Start-up Funding | |
Start-up Expenses to Fund | $800 |
Start-up Assets to Fund | $14,600 |
Total Funding Required | $15,400 |
Assets | |
Non-cash Assets from Start-up | $500 |
Cash Requirements from Start-up | $14,100 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $14,100 |
Total Assets | $14,600 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $400 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $400 |
Capital | |
Planned Investment | |
Investor 1 | $15,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $15,000 |
Loss at Start-up (Start-up Expenses) | ($800) |
Total Capital | $14,200 |
Total Capital and Liabilities | $14,600 |
Total Funding | $15,400 |
As stated in the Company Summary section, Evergreen TV Productions is a company of three divisions, selling both products and services according to each division.
Services include:
Products include:
We stand apart from our competition in price and value.
Home Division: Currently, production companies are hesitant to offer video scrapbooks due to the amount of work necessary for a minimal return on revenue. They would much rather produce corporate productions with a high fee. Locally, a few companies will produce these scrapbooks, but they charge enormous fees. The reason for this is that they do not have a business system in place to allow them to produce these scrapbooks on a timely schedule with minimal cost. From an informal phone survey we gathered rates for a 10 minute video from $500 to $2,000. Additionally, this phone survey showed no true committment to the production elements of music and digital effects. Again, this is due to having no business system in place to provide these essential elements. It can be compared to a hamburger stand trying to become McDonald’s with no actual system in place to keep quality consistent.
Tour and Travel Division: We offer high value and quality to our customers, and treat every project as if it were the only project. Production companies in general have a reputation for sloppy and careless producing, for overbooking projects, and for inconsistent and exorbitant charges. Our referral acceptance program ensure we will not overbook, we will have a higher degree of responsibility with each customer who is referred, and we cannot charge one customer amount X, and another customer amount Y, as they will probably know each other. The referral program sets us apart, and reassures otherwise wary customers.
B2B Division: CONUS sells yearly subscriptions of regional news to tv stations nationwide for $20,000/year. Dr. Dean Edell sells yearly subscriptions of health news only, for nearly $30,000/year. MedStar sells yearly subscriptions of health news only, for $24,000/year. Mr. Food, Mrs. Fixit, TravelNet and many others all rank in the $20,000 and above category, and all offer only one topic, either health, food, travel, or how-to’s, but not something from each.
At our online website, EvergreenTV Productions offers a variety of topics to chose from, and stations can pick their own five stories each week to match their news or specific story trends, at a lower cost. They can customize their filler news, instead of throwing in whatever is available, making their newscasts flow smoothly, and eventually helping them generate viewers and thus sales, and all at a much more affordable cost.
EvergreenTV Productions will rely heavily on presentations to retirement villas, business clubs, and other social outlets for advertising the Home Division. The B2B Division will rely upon one on one sales calls to colleges/universities and tv stations, and upon the Internet for e-mails, faxes and advertising of products and services.
All end product supplies can be purchased locally from Office Depot, Sam’s Club, or Staples, or from a production company on the Internet at minimal cost. End product supplies include tape labels, and VHS/Beta/DVC video tape.
For the B2B Division, we do not buy our stories, but trade our marketing and resume services to students for their stories. A legally drawn-up contract is held between EvergreenTV Productions and each student, once his/her story is accepted. By agreeing, the student gives us the story for any commercial use, and he/she agrees to use that story only in job-searching. We then sell the story for profit and expenses (such as video tapes for dubbing purposes).
We also own over $12,000 worth of video and editing equipment, and can do our own stories, at no further cost to the company.
We use both Windows and Macintosh technology in our company. Windows and Office products are used mainly for all databases, word processing, and accounting needs. Macintosh products are used primarily for video editing, and loading video onto our website. We also have all the necessary components for a digital video production center, including cameras, mini-disc recorders, microphones, and lights. All other items can be rented per project at a low cost. Eventually, we would like to include DVD-R drives on our computers, to allow us to copy to DVD, rather than simply VHS tape (Home Division).
In addition to standard computers, scanner-copier-printer centers, we also use electronic faxing via the Internet, cell phone, DSL Internet subscriber line and several video tape recorders of various formats, including Beta SP, SVHS, DVC, and 3/4″. We are currently in communication with a media streaming Internet company regarding posting these news stories on the Internet to be downloaded directly to the tv stations who purchase the stories. This would eliminate the need for hard tape, and would give the stations instant access to stories they could download to their specific tape format.
Within the next five years, we will add storefronts statewide, all following consistent guidelines in our business system.
We would like to franchise this store nationwide.
Within the next three to five years, we will add production of our own brand of travel news to our product line.
Home Division: There are no production companies in the area which currently focus on video scrapbooks. Several smaller companies “can” and “will” produce this for a high cost to the customer. With the advertising by both Apple and Sony focused on home digital video production, the awareness of this type of production is growing within the community, but as yet, no company has stepped up to the plate to offer this product. Consumers are becoming more educated about what can be done, but they do not know how to do it themselves.
For several months, EvergreenTV Productions has promoted this concept via word of mouth to small businesses, consumers on the street, and educated professionals. All show a keen interest in buying the product.
Tour and Travel Division : Many production facilities exist in the Tampa Bay Area; and all are capable of producing professional projects. As this is a referral division only, we do not plan to compete regularly for business. Instead, we will build a web of quality prospects by maintaining high productions standards, and accepting only those clients who come highly recommended. This is not our main focus, but is a tool to generate business and reputation.
B2B Division: EvergreenTV Productions focuses on the bottom 115 (Nielsen) tv markets. These are the markets whose station budgets don’t easily allow an expense of $20,000+ per year for programming services. We will offer the affordable alternative.
EvergreenTV Productions conducted a mail-in survey of 113 stations in the bottom 65 markets. The majority of these do subscribe to CONUS, Dr. Dean Edell, MedStar, or Medical Breakthrough. Of the 10 responses received, four stations did not subscribe to any news provider, but did indicate an interest in “filler news” at a reasonable cost. The conclusion is that many stations need stories, but cannot stretch their budgets to accommodate the high cost of programming. At this time, no service exists like EvergreenTV Productions programming alternative. Numbers for projected growth are not possible without history.
Three loosely defined market segments are identified. The “Home Division” category is by far the largest potential segment and represents the consumer most likely to be our client.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Home Division | 9% | 22,000 | 23,980 | 26,138 | 28,490 | 31,054 | 9.00% |
Tour and Travel Division | 4% | 756 | 786 | 817 | 850 | 884 | 3.99% |
B2B Division | 1% | 45 | 45 | 45 | 45 | 45 | 0.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 8.83% | 22,801 | 24,811 | 27,000 | 29,385 | 31,983 | 8.83% |
Home Division: Strategy for the home division is two-fold. First, we must find the appropriate means to communicate our product to potential customers. Because nearly everyone today has the ability to take photos and has a wide selection of photos at home, we must first narrow down our customer base by appealing to the emotions people attach to their photos. Older persons with larger families are more inclined to want to share their family histories. Newlyweds want their family and friends to share in their newfound happiness. By emphasizing these traits (nostalgia and euphoria) we can begin to gain a following for our product. Second, we must find a suitable location for our storefront, which enables us to find customers who share these traits. Malls and movie theaters appeal to “togetherness,” shopping together for gifts, weekend outings, brunch/lunch/dinner dates. The right location will give us access to our primary customers, those who will help us launch the product in the area by word of mouth.
Tour and Travel Division: This division’s strategy relies entirely on our referral program. Doctors’ offices and travel agencies give us a wider demographic schematic, as patients and families of patients are confined to a waiting room during a visit. Instead of watching afternoon televised programming, doctors will be able to provide their clients with informative, educational and entertaining programming as compared to many daytime talk shows.
B2B Division: Because EvergreenTV Productions utilizes the stories of university students, it is important to recognize the average age of a station’s reporters. A previous survey conducted by our company did confirm our experience, in that most small market tv stations hire only young “cub” reporters, as experienced reporters tend to move onward to larger markets and bigger stations. The quality of our product will match the quality of the station’s news. Therefore it is essential to target the bottom markets. This is also important to recognize from the service end of our business, as news directors will be interested in hiring reporters from our pool of news stories.
Home Division: We will be better able to track market growth in this division following the first two quarters of sales. At this time, with no active competition, we expect our growth rate to double and triple weekly. As Tampa Bay is a large retirement community, these numbers could be increasing for several quarters. We then expect to see a slight down curve as the product finds its niche within the community, with a more consistent level of sales.
Home Division: With the advent of digital editing capabilities on home computer systems, more consumers are aware of the potential of creating video scrapbooks, but most are not familiar enough with the technology to accomplish a simple video. Apple and Sony are selling large numbers of these computers despite a recent turndown in the computer industry. Digital still cameras are a must have, with consumers expanding their vocabularies to include “Memory Stick,” “Pixels,” and “Jpegs.” Yet, in the Tampa Bay area, no production companies are actively marketing video scrapbooks. We can use the above product interest, and the continued success of photo processing centers, to create a gauge for interest in this product. However, as with any relatively new product, we will not know the market’s true needs until several quarters of sales.
