Lizza Computer Graphics
Business Plan Summary & Excerpt
EXECUTIVE SUMMARY
MISSION STATEMENT
Take advantage of the creativity, design skills and talent of the business owner and leverage the
existing client base, business efficiencies and capital investments to grow the base business of
Lizza Computer Graphics while simultaneously expanding it by adding related products and
services.
STATEMENT OF PURPOSE
Lizza Computer Graphics, Inc., established in 1993 and incorporated in 1999 as an S Corporation,
is a design and production studio that provides computer graphic design, large-format color
printing and digital photographic services to corporations and small to mid-sized businesses in
Northeastern Pennsylvania. The company is seeking growth capital of $550,000 for the design
and construction of a facility that will allow the company to expand its current customer base
and add several new and complementary lines of business:
1. Fine Art Giclees
2. A Professional Art Gallery
3. Museum Archives & Architectural Renderings
4. Large Format Outdoor Signage and Point of Purchase (POP) Advertising
5. Fleet & Truckside Advertising
Three of the new lines of business, fine art giclees, large format outdoor signage and POP
advertising have already been tested with current customers and have received a very positive
response. Funding is required by January of 2003. Repayment of the loan and interest can
begin within 30 days of the receipt. This loan can be secured by company assets.
BUSINESS OVERVIEW
Products & Services
The base business for current services (computer graphics and design, drum scans, large format
color printing, display and event graphics and digital photography) has grown exponentially
every year for the last 7 years. The services being added– fine art giclees, museum archives,
architectural renderings, outdoor signage and fleet and truckside advertising -- are a natural
extension of his current business model.
Opportunity
The price of printing equipment continues to float down as manufacturers cut their margins.
Loan interest rates are at an all time low. Digital technology is exploding and growth in this
market is just beginning. As an early adopter of digital technology, Lizza is uniquely positioned
to cash in on projected digital printing sales of $11.3 billion by the year 2005. All of his
equipment is already digital and product lines can be rolled out immediately. Add the fact that
400,000 artists (24% of all artists in the United States) live in the tri-state region and are
“underserved in rural locations…” and it is clear that Lizza Computer Graphics is positioned for
success in fine art giclees, as well.
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Lizza Computer Graphics
Business Plan Summary & Excerpt
Competitive Analysis
Based on a competitive analysis, several companies in the Northeast and mid-Atlantic regions
offer some of the same services that Lizza Computer Graphics currently offers or proposes to
offer. However, none of them is offering the same range of services Bob Lizza is proposing to
offer and none of them offer the high-tech equipment Lizza Computer Graphics has or is
proposing to buy.
Additionally, no other company that is trading in this business space boasts the core
competencies of the owner, Bob Lizza. Lizza holds a degree in Marketing with a minor in Studio
arts, has more than 16 years of experience in the arts and graphic design fields, is a
commissioned oil painter, and brings a decade of successful small business ownership and
management to his business.
Marketing
During the first year of operation, the marketing strategy for Lizza Computer Graphics will use a
combination of proven marketing tools and will focus on local and regional businesses
opportunities. The market will be segmented and the marketing targeted to two different
audiences – corporations and businesses and the art community. Among the tools Lizza will
employ immediately are advertisements in key regional and local publications and on local radio
stations. Other methods will be used to reach both audiences including web sites and online
marketing.
Financial Projections
Based on pro forma statements included in the body of the business plan, Lizza Computer
Graphics, Inc. projects the following:
DATA REMOVED – PROPRIETARY INFORMATION
2003
2004
2005
2006
Sales
EBIT
Gross Profit
Profit
Based on these projections, Lizza Computer Graphics, Inc. will reach break even by the end of
the fourth quarter of 2003 and will reach profitability during 2004, its first full year of operation.
Financing
In order to expand its base business and add new products and services, Lizza Computer
Graphics plans to construct a 12,000 square foot facility in or around Tunkhannock,
Pennsylvania. This facility will house all production services as well as an artist’s studio and a
professional art gallery. The company will require a loan in the amount of $750,000.00. Loan
and interest repayments will begin within 30 days of receipt of the capital.
Note: References for statistics and industry projections are cited in the body of this work.
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Lizza Computer Graphics
Business Plan Summary & Excerpt
COMPANY PLAN
COMPANY DESCRIPTION
Lizza Computer Graphics, Inc., established in 1993 and incorporated in 1999 in Pennsylvania as
an S Corporation, is a full-service design and production studio that currently provides the
following services to corporations and small to mid-sized businesses in Northeastern
Pennsylvania:
1.
2.
3.
4.
5.
6.
7.
Computer Graphics & Design
Drum Scanning
Large Format Color Printing & Finishing
Display & Event Graphics and Reproduction
Professional Photography
Photo Reprinting
Photo Restoration
Of the services currently offered by Lizza Computer Graphics, professional photography and
photo reprinting and restoration are the most recent product offerings. The company began
offering full-scale photo shoots in 2000 on 35 mm. But by 2001, digital equipment had
advanced to the point where Lizza felt digital images rivaled and, in some cases, excelled 35 mm
and transparencies. So the company invested in the hardware and software needed to capture
and reproduce high-quality digital images.
