1.0 Executive Summary
Deutsch Graphic Design Group LLC (“the Company”) was founded by Matthew Deutsch with the intention of providing outstanding graphical design and digital asset development for clients on a nationwide basis. The Company is based in Doylestown, Pennsylvania. Revenue generating operations are expected to commence in the first quarter of next year. At this time, the company is seeking a $75,000 line of credit in order to launch operations.
Operations
Through Matthew Deutsch’s expertise and that of the staff of graphic designers that the Founder will hire, the business will provide a wide range of graphic design services specific to meet the needs of any business. The Company will typically generate its revenues on a per project basis. Each engagement is expected to produce $500 to $5,000 of revenue.
The Company will have the capability to provide logo design, brochure design, advertising design, as well as digital asset development. Ultimately, Deutsch Graphic Design Group is being poised to operate as an end-to-end solutions provider for any entity’s graphic design needs.
The third section of this graphic design business plan will discuss the operations of the business.
The Financing
The $75,000 of capital sought in this document, via a revolving credit facility, will allow the business to properly establish it operations. Matthew Deutsch will contribute $25,000 towards adventure. The Company will principally use these funds for the following:
• Location development in Doylestown
• Graphic design hardware and software
• General working capital
Given the highly predictable streams of revenue that will be produced from graphic design engagements, the Company may seek ongoing expansions of its credit line as it grows. This will allow for a greater degree of expanded marketing while onboarding graphic designers that have specialized expertise.
The Future
The Company will continually integrate new services into its operations. This will include in integration of video-based services that will be principally developed using Adobe Premiere and Adobe After Effects. This will further ensure that the business can provide comprehensive graphic design solutions to its clients.
Market Overview
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
The funding discussed in the executive summary will be used for the following:
2.2 Management and Investor Equity
Matthew Deutsch is the 100% owner of Deutsch Graphic Design Group LLC.
2.3 Exit Strategies
Graphic design businesses enjoy a moderate price of earnings multiple given that they produce substantial contribution margins from each engagement. Generally, these businesses can receive a sales premium of two times the prior year’s earnings. In the event that it is financially prudent to do so, Matthew Deutsch will coordinate with a qualified business sales professional to market Deutsch Graphic Design Group to either an existing graphic design firm that is looking to expand through acquisition or to an entrepreneur that is looking to enter this market.
3.0 Operations
As noted in the executive summary, the Company will provide and to end graphic design solutions for its clients. This will spam the following services:
• Brochure Design
• CSS Layouts
• Digital Asset Development
• Logo Design
• Video Introductions
As it relates to project pricing, the company will have a target per hour fee of $75. In order to ensure that clients are onboarded quickly, the Company will then apply this per hour metric into the anticipated amount of time that will take to complete the project. As clients prefer to understand the total cost upfront rather than on a per hour basis, this will streamline the sales operations of the business.
In order to ensure that the business provides only exceptional graphic design and digital asset development, the business will use computers outfitted with modern graphic processing units. As shown in the second section of the document, a significant portion of the capital required to establish Deutsch Graphic Design Group will be used for the acquisition of graphic design technology assets.
The Company will make ongoing reinvestment into its operations, especially as a integrates video-based services into its operations.
4.0 Overview of the Organization
4.1 Registered Name
Deutsch Graphic Design Group LLC. The business is registered as a limited liability company in the Commonwealth of Pennsylvania.
4.2 Commencement of Operations
Revenue generating operations will commence in the first quarter of next year.
4.3 Mission Statement
To provide comprehensive graphic design solutions on a cost-effective basis for clients throughout the United States.
4.4 Vision Statement
To become a highly regarded and well noted graphic design firm.
4.5 Organizational Objectives
• Hire highly qualified graphic designers that have a wide range of expertise across a number of technology platforms.
• Conduct extensive direct outreach with marketing firms and advertising firms that outsource graphic design to Deutsch Graphic Design Group.
• Continue to expand the scope of services offered with a major focus on video based graphic design and digital asset development.
