BusinessPlanforPixel&BitsGraphicDesign

AllofthecommentsinthefollowingbusinessplanarebasedontwofriendsLucasandHelenewhowant
tostartasmallgraphicdesignbusinesscalledPixel&Bits.

Pixel&Bitsisacompanythatispresentedasarealcompany.Itservesasanexampleofwhatabusiness
planforaservicecompanythatworksintheservicesectorcanlooklike.

Youcanfindthetemplateforthisbusinessplanat:www.dynamicbusinessplan.com

CONTENT
1. BackgroundInformation
2. Resume
3. BusinessConcept
4. PersonalResourcesandGoals
5. TheProduct
6. TheMarket
7. Sales&Marketing
8. Management&Organization
9. FutureDevelopment
10. Budgets

1BusinessPlanTemplateatwww.dynamicbusinessplan.com

BACKGROUNDINFORMATION

Nameofowners:

LukasEdwardandHeleneWaterfall
Address: H.C.AndersenStreet,8200AarhusN
Telephone 25324030
Email Lukas@PixelandBits.com
Helene@PixelandBits.com
Dateofbirth LukasE.:03.04.1989
HeleneW.:16.09.1990

EDUCATIONALBACKGROUNDLukasEdward:
1yearmasteratSchoolofGraphicandCommunication
5yearsatthehighertechnicalschool,SchoolofGraphicandCommunication

Technicalandvocationalskills:
KnowledgeinMacXLionandWindows7
KnowledgeintheprogramsQuarkXPress,AdobePhotoshopCS,AdobeImageReady,Adobe
InDesign,AdobeIllustrator,MacromediaFreehandMX,Dreamweaver,FlashMX,Digital
Photography,Analogphotography
Linoprinting,silkscreenprinting
Marketingknowledge

Practicaljobexperience:
Working2monthsasafreelancerforADLab
1yearattheadvertisingagencySchaurhoferMarketingCommunications
PracticalworkattheadvertisingagencyLehninger&Partner
WebdesignfortheregionLinzLand,foraPhotographerandJongleur

EDUCATIONALBACKGROUNDHeleneWaterfall.:
5yearsatthehighertechnicalschool,GraphicandCommunication

Technicalandvocationalskills:
Knowledgeintheprograms:QuarkXPress,AdobePhotoshop,AdobeImageReady,Adobe
InDesign,AdobeIllustrator,MacromediaFreehandMX,MacromediaDreamweaverMX
DigitalPhotography,AnalogPhotography,Linoprinting,silkscreenprinting

Practicaljobexperience:
WorkingasafreelanceratADLab
WorkingattheadvertisingagencyReichlundSmith
WorkingattheadvertisingagencyImageProfilerMedia&Communications
ContractworkatthearchitectsRieplandatadvertisingagencyMedias
2BusinessPlanTemplateatwww.dynamicbusinessplan.com

WebdesignfortheregionLinzLand

RESUME

Wearetwoyounggraphicdesignerswhoaretryingtostartasmallandcreativeagencyhereinthetownof
Aarhus.Ourproductsaremainlybasedondesigningandcreatingprintandadvertisingmaterials,suchas
logodesign,typography,designtheory,artdirection,addesign,webdesign,boothdesign,corporate
design/corporateidentity,layout,imageprocessing,colormanagement,prepress,finaldraft,Illustration
andPhotography.

Firstly,weworktogetherforthreeothercompaniesasfreelancegraphicdesigners,wherewegetaround
100hoursofworkeverymonth.Atthesametime,wetryandfindourowncustomers,likesmallshops,
stores,privatepeopleandsmallcompanies.Weplantofindaboutthreecustomersofourownpermonth.

Wewillinitiatecontactwithcustomersbyvisitingthempersonallyandleavingourbusinesscardattheir
desk.After1weekwecallorvisitthemagain,butthatreallydependsonhowmuchtimeandworkweget.
Ontheinternetwehaveourcompanyphilosophy,ourworks/references,andofcourseourcontact
information.

WeoffercustomersanAllinOneConcept,whichmeanswetakecareofallthethingsthecustomer
needsforagoodpresentationoftheirbusiness.

