TABLE OF CONTENTS INTRODUCTION EXECUTIVE SUMMARY ........................................................................................................................ 4 COMPANY DESCRIPTION................................................................................................................... 5 INDUSTRY ANALYSIS AND TRENDS .................................................................................................. 6 TARGET MARKET................................................................................................................................ 7 THE COMPETITION ............................................................................................................................ 8 STRATEGIC POSITION AND RISK ASSESSMENT ................................................................................. 9 MARKETING PLAN AND SALES STRATEGY .....................................................................................10 OPERATIONS.....................................................................................................................................11 TECHNOLOGY PLAN........................................................................................................................12 MANAGEMENT & ORGANIZATION.................................................................................................12 SOCIAL RESPONSIBILITY AND SUSTAINABILITY ..............................................................................13 DEVELOPMENT, AND MILESTONES .................................................................................................14 INCOME STATEMENTS ......................................................................................................................15 CASH FLOW .....................................................................................................................................16 BALANCE SHEET ...............................................................................................................................25
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INTRODUCTION Raised in Indonesia and Japan has exposed me to different form of art as well as culture. But one thing in particular that caught my interest is photography. Through photo, I can really express myself accordingly. Attending an art school was never in my mind. Being a diplomat was. But when I chose Ringling, I realize a different side of the world that makes me happier and feel more useful as an Individual. I am starting to realize how my friends and my surrounding make me look at the world in a completely different way. A new approach where I can also express myself through my work. Not just through writing. Turned out that photography made me explore it deeper, not just taking random shots, but also actually putting a story behind it. KS Studio is collaboration between my business knowledge as a Business of Art and Design major as well as my skills as a Photography and Digital Imaging minor.
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EXECUTIVE SUMMARY Everyone wants to capture special moment. Whether that is through a photograph or a video. Many have been making the effort to go to professional services and spending the big bucks to get the best result. But let’s not forget that the photograph often came in color or according to the customer’s request, it can be tweaked into black and white in Photoshop. What if the black and white photograph is shot developed and printed using the traditional method? Imagine the client’s is holding a daguerreotype instead of a computer file. Sometimes, uniqueness can beat versatility. KS Studio is around to present the customer a photography service that is mostly focusing in black and white photograph. Only, the photograph will be taken using either medium or large format camera depending on the client’s request. In this case, the uniqueness lies within the negative that acts as a file. Client will be given the negative along with the print and they are more than welcome to bring the negatives back to the studio whenever they need an extra copy of prints. The dying art of traditional photography actually opens a new opportunity for business. The rarity of the existence is what makes this particular new venture to appear different than any other type of photography business out there. Although, traditional photography is what is mostly focused on, clients can also choose to get their photo done digitally in color. The traditional method is there so that people have more choices and it become less boring for them. As a new business that is trying to get the attention of clients, some extra features promotional offer will also be added according to the market demand. 4 KARISHA SARASWATI
COMPANY DISCRIPTION The company name is KS Studio. It is the first initial of the owner’s middle and last name. A name that works in the industry is often a simple name that is easy for people to remember as well as connecting the company to the history of background. KS studio mission statement is to create a different experience in photography based on the traditional technique.
As a new venture, we are open into changing the business along the way. The service that we offered currently is traditional and digital photography. The ideal event that we will be covering is wedding, private parties and other location shoot based on client’s request. Along the way, we are looking into video production as well. Since the business has not been around for too long, there are only 2 people working within it. Karisha Saraswati is the owner and photographer, Nikhita Winkler as photographer and editor. Within the next two years, we are looking into adding 2-3 more employees. Currently, the location will be in Rogers Park, Chicago. The reason Chicago is perfect is due to the fact that there are over 13 different ethnic group in Chicago itself and the demographic of the city is constantly growing. Chicago is also the second student city after Boston. Therefore, allowing the opportunity to hire an intern that is currently still finishing their education.
