Free Christmas Store Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a Christmas supplies and general merchandise retailer while showcasing the expected financials and operations over the next three years. Christmas Store, Inc. (“the Company”) is a New York based corporation that will provide sales of general merchandise and Christmas related goods (during the holiday season) to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the primary product line for the business will be products related to Christmas. This business will generate a substantial majority of its revenues during September through December. The Company will earn significant margins on the products sold throughout the business. However, the Company will operate on a full year basis despite the fact that the primary focus of the Christmas Store’s operations is seasonal. During the rest of the year, the Company will sell other items such as stationery, candles, incense, toys, wigs, jewelry, and other general merchandise items. This will ensure that the business maintains year round revenue generation with moderate profitability in off season months. The third section of the business plan will further describe the services offered by the Christmas Store.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Christmas Store’s mission is to provide customers with a diverse selection of Christmas ornaments, cards, gifts, and related items while concurrently acting as a general merchandise store during off season months.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Christmas Store, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Christmas Store requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Christmas Store, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Christmas Store. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the products offered by the Christmas Store.
3.1 Christmas Products and Merchandise
The primary source of revenue for the business come during the months of September through December when the Company will revamp its store operations to focus on the sale of Christmas related ornaments, cards, gifts, wrapping services, and other Christmas related products. The Company will also sell prepackaged candy, lighting, and other items related to the season. The business will generate substantial margins from the sales of these products during the pre-Christmas and New Year’s season. Mr. Doe has planned an extensive marketing campaign that will be used throughout September, October, November, and December to ensure that the business maintains maximum visibility for its busy season.
3.2 General Merchandise Sales
As stated in the executive summary, the Company intends to operate on a year round basis despite the fact that during the busy season, the store’s product will focus will be towards Christmas related products. During the off season months, the store will sell general merchandise items such as candles, cards, gift wrapping materials, stationary, small children’s toys, and other general merchandise items that will ensure that the business maintains a year round revenue stream with a positive cash flow. The Company’s marketing plan will brand the Christmas Store for this multifaceted retail operation.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the Christmas Store and general merchandise industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
Christmas related stores are classified as general merchandise stores according to the US Economic Census. Based on information from the Federal Government, the total yearly expenditures on Christmas related products totaled $10 billion dollars in 2007. The growth rate of this business is expected to remain in lockstep with that of the economy and population. There are approximately 10,000 companies in the United States that specialize in the retail sale and distribution of Christmas based products. As the business also intends to operate in a general merchandise capacity, it should be noted that this industry is comprised of almost 1,000,000 businesses that aggregate generate more than $480 billion dollars of revenue per year. The general merchandise industry employs more than 2.8 million people. Aggregate payrolls in each of the last five years have exceeded $42 billion.
4.3 Customer Profile
The Christmas Store’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $50,000 • Lives or works no more than 15 miles from the Company’s location. • Will spend $25 to $75 per visit to the Christmas Store In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Christmas Store, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Establish massive local marketing campaigns during the months of September, October, November, and December.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Christmas Store to easily target men and women (especially those with children) within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. The Christmas will also use an internet based strategy. This is very important as many people seeking local product businesses, such as Christmas product stores and general merchandise businesses, now the Internet to conduct their preliminary searches. Mr. Doe will register the Christmas Store with online portals so that potential customers can reach the business. The Company will also develop its own online website, which will include information about the Christmas Store’s location, its product lines, and information regarding its year round operations as a general merchandise store. During the pre-Christmas season, the Company will aggressively distribute mail flyers, place advertisements in local newspapers within the target market.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Christmas Store will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. Christmas products’ demand is subject to the general strength of the economy, and in an economic downturn, the Christmas Store may experience a slowdown in its revenues. However, the high margin income generated from both general merchandise sales and Christmas product sales will ensure the continued profitability of the business on a month to month basis.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis