Weare:creative Sarah Pritchard / Baljeet Samra Beth Yates / James Flanagan Enterprise & Innovation / OUCE255
Business Plan 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 Web Plan Website Marketing Strategy Development Requirements Financial Plan Hourly Rate VAT Cash-flow Forecast
Weare:creative Enterprise & Innovation / OUCE255
Executive Summary
We are: creative is a design company based in Leeds, specialising in innovative print based graphic design solutions. We are will focus on producing bespoke print jobs, which are high quality and short run. The target customers are established companies that provide high quality services or products to exclusive clients. We are; will initially operate out of the Old Broadcasting House, hot desking 3 days a week for up to the first 18 months of trading. By this point we plan to have enough incoming business revenue to be able to move into our own premises. We are: creative also plan to establish a twice yearly creative event, that focuses on exhibiting the work of its own studio, along with that of other creatives working in the areas of print. This will initially be hosted in a separate exhibition space, funded by the sale of tickets to the public along with sponsors from various industries. This event will create numerous networking and work opportunities, and the aim is that this will grow in scale and exclusivity as the company does.
Objectives
The objectives for the first three years of operation include: // To maintain a diverse client base and a well established relationship with industry creatives. // We will initiate and maintain a productive and mutually beneficial relationship with local printers. // To establish a twice yearly creative networking event that incorporates the exhibition of our own and local creative practices. This will be supported by a series of mini exhibitions once we have established our own gallery space. // After 18 months of business have a permanent business residence. // By the end of the three years we want to own our own exhibition space.
Mission
We are: creative’s mission is to provide a bespoke design service specialising in high quality, short run print jobs. Our aim is to provide the best quality print design service in the industry, producing innovative designs that enhance our clients image.
Keys to Success
The keys to success are: // Networking - we aim create strong links with both our client base and other industry professionals. Our bi-monthly networking events aim to help strengthen these relationships. // Quality - We strive to make our work the best quality it can be. Out meticulous eye for detail and passion for print will ensure that we are the best in this market. // Sexy Print - We aim to push the boundaries and limitations of print. We’re not afraid to experiment with new methods and techniques to ensure our clients get a truly unique and effective outcome. // Diversity - our differing skills sets and areas of interest within the collective will allow us to produce work that is the full package.
Company Summary
We are: creative is a print driven design studio that serves high profile and exclusive clients. The firm will be based in Leeds and will initially operate from Old Broadcasting House Leeds.
Company Ownership
We are: creative is a private limited company, with equal ownership shared between Sarah Pritchard, Baljeet Kaur Samra, Bethany Yates and James Flanagan. Accounts will be managed by individual team members on a project by project basis. The whole team will be responsible for finding and pitching work to clients, and will take shared responsibility for company promotion and marketing.
Business Plan
Sarah Pritchard / Baljeet Samra / Beth Yates / James Flanagan
Weare:creative Enterprise & Innovation / OUCE255
Start Up Summary
We are will incur the following start-up costs: // A single Macbook Pro 17� with the full Adobe design premium suite licence. // 4 memberships to the old broadcasting house facilities for the first 18 months. // Assorted office supplies. // Branded business stationary. // Costs covering legal requirements, including the initial formation of the business, outline client contracts and any other legal proceedings
Services
We are: creative provides creative design solutions to a range of established companies throughout the UK. We provide print based design across a range of formats, including branding, publications and promotion. Project pricing will depend upon the requirements of the client, and will be negotiated on a project by project basis. We will charge a minimum of ÂŁ25 an hour, this will increase depending on the number of us working on a project. We will be based in the attractive Old Broadcasting House facilities, which include dedicated meeting spaces for us to use with clients.
Market Analysis Summary
We are; will be targeting established businesses and creative organisations. We will also be pitching to galleries and exhibition spaces to set up ongoing creative events and networking opportunities.
Market Segmentation
Our specific target audience is established companies with a need for high quality, short run/bespoke print jobs. These companies will be marketed towards exclusive clients and will themselves provide high quality and exclusive products/services Our clients need us to make them appear as high end and exclusive as their own customers are. We will push print to the next level to maintain and enhance their existing quality reputation, using bespoke ideas and our meticulous eye for detail.
Target Market Segment Strategy
// Networking : We are; plan to promote ourselves and our services using a twice yearly creative event, showcasing both our own work and the work of other creative’s. These will be an opportunity to keep both potential and current clients up to date with out latest creations, as well as being an opportunity to network with other professionals. We will invite potential clients, marketing the event as an exclusive opportunity for all involved to view the best contemporary print design. These exclusive events will be supported by smaller pop up exhibitions that will become more established once we have our own gallery/studio space. // Client referral: When people need sexy print, we want We are; to be the first studio they turn to. We want to become a trusted and valuable service provider that clients feel proud to work and be associated with. We want our name to spread by word of mouth, for people to know when a print job is designed by We are; and be proud of that. // Direct Marketing: We will begin by targeting a range of clients using a direct mail campaign. This will aim to promote ourselves and what we do. A few exampled of the types of client we will target are companies such as The British Fashion Council and events holders such as Somerset House and the Hepworth Gallery. This is a condensed list of examples, we aim to target at least 5 companies a month, this figure will adjust according to the responses of clients and any work that results from the marketing.
Business Plan
Sarah Pritchard / Baljeet Samra / Beth Yates / James Flanagan
Weare:creative Enterprise & Innovation / OUCE255
Service Business Analysis
Our main service will be print based design, however we will strive to outsource skills sets we do not posses if they are required by the client. We feel this will give our company credibility, as instead of attempting to be a jack of all trades, we are focused on becoming the best practitioners working with print, collaborating wherever other skills are required.
Competition and Buying Patterns
Our main competitors based in the north are:
// // // //
Design Project Box-Head* Grid Creative Face.