• Implement best practices as it relates to all graphic design operations.
• Ensure that proper fiscal policy is in place to ensure that the Company is able to remain profitable in any economic climate.
• Enroll among numerous professional organizations that will assist in naturally elevating the brand visibility of Deutsch Graphic Design Group.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the graphic design business plan will discuss the industry, the current economic climate, the targeted demographic profile, any ongoing competition at the business will face.
The economic climate within the United States at this time is moderate. Due to changing trade policies as well as other fiscal policy changes, there has been a period of higher-than-expected inflation. This has caused the costs for many businesses to increase over the past twelve months. It should be noted that government agencies are taking appropriate measures to abate the risks associated with inflation.
The demand for graphic design services will typically remain stable, even during challenging economic climates. During these periods, businesses are always looking for unique ways to further position their products and services within their respective market. Additionally, Deutsch Graphic Design Group will produce substantial contribution margins for each engagement, which will further contribute to this stability of the business.
5.2 Industry Analysis
Within the United States, there are 150,000 companies that provide graphic design services and digital asset development. These businesses generate $46 billion of revenue and the industry employees 190,000 people.
One of the major trends within this industry is to operate as a full-service solutions provider as it relates to graphic design as well as marketing support services. This has included many graphic design firms in integrating video production as well as search engine optimization specific for branded digital media assets. Deutsch Graphic Design Group will capitalize on these trends of the life of the business.
5.3 Customer Profile
The Company will target the following demographics:
• Annual revenues ranging from $250,000 to $1,000,000+
• Will spend $500 to $5,000 per engagement
• Principally operate as a consumer facing business that requires high quality digital assets and graphic design on an ongoing basis
5.4 Competitive Analysis
As there are 150,000 graphic design companies in the United States, the business will face substantial competition as a establishes its operations. Deutsch Graphic Design Group will maintain a major differentiating factor by being able to offer graphic design services across the entire spectrum, including print design and digital media asset development. The business will maintain a highly streamlined operating infrastructure to ensure that the Company is able to remain pricing competitive at all times.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Deutsch Graphic Design Group will have sustainable operations as a result of the following:
• A highly experienced Founder, Matthew Deutsch, has more than ten years of experience of a professional graphic designer.
• The ability to provide end-to-end solutions, including video based services.
• The Company will conduct extensive direct outreach with marketing firms and advertising firms that will use Deutsch Graphic Design Group on a subcontracted basis.
• The Company can easily scale its operations where they continued hiring of graphic designers that have a wide range of artistic capabilities.
6.2 Basis of Growth
The Company will expand via the following methods:
• Continued expansion of the Company’s marketing operations as will be discussed in the next section of this document.
• Onboarding of graphic designers that have a specialized expertise, especially as it relates to branded digital media asset development and video production.
• Integration of complementary services related to increasing brand visibility for the Company’s clients.
7.0 Marketing Plan
7.1 Marketing Objectives
• Maintain an expansive online presence that showcases a prior work of Deutsch Graphic Design Group.
• Develop ongoing relationships with more being an advertising firms that will have Deutsch Graphic Design Group develop digital media assets and graphic designs specific for their client’s needs.
• Engage in a wide-ranging public relations firm that will increase brand visibility among the target demographics.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• The business will hire its graphic design team and full operations will commence.
• Revenue will reach $447,000.
Year 2
• The business will onboard additional graphic design experts.
• Total revenue will each $536,000.
Years 3-5
• By Year 5, aggregate revenue will reach $799,000.
• The Company may expand into international markets at this time.
7.4 Marketing Strategies
Matthew Deutsch is a highly experienced graphic design expert that has more than a decade of experience in this industry. During this time, he has developed an extensive portfolio of high impact graphic designs that have been used in a number of noted advertising campaigns. Given his extensive notoriety in the industry, he will be able to leverage his existing relationships as the business establishes its initial operations. On the Company’s website, the platform will showcase the prior work completed by Matthew Deutsch and his associates.
