Want to start up a graphic design business? Cool! Just hang on just a second, though—before you start, you’re going to need a good graphic design business plan. Why, you ask? Because without a plan, you are sailing the seas without a map—you might get somewhere, but it is not where you wanted to go. Let’s get that business plan sorted out, shall we?.
Understanding the Graphic Design Business Plan
What is a Graphic Design Business Plan?
A graphic design business plan acts as some sort of a roadmap to your business. It outlines what you are trying to achieve, how to execute your plan, and what steps are needed to do it. You can think about it like this: Your business GPS that will get you through those bumpy roads and keep you on track. You’re walking blind if there’s nothing to guide you on what to do.
Why You Need a Graphic Design Business Plan
Imagine taking a trip without knowing the destination; such would be a chaotic situation. It is just about what running a business without a plan does. A graphic design business plan will help you know your market, set up real goals, and plan your finances. It serves as your blueprint to success, showing where you go and exactly how to get there.
Key Components of a Graphic Design Business Plan
So, what goes into this magic document? Here are the main ingredients:
- Executive Summary: This is the snapshot of your business. This will include your mission statement, description of the services you offer, and your goals for the business.
- Market Analysis: This is where you’re going to talk about who your competitors are, who your customers are, and what’s currently happening with the market trends.
- Organization and Management: Explain what type of business structure you will have, who owns it, and who comprises your team.
- Services: List out what kind of graphic design services you’re going to offer. Logos, branding, web design—do you do all, or do you specialize in any of these?
- Marketing Strategy: Well, how are you going to get those customers? It includes your pricing strategy, how you’ll advertise, and what kind of promotions you’ll run.
- Financial Plan: Now, show me the money! This section shall have your start-up costs offset against projected income and expenses.
- Appendix: The appendix is for resumes, permits, legal documents, and the like.
There you go! Now, let’s delve deeper into each section, and nail your graphic design business plan once and for all.
Crafting the Executive Summary
What is an Executive Summary?
The executive summary is the first thing people are going to read, so it really needs to be catchy. This is a brief overview of your entire business plan. It’s similar to the movie trailer that gets people excited about the full feature.
Writing Your Executive Summary
Start off with a bang—say what your business is and why it is different. Add in your mission statement—that is, why does your business exist? Example: “Our mission is to bring stunning and affordable graphic design to small businesses.”
Then, outline all the services you offer. Are you an all-rounder, or do you have niche concentrations in areas like logo design or web graphics? Finally, summarize your business objectives. Where do you see your business in five years? Maybe you have strategies for increasing your number of clients or becoming the top graphic design agency in your area.
Conducting Market Analysis
Why it’s Important to Conduct a Market Analysis
Basically, market analysis is just about knowing your competitors and customers. It is homework done before a big test in any case. Knowing the market allows one to spot opportunities and also avoid potential pitfalls.
Analysing Your Competitors
First, know who your competition is. Go to their websites, social media, and reviews. What services do they offer? How do they market themselves? What do people love about this business, and what are the common complaints?
For example, if you realize that most of the local businesses need affordable branding services but your competitors are very expensive, bingo! There you have it—your gold mine! You can help by giving them competitive rates.
Understand who your customers are. Are you targeting small and medium businesses, startups, or large enterprises? Knowing the target will enable one to adjust services and marketing activities accordingly.
Imagine most of your potential clients are startups and want complete branding packages. That would be your cue to come up with attractive offers: logo design, business card design, website graphics—all in one.
Market Trends
Keep yourself current with recent trends in graphic design. Are any styles or techniques hot? Suppose minimalist design is hot today. Staying current with the trends will help you to keep services fresh and relevant.
Identifying Your Business Entity and Management Structure
Why Organization Matters
Even if you are a one-man or one-woman show, plan for growth. Your business plan must state the business structure and its management team, even if it’s only you initially.
Business Structure
How will your company be structured? Will you operate as a sole proprietorship, partnership, LLC, or corporation? Of course, each has certain advantages and disadvantages. For example, an LLC protects your personal assets better, but it involves more paperwork.
Management Team
If you have a team, this is where you introduce them. Explain their roles and how their skills contribute to your business’s success. If it’s just you, highlight your skills and experiences. Maybe you have a background in fine arts or have worked with big-name clients in the past. Show off those credentials!
Describing Your Graphic Design Services
What Services Will You Offer?
This is where you describe in detail the services you will provide. Will you specialize in just logo design, web design, or social media graphics, or perhaps other areas? Be specific about what you offer.
Service Examples
Let’s say that one of your services will be branding. You can create logos, business cards, letterheads, and social media graphics for clients. You could offer another service, like web design, including website layouts, banners, and icons.
Pricing Your Services
Setting the right prices is tricky. You don’t want to scare off clients with high rates, but you also need to turn a profit. Do some research to decide how much your competitors charge. Consider your costs. If most of the local designers charge $500 for a logo, you can use that as a starting point. Once you have built up your skills and reputation, you will be able to adjust your rates.
Developing Your Marketing Strategy
Attracting Customers
Now, how do you get clients? Your marketing strategy is your game plan. It consists of merely getting your name out to the public and attracting some customers.
Pricing Strategy
When setting your price, make it competitive but not cheap. Offer introductory rates or discounts for first-time clients just to get your foot in the door. Then, when people see how good your work is, they’ll be willing to pay more.
Advertisement and Promotion
Share it to social media. Instagram and Pinterest are perfect for this type of content due to their visual nature. Share your designs, process shots, and testimonials.
You can run ads on social media or Google in order to get more eyeballs on your site. Another idea would be doing free graphic design services for any influencers or bloggers who have a following you would like access to in exchange for a shoutout.
Networking
Don’t sell short the power of good old-fashioned networking. Combining local business events with joining online forums will go far in connecting you with potential clients. After all, word of mouth is still one of the best ways to get business.
Planning Your Finances
Start-Up Costs
Although setting up a graphic design business comes with a few expenses, you really don’t have to break the bank. Essentially, you’ll need a good computer, design software, and a website, maybe. So assume an upfront cost of around $2,000 to $3,000.
Projected Income
Estimate how much you’ll make your first year. Think small. Make some realistic goals. Maybe you want to have 10 clients in the first six months who are paying you $500 each. Voilà, now you have $5,000 to get you started.
Keeping Track of Your Expenses
Add up expenses such as software subscription, marketing, and office supplies. Really try to keep your overhead low, especially in the beginning.
Example: Balancing the Books
Say you generate $10,000 during your first year. You spend $3,000 for start-up costs and $2,000 for marketing and software. That leaves you $5,000 in profit. Not too shabby for your first year, right?
Planning a graphic design business may seem like a lot of work; however, believe me, it’s worth it. It helps you set up a line of success and prepares you to help your business ride those waves. Every successful business ever started with a good plan. So grab that pen or keyboard, and get planning that graphic design empire!
Starting your own graphic design business may be one of the most exciting things you have ever done. Having a detailed plan for your graphic design business will boost your confidence in its ability to help you navigate any bumps that may occur along your journey. So, are you ready to see that passion for design flourish into a business? Let’s do this!