B2B Division: A void currently exists in the area of news programming. Larger stations are able to budget tens of thousands of dollars per year to support their needs. Smaller stations often rely on extending the weather and sports segments, or sitting on credits at the end of cast to “eat up extra time.” This reduces the newscasts’ value, and thus reduces the price of selling advertising as commercials, which is where tv stations make money.
Other small markets may subscribe to one or two programming services, at the expense of hiring quality personnel. These services limit the news directors and producers, because they have to run whatever story comes down on the satellite link that day. It may have nothing to do with other stories in a cast, or interest to the local viewing audience.
EvergreenTV Productions allows the stations to pick their own stories and run them when needed. In addition, by ordering weekly, they can choose from a constantly upgraded catalogue and pick stories which relate to news they are already running or have run recently. In other words, on a slow news day, CONUS may offer a story from a station in another state about a family lawsuit which has no relevance to that station’s viewers. EvergreenTV Productions, however, may offer a story about “Buying a puppy for your five year old.” It is timeless, and applies to a greater percentage of the viewing audience than the distant family’s lawsuit.
Within the service branch of this division, there is a greater range of competition, but few meet student’s needs. Many news talent agencies and resume services exist. However, none of them offer posting of resumes, marketing of resume tapes, and especially an opportunity to earn professional experience while the student is still in college, at no cost to the student. By positioning themselves with EvergreenTV Productions, students can hone in on various stations who have purchased their stories. They can link directly to those stations for future jobs, rather than send out a multitude of resume tapes in a shotgun style to get a foot in the door. And, they will not have to pay our company 10% of their first salary!
Home Division: The advent of home computers capable of digital editing can certainly be considered a market trend, and one that is highly influential to our home division. As more consumers know of the technology, more interest is created in our product. While large corporations spend millions in advertising to promote these computers, we can take advantage of this advertising second-hand. The interest is created by the large corporations, and we use like advertising and terminology to increase interest in our particular product. A second major trend is with photo processing centers, such as those at Walgreens, offering pictures on CD-ROMS. These centers are already taking pictures to the next level, with the purpose of sharing these memories with family and friends. The logical next step is to put these pictures together in a creative and professional video scrapbook, then copy them to VHS tape or DVD.
B2B Division: One major trend in the television news industry is staffing cut-backs. Newsrooms are using fewer reporters and photographers and replacing them with bought programming. Instead of paying $18,000/year for a reporter and $16,000/year for a photographer, smaller markets are buying news programming services at $20,000/year and saving on salary and health care expenses, while increasing the number of stories running per day. On average, a reporter will turn out one or two stories per day, while CONUS offers the ability to run two or three stories per day.
Another trend focuses on freelancing opportunities for reporters. Many are now working on their own, producing stories bought by several different companies. As tv begins to reflect the magazine industry in freelancing opportunities, more and more reporters will make a living working for themselves. In a long-term analysis, EvergreenTV Productions will be able to utilize these freelancers to do specific stories which fit the mission of our company.
A third trend is greater reliance on the Internet for programming. With the advent of TIVO, viewers can choose what they want to watch when they want to watch it. An even further long-term analysis could lend EvergreenTV Productions the opportunity to provide news that viewers can access specifically without going through their local tv stations. In the short term, local news stations may soon be able to download news stories directly to their control centers, without needing a tape for playback. By initially locating on the Internet, EvergreenTV Productions is putting itself in the position to take advantage of the increasing opportunities of Internet business, while at the present time offering easy access to a catalog of stories for order.
Home Division: We are primarily a production company within the retail industry. Some industries are similar, but as this is new technology, it is a unique industry. At the current time, we know of only a few other production companies which consistently turn out video scrapbooks. The photography industry is similar in creating still pictures for retail.
Tour and Travel Division: We are limiting our production output in this division to a referral basis only. In general, the production company industry is very large, with companies specializing in corporate training videos, tour videos, advertising, etc. They rarely limit their productions to referral only, which means most often they will specialize in one area. To the customer, this means outsourcing to several production companies to meet his needs. A corporate president may have to hire two production companies to produce a training video and a travel video.
B2B Division: We are both a marketing service and news provider. Therefore, half of our business deals within the marketing industry, promoting students, while the other half deals within the news industry, selling news programming to news stations.
Home Division: Most production companies have a full plate with a wide assortment of projects. They are benefiting from the growing need for corporate advertising/projects, and prices on production equipment are continuing to fall.
B2B Division:
Student Services:
Station Services:
Home Division: Customers are accustomed to going into retail locations to make purchases or place orders. Having a storefront will provide them with this opportunity. Initially, we will host presentations to explain the product at various outlets such as retirement villas and apartment clubhouses.
B2B Division: TV Stations buy directly from the programming source. A sales representative may call or visit a station for a programming product, or the station may purchase directly via the Internet.
Initially, it will be vital for us to visit one-on-one with small market stations to obtain a base clientele. Those stations across the country will be targeted via telephone and direct mailing promotional kits. Those stations which responded to our initial marketing survey are prime first clients–those who have already defined their needs according to our questionnaire.
Home Division: As with any retail line, customers feel more comfortable and believe they are truly getting their money’s worth when they are given one-on-one attention. It is this attention we will give them in our 30-minute free consultations. Our customers will be more inclined to refer our business and product to friends and family if they believe we do not see them as simply a sale, but as people with needs being met. At the same time, it is essential we see the photos the customer is bringing in, and have the customer present to ask questions and verify the photo placement within the video. This initial attention to detail will also provide our customers with the knowledge that we will produce exactly the video they have in mind.
B2B Division: TV stations are prone to purchase news stories based on the bottom line. If one programming service becomes too expensive, the station will spin off to another programming service for a few thousand dollars less. Small market tv stations do not have this option, as most services are too expensive for their budgets.
EvergreenTV Productions will offer quality news stories at a very competitive price–in fact, half the cost of most other programming services–to gain access to those smaller markets. In addition, having a variety of news topics makes us a hot choice. Stations do not have to spend thousands for only one brand of news, i.e., health stories. They can choose from a wide variety, health, politics, financial, innovative, unusual, personalities, etc.
Home Division (Video Scrapbook Production Companies):
Family Tree Videos: Strengths: A franchise production company geared toward genealogy, but includes producing video scrapbooks. Good-looking productions revolving around family interviews, documentation, and photos. Weaknesses: The formula is too complex to generate quality products in quantity. Many smaller production companies learn this method first, then give up due to lost time and not enough revenue. Independent Companies: Strengths: Nationwide, dozens of independently owned production companies produce video scrapbooks. Most are your neighbors, businesses you want to trust. Weaknesses: Quality is inconsistent and depends entirely upon the owner’s ability. If you’re not a close friend or family member, you may not get the product you really want or thought you ordered. Due to time constraints and the need for revenue, many of these smaller companies will put video scrapbooks on the back burner for bigger projects, such as weddings.
B2B Division (Programming Services):
Dr. Dean Edell: Strengths: Well known after years of radio and tv broadcasting. Big service, using satellite feeds to get stories to stations. National image, high volume. Weaknesses: Very expensive. At the top of the scale at $24,000+ per year. Limited to one topic, health news. MedStar: Strengths: Competitive pricing, less expensive than Dr. Dean. Utilizes chain of universities for national syndication. Weaknesses: Still too high a cost for smaller markets. Limited to one topic, health news. TravelNet: Strengths: National syndication, high volume. Has satellite feeds to stations. Weaknesses: Generic writing for travel pieces. Limited to one topic, travel news. Too high a cost for smaller markets. Mrs. Fix It: Strengths: Appealing change of gender, national image, excellent writing and presentation. Weaknesses: Too high a cost for smaller markets, limited to one topic, do-it-yourself home/yard/car improvements.
Many other services fall within this category, too many to mention. Some are purely regional and do not appeal nationally. Most are of high cost to small market stations. None that we’ve found offers a variety of news topics.
Home Division: Our competitive edge in producing video scrapbooks is in our business system, which allows us a) to produce large numbers of videos while retaining quality, thus giving more customers a grade A product with a short turn-around time, b) to maintain consistency at every location, so customers can be assured they will get the same quality at one store that their friends/family received at another, and c) to train all employees using consistent customer service guidelines from initial consultation through any complaints/issues.
B2B Division: For TV stations, our competitive edge is having a variety of news topics to offer, and at a much more affordable cost to small market tv stations than larger programming services can offer.
For students, our competitive edge is offering a FREE resume service, FREE marketing service for that first job out of school, and a DIRECT connection to news directors in markets known to hire graduating broadcasting students.
