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Do you want to start a pet photography business?
Are you planning to start a pet photography business? Pet photography is a fun yet highly profitable business venture that is gaining momentum in the recent times. Having the love for pets and good photography skills forms the basic foundation for starting this business. According to a 2011-2012 survey by the American Pet Association, 62% which is 79.2 million American households own a pet. An increasing number of pet owners wishing to have portraits of their pets has been witnessed in the recent years. With a good business plan and strategy in place, you can definitely reap good revenue from pet photography.
Executive Summary
2.1 The Business
The Pet Photography business will be registered as Pets Port Inc. and will be situated in Houston, Texas. The business will be owned by Paula Grace who is an experienced and award winning photographer.
2.2 Management Team
Prior to starting a pet photography business, Paula Grace worked as a professional photographer for many years. She has in-depth photography skills having worked in numerous companies and award winning productions as a photographer for over 15 years.
2.3 Customer Focus
Paula deeply understands how the pet photography industry works and for this reason, she has the right strategies in place to target her customers who are primarily pet owners interested in having their pets professionally photographed.
2.4 Business Target
Paula Grace knows where to concentrate her marketing efforts in order to target the appropriate customer segments. Her target is to reach out to markets that will maximize revenue for Pet Port Inc.
Company Summary
3.1 Company Owners
Paula Grace is an experienced animal photographer with a career spanning almost two decades. During the her career, Paula worked for various high profile U.S. photography businesses and offered her expertise on various projects. She is also an award winning photographer recognized for her immense talent and contribution to the industry.
3.2 Aim of Starting the Business
Paula decided to begin plans of how to start a pet photography business after realizing the increasing demand from pet owners who wish to keep portraits of their pets since they’re considered to be part of the family. With a large population of pet owners in Houston, this was definitely a great location for the business.
3.3 How the Business will be Started
Pet Port Inc. will begin operations after a comprehensive market research has been done and a SWOT analysis completed. In this pet photography business plan, Paula Grace has worked closely with financial experts to come up with a detailed financial plan.
| Start-up Expenses | |
| Legal | $3,000 |
| Consultants | $5,000 |
| Insurance | $12,000 |
| Rent | $15,000 |
| Research and Development | $14,000 |
| Expensed Equipment | $9,000 |
| Signs | $4,000 |
| TOTAL START-UP EXPENSES | $45,000 |
| Start-up Assets | $0 |
| Cash Required | $80,000 |
| Start-up Inventory | $43,000 |
| Other Current Assets | $23,000 |
| Long-term Assets | $8,000 |
| TOTAL ASSETS | $23,000 |
| Total Requirements | $25,000 |
| START-UP FUNDING | $0 |
| START-UP FUNDING | $90,000 |
| Start-up Expenses to Fund | $30,000 |
| Start-up Assets to Fund | $20,000 |
| TOTAL FUNDING REQUIRED | $0 |
| Assets | $16,000 |
| Non-cash Assets from Start-up | $8,000 |
| Cash Requirements from Start-up | $0 |
| Additional Cash Raised | $43,000 |
| Cash Balance on Starting Date | $20,000 |
| TOTAL ASSETS | $0 |
| Liabilities and Capital | $0 |
| Liabilities | $0 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $0 |
| Capital | $0 |
| Planned Investment | $0 |
| Investor 1 | $15,000 |
| Investor 2 | $20,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $120,000 |
| Loss at Start-up (Start-up Expenses) | $50,000 |
| TOTAL CAPITAL | $54,000 |
| TOTAL CAPITAL AND LIABILITIES | $30,000 |
| Total Funding | $100,000 |
Services for Customers
Pet Port Inc. plans to offer a wide variety of products and services to its clients in order to increase its competitiveness. Starting a pet photography business should involve a careful selection of products the business will offer to make it stand out. Paula Grace intends to focus her energy on providing unique, creative and high quality products and services. Anybody planning on how to become a pet photographer must think of how to diversify their range of services to attract more clientele to the business. Pet Port Inc. is definitely well positioned to offer quality services because the owner, Paula Grace has extensive knowledge of how to do pet photography for a diverse range of clients. The following are products and services that will be offered by Pet Port Inc.