Lizza now offers ultra-resolution product photography with the same quality of image that is
found in publications like Architectural Digest and National Geographic. Working with digital
images allows Lizza Computer Graphics to eliminate the cost of producing a photographic image,
all together. Local and regional agencies have turned to Lizza Computer Graphics in increasing
numbers, to get the highest quality digital images at reduced costs.
When Lizza invested in a digital scan back, studio lights and a 4 x 5, camera he entered a world
inhabited by very few graphic design or print shops. Lizza Computer Graphics was able to
control and handle every aspect of creating a finished product – from image capture to design,
reproduction and finishing. He also opened the door to adding several new services including:
1.
2.
3.
4.
5.
6.
7.
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Lizza Fine Art & Giclees
Lizza Fine Art Gallery (Sales & Commissions)
Museum Archives & Architectural Renderings
Digital Image Capture
Large Format, Full Color Outside Signage
Point of Purchase (POP) Design & Printing
Fleet & Truckside Advertising
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Lizza Computer Graphics
Business Plan Summary & Excerpt
PRODUCTS & SERVICES
With the purchase of photographic and image capture equipment and the proposed investment
in the Cruse Digital Equipment CS285 ST Scanner and the Sol Jet pro II Outdoor Graphics Printer,
Lizza Computer Graphics is poised and ready to expand into four other specialty printing areas
which build on existing resources and expertise while deepening the product line and increasing
profitability. Those four related services are:
1. Fine Art Giclees (The addition of fine art giclees opens another revenue center for Lizza
Computer Graphics – a professional art gallery.)
2. Museum Archives & Architectural Renderings
3. Large Format, Full Color Outdoor Signage
4. Fleet & Truckside Advertising
Fine Art Giclees
Giclee is French slang for spraying or squirting ink and was coined in the 1990’s to describe fine
art prints reproduced with large format inkjet printers. Giclee prints have become increasingly
popular as the technology and materials improve. Today, giclée is the world’s best technique
for reproducing original works of art. It has a higher resolution than lithography and a wider
color range than a serigraph.
In fact, the quality of giclees is so high that reproductions have been exhibited at some of the
world’s foremost museums including the Metropolitan Museum of New York, the Philadelphia
Museum of Art, the Los Angeles Museum of Contemporary Art and the British Art Museum.
Although Lizza Computer Graphics already owns and knows how to use the high-end
photographic equipment and high-tech, large scale, inkjet printers required to produce giclees,
owner Bob Lizza is positioning the company to take the next step in the digital revolution with
the purchase of the Cruse CS285 ST Scanner.
The Cruse CS285 ST is the most technologically advanced, large format, high resolution scanner
in the world. It accommodates originals up to 60” by 90” and produces images up to 10,048 x
15,500 pixels with a file size of more than 800 megabytes. The Cruse achieves a level of clarity
and depth of detail never seen before in a digitized print.
The Cruse scanner offers significant advantages over current, digital scanners:
1. Focus – Unlike digital camera backs where the focus can only be set visually through the
camera’s ground glass, the Cruse scanner uses a complex software algorithm to focus.
This eliminates human error and maximizes sharpness on all scans.
2. Lighting – Cruse scanners use the Synchron™ lighting system. The Synchron lighting
system uses a patented moving lamp design which provides even illumination and
reduces overall light exposure on originals. It provides even illumination across the
entire surface of the original and eliminates the need for retouching.
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Lizza Computer Graphics
Business Plan Summary & Excerpt
3. Lens Resolution – Pixels on most digital camera backs are 8 microns apart but most
standard lenses can’t resolve images that small. The lenses used in Cruse scanners are
ultra high resolution and are modified to meet technical requirements.
4. Squareness to Camera – Traditionally, images are captured using a tripod setup which
makes it impossible to square a wall-mounted image. The scanning head on the Cruse
scanner is perfectly square with the Cruse holders.
Because Lizza will be using a Cruse CS 285 ST, he will no longer have to square the original by
hand. He also won’t have to manually focus using a loop. Set up time will be reduced by more
than 60 minutes. That means that production will increase by at least 3 fold. Lizza currently
does 7 to 10 reproductions a day. Using the Cruse, he will be able to do up to 30 images a day.
Also, by purchasing the Cruse CS285 ST, Lizza Computer Graphics will be in a class by itself – at
this time, no other company in the United States owns the Cruse CS285 ST. Only one
installation is scheduled for the first quarter of 2003.
The quality of the scanned image is critical to creating giclees but it is just the first step in the
process. Lizza Computer Graphics follows through on quality by using only saturated, waterbased archival inks capable of producing a combination of 12 chromatic changes and more than
3 million colors.
