Artists Business Plan Template

Artist business plan for starting your own business

In today’s world, an artist is a creative entrepreneur who is a self-employed business owner and uses his skill to earn a decent living. A professional artist is someone who knows how to make an impact with his work and make a living out of it. In case you want to make a business out of your art, a well-thought artist business plan can make a huge difference towards your success.

Whether you want music festival business plan, internet radio business plan, business plan for music industry, business plan for movie theater, karaoke business plan, or night club business plan, this model of business plan will help you in writing a well thought business plan to start a successful business.

If you want to know how to write a business plan for an artist, or you are looking for business plan for artists, you can continue to read as we will write down all the important points required in a good business plan for investors.

Executive Summary

2.1 The Business

In all the business plan examples for artists, the first thing you need to mention is the introduction of your business.

PixelCo will be a registered, licensed and insured art design business based in the Miami, Florida. This business will strive to cultivate meaningful and relevant connections between people and brands through our art designing services and unparalleled visuals.

2.2 Management of Artist Business

The success of any business heavily depends on its management and staff. That is why in your business plans for artists, make sure to plan everything in advance.

The management body of the company will include art artists, sales executives, animation and cartoon specialists, customer representatives and website developers. The team will be managed by the owner who will look into every matter himself.

Like in every artist business plan sample, you need to provide detail about the management. The staff will be hired one month before the launch of the company and will be trained by the owner.

2.3 Customers of Artist Business

At PixelCo, our customers will include following

• Insurance Companies and banks
• Hotels
• Sport Organizations
• Political parties
• Television Stations
• Real Estate Owners, Contractors and Developers
• Advertising agencies
• Entrepreneurs
• Start-Ups
• Schools

Similar to a mobile app business plan, mentioning all the customers are required to make a strong business plan.

2.4 Business Target

Our primary goal is to become the best art design company in Miami within the next 6 years of our startup. We aim to provide the best and reasonable services to our customers. The main business targets that we want to achieve as milestones over the next four years are as follows:

• To cover the investment by the end of the first year
• To expand our company and open up two to three company offices by the end of 5th year
• To raise at least $10 monthly revenue by the end of the first year

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

PixelCo will be owned by Julie Mark, a renewed art designer. She has completed her Masters of Art in art design from the University of London. After completing her degree, she worked with some leading digital marketing companies as a art designer. After gaining all the knowledge about how to start a small art business, she decided to start her own business.

3.2 Why the Artist Business is being started?

Julie continued to work as a art designer in some of the biggest art designer companies in the US. But soon she realized that she can start her own business and can establish her name in the art designing industry.

That is why she decided to start PixelCo completely by herself. Similar to writing a business plan for makeup artist, it is important to write down why and how the business will be started when writing a business plan for artist.

3.3 How the Artist Business will be started?

In business plan artist, you need to mention all the necessary steps to start a business. To start a art designing business, you do not need much investment as needed in other startups.

Julie has planned everything for her business including the required inventory and personnel.

Office Space

To start an art designing business on a small scale, you need a small set-up, and for that, a small space will be enough.

Office furniture

Next, to set up the space, you will need office furniture including filing cabinets, couches, chairs and work desks. You will also need some decent furniture for meeting rooms and waiting rooms.

Software

Internet Connection

You will need a strong internet connection to carry out the work without any distortion.

Start-up Expenses

When we talk about the expenses to open a art designing company, these include consultant fees, insurance, rent for the space, laptops and computers for the employees and interior expenses.

Start-up Expenses
Legal	$258,000
Consultants	$0
Insurance	$21,000
Rent	$22,000
Research and Development	$23,000
Expensed Equipment	$52,000
Signs	$4,000
TOTAL START-UP EXPENSES	$380,000
Start-up Assets	$343,000
Cash Required	$306,000
Start-up Inventory	$37,000
Other Current Assets	$227,000
Long-term Assets	$291,000
TOTAL ASSETS	$1,204,000
Total Requirements	$1,584,000
START-UP FUNDING
Start-up Expenses to Fund	$380,000
Start-up Assets to Fund	$1,204,000
TOTAL FUNDING REQUIRED	$1,584,000
Assets
Non-cash Assets from Start-up	$1,584,000
Cash Requirements from Start-up	$317,000
Additional Cash Raised	$50,000
Cash Balance on Starting Date	$35,000
TOTAL ASSETS	$1,986,000
Liabilities and Capital
Liabilities	$21,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$45,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$66,000
Capital
Planned Investment	$1,584,000
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,584,000
Loss at Start-up (Start-up Expenses)	$336,000
TOTAL CAPITAL	$1,920,000
TOTAL CAPITAL AND LIABILITIES	$1,986,000
Total Funding	$1,584,000

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Services

In this business plan for artist management company , you need to mention the services your company will provide. This is an extremely important part of any business plan for artist.

