The Ideas
I’ll post my ideas here when I start to work on them, i have a few of them lined up, but obviously i’ll only work on them one at a time.
PhotoNOW!
This is the basic idea of what I’m going to do, I also have a few, simple but powerful ace’s up my sleeve which I won’t be sharing just yet – This is not a business plan – My goal is to have a Net Profit of £1,000,000 by the end of my fifth year.
The Gist
I won’t be reinventing the wheel, the idea is quite simple, I’m going to shoot studio style photographs in shopping centres, mainly of younger children between the age of 0-10.
Small, easy to set-up and high profit yielding products. I’ve seen a few people do this before with reasonable success, I hope to take it a step further.
Simple Numbers = Big Profits
How am I going to make a million pounds in just five years with this idea?
I was once shown how to break down a business idea to see if it was viable or not – in such a simplistic way it would fit on a back of a beer mat.
You estimate your turnover, minus the major running costs and leave lots to spare.
I know you can’t start a business on a back of a beer mat, but its a good place to start.
Here we go:
One Studio – per week, I estimate I can turnover £2200.
Running Costs: Rent – £500 a week, Wages – £700 a week – £1200 Total
£1000 a week profit minus other running costs.
52 weeks in a year – £52,000 profit, minus other running costs.
Ten Studios – £520,000 profit, minus other running costs, per year.
Twenty Studios – £1,040,000 profit, minus other running costs, per year.
I aim to have 13-15 running studios by the end of my third year.
(Please note these are just rough numbers, rent and turnover will vary between shopping centres!)
Problems & Setbacks
Despite how well you plan for something, the inevitability that something will jump up and bite you in the ass always remains. These unfortunate surprises will always happen when they are least expected and never wanted.
However, this is no excuse for lack of foresight and planning. Some problems must be prepared for and expected from the start. Back up plan after back up plan is the key to overcoming any situation.
Turnover falling short of estimates.
My estimated amount has been worked out by watching two different photographers, with two different styles in one shopping centre. One of them was making more then my predicted amount and one was making less, also this was a few months ago, with the current market and ‘credit crunch’ I could be in for a harsh ride.
Countermeasures.
Trying to use the current market situation to my advantage, I can negotiate lower rent from landlords and market my products as inexpensive gifts which won’t hurt the wallet.
I’ve also based my idea on having two members of staff, when it could be run by one person per studio, I would much prefer having two members of staff due to my ideas on how the method of selling will work, but if the money isn’t their I’ll have to run the studio with one person.
2 Comments
Ben on August 31st, 2009
Many thanks Katherine!
It’s a very basic model, but it works assuming the numbers you predict are close, at the moment I’m falling a little short on my predictions but I have plenty of tricks up my sleeve.
Kat on August 27th, 2009
I can see your vision Ben. The working models you have posted are similar to the ones I toy with, whether it’s graphics or greetings. For me it’s taking that giant leap first. Oh and willing clients