Business Plan

by
Guen Ganub

Adorable Pet Photography

Thomas Cloma Avenue
Booy, Tagbilaran City 6300
guengganub@gmail.com
www.samplegueng.com

Prepared March 25, 2022

©AdorablePetPhotography2022
INTRODUCTION
Owners and their beloved pets, this is what makes our world go around. We are aware that
there are many photographic studios, at either end of the spectrum, that will consider
photographing a pet. However, they do not openly welcome your furry family members. At
Adorable Pet Photography, pets are our only business. We are dedicated to capturing a
moment you can remember forever to preserve a special relationship. With many years of
experience, and a gentle approach in an unhurried environment, we will preserve your
memories in a beautiful piece of photographic art. Our strong commitment to client
satisfaction is showcased by the perfect photograph that captures the personality of the pet
and the loving relationship between the pet and owner.

Objectives

Adorable Pet Photography is a small business aimed at bringing a smile to every pet
owner’s face when they see their beautiful family member captured in a stunning portrait.
Our goal of superior customer service and satisfaction will take dedication on the part of all
staff members and vendors. The vision manifests itself in three ways:

1. Produce the same outstanding quality results time after time.

2. Be recognized as the top and first pet photographer in our province.

3. Be steadfast to our commitment for customer service and satisfaction.

Keys to Success

The key to success at Adorable Pet Photography includes our commitment to quality and
customer satisfaction. We will be responsible for ensuring a high degree of professionalism
in three areas:

• Consistent fulfillment of the clients’ expectations.

• Competitive pricing for the quality and array of services offered.
• A fair and reasonable profit on each portrait.
PROJECT SUMMARY
Adorable Pet Photography is a small business designed to meet the needs of its clients
and their pet family members.

Business Location

Adorable Pet Photography has acquired an ideal location at Thomas Cloma Avenue, Booy
District, Tagbilaran City. The location guarantees a steady stream of pet owners who have
already demonstrated love for their pets and a willingness to spend money on them by
bringing them a studio wherein their babies can relax and pose at the same time like a
model. The location provides a unique opportunity to attract the clients by providing the
best service specialize for their furry babies.

Our Mission and Vision Statement

• Our vision is to build a pet photography company that will become the preferred
choice for pet owners all around Tagbilaran City and other key municipalities in the
province of Bohol that we intend marketing our services.

• Our mission is to strive to be the best choice for the client. Providing high quality
portraits, competitive pricing, and excellent customer service is our hallmark. Pet
photography, even in a strong economy, is a luxury; therefore, our customers will
receive a portrait that captures not only the beauty of their pet, but also the
personality. This will be achieved through client interviews and patiently spending
time with each pet to make them comfortable in the setting chosen by the owner. At
Adorable Pet Photography, we view pets as members of the family. Through
consistent, high-quality results we are committed to providing each client with value
and satisfaction.

Value Proposition

For the pet owner who desires a photographic portrait, Adorable Pet Photography’s custom
portrait package will capture the beauty and personality of the pet and document a lasting
and cherished piece of art. Unlike portrait studios that photograph pets only as a sideline,
pets are our only business. We understand that a pet is an important family member and
that this special relationship should be captured in a way that pleases the client.

Business Description

The company is established as a home-operated, part-time sole proprietorship. It is the

intention of the company to develop sales and broaden the client base so as to become a
full-time business. The company will offer a full range of custom portrait packages. Portrait
sittings are available in either the well-equipped studio, the comfort of the client’s home, or
in an outdoor setting. The owner hires a professional and experienced photographer to
serves as the head photographer and will require one assistant.

The founder and the owner of Adorable Pet Photography is Guen Ganub, who loves to
capture moments with her pets that gives her motivation to start her own business. As she
combines her love for her pets and photography, she funded this business with her personal
savings along with her sister’s small financial help. The founder owns all of the equipment;
therefore, no financial outlay is required for photographic equipment. Because Adorable Pet
Photography is a home-based business, overhead is low. Salary for the owners will be
withdrawn from the year-end funds once the business is established and profitable.

SWOT ANALYSIS

Adorable Pet Photography employed the services of an expert HR and Business Analyst
with bias in start – ups to help us conduct a thorough SWOT analysis and to help us create
a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Adorable Pet
Photography.

• Strength:

The strategic locations we intend covering, the business model we will be operating on,
ease of payment, wide range of photography services and our excellent customer service
culture will definitely count as a strong strength for Adorable Pet Photography, Inc.

