2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Photography Studio, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Photography Studio requires $125,000 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 the Photography Studio, Inc.

2.5 Exit Strategy

If 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 the Photography Studio. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Mr. Doe and his staff will provide professional photography services for individuals and businesses throughout the target market. For each photography job completed by the Company, revenue is recognized in two ways. First the business generates the bulk of its fees from the on-site or in-studio services provided by the Company’s photographers. Second, the business generates sales from the proofing and photographic development offered to each client. Additionally, the business sells framing and other miscellaneous album products to customers complimentary to the services offered by the Company.

 

 

 

 

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the photography industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, Photography Studios tend to operate with some degree of economic immunity as people/corporations will continue to host events (described earlier) despite deleterious economic conditions. As such, as long as the Photography Studio can maintain a strong reputation within its market, the business should not have issues with top line income generation.

4.2 Industry Analysis

Aggregately, photographic services generate more than $20 billion dollars per year of sales among 18,000 businesses within the United States. This industry has undergone several changes over the last ten years with the advent of electronic photography that now rivals the quality of traditional film. Within the commercial segment of the industry, approximately 10% of aggregate industry revenues are generated from photography services for magazines, catalogs, and other commerce needs. The remainder of the revenue comes from portraits and event photography. The industry employs almost 80,000 people and provides approximately $3 billion dollars a year of payrolls. The growth of the industry is expected to continue to mirror that of the general economy. The photography industry, while having undergone several technological changes, is a mature industry. Technological changes, such as the development of high quality electronic photography, have created benefits for both photography studios and customers in that proofing is now a streamlined process, and cost of film development has been significant reduced.