Home Decoration Fabrics Business Plan by PaloAltoSoftware

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                                                            Table of Contents

1.0 Executive Summary.............................................................................................................................1
     1.1 Objectives ...................................................................................................................................1
     1.2 Mission........................................................................................................................................2
     1.3 Keys to Success ........................................................................................................................2
           Chart: Highlights ......................................................................................................................2
2.0 Company Summary.............................................................................................................................2
     2.1 Company Ownership .................................................................................................................3
     2.2 Company History........................................................................................................................3
           Table: Past Performance .......................................................................................................5
           Chart: Past Performance .......................................................................................................6
     2.3 Company Locations and Facilities ..........................................................................................6
3.0 Products ...............................................................................................................................................6
     3.1 Product Description...................................................................................................................7
     3.2 Competitive Comparison..........................................................................................................8
     3.3 Sales Literature ..........................................................................................................................8
     3.4 Sourcing ......................................................................................................................................8
     3.5 Technology..................................................................................................................................9
     3.6 Future Products ..........................................................................................................................9
4.0 Market Analysis Summary..................................................................................................................9
     4.1 Market Segmentation..............................................................................................................10
           Table: Market Analysis .........................................................................................................11
           Chart: Market Analysis (Pie)................................................................................................12
     4.2 Target Market Segment Strategy...........................................................................................12
           4.2.1 Market Needs ..............................................................................................................13
           4.2.2 Market Trends .............................................................................................................13
           4.2.3 Market Growth .............................................................................................................14
     4.3 Industry Analysis.......................................................................................................................15
           4.3.1 Industry Participants....................................................................................................15
           4.3.2 Distribution Patterns ...................................................................................................17
           4.3.3 Competition and Buying Patterns .............................................................................17
           4.3.4 Main Competitors .......................................................................................................18
5.0 Strategy and Implementation Summary..........................................................................................19
     5.1 SWOT Analysis ........................................................................................................................20
           5.1.1 Strengths ......................................................................................................................20
           5.1.2 Weaknesses................................................................................................................20
           5.1.3 Opportunities ...............................................................................................................20
           5.1.4 Threats .........................................................................................................................21
     5.2 Strategy Pyramid .....................................................................................................................21
     5.3 Value Proposition ....................................................................................................................22
     5.4 Competitive Edge....................................................................................................................22
     5.5 Marketing Strategy ..................................................................................................................23
           5.5.1 Promotion Strategy.....................................................................................................23
           5.5.2 Distribution Strategy ...................................................................................................23
           5.5.3 Marketing Programs ...................................................................................................23
           5.5.4 Positioning Statement ................................................................................................25
           5.5.5 Pricing Strategy...........................................................................................................25
     5.6 Sales Strategy..........................................................................................................................25
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                                                           Table of Contents
           5.6.1 Sales Programs ..........................................................................................................26
           5.6.2 Sales Forecast ............................................................................................................27
                 Table: Sales Forecast.................................................................................................28
                 Chart: Sales Monthly ...................................................................................................28
                 Chart: Sales by Year ...................................................................................................29
     5.7 Strategic Alliances...................................................................................................................29
     5.8 Milestones ................................................................................................................................29
           Table: Milestones..................................................................................................................30
           Chart: Milestones ..................................................................................................................30
6.0 Web Plan Summary ..........................................................................................................................30
     6.1 Website Marketing Strategy...................................................................................................31
           6.1.1 Website Demographic Strategy................................................................................31
           6.1.2 Web Market Needs.....................................................................................................32
           6.1.3 Web Market Trends ....................................................................................................32
           6.1.4 Web Market Growth....................................................................................................33
     6.2 Development Requirements ...................................................................................................34
           6.2.1 Front End .....................................................................................................................34
           6.2.2 Back End .....................................................................................................................35
           6.2.3 Resource Requirements ............................................................................................35
           6.2.4 Future Development ...................................................................................................35
     6.3 Business Model .......................................................................................................................35
     6.4 Site Positioning........................................................................................................................36
7.0 Management Summary ....................................................................................................................36
     7.1 Organizational Structure..........................................................................................................36
     7.2 Management Team .................................................................................................................36
     7.3 Management Team Gaps .......................................................................................................36
     7.4 Personnel Plan.........................................................................................................................37
           Table: Personnel ...................................................................................................................38
8.0 Financial Plan ....................................................................................................................................38
     8.1 Important Assumptions............................................................................................................39
           Table: General Assumptions ...............................................................................................39
     8.2 Key Financial Indicators ..........................................................................................................39
           Chart: Benchmarks ...............................................................................................................40
     8.3 Break-even Analysis................................................................................................................40
           Chart: Break-even Analysis .................................................................................................40
           Table: Break-even Analysis .................................................................................................41
     8.4 Projected Profit and Loss .......................................................................................................41
           Table: Profit and Loss ..........................................................................................................42
           Chart: Gross Margin Yearly..................................................................................................43
           Chart: Profit Monthly .............................................................................................................43
           Chart: Profit Yearly................................................................................................................44
           Chart: Gross Margin Monthly ...............................................................................................44
     8.5 Projected Cash Flow...............................................................................................................45
           Chart: Cash ...........................................................................................................................45
           Table: Cash Flow..................................................................................................................46
     8.6 Projected Balance Sheet ........................................................................................................47
           Table: Balance Sheet ...........................................................................................................47
     8.7 Business Ratios .......................................................................................................................47
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                                                           Table of Contents
           Table: Ratios .........................................................................................................................49
     8.8 Financial Risks and Contingencies .......................................................................................50
Table: Sales Forecast ...............................................................................................................................1
Table: General Assumptions ....................................................................................................................2
Table: Profit and Loss ...............................................................................................................................3
Table: Cash Flow .......................................................................................................................................5
Table: Balance Sheet ................................................................................................................................6
Table: Personnel ........................................................................................................................................7