- Formal studio portraits where pet owners bring their pets to the company’s studio equipped with latest photography technology and lighting equipment for the best shots
- Location portrait session where photographing the pet is done from home or a select location chosen by the pet owner
- Holiday pet photography where Pet Port Inc. organizes for special pet photo shoots during special holidays such as Christmas, Easter and Thanksgiving.
- Pet photography consulting and advisory services
Marketing Analysis of Pet Photography Business
In today’s world, pets are increasingly holding a special place in households across the United States. According to statistics, most people aged between 26 and 70 keep at least one pet in their household with the pet being treated as a family member. In the U.S. alone, pet owners spend around $26billion annually on pet gourmet food, healthcare, specialty items and cosmetic services. With these trends, it’s definitely a great idea to start pet photography business and capitalize on the increased hype. In this business plan for pet photography, Paula Grace has done a comprehensive marketing analysis for Pet Port Inc.
5.1 Market Segment
For Pet Port Inc. to meet its revenue targets, the pet photography business has identified the market segments it needs to reach out to. This is important to help the pet photography business to know where to focus its energies.
5.1.1 Pet Owners
Pet owners are nowadays investing a lot of money to take care of their pets and ensure they are comfortable. This has seen an increased spending on pet related services among them pet photography. Houston is a large city with thousands of pet owners making it one of the most lucrative market segments for Pet Port Inc. given the mass market of pet owners, the business must find strategies of positioning itself strategically to connect and market directly to pet owners. If well tapped, this target market alone can exceed revenue expectations for the business.
5.1.2 Pet Related Businesses
There are many businesses in Houston and its environs selling different kinds of pet accessories. Forming partnerships with pet specialty shops will be of immense benefit to Pet Port Inc. as these businesses receive a large number of pet owners who they can then refer to Pet Port Inc. for pet photography services. This is a great strategy the business can use to expand it coverage area and target more clients.
5.1.3 Households
Houston has a huge number of households that keep pets. How to grow a pet photography business depends on how well you connect with local households which are an immediate revenue source for the business. Despite the fact there are other pet photography businesses, there are still numerous opportunities for the business to tap into.
5.1.4 Pet Zoos
Pet zoos are an important target market for Pet Port Inc. since they keep a large number of pets and can therefore, be in need of pet photography businesses. The advantage of pet zoos is they can offer bulk photography orders which generates a huge amount of revenue for Pet Port Inc.
| Market Analysis | |||||||||
| Potential Customers | Growth | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | CAGR | ||
| Pet Owners | 30% | 14,000 | 15,000 | 16,000 | 17,000 | 18,000 | 8.00% | ||
| Pet Related Businesses | 20% | 10,000 | 11,000 | 12,000 | 13,000 | 14,000 | 10.00% | ||
| Pet Zoos | 25% | 12,000 | 13,000 | 14,000 | 15,000 | 16,000 | 12.00% | ||
| Households | 25% | 13,000 | 14,000 | 15,000 | 16,000 | 17,000 | 14.00% | ||
| Total | 100% | 49,000 | 53,000 57,000 | 61,000 | 65,000 | 10.00% | |||
5.2 Business Target
Pet Port Inc. is fortunate to set up shop in Houston which has a wide target market to explore. There are still unexploited market segments the pet photography business can focus on. The business hopes to achieve an annual sales growth of between 20%-25% in the first three years of operation.
5.3 Product Pricing
When starting your own pet photography business, it is good to do market research and come up with a realistic but profit-oriented pricing strategy to steer the business towards success. In the case of Pet Port Inc. pricing will be determined after a comprehensive market research has been done to determine how much competitors are charging.