PixelCo will provide art designing services and visual communication services to small as well as established companies. We aim to compete with all the leading art designing companies in the US. As can be seen in our business plan template for artists, we will provide the following services:

Digital Designs

We will provide digital designs including logos, websites, and all kinds of arts to our clients. We will also provide cartoons and animations as per our customer’s requirements.

Hard Decorations

We will also provide hard form decorations, art pieces, and custom-themed paintings.

Print Designs

In addition to digital designs, we will also provide print media designs including books, magazines and newspapers.

Advertisements

We will also provide advertising services and corporate branding that will include infoarts, brochures, product packaging, and posters.

Marketing Analysis of Artist Business

Similar to business plan for music artist, marketing analysis is an important component in abusiness plan for artists pdf. That is why Julie got the services of marketing experts to help her through this important phase. In anny artist development plan, the importance of this part cannot be ignored.

To start a successful business for artists, you need to do an accurate marketing analysis, as the planning and execution of many other components depend on it. It also serves as the basis of your business strategy.

5.1 Market Trends

The trend in the art designing industry is that the market keeps expanding with time. Anything that cannot be done verbally needs to be put into some design to communicate or to send the message. If we look around, we are surrounded by arts.

From your coffee mug to the magazine cover, the ads on the TV all are applications of art designing. These are the reasons why the art designing industry is growing fast and is one of the biggest and fastest-growing companies in the world.

In 2017, around 335,000 art design companies were working all over the world. These include both small and large companies and people working as freelancers. The art design business is popular because all other businesses require their services to appear professional and to reach out to people.

5.2 Marketing Segmentation

Market segmentation is another important part of the sample regarding how to manage an artist pdf available online. All top performing artist marketing plan example templates include the detail about marketing segmentation for art design business.

The target market for PixelCo will be the corporate sector located in the US. According to research, the US houses more than 500,000 businesses which include both local, multinational and national businesses. These businesses have revenue in millions of dollars each year. It makes it easy for them to spend a lot of money on their art designing needs to promote their brands and to reach out to people.

To develop a good marketing strategy and to run a business seamlessly, it is important to analyze the market segmentation. An efficient and successful marketing strategy can only be developed after knowing the potential customers of any business. The market segmentation for PixelCo will be as follows:

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Corporate Sector	40%	25,000	23,000	24,000	26,000	29,000	10.00%
Institutions & Organizations	31%	32,000	35,000	35,000	37,000	39,000	10.00%
Print Companies	29%	24,000	25,000	29,000	38,000	41,000	10.00%
Total	100%	81,000	83,000	88,000	101,000	109,000	10%

UK Start-Up Visa Business Plan

Corporate sector

One of the biggest consumers of PixelCo will be the corporate sector located in Florida. These include local, national and multinational businesses that need art designing services to expand their business. These companies include product manufacturers, real estate owners, distributors, developers, banks, hotels, IT firms, software houses and advertising agencies. These companies will need our services to update their brand logos, make advertisements and manage their websites and social media pages.

Institutes and Organizations

Our next target group consists of organizations and institutions located in Florida. These include public and government sectors such as schools, universities and colleges, sports organizations, political parties, non-profit and religious organizations.

Print Companies

Our third and important target group will be digital media and print companies. These will include publication companies, video production companies and television studios. Due to its nature, this target group is one of the biggest consumers of artist and designing services.

5.3 Business Target

Our primary goal is to balance the cost of investment in the first two years of our launch. Our secondary goal is to become the best art design company in Florida within few years.

5.4 Product Pricing

When writing a marketing plan artist, the pricing is extremely crucial. The service and product pricing should be determined with great care. We have considered the market demands, and have priced all our services in a comparable range with other companies. All of our prices are similar to other companies except for logo making prices which are 30 percent less than other companies to promote sales.

Marketing Strategy for Artist Business

PixelCo will make sure that we meet the clients’ expectations and deliver the service as per their requirements. Any good independent artist business plan like this business plan for artist example pdf should have a clearly defined marketing strategy.

