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Natalie Elizabeth Photography + Design N E P + D

Natalie Suner 5538 W 72 Place

TABLE OF CONTENTS 1 EXECUTIVE SUMMARY................................................................................................................................3

2 GENERAL COMPANY DESCRIPTION........................................................................................................4 2.1 BUSINESS DESCRIPTION...............................................................................................................................................4 2.2 BUSINESS PHILOSOPHY................................................................................................................................................4 2.3 MISSION STATEMENT...................................................................................................................................................4 2.4 COMPANY GOALS & OBJECTIVES................................................................................................................................5 2.5 LEGAL FORM OF OWNERSHIP.....................................................................................................................................5 2.6 LOCATION & HOURS.....................................................................................................................................................5

3 PRODUCTS & SERVICES..............................................................................................................................6 3.1 PRODUCT / SERVICE DESCRIPTION...........................................................................................................................6 3.2 FEATURES VS. BENEFITS..............................................................................................................................................9

4 MARKETING PLAN..................................................................................................................................... 11 4.1 INDUSTRY ....................................................................................................................................................................11 4.2 CUSTOMERS.................................................................................................................................................................13 4.3 COMPETITIVE ADVANTAGE......................................................................................................................................15 4.4 COMPETITIVE ANALYSIS...........................................................................................................................................16 4.4.1 Niche........................................................................................................................................................................18

4.5 MARKETING STRATEGY ............................................................................................................................................18 4.5.1 Branding / Messaging.....................................................................................................................................19 4.5.2 Positioning............................................................................................................................................................20 4.5.3 Promotion.............................................................................................................................................................20 4.5.4 Pricing ....................................................................................................................................................................22 4.5.5 Tracking & Communication..........................................................................................................................22

5 OPERATIONAL PLAN................................................................................................................................ 24 5.1 LEGAL ENVIRONMENT ..............................................................................................................................................24

6 MANAGEMENT & OPERATIONS ............................................................................................................ 25 6.1 OWNER BACKGROUND..............................................................................................................................................25 6.2 PROFESSIONAL & ADVISORY SUPPORT..................................................................................................................25 6.3 RISK MANAGEMENT STRATEGIES...........................................................................................................................25

7 FINANCIAL PLAN........................................................................................................................................ 26 7.1 FUNDING SOURCES ....................................................................................................................................................26 7.2 STARTUP EXPENSES & CAPITALIZATION...............................................................................................................26 7.3 PROJECTED CASH FLOW...........................................................................................................................................26

1 EXECUTIVE SUMMARY Natalie Elizabeth Photography + Design (NEPD) is a photography and design company based in Denver, Colorado specializing in photography services including lifestyle, couples, maternity and newborn, and family and children. This authentic, creativity-driven company handcrafts collections of thought-provoking photography and design by embracing the beauty of simplicity. At our core, we are adventure-lovin’, storytelling artists who articulate our clients’ ideas and vision through photography and design. Our goal is to explore the paths of your story and create something raw and beautiful through the prism of our lens. We’re not looking to book the most sessions a month without any personalization. We rather devote as much time as possible to each client, getting to know each one personally as we set up an adventure that captures the emotion of their story. Whether it’s documenting a major milestone, capturing an unforgettable moment, or showcasing your passion, we want to take you on an inspiring journey. Being located in Colorado lends itself to current trends in outdoor photography, a feature our target market embraces and values. People who pay for portraits are generally status-conscious professionals with a taste for high-quality and creative images. They often entertain at home and the photos on their walls need to exhibit good quality and taste. Our target market consists of middle- and upper-income women. This is the population most likely to order professional photos on a regular basis, having both the means and acquired taste for professional quality photographs. We will target college-educated, female professionals and wives of professionals, because women make the majority of purchasing decisions in these families. Families with children are one of the biggest markets for portraits. The key element of our family strategy is to target parents of newborn babies in target neighborhoods soon after they leave the hospital. In addition, we see potential in targeting local businesses and self-motivated entrepreneurs. Headshots and behind-the-scene images are frequently in demand by budding “creatives” such as bloggers, stylists, and designers. These individuals often have professional photography needs to showcase their products and services. They are often seeking creative visual content to help establish a consistent brand. At NEPD, we pride ourselves in delivering quality photos, but it’s our artistic flair and infectious enthusiasm that provides a one-of-a-kind style and experience for our clients. In this start-up year, NEPD will launch a suite of design services in the third quarter for the aspiring entrepreneur. Design services include handcrafting brands, websites, and strategy to help the motivated entrepreneur attract their dream clients. This component complements our ongoing photography services and will be a defining time in our business.

2 GENERAL COMPANY DESCRIPTION

2.1 BUSINESS DESCRIPTION Natalie Elizabeth Photography + Design (NEPD) is a photography and design company based in Denver, Colorado that specializes in photography services including lifestyle, couples, maternity and newborn, and family and children. Design services include handcrafting brands, websites, and strategy to help the motivated entrepreneur attract their dream clients.