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INDUSTRY ANALYSIS TRENDS Currently, almost all Industry within the United States is in need of the perfect image representation. On top of that, the demand of photography business for purposes such as website (professional) or personal reasoning is quite high. According to research, November and December would be the high peak of the season considering those months has Christmas and New Years Eve the two most celebrated holiday in the United States and also the most time where people decided to get married and host a family or business party. The technology that we will be using will simply come from the equipment whether that is camera or the lighting equipment such as b-rolly boxes and octobank. Nowadays, what is most sought after in the industry of advertising is cinematography where there is only one solely moving part in an image.That is our most competitive industry currently. Not only they are able to take many of the client’s interest in Advertising Industry, but also they are also able to make their own Nietzsche in the business of photography. But even before this came up as an issue, KS Studio will be able to provide a photography service that will still be able to focus in black and white traditional photograph and convert it to cinematography.
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TARGET MARKET Target market for this industry is people from age 18-65 years old or whoever that is interested in having their precious memory captured. Mostly we are narrowing it down to business owner such as Public Relations company, and Advertising Agency. But also to event such as baby and wedding shower, baby wedding ceremony/party, farewell party, etc. But if our clients do not have any of those events, they will still be welcome at KS studio and we will fulfill their needs to the best of our ability. The market size of this business is considered high. For example, a production company in Sarasota, FL called Plota Productions first started in doing photo only, but they are currently able to spread their wings into doing videography. They have been working with top magazines such as women’s health magazine sports illustrated, Vogue, GQ magazine, etc. Plota Production is an inspiration as well as an example because this company also started from only doing private portrait in events such as wedding, commercial, etc. The client’s buying sensitivity will be depending on the previous work that they see or how tempted they are when they see some sample work. Many times, the word of mouth and previous testimonials are also factors that will determine how likely the clients will use the service.
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THE COMPETITION Currently the competition lies around photographer who chose to do freelance. On a bigger scale, the competition has not yet existed considering how young the company is. But as years passed and we are able to retrieve more client and gathered more experience, we will be able to determine what are the company that we can consider our competitor. KS Studio will not try to lure customer in by giving a low price. Our strength lies within the delicacy and the uniqueness of the photography process that cannot be received in so many places. This will explain why we have a very specific target market. Barriers to enter the Industry and become an even bigger name are quite big. Especially in a city like Chicago where lies many firm’s and top company headquarters that needed photography services often. They have established a clientele based on trust and years of experience and it will not be easy to break it.
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STRATEGIC POSITION AND RISK ASSEMENT The company strength lies on the fact that the client’s realized how valuable it is to own the negative and how delicate the process of developing and printing the photo itself. Unless they see the process, there is a slim chance that they will be able to appreciate the work. Unless there is a clear concept about the marketing strategy as well as the management of KS Studio, the risk will be far too high considering how expensive some of the photographic equipment is. Taking loans is one option and angel investors are another option. But crowd funding is also another solution to just open the introduction to the business as well as spreading the word about the existence of the company.
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MARKETING PLAN AND STRATEGY The Company’s Message to the public would be create memory through the original way. Which means, they have the access to be able to explore the process of black and white traditional photography.That is the key uniqueness of KS Studio. Our marketing strategy is basically through cinematography in black and white that can catch the eye of regular clients or clients that has design background such as advertising agency and Public Relations Company. For example, the first time customer will be treated with 15% off and 10% off the next visit if they refer KS Studio to other future clients. Not only that, but they are also able to gather points which can be used for their future order whether they chose to do it traditionally or digitally. In some cases, strategies partnership can also be applied. Collaboration with another photography and design studio is a possibility when we can cover each other. For example, as a company that is mainly doing large format photography, we can collaborate with a studio that specifically does digital photography and that means we get to use their digital software where we can perfect KS Studio cinematography more and the other studio can use our dark room equipment. Online marketing tactics is one thing that can be channeled through things such as the website design as well as perks that can be found by client’s online. We can collaborate with website such as RetailMeNot to reveal the code before clients finalize their order.