Our goal is to achieve a 15% increase in website traffic every month and we will work to turn 70% of the visitors into our consumers. We will also work on increasing the engagement rates. Engagement rates show the frequency at which visitors interact with the post. We aim to increase our social media following so we can reach out to maximum people.

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6.1 Competitive Analysis

To survive in artist and design industry, you have to be very creative and should have innovative ideas regarding designs. Only then you can survive and grow.

PixelCo has a team of dedicated and hard-working professionals. All of the staff is highly trained and has excellent qualifications. Our biggest competitive advantage is the leadership of our owner Julie, who has worked in world-renowned companies.

6.2 Sales Strategy

Julie has carried out a detailed analysis and along with her team, and came up with excellent ideas to advertise her company.

• We will reach out to people by advertising our company by using social media platforms, newspapers, magazines and TV stations.
• In the first three months of our launch, we will offer a 20% discount on our all services
• We will offer a 30% discount on all of our services on customer’s referral.
• We will send introductory letters and brochures to other organizations.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Digital Designs	2,000	2,120	2,247
Hard Decorations	1,200	1,272	1,348
Print Designs	3,200	3,392	3,596
Advertisements	4,000	4,240	4,494
TOTAL UNIT SALES	10,400	11,024	11,685
Unit Prices	Year 1	Year 2	Year 3
Digital Designs	$50.00	$58.00	$67.28
Hard Decorations	$100.00	$116.00	$134.56
Print Designs	$75.00	$87.00	$100.92
Advertisements	$50.00	$58.00	$67.28
Sales
Digital Designs	$100,000.00	$122,960.00	$151,191.62
Hard Decorations	$120,000.00	$147,552.00	$181,429.94
Print Designs	$240,000.00	$295,104.00	$362,859.88
Advertisements	$200,000.00	$245,920.00	$302,383.23
TOTAL SALES	$660,000.00	$811,536.00	$997,864.67
Direct Unit Costs	Year 1	Year 2	Year 3
Digital Designs	$20.00	$27.00	$30.00
Hard Decorations	$70.00	$72.00	$83.00
Print Designs	$35.00	$36.00	$38.00
Advertisements	$20.00	$22.00	$24.00
Direct Cost of Sales
Digital Designs	$40,000.00	$57,240.00	$67,416.00
Hard Decorations	$84,000.00	$91,584.00	$111,910.56
Print Designs	$112,000.00	$122,112.00	$136,629.76
Advertisements	$80,000.00	$93,280.00	$107,865.60
Subtotal Direct Cost of Sales	$316,000.00	$364,216.00	$423,821.92

Personnel plan

In an artist business plan or artist development plan, personnel plan is important as it provides an idea of personnel cost. If the staff is not loyal to the company, the company cannot make progress. It is difficult to estimate the type and number of staff needed to start a business until a business is launched. So to get through this step, it is important to take the advice of HR experts.

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7.1  Company Staff

The following people will be needed to run PixelCo. Also, note that Julie Mark will be the owner and CEO of PixelCo business. The list of staff is as follows

• 1 operation manager
• 1 social media marketing manager
• 3 sales executive
• 2 animation and cartoon specialists
• 5 website developers
• 3 customer representatives
• 1 reception clerk
• 1 accountant

7.2  Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Operations Manager	$14,000	$15,400	$16,940
Marketing Manager	$15,000	$16,500	$18,150
Sales Executives	$22,000	$24,200	$26,620
Animation and Cartoon Specialists	$30,000	$33,000	$36,300
Website Developers	$15,000	$16,500	$18,150
Customer Representatives	$16,000	$17,600	$19,360
Reception clerk	$7,000	$7,700	$8,470
Accountant	$10,000	$11,000	$12,100
Total Salaries	$129,000	$141,900	$156,090

Financial Plan

When writing a business plan for artist, a financial plan is the next important thing after personnel plan. Any good business plan for artists clearly lists all costs, such as the cost of startup, payroll, inventory, utilities and equipment.

