Executive Summary
TotalArt is an art packaging installation company that has a focus on serving corporate clients specifically. Beyond just corporations, TotalArt has had the privilege of working with dozens of art studios, museums, and artists. These collaborations have helped us establish ourselves as an authority in the market and have translated into hundreds and thousands of dollars in sales.
Our skilled management team has also made significant contributions to the overall success of TotalArt. Their experience and sheer passion in the industry have helped instill unwavering commitment on all levels of the business. For instance, since we recruited our highly talented marketing manager our social media following has grown by a staggering 137%. Not to mention our sharp increase in engagement.
The art packaging installation industry is still relatively small in comparison to other art-related businesses such as art supply stores, galleries, and photographers. However, this means there is far less competition in the market. This has presented an opportunity for us to gain a strong position in the market.
Our competitive analysis suggests that there are only two other art packaging installation businesses in Denver that are as skilled and experienced as we are. We also package and install various areas of expression. Sculptures, paintings, ceramics, and even entire vehicles all form part of our forte. Beyond that, we make use of art packaging methods such as the mailing tube, flat packaging, and archival bags.
Quite frankly, we can achieve anything when it comes to installation and packaging.
Our sales forecasts suggest that we'll generate at least $270,000 over the next financial year. This indicates a 4% growth since the previous year.
An investment of $300,000 will allow us to make sizable investments in our marketing, ultimately putting us in the position to become the most influential art packaging installation in all of Colorado.
TotalArt is seeking $80,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Gross margin | 73% | 73% | 73% |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Company Overview
TotalArt is a art installation & packaging services founded by Jean-Pierre Fontaine, operating as a LLC. Headquartered in New York, New York, USA, TotalArt was established to serve the growing demand for specialist services in this sector.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, acquire initial client base, achieve operational break-even |
| Year 2 | Expand service offering, grow revenue by 50%, hire additional staff |
| Year 3 | Establish market position, target new geographic or demographic segments |
TotalArt is an art packaging installation business founded by Lucy Richmond and Kelly Gordon. The company is registered as an LLC in the state of Colorado.
Lucy and Kelly both attended The Rocky College of Art and Design in Lakewood, Colorado. This is where their passion for art was nurtured and refined. They had a lightbulb moment once they struggled to find quality art packaging installation businesses in the area.
TotalArt was born through this gap in the market. The company’s main goal is to provide services to artists and related establishments internationally.
Our core values lie in the quality of installations, ultimately adding a new dimension to our client’s artworks. In terms of packaging, we intend to develop more innovative solutions as technological advances come about.
The company currently has assets worth $450,000 and liabilities of $98,000.
Market & Customer Analysis
The art packaging installation market is more vibrant in some of the art capitals of the world such as Chicago, New York, San Francisco, and Los Angeles. Denver, Colorado is quite simply not known for having a particularly vibrant art scene.
One wouldn't be particularly guilty for considering this as a threat. However, we saw this as an opportunity to monopolize the region of Denver, and our optimism has paid off. Our historical data suggests that there are over 60,000 artists in Denver who specialize in different disciplines.
This, along with the steady increase in undergraduates who are taking art-related majors has indicated that Colorado has an art market that is on the rise.
For instance, there are over 6,800 students at the College of Liberal Arts alone.
Given this data, we estimate that the market will grow by at least 11% YoY. This will translate to at least 2,4% growth for TotalArt given our ambitions to invest in marketing and sales activities.
We expect a surge in competitors as the market continues to expand and Colorado becomes a recognizable presence in the industry.
Customer analysis:
Art knows no age, we package and install art for elementary students all the way to artists if 80 years old. Our target market lived in and around Colorado, but our reputation has allowed us to reach artists out of state as well. We've worked with international artists as far out as Egypt.
Our customers usually have a median household income of at least $12,000. These individuals transact regularly given that we’re one of the most affordable art packaging installation companies in the country.
Hearing from our customers has also allowed us to provide quality service. Feedback is a crucial aspect of our business. Allowing customers to let us know how happy they are with our services has helped put us ahead of the competition.
We have a relatively high rate of customer retention. They trust that their artworks will be installed professionally and that they'll be packaged safely. Our most loyal customers are full-time artists who depend on their craft to pay the bills.
Demographically, these are individuals who are over 25 years old.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Crozier Fine Arts | Established brand, wide reach | Higher price point, less personalised |
| Artex Fine Art Services | Strong marketing, national presence | Generic offering, less specialist focus |
| MoMA Design Studio | Competitive pricing | Lower service quality, limited expertise |
Art Installation & Packaging Services's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
We've developed a comprehensive sales plan to ensure that we meet our revenue goals. By ensuring that we have a budget in place to reach out to clients and convert them, we’ve increased our sales performance by 17%.
We've also introduced promotions for first-time clients to attract artists that we haven't worked with before. Offering a 20% discount has resulted in us working with 244 customers since we first started our promotions.
Our professionalism has been our best sales strategy. We have no direct competitors in the Denver region, and very few in all of Colorado. We receive many referrals from handymen who have a large network of clients who look to them to hang and install their artworks, simply because we're good at what we do.
Our experience in the industry has led to us building relationships with various individuals who deal with art in one way or another.
We predict that the art market will experience a boom over the next 4 years. We've forecasted that we'll generate profits in excess of $450,000 over a two-year period.
Additional marketing notes:
The main aim of our marketing strategy is to enhance our brand visibility whilst leveraging our strong reputation by implementing a referral system that compensates our network. This will help promote our business whilst bolstering sales.
Social media has always been a useful tool for TotalArt. For this reason, we've invested 65% of our marketing budget in social media ads over the last 4 years. We've also hired a talented social media manager whose prime responsibility is to ensure that we have top-class content and an engaged follower base.
