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Business Plan

Blank Business Plan Dave Ross, President and COO Cindy Laughter, Vice President and CFO www.myshadesolutions.com

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Document History

Ver No 1.0 1.1 1.2 1.3 1.4 1.5 1.6

Ver Date 10/5/07 10/15/07 10/28/07 11/04/07 11/08/07 11/19/07 1/10/08

Revised by Dave Ross Dave Ross Dave Ross Dave Ross Dave Ross Dave Ross Dave Ross

Description Initial Doc Revision 1 Revision 2 Revision 3 Revision 4 Revision 5 Revision 6

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I. STATEMENT OF PURPOSE Key Assumptions Statement of Purpose Vision & Mission Statement II. ORGANIZATIONAL DEVELOPMENT Roles & Responsibilities Training Development III. FIVE-YEAR OBJECTIVES AND KEY STRATEGIES Financial Objectives and Analysis Key Strategic Objectives Critical Success Factors IV. CUSTOMERS AND CHANNELS Market Description Industry Forces Market Trends Market Inhibitors Segment Needs and Use Description by Market Segment Buying Process Channels V. COMPETITION Market Share Analysis VI. NECESSARY PRODUCTS AND SERVICES Channel Needs VII. RATIONALE FOR WINNING Scope of the Opportunity Market Segment Priorities & Strategies Development Focus Critical Initiatives Why ADB Will Win VIII. FINANCIAL ANALYSIS OF COSTS AND RETRUNS IX. FUNCTIONAL PLANS AND FUNCTIONAL INITIATIVES Implementation Imperatives Organization-Wide Initiatives Product/Solution Plan Marketing Plan Information Technology Plan X. POTENTIAL PROBLEMS External Internal XI. FIRST-YEAR TACTICAL PLAN
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I. Statement of Purpose This document will describe the way we will grow and manage our business, and how we will market our business in order to win in a highly fragmented and price-competitive marketplace. This document will describe the necessary value delivery system required to attract and delight our customer, and to grow or business on referrals from our customers. We will also show how we will attract new customers through a unique “Affiliate Program” methodology and process. This “affiliate program” is critical to our success in attracting new and valuable customers in our target markets. This plan will allow Blank to (a.) create affiliate programs with key strategic partners, and (b.) attract high value customers, and grow revenues. The key to our success is to always strive to be different from our competitors, and to always delight our customers in new ways.

Key Assumptions This is a list of assumptions that are pivotal to the strategy underlying this plan. As such, they will be the subject of intense study, on a continuous basis, to verify their accuracy and validity. Any significant deviations discovered between the newly understood reality and these assumptions would cause a reexamination of the strategy and possibly changes to the implementation plans.
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This market in the Atlanta Metro area (Blinds and Window Coverings) is very fragmented with many competitors Costs from fabricators in the Atlanta market are not much different from the BBN recommended fabricators (BBN gets paid points from those fabricators) There is an ample supply of installers 70% of people that buy floor covering, either immediately buy, or at some point shortly there after buy window coverings In the past 10 years the popularity of the 2” products has grown to over 65% of the business. Half is faux wood and half is real wood. We do not want to (in the long-term) be measurers and installers Many of the Home Building companies (e. Pulte Homes, John Wieland, KB Homes, etc.) have their own Design Centers where customers can purchase window coverings Many customers include the purchase of their window coverings in the mortgage for their home There many companies in this industry that exhibit bad business practices The new home Real Estate Market will be depressed for some time (out until 2010) Many home builders in the Atlanta metro area are turning to re-modeling to stay in business

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Vision Statement Our Vision is to be the largest volume “shop-at-home” home window coverings business in the Southeast US. We will be a delight to our customers, and be different than our competitors. Our customers will say wow; Blank is a great company offering high quality products and great service! They are a pleasure to business with. Mission Statement Our aim is to provide our customer with a competitive price on a high quality product, and to offer the best experience in their purchases of window covering décor. We will act with the highest of integrity and professionalism with our customer throughout the entire sales process; from initial contact, to following up after installation to ensure total customer delight. II. Organizational Development Organizational Responsibilities Dave Ross – President and Chief Operating Officer  Sales o o

