Promotional Products Maker Business Plan


Promotional Products Maker Business Plan



Introduction

There is a market for leatherette and velour drawstring bags. These bags can be used to carry eyeglass bags, jewelry bags, pen bags, and other promotional items to increase their perceived value. Elsewares Promotional Products & Packaging was established to supply these logo-imprinted products to advertising specialists distributors, who then market them to the end users.


The Products

Elsewares is developing a collection of unique products, as well as drawstring packaging products, that will increase the perceived value of these products. These products will be imported from Mexico and Far East. Before they reach distributors, they will be printed in-house with different company logos.

Elsewares can join the Advertising Specialties Institute trade group to have electronic and print access to a network 13,000-14,000 ASI-listed distributors of advertising specialty products, which is part of a $7.4 billion industry. This is second only to newsprint and television in terms of advertising dollars. Elsewares’ products will be sold only through these distributors. Elsewares intends to reach those distributors through advertisements in trade publications, through an in-house sales force, and a network of salaried and commission-based sales reps.

In conjunction with our marketing campaign for these packaging products we will display our unique line of promotional products to the exact same distributors. Thus, we have three sales opportunities.


The Market

The industry of advertising specialties has seen sales grow at an average rate of nearly 7% per annum over the past decade, reaching $7 billion in revenue last year. This is a mature market that is overcrowded with distributors and suppliers. In that industry, there were three suppliers offering only velour or leatherette drawstring bags. They combined to sell $2,500,000. These three suppliers are located along the East Coast. The Midwest and West Coast have the largest number of advertising specialty distributors. We feel that by concentrating our efforts on marketing to the West Coast distributors, many of which already have had positive business relationships with our personnel, we will acquire a significant market share of the packaging niche over the next three years.


Financial Considerations

We will use a portion of our initial startup cost to buy inventory, office equipment, as well as imprinting machine. The rest will be used to pay catalog costs and for advertising expenses. In the first twelve months of operation, we anticipate that there will be an additional financial commitment for financing receivables or payroll expenses.

Elsewares aims to increase its sales in the West United States, and achieve a respectable sales level by Year 2. Based on our monthly fixed cost estimate and the expected monthly unit sales, Elsewares should be able to achieve a running monthly break-even point after the fourth month.

Elsewares seeks a financial package that is based on a five-year note amortized over fifteen years. The note will be personally guaranteed by the founder’s assets. By amortizing the note over 15 years, the company will be afforded the opportunity to establish a healthy track record which will enable the company to seek alternate financing for the balance. It should be noted that the owners of Elsewares do not intend to take any profits out of the business until the long-term debt has been satisfied. Whatever profits remain after the above debt payments will be used to finance growth, mainly through the acquisition of additional inventory.

1.1 Objectives

The East Coast is home to the three largest suppliers of imprinted pouches for advertising specialty distributors. They are currently making a combined $2,000,000 in pouch sales. Elsewares aims to increase its sales in the west United States and reach a respectable sales level before the end of the year. Elsewares wants to factor our growth and diversify into unique promotional product offerings. These products will be attractive as advertising specialty items or packaged with a drawstring pouch. We can also provide these.

1.2 Mission

Elsewares intends to develop an inventory of unique products and drawstring packaging products that can add perceived value to those products. These products, which are sourced from Mexico or the Far East, will have various company logos imprinted before being shipped to distributors.

Elsewares can join the Advertising Specialties Institute trade group to have electronic and print access to a network 13,000-14,000 ASI-listed distributors of advertising specialty products, which is part of a $7.4 billion industry. This ranks only behind television and newsprint in terms of advertising dollars spent. Elsewares’ products will be sold only through these distributors. Elsewares plans to reach these distributors through advertising in trade publications, an in-house selling force, and a network if salaried and commission-based reps.

Success Keys 1.3

Elsewares management believes that it has the right products and the right people to attract a loyal customer base. Our business philosophy will be the key to our success. The advertising specialty industry expects products to arrive on time with high quality imprinting. Pursuant to these demands:

Elsewares can satisfy this demand through maintaining acceptable inventories that will be delivered on-time according to prearranged shipping schedules.

Elsewares will institute a quality control procedure for overseeing the on-site imprinting facility to ensure an acceptable imprint quality.