An in depth SWAT analysis for each can be found at the end of the business plan.
Web Plan
We intend to maintain an online presence in the form of a website. This will be an integral portal for our clients, showcasing our past projects as well as our mission statement and methods of contact. We also plan to maintain an active twitter account. This will give us the opportunity to network with creatives and clients in real time, and also keep people aware of who we are and what we are currently working on. This method of communication will help to advance our reputation through word of mouth, and exposes our company to a much wider and more immediate audience than out website alone. Our web address will be included on all of our printed promotional material, as well as being linked through from out twitter. Our website will initially be developed by ourselves to keep costs low, however as the company expands, and the website needs to increase in complexity we will enlist the help of a web development professional.
Financial Plan
We require an initial cash injection of £5000 to get our company started. We plan to fund this using one of the following options: Business Start up loan: We will approach a range of high street banks and attempt to secure the initial £5000 investment required to set our business going. Interest rates are variable, however we have budgeted for a loan with a 3 year repayment term with around 10% annual interest.
Ideally we would like to go approach Barcalays for our loan, as they will be facilitating our business account and they offer a 6 month repayment holiday at the beginning of the loan. This will have a huge impact on cash flow during out initial months of trading.
Because we come into the 18-30 category we may be eligible for a Princes Trust business start up loan of up to £5000. This could be a viable option if we are tuned down by the high street banks. They also offer a 6 month repayment holiday and come with free business banking.
Business Angels: If both of these options fail then our next option would be to try and find a Business Angel to fund our start up. These are private investors that will provide the money in exchange for equity in the business, typically between 20 and 40% This is not ideal, as we wish to withhold sole owner ship of our company, but is an option we will consider if necessary. Websites such as the British Business Angels Association (bbaa.org.uk) will help us to find an investor.
Business Plan
Sarah Pritchard / Baljeet Samra / Beth Yates / James Flanagan
Weare:creative Enterprise & Innovation / OUCE255
Hourly Rate
We each calculated that we would need a personal annual income of £25,000, to be able to cover the cost of living in Leeds and being within easy commuting distance of our chosen workplace. Our overheads for the first 18 months of trading are quite low. This is because the facilities we have chosen to work from include all bills and internet in the rates. It also provides us with access to all the computer equipment and industry standard software we will need, so this has significantly lowered our start up costs, in turn keeping our monthly loan repayments low. These two factors combined mean that we require an hourly rate £22.10 to cover all out business costs and provide us each with our desired annual income. We have decided to round this figure up to £25 per hour, this gives us some contingency if we don’t cover every hour required and will also start to give us some profits, that we can use to put towards funding our exhibitions and saving to move into our own premises. Our contract at Old Broadcasting House is for 3 days a week (this may increase depending on how busy the space is). This gives us a few free days a week to be able to work part time if necessary, especially if work is slow for the first few months. We have planned for our admin and pitching days to work out around the available studio time. We also have our first company mac, so that is available should we need to do any work outside of our allocated studio times.
VAT Registration
Business Plan
Once we are established, and working 170 days a year each, out annual turnover will go over the threshold for VAT registration. However, as our sales forecast for our initial months of trading is significantly below this we are going to postpone becoming VAT registered until necessary. If our sales work out better than projected, we will reconsider this plan at the appropriate time.
Sarah Pritchard / Baljeet Samra / Beth Yates / James Flanagan
Weare:creative Enterprise & Innovation / OUCE255
Financial Plan Start Up Costs: Business registration Adobe software Backup system Stationary Initial marketing Business cards First 3 Months rent First 3 months phone bill First 3 months accounting First 3 months MacBook payment Initial Travel costs
£40.00 £1,725.24 £300.00 £200.00 £500.00 £150.00 £1,296.00 £75.00 £57.00 £262.38 £390.00
Total Loan Required
£9,999.62
Monthly Overheads: Business insurance (inc Professional Indemnity Policy) Loan repayments Business phone Old broadcasting house membership Macbook pro 17” Online quickbooks essentials Business account Travel costs
Monthly Total
£320.00 £162.00 £25.00 £432.00 £87.46 £19.00 £0.00 £400.00 £1,445.46
Yearly Costs: Accountant Solicitor
Yearly Total Overheads
Business Plan
£250.00 £250.00
£14,885.52
Sarah Pritchard / Baljeet Samra / Beth Yates / James Flanagan
Weare:creative Enterprise & Innovation / OUCE255
Financial Plan Wages: Gross income Personal tax allowance (2011-12) Total taxable income Income Tax NIC (class 2) NIC (class 4) Sub-total
£25,000.00 £7,475.00 £17,525.00 £3,505.00 £130.00 £463.83 £4,098.83
Net Income
£20,901.17
Wages: Total costs Amount per person Daily rate needed Hourly rate needed (based on 8 hour days)
Business Plan
£17845.52 £4461.38 £173.30 £21.66
Hourly Charge Annual turnover Annual wages Annual costs
£25.00 £136,000.00 £100,000.00 £17,845.52
Gross profit Corporation tax
£18,154.48 £3,812.44
Net Profit
£14,342.04
Sarah Pritchard / Baljeet Samra / Beth Yates / James Flanagan
Weare:creative Enterprise & Innovation / OUCE255
Cashflow Forecast:
Business Plan
Sarah Pritchard / Baljeet Samra / Beth Yates / James Flanagan
Weare:creative Enterprise & Innovation / OUCE255
Cashflow Forecast:
Business Plan
Sarah Pritchard / Baljeet Samra / Beth Yates / James Flanagan
Weare:creative Enterprise & Innovation / OUCE255
Cashflow Forecast:
Business Plan
Sarah Pritchard / Baljeet Samra / Beth Yates / James Flanagan