Free Flea Market 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 $175,000 for the development of an indoor flea market while showcasing the expected financials and operations over the next three years. Flea Market, Inc. (“the Company”) is a New York based corporation that will provide space for vendors to sell their wares to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The primary revenue source for the business will come from the rental of booth spaces to vendors that sell varying products including used goods, jewelry, antiques, and other wares that are normally found in flea markets. The revenues generated from this segment of the business will carry extremely high margins. The Company intends on renting a 10,000 square foot facility from which it will provide its space rental operations. The Company’s secondary revenue center will come from the sale of food and other concessions to customers that are visiting the Flea Market with the intent to purchase items from the Company’s vendors. The third section of the business plan will further describe the services offered by the Flea Market.
1.2 The Financing
Mr. Doe is seeking to raise $175,000 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 Flea Market’s mission is to provide vendors with a highly visible location from which they can sell their wares.
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 prospective vendors) within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Flea Market, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Flea Market requires $150,000 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 Flea Market, 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 Flea Market. Based on historical numbers, the business could fetch a sales premium of up to 3 to 5 times the previous year’s net earnings.
3.0 Products and Services
Below is a description of the services offered by the Flea Market.
3.1 Rental of Booth Space within the Flea Market
As stated in the executive summary, the primary revenue center for the business will come from the direct rental of booths and spaces for local vendors to sell their wares which will include jewelry, antiques, used items, electronics, and other products commonly found in flea markets. Booths and spaces will be rented on a per diem basis. The Flea Market will operate seven days per week. Weekend prices for booth and space rentals will be higher than weekday fees. No fees will be charged as a percentage of sales. Rental for space and booths will be arranged one week in advance.
3.2 Sales of Food and Concessions
The Company’s secondary line of revenue will come from the sale of small food items and concessions to customers that are browsing wares among the Flea Market’s vendors. The Company will obtain the proper licensure to sell small food items (hamburgers, hot dogs, fries, packaged goods, etc). to the general public. Management anticipates that 20% of the Flea Market’s aggregate revenues will come from this segment of the business.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the flea market 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-2009, at which point the economy will begin a prolonged recovery period. However, flea markets tend to operate with a great deal of economic stability as people will seek to purchase used items (and sell used items) during times of economic difficulty.
4.2 Industry Analysis
Within the United States, there are approximately 20,000 flea markets. Each year, these revenues generate more than $8 billion of revenue while concurrently providing jobs to more than 120,000 people. Annual payrolls in each of the last five years have exceeded $1.8 billion. This is a very mature industry, and the expected future growth rate is expected to equal that of the general economy. However, and as stated earlier, flea markets operate with a strong level of economic stability as people may seek to purchase items from places like flea markets in lieu of spending money at traditional retailers.
4.3 Customer Profile
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
The Flea Market 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 Flea Market.
5.1 Marketing Objectives
• Develop ongoing relationships with flea market vendors that will use the Company’s facilities on an ongoing basis.
• 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
Management’s marketing plan will be two fold. First, the Company must actively market itself among potential vendors that will rent booth and selling space from the business so that Flea Market patrons will have a large selection of merchandise to choose from. The business, via mail, will actively contact local artisans, jewelry markers, and antiques dealers to enroll them in the Company’s space rental programs. The business will also maintain an online website which will showcase the operations of the business, the Flea Market facility, preliminary pricing for rental space, and the rules/regulations set forth for selling merchandise at the Flea Market. The Company will register this website with several major online portals and directories. On a regular basis, the Company will place large scale advertisements in newspapers and local publications to inform the general public of the Flea Market’s operations and its location. This is extremely important as vendors will have paid significant fees in order to have the general public visit the Flea Market location. Other forms of advertising will include radio promotions and billboard advertisements.
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 Flea Market will have an annual revenue growth rate of 14% per year.
• The Owner will acquire $175,000 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, flea markets typically generate very high margins from their rental services (and ancillary revenue streams), and people tend to frequent flea markets in recessed economies in order to save money on purchasing items. As such, Flea Market, Inc. should have no trouble maintaining profitable and cash flow positive operations on a monthly 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