Free Scrapbooking Supply 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
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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 scrapbooking product and invitation printing retailer while showcasing the expected financials and operations over the next three years. Scrapbooking Supply Store, Inc. (“the Company”) is a New York based corporation that will provide sales of scrapbooking hobby supplies, tutorials regarding the art of scrapbooking, and invitation/stationery sales to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the primary revenue center for Scrapbooking Supply Store, Inc. is the sale of scrap book supplies and tutorial workshops (which will be held at the retail location). This hobby has had expansive growth over the past few years with many women developing expansive scrapbooks to mark major life events, the progression of their children, and other milestones within their lives. Complimentary to the scrap booking aspect of the Scrapbooking Supply Store, the Company will also provide invitation printing services for large scale events. This is an important revenue center for the business as it will provide highly predictable streams of revenue from the ongoing sale of invitation for major events. The business will also provide an inventory of general stationery items throughout the store. The third section of the business plan will further describe the services offered by the Scrapbooking Supply 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
Scrapbooking Supply Store, Inc.’s mission is to become the recognized local leader among scrapbooking enthusiasts for their scrap book supply needs while concurrently providing outstanding invitation printing services to the general public.
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 people holding large scale events) within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Scrapbooking Supply Store, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Scrapbooking Supply 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 Scrapbooking Supply 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 Scrapbooking Supply 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 product and services offered by the Company.
3.1 Scrap Books and Scrapbooking Tutorial Workshops
Scrap books and the art of creating scrap books has become a very popular hobby (primarily among women) over the past few years. There are now many businesses that not only provide the supplies for scrap booking, but the hosting of workshops to showcase designs and layouts for scrap books. The flagship revenue center of the Scrapbooking Supply Store will be this segment of the business. Mr. Doe is currently sourcing substantial inventories of varying paper and scrapbook products that will be sold through the retail facility. Management intends to host a number of weekly/monthly events that will teach customers how to develop scrap books for milestone events, the growth of their children, special vacations, and other important life moments. These events will feature question and answer sessions and demonstrations on the use of several types of paper, calligraphy, usage of sheet protectors, and how to select layouts to showcase their photos.
3.2 Sales of Invitations
The Scrapbooking Supply Store will also provide custom invitations for weddings, bar/bat mitzvahs, sweet sixteen parties, corporate events, and other large gatherings. As Management develops its position in the scrap book market, the Company will be able to have customers use the store for their invitation needs. Currently, the Owners are sourcing a number of invitation printers that they can use for their customers’ large scale invitation needs. Management does not have plans to develop printing capabilities in house as the machinery required for this type of service is very expensive.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the scrapbooking and stationery 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 recession economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. However, scrapbooking is a relatively inexpensive hobby, and the economy would need to undergo a severe economic recession before the business faces substantial revenue drawbacks.
4.2 Industry Analysis
Within the United States, there are approximately 7,000 companies that operate one or more retail locations that sell scrapbooks, invitations, and other stationery supplies to the business and general public. Among these businesses, the aggregate revenues generated on a yearly basis exceed $34 billion dollars per year. The general stationery industry provides jobs for more than 115,000 Americans with aggregate payrolls reaching $3.6 billion dollars per year. This is a mature industry, and Management expects that future growth will be inline with that of the general economy. While the scrapbook hobby has become popular in recent years, this segment of the stationery supply industry is relatively small.
4.3 Customer Profile
Scrapbooking Supply Store’s average client will be a middle to upper middle class woman living in the Company’s target market. Common traits among clients will include: • Female • Lives no more than 15 miles from the Company’s location. • Between the ages of 28 and 60 • Annual household income exceeding $40,000 per year • Is interested in developing scrapbooks as a hobby. 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
Scrapbooking Supply 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 Company.
5.1 Marketing Objectives
• Establish relationships with invitation and commercial printers 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
Management intends on using a number of marketing and adverting strategies to promote sales of the Company’s scrap books, invitations, and general stationery. To that end, Mr. Doe has developed a number of marketing/advertising strategies that he will use to promote sales at the onset of operations and throughout the life of the business. One of the ways that Management intends to solidify its position within the market place is to provide customers with regularly hosted workshops for scrap book enthusiasts. This will have a two pronged beneficial effect on the Company’s ability to generate sales. First, the business will be able to generate revenues among people (primarily women) that will come to the retail location with the intent to learn scrap book layout techniques/concepts. These women are fully expected to then purchase the scrap book supplies that they need from the Company during workshop events. Second, these workshops will also showcase the other revenue centers of the Scrapbooking Supply Store (invitations and general stationery product sales). Providing customers with lessons on how to use a business’ products is a time tested approach to not only developing sales but also building a brand affinity with the customer. The Company will also seek to develop relationships with area wedding and event planners that will use the business for the invitation printing needs. On occasion, it is the wedding/event planners’ responsibility to acquire invitations for the events that they are managing. To entice sales on this level, Management will distribute mailings to these businesses showcasing the outstanding level of quality and competitive pricing offered to these commercial clients. As discussed in the third section of the business plan, invitations are an important part of Scrapbooking Supply Store’s business as it provides a highly predictable stream of revenue for the Company on a year round basis.
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
• Scrapbooking Supply 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
Scrapbooking Supply Store is selling retail items that are non-essential and are purchased with discretionary income. As such, in the event of an economic recession, Management may face downward pressure on its top line income. However, the gross margins earned via the sale of scrap books and invitations are significant enough to ensure that in the event that sales decrease, the business will be able to maintain profitable and cash flow positive operations.
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