3/26/2014

19025 Wilderness Way, Brookfield, WI, 53045 | Megan Rivard

MOMENTOS

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Table of Contents
I. Executive Summary .................................................................................................... 3
II. Description & Analysis of the Business Situation ..................................................... 4
A. Rationale and Marketing Research ..................................................................... 4
B. Introduction ............................................................................................................. 4
C. Self-analysis .............................................................................................................. 5
D. Analysis of the Business Opportunity, Customer and Location ....................... 6
E. Proposed Organization .......................................................................................... 8
III. Proposed Marketing/Promotion Plan ................................................................ 11
A. Proposed product or service .............................................................................. 11
B. Proposed pricing policy: costs, markups, relationship to competitors ......... 13
C. Personal promotion .............................................................................................. 13
D. Non-personal promotion ..................................................................................... 15
E. Place ....................................................................................................................... 16
IV. Proposed Financing Plan ..................................................................................... 18
A. Projected income/cash flow statement ........................................................... 18
B. Projected three-year plan ................................................................................... 18
C. Capital and repayment plan ............................................................................. 19
V. Bibliography .............................................................................................................. 19
VI. Appendix ................................................................................................................ 20


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I. Executive Summary
A picture is worth a thousand words. Moms favorite thing to do when friends
come over is to take out the old baby photo album and embarrass their child in
front of all of their friends. Pictures of first grade to senior portraits line the
hallways of parents homes. Kids are born, are out of the house and in college in
the blink of an eye. Everyone loves to look at old pictures. From pictures of
children to special occasions, such as weddings, a picture preserves a memory.
It captures the moment and makes it last a lifetime and to generations beyond.
Momentos photography is a local photography business in Brookfield.
Momentos is the full package, offering coverage on their private property. It
captures laughter and memories for families to enjoy and display. Through
careful planning with subjects, Momentos will succeed in portraying character,
uniqueness and expression in a beautiful finished product that is hand-crafted
by the best in the business. That is why Momentos offers a wide variety of frames
and settings that satisfy every customer. Customers are included in every step of
the process, from choosing a venue (on sight, indoor, outdoor), to hand
selecting the final pictures and their displays. In return, the customer gets a true
piece of artwork that is unique to them to exhibit in any environment, from
homes to offices. With superior staff, there will be nothing less than an excellent
experience.
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II. Description & Analysis of the Business Situation
A. Rationale and Marketing Research
Brookfield is an elite city with approximately 37,977 residents. With only three
photography businesses in sight, Momentos would be highly successful in this
area. Both public and private high schools, along with other schools are located
in the city. Approximately 11,223 families that live in Brookfield can utilize and
afford a photography business. Taking family portraits, senior pictures and
special occasion photos are currently trending in the market. Momentos offers
the opportunity to capture the memories and breath-taking scenery that come
with living in an upscale, well-maintained and attractive community.
B. Introduction
Momentos is a local photography business in Brookfield, Wisconsin that offers
