Flowbox Business Plan by willbeeching

FLOWBOX DESIGN

OUR MISSION IS TO CREATE ALL OUR WORK, BASED ON OUR UNDERPINNING VALUES OF EXCELLENCE, DEDICATION, PASSION AND PROFESSIONALISM. FLOWBOX DESIGN

CONTENTS CURRENT POSITION 9 COMPETITIVE ADVANTAGE 9 GROWTH PLAN 9 OUR FIRST YEAR 11 OUR SECOND YEAR 13 OUR BUSINESS TACTICS 14 STRENGTHS 17 WEAKNESSES 17 OPPORTUNITIES 17 THREATS 17 STRATEGIC ALLIANCES 19 E-COMMERCE AND TECHNOLOGY 19 PAPER BASED MARKETING 21 DIGITAL MARKETING 21 MARKETING BUDGET 23 CREDIBILITY AND RISK REDUCTION 23 PUBLIC PROFILE 23 OPTIMISTIC OVERHEADS 25 OPTIMISTIC PROFITS 25 PESSIMISTIC OVERHEADS 27 PESSIMISTIC PROFITS 27 MARKET RESEARCH 29 DISTRIBUTION CHANNELS 29 COPYRIGHT 33 HEALTH AND SAFETY 33

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OVERVIEW This plan sets an outline and strategy for the next two years, for the company Flowbox

Design. Incorporating a number of actions which may or may not be viable, depending on the economic climate, and ways in which external factors affect the company.

FLOWBOX DESIGN

BACKGROUND

Conceived from a shared love of design, Flowbox was started as a way for two individuals to collaborate and work in a profession which has provided enjoyment and challenges that have pushed us to develop ourselves as creative practitioners.

CORE VALUES

As a partnership in the company we pride ourselves on enthusiasm, the desire to learn, our existing skills and abilities and our aspiration to provide quality and excellence in our work. The values, which underpin our company, will enable us to work through every project with diligence and in a friendly, but professional manner.

OBJECTIVES

PROJECTED TURNOVER

Our primary objectives:

•

Secure financial backing to move Flowbox forward

•

Secure repeat client business and build client base

•

Acquire premises from which to work from

•

Develop active board of directors

Please see Page 25 for our preliminary financial forecasts for the next year, including gross profit and overheads. We have tried to consider as many eventualities as possible, however our results may not be accurate in every case.

OVERALL CONCLUSION

Within the next two years we will be evolving Flowbox as a design agency, our short term goal is to position ourselves at the frontline of bespoke deisgn in our area, providing effective solutions to all our customers. We will portray ourselves as a prestigious, respected brand with professional premises based in Kent.

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FLOWBOX DESIGN

BIO

Flowbox was created as collaboration between two individuals who share a passion for design. Working in a professional environment has provided enjoyment and challenges which have pushed us to develop ourselves as creative practitioners. Now, starting out as a small business we are selling our knowledge and services to other local businesses. Meetings with industry professionals have encouraged us to continue with our idea and progress it even further. Flowbox is now entering the stage where we need financial backing to enhance our advertising to reach out to potential clients. We believe in our work and we have faith that our products and services will be successful outside our local market. The decision to form the company came from the success seen in other agencies such as Cleverbox, and Wonderful Design Agency, and the belief that we can further evolve as designers.

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OUR CURRENT POSITION FLOWBOX DESIGN

CURRENT POSITION Flowbox is currently in the early stages of development as a business, having recently developed a functioning website, we are currently moving through the stages of branding our company. We have discussed possible financing and legal proceedings with HSCB Bank, The Accounting Group Maidstone and John Francis, personal accountant. Our targeted clients will be small businesses within our area, although the design industry is a growing market – we feel there is plenty of potential for future growth in this sector, and that it is in no way threatening to decline, as it has such strong links with the advertising industry.

COMPETITIVE ADVANTAGE Our current advantage is at a local level, we are able to operate with much lower overheads compared to other companies, while operating in a relatively expenditure free environment, it enables us to offer competitive prices, with effective results.

This is due to us both, effectively, operating as freelance designers in separate locations, although potentially, in the next year, we hope to acquire premises.

GROWTH PLAN Our plan of action for the coming months are to secure funding – we are aiming to acquire a grant from the Princes’ Trust, for financing business start ups, and mentorship from the Kent Foundation – a service offered to new businesses in the county. Our current reach is limited to local clients; however this plan will explain how we will operate to increase the spectrum of potential clients to a more national level. We will also be discussing how we will move forward with the company as a design agency, thinking about location, client type and financial forecasts.

