Enterprise Development for Fine Art Gallery Ltd

This report discusses the enterprise development plan for Fine Art Gallery Ltd, including company ownership, costs, services offered, competitive advantage, and marketing strategies.

[enterprise development]
2019

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Executive summary
In this report the enterprise development for Fine Art Gallery Ltd Company is discussed. The
company shall be located in the city of Leicestershire and it shall be a limited company with a
small start-up capital. The different requirements needed for the establishment of the company
are discussed. Further the sales forecast and company ownership is also mentioned to provide a
clear view of the enterprise development. The first three years are taken into consideration for
the development of this enterprise. The business model canvas is given to provide an overview of
the different operations of the company and also to assist in the development of the business
strategies.

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Table of Contents
Introduction.................................................................................................................................................3
About the company- Fine Art Gallery Ltd...................................................................................................3
Company ownership....................................................................................................................................4
Costs incurred in the start-up of the business...............................................................................................5
Services offered by the company.................................................................................................................7
Painting industry..........................................................................................................................................7
Creating value for the customers.................................................................................................................7
Competitive advantage and its sustenance...................................................................................................8
Marketing of the services............................................................................................................................9
Value proposition canvas.......................................................................................................................11
Marketing strategy.....................................................................................................................................11
Business model canvas..............................................................................................................................13
Business model canvas for the company...............................................................................................14
Relations between the nine building blocks...............................................................................................15
Conclusion.................................................................................................................................................15
References.................................................................................................................................................16

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Introduction
In this report the enterprise development plan is given for the business of paintings in the city of
Leicestershire. For the development of an enterprise there are many important steps which have
to be followed to establish it in the competitive market place. Fine painting shall be the name of
the company and it shall be a limited liability company and it will provide top quality paintings
in Leicestershire. The company is focused on proper scheduling of the job projects and retention
of artists which has been noticed as the problems in many companies operating in this industry.
This problem creates lower level of customer satisfaction and also leads to repetition of work.
The company aims to exploit these weaknesses to gain a significant market share in the industry.
About the company- Fine Art Gallery Ltd
Fine Art Gallery Ltd shall be a limited liability company which will have two directors and shall
be located at a rented suite in Leicestershire.
Vision Statement of the company
To become the best art gallery and leading paintings provider in Leicestershire.
Mission Statement of the company
The mission of the company is to provide high quality canvas and handmade paintings. The
company has the mission to operate and maintain the art gallery for facilitating the creation,
collection, exhibition, interpretation and preservation of the art work for developing the public
understanding as well appreciation of the visual arts in this city.
The company is aimed at providing these services in a timely manner and ensuring maximum
customer satisfaction. The officers of the company will consider each contract like an agreement
between the partners who want to create a mutual and long lasting relationship. This will help in
providing a longer term profits by means of repeat business and referrals
Objectives of the company- the objectives or goals of a company has to be SMART which
entails that it should specific, can be measured, acceptable, real and limited by time as suggested
by Milgram, L., Spector, A., & Treger, M. (2010).
The objectives of the company in the next 3 years are given as follows:

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 To achieve a sales revenue of approximately £500,000 by the third year.
 To further expand the business into the adjacent area of the cities where the urban
population is growing.
 To increase the appreciation of the art work and visual arts by the people in this city.
The company also aims to provide the painting services in a timely manner and also maintaining
a good quality-control programs to attain a 100 per cent customer satisfaction. The company also
aims to hire the best artists in the industry for supplying their art work in the gallery. It will also
encourage the development and appreciation of art work and more importance shall be given to
the visual arts. And this will include the creation, exhibition, collection and presentation of the
art work by in-house and out-house artists by the company.
The following key procedures will be used for reaching the above stated objectives
 Creating a position of inventory coordinator and will at least assign one expediter to
every project.
 Have a project manager for every project who will be responsible to handle the issues
related to the quality of the paintings.
 Establish a program of profit sharing with all the artists and the employees.
The directors of the company shall be providing the start-up capital and will seek loan amount
of£7,000 from the financial institutions. The location of the company shall be a rented suite
which will have the facilities of offices for the directors, storage area for the inventories,
reception area, workstations for the artists and hall for the display of the paintings.
Company ownership
The company is privately owned by two directors who have invested their capital which is equal
in the start-up company. The start-up cost of the company are given below-