Elsewares, in addition to offering a complete line velour packaging materials, will also offer a unique range of promotional products. This will encourage advertising specialist distributors to think of Elsewares when searching for original products.

Aircraft Equipment Maker Business Plan


Aircraft Equipment Maker Business Plan


Stretch &#8216?r Wings, a start up company, makes medical interiors for helicopter pilots and hospital flight program operators. Stretch &#8216?r Wings can design and sub-contract certain manufacturing.

Stretch ‘r Wings has identified and is working to complete four objectives that will assist them on their path to profitability. The FAA approval of Supplemental Type certification (STC), is the first objective. The second objective involves a preliminary prototype. Next is the need to secure parts manufacturer approval. Finally, a marketing campaign and plan must be developed.

Stretch &#8216’r Wings targets both aircraft operators and hospital flights programs in both the United States as well as international markets. These two segments currently have the greatest market potential. These segments will be reached by Stretch &#8216 ;r Wings in a variety of ways. They can send brochures and direct mail, as well as brochures and advertisements through trade publications and the internet. The US market as a whole, the international markets and military are the key segments. All three segments experience a five percent annual growth rate. 800 potential US customers, 300 in international and 100 in military markets are possible.

Stretch &#8216?r Wings will use their competitive advantages, which are based primarily on product innovation/features and pricing competitiveness. Their use of aluminum frames creates an easy-to-assemble unit that is strong, lightweight and sturdy. Next is a built-in storage device which maximizes space. Finally, Stretch &#8216’r Wings will use a glide ease stretcher system to make entry and exit as simple as possible. All Stretch&#8216:r Wings units were designed to be compact, efficient, and safely.

Stretch &#8216 ;r Wings has put together a strong management team in order to implement their solid plan. Stretch &#8216 ‘r Wings’s product design master is **. After a 20-year industrial design career, he has recently focused his designs on medical applications. His wife is a doctor. **, who is the business mind of our company, complements our designer master. ** will be responsible for operations and strategic planning. He was Vice President of Operations at a $45,000,000 bicycle manufacturer for 17 years.

Stretch &#8216’r Wings will be profitable by year one. Profits will continue to rise through year five. For year two, sales were conservatively projected at $230,000. Year five will see sales of $634,000. Stretch &#8216: Wings is an exciting company that creates innovative designs to fill a niche market need. The company will be managed by a team of experienced managers.

**Names have been withheld for confidentiality.

1.1 Objectives

These are the business goals and targets for Stretch &#8216 r wings:

  1. You can obtain STC approval from FAA on eight popular general aviation planes.
  2. Prototype of a Medical Interior for FAA Conformity Inspection
  3. Upon completion of the first STC, Stretch ‘r Wings will secure a Parts Manufacture Approval (PMA) from the FAA.
  4. Develop a marketing plan, sales literature, website, e-commerce, and sales department. After approval by several STCs, this step will be executed.

1.2 Mission

Stretch &#8216’r Wings will market a quick-change medical device for aircraft and helicopters. This product is unique and will enable the owner/operator of an aircraft to either carry regular passengers or to quickly switch to carrying a medical passenger. The medical unit can be described as a self contained life support system. It has an internal component with oxygen, vacuum, DC and AC electricity. Stretch ‘r Wings will develop, manufacture, and market this product.

1.3 Keys to Success

Because the aviation industry is very regulated, Stretch &#8216’r Wings will have to obtain the required STCs or PMAs from FAA. Although the company’s staff has had several years of successful experience in doing STCs, this process may take longer than is planned, which could negatively affect the company’s prospects.

Strong marketing efforts will help increase brand awareness and customer acceptance once the products have been approved by the FAA. Stretch &#8216 is the best tool for this purpose.

r Wings will be at all major trade fairs, publishing high quality sales literature and providing after-sales services to its clients.

Heavy Equipment Maker Business Plan


Heavy Equipment Maker Business Plan


Tricky Widgets Manufacturing is a manufacturer and distributor of heavy equipment machinery. It has one location in Spokane (Washington). TWM, a start-up manufacturer firm, is TWM. TWM will initially attempt to get start-up funding to fund its operations.

TWM intends to expand its operations to meet the increasing demand for heavy equipment machines. The company’s first product offering will be the &#8220/Widget Basic; &#8220/Widget Deluxe; and &#8220/Widget Premier. These products are expected popular with commercial construction firms due to their versatility, control abilities, and ease of use. This market will be able to grow quickly due to strong contacts and referral networks between commercial construction company owners.