Field Sales Bid/Proposal Development and Management

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Marketing o WEB development o Advertising liaison o Trade shows Business Development (within Dave’s network of influence) o Affiliate partner development Business Operations o IT o Strategic Planning o HR o Supply Chain mgt. Order Management (moved to Cindy’s responsibilities when up and running) o Process orders with fabricators o Ensure order accuracy o Customer communication o Receive and organize product (manage inventory)

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Organizational Development (cont.) Cindy Laughter – Vice President and Chief Financial Officer    Sales Accounting o Document receipts in MS Money 2006 SB Financial Management o Pay bills o Deposits at bank Business Development (within Cindy’s circle of influence) Promotional Event Coordinator Customer Service Office Management

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Lauren Ross. LAR Enterprises – Marketing and Advertising Consultant (contractor)   Marketing Advertising

Organizational Development (cont.) Dean Harrison, Image Delivery & Installation – Installer (contractor)   Measurement Installation

Mike Clarke-Hall, MHI Blinds – Installer (contractor)   Measurement Installation

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III. Five-Year Objectives and Key Strategies The five-year objectives are as follows: Financial Analysis and Objectives *Grow revenues ($000): 2008 Revenues Gross Margin Net Margin (OIBITDA) 286 128.7 114.4 2009 572 257.4 228.8 2010 657.8 296 263 2011 756.5 340.4 302.6 2012 870 391.5 348

*Target a 15% revenue growth per year beginning in year 3 (assumption is that revenues will increase with lower marginal returns in year 3)

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Revenue Metrics: Definitions: Contact – A contact is an actual conversation with a potential customer where information is exchanged between the customer and us with the objective of getting an appointment for an inhome consultation.

Revenue Metrics Daily Contacts Daily Appointments Goal Stretch Goal 7.5 11.2 2.2 3.4 Daily Proposals 2.2 3.4 Monthly Closed Business $23,750.00 $35,625.00

Assumptions: 22 $120 8 30.00% 100.00% 50.00% Goals: $285,000.00 45.00% 40.00% Stretch Goals: $427,500.00 45.00% 40.00% Revenue GM NM Revenue GM NM Margins $128,250.00 $114,000.00 ave. bus. Days in a month ave. rev. per window ave. windows per deal ave % contact turned appt. % appt turned proposal close ratio

$192,375.00 $171,000.00

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Five-Year Objectives and Key Strategies (cont.) Key Strategic Objectives In year 1, create and maintain strategic Affiliate Programs with 6 – 10 Designer/Decorators (preferably with retail fronts and/or members of NAID or SDP) In year 1, create 5-10 strategic Affiliate Programs with the following: Flooring Contractors/Companies, Window Replacement Contractors, Real Estate Agents/Brokers, Home Builders and Re-Modeling Contractors Attract and keep 3 – 5 quality installers with 5 or more years of experience Commissioned sales person in Year 1 In year 3, attract and keep 2 – 3 commissioned sales people with 5 or more years of experience To contribute our time, and be a value to our local community (Cherokee County) Re-Brand in year 2 Franchise the business in year 5; have 3 sales people and 5 installers Critical Success Factors The following are the critical items that must occur or exist in order to meet and exceed our objectives:
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Capture strategic partnerships with well known Designers/Decorators Establish strategic relationships with key builders and real estate agent/brokers in neighborhoods in our target markets Find niche markets to offer unique product innovations; eg. Woven Woods, Sheer Roman Shades, etc.; that have a higher gross margin Ensure (and re-do) accurate measuring upfront Must have a quality installation team (5+ years of experience)

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IV. Description of Customers, Channels of Distribution and Segments Market Description The targeted customers for the Window Coverings:
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Woman; age 28 – 46 New Home Construction  $250K - $1.5M Home Re-models  $350K-$1.5M Window Covering Replacement (homes 7-15 yrs old)  $250K-$1.5M Hotels Commercial Offices Hospitals Restaurants