2.2 BUSINESS PHILOSOPHY Three things we know never go out of style: 1. Craftsmanship

We’re masters of our craft who bring energy and infectious enthusiasm to every story we tell. As artists, we create a collection of beautiful and thoughtful photography and design by giving a node to the modern minimalist. We are obsessed with the quality of our work and have pixel- perfect attention to detail. -Made with love in the USA

2. Connection

Focus on the client and all else will follow. At NEPD, our creativity thrives on connection. And we work hard to promote a collaborative culture that empowers the creative in people. Together, we connect the pieces to tell your story.

3. Education

We are eternal students of the art of visual storytelling. And as students, we pay it forward by

sharing what we learn in our journey.

2.3 MISSION STATEMENT Photography | We help clients capture the special moments in their life, from the quiet ones that go on daily to the important moments and everything in between. We believe moments should be cherished and preserved for a lifetime. Design | To help clients attract their dream client, one brilliant message at a time. Together with our clients, we help handcraft stories when clients struggle to find the words. We help clients DIY with style!

2.4 COMPANY GOALS & OBJECTIVES GOALS OBJECTIVES

Self-employment Convert one-time customers into lifetime clients

Establish workflow from client intake, pre- consultation, post-processing, and follow-up

Define photography niche

Launch content-creation services

Annual sale target - Year 1 $50,000 Year 2 $80,000

Expand design services – web / graphic

Increase partnerships and collaborations Strengthen online engagement with over 100,000 followers on Pinterest, Facebook, and Instagram Post consistently – once daily on IG / FB

Increase blog content | 4 – 6 posts monthly

2.5 LEGAL FORM OF OWNERSHIP NEPD is a Limited Liability Corporation owned by Natalie Suner. Based out of Denver, Colorado, NEPD operates photography services within a 30-mile radius for no travelling fee. NEPD services extend outside this radius to other parts of the state and country.

2.6 LOCATION & HOURS NEPD utilizes the natural environment for the majority of photo sessions performed. The location for photography services is determined during the pre-consultation session with the client and may include the outdoors, clients home, venue, or studio. The most flattering times for a photo shoot with natural light are two hours after sunrise, and two hours before sunset. This is the golden glow that brings warmth and perfect lighting to clients’ portraits. As a part-time photographer, business hours can fluctuate to include weekends and a few weekdays.

3 PRODUCTS & SERVICES

3.1 PRODUCT / SERVICE DESCRIPTION When you reserve a session with NEPD, you are booking much more than just a photo session. Our goal is to explore the paths of your story and create something beautiful through the prism of our lens. We’re not looking to book the most sessions a month without any personalization. We rather devote as much time as possible to each client, getting to know each one personally as we set up an adventure that captures the raw emotion of their story. Whether it’s documenting a major milestone, capturing an unforgettable moment, or showcasing your passion, we want to take you on an inspiring journey. When you become a client of NEPD, you are getting a custom, personalized service. All of our photos are created in a high-resolution digital format and meticulously edited with unique finishes. Lifestyle Portraits Individual or group portrait photography is the industry’s largest product segment, making up 34.1% of industry revenue. NEPD has a comprehensive program targeting this segment for the high school seniors and self-motivated entrepreneur. Lifestyle portraits are commonly needed for individual and business websites as well as senior portraits. High School Senior Portraits Senior pictures are a long-standing tradition that brings high school seniors into photo studios. By making these photos easily accessible in digital form, and by marketing prominently on the Internet, we hope to capture much of this market. We offer a special package of a family portrait at half price with the purchase of a lifestyle session. It is often the parents who are paying for the senior portrait, so we want to establish a relationship with the parents as well. The parents will want a picture of their senior with the rest of the family. This introduction to the family will allow us to market our other services. Creatives Creatives are the movers and shakers that inspire us daily. They’re on the cusp of doing something great with their business and are on a mission to increase brand awareness through thought- provoking and soul-jerking photography. These entrepreneurs’ ambitions are larger than life and they need great photography to market their great brand. Photography services include product and lifestyle portraits. Maternity Portraits Being pregnant is one of the most beautiful and memorable times in a woman’s life. At NEPD, we want to celebrate the life growing inside by capturing clients’ during a moment when their skin is glowing and body has more curves. The journey to motherhood is an adventure and deserves to be captured. Newborn Portraits Our breakthrough product are newborn portraits. We see newborn portraits, as gateway products for our photography programs and as an opportunity to establish a long-lasting client relationship. Newborns are our prime gateway product for entering families into our programs of ongoing portraits. The first few days of life are a defining moment in family history so our goal is to capture every roll and wrinkle that can be treasured for years to come. The styled newborn session includes a unique combination adorable props, baskets, and soft blankets hand-picked for each session.

Family & Children Portraits Family defines where we come from and reminds us that we belong. Portraits of the entire family are needed for display, to send to relatives and to use for family announcements. Families have many photographic opportunities that can lead to future business. Couples Portraits Couples photography captures two target markets for woman who are preparing for their wedding day and those who are celebrating love. During these sessions, our goal is to capture the soul and essence of our couple and we’re happy to go wherever their story will take us.

