Business Plan - Art Marketing

This document is a business plan for art marketing, specifically targeting Chinese artists who want to gain international recognition. It provides an overview of the problem, solution, market analysis, target market, competition, and financial forecast. The plan outlines the services offered by Michianna & Co., a company that specializes in customized marketing and communication services for artists. The document also highlights the advantages of Michianna & Co. over its competitors and includes a financial forecast for the business.

Sotheby's Institute of Art
Digital Commons @ SIA
MA Projects Student Scholarship and Creative Work
2016
Business Plan - Art Marketing
Michelle Yu
Sotheby's Institute of Art, [e-mail]
Follow this and additional works at: https://digitalcommons.sia.edu/stu_proj
Part of the Advertising and Promotion Management Commons, Entrepreneurial and Small
Business Operations Commons, Fine Arts Commons, and the Marketing Commons
Recommended Citation

C O N F I D E N T I A L
Michianna & Co.
B R I N G Y O U R A R T A N D C U L T U R E O U T
Business Plan
Prepared December 2016

Michianna & Co. i
Table of Contents
Executive Summary.................................................................................1
Opportunity ............................................................................................................................................................1
Forecast ....................................................................................................................................................................3
Opportunity ...............................................................................................5
Market Analysis .....................................................................................................................................................5
Target Market.........................................................................................................................................................6
Competition............................................................................................................................................................7
Product Description.............................................................................................................................................8
Company...................................................................................................11
Company Description........................................................................................................................................11
Overview ................................................................................................................................................................11
Team .......................................................................................................................................................................12
Execution..................................................................................................16
Marketing & Sales................................................................................................................................................16
Operations ............................................................................................................................................................19
Milestones & Metrics ..........................................................................................................................................21
Financial Plan .........................................................................................23
Forecast .................................................................................................................................................................23
Financing ..............................................................................................................................................................25
Statements ............................................................................................................................................................26
Appendix ..................................................................................................29
Profit and Loss Statement ................................................................................................................................29
Balance Sheet.......................................................................................................................................................33
Cash Flow Statement .........................................................................................................................................38

Michianna & Co. Page 1 of 42
Executive Summary
Opportunity
Problem
Chinese art market is growing fast than ever, but it is still very unregulated with artists and art
professionals lacking in knowledge of advanced art market, like the Western market.
Specifically, artists are in needs of the knowledge of the art market as a whole, the Western art
market, the capability of promoting themselves and recognition from the international market.
Getting famed and famous in the Chinese is not enough for a fast-rotating world nowadays.
Solution
Michianna & Co. offers customized, professional marketing and communication services to
artists that will lead to the development of the Chinese contemporary art industry. We
introduce the New York and the rest of the Western market more works from Chinese
contemporary artists, and at the same time, educate the culture. On the other hand, we help
Chinese artists get recognition in the foreign market. We have secured some connections that
will help us accomplish our goals, and are constantly developing new resources.
Market
Within the services provided and target audience set, we are well situated to serve our target
audience: non top-tier Chinese artists who don't have Western gallery representation but in

Michianna & Co. Page 2 of 42
more than enough. Factor in the fast growing art industry in both China and New York, and
the economic growth in China, the complementary rising popularity of customized marketing
service for artists going internationally, we see a great opportunity here.
Competition
We have a unique offering, since no other marketing/PR agency in the art industry provides
the same service, despite the facts that there are more bigger-scaled art marketing companies.
There are cultural-promoting boutique marketing firms, but they do not target on Chinese
artists, but more cultural institutions. Other marketing/PR agencies also serve more
institutional needs. We differentiate ourselves by offering more specific and more unique
services than other companies in New York, more professional and knowledgeable than local
marketing firms in China, and less expensive and more responsible experience than big
companies.
Why Us?
Our Co-founder team is a great one-two punch of Chinese and New York art scene and savvy
business sense. Michelle Yu got her Master degree of Art Business at the Sotheby's Institute of
Art and worked in different top New York art institutions, like Christie's and Guggenheim
Museum. For this unique idea, she had this thought through her experiences and observation
in New York and got agreement from both artists and gallerists. Gianna Guo has a Master
degree from the New York University. Her family has a gallery in China for more than two
decades. Both of her parents are deeply involved in the Chinese art scene and are great friends
with the now-top-tier artists back when they were all students. Her mother is an art critic in

Michianna & Co. Page 3 of 42
market. Our ability and experiences on understanding both markets and speaking both
languages can help us to build a thriving new business.
Forecast
Forecast
We are projecting sales of $60,000 in year 1 and $100,000 in year 2 with a profit margin of 90%.
That assumes we can serve 5 artists the first year and around 7 the second year. Our co-
founders will draw only minimal salaries when needed, so we can reinvest our profits into
growing the business as both of us have other jobs too. Dinner and meeting with clients and
partners will be our biggest expenses, followed by smaller marketing advertisement. Additional
fees, like exhibition space rental and setup will be for the artists themselves. If we decide to
pursue events, the cost of catering and space rental will still be on artists. For now, though, we
are focused on making reasonable profit and grow.
Financial Highlights by Year

Michianna & Co. Page 4 of 42
Financing Needed
We are financing our business ourselves with $2,000 in investment from our co-founders. No
loan or other source of financing is used or needed currently. Since we are very low-cost with
no rental office space, no inventory or equipment, and minimal salary for the three partners,
the upfront expense is very minimal. Our investment could cover the upfront $580 expense
(website building, company registration), and we will design the company website on our own.

