The Application of Canvas Business Model and Financial Feasibility Analysis

The purpose of this research is to analysis how business model canvas can be applied to photography business, and to know its financial feasibility, especially from the point of view Net Present Value (NPV) and Payback Period.” TAP Studio” is the name of anew photography business, that is a house production, producing video and photography., with total investment amounting to Rp. 150.000.000. The research was conducted in June 2017 - December2017 using data collection techniques such as observation, interviews, and secondary research. It can be concluded that Canvas Business Model can be applied to a photography industry, and its financial feasibility, especially in term of Net Present Value is feasible, because its NPV is positive IDR 491.199.909. Furthermore, the Payback Period is 2 years and 8 months.


INTRODUCTION
TAP Studio is a brand name for a business production house producing photos and videos, specifically conceived for advertising. This business was established in the year of 2018. TAP Studio is an abbreviation of "Take a Picture" Studio. The author uses the slogan "Let's Take a Picture", meaning that the studio wants to TAP the impression of friendly, making consumers feel comfortable. TAP Studio is included in two sub sectors of creative industry, i.e. design and video, Film and photography.
The vision of the TAP Studio is to be the best product of photos and video services in Jakarta and surrounding areas. Its mission are (1) maintain and improve the quality of photos with creative ideas with an understanding of the concept of the desirable customers, (2) provide the best services and keeping in touch with customers, (3) continue to innovate LQ WKH GHYHORSPHQW RI WHFKQRORJ\ DQG LQIRUPDWLRQ LQ RUGHU WR XQGHUVWDQG FXVWRPHU·V QHHGV (4) create business opportunities for the photography industry in Indonesia.
Jurnal Manajemen Bisnis, Vol 9. No 2, September 2018, E-ISSN:2622-6308 P-ISSN:2086 139 The target market of the TAP Studio is the individual or organization who requires the services of photography for media promotion. In line with it, TAP Studio offers service product such as (1) catalog photography service, (2) package photography service, (3) Unit photography service, and (4) photography service outside the Studio.

RESEARCH METHODS
The data used is the data resulted from observation, interview and secondary data.

RESEARCH PROBLEM
Profit is the main goal of an entrepreneur. However, not all business getting profit.
Therefore before running a business an entrepreneur has to build its business model (describing how his or her business is managed), and he or she has to know first the benefit or the financial feasibility of his or her business. Though, there are some factors that affecting the financial feasibility of the business in the future.

REVIEW OF THE LITERATURE
According to Royan (2014) competitive strategies. The value chain is the string of activities that moves a product from the raw material stage, through manufacturing and distribution, and ultimately to the end user (Barringer, 2013).
To analyze the financial feasibility, first we have to plan the start up capital (investment capital) consisting of fixed assets and working capital ( Jumingan, 2009). The financial statement used in this analysis is Proforma Financial statement, not historical financial statement (Scarborough, 2016). Then, to analysethe financial feasibility of a new business that will be established, generally uses one or more criteria of investments showed that the appropriate application of Canvas Business Model resulted in enhancing the profit of the business, and its financial feasibility.
However, the success of the business is also depended on a good marketing strategy i.e.product , price, place and promotion strategies; the combination of these four strategies is called marketing mix (Pearce & Robinson, 2013).

THE APPLICATION OF BUSINESS MODEL CANVAS ON TAP STUDIO.
A business model describes the various aspects related to all activities of the business, either internal or external aspects ofthe business. The business model also describes how the company's relationship with other stakeholders such as customers, suppliers, and distributors. Business models designed by a company also helpes the company to be able to compete with the competitors in the market. The business model also provides an overview of how organizations create, deliver, and capture the value. How the x Photo equipment maintenance cost x Editing Services x Human resource cost x Printing Services Source: processed data by writer

Consumer Segment
Consumers segment of TAP Studio is entrepreneurs who market their products online, especially in the areas of Jakarta, Bogor, Depok, Tangerang and Bekasi, both men and women. The next segment is the local brand or entrepreneur who started and owns the market in territory of Indonesia. TAP Studio target market is also the consumers who have high taste on beauty and commercial value of photos.

Value Proposition
To create more value to customers, TAP Studio attempt to provide fast service, and provides a quality photos at an affordable price.

Channel
Direct marketing is an effective way for the TAP Studio photography business.
However, to transmit values to customers, TAP Studio must be supported by using social media, exhibitions, local brands and websites to market products to service the community. Media chat and phone TAP used the Studio as a means of consumer conduct discussions regarding the concept photos. Direct marketing is an effective way for the TAP Studio photography business.

Customer Relationship
TAP Studio builds relationship with customers both by online and offline promotions.
TAP Studio also gives discounts to loyal customers who have been using our photography services more than four times a year, and the customers who needs photography product more than fifty units.

FINANCIAL FEASIBILITY ANALYSIS
In analyzing the financial feasibility of TAP Studio, the authors first, respectively will calculate the needs and use of funds, pro forma Income Statement, and project cash flow (present value work sheet). Then, the financial feasibility of the business will be measured by using method of Present Value and Payback Period.

The Need and Use of Funds
The funds needed to start this business is amounting to IDR 150 million, consisting of IDR 126 million for investment in fixed assets, and IDR 24 million for working capital. This fund is personal fund of the owner of TAP Studio business.

The projected profit or Pro Forma Income Statement (2018-2023)
Here the author compiled the pro forma income statement of TAP Studio, from 2018 to 2023, by considering a wide range of both internal and external factors that affect this business in the future.  Note : at the end of year 5, terminal cash flow of Fixed assets and working capital, are not counted as benefit (cash inflow), because this businesses will still continue to the next years (it will not be closed). So, the Payback Period of the photography "TAP Studio" is 2 years and 7.5 months. If the owner wants that the funds invested will be back in 3 years, then this business is acceptable.

NPV and Payback Period
But if he wants the payback period is less than 2 years and 7.5 months, then this business FDQ·W EH accepted or rejected.

CONCLUSION
From the above analysis, it can be concluded that the Business Model Canvas can be applied to aphotography business, in this case specifically for the business of photography "TAP Studio". However, it needs to be a more detailed planning of each element of this business model, so that it can be used as a clear guide in operating a business.
Furthermore, the result of financial feasibility of TAP Studio business is feasible.
Using the Present Value method, this business is worth, with a positive NPV of IDR 491,199,909. Then, its payback period is 2 years and 7.5 months.