professional quality photographs to the consumer. It will offer a multitude of
services, including senior portraits, family portraits, business profile pictures and
special occasion photo sessions for events like weddings or engagements. After
editing and enhancing photographs, the customer will come back to view the
pictures and select ones to purchase. There will be a viewing room that will
include sizing and arrangement options. The order will then be processed and
the customer will return to pick up their product. Purchasing this service and
product will make memories of important events and moments last a lifetime to
be cherished.
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C. Self-analysis
The founder and CEO of Momentos, Megan Rivard, is highly qualified to run and
maintain a business in Brookfield. Born and raised in the Brookfield community,
she has always been involved. Megan went to a private catholic school where
she learned the importance and benefits of community. Continuing these
values in high school, Megan was a part of Key Club for two years. She was a
leader on all of her sports teams, including volleyball and softball and achieved
recognition from coaches, winning the Fred Vetter award. Taking on other
responsibilities, Megan expanded her resume by being inducted into her high
schools National Honor Society club. She also held an editors position in
Yearbook. Working with Yearbook club highly interested Megan in graphics and
photography. It is here that she did a variety of activities including team
bonding activities, coordinating with co-workers and parents, organizing layouts
for Ads for Grads, Superlative and Senior pages and post-processing (cropping
and editing) photos. These pages account for approximately half of a 270 page
published print. This makes her a well-rounded and qualified CEO in an
economic market such as photography.
Megan has extended her profile and education by taking business classes such
as Keyboarding and Entrepreneurship. Excelling in graphic technology, Megan
has completed every photography class at her high school including
Introduction to Imaging, Desktop Publishing, Digital Imaging and Reproduction
and Imaging Seminar. Megan is a strong, independent and intelligent leader.
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The combination of these unique experiences shapes Megan to be the perfect
CEO for Momentos. Through managing multiple tasks, determination, hard work
and taking a risk, Megan hopes Momentos will become a successful, strong
business that holds service to family and the community at the heart of her
operation.
D. Analysis of the Business Opportunity, Customer and Location
Momentos will be operating out of a studio located in Brookfield at 19025
Wilderness Way, Brookfield, WI, 53045 (see Figure 1 below). This location is
currently a vacant, old baseball field that is no longer used. This location is
suitable because there can be an indoor studio with plenty of room but also
have the space and background for outdoor photos as well with nature. This
would not be possible if it was located at a strip mall or somewhere not near an
open area. Fox Brook is also a short distance away, less than a mile, which is a
great sight for pictures with a beach and quarry. Many people will drive past or
near this business. The road that this location is on is River Road, which has 1,500
people drive on every day. It also is right between Brookfield Road, which 7,900
people drive on every day, and N. Barker Road, which 8,900 people drive on
every day (see Figure 2 below).
There is a lot that surrounds this business in Brookfield. The Sharon Lynn Wilson
center has concerts and plays year round to attend, which is right down the
road from this location. Other attractions include spas, golf courses, biking and
running trails, casual and fine dining, and an abundance of shopping.
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Brookfields demographic is a suburban area with a variety of races, genders
and ages that make up almost 40,000 in population. Over 50% of the people
living here have a Bachelors degree or high education levels. The estimated
median household income, according to 2008-2012 U.S. Census Bureau, is
$88,012. This is an increase from data from 2000 that stated the median income
was $76,225. In Wisconsin, the median household income is $50,395. This means
that people in Brookfield have extra money to spend on luxuries. Brookfield
clearly has a higher income and will be able to utilize Momentos services and
products. These upper and middle class residents include veterans, students,
young families and elderly.