Michianna & Co. Page 5 of 42
Opportunity
Market Analysis
Problem Worth Solving
The art world is more and more internationally than ever before. Every day, there are foreign
artists having exhibitions in other countries to promote their works and cultures. The demand
of getting international recognition for artists will only go higher and higher. For all that
demand, though, there is no company specialized in building an easier path for artists than
artists themselves, and most artists are not good at doing business, despite how strong of the
voice their works are.
Lack of help is especially critical to Chinese artists' career development these days. Most
contemporary artists are in their 40s and 50s, and they can't speak fluent second language, like
English, like most younger generations. Nowadays, the art world is still divided into Easter
and Western, and Western is the more advanced and developed one. In order for a
Chinese artist to get international recognition, one must go outside his or her country and set
up reputation in the Western art world, which also means US (New York) and Europe. We are
convinced that there is a great market opportunity here for an marketing offering
approachable cross-culture promotions in New York to Chinese artists.
Our Solution
We recently launched a series of service offering to Chinese artists, including building

Michianna & Co. Page 6 of 42
buying. In the world of connections, this could bring us the specialty and resources we need.
Another founder, who is our representative in China, Catherine Qiao, has experiences in both
New York art scene and Chinese marketing industry. She not only has resources in marketing,
but also luxury industry in China, which is always related to the art industry.
Michianna & Co. has offices in both New York and Beijing, the art capitals in both countries.
This will allow us to have more convenient communication with our clients for their ongoing
needs and projects. The three founders all have backgrounds in both New York and Beijing art
industries, and are totally capable of understanding both countries. On top of that, each
founder has its own specialty in the art world, which can bring the company on a more diverse
level.
Target Market
We expect our current market segment to be Chinese artists who live and work in China with
no Western gallery representation and has an eager to put his or her works in the New York
market. These artists should have strong works that represent the Chinese culture, but also
lacks the ability to communicate in English, or does not have any experience or understanding
of the Western art market.
According to our research, only a small segment, less than 10%, of Chinese artists are either
represented by New York galleries, or have had exhibitions in New York before. Only less than
50 artists are represented by galleries in Chelsea and Upper East Side, and the rest had just
small-scale exhibitions in the Western market. It is not possible to do a complete survey, but we

Michianna & Co. Page 7 of 42
Westerns, but there are still hundreds of thousands of contemporary artists actively involved in
making and selling works.
After conversations with artists in China, especially those who have been in this world for
more than 20 years and have a voice in the market, we realized there is a strong need for artists
to get international recognition, but almost every of them does not know how to do so and has
never been offered services or help. These artists are the real representation of the Chinese art,
and also our target audience.
Competition
Current Alternatives
Based on the services we provide, there is no current company can be our competitor.
Michianna & Co. can be categorized into art marketing industry, but we are also different from
traditional marketing/PR company, since we only provide artists the connections they need in
a foreign market. We do not provide media broadcast like other traditional marketing
companies do. In this case, the service we provide is unique. On the other hand, there are
around five companies and some boutique firms provide marketing services specifically in the
art field, but none of them targets in Chinese artist or cross-culture communication. Under
these circumstances, we do not have direct competitors in this industry.
Our Advantages
Our knowledge in both markets and the resources in them offers a unique combination of
advantages that is unmatched by our competitors. Compared to the other traditional

Michianna & Co. Page 8 of 42
take massive amount of cases at the same time), and a strong focus on Chinese artists'
development in the New York art market. Our service is also fresh, less risky and more suitable
to our target audience than other companies.
Compared to the traditional marketing companies, like Fitz & Co. and Sutton, there really is just
no comparison. Our service has different target audience and the service package essentially is
different. We want to work on just a narrow segment of the foreign market, when they are
focusing on all the cultural institutions in the market.
Against a non-regulated company with a lot of risks, we offer high-end and professional
customized services that serves a boutique marketing company. We do not want the
company's reputation to influence artists' performances, because we should not be a tag for
any artist. In this case, different than many companies, we only serve as a helper to build the
bridge and let the artists outshine by doing minimal advertisement for ourselves.
Product Description
Exhibition Setup:
We help artists set up exhibitions in the Western art market, mainly New York. First, we will talk
representation with galleries that suit the artist's style. If gallery representation is not ideal at
the moment, we will set up exhibitions in either galleries or private spaces that will attract
traffic and help artists have foreign exhibition history.

Michianna & Co. Page 9 of 42
Michianna & Co. possess unrivalled and longstanding network with both US and China media
sources. We can help the artists secure and handle all their media needs.
Except important press release, we also offer press campaigns, press development, press
material, journalist briefings, photographer relations and etc. We understand translation is
critical part of delivering artists' message in another country, our team of professional
translator in art can help you gain the media recognition you should.
VIP Connection:
Michianna & Co. believes in the importance of strong network. We can help artists to ensure
their existing network by making the right move, proposing the right introduction. In our
current world, a world of mouth, Michianna & Co. can strengthen ours and the
artists' connections and expand more. Our expertise in both cultures’ etiquette can help
them stay connected with their audience without miscommunication.
We understand some connections are more important than others, that’s why our service
includes VIP relation. By curating artists' network in both countries, they can have more
engagement with their VIPs. We offer VIP exclusive concierge consulting, engagement
development, and event strategies. We work closely with artists to ensure we understand
them the most and offer their clients the best service.