The major expense/ costs include:

• The interior design of the office
• Office space rent
• Cost of inventory – furniture, chairs, tables and laptops
• Salary of employees
• Bonds, securities, registration costs, and insurance
• Cost of buying software

 

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.15%	8.24%
Long-term Interest Rate	8.37%	8.46%	8.49%
Tax Rate	24.01%	25.10%	26.30%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$131,500
Assumptions:
Average Per-Unit Revenue	$232.00
Average Per-Unit Variable Cost	$0.65
Estimated Monthly Fixed Cost	$163,400

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8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$8,360,000	$10,279,456	$12,639,619
Direct Cost of Sales	$8,078,000	$9,637,520	$11,811,283
Other	$0	$0	$0
TOTAL COST OF SALES	$8,078,000	$9,637,520	$11,811,283
Gross Margin	$282,000	$641,936	$828,336
Gross Margin %	3.37%	6.24%	6.55%
Expenses
Payroll	$134,000	$147,400	$162,140
Sales and Marketing and Other Expenses	$137,000	$148,000	$156,000
Depreciation	$2,100	$2,200	$2,340
Leased Equipment	$0	$0	$0
Utilities	$3,000	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$3,100	$3,200	$3,400
Payroll Taxes	$31,000	$32,000	$33,000
Other	$0	$0	$0
Total Operating Expenses	$312,300	$337,900	$362,080
Profit Before Interest and Taxes	($30,300)	$304,036	$466,256
EBITDA	($30,300)	$304,036	$466,256
Interest Expense	$0	$0	$0
Taxes Incurred	($6,060)	$60,807	$93,251
Net Profit	($24,240)	$243,229	$373,005
Net Profit/Sales	-0.29%	2.37%	2.95%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$52,000	$56,160	$60,653
Cash from Receivables	$14,000	$15,120	$16,330
SUBTOTAL CASH FROM OPERATIONS	$66,000	$71,940	$77,695
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$67,000	$72,000	$78,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$37,000	$39,000	$41,000
Bill Payments	$26,000	$27,000	$28,000
SUBTOTAL SPENT ON OPERATIONS	$63,000	$66,000	$69,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$63,000	$68,040	$73,483
Net Cash Flow	$19,000	$21,000	$22,000
Cash Balance	$29,000	$31,000	$33,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$25,000	$28,000	$31,472
Inventory	$4,000	$4,480	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$287,000	$321,440	$361,299
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$20,100	$22,512	$25,326
TOTAL LONG-TERM ASSETS	$24,000	$26,880	$30,240
TOTAL ASSETS	$293,000	$328,160	$369,180
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$19,000	$21,280	$23,919
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$16,700	$18,704	$21,023
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,800	$58,642	$64,506
Earnings	$198,000	$215,820	$237,402
TOTAL CAPITAL	$287,000	$312,830	$344,113
TOTAL LIABILITIES AND CAPITAL	$303,700	$328,160	$369,180
Net Worth	$300,100	$327,109	$359,820

 

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.23%	8.01%	8.88%	3.00%
Percent of Total Assets
Accounts Receivable	9.20%	10.19%	11.29%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.12%	2.35%	2.60%	2.40%
Total Current Assets	149.00%	152.00%	152.00%	158.00%
Long-term Assets	11.54%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.87%	4.91%	4.95%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.56%	7.62%	7.69%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.90%	97.46%	100.19%	99.00%
Selling, General & Administrative Expenses	94.00%	96.54%	99.24%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.00%	42.11%	43.29%	33.90%
Main Ratios
Current	34	35	36	32
Quick	32	32.6	33.415	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.00%	74.50%	75.00%	75.00%
Pre-tax Return on Assets	94.60%	99.33%	104.30%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.01%	34.03%	35.09%	N.A.
Return on Equity	56.00%	57.74%	59.53%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	33	N.A.
Accounts Payable Turnover	15	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.4	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$239,000	$252,384	$266,518	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.86	0.87	0.87	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29.1	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.3	N.A.
Dividend Payout	0	0	0	N.A.

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FAQ

1. How can I start my own business as an artist?

To start a business as an artist, you need to use your skill. Make a business plan for artist and work on it to start your own business. You can easily start it once you have made a good business plan for makeup artist. After that, just follow the steps to start a successful business.

2. How do I write a business plan for an artist?

You can use this business plan template for artist to write your own plan.

3. Is an artist a business?

Not all entrepreneurs are artists but it is the fact that all artists are entrepreneurs. Being an artist you can polish your skill and then use it to make a living out of it. The business for artists is their skill through which they can earn money.

4. How much does an art business make?

The amount of money that an art business can make depends upon the type of art you are selling. For example, if you are a graphic artist, you can make a lot of money as compared to an artist who is just a painter.

Download Artist Business Plan Template in pdf