Figure 1
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Figure 2
E. Proposed Organization
Momentos will operate as a single-membership Limited Liability Company (LLC)
that is owned and operated by the CEO Megan Rivard. It will operate as this
due to the fact that there is limited personal liability. The business is similar and
taxed as a sole proprietorship. The business will continue to exist after the owner
and CEO has passed. Megan is only responsible for the investments put into the
company. Momentos will not have corporate income tax. Although capital
cannot be raised through stock, it is not needed. This organizational style is highly
flexibly and has legal protection of personal lawsuits.
First, the land will be purchased from the owner of McCoy Field for the building
and office, located at 19025 Wilderness Way, Brookfield, WI, 53045. Proper steps
will be taken to create the building after loan applications are accepted,
including a contractor, permits, licenses, and all other necessary parts to build a
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working studio and office. Once the building is finished, a designer will be hired
to draft and accurately depict the theme and design of Moments. An attorney
will be hired to handle all legal aspects of the LLC.
The internal company will employ six highly skilled employees with pristine
qualities and characteristics that distinguish Momentos from other companies.
All employees will have many years of experience in their respective fields. They
will be passionate, creative, and determined to do a thorough job. These
employees will be compensated for their qualities and characteristics, above
other competitors to promote a healthy company and environment, reflecting
back to our customers.
1 Assistant Photographer: $60,000/year
2 Photography Editors: $65,000/year
2 Sales Consultants: $58,000/year
1 C.F.O (Accountant): $58,000/year
The assistant photographer will be conducting photography sessions besides the
head photographer and CEO, Megan Rivard. This allows more customers to be
helped and more sessions to be able to be booked with more people available.
This will in turn bring in more money for the company and increase sales. It
doubles the chances of availability and leaves a level of security in case of an
emergency situation where one photographer cannot make it to work. Because
Momentos has high expectations of employees, this worker will be making
almost $6,000 over the national average for their position.
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Two photography editors will be hired based upon skill level and experience.
These employees need to be flexible and creative in their work. Their art and
work has to be unique. It is the face of the company and what will draw
customers in. They will be highly compensated for their skill and make almost
$4,000 over the national average for their field. These employees must have a
vast palette of skills and abilities to be hired.
Two sales consultants will be hired based upon prior experience in the sales field,
not necessarily the photography business. This is because they need to know
how to sell frames and other things that relate to the photography business. Any
sales type of background will aid this job and come in handy. They will be
compensated for their experience. These employees are also important. It is one
job to create the product, but it is another job to actually sell it to customers.
These employees are of high importance. They are what bring in the income to
the company.
An accountant will be hired because the CEO will not be able to be the head
photographer, plus handle finances and accounting. This position is to keep the
business in order and on track. This employee will also need years of experience
in the field in order to be hired. They will also be compensated at a higher level
than the national average.
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III. Proposed Marketing/Promotion Plan
A. Proposed product or service
Momentos will work like a typical photography business. Advertisements in
Brookfield and social media will attract customers. Word of mouth and views of
the final product from friends and other members of the community will also
draw people in. Once they decide on Momentos for their service and products,
the customer will call and state the service they want. They will then proceed to
make an appointment at their convenience and arrive at the building on the
scheduled day, bringing whatever clothing options necessary (business, senior
portraits or casual) for the photographs. The service will then be provided with
one of the two photographers conducting the session. They will then schedule a
further appointment to come back and view the final product once it has gone
through the editing process. The length of time depends on the service being
done. They will then meet with a sales consultant in the viewing room with the
products on the wall. The products will consist of different frame sizes and
options to place photos in. They can do a single frame, which will have different
size options such as 5x7, 11x17 and so on. The photography editors will have
different arrangements done as options to the customers as well. Once the final
photos have been picked, the sales consultants can work with the customers on
how they want them finally arranged in different frame formats. Their order will
be placed, along with what frames are decided on, and will pick the order up
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when it is ready. Upon pickup, they will receive the final products, along with a
disc that includes the purchased pictures free of charge.
There are some materials needed for this business. Adobe software such as
Photoshop, Lightroom and InDesign will be needed. These can be purchased at
local retailers such as Best Buy or from adobe.com. JFM Enterprises will supply all
frames needed for Momentos business as well as printing services. Cameras will
be purchased from local retailers, such as Mike Crivellos Camera or Arts
Cameras Plus. Momentos will be open 5 days a week from 10:00am-6:00pm and
on Saturday from 9:00am-6:00pm. Most people are available on weekends,
which is why the hours are extended. Prior to 9:00am and later than 6:00pm are
not necessary hours to be open because they do not provide good lighting for
photos. Special hours can be provided upon request for sunrise photo outdoor
session. The business will have a modern feel, with business attire. The only
exceptions are the photographers and photo editors, who may dress casual,
depending on the occasion. Everyone else must dress business-like to ensure a
professional and well-maintained company image. Photographers may dress
casual to create a comfortable feeling with the customers during the sessions.
Photo editors will be behind the scenes and not seen by the customers. It is
unnecessary for them to dress nice while editing photos. As stated before, their
work is what draws the customers in. They see their finished product and want
something. Because of the creative and unique employees that will be hired in
this position, they will offer services and unique products that are unmatched by
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any competitor in the area to give Momentos a competitive advantage.
Inventory will be kept by the CEO, Megan Rivard, as needed.
B. Proposed pricing policy: costs, markups, relationship to competitors
The marketing strategy of Momentos will target middle to upper class families.
Factors including consumer demand, total costs and competition will help
determine pricing. The studio shoot will have a down payment of $400 prior to
the session that will go towards the final product purchase. $300 will go towards
the final product and the rest will cover the costs of the photography supplies
needed. This is to ensure customers follow through all the way with the services
provided. All frames will have a 75% markup to ensure building, salary and
expense costs. The collages will all fall within a range of $399.00-$699.00. Each
sheet printed for pictures will cost $99. For example, an 8x10 picture will cost the
same as 8 wallet photos because they both will take up one full sheet of printing
paper. The pricing of Momentos is within a very close to competitors, so the
competitive advantage will still lie within the final product produced.

