Fulham Furniture Mfr. Since discovering high-end Direct Mail channels, Fulham Furniture Mfr. has experienced rapid growth. Inspiring by appearances on specialty catalogues we were able build another channel through distributors office equipment which sell directly at larger enterprises.
Another three years of rapid growth is required by the annual business plan. Because our sales growth has brought some working capital implications, we are carefully planning to manage growth and provide for steady cash flow.
We also believe we will be more financially successful than ever before. Overall, the plan is a healthy business with great growth prospects. It will manage its orderly future growth.
1.1 Mission
Fulham Furniture Mfr. Fulham Furniture Manufacturing Company. We care about the appearance and feel of fine wood, fine furniture, and high-powered personal computers. We always provide the best possible value to our customers who care about quality office environments, and we want every dollar spent with us to be well spent. Our office and workshop environments are creative, supportive, friendly, and fun. Employees are paid fairly and encouraged to respect customers and the quality of our products. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk.
1.2 Keys for Success
Uncompromising commitment towards the quality of the final product: quality wood and workmanship, quality design, quality result.
Successful niche marketing: we need to find the quality-conscious customer in the right channels, and we need to make sure that customers can find us.
Almost-automatic assembly: we can’t afford to ship fully-assembled desks, but assembly must be so easy and automatic that it makes the customer feel better about the quality, not worse.
1.3 Objectives
By Year 3, you should be focusing on the potential new channels for significant sales growth
Despite the increase in sales, keep a high margin.
Trestle Creek Cabinets will become a custom cabinet company that specializes exclusively in high-end commercial, residential, and resort market cabinets. Its founders are experts in cabinet construction. Trestle Creek Cabinets is part of Trestle Creek, Incorporated, a construction firm that shares staff, office spaces, and administrative costs. Trestle Canyon Cabinets is treated as a separate business for business planning.
After years of experience in building luxury homes, the company’s owners recognized the need to offer a range of design options and high-end finishes. They also wanted top-ofthe-line organization, service, quality and customer service. Trestle Creek Cabinets can meet these customers’ needs. The company expects significant growth in revenues between FY1- FY3. This is due to its strong market position in high-end residential, resort and commercial development segments. By maintaining an average gross margin of over 25%, the company estimates handsome net profits by FY3.
The capital needed to fund the startup expenses was provided by the shareholders. To cover operating expenses, the company is currently seeking a 3-year commercial loan.
1.1 Objectives
The company objectives are:
To be a premier cabinet supplier to luxury homes on the regional market.
Revenues of more than two times Year1 levels at the end.
Target 70% in high-end residential customers segment.
20% of sales in the mid-range residential customer segment.
10% of sales in commercial development segment.
To open a showroom in three months in a prominent retail area.
1.2 Mission
To deliver a high quality product on time and within budget. We also provide an error-free ordering system.
Poppi Designs is an Italian furniture importer serving New York. The original incorporation of the business in N.Y. was over 10 years back. It has been through many business strategies changes. The new model allows for the import of a wide variety of Italian furniture. It is sold primarily to designers as well as unfinished furniture retail shops. Two principals are Kate Jackson, located in New York, and Luca de Febonio, located in Rome, Italy.
The Concept
Poppi understands that good furniture is very competitive and will therefore target niches to reduce competition. Generally, they will concentrate on locations out of reach of larger furniture superstores. Poppi Designs can leverage Luca’s expertise and location in Italy to manage the entire importation process. Poppi Designs will be represented in Italy by Luca.
Poppi Designs has three keys to success. The first is establishing a high quality, high value relationship with its vendors and customers. It is also important to deliver their products on time and in a reliable manner. Reliable administration is the last requirement for success.
Poppi can be set up at home and has additional warehouse space. This arrangement will be the most economical, but it will also provide the necessary support and service.
The Market
Poppi Designs will target the following market segments. Their primary market segment is specialty retailers, which makes up around 80%. This segment is growing at just 2% and has 16 potential clients. Poppi will reduce their dependency on this niche by focusing its marketing efforts. This market is more competitive and Poppi will target targeted marketing to increase their reach. The second segment is designers, that also have a 2% annual growth, with 44 potential customers. The final targeted niche is the unfinished furniture retailer, with a potential 50 participant market and growing at 2%.
