NAME

CLASS -
2014-2015
SPECIMEN PROFORMA OF PROJECT REPORT
(PHOTOGRAPHY STUDIO)
PROJECT REPORT OF THE ENTERPRISE
NAME OF THE UNITS AND ADDRESS
Ms. Duggal photography studio
Greater Kailash
TELEPHONE
Office xxxxx xxxxx
Personal xxxxx xxxxx
NAME AND ADDRESS OF THE PROMOTER
S. Amarjeet Duggal
D-!!" Mayapuri"
#e$ Delhi - %%!&
CONSTITUTION OF THE FIRM
Proprietor firm
QUALIFICATION OF THE ENTREPRENEUR
% years free lance photography experience
LOCATION
M 'loc( Mar(et
Greater Kailash Mar(et
NAME AND ADDRESS OF THE BANK
)D*+ 'A#K
G,-A.-, KA/0AS) MA,K-.
ACKNOWLEDGEMENT
/ am 1ery than(ful to e1eryone $ho all supported me" for / ha1e
completed my project effecti1ely and moreo1er on time.
/ am e2ually grateful to my teacher 3333333333 $ho ga1e me moral
support and guided me in different matters regarding the topic. she
had 4een 1ery (ind and patient $hile suggesting me the outlines of
this project and correcting my dou4ts. / than( her for her o1erall
supports.
0ast 4ut not the least" / $ould li(e to than( my parents $ho helped me a
lot in gathering different information" collecting data and guiding me
from time to time in ma(ing this project. Despite of their 4usy
schedules" they ga1e me different ideas in ma(ing this project
uni2ue.
.han(ing you Name
CLASS
EXECUTIVE SUMMARY
! OBJECTIVES
"! MISSION
#! KEYS TO SUCCESS
$! COMPANY SUMMARY
%! COMPANY OWNERSHIP
&! START'UP SUMMARY
(! SERVICES
)! MARKET ANALYSIS SUMMARY
*! MARKET SEGMENTATION
+! TARGET MARKET SEGMENT STRATEGY
! SERVICE BUSINESS ANALYSIS
"! COMPETITION AND BUYING PATTERNS
#! STRATEGY , IMPLEMENTATION SUMMARY
$! COMPETITIVE EDGE
%! MARKETING STRATEGY
&! SALES STRATEGY
(! SALES FORECAST
)! MILESTONES
*! MANAGEMENT SUMMARY
20. PERSONNEL PLAN
"! FINANCIAL PLAN
""! START'UP FUNDINGBREAK'EVEN ANALYSIS
"#! PROJECTED PROFIT AND LOSS
"$! PROJECTED BALANCE SHEET
"%! BUSINESS RATIOS
"&! LONG'TERM PLAN
EXECUTIVE SUMMARY
Ms. D5GGA0 +ommercial Photography" located in and ser1ing
Delhites $ill ser1e small and medium-si6ed 4usinesses and non-
profits for all of their studio photography needs 4y creating
4eautiful shots that ser1e the client7s needs" offering excellent
ser1ice and flexi4ility $ith a personal touch" and offering 1alue-
added ser1ices related to photography. *ounded and directed 4y
1eteran freelance commercial photographer Priyan(a D5GGA0"
Ms. Duggal+ommercial Photography intends to raise `8"9%"%%% 4y
adding limited partners to the 4usiness in order to open a studio
space" hire staff" and undergo a ne$ mar(eting campaign.

Sales and profits from the 4usiness are projected to rise steadily"
from `98":%"%%% re1enues and `8%%"%%% profits in the first year
to `&8%%"%%% re1enues and `;;%"%%% profits in year 8. Gross
margins and net profit margins $ill 4e relati1ely steady at &8<
and 9< respecti1ely.