Yearly sales forecasts are shown below and the initial year’s monthly forecast is shown in the appendix.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
Photo Memories | 800 | 2,880 | 4,800 |
News Story Reels | 160 | 1,000 | 2,000 |
Tampa Bay Video | 48 | 50 | 50 |
Other Projects | 6 | 12 | 20 |
Total Unit Sales | 1,014 | 3,942 | 6,870 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Photo Memories | $207.50 | $208.20 | $208.20 |
News Story Reels | $200.00 | $200.00 | $200.00 |
Tampa Bay Video | $47.92 | $50.00 | $50.00 |
Other Projects | $1,000.00 | $1,000.00 | $1,000.00 |
Sales | |||
Photo Memories | $166,000 | $599,616 | $999,360 |
News Story Reels | $32,000 | $200,000 | $400,000 |
Tampa Bay Video | $2,300 | $2,500 | $2,500 |
Other Projects | $6,000 | $12,000 | $20,000 |
Total Sales | $206,300 | $814,116 | $1,421,860 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Photo Memories | $3.00 | $4.00 | $4.00 |
News Story Reels | $15.00 | $15.00 | $15.00 |
Tampa Bay Video | $4.79 | $5.00 | $5.00 |
Other Projects | $354.17 | $500.00 | $500.00 |
Direct Cost of Sales | |||
Photo Memories | $2,400 | $11,520 | $19,200 |
News Story Reels | $2,400 | $15,000 | $30,000 |
Tampa Bay Video | $230 | $250 | $250 |
Other Projects | $2,125 | $6,000 | $10,000 |
Subtotal Direct Cost of Sales | $7,155 | $32,770 | $59,450 |
Home Division: Strategic alliances with photographers, photo processing centers and travel agents will be key to generating sales in the first few quarters. We plan to initiate a co-marketing campaign, by possibly adding on 30-second commercials at the end of each video, promoting a photographer or travel agency. These will be tasteful and placed at the end of the tape, but will also co-promote a like business. In the future, we could sell these spots to like businesses to generate revenue.
Additionally, our alliances with retirement villas will be instrumental from start-up. While these will not involve co-promotions, it will be necessary to build a strong relationship so the villa officials welcome us to their facilities.
B2B Division: We heavily depend upon building a strong alliance with schools to create a substantial inventory to generate sales. The greater the size of inventory, the greater the variety we have to offer stations. We need to concentrate on making as many contacts with schools as possible. If we cannot offer students a marketing position, i.e., a substantial time frame in which we market their stories and post their resumes, we will not have their interest and it would follow, their stories to add to our inventory.
After the first year, the inventory will grow at a consistent rate. However, the first year’s inventory size could well determine our company’s sales success.
Home/Travel Divisions:
Home Division: Initially, for people celebrating an event or recognizing a lifetime of memories who would like to share photos of those memories in a video scrapbook with friends and family, our videos provide a special and unique gift opportunity. Unlike standard production companies which produce video scrapbooks in a random and time-consuming fashion, our videos meet consistently professional standards in quality in a timely manner. (See Competitive Comparison section.)
B2B Division: For students about to graduate and seek their first job within the tv news industry, EvergreenTV Productions offers an incredible marketing and resume posting service. Unlike www.tvjobs.com and others, it offers these services for free, and for a longer period of time (i.e., three months as opposed to one month).
For small market tv stations which need news stories daily to fill their newscasts, EvergreenTV Productions offers an affordable programming service. Unlike larger programming services such as Dr. Dean Edell and TravelNet, it offers a variety of programming at half the cost.
Home Division: Our business system has helped define our pricing strategy. If our video scrapbooks are too time-consuming, the customer will be charged an exorbitant amount. If our video scrapbooks are even middle to low quality, we cannot charge the customer low enough. By making the productions both time-efficient and consistent in high quality, we can maximize our pricing to acceptable market levels. Our strategy is also based upon the fact that we are introducing video scrapbooks on a large scale into the market, with no previous history for this product. As our video style becomes more popular, we will be able to adjust the pricing accordingly. We are offering four package styles from which our customers may choose. By charting the most popular package, we will better determine the right price for our product.
B2B Division: Our pricing strategy is key to our offering. If we charge too much, or even 3/4 the price of larger programming services, we are undercutting our potential orders. The market of small market stations cannot bear the higher prices offered by larger programming services.
Likewise, by offering a free resume and marketing service to students, we are ensuring continued interest in our service in exchange for news stories. We need to be positioned to offer payment for these stories a few years down the road. As the popularity of EvergreenTV Productions grows, so will the number of programming services offering similar services.
Home Division: Initially, we will depend upon presentations and business relationships to reach new customers.
B2B Division: We depend on direct contact with communications deans and professors as our main way to reach students. That contact will be made to specific schools.
Home Division: Our primary distribution will be through our storefront, which will also be the order center, consultation location, and production office. To make it easier for our customers at retirement villas, we offer to accept orders at and deliver to these locations.
B2B Division: Our distribution will focus mainly around our website, taking orders and processing them through direct mailings. In the initial period, we will be distributing tapes during person-to-person presentations.
We are prepared to mail on order, via the USPS. Stations may order for regular three-day delivery, up to overnight shipments, depending upon their needs.
Part of the business’s success will be based on planned tasks and timely completion of those steps. The table below lists steps, timeline and estimated budgets.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Build Website | 9/7/2000 | 5/31/2001 | $19,000 | LW | President |
Contact 30 Colleges/Universities | 11/1/2000 | 2/28/2001 | $20 | LW | President |
Brochures Photeo Memories | 3/15/2001 | 5/15/2001 | $220 | LW | President |
Write/Finalize Operations Manual | 5/31/2001 | 12/31/2001 | $0 | LW | President |
Store Location | 5/31/2001 | 7/15/2001 | $0 | LW | President |
Office Furniture | 5/31/2001 | 7/31/2001 | $2,000 | LW | President |
Open Photeo Memories Store #1 | 5/31/2001 | 7/15/2001 | $2,000 | LW | President |
Additional Office Equipment | 7/15/2001 | 8/15/2001 | $2,000 | LW | President |
Hire 1st Employee | 7/15/2001 | 8/15/2001 | $30 | LW | President |
Produce 1 Hr Tampa Bay Video | 6/1/2001 | 9/15/2001 | $5 | LW | President |
Sell Tampa Bay Video to Dr’s Offices | 9/15/2001 | 12/31/2001 | $100 | LW | President |
Build Inventory to 15 News Stories | 9/1/2001 | 12/15/2001 | $500 | LW | President |
Build Inventory to 50 News Stories | 12/15/2001 | 3/31/2002 | $500 | LW | President |
Obtain 30 Sales to TV Stations | 12/15/2001 | 4/1/2002 | $1,000 | LW/Sales Rp | B2B Sales |
Hire Employees per Personnel Forecast | 10/1/2001 | 12/31/2001 | $50 | Store Mgr | Home Div. |
Name me | 12/1/2001 | 6/30/2002 | $6,000 | LW | President |
Totals | $33,425 |
EvergreenTV Productions is owned and operated by its founders, Louanne Walters and Bobby Gene Walters. It is a small company with immediate plans for hiring one or two employees per store. Each employee’s responsibilities will be outlined in our business system “Operations Manual.”
As we grow into the Tour and Travel and B2B Divisions, we will evaluate which positions need to be filled first. Long term growth includes plans for an Operations Manager, who will report to the President and handle all accounting and marketing responsibilities. Three managers will answer to the Ops Mgr, one per division. Each manager will be primarily responsible for accounting and marketing within his/her division, and will handle all hiring/training needs.
We currently receive a great deal of advice from outside sources, such as our accountant and attorney; however, we follow the advice which meets our goals and needs.
As a start-up, our divisions and departments are inter-related and handled for the most part by Louanne Walters. With time and revenue, we will expand to accommodate several departments: sales & marketing, service and administration, product development, and finance. Each division manager will fill these departments according to specific needs and the company’s business system operations manual.
The following chart outlines the anticipated organizational set-up for the first three to five years of EvergreenTV Productions, Inc.
Louanne Walters, president: 33 years old, extensive experience in the radio and tv news industries. Formerly a tv news producer, reporter and anchor. Degree in broadcast communications, seven years with three NBC affiliates (KPOM, Ft. Smith, Arkansas – KRIS, Corpus Christ, Texas – KWQC, Davenport, Iowa) and one year as video programmer with Royal Caribbean International. Extensive public relations background as anchor and cruise director with Royal Caribbean International. Strong writing skills, strong story development and news sense. Attending courses at Small Business Development Center USF. Louanne also has strong sales skills, and is formerly a Toyota new car product specialist, and Voice Stream territory representative.
Bobby G. Walters, vice-president: 61 years old, extensive management background during 33 years with USAF. Degree in business and management. Twelve years as manager with local Wal-Mart stores.
We believe we have strong leadership for developing the concept behind EvergreenTV Productions. At present, our weakest area is in accounting. We are currently taking an accounting course produced by “Great Courses on Tape,” focusing on finance and accounting. Additionally, we have hired Jim Wessman, CPA to advise and aid us in the development of EvergreenTV Productions. Jim is a qualified management counselor, and QuickBooks advisor.
We also need to hire division managers with a well-rounded management background, including human resources, accounting, benchmarking and goal-setting abilities.
Following the opening of stores for the Home Division, we will need to hire an operations manager, with an MBA and at least five years experience with a start-up organization.