So also, we have a well – experienced and qualified team that can go all the way to give our
clients value for their money; a team that are trained and equipped to pay attention to
details when it comes to pet photography and other photography services.

• Weakness:

A major weakness that may count against us is the fact that we are a new pet photography
business and people may neglect the idea of giving their pets a photoshoot and think that
its too impractical to try it.

• Opportunities:

The fact that we are launching out in Tagbilaran City , provides us with unlimited
opportunities to sell our services to a large number of pet owners, churches, schools,
corporate organization, and households et al who need the services of a professional pet
photography company.

We have been able to conduct thorough feasibility studies and market survey and we know
what our potential clients will be looking for when they hire our services; we are well
positioned to take on the opportunities that will come our way.

• Threat:

One of the major threats that we are likely going to face as a pet photography business that
is just starting in the Tagbilaran City is economic downturn. It is a fact that economic
downturn affects purchasing / spending power – this is so because most pet owners
consider the services of pet photography as luxury services.

Another threat that may likely confront us is the arrival of a pet photography company or a
photography company in same location where ours is located. unfavorable government
policies can also pose a major threat to businesses such as ours

MANAGEMENT AND PERSONNEL COMPONENTS

The management of Adorable Pet Photography will be very simple in the first few years. In
addition to performing the artistic functions of the business, the photographer is also the
proprietor and initially must be involved in all aspects of the business, such as marketing,
payroll, management of both accounts receivable and accounts payable, and other
miscellaneous business details. Additional personnel can be added as the business accounts
grow, in order to alleviate these responsibilities from the photographer.

The staff for the first two years of operation will consist of two part-time individual who will
serve as an office and photographer’s assistant. In the third year of operation, this position
will be upgraded to a full-time assistant as the assumptions regarding profitability come to
pass.

Adorable Pet Photography’s growth will be deliberate rather than fast paced. It is possible
that the business will need additional staff. Gaps in the personnel structure might well occur
in the support staff. It is a reasonable assumption that the demands of the office, and also
assisting the photographer, might become too much for one individual. Depending on the
strengths of the individual that fills the first part-time position, the second staff member will
be hired as a complement, and both will be trained in the other’s duties
Because the business is small, there is no need for an elaborate personnel structure. The
receptionist/photographer assistant position will initially only be needed part time. The
following table assumes that this position will become full time in fiscal year 2023. No
salary is set for the owner, and will be determined at year end, based on profitability of the
business. This is feasible only because the owner has additional income to support normal
living expenses.

A reasonable staff for start-up would be one part-time employee in addition to the
photographer. The duties and job description would for this person would include:

• General reception duties, including phones, mail, and greeting customers.

• Setting appointments and managing appointment calendar.

• Tracking inventory and supplies.

• Billing, handling both accounts receivable and accounts payable.

• Assist photographer in portrait sessions.

• Assist with marketing strategies and plans.

MARKETING STUDIES
A. MARKETING PROFILE

Market Segmentation

The breakdown for the market for Pet Photography is somewhat diverse, as are the
products designed to meet those needs. Individuals, as well as organizations, require
the services that we provide. In order to provide the greatest depth, the market
segments have been broken down into private organizations and individuals
stratified by age groups.
Private organizations and businesses:
Private organizations and businesses, such as Topbreed Robina Agri Partners,
sponsor specialty pet show events. Championship pet breeders represent the second
largest volume in units, but the most exposure to other potential clients, in the pet
owner segment. The pet shows will generate documentary photographs for the
organizers of the show as well as publicity photographs for the winning pet owners.
This category has the potential for tremendous referral and direct sales to pet
 owners. In addition, the market potential for professional breeders of championship
stock for quality studio portraits is high.
Pet Owners:
The market in this category can be further divided into product lines designed to
meet the needs of pet owners:
• Studio and Location Portraits: This category will generate the second-highest
level of income for the business; the market segment will be white collar
professionals 26-60 years old. Individuals that fall into this age group have at least
one pet per household and spend in excess of 25k annually on their pets. The studio
portraits will capture a lasting memory, and the location portraits will highlight the
relationship with the family at home.
• Seasonal Promotions: This category represents the highest level of sales. The
product in this category will appeal to the same age group but focuses on a more
candid photograph to capture the pet in a theme setting such as Christmas,
Valentine’s Day, or Halloween.
• Stock Photography Market:
Copyright of all photographs taken by Adorable Pet Photography will be retained
unless the rights are specifically sold to the pet owner and the negatives are
released. These photographs will be marketed as stock photography for use on
calendars or promotional material. While this represents a small volume in overall
sales, it represents a tremendous potential for exposure to new clients.

