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Business plan opening of photo studio

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  • 83
  • Английский
  • 10.03.2015
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Adaptation of this business plan is possible for similar project in Russian Federation, Ukraine and CIS countries.

Business Plan Description

Project Idea

Opening of the family and children photo studio.

Services of the project

The basic packages of services:

  • photographing of pregnant;
  • photographing of newborns;
  • documentary family photography (newborn, family, baby, children);
  • the world of emotions;
  • gift certificate for photography.

Target audience

Families with children, middle-class population of Moscow; young couple expecting a child; parents of newborn children; implementation of services for residents of the nearest Moscow regions is not excluded.

Competitive advantages:

  • photo studio takes all the rental costs for shooting;
  • client is also not charged a separate fee for the services of a stylist and makeup artist;
  • studio provides props and costumes for a photo shoot.

Main channels of promotion

To raise awareness of the potential audience about the photo studio the following methods of promoting the project will be used:

  • Search Engine Optimization (seo);
  • contextual advertising;
  • Social Media Marketing (SММ);
  • partnership with clinics, maternity hospitals.

Market conditions

On the photo services market there are very contradictory trends: a reduction in share of costs for the manifestation of the film and printing photos in the structure of expenditure for household services, together with increased demand for professional artistic photography. Popularity of the last is caused by desire to make everyday life aesthetically beautiful, to keep the memories; also there is a significant impact of social networks as a professional photo is perceived as a kind of PR-move to attract attention to your profile on social networks.

Competitive environment

On the Moscow market of children's and family photography this project will compete with:

Financial indicators of the project

Indicator

Unit

Value

Necessary investment

RUB

***

NPV

RUB

***

IRR

%

***

Payback period

years

1,50

Discounted payback period

years

1,61

 

Extract from the research

Photo studio services, photographic and cinematographic laboratories market in Russia is constantly increasing, reaching 11,988 million RUB in 2014, but its share in the total structure of household services has been steadily declining.

The main reason for reducing the share of photo services is that people turn to self-service, and it is available to store photos in immaterial forms on electronic devices.

There is an inverse dependence between the reduction in demand for photo services and buying a digital camera.

In Moscow, the share of photo services in the structure of household services is two times less than general indicators in Russia - 0.7% versus 1.6% (January 2015), which indicates a more intense switch of the population to self-service.

Moscow market of photo services is 3.89% of Russian.

In Moscow, 300 photo studios are officially registered; across the country approximately every fifth inhabitant has a digital camera.

The main motive of appealing to the services of professional photographers is: a need to capture the festive events; preserving memories and strengthen family ties through a joint looking at the photos; making everyday life aesthetically beautiful; ability to attract attention to the profile on social networks.

The photography market has a logic of the associated with art market, in which photography is a kind of a unique item.

The price on the photography market of Moscow forms spontaneously. For consumers the experience of the photographer has secondary importance. The most important factors during choosing a photo studio are the fame of a photographer and his reputation, which is formed through positive reviews of customers.

Photographers consider "word of mouth" as the most effective way of promoting their services.

***

Children and family photographers are mostly women who started this kind of creativity after the birth of their own children.

Prices for children's photo shoot are ranged from 6 000 to 35 000 RUB depending on the number of additional services included in the package.

The common is the fact that a lot of children's and family photographers do not have their own premises and, therefore, the photo shoot is often held in rented rooms, and client should pay for this rent.

Photo studios usually have the right to post images with the clients in their groups in social networks, blogs and exhibitions. Many studios require additional payments for confidentiality, which sometimes reaches 30% of the photo shoot price.

A common is a limit on the number of participants - in most cases, no more than 4-5 people are allowed; additional participants should be extra charged.

***

Rented premises are planned to locate in an area with good transport interchange, so customers can get to their photo shoot with minimal transfers on public transport. While planning the photo studio, the whole area will be divided into a number of useful areas: a work area, dressing room, an office with a computer and printing equipment for personnel, reception for clients.

***

For the start of the project realization it is planned to purchase a minimum set of equipment for individual work: cameras and attachments for them; reflectors; flash; rack; color filters and backgrounds. The availability of powerful computer for design processing of image, licensed software, high-quality printing equipment and a scanner are obligatory.

List of Tables, Diagrams and Figures

4

Executive summery

5

Chapter 1. Description of the project

7

1.1. Idea of the project

7

1.2. Concept of the project

7

1.3. Services of the project

7

1.4. Terms of cooperation with clients

9

Chapter 2. Market analysis

10

2.1. General characteristics of photo services

10

2.2. Development of photography market in Russia

13

2.3. The main motives of photographing

17

2.4. Pricing on the photography market in Moscow

18

2.5. Potential audience of the project

18

Chapter 3. Competitive environment

21

3.1. Nearest competitors photo studio on the Moscow market

21

3.2. Strategic canvas of the project

29

Chapter 4. Marketing plan

33

4.1. WOM-marketing

33

4.2. Search Engine Optimization (SEO)

33

4.3. Contextual advertising

36

4.4. Social Media Marketing (SMM)

37

Chapter 5. Organization plan

38

5.1. Requirement for photo studio premises

38

5.2. Studio Equipment

40

5.3. Project personnel

40

Chapter 6. Financial plan

42

6.1. Project assumptions

42

6.2. Project seasonality

43

6.3. Sales volume

44

6.4. Revenue

45

6.5. Project personnel

47

6.6. Costs

50

6.7. Taxes

53

6.8. Investment

55

6.9. Capital investment

55

6.10. Profit and loss report

56

6.11. Discount rate

59

6.12. Cash flows report

70

6.13. Cash flows

73

6.14. The main indicators of financial efficiency of the project

73

Chapter 7. Sensibility Analysis

76

Information about «VTSConsulting

83

Tables

Table 1. Service «Photographing of pregnant»

7

Table 2. Service «Photographing of newborns»

8

Table 3. Service «Documentary family photography»

8

Table 4. Service «Photography «The world of emotions»

8

Table 5. Most common types of photography

10

Table 6. Stages of development of the photo industry in Russia

13

Table 7. Profile of «Glamus» photo studio

21

Table 8. Profile of «Malino Studio» photo studio

23

Table 9. Profile of «Elena Mytronyna Photographer» photo studio

25

Table 10. Profile of «Angy K Photography» photo studio

27

Table 11. Profile of «Anna Krauklis» photo studio

28

Table 12. Created for the photo studio «abolish – reduce – increase -  create" table

29

Table 13. Requirement for photo studio premises

38

Table 14. Duties of photo studio administrator

40

Table 15. Calculation of the discount rate using WACC method

68

Table 16. Main financial indicators of the project

75

Diagrams

Diagram 1. Changing in the volume of the photo services market (January 2015 to January 2014), mln.

15

Diagram 2 The structure of consumer services in Moscow

16

Figures

Figure 1. Dynamics of the market of photo studio services, photographic and cinematographic laboratories in Russia

13

Figure 2. Sales dynamics of digital cameras in Russia, mln pcs.

14

Figure 3. Dynamics of births in Moscow in 2014

19

Figure 4. Strategic canvas of photo studio

31

Charts

Chart 1. Plan for the light arrangement in a photo studio

39