Promotional Programs Little Explorers Program We arrange pictures of baby / child throughout the year to capture those sweet fleeting moments that pass us by. Our packages include: Package 1:

• Two styled on-location 45-minute photo session • Guidance on theme and wardrobe choices • Hand-select props and accessories • Post-session Viewing to review your collection

Package 2: • Three styled on-location 45-minute photo session • Guidance on theme and wardrobe choices • Hand-select props and accessories • Two outfit changes • Post-session Viewing to review

Package 3: • Four styled on-location 45-minute photo session • Guidance on theme and wardrobe choices • Hand-select props and accessories • Two outfit changes • Post-session Viewing to review

Branding Program Geared for the entrepreneur who wants to strengthen brand awareness and their visual identity. As an artist and business owner, we know first-hand the importance of communicating your story to your dream clients. Images should speak for themselves and do the selling for you. Your website, social media, and newsletter are a visual representation of your business and deserve to be just as great as the brand you are creating. As your business evolves, you need fresh content that is reflective of your progress. Because we at NEPD love creating insanely different experiences, this

program is designed to help entrepreneurs tell their story and capture the beauty of their product / service so that they don’t have to. Package 1:

• Four styled on-location 45-minute photo session • Guidance on theme and wardrobe choices / product placement • Hand-select props and accessories • Post-session Viewing to review your collection

Package 2: • Eight styled on-location 45-minute photo session • Guidance on theme and wardrobe choices / product placement • Hand-select props and accessories • Post-session Viewing to review your collection

Package 3: • 12 styled on-location 45-minute photo session • Guidance on theme and wardrobe choices / product placement • Hand-select props and accessories • Post-session Viewing to review your collection

‘Carpe Diem’ Program Seize the day is the mantra of these adventure lovers. Not only do these adventurers embrace the outdoors, they want to savor every minute of their special moments. We arrange portraits of the family and lifestyle sessions which can include pets or couples. Package 1:

• Two styled on-location 45-minute photo session • Guidance on theme and wardrobe choices • Hand-select props and accessories • Post-session Viewing to review your collection

Package 2: • Four styled on-location 45-minute photo session • Guidance on theme and wardrobe choices • Hand-select props and accessories • Two outfit changes • Post-session Viewing to review

Package 3: • Six styled on-location 45-minute photo session • Guidance on theme and wardrobe choices • Hand-select props and accessories • Two outfit changes • Post-session Viewing to review

Service Price

30-minute session $175 60-minute session $300 90-minute session $350 Newborn – 2 hour $450 Newborn – 3 hour $500 Little Explorers Program

Package 1 $350 Package 2 $425 Package 3 $525 Branding Program Package 1 $525 Package 2 $925 Package 3 $1,400 Carpe Diem Program Package 1 $325 Package 2 $525 Package 3 $750

3.2 FEATURES VS. BENEFITS PRODUCTS/ SERVICES

FEATURES BENEFITS

Lifestyle Portraits

• Editorial style photography • Unique finishes • Pixel-perfect quality • Guidance on theme / wardrobe

• Capture and preserve moments • Document family history • Artwork for the home • Creative and fun process • Sense of comfort and status • Market business

Couple Photography

• Editorial style photography • Unique finishes • Pixel-perfect quality • Guidance on theme / wardrobe

• Capture and preserve moments • Document family history • Artwork for the home • Creative and fun process • Sense of comfort and status

Maternity & Newborn

• Editorial style photography • Unique finishes • Pixel-perfect quality • Styled newborn • Guidance on theme / wardrobe • Hand-picked props and accessories

• Capture and preserve moments • Document family history • Artwork for the home • Relaxed and fun process • Sense of comfort and status

Family & Children

• Editorial style photography • Unique finishes • Pixel-perfect quality • Guidance on theme / wardrobe

• Capture and preserve moments • Document family history • Artwork for the home • Creative and fun process • Sense of comfort and status

Photography Programs

• Editorial style photography • Unique finishes • Pixel-perfect quality • Styled session • Guidance on theme / wardrobe • Hand-picked props and accessories • Promotional Rate

• Capture and preserve moments • Document family history • Artwork for the home • Market business • Creative and fun process • Sense of comfort and status

4 MARKETING PLAN

4.1 INDUSTRY The Photography industry offers a range of photographic services, from commercial and portrait photography to weddings and other special occasions. The major products and services in this industry are commercial / technical photography, personal and group portraits, and weddings/holidays. As shown below in the Industry at a Glance1, consumer spending and corporate advertising budgets drove growth for the photography industry in the five years to 2015. In 2015 alone, there was a 2.9% boost as total US advertising expenditure grew 3.5% to total $297.9 billion during the year.