Withourpracticalworkexperience,ourknowledgeandourtechnicalandvocationalskills,weofferthe
marketthesameproductasabigagencydoesbutforacheaperprice.

Wemakegraphicdesignthateveryonecanafford.Thepricefitstothecustomer!

Wedontusemuchmoneyforthestart,soallthemoneyweearnismoreorlessprofitforourcompany.
Wedontneedanymoneyforfundingourstartup,aswealreadyhaveeverythingrequired.

BUSINESSCONCEPT

Salespresentation/15secondelevatorpitch:
Wearetwoyounggraphicdesignerswhohaveourowncreativeagencybusiness.Weofferallkindsof
graphicdesignlikelogos,advertisingmaterial,folders,websites,postersetc.
WeoffercustomersanAllinOneConcept,whichmeanswetakecareofallthethingsthecustomer
needsforagoodpresentationoftheirbusiness.
Wealwaysdoourverybesttosatisfyourcustomersexpectationforgoodgraphicalwork,sowedontstop
untilthecustomerissatisfied.

Ourpricesareveryfairnormally10%lessthanbiggercreativeagencies.
Besideshavingourownbusiness,weareworkingasfreelancersforpartnercompanies.

3BusinessPlanTemplateatwww.dynamicbusinessplan.com

Ourlineofbusiness:
Agraphicdesignagency,flexible,fastandcheapcomparedtothecompetitors,andwhichis
affordableforeveryone
WeoffercustomersanAllinOneConcept,whichmeanswetakecareofallthethingsthe
customerneedsforagoodpresentationoftheirbusiness

Wewanttoselltheseproducts:
Ourproductsaredesigningandcreatingprintandadvertisingmaterial.e.g.logodesign,typography,design
theory,artdirection,addesign,webdesign,boothdesign,corporatedesign/corporateidentity,layout,
imageprocessing,colormanagement,prepress,finaldraft,illustrationandphotography

Ourcustomersare:
Inthestartingperiodwewillworktogetherwiththreecompaniesasgraphicdesignfreelancers
Besidethis,wewilltrytogetordersfromourowncustomers,likesmallshops,stores,private
peopleandsmallcompanies

Wewillfindandgetincontactwithourcustomersthisway:
Byvisitingthepeoplepersonally,byleavingourbusinesscardwithtelephonenumberandweb
address.Ontheinternetwepresentourcompanyphilosophy,ourworks,referencesandofcourse
ourcontactinformation
Afteroneweekwecallorvisitthemagain.Wekeepallthecontactsinadatabasesowecan
contactthemagainatalaterdate

Wealwaysstayincontactwiththecompaniesweareworkingwith

Wearedifferentfromourcompetitorsintheseways:

Withourpracticalworkexperience,ourknowledgeandourtechnicalandvocationalskills,we
areonthesamelevelasthebiggestagencybutweareabletooffercheaperpricesbecause
ofourlowcosts
Ourproductisalsoaffordableforprivatepeoplewhowantstartanewbusiness
Wearemoreflexibleandreallytakecareofourclients,keepinginpersonalcontactwiththem

Thethreebiggestresourceswegiveourbusiness:
Passionandengagement
Graphicknowhowandpracticalexperience
Flexibility

4BusinessPlanTemplateatwww.dynamicbusinessplan.com

PERSONALRESOURCESANDGOALS

Weareverypassionateaboutstartingabusinessandwebothhaveagraphicaleducationandafewyears
ofexperience.Wearebothoutofwork,sowenowhavethetimeandopportunitytogetstarted.

Economy:
Wedonthavetousemuchmoneyforthestartofourcompanywealreadyhavethecomputersandour
creativity,andeverythingthatweearnisourprofit!
Wedontneedagraphicalcolorprinterorotherstuffbecausetwoblocksawaythereisagreatprinting
housewithallthegraphicalgearonecouldeverneed.

Weliveinaverycheapapartmentsowedonothavetoearnalotofmoneytosurviverentandfoodis
ouronlyexpenses.

Knowhowabouttheproduct:
3yearsofworkexperience,
5yearshighertechnicalschoolforgraphicdesignwelleducatedforthiskindofwork
3knownpartnersthatwillbuyourservices/hours
Powerandthewilltodoit!