Market Trends

A close observation of the Photography industry shows that the industry has
experienced several changes as digital cameras and post – production technologies
have increasingly affected players in the industry. While photographers are
benefiting from the changes by increasing their efficiency and availability,
consumers are now able to take professional-quality images without the need of a
specialist.
Nevertheless, revenue is expected to improve slightly in the next five years as
photography companies focus on niche markets, such as pet photography, wedding
photography, children photography, documentary photography, events, sports and
church directory photography, to sustain demand.
Lastly, the trends as it relates to pet photography is not stagnant; it is not common
to find a pet photography company that only specializes in taking pictures of pet.
Most often than not, the average pet photography company also handle other aspect
of photography such as individual or group portrait photography, school portrait
services, commercial or industrial photography, documentary photography,
wedding photography and sports photography et al.
 With this, it will be easier for them to stay busy throughout the week, generate more
revenue and of course increase their profit margin.

B. DEMAND ANALYSIS

Potential Customers Demand rate

Private Organizations/Business 25%
Individual Pet Owners 65%
Stock Photography Market 10%

Many of today’s white-collar professionals, between the ages of 26 and 60, have at least
one pet in the household. The pet is treated as a family member, and the owners spend
approximately 25k annually for gourmet food, cosmetic services, health care, and specialty
items. Adorable Pet Photography will reach this audience by targeting clients of these
existing markets. We will fill an existing need for the client by specializing in pet
photography. Through advertisements in the print media, brochures, and establishing
working relationships with pet organizations and pet specialty businesses frequented by our
potential client base, we will highlight our quality products and services.

C. SUPPLY ANALYSIS
Adorable Pet Photography employs local vendors who have the same desire to be
the best at what they do. Through the use of reliable local vendors, we are able to
reduce the cost of supplies and offer more services to the client. We use only
Kodak™ photo film and photo paper, which is processed by APA Laboratories. APA
Laboratories deals only with professional photographers and offers the latest in
photo finishes and portrait sizes. By using the services of APA Laboratories,
Adorable Pet Photography is able to reduce the need for additional personnel,
 expensive photographic laboratory equipment and supplies, thus minimizing our
start-up cost and capital investment. This saving trickles down to the client in our
portrait-package pricing. At Adorable Pet Photography, we concentrate on the
artistic quality of the portrait image; we leave the enhancement of that image to the
taste of the client and the professionals at APA Laboratories.

D. COMPETITIVE ANALYSIS
The company will offer a wide variety of products, such as: formal studio portraits,
on-location portrait sessions, holiday candid photographs, cherished companion
session, portrait finishes, and framing.

SESSION PRICING
The fee schedules for Adorable Pet Photography portraits are competitively priced.

Formal Studio Portraits ~ P300 plus tax

The studio is a controlled environment, free from distraction, where the pet can be
comfortably posed and lighted to enhance the beauty of the final image.
• A variety of props and backgrounds will be used to stage a setting that will highlight
the pet’s features and coat color. There is a standard charge for the portrait
session which we refer to as the sitting fee.
• A total of 24 proof-quality photographs will be provided for the client within five
days of the photo session.
• The client will then have ten days to consider the images and the portrait packages
before making a final selection.

On-Location Pet Session ~ P450 plus tax

The custom pet portrait session fee includes:
• 90-minute photo session focused on your four-legged friends at the location of your
choice, including up to 2 pets. There is a P50 fee for each additional pet from the
same household (which also includes 1 additional high-resolution digital
image). A second location may be added for P75.
• Our time and talent to carefully curate and digitally edit approximately 30-40 images
presented in an online proofing gallery so you can review and select your favorite
images to order prints, digital files and/or products.
• Your choice of 5 high-resolution digital images with print authorization.

Cherished Companion Session ~ P400 plus tax

This session is ideal to capture images of your elderly or terminally ill pet. We
recommend a quiet, safe environment like your home for this session. Please note:
 the Cherished Companion Session is designed to address the needs of one
pet. There is a P50 fee for each additional pet from the same household.
With a Cherished Companion session, you get everything included in the On-
Location Pet Session, as well as:
• Priority scheduling – we always do our best to make time to fit you in for a session.
We are available on Saturdays and Sundays for sessions.
• 10% discount on your prints/products order.

