Graphic Design Business Plan Template
If you want to start a successful graphic design business or expand your current graphic design business, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of graphic design business plans.
The following graphic design business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Graphic Design Business Plan Example
I. Executive Summary
Business Overview
Located in [Location], [Company Name] is a full-service graphic design agency that assists businesses with website, logo, and printed product design. Our services result in a visually appealing website and marketing materials that enhance branding, lead generation, customer acquisition, and customer retention. We provide a free estimate during our complimentary meeting to learn about our clients’ needs and objectives. From printed flyers to website design and functionality, [Company Name] creates customized graphic design solutions and strategies that perfectly match each client’s business and industry. [Company Name]’s goal is to become a top graphic design agency brand and compete with the industry leaders.
Products Served
[Company Name] will provide a variety of graphic design services to its clients. Our services include:
- Website design and development
- Logo design
- Print design
- Social media graphics
- Brand identity development
- Content creation
- Copywriting
- SEO
Customer Focus
[Company Name] will primarily serve entrepreneurs, start-ups, and corporate organizations that are located within 50 miles of [Location]. The demographics of these customers are as follows:
- 20,000 corporations and small businesses
- 15,000 entrepreneurs
Management Team
[Company Name] is led by [Founder’s Name], who has been in the graphic design industry for [X] years. He has worked as a graphic designer for several corporations and has a consistent track record of improving branding and customer retention through his work. He has recently begun working as a freelance graphic designer but has now decided to turn his freelance business into an agency. He will hire several other graphic designers to help him manage his clients and workload.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for graphic design services in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
- There has been significant growth in graphic design over the past few years. Those who cater to this market have been thriving.
- The management team has a track record of success in the graphic design business.
- The graphic design business is a proven, successful business in the United States.
Financial Highlights
[Company Name] is currently seeking $200,000 to launch the graphic design agency. Specifically, these funds will be used as follows:
- Office build-out: $50,000
- Equipment and supplies: $50,000
- Working capital: $100,000 to pay for marketing, equipment, and salaries.
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a full-service graphic design agency located in [Location]. We specialize in helping businesses create visually appealing websites, logos, and printed products that enhance branding, lead generation, customer acquisition, and customer retention. Our services include website design and development, logo design, print design, brand identity development, and SEO.
We work with businesses of all sizes, from startups to established corporations. We understand that each business has unique needs, and we tailor our services to meet those needs.
We offer a free consultation to learn more about our clients’ business and their goals. During this consultation, we discuss the client’s budget, timeline, and desired results. We will also provide them with a free estimate for our services. Once we understand their needs, we will create a custom graphic design solution that is tailored to their business. We will work with our clients every step of the way to ensure that they are satisfied with the final product.
[Company Name] is founded by [Founder’s Name], an experienced graphic design professional. [Founder’s Name] is an entrepreneur with a passion for graphic design who seeks to provide a one-of-a-kind upscale graphic design experience. His experience and our commitment to excellence will make [Company Name] the top graphic design agency in [Location].
[Company Name]’s History
After surveying the local customer base, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [Date of Incorporation].
[Founder’s Name] is currently undergoing due diligence on several properties and the local market to assess the most desirable location for the graphic design agency.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo, and website
- Determined the list of services to be offered
- Determined equipment requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] will provide a comprehensive list of graphic design services to help clients create beautiful websites, design print materials, and effectively market their brand. Our services include:
- Website design and development
- Logo design
- Print design
- Social media graphics
- Brand identity development
- Content creation
- Copywriting
- SEO
III. Industry Analysis
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] competes against small, individually owned graphic design agencies and major regional or national chains. According to IBIS World, the U.S. graphic design market was valued at $49.7 billion in 2023 and grew 3.3% that same year. On average, the industry has grown 2.9% each year in the past five years. Similar growth is expected over the next several years.
The primary positive factor affecting this industry is the demand driven by the target audience to effectively market and promote their content, products, and services online. This creates a demand for well-designed websites and marketing materials that will enhance branding, lead generation, customer acquisition, and customer retention. There are not enough expert graphic designers to currently meet this demand, meaning that graphic design agencies are an essential business. If these trends continue, our graphic design agency will be in high demand for the foreseeable future.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve entrepreneurs, start-ups, corporate organizations, as well as small businesses in the [Location] area. Over time, the company expects that it will gain regional and national recognition.
