opus magnum business plan
TRANSCRIPT
Akeem Allen & Ray Bartee11th Grade
16 years old
Mission Statement
Mission Statement: Seeing as opus|magnum revels in the art of digital photography
and editing, our company’s mission is to deliver professional outcomes at the most affordable cost to our customers.
Opportunities: In an age where digital reconstruction and intellect is thrown
behind every design, opus|magnum is taking advantage of the competitive market by offering a more refined product to its customers at a more affordable cost.
Business Profile
Type of Business opus|magnum is a service business. The service that this company provides is the
production and sale of professional-grade photographs and prints i.e., “great work.”
Legal Structure We are a partnership. This legal structure was chosen because it is
the most affordable, we have no personal assets to protect at the time, and it allows us to pool our knowledge to yield forth the best work possible for our customers
Qualifications
Have over 6 years experience in the fields of photography, digital editing, and contemporary graphic design.
Can speak up to 4 languages between the two of us, including Spanish and Italian.
Attend a technology school that will further our understanding of the more modern means of our specialties.
In the process of completing a course on Entrepreneurship. Planning on studying photography and business in order to
obtain college degrees in those fields.
We are qualified to run and sustain this business because the both of us:
Market AnalysisIndustry Name Photographic Services
Industry Size $5,054,976,000
894,014
357,220
396,912
Total Population
Hartford County, ConnecticutZIP codes: 06112, 06002, 06095 etc.
Target Market Adults, both male and female, ages 16-50, with an average household income of greater than $20,000, as service values vary.
Potential Market
Based on a survey on 100 individuals, approximately 90% of the people surveyed said they would consider hiring a professional-grade photographer if rates were not as high conventional photography firms.
Total Population
Target Market
Potential Market
7
Target Market Segment Demographics
Our customers are in the age group of 16-50, are of both sexes, and have a household income of $20,000 or greater.
Geographics People that live in both urban
and suburban areas, and shop at stores that are affordable to their budget.
Psychographics People who like to reminisce on
significant moments, not tech savvy and do not possess the experience or skill to offer themselves the services that we can.
Buying Patterns People that shop at stores that
offer discounts frequently, bargain hunters, and consumers who are considered “thrifty,” yet still care deeply about the quality of the item they are purchasing.
Competitive AdvantageYour
BusinessCompetitor
ACompetitor
BFactors
Quality of Product/Service
Price
Location
Reputation/Brands
Unique Factors/Knowledge
$350 sitting fee
opus|magnumLAM PhotographyYardis Photography
$475.00/hr $600 sitting fee
Good Exemplary “great work”
Industrial/Corporate
Events/Lifestyle Events/Corporate
Hartford, Connecticut
Hartford, Connecticut
Hartford, Connecticut
Exemplary Good New
Promotional Mix
Advertising
Google AdWords ($.10 PPC) / Facebook ($5) $150
Publicity Website ($5.95) / Facebook page ($0) / Twitter page ($0) $5.95
Sales Promotio
n$0
OtherNetworking with entrepreneurs in need of our services, and with entrepreneurs in the same field
$0
Total Monthly Promotional Expense $155.95
Promotional Expense MonthlyAmount
─
Marketing Mix
People Product Place Price Promotion
Males and females ages 16-50 who need professional results without the hefty cost
Web advertisements, social media, word-of-mouth
Photographing venues differ according to the event
Professional photography services
$350 sitting fee, $150 standard photo package
Average Cost of Materials/Labor
MaterialsMaterial Description Cost/Total Quantity Cost per Unit
ISO 400 35mm film $15/5 rolls $1.50
Blank CDs $16/100 discs $.16
Canon Photo Papers $12/100 photo papers $.12
Average Total Material Cost per Unit $1.78
LaborLabor Cost per Hour Time (in Hours) to
Make One UnitLabor Cost per Unit
$10 2 hours $20
Total Labor Cost per Unit $20
COGS (per Unit) $21.78
Economics of One Unit
Selling Price (Sitting fee+Standard package) $500.00
COGS (per Unit) $21.78
Other Variable Expenses (per Unit) $25.00
Total Variable Expenses (per Unit) $46.78
Contribution Margin (per Unit) $453.22
Standard Event Package(2 hour photo shoot, 50 hand-picked prints, CD with all photos)
Average Monthly Fixed Expenses
Fixed Expense Average Monthly Expense
Insurance $50.00Salaries of Employees $0Advertising $155.95Interest $0Depreciation (equipment) $25.00Utilities (Gas, Electric, Telephone) $50.00Rent $0Other Fixed Expenses $0Total Average Monthly Fixed Expenses
$280.95
Time-Management PlanSchedule for a Typical Week
Total Hours in a Week = 168
School
New Business
Free Time
0 10 20 30 40 50 60 70 80
50
44
74
Hours
Monthly Sales ProjectionsFirst Year
0
2
4
6
8
10
12
14
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Uni
ts So
ld
Total Units Sold70
Monthly Break-Even Units
In an average month, the company will begin to make a profit after selling 1
unit.
$280.95$453.22 = 1 Unit
Projected Yearly Income Statement
First Year
A Selling Price per Unit $500.00 ─
B Number of Units Sold 70 ─
C Total Sales ─ $35,000.00
D Variable Expenses $3,274.60 ─
E Contribution Margin ─ $31,725.40
F Fixed Operating Expenses $3,371.40
G Pre-Tax Profit ─ $28,354.00
H Taxes @ 15% $4,253.10 ─
I Net Profit ─ $24,100.90
Start-Up InvestmentStart-Up Expenditures
Item Where Will I Buy This? Cost
D-SLR camera w/ lens
NikonUSA.com $700
Lighting set Amazon.com $150White Muslin
backdropAmazon.com $100
Dell Desktop Dell.com $600Software Adobe.com $700Canon
Printer/ScannerCanonUSA.com $1,107
Total Start-Up Expenditures$3357Cash Reserves
Emergency Fund $200
Reserve for Fixed Expenses $1000
$4,557Total Start-Up Investment
ROS & ROIROS: Return on Sales
For opus|magnum: DollarEquivalent =
ROI: Return on Investment
For opus|magnum: DollarEquivalent =
$21,791.70 $31,500.00 x100 = 66%
$21,791.70 $4,457 x100 =489%
$0.66
$4.89
Financing Strategy
Source Amount Debt Equity Gift
Personal Savings $4,000 ─ $4,000 ─
Relatives/Friends $600 $600 $0 $0
Investor $0 $0 $0 ─
Partner(s) $0 $0 $0 ─
Totals $4,600 $600 $4,000 $0
Total Start-Up Investment: $4,557
Philanthropy
opus|magnum will be socially promoting the “Peace One Day” foundation by offering free photographic services to the
organization, as well as annually donating 5% of all profits to promote the cause.
Business & Personal Goals
Expand our services throughout the entire Hartford County.
Complete a digital editing, and photography certification summer course at CCSU.
Possibly hiring photo editors, allow job internships/shadowing, and open a photography studio.
Can grow to be established in many states throughout the New England region, and managed by a network of experienced photographers
Personal Business
Graduate from high school, and attain college degrees in the field of business and photography .
Obtain an internship with world-renowned photographer Philip-Lorca diCorcia
Shor
t-Ter
mLo
ng-T
erm Run the business steadily for
about 10 years, sell the company, then move on to other business ventures.
Develop our interpersonal skills, and ability to manage finances/companies.
Thank you for your time