Figure 1. Industry At A Glance

1 IBISWorld. 2015. Industry Report 54192: Photography in the US.

Higher disposable incomes are expected to boost consumer spending on professional photography services

Mainstream adoption of inexpensive digital cameras, smartphones and easy-to use photofinishing software packages have drastically changed the structure of the Photography industry in recent years. Digital photography has lowered barriers to entry for this industry, which has created a major influx of independent photographers, accounting for over 90% of all operators. While developments in digital photography technology have substantially lowered production costs for most operators, it has also led to market saturation. The development of higher-quality, less-expensive digital photo equipment has increased the threat of self-photography. Cost-conscious consumers have sought to save money by resorting to taking self-portraits with their personal cameras or smartphones. Despite these trends, the industry is learning to adapt by increasing its value-added services. Over the next five years, lower disposable incomes will likely reduce consumer spending on professional photography services. Moreover, overall decline in the economy over the next five years will result in businesses decreasing advertising and marketing budgets, which will also reduce demand for commercial photography services. IBISWorld anticipates industry revenue to decline at an average annual rate of 1.3% to $10.8 billion in the five years to 2020 from 2.2% in 2010-2015. The era of powerful, yet highly accessible personal digital cameras has forced photographers to go beyond simply taking pictures to stay relevant. As further advances in digital consumer technology increase the household penetration of inexpensive digital cameras, smartphones and other personal photographic equipment, consumers have become more discerning of conventional portrait services and more mindful of studio costs. In response to dwindling sales, many professional photographers have broadened their offerings to include photo editing work and other value-added products to attract consumers. Such products include personalized albums, canvasses, which stand out from generic products that can easily be replicated at home. Broader adoption of these products has also provided an avenue for greater creativity within the industry as a whole. As industry participants seek to add value to their services, some photographers are also leveraging online social networks, such as Flickr and Instagram, to share photos of clients with their friends and families. Other photographers are focusing on niche markets and products, such as offering professional portraits that can be used as profile pictures for LinkedIn or Facebook. Smaller commercial photographers are increasingly helping local businesses market their brands more effectively. Client recommendations via online services such as Yelp or Facebook, online photo sharing and a strong presence on social media are increasingly becoming key success factors for smaller establishments. Smaller industry participants will likely tap into niche markets to remain profitable. As a result, specialization will distinguish these players from other amateur digital photographers. In the highly competitive advertising, corporate and fashion markets, operators will need to demonstrate experience, creativity, flair and strong communication skills to succeed. Professional photographers are now expected to leverage the latest imaging and internet technology to capture, edit and sell their photographs in an increasingly technologically driven economy. IBISWorld expects better integration of digital photographic equipment to lower operating costs for industry players, while stronger demand for premium portrait services will boost profit margins in the five years to 2020. Key External Drivers Number of mobile internet connections Since smartphones comprise the vast majority of consumer devices that require a monthly data plan, the number of mobile internet connections is a good proxy for overall smartphone penetration in US households. Almost all smartphones sold today have built-in, high-quality cameras with enough

Higher competition and self- photography have cut into industry profit margins and lowered barriers to entry

features to allow consumers to capture professional-like photographs on their own. In the past decade, mainstream adoption of inexpensive digital cameras and smartphones has consistently lowered demand for professional studios and purchases of conventional photography services. The number of mobile internet connections is expected to grow in 2015, presenting a potential threat to the industry. Per capita disposable income The Photography industry is particularly sensitive to fluctuations in disposable income because its services are discretionary rather than necessary. Therefore, a dip in disposable income limits the number of people who purchase professional photography services. Per capita disposable income is expected to begin slowly decreasing in 2016, representing a potential decline for the industry. Total advertising expenditure Revenue from commercial photography comes from photo shoots for advertisements or other marketing materials. Commercial photographs appear on billboards, corporate websites and in magazines, textbooks and other print media. Consequently, increased spending on advertising raises demand for commercial photographers, which generate over one-fifth of industry revenue. Total advertising expenditure is expected to decline in 2016. Number of K-12 students School photographs are a major market for portrait photographers. Changes in enrollment trends, including retention rates, influence demand for industry services. While private schools generally pay more for photographic services per student, public school systems account for the vast majority of all American students. In general, the more students enrolled in school, the more revenue photographers can expect to earn from school portraits. The number of K-12 students is expected to slowly increase in 2015. Marriage rate Wedding photography and video services are expected to account for a significant portion of industry revenue in 2015. Therefore, a rise in the marriage rate is beneficial to the industry as demand for wedding photography services increases. Conversely, a declining marriage rate will likely result in low demand for wedding photography. The marriage rate is expected to decline in 2015.

4.2 CUSTOMERS NEPD is based in Denver and available worldwide. We serve Boulder, as well as surrounding areas along the Colorado front range. Denver is a metropolitan region with over 669,000 in population2. Similar to other geographic areas in Colorado, Denver’s population is growing exponentially. The location lends itself to current trends in photography, such as more outdoor, onsite sessions. The median age of Denver’s population is 34 with the two highest age groups being 25-34 (21.7%) and 0- 14 (18.5%). The median household income of Denver is $50,473 with a race distribution of 70% white, 10% black, and 11% other. With attractions such as the Red Rocks Amphitheatre and the great

