Business Plan & Design Concept For~ design studio modus 1 ..
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Business plan for Interior Design Studio - BizzBee Solutions
While assumptions can be made on how many units you plan to sell based on the size of your target market and your distribution plan, estimating what it will take to get the project done is that part of the financials that tend to get a lot of scrutiny. If the numbers are too low, they will be considered unrealistic. If the numbers are too high, the project will have a much higher break-even rate (when the retail price minus marketing, distribution and manufacturing costs surpass the initial investment).
The hard part about estimating the cash flow for any new media business is that there is often a development period during which there will be no real inflow of income and a lot of outflow of cash for start-up expenses. I recommend concentrating on determining what the costs will be as accurately and as detailed as you can. For the financial section you will need to track these expenditures month by month for the duration of the project. Most gaming projects are averaging an 18 month production cycle. The questions you should answer include: Will you be leasing office space in the third month? Will you need to hire programmers (how many and what month will the start expecting a paycheck)? Will you keep them on as employees or will you let them go after a few months as freelancers? Will you use live action? How much are unknown actors charging these days?
You may or may not have a lot of overhead, but don't forget to anticipate that if you are bringing in a crew of programmers and designers, you'll probably need an office or a studio in which to house them. Even if you plan to have everyone meet at your house for staff meetings and work together via email, you'll want to be frank about that in your business plan and explain to your investor how that will work and what the benefits are (huge cost savings and reduced staff costs since everyone will remain freelance, etc.) These cost estimates will be based on the project schedule and launch date, cross-checked with budgets of similar productions (find that data in your research).
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