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                                          Interior Views

1.0 Executive Summary
   Interior Views is a retail store offering home dec orator fabrics and complementary home
   ac cessories and resources. It is now approaching its fifth year in business. This destination store
   offers the advantages of providing fabrics spec ifically designed for home dec orator use in
   fabric widths of 54 inches and greater. Over 900 fabrics are available on the floor at any time
   with more than 10,000 sample fabrics for custom "cut" orders. Customers see, touch, feel, and
   take the fabric to their home as they work through with their purchasing dec ision.

   Interior Views has learned much from the past years of operation, the market has changed,
   and will be making key dec isions, including the upcoming 5-year lease. Now is the time to step
   bac k, look at the past, and attempt to set a strategic direction for the future. This is the
   primary purpose of this business plan. It will address loc ation, finance, product, and service
   issues that will be key to the future success of the business.

   Interior Views currently has a loc al informational content website but has not given it the
   attention or foc us needed to assess its marketing potential. The site offers information
   content, but it does little to produce revenue or enhance the image of the business.

   Market research indicates a specific and growing need in and beyond the loc al area for the
   products and services Interior Views offers in the loc al retail market it serves and there are
   indications that Web sales will play an increasing role in c onnecting customers with sellers.
   The most significant challenge is that the core target customer, women between the ages of
   35 and 50, are some of the least likely of groups to shop on the Web. Shopping for dec orator
   fabric presents an additional challenge.

   The online marketing objective is to ac tively support continued growth and profitability of
   Interior Views through effective implementation of the strategy. The online marketing and sales
   strategy will be based on a cost effective approach to reac h additional customers over the
   Web through the use of an eBay website to generate attention and revenue for the business.
   The Web target groups will include the more Web-savvy younger customer base that the store
   currently serves (women between the ages of 25 and 35) and out-of-area potential customers
   that are already shopping on the Web for the products Interior Views offers. The eBay website
   will foc us on its selection, competitive pricing, and customer service to differentiate itself among
   other Internet options.



1.1 Objectives
      1.   Maintain a healthy gross margin eac h month.
      2.   Generate sales eac h business day eac h month.
      3.   Realize a modest annual growth rate this year.
      4.   Increase revenues through eBay-based sales to $5,700 per month by the end of the
           first year, with a 5% growth rate thereafter.
      5.   Enhancing "information channels" with the established customer base to provide additional
           options to receive information from the store.
      6.   Meet the needs of customers outside the immediate serving area through eBay/Web
           ac cessibility.




                                                                                                  Page 1
                                         Interior Views

1.2 Mission
   Interior Views LLC is a store for disc erning, quality-consc ious buyers of dec orator fabrics and
   complementary home ac cessories and furniture. The store celebrates the home through the color
   and texture of fabric. The experience informs, inspires, and shows people how to transform
   their home into a unique and personalized expression of themselves. Interior Views seeks to
   encourage people to imagine what can be, and help make this vision a reality.



1.3 Keys to Success
   The primary keys to success for the company will be based on the following fac tors:

      ·   Sell products of the highest quality with excellent customer support
      ·   Communicate with our customer base through continued use of the newsletter,
          postcards, and our website.
      ·   Maintain gross margins in excess of 45%
      ·   Retain c ustomers to generate repeat purchases and make referrals.
      ·   Generate additional sales to cover all expenses in support of the website as an
          individual profit center.




2.0 Company Summary
   Interior Views offers quality products for home dec orating featuring first quality dec orator
   fabrics, related drapery hardware, pillow forms and other sewing notions, as well as home
   ac cessories and select antiques to complement the home's interior. The store is also a resource

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                                          Interior Views
   for the "do-it-yourselfers" through hosting assoc iated classes that foc us on the use of fabric, as
   well as for the "make-it-yourself" customer who is able to take advantage of the craftspeople
   who will use their fabrication and upholstery services based on the fabric purchase of the
   customer. The intent of the store and its website is to be considered the premier choice for
   these products and services within our market and beyond.



2.1 Company Ownership
   Interior Views is a Limited Liability Company. It is owned by two couples, the Williams at a
   combined 70% ownership and the Swansons at 30% ownership. Judy Williams is president,
   Doug Williams assists her in select areas of marketing and store layout. The Swansons take a
   "silent partner" role in the venture.



2.2 Company History
   The business has had a surprising journey since is opening on Dece
								
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