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expenses assets investments loan
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Chart Title
figures in £
Costs incurred in the start-up of the business
Following are the tables which will show the cost which will be incurred on the start-up of this
business
Expenses in the
start-ups
Legal £500
Brochures £600
Insurance £700
Consultants £500
Stationary £500
Rent £5000
Equipment 0
Other 0
Total £7800

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Start-up assets
CASH
REQUIREMENT
£50,000
Inventory £1500
Other 0
Long term assets £5,000
Total assets £5,6500
Total requirement £6,4300
Funding for the start-up
Expenses to funds £7800
Assets to funds £5,6500
Total requirements of funds £6,4300
Assets
Non cash assets £6500
Cash requirement £50,000
Additional cash 0

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Cash balance on the starting
date
£50,000
Total assets £56,500
Services offered by the company
The company shall offer a comprehensive exterior and interior service to residential as well as
commercial markets. The company shall be offering paintings made on the canvas and the
handmade paintings for decoration purposes. The paintings taken from the artists shall be
displayed by the company in its art gallery and will be preserved. There shall be a high level of
customization in every services provided by the company. Prices of each service shall be
determined by the scope of the undertaken project, wear and tear of equipment, materials
requirements and the needed profit margin.
Painting industry
The painting industry of the local region is very competitive as the barriers to entry are very low
which has allowed for many small enterprises to enter into the business. It is easier to open up an
art gallery as the start-up cost and the operating costs are low. Moreover, the prices of the
paintings is also not fixed and it can be very high depending upon the creativity in the art work.
However, businesses have been suffering because they have not been able to deliver the services
in a timely manner and also the quality of services are not of optimum level. This has reduced
the level of customer satisfaction. Hence, the company will focus in this lacuna of the industry
and shall try to exploit it for getting increased profit margins and also significant share in the
market.
Creating value for the customers
The services offered by the company are unique as the best painters and artists shall be hired to
complete the jobs asked by the client in a timely manner. Also work of commercial artists shall
be taken for exhibition in the art gallery. It is also proposed to assign a project manager for each
project which is undertaken by the company. As he will monitor all the activities of the project
and ensure high quality of the services being delivered and also make it available to the
customers within time

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The customer are seeking functional and intellectual jobs from the company as the services
related to art work and painting is provided. The company aims to provide the best services by
means of proper scheduling, good project management and greater employee alignment to the
jobs. The company aims to use the best communication technology to be used between the
suppliers, foreman, personnel, project manager and the customers.
The competing businesses are unable to provide quality services to the customers and in a timely
manner therefore there is problem of project management and proper scheduling. The company
aims to address this problem in the industry. The customers will be able to make savings in the
form of money and time as prices of the services of the company will be lower in the initial
years. As the customers in these two segment are looking for higher quality, timely delivery but
the price is not a deterrant. The services of the company are aimed at reducing the customer pain
by providing superior quality services in the designated time.
Competitive advantage and its sustenance
The company is positioned in a highly competitive market because of many small companies
operating. The barriers of entry are low which has allowed business to enter in the industry. The
competitive advantage of company is its proper scheduling of the projects which are undertaken
by it. Also with the help of separate project manager for each project the quality of the services
being delivered are also ensured to be of high level. The company shall operate with an up-to-
date communication technology to allow efficient communication between project managers,
suppliers, painters, commercial artists and customers. This will help in timely completion of the
project which the competitors are unable to do effectively. Another big advantage is the location
of this art gallery which is central in location and thus it is able to attract people. And therefore
this will become the competitive advantage for the company and with proper scheduling,
effective communication, central location and project management the company has aimed to
sustain it.

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Marketing of the services
The marketing of the services given by the company shall be done on the basis of segmentation,
targeting and positioning.
Segmentation- the segmentation of the market is essential for crafting marketing strategies to
effectively reach the target customers according to Lynn, M. (2011). The market is segmented on
the basis of purpose of the users, the market is divided into corporate and residential community.
The aim of the company is to increase its business in the residential market segment as it
generates more revenue in comparison to the corporate community. Also this segment is
profitable from the fact that there is less amount of variable costs associated with these services.
Although the residential market is the cash cow for the company which shall be used for
generating regular cash.
During the first year of the establishment it is aimed to have 40% of the corporate contracts and
50% of the residential contracts of paintings and rest 10% is for other services. However, at the
end of three years it is aimed to increase the percentage of residential contracts to 65%, corporate
to 35% and others will be 5%.
market segmentation
residential community corporate community others
Target customers- identification of the target customers is necessary for the business because
only then it can devise the channels to reach and also create a value proposition for them as

