BUSINESS PLANUnique CreationsAngela Rivera, OwnerOctober 19, 20181. EXECUTIVE SUMMARY1.1 ProductThe business will provide gift baskets, candy bouquets, and unique creations.
These could be made out of snacks, candies, baby shower items, holiday specific items, get well soon items, or specific birthday arrangements.1.2 CustomersMy target customers are anyone looking for something different, unique, and special. These are creations you cannot find anywhere else.1.3 What Drives UsThe goals for the company are simple.
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First, to provide uniquely designed baskets, bouquets, or creations to meet the customer’s request. Secondly, to make each person who receives these creations feel special knowing this item cannot be found just anywhere, and the giver really put some thought into the gift.2. COMPANY DESCRIPTION2.
1 Mission StatementWe are dedicated to providing exceptional customer service. Our mission is to provide customers with unique and beautiful creations at affordable prices.2.
2 Principal MembersAngela Rivera is the owner and operator. She will oversee all functions of the business as well as maintain the website and marketing.Connie Salley is an employee who is responsible for purchasing, creating the orders, cleaning up the shop, keeping up with the finances, and any other functions as needed.Angelina Rivera is an employee who is responsible for taking orders, running the cash register, cleaning up the shop, and any other functions as needed.
2.3 Legal StructureUnique Creations would be set up as a Limited Liability Company.3. MARKET RESEARCH3.1 IndustryUnique Creations will be a part of the gift basket industry which is also in the retail industry. The main characteristic that will set Unique Creations apart from other stores is the uniqueness of the items offered. These gift baksets or creations can be customized more than other stores have to offer. In this area, there are not any gift basket shops available.
However, there is still competition with the florist in the area.3.2 CustomersUnique Creations will have two groups of customers, individuals and businesses.
· Individuals- The individuals are people who are looking to give a friend, relative, coworker, etc., a gift basket as a gesture of goodwill. These will most times be during holiday times. These customers typically do have a specific type of gift basket in mind when they look at Unique Creation’s product offerings. Most customers will know the person well and what they like.
They can use this to create something special and unique for the person. This exact creation cannot be found anywhere else. For individuals who do not know what the person likes specifically, there are many options to create general ones most people would like.· Corporate- The corporate customer is typically buying the basket for a colleague at work, either as a sign of appreciation, for a special event, or as a thank you for a customer. The corporate market can be further broken down to banks, health care, employment gifts, real estate, special events/promotions, corporate headquarters, hotels/vacation resorts, and automobile dealerships.3.3 CompetitorsThere are many different forms of competition in the gift basket industry:· Similar gift basket type retail stores: There are none of these shops in Orangeburg.· Nut/fruit companies: There are none of these shops in Orangeburg.
· Bath product gift basket companies: There are none of these shops in Orangeburg.· Regional gift basket: There are none of these shops in Orangeburg.· Candy gift baskets: There are none of these shops in Orangeburg.· Florists: Flowers are a similar product that competes with gift baskets. Flowers tend to appeal to women more so then men. They may offer some simple options for gift baskets, but itâ??s what they have to offer. They cannot be customized.
3.4 Competitive AdvantageUnique Creations has a lot of advantages over its competition. The only real competition in Orangeburg is the couple of florist in the area. This should not be too much of an issue because of the lack of options for customization by the florists.
No one in this area offers what I will offer.3.5 RegulationThe only regulation Unique Creations would need to worry about is if we decide to put wine or any other alcholic beverages in the baskets or creations. At this time, we do not plan to offer this option.4. PRODUCT/SERVICE LINE4.1 Product or ServiceUnique Creations will offer a wide variety of gift baskets or gift creations. Customers will be be able to customize gifts for all occassions.
Unique Creations will not offer any wines or alcoholic beverages.4.2 Pricing StructureThe pricing structure will depend mainly on how much the customer would want to spend. The lowest products we have to offer will most likely be around $15.
From there, the prices can go up in increments, as high as the customer is willing to pay for them. If a customer wants a gift basket for $200 then we would accomodate them.4.