.he (eys to success for the 4usiness include=
-sta4lishing Ms. Duggal Photography as flexi4le to the needs of
small and medium-si6ed 4usinesses
Offering a range of additional ser1ices" such as printing" photo
editing" and framing of photos in a 1ariety of digital formats
Ma(ing 4usinesses feel at home at studio > part of creati1ity.
OBJECTIVES
Ms. Duggal +ommercial Photography see(s to enter the top three
commercial photography pro1iders in the ,ochester" #3
metropolitan area $ithin fi1e years. ?e see( the follo$ing
o4jecti1es $ithin that fi1e year period=
.o 4e in the top three photography studios of mar(et share
.o exceed `;%% thousand in annual re1enue
.o support fi1e full-time staff
MISSION
Ms. Duggal+ommercial Photography see(s to ser1e small and
medium-si6ed 4usinesses and non-profits for all of their studio
photography needs 4y creating 4eautiful shots that ser1e the
client7s needs" offering excellent ser1ice and flexi4ility $ith a
personal touch" and offering 1alue-added ser1ices related to
photography. Ms. Duggalintends to offer personali6ed ser1ice to
ma(e it easy for small 4usinesses to outsource their photography
needs.
KEYS TO SUCCESS
-sta4lishing Ms. DuggalPhotography as flexi4le to the needs of
small and medium-si6ed 4usinesses
Offering a range of additional ser1ices" such as printing" photo
editing" framing" and production of photos in a 1ariety of
formats
Ma(ing 4usinesses feel at home in studio > part of creati1ity.
COMPANY SUMMARY
Ms. Duggal+ommercial Photography $ill 4e 4ased in a
con1eniently-located studio space $ithin the commercial centre of
Greater Kailash area. .he company $as founded 4y Priyan(a
D5GGA0 in ;;;. *or more than ten years" Ms. Duggal has
operated as a freelance photographer speciali6ing in commercial
shoots" esta4lishing a reputation among small 4usinesses as a
professional and talented photographer. O1er this time" D5GGA07s
4usiness has steadily gro$n" including a 1ariety of returning clients
$ho rely on Ms. Duggalfor their product photography for
pamphlets" 4rochures" $e4sites" and other mar(eting collateral.
Ms. Duggalhas operated $ithout a de1oted studio during this time"
tra1eling to client sites and setting up a studio space $here1er
possi4le.
COMPANY OWNERSHIP
Ms. Duggal +ommercial Photography $as esta4lished as a sole
proprietorship in ;;; and is currently 4eing re-esta4lished as a
limited lia4ility partnership to facilitate the participation of in1esting
partners. +urrently" all shares of Ms. Duggal +ommercial
Photography are o$ned 4y M-! D.//a0!
START'UP SUMMARY
Start-up expenses include the legal fees associated $ith re-
incorporating the 4usiness" permits associated $ith a studio space"
and the 4uild-out of the studio space.
Mar(eting includes a promotional campaign to alert customers and
potential customers to the ser1ices and capacity Ms. Duggal
+ommercial Photography is adding. ,ent includes t$o months of
studio rent to co1er the 4uild-out period and t$o additional months
for a security deposit.
0ong-term assets include additional photography e2uipment
@cameras" tripods" 4ac(drops" *lashes" lightingA that must 4e
purchased.
START-UP ,-B5/,-M-#.S
Start-up -xpenses
0egal ` !8"%%%
Stationery etc. ` %"%%%
/nsurance ` %"%%%
,ent ` C%"%%%
Mar(eting ` "%%"%%%
Studio 'uild-Out ` !%"%%%
.otal Start-up -xpenses ` !"D8"%%%
Start-up Assets
+ash ,e2uired ` "8%"%%%
Other +urrent Assets ` %"%%%
0ong-term Assets ` 9"%%"%%%
.otal Assets ` D":%"%%%
.otal ,e2uirements ` (1+%1+++
SERVICES
Ser1ices to 4e offered include the follo$ing=
Studio commercial photography
On-site commercial photography
Set dressing ser1ices for photo shoots
Photo editing and digital editing $or(
Deli1ery of prints or digital files of photo shoots
*raming of photos
?e4 portal to access digital files from shoots and manage
editing process $ith clients
,ental of the studio space to su4contractors $hen
time allo$s
/n the future" as additional staff is added" there are plans to offer
graphic design ser1ices for the photos ta(en" and to expand to a
multi-room studio to allo$ for multiple shoots simultaneously.
MARKET ANALYSIS SUMMARY
.he mar(et for commercial photography includes all 4usinesses
and non-profits. *or Ms. Duggal +ommercial Photography" the
target mar(et is small and medium-si6ed 4usinesses and non-
profits @those $ith Marriages and parties etc.A 4ased $ithin the city
limits of Delhi #+,.
/n the past t$o years" the mar(et for commercial photography in
+ity has contracted due to the recent economic do$nturn. /t is
estimated 4y the /ndian +ham4er of +ommerce that commercial
photography has shrun( from `8.& million to `D.8 million annual
re1enues since t$o years ago. Small and medium-si6ed
4usinesses $hich formerly used large commercial studios can no
longer afford their rates. .his has created an opportunity for
smaller photography studios $ith lo$er o1erhead and prices to
ser1e this mar(et and sei6e mar(et share in time for a mar(et
ups$ing.
MARKET SEGMENTATION
Ve23 Sma00 B.-45e--e-6 .hese 4usinesses are generally run 4y
their o$ners. Photography needs tend to 4e for their 4asic
mar(eting collateral @signs" menus" pamphlets" 4rochures"
$e4sites" ne$sletters" etc.A. .hese 4usinesses generally 4egin 4y
ta(ing these photographs in-house" 4ut" o1er time" determine that
this method produces su4-standard results. .hey then see(
inexpensi1e freelance photographers $ho can 2uic(ly handle their
needs.

