We have a studio space in a highly desirable location, Harlem, New York. FIONAYEDUARDO are commercial photographers/directors with relationships at creative/production agencies. We have the opportunity to rival the big studio houses like Milk and use price as our point of differentiation in the marketplace by offering premium services at lower rates and as part of packages to ensure we have an option that fits any clients needs (large or small).
Due to the previous company (Transistor Films) we are already set with the Tax Payer’s ID and a corporate account. In the next step we need to change the address of the Company, and also add the new members. In addition, we need to speak with a lawyer to set up our terms of service, contracts, liability disclaimers, etc.
Parallel to that, we will begin renovating the space to get it client facing. We need to build a website, social media profile, and phone/email account so we can begin getting the word out to prospective clients. We need to begin investing in equipment/insurance to build out our comprehensive offering
Below is a breakdown of equity by each owner based on the level of expertise they’re bringing to the company and level of commitment and contribution to the success of the company
Fiona
17.5% equity based on business expertise as an advertising sales rep, managing campaigns, managing a team of 7 account managers, on-set photo & video experience as part of FIONAYEDUARDO and ongoing day-to-day work to build the business
Eduardo
17.5% equity based on technical expertise, experience managing studio equipment at Jack and Milk Studios, on-set photo & video experience as part of FIONAYEDUARDO, on-set experience assisting on film and commercial photo sets, and ongoing day-to-day work to build the business
In order to arrive at an initial projection for the profit and losses of our first year, we took into account the following variables:
initial expenses to get the studio up and running
fixed studio costs that we can except month over month
projected revenue/sales profit from studio and equipment rental
All of the above can be found outlined in the cash flow forecast provided.
We will be able to update these figures to be more inclusive once we have a sense of the operating cash we will have available as our starting balance. We will also be able to send an updated cash flow forecast at the end of each month updated with figures based on past actuals.
This revised forecast will also include a breakout of our gross margin and net profit to date. Another addition to the sales forecast will be that of creative services which we will gradually introduce into the studio offering as we build momentum.
For the initial launch, we will be focusing on the studio and equipment rentals as the foundation of the business.
Based on our initial projections, which are subject to change, we anticipate EOY sales for the first year of business to be equal to or greater than $116K while expenses/costs are expected to be around $125K which gives us a total net profit of ~$9K. We expect this figure to more than double in the following year with the removal of the initial startup costs we will face in the first year.