We also advertise TotalArt in The Denver Post and Daily Camera, which are arguably the most popular newspapers in Denver. This has helped us become an authority in the region.
To help cultivate the art industry we also host art classes for middle school students. The communities we host classes in are highly appreciative of our initiative, which has been beneficial for our public relations.
Operating Plan
Personnel Role Task Thomas Riley Sales Agent
- Working closely with our sales manager to reach our sales goals
- Building relationships with the relevant parties to ensure they become long-term partners and customers Matthew Connors Packager
- Safe packaging of artworks with consideration of transportation requirements Jennifer Graham Art Handler
- Overseeing the journeying of artworks with the utmost care Peter Rogers Installation Specialist
- Placing our clients’ artworks in a safe and visually appealing way with consideration of the environment they're being installed in Felicity Brown Customer Service Rep
- Dealing with all sorts of customer inquiries and complaints Amy Bruce Admin Assistant
- Responsible for the safe placement and organization of all workplace documents
Management Team
We have a robust and reliable management team that has contributed significantly to our business success. We've put great consideration into our salary budget which has resulted in our executive staff members playing several different roles when the need arises.
Lucy Richmond, CEO
Lucy Richmond’s vision and sheer passion for the arts have provided our business with its stability and sustainable growth. As a co-founder of the business, she's devoted herself to the business and has learned a new set of skills such as recruitment and operations.
For this reason, we have no need for an HR or Operations Manager.
Kelly Gordon, CMO
Kelly Gordon is in charge of directing our marketing efforts. She's proven to be prolific in promoting our business and building a strong and authentic brand identity. As a fellow co-founder of TotalArt, she's also highly invested in the business and has made significant contributions to the company.
Liam Brighton, CFO
Liam is a highly decorated financial officer. Having studied at UCLA and being mentioned in Sentinel Colorado as one of the state’s leading bookkeepers at the tender age of 22, it's safe to say that we have one of the best number crunchers around. Liam also has an interest in the visual arts and graphics design. However, he's far better with his calculator than he is with his paintbrush.
Giovanni Carragher, Sales Manager
Giovanni ensures that our sales strategies are executed and that we meet our sales quotas. What's special about him is his ability to train our sales agents and keep them motivated regardless of the circumstances. Since joining our team, our sales have increased by over 20%. This is a testament to his contributions to TotalArt.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $90,000 $170,000 $300,000 Direct Cost of Sales $20,500 $30,000 $82,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $20,500 $30,000 $82,000 Gross Margin $69,500 $140,000 $218,000 Gross Margin % 77% 82% 73% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $20,000 $40,000 $40,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $21,300 $41,500 $41,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $1,000 $1,000 $1,000 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $2,000 $2,000 $2,000 Software Purchases $0 $15,000 $0 Insurance $2,000 $2,000 $2,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $400 $400 $400 Miscellaneous $0 $0 $0 Payroll Taxes $500 $1,200 $3,000 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $28,400 $64,350 $111,150 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $28,400 $64,350 $111,150 Profit Before Interest and Taxes $19,800 $102,840 $225,410 EBITDA $19,800 $103,860 $226,430 Interest Expense $800 $3,632 $2,957 Taxes Incurred $0 $24,802 $56,540 Net Profit $19,000 $34,150 $65,350 Net Profit/Sales 21% 20% 22%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $90,000 $170,000 $300,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $90,000 $170,000 $300,00 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $20,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $110,000 $170,000 $300,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $48,900 $94,350 $111,150 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $800 $0 $0 Principal Repayment of Current Borrowing $10,000 $10,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $59,700 $104,350 $193,150 Net Cash Flow $50,300 $65,650 $106,850 Cash Balance $19,000 $34,150 $65,350 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $90,000 $170,000 $300,000 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $90,000 $170,000 $300,000 Long-term Assets $10,000 $9,000 $8,000 Accumulated Depreciation $1,000 $1,000 $1,000 Total Long-term Assets ($1,000) ($1,000) ($1,000) Total Assets $100,000 $179,000 $308,00 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $20,000 $10,000 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $20,000 $10,000 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $20,000 $10,000 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings ($20,000) ($30,000) $41,000 Earnings ($12,000) $44,000 $160,000 Total Capital ($2,000) $44,000 $231,000 Total Liabilities and Capital $18,000 $54,000 $231,000 Net Worth $80,000 $169,00 $308,000
Wrapping up the Art Packaging Installation Business Plan You don't have to know how to draw or paint to make a killing in the art industry. Having the ability to safely package, transport, and install art is an invaluable service for artists.
Writing a business plan is a crucial part of growing a successful business. However, you'll still need to put a significant amount of effort into the implementation of your strategy.
You'll also need to revisit your business plan regardless of the level of success you and your team are able to attain.
Now that you have a clear picture of how to write your art packaging installation business plan, it's time to put things in motion. If you feel like you could use a little extra guidance to help you on your way, our business plan pros are on hand to make this process even easier.
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Direct labour and contractor costs | $86,400 | $151,200 | $237,600 |
| Gross profit | $233,600 | $408,800 | $642,400 |
| Gross margin | 73% | 73% | 73% |
| Salaries and wages | $102,400 | $179,200 | $281,600 |
| Marketing and advertising | $35,200 | $61,600 | $96,800 |
| Rent and utilities | $24,000 | $24,000 | $25,200 |
| Other operating costs | $19,200 | $28,000 | $35,200 |
| Total operating expenses | $180,800 | $292,800 | $438,800 |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Break-even analysis:
- Estimated monthly fixed costs: $15,100
- Monthly revenue required to break even: $20,600
- Break-even is projected to be reached within the first 12–18 months of trading.