2 US Census. (2010). Demographics Now. SIC Codes – 72210000: Photographic studios, portrait;

72219901: Home Photographer; 72219902: Still Photographer

Photography industry is particularly sensitive to fluctuations in disposable

income because its services are discretionary rather than necessary

national parks, clients have a wide variety of choices when it comes to selecting a unique and beautiful place in which to have their photographs taken. As shown in Table 1, our target market consists of middle- and upper-income women with children. Families with children are one of the biggest markets for portraits. Estimates show that this constitutes a significant number of households in the region. In addition, headshots and behind-the- scenes pictures are frequently in demand by budding “creatives” such as bloggers, stylists, and designers. Due to these factors of demographics and growth trends, we see potential in this area. People who pay for portraits are generally status-conscious professionals with a taste for high-quality and creative images. We will target college-educated, female professionals and wives of professionals, because women make the majority of purchasing decisions in these families. This is the population most likely to order professional photos on a regular basis, having both the means and acquired taste for professional quality photographs. They often entertain at home and the photos on their walls need to exhibit quality and good taste. For the purpose of this analysis, customer profiles are segmented into three categories to measure social-economic status:

1. Seasoned Professional

! 40-years of age, senior professionals that are college graduates most likely to have a need for professional portraits for career purposes. They are also most likely to have the means and taste to want professional photos for their families.

2. Junior Professional ! 30-years of age, junior-level professionals with increasing disposable income for luxury

items such as professional photography services but still have a need for professional photos for occasions and milestones on a bi-annual basis.

3. Creative ! Self-motivated entrepreneur (i.e. designer, small business owner, blogger, marketer,

etc.) looking for professional and creative visual content to help establish a consistent brand.

Table 1. Customer Profiles

4.3 COMPETITIVE ADVANTAGE Our competitive edge will always be driven by what we were born to do. As artists, we pride ourselves in delivering quality photos, but it’s our artistic flair that provides a one-of-a-kind style and experience for our clients. At NEPD, we not only serve clients photography needs, but also offer a suite of design services for the aspiring entrepreneur. This component complements our ongoing photography services.

Demographic Characteristics

Creative Junior Professionals Seasoned Professionals

Gender (male, female, both) Both Female Female

Age (range) 20-45 years 30 -39 years 40+

Income level (range) $55-$205,000 $55-$205,000 $65-$206,000

Occupation (blue collar, professional)

designer, stylist, marketer, communications

professional professional

Geographic boundaries (neighborhood, city, etc.)

Denver Metro Area / Suburbs

Denver Metro Area / South & Central Florida

Marital Status Single, Married Single, Married Single, Married Children (none, at home, grown) None, Child at-home None, child at-home

None, child at-home, child grown

Education level High School, Bachelors Bachelors, Masters Bachelors, Masters

Ethnic origin Hispanic / African American / Asian

Hispanic / African American / Asian

Psychographic Characteristics

Where do they shop? (malls, boutiques, city, online)

Instagram, Facebook, online, malls, boutiques

malls, downtown, farmers market, and online

malls, boutiques, downtown, and online

When do they shop? (am, pm, holidays, weekends)

weekends, holidays, weekdays am/pm

Why do they buy? (motivations)

good quality, creative, professional

professional, emotional, memories, family, event

How do they shop? (online) word of mouth, community recommendations, online, Instagram

word of mouth, community recommendations, online, Instagram

What do buyers want and/or expect from your product/service?

Great customer service. High quality images with artistic flaire. Unique style. Guidance on vision / direction.

High quality images with artistic flaire. Preserve beautiful candid moments creatively and professionally. To have fun and be themselves. Great customer service.

4.4 COMPETITIVE ANALYSIS With low entry costs and broad appeal, portrait photography is one of the most diversified and fragmented industries in the United States, with many individual players. The trend among our targeted consumers is toward more digital photography and more sending of digital images on the Internet. As the world becomes more technical, people need more personal support. The competitive environment is divided into several categories: 1. Award-winning photographers

• Luxury photographers who routinely deliver magazine-quality photographs. Their work is highly creative and spontaneous instead of routinely posing shots. They are rare and highly expensive.

2. Quality photographers • Professional-quality photographers who mostly use posed shots. Most of the

competition falls into this category. 3. Value photographers

• Professional-quality photographers who mostly use posed shots. Most of the competition falls into this category.

4. Same-day photographers • Normally priced photo studios that provide lower quality photos on the same day.

The primary and secondary competitors are listed in Table 2 below. NEPD is compared to other quality professional photographers. Rates are also comparable but generally lower than competitors with additional value-added services through enhanced retouching. This pricing reflects our current status in the marketplace and being relatively new to the photography business. Competitors include other portrait photographers in the area such as Galerisa Photography, Alicia Llewin Photography, and Katy Tartakoff. Competitors were identified by assessing their photography style, online presence including their website, social media, and sales volume according to results generated from Demographics Now. Galerisa Photography’s strategy appears to occupy the middle-ground of quality and process where most of the market is likely to be. They have a steady flow of clients in the creative space and generate repeat business from local bloggers, models, and other small businesses. Their sessions include two photographers who help pose, assist, and shoot. This gives them an advantage over other photographers who may need to outsource a second shooter or assistant. Alicia Llewin offers a rustic, nature-inspired style that is lending to natural light and Colorado photography. She is a typical photographer with more staged photographs and wedding packages running from $1,500. She has a strong social media presence and appears to target the same market. Katy Tartakoff is an award- winning photographer highly esteemed in Denver. She was identified as being one of the top earners in total sales volume for the Denver area. Her strategy appears to capture the high-end market, where a magazine look is a luxury that people can afford. She provides studio services and higher-end prices for services/products. Similar to NEP+D, all photographers offer a wide selection of portraits for families, children, models, and businesses. What makes NEP+D unique is the ability to adopt a creative style designed with the client in mind at a middle price range.

