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Executive Summary
WebNext is a proposed graphic design services being started by two trained and educated entrepreneurs with a total investment of GBP 42,556. It is projected that during the first year of operations itself the business will earn a revenue of about GBP 100,000 and will make substantial profits that will only continue to increase over the three year period projected in this document.
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The projected RoI for the first year of operations is about 74%. The RoI is high due to the individual contribution of the promoters directly and there is no other labour cost that has been incorporated into the business plan.
WebNext aims to provide best of graphic design services and will market its services through its website and also continuous search engine optimisation techniques.
Background
Digital technology has revolutionized the way graphics are being handled. In the earlier years of print and design technologies the entire process was laborious and cumbersome. Advent of computers and powerful design tools have changed all that. Earlier graphic logo designing used to be time taking and involved drawing out images by hand and colouring them with hand. These were then made into high resolution photographic images and negatives were used in the printing process.
For larger quantity printing the images were converted into “blocks” and then printed, this was for monochrome printing. For colour images, number of blocks were made for each colour pass and the paper was printed repeatedly until all the colours were printed. This process involved printing multiple times or on larger machines, different rollers were used for printing repeatedly or the number of passes increased. Added to that the number of colours and shades that could be used were limited. Reproduction used to be difficult and even shoddy or every laborious almost always. Computer digital technology has changed all that and today designing or technically called as graphic designing has changed all that. Today computers, as small as the laptops are capable of creating complex designs. The colour schemes are myriad, reproduction quality excellent and every copy a clear original. This is because of the advanced printing technology that is available on a desktop and colour laser printers are not really expensive today and are available at low costs.
All this may not be clearly visible to a normal business user but is readily known to people who have a deep introduction and knowledge of the information and communication technology (ICT).
Business & Promoters
“WebNext Graphic Services” is a partnership business between, <put your name here> and <put your partner’s name here> started off with the sole purpose of offering graphic designing services suitable for Web 2.0. The business purpose is to offer logo designing, corporate design packs, visiting card designs, outdoor media design, print media advertisement design and copywriting services to the clients. Both the partners are bachelor degree holders and are very good at creative work. Their graphic design works have been appreciated at the school and university level earlier.
The promoters are bringing in equity of GBP 10,000 each and the funding plan for the business is presented in detail in this document.
Infrastructure requirement for the business
The infrastructure required for this business is as follows:
- Space of about 100 square feet on rent in the North of Oxford Street neighbourhood at GBP 92 per square feet costing GBP 9200 per annum
- Initial furnishing and outfitting costs to include two workstations, one client meeting area, reception desk costing approximately GBP 2500
- Hardware requirements: 2 Apple Macbook air costing GBP 999 each total: GBP 1998
- Wifi Networking router, initial internet connection and other miscellaneous internet related requirements: GBP 3,000
- 2 HP LaserJet Pro printer 400 Printer M401 dn at GBP 229 total GBP 458
- Stationary of different media costing approximately GBP 3000
- Website registration, design and setup expenses: GBP 6200
- Website Search Engine Optimisation @ GBP 1,200 per month for one year GBP 7,200
- Other miscellaneous expenses for one year @ GBP 750 per month: GBP 9,000
TOTAL Expenses: GBP 42,556
The promoters are bringing in equity of GBP 20,000, the gap is GBP 22,556 for which back or institutional funding is required.
Business success:
A typical graphic designer in the United Kingdom earns about GBP 14,000 per annum working about 35 hours a week. In a search on the Design Week portal there were about 149 jobs available for graphic designers. In another search on Indeed there were 3,737 jobs found.
The data presented above indicates the kind of acute demand that is there in the market for this kind of services. Any organization that is interested in getting visiting cards, envelopes, boards, hoardings, invitation cards, logos, flex design, event management designs etc would require a service of a graphic designer.
Having established the fact that there is an acute demand for these services and the promoters have the technical knowledge for delivering the services by virtue of their formal qualifications and that the marketing is tied up because of reliance on internet and social media marketing the business is assured of complete success and hence the imminent need for financial support from institutions.
Funding and repayment
After establishing the need for the business services and the viability of the project it is decided to approach a bank for funding required. Business loans are available for two year and three year period at interest rates of 7.99 and 6.99 percent respectively. On discussion between the partners it is decided to take the loan for two years only and quickly repay the loan within the two years and use the excess funds available from third year onwards for business expansion.
Conclusion
WebNext is a profitable business proposition and funding from institutions will be cleared in two year time frame. The need and demand for these services is clearly established and required and is projected to be a profitable business venture.
Bibliography
Apple Inc, 2014. Select your MacBook Air. [Online] Available at: http://store.apple.com/uk/buy-mac/macbook-air[Accessed 10 November 2014].
Designweek.uk, 2014. Grpahics Jobs. [Online] Available at: http://jobs.designweek.co.uk/jobs/graphics/london-central-/[Accessed 10 November 2014].
Find a London Office, 2014. Office Rent London: Our Definitive Rental Guide – Updated for 2014 Q3. [Online] Available at: http://www.findalondonoffice.co.uk/toolbox/rental-guide/[Accessed 10 November 2014].
HP, 2014. HP LaserJet Pro 400 Printer M401dn. [Online] Available at: http://store.hp.com/UKStore/Merch/Product.aspx?id=CF278A&opt=B19&sel=PRN[Accessed 19 November 2014].
Indeed, 2014. Graphic Designer Jobs - Vacancies in England. [Online] Available at: http://www.indeed.co.uk/Graphic-Designer-jobs-in-England[Accessed 10 November 2014].
National Career Services, 2014. Job Profiles - Graphic Designer. [Online] Available at: https://nationalcareersservice.direct.gov.uk/advice/planning/jobprofiles/pages/graphicdesigner.aspx[Accessed 10 November 2014].
