Ashley grace photography business plan

The idea of establishing a small studio at residential home is informed by the fact that renting a studio is too costly which will make the business less profitable. Residential areas also have a lot of people who will be potential customers since the portrait photography services which they could have sought elsewhere has now been provided in the neighborhood making it cheaper to acquire the services. The ability of these services to be accessed within close proximity will promote consumer confidence giving Ashley Grace Photography competitive edge over the others located elsewhere. Ashley Grace Photography will charge reasonable prices to their clients, provide quantity discounts to those who take a certain number of photos and above and also provide after-sales services such as mounting memorable pictures of clients at prominent places of their choice.

Digital files of duplicate photos will also be kept for free in case they might require in the future due to the loss of original photos, this will go a long way in establishing long-lasting relationships with clients. We believe in going above and beyond the call for duty to make sure our client’s time is valued. Values and Principles Professionalism- Ashley Grace photography will seek to produce high-quality photos that exceed client expectations in all aspects. Service to others- Ashley Grace photography will seek to earn its success through equitable service to all. Efficiency- Ashley Grace photography will seek to carry its operations efficiently in order to thrive in the industry full of competitors. Reliability- Ashley Grace photography will seek to meet customer’s specifications by producing high-quality photos within the timelines agreed upon.

Ashley Grace photography will provide numerous benefits to its customer's such competitive prices, timely delivery of their product, delivery of quality products, confidential photo shoots to newborns since it's done in the residential area, accessible services since the residential studio is in close proximity to potential customers. Ashley Grace photography will use different digital cameras and recent computer image- manipulating software including Adobe Photoshop to deliver high-quality photos to its clients. Also with the use of advanced technology Ashley Grace photography will ensure that customer satisfaction will be at the heart of its operations. Ashley Grace photography will also guarantee its customers of the safe free digital backup file in our computers so that in the event of an unforeseeable occurrence such as theft or fire special moments will not be lost forever as they can easily be retrieved in our back up files.

Ashley Grace photography will also guarantee its costumers of after sales services such as laminating of these photos to keep them clean and watertight; also we will be mounting special photos such as those of wedding ceremonies in a prominent position of client’s choice. Photography studios have also shifted to digital format because it provides a venue for easy operations such as photo processing and manipulation. This platform also enables clients too easily and affordably access digital files hence this is the trend in which we’ll seek to capitalize on. Growth rate The growth rate will be based on increased customer service at the actual events accessioned by efficiency, affordability and high-end customer service and products. The growth rate will be 1.

This growth is reflected in the accompanying chart and graph. Ashley Grace Photography will be offering onsite photography which is easier to accomplish with digital processing. Our strategy will, therefore, be convenience, speed, and quality. Business strategy Ashley Grace photography key strategy element is to reach target customers in the neighborhood, especially newborn babies immediately after they live hospital. The company will also seek to establish a long-term relationship with parents and relatives since these clients could want baby photos multiple times in a year. Our company will take the initiative to deliver the photos taken at the residential studio to clients due to its close proximity to the studio. Using digital platforms the company will then distribute digital images affordably.

Marketing strategy Ashley Grace photography target markets are special memorable events such as adventures and weddings, with this kind of market onsite photography comes in handy for those who might not have time to do studio. The company will also be taking the initiative to deliver photos to clients for free, schedule appointments to mark special occasions and provide their services at an affordable price. There will also be targeted marketing efforts to families of newborn babies. Pricing Ashley Grace photography prices are competitive compared to those of other photographers, in addition, we will provide a free digital platform for easy access to our products. Our target market will not only desire photography for the preservation of memory but also for their businesses.

Financial forecasts Key assumptions We assume that our competitors will not be able to use our strategy within the first two years. We also assume that a stable economy with considerable growth and a consistent rise in interest rates will prevail. Financial statements Ashley Grace photography income statement Year 1 Year 2 Year 3 Sales ($) 120000 180000 260000 Direct cost of sales($) 100000 150000 200000 Other cost of sales ($) 0 0 0 Net profits ($) 20000 30000 60000 Cash flow statement Pro forma cash flow Year 1 Year 2 Year 3 Cash Received Cash from Operations Cash Sales $121, 600 $178,400 $247,000 Sub-total $121, 600 $178,400 $247,000 Additional cash received $0 $0 $0 Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current borrowing $0 $0 $0 New other liabilities $0 $0 $0 New Long-term liabilities $0 $0 $0 Sales of current assets $0 $0 $0 Sales of long-term assets $0 $0 $0 New investments Received $0 $0 $0 Sub-total $121, 600 $178,400 $247,000 Cash spending $42,000 $44,000 $50,000 Bill Payments $52, 845 $76, 202 $102, 464 Subtotal on operations $94, 845 $120, 202 $152, 464 Long-term Liabilities Principal Repayment $11,520 $12,500 $13,500 Purchase other current assets $0 $0 $2000 SUBTOTAL CASH SPENT $106,365 $132,702 $167,964 Net Cash Flow $25,435 $55,898 $99,236 Cash balance $36,205 $92,103 $191,339 Balance Sheet Pro forma Balance sheet Year 1 Year 2 Year 3 Assets Current Assets Cash $36, 205 $92, 103 $191, 339 Other Current Assets $10, 000 $10, 000 $12, 000 Total Current Assets $46, 205 $102,103 $203, 339 Long-term assets $60, 500 $60, 500 $60, 500 Accumulated Depreciation $15, 960 $31, 920 $47, 880 Total long-term assets $44, 540 $28, 580 $12, 620 Accounts payable $5,200 $6,358 $8,606 Subtotal current liabilities $5,200 $6,358 $8,606 Long-term Liabilities $88, 480 $75, 980 $62, 480 Total Liabilities $93, 680 $82, 338 $71, 086 Paid-in capital $10, 000 $10, 000 $10, 000 Retained Earnings $28, 730 $12, 935 $38, 345 Earnings 15, 795 51, 280 96, 528 TOTAL CAPITAL ($2,935) $48,345 $144,873 TOTAL LIABILITIES AND CAPITAL $90,745 $130,683 $215,959 Net Worth ($2,935) $48,345 $144,873 Break-even Analysis The expenses are displayed below but with little direct unit costs, the monthly sales needed to be made to break even are shown below.