Industry Forces New Technologies Real Estate Economy Amount of Discretionary Income in the Household Market Trends The following are trends in the marketplace that are driving activities in Window Coverings market in Metro Atlanta: The housing market is very depressed. There are many homes on the market; new and lived in. There are also many foreclosures; as much as 10% of any individual sub-division. 2” – 2.5” Faux Wood Blinds make up 60% – 65% of the products being purchased Woven Woods and Drapes are coming back

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Market Inhibitors Fragmentation – There are many competitors in the Atlanta Metro area offering a variety of products in different market niches. There seems to be no real plan or method to most of the competitors; only a few seem to have a market identified, and a planned method of doing business. This un-organized market causes confusion to the customer, and is something we need to be aware of. We need to accurately target a market, and address it with a very organized plan and message. Proliferation of low price competition – Most of the competition seems to be offering low cost, low to medium quality product in the marketplace. We want to step above this and stand out from our competition by offering a very high quality product at competitive pricing, in order to maintain net margins and stay in business. Lower and Predictable Costs – It is important to work with fabricators that have good systems behind them (ie. good order fulfillment, good communication with dealers (new products, changes in pricing/cost factors, quoting, status of orders, etc.) Focus on the Core Business – We do not want to try to be everything to everyone. We will focus, and concentrate our efforts on our target markets. We will not take every opportunity that comes our way. Our limit is probably going to be 6-8 windows as a lower limit. Buying Process and Cycle The buying process begins with knowing who is going to by our products and services. The woman of the household is going to be the individual that drives the activity with us, then get the husband involved after the initial consultation and measuring. In a household where the woman does not work, the husband is probably going to have the ultimate decision when it comes to the financial purchase (not the choosing of the product – in most cases). In a household where both work, it is going to be a joint decision on the financial decision. The woman in this scenario will probably have the most influence however. It seems that customers want to get an estimate in the very first visit, and we will attempt to do that. If there is custom work, we may not be able to provide an estimate on the first appointment. Usually we should be able to sign a contract on the first or second appointment. The customer will place the order with us by signing a contract. We will get 50% of the final price estimate upfront, and the remaining 50% after the product is installed. There are no refunds, so we need to make sure the customer understands that this is not a purchase of others (like electronics) where they can return an item. This is why the measuring and installation process is critical.

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The Buying Cycle: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Consultation with customer to discover need/want Measurement Customer chooses style and color Proposal developed (preferably at customer site on first visit) Customer signs agreement; collection of 50% of funds ADB ensures accuracy of order, and order product from fabricator (7-10 days delivery on blinds and shades; 5-6 weeks on shutters – add 1-2 wks. for custom) When order is confirmed and goes to production with fabricator, customer is notified of approximate delivery and installation date Product order is shipped to ADB or installer; customer then contacted to set up installation appointment Installation occurs Customer is contacted 2-3 days after installation by Customer Service, and is asked satisfaction level, get feedback onto web site, and asked for referrals Customer is sent thank you note to thank them for their business, and being a valued customer

Segment Needs and Use Description by Market Segment Females are going to be the main buying influence in our business process. There will be many different scenarios, so it is probably important to define each at the discretionary income level. First, let us begin at our ultimate desired customer – the woman (married) that does not work, and has a husband that makes a lot of money (in excess of $300,000 per year). This woman wants the best, and has a desire to “keep up with the Jones’s”. She likes status, and tells her friends about the brands that she has. We will go into this house, and most of the time, propose Hunter Douglas and Kathy Ireland products. The next scenario is much as the first, but in this scenario the wife works as well. The household income in this case would be jointly $300,000 and above annually. We will offer the same as Scenario 1, but leverage the marketing message of Kathy Ireland; “…finding solutions for families, especially busy moms”. Between $100,000 and $300,000 in household income, we will offer as in scenario 1 & 2, but we will go down to the Comfortex line of product. $50,000 - $100,000 level of income; we can offer the Simply Shutters & More and the Timber Blind & Shutter lines. Below $50,000 per year in household income the level of discretionary income is such that window coverings are not an item that is high in priority. The husband will get a TV before buying window coverings.