Details of store staffing is presented in the Personnel Table, below and in the appendix.
We assume hiring employees on hourly pay the first year, and adding a few salaried management positions with benefits the second year. Our management salaries (marketing manager, president, operations manager) as shown below include taxable benefits. Payroll taxes for all employees are shown in the Profit and Loss.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Production Personnel | |||
Photo Editor | $13,500 | $18,500 | $19,000 |
Photo Editor | $12,000 | $18,500 | $19,000 |
Photo Editor | $6,000 | $18,500 | $19,000 |
Photo Editor (2) | $1,500 | $18,500 | $19,000 |
Additional Employees (3 stores) | $0 | $92,500 | $100,000 |
Additional Employees (5 stores) | $0 | $0 | $209,000 |
Subtotal | $33,000 | $166,500 | $385,000 |
Sales and Marketing Personnel | |||
Marketing Manager (President) | $0 | $41,400 | $46,000 |
News Sales Representative | $4,998 | $22,000 | $24,000 |
News Sales Representative Commission | $3,000 | $15,000 | $15,000 |
Other | $0 | $0 | $0 |
Subtotal | $7,998 | $78,400 | $85,000 |
General and Administrative Personnel | |||
Store Manager | $17,600 | $20,000 | $20,000 |
Store Manager Commission | $4,200 | $5,000 | $5,000 |
Store Manager (2) | $3,200 | $20,000 | $20,000 |
Store Manager Commission (2) | $800 | $5,000 | $5,000 |
Store Mgr/Commission (3 & 5 stores) | $0 | $25,000 | $75,000 |
Subtotal | $25,800 | $75,000 | $125,000 |
Other Personnel | |||
President | $37,500 | $51,750 | $69,000 |
Operations Manager | $0 | $46,000 | $63,250 |
Home Division Manager | $0 | $0 | $40,000 |
B2B Division Manager | $0 | $0 | $45,000 |
Other | $0 | $0 | $0 |
Subtotal | $37,500 | $97,750 | $217,250 |
Total People | 8 | 16 | 26 |
Total Payroll | $104,298 | $417,650 | $812,250 |
The most important element in the financial plan is the critical need for additional capital to assist in business operations through the remaining start-up process, and to maintain a positive cash balance for the first fiscal quarters. We do not anticipate any changes to our financial plan through accounts receivables or inventory, as our company operates upon the “payment upon receipt” principal for all goods, and our inventory cycle does not meet the standard criteria.
Moving from a home office to a storefront with employees, introduces greater liabilities. During the past seven month start-up process, we have largely committed to EvergreenTV Productions through personal savings, cashed stocks, personal credit lines and personal long-term loan options.
The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:
We assume access to equity capital and financing sufficient to follow and maintain our financial plan as shown in the tables. We anticipate our financing to hold higher long-term interest than our current loan against stock. We assume that as our company grows, we will be able to utilize a larger credit line, decreasing our expenses in cash. Likewise, our short-term credit line will be available with a lower short-term interest rate, making more cash available.
We assume opening and promoting three stores within the Tampa Bay area before reaching saturation. Likewise, we assume relatively quick initial growth within the Home Division, following our plan of two stores open within the first year, and 10 stores statewide within five years.
We assume many tv markets are, or will become, Internet proficient. We assume most colleges and universities are, or will become, Internet proficient. We assume slow initial growth within the B2B Division. However, the majority of our long-term payments are for one time, or long-term purchases which will not need to be replaced in the first five years.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 13.00% | 13.00% | 13.00% |
Long-term Interest Rate | 0.80% | 0.80% | 0.80% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
The benchmark chart shows the nature of our company. We estimate consistent turns on inventory, as our inventory is available for resale on a constant basis. In our Home Division, we do not keep inventory, but customers bring their photos to us. In our B2B Division, our inventory consists of news stories we will keep on hand for multiple sales. Several stations may purchase the same story, we simply make a copy of that story. Our blank tape inventory will be replenished monthly to avoid keeping a large inventory of tapes.
Our Gross Margin increases with increased sales, but as we have a very low direct cost of sales, this number will only increase fractionally compared to sales.
Sales and Operating Expenses are our closest measurements in this forecast. While sales increase dramatically, operating expenses increase with new stores, additional employees and taxes. However, by maximizing the number of employees within each store, we are also maximizing our location and limiting further expenses that additional storefronts would incur. We are also able to save drastically on advertising expenses, which would naturally increase with each new location.
We assume running costs which include rent, utilities, office expenses, and an average of travel, advertising and miscellaneous costs. Miscellaneous costs are equal to quarterly costs such as business cards, brochures, bulk tape supplies and occasional equipment rental. Payroll increases every other month as we add new employees.
Break-even Analysis | |
Monthly Units Break-even | 51 |
Monthly Revenue Break-even | $10,303 |
Assumptions: | |
Average Per-Unit Revenue | $203.45 |
Average Per-Unit Variable Cost | $7.06 |
Estimated Monthly Fixed Cost | $9,946 |
Profit and Loss projects look very good, with the usual start-up loss limited to the first two months. The monthly projections for the first year are included in the appendix.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $206,300 | $814,116 | $1,421,860 |
Direct Cost of Sales | $7,155 | $32,770 | $59,450 |
Production Payroll | $33,000 | $166,500 | $385,000 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $40,155 | $199,270 | $444,450 |
Gross Margin | $166,145 | $614,846 | $977,410 |
Gross Margin % | 80.54% | 75.52% | 68.74% |
Operating Expenses | |||
Sales and Marketing Expenses | |||
Sales and Marketing Payroll | $7,998 | $78,400 | $85,000 |
Advertising/Promotion | $20,000 | $20,000 | $30,000 |
Travel | $6,500 | $10,000 | $8,000 |
Miscellaneous | $9,500 | $7,500 | $10,000 |
Total Sales and Marketing Expenses | $43,998 | $115,900 | $133,000 |
Sales and Marketing % | 21.33% | 14.24% | 9.35% |
General and Administrative Expenses | |||
General and Administrative Payroll | $25,800 | $75,000 | $125,000 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $1,260 | $3,600 | $6,000 |
Insurance | $1,040 | $2,880 | $4,800 |
Rent | $9,750 | $27,000 | $45,000 |
Payroll Taxes | $0 | $0 | $0 |
Other General and Administrative Expenses | $0 | $0 | $0 |
Total General and Administrative Expenses | $37,850 | $108,480 | $180,800 |
General and Administrative % | 18.35% | 13.32% | 12.72% |
Other Expenses: | |||
Other Payroll | $37,500 | $97,750 | $217,250 |
Consultants | $0 | $0 | $0 |
Contract/Consultants | $0 | $0 | $0 |
Total Other Expenses | $37,500 | $97,750 | $217,250 |
Other % | 18.18% | 12.01% | 15.28% |
Total Operating Expenses | $119,348 | $322,130 | $531,050 |
Profit Before Interest and Taxes | $46,797 | $292,716 | $446,360 |
EBITDA | $46,797 | $292,716 | $446,360 |
Interest Expense | $423 | $141 | $0 |
Taxes Incurred | $11,488 | $73,144 | $113,450 |
Net Profit | $34,886 | $219,431 | $332,910 |
Net Profit/Sales | 16.91% | 26.95% | 23.41% |
Cash flow projections are good, as shown in the annual table below, and the monthly table in the appendix. There are only two months of negative cash flow the foreseen the first year, and the all important cash balance shows steady increases.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $206,300 | $814,116 | $1,421,860 |
Subtotal Cash from Operations | $206,300 | $814,116 | $1,421,860 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $5,000 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $211,300 | $814,116 | $1,421,860 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $104,298 | $417,650 | $812,250 |
Bill Payments | $59,036 | $189,141 | $264,923 |
Subtotal Spent on Operations | $163,334 | $606,791 | $1,077,173 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $2,830 | $2,170 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $166,164 | $608,961 | $1,077,173 |
Net Cash Flow | $45,136 | $205,155 | $344,687 |
Cash Balance | $59,236 | $264,391 | $609,079 |
The balance sheet below and in the appendix show steady increase in net worth over the life of the plan.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $59,236 | $264,391 | $609,079 |
Inventory | $1,480 | $19,672 | $14,136 |
Other Current Assets | $500 | $500 | $500 |
Total Current Assets | $61,216 | $284,563 | $623,715 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $61,216 | $284,563 | $623,715 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $9,960 | $16,046 | $22,287 |