Holiday Candid Photographs ~ P350 plus tax

Through arrangements with local pet stores and other pet specialty stores, will
provide pet owners with the opportunity to have 12 snapshot-quality photographs
taken of their pet with Santa Claus or the Easter Bunny.
• Other holiday-themed candids, such as Valentine’s Day, Mother’s Day,
Father’s Day, Fourth of July, Halloween, and Thanksgiving are also available.
• The photos will be mailed to the client within five days. Negatives from
these photo sessions will remain the property of Adorable Pet Photography
should the client wish to have reprints made.

Channel of Products Distribution

Adorable Pet Photography will use marketing databases to accurately target

our market. Working closely with local pet show organizations, specialty pet
stores, and other pet service businesses, we will place well-designed advertising
material in these locations to illustrate our capabilities. Our portrait studio will
maintain flexible hours and scheduling to accommodate and expand our client
base. Because we are dedicated to customer service and satisfaction, we will use
our client base to continually maintain our reputation for excellence.

Considering the rise in income and population, coupled with the increased
spending for pet-related items and services, the demand for pet photography
services can only increase.

Competitive Comparison

Adorable Pet Photography is the first photographers in the Tagbilaran City area
that specialize in pet portraits. We are experts in working with pets to make
them comfortable and to bring out the inner quality and personality of the pet.
We also work with the other family members to include them in the portrait
session, if that is the desire of the client. Although we are a new organization, we
are not novices to photography or photographing pets. Our scheduling and
location flexibility are specifically geared to be client friendly.
 The fee schedules for Adorable Pet Photography portraits are competitively
priced. No other area photographer offers the flexibility and array of services
provided to the client at Adorable Pet Photography. Our commitment to
customer service and satisfaction is unequaled.

The critical threats to this business venture are:

• Sudden negative change in the local or national economy, since this is a

luxury item.
• Increased competition in the metropolitan Atlanta market.
• Unsuccessful partnerships with pet specialty show organizers, breeder
associations, and pet specialty stores.

At Adorable Pet Photography, we care about our community. We use only local
suppliers who have a reputation for excellence and timeliness; thus, we add back
to the economy of the area. We participate with the local Humane Society by
creating a virtual adoption page on their website by photographing the animals
available for adoption. These photographs have helped to increase the adoption
rates of the local programs.

E. PROGRAM ANALYSIS OF MARKETING STRATEGIES

Adorable Pet Photography is located inside the city limits of Tagbilaran. It is a

home-based business, with an area of the lower floor dedicated to client reception,
portrait viewing/gallery, office, and a 500 square-foot studio. Clients can elect to
have the portrait sitting done in the studio, on location in the client’s home, or in an
outdoor setting.

Demographic Profile of Pet Owners:

Gender % Marital Status %
Male 34 Married 62
Female 66 Unmarried couple 3
Single, never 17
married
Age % Divorced/separated 9
18-24 9 Widowed 6
25-29 8 Refused 3
30-34 11
35-39 12 Child under 18 in %
household
40-49 26 Yes 39
50-64 20 No 60
 65 or older 13 Refused 1
Refused 1

Education % Total Family %

Income
8th grade or less 2 Less than 20,000 10
Some high school 5 20,000-34,999 14
High school 33 35,000-49,999 21
graduate
Some college 27 50,000-74,999 19
College graduate 23 75,000-99,999 8
Graduate study 8 100,000+ 7
Refused 2 Refused 21
Mean (000’s_ 53.4
Median(000’s) 46.6

Use of the Internet % Internet Usage %

Yes 55 Once a day or more 62
No 43 At least once per 28
week
Refused 2 At least once per 7
week
Less than once per 3
month
Varies too much to 0
say
Don’t know/ 0
Refused

Psycho-graphic Strategy

Our target markets are middle- to upper-middle class families, couples, individuals,
or private organizations and businesses. We chose these groups because they are
most likely to have pets who would be considered a member of the family, and
because they are most able to afford high-quality studio portraits of their pets.

In today’s current environment, pets occupy a prominent place in a family, or as the

central focus of attention in a single household. Sales trends for pet-related
merchandise have shown substantial annual increases since 1996 (Bunn, 1998). Pet
industry sales closely parallel the general trends, such as gourmet foods, high-
 fashion accessories, and medical and dental needs (Simpson, 1998). Adorable Pet
Photography fills a need for capturing a moment in time, or preserving a special
relationship and providing loved ones (the human kind) with a high quality portrait
of them and their best friend. Considering the rise in income and population,
coupled with the increased spending for pet-related items and services, the demand
for pet photography services can only increase.

