3. 3
a. Owners: Jordan Michael and Jonathan Pulley
b. Location: Atlanta, Georgia
c. Type of Business: Partnership
d. Types of services:
i. Services to include:
1. Project Planning and Budgeting
2. Design Concept Plans with furniture layouts, concept drawings or
renderings, window treatment drawings, and/or color plans
3. Material concept selections
4. Construction documents to include lighting, electrical additions,
flooring, elevation drawings with finish materials, and furniture
plans
5. Construction site walk-throughs
6. Material schedules and specifications
7. Furniture selection and specification
8. Furnishing Procurement
9. Furnishing Installation
e. Describe your expertise in running the business
I am an energetic, dependable interior designer using what I have learned at the
collegiate level to apply to starting up my own interior design business. I have
interned/worked for Travis & Company for five months. I have collegiate
classroom use of all phases of the design process, and extensive use of hand
drafting and rendering. I am well-versed in the digital and physical creation of
design boards, as well as, software-versed in Microsoft Office Suite, AutoCAD,
Revit, Photoshop, and Sketchup.
5. 5
a. The need for these services in your community
According to the U.S Department of Labor (Bureau of Labor Statistics), In May
2015, roughly 120-380 Interior Designers were employed in the state of Georgia.
There are close to this many specialized design services, furniture stores, and
commercial/residential design services readily available right here in Atlanta.
These businesses prove that Interior Design is a very much needed service in our
community. Atlanta is an ever-growing city that many people visit and live in.
These types of services are always going to be needed when we are in such high
demand for updated design in commercial offices, schools, and healthcare
buildings, as well as, in the homes of Atlanta.
b. Potential clients in the area
The Atlanta Business Chronicle states that after January 9, 2016 the population
for metro Atlanta has reached 5,490,000 people. I believe that this number puts
into perspective just how many potential clients we are looking at as interior
designers for this community. The Atlanta area is home to many large
businesses, neighborhoods, and apartment complexes that will need renovating
or building and designing. This alone gives me an idea of my potential as an
Interior Designer in Atlanta.
c. A few of my known competition in the Atlanta area includes companies such as:
i. Commercial Design:
1. Innerworks Design Group
2. Pineapple House Interior Design
3. Crosby Design Group
4. Tillman Long Interiors LLC
6. 6
ii. Residential Design:
1. Liz Williams Interiors
2. HOK
3. Townhouse by Robert Brown
4. Spitzmiller and Norris, Inc
d. Trends in the industry to impact my business
According to Atlanta’s Vickie Bolick, author of the online blog Ace of Space, the
“Top Design Trends For 2016” include design talent from around the country.
She has provided some of the top known trends in the Atlanta area from what
knowledge she gained from the July 2015 Atlanta’s Mart. Some of these trends
include:
i. Hand-loomed, hand-crafted product
1. Natural fibers, and organic shapes. Hand-crafted pottery or
handwoven textiles. Vickie says, “The design world is about
supporting the local artisans.” These local artisans are the
designers in our community who provide such beautiful hand-
crafted products to place in our homes.
ii. Organic shapes and textures
1. In the use of many household items such as dinnerware and
furniture, undefined shapes and textures are making a big
appearance in 2016.
7. 7
iii. Warm metals
1. Brass and warm gold tones are remaining a trend for at least a
few more years. Copper, bronze, and rose tones are some popular
warm metals still being used.
iv. Tropical Motifs
1. Common items such as fabrics, vases, wallpapers, and trays are
being stylized with these popular botanical patterns.
8. 8
v. Ethnic Prints
1. Tribal prints and patterns have globally inspired colorful and
neutral motifs for fabrics, wallpapers, and accessories.
vi. Bring Home The Green
1. Plants are always a popular trend, and it really opens up a room to
add potted live plants to any décor
9. 9
vii. Metallics
1. Sparkly metallic shades are becoming quite popular in the design
world. Textiles and accessories are now commonly covered in
solid and patterned metallic shades.