Current Borrowing | $2,170 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $12,130 | $16,046 | $22,287 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $12,130 | $16,046 | $22,287 |
Paid-in Capital | $15,000 | $15,000 | $15,000 |
Retained Earnings | ($800) | $34,086 | $253,517 |
Earnings | $34,886 | $219,431 | $332,910 |
Total Capital | $49,086 | $268,517 | $601,427 |
Total Liabilities and Capital | $61,216 | $284,563 | $623,715 |
Net Worth | $49,086 | $268,517 | $601,427 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7812, Motion Picture and Video Production, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | n.a. | 294.63% | 74.65% | 14.20% |
Percent of Total Assets | ||||
Inventory | 2.42% | 6.91% | 2.27% | 3.40% |
Other Current Assets | 0.82% | 0.18% | 0.08% | 46.90% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 68.40% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 31.60% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 19.82% | 5.64% | 3.57% | 41.60% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 17.20% |
Total Liabilities | 19.82% | 5.64% | 3.57% | 58.80% |
Net Worth | 80.18% | 94.36% | 96.43% | 41.20% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 80.54% | 75.52% | 68.74% | 0.00% |
Selling, General & Administrative Expenses | 63.71% | 46.92% | 43.99% | 74.80% |
Advertising Expenses | 9.69% | 2.46% | 2.11% | 1.60% |
Profit Before Interest and Taxes | 22.68% | 35.96% | 31.39% | 1.60% |
Main Ratios | ||||
Current | 5.05 | 17.73 | 27.98 | 1.67 |
Quick | 4.92 | 16.51 | 27.35 | 1.12 |
Total Debt to Total Assets | 19.82% | 5.64% | 3.57% | 58.80% |
Pre-tax Return on Net Worth | 94.48% | 108.96% | 74.22% | 1.80% |
Pre-tax Return on Assets | 75.76% | 102.82% | 71.56% | 4.50% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 16.91% | 26.95% | 23.41% | n.a |
Return on Equity | 71.07% | 81.72% | 55.35% | n.a |
Activity Ratios | ||||
Inventory Turnover | 7.63 | 3.10 | 3.52 | n.a |
Accounts Payable Turnover | 6.89 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 24 | 26 | n.a |
Total Asset Turnover | 3.37 | 2.86 | 2.28 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.25 | 0.06 | 0.04 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $49,086 | $268,517 | $601,427 | n.a |
Interest Coverage | 110.63 | 2,075.26 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.30 | 0.35 | 0.44 | n.a |
Current Debt/Total Assets | 20% | 6% | 4% | n.a |
Acid Test | 4.92 | 16.51 | 27.35 | n.a |
Sales/Net Worth | 4.20 | 3.03 | 2.36 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
Photo Memories | 0% | 15 | 20 | 40 | 50 | 60 | 60 | 70 | 80 | 95 | 90 | 100 | 120 |
News Story Reels | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 10 | 16 | 25 | 40 | 65 |
Tampa Bay Video | 0% | 0 | 0 | 0 | 2 | 3 | 5 | 12 | 2 | 2 | 18 | 2 | 2 |
Other Projects | 0% | 1 | 0 | 1 | 0 | 1 | 0 | 1 | 0 | 1 | 0 | 1 | 0 |
Total Unit Sales | 16 | 20 | 41 | 52 | 64 | 65 | 87 | 92 | 114 | 133 | 143 | 187 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Photo Memories | $200.00 | $200.00 | $200.00 | $200.00 | $250.00 | $250.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | |
News Story Reels | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | |
Tampa Bay Video | $0.00 | $0.00 | $0.00 | $0.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | |
Other Projects | $1,000.00 | $0.00 | $1,000.00 | $0.00 | $1,000.00 | $0.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | |
Sales | |||||||||||||
Photo Memories | $3,000 | $4,000 | $8,000 | $10,000 | $15,000 | $15,000 | $14,000 | $16,000 | $19,000 | $18,000 | $20,000 | $24,000 | |
News Story Reels | $0 | $0 | $0 | $0 | $0 | $0 | $800 | $2,000 | $3,200 | $5,000 | $8,000 | $13,000 | |
Tampa Bay Video | $0 | $0 | $0 | $0 | $150 | $250 | $600 | $100 | $100 | $900 | $100 | $100 | |
Other Projects | $1,000 | $0 | $1,000 | $0 | $1,000 | $0 | $1,000 | $0 | $1,000 | $0 | $1,000 | $0 | |
Total Sales | $4,000 | $4,000 | $9,000 | $10,000 | $16,150 | $15,250 | $16,400 | $18,100 | $23,300 | $23,900 | $29,100 | $37,100 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Photo Memories | 0.00% | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 |
News Story Reels | 0.00% | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 |
Tampa Bay Video | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 | $5.00 |
Other Projects | 0.00% | $75.00 | $0.00 | $50.00 | $0.00 | $500.00 | $0.00 | $500.00 | $0.00 | $500.00 | $0.00 | $500.00 | $0.00 |
Direct Cost of Sales | |||||||||||||
Photo Memories | $45 | $60 | $120 | $150 | $180 | $180 | $210 | $240 | $285 | $270 | $300 | $360 | |
News Story Reels | $0 | $0 | $0 | $0 | $0 | $0 | $60 | $150 | $240 | $375 | $600 | $975 | |
Tampa Bay Video | $0 | $0 | $0 | $0 | $15 | $25 | $60 | $10 | $10 | $90 | $10 | $10 | |
Other Projects | $75 | $0 | $50 | $0 | $500 | $0 | $500 | $0 | $500 | $0 | $500 | $0 | |
Subtotal Direct Cost of Sales | $120 | $60 | $170 | $150 | $695 | $205 | $830 | $400 | $1,035 | $735 | $1,410 | $1,345 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Production Personnel | |||||||||||||
Photo Editor | $0 | $0 | $0 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Photo Editor | $0 | $0 | $0 | $0 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Photo Editor | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,500 | $1,500 | $1,500 | $1,500 | |
Photo Editor (2) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,500 | |
Additional Employees (3 stores) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Additional Employees (5 stores) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $0 | $0 | $1,500 | $3,000 | $3,000 | $3,000 | $3,000 | $4,500 | $4,500 | $4,500 | $6,000 | |
Sales and Marketing Personnel | |||||||||||||
Marketing Manager (President) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
News Sales Representative | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,666 | $1,666 | $1,666 | |
News Sales Representative Commission | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $500 | $1,000 | $1,500 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $2,166 | $2,666 | $3,166 | |
General and Administrative Personnel | |||||||||||||
Store Manager | $0 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | |
Store Manager Commission | $0 | $300 | $300 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Store Manager (2) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,600 | $1,600 | |
Store Manager Commission (2) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $400 | $400 | |
Store Mgr/Commission (3 & 5 stores) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $1,900 | $1,900 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $4,000 | $4,000 | |
Other Personnel | |||||||||||||
President | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $3,500 | $3,500 | $3,500 | $4,000 | $4,000 | $4,000 | |
Operations Manager | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Home Division Manager | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
B2B Division Manager | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $3,500 | $3,500 | $3,500 | $4,000 | $4,000 | $4,000 | |
Total People | 1 | 2 | 2 | 3 | 4 | 4 | 4 | 4 | 5 | 6 | 6 | 8 | |
Total Payroll | $2,500 | $4,400 | $4,400 | $6,000 | $7,500 | $7,500 | $8,500 | $8,500 | $10,000 | $12,666 | $15,166 | $17,166 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 13.00% | 13.00% | 13.00% | 13.00% | 13.00% | 13.00% | 13.00% | 13.00% | 13.00% | 13.00% | 13.00% | 13.00% | |
Long-term Interest Rate | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $4,000 | $4,000 | $9,000 | $10,000 | $16,150 | $15,250 | $16,400 | $18,100 | $23,300 | $23,900 | $29,100 | $37,100 | |
Direct Cost of Sales | $120 | $60 | $170 | $150 | $695 | $205 | $830 | $400 | $1,035 | $735 | $1,410 | $1,345 | |
Production Payroll | $0 | $0 | $0 | $1,500 | $3,000 | $3,000 | $3,000 | $3,000 | $4,500 | $4,500 | $4,500 | $6,000 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $120 | $60 | $170 | $1,650 | $3,695 | $3,205 | $3,830 | $3,400 | $5,535 | $5,235 | $5,910 | $7,345 | |
Gross Margin | $3,880 | $3,940 | $8,830 | $8,350 | $12,455 | $12,045 | $12,570 | $14,700 | $17,765 | $18,665 | $23,190 | $29,755 | |
Gross Margin % | 97.00% | 98.50% | 98.11% | 83.50% | 77.12% | 78.98% | 76.65% | 81.22% | 76.24% | 78.10% | 79.69% | 80.20% | |
Operating Expenses | |||||||||||||
Sales and Marketing Expenses | |||||||||||||
Sales and Marketing Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $2,166 | $2,666 | $3,166 | |
Advertising/Promotion | $2,000 | $1,500 | $1,500 | $2,000 | $2,000 | $2,000 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Travel | $0 | $0 | $0 | $0 | $0 | $750 | $750 | $750 | $750 | $1,500 | $1,000 | $1,000 | |
Miscellaneous | $500 | $500 | $500 | $500 | $500 | $500 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,500 | |
Total Sales and Marketing Expenses | $2,500 | $2,000 | $2,000 | $2,500 | $2,500 | $3,250 | $3,250 | $3,250 | $3,250 | $6,166 | $6,166 | $7,166 | |