Weakpointsinrelationtothebusiness:
Weknowthatwearegooddesignersbutwehavenottriedtoselltocustomersyet.Weknowwehaveto
sellsowemustovercomethisthisweakness.

Ourworkingtasksinthebusiness:
Designingandcreatingprintandwebproducts,andalsoprepressandfinishing.Wealsotakecareofthe
contactbetweentheprinterandthecustomer.

Futureprospectsforbusinesssize:
Wedontwanttobecomeabigcompany,wewanttostaysmall(flexibleandcheap).Wewanttomake
reallycreativeworkasfreelancersforbiggeragenciesandalsoforourownclients.Wedontwanttohave
anyotheremployeesforthefirstfewyears.

THEPRODUCT

Thebusinesshasthefollowingproducts:
Ourproductsaredesigningandcreatingprintandadvertisingmaterial:

Logodesign
Typography
Designtheory
Artdirection,
Addesign
Webdesign
5BusinessPlanTemplateatwww.dynamicbusinessplan.com

Boothdesign
Corporatedesign/corporateidentity
Layout
Imageprocessing
Colormanagement
Prepress
Finaldraft
IllustrationandPhotography

Differencesinproductscomparedtocompetitors:

Withourpracticalworkexperience,ourknowledgeandourtechnicalandvocationalskills,weare
onthesamelevelasthebiggestagencybutweareabletooffercheaperpricesbecauseofour
lowcosts
Wearemoreflexiblebecausewearesmall
Wetakecareofourclientsandkeepclosepersonalcontacttothem
Ourproductisaffordableforprivatepeoplewhoforexamplewantstartanewbusiness.

Purchasefrequency/productlifespan:
Ifyousatisfyacustomerthecustomerwilloftencomebacktoyouwhenevertheyhavenewwork.Itis
thereforeveryimportanttonurseeverycustomerandcontactthemregularlysothattheywillbuyagain.
Whenacustomer(person)movestoanewjob,theyoftencontinueusingthesamegraphicalteam.

Calculationofproductprice:
Ourpricesarebasesonhoursofworkourownworkwhichmeansthattheamountofasalestaysinour
company.

Theprintingofbrochures,businesscards,flyersandotheritemsmustbeorderedbythecustomerandthe
billgoesdirectlytothecustomer.Wedoitthiswaybecausethenwewillnothaveanylossesifacustomer
cannotpaythebill.Ifthecustomerdoesnotpayhisbillwewillonlylosethehourswehaveworkedforthe
customerandwedonthavetopayforanyexternalexpenses.

Ourprice:
Ourpriceswillalwaysbe10%lowerthanpricesfromthebiggergraphichouses.
Itwillalsodependonthetypeofthejob,asourpricealwaysfitstothecustomer.

THEMARKET

Thetypicalbusinesscustomer:
Weonlywanttotargetbusinesscustomers.Thetypeofbusinesseswillbe:

Advertisingagencies
Shopsandstores
Smallcompanies

6BusinessPlanTemplateatwww.dynamicbusinessplan.com

Size/staff:Companieswithasizeof125employees,butinpracticeitdoesntreallymatter

Numberofcustomers:
Wealreadyhavethreebusinesspartners/advertisingagenciesthatwilluseusasfreelancers.Theirnames
are:
Krebs&Co
Sq1Agency
UndergroundAd

Besidetheadvertisingagencieswetrytogetourownbusinesscustomers.Itwouldbegreatifwecouldget
3newcustomerspermonth.

Geographicallimits:
Inyourowncountry:Weliveinatownwith700.000inhabitantssothebusinessesinthisareawillbeour
targetgroup.
Foreigncountries:Wearebothforeignersinthiscountrysowemightbeabletogetonlinecustomers
fromsomecontactsinourhomeland.

Averageconsumptionincashpercustomer:
Advertisingagenciesbuyhoursfromus.Wehaveagreedthatthethreewehaveclosecontacttowill,in
total,buy100hourspermonth.
Wedonothaveanybusinesscustomersofourownyet,butwewillfocusongettingthreenewcustomers
everymonth.Wehaveestimatedthatonesmallbusinesscustomeronaveragewilluse20hoursofour
time.