Table 2. Competitive Analysis

Primary Competition

Products / Services

Target markets Pricing Strategy

Customer Service Strategy Strength Weakness Opportunities

Galerisa Photography - Denver, Colorado

Photography services - engagement, wedding, architectural, families, newborn, babies; Blog; Albums; Canvas Prints

Families, Women, Models, Business, Weddings, Seniors

90-minute session on-location with two photographers; Single-two person, 2-3 outfit changes = $300; Single family, 1-2 outfit changes = $350 | Canvas Prints; 20x30 = $500; 16x24 = $300 | Albums = $475 - $800

Nurtures existing relationshi ps; offers two photograp hers; Instagram ; Blog

Second shooter

Customer response time

Alicia Llewin Photography - Denver, Colorado

Photography services - engagement, wedding, families, newborn, babies; Blog

Families, Women, Models, Weddings, Seniors

Families, couples, and seniors start at $225; Weddings start at $1,500

Promotio nal services; Instagram ; Blog

Technical command, rustic style

Katy Tartakoff Photography - Denver, Colorado

Photography services - engagement, architectural, families, newborn, babies; Photoart portraits; Framing; Collages; Photo Books; Digital Images; Retouching; Blog

Families, Women, Models

Studio session fee up to 4 = $150 adds location session fee; Photo Art: 5x7 = $100 Framing = $130; 8x10 = $125 Framing $145; Photo Books (20 pages) = $1,500; Digital images 5x7 = $250 (all, no retouching); 8x10 = $350 (all, no retouching)

highly ranked, award- winning

Social media presence

My Business Products / Services

Target markets

Pricing Strategy Customer Service

Strengths Weakness es Opportunities

Strategy

Natalie Elizabeth Photography + Design

Photography services - engagement, architectural, families, newborn, babies

Families, Women, Models, Bloggers, Designers, Businesses

Mini Sessions - 30 mins, on-location $160, 5 images; 60- minute session, on-location $240, 10 images; 90- minute session, on-location $320, 15 images

Responsiv e and profession al; submit client intake questionn aire; pre- consultati on; satisfactio n questionn aire

Vision, creative

Frequency in social media; small portfolio; part-time status; lack consistenc y / system

Partner with photographers as second shooters to gain experience

4.4.1 NICHE In our first year of business, we will provide a broad range of photography services from family and children, couples, lifestyle, and maternity / newborn sessions. Weddings are another potential market that present an opportunity; however, NEPD is currently only available for second shooting services. Upon reflection of the pre-startup year (2016), NEPD has a strong interest in targeting the lifestyle / branding service for entrepreneurs. Our efforts in 2017 will refine this scope further based on experience.

4.5 MARKETING STRATEGY Our strategy is to become an indispensable, recurring expense by developing long-term relationships with clients and taking the initiative to reach them when it's time for new pictures or when they’re celebrating a special milestone. The Couples strategy is to target recently engaged couples in the Denver Metro area soon after they change their status on Facebook to engaged. Couples are teeming with excitement at the announcement of their engagement. By capitalizing on this great news, we set up the foundation for future business in Maternity / Newborn, and Family / Children. Couple sessions will be heavily marketed in the first quarter to reach potential clients prior to wedding season in the summer. The key element of our Maternity / Newborn strategy is to target parents of newborn babies in target neighborhoods soon after they leave the hospital. Parents and other relatives want baby photos several times a year, and this pattern can form the basis of a long-term relationship. We will take the initiative to contact parents to take pictures instead of waiting for them to remember. To reach potential clients for Lifestyle photography services, NEPD will target existing clientele and promote our Referral Program via our email list serv. Referrals will be solicited from clients through specialty advertising to reach their friends and family.

As we roll out our suite of design services in the third quarter, we will develop a digital campaign featuring our upcoming design work. This is a defining time in our business. In this first year, we will complete the start-up phase of the branding and web design services. This includes professional

development and a handful of design projects to begin the development of our design portfolio. To acquire experience in this area, three complementary design projects will be completed. Potential clients include: 1. Mrs. Hazley and Baby – Existing customer 2. Tiny Hearts Academy 3. Glam Shack Miami 4. Allstate Realty Services / Economy Carpet Cleaning 5. New Business in Denver Metro Area

4.5.1 BRANDING / MESSAGING At our core, we are adventure-lovin’, storytelling artists who articulate our clients’ ideas and vision through photography + design. We are modern minimalists who believe in the beauty of simplicity and adopt clean and crisp designs. This authentic, creativity-driven company channels wanderlust and the wild by embracing nature’s design in everything we do. Expect to see wooden textures, lush green landscapes, and palettes of cloudy-neutrals throughout all our imagery and branding. Driven by a desire to share our journey with the world, we aim to create, inspire, and educate our community of followers. We want potential clients to jive with our down-to-earth persona and trust that they will have a professional and fun experience working with us. We thrive on customer satisfaction which translates to repeat business and good word of mouth. Our strategy maintains consistent use of sterling customer service techniques including the following: 1. Responsiveness & Consistency – Responding to clients in a prompt and courteous manner leaves

the best impression and makes them feel appreciated. To provide consistency for clients when

inquiring and booking services, a business management application, 17 Hats, will be used to

administer quotes, invoices, and deliver contracts.