Michianna & Co. Page 10 of 42
Events are the heart of showing artists themselves and their works and gain engagement. We
can help them freshen their old audience and bring more new faces at the same time.
From luncheon to major gala, casual gathering to formal reception, we work closely with
artists to offer advice and planning strategy, making a success of their event(s). In this process,
we manage every aspect of the event, from flower arrangement to client invitation, so they can
worry less on a seamlessly day.
Partnership Consultancy:
Through our extensive network in the art world, we are able to offer you advice on partnership
with fitted institutions in both US and China.
Michianna & Co. makes sure the smooth introduction and running of the cross-cultural
partnership and help artists accomplish the agreement of delivery and cooperation.

Michianna & Co. Page 11 of 42
Company
Company Description
Michianna & Co. is a global communication, marketing, brand consultancy, audience
development, and events planning firm specializing in arts, design and architecture. Founded
in 2016 in New York, with an international network, the firm represents a diverse, global roster
of clients including artists, designers, architects, developers, galleries, museums, art fairs, and
cultural organizations, as well as celebrated corporate brands that support the arts, design and
architecture.
We offer integrated international print and online media relations campaigns, public relations
and marketing campaigns that include media relations, identification of media strategy,
strategic brand, creative content development, thought leadership, influencer engagement,
audience development initiatives, and innovative events.
Overview
Michianna & Co, is registered as a C corporation. Our two founders, Michelle Yu and Gianna
Guo, are co-owners with equal shares. Michelle serves as the president of the company, while
Gianna is the secretary. Catherine Qiao does not have any share of the company at this point,
and serves as the representative in China. No outside investors are involved at this point,
though there might be an opportunity for that as the business grows.

Michianna & Co. Page 12 of 42
Team
Management Team
Our business is a collaboration between two good friends in the art world: Michelle Yu and
Gianna Guo. We haven't bothered with job titled, but Michelle basically runs the administration
of the company and client services, and Gianna does almost reaching out outside resources
and making connections.
Michelle Yu is a private art advisor and founder of Michelle Yu Art Advisory and the North
America Chief Editor at Collection/Auction Magazine. Native to China and living in New York
City, she has worked with clients from both sides of the world to develop modern and
contemporary art collection for private residences.
Michelle received a BA in Fine Art and BBA in Finance from University of Iowa. Following her
undergraduate studies, she finished the Global Emerging Leaders in Family Enterprise set of
courses at Cornell University Johnson Graduate School of Business. She is also pursing an Art
Business master degree from Sotheby’s Institute of Art in New York, specializing in the current
operation and market of the art industry. She has worked in various prominent art institutes,
including Christie's Auction, Solomon R. Guggenheim Museum, Museum of Art and Design
and Kim Heirston Art Advisory, leading her to be very familiar to the art world and professional
in the artwork analysis. At the time, Christie's is one of the two most prestigious art auction
houses in the world; Guggenheim is the world-top museum in modern and contemporary art.
At Kim Heirston, a boutique NYC Art Advisory, Michelle engaged closely with million-dollar

Michianna & Co. Page 13 of 42
has been a key player in the magazine’s development. Yu, using her own experiences and
profession, introduced the unfamiliar US and European art markets to thousands of readers,
and helped many build their broad collections.
Michelle continues to advise a broad spectrum of art buying, including art investment. She
travels extensively to international art fairs in such destinations as London, Maastricht
(Netherlands), Basel (Switzerland), Hong Kong, Miami, as well as to major exhibitions including
Art Basel, TEFAF, Frieze. She also holds close relationship with major auction houses and
galleries in both New York and Beijing.
Gianna Guo is a private art advisor and founder of Pegasus Art Advisory. She has worked
within the international art world for over 4 years providing portfolio management to both
private and corporate clients from the United States and Asia. She has been engaged in the
acquisition, installation and marketing of post-war and contemporary art for private
residences, corporate headquarters, and foundations.
Gianna began her career at the age of 17 consigning and buying artworks for her family-owned
auction house and gallery in China. In the meantime, with a strong interest in science and
technology, Gianna received a BA in Industrial Engineering from the State University of New
York at Buffalo. After holding junior engineering positions in technology companies for
several years, Gianna decided to take over her family business and started to work as a private
art advisor. She has worked with clients worldwide to develop post-war and contemporary art
collections including Pablo Picasso, Claude Monet, Andy Warhol, Zhang Daqian, and Yayoi
Kusama. Gianna also represents artists from China and United States whose works were

Michianna & Co. Page 14 of 42
Gianna is a member of Young Leadership Council for annual gala and after-party of Rubin
Museum of Art. She is also a board member of COCA Art New York, a non-profit art
organization committed to serve art collaboration. Gianna brought her strong relationship
with the art community to the organization and helped coordinate events including ones
hosted at the United Nations and Asia Society. These events drew a lot of attention and were
covered by Vogue, Sohu News, Phoenix News and other newspapers. With a passion for charity
and strong skills for event planning, she helped organize silent auctions for the China Arts
Foundation for their annual gala in 2015 with guests including Jon Huntsman, Weihua Ma,
and Qiyue Zhang. Gianna is also actively engaged with new media technology art. She has
worked as an operation director for “Hello Kongzi in New York” program in 2016, a cultural
reconstruction project which was hosted worldwide. Teamed up with New York avant-garde
media art studio and getting support from Chinese corporations, this project was hosted at the
Grand Central and Times Square. It featured VR and the newest art technology of 3D Mapping,
drawing a big attention from New York general public. The event was reported on New York
newspapers. It also appeared on the digital screens of Times Square and the cover of China
Daily.
Advisors
The marketing business can be tough to figure out, especially in the early days when you are
wading through all of the connections reach out. Luckily for us, we have a friend, Catherin
Qiao, who is also the company's China representative who is currently in the marketing
industry in China. With her study and early experiences in New York's art scene and her
profession now in the PR industry, she has been openly supportive from the start and a huge

Michianna & Co. Page 15 of 42
On the business side, Michelle is getting regular advice and counseling from her husband, who
holds a certificate degree at Yale Business School in Digital Age Marketing, and has worked
with different marketing companies. Michelle also gets constant feedback and advice from her
friend Jealena, who is a startup consultant in California, on future company path and future
funding.
For now, Michelle is keeping the books herself, using an online software. Before tax time,
though, we'd like to find a good accountant with a strong background in small-business
consulting.

