Sample Business Plan

This sample business plan can be used by adding your personal information. This is an informal plan that gives you all the information necessary as long as you will not be applying for a bank loan. For a bank loan it would be best to have this filled in completely, take it to one of the bank officers and ask for the form they prefer.

Sample Business Plan (Today's Date)

One week from (Today's date) I will have:

1. Listed and contacted suppliers for catalogs.
2. Listed possible customers and find means to contact them.
3. Made up samples to show, prepared a written list of craft items so I am ready to give ideas to customers and drawn sketches for my own use.
4. Ordered business stationary, cards, hang tags or stickers, order forms, etc.
5. Worked out my budget (how much do you have to spend?) Set the amount and DO NOT go over the set amount.

Three months from (Today's date )I will have:

• Established a beginning inventory & know where to get the best deal on supplies, both locally for rush jobs and mail order. I will know how long it takes suppliers to deliver.
• Goals (List and check off as met).
• Major short term goals:
• a. Financial, 3 months, 6 months, 1 year
• b. Personal, 3 months, 6 months, 1 year

Major long term goals:

a. Financial, 12 months, 2nd year, 3 years, 5 years

b. Personal, 12 months, 2nd year, 3 years, 5 years

What I want to gain (objectives) the first year:

a. Sell ___ number of craft items or $____number of dollars the first year

b. Sell ___ % more each month

c. Get ___ regular customers the 1st year

d. Save for ___ by working part time.

Budget:

a. Telephone FAX (incoming FAX service)

b. Stationary - business cards

c. Business license - sales tax permit

d. Advertising - entertainment (clients)

e. Automobile - gas (sales call & delivery)

f. Gift cards & business stickers or hang tags

g. Professional support

(*insurance, *accountant, *attorney, trade shows, magazines, etc.) *first priority

h. Commissions (sales people, gift shops, etc.)

I. Basic inventory

j. Miscellaneous

Additional set up costs for web site, warehouse or store front:

a. Rent* or web site hosting

b. Utilities (gas, water, electric)*

c. Salaries (your own plus employees)

d. Cleaning and trash pickup*

e. Furniture (display cases, shelving, etc.)

f. Graphics or site designer *Prior tenant can tell you what his average cost was.

Payment - terms - credit:

Give no credit without checking credit references

Questions to be asked of references:

a. How long have you been doing business with client's name?

b. What is their credit limit and what are your payment terms?

c. How long do they take to pay?

d. What is their current outstanding balance?

Analyze Competition:

1. Who is competition? Gift stores, department stores, other web sites etc.

2. Visit competition to see what they offer. Check cost. How can you do better? Cost? Service? Uniqueness?

3. Why does your competition appear successful or not successful.

4. How are your competitors marketing - advertising

5. Who is your competitor targeting as clients

6. List services competitors provide or do not provide

Differences between competition and you

1. How are you different?

2. What makes you stand out?

3. What makes you better than the competition?

a. Are you better?

b. Can you offer a better price?

c. Creativity, are your crafts more unique?

d. Service, can you provide better service?

Strategy:

Pricing
**standard price mark up is 2 times cost of contents (include your time plus boxing and shipping charges**

Discounting:

You need to decide as part of your policy whether you will offer discounts. There should be a discount for large multiple purchases and you can also use discounts as promotional specials.

a. Yes or No?

b. Sample discounts: amount 10% over $200.00, 15% over $700.00 and 20% over $1,000.00

Costing form.

Fill in a costing form for each craft you make **. List each product, where you got it, how much it cost, if sale or regular price, why you made it (sample or for client & name), how much you charged and who it went to. This is for your records and can be kept tn a spiral notebook.

Manufacturer - product
This is the inventory you will be ordering.

Service:

1. Understand your client

2. Make every experience a good one for your customer

3. Ask for referrals

4. Thank you for each order

Marketing Promotions:
Some methods used to promote a business.

1. Direct mail: These are usually only used for new line announcement or special sale and should include a discount or special..

2. Newspaper advertisement: This can be used as special promotions with a coupon or mention the ad for a discount. The discount can be in dollar amounts or a percentage. List which in the ad.

3. Yellow pages: Depending on the time of year your yellow pages come out, the ad is good for one year.

4. Business cards: Your business billboard.

5. Brochures & flyers:

Who are you, what are you selling, when and where can I reach you, why you, what's so special?

6. Display samples in local stores, beauty parlors, etc., pay commission on orders received.

7. Charities (same as 6 with 10% to 15% to the charity)

8. A craft party

9. Company sticker or hang tag on all crafts

a. Photo album of all crafts made. Save the best as your sample to carry with you on your calls.

10. Ads in church newsletters, community bulletin boards, etc.

11. Referrals from satisfied customers

12. Network - Chamber of Commerce, fraternal and civic organizations florists, gift shops, specialty shops, etc.

You are responsible for building your own business, no one else will do it for you

Another area to consider is the business or cororate sales.

orporate accounts:

Business to business and business to individual gifts

a. Secretaries' Day, retirement, weddings, new baby etc.

Samples of corporate customers

a. Realtors, doctors, lawyers, accountants, hotel, plumbers. electricians, stock brokers, bankers, etc.

How to approach corporate customers:

a. First contact by letter then follow up by telephone

b. Make appointment and keep it and be on time

c. Make appointment at their convenience

d. What type of craft is appropriate, amount they want to spend (may need to contact gift recipients secretary, partner, etc., for additional information).

e. Order form (your eyes only) - expanded questions on first time orders may be necessary.

Why corporate clients would buy your crafts

a.Gift for the speaker or instructor of a seminar or convention. Contact the hotel find out which conventions are planned. Contact the organizer offering corporate discounts for a craft item to be delivered to the room of the instructor or speaker.

b. Welcome craft gift from realtors to new home owners.

c Employees birthdays, anniversaries, promotions etc.

Be sure your crafts give good perceived value. In other words your craft item looks as though it should cost more than it does.