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suggested by Larsen, N. (2010). The Company will focus on their target customers in the
selected market segments. The target customers shall be those who want high quality of services
from the company and in a timely manner. Such customers can be easily sought in the
professional area as in comparison to residential community.
The target market for this art gallery will be the community which is living nearby and are at a
distance of 30 minutes’ drive from the gallery. The other target market is the corporate sector
located nearby in the city. The community has all types of people and have different
backgrounds. The financial position of the people in the community is also strong and the
monthly income £23, 234 as per the data given in Total jobs (n.d.).
Some of the identified target customers in the selected market segments are-
• Corporate Executives
• Business People
• Art loving middle aged people
• Event planners
• Government institutions which purchase paintings for display at their institutions.
Positioning - Fahy, J., & Jobber, D. (2015), noted that it determines how a service or a product is
positioned in the minds of the customers and how they are able to differentiate it from the
competitors’ products. Both the positioning statements and the value proposition statements are
used for the marketing strategies. The positioning statements assists the customers in
differentiating the products from other competitors while the value proposition statements
positioned the products or the services in the minds of the customers.
Value proposition statement
The value proposition statement of the company is as follows:
For the corporate and residential community which care about high quality and timely delivery
our services of artistic painting provides the services that are of top quality and delivered within
the deadline.

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Value proposition canvas
The value proposition design and canvas are used for creating value for the customers as it
enables a company to focus on the pains and gains of the customers which are then used for
crafting the value proposition for the customers as suggested by Osterwalder, A., et al. (2014).
The value proposition canvas is shown above where the customer segment of residential and
commercial buildings are taken. This canvas shows the pain and gain of the customers according
to Pokorná, J., et al (2015). The customer pain in this industry is the poor quality and delayed
services being given by the most of the companies. The company has aimed to offer functional
and intellectual jobs to the customers and thereby provide a higher quality service at a reduced
cost and within time.
Marketing strategy
The marketing strategy is the plan of the company to reach the people and then turn them into
customers according to Perreault, W. D., et al. (2011). It consists of the following elements for
this company-
Promotion- modest marketing tools shall be used in the initial year of the company and this shall
be through word-of-mouth, referrals, ads in the yellow pages and mailers. During the third year
with the increase in the revenue, an aggressive marketing program shall be adopted by the
functional and intellectual- paintings and
visual artspains- poor quality and delayed services
gains-time, money and quality

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company. And in this the art gallery shall be promoted on the TV billboard, internet, social
media and other platforms for creating a greater awareness about its products.
Pricing strategy- it shall depend on the materials, time and level of expertise needed by the
customers. Then a 5% to 10% profit margin shall be added to arrive at the final price of the
services offered by the company. For the first two years the profit margin shall be lower at 5% so
as to gain more paintings contracts and establish itself in the industry.
Sales strategy- the main income of the company shall be derived from the services provided by
it to the customers in the corporate and residential community market segment.
Sales forecast
On the critical examination of the industry the following sales forecast has been found for this
company.
• First Fiscal Year: £300,000
• Second Fiscal Year: £400,000
• Third Fiscal Year: £500,000
Sales
forecast
year 1 year 2 year 3
0
100000
200000
300000
400000
500000
600000
Chart Title
residential corporates

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Market segment Year 1 Year 2 Year 3
Residential £140,000.00 £220,000.00 £310,000.00
Corporate £160,000.00 £180,000.00 £190,000.00
Business model canvas
The business model canvas is set of nine building blocks which shows the different parts in the
business on the same canvas or paper and thereby helps the managers and the owners to craft
future strategies. The business model increases visibility of the businesses and thus enable better
management of the activities and resources. it is used by many companies for imparting
efficiency in their business processes like General Electric, P&G, Google, Nestle etc for their
existing and new businesses in an objective and a structured manner as suggested by (Onken, M.,
& Campeau, D. 2016). The fact that it can be displayed on a single paper facilitates the crafting
of strategies for the company as it provides an overview of the customer offerings, markets,
finances and the infrastructure according to Webb, (2014). The business model canvas was given
by Osterwalder, A. and Pigneur Y. (2010).
Figure- Business Model Canvas
Source-https://www.thestrategygroup.com.au/business-model-canvas/