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Channels of Distribution The channels of distribution for positioning and ultimately selling window coverings in the Atlanta Metro area are not only direct sales, but the establishment of 3rd party “Affiliates” who will be our (non-employee) sales force. The following will be method of sales, and our top 5 partner categories:   Direct Sales Affiliate Partners o Flooring Contractors o Designers/Decorators o Window Replacement Companies o Window Washing Companies o Real Estate Agents o General Contractors (residential and commercial)  Builders  Re-modeling contractors, T&I.

There are many possibilities for a sales model. The following are envisioned scenarios:
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Direct sales to consumers Direct sales to consumers brought to us by our Affiliate channel Wholesale sales to Decorators/Designers Wholesale sales to other

V. Description of Competition
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The Blind Spot – Cheap faux wood blinds and shutters. Their strategy is to sell low priced products with very high margins in volume. Budget Blinds Atlanta Blind & Shutter Inc. The Louver Shop Peachtree Window Coverings Other

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VI. Necessary Products and Services There are so many potential suppliers of our product for our market, that we can be choosey as to who we deal with. We will only to deal with the Fabricators that offer us the best service.

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VII. Functional Plans and Functional Initiatives

Implementation Imperatives It is the utmost of importance, and our highest priority to get the measurement, and the installation right the first time.

Organization-Wide Initiatives

Product/Solution Plan

Functional Plans and Functional Initiatives (cont.) Blank Value Delivery System The following describes the value chain required to execute on the strategies for Blank to be successful as a business, and to meet our financial and strategic objectives. Any changes in each area of the value chain required to be successful will also be described. It begins with the initial contact; regardless of response to an advertisement, call from a referral, or a direct sales contact by us. Our way we deal with the customer from the very first call to the close of the business needs to remain consistent with regard to:    Way we converse with our customer o Polite, courteous, non-aggressive The professional manner in which we schedule an appointment with a potential client with their schedule in mind Follow up and with our customer at each stage of the process: o o o o o o o o  Initial call/set appointment Re-confirm appointment if more than 4 days out Confirm customer order; provide estimated delivery Confirm receipt of product, and schedule installation Be present at time of installation Confirm satisfaction, and customer thank you ASK FOR REFERRALS Send holiday cards to customer/affiliate base

The way we dress o Installers to wear ADB shirts (when possible)

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Product This section on Product is taken from The Dale Group – Blind Broker’s Network. The most popular products. 2” wood and faux woods are the dominate products. In the past 10 years the popularity of the 2” products has grown to over 65% of the business. Half is Faux wood and half is real wood. There are at least 4 different types of faux wood and 3 types of real wood. New types are being introduced several times a year. The key is to look for how strong and ridged the product is. The fewer ladder string the better. I recommend you purchase a low quality blind off the shelf form Home Depot and use it in a side by side comparison to a Alta 2” wood. Point out the: Slat materials # of ladders per linear foot Weight Quality of strings Medal tumblers VS plastic (which fail) Plastic VS medal cord locks Plastic VS metal head rail High profile head rail VS low profile head rail. (low profile has several advantages, much stronger, looks better, better components and lighter weight Faux wood: Extruded. Very poor product stay away from! Pro: Very inexpensive Con: Very unstable, warps, takes too many ladder strings to hold up, turns yellow, bridle and looks like plastic. Commonly found on the shelf at Home Depot and Lowe’s. Foam/Polymer: OK Pro: Very stable, water proof, doesn’t yellow and wrapped in poly propylene Con: Doesn’t look as good as real wood. Solid Polymer: A man made substance extruded and then wrapped in poly propylene. Very Good Product Pro: Very stable, sturdy, water proof, and doesn’t yellow. Con: Take a few extra ladder strings and only comes in solid colors. Basswood Dust/Polymer: The Best! Pro: Very stable, water proof, hard to not tell it’s not wood, and it’s wrapped in poly propylene. Con: Still not real wood, can swell if get wet.

