studio opening" ne$ staff"
and ne$ ser1ices.
MILESTONES
M/0-S.O#-S
Milestone S. Date -. Date 'udget Department
Sign 0ease on
Studio
;F9%F!%9 ;F9%F!%9 ` % Operations
)ire Part-.ime
Staff
FF!%9 FF!%9 ` % Operations
.rain Part-.ime
Staff
FF!%9 !F9F!%9 ` % Operations
Open Studio *or
'usiness
FF!%D FF!%D ` % Operations
?e4 Mar(eting
+ampaign
FF!%9 !F9F!%9 ` C"%%% Mar(eting
-mail Mar(eting
+ampaign
;FF!%D %FF!%D ` "%%% Mar(eting
,ental Studio
Mar(eting
F8F!%9 !F9F!%9 ` "%%% Mar(eting
.otals `+1+++
MANAGEMENT SUMMARY
Priyan(a D5GGA0 $ill act as +-O of Ms. Duggal +ommercial
Photography. Ms. Duggal has extensi1e industry" sales" and
operational experience. /mmediate hires $ill include one part-time
assistant photographer and one part-time administrati1e assistant.
.he +-O $ill 4e responsi4le for sales and mar(eting"
management of all staff" and fulfillment of client ser1ices.
.he first part-time assistant photographer $ill 4e Pa0a> A;.@a" a
recent graduate of the School of Eisual Arts and an accomplished
photographer ne$ in the industry. .he assistant photographer $ill
assist on shoots during training and 4egin to ta(e the lead on
photo shoots o1er time. )e $ill mo1e to full-time $ithin one year if
sales projections are met.
.he administrati1e assistant $ill 4e responsi4le for 4oo((eeping
@accounts paya4le and recei1a4leA" scheduling of shoots and la4or"
and fielding calls for rental of the studio and initial sales in2uiries.
)e or she $ill execute mar(eting campaigns @update $e4site" print
4rochures and portfolios" etcA. )e or she $ill offer customer ser1ice
to ans$er 4asic 2uestions 4y phone or email.
PERSONNEL PLAN
Ms. Duggal +ommercial Photography $ill 4egin its expansion $ith
one part-time assistant photographer and one part-time
administrati1e assistant" $ith the understanding that 4oth positions
$ill gro$ to full-time shortly. -ach year an additional assistant
photographer $ill 4e added.
PERSONNEL
PERSONNEL PLAN
3ear 3ear ! 3ear 9 3ear D 3ear 8
+-O ` :%"%%% ` :%"%%% ` :%"%%% ` :%"%%% ` :%"%%%
Assistant
Photographer
`99"&9: `DC"%%% `D;";!% `8";& `89";;9
Administrati1e
Assistant
`;"%; `!C"9DD `D%"%%% `D8"%%% `8%"%%%
Assistant
Photographer !
`% `9";D! `8"%%% `9%"%%% `9"!%%
Assistant
Photographer 9
`% `% `% `8"%%% `98"%%%
Assistant
Photographer D
`% `% `% `D `8"%%%
.otal People 9 9 D : &
T8:a0 Pa32800 ` !"&88 `8%"!C: `:D";!% ` !%";! `!D8";9
FINANCIAL PLAN
.he launch of the 4usiness $ill 4e financed 4y the founder7s
in1estment and credit and 4y in1estments from limited partners. /n
exchange for `8"9%"%%% in1estment in the 4usiness at startup"
limited partners $ill recei1e D;< o$nership shares. .he initial
funding re2uirements are modest for the 4usiness.
.he gro$th of the 4usiness" 4eyond the first year" $ill 4e financed
4y the free cash flo$s generated 4y the 4usiness. .his $ill allo$
for the expansion of staff to include additional photographers" the
ramping up of mar(eting expenditures" and the resulting increase
in sales. Only one photographer $ill 4e added per year in order to
ma(e sure that there is time for ade2uate training of ne$ staff.
START'UP FUNDING
*unding for the 4usiness is in part from personal loans"
credit cards" and cash in1estment 4y the o$ner" Priyan(a
D5GGA0. .he remainder of funding $ill 4e from one to
three limited partners in the form of e2uity in1estment.
START-UP FUNDING
Start-up -xpenses to *und ` !D"8%%
Start-up Assets to *und ` D:"%%%
.otal *unding ,e2uired ` &%"8%%
Assets
#on-cash Assets from Start-up ` 9"%%%
+ash ,e2uirements from Start-up ` 8"%%%
+ash 'alance on Starting Date ` 8"%%%
.otal Assets ` D:"%%%
0ia4ilities and +apital
0ia4ilities
+urrent 'orro$ing ` 8"%%%
0ong-term 0ia4ilities ` 8"%%%
Accounts Paya4le @Outstanding 'illsA ` !"8%%
.otal 0ia4ilities ` !"8%%
+apital
O$ner > 0imited Partners ` 8"%%% G ` 89"%%%
.otal Planned /n1estment ` 8C"%%%
0oss at Start-up @Start-up -xpensesA @` !D"8%%A
.otal +apital ` 99"8%%
.otal +apital and 0ia4ilities ` D:"%%%
T8:a0 F.5745/ ` &%"8%%
BREAK'EVEN ANALYSIS
.he 4rea( e1en for the 4usiness is high
As the salaries of staff are relati1ely fixed.
Monthly 'ills and other -xpenses are also to 4e met.
