Business Plan

Name of company: Red Sand FX

Business structure: consultancy/company
Date of preparation: 1/5/2016
CEO: Daniel Brook
Vision statement: To rival leaders in prop production companies and to help
build on Australia's film production industry.
A. Company Brief.
What: An asset design consultancy, making use of 3d scanning, printing and cad software to build
assets for film, t.v and events. With 3d printing and scanning being the corner stone of
the companies capabilities, its focus is on complex and unique costume and prop production.
Where: Australia/NZ with remote work.
Why: To take advantage of a region with relatively few competitors and capitalise on the
success of additive manufacturing already being used in the film industry.
How: Initially starting with concept and design consultancy, building and assisting making cad
models ready for 3d print. Eventually building up to buy the equipment to fabricate parts inhouse, including bringing in traditional methods i.e. Leather work and newer tech like
integrating electronics into pieces, such as Arduino type micro controllers.
initial goals:
To start a consultancy that focuses on assisting film, theatre, events, tv on a more local level with
concept development of prop pieces utilising 3D printing.
Pros include; low start-up cost, can be flexible in client base, 3d printing still relatively new with
companies interested without knowing a great deal.
Cons include; limited capability and dependant on third party 3D printing companies.
Long term goals:
Expand the consultancy to produce props in-house and reach and develop an international
client base. Using 3D scanning and Printing as the cornerstone of prop development.
Pros include; production of pieces all in-house, quick development time. Cons include; huge cost of
equipment, high overheads (staff, renting space, materials, taxes)
Financial: Initially to afford licensing of CAD software and basic 3D scanner through a grant or a
loan, long term requires large financial investment to purchase the high end printing and scanning
equipment.
Non-financial: To develop a client base with some steady contracts, creating a stronger
portfolio. Pick up enough steady work to sustain the business and hire additional staff.
Build an international client base and purchase high end equipment.
B. Strategies
1. Marketing and sales : Marketing for this start-up requires contacts in the film industry, to
build up a credible name of successful products. To begin it requires a strong online
presence, forums, guilds, tumblr, instagram, facebook, all avenues to show projects and
show-reel pieces. Also attending industry events, expos, conventions ect. to build a presence
in the industry.
2. Production: In the early stages, production of props will require a workshop, even if the

items made are using a third party, it will require a workshop to finish the pieces and make
them ready for use, until revenue can cover the cost of purchasing high-end equipment to
bring it all in-house.
3. Research and development: This will be crucial to stay on-top of what more established
business are capable of doing, being aware of emerging technology in CAD, 3d scanning,
printing predominantly. Also being aware of changes in industry from potential competition
and government laws and regulations.
4. Organisation and management: This will be something that grows with the business
naturally, a small team will be required initially with probably multiple roles for an
individual until need dictates larger and more specialised staff.
5. Finance: Trying to keep initial costs low an investment is still required to outlay costs of
Software, hardware, workspace rental and marketing among other potential costs involved.
Financing would be in the form of a business loan by a bank as well as taking advantage of
Queensland current intensives on offer for industries focused on working with new
technologies. Kick starter and other crowd funding sources may also be an avenue for
potential funding.
C. Sales and revenue plans
Sales and revenue objectives
To obtain commercial work with various productions as a consultancy. This industry will probably
experience sparse periods of work, so developing a brand strong enough to pull in a consistent level
of work annually from several sources will be crucial.
B. Product or service line strategies
1. Target customers: Production facilities that require assistance, small scale productions,
theatre productions, independent studios that require someone to provide solutions to their
asset needs for instance Goalpost pictures independent producers that would outsource their
prop production. Potentially local event organisers looking for props, LARP groups and
cosplayers, film and t.v. Producers and major film studios.
2. Sales objectives: To achieve a consistent flow of yearly work resulting in positive financial
growth
3. Pricing policies: Depending on the method of funding pricing policies will change to
account for the cost of potential loan repayments, hardware and physical space rentals,
marketing, material cost, time and staff costs.
4. Advertising promotions: Developing a strong name in the film and entertainment industry,
by visiting conventions and events held for developing industry connections. As this is the
main clientele.
5. eBusiness plan: A well presented website to be linked to from social media, physical media,
building a presence online through social media and industry forums as well as representing
the website in all physical meetings.
6. Competitors: (featured on competitor's page)
D. Production Plan
A. Production schedule: Set-up for initial stage of start-up to be in weeks, building a website, hiring
a space, purchasing hardware and organising third party suppliers and manufacturers.
Production schedule for paid work would vary depending on client time frame and work
required, for instance assisting with getting pre-existing models 3d printer friendly maybe a
day. Going from start to finish with a prop would be a longer process. Concept and model