11. 11
a. Target market
My target market would be home/business owners ages 25-45 whom of which
reside in the North Metro Atlanta area such as, Buckhead, Woodstock, Canton,
and Alpharetta. I am aiming for clients with an average income of 50,000 or
more a year.
b. Pricing structure
My preferred fee structure includes the following for services and product:
Hourly Percentage Flat Fee Not specified to
client or included
in other fee
Initial client
meeting to outline
project scope
X
Programming X
Conceptual design
sketches
X
Preliminary plans
and elevations
X
Preliminary
selections of
materials and
finishes
X
Preliminary
selections of
furnishings and
fixtures
X
Conceptual
lighting design
X
Presentation of
concept
X
Finalization of
design plan
X
Presentation of
final design plan
X
Construction
Documents for
contractor
X
Issue work orders
and purchase
orders
X
Site walks during X
12. 12
construction
Freight X
Warehousing X
Delivery X
Install X
Change-Orders or
Corrections
X
Final walk-through X
Hourly fee rate:
Desired annual salary: $45,000
Hours/week plan to work: 40hrs
Weeks/year plan to work: 45 weeks
$45,000 (annual salary) x 2.5 (multiplier) = $112,500
40 (hours per week) x 45 (weeks per year) = 1800 (hours per year)
$112,500 / 1800 = $62.50 (Hourly rate)
$45,000 (annual salary) x 3.5 (multiplier) = $157,500
40 (hours per week) x 45 (weeks per year) = 1800 (hours per year)
$157,500 / 1800 = $87.50 (Hourly rate)
Flat fee rate guidelines:
Flat fees are becoming more common because knowing a fixed amount
makes it easier for an organization to develop and adhere to a budget.
Guidelines to use when determining flat fees include: examining past
records, using square footages/meters, and using a percentage of project
costs. No matter how the flat fee is determined, a very important clause
that must accompany the estimate is a time limitation. The agreement
must stipulate that design services are concluded by some condition,
such as a specific date, phase of the design process, or number of hours.
c. Advertising and promotional activities that will support my business
i. Social media
ii. Print advertising (magazines, newspapers, flyers etc.)
iii. Online advertising (design blogs, webpage ads, personal business website
etc.)
iv. Television/radio advertising
v. Face to face advertising (Atlanta’s Mart, personal portfolio, physical signs
around well located business, etc.)
d. Seasonal influence in my business
13. 13
Different seasons of the year will cause business to fluctuate depending on the
needs and what projects clients will have during that time of year:
i. Winter/Fall is the best time for: Prepping for family events, reorganizing
specific spaces, budgeting/planning for large scale projects, etc.
ii. Summer/Spring is the best time for: Painting, renovating, large scale
building, etc.
So, with events such as Atlanta’s Mart that come twice a year, business
owners know it is best to prepare your studio in advance. During the July
Mart designers will be in search of holiday pieces getting ready for the
cold season. While during the December Mart designers will be more in
search of summer styles and brighter colors.
15. 15
a. Organizational Structure
b. Other people needed
i. Subcontractors
ii. Workrooms: drapery, upholstery, carpentry, tile, glass, etc.
iii. Specialized installers
iv. Painters
v. Flooring professional
vi. Insurance agents
c. Job Descriptions
i. Senior Executives
1. CEO: All executive operations
2. CFO: All financial operations
ii. Administration
1. Accounting: Monitoring assets, liabilities, and equity
2. Human Resources: Manages human capital within the business
iii. Design Teams
1. Residential Design Teams: A group of 20-30 designers who
oversee all residential related design projects
2. Commercial Design Teams: A group of 20-30 designers who
oversee all commercial related design projects
iv. Manufacturing
Senior Executives
CEO: Jordan Michael
CFO: JonathanPulley
Administration Design Manufacturing
Internal ExternalCommercial
Design Team
Residential
Design Teams
Human
Resources
Accounting
16. 16
1. Internal: In-house warehouse attached to the office and
producing our own name brand products
2. External: 300+ manufacturing partnerships who create their own
products and allow us to be their “middle man”
d. Record Keeping System
i. QuickBooks (software used to track income and expenses, create
estimates and invoices, sync bank accounts and apps, and manage and
pay bills.)
