Sports Equipment Café Business Plan by PaloAltoSoftware

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                                                            Table of Contents

1.0 Executive Summary.............................................................................................................................1
           Chart: Highlights ......................................................................................................................3
     1.1 Objectives ...................................................................................................................................3
     1.2 Mission........................................................................................................................................3
     1.3 Keys to Success ........................................................................................................................4
2.0 Company Summary.............................................................................................................................4
     2.1 Company Ownership .................................................................................................................4
     2.2 Start-up Summary ......................................................................................................................5
           Chart: Start-up .........................................................................................................................5
           Table: Start-up .........................................................................................................................6
           Table: Start-up Funding ..........................................................................................................7
     2.3 Company Locations and Facilities ..........................................................................................7
3.0 Products ...............................................................................................................................................7
     3.1 Product Description...................................................................................................................8
     3.2 Competitive Comparison..........................................................................................................8
     3.3 Sales Literature ..........................................................................................................................9
     3.4 Future Products ..........................................................................................................................9
     3.5 Sourcing ......................................................................................................................................9
     3.6 Technology ...............................................................................................................................10
4.0 Market Analysis Summary................................................................................................................10
     4.1 Market Segmentation..............................................................................................................10
           Table: Market Analysis .........................................................................................................11
           Chart: Market Analysis (Pie)................................................................................................11
     4.2 Target Market Segment Strategy...........................................................................................11
           4.2.1 Market Trends .............................................................................................................12
           4.2.2 Market Growth .............................................................................................................12
           4.2.3 Market Needs ..............................................................................................................12
     4.3 Industry Analysis.......................................................................................................................12
           4.3.1 Competition and Buying Patterns .............................................................................13
           4.3.2 Main Competitors .......................................................................................................13
           4.3.3 Industry Participants....................................................................................................13
           4.3.4 Distribution Patterns ...................................................................................................14
5.0 Strategy and Implementation Summary..........................................................................................14
     5.1 Strategy Pyramid .....................................................................................................................14
     5.2 Value Proposition ....................................................................................................................14
     5.3 Competitive Edge....................................................................................................................14
     5.4 Marketing Strategy ..................................................................................................................15
           5.4.1 Promotion Strategy.....................................................................................................15
           5.4.2 Distribution Strategy ...................................................................................................15
           5.4.3 Positioning Statement ................................................................................................16
           5.4.4 Pricing Strategy...........................................................................................................16
     5.5 Sales Strategy..........................................................................................................................16
           5.5.1 Sales Forecast ............................................................................................................16
                  Chart: Sales Monthly ...................................................................................................17
                  Table: Sales Forecast.................................................................................................17
                  Chart: Sales by Year ...................................................................................................18
           5.5.2 Sales Programs ..........................................................................................................19
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                                                           Table of Contents
     5.6 Milestones ................................................................................................................................19
           Table: Milestones..................................................................................................................19
           Chart: Milestones ..................................................................................................................20
6.0 Management Summary ....................................................................................................................20
     6.1 Organizational Structure..........................................................................................................20
     6.2 Management Team .................................................................................................................20
     6.3 Personnel Plan.........................................................................................................................21
           Table: Personnel ...................................................................................................................21
7.0 Financial Plan ....................................................................................................................................21
     7.1 Important Assumptions............................................................................................................21
           Table: General Assumptions ...............................................................................................21
     7.2 Key Financial Indicators ..........................................................................................................21
           Chart: Benchmarks ...............................................................................................................22
     7.3 Break-even Analysis................................................................................................................22
           Table: Break-even Analysis .................................................................................................22
           Chart: Break-even Analysis .................................................................................................23
     7.4 Projected Cash Flow...............................................................................................................23
           Table: Cash Flow..................................................................................................................24
           Chart: Cash ...........................................................................................................................25
     7.5 Projected Profit and Loss .......................................................................................................25
           Chart: Profit Yearly................................................................................................................26
           Chart: Gross Margin Monthly ...............................................................................................26
           Chart: Gross Margin Yearly..................................................................................................27
           Table: Profit and Loss ..........................................................................................................27
           Chart: Profit Monthly .............................................................................................................28
     7.6 Projected Balance Sheet ........................................................................................................29
           Table: Balance Sheet ...........................................................................................................29
     7.7 Business Ratios .......................................................................................................................30
           Table: Ratios .........................................................................................................................31
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: Profit and Loss ...............................................................................................................................3
Table: Cash Flow .......................................................................................................................................4
Table: Balance Sheet ................................................................................................................................5
Table: General Assumptions ....................................................................................................................6




                                                                                                                                                Page 2
                                        The Boulder Stop

1.0 Executive Summary
   Introduction

   The Boulder Stop will be a combination coffee shop and roc k climbing gear store strategically
   loc ated near one of the Pacific Northwest's premier climbing spots. Our main strategy is to
   develop The Boulder Stop experience as part of the overall roc k climbing ac tivity. We don't
   intend to be just a store, but rather a roc k climbing cultural center for regulars and visitors to
   Smith Roc k, Oregon.