Michianna & Co. Page 16 of 42
Execution
Marketing & Sales
Marketing Plan
Although we already got two business opportunities from friends the past two months since
we registered the company, the two co-founders Michelle Yu and Gianna Guo are working
hard to get the word out in the Chinese contemporary artists circle. We have solid connections
with a group of friends who are in the Chinese art market. Our reputation from these two cases
are fresh and great, and we are asking the current customers to introduce more potential
clients. We have an email signup form on our website and social media pages, and so far we
have more than 100 subscribers and are adding about 100 per month.
This month, we started working with a Beijing-based gallerist/artist who is deeply involved in
the Chinese contemporary art market and good friends with many top-tier artists like Fang
Lijun,as they went to the same school with many other great artists. He also has a dream of
promoting Chinese art into the Western market and would like to introduce artists to us. The
share of profit is still under discussion. We believe this is a great opportunity for us, since
Catherine Qiao is more into the marketing industry, and an extra help in the artist circle can be
valuable for us.
Currently, we are still using the word-of-mouth to market our business, and we don't believe
our marketing strategy will go too big or spread. Our target audience is a very small segment of
the market, so it is not necessary to do big advertisement. We also want to help the artists and

Michianna & Co. Page 17 of 42
Sales Plan
Our sales goal for now is only 5 artists per year. Since we don't have a lot of expense upfront,
our profit will expect to grow as our client number grows.
We are going to use inbound sales method, the modern methodology for sales teams,
companies base their sales process on clients actions, they automatically capture seller and
buyer data to monitor the pipeline and coach salespeople, and they align sales and marketing,
creating a seamless experience for clients. Inbound sales helps clients at each stage of the
buyer process: awareness, consideration, and decision. Inbound sales teams help the client
become aware of potential problems or opportunities, discover strategies to solve the buyer’s
problems, evaluate whether the salesperson can help the cleint with the problem, and then
purchase the solution. They are helpful and trustworthy, creating partnerships rather than
power struggles.

Michianna & Co. Page 18 of 42
ourselves into clients' shoes, so we can better understand what do they really need and how to
provide better services. Our sale activities are listed below:
• Prospect qualification: Outline what criteria a prospect meets in order to qualify them
as a high-probability potential customer. In this case, it needs to be Chinese
contemporary artists who expressed that they have a need to go internationally. Also,
potential clients need to have financial backup from themselves from foundations and
companies.
• Sales presentation: Inbound sales teams should lead with a tailored message to the
buyer from their specific context or point-of-view rather than a generic elevator pitch.
Since our service is customized, Michelle and Gianna will be in contact with the client
and make sure every step goes seamlessly.
• Objections: It is very hard for clients to evaluate our service, because there is no set
criteria. We will make sure to educate clients first to let them have realistic expectations
before providing any service.
• Closing techniques Contract is extremely important, because there is case and past
experiences on how the "paying" process has problems, either clients did not want to
pay, or did not want to pay at a specific time. We will make sure to enclose these
information before providing service. Normally, we need 50% of the total service fee up
front, and upon finish, we collect the rest 50% within a month of our last service
happened.
• Timeline: First, we reach out to clients and talk about services we will provide. Second,

Michianna & Co. Page 19 of 42
We accept payments by Check, Visa and MasterCard. We also have a small till to accept cash
payments and make change. Cash will be deposited into the company's Chase account.
Operations
Locations & Facilities
We do not need an office space. Currently, the address of our company is Gianna Guo's
residential address, which can also been seen as work-at-home residency. We we need to meet
clients, we always arrange meetings in nice lounge like Baccarat Hotel. So far, we haven't seen
a problem with this arrangement. This also apply to our China representative.
In the future, if we do see a need of having a physical space when we have more employees, we
will consider WeWork or other co-working space to be cost-efficient.
Partners & Resources
Although the co-founders have strong background in both art and finance, we also have the
benefit of longtime relationship with some CPA accountant that provide strategic advice and
consulting. On top of that, we also have personal relationship with marketing professionals
and startup professionals to give get professional advice from.
Catherine Qiao is the China representative, as well as the partner of the company. She will not
only provide strategic marketing advice to the company, and also ability to set up relationships
and communications with Chinese artists who are in China currently.
Risks & Mitigation

Michianna & Co. Page 20 of 42
two years. That said, with the popularity of Chinese culture and strong economic force and the
way that the benefits of economy are aligned with key market trends (the desire for bigger
names on resume), the outlook for well-run marketing service provider has never been better.
We just need to know and manage our risks.
Through our research and early experience, we have identified two risks. The first is payment
failure. Our ability to make money is dependent on clients who are capable of paying the
service fee. Collecting payment is less risky (with contracts) than not meeting clients'
expectations. If what we provide is not the same as what the client wants, then it's highly
possibly the client do not want to pay our service fee; that's also understandable. This is a very
common problem to many service providers, though, and it can be expensive to fix and
compound the cost. Ideally, we would educate our clients first, as they are not familiar with the
foreign market so they could have overly high expectations, and that's also why they need us.
Based on different backgrounds of different artists, we will have customized services listed to
match what could be done. In this case, even our service is not what the client expected, we
could still prove that we provided the services in the contract.
The second risk is partnership failure. In order to provide our services to promote Chinese
artists, we need to work with different companies, vendors, galleries and people. During this
process, if the artists and works we provided are not what they expected, or the execution
process is not smooth as we planned, we might lose our partnership with these companies. In a
small world that focuses on connection, that could hurt both our reputation and future
business.

