There is quite a bit of information available on business planning, but as we illustrators know all to well, the illustration business, is by it’s very nature is different than most other businesses. For one thing, it is neither a service business, nor is it a product providing business, it is both. So right off the bat, business models that only work exclusively for either services or products, which are most of them, are not a good fit for an illustration business.
|© 2000 Don Arday.
Do You Need a Business Plan?
|© 2000 Don Arday.
The Strategic Plan Objective
The Start-Up Plan Objective
Illustration Business Plan Outline
3. Mission Statement
4. Key Advantages
5. Company Synopsis
6. Illustration Pricing Structure
7. Marketing Strategy
Often overlooked, plans for encouraging client referrals, leveraging networking relationships, and capitalizing on reputation/acknowledgements should be stated.
The internet provides many opportunities for gratis promotion such as a free Facebook page, Google+ page, Twitter account, Linkedin page, Pinterest account, free blog page, membership in online groups, free portfolio sites such as Deviantart, etc.; and more and more new free promotional opportunities are constantly coming available. This continuous change makes gratis promotion somewhat less defined than purchased promotion.
Targets equate to your intended customer base. It may be one or more specialized markets like publishing or a segment of a market like nature publications; a specific category of work like children’s book illustration; a defined location like the New York city area; a list of specifically sought after clients.
8. Finances8a. Breakeven Estimation
A breakeven estimation identifies the actual operating costs of a business for the purpose of knowing when earnings represent actual profit.
8b. Pro Forma Estimation
If it is necessary to go into detail on the financial aspects of your illustration business, say to secure a loan, you may want to prepare “pro forma” statements for cash flow and profit and loss. A pro forma is a financial statement based on financial assumption or prediction, it can also reflect a financial development that will occur in the future, or has come into effect from the past. An example might be an expected tax break that will occur at reporting time.