Importantcompetitors:
Alladvertisingagenciesandothergraphicdesignagenciesintownareourcompetitors.e.g.DigitalXPress,
Recommended,FaktorX,JaHallo,Mindpeople,Openminded,Envision,Jom
Buttheresaplaceforeveryone!

Importantcompetitiveparametersonthemarket:
Themajorreasonsforbuyingfromagraphicagencyare:
Recommendationbysomebodyelse
Flexibilityandeasytoworkwithsothecustomercanchangeideasinlastmoment
Deliverontime
Agoodprice

Assessmentofthepossibilitiesonthemarket:
Atthemomentalotofyoungpeoplewanttostarttheirownbusiness,andweareabletohelpthosetoget
agoodimagewithintheirmarketandhelpthemtobesuccessful.
Wewouldliketohelpthemgrow,andalsogrowwiththem.Wethinkthatthereismuchworkandmany
possibilitiestokeepourbusinessrunning.

Threatsthatmaydestroythepossibilities:
Wehavealanguageproblembecauseweareforeigners,butweareslowlyandsurelylearningthe
language.WespeakEnglishwithastrongGermanaccentbutwehopetoappearOK.

7BusinessPlanTemplateatwww.dynamicbusinessplan.com

Anotherthreatisthatwemightnotgetanyjobs,asmaybetheresnoworkforfreelancersatthemoment
andthereforewewontbeablereachourgoalstoearnenoughmoneypermonth.

SALES&MARKETING

Salesandmarketingactivitiesfromstart:

Businesscards:
Wemakethemourself,includingthelogo.Wewillnotputouraddressonthecardbecausewedontknow
ourbusinessaddressyetanditdoesnotlookprofessionaltodisplayourhomeaddress.Itwillonlyinclude
thewebsite,telephonenumberandemail.

Internet:
Wemakeourownhomepage,anditmustbeoperationalthedayweopenourbusiness.Onthewebsite
wewilldisplayourearlierworkssocustomerscanseeiftheylikeourstyle.
Wethinkreferencesfromcustomersareimportantsowewillapproachoneortwosmallbusinessesand
offerthemourserviceatnocostatall.Inreturn,wewillaskforareferencefromthebusinessownersthat
wecanuseonourwebsite.

Network
Atthemomentweareknownaspeoplewhoworkforothers.Assoonaswehaveourownbusinessanda
websitewewillcontactallthepeopleweknowandtellthemwehaveourownbusinessandletthem
knowwhatwesell.Wewilllookforpeopleweknow:family,friends,friendsfromschool,formercolleagues
andanybodyfromourregularhobbies.

Customervisit:
Theonlywaywecangetincontactwiththesmallbusinessownersaretolookthemupandknockontheir
doors.Whenweenterwewillmakeoursalespresentationandaskiftheyneedmoresalesintheir
business.Hopefullytheywill,andthenwecandiscusswhichserviceswecansupply.
Thebusinesscardwillbeusedoneveryvisit.

Telephonesales:
Fivedaysafterthevisittothebusinessownerwewillcalltheowneragainandfollowuponourmeeting.
Wewillalsonoteinourcalendarthatwemustmakeanewfollowupinsixmonthstime.
Wehavedecidedthatwewilldevelopacustomerdatabaseof50potentialcustomers,andwewillcall
theseevery6month.Intheendtheywillsimplyhavetohireusforajob.

Advertising:
Wewillpossiblyuseanewspaperadvert,butitdependsontheprice.Wewillnotusethispossibilityto
beginwith.

Presentationmaterial:
Wealreadyhaveourwebsiteandbusinesscards.Weareconsideringmakingaflyerexplainingour
differentproductstothesmallbusinessowner.

8BusinessPlanTemplateatwww.dynamicbusinessplan.com

Publications:No
Signposting:No
Directmail:no
TradeFair:No
Openingmarketactivity:No
Pressrelease:Nowearenotthatspecial

MANAGEMENT&ORGANISATION

Nameofbusiness:

Pixel&Bits
WestStreet22
8200AarhusNorth
Tel:+50299468,
info@PixelandBits.com
www.PixelandBits.com

Legalstatusofbusiness:
PixelandBitsisgoingtobeaPartnershipwithtwoowners:
LukasE.
HeleneW.

