Introduction
Flyleaf Books a small, start-up bookstore in Cleveland, Ohio. It is the goal of the company management to acquire local market share in the used bookstore industry through low price, a dominant selection of products, a competitive variety of services including a buyback/trade program and hard to find book search, plus a relaxing, friendly environment that encourages browsing and reading.
Company
Flyleaf will be a limited liability corporation registered in the state of Ohio. The company will be owned jointly by James Vinck, the former head librarian of Philadelphia City Library and Aracela Vinck.
Vinck established the firm to provide a sustainable income, meet new people, and leave a business that is profitable to his family. Flyleaf Books plans to open its shop in Brecksville’s busiest area, an outlying suburb near Cleveland. This area is known for its high-quality establishments and upscale residents. Our company is located in an old furniture store of 8,000 feet. It allows us to stock large amounts.
Products/Services
Flyleaf Books can offer a wide range book, magazine and music selections. There are many categories, such as fiction, nonfiction, business science, business, science for children, hobby collecting, and for adults. The CD’s will be the main focus of our music selection, as they are the most widely used and take up least floor space. We will also offer a competitive buy-and-trade service to help lower our inventory acquisition costs. This will make our store more appealing to customers. We offer a search and ordering service for customers who want to find difficult to obtain items. Flyleaf Books is going to have a relaxed “reading room” atmosphere. We will encourage the use of couches and chairs.
Market
Our market has been experiencing a decline of growth in the last two-years. This can be attributed to the overall economy being weak. Last year, sales in the book industry rose by only 3.6% while overall U.S. retail revenues grew by 4.3%. However, management believes this may be a boon for the used-bookstore industry. Used bookstores will be more appealing to customers who still want to buy books as customers are less likely to spend on them. Therefore, management believes this may be a good time to get into the industry and gain market share.
The overall consolidation in the bookstore market is a significant step. The market was dominated in the past by small and local bookstores as well as regional chains. The emergence and dominance of the #8220superstore created by Barnes & Noble has seen the largest players in this market gain substantial market share, driving many independent booksellers away from the market.
There is still a place for independent booksellers to create a market position in the used books section. This segment is less attractive to large companies because the “_superstore concept is harder to replicate in a low-profit market. This favors the local independent bookstore in the used books market segment, provided they can obtain a sufficient facility to house an appealing inventory and compete with the larger national chains.
Financial Considerations
Start-up expenses total $178,000. These are the one-time fees associated with opening a store. These costs are paid for by both SBA loans as well private investors. Please note that we expect to be operating at a loss for the first couple of months before advertising begins to take effect and draw in customers. Flyleaf Books is expected to receive periodic cash infusions to cover operating expenses for the first two year as it works toward sustainability. Funding has been arranged through lending institutions and private investors already. We do not anticipate any cashflow problems in the next 3 years.
1.1 Objectives
These are the Flyleaf Books’ goals for the next three-years:
- Profitability by July Year 2
- In Year 3, make around $200,000 in sales
- Pay owners a reasonable salary while running at a profit.
1.2 Keys for Success
In order to survive and expand, Flyleaf Books must keep the following issues in mind:
- We must attain a high level of visibility through the media, billboards, and other advertising.
1.3 Mission
Flyleaf Book’s mission in Cleveland, OH is to provide quality literature at affordable prices. The company also wants to offer a relaxed environment that encourages browsing, relaxation and a pleasant place to spend time. Flyleaf’’s unique offering to customers will include a large selection books, magazines, and CD’’s that can be used. Additionally, we offer a buying/buyback option which reduces book acquisition costs, and allows our customers the opportunity to trade in unwanted books/CD’’s for cash.
No comment yet, add your voice below!