BREAK-EVEN ANALYSIS
Monthly ,e1enue 'rea(-e1en `!!"!!C
Assumptions=
A1erage Percent Earia4le +ost !%<
E-:4ma:e7 M85:;03 F4Ae7 C8-: `&"C%D
PROJECTED PROFIT AND LOSS
Gross margins are expected to remain consistent" as most costs of
the 4usiness are not direct costs of sales. .he greatest cost of the
ser1ice is la4or" $hich is part of salaries and not cost of sales" for
example.
/n year !" profit is expected to drop as capacity is increased to
prepare for gro$th. .his $ill rectify in future years as sales come in
line $ith the payroll expenses.
PROJECTED BALANCE SHEET
.he 4usiness is projected to sho$ gro$th in retained earnings
@$hich allo$ for di1idends to 4e paidA as there are not su4stantial
additional capital expenditures needed after the launch. .here $ill
4e healthy gro$th in net $orth o1er the first fi1e years of operation"
as additional de4t is not re2uired to fund the 4usiness.
PRO FORMA PROFIT AND LOSS
3ear 3ear ! 3ear 9 3ear D 3ear 8
Sales `98:":9
:
`9;!"!
D
`D&:"%%
%
`:%%"%%
%
`&8%"%%%
Direct +ost of Sales `&%";C: `C%"8:! `%C";%
%
`D!"8%
%
`C&"8%%
.otal +ost of Sales `&%";C: `C%"8:! `%C";%
%
`D!"8%
%
`C&"8%%
Gross Margin `!C8":8
%
`9"8:! `9:&"%
%
`D8&"8%
%
`8:!"8%%
Gross Margin < C%.%< &;.D:< &&.!< &:.!8< &8.%%<
-xpenses
Payroll `!"&88 `8%"!C
:
`:D";!
%
`!%";!
`!D8";9
Mar(etingFPromotion `9:"%%% `9:"%%% `8%"%%% `:%"%%% `&%"%%%
Depreciation `:"%%% `:"%%% `:"%%% `:"%%% `:"%%%
,ent `!D"%%% `!8"!%% `!:"D:% `!&"&C9 `!;"&!
5tilities `!"D%% `9"%%% `9"8%% `9"C%% `D"!%%
/nsurance `!"D%% `9"%%% `9"8%% `D"%%% `D"8%%
Payroll .axes `C"%; `!!"8D9 `!D"&9C `9%"!CC `9:"&&;
Other `!"%%% `D"D%% `&"%%% `!%"%%% `!8"%%%
.otal Operating -xp. `!9":D
:
`!:%"D!
;
`!;:"C `989"&;
!
`D!%"CD8
Profit @/nt. > .axA `&!"%%D `8"9D `&%";C! `%9"&%
C
`D":88
-'/.DA `&C"%%D `8&"9D `&:";C! `%;"&%
C
`D&":88
.axes /ncurred `!"D:D `8"9D% `!"!;8 `9"! `D!"D;&
#et Profit `%+1+)" `#%1(*# `$*1&)( `("1%*& `**1%*
#et ProfitFSales $!+$< *!#< +!$$< "!+< #!""<
PRO FORMA BALANCE SHEET
Assets @+. AssetsA 3ear 3ear ! 3ear 9 3ear D 3ear 8
+ash `8%"%D; `C;"8C! `!";:D `:&"%D: `!!&"&:%
Acc. ,ecei1a4le `!D"!D; `!&"8;C `99"8% `D!"!!C `8!"&C8
Other +. Assets `"%%% `"%%% `"%%% `"%%% `"%%%
.otal +urrent Assets `&8"!;; `C"C% `8:"D:: `!%"!&D `!C"8D:
Assets @0ong-termA
0. .erm Assets `9%"%%% `9%"%%% `9%"%%% `9%"%%% `9%"%%%
Acc. Depreciation `:"%%% `!"%%% `C"%%% `!D"%%% `9%"%%%
.otal 0ong-term Assets `!D"%%% `C"%%% `!"%%% `:"%%% `%
.otal Assets `;;"!;; `9:"C% `:C"D:: `!:"!&D `!C"8D:
0/A'/0/./-S A#D +AP/.A0
+urrent 0ia4ilities
Accounts Paya4le `8"&& `:"C%D `!%";; `!:"!8; `9!"CDC
.otal 0ia4ilities `8"&& `:"C%D `!%";; `!:"!8; `9!"CDC
Paid-in +apital `8C"%%% `8C"%%% `8C"%%% `8C"%%% `8C"%%%
,etained -arnings @`!D"8%%A `!8"8C! `9;"&C& `8;"D!% `;"89;
-arnings `8%"%C! `98"&;9 `D;":C& `&!"8;: `;;"8;
.otal +apital `C9"8C! `;"9&8 `D&"D&D `;%"%8 `!DC":;C
.otal 0ia4ilities> +apital `**1"** `#&1)+ `&)1$&& `"&1"($ `")1%$&
#et ?orth `)#1%)" `*1#(% `$(1$($ `*+1+% `"$)1&*)
LONG'TERM PLAN
.he profita4ility of the company $ill increase in a4solute terms $ith
gro$th. )o$e1er" the gross margins and net profit margins $ill not
increase dramatically o1er time as the additional gro$th in
re1enues re2uires additional direct la4or. .o maintain the
reputation of the company" this la4or cannot 4e performed 4y less
s(illed" lo$er-$age photographers.
As re1enues gro$ and additional photographers are hired" the
+-O $ill focus a greater percentage of time on sales and
prospecting. .his $ill allo$ for steady gro$th in re1enues $hile the
4rand of D5GGA07s +ommercial Photography 4ecomes
esta4lished in the mar(et. A larger studio space $ith multiple
rooms can 4e leased after a critical mass of utili6ation has 4een
achie1ed $ith the current space. .his $ill allo$ for continued
gro$th.