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Product (cont.) Real wood: Rawmen wood: (Never purchase Rawmen wood blinds, (It has mold in the grain) Pro: Very inexpensive Con: Very heavy, un-stable, rough surface and can only be painted. North American Hard Woods. Popular and Alder wood Pro: Inexpensive and stable. Con: Very heavy and the green grain can bleed through. Can only be painted. Basswood (American Linden tree) Pro: Clear wood which means it looks good stained, light weight, very stable. Con: Cost a bit more that other hard woods. We recommend the following woods and faux woods. For price the Timber Express in both faux and real wood. For quality, price and selection. Alta For options and very unusual wood species we recommend HD 1” Aluminum Blinds: They are made by all our vendors. They come in 3 grades: Mirco Mini is ½ inch slates 6 gauge is the light weight 8 gauge is the heavy weight There are several different head rails: 1 inch head rail: Pro: Inexpensive, will fit into tight spaces. Con: Low quality components that break frequently. 1 ½ head rail: Pro: Sturdy, long lasting, easy to fix been around for 40 years. Con: Cost a bit more. (Don’t use Levolor Rivera, the tilter is prone to breakage) The best prices is Timber, the best selection is HD and the best quality and price is Alta Honeycombs shades: Most window covering companies make honeycomb shades. The fabrics are either made by HD, Levolor, Comfortex or Kirsch. All fabrics are not created equal. We recommend the Alta or the HD. Roller Shades: We recommend the Alta or HD with the Cassette head rail. Woven woods shades: We recommend the Alta or HD or Timber. Verticals: We recommend the Alta or Timber. Specialty shapes: Mark Window and HD

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Product (cont.)  Pricing

Recommended Mark Ups Group A) $30-$35 per unit mark up. Mini-Blinds, Wood Blinds, Faux 2”Blinds, Cells, Pleated. Group B) $40-$60 per unit mark up. Verticals, Roller Shades, Premium Wood Blinds Group C) $60-$100 per unit mark up. Silhouette, Nantucket, Vignette, Woven Shades, Brilliance, Jubilance, Roman Shades Group D) $100-$250 per unit mark up. Luminette, Trio, Alouette Group E) $6-$10 per Square Foot mark up Shutters Designers and Decorators 1) $25 fee to measure 2) 10%-20% mark up on products 3) $35 trip charge and standard installation fees per your area. $8-$25 per unit and $2-$4 per square foot for shutter installation. $2-$4 per linear foot for verticals. The designers use your books to choose the style and color. PLUS you can receive rebates back form the vendors because you are a BBN member. You don’t have to sell anything except your services to the Decorator. Important: 1) Get paid up front from either the decorator or homeowner. 2) Never leave your books with anyone. They need to choose with you in their presence. 3) It only takes 6-10 good decorators to keep you busy. Sales Sales, obviously, is a key element in this value delivery system. They are instrumental in articulating to the customer the benefits of the window covering solution, and showing the customer how the proposal is going to positively affect their home.   How it will affect home value What other people will say about their window coverings

There are 3 main categories of lead generation. 1) Things that anyone can do. 2) Things that people with a bit more confidence can do. 3) Things that professional sales people can do.
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Sales (cont.) Things that anyone can do: 1) Pass out door fliers on the doors of new homes. 2) Deed transfers. 3) Drive-by data base marketing. (All New see below) 4) Have a web site. 5) Be a Hunter Douglas Priority dealer = free leads. 6) Direct mail. 7) Newspaper adds. 8) Yellow pages both book and on-line local. 9) Pay Per Clicks (This is HUGE) Things that people with a bit more confidence can do. 1) Door to Door soliciting. 2) Community talks IE Mops, MOMS, Real Estate offices. 3) Networking/Lead exchange groups. Things for professional salespeople. Affiliate program 3-4 month after starting. 1) Deals with window replacement companies. 2) Deals with Interior designers. 3) Commercial jobs. What is drive by database marketing? It was developed by a client who had 3 kids and had limited time to work. She drives through new neighborhoods looking for new homes. She writes down all the new address and the dates. She then goes home and enters them into a database. The next week she goes to the same neighborhood ad looks for new move in’s and potential new move in’s. Returns home to print labels and sends a letter and a coupon of some sort (your choice). One week she sent 86 letters with a holiday special and sold over 30K worth of product. Anyone can do this! She never gets out of the car, her kids are with her helping and you can make it fun! Questions to ask yourself: Do you know and Decorators who can introduce you to the local ASID group? American Society of Interior Designers www.asid.org to find local chapter. Do you know any realtors? They get daily update on homes that are being removed from the multipliable listings. This is the same list as the deed transfers and much easer to get.

