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Plan Outline
Scrapbooking Store Business Plan
It's Scrappy!
Strategy and Implementation Summary
The main financial goal for It's Scrappy! is to increase sales by 5% for years one and two. This will be accomplished through regular advertising and mailings to our target markets, plus monitoring of our competitor's pricing and our supplier's costs to help maintain a competitive edge.
5.1 Competitive Edge
Stock all standard exempt supplies in store and provide reasonable pricing for special order items through our catalog.
- Have our supplies priced at or lower than competitors in our area.
- Take special interest in the children of our community by offering special classes and a membership plan tailored to their age group and interests.
- Keep our employees up to date on new exempt ideas and techniques, and teaching them to our customers
- Maintain a website that supports our store to help generate more customers in the long term. Our specially-designed "Tips" web page will make it easy for potential customers from all over to learn more about this hobby.
5.2 Sales Strategy
We will track our local competitor's prices and compare their prices to our supplier's prices. This will help us achieve our lowest price goals and still stay within our target markup.
5.2.1 Sales Forecast
The following is our projected sales forecast. We project a 5% increase in sales for each of the first two years, so that our third year of sales will be 10% above year one. These are estimated figures using the monthly costs of our overhead and supplies along with our percent markup and the prices we will charge for classes and page design.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| SCRAPBOOK SUPPLIES | £50,000 | £52,500 | £55,000 |
| CLASSES | £26,400 | £27,720 | £29,040 |
| PAGE DESIGN | £10,750 | £11,288 | £11,825 |
| Other | £0 | £0 | £0 |
| Total Sales | £87,150 | £91,508 | £95,865 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| SCRAPBOOK SUPPLIES | £12,500 | £13,125 | £13,781 |
| CLASSES | £6,600 | £6,930 | £7,277 |
| PAGE DESIGN | £2,688 | £2,822 | £2,963 |
| Other | £0 | £0 | £0 |
| Subtotal Direct Cost of Sales | £21,788 | £22,877 | £24,021 |
5.3 Milestones
The following milestones outline the main tasks for the first year of operation.
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Open business account | 11/1/2004 | 11/1/2004 | £500 | Owner | Department |
| Class Schedule Design | 12/15/2004 | 12/20/2004 | £0 | Owner | Department |
| Class Handouts Design/Print | 11/30/2004 | 12/15/2004 | £100 | Owner | Department |
| Mailing list (purchase) | 11/1/2004 | 12/1/2004 | £250 | Owner | Department |
| Ads for Part-time hires | 11/1/2004 | 11/8/2004 | £50 | Owner | Department |
| Training part-time hires | 11/29/2004 | 11/30/2004 | £1,000 | Owner | Department |
| Newspaper ad--Grand Opening | 12/26/2004 | 1/1/2005 | £500 | Owner | Department |
| Order-G. Opening Refreshments | 12/10/2004 | 12/10/2004 | £300 | Owner | Department |
| Class Mailing (first) | 1/10/2005 | 1/10/2005 | £250 | Owner | Department |
| Misc. | 1/1/2005 | 1/1/2005 | £0 | ABC | Department |
| Totals | £2,950 | ||||
5.4 Marketing Strategy
We will be promoting the store via the local newspaper. We will also have a grand opening "Get to Know Us" scrapbook party where we will offer refreshments, introduction to our staff, and tours of our store as well as sale pricing on many basic exempt supplies.
In the future, we will be pursuing mailings to regular customers and special mailings to potential customers in our target market areas as well as looking into billboard advertising.