Pricing Strategy
Pricing is one of the key factors that give leverage to pet photography business, it is
normal for consumers to go to places where they can get good deals or hire the
services of a photography company that can give them good bargain for their
money.
We are aware of this trend which is why we have put structures in place that will
enable us charge fees that are a little below the industry’s average. We will ensure
that we reduce our overhead, and we are ready to run on low profit margin for the
first six months of launching the business just for the purpose of attracting loyal
clients and build our clientele base.
Payment Options
The payment policy adopted by Adorable Pet Photography is all inclusive because
we are quite aware that different customers prefer different payment options as it
suits them but at the same time, we will ensure that we abide by the financial rules
and regulation of the City of Tagbilaran.
Here are the payment options that Adorable Pet Photography will make available to
her clients;
• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client
make payment for farm produces purchase without any stress on their part. Our
bank account numbers will be made available on our website and promotional
materials to clients who may want to deposit cash or make online transfer for our
photography services and products.
Publicity and Advertising Strategy

Despite the fact that our pet photography company will be well located, we will still go
ahead to intensify publicity for the business. We are going to explore all available means to
promote our pet photography business.

Adorable Pet Photography has a long-term plan of covering various locations in major
cities all across the province of Bohol which is why we will deliberately build our brand to
be well accepted in the City of Tagbilaran before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning
customers over but to effectively communicate our pet photography brand. Here are the
platforms we intend leveraging on to promote and advertise Adorable Pet Photography;

• Place adverts on both print (community based newspapers and magazines) and
electronic media platforms

• Sponsor relevant community programs

• Leverage on the internet and social media platforms like; Instagram, Facebook,
twitter, et al to promote our brand

• Install our Bill Boards on strategic locations all around Tagbilaran City

• Engage in road show from time to time

• Distribute our fliers and handbills in target areas with loads of pet owners

• Position our Flexi Banners at strategic positions in the location where our photo
studio is located.

• Ensure that all our workers wear our branded shirts and all our aerial drones,
vehicles are well branded with our company’s logo et al.
PRODUCTION
A. PRODUCT SPECIFICATION
Adorable Pet Photography offers a variety of products and services to meet
our client’s needs. We offer specific information on each of our products to
the prospective client. This information is designed to help the client select a
setting for the portrait session. The pictures we provide give the client a feel
for the variety of poses that can be used, and help them decide if they wish to
incorporate other family members in the portrait. The discussion of the
different settings helps the client select a studio session, home session, or
outdoor location for the portrait. We also provide instructions for each
setting. For example, for formal portrait sessions, we provide detailed
instructions to the owner for aiding their pet to feel at home in unfamiliar
surroundings, and items such as a favorite toy or blanket to bring along to
the sessions.

B. PLANT RATED CAPACITY

Product A Product B Product C Product D Product E Total

Shift hours 8 8 8 8 8
Product 10 25 15 20 5
SAM
Line 70% 80% 70% 90% 65%
Efficiency
Product 528 1,245 760 2,350 52
capacity
product-
wise
(in pieces)
Total
capacity 4,935
(per
month)

Quantity
Total capacity after 1 year 62,000
Total capacity after 5 years 80,465
C. PRODUCTION PROCESS

D. MACHINERY AND EQUIPMENT

High resolution DSLRs that allows photographers to capture fast action in

high megapixels of brilliant resolution. With remarkable advancements
across the board.
High-resolution printers make a print of the image readily available–no
processing of film is required. The software to control and manipulate the
digital images can remove unwanted objects and shadows and enhance other
qualities.
Digital camera- P80,000-P100,000
Tripod- P3,500-P8,500
Reflectors- P500-P2,000
Backdrop- P500-P1,000
Studio Lights- P25,000-P30,000
High quality photo printer- P30,000-P50,000
Kodak Photo Paper- P400-P600
Frames- P200-400

Adobe Photoshop Plan- P5,399.46/month

Adobe Lightroom Plan- - P5,399.46/month

DxO Photo Lab Plan- P5,176.44/month

E. PLAN LOCATION
Adorable Pet Photography has acquired an ideal location at Thomas Cloma
Avenue, Booy District. The location guarantees a steady stream of pet
owners who have already demonstrated love for their pets and a willingness
to spend money on them by bringing them a studio wherein their babies can
relax and pose at the same time like a model. The location provides a unique
opportunity to attract the clients by providing the best service specialize for
their furry babies.