e. Employee Benefits
i. Child and Elder care benefits
ii. Compensation time
iii. Family-friendly benefits
iv. Health insurance
v. Life and disability insurance
vi. Retirement
vii. Relocation
viii. Match 401K
ix. Sick, personal, and parental leave
x. Tuition reimbursement
xi. Vacation Time
f. Dealings with suppliers (what they will need from me and who we will use)
i. We will be using secondary shipping companies due to the fact that we
are not a major corporation, and do not have our own logistics
department. The suppliers would need a credit application to set up an
account in order to send us weekly new shipments.
ii. Shipping companies we might use would include:
1. FedEx
2. UPS
3. US Postal Service
4. DHL
g. Operations with delivery
i. Within our warehouse we have employees who specifically unload
shipments from our secondary shipping companies when they arrive at
our office. This is to eliminate any possible external liabilities. Our
warehouse would then ensure, after careful inspection, that a rep from
our company would be taking the product to the location of installation.
We would then install the product to ensure it is done properly and
efficiently.
h. Working with subcontractors
i. We will require all of our subcontractors to:
1. Be licensed
17. 17
2. Carry their own insurance
3. Be certified if applicable
4. Come with respectable references
i. Customer Relations (contract sample below)
Date: 5/4/16
Client(s)Name:JimandJane Johnson
Address:125 Lakeshire Ct.Marietta,Ga 30064
Dear Jim and Jane,
It was a pleasure tohave the opportunitytomeetwithyouregardingyour
project. In ourpreliminarymeetingswe have alreadylaidagood foundationfor
the project.
Thiswill confirmanagreementforthe interiordesignservicestobe performed
for the above address. Basedonour preliminarydiscussions,yourproject
prioritiesare toselectanoverall designconcept,includingselecting acolor
palette,furnishings,décor,organizationalaspects,etc.
Servicesto be performed
A. DesignConceptandServices
Consultwithyouonyour requirementsandaestheticobjectives
Measure the existingspace andtake photosas necessary
Reviewexistingfurnishingsandconsultonpotential use and
arrangement
Prepare a suggestedfurniture layoutforeachof the three roomsnoted
above
Provide additional drawingsandsketchesasneeded
Recommendcolorschemes,furniture,fabrics,finishes,andaccessories
Prepare a preliminarybudget
Provide consultationtoyou,andinspectthe workto be performedby
trade persons,suchas painters,hiredbyyoudirectly.
B. PurchasingServices
Upon agreementof the preliminaryselectionsnotedabove,prepare
specificationsandpurchase ordersonyourbehalf
Subjecttoyour writtenapproval of andpaymentforeach purchase
order,place ordersfor goodsandserviceswithvendorsandsuppliers
on yourbehalf
Assistinthe schedulingof deliveryandinspectionof goodsasrequired
General Conditions
18. 18
The Designerwill provide estimatesforitemsandservicestobe purchased.
Paymentbythe Clientwill be made inadvance of purchase andwill includeall
taxes,insurance,delivery,andinstallationcostsbilledby suppliers. The
Designerwill notissue purchaseorderstosuppliersuntil signedcopiesof the
purchase ordersare received,indicatingthe Client’sapprovalwithfullpayment.
All price discountsmade available tothe Designerwill be passedontothe
Client.
The Designerwill selectpurchasesandsolutionswithvalue,suitability,and
qualityinmind,butcannotbe responsible fordefective merchandise. Although
the Designerwill doall thatisfeasible toeliminate anyobstaclesduringthe
process,the Designercannotbe heldresponsible fordelaysindelivery,faulty
merchandise,installation,performance orworkmanshipof contractors,
workrooms,andtrade sourcescontractedby the Client. The Clientwill,
however,be assistedinresolvingdifficultiesthatmayensue.
