Lady Theresa's Closet business plan by ewmewfud

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Enter your name Tracy Williams

July 8, 2007
Description of My BusinessDescription of My Business

(Session 1): Describe your product or service. The products to be sold from this shop are to include but not limited to: Candy, knitted/beaded purses, hand carved whales, wood products and toys, local jams, jelly and honey, hand made cards, paintings, photographs of local wildlife, trains and scenery. locally roasted coffee, jewelry, aprons, soaps, wreathes, flowers,lotions, books. Each of these items will be made by local artists, some other inventory will be purchased to sell through the store; books and some items not available at this time thru local artists. Lady Theresa's Closet shall offer a sample of things made in Maine. This will be to offer the artist an audience they may be missing or to make available products the customer may not have access to. This should all be done in a friendly enviroment. (Session 1): Describe your product or service.
Targeted Market and Customers

(Session 1): Describe your customer profile and why customers want or need your product or service.Targeted Market and Customers (Session 1): Describe your customer profile and why customers want or need your product or service. The customers coming into Lady Theresa's Closet will be varied, from local residence to families on vacation. The products sold in this store will need to be varied to keep the local resident coming back and something for the visitor to take home or use while on vacation.
Growth Trends In This Business

(Session 1): Is the market for your product or service growing or shrinking?Growth Trends In This Business (Session 1): Is the market for your product or service growing or shrinking? There is a large market for quality made goods at a decent price. Local products have been increasing and I expect this will remain the trend.

Pricing Power

(Session 1): Explain the unique qualities or circumstances concerning your product or service that will enable you to maintain profitable pricing.I will be the middleman so to speak. I purchase products from the original vendor therfore I am able to keep items at one mark up not two.

(Session 2): Describe convincingly that you are passionately committed to your new business and have the realism to make inevitable hard choices.(Session 2): Describe convincingly that you are passionately committed to your new business and have the realism to make inevitable hard choices. While living just outside the Bath community I have visited many shops and talked to lots of people. Everyone wants to shopo where they feel they are getting a good product at a good price. That includes me. I have been searching for local artists of all sorts to make a shopping experience that is unique as well as pleasant. In the space I will be occupying this itself lends to a very interesting idea. The Train Station has not been open for quite some time and has a lot of interest in just being there. With the interest in the station and the Chamber of Commerce, ticket sales from the train and the addition of a food vendor I see Lady Theresa's Closet as a way to top off the experience.

Work Experience Related to My Intended Business

(Session 2): Describe your work experience in the business you plan to start including a list of your skills and knowledge, which will be required in your business. I have worked in retail some in the past but not not as much as with customer service. Customer service has been my work as a paramedic and working with the customer service group from the company that employs me at this time. This is where Gale comes into play she has only done retail and management. Gale has a strong history for managing small markets with several employees.

Personal Background and Education Credentials

(Session 2): Describe yourself, including your education.At this time I am employed as a paramedic for a local private company. I have been teaching in this field for the last ten years. Teaching has included CPR class for continuing education and classes for licensure thru the State of Maine EMS. Education has been an essential part of training as I am sure it will continue to be. I have attended classes at SMCC, UMA and KVCC. Gale has been employed as a manager of Moe's Store, Morse's Store, Burgess in Harpswell and several other shops and jobs dealing with people and management thru the years.


Computer and Communications Tools

(Session 3): Furnish a tabulation of each piece of equipment you intend to use including a description and the budget for each. You can use the following as a guide.
Resource Requirements:

Telephones Cell phone $50.00 monthly Land line

Computers Laptop purshased printer-needed cost $90

Internet I am exploring the options.


Business Organization

(Session 4): Explain the form of business organization you intend to use and why it is best for your business.

Professional Consultants

(Session 4): List the names of your lawyer, accountant, insurance agent and any other professionals.


(Session 4): List what licenses you will require to go into business. DBA Tax ID # EIN


Due Diligence Procedures for Licenses, Permits and Business Names (Session 14): List the following: DBA: Lady Theresa's Closet Zoning: The building was rehabbed for this intended use Licenses: Local: DBA from the Town of Bath, Accquired State: Maine tax ID #, accquired Federal: EIN #, accquired Trademark: none at this time Sellers Permit: EIN: obtained

Insurance (Session 6): List the forms of insurance coverage including costs are anticipated. Cost anticipated $600 yearly, the amount will adhear to the lease agreement.