C. Personal promotion
The purpose of Momentos is to create quality professional photos for families to
cherish for years to come. Momentos staff will maintain a strict business dress
code for sales representatives and associates that interact with the customers.
The photographers have a lot more leeway due to the fact that they will be
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outside and moving around in different positions to get the best shots and
angles, so they must still look appropriate (as in jeans and a nice shirt). The
editors may also wear jeans and a nice shirt. They are not seen by the
customers, so it is not necessary to be in a business suit. Employees must buy their
uniforms out of pocket, but get to choose what they wear as long as it is within
the business guidelines. Employees will already be experienced in the fields of
photography editing and sales, so no training will be needed on the job. All
workers must be familiar with promotions, pricing and policies that are
happening within the company. Sales consultants will receive 15% commission
for the products they sell to the customers.
Megan herself values personal selling in her promotional strategies. She will
personally interact with customers and take their calls when possible besides
being the head photographer. If any problems arise between employees and
customers, Megan will oversee these and interject as necessary. Megan will take
great pride in her company and only want a positive image. Not only will they
get service through the company, but also tips if they want to start learning
about photography themselves. With Megan being involved in every aspect of
her company and putting herself out there, a sense of community and face of
the company will emerge.



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D. Non-personal promotion
There will be a lot of non-personal promotion through word of mouth for
customers. They will give recommendations to their friends and family to use the
company. They can also use the services and products again for a different
purpose like weddings, senior portraits or family portraits. Flyers will be posted
around the community (grocery stores, restaurants and movie theaters) that will
be designed by the editors. 25 posters will be printed for $25 through Vistaprint
(see Figure 2 in Appendix). Momentos will also have social media pages
available on a website, Facebook, Pinterest, and Instagram. All social media
promotions will be free (see Figure 6 in Appendix). The website and Facebook
page will be the most useful sites for information. They will include contact
information, pictures and products, a map of location, history of the company
and testimonials from customers. Instagram will solely be for the output of
pictures, with the customers consent. Pinterest will also be used for this purpose,
but will also include tips for photographers and unique insights with the
company. To promote sales, the first month of opening Momentos will provide
customers with a discount. Instead of paying $400 up front, they will only have to
pay the $300 deposit that goes toward their final product costs (see Figure 2 in
Appendix). Finally, because senior portraits are so popular in the Brookfield area,
every April through June, Momentos will offer a Teen Modeling contest. When
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customers do their senior portraits with Momentos within this time frame, their
favorite photo will be placed in a box. From that box, a winner will be picked
and announced mid-June. The winner of the contest will win a $1,500
scholarship towards college (see Figure 3 in Appendix). There will also be
incentives for the customer to purchase more products. One incentive will be to
receive 25 free graduation announcements (see Figure 4 in Appendix),
designed by the editors at Momentos, free of charge when the customer
spends over $1,000 in final products. For 50 announcements, it will cost $7.00 to
print. Also, if they spend over $900 in final product sales, they will receive a free
$300 gift certificate (see Figure 5 in Appendix) towards Momentos that will never
expire and will be able to be used on service in the future. To print 50, it costs
$23.00. These incentives will be ongoing in the business from the day it opens
until the day it closes.
E. Place
Momentos is located in Brookfield at 19025 Wilderness Way, Brookfield, WI, 53045.
Brookfield is the perfect location for Momentos. This location is big enough to
have a large studio. What makes this place unique is because it is short drive to
a public beach and has an open field in its backyard. This makes it extremely
easy to get a variety of shots and landscapes for photos. This is a highly valuable
asset and competitive advantage as versus being in a strip mall next to buildings
and having poor landscape and background choices. With the average
income of Brookfield over the national average, the residents will definitely utilize
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Momentos services because they have extra assets. Brookfield residents make
over $30,000 over the average. This business is not a necessary but a desirable
luxury. Brookfield has a healthy balance between business and family. There is
variety and plenty of residents to fulfill each business. 87.5% of residents own their
own home. The inside will have a very modern look. There will be a waiting area
that is surrounded by frames with pictures previously taken by Megan. There will
be a home feel to it, with couches and refreshments. There will be a hallway
leading to the studio. A changing room will be included in this area. All of the
equipment will also be kept in this space. Off of the hallway will be another
separate and smaller room where customers can come to view the final
products and select frame sizes to purchase. This room will also have a home
feel, with a large projector displaying the edited photos, along with refreshments
and examples on the walls. There will be a computer to update the sales.
Distribution will be from JFM Enterprises for the frames and printing services that
are needed as customers order. The customers will come to the studio to take
the photos, view the products and pick up the final products. Everything
purchased will be handed to the customer on the final visit on a CD. With a
watermark included on this, the customer can post pictures to wherever they
choose. The reasoning behind customers picking up the final product is so that
Momentos can ensure quality and care. This way Momentos will not have to
deal with problems that can occur with outside shipping. It will also keep the
cost much lower.
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IV. Proposed Financing Plan
A. Projected income/cash flow statement