Michianna & Co. Page 21 of 42
Milestones & Metrics
Milestones Table
Milestone Due Date Who's Responsible Details
Service List January 31, 2017 Michelle Yu and Gianna
Guo
Using a month, we want to
refine our service list by
re-researching our clients'
needs. Our current
services are acceptable,
but we would want to
refine it by adding and
deleting some of them.
Social Media Followers July 31, 2017 Michelle Yu Giving us another eight
months, we would want
our social media followers
to grow to 10k. Michelle
posts Chinese artists-
related content on
Instagram and Wechat on
a daily base, so these
could be means for us to
promote our artists.
Profit December 14, 2017 Michelle Yu and Gianna
Guo
By the end of 2017, which
also means our company
has run for cover a year,
we would like our profit to
exceeds 60,000USD. For
a low-cost company like
us, it is approachable
because for this goal, it
would mean 5 or less
clients
Audience Base December 14, 2017 Michelle Yu, Gianna Guo
and Catherine Qiao
We would want to expand
our potential audience
base to 100 for the next
year. Potential audience
means serious artists
whose works are worth
considering of and also
have the wiliness to take
our services.

Michianna & Co. Page 22 of 42
Staff December 31, 2018 Michelle Yu and Gianna
Guo
For another two years,
with the growth of the
company, we will expect
to hire another staff. This
new member can be in
charge of the
administration.
Expansion December 31, 2019 Michelle Yu and Gianna
Guo
For over three years, we
would like our company to
grow and expand to a
level of a real
structuralized company,
which means have a
physical office location.
This could mean a renal
space or co-working
space.
Key Metrics
Our focus right now is on the most basic metrics: monthly revenue, annual cost, annual profit
and client base. We are doing OK so far by keeping the cost as low as possible, sometimes
nearly none, but it is critical that we keep a close eye on our growth of profit as we scale up and
think about funding.

Michianna & Co. Page 23 of 42
Financial Plan
Forecast
Key Assumptions
We expect to serve an average of 5 artists per year during the first year and increase to 8 in year
2. We craft our services by different clients' needs, so each project is different. We want the
outcomes to be as satisfying and influential as possible, so we'll figure out a plan to target to
different artists to avoid repeated appearance. Spring and Fall should be more busy than
Summer and Winter since it is the norm of the art world and we fully follow and respect that.
The average client's services should take 2 months and priced around $10,000. In year 2, we
will be adding more partnership with different organizations, and that's added services and
revenue.
In our first two years, we are projecting $60,000 and $100,000 in revenue with a 90% profit
margin. We expect dinner with clients and partners to be our top expense, as the exhibition
cost will be to the artists themselves. We will set limitation to the restaurants and cost to each
client meeting.

Michianna & Co. Page 24 of 42
Revenue by Month
Expenses by Month

Michianna & Co. Page 25 of 42
Net Profit (or Loss) by Year
Financing
Use of Funds
The biggest expense is the purchase and maintenance of our website. We paid $250 for the
website with our own url michiannaandco.com for a year subscription. We also paid $50 for
the company gmail account, which is @michiannaandco.com. These will be the annual
expense. So far, we have not spent anything on marketing advertisement. When the sales ramp
up, we plan to have cost on special events. We want to keep our cost as low as possible until we
start to make significant profit.
Sources of Funds
Because this is a startup small company, and we do not have much expense at front, we did not

Michianna & Co. Page 26 of 42
bootstrapping, keeping our cost and salaries low and reinvesting our profits in the business,
rather than taking on additional debt.
Statements
Projected Profit & Loss
FY2017 FY2018 FY2019
Revenue $58,100 $120,400 $167,000
Direct Costs
Gross Margin $58,100 $120,400 $167,000
Gross Margin % 100% 100% 100%
Operating Expenses
Salary $3,600 $4,320 $5,184
Employee Related Expenses $720 $864 $1,032
Website $250 $250 $250
Gmail $50 $50 $50
Company Registration $280
Client Meetings $3,486 $7,224 $10,020
Total Operating Expenses $8,386 $12,708 $16,536
Operating Income $49,714 $107,692 $150,464
Interest Incurred
Depreciation and Amortization
Income Taxes $9,943 $21,538 $30,093
Total Expenses $18,329 $34,246 $46,629
Net Profit $39,771 $86,154 $120,371
Net Profit / Sales 68% 72% 72%

Michianna & Co. Page 27 of 42
Projected Balance Sheet
FY2017 FY2018 FY2019
Cash $52,318 $151,532 $281,127
Accounts Receivable $3,240 $5,400 $4,924
Inventory
Other Current Assets
Total Current Assets $55,558 $156,932 $286,051
Long-Term Assets
Accumulated Depreciation
Total Long-Term Assets
Total Assets $55,558 $156,932 $286,051
Accounts Payable $44 $69 $62
Income Taxes Payable $9,943 $21,538 $30,093
Sales Taxes Payable $3,800 $7,400 $7,600
Short-Term Debt
Prepaid Revenue
Total Current Liabilities $13,787 $29,007 $37,755
Long-Term Debt
Total Liabilities $13,787 $29,007 $37,755
Paid-in Capital $2,000 $2,000 $2,000
Retained Earnings $39,771 $125,925
Earnings $39,771 $86,154 $120,371
Total Owner's Equity $41,771 $127,925 $248,296
Total Liabilities & Equity $55,558 $156,932 $286,051