2. Enlist Support – It takes a village to get things done. This year, NEPD will enlist third-part services to help streamline the client workflow. For example, post-processing services will help with the

culling and editing process.

3. Customer Feedback – Any form of feedback helps us improve and grow. We want our clients to feel heard and valued at NEPD so we’ve developed a follow-up system that surveys clients after

services are rendered. The survey is a brief questionnaire with two questions:

1) Would you recommend us? Rank 1 – 10.

2) We welcome your feedback. Please let us know how we did and anything else you’d

like to share.

4. Market Customer Strategy – We are proud of our commitment to customer satisfaction and make sure it is a well-known fact about our operations. Promoting devotion to customer

satisfaction through the company website, email, and social media further communicates our

priority of a strong customer service strategy.

5. Reward Amazing Clients - At NEPD, we recognize a referral is the highest honor a business could receive. Our Referral Program rewards clients who spread the love and send clients our way by

offering them $30 credit towards their next session. It’s their confidence and trust in our work

that help us grow.

4.5.2 POSITIONING We help connect brands and people to their audience in an emotional and thought-provoking way by capturing their story with captivating images / design – one that people keep talking about.

4.5.3 PROMOTION Our promotional campaigns are designed for each season and include the following for 2017: 1. First Quarter – Spring:

a. Customer Appreciation series b. Photography Programs Campaign c. Engagement series for upcoming wedding season d. Photography Service Guide – Family, Maternity & Newborn e. Local Business Photography

2. Second Quarter - Summer: a. Website revamp b. Local Business Photography c. Senior Portraits – Sunflower field d. Wedding collaboration / fair

3. Third Quarter - Fall: a. Google Ads (CPC) b. Make Fall Memories series c. Holiday Promo – Free Greeting Card d. Networking

4. Fourth Quarter –Winter: a. Travel Schedule b. Charity Session for Kids c. Customer Appreciation Giveaway

5. Year-Round: a. Birthday month promotions b. Anniversary promotions

WEBSITE / BLOG The aim of all our online marketing activities is to drive people to the NEPD website. This is the centerpiece of our marketing efforts and the hub of our operations where viewers can learn more about our work, services, and promotions. Within the site is a gallery of our favorite work and a blog that serves as a resource and source of inspiration to others. The blog channels all things creative and helps us better connect to our audience.

Currently the website uses a SquareSpace platform; however, in April 2017, the website and branding will be revamped to Wix.

SOCIAL MEDIA The social media strategy will guide NEPD in our online activities. Based on the market research conducted, NEPD’s target market can be found on three primary social media platforms including Instagram, Facebook, and Pinterest. Below are the social goals as they align with our business goals.

Aligning Goals Business Goals Social Goals

Brand Awareness Reach Thought Leadership Blog Consumption Word of Mouth Shares, Pins Leads Actions Sales Conversion

Pre-Startup Audit

Goals Instagram Facebook Pinterest Current Goal Current Goal Current Goal Reach 278 3,000 386 1,000 9 1,000

ADVERTISING NEPD will leverage social media to maximize free advertising using a content strategy that inspires, informs, and entertains. We will combine email campaigns, blogging, website specials, networking, public speaking, wedding fairs, and collaboration projects to increase exposure and generate revenue. Advertising dollars will be limited to FaceBook / Instagram and Google Ads. It will be applied during promotions to boost key messages and specials. Google Ads will be explored in the second quarter.

PUBLIC RELATIONS With a mission to sharing our art with the world, NEPD will seek opportunities for speaking engagements at local groups and organizations, i.e. Mi Casa. We will write blogs with how-to tips and circulate announcements / press releases for major milestones like the website relaunch in April. We will also provide pro-bono photography services to a local charity and share our experience on social media and with a blog post. Being published on a featured blog or major publication will help boost the brand and give us exposure for future business. One of our long-time friends and clients is a blogger. Collaboration with local bloggers will be sought to increase opportunities for guest blogging.

WORD OF MOUTH Initially we will get the word out by promoting the Referral Program to our listserv. This will be accompanied by a series of social media posts for Client Appreciation. We will then employ conventional advertising. We have a targeted marketing effort to our list serve with promotional packages.