Sma00 B.-45e--e-6 .hese 4usinesses ha1e ongoing and regular
needs for photography of their products and ser1ices" such as
2uarterly catalogs. .hey appreciate esta4lishing relationships $ith
1endors $ho understand their $ay of $or(ing" allo$ them access
to the creati1e process" and reduce the stress of creating
mar(eting materials. .hey prefer to $or( $ith one 1endor for all
photography needs and $ill 4e reluctant to change that 1endor
once it is found.

Me74.m B.-45e--e-6 .hese 4usinesses ha1e mar(eting
departments $hich outsource photography to photo studios. .hey
ha1e a higher 1olume of photography needs than smaller
4usinesses and pay great attention to the 2uality of the images as
$ell as the price. Eolume discounts may 4e needed to retain
4usinesses in this category.
MARKET ANALYSIS
Yea2

Yea2 " Yea2 # Yea2

$
Yea2
%
Potential
+ustomers
G289:; CAGR
Eery Small
'usinesses
%< "%%% "%% "!% "99 "D:D %.%%<
Small
'usinesses
8< 8%% 8&8 :: &:% C&D D.;C<
Medium
'usinesses
!%< !%% !D% !CC 9D: D8 !%.%!<
.otal "!)< 1(++ 1*% "1%* "1$#( "1(%# "!)<
+hart= Mar(et Analysis @PieA
TARGET MARKET SEGMENT STRATEGY
0arger 4usinesses in the city are ser1ed 4y large studios $ho can
send photographers to the client site or set up shoots $ith little
notice. .hese 4usinesses re2uire photography 1endors $ith the
capacity to shoot in multiple locations at the same time.

Smaller 4usinesses" on the other hand" are comforta4le $or(ing
$ith smaller photography studios. .hey are generally unhappy $ith
larger studios" as they find they are not a priority compared $ith
the larger clients of the studio. .hey $ant the same le1el of
ser1ice" scaled to the needs and 4udget of their 4usiness" and only
a smaller studio can pro1ide this.

*urthermore" larger 4usinesses often 4ring a great deal of photo
editing $or( in-house to their mar(eting departments. Smaller
4usinesses 1alue the a4ility of a photo studio to handle this $or(
as their mar(eting or design departments often do not ha1e the
capacity to deal $ith this $or( $hen ne$ materials are 4eing
de1eloped.