Michianna & Co. Page 28 of 42
Projected Cash Flow Statement
FY2017 FY2018 FY2019
Net Cash Flow from Operations
Net Profit $39,771 $86,154 $120,371
Depreciation and Amortization
Change in Accounts Receivable ($3,240) ($2,160) $476
Change in Inventory
Change in Accounts Payable $44 $25 ($7)
Change in Income Tax Payable $9,943 $11,595 $8,555
Change in Sales Tax Payable $3,800 $3,600 $200
Change in Prepaid Revenue
Net Cash Flow from Operations $50,318 $99,214 $129,595
Investing & Financing
Assets Purchased or Sold
Investments Received $2,000
Change in Long-Term Debt
Change in Short-Term Debt
Dividends & Distributions
Net Cash Flow from Investing &
Financing $2,000
Cash at Beginning of Period $0 $52,318 $151,532
Net Change in Cash $52,318 $99,214 $129,595
Cash at End of Period $52,318 $151,532 $281,127

Michianna & Co. Page 29 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
Appendix
Profit and Loss Statement
Profit and Loss Statement (With Monthly Detail)
FY2017 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17
Revenue $6,000 $1,000 $6,000 $5,000 $5,000 $10,500 $2,000 $2,500 $5,800 $5,300 $9,000
Direct Costs
Gross Margin $6,000 $1,000 $6,000 $5,000 $5,000 $10,500 $2,000 $2,500 $5,800 $5,300 $9,000
Gross
Margin % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Operating
Expenses
Salary $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Employee
Related
Expenses
$60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60
Website $20 $20 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21
Gmail $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $5 $5
Company
Registration $280
Client
Meetings $360 $60 $360 $300 $300 $630 $120 $150 $348 $318 $540
Total
Operating
Expenses
$1,024 $444 $745 $685 $685 $385 $1,015 $505 $535 $733 $704 $926
Operating
Income $4,976 $556 $5,255 $4,315 $4,315 ($385) $9,485 $1,495 $1,965 $5,067 $4,596 $8,074
Interest Incurred

Michianna & Co. Page 30 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
Depreciation
and
Amortization
Income Taxes $995 $111 $1,051 $863 $863 ($77) $1,897 $299 $393 $1,014 $919 $1,615
Total
Expenses $2,019 $555 $1,796 $1,548 $1,548 $308 $2,912 $804 $928 $1,747 $1,623 $2,541
Net Profit $3,981 $445 $4,204 $3,452 $3,452 ($308) $7,588 $1,196 $1,572 $4,053 $3,677 $6,459
Net Profit /
Sales 66% 45% 70% 69% 69% 72% 60% 63% 70% 69% 72%

Michianna & Co. Page 31 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
FY2018 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18 May '18 Jun '18 Jul '18
Revenue $8,000 $6,500 $5,000 $6,700 $16,000 $5,000 $8,600 $18,500 $8,000 $12,800 $10,300 $15,000
Direct Costs
Gross Margin $8,000 $6,500 $5,000 $6,700 $16,000 $5,000 $8,600 $18,500 $8,000 $12,800 $10,300 $15,000
Gross
Margin % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Operating
Expenses
Salary $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360
Employee
Related
Expenses
$72 $72 $72 $72 $72 $72 $72 $72 $72 $72 $72 $72
Website $20 $20 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21
Gmail $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $5 $5
Company
Registration
Client
Meetings $480 $390 $300 $402 $960 $300 $516 $1,110 $480 $768 $618 $900
Total
Operating
Expenses
$936 $846 $757 $859 $1,417 $757 $973 $1,567 $937 $1,225 $1,076 $1,358
Operating
Income $7,064 $5,654 $4,243 $5,841 $14,583 $4,243 $7,627 $16,933 $7,063 $11,575 $9,224 $13,642
Interest Incurred
Depreciation
and
Amortization
Income Taxes $1,413 $1,130 $849 $1,168 $2,917 $848 $1,526 $3,386 $1,413 $2,315 $1,845 $2,728
Total
Expenses $2,349 $1,976 $1,606 $2,027 $4,334 $1,605 $2,499 $4,953 $2,350 $3,540 $2,921 $4,086
Net Profit $5,651 $4,524 $3,394 $4,673 $11,666 $3,395 $6,101 $13,547 $5,650 $9,260 $7,379 $10,914
Net Profit /
Sales 71% 70% 68% 70% 73% 68% 71% 73% 71% 72% 72% 73%

Michianna & Co. Page 32 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
FY2017 FY2018 FY2019
Revenue $58,100 $120,400 $167,000
Direct Costs
Gross Margin $58,100 $120,400 $167,000
Gross Margin % 100% 100% 100%
Operating Expenses
Salary $3,600 $4,320 $5,184
Employee Related Expenses $720 $864 $1,032
Website $250 $250 $250
Gmail $50 $50 $50
Company Registration $280
Client Meetings $3,486 $7,224 $10,020
Total Operating Expenses $8,386 $12,708 $16,536
Operating Income $49,714 $107,692 $150,464
Interest Incurred
Depreciation and Amortization
Income Taxes $9,943 $21,538 $30,093
Total Expenses $18,329 $34,246 $46,629
Net Profit $39,771 $86,154 $120,371
Net Profit / Sales 68% 72% 72%

