Free Fireworks 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!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $300,000 for the development of a fireworks Store while showcasing the expected financials and operations over the next three years. Fireworks Store, Inc. (“the Company”) is a New York based corporation that will provide extensive inventories of fireworks to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the Fireworks Store will provide an extensive line of products relating to fireworks and pyrotechnics. The business will work with local event planners in order to generate sales via these channels on an ongoing basis. The third section of the business plan will further describe the services offered by the Fireworks Store.
1.2 The Financing
Mr. Doe is seeking to raise $300,000 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. The financing will be used for the following: • Development of the Company’s Fireworks Store location. • Financing for the first six months of operation. • Capital to purchase the Company’s initial inventory. Mr. Doe will contribute $50,000 to the venture.
1.3 Mission Statement
The Fireworks Store’s mission is to provide customers and event planners within the target market with a broad range of fireworks products.
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 and event planning firms within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Fireworks Store, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Fireworks Store, Inc. requires $300,000 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 Fireworks 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 Fireworks Store, Inc. Based on historical numbers, the business could fetch a sales premium of up to 6 times earnings.
3.0 Products and Services
Below is a description of the products services offered by the Fireworks Store.
3.1 Sales of Fireworks
The primary source of revenue for the business will come from the direct retail sale of a broad range of legal fireworks. The business will also develop an online sales platform which will include a proprietary website as well as online stores developed in conjunction with major online sales platforms such as Yahoo, Google, Amazon.com, and EBay. This will allow the Company to more rapidly turnover its inventory at the onset of operation. The business will comply with all laws regarding the mail order distribution of fireworks.
3.2 Delivery Services
The Company’s secondary source of revenue will come from the delivery services that are offered in conjunction with the fireworks discussed above. While this will be a smaller segment of the Company’s operations, the business will be able to markup its direct delivery costs by 25% to the customer. Management anticipates that approximately 20% of Company’s aggregate revenues will come from this operating segment.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the fireworks 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 moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
4.2 Industry Analysis
The fireworks store business consists of 3,500 suppliers across the Untied States that provide products that are normally associated with major holidays. Among these market agents, aggregate yearly revenues are approximately $3.5 billion dollars per year. The industry employs more than 26,000 people, and provides annual payrolls in excess of $750 million dollars. This is a mature industry, and the expected future growth rate of this market is expected to mirror that of the general economy. One of the most common trends among retailers is to develop e-commerce platforms that operate concurrently with their traditional brick and mortar retail locations.
4.3 Customer Profile
The Fireworks Store’s 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 $100 per visit to the Fireworks Store.
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
Fireworks 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 relationships with event planning firms (for large purchase orders) in the target market.
• 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 Fireworks Store to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Fireworks Store will also use an internet based strategy. This is very important as many people seeking local retailers, such as fireworks stores, now the Internet to conduct their preliminary searches. Mr. Doe will register the Party Supply Store with online portals so that potential customers can easily reach the business. The Company will also develop its own online website which will feature e-commerce functionality while concurrently developing relationships with third party e-commerce store hosts such as Yahoo, Google, EBay, and Amazon.com.
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
• Fireworks Store will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $300,000 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. However, Mr. Doe intends to operate a very lean operating and overhead infrastructure. As such, the business will be able to remain profitable and cash flow positive despite moderate declines in revenue.
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