Medium and small 4usinesses can pro1ide ongoing $or(.
)o$e1er" $ithout ser1ing 1ery small 4usinesses" Ms. Duggal$ill
miss out on capturing smaller customers 4efore they gro$.
?or(ing $ith 1ery small 4usinesses can also pro1ide a $ide 4ase
of customers" ma(ing the re1enue streams of the 4usiness less
suscepti4le to the loss of any one customer.
SERVICE BUSINESS ANALYSIS
.he commercial photography industry is characteri6ed 4y local
photo studios $hich ser1e cities or small regions. Eery fe$
4usinesses gro$ 4eyond this geographic range. ?ithin a local
mar(et" there are do6ens of photo studios in operation. 'usinesses
see( photography 1endors through referrals" internet search" and
the local yello$ pages. Photography studios generally 4ase their
charges on the time of the shoot as $ell as the num4er of edited
photos pro1ided.

Specific competitors for +ommercial Photography include=

Ca=4:a0 S:.748- - -sta4lished !8 years ago and operating a small
studio" this company focuses on product photography only

T40a> S:.748 - -sta4lished % years ago" this company does not
operate a studio" 4ut uses student photographers to offer lo$er-
priced on-site photography shoots

M-! D.//a0 P;8:8/2a=;e2- - -sta4lished 9 years ago" this
company su4contracts all of its photography $or( to freelance
photographers" acting as a 4ro(er 4et$een these freelancers and
clients. .his leads to a lo$er le1el of 2uality assurance" and some
client dissatisfaction
COMPETITION AND BUYING PATTERNS
.here are 1ery fe$ 4arriers to entry into the commercial
photography 4usiness. At the lo$-end of the mar(et" freelance
photographers $ith inexpensi1e digital cameras start $or( officially
and unofficially e1ery day. )o$e1er" at the high end of the mar(et"
2uality photographers $or(ing $ith the 4est e2uipment and a
studio space are protected 4y the capital re2uired to purchase
e2uipment and to rent and 4uild out a studio.

+ustomers among small and medium-si6ed 4usinesses see( lo$
prices" 4ut $ill not sacrifice 2uality. .he 4est 2uality is o4tained in
the controlled en1ironment of a studio" $ith $ell-trained
photographers and high-2uality e2uipment. +ustomers choose
4et$een photo studios 4ased on their $e4sites and portfolios of
$or(" as $ell as the personal assurances of the salesperson they
$or( $ith at the studio that their needs $ill 4e ta(en care of.

?ord of mouth is extremely important for this 4usiness. ?hile the
product of the $or( 4ecomes 1ery 1isi4le" it is important that
customers feel so strongly a4out the experience of $or(ing $ith
their photo studio that they tal( a4out it to other 4usinesses and
contacts. .hese referrals are extremely helpful in generating
4usiness.
STRATEGY AND IMPLEMENTATION SUMMARY
.o 4uild its reputation as a 2uality choice for commercial
photography in the city" D5GGA07s +ommercial Photography $ill
focus on small and medium-si6ed 4usinesses. .hese include=
Eery Small 'usinesses @under !% employeesA
Small 'usinesses @!% to !%% employeesA
Medium 'usinesses @!%% to 8%% employeesA
.o reach these target mar(ets" Ms. Duggal $ill use email
mar(eting" 4usiness net$or(ing" and $e4 mar(eting to find clients
and to ensure that clients find Mr.. D5GGA0. .he +-O" Priyan(a
D5GGA0" $ill sell to clients" and 4oth he and an additional team of
assistant photographers $ill 4e assigned to client photo shoots in
the D5GGA07s studio and" $hen needed" at client sites.
COMPETITIVE EDGE
Mr.. D5GGA07s +ommercial Photography has a competiti1e edge
from the reputation of Priyan(a D5GGA0 in the 4usiness
community as a high-2uality photographer $ho is easy to $or(
$ith and attenti1e to the needs of clients. Ms. Duggal $ill continue
to de1elop this competiti1e edge 4y training additional
photographers $ith his signature style of photography and high
attention to customer ser1ice.
MARKETING STRATEGY
.he mar(eting strategy for Ms. Duggal +ommercial Photography is
4ased on the 4elief that using a fe$ mar(eting tactics extremely
$ell is prefera4le to using many mar(eting tactics $ith moderate
success $ith each. *ollo$ing are components of initial mar(eting
campaign=
Ema40 Ma2>e:45/6 -mailing a ne$ 4usiness announcement and
then monthly ne$sletters $ith details on ne$ pac(ages" the
de1elopment of the studio" and ne$ hires to past clients
and other targets in the 4usiness community. #e$sletters $ill
include helpful tips on ho$ to use photography and this $ill 4e
used to gain permission from mar(eting departments at
prospecti1e client 4usinesses to 4e sent the ne$sletters. ?ithin
these emailsF calls to action to encourage 4usiness referrals.
B.-45e-- Ne:982>45/6 Priyan(a D5GGA0 $ill promote the
4usiness through the local chapter of ). @)industan .imesA" the
+ham4er of +ommerce" and the 'usiness O$ner7s Association.
.hrough these meetings" Ms. Duggal $ill introduce his
company7s $or( to other 4usiness o$ners" share leads on
4usiness" and recei1e 4oth exposure and 2ualified referrals. .o
encourage mem4ers of net$or(ing groups to use D5GGA07s
ser1ices so that they are educated referrers" Ms. Duggal $ill
offer a !8< discount on ser1ices to mem4ers of the net$or(ing
group on their first purchase.
We? Ma2>e:45/6 Ms. D5GGA0 Photography $ill purchase
search engine ad1ertising $ith Google around commercial
photography (ey$ords for the city mar(et and gear its
ad1ertisements to$ards the needs of small and medium-si6ed
4usinesses. *urthermore" Ms. D5GGA0 Photography7s $e4site
$ill 4e optimi6ed for higher search engine ran(ing under these
(ey$ords.