4.5.4 PRICING NEPD offers a number of packages that create the perfect piece of art specifically made for each client. This can include museum grade wall art, a coffee table / heirloom album, and digital images that they can preserve for a lifetime. Our prices for our photography services are comparable to the competitors noted previously for our first year. Customers appear to be price-conscious and we do not want to price our services too high as we enter the market. All Photography Programs offer a promotional rate that would otherwise be unavailable. This method is designed to provide clients with a discounted rate in return for more business throughout the year. With high-resolution images, we provide clients with our professional lab. This printer is a pro-level lab that will match the color calibration information in the files and properly print the images. Their prices are competitive with other consumer labs and they ship right to your front door. All sessions are on-location and include a 15-minute pre-session consultation, guidance on location and wardrobe choices, the portrait session, professional post-processing of images, and an online gallery. Below are the prices for 2017. It should be noted that Maternity, Family, Lifestyle, and Children sessions are determined by the length of time for the session.

Service Price

30-minute session $200 60-minute session $325 90-minute session $400 Newborn – 2 hour $450 Newborn – 3 hour $500 Little Explorers Program

Package 1 $325 Package 2 $425 Package 3 $525 Branding Program Package 1 $525 Package 2 $925 Package 3 $1,400 Carpe Diem Program Package 1 $325 Package 2 $525 Package 3 $750

4.5.5 TRACKING & COMMUNICATION Staying in touch with our existing and prospective clients is a critical component of our marketing efforts. To guide our marketing efforts, a marketing calendar will be maintained with all activities and promotions throughout the year for our blog, social media, and website. To help automate and streamline our client workflow process, 17 Hats will be used to initiate correspondence with clients. This includes a “Thank you for your interest” email with links to schedule a pre-consultation using Calendly, a scheduling application. 17 Hats will also be used to administer customer satisfaction surveys after services are complete and products are delivered.

We currently utilize Mail Chimp to administer email campaigns and keep track our progress. Our website is also optimized to record contact information for customer inquiries received using Mail Chimp. Performance measures were established to evaluate the effectiveness of our online marketing efforts. Website traffic will be analyzed using Google Analytics. Each month an audit will be performed to evaluate the progress of our digital marketing including social media, subscription list, and website. The following performance measures will be measured and evaluated:

Business Goals Social Goals Brand Awareness Reach Thought Leadership Blog Consumption Word of Mouth Shares, Pins Leads Actions Sales Conversion

5 OPERATIONAL PLAN

5.1 LEGAL ENVIRONMENT Depending on the photo shoot location, NEPD may be required to obtain a permit with permission to conduct photography business.

6 MANAGEMENT & OPERATIONS

6.1 OWNER BACKGROUND Natalie Suner is owner and lead photographer / designer of NEPD. With over eight years’ experience, Natalie brings a breadth of knowledge in photography, design, and branding. She is a communicator by trade, with a Master’s in Urban Planning from Florida State University where she first began her photography journey. She’s worked in a number of capacities from marketing, management to planning and business development. Together, this experience has come together to bring NEPD to life.

6.2 PROFESSIONAL & ADVISORY SUPPORT It takes a village to run a successful business. And we believe we are only as great as the people behind us. To help us grow, we rely on the following team as our support system.

Role Name Advisory Andres Suner Advisory Britney Canidate Consultant Mi Casa Accountant Accountability Partner Leah Hazley Photography Partner Ashley Waldron

6.3 RISK MANAGEMENT STRATEGIES The Risk Management Plan is a conceptual framework that guides risk management as it pertains to payment, operational, and technical risks. Below is an overview of potential risks and solutions.

Risk Potential Solution Client Late Payment 1. Payment Policy – Require 50% of session

amount for booking service. Collect 25% day of service and remaining 25% upon completion.

2. Invoice System – 17 Hats will automatically issue late payment reminders.

Theft or loss of equipment including camera, laptop, and hard drive

Establish a redundant system for storage including an external hard dive and cloud- based service.

Client gets injured during session Obtain general liability insurance Client requests refund Develop contract to establish expectations

7 FINANCIAL PLAN

7.1 FUNDING SOURCES A seed-investment by the owner, Natalie Suner will be provided to fund start-up costs. As shown in the Cash-Flow Projections below, the first year of business will grow slowly. We assume a stable economy with reasonable growth and a steady rise in disposable spending. We also assume that our marketing efforts will generate sales. After year one, our approach is to make a change in what we charge for photography, because of bringing in repeat business as well as new business including design services.

7.2 STARTUP EXPENSES & CAPITALIZATION The start-up requirements for NEPD include capital purchases such as a professional camera, and laptop with editing software. These are the most expensive items of the pre-startup budget. Licenses for photography and management applications were also purchased for the year. Marketing expenses include minimal advertising costs and initial costs to setup the company website. Business registration, professional development, and other expenses including general office supplies and equipment makeup the initial costs of the business.

7.3 PROJECTED CASH FLOW As shown below, there are four revenue streams from photography services. Sales projections are conservative and driven solely by marketing activities. Reoccurring expenses include telephone and license fees for photography editing software. Accounting services will be employed to complete 2016 taxes in April and general consultation meetings following in October. To kick-off design services, a professional development workshop will be attended in April making it the highest business expense anticipated. Based on expenses for year one, a 25% reserve was applied to “pad” the budget.