Strategy
Pet Port Inc. plans to come up with a structured and effective marketing campaign to reach out to its customers. How to be a pet photographer and be successful begins with implementation of creative marketing strategies in order to realize business success.
6.1 Competitive Analysis
Pet Port Inc. has done a comprehensive market research to identify the best strategies to survive in a highly competitive field and remain relevant in the industry.
6.2 Sales Strategy
For Pet Port Inc. to advertise its products and services to customers, the following sales strategies will be implemented to help the pet photography business achieve its goals.
- Introduce the pet photography business by sending introductory letters and business brochures to the intended target markets
- Drop pet photography business handbills to public facilities in locations and neighborhoods with several pet owners
- Advertise the business on the internet using channels such as Social media platforms i.e. Facebook, Twitter and Instagram. Open a blog for the business and join pet related forums
- Create a basic but search engine optimized website to boost online presence
- List the business on directory listings such as the yellow pages
- Advertise the business on local print and broadcast channels such as newspapers, radio and television.
- Encourage word of mouth marketing especially through referral marketing
6.3 Sales Forecast
Pet Port Inc. has come up with a detailed sales forecast to steer the pet photography business to growth.
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Formal studio portrait | 180,000 | 190,000 | 200,000 |
| Local portrait sessions | 160,000 | 170,000 | 180,000 |
| Holiday pet photography | 140,000 | 150,000 | 160,000 |
| Pet photography Consulting | 120,000 | 130,000 | 140,000 |
| TOTAL UNIT SALES | 600,000 | 640,000 | 680,000 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Formal studio portrait | $200.00 | $220.00 | $240.00 |
| Local portrait sessions | $170.00 | $190.00 | $210.00 |
| Holiday pet photography | $140.00 | $160.00 | $180.00 |
| Pet photography Consulting | $110.00 | $130.00 | $150.00 |
| Sales | |||
| Formal studio portrait | $200,000 | $220,000 | $240,000 |
| Local portrait sessions | $170,000 | $190,000 | $210,000 |
| Holiday pet photography | $140,000 | $160,000 | $180,000 |
| Pet photography Consulting | $110,000 | $130,000 | $160,000 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Formal studio portrait | $2.00 | $3.00 | $4.00 |
| Local portrait sessions | $1.60 | $2.60 | $3.60 |
| Holiday pet photography | $1.00 | $2.00 | $3.00 |
| Pet photography Consulting | $0.80 | $1.80 | $2.80 |
| Direct Cost of Sales | |||
| Formal studio portrait | $170,000 | $190,000 | $210,000 |
| Local portrait sessions | $130,000 | $150,000 | $170,000 |
| Holiday pet photography | $100,000 | $120,000 | $140,000 |
| Pet photography Consulting | $70,000 | $90,000 | $110,000 |
| Subtotal Direct Cost of Sales | $383,000 | $390,000 | $410,000 |
Personnel Plan
If you’re learning how to open a pet photographer business and be successful, you need to have a team of trained personnel to manage the business. A personnel plan has been formulated to identify the right team of staff to run Pet Port Inc.
7.1 Personnel Plan
To help the business plan realize its objectives, the following staff will be hired by Pet Port Inc. Paula Grace who is the owner of the pet photography business will be the Chief Executive office overseeing day-to-day operations of the business. She will be assisted by the following members of staff.
- 1 Admin Manager
- 2 Marketing and Sales Executives
- 3 Pet Photographers
- 1 Accountant
- 1 Cashier
- 1 Customer Service Executive
Successful applicants will undergo on-job training a few weeks before the official opening of the pet photography business.