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OUR BUSINESS STRATEGY

OUR FIRST YEAR Our strategy for the next year; • Have legal issues dealt with, for starting a new venture, such as registering the company, tax and VAT and business banking. Once we have fully documented our company, legally, we can proceed to work in a professional environment. • Effective bookkeeping for the first year of operation. We understand the challenge tax and legal issues can pose for a new business, our aim is to minimise the challenges, to handle them effectively will enable us to work in an organised and stress free manner. • Financing secured, adequate for business start up, securing stakeholders in the company and potential investors. We wish to take on trustees, who will advise us on company issues and decisions, they will be a resource for personal advice and non-financial aid. • Build up a returning client base of local businesses with various products served and provided. We can recognise that in order to compete with other local companies we will need to work on advertising and marketing ourselves across the county, being an agency which will partly specialise in advertising

we are confident in our own abilities to effectively market and expand our presence. • Acquirement of premises or studio space to work from. We both have agreed working collaboratively, in the same space, has improved our abilities to work on tasks and briefs, the purchase or rental of studio space is something we will take into account when looking at financing the business start up. • A presence within our local market and business environment. As previously mentioned, we are aware of current competition. We know what is provided by other companies and the standard of client they are working at. While we see competing with them a challenging prospect, we do not deem it out of our reach for the first year of operation. • Future work with charities to build up recognition and portfolio of work. We have previously worked with Tunbridge Wells based charity Tunbridge Wells Mental Health Resource, and will seek to continue our work in partnership with them, this is an excellent opportunity to gain publicity and exposure in the county, while working for a good cause.

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THE SECOND YEAR...

OUR SECOND YEAR For the next two years • By the end of the first year we wish to secure our financial state, so that it is stable and profitable. We aim to do this through a steady flow of clients and a growing returning client rate. • Gain a strong foothold in the local market. We are aware of current competition and can comprehend the level of work we are competing with, we are confident that by our second year of operation we will have gained invaluable market experience which will allow to go above and beyond our current level and start to push into a more expansive market. • Begin to take on larger clients in a more national market. Following on from the previous target, we feel the acquisition of bigger, more public clients will not only allow us to expand our company, but provide us with opportunities of further development and knowledge of the professional market. We aim to achieve this as a result of our philanthropy work with charities and small businesses.

• To encourage awareness of the importance of professional design and branding and to bring our services to more companies. As per our mission statement, we feel that too few companies truly value the effectiveness of public image and professional branding. Through our work and marketing strategies we wish to be able to increase the awareness of not only ourselves, but of the importance of design and advertising as a whole. o We will do this by having a presence at local conventions and networking events where will come into contact with other local business people and we can display different successes of design and how it has a positive impact on business.

• Further work with charities enabling us to become partnered with them for future design needs and requirements.

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OUR BUSINESS TACTICS

FLOWBOX IS CURRENTLY IN THE EARLY STAGES OF DEVELOPMENT AS A BUSINESS, HAVING RECENTLY DEVELOPED A FUNCTIONING WEBSITE, WE ARE CURRENTLY MOVING THROUGH THE STAGES OF BRANDING OUR COMPANY. One of the first aspects of our business that we need to address in our preparatory stages would be to organise our business legalities and finances. One of our first stages would be to register as a Private Limited Company to ensure that our assets are protected from the company. We would also need to make sure that we are registered as a company with HMRC and consider the implications of VAT if we project our turnover to be over the £60,000 – 70,000 limit. We are in the process of contacting the Kent Foundation and the Prince’s trust to gain a mentor for guidance on these matters and we hope they will make this stage as simple as possible. The next step that would need to be undertaken is to acquire a premise from which we can work, conduct business proceedings and meet clients. Ideally we would like to work in Maidstone as this has been our primary focus for research on the market. Studio’s can range from £400pcm to as much as £10,000, so we would need to have the financial backing for this take place. We would have to carefully consider the premise location, as this can be a determining factor for client flow and quantity of business and market out reach.

Finances need to be carefully looked at for this process to happen and as many studios require an upfront deposit, we may have to apply for a business loan or approach friends and family for support. Alternatively, the Kent Foundation and the Prince’s Trust both offer small business grants to help people like us realise our ideas. The ways in which we will look to position ourselves at the front of the local competition is to work with an ethic we have prided ourselves on, a one to one connection with the client with expert results which are effective, outlined by our clients brief. We are a dedicated pairing with a lot of enthusiasm to pour into every project we take on. The practical side of marketing ourselves would be through the use of our corporate website and various advertising methods used across the county. We currently are working to create a fully functioning website which will be the main hub for our clients to use – for contacting purposes and also to see our previous and on-going work.