F. BUILDING FACILITIES
Adorable Pet Photography is a home-based business, with an area of the lower floor
dedicated to client reception, portrait viewing/gallery, office, and a 500 square-foot
studio. Clients can elect to have the portrait sitting done in the studio, on location in
the client’s home, or in an outdoor setting.

Our office is equipped with the latest in business technology: telephone systems,
computers, fax machines, email, copiers, printers, and software. The company will
maintain a high degree of professionalism by using only the highest-quality
photographic equipment and film to produce its portraits.

ESTIMATED COSTS OF BUILDINGS AND FACILITIES

Item Description Value

Location: Building floor plan P50,000
Equipment Photographic and P150,000
Printing equipment
Studio preparation Backdrop design and P25,000
Lightings
Reception preparation Telephone system P65,000
and computers
Business licenses and Licenses and permits P1,500
permits
Total: P291,500

G. RAW MATERIALS
Adorable Pet Photography use only Kodak™ photo film and photo paper,
which is processed by APA Laboratories. APA Laboratories deals only with
professional photographers and offers the latest in photo finishes and portrait
sizes. By using the services of APA Laboratories, Adorable Pet Photography is
able to reduce the need for additional personnel, expensive photographic
laboratory equipment and supplies, thus minimizing our start-up cost and
capital investment.
 H. POWER SUPPLY AND UTILITIES

Utility expenses include items such electricity, water, and waste. Monthly
utility expenses include the following items.

Item Description Value

Utilities Electricity P4,500
Water P750
Waste P300
Total P5,550

I. PRODUCTION COST

This is the monthly salary of the head photographer and the other staffs. No
salary is set for the owner, and will be determined at year end, based on
profitability of the business. This is feasible only because the owner has
additional income to support normal living expenses.

Head Assistant Receptionist

photographer
Payroll 12,700 7,000 5,300
Other 0 0 0
Total People 1 2 1
Total Payroll 12,700 14,000 5,300

FINANCIAL STUDIES
Photography businesses usually require an enormous initial investment in
equipment and facilities. The owner of Adorable Pet Photography has been
an avid photographer for many years and possesses professional-level
photographic equipment to get the business off to a good start with minimal
debt. In addition, the will be a home-based business, with no rent or lease
commitment. The charts and tables that follow demonstrate that these up-
front investments allow Adorable Pet Photography to function with limited
debt and overhead. This gives the business a quicker break-even point and
increased profit margins from the start. As Adorable Pet Photography grows,
a debt-free philosophy will be maintained.
 Important Assumptions
Tax rates are included for informational purposes. We carry a small loan
burden that will affect this rate minimally.

General Assumptions
Plan Month 1 2 3
Current Interest Rate 8.00% 8.00% 8.00%
Long-term Interest 10.00% 10.00% 10.00%
Rate
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

Key Financial Indicators

The following chart benchmarks four key indicators, including sales, gross
margin, operating expenses, and inventory turnover. These were chosen due
to their significant impact on the health of the business. These are not
focused on gross amounts, but on year-to-year changes. The chart uses
indicator values that are set to compare changes with the base year showing
up as 1.00, and all successive years showing up as multiples from the base.

Projected Profit and Loss

Adorable Pet Photography expects a 15 percent annual growth rate for the
first three years due to the owner’s already established reputation and
contacts. Overhead is expected to be stable, with the exception of the
receptionist/photographer’s assistant becoming a full-time position in fiscal
 year 2023. This allows a predicted 20 percent increase in profits before
interest and taxes in the second year of business; this figure remains stable
even with the increase in personnel expense the third year. It should be
noted that the owner’s salary will be taken out of this figure.

Pro Forma Profit and Loss

Sales P805,150 P999,160 P1,135,145
Direct Cost of P395,105 P489,090 P530,097
Sales
Other 0 0 0
Total Cost of P395,105 P489,090 P530,097
Sales
Gross Margin P410,045 P510,070 P605,048
Gross Margin % 50.93% 51.05% 53.30%
Expenses
Payroll P384,000 P330,000 P390,000
Sales and P57,105 P49,090 P60,097
Marketing and
Other Expenses
Depreciation 0 0 0
Leased 0 0 0
Equipment
Utilities P66,660 P66,700 P67,048
Insurance P28,000 P28,000 P28,000
Rent 0 0 0
Payroll Taxes 0 0 0
Other 0 0 0
Total Operating P535,765 P473,790 P545,145
Expenses