3 Product/Service Life CycleAt this time, we are in the development stage of the life cycle. We are in the stage of researching and developing products, looking at pricing options, supplier information, and if there is truly a market in this area for Unique Creations.4.
4 Intellectual Property RightsThere would be no intellectual property rights for Unique Creations.4.5 Research & DevelopmentAt this time, we are using Facebook for a lot of our research and feedback. You have the opportunity to reach a wide variety of people of all socioeconomic classes for no cost. Some products have been a success while others needed to be revamped or thrown away altogether.
5. MARKETING & SALES5.1 Growth StrategyUnique Creations plans to start simple and expand from there. We believe the best option would be to start around April. This will get the word out close the the start of major holidays. The holidays would be when we are really the busiest.
During the slower times, we would introduce other creations such as get well soon, back to school, and birthday creations. We plan to keep changing items up, giving new creative ideas as well as ideas we receive from our customer’s request. Facebook will be a good free outlet to spread the word about the store. There are also holdiay events for vendors to showcase their items. Mainly Unique Creations will grow based on word of mouth.5.2 CommunicationCommunication will take place via Facebook mostly. There will be a phone number as well as an email address we could be reached at.
We would gather information about our customers such as email addresses to send promotions to them. Facebook is also a good place for promotions or giveaways. One popular way is to have followers share the status, thus getting their friends to see the Facebook page.5.3 ProspectsCustomers would be able to come in the shop to order their product. They can submit orders via Facebook as well as on the website. There will also be products available at the events we would attend.
6. FINANCIAL PROJECTIONS6.1 Profit ; LossYear 1 Year 2 Year 3Sales $70,000 $75,000 $80,000Costs/Goods Sold $15,000 $20,000 $25,000GROSS PROFITOPERATING EXPENSES $55,000 $55,000 $55,000Salary (Office ; Overhead) $28,800 $28,800 $28,800Payroll (taxes, etc.) $10,000 $10,000 $10,000Outside Services $0 $0 $0Supplies (Office ; Operation) $3,000 $3,000 $3,000Repairs ; Maintenance $2,000 $2,000 $2,000Advertising $0 $0 $0Car, Delivery ; Travel $0 $0 $0Accounting ; Legal $500 $500 $500Rent $6,000 $6,000 $6,000Telephone $300 $300 $300Utilities $3,600 $3,600 $3,600Insurance $1,000 $1,000 $1,000Taxes (Real Estate, etc.) $450 $450 $450Interest $0 $0 $0Depreciation $0 $0 $0Other Expenses $200 $200 $200TOTAL EXPENSES $55,850 $55,850 $55,850NET PROFIT BEFORE TAXES $-850 $-850 $-850Income Taxes NET PROFIT AFTER TAX $-850 $-850 $-850Owner Draw/Dividends ADJUSTED TO RETAINED $-850 $-850 $-8506.2 Cash Flow (04/01/2019 to 03/31/2022)Pre-StartupEST Year 1 Year 2 Year 3 Total ItemESTCash on Hand $50,000 $36,350 $49,500 $61,650 $197,500CASH RECEIPTS Cash Sales $0 $50,000 $50,000 $50,000 $150,000Collections from CR Accounts $0 $20,000 $25,000 $30,000 $75,000Loan/Cash Injection $0 $0 $0 $0TOTAL CASH RECEIPTS $0 $70,000 $75,000 $80,000 $225,000TOTAL CASH AVAILABLE $50,000 $106,350 $124,500 $141,650 $422,500CASH PAID OUT Purchases $5,000 $10,000 $15,000 $20,000 $50,000Gross Wages $0 $28,800 $28,800 $28,800 $86,400Outside Services $0 $0 $0 $0 $0Supplies $200 $3,000 $3,000 $3,000 $9,200Repairs ; Maintenance $0 $2,000 $2,000 $2,000 $6,000Advertising $0 $0 $0 $0 $0Car, Delivery ; Travel $0 $0 $0 $0 $0Accounting ; Legal $500 $500 $500 $500 $2,000Rent $500 $6,000 $6,000 $6,000 $18,500Telephone $0 $300 $300 $300 $900Utilities $0 $3,600 $3,600 $3,600 $10,800Insurance $1,000 $1,000 $1,000 $1,000 $4,000Taxes (Real Estate, etc.) $450 $450 $450 $450 $1,800Interest $0 $0 $0 $0 $0Other Expenses $0 $200 $200 $200 $600SUBTOTAL $7,650 $55,850 $60,850 $65,850 $190,200Loan Principal Payment $0 $0 $0 $0 $0Capital Purchase $5,000 $0 $1,000 $0 $6,000Other Startup Costs $1,000 $1,000 $1,000 $1,000 $4,000Reserve and/or Escrow $0 $0 $0 $0 $0Others Withdrawal $0 $0 $0 $0 $0TOTAL CASH PAID OUT $13,650 $56,850 $62,850 $66,850 $200,200CASH POSITION $36,350 $49,500 $61,650 $74,800 $222,3006.3 Balance SheetAssets Start Date: 04/01/2019 End Date: 03/31/2022CURRENT ASSETS Cash in Bank $36,350 $74,800Accounts Receivable $20,000 $30,000Inventory $5,000 $5,000Prepaid Expenses $7,000 $7,000Other Current Assets $0 $0TOTAL CURRENT ASSETS $68,350 $116,800FIXED ASSETS Machinery ; Equipment $2,000 $2,000Furniture ; Fixtures $1,000 $1,000Leaseholder Improvements $0 Land ; Buildings $10,000 $10,000Other Fixed Assets $0 $0TOTAL FIXED ASSETS(net of depreciation) $13,000 $13,000OTHER ASSETS Intangibles $0 $0Deposits $0 $0Other $0 $0TOTAL OTHER ASSETS $0 $0TOTAL ASSETS $81,350 $129,800Liabilities ; Equity CURRENT LIABILITIES Accounts Payable $1,000 $1,500Interest Payable $0 $0Taxes Payable $5,000 $5,000Notes, Short Term (due in 12 months) $3,000 $3,000Current Part, Long-Term Debt $0 $0TOTAL CURRENT LIABILITIES $9,000 $9,500LONG TERM DEBT Bank Loans Payable $0 $0Notes Payable to Stockholders $0 $0LESS: Short-Term Portion $0 $0Other Long-Term Debt $27,000 $30,000TOTAL LONG-TERM DEBT $27,000 $30,000TOTAL LIABILITIES $36,000 $39,500OWNER’S EQUITY Invested Capital $45,350 $90,300Retained Earnings $0 $0TOTAL OWNERS EQUITY $45,350 $90,300TOTAL LIABILITIES & EQUITY $81,350 $129,8006.4 Break-Even AnalysisDIRECT COSTS Fixed Costs ($) Variable Costs (%)Cost of Goods Sold $15,000 0%Inventory $5,000 0%Raw Materials $1,500 Direct Labor $1,500 0%INDIRECT COSTS Salaries $28,800 0%Supplies $3,000 0%Repairs & Maintenance $2,000 0%Advertising $0 0%Car, Delivery & Travel $0 0%Rent $6,000 0%Telephone $300 0%Utilities $3,600 0%Insurance $1,000 0%Taxes $450 0%Interest $0 0%Depreciation $0 0%Other Costs $200 0%Total Fixed Costs $23,000 0%Total Variable Costs $45,350 0%BREAKEVEN SALES LEVEL: $68,350 6.5 Financial Assumptions6.5.1 Assumptions for Profit and Loss ProjectionsThe numbers here are just projected amounts.6.5.2 Assumptions for Cash Flow AnalysisAll amounts are projected.6.5.3 Assumptions for Balance SheetAll numbers are projected.6.5.4 Assumptions for Break-Even AnalysisAll of these are estimates.