Fabricators

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Functional Plans and Functional Initiatives (cont.) Marketing Plan Marketing will focus on four (4) key areas: Communication, Segmentation, Product (hard and soft), and Sales Development. In the short term (6 – 12 months) we will:

A. Communication Marketing Communication is a very important aspect of the overall support program. It is critical that we get a “jump start” in the area of “mind share” with This will allow us to capitalize on. For this reason we will work closely with teams to incorporate our messages into communications to the marketplace. We will also include our value proposition messages in collateral created by Marketing. External Focus The following are the plans, and the strategies that can be used in carrying out “external” marketing communications:
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Our audience:
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Advertising
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We will target:  Local neighborhood targeted newsletters, etc.
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Promotion strategies:  Trade shows/conferences  Co-op advertising with closely related product/service companies  Window washing companies  Builders/Re-modelers  Flooring companies

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Trade Show and Conference Strategies:  Develop external presentation  Develop promotional materials

Marketing Plan (cont.) B. Segmentation Our communications messages, and medium used will be targeted at the specific market segments:
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C. Product
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D. E. Sales Development Target neighborhoods that fall into our target market to sell (list is in priority). Activities will include, but not limited to: dropping post cards in individual mailboxes, drop off brochures at the sales offices (and mention referral program), door knockers on individual resident’s doors, leave promotional items with real estate agents, eg. Refrigirator magnets, pens, etc.
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BridgeMill Town Lake Hills Govenor’s Preserve Eagle Watch Fairways Wyngate Towne Mill Laurel Canyon Lake Arrowhead

Sales Leads Networking We will attend organizational events in order to network, and make other business people and potential Affiliate Partners and Customers aware of our company:      Cherokee Chamber of Commerce events Cherokee Board of Realtors events Builders Association events Local events and mixers o Bridgemill o Town Lake Hills Events promoted by our fabricators o Kathy Ireland o Hunter Douglas o Comfortex o etc. Other related trade shows and events

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VIII. Financial Analysis of Costs and Returns The following documents and diagrams represent the initial estimated cost and revenue analysis Blank Solution revenue and cost analysis:

Cost assumptions were as follows: Start-up assumptions Blind Broker’s Network Franchise Fee Equipment Initial Marketing and Advertising Misc. Bus Exp. Training Office Furniture & set-up Start-up Costs $4,120.00 $500.00 $4,00.00 $1,500.00 $1,250.00 $1,700.00 $13.070.00

On-going

Marketing Advertising Referral Fees Auto

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IX. Interdependencies In order to successfully implement this business plan, the following interdependencies (or linkages) must exist:
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Close ties with the Home Building community Close ties with Designer/Decorator community Close ties with the Real Estate community

X. POTENTIAL PROBLEMS Internal  Conflicts on where to spend advertising dollars

External     Choosing the wrong installer for a job Fabricator issues Un-ethical competitors

XI. First-Year Tactical Plan The focus for the First-Year Plan will be specific to the following areas:  Affiliate Program Development (in order of value) o Designer/Decorators – Offer 10% of the gross sales price for any deal they bring us into. Preferably, the Designer/Decorator will have a retail front that we can put samples/displays in the store Floor Covering Companies – 70% of people that buy floor coverings; immediately buy, or shortly thereafter, buy window coverings Window Cleaning Companies – do co-op advertising offering complimentary discounts/promos to customer; “…xyz company & ADB…” Builders - tell them about our Affiliate Program offering 10% of the gross price for any deal they refer us in to. Also ask them about their own personal homes, their friends & family homes. Lastly, talk about re-models they are working on Real Estate Agent/Brokers - Contact them about the Affiliate Referral Program. Offer $100 referral (in the form of an AMEX gift cert.) to anyone. Special agent/brokers – offer them 10% of the gross price of the deal (AMEX gift cert.)

