Free Gift Basket Company 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 $75,000 for the development of a gift basket business while showcasing the expected financials and operations over the next three years. Gift Basket Company, Inc. (“the Company”) is a New York based corporation that will provide sales and delivery of gift baskets on behalf of customers in its targeted market and online. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The primary revenue source for the Company will come from the direct retail sales of gift baskets to individuals and businesses within the target market. The Company will offer both standard baskets (designed specifically by the business) as well as custom gift baskets that are made to order. Gift Basket Company, Inc. will also deliver the gift baskets to their intended recipients. The Company’s secondary stream of revenue will come from an online platform where customers can place orders for gift baskets for delivery on a nationwide basis. This will allow the Gift Basket Company to maximize its retail distribution capabilities from its location. The third section of the business plan will further describe the services offered by the Gift Basket Company.
1.2 The Financing
Mr. Doe is seeking to raise $75,000 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 Gift Basket Company’s mission is to provide customers with an extensive line of gift baskets and speedy delivery on behalf of individuals and businesses within the target market.
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 businesses within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Gift Basket Company, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Gift Basket Company requires $75,000 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 Gift Basket Company, 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 Gift Basket Company. Based on historical numbers, the business could fetch a sales premium of up to 2 to 3 times earnings depending on the previous year’s net income.
3.0 Products and Services
Below is a description of the products offered by the Gift Basket Company.
3.1 Gift Basket Products
The Company intends to have extensive gift basket inventories for people that want to send gifts to loved ones, friends, and clients. The Company will maintain an extensive inventory of pre-developed gift baskets that have been developed by Mr. Doe. Gift baskets will include items such as chocolate, candy, wines, cheeses, crackers, flowers, and other products commonly found in gift baskets. The Company will also have the ability to customize any gift basket to the specific tastes and needs of the client. Gift Basket Company, Inc. will also develop an online ordering platform where customers can place large orders for gift baskets to be delivered to homes and businesses within the target market. This will substantially increase revenues of the business while concurrently maximizing inventory turnover. Please note that the fifth section of the business plan will focus on how the Company intends to market its products to customers within the target market.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the gift basket 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. However, the Gift Basket Company will be able to remain profitable as many people and businesses will continue to order gift baskets for loved ones and clients (especially during holiday seasons and other holidays such as Mother’s Day and Valentine’s Day).
4.2 Industry Analysis
Among gift basket businesses and gift companies, aggregate revenues in each of the last five years have exceeded $16 billion. This industry also includes florists that specialize solely in gift baskets (excludes florists with general retail operations). The industry employs more than 210,000 people and provides payrolls of $2.5 billion. This is a mature industry, and the expected future growth rate of the industry is expected to mimic that of the general economy.
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
Gift Basket Company, 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 planners and corporate gift specialists that will generate ongoing referral revenues for the business.
• Implement a local marketing campaign that will use local advertising methods such as flyer distribution and advertisements in local publications during holiday seasons.
• Develop an online ordering website that will allow the business to take orders over the internet.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies to ensure maximum visibility for the Gift Basket Company. Foremost, he intends to source a highly visible retail location from which the Company will conduct business. This location will feature highly visible signage that will inform the public of the Company’s gift basket offerings and its grand opening. The business will also maintain a sizeable amount of print/media advertisement in local newspapers, journals, and flyers that are distributed throughout the community. The Gift Basket Company will also develop ongoing relationships with event planners and corporate gift companies that will outsource their gift basket needs to the Company. These relationships will be an invaluable source of referrals for the business. Finally, the Gift Basket Company intends to develop its own online website that will showcase the business, its hours of operation, contact information, and location information. E-commerce functionality will be added to this website so that people from all over the country can order gift baskets for local and long distance delivery.
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
• Gift Basket Company, Inc. will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $75,000 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. Gift baskets are not a necessity, and during difficult economic climates, Mr. Doe fully expects a moderate decline in revenue. However, the Company will earn substantial margins from its gift basket products, and the Gift Basket Company will remain cash flow positive and profitable during these times.
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