Sales and Marketing % | 62.50% | 50.00% | 22.22% | 25.00% | 15.48% | 21.31% | 19.82% | 17.96% | 13.95% | 25.80% | 21.19% | 19.32% | |
General and Administrative Expenses | |||||||||||||
General and Administrative Payroll | $0 | $1,900 | $1,900 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $4,000 | $4,000 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $160 | |
Insurance | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $80 | $160 | |
Rent | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $1,500 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other General and Administrative Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total General and Administrative Expenses | $930 | $2,830 | $2,830 | $2,930 | $2,930 | $2,930 | $2,930 | $2,930 | $2,930 | $2,930 | $4,930 | $5,820 | |
General and Administrative % | 23.25% | 70.75% | 31.44% | 29.30% | 18.14% | 19.21% | 17.87% | 16.19% | 12.58% | 12.26% | 16.94% | 15.69% | |
Other Expenses: | |||||||||||||
Other Payroll | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $3,500 | $3,500 | $3,500 | $4,000 | $4,000 | $4,000 | |
Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Contract/Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Other Expenses | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $3,500 | $3,500 | $3,500 | $4,000 | $4,000 | $4,000 | |
Other % | 62.50% | 62.50% | 27.78% | 25.00% | 15.48% | 16.39% | 21.34% | 19.34% | 15.02% | 16.74% | 13.75% | 10.78% | |
Total Operating Expenses | $5,930 | $7,330 | $7,330 | $7,930 | $7,930 | $8,680 | $9,680 | $9,680 | $9,680 | $13,096 | $15,096 | $16,986 | |
Profit Before Interest and Taxes | ($2,050) | ($3,390) | $1,500 | $420 | $4,525 | $3,365 | $2,890 | $5,020 | $8,085 | $5,569 | $8,094 | $12,769 | |
EBITDA | ($2,050) | ($3,390) | $1,500 | $420 | $4,525 | $3,365 | $2,890 | $5,020 | $8,085 | $5,569 | $8,094 | $12,769 | |
Interest Expense | $54 | $44 | $42 | $40 | $38 | $36 | $34 | $32 | $30 | $28 | $26 | $24 | |
Taxes Incurred | ($631) | ($858) | $365 | $95 | $1,122 | $832 | $714 | $1,247 | $2,014 | $1,385 | $2,017 | $3,186 | |
Net Profit | ($1,473) | ($2,575) | $1,094 | $285 | $3,366 | $2,497 | $2,142 | $3,741 | $6,042 | $4,156 | $6,051 | $9,559 | |
Net Profit/Sales | -36.82% | -64.38% | 12.15% | 2.85% | 20.84% | 16.37% | 13.06% | 20.67% | 25.93% | 17.39% | 20.80% | 25.77% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $4,000 | $4,000 | $9,000 | $10,000 | $16,150 | $15,250 | $16,400 | $18,100 | $23,300 | $23,900 | $29,100 | $37,100 | |
Subtotal Cash from Operations | $4,000 | $4,000 | $9,000 | $10,000 | $16,150 | $15,250 | $16,400 | $18,100 | $23,300 | $23,900 | $29,100 | $37,100 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $5,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $9,000 | $4,000 | $9,000 | $10,000 | $16,150 | $15,250 | $16,400 | $18,100 | $23,300 | $23,900 | $29,100 | $37,100 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $2,500 | $4,400 | $4,400 | $6,000 | $7,500 | $7,500 | $8,500 | $8,500 | $10,000 | $12,666 | $15,166 | $17,166 | |
Bill Payments | $528 | $3,795 | $2,156 | $3,344 | $3,632 | $5,571 | $5,082 | $6,050 | $5,539 | $7,866 | $7,366 | $8,106 | |
Subtotal Spent on Operations | $3,028 | $8,195 | $6,556 | $9,344 | $11,132 | $13,071 | $13,582 | $14,550 | $15,539 | $20,532 | $22,532 | $25,272 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $980 | $185 | $185 | $185 | $185 | $185 | $185 | $185 | $185 | $185 | $185 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $3,028 | $9,175 | $6,741 | $9,529 | $11,317 | $13,256 | $13,767 | $14,735 | $15,724 | $20,717 | $22,717 | $25,457 | |
Net Cash Flow | $5,972 | ($5,175) | $2,259 | $471 | $4,833 | $1,994 | $2,633 | $3,365 | $7,576 | $3,183 | $6,383 | $11,643 | |
Cash Balance | $20,072 | $14,897 | $17,156 | $17,627 | $22,460 | $24,453 | $27,086 | $30,451 | $38,027 | $41,210 | $47,593 | $59,236 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $14,100 | $20,072 | $14,897 | $17,156 | $17,627 | $22,460 | $24,453 | $27,086 | $30,451 | $38,027 | $41,210 | $47,593 | $59,236 |
Inventory | $0 | $880 | $820 | $650 | $500 | $805 | $600 | $913 | $513 | $1,139 | $1,404 | $1,551 | $1,480 |
Other Current Assets | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
Total Current Assets | $14,600 | $21,452 | $16,217 | $18,306 | $18,627 | $23,765 | $25,553 | $28,499 | $31,464 | $39,665 | $43,113 | $49,644 | $61,216 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $14,600 | $21,452 | $16,217 | $18,306 | $18,627 | $23,765 | $25,553 | $28,499 | $31,464 | $39,665 | $43,113 | $49,644 | $61,216 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $400 | $3,724 | $2,045 | $3,225 | $3,446 | $5,403 | $4,880 | $5,868 | $5,277 | $7,621 | $7,098 | $7,762 | $9,960 |
Current Borrowing | $0 | $5,000 | $4,020 | $3,835 | $3,650 | $3,465 | $3,280 | $3,095 | $2,910 | $2,725 | $2,540 | $2,355 | $2,170 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $400 | $8,724 | $6,065 | $7,060 | $7,096 | $8,868 | $8,160 | $8,963 | $8,187 | $10,346 | $9,638 | $10,117 | $12,130 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $400 | $8,724 | $6,065 | $7,060 | $7,096 | $8,868 | $8,160 | $8,963 | $8,187 | $10,346 | $9,638 | $10,117 | $12,130 |
Paid-in Capital | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
Retained Earnings | ($800) | ($800) | ($800) | ($800) | ($800) | ($800) | ($800) | ($800) | ($800) | ($800) | ($800) | ($800) | ($800) |
Earnings | $0 | ($1,473) | ($4,048) | ($2,954) | ($2,669) | $697 | $3,194 | $5,336 | $9,078 | $15,119 | $19,275 | $25,327 | $34,886 |
Total Capital | $14,200 | $12,727 | $10,152 | $11,246 | $11,531 | $14,897 | $17,394 | $19,536 | $23,278 | $29,319 | $33,475 | $39,527 | $49,086 |
Total Liabilities and Capital | $14,600 | $21,452 | $16,217 | $18,306 | $18,627 | $23,765 | $25,553 | $28,499 | $31,464 | $39,665 | $43,113 | $49,644 | $61,216 |
Net Worth | $14,200 | $12,727 | $10,152 | $11,246 | $11,531 | $14,897 | $17,394 | $19,536 | $23,278 | $29,319 | $33,475 | $39,527 | $49,086 |
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Film / video production company business plan sample.
A film company is basically in three types: development, production, and distribution. Generally, films cannot be produced without any sort of partnership between any two or more of these various types of film companies.
How far you will go in the film industry will largely be dependent upon your personal abilities, experience in the industry, networking relationships, and a host of other things.
In this article, I would love to share with you a number of steps you must have to take in starting your film company.
Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.
This is the very first step you will have to take in starting your film company. First and foremost, you must carry out a very detailed research on the film industry and decide upon which area you will want to put your talents into use to best see results.
Research on the local film companies in your area, and see what they are doing, and how they are doing it. Pay special attention to the things they are doing well and the things they not doing well. This will help you see areas in the industry where you can take real advantage of.
It will be very helpful if you have some sort of experience in the film industry. If you do not have some level of experience, ensure you get a few years experience in the area you would love to focus on. The bottom line is; you should do everything within your means to learn everything you can about the film industry. This will afford you lots of success in starting your film company.
Now, you must get set to go register your film company. Select a good business name and head to the local authorities responsible for business registration in your country, state or area. Make sure to be creative with your business name because this will be your brand name and what you will be identified with.
Most film companies operate as a Limited Liability Company (LLC); you may also want to adopt this business type.
Ensure you have an attorney to help you with all the legal startup processes and subsequent legal processes in the course of managing your film company.
Managing a film company will require finance. You must be able to determine the source of securing finance for your film company. Most filmmakers secure funds for their film company through advances from credit card cash; others secure finance from family, friends, and associates.
If you will be thinking in the line of securing finance from prospective investors, and the bank; then you must be prepared to write a very good business plan for your film company, partnered with good experience in the industry.
In running your film company, you will need to set up a team, and hire contractors. Each film production is an entire business on its own, after which, the contractors move on to other works. You will spend your resources organising a team of staffs, producers and contractors to handle each film production.
Usually, film companies do not have permanent offices; office spaces are rented for the period of time the production will go on.