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Business model canvas for the company
For the Fine Art Gallery Ltd Company on the application of the business model canvas the
following areas have been highlighted under the nine building blocks.
1. Customer segments: The customers of the company shall be in the market segment of
residential and commercial building spaces. The customers will be mainly corporate executives,
event planners and people from nearby residential community.
2. Value proposition: Their services are of high quality and are to be delivered in time so as to
reduce the customer pain of time and quality.
3. Channels: The company website and social media shall also be used for attracting customers
to the art gallery. Apart from it the company also intend to reach their customers through digital
and print media. The company shall also provide website and telephone assistance to their
customers.
4. Customer relationships: the company aims to increase brand awareness in the second and
third year. Also regular recommendations and feedbacks shall be taken from the customers to
bring about improvement in the services in order to establish a strong relationship with the
customers.
5. Revenue streams: their main revenue streams is from the services rendered to the residential
community and corporates and also through the retail of paintings and visual art work.
6. Key resources: the company has one rental suite in the city which has the offices and
workspaces for the artists. The skills of the personnel are the main resources for the company as
the services offered by the company has an intellectual content. Apart from it the resources of the
company are the raw materials, electricity, studio space, print workshops, Wi-Fi, cars, office
space and telephone lines.
7. Key activities: its key activities are painting on canvas and also handmade paintings. The
activities of the company shall also span to research and development which shall be done by
giving training to the staff. In the second and third year of the business the company shall also
provide advance services of photography and videography. Other key activities are related to the

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administration of the company like paperwork, emails, reception etc. Another important activity
of the company quality control and advertising for the promotion of the services of the company.
8. Key partnerships: the company shall have key partnership with accountants, funding bodies,
photographers, event planners, wedding planners, interior designers and journalists.
9. Cost structure: the primary cost of the company is that of skilled painters and artists who
shall be providing their creative skills for the company. Other costs are related to the personnel,
marketing and administration of the company. Some minor cost shall be incurred from the
logistics and contract production costs, taxes, research and development and staff compensation.
Relations between the nine building blocks
The above nine elements shows a complete view of the company’s operations. The revenue
generation and the value creation across the different blocks of the canvas. According to
Hossain, (2014), this business models facilitates an easier implementation of the innovative
measures which can create an influence on the business operations. The value propositions.
Customer segments, customer relations, revenue streams are depended on each other for
providing best customer offerings. The business operations will come to a halt if even a single
block is removed or fails to perform properly. Therefore, it is important to ensure that all the
blocks in the canvas are functioning properly and thus the efficiency of the business can be
enhanced.
Conclusion
It is thus concluded that company needs to focus on its target customers in the residential and
commercial buildings market segments. The focus on the residential community will be
increased slowly as this segment offers better revenue generation. The corporate market segment
is cash cow for the company and it needs to maintain its focus on this segment for generating a
regular stream of income. The given plan for the enterprise development in the city is also to be
implemented as per the legal requirements of the country to carry out the different operations of
the company. Thus, with an effective development plan the company can establish itself in the
industry and gain a significant market share in the targeted market segments.

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References
Business Model Canvas. Retrieved from https://www.thestrategygroup.com.au/business-model-
canvas/
Fahy, J., & Jobber, D. (2015). Foundations of marketing.
Hossain, M. (2014). Business Development Model of Canvas: The 9 Building Block Approach.
Retrieved from https://iammoulude.wordpress.com/2014/07/02/business-development-
model-of-canvas-the-9-building-block-approach/
Larsen, N. (2010). Market Segmentation. Aarhus School of Business.
Lynn, M. (2011). Segmenting and targeting your market: Strategies and limitations.
Milgram, L., Spector, A., & Treger, M. (2010). Managing smart. Routledge.
Onken, M., & Campeau, D. (2016). Lean startups: Using the business model canvas. Journal of
Case Studies, 34(1), 95-101.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How
to create products and services customers want. John Wiley & Sons.
Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing
strategy planning approach. New York, NY: McGraw-Hill Irwin.
Pokorná, J., Pilař, L., Balcarová, T., & Sergeeva, I. (2015). Value Proposition Canvas:
Identification of Pains, Gains and Customer Jobs at Farmers' Markets. AGRIS on-line
Papers in Economics and Informatics, 7(665-2016-45080), 123.
Total jobs (n.d.). https://www.totaljobs.com/salary-checker/average-general-salary-leicester