Free Pottery 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 pottery store while showcasing the expected financials and operations over the next three years. Pottery Store, Inc. (“the Company”) is a New York based corporation that will provide sales of pottery and kiln services to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The primary revenue center for the business will come from the sale of pottery to the general public. Management will source inventories from both wholesalers and local artisans that produce pottery. Management expects that it will generate contribution margins of 60% on each dollar of revenue generated through the sale of pottery. The Pottery Store will also maintain a “paint your own” pottery service where customers can come in, paint a piece of unpainted pottery, and have it fired in the Company’s onsite kiln. Offering this service has become a common trend among pottery stores within the United States. The third section of the business plan will further describe the services offered by the Pottery 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 Pottery Store’s mission is to become the recognized leader in its targeted market for the sale of pottery and paint your own pottery services.
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 local artisans within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Pottery Store, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Pottery 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 Pottery 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 Pottery 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 pottery products and related services offered by the Pottery Store.
3.1 Sales of Pottery
The primary revenue source for the business will be the direct sale of complete and painted pottery to the general public. The business will source wholesalers that can provide the Company with its inventories from both domestic and international production sources. Currently, Mr. Doe is sourcing these vendors throughout the United States. Additionally, the business will have local artisans sell their completed pottery pieces on consignment throughout the store. Management feels that this will not only provide greater inventory holdings, but it will also reinforce the community feel to the business.
3.2 Pottery Services
The secondary business of the Pottery Store is the sale and firing of customer painted pottery and kitchenware. The Company will provide space for a customer to paint a piece of pottery, and then have it fired in the store’s kiln. Customers can then pick up the fired pieces in a day or two after they are kilned. The Company will ensure that specialized paints that are meant for kitchenware are used. Revenue from this part of the business will come in two parts: the sale of “bisque” pottery and sitting/firing fees. Management anticipates that each pottery piece will render approximately $20 to the business, with kilning and sitting fees of approximately $6 dollars.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the pottery store 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
Within the United States, there are approximately 1.600 businesses that specifically deal in the retail sale of pottery and pottery related products. Each year, these businesses aggregate generate $1 billion of revenue while providing jobs for more than 14,000 people. Payrolls in each of the last five year have exceeded $360 million. This is a mature industry, and the future expected growth rate will equal that of the general economy. One of the more common trends within the industry is to develop an online sales platform to compliment a retail location. Once operations commence, Mr. Doe intends to develop an e-commerce driven website so that sales can be made from anywhere in the world.
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 Pottery Store 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 Pottery Store.
5.1 Marketing Objectives
• Establish relationships with local artisans within the targeted 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 Pottery 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 Pottery Store will also use an internet based strategy. This is very important as many people seeking local retailers, such as pottery stores, now the Internet to conduct their preliminary searches. Mr. Doe will register the Pottery 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, images of the store, listings of the Company’s current inventory, and contact information. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the pottery products and related services that the Company is selling.
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 Pottery Store will have an annual revenue growth rate of 9% 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. Pottery and pottery painting/kiln services are purchased with discretionary income. As such, the business may see a decline in top line income during times of economic recession. However, the high margins generated by the business will ensure that the Company can remain profitable and cash flow positive despite moderate pullbacks 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