o o o

o

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Marketing

Post cards to Deed Transfers Brochures to Real Estate offices, law firms (closings are done there) Participation in trade shows and local events Chamber of Commerce Builders Associations First-Year Tactical Plan (cont.) o Advertising Advertise in publications that hit are target markets: Cherokee Ledger Around Town – Town Laker, Sixes Living, Woodstock, Cobb BridgeMill Newsletter Eagle Watcher (?) Fairways Target Markets (customers)  Window Covering Replacements: Town Lake Hills Wyngate
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New Home Developments Laurel Canyon Town Mill Lake Arrowhead Okonee

 Home Re-models: First-Year Tactical Plan (cont.) Robert Williamson Homes Blue Ridge Ronny Raines Homes  Deed Transfers

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One Page Business Plan
Vision Statement: Our Vision is to be the largest volume “shop-at-home” home window coverings business in the Southeast US. We will be a delight to our customers, and be different than our competitors. Our customers will say wow; Blank is a great company offering high quality products and great service! They are a pleasure to business with. Mission Statement: Our aim is to provide our customer with a competitive price on a high quality product, and to offer the best experience in their purchases of window covering décor. We will act with the highest of integrity and professionalism with our customer throughout the entire sales process; from initial contact, to following up after installation to ensure total customer delight. 2008 Objectives: 1. Revenues $286,000 Gross Margin $128,700 Net Margin (OIBITDA) $114,400 2. Activity    New Daily Contacts 8 New Daily Appts. 2 New Daily Proposals 2

3. Sales  Monthly Closed Business $23,750

Strategies: 1. Create and maintain strategic Affiliate Programs with 6 – 10 Designer/Decorators (preferably with retail fronts and/or members of NAID or SDP) Create 5-10 strategic Affiliate Programs with the following: Flooring Contractors/Companies, Window Replacement Contractors, Real Estate Agents/Brokers, Home Builders and Re-Modeling Contractors Target specific markets:   New Homes Re-Models (basements, kitchens, pools, etc.) Older Home Neighborhoods (10-15 yrs. old)

2.

3.

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Find niche markets to offer unique product innovations; eg. Kathy Ireland Woven Woods, etc., Sheer Roman Shades, etc.; that have a higher gross margin Ensure accurate measuring, and have a quality installation team (5+ years of experience) Advertise in strategic media

5. 6.

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One Page Business Plan (cont.) Plans: 1. 2. Weekly Calls to Potential Affiliates – spend half a day a week recruiting affiliates Drive-by Marketing – driving into neighborhoods and writing down addresses of potential prospects to in-turn send post card direct mail Send direct mail postcards to deed transfers (builder to new home owner, home owner to home owner, etc.) Drop off flyers in mailboxes of homes with these characteristics:    No window coverings Window coverings that look old or yellowing Houses that have building/re-modeling permits in the yard

3.

4.

5. Place business card holders in strategic retail outlets:     Coffee shops Nail salons Children’s clothing stores UPS, mail type stores

6. Networking in organizations to gain business leads and potential affiliates:     North GA Referral Network Cherokee County Chamber of Commerce Social networking (Bridge Mill, Woodstock football, etc.) North Cherokee Group

7. Advertise in:   Yodle Newsletters o Bridge Mill o Deer Run o Eagle Watch Internet directories o ShopCherokee.com o CantonGeorgiadirectory.com

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Daily Schedule Monday   Affiliate Calls Post Cards from: o Drive by marketing o Deed Transfers o Other Canvassing (afternoon)

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Tuesday NoGA 7:30-9:00am      Canvassing after NoGA Follow up calls on proposals (afternoon) Affiliate Calls Post Cards from: o Drive by marketing o Deed Transfers Other

Wednesday (all-day canvassing) SECBN 8:30-10:am  Canvassing after SECBN o Harmony on the Lakes o Bradshaw Farms o Other area developments Marketing, etc. while on road

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Thursday   Affiliate calling (1st half day) Follow ups, proposals, market research (2nd half)

Friday     Deed transfers Account payable, accounts receivable GA DOR accounting (only on Friday before the 20th of each month) Marketing stuff

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Business Plan

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Post cards E-mails Snail mails

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