B. Projected three-year plan

Period Starting: Year One Year Two Year Three
Sales
Goods Sold (Pictures and Frames) $342,000.00 $359,100.00 $377,055.00
Total Sales
342,000 359,100 377,055
Gross Profit 342,000 359,100 377,055
Operating Expenses
Rent 6,000 6,000 6,000
Salaries 228,000 228,000 228,000
Payroll Taxes (7.65%) 20,592 20,592 20,592
Insurance 1,800 1,800 1,800
Marketing (Flyers, Annoucements and Gift cards) 750 788 789
Phone/Internet, Office Supplies, Utilities 1,500 1,575 1,653
Costs of Goods Sold (Pictures + Frames) 2,400 2,520 2,646
Total Operating Expenses
261,042 261,275 261,480
Income (Loss) 80,958 97,825 115,575
Period Starting: Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Totals
Sales
Goods Sold (Pictures and Frames) $28,500.00 $28,500.00 $28,500.00 $28,500.00 $28,500.00 $28,500.00 $28,500.00 $28,500.00 $28,500.00 $28,500.00 $28,500.00 $28,500.00 $342,000.00
Total Sales
28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 342,000
Gross Profit 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 342,000
Operating Expenses
Rent 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Salaries 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 228,000
Payroll Taxes (7.65%) 1,716 1,716 1,716 1,716 1,716 1,716 1,716 1,716 1,716 1,716 1,716 1,716 20,592
Insurance 150 150 150 150 150 150 150 150 150 150 150 150 1,800
Marketing (Flyers, Annoucements and Gift cards) 250 250 250 750
Phone/Internet, Office Supplies, Utilities 125 125 125 125 125 125 125 125 125 125 125 125 1,500
Costs of Goods Sold (Pictures + Frames) 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Total Operating Expenses
21,941 21,691 21,691 21,691 21,941 21,691 21,691 21,691 21,941 21,691 21,691 21,691 261,042
Income (Loss) 6,559 6,809 6,809 6,809 6,559 6,809 6,809 6,809 6,559 6,809 6,809 6,809 80,958
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C. Capital and repayment plan
Momentos will require an investment of $500,000 from an anticipated loan. This
money will offset startup costs, along with utilities and building costs. Including
the 8.75% interest, the total borrowed will be $543,000. As Momentos gains
customers and loyalty, the estimated time to pay back the investment is 15 to 17
years, giving 40% of profits towards paying it off per year.
V. Bibliography
"Brookfield, Wisconsin." City-Data. Advameg, Inc., 2013. Web. 18 Mar. 2014.
<http://www.city-data.com/city/Brookfield-Wisconsin.html>.
"Marketing Materials." Vistaprint. Vistaprint, 2014. Web. 21 Mar. 2014.
<http://www.vistaprint.com>.
"Residents." City of Brookfield Wisconsin. Brookfield City Hall, 2011. Web. 17
Mar. 2014. <http://www.ci.brookfield.wi.us/>.
"Salary." Salary.com. International Business Machines Corporation, 2014. Web. 19
Mar. 2014. <http://www.salary.com/>.
U.S. Department of Commerce. United States Census Bureau, 2010. Web. 19
Mar. 2014. <http://census.gov>.
U.S. Department of Transportation. Bureau of State Highway Programs, 2014.
Web. 15 Mar. 2014. <https://trust.dot.state.wi.us/roadrunner/>.
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VI. Appendix
Logo Figure 1


Flyer Figure 2

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Teen Modeling Poster Figure 3


Graduation Announcements Figure 4

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Gift Certificate Figure 5






Figure 6
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Figure 7
Ceo Megan Rivard
Assistant Photographer
Photography
Sales Consultants
Editors
Accountant
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Figure 8











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