Designsandpresentationswillremainthe propertyof the Designerandcannot
be usedby the Clientforanypurpose otherthanthisProject.
The Designerwill be permittedtophotographandpublicize the Projectwhile
respectingthe Client’srightstoprivacyandconvenience.
Eitherparty mayterminate thiscontractin writingforanyreasonprovidedten
(10) days writtennotice isgiven. Upontermination,the Clientwill fully
compensate the Designerforall completedservices,all merchandiseonorder,
and all contractual commitments. The AmericanArbitrationAssociationshall
settle anycontroversyorclaimarisingoutof thiscontract. Thiscontract will
remainineffectforone yearfromdate of execution.
Payment Terms
DesignservicesdescribedaboveinsectionA will be billedata rate of $62.50 per
hour.
For servicesdescribedabove insectionB,a fee forall purchasesmade onbehalf
of the clientwill be billedatcost plus 10% percent.
These costswill be billedtothe Clientona monthlypaymentalongwithanytax
on servicesasrequiredbylocal regulation. Out-of-pocketexpenses,suchas
out-of-towntravelrequestedbythe Clientwill be billedtothe Clientseparately.
To secure these services,aretainerinthe amountof $4,000 creditedtoward
future billingisrequested. If the above issatisfactory,please signbelow to
indicate youracceptance of thisagreement. Returnone signedcopytome,
withthe retainerpayable to JM Designs. Retainthe originalforyourfiles.
19. 19
We lookforwardtoa mutuallysatisfyingandenjoyableworkingrelationship
withyou. Please feel freetocall at 404-555-2445 shouldyouhave any
questions.
Sincerelyyours,
Designer: JordanMichael
Client(s): JimJohnson
JaneJohnson
j. Project growth and future personnel needs
i. As the company grows and expands some of our future needs may
include:
1. Employment of more designers
2. A larger accounting and human resources department
3. Adding a logistics department
4. Adding more locations of the business around the country
5. Adding a marketing/advertising team
6. Issuing stocks
7. Creating a board of trustees
21. 21
a. Project initial capital for startup
i.
Startup Expenses
(Legal costs, stationary, sales
literature, etc.) $2,500
Startup Assets
Money in the bank $16,500
Startup Inventory $1,000
Other current assets
(Leasehold improvements, fixtures,
signage, etc.)
$700
Long-term or fixed assets
(Land, plant, equipment, etc.) $0
Total Assets: $18,200
Total Startup Requirements: $20,700
b. Projectfirst-yearestimatesforbusinessoperations
i.
BeginningCash Balance $16,500
CASH IN
- Cash Sales $31,000
- AccountsReceivable $20,000
- NewLoans $30,000
- NewInvestment $15,000
CASH OUT
- EquipmentPurchased $24,000
- ExpensesPaid $26,000
- InventoryOnHand $33,800
- Principal Payments $1,000
ENDING CASH BALANCE $27,700
c. Estimate revenue of first-year
i. Endingcash balance – Beginningcashbalance
$27,700 - $16,500 = $11,200
22. 22
d. Monthlyprofitandlossstatements
i.
REVENUES
Merchandise Sales $1,200
Design Team Income $1,050
Total Revenues: $2,250
EXPENSES
Cost of Goods Sold $500
Depreciation Expense $200
Wage Expense $200
Rent Expense $150
Interest Expense $100
Supplies Expense $125
Utilities Expense $42.33
Total Expenses: $1,317
NET INCOME $933.33
e. AccountingSystem
i. We will be utilizingQuickbooks,aswell asourqualifiedaccountingstaff inorder
to track income and expenses, create estimates and invoices, sync bank
accounts and apps, and manage and pay bills.