7.2 Average Salaries
Pet Port Inc. intends to compensate its members of staff the following salaries within the first three years of operations.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| 1 Admin Manager | $25,000 | $27,000 | $29,000 |
| 2 Sales and Marketing Executive | $50,000 | $52,000 | $54,000 |
| 3 Pet Photographers | $75,000 | $77,000 | $79,000 |
| 1 Accountant | $25,000 | $27,000 | $29,000 |
| 1 Cashiers | $20,000 | $22,000 | $24,000 |
| 1 Customer Service Executive | $20,000 | $22,000 | $24,000 |
| Total Salaries | $215,000 | $227,000 | $239,000 |
Financial Plan
Pet Port Inc. has formulated a comprehensive financial plan that will steer the pet photography business on the path towards growth. When considering how much does it cost to start up a photography business, you need to know which financial parameters are related to your business and how to make strategic financial decisions that will drive business growth. In this case, Paula Grace will raise most of the capital from her personal savings. She will be assisted by two investors and creating a bank loan she intends to secure to finance any budget deficit. The following is a comprehensive financial analysis for Pet Port Inc. The following is a comprehensive financial analysis for Pet Port Inc.
8.1 Important Assumptions
The financial forecast for Pet Port Inc. is based on the assumptions below.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 11.00% | 15.00% | 20.00% |
| Long-term Interest Rate | 6.00% | 5.00% | 5.00% |
| Tax Rate | 12.00% | 17.00% | 22.00% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
Pet Port Inc. brake-even analysis is shown in the graph below.
| Brake-Even Analysis | |
| Monthly Units Break-even | 3000 |
| Monthly Revenue Break-even | $220,000 |
| Assumptions: | |
| Average Per-Unit Revenue | $130.00 |
| Average Per-Unit Variable Cost | $1.40 |
| Estimated Monthly Fixed Cost | $250,000 |
8.3 Projected Profit and Loss
Profit and loss information for Pet Port Inc. as calculated on a monthly and annual basis is indicated below.
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $240,000 | $250,000 | $260,000 |
| Direct Cost of Sales | $50,000 | $55,000 | $60,000 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $65,000 | $85,000 | $95,000 |
| Gross Margin | $150,000 | $160,000 | $170,000 |
| Gross Margin % | 70.00% | 74.00% | 78.00% |
| Expenses | |||
| Payroll | $160,000 | $170,000 | $180,000 |
| Sales and Marketing and Other Expenses | $5,000 | $6,000 | $70,000 |
| Depreciation | $4,000 | $6,000 | $7,000 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $6,000 | $7,000 | $8,000 |
| Insurance | $2,000 | $3,000 | $4,000 |
| Rent | $15,000 | $17,000 | $19,000 |
| Payroll Taxes | $35,000 | $40,000 | $45,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $180,000 | $190,000 | $200,000 |
| Profit Before Interest and Taxes | $60,000 | $70,000 | $80,000 |
| EBITDA | $24,000 | $30,000 | $36,000 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $23,000 | $24,000 | $25,000 |
| Net Profit | $130,000 | $160,000 | $190,000 |
| Net Profit/Sales | 25.00% | 30.00% | 33.00% |
8.3.1 Monthly Profit
8.3.2 Yearly Profit
8.3.3 Monthly Gross Margin
8.3.4 Yearly Gross Margin
8.4 Projected Cash Flow
Below is a summary of Pet Port Inc. Pro forma cash flow, subtotal cash received, subtotal cash spent, subtotal cash from operations and subtotal cash spent on operations.
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $50,000 | $55,000 | $60,000 |
| Cash from Receivables | $10,000 | $11,000 | $13,000 |
| SUBTOTAL CASH FROM OPERATIONS | $60,000 | $66,000 | $73,000 |
| 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 | $60,000 | $66,000 | $73,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $25,000 | $27,000 | $29,000 |
| Bill Payments | $10,000 | $12,000 | $14,000 |
| SUBTOTAL SPENT ON OPERATIONS | $35,000 | $39,000 | $43,000 |
| 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 | $45,000 | $50,000 | $55,000 |
| Net Cash Flow | $16,000 | $19,000 | $22,000 |
| Cash Balance | $33,000 | $38,000 | $43,000 |
8.5 Projected Balance Sheet
Below is a Projected Balance Sheet for Pet Port Inc. that shows assets, liabilities, capital, long term assets and current liabilities.