As it relates to the website, this platform will be a visually stunning platform that showcases the graphic design work, digital media assets, and end-to-end graphic design solutions offered by the business. This website will undergo national level search engine optimization so that when specialized graphic design services are sought through search engine queries, the business can be found.
The Company will also maintain an extensive presence on all social media pages. Similar to the Company’s website, these social media pages will feature visually stunning elements that showcase the professional work of Deutsch Graphic Design Group. The establishment of the Company’s social media pages will also assist in social signaling.
Matthew Deutsch and the Company’s staff graphic designers will also participate in numerous industry events in order to further established relationships in this field. Of special importance to these operations, is the direct outreach campaigns that will be undertaken with advertising firms and marketing firms that will outsource specific types of graphic design to Deutsch Graphic Design Group.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• The company will acquire a $75,000 revolving credit facility.
• Management will contribute $25,000 towards the venture.
• Deutsch Graphic Design Group will have a compounded annual growth rate of 16%.
9.2 Financial Highlights
• The business will generate contribution margins of 95%, aggregately.
• The low operating cost of the business will allow for ongoing reinvestment into the expansion of Deutsch Graphic Design Group.
9.3 Sensitivity Analysis
In an incredibly severe economic recession, the demand for new graphic services may decline slightly as there will be less demand among corporate entities. However, many businesses will often expand the scope of their graphic design needs during challenging economic climates in order to have a more wide-ranging marketing campaign. The Company will produce highly recurring revenue from its operation among ongoing clients. This will ensure that the business is able to remain profitable and services underlying obligations.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
Appendix A – SWOT Analysis
Strengths
• Limited competition and graphic design firms that offer the entire scope of services showcased in this document.
• A Founder, Matthew Deutsch, who will be able to directly render services while managing the day-to-day operations of Deutsch Graphic Design Group.
• The Company’s ability to provide video services will provide a major differentiating factor.
• The Company can scale to include other services related to digital asset development and online marketing.
Weaknesses
• This is a highly competitive industry with numerous established entities in the market.
• Moderately high cost related to payroll as the Company is onboarding exceptional graphic designers.
Opportunities
• Integration of advertising focused services, especially as it relates to digital asset development.
• Continued expansion of the Company’s hiring of graphic design, specialists and video production specialists.
• Expansion of the types of services that can be offered through Deutsch Graphic Design Group’s established architecture.
Threats
• Severe economic receptions could impact the demand for graphic design purposes.
• The ongoing issues with inflation could cause the operating cost of the business to increase, especially as it relates to its proprietary marketing campaigns.
Appendix B – Critical Risks
Development Risk – Low
The services that will be offered have already been developed by Matthew Deutsch. The primary matter that needs to be addressed to securing the revolving credit facility discussed this document.
Financing Risk – Low/Moderate
The $75,000 working capital line of credit will allow the business to properly establish it operations to profitability. The risk related to his financing or baited by the margin nature of rendering graphic design services.
Marketing Risk – Low
The Company will use an expand upon the marketing strategies discussed earlier in this document. Most importantly, the Company will leverage Matthew Deutsch’s existing relationships within this industry while concurrently engaging in a wide ranging online focus marketing campaign.
Management Risk – Low
Matthew Deutsch is a highly experience, graphic design, professional that has a complete understanding of all aspects of creating graphic design and digital media assets.
Valuation Risk – Low
The valuation risk is offset by:
• End-to-end graphic design services will allow for the rapid growth of the business.
• The Company can provide its services domestically and internationally.
• Deutsch Graphic Design Group can easily expand revenue through hiring additional graphic designers while concurrently integrating additional services.
Exit Risk – Low
In the event that is necessary to do so, the company will work with numerous business sales professionals in order to sell Deutsch Graphic Design Group to a third-party. This event is not expected to occur for a significant period of time, period based on the financial modeling showcase in this business plan, the business could have a valuation of $700,000 by the fifth year of operation.