SALES STRATEGY
.he company7s sales strategy is to utili6e the experience of
Priyan(a D5GGA0 as salesperson. Ms. Duggal $ill 4e a4le to
assure clients of $hat the company and its photographers can
accomplish as all $ill 4e personally trained 4y him.

.o increase the closing rate of prospects" Ms. Duggal $ill meet
clients at their 4usinesses $hene1er possi4le to go 4eyond phone
con1ersations. )e $ill use a portfolio of images and testimonials.
Ms. Duggal $ill use Salesforce.com as a tool to manage the sales
process" and to train additional salespeople $hen the time comes.

.he scheduling and fulfillment of ser1ices $ill 4e administered 4y
the office manager" $ho $ill use Salesforce.com and Buic('oo(s
to manage clients and capture information related to orders.
Standard procedures for order fulfillment $ill 4e created 4y Ms.
Duggal and chec(ed on an ongoing 4asis.
SALES FORECAST
Sales for photo shoots are expected to dri1e the 4usiness and $ill
gro$ $ith the gro$ing staff. Additional photographers $ill 4e hired
to meet the need first as part-time and then as full-time staff.

Supplementary re1enue streams $ill 4e photo editing ser1ices
and printing and framing of images. *inally" off-hours for the studio
$ill 4e rented for e1ents of other purposes to create a steady
monthly stream of re1enue.
SALES FORECAST
SALES FORECAST
Yea2