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OUR SWOT ANALYSIS

It must be recognised that any element of a SWOT Analysis may be subject to change, and that strengths should not be regarded as time-unlimited. Flowbox continually reviews its position in order to maximise its performance. Similarly, an identified weakness or threat need not be regarded as insurmountable, given the willingness of the organisation to address the issue. STRENGTHS

OPPORTUNITIES

• Strong and committed team • Advanced skills in Graphic Design & Advertising • Commitment to clients and customers • Willingness to work in partnership with other businesses • Passion for graphic design and advertising • Low risk options, as the business is relatively small • Proactive directors • Unique creativity • Good relationships within the industry and professional contacts • Low overheads • Personal services to clients

• The opportunity, to overtime become a respected agency, who provide their clients with effective design and professional service. • To work with charities and organisations to help increase awareness of our business • Potential financial backing from family, friends, colleagues and organisations • Have a presence at local events to raise awareness of our work and business • To take on staff and support for the business • Find potential trustees/ stakeholders

WEAKNESSES

THREATS

• Lack of premises to collaborate and work together • Lack of start-up funding (currently) • Lack of knowledge on business management • No active board / directors • Lack of degrees

• Competition from other design agencies providing similar services • Lack of business in our local market • Current economic climate

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BUSINESS ALLIES FLOWBOX DESIGN

STRATEGIC ALLIANCES Having worked previously with the charity Tunbridge Wells Mental Health Resource to create promotional material we aim to continue design work for them, spanning different product types. We have identified the charity as an extremely useful partner for credibility and client work. The charity facilitates distribution of our work, while providing publicity for us as a company around the county. Using a charity as a main partner will provide leverage over other companies, in the public eye. We have previously worked with Stuart Thomas, freelance photographer, in various exercises. Stuart would provide an excellent resource for commissioned photographs. With him on side we are able to provide bespoke photos on a project, by project basis, where other competing may not have the funds or the ability to do so.

E-COMMERCE AND TECHNOLOGY We will provide our own technology and work stations; we would also use software such as Dropbox to send digital files to clients for their approval, as this would increase efficiency and be cost effective. Making use of services such as Basecamp would help ensure that all projects are managed efficiently and are completed on time. Basecamp is a project managing piece of software, where multiple team members can collaborate and delegate tasks. We will also use our website as means of marketing and outreach, the website costs very little run per month and we have full control over everything which is on there. We are able to develop and evolve this resource ourselves, from home, meaning work would cost nothing, and eliminate any down time for the website as we would be doing the work as and when we need it done.

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TACTICAL PROMOTION PLAN FLOWBOX DESIGN

PAPER BASED MARKETING

BROCHURES FLYERS

NEWSPAPER BUSINESS CARDS

DIGITAL MARKETING

30 50

WEBSITE SOCIAL NETWORKING VIRAL MARKETING

Our initial promotion will be done via online marketing and social media, strategic paper marketing will be implemented when the business is generating sufficient revenue to make it cost effective. If start-up funding is received we will spend the majority of this on marketing of the company to promote sales and boost profits. The other means of promotion that we would explot would be Word of Mouth and advertising through our current contacts.

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BUDGET & RISK FLOWBOX DESIGN

MARKETING BUDGET We are at a very strong position with marketing our company. We have the skills to market ourselves effectively, without having to outsource or commission work. Therefore our major costs would be – print costs or magazine and publication advertising space. Costs for this would be funded per expenditure. Our limit for each marketing project would be £300, if funded by ourselves, however if funded through commissions and client work we would evaluate a marketing budget.

CREDIBILITY AND RISK REDUCTION As we are a new business, our credibility in the customers’ eyes is low as we don’t have a clear customer record. In the coming months we will have to build up our portfolio considerably to ensure that we can gain credibility and stature. As we begin to build a portfolio of clients, we can include a list of companies that we’ve worked with which can give us credibility to potential new clients. When commissioning us customers rely that their project deadlines will be met, they receive value for money, their intended goals for their brief are achieved and the final product is effective.

As a design agency we have a responsibility to meet these requirements set by the client, and we have to consider what we should do if we cannot meet these needs.

PUBLIC PROFILE We will develop a marketing plan to ensure that our promotional material and outreach to the wider public is tightly focussed, effective, concise and attractive. We want to promote good design and push the face that a public persona is crucial to a successful business. Marketing needs to be strongly focussed on our past work and testimonials from clients as good testimonials provide new potential customers with an insight as to what we do. Our marketing needs to promote a chatty yet formal style of writing to engage the reader without sounding too colloquial. As a design agency out marketing material needs to be critically well designed to ensure that it gives the reader the best impression of our work.