Location Criteria

(Session 7): Outline your location criteria.  space requirements The space in still to be determined for actual footage and space. This is a shared space with the information center and the train station ticket sales.  future requirements- In the future storage space may be needed.  estimated occupancy cost as a % of sales - This is unknown at this time.  zoning and use approvals - This site has been approved for this commercial use.



(Session 8): Furnish, as a separate exhibit of your starting balance sheet and projected income statements for the first six months to one year.

Cash Flow Planning

(Session 8): Provide a separate exhibit of your one year cash flow analysis including estimated sales, all costs and capital investments. Provide a checklist of all expense items for input into your cash flow projection.

Analysis of Costs

(Session 8): What are all of my costs: fixed, variable, product, delivery, etc. Rent - unknown telephone- $100/monthly internet-$50/monthly Credit card system and monthly cost - start up $500 monthly fee dependant on sales

Internal Controls

(Session 8): Explain your: Intended internal controls and cash controls, check signing policy, strategy for controlling shrinkage and dishonesty and control of incoming merchandise. When deliveries are made the artist or maker will provide an inventory list and the staff at Lady Theresa's Closet will provide confirmation of reciept of the products listed. This will be done by Gale or myself.


Financing Strategy

(Session 9): Provide a chart or spreadsheet showing all of the sources of your start-up capital. Explain any government assistance or loan guarantee programs you intend to apply for. If your business is for use with potential lenders, include a cash flow projection and projected income statements to show sources of repayment of loans. Be conservative in your forecasts. List your sources of referrals to lending institutions. (Your accountant, etc.)


E-Commerce Plans

(Session 10): Describe in detail how you plan to use the Internet in marketing your product or service. After start up a web page will be started to offer shop items on the net.

E-Commerce Budgeting

(Session 10): Provide a detailed breakdown of the costs involved in creating, operating and maintaining your e-commerce activities.

E-Commerce Competition

(Session 10): Describe how your best competitors utilize e-commerce and your strategy to improve on their practices.


Due Diligence Procedures for Acquisitions

(Session 11): List the following: Your consulting team: Attorney, accountant, banker, broker, etc. Accountant- Heidi Harkenrider, Old Bath Rd, Brunswick Attorney- Michael Turndoff, Bruswick Verification of seller’s revenues: how you plan to authenticate. A cash register will be used. Each clerk will have a number and each artist will have a department number and there will be plu's for artists with mutiple products. This will be kept on a memory card and transfered to the laptop where the accountant will observe. At the end of evey month a closing statement will be done for each artist and a check to be sent out or available by the 15th of each month. At this time any descrepencies will be inventoried mannualy. Sellers records to be inspected: Financial statements, income tax returns, sales backlog, cash deposit records, utility bills, accounts payable and receivable, backlog, financial comparisons of similar businesses, etc. Heidi Harkenrider will assist with all accounting. Inspections and approval of leases and contracts. These will be taken to Michael Turndorff Esq. or his appointee. Appraisals, as appropriate. If a franchise, interview with randomly selected franchisees. Finance plan for acquisitions: include sources including seller financing. Market conditions. Value of goodwill. Method of purchase: stock, assets, etc. Cas items will be paid for on reciept from a prior fund. All other items will be on consignment.


Marketing Plan

(Session 12): Describe your overall marketing and sales strategy including how you plan to get and retain customers. The plan is to offer a good product at a fair price. With products that have been hard to find in one place before, all over the area. This should make finding quality goods easy to obtain. This in return should bring the customers back again and again. Proving an atmosphere that is friendly should also help.Marketing Plan The goal is to provide locally made items by local crafts people. In having local crafts people the quality can be higher with less overhead this will let the prices of items remain reasonable and the quality high. The Train will provide a certain amount of traffic along with the ticket sales of the train. Advertising to this group with a coupon will get them thinking about stopping in while the train is stopped. Using local newspapers to place ads and news about the opening will start the marketing for Lady Theresa's Closet. With a late start in this summers activities dead lines have already passed for the summer events list so the fall and winter lists will be approached. The Candy Cane Train will also generate about 2,500 passangers. This will be an excellant opportunity to promote the Christmas season and the start of the next year. As the shop opens and the flow of patrons will be looked at so that magazine publications such as Downeast Magazine and their publications will be researched for further marketing.
Advertising and Promotion Plans

(Session 12): Describe your plans and budgets for advertising and promotion Trifold pamphlets or flyers will be put out in some of the local business to promote that we are working together and to bring an interest in what each shop has to offer. After the store opens a photographer will come in and take pictures that may be used on a future web site and for the flyer. Promotion of individual artists will take place with them either being in the store or with informational flyers about the artist. Promations will be in the form of coupons for a percentage off or to directly promote an artist.