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $100,000 | $120,000 | $130,000 |
| Accounts Receivable | $20,000 | $23,000 | $26,000 |
| Inventory | $4,000 | $6,000 | $8,000 |
| Other Current Assets | $5,000 | $5,000 | $5,000 |
| TOTAL CURRENT ASSETS | $129,000 | $154,000 | $169,000 |
| Long-term Assets | |||
| Long-term Assets | $15,000 | $17,000 | $19,000 |
| Accumulated Depreciation | $12,000 | $14,000 | $16,000 |
| TOTAL LONG-TERM ASSETS | $3,000 | $1,500 | $1,000 |
| TOTAL ASSETS | $209,000 | $236,500 | $265,000 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $16,000 | $19,000 | $22,000 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $16,000 | $20,000 | $24,000 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $16,000 | $20,000 | $24,000 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 |
| Retained Earnings | $35,000 | $40,000 | $45,000 |
| Earnings | $150,000 | $170,000 | $190,000 |
| TOTAL CAPITAL | $170,000 | $200,000 | $230,000 |
| TOTAL LIABILITIES AND CAPITAL | $200,000 | $230,000 | $260,000 |
| Net Worth | $270,000 | $300,000 | $330,000 |
8.6 Business Ratios
The following is the Ratio Analysis, Business Ratios and Business Net Worth for Pet Port Inc.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 4.00% | 45.00% | 65.00% | 5.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 6.00% | 5.00% | 4.00% | 12.00% |
| Inventory | 5.00% | 7.4 | 3.30% | 10.00% |
| Other Current Assets | 3.00% | 4.50% | 5.00% | 42.00% |
| Total Current Assets | 100.00% | 120.00% | 150.00% | 65.00% |
| Long-term Assets | -7.00% | -15.00% | -30.00% | 38.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 6.00% | 4.00% | 3.00% | 28.00% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 24.00% |
| Total Liabilities | 6.00% | 2.00% | 1.30% | 48.00% |
| NET WORTH | 83.00% | 90.00% | 110.00% | 32.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 75.00% | 85.00% | 90.00% | 0.00% |
| Selling, General & Administrative Expenses | 66.00% | 74.00% | 80.00% | 55.00% |
| Advertising Expenses | 5.00% | 3.00% | 1.20% | 4.40% |
| Profit Before Interest and Taxes | 25.00% | 35.00% | 45.00% | 3.20% |
| Main Ratios | ||||
| Current | 13 | 16 | 19 | 2.5 |
| Quick | 30 | 35 | 40 | 5.5 |
| Total Debt to Total Assets | 4.4.% | 5.50% | 2.40% | 65.00% |
| Pre-tax Return on Net Worth | 90.00% | 95.00% | 97.00% | 4.50% |
| Pre-tax Return on Assets | 55.00% | 60.00% | 65.00% | 9.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 20.00% | 25.00% | 28.00% | N.A. |
| Return on Equity | 56.00% | 60.00% | 65.00% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7 | 9 | 11 | N.A. |
| Collection Days | 92 | 96 | 103 | N.A. |
| Inventory Turnover | 18 | 23 | 28 | N.A. |
| Accounts Payable Turnover | 13.3 | 15.6 | 18.2 | N.A. |
| Payment Days | 23 | 23 | 23 | N.A. |
| Total Asset Turnover | 2.8 | 3.8 | 4.8 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0.06 | -0.04 | N.A. |
| Current Liab. to Liab. | 0 | 0 | 0 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $300,000 | $320,000 | $340,000 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 1.3 | 1 | 0.8 | N.A. |
| Current Debt/Total Assets | 8% | 5% | 3% | N.A. |
| Acid Test | 30 | 33 | 36 | N.A. |
| Sales/Net Worth | 3.2 | 2.8 | 1.6 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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