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FINANCIAL FORECAST FLOWBOX DESIGN

OPTIMISTIC OVERHEADS Expenses

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Advertising

£200

Insurance

£0

£75

£0

Legal Fees

£0

£40

£0

Motor Vehicle

£100

Print / Stationery

£50

Phone / Internet

£40

Hosting

£6

£396

£511

£396

Total Overheads

ANNUAL OVERHEADS

£4,867

OPTIMISTIC PROFITS Revenue

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Credit

£400

£1,000

Total

£400

£1,000

ANNUAL PROFIT

£11,400

ANNUAL OVERHEADS

£4,867

NET PROFIT

£6,533

*Please note these figure are only predicted outcomes, and should only be used as guidelines

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PESSIMISTIC FORECAST FLOWBOX DESIGN

PESSIMISTIC OVERHEADS Expenses

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Advertising

£75

Insurance

£0

£75

£0

Legal Fees

£40

£0

Motor Vehicle

£100

Print / Stationery

£50

Phone / Internet

£40

Hosting

£6

£311

£386

£311

Total Overheads

ANNUAL OVERHEADS

£3,367

PESSIMISTIC PROFITS Revenue

Jan

Feb

Mar

Apr

Credit

£200

£450

Total

£200

£450

ANNUAL PROFIT

£5,150

ANNUAL OVERHEADS

£3,367

NET PROFIT

£1,783

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

£450

*Please note these figure are only predicted outcomes, and should only be used as guidelines

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MARKET RESEARCH FLOWBOX DESIGN

MARKET RESEARCH Currently the research carried out has been through actual work for clients. Work such as the Tunbridge Wells Mental Health Resource branding work and other previous projects from another company, Zuuve, owned and ran by William Beeching – where he had other client briefs. Any knowledge we have gained has been through experience and getting to know clients. Other research has been carried out on competitors – this included research into products and services offered, prices of services, hourly rates and the type of client the company was accessing. Our day to day research and target market would be focussed on local market needs – such as new businesses, expanding and growing companies and redeveloping companies. We feel becoming established with new companies and creating an identity as a profitable option for these businesses is the key to building a continuing client base of emerging enterprises. Our understanding on the local market is still in its early stages, however we are developing strategic contacts and continuing our research to get the most out of our niche market. Developing a close contact with clients is one of our underpinning values, we feel. A face to face meeting helps us get to know our client and will enable us to get the ball rolling on each project, on the right foot.

It will allow for a better understanding of the clients brief, while letting the client get to grips with how Flowbox, as a design agency, will work with them.

DISTRIBUTION CHANNELS Our current market reach is so far limited to a local horizon, we aim to reach our customers, in our development months, through local adverts in newspapers, magazines and word of mouth – we will also utilise social networking outlets to advertise our website – this will allow us some free marketing of the company. Our potential market reach is not limited, however, as we do have excellent access to online outlets. Social networking, viral marketing and our website are all, free, means of accessing a national or even international market. Our plan for the first year is to tap into the local market, and work with local businesses and small charities. Our focus would be to access newer companies where they have shown excellent potential to expand and grow; they would then provide marketing for Flowbox, through the success of their own business – providing exposure for our work through gaining publicity for their products. Working with small charities would provide excellent publicity and a chance to become better established in our local business network.

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FLOWBOX DESIGN

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LEGAL & ETHICS FLOWBOX DESIGN

COPYRIGHT Copyright is an automatic right within the United Kingdom and most other countries. You don’t have to apply for it, and there isn’t a register of copyright holders. It is a good idea to mark work with the international copyright symbol (©), followed by your name and the year of creation. This will identify you as the owner of the copyright, which will make it easier for a potential user to seek your permission. For non-print material, where the © would not be visible, you could use other ways of presenting copyright information. Leaving a dated copy of your work with a bank or solicitor, or posting a copy of your work to yourself by special delivery, leaving the dated package unopened may help to show in any legal proceedings that you had the work in your possession at that time. Copyright Infringement You risk heavy penalties if you infringe copyright – in other words use all or a substantial part of a copyrighted protected work without the owners permission. You must not: - -

Copy a work Sell, rent or lend copies of work

- Perform, show or play a work in public - Broadcast a work - Make an adaptation of work If you infringe copyright, you could be taken to court and run the risk of having to pay damages and compensation to the copyright owner. You could face: - Having an injunction taken out against you - Being ordered to surrender the copyright material to the copyright owner

HEALTH AND SAFETY Health and safety is very important when dealing with clients and employees, our health and safety policy must be robust and practical, to help us deal with and manage safety within our business. Failing to manage health and safety effectively can lead to prosecution for a number of different types of offences; it is not only a fatal accident, which could lead to prosecution. As Flowbox is only operating with two directors and no employees, who both work from home, health and safety will not become essential until we have acquired premises. We will also be dealing with clients in cafes and other businesses of this type, where health and safety and public liability is already their responsibility.

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