OUR BUSINESS PLAN.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

UPSTAIRS DOWNSTAIRS DESIGN BRUNTSFIELD PLACE EDINBURGH PHONE: 0131 566 8321 MOBILE: 07777889231 EMAIL: UPSTAIRSDOWNSTAIRS@STUDIO.COM WEBSITE: UDSTAIRSDESIGN.COM

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

OUR BUSINESS IDEA Our idea is to create a two part business, one part of our business will be a design studio based upon branding and identity where we will create fresh and innovative designs for our clients. The second part of the business will be a gallery/ retail space where we will invite up and coming designers to sell and exhibit their work for a small percentage of their profit.

WHAT WE WILL NEED TO GET STARTED We will need a property with an upstairs and downstairs floor, the property must be suitable for both parts of our business and be situated in a good location. We will also need all up to date design facilities including Apple iMacs and Adobe Creative design suite, furniture for both parts of the business and a list of potential clients.

WHAT IS THE NAME OF OUR BUSINESS We are Upstairs Downstairs Design. The name came from the fact we will be a two part business offering two services. We wanted our design studio to be above our gallery/ retail space.

TYPE OF BUSINESS Our business will be a sole trader as we will be the only party to invest/ own the business.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

PLANNING OUR SHORT TERM BUSINESS GOALS ARE: We want to start up our business and start to build a network of contacts and clients that will invest in our business. and build a good reputation for ourselves.

OUR SHORT TERM FINANCIAL GOALS ARE: We want to break even with our spending and start up costs of the business within the first year of opening.

OUR LONG TERM BUSINESS GOALS ARE: We want to have a solid and ever building network of customers and clients which will trust in us as a business and continue to build up our reputation. We also want to be the best in our business area within our location and possibly even expand the business to other locations either within Edinburgh or other major cities within the UK. OUR LONG TERM FINACIAL GOALS ARE: We want to make a 50% profit of our original spendings and investments into the business, over 3 years.

THIS IS WHAT WE WANT TO ACHIEVE OVER THE NEXT FEW YEARS YEAR ONE: Make sure we get through the first 6 months of the business opening and build a network of customers and clients. Build up the reputation of the business so that we get more ‘business’.

YEAR TWO: We want to be in a comfortable finacial situation and have built a stable client base which is ever expanding. We may also be in the position where we can collaborate with other local businesses and universities to encourage graduate designers to exhibit/ sell their work within our gallery shop space. Therefore building more bridges with small business and potential clients and customers.

YEAR THREE: We want to have made a large profit by the third year of starting the business.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

OUR PROPOSITION STATEMENT We are a family of creative thinkers who strive towards bringing good design to light.

Our aim is to encourage and support local young designers who wish to get their work noticed within the creative industry by giving them the space to exhibit and sell their work.

We will also be building strong relationships with our own clients by producing innovative and creative solutions to our clients needs.

We are all about encouraging and providing great design.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

OVERHEAD COSTS Business insurance: ~ £12pcm Professional and product liability: ~ £34pcm Public liability: ~ £12.50pcm Premises costs: Rent/ business rates/ electricity/ gas/ repair/ security Rent: £750pcm/ £9000pa Utility bills: ~ £130pcm Total: ~ £10,560pa Telephone: ~ £20pcm Mobile phone: ~ £25pcm IT costs: Software: ~ £1810 (Adobe creative suite, one off) x2 Computer: ~ £1250 iMac x2 (two team members already have laptops with software) Repair: ~ £300pa Research costs: Books and magazines/ materials for research/ travel for research: ~ £1000pa Professional advice/ accountant and solicitor: ~ £500pa Promotional costs: ~ £2000pa Studio equipment: ~ £600 (one off) I worked out that in order to get the business up and running we would need to borrow around £25,000 from a bank. The bank we looked at was Barclays, they would charge a 5% interest rate over the amount we borrow over 5 years. Meaning that we would borrow £25,000 but pay back £30,000 over the 5 years. This means that our monthly repayments would be £500.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

This makes our monthly payments for all of the above: ~ £1785pcm Meaning each day we would need to make ~ £60 to break even After working out how much we would need to make to break even, we decided on an amount of which we would like to be paid per day and our hourly rate as a business.

For example if we wanted to earn ~ £25,000pa each, we would need to charge £125 a day each. Making our hourly rate ~ £18.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

PRICING PRICE PER HOUR/ PER DAY THAT WE ARE GOING TO CHARGE (EACH): £18 PER HOUR £125 PER DAY DIRECT COSTS PER HOUR/ PER DAY: £60 PER DAY WORKING 8 HOURS PER DAY = £7.50 PER HOUR GROSS PROFIT/ PER HOUR/ PER DAY: £18ph - £7.50ph = £10.50ph PROFIT MONTHLY PROFIT OF £720PCM OVERHEAD COSTS ESTIMATE FOR THE WHOLE FIRST YEAR OF TRADING: ~ £21,500PA

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

CUSTOMERS OUR TYPICAL CUSTOMER PROFILE AGE: 18-35 year olds SEX: Male and Female CUSTOMERS WILL USE OUR PRODUCT/ SERVICE FOR: We will have two main focal points to our business, one being the design service and the other being the shop/ gallery space. We will have customers who buy from the shop, clients who we will work with for our design service and then graduates and young designers who will use our shop/ gallery space to sell/ exhibit work.