You will require setting up secretariat staffs and office assistants to facilitate the proper operation of your film company. Most film companies require the services of the following 4 key employees: head of development, head of production, head of post-production, and head of film sales and distribution.
In operating your film company, you will not necessarily require a permanent office space for doing your production.
All you need is a temporary office for every single film production. Most of your time will be spent on networking; meeting with stars, producers, directors, investors; and seeking for new projects.
You will also have to secure good and functioning equipment for your film production. You may not necessarily need more than a phone, a computer, and some other equipment when it comes to running your film company.
Nothing will guarantee you more success in running your film making company other than a solidly written film business plan. There are several film company types: development, production, and distribution are all the various types you could focus on.
Once you have decided upon the business type, and the film company type you would want to operate in the film industry, make sure you put everything down in a good movie production business plan.
In your business plan, make sure you detail the source of financing your film company, and also make sure you have a distribution plan detailed in your movie making business plan.
A big part of the success of your film company will result from networking and promoting your brand. There is never a thing as talking too much about your film company and your projects. Keep spreading the word out there. Get it out to as much people as you can.
Develop a website for your film company and encourage people to visit it. Go public on radio, television, newspapers, entertainment magazines, and social media. Have a handy business card and make sure to give it out always, whenever and wherever you meet people. Attend seminars and events and seize the opportunity to talk to producers, directors, and star actors about your film company.
Here is a sample business plan for starting a video and movie production company.
BUSINESS NAME: Sun Light Film and Video Production Company.
Executive Summary
Our Products and Services
Vision Statement
Mission Statement
Business Structure
Sales and Marketing Strategy
Sales Forecast
Sun Light Film and Video Production Company is a Film and Video Production company that has fully been registered and licensed to operate in New York, United States of America. We have made sure to provide the necessary equipment and facility so as to make our Film and Video Production Company a standard business that will be able to compete with the top businesses in the industry in the whole of the United States of America.
Launching this business would require huge capital from the owner and investors. So far, the owner, Ademola Williams, has been able to raise a major part of the startup capital. The other part will be generated from his business partners and investors, and also from the owner’s bank.
As regards our products and services offering, we will not leave any stone unturned. Sun Light Film and Video Production Company will be built to be very competitive in the industry.
We will nurture our business so as to be able to fully compete with the top Film and Video Production companies in the whole of the United States of America. The following are the products and services we will be offering to our customers:
Our vision is very simple, and we will do our best to achieve it. Our vision in the Film and Production industry is to become the number one Film and Video Production Company in all of New York, and to be rated as among the top 10 Film and Video Production Companies in the whole of the United States of America.
Our mission in the Film and Video Production industry is to build and nurture a brand that will not only be known for being standard, but will also be known for delivering very quality and standard movies which all consumers will be able to appreciate not only in the United States of America but also around various parts of the world.
To a great extent, how successful a business would be largely depends on the business structure of the business and also on the quality possessed by the individuals occupying the various roles in the organization.
Sun Light Film and Video Production Company will be a business that will be occupied by very qualified, honest, and competent individuals.
The following are the various roles which will be occupied by the individuals who fulfil our criteria:
Market Analysis Market Trends
One interesting trend in the Film and Video industry is the viewing of online videos. Statistics has it that hundreds of millions of Americans view online video contents on average daily. This figure is increasing for each day annually, and going forward, this trend will only continue.
Target Market
Having done our research thoroughly, we have come up with the following as the groups making up our target market:
We well know what we want in the industry, and we will do well to accomplish our goal in the industry. In the light of this, we will make sure to recruit our sales and marketing team based on qualification and experience.
Also, we have been able to consult sales and marketing experts, and with their help, we have been able to come up with the following sales and marketing strategies on how to go about promoting our business:
Financial Plan Source of Startup Capital
It will cost us a total of $1,000,000 to fully launch our Film and Video Production Company in New York. This amount covers all of our initial expenses including cost of equipment and salary of employees for the first three months.
So far, Ademola Williams have been able to raise $600,000 from his investment and the sales of some of his assets. $200,000 will be contributed by his business partners and investors, while the other part will be sourced from the bank.
First Fiscal Year $1,000,000 Second Fiscal Year $1,750,000 Third Fiscal Year $2,000,000
Above is the sales projection for Sun Light Film and Video Production Company, which has been obtained from available statistical data in the industry. This sales forecast will help us with a concrete guide upon which our annual sales revenue will be checked against.
Above is a very simple and easy-to-use Film and Video Production business plan sample bearing the business name ‘Sun Light Film and Video Production Company’. The business will be owned and run by Ademola Williams, alongside his business partners and investors.
Get your hands on our premium Video Production Business Plan template that you can use to create structure and organization for your videography business. Available in A4 and US letter sizes, this ready-made business plan template is professionally designed to help you detail important information for video production business in terms of your objectives and strategies in achieving your goals. It is easy to use in the available file formats presented and can be downloaded instantly anytime, anywhere, at any device. What are you waiting for? Download this versatile template today!
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Published Sep.01, 2013
Updated Apr.24, 2024
By: Jakub Babkins
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Table of Content
With the evolution of technology, the competition has been more acute than ever before in any field. The video production business has maintained an extremely outstanding growth for so many years. If you are starting a video production company, you should create a complete and detailed video production business plan . Movie production world makes millionaires every now and then. If you are all set to take the next step, you need to plan a professional business planning .
When drafting video production studio business plan , you need to consider the following questions –
If you are thinking about the overall summary of your videography business plan, we recommend you to work from your priorities. An executive summary is your pitch as it explains why you want to start your video production business. You need to make it catchy so it can reflect what you want to execute in your business. It is wise to know your niche market and the type of output, which is expected.
When doing marketing analysis for your video editing business plan , you need to analyze your niche, competitors, and capabilities of your business. It is a very vital segment in this business plan. If you are starting up, you need to consider your strengths and weaknesses. Instead of personal strengths and weaknesses, consider the bigger picture. Highlight how you can improve, what you can get the most of, and what may be the threat to your business growth.
The market analysis is having four major things involved such as-
In this section of the video production marketing strategy , you need to decide what information about the management and staff you want to add. How you are going to run your daily operations to solidify both your finances and marketing work? These are the known and important parts of the business plan. In addition, you can explain if you are going to fix the hours limit or you want to work with account managers to keep the history of your expenses.
While creating the video production company business plan pdf , you need to define your plan as to how you are going to promote your video production business. The materials of marketing you produce are the most important part of a successful video production business.
If you have your own website, that is a huge plus to display the marketing materials over there. In addition, promoting your business through network marketing is the best option for business and personal growth. For this, you need to have a good network where you can describe and show the videos.
To make an effective sample business plan video production , you need to explain how you are going to predict your financial outcomes. You need to justify how projects and revenue come in. [important title=”Note”]Some businesses start with early bird process, where clients can expect the best services at the best prices. It is often a valid option to start out.[/important]
The financial plan for your video production business must have the following highlights-
OGS Capital is your one-stop destination for business plan template for video production company and can help you find different investors, including banks, business for angel investors etc. Complete an online form and our experts will get back to you.
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Professional writers OGS capital specialized also on theme such as wedding photography business plan , film business plan , photography company business plan , pet photography business plan , art gallery business plan , record label business plan and etc.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
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Believe it or not—anyone can take a few pictures, but it takes true skill and talent to get the perfect shot.
And If you’re the guy, everyone’s after asking to click pictures at every party or event, starting a photography business could be incredibly lucrative and satisfying.
However, making your photography business successful is more than just clicking good pictures. You need a solid business plan to ensure success.
Need help writing a business plan for your photography business? You’re at the right place. Our photography business plan template will help you get started.
Download the template and follow step-by-step instructions to draft your business plan in no time!
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And though photography lets you fulfill your passion, it attracts a lot of competition due to its ease of entry.
Also, having a successful photography business takes a little more than skill. A photography business plan helps you deal with that, while you shutter away your masterpiece.
According to the IBIS World industry report , the US photography market is expected to decline at a CAGR of 1.3 to reach 12.9 billion dollars in 2023.
With 7-8% profit margins, individual consumers and households make up the main customer base for the industry. Despite a minor recent decline, the photography industry is projected to experience consistent growth in the coming years.
Here are a few key industry highlights to consider:
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You’ll need to focus on both the artistic and business sides of your trade.
Though having an excellent eye for proportion, dimensions, and light is great it isn’t enough to have a profitable business. You bring your skills to the table, but you’ll have to work as hard as any other business owner on your marketing, finance, and operations to have a profitable business.
And though it might seem intimidating, with the right amount of planning and strategizing you can do it smoothly.
It is important to study every aspect of the market and select the pricing strategy that suits your business the best. Your pricing as a photography business would depend a lot upon the niche you choose, your location, and the quality of your skills.
Good photography isn’t just about your skills with the camera, especially if you are dealing with people. You’ll need to make your customers feel at ease and have a friendly way of communicating.
This helps you become the person’s go-to photographer. As pictures aren’t just products you pay for, but memories that are cherished for years.