Customer Segmentation
[Company Name] will primarily target the following customer segments:
- Entrepreneurs and Start-Ups: Entrepreneurs and start-ups don’t have the time, skill, or budget to hire an in-house graphic designer. Therefore, they are the most likely segment to need the services of a graphic design agency. We expect most of our clients will come from this segment.
- Corporate Organizations: Corporate organizations are always looking for outside help for affordable services and unique design and branding ideas. We look forward to working with several large industries and businesses located throughout the region.
- Small Businesses: Small businesses that need to increase their reach in the local, national, and international markets will make an important market segment for the company. Like start-ups, they may not have the budget to hire their own team of graphic designers and will need our agency’s services.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are located within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Sunset Designs
Sunset Designs is the city’s most well-known graphic design agency and has been in business for 20 years. Sunset Designs specializes in helping mission-driven organizations by transforming their branding, social media, website design, and marketing strategy. Sunset Designs offers quality digital and print design services to ensure their clients maintain a consistent brand and improve their customer retention. Sunset Designs works with both small and large businesses to help them enhance their digital and physical presence. We expect that Sunset Designs will be our biggest competitor in the local market.
Digital Design Pros
Digital Design Pros has been in the industry since 2010, catering to entrepreneurs and corporations alike. Digital Design Pros focuses on providing digital graphic design services, from website design and functionality to social media graphics. Digital Design Pros is dedicated to bringing customers’ business visions to life through its knowledge, experience, and visionary designs. Though Digital Design Pros will continue to thrive, they will only compete with us for clients who exclusively need digital graphic design services.
Wise Designs
Wise Designs was established in 2012 and is known for its transparent work and real-time results for its clients. Wise Designs mainly focuses on designing printed materials for local businesses, including logos, flyers, and business cards. They also provide advice and consultations on brand strategy and how to attract new customers with their products. While Wise Designs’ services are still in high demand, they will only compete with us for clients who exclusively need printed products.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: The company’s management team has [X] years of graphic design experience that allows them to serve customers in an improved and sophisticated manner than the competitors.
- Relationships: Having lived in the community for [X] years, [Founder’s Name] knows all of the local leaders, media, and other influencers. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
- Location: [Company Name]’s location is near the center of town, giving the company access to budding artists, corporate organizations, entrepreneurs, and small businesses.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Convenient location.
- Offering a wide variety of high-quality graphic design services to entrepreneurs, corporate organizations, and small businesses.
- Providing excellent customer service.
- Moderate price point.
Promotions Strategy
[Company Name] expects its target market to be entrepreneurs, start-ups, corporate organizations, and small businesses. The company’s promotional strategy to reach the audience includes:
Pre-Opening Events
Before opening the graphic design agency, [Company Name] will organize pre-opening events designed for prospective customers and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. [Company Name] will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its services in various media outlets like podcasts, television stations, radio shows, etc.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. [Company Name] will use social media to develop engaging content and post customer reviews that will increase audience awareness and loyalty.
Website/SEO
[Company Name] will develop a professional website that displays details about our services, staff, location, and contact information. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Word of Mouth Marketing
[Company Name] will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the graphic design services. The customer can expect to receive quality services at a more affordable price than what they pay at an ultra-premium graphic design company.
VII. Operations Plan
Functional Roles
To execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Service Functions
- Cold call potential clients
- Provide free estimates and complimentary consultations
- Design websites for better appearance and functionality
- Design printed products and marketing materials
Administrative Functions
- Bookkeeping
- Marketing
- Website and social media maintenance
- Hiring and training staff
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been in the graphic design industry for [X] years. He has worked as a graphic designer for several corporations and has a consistent track record of improving branding and customer retention through his work. He has recently begun working as a freelance graphic designer but has now decided to turn his freelance business into an agency. He will hire several other graphic designers to help him manage his clients and workload.
Though [Founder’s Name] has never run an agency before, he will hire several other staff to help him run the aspects of the business that he is unfamiliar with.
Hiring Plan
[Founder’s Name] will serve as the CEO. To launch the graphic design agency, the company will need to hire the following personnel:
- Graphic Designers (3 to start)
- Human Resources Manager
- Sales Executives (2 to start)
- Accountant
- Administrative Assistant
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the fees charged for our graphic design services.
The major costs for the company will be staff salaries. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $200,000 to launch the graphic design agency. Specifically, these funds will be used as follows:
- Office build-out: $50,000
- Equipment and supplies: $50,000
- Working capital: $100,000 to pay for marketing, equipment, and salaries.
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
