PROPOSAL FOR LOAN CONSIDERATION

FOR SMALL PHOTOGRAPHY BUSINESS

By

George B Harris III (SID: 830353266)

Owner, Trinity Photography, LLC

April 11, 2011

Business Proposal

GBH 11-01.0001

Prepared for

John Dillinger

Senior Loan Officer, TCF Bank

TABLE OF CONTENTS

LIST OF ILLUSTRATIONS 3

SUMMARY 4

INTRODUCTION 5

DISCUSSION 6

o Business Plan 6

o Industry Analysis 7

o Concept Feasibility 8

o Capital Requirements 11

CONCLUSION 12

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LIST OF ILLUSTRATIONS

TABLE 1: POTENTIAL SITE REVIEW 8

TABLE 2: SCHEDULING / BOOKING 9

TABLE 3: LOCATION CONSIDERATIONS 10

TABLE 4: CAPTIAL USAGE 11

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SUMMARY

This report details Trinity Photography’s

proposal for small business funding through

TCF bank. Funding secured will be used for

the establishment of Trinity Photography

Studios at the 1514 Blake Street location.

Expansion of Trinity Photography from a home

run business to a standalone studio is

critical to its future success. In order to

ensure the success of Trinity Photography, a

standalone studio is needed to provide

professionalism and credibility; vital for

entrepreneurial success. This report also

details analysis techniques used to determine

if this venture was feasible at this time.

In this section the current local photography

industry was examined to determine trends for

success. In addition, a comparison of

several potential sites and areas of

operation is provided. Operational cost for

Trinity Photography Studio is approximately

$97,068 per year. This cost includes the

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cost of the studio space, operating cost and

automation. The majority of the cost

associated with the operation of a

photography business will be handled through

secondary vendors and service providers to

keep direct cost to a minimum. These vendors

include Mpix.com, an online photo editing and

printing company. Local vendors like

Michaels Crafts will be used for framing

supplies and/or framing services. As stated

above, use of these services alleviates the

need to purchase or rent equipment.

INTRODUCTION

Purpose:

This proposal presents relevant information

for consideration for a small business loan

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with TCF Bank. Additionally, it outlines the

current business plan for Trinity

Photography, LLC.

Scope:

This report will detail the business plan of

Trinity Photography, LLC. It will examine

the current competitors in the photography

market and provide a feasibility analysis for

the expansion of the business. Finally, this

report will detail the capital requirement

for expanding this business from a home

business to a standalone studio.

Procedure:

All information contained in this report was

researched and compiled by George B. Harris

III and Trinity Photography, LLC. We have

reviewed current small business loan rates to

determine which institution would best fit

our needs. We interviewed fellow

photographers and reviewed materials on

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established photography studios to gain

information on the competition. Finally,

using Internet sources, we were able to

calculate the appropriate funds needed to

establish and maintain a studio for five

years.

DISCUSSION

Business Plan:

Background: Trinity Photography was registered as an LLC with the State of

Colorado in September 2009. The founder is

George B. Harris III, who also functions as

owner and operator. Trinity Photography,

LLC, a Colorado based veteran owned and

operated small business provides custom

designer photography, portraits and graphic

design solutions to the Denver Metropolitan

Area. We ensure customer satisfaction by

providing outstanding customer service and

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integrating their ideas and concepts into our

products and presentations.

Business Strategy: Trinity Photography, LLC has identified suitable space in the Denver

Metropolitan Area. The physical location of

the proposed studio is 1514 Blake Street in

the Lower Downtown (LoDo) area. This

location consists of 2,900 square feet of

usable space. Execution of our business plan

will occur in three phases:

Phase one of the business plan

includes acquisition of the office

space, construction and design cost.

For this phase, all marketing tools

(business cards and Website) will

remain as is to ensure consumer

continuity.

Phase two of our business plans

requires a rebranding of Trinity

Photography. In order to accomplish

this, we will need to execute a

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dynamic research and marketing

campaign. This includes identifying

our target and creating a “look and

feel” that attracts them. The final

part of this phase requires outreach

to secure and maintain contract work,

which will help ensure business

continuity.

Industry Analysis:

Small Business: Currently, there are approximately 310 independent photographers

in the greater Denver Metropolitan area.

Analysis of the competition also includes

photographers registered in Denver (City and

County), Aurora, Lakewood, Wheat Ridge,

Englewood, Commerce City, and Centennial. It

was determined that this broader area

provides a more accurate assessment of those

small businesses in direct competition with

Trinity Photography.