Yea2
"
Yea2
#
Yea2
$
Yea2
%
Sales
Photo Shoots `!%:"99! `!8:"CD `9%%"%%% `9&%"%%% `D8%"%%%
Photo -diting `88"9D8 `:;"&8; `;%"%%% `!%"%%% `8%"%%%
Print. > *rame `!9"9! `!;"8!D `8%"%%% `&%"%%% `%%"%%%
Studio ,ental `&":9C `9:"%%% `9:"%%% `D%"%%% `8%"%%%
.otal Sales `98:":9: `9;!"!D `D&:"%%% `:%%"%%% `&8%"%%%
Yea2 Yea2 " Yea2 # Yea2 $ Yea2 %
Direct +ost of Sales
Print. > *rame +ost `&"D; `!"&D9 `9&"8%% `8!"8%% `&8"%%%
Other +ost of Sales `89"D;8 `8C"C; `&"D%% `;%"%%% `!"8%%
Su4total
Direct +ost of Sales
`(+1*)& `)+1%&" `+)1*++ `$"1%++ `)(1%++
MILESTONES
.he promotional mar(eting 4efore the opening of the studio is in a
t$o month period in $hich an initial ?e4 mar(eting and email
mar(eting campaign $ill ta(e place" directed 4y the +-O" $ith
some help from the part-time administrati1e assistant" and
mar(eting 1endors @a ?e4 mar(eting specialistA. *urthermore" ads
$ill 4e placed to specifically highlight the studio as a rental option
for other uses.
?e4 Mar(eting specialist $ill 4e hired to set-up and maintain
Google Ad$ords campaign and to optimi6e $e4site for
search engines.
+onstant +ontact $ill 4e used to maintain email mar(eting
$ith announcements a4out the studio opening" ne$ staff"
and ne$ ser1ices.
MILESTONES
M/0-S.O#-S
Milestone S. Date -. Date 'udget Department
Sign 0ease on
Studio
;F9%F!%9 ;F9%F!%9 ` % Operations
)ire Part-.ime
Staff
FF!%9 FF!%9 ` % Operations
.rain Part-.ime
Staff
FF!%9 !F9F!%9 ` % Operations
Open Studio *or
'usiness
FF!%D FF!%D ` % Operations
?e4 Mar(eting
+ampaign
FF!%9 !F9F!%9 ` C"%%% Mar(eting
-mail Mar(eting
+ampaign
;FF!%D %FF!%D ` "%%% Mar(eting
,ental Studio
Mar(eting
F8F!%9 !F9F!%9 ` "%%% Mar(eting
.otals `+1+++
MANAGEMENT SUMMARY
Priyan(a D5GGA0 $ill act as +-O of Ms. Duggal +ommercial
Photography. Ms. Duggal has extensi1e industry" sales" and
operational experience. /mmediate hires $ill include one part-time
assistant photographer and one part-time administrati1e assistant.

.he +-O $ill 4e responsi4le for sales and mar(eting"
management of all staff" and fulfillment of client ser1ices.

.he first part-time assistant photographer $ill 4e Pa0a> A;.@a" a
recent graduate of the School of Eisual Arts and an accomplished
photographer ne$ in the industry. .he assistant photographer $ill
assist on shoots during training and 4egin to ta(e the lead on
photo shoots o1er time. )e $ill mo1e to full-time $ithin one year if
sales projections are met.

.he administrati1e assistant $ill 4e responsi4le for 4oo((eeping
@accounts paya4le and recei1a4leA" scheduling of shoots and la4or"
and fielding calls for rental of the studio and initial sales in2uiries.
)e or she $ill execute mar(eting campaigns @update $e4site" print
4rochures and portfolios" etcA. )e or she $ill offer customer ser1ice
to ans$er 4asic 2uestions 4y phone or email.
PERSONNEL PLAN
Ms. Duggal +ommercial Photography $ill 4egin its expansion $ith
one part-time assistant photographer and one part-time
administrati1e assistant" $ith the understanding that 4oth positions
$ill gro$ to full-time shortly. -ach year an additional assistant
photographer $ill 4e added.
PERSONNEL
PERSONNEL PLAN
3ear 3ear ! 3ear 9 3ear D 3ear 8
+-O ` :%"%%% ` :%"%%% ` :%"%%% ` :%"%%% ` :%"%%%
Assistant
Photographer
`99"&9: `DC"%%% `D;";!% `8";& `89";;9
Administrati1e
Assistant
`;"%; `!C"9DD `D%"%%% `D8"%%% `8%"%%%
Assistant
Photographer !
`% `9";D! `8"%%% `9%"%%% `9"!%%
Assistant
Photographer 9
`% `% `% `8"%%% `98"%%%
Assistant
Photographer D
`% `% `% `D `8"%%%
.otal People 9 9 D : &
T8:a0 Pa32800 ` !"&88 `8%"!C: `:D";!% ` !%";! `!D8";9
FINANCIAL PLAN
.he launch of the 4usiness $ill 4e financed 4y the founder7s
in1estment and credit and 4y in1estments from limited partners. /n
exchange for `8"9%"%%% in1estment in the 4usiness at startup"
limited partners $ill recei1e D;< o$nership shares. .he initial
funding re2uirements are modest for the 4usiness.