But at the same time, if communication isn’t your thing you don’t need to worry. As there are several other niches in photography that you can pick from.
The right camera, technical equipment, etc, are important to help you work effectively. But it doesn’t do to go over budget for it. Especially, if you are just starting out.
Pick the right equipment, but not the one that weighs down on your finances at the early stages of your business.
As you are ready to enter the industry, it brings us to the above question, why does one need a photography business plan?
Aren’t you just supposed to dive right in if you are passionate enough?
The answer is, NO.
Though diving headfirst might sound appealing, it can lead to a series of roadblocks in the future. Also, a business plan isn’t as time-consuming as it may seem to you.
It increases the efficiency of your business and acts as a guide on your road to success. Moreover, writing a business plan helps you get a clear idea of your goals and the opportunities and threats that stand in your way of achieving them.
Also, a well-researched and innovative plan can help you get funded. An investor’s confidence in you is directly proportional to the clarity of your business idea. A business plan can help you achieve just that.
Writing a business plan is not as intimidating as it seems. A well-rounded business plan requires thorough research of the industry, a clear set of goals, well-observed and carefully designed strategies to achieve them, and a clear list of milestones and timelines for all the departments of the business.
A business plan should include strategies for all departments from marketing to finance. There are several resources like online software, business consultants, and predesigned templates that can help you in writing the perfect business plan .
Writing a business plan has become a cakewalk through online business planning tools which can craft an ideal business plan for you at the snap of your fingers.
Though anyone can click pictures with devices as simple as a smartphone, it takes skills, a sense of proportion, and creativity to make people stop scrolling.
In today’s world of photo-sharing apps where people grapple for attention, the demand for excellent photographers continues to rise.
Hence, with the advent of Instagram, the photography industry is growing leaps and bounds.
This is a standard photography business plan outline that will cover all important sections that you should include in your business plan.
As you sit down to write your business plan, it brings us to the question, what all things you will need to include in your business plan? Read on to find out.
The executive summary section of a business plan works as an overview of your business and acts as a highlight of its aims and goals. It should be brief and precise and sum up everything your business stands for.
It serves as a pitch of your business ideas to potential investors and should have the following points.
In the business overview section, you’ll jot down all of the business ideas you have and analyze how to bring them to life.
This section would consist of an overview of the functioning of your business. as well as your mission statement.
While writing this section it is important to be as precise as possible It helps the stakeholders of your business to know it better.
In this section of your business plan, you have to list the services you are going to offer. This helps you get a clearer idea of how to advertise your services and how to reach out to your target audiences.
For example, if you are a landscape photographer all of your marketing strategy and the list of resources and services you’ll need will be built around that.
Also, your target audience would be travel websites and tourism companies. And the ways of reaching out to them would be different than reaching out to influencers or celebrities.
The market analysis section is a crucial part of your business plan.
In this section, you’ll write down everything you can find about the photography market as well as resources that can help you stay updated about the recent trends in the market.
For example, as a photographer, it is essential to know the trending photography techniques.
You can also include the size of the market, your competitors, areas that have the highest growth potential, etc Know the right market value of services and identify the existing market gaps that you can fill.
Let’s consider there is no food photographer in your locality and the restaurants around you need one, you can specialize in food photography to capture that market.
The Internet is the first place where people look for any product or service, hence your business must have a website to be discovered by clients.
A well-optimized website can help you in meeting a lot of potential customers.
Including a website strategy in your business plan is crucial.
Your financial planning is one of the major deciding factors of whether your business will stay afloat or not.
In this section keep track of your company’s finances, jot down ways of making it more cost-effective. List down resources that can help you understand and manage your finances better.
Need help getting started writing a business plan? Here you go; download our free photography business plan pdf to start.
It’s a modern business plan template designed for your photography center. Refer to the example business plan and follow step-by-step instructions to start writing your plan.
The Quickest Way to turn a Business Idea into a Business Plan
Fill-in-the-blanks and automatic financials make it easy.
A business planning tool like Upmetrics is the best way to draft your business plan. This incredible tool comes with step-by-step instructions, customizable templates, AI assistance, and business plan examples to help you get started.
You may also explore our library of Entertainment and media business plan examples before you start writing your plan.
So, whether you are starting a photography business or planning to grow an existing one, Upmetrics is the tool you need to create a business plan.
So, what are you waiting for? Start planning now!
Frequently asked questions, what are some common mistakes to avoid when drafting a photography business plan.
Following are some of the common mistakes to avoid when writing a photography business plan:
Following are some of the key financial metrics to include in your photography business plan:
A well-crafted photography business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping you secure investment.
There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your photography business plan and outline your vision as you have in mind.
About the Author
Upmetrics Team
Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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We provide a free business plan template below and will walk you through it. Step by step. Production Company Business Plan. The Executive Summary. Perform a Video Company Self Assessment. How to Get Started. Financing a Video Production Company. Marketing Plan. Day to Day Operations.
4.1.5 Strategic Alliances. The company plans to form strategic alliances with clients who require a freelancer to cover various events for them. Michael's Video Service will also develop strategic alliances with video production companies and work with them as a sub-contractor.
This template is specifically designed to help you secure funding, attract investors, and guide the overall direction of your video production business. With ClickUp, you can: Plan and organize your marketing strategies, production processes, and distribution channels. Track and manage your financials, including revenue streams, expenses, and ...
A business plan has 2 main parts: a financial forecast outlining the funding requirements of your video production company and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
Step 4: Strong marketing strategy. Existing businesses that are drawing a business plan for expansion rely on past data for their market analysis. The market analysis of your business is based on the information about your target market and customer demographics. Analyze the customer base, prospects, and market share.
Let's take a look at some of the initial overheads to cover when starting a videography business, listing the higher and lower bounds, covering the first three months of business: Office - $0 to $7000. Website - $300 - $7500. Startup registration - $600 - $4500. Equipment - $100 - $5000. Software - $200 - $5000.
Type in your local area and then a keyword that describes what you do. For example, 'los angeles video production' or ' corporate video london.'. Note down your competitors in a spreadsheet. It's a good idea to create as much info on them as you can. Consider this your 'little black book' of sorts.
A business plan template for videographers offers a range of benefits to help you establish and grow your business successfully: Provides a clear roadmap for setting and achieving your business goals Helps you identify and target your ideal clients, ensuring your marketing efforts are focused and effective
Consider the type of video and resources/equipment/personnel needed. The process typically involves pre-production (gathering resources, preparing the scene), production (filming), and post-production (editing, color correction, sound design, etc.). Have a clear outline of the process and resources. Include legal/compliance steps.
A Sample Film and Video Production Business Plan Template 1. Industry Overview. We can hardly talk about the film and video production industry without mentioning big players in the industry such as 21 st Century Fox, Time Warner, NBC Universal, The Walt Disney Company and Viacom Inc. et al. These are companies that truly define the trends in the industry.
This is the standard production company business plan outline, which will cover all important sections that you should include in your business plan. Executive summary. Market Validation. Objectives. Short-Term (1 -3 Years) Long Term (3-5 years) Mission statement. Unique Selling Proposition.
Develop A Video Production Business Plan - The first step in starting a business is to create a detailed video production company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
Film Production Company Business Plan: The Complete Guide. Matt Crawford 4. The process of film production is a long and arduous one. It starts with the writing stage, where screenplays are written by a writer or multiple writers. The screenplay typically has at least three acts that have to be edited for pacing and story development purposes.
Explore a real-world video television production business plan example and download a free template with this information to start writing your own business plan. ... We also have all the necessary components for a digital video production center, including cameras, mini-disc recorders, microphones, and lights. All other items can be rented per ...
Sun Light Film and Video Production Company will be a business that will be occupied by very qualified, honest, and competent individuals. The following are the various roles which will be occupied by the individuals who fulfil our criteria: Chief Executive Officer (CEO and owner) Studio Manager. Legal Secretary.
Get your hands on our premium Video Production Business Plan template that you can use to create structure and organization for your videography business. Available in A4 and US letter sizes, this ready-made business plan template is professionally designed to help you detail important information for video production business in terms of your ...
The financial plan for your video production business must have the following highlights-. You projection towards the incoming fund through all the videos. Your target audience and the frequency of money based on the videos. The information of your repayment if you have any dues. How you are making the transaction or payments.
Your video camera should have XLR audio connectors, so you can use professional external microphones and a mixer. For professional results, use a tripod for stability, as well as a basic lighting kit with color correction gels and a reflector. Expect to spend about $1000 on lights and accessories. For quality results in post-production, it is ...
Our photography business plan template will help you get started. Download the template and follow step-by-step instructions to draft your business plan in no time! → Download Now: Free Photography Business Plan. And though photography lets you fulfill your passion, it attracts a lot of competition due to its ease of entry.
About these filmmaking templates. This database of free film production templates and filmmaking documents are dedicated to making sense of the various, oftentimes confusing, facets of the filmmaking process. The following templates are designed to help directors, producers, screenwriters, cinematographers, 1st ADs, editors and others.