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“Big” Business: In addition to small businesses, there are several corporate

studios that are in direct competition of

Trinity Photography. They include, but are

not limited to Target Portrait Studios, Sears

Portrait Studios, J.C. Penny Studios and

other like them. These studios have the

financial backing to ensure adequate

marketing. Their locations provide them with

a contact influx of people, while their

reputation in the sales industry attracts

loyal customers.

Concept Feasibility:

A. Location Analysis

Introduction: This section examines and compares the cost associated with expanding

Trinity Photography from a home business to a

standalone studio. In order for this venture

to be deemed feasible, we must be able to

secure space in excess of 25,000 square feet

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whose price does not exceed $20.00 per square

foot. These figures are based space

requirements for multiple photo stages,

office space, reception and storage.

Analysis: In our research, we were able to find three spaces that fit our basic need.

These locations were then reviewed by looking

at the cost per square inch, the location and

the overall square footage available. See

Table 1.

Table 1Potential Site Review

Location Square Feet Cost

per SQ/FT

1514 Blake 2,900 (min) $16.00

8216 Northfield 3,360

Negotiable

1755 Blake up to 8,025 $26.00

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Conclusion: After reviewing the specification on all three locations and

comparing location and price per square foot,

it has been determined that 1514 Blake is the

best candidate for Trinity Photography

Studios.

B. Scheduling & Booking Requirements:

Introduction: After considering established a full time studio, it was determined that we

would need to employ an assistant / booking

agent or an automated system which would

allow us to manage appointments with very

little hassle. The requirements were to

employ either a person or an automated system

that would cost the least. Additionally,

there would need to be a good interaction

perceived by the customer.

Table 2Scheduling / Booking

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Medium Cost Hours Employed

“Friendly”

Human Employee $9.75/hr. 20 – 25 per

week Yes

Automated System $39.00/mo. Continually

Yes

Conclusion: After reviewing both a traditional and automated means of

maintaining bookings and schedules, it was

determined that the automated system would

provide everything we need with a

considerably less cost. After looking at a

three-year period, a human employee would

cost approximately $38,050 while the

automated system offered through

“Schedulicity” would only approximately cost

$1404 for the same period. Additionally, the

automated system could be employed twenty-

four hours a day, seven days a week.

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C: Location Considerations:

Introduction: One key part of our strategy is to be located in a central area with great

diversity. In looking at locations, we

needed to find a location that is an

attraction in itself, as the large retail

stores like Target are. Also, we need a

location that attracts customers from all

generations, families, students and business

people.

Analysis: In searching out sites for potential studios, we identified the Lower

Downtown area and the Northfield areas. Both

locations meet all the criteria set forth in

the introduction above.

Table 3Location Considerations

Location Attraction Type

Diversity

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Lower Downtown Universities / Colleges

Yes

Nightlife

Shopping

Restaurants

Northfield Shopping Yes

Restaurants

Conclusion: Because of the established criteria of the site requirements, it was

determined by Section A, that the Lower

Downtown region is best primary due to price.

Because both the Lower Downtown area and the

Northfield area both fulfill the need for a

diverse client base, we defaulted the

location decision to the cost of space.

Fortunately, we gained two extra diversity

groups in choosing the Lower Downtown area.

In addition, this area is also an historic

attraction, a source of nightlife and the

location of three major post secondary

schools. With regards to how these various

segments of the community impacts our bottom

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line; it comes down to the matter convenience

to the consumer. By providing the

convenience to their daily lives, we can

increase the odds of repeat patronage.

Capital Requirements:

Trinity Photography is requesting a small

business loan totaling $500,000 USD. As

stated before, funds authorized in this loan

will be used as startup capital for Trinity

Photography LLC. Breakdown of how the funds

will be used as follows:

TABLE 4Capital Usage

Description Annual Cost 5-Year Cost

Studio Space $46,000

$230,000

Automated System $468. $2,340

Operating Cost $50,000

$250,000

Incidental Costs $17,660 ---

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Total(s) $96,968

$500,000

CONCLUSION:

As you can see from this report, Trinity

Photography is in a position to make itself a

leader in the Denver Metropolitan Area arts

community. Our expanding into a standalone

studio only furthers our vision of providing

outstanding art and customer service to our

clients. Securing a location in the Lower

Downtown area to establish and maintain a

studio space at a reasonable price is well

within scope of this loan. As you can see

from our research, we have identified these

key actions that will help our business

remain prosperous after opening. For

additional information on Trinity

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Photography, please visit our website at

www.TPDenver.com.

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