Staff: Four partners with equal ownership and shares, taking 25% of overall profits and paying 25% on bills repairs etc. (thus making the shop rent a more manageable £2000 - £4000 PA) Food Service: The selling of food requires council approval, and is subject to health and safety checks: https://www.gov.uk/food-premises-approval Potentially an unnecessary distraction and waste of resources Money Most banks offer start-up business loans that generally range between £1000 and £25,000 This would deal with the initial costs of securing a commercial property and purchasing the first years worth of materials
OUTGOING Insurance PA :£2000 - £3000 Premises Rent PA: £6800 Postage PA: £250 IT expenses PA: (initially £3000) Research and Development PA: £100 Equipment Costs PA: £600 Material Costs PA: £200 (paper) £200 (ink) £150 (Paints) £200 (Pens, pencils)
INCOMING Accommodation Costs PA: £14,556 Utilities and Communications PA: £312 Insurance Costs PA: £400 x 4 Food Costs PA: £800 x 4 Travel Costs PA: £100 x 4 Esteem Costs PA: £200 x 4 Entertainment Costs PA: £100 x 4 Holiday and Break Costs PA: £40 x 4
Maintenance Costs PA: £100 Finance Costs PA: Professional Service Costs PA: £300 Promotional Costs PA: £200 SUB TOTAL £14,100
TOTAL £35,528
SUB TOTAL £21,428
£35,528 ÷ 233 days of work = £152.5
What are our strengths? Low prices, involvement with local practitioners and businesses. Approachability for post-graduates and students who wish to sell their work and promote themselves What are our weaknesses? When starting a new business there is the danger of being disregarded by potential customers due to unfamiliarity What opportunities have we taken? The situation of the shop in a city-central location. By using on-site printing facilities we reduce to the costs of printing externally What threats do we face? Competition from established companies of a similar nature
Political Factors Political instability can affect the decisions of potential investors as risk is increased. Policies may impede the business in some ways, such as the finance, property or the marketing, these are operational risk Exchange rates, international deals could be affected by the change in the currency value. Economic Factors A future recession may cut into market as people will have less disposable income to spend on luxury items and foods. Social Factors The certain works of local artists may go out of style, leaving a lack of interest from the market, forcing the work to be lowered in price making a loss in profit. Technological Factors As technology evolves so do forms of advertising, ways of production and new ways of selling work.
Colours May Vary
On the Wall
Prices reflect the process and labour of the product. Suggests that the target audience cares about the intangible value of ‘craft’.
Uniform mid range prices, both highstreet and online presence.
Awesome Merchandise
Seemingly low prices, online only. Offers a service of making products, clientele must supply digital designs.
Products Keyrings Vinyl Stickers Greetings Cards T-shirts Large Art Prints Screen Print Magnets Badges Tote Bags Art Books
Existing Competitor* Prices £2.00 £1.00 £2.50 £25.00 £19.99 £20.00-£40.00 £0.70 £0.70 £31.00 £20.00-£50.00
Our Proposed Prices £1.00 £0.50 £1.50 £10.00 £15.00 £10.00-£30.00 £0.50 £0.50 £10.00 £10.00-£20.00
Event Tickets
£15.00
£7.50-£10.00
*Prices taken from On the Wall, Colours May Vary & Awesome Merchandise