Michianna & Co. Page 33 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
Balance Sheet
Balance Sheet (With Monthly Detail)
FY2017 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17
Cash $6,082 $8,439 $13,063 $16,331 $21,645 $23,029 $28,826 $33,559 $35,576 $38,032 $43,774 $52,319
Accounts
Receivable $2,160 $300 $2,160 $1,800 $1,800 $0 $3,750 $660 $810 $2,040 $1,890 $3,240
Inventory
Other Current
Assets
Total
Current
Assets
$8,242 $8,739 $15,223 $18,131 $23,445 $23,029 $32,576 $34,219 $36,386 $40,072 $45,664 $55,559
Long-Term
Assets
Accumulated
Depreciation
Total Long-
Term Assets
Total Assets $8,242 $8,739 $15,223 $18,131 $23,445 $23,029 $32,576 $34,219 $36,386 $40,072 $45,664 $55,559
Accounts
Payable $66 $7 $36 $29 $28 ($3) $59 $7 $9 $28 $24 $45
Income Taxes
Payable $995 $1,106 $2,157 $3,020 $3,883 $3,806 $5,703 $6,002 $6,395 $7,409 $8,328 $9,943
Sales Taxes
Payable $1,200 $1,200 $2,400 $1,000 $2,000 $2,000 $2,000 $2,200 $2,400 $1,000 $2,000 $3,800
Short-Term
Debt
Prepaid
Revenue
Total
Current
Liabilities
$2,261 $2,313 $4,593 $4,049 $5,911 $5,803 $7,762 $8,209 $8,804 $8,437 $10,352 $13,788
Long-Term Debt

Michianna & Co. Page 34 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
Total
Liabilities $2,261 $2,313 $4,593 $4,049 $5,911 $5,803 $7,762 $8,209 $8,804 $8,437 $10,352 $13,788
Paid-in Capital $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Retained
Earnings
Earnings $3,981 $4,426 $8,630 $12,082 $15,534 $15,226 $22,814 $24,010 $25,582 $29,635 $33,312 $39,771
Total
Owner's
Equity
$5,981 $6,426 $10,630 $14,082 $17,534 $17,226 $24,814 $26,010 $27,582 $31,635 $35,312 $41,771
Total
Liabilities &
Equity
$8,242 $8,739 $15,223 $18,131 $23,445 $23,029 $32,576 $34,219 $36,386 $40,072 $45,664 $55,559

Michianna & Co. Page 35 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
FY2018 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18 May '18 Jun '18 Jul '18
Cash $57,396 $64,610 $60,070 $63,430 $77,878 $87,014 $89,602 $106,484 $118,493 $124,496 $136,574 $151,533
Accounts
Receivable $2,820 $2,250 $1,680 $2,370 $5,760 $1,800 $3,060 $6,570 $2,760 $4,560 $3,690 $5,400
Inventory
Other Current
Assets
Total
Current
Assets
$60,216 $66,860 $61,750 $65,800 $83,638 $88,814 $92,662 $113,054 $121,253 $129,056 $140,264 $156,933
Long-Term
Assets
Accumulated
Depreciation
Total Long-
Term Assets
Total Assets $60,216 $66,860 $61,750 $65,800 $83,638 $88,814 $92,662 $113,054 $121,253 $129,056 $140,264 $156,933
Accounts
Payable $38 $28 $18 $27 $82 $15 $36 $95 $31 $59 $43 $70
Income Taxes
Payable $11,356 $12,486 $3,392 $4,560 $7,477 $8,325 $9,851 $13,237 $14,650 $16,965 $18,810 $21,538
Sales Taxes
Payable $1,400 $2,400 $3,000 $1,200 $4,400 $5,400 $1,600 $5,000 $6,200 $2,400 $4,400 $7,400
Short-Term
Debt
Prepaid
Revenue
Total
Current
Liabilities
$12,794 $14,914 $6,410 $5,787 $11,959 $13,740 $11,487 $18,332 $20,881 $19,424 $23,253 $29,008
Long-Term Debt
Total
Liabilities $12,794 $14,914 $6,410 $5,787 $11,959 $13,740 $11,487 $18,332 $20,881 $19,424 $23,253 $29,008
Paid-in Capital $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Retained
Earnings $39,771 $39,771 $39,771 $39,771 $39,771 $39,771 $39,771 $39,771 $39,771 $39,771 $39,771 $39,771

Michianna & Co. Page 36 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
Earnings $5,651 $10,175 $13,569 $18,242 $29,908 $33,303 $39,404 $52,951 $58,601 $67,861 $75,240 $86,154
Total
Owner's
Equity
$47,422 $51,946 $55,340 $60,013 $71,679 $75,074 $81,175 $94,722 $100,372 $109,632 $117,011 $127,925
Total
Liabilities &
Equity
$60,216 $66,860 $61,750 $65,800 $83,638 $88,814 $92,662 $113,054 $121,253 $129,056 $140,264 $156,933

Michianna & Co. Page 37 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
FY2017 FY2018 FY2019
Cash $52,318 $151,532 $281,127
Accounts Receivable $3,240 $5,400 $4,924
Inventory
Other Current Assets
Total Current Assets $55,558 $156,932 $286,051
Long-Term Assets
Accumulated Depreciation
Total Long-Term Assets
Total Assets $55,558 $156,932 $286,051
Accounts Payable $44 $69 $62
Income Taxes Payable $9,943 $21,538 $30,093
Sales Taxes Payable $3,800 $7,400 $7,600
Short-Term Debt
Prepaid Revenue
Total Current Liabilities $13,787 $29,007 $37,755
Long-Term Debt
Total Liabilities $13,787 $29,007 $37,755
Paid-in Capital $2,000 $2,000 $2,000
Retained Earnings $39,771 $125,925
Earnings $39,771 $86,154 $120,371
Total Owner's Equity $41,771 $127,925 $248,296
Total Liabilities & Equity $55,558 $156,932 $286,051