1.1 Mission

TWM aims to offer high-quality heavy equipment machinery for the commercial construction industry at a price which is competitive in comparison to other premium-quality commercial machinery manufacturers in the market. TWM’s management believes that there is an untapped market because 1) existing suppliers of construction machinery are too diverse to meet the increasing specialized needs for the commercial construction segment; and 2) greater precision control within such machinery will better serve this segment’s needs.

Success Keys

The keys to TWM’8217’s success include:

  1. High quality products.
  2. Assisting in the maintenance and growth of its referral networks to increase repeat and new sales.
  3. It is important to invest in research and engineering in order to produce precisely controlled equipment.
  4. Enhancing the efficiency of operations


Garden Furniture Maker Business Plan


Garden Furniture Maker Business Plan


Garden Crafts Inc. has developed a new product, the Sit N’ Caddy, which it intends to produce and market. Garden Crafts has formulated a mission statement and strategy that will use value, quality, and a conscience in the development mix.

Garden Crafts will be incorporated in Georgia as a Chapter S Corporation. The stockholders for Garden Crafts are Rob Kane and Keith Jones. The administration offices and the operational facilities will be separated. It has been estimated that the start-up cost will be approximately $15,000, with the bulk of this amount being paid by John Houseman (ex-owner of Kustom Kabinets). He has agreed to hold the equipment cost as a private note.

The product, the Sit N’ Caddy, is a combination stool/tool caddy, constructed out of premium grade hardwood. Market research found several similar products in nature but none were wood-based and customizable as much as the Sit N&#8217’ Caddy.

Analysing several markets shows that Home Depot is the biggest national retailer of home and garden supplies. This market has seen steady growth over the past three year, with double-digit increases. Garden Crafts can expect a profitable future as the average homeowner spends $532 per annum on gardening products.

Since Home Depot was selected as our initial target for sales, our strategy will revolve around the Merchant that Home Depot uses as their regional buyer. Home Depot being our only customer, our sales price will be determined based on their merchant pricing system. We have determined that $20 is the lowest price we are willing to accept from Home Depot based on our costs. With one product and a standard pricing, the three-year projection shows a direct result from the projected 11% rate of growth.

It was calculated that labor would cost $5 per unit out of the $10 price per unit. It was decided that future employees would prefer a piece-rate rate rather than an hourly wage. As a dividend, the corporation will pay a portion to its founders. As retained earnings, the rest of the profits are placed in an aggressive-growth mutual account.

Our projection of a 11% annual growth rate has resulted in a rise in gross sales over the three-year period. The trend in operating expenses is also increasing, but not in line with it. This is due to the slight deviation in expenses that were paid in advance during the first year and additional expenses that did not occur after the fifteenth month. Given that Home Depot will sell the entire first-year production run, profits are healthy. The second and third years see modest growth. This business plan has a section called Highlights.

Garden Crafts will reap the benefits of a low investment while still delivering healthy returns. These factors include the experience and skills of the founders as well as a commitment from Home Depot. Unique design is also a key factor in Garden Crafts’ success.

1.1 Objectives

Objectives for Garden Crafts:

  1. Create and construct a workshop capable to handle 10,000 units of the SitN&#8217 Caddy each year.
  2. Prepare a brochure or specification sheet for Sit N&#8217 Caddy.
  3. Increase design efficiency to reduce production costs.

1.2 Mission

Garden Crafts will be committed to quality in both its production and shipping. We are focusing on one product: the Sit N&#8217’ Caddy, which is a combination gardening stool/garden caddy. We will ensure that our employees are safe and productive, making this a top priority over our profits.

We plan to use different marketing methods to reach a wide range of gardeners to provide what we consider a valuable tool for their shed. Garden Crafts will be open to considering new production methods and changes to our product lines, as well as custom orders from interested customers.

We will always keep our profits in mind, but never at the expense of our customers.

Success Keys 1.3

Our keys to success will be:

  1. Effective promotions; we can’t sell if we aren’t visible to the gardening enthusiasts.
  2. Efficiency in production will play a major role in our success.
  3. Flexibility. This product has been designed for gardeners.
  4. We are open to new ideas and will not be constrained by one idea.

We must be open to new opportunities that present themselves.