WHAT THEY VALUE MOST ABOUT OUR PRODUCT/ SERVICE: We will offer creative solutions to our clients needs at a competetive price, offering amazing value for money. We will build a relationship with each client and make them feel special each and every time they use our service. The shop will offer good value for great design and with our idea of letting graduates sell work in our shop, we would reclaim 15% commission on items sold.

WHAT THESE CUSTOMERS WOULD VALUE (BUT DONT REALLY GET FROM EXISTING BUSINESS): Our aim is to offer a friendly service within all our business areas, we will build strong relationships with all customers and clients which will make them come back to us again and again. With the graduates, we will offer discounts where we will create some promotion for them at a discounted price when they exhibit/ sell work in our shop.

THEY WILL BUY MY PRODUCT/ SERVICE THROUGH THE INTERNET/ AT OUR SHOP: Our customers for the shop will be able to purchase online, this aim will not happen straight away but after the first year of business we will review sales and set up a website to expand our business. Clients for the design aspect of the business will be able to get quotes for design work via email and our website.

BUYING OUR PRODUCT/ SERVICE WILL BE A ONE- OFF PURCHASE/ REPEAT PURCHASE: We will aim to build up our customer satisfaction for the shop so that customers come back again and again, and due to the ever changing stock we will have, customers will come back to see what is new. We will also be aiming to build strong relationships with clients through the design business which will have them coming back to us again in the future or even recommending us to new potential clients.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

THE AFTER- SALES SERVICE THEY EXPECT FROM US IS: Clients who will be using our design service can expect regular emails and updates about our work and what we have to offer. We will aim to keep in contact with each and every client where possible in order to build bridges with them. They will not only recieve outstanding design from us, but they will have a friend for life.

Customers who purchase from the shop will recieve a warm and friendly welcome whenever they visit the shop, we will make their shopping experience one to remember so that they will visit us again.

Graduates who exhibit/ sell work in our shop can expect support where possible after they have used our space. We will keep them up to date via email and our website on offers we have regarding the gallery/shop space.

THEY WOULD CHOOSE OUR PRODUCT/ SERVICE OVER OUR COMPETITORS BECAUSE: We will offer outstanding customer service, great design work at competitive prices. Not only this, we will build strong relationships with clients and make them feel they have a friend for life.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

COMPARING OUR COMPETITORS (SWOT ANALYSIS) TOUCH DESIGN STUDIO: STRENGTHS: Big clients (WWF), loacted in the centre of Edinburgh, website creates a good first impression, team has a range of people with different skills equalling more to offer clients.

WEAKNESSES: Logo isnt as memorable as it could be.

OPPORTUNITIES: Could expand business.

THREATS: There are a lot of design studios in Edinburgh to compete with.

EDINBURGH DESIGN STUDIO: STRENGTHS: They have won awards, they cover both digital and print.

WEAKNESSES: The website isnt that appealing, the story of them as a company was quite short.

OPPORTUNITIES: Give more background on the company, more trust, update to modern day.

THREATS: Companies holding on to their money more, so businesses need to impress.

THE RED DOOR GALLERY: STRENGTHS: Good location, close to the city centre and Edinburgh College of Art, wide target audience, including students and local artists and designers, offer good design and good value, website design is very creative and engaging.

WEAKNESSES: The text on the website is quite small, reviewing of work submitted for the shop can take up to a month.

OPPORTUNITIES: They could craft events e.g REETSWEET, having such a wide target audience gives them the opportunity to make closer relationships with places like universities and graduate students.

THREATS: More shops like this are cropping up which is creating more competition, with good location and a wide target audience, this shop is in the perfect position to steal business. Meaning we would need to come up with a unique selling point to attract customers.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

LOCATION THE LOCATION OF OUR BUSINESS WILL BE: Bruntsfield Place, Edinburgh ADVANTAGES OF THIS LOCATION ARE: The main adavantages of this location is that it is close to the city centre and main shopping areas which means more potential customers and clients will walk past our business and most likely come in and have a look and hopefully make a purchase. The other main advantage is that we are close to Edinburgh Art College, which is Edinburghs Arts specialist university. Being close to the university means that we have the chance to engage with the undergraduate and graduate students who may be interested in selling or exhibiting work in our shop.

WE ARE GOING TO RENT OUR PROPERTY: We are going to rent the property, which is a one up one down building. This means that our studio would be upstairs and the shop downstairs. We will be renting from a private seller.

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LIV CHAPMAN KIRSTY HARDINGHAM KIRSTY ALDERSON UPSTAIRSDOWNSTAIRS@STUDIO.COM UDSTAIRSDESIGN.COM 0131 566 8321

PROMOTION METHOD ONE: Business cards: We will each have our own business cards to give out in regards to the design service.

These could be handed out in the shop downstairs and we would also send them out to a potential client list when we start the business.

METHOD TWO: Website: We will design a website for our design work, information about us as a business and eventually a joint or seperate website for our shop, where people can purchase online.

METHOD THREE: Press ad: We will put out press ads into magazines such as CREATIVE REVIEW and other local design magazines. Being close to Edinburgh Art College also means that we can ask if we can advertise ourselves in their student magazine.