Michianna & Co. Page 38 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
Cash Flow Statement
Cash Flow Statement (With Monthly Detail)
FY2017 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17
Net Cash
Flow from
Operations
Net Profit $3,981 $445 $4,204 $3,452 $3,452 ($308) $7,588 $1,196 $1,572 $4,053 $3,677 $6,459
Depreciation
and
Amortization
Change in
Accounts
Receivable
($2,160) $1,860 ($1,860) $360 $0 $1,800 ($3,750) $3,090 ($150) ($1,230) $150 ($1,350)
Change in
Inventory
Change in
Accounts
Payable
$66 ($59) $29 ($7) ($1) ($31) $62 ($52) $2 $19 ($4) $21
Change in
Income Tax
Payable
$995 $111 $1,051 $863 $863 ($77) $1,897 $299 $393 $1,014 $919 $1,615
Change in
Sales Tax
Payable
$1,200 $0 $1,200 ($1,400) $1,000 $0 $0 $200 $200 ($1,400) $1,000 $1,800
Change in
Prepaid
Revenue
Net Cash
Flow from
Operations
$4,082 $2,357 $4,624 $3,268 $5,314 $1,384 $5,797 $4,733 $2,017 $2,456 $5,742 $8,545
Investing &
Financing
Assets
Purchased or
Sold
Investments
Received $2,000

Michianna & Co. Page 39 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
Change in
Long-Term
Debt
Change in
Short-Term
Debt
Dividends &
Distributions
Net Cash
Flow from
Investing &
Financing
$2,000
Cash at
Beginning of
Period
$0 $6,082 $8,439 $13,063 $16,331 $21,645 $23,029 $28,826 $33,559 $35,576 $38,032 $43,774
Net Change in
Cash $6,082 $2,357 $4,624 $3,268 $5,314 $1,384 $5,797 $4,733 $2,017 $2,456 $5,742 $8,545
Cash at End
of Period $6,082 $8,439 $13,063 $16,331 $21,645 $23,029 $28,826 $33,559 $35,576 $38,032 $43,774 $52,319

Michianna & Co. Page 40 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
FY2018 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18 May '18 Jun '18 Jul '18
Net Cash
Flow from
Operations
Net Profit $5,651 $4,524 $3,394 $4,673 $11,666 $3,395 $6,101 $13,547 $5,650 $9,260 $7,379 $10,914
Depreciation
and
Amortization
Change in
Accounts
Receivable
$420 $570 $570 ($690) ($3,390) $3,960 ($1,260) ($3,510) $3,810 ($1,800) $870 ($1,710)
Change in
Inventory
Change in
Accounts
Payable
($7) ($10) ($10) $9 $55 ($67) $21 $59 ($64) $28 ($16) $27
Change in
Income Tax
Payable
$1,413 $1,130 ($9,094) $1,168 $2,917 $848 $1,526 $3,386 $1,413 $2,315 $1,845 $2,728
Change in
Sales Tax
Payable
($2,400) $1,000 $600 ($1,800) $3,200 $1,000 ($3,800) $3,400 $1,200 ($3,800) $2,000 $3,000
Change in
Prepaid
Revenue
Net Cash
Flow from
Operations
$5,077 $7,214 ($4,540) $3,360 $14,448 $9,136 $2,588 $16,882 $12,009 $6,003 $12,078 $14,959
Investing &
Financing
Assets
Purchased or
Sold
Investments
Received
Change in
Long-Term
Debt
Change in
Short-Term
Debt
Dividends &
Distributions

Michianna & Co. Page 41 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
Net Cash
Flow from
Investing &
Financing
Cash at
Beginning of
Period
$52,319 $57,396 $64,610 $60,070 $63,430 $77,878 $87,014 $89,602 $106,484 $118,493 $124,496 $136,574
Net Change in
Cash $5,077 $7,214 ($4,540) $3,360 $14,448 $9,136 $2,588 $16,882 $12,009 $6,003 $12,078 $14,959
Cash at End
of Period $57,396 $64,610 $60,070 $63,430 $77,878 $87,014 $89,602 $106,484 $118,493 $124,496 $136,574 $151,533

Michianna & Co. Page 42 of 42
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share
its contents or ideas with third parties without the express written consent of the plan author.
FY2017 FY2018 FY2019
Net Cash Flow from Operations
Net Profit $39,771 $86,154 $120,371
Depreciation and Amortization
Change in Accounts Receivable ($3,240) ($2,160) $476
Change in Inventory
Change in Accounts Payable $44 $25 ($7)
Change in Income Tax Payable $9,943 $11,595 $8,555
Change in Sales Tax Payable $3,800 $3,600 $200
Change in Prepaid Revenue
Net Cash Flow from Operations $50,318 $99,214 $129,595
Investing & Financing
Assets Purchased or Sold
Investments Received $2,000
Change in Long-Term Debt
Change in Short-Term Debt
Dividends & Distributions
Net Cash Flow from Investing & Financing $2,000
Cash at Beginning of Period $0 $52,318 $151,532
Net Change in Cash $52,318 $99,214 $129,595
Cash at End of Period $52,318 $151,532 $281,127