JOHN DEL ANEY, DECEMBER 2009

FRIENDS & FAMILY FOTOS INC. (Working title)

Having been in the photography business for a number of years, I have been able to
closely observe the business models that have succeeded (and failed) in the Egg Harbor
Twp area. It has struck me that there are a number of studio portrait locations that
concentrate on formal, posed family photography. Then there are the ‘kids only’ mall
operations (which also provide Christmas themes) and also locations that offer passport
and ID photography as a side business.
My desire would be to have a one-stop location for all portrait type photographic
needs that would not rely too heavily on one sector of the market. And although I would
certainly accommodate the more tradition types of posed shots with backgrounds and
holiday themes, I intend to also offer more relaxed situations for friends, families and
individuals to feel more at ease with their surroundings.
As a stimulus to income, I will have a small number of high- profit photographic
accessories such as popular batteries and memory cards at the sales check out.
LOCATION
The Shore Mall would be my desired location as I believe that larger locations in this
area have prohibitive rents and already offer some (though not identical) competing types
of business that I intend to carry-on. Its location near the shore, beside the Garden State
Parkway and in the fast-growing EHT and Galloway Township areas provide a steady
stream of customers, additionally attracted by the anchor Boscov’s store.
EMPLOYEES
The plan I envisage includes myself, two full time and three part-time employees
working regular mall hours. I maintain contact with a number of former colleagues who
have expressed a keen interest in joining me in this endeavor, one of whom will be a
partner.
EQUIPMENT
The technical side of the business will require an initial purchase of two SLR type
cameras along with tripods, lighting, backdrops and numerous accessories. A bulk
purchase from B&H Photo will cover our needs. Images will be processed and printed on a
stand-alone digital unit (probably from Fujifilm) along with a maintenance and supplies
contract. Hard copy folders and wallets (with our logo) will be purchased locally.
The business end of the daily store management and operation (such as cash
registers and supplies) will be dealt with on a case-by-case basis using the experience and
contacts we have gained over numerous years in the retail trade.
START-UP MONEY
My initial estimate of start-up money (itemized below) will be provided from three
sources. I and my business partner will each provide $10,000; we hope to secure $80,000
from the State Small Business Agency, while we hope to secure $20,000 from Bank of
America. This comes to a total of $120,000. The following is a breakdown of start-up costs.
ITEMS MONTHLY YEARLY
Rent 12,000 48,000
Property Insurance 150 1800
Liability Insurance 100 1200
Corporate Tax 40 480
Federal Taxes 80 960
State Taxes 30 360
Local Taxes 10 120
Mercantile License 6.25 75
FUTA & SUTA 40 480
Sales Taxes 1680 20160
EIN Number 31.25 75
Lawyer 250 3000
Accountant 333.3 4000
Advertising- Business Cards & Flyers 41.6 500
Web Site Domain Name 10 120
OSHA Materials 10 120
Water 90 1080
Electricity 130 1560
Telephone 120 1440
Heat 150 1800
Security Gate 170 2040
Alarm System 60 720
Payroll
Loan Repayment 600 7200
Subscription & Dues 20 240
Fuji Frontier Lease 250 3000
Camera Equipment (Appendix 1) 300 3600
Camera Accessories (Appendix 2) 75 900
Lighting Accessories (Appendix3) 50 600
Studio Accessories (Appendix 4) 50 600
Office Expenses (Appendix 5 ) 25 300
Stationery (Appendix 6) 10 120
Domestic cleaning supplies (Appendix 7) 10 120
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