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OPERATIONS For the first year, $20.000 is crucial to meet some of the criteria that are necessary in order for the business to start running.This can either come from angel investor, bank loan or project crowd funding. The facilities that we will be using will be all rented. We will be operating in Rogers Park neighborhood in a warehouse that used to operate as high school. The owner converted the entire space with darkroom equipment that he no longer uses and decided to rent out the place so that local business owner can start building their dream.This way, it saves us a lot from renovating and buying other equipment and we could use those budgets for advertising and marketing KS Studio.The onlystudio equipment that we still need to cover is the equipment for digital shooting.Thing such as soft box, b-rolly box, octobank, light meter, etc. KS Studio will have a 24/7 hotline that will be able to answer the customer’s questions and help them to the best of our ability. There will also be email and Facebook page in case the customer chose to communicate that way.
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TECHNOLOGY PLAN KS Studio has a long-term goal of specializing the company in cinematography. A high tech DSLR camera will be a huge part of this business. The software needs that will be essential will be Adobe Photoshop, Illustrator, Lightroom, as well as Premiere. Hardware that will be mainly needed is desktop computers, hard drive, webcam camera, security camera, printer as well as scanner. Hardware and Software are the things that are just as essential as the initial budget to start the company. So far, my partner and myself can take designer’s role. But as soon as the company starts growing, we might want to expand into hiring more people. MANAGEMENT & ORGANIZATION As a student in Business of Art and Design major, I will be acting as the owner and the photographer. Nikhita Winkler will act as second photographer and the main editor. For every client’s we got, we charged 10% fees up front from the total amount of the whole project. First time client will be eligible for 15% off of the entire up front charge. Our long time goal is to be able to change into a company that also focuses in cinematography but still able to keep the originality of the black and white photographs. Milestones are set so we know what we need to accomplish within a certain period of time. Below is a complete milestone from preparation until the time of opening.
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SOCIAL RESPONSIBILITY AND SUSTAINABILITY Our social responsibility is to keep the water clean and to not contaminate it. The business will be dealing with a lot of chemical such as HC 110 developer to process the film, stop bath, and fixer. There are strict requirements that we have to follow in order to keep the business running. No developer or fixer can be thrown straight down the drain.This particular chemical is extremely toxic and if consume by human body can potentially caused cancer. Developer has to be mixed with stop bath and at least 50ml of water in order to neutralize the Ph. and no longer make it toxic chemicals when poured down the drain. Fixer on the other hand had to be mixed with water in order to be thrown away. Since Rogers park water system is being shared throughout the entire neighborhood, It would be wise to keep the earth healthy and make is less polluted. Dark room chemicals can caused serious damage to the planet as well as the human body faster than global warming. For the future employee, we will hold a series of training that had to be refreshed every 6 months. That way they know the new procedure and will always be careful before pouring anything down the drain. The sustainable effort KS Studio can contribute is by using a glossy fiber paper for every printing. This particular paper made by Ilford can certainly minimize the amount of the chemical that the dark room requires. Not only that, it is also recyclable material. Fiber paper is also used for archival purposes. It is good for our clients considering the durability that can last for 20 years.
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DEVELOPMENT AND MILESTONES Our long time goal is to be able to change into a company that also focuses in cinematography but still able to keep the originality of the black and white photographs. Milestones are set so we know what we need to accomplish within a certain period of time. Below is a complete milestone from preparation until the time of opening.
Milestones Location Scouting Digital Equipment Rental Website Design Process Office Decoration Ordering Dark Room's Chemical Sign Bank Loan Black and White Equipment Purchase Open House Equipment
Dates of Completion 6/14/14 6/20/14 7/1/14 -‐ 7/10/14 7/1/14 -‐ 7/25/14 7/27/14 7/28/14 8/1/14 8/2/14
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