The next step is image reproduction, itself. Here, too, Lizza Computer Graphics has a
competitive advantage over every other giclee studio in the region; the owner is a
commissioned oil painter. Because Lizza is an artist himself, he knows that every brush stroke,
every detail is important to the artistic integrity of a painting. He complements this innate
understanding of detail and his desire to preserve the integrity of the artwork with a practiced
eye and 15 years of experience as a commercial designer and photographer. To ensure a color
match, Lizza also uses a spectrophotometer and specialty software to address the difference
between what the camera sees and what the human eye can see.
The final step is finishing or laminating the canvas. Although currently done by hand, Lizza
Computer Graphics plans on investing in a liquid laminator, as well. This piece of equipment
floods the top of the canvas more evenly. It also dries or cures the canvas as it processes,
speeding the finishing process.
Lizza Fine Art giclees are of such high quality that the artists themselves find it difficult to
distinguish their originals from the reproductions. In fact, the only way to tell the difference is
to use 15X loop. As a result, without advertising of promotion of any kind, the company is
already producing giclees for more than fifty (50) artists and galleries.
The Professional Art Gallery
Opening a professional art gallery is a natural extension of Lizza’s skill and expertise as an artist.
His work and his reputation have already earned him the respect of the regional art community,
opened doors and built connections with local galleries and gallery owners (who double as
agents for local and regional artists).
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Lizza Computer Graphics
Business Plan Summary & Excerpt
Owning and operating a professional art gallery and studio opens up several opportunities for
the company to earn income including:




The sale of Lizza’s own artwork
Fees generated by reproducing other artists’ original works
Commissions on sales made at the gallery
Charges for staging and holding openings and exhibitions.
Most galleries would have to work with originals only, or would have to find a reputable studio
to do giclees for them and pay for the work. Under this model, Lizza will be able to create the
giclees, display them in his art gallery and mount shows and openings for artists at or below
cost.
The market is there and the demand is growing. Lizza Computer Graphics is ready to meet the
need. Lizza’s own works and of those of selected clients are available and ready to display and
sell. All that the company requires is the facility in which to build the gallery and studio.
Museum Archives & Architectural Renderings
Archiving museum artifacts and capturing architectural renderings are an extension of fine art
giclees and would leverage the Cruse scanner. Older models of the Cruse scanner are already
being used by the Vatican Secret Archives, Lucent Technologies, NASA Johnson Space Center
and the Beethoven Museum to capture and preserve priceless artifacts and images. By
purchasing a Cruse scanner, Lizza Computer Graphics will be able to offer both profitable
services.
Museums and historical societies in the region that want to archive fine art and historical
documents will be able to get high quality image scanning, image files and reproductions
through Lizza Computer Graphics. The Cruse CS285 ST Scanner can also handle threedimensional originals with no loss of detail or sharpness and no fall off at the edges. Using this
technology, Lizza can help museums preserve exhibits and works of art that are vulnerable to
deterioration.
Architectural and design firms will be able to capture and preserve architectural renderings
including conceptual designs, preliminary sketches and final presentations through Lizza
Computer Graphics.
Large Format Outdoor Signage
Large format outdoor signage is a natural fit for Lizza Computer Graphics. The company is
already equipped to design, create and produce 4’ X 8’ panels required for outdoor signage.
With the addition of a single printer that uses solvent-based, waterproof inks, Bob Lizza will be
able to offer full, four-color, photographic images for outdoor signage -- a competitive
advantage over traditional outdoor signage companies that only offer colored lettering in vinyl.
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Lizza Computer Graphics
Business Plan Summary & Excerpt
The printer Lizza wants to add is the SOLJET Pro II SC-540. It offers top-quality printing and rapid
production speeds (up to 300 square feet per hour) and outputs a wide range of durable
outdoor graphics. The heavy-duty solvent printer has a unique print mode developed
specifically for the production of signs, banners, POP displays and vehicle wraps and prints
photorealistic images up to 1440 x 1440 dpi. Six precision heads use variable droplet technology
designed for the best dot control in the industry
The SOLJET Pro also uses a unique, low volatility solvent that does not require special ventilation
or environmental equipment. It automatically contours or die cuts graphics as it prints without
reloading or repositioning. That means that Lizza can create the images his client wants and
print and die cut them simultaneously. This speeds up the production process and allows the
customer to layer on top of existing graphics -- adding or changing what they already have and
leveraging any investment they may have made.
The same process and printer will be used to create and print Point of Purchase (POP)
advertising including back lit displays like those found in major department stores. By changing
the medium, Lizza will also be able to produce poster ads that cling to windows but don’t adhere
permanently (like those used in fast food restaurants). He will be able to create any size ad
from as small as a postage stamp to just about any length the customer needs.
Again, outdoor signage and POP (backlit displays and cling advertisements) are all related to the
printing he currently does for indoor trade show booths. All formats use the same printing
process so there is no learning curve. Lizza will be able to provide these new services as soon as
the necessary printer is acquired.
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