Introduction
Hart Fraeme Gallery is a fine art gallery and full-service custom frame shop. The cornerstone of Hart Fraeme Gallery's business is high-quality custom framing. The company is unique in its field in that it offers same-day and 11-day custom framing, in contrast to the industry-standard 21-day lead time. Hart Fraeme Gallery is founded on a dedication to offer the Triopolis metro area the most innovative, trend-setting designs and a finished product of impeccable quality at unmatched speeds.
The Company
Hart Fraeme Gallery is an S-Corporation that is owned and operated by Hart Fraeme, who has several years of experience operating another art gallery and custom frame shop. The knowledge, expertise, and contacts that Mr. Fraeme has accumulated during this time have led him to found Hart Fraeme Gallery.
Presently, the company does not have a retail location, although plans are in place to acquire a location in the Uptown Mall by September of 2005. This location is attractive due to the relative lack of nearby frame shops, as well as the area demographics, which mirror those of Hart Fraeme Gallery's target customer.
Products and Services
As mentioned above, Hart Fraeme Gallery's primary focus will be on custom framing, which is expected to generate roughly 75% of monthly income. Although the company will also offer artwork for sale, this is done mostly as a service to its customers, and will typically account for no more than 25% of monthly sales. Nevertheless, artwork is necessary as a tool to model and sell custom framing options, which are many. The business will offer a selection of nearly 500 mouldings and more than a thousand unique matboards. In addition, Hart Fraeme Gallery will offer a large variety of decorative mat cuts, design styles, and display options.
Financial Outlook
The demand for artwork and custom framing is strong: 42% of consumers report that they are likely to make an art or framing purchase in the upcoming year. Additionally, industry analyses predict a 4-6% growth in custom framing sales for 2006. Given this, Hart Fraeme Gallery is confident that it can enter and establish itself in the market successfully. Financial projections are positive, and the company expects to generate healthy sustainable income and gross margin over the next three years.
1.1 Objectives
Hart Fraeme Gallery has four major goals. The first two are related to establishing a market presence at the outset, while the third and fourth are ongoing goals.
- Open a retail location in the Triopolis metropolitan area. Specifically, the company plans to enter into a lease agreement with the Uptown Mall, to lease a retail space of 1,500 – 2,500 square feet, with a stockroom / workshop area of at least 750 square feet.
- Establish consumer awareness of both product and company through marketing. This can be accomplished by advertising weekly in local newspapers, including Pioneer Press and Star Tribune for four weeks prior to and two weeks following the grand opening, and then on alternate weeks thereafter for three months, advertising more or less as results suggest. Additionally, the company will create a website detailing products and services, which will include an online shopping cart for Web purchases.
- Lead the industry in completion time, with an 11-day time frame for project completion on most orders and same-day framing with selected materials. To do this, it will be necessary to purchase the requisite framing equipment, and to keep it on-site, along with a selection of stock materials for same-day projects. It is also necessary to establish business relationships with leaders in the materials industry such as Roma Moulding and Mouldique, and to maintain weekly ordering and delivery schedules with such vendors.
- Focus primarily on custom framing, emphasizing leading-edge and high-end design. To do this, the company will monitor changing design and décor trends. Particularly, staff must follow such trends; therefore, the company will subscribe to several trade magazines, such as Picture Framing Magazine, Decor, and Art Business News.
1.2 Mission
Hart Fraeme Gallery is founded on a dedication to offer the Triopolis the most innovative, trend-setting designs and a finished product of impeccable quality at unmatched speeds.
To this end, the company takes pride in three things:
- Eye-catching, unique frame designs, stemming from a strong knowledge and continuing study of both current and traditional decorating styles and design trends.
- The highest quality craftsmanship and an ongoing commitment to excellence.
- Dedication to work and constant drive to exceed the industry-standard three-week time frame for product completion.
1.3 Keys to Success
Hart Fraeme Gallery has four key factors that are integral to success:
- Quality Craftsmanship - Because picture framing is aesthetic in nature, the finished product must be of impeccable quality.
- Innovation and Creativity - Custom framing implies uniqueness, and the customer expects a one-of-a-kind product individually tailored to his preferences.
- Fast, Professional Service - In a business where the established lead time is three weeks, eleven days is a refreshing change of pace. Additionally, in today's society, same-day framing is in demand.
- Embracing Technology - The computer has become an essential time-saver for all businesses, including art and framing, and computerized equipment is fast becoming a necessity for the modern framer.