.he gro$th of the 4usiness" 4eyond the first year" $ill 4e financed
4y the free cash flo$s generated 4y the 4usiness. .his $ill allo$
for the expansion of staff to include additional photographers" the
ramping up of mar(eting expenditures" and the resulting increase
in sales. Only one photographer $ill 4e added per year in order to
ma(e sure that there is time for ade2uate training of ne$ staff.
START'UP FUNDING
*unding for the 4usiness is in part from personal loans"
credit cards" and cash in1estment 4y the o$ner" Priyan(a
D5GGA0. .he remainder of funding $ill 4e from one to
three limited partners in the form of e2uity in1estment.
START-UP FUNDING
Start-up -xpenses to *und ` !D"8%%
Start-up Assets to *und ` D:"%%%
.otal *unding ,e2uired ` &%"8%%
Assets
#on-cash Assets from Start-up ` 9"%%%
+ash ,e2uirements from Start-up ` 8"%%%
+ash 'alance on Starting Date ` 8"%%%
.otal Assets ` D:"%%%
0ia4ilities and +apital
0ia4ilities
+urrent 'orro$ing ` 8"%%%
0ong-term 0ia4ilities ` 8"%%%
Accounts Paya4le @Outstanding 'illsA ` !"8%%
.otal 0ia4ilities ` !"8%%
+apital
O$ner > 0imited Partners ` 8"%%% G ` 89"%%%
.otal Planned /n1estment ` 8C"%%%
0oss at Start-up @Start-up -xpensesA @` !D"8%%A
.otal +apital ` 99"8%%
.otal +apital and 0ia4ilities ` D:"%%%
T8:a0 F.5745/ ` &%"8%%
BREAK'EVEN ANALYSIS
.he 4rea( e1en for the 4usiness is high
As the salaries of staff are relati1ely fixed.
Monthly 'ills and other -xpenses are also to 4e met.
BREAK-EVEN ANALYSIS
Monthly ,e1enue 'rea(-e1en `!!"!!C
Assumptions=
A1erage Percent Earia4le +ost !%<
E-:4ma:e7 M85:;03 F4Ae7 C8-: `&"C%D
PROJECTED PROFIT AND LOSS
Gross margins are expected to remain consistent" as most costs of
the 4usiness are not direct costs of sales. .he greatest cost of the
ser1ice is la4or" $hich is part of salaries and not cost of sales" for
example.

/n year !" profit is expected to drop as capacity is increased to
prepare for gro$th. .his $ill rectify in future years as sales come in
line $ith the payroll expenses.
PROJECTED BALANCE SHEET
.he 4usiness is projected to sho$ gro$th in retained earnings
@$hich allo$ for di1idends to 4e paidA as there are not su4stantial
additional capital expenditures needed after the launch. .here $ill
4e healthy gro$th in net $orth o1er the first fi1e years of operation"
as additional de4t is not re2uired to fund the 4usiness.
PRO FORMA PROFIT AND LOSS
3ear 3ear ! 3ear 9 3ear D 3ear 8
Sales `98:":9
:
`9;!"!
D
`D&:"%%
%
`:%%"%%
%
`&8%"%%%
Direct +ost of Sales `&%";C: `C%"8:! `%C";%
%
`D!"8%
%
`C&"8%%
.otal +ost of Sales `&%";C: `C%"8:! `%C";%
%
`D!"8%
%
`C&"8%%
Gross Margin `!C8":8
%
`9"8:! `9:&"%
%
`D8&"8%
%
`8:!"8%%
Gross Margin < C%.%< &;.D:< &&.!< &:.!8< &8.%%<
-xpenses
Payroll `!"&88 `8%"!C
:
`:D";!
%
`!%";!

