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1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a photo booth company while showcasing the expected financials and operations over the next three years. Photo Booth Company, Inc. (“the Company”) is a New York based corporation that will manage several photo booth machines throughout entertainment facilities and stores throughout the state. The Company was founded by John Doe.
1.1 Operations
As stated above, the Company’s state of the art photo booth machines will provide customers with full color pictures.
The Founder, prior to the onset of operations, will develop relationships with entertainment facilities, stores, malls, and property managers for the distribution of the Company’s photo booths.
The third section of the business plan will further describe the services offered by the Photo Booth Company.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:
Acquisition and distribution of at least 6 photo booth machines.
Financing for the first six months of operation.
Capital for ongoing expenses.
Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
Mr. Doe’s mission is to provide full color pictures that are enjoyable while concurrently ensuring that business’ and organizations’ that allow the Company’s machines on site are compensated for their rental of space.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the photography industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
Over the next three years, Mr. Doe intends to reinvest the after tax cash flow of the business into the purchase of new photo booth machines which will substantially increase the revenues of the business. The Company will continually source new high traffic locations where the Photo Booth Company can place new machines.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Photo Booth Company, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Photo Booth Company requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Photo Booth Company, Inc.
2.5 Exit Strategy
If the businesIf the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Photo Booth Company, Inc. Based on historical numbers, the business could fetch a sales premium of up to 5 times earnings.
3.0 Operations
3.1 Photo Booth Operations
As discussed in the executive summary, the Photo Booth Company will provide a state of the art machines that allow individuals to take four pictures in a booth setting. The business will charge $2 per four pictures provided by the Company’s line of photo booths.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
The business of photo booth management is a relatively simply business. This section of analysis will detail the overall economic climate, and the interest rate environment, and the photo booth industry.
Currently, the economic market condition in the United States is in moderate. Unemployment rates have declined while asset prices have risen substantially.
A mild concern for the Company is its ability to price its products during times of oil spikes. As the Photo Booth Company will have high distribution costs, increases in the price of oil can have a deleterious impact on the Company’s profit and loss statement. However this event is unlikely and the price of oil would need to increase much higher before there is an impact on the Company’s revenue.
4.2 Industry Analysis
In the United States, there are 6,000 companies that maintain photo booths, vending machines, and related routes. Each year, these businesses aggregately generate more than $7.1 billion dollars of revenue.
This is a mature industry, and future growth is expected to be on par with that of the general economy.
4.3 Customer Profile
Management will target the following entities for placement of the Company’s photo booth machines:
Hotels and Motels
Airports
Entertainment Facilities
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
At this time it is difficult to determine the competition that the Company will face as it progresses through its operations. There are a number of photo booth companies that maintain machines throughout the State of New York.
5.0 Marketing Plan
Below is a description of the marketing plan that the Photo Booth Company will use to establish its locations throughout the State of New York.
5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
Establish relationships with property managers, owners of entertainment venues, malls, and other facilities that would benefit from having photo booth machines.
5.2 Marketing Strategies
Marketing for the business’ photo booth machines will be very limited. The Company’s marketing campaigns will be limited to developing relationships with malls, entertainment companies, malls, and property management firms. Prior to the onset of operations, Mr. Doe will approach these businesses for placing photo booths on their properties.
The Company intends to also develop a website that will showcase the operations of the business, how a potential location can work with the Photo Booth Company, and relevant contact information. As the economy is currently sluggish, many property management firms and related organizations are looking for ways to establish secondary lines of revenue; namely through the rental of space to photo booth companies.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
The Photo Booth Company will have an annual revenue growth rate of 16% per year.
The Owner will acquire $100,000 of debt funds to develop the business.
The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are not sensitive to changes in the general economy. As the pricing for the products are minimal, a decline in economic productivity will have a diminutive effect on the Company’s ability to generate revenue. As such, Management will be able to continually grow the business despite the external business climate.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