   It is the purpose of this business plan to lay the foundations of the company's vision,
   philosophy and strategy to the firm's principal investors and debtors and to align the various
   elements of the company to create a coherent system of sustainable customer satisfac tion
   and profits.

   The Company

   The store is loc ated one mile from Smith Roc k State Park in the Central Oregon desert. It is
   conveniently loc ated in an area frequented by national and international tourists.

   We expec t a high degree of expertise and enthusiasm from our employees and we will
   compensate them ac cordingly. All employees are hired for their expertise and enthusiasm and will
   be paid at a rate well above the minimum wage to fac ilitate low-turnover and long-term
   loyalty. The company plans to hire two part-time employees as espresso servers/gear experts.

   Sourcing is critical for any enterprise, espec ially a retail operation. The Espresso Harvest will
   be our coffee vendors, and will handle many in-store merchandising issues for their line of
   coffee products. The sport and recreation inventory will be sourced directly from manufacturers
   like Blac k Diamond, Boreal, and Petzl.

   Luke Walsh will be the general manager and founder of The Boulder Stop. Mr. Walsh graduated
   from the University of Oregon with a degree in Business Management. Luke's success as a
   Nordstrom employee combined with his formal business training makes him an ideal community
   leader and business owner.

   The Market

   Consumer expenditures for roc k climbing equipment rose to $4,000,000 in Central Oregon last
   year. We expec t sales to increase steadily as Oregon's population grows and the roc k-climbing
   industry bec omes increasingly popular.

   The Western Oregon presence of several large universities is expec ted to fuel our business, as
   does the status of Smith Roc k as an international destination spot for roc k climbing
   enthusiasts. Individuals from as far away as Japan, Europe, South America, and Australia seek
   out Smith Roc k as a beautiful and challenging sport and roc k climbing destination. We count
   worldwide readers of such publications as Roc k & Ice magazine and Outdoor Adventure among
   our target audience.

   Trends are in our favor. There are three major trends at work in our market:

       ·   Outdoor sports in general and roc k climbing in particular are gaining exposure. The roc k
           climbing gyms in the Silicon Valley, Seattle, Eugene, and other loc ations are clear
                                                                                                   Page 1
                                    The Boulder Stop
        evidence of this trend.
    ·   Central Oregon is bec oming a major vac ation destination and recreation spot.
    ·   The gourmet coffee trend started in the Northwest, and is spreading quickly throughout
        the nation. A growing number of people look to their high-end coffee drinks as a way to
        enjoy a moment, and as an integral part of any outing or ac tivity.

There are two important underlying market needs; a real need for a highly professional provider
of climbing gear and a soc ial meeting plac e/refreshment provider near the Smith Roc k loc ation.
In many ways the Boulder Stop mimics the positioning of a ski lodge; selling crucial gear while
providing a plac e for coffee, snacks, and talk.

The Boulder Stop has several advantages over its leading competitor including newer inventory
and more modern interior fixtures, an atmosphere that appeals to a wider market than our largest
competitor, and the coffee/espresso concept.

The Boulder Stop will use advertising and sales programs to get the word out to customers.

    ·   2000 four-color broc hures
    ·   Half-page newspaper advertisements in Oregon regional newspapers,
    ·   Web promotions

Our three main target markets are Weekend warriors, Hard-core climbers, and The curious. We
predict that the number of Hard-core climbers will grow faster than the number of Weekend
warriors. Climbing is bec oming more and more technical, an "Insider's sport" and we believe this
will fuel the growth of dedicated, highly sophisticated climbers.

Financial Projections

The Boulder Stop expec ts to earn modest profits by year three based on projected sales.
These projections are based on the following assumptions.

    ·   Growth will be moderate, cash balance always positive.
    ·   Marketing will remain at or below 15% of sales.
    ·   The company will invest residual profits into company expansion and personnel.

We predict advertising costs and consulting costs will go up in the next three years. This will
give The Boulder Stop an ac ceptable profit-to-sales ratio of by Year 3. Normally, a start-up
concern will operate with negative profits through the first two years. We expec t to avoid that
kind of operating loss by knowing our competitors, our target markets, industry direction, and
the products we sell.




                                                                                             Page 2
                                        The Boulder Stop




1.1 Objectives
      1.   To make The Boulder Stop a loc al favorite for tourists, hikers, and climbers on their way
           to/from Smith Roc k.
      2.   To ac hieve the largest market share in the region for appeals gear. We will use State of
           Oregon economic data to compile an estimate of market share goals for Year 2.
      3.   To be an ac tive and voc al member of the community, and to provide continual re-
           investment through sponsorship of community ac tivities and celebrations. We will sponsor
           five or more events during the year, including fun climbs, family bouldering, and
     
								
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