Bank:
WeopenedawithdrawalaccountinthenameofPixel&BitsatNordicBank,52WestStreetbranch.

Businesspolicies:
Pricepolicy:Thepricefitstothecustomerandwilloftenbe10%underanycompetitors.
Discountpolicy:Wearenotexpectingtododiscountsafterwehaveagreedtheprice.
Methodofpayment:Assoontheworkisdonewesendoutthebillanditmustbepaidwithin14
days.
IfPixel&Bitsmanageprintingorotherexternalexpenses,theseexpensesmustbepaidbeforehand
orpaiddirectlybythecustomertotheexternalsupplier.
Guaranteeservice:No.
Service:Wefollowup5daysafterdelivery.
Staffpolicy:Nootherstaff,sonostaffpolicy.

Procedureforaccountancyandadministrativeroutines:
Wedonotwanttodotheaccountingourself.Helenesfriendhaspromisedtohelpusmaketheaccounts
sowefulfillthenationalrequirementsforproperaccounting.Thereareonly2peopleinthecompanyand
assuchwewillproducefewinvoices,meaningthecostsarealsominimal.

9BusinessPlanTemplateatwww.dynamicbusinessplan.com

FUTUREDEVELOPMENT

Businessappearanceinthreeyears:
Wewanttodevelopustoasmall,establishedcreativeagencymaybeabureauincombinationwitha
shop,sopeoplecancomeinfromthestreet.Wewillbeknownforgoodgraphicdesignwork!Wedont
wanttohaveanyemployeeswithinthefirstthreeyears.

Customersinthreeyears:
Wewanttokeepthosewehaveandgrowwiththemwhileofcoursetryingtogainnewcustomers.We
prefertoworkwithsmallbusinesses

Financialforecastforyearthree:
Threeyearsisalongwayaheadtoplanbutwewanttoearnadecentamountofmoney.Wearenot
planningtoearnalotofmoneybutwewillatleastearnasmuchmoneyasahighschoolteacheror
maybeevenabitmore.

Othergoalswithyourbusiness:
Ifwemanagetofindapremisesforourbureauthatcanalsoworkasashop,wewouldliketosellart
objects,suchastshirtsandclotheswhicharesilkscreenprinted(amongothercreativethings).

10BusinessPlanTemplateatwww.dynamicbusinessplan.com

BUDGETS
Establishing Budget for Pixel & Bits

Premises
Rent 0
Deposit for purchase of premises or business 0
Deposit (3 months rent) 2.250
Goodwill 0
Furnishing and renovation 200

Office fittings
Furniture (desk, swivel chair, shelves etc.) 0
Computer new Mac but we might wait 2.000
Telephone 200
Copying machine 500
Other things: 0

Marketing
Web site, business cards 100
Brochures 0
advertisement 0
Signposting 0
Opening reception 300
Other things 0

Total costs 5.550

11BusinessPlanTemplateatwww.dynamicbusinessplan.com

Operating budget Year 1

12 month

Turnover
Design, logo and creativity 45.000
Web site incl. CMS system 37.000
Other 10.100
Total 92.100

Varable Costs
Web CMS system - 40 % of sales 14.800
Variable Costs 14.800

Gross Profit: (Turnover - Variable Costs) 77.300

Contribution margin 84%
Regular costs
Freelance help 9.500
Rent, electricity, heat, water 9.000
Car service/mileage allowance, travel 2.400
Office equipment 1.200
Mobile phone, internet 2.520
Marketing/web site etc. 3.600
Insurances 300
Computer equipment 0
Minor purchases 1.200
Accountant 700
Unsuspected costs 5% of costs 1.521
Total Regular Costs 31.941

Net turnover (Gross Profit - Regular Costs) 45.359

Thisbusinessplanisbuiltoverabusinessthatisconstantlydeveloping.Yourbusinessisdynamicsoyour
existingbusinessplanisonlyasnapshotofhowitlookstoday.Tomorrowitmaylookdifferent.

Leadyourbusinesstowhereyouwantittogoandtrytomakeitblossomeveryday.

12BusinessPlanTemplateatwww.dynamicbusinessplan.com