Purchasing and Inventory Control

(Session 12): See “how to buy” checklist.Purchasing and Inventory Control (Session 12): See “how to buy” checklist. Some of the items are to be purchased outright. The whole bean coffee and local candy makers are working with me to select the items that are appealing to the target group. We are working in small quanities that are able to be refilled on a daily to weekly schedule. The flow of goods will depend on the amount on hand and how perishable will be worked with. Wicked Joes's Coffee has an agreement that they will deliver if we run out of product or we may pick it up in Brunswick if needed sooner that they can supply. Orr's Island Candy store has agreed that a call the day before and they will deliver or it can be picked up on the way to the shop. Bath Sweet Shop needs a week to two weeks for larger orders or for case lots of lollypops etc. Debbies Garden will provide daily or every other day delivery of three small bouquets. Debbie will also provide specialty soaps, herbies and dried flower wreathes the next day if needed. All other items are to be on consignment. The artist will be called when a inventory has reached a minimum quanity, as agreed on earlier.
Training Policies

(Session 12): Describe your plans for hiring and training your sales associatTraining Policies At this time all associates will have a product in the shop. They will then be trained to use the cash register to sell tickets for the Train and the Candy Cane Train. This is to be kept at a minimum at the start of Lady Theresa's Closet. Gale, a partner, will be a primary associate along with myself. Janet, my mother will be added after the opening and the kinks are worked

The Competition

(Session 12): Describe your strongest competitors and how you intend to competeDowntown Bath is very competative with all of its shops. My goal is not to compete with these stores but to work with the local stores. I will have a unique place to feature a small sample of what Bath has to offer, each passanger of the train will be able to sample what is in my store and then come back for the other stores in town or shop the downtown until the next train.

How I Plan to Take Advantage of Competitors Weak Points

(Session 12): List your competitor's shortcomings and how you can capitalize on them.How I Plan to Take Advantage of Competitors Weak Points While doing research in Bath I have been to most of the shops. This has lead me to be aware of how they treat their regular costomers compared to their visitors. Regular customers are greated with smiles and conversation while visitors are sometimes ignored or treated as if they are from away and doing business with them is the job they do. With that being said I would like everyone that walks through the doors of Lady Theresa's Closet to feel welcome and invited wether they are a visitor or old friend.


(Session 13): Describe your growth: You might include development of profitable pilot operation, sources of financing, cash flow, accounting system in place, incentive compensation plan for managers, benefits package and policies, economics of scale.

Handling Major Problems

(Session 13): Describe scenarios of adverse conditions and how you intend to respond to them. For example how you would plan to handle a 25% reduction in sales, or new competitions, etc. At this time I have many artists that have not had space in Bath. This would continue to what should be experienced at Lady Theresa's Closet. If things change then products need to change. Prepare a cash flow projection based on lowered expectations and show how and where you would reduce costs to maintain liquidity. With every artist being on consignment the cash flow will be dependant on sales. This should not cause a hardship on either the store or the artist. There is a certain curve that is expected in any store.


Due Diligence Procedures for International Trade(Session 14): List the following:N/A at this time Export Counseling: List your sources of counseling including your export legal counsel. Export Readiness: Describe the economic reasons and justification for your plans. Outline the personnel, budget and procedures you plan to implement. Agent/distributor Agreement: Provide a draft of your agent/distributor agreement and the agents/distributors you are considering to do business with. Analysis of Competitive Considerations: Explain the due diligence resources to be used in the evaluation opportunities including appropriateness for your business. Evaluation of Country Risk: Explain the resources to be used in the evaluation of country risk (is the country in good standing?) including potential sources of financing. Describe your plans to insure protection of your intellectual property rights. Describe your marketing and advertising plans. Evaluate potential problems regarding product adaptation to standards and measurements. Describe the licensing requirements for export or import of the product or service you plan to market in international trade.

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