Free Head Shop 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 a general
merchandise store specializing in new age products while showcasing the expected
financials and operations over the next three years. Head Shop, Inc. (“the
Company”) is a New York based corporation that will provide a broad range of new age
merchandise to customers in its targeted market. The Company was founded by John
1.1 Products and Services
Management intends to launch a retail location that will specialize in the sale of new
age general merchandise with a focus on glass pipes, fragrances, incense,
candles, and other products normally associated with “Head Shops”.
The business will also maintain an online ordering platform for its
products so that the business can make sales from outside of its retail
The third section of the business plan will further describe the products
sold by the Head Shop.
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. The financing will be used for the following:
Development of the Company’s Head Shop location.
Financing for the first six months of operation.
Capital to purchase FF&E and inventory.
Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
The Head Shop’s mission is to become the recognized leader in its targeted market for new
age general merchandise services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
head shop industry. Through his expertise, he will be able to bring
the operations of the business to profitability within its first year of
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 within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Head Shop, Inc.
The Company is registered as a corporation in the State of
2.2 Required Funds
At this time, Head Shop, Inc. 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 Head Shop, Inc.
2.5 Exit Strategy
If the businesIf 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 Credit Monitoring Service, Inc.
Based on historical numbers, the business could fetch a sales premium of up to 4
3.0 Products and Services
3.1 Head Shop Products
As stated in the executive
summary, the Head Shop will specialize in making sales of the following types of
- New Age CDs and Books
- Other related products
(including blown glass items)
3.2 Online Ordering Platform
The Head Shop will also
maintain an online ordering platform that will allow the business to make sales
of new age products (as listed above) from outside of the Head Shop’s retail
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the head shop and general merchandise
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. Unemployment
rates have declined while asset prices have risen substantially. However, as the
business generates very high margin from its products sales, the Head Shop
should be able to remain profitable in any economic climate.
4.2 Industry Analysis
Head Shops and new age stores are classified as general merchandise stores according to the US
Economic Census. Based on information from the Federal Government, the total
yearly expenditures on new age related products totaled $5 billion dollars. The growth rate of this business is
expected to remain in lockstep with that of the economy and population. There
are approximately 10,000 companies in the United States that specialize in the
retail sale and distribution of “Head Shop” products.
The anticipated growth rate of
the industry is expected to remain in lockstep with that of the general
4.3 Customer Profile
The Head Shop’s average 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
Lives or works no more than 15
miles from the Company’s location.
Will spend $20 per visit to the
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
Head Shop, 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
Develop an online presence by developing a website and placing the Company’s
name and contact information with online directories.
Implement a local campaign with the Company’s targeted market via the use of
flyers, local newspaper advertisements, and word of mouth.
5.2 Marketing Strategies
Mr. Doe intends on using a
number of marketing strategies that will allow Head Shop 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
The Head Shop will also use an
internet based strategy. This is very important as many people seeking local
retailers, such as head shops, now the Internet to conduct their preliminary
searches. Mr. Doe will register the Head Shop with online portals so that
potential customers can easily reach the business. The Company will also develop
its own online website with e-commerce functionality.
The Company will maintain a
sizable amount of print and traditional advertising methods within local markets
to promote the new age and head shop products 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.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 Company has based its
proforma financial statements on the following:
The Head Shop will have an
annual revenue growth rate of 16% 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. However, the pricing
point for the Company’s head shop products is low. As such, only a much more
severe economic downturn would result in a decline in revenues.
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