development would be within a couple of days, then prototyping with 3d printing depending
on the piece could be less than a day, then under a week for final model and finishing
depending on complexity.
B. Production costs and standards:
1.Materials: Includes but not limited to, leather, latex, rubbers, paints, powdered polymers,
liquid polymers, glues, sanders, nails, bolts, screws, staples, tape, WD40
2. Labor: scanning and prep work including concept development and liaising with client,
development of the 3D model for production, finishing the printed model (sanding
painting and construction)
C. Operating Policies:
1. Inventory management: A local hdd to store digital files and a back-up server that saves
daily. Workshop equipment and materials will be catalogued in a system and audited.
Products will be tagged and secured in labelled storage unless being finished.
2. Maintenance: Staff will maintain desktop computers and their operations, including
installing upgrades and keeping an acceptable level of viruses. Workshop hardware will
require induction training on use and maintenance.
3. Purchasing: Purchasing will be handled by the CEO initially until demand requires a
dedicated team member for handling input and output, team member will authorise requests
for materials and tool from each department.
4. Subcontracting: A contract where applicable will be drafted, mainly as a non-disclosure
agreement on printed items for the sake of the client.
D. Facilities :
Initially a small workshop or shared-space required to finish pieces provided by printing bureau. Up
scaling to include a larger workshop in an East Coast Australian city, Sydney, Melbourne or
Brisbane. Locations chosen for proximity to major Australian film studios.
Short term location: Prospect Studios, Fortitude valley, Brisbane. Membership fee is based on need
starting at $125 a month. This basic price includes a desk, internet and access to a shared workspace, private studio space is available for 2-4 people.
Long term location: 9/58 Metroplex Avenue, Murarrie QLD. $53,400 p.a with 267m squared floor
space in and industrial/warehouse complex, 2 stories with an Open plan and easy access to Gateway
Motorway.
CAPITOL EXPENDITURES:
Initial set-up: Solidworks commercial licence $3995, Rhino commercial $1695, KeyShotHD $995,
iSense 3d scanner $876.7, ipad $598, workshop tools, paints $1000, workshop rental (Prospect
Studios Fortitude Valley) From $125 per month, long term lease 6+ months.
Estimated start-up capitol--$10,659.7

Long term Capitol expenditures include: HP 3d printer, $100,000, 6 x Solidwords commercial, 6 x

Rhino commercial, Artec Eva $16,800, GiziMax printer starting at $4600, workshop tools and
equipment $5000 approx, workshop rental $25,000-60,000 p.a Brisbane region.
Estimated long term capitol Investment $221,535
Not including staff, marketing and materials as well as accounting and bureaucratic fees

LEGAL
https://www.business.gov.au/info/plan-and-start/start-your-business
Business structure and type needs to be defined as well as a having an ABN. Also will need to
adhere to any state or federal industry regulations or regulatory industry bodies.
Business name and website needs to be registered. WHS obligations need to be met in accordance
with state and federal law, including training and safe handling of materials and tools, safe work
environment for employees including, fire exits, fire alarms and extinguishers, power tools tagged
and breakers on power boards. Employees must be covered under insurance as part of their contract
for potential damages on site.
Intellectual property:
All concepts, assets and models will be solely owned by the client unless written permission is
obtained to use otherwise.
ENVIRONMENTAL
https://www.meaa.org/
Under the initial business strategy of a small scale set-up, major environmental impact will come
from the production/shipping and finishing of physical props. The use of plastics, paints and other
environmental containments will need appropriate disposal. Reducing steps in the logistic chain will
be necessary, from a viewpoint of reducing energy consumption as a business.
Large scale version of start-up requires strict environmental policy, as system grows, the wastage of
materials, the power cost both the logistic chain and actual power cost of equipment will increase.
Through management of materials, keeping power usage to a minimum, recycling as much material
as possible to be re-used in the production process are some strategies to be used in policy creation.