`!D8";9
Mar(etingFPromotion `9:"%%% `9:"%%% `8%"%%% `:%"%%% `&%"%%%
Depreciation `:"%%% `:"%%% `:"%%% `:"%%% `:"%%%
,ent `!D"%%% `!8"!%% `!:"D:% `!&"&C9 `!;"&!
5tilities `!"D%% `9"%%% `9"8%% `9"C%% `D"!%%
/nsurance `!"D%% `9"%%% `9"8%% `D"%%% `D"8%%
Payroll .axes `C"%; `!!"8D9 `!D"&9C `9%"!CC `9:"&&;
Other `!"%%% `D"D%% `&"%%% `!%"%%% `!8"%%%
.otal Operating -xp. `!9":D
:
`!:%"D!
;
`!;:"C `989"&;
!
`D!%"CD8
Profit @/nt. > .axA `&!"%%D `8"9D `&%";C! `%9"&%
C
`D":88
-'/.DA `&C"%%D `8&"9D `&:";C! `%;"&%
C
`D&":88
.axes /ncurred `!"D:D `8"9D% `!"!;8 `9"! `D!"D;&
#et Profit `%+1+)" `#%1(*# `$*1&)( `("1%*& `**1%*
#et ProfitFSales $!+$< *!#< +!$$< "!+< #!""<
PRO FORMA BALANCE SHEET
Assets @+. AssetsA 3ear 3ear ! 3ear 9 3ear D 3ear 8
+ash `8%"%D; `C;"8C! `!";:D `:&"%D: `!!&"&:%
Acc. ,ecei1a4le `!D"!D; `!&"8;C `99"8% `D!"!!C `8!"&C8
Other +. Assets `"%%% `"%%% `"%%% `"%%% `"%%%
.otal +urrent Assets `&8"!;; `C"C% `8:"D:: `!%"!&D `!C"8D:
Assets @0ong-termA
0. .erm Assets `9%"%%% `9%"%%% `9%"%%% `9%"%%% `9%"%%%
Acc. Depreciation `:"%%% `!"%%% `C"%%% `!D"%%% `9%"%%%
.otal 0ong-term Assets `!D"%%% `C"%%% `!"%%% `:"%%% `%
.otal Assets `;;"!;; `9:"C% `:C"D:: `!:"!&D `!C"8D:
0/A'/0/./-S A#D +AP/.A0
+urrent 0ia4ilities
Accounts Paya4le `8"&& `:"C%D `!%";; `!:"!8; `9!"CDC
.otal 0ia4ilities `8"&& `:"C%D `!%";; `!:"!8; `9!"CDC
Paid-in +apital `8C"%%% `8C"%%% `8C"%%% `8C"%%% `8C"%%%
,etained -arnings @`!D"8%%A `!8"8C! `9;"&C& `8;"D!% `;"89;
-arnings `8%"%C! `98"&;9 `D;":C& `&!"8;: `;;"8;
.otal +apital `C9"8C! `;"9&8 `D&"D&D `;%"%8 `!DC":;C
.otal 0ia4ilities> +apital `**1"** `#&1)+ `&)1$&& `"&1"($ `")1%$&
#et ?orth `)#1%)" `*1#(% `$(1$($ `*+1+% `"$)1&*)
LONG'TERM PLAN
.he profita4ility of the company $ill increase in a4solute terms $ith
gro$th. )o$e1er" the gross margins and net profit margins $ill not
increase dramatically o1er time as the additional gro$th in
re1enues re2uires additional direct la4or. .o maintain the
reputation of the company" this la4or cannot 4e performed 4y less
s(illed" lo$er-$age photographers.

As re1enues gro$ and additional photographers are hired" the
+-O $ill focus a greater percentage of time on sales and
prospecting. .his $ill allo$ for steady gro$th in re1enues $hile the
4rand of D5GGA07s +ommercial Photography 4ecomes
esta4lished in the mar(et. A larger studio space $ith multiple
rooms can 4e leased after a critical mass of utili6ation has 4een
achie1ed $ith the current space. .his $ill allo$ for continued
gro$th.