The market is based less on brand equity of the manufacturer and more on the actual product and the service provider. The customer should have the opportunity to touch and feel it. The salesperson can also play a significant role in the transaction. Poppi benefits from these realities as they are able pick and choose from multiple manufacturers instead of having to only sell products to one manufacturer.
The Sales Strategy
Direct sales calls to all segments of the market targeted by this plan are key to the success of the sales strategy, with the exception being interior designers. Kate Jackson, the owner of the company, must make these sales calls due to her knowledge and background about the products and the competitors. Experience has shown that the more time Kate Jackson devotes to selling, the greater the sales results. The search for a full-time team member should be made as soon and as quickly as possible. Kate is unable to sell if too much of her time is diverted by this person.
Poppi Designs, through its well-focused business strategy will achieve profitability by month two. Conservative forecasts suggest that sales will increase by almost two-thirds from year one to three. The ratio of net profits to sales will be comparable.
1.1 Objectives
The objectives of Poppi Designs are:
In order to create an efficient and reliable administrative system that allows the owner to focus on selling and managing major accounts.
To concentrate Poppi’s efforts on several selected market sectors that have been researched and found promising.
To increase the reliability and timeliness in shipments from Italy.
1.2 Mission
Poppi’s mission, according to a variety reasons, is to fill certain market niches in chairs and other furniture items that are not being served by large domestic producers. Poppi Designs’s owner, Poppi Designs, draws upon her interior design expertise, as well her contacts in Italy, to tailor her products to meet these market needs.
1.3 Keys to Success
Poppi Designs’s key to success are:
Offering products of high quality and value that aren’t available anywhere else. This is critical to maintain the niche markets mentioned by the mission statement.
Reliable and timely deliveries. Poppi must deliver on its promises. Poppi must fulfill its delivery promises because of the nature and culture of Italian business.
A reliable administration who is available to help customers, prepare accurate bills, follow-up orders, and keep an eye on expenditures and collections of accounts receivable.
Willamette Furniture Mfr. Our company is experiencing rapid growth after discovering high-end Direct Mail channels. This channel gave us the opportunity to grow our business through new channels. Our appearances in specialty magazines helped us to create a new channel, through distributors of office products that sell directly to corporations.
Another three years of rapid growth is required by the annual business plan. We are careful planning to manage our growth and ensure steady cash flow because of the impact that sales growth has had on working capital.
We also anticipate being more profitable than ever. Overall, the plan is a healthy business with great growth prospects. It will manage its orderly future growth.
1.1 Objectives
You should be focusing on the new channels that will increase sales to $1 million or more by Year 3.
Maintain a gross margin close to 60%, despite the sales increase.
Increase the net profit significantly by Year 3.
1.2 Mission
Willamette Furniture Mfr. Willamette Furniture Mfr. helps create productive and comfortable office environments. We care about the appearance and feel of fine wood, fine furniture, and high-powered personal computers. Customers who value high-quality office environments want us to provide the best possible service. We strive to give our customers the best value. We strive to create and sustain a safe and creative workplace. We aim for responsible and fair profit in order to sustain the company’s long-term financial health and to fairly reimburse investors and owners for their investment.
1.3 Keys To Success
Uncompromising commitment to the quality of the end product: quality wood, quality workmanship, quality design, quality of end result.
Successful niche marketing requires that we find quality-conscious customers through the right channels. And we must make sure that they can find our company.
Almost-automatic assembly: we can’t afford to ship fully-assembled desks, but assembly must be so easy and automatic that it makes the customer feel better about the quality, not worse.
WorkChairs, an ergonomic product business based in Studio City (California), focuses on selling hard to find ergonomic products to both their local community and online. WorkChairs is owned by Jake and Lisa Wilson, and is a corporation with one other employee, Peter Wilson.
WorkChairs will utilize two sales channels and concentrate on niche products that solve ergonomic issues. These problems have become more common since people use computers more often in their day to work. WorkChairs will use traditional local marketing and sales methods to establish a strong local customer base within the home office, small businesses, and large business community. WorkChairs will also have an online shop to supplement their business and benefit from drop-shipping manufacturer relationships.
WorkChairs follows a conservative financial strategy with low expenses and low payroll. They also have a conservative sales forecast. WorkChairs will keep a positive balance in cash while gradually growing total cash and company wealth.
1.1 Mission
WorkChairs retails specialty ergonomic products both in the local market as well as online. Our mission is to supply quality products to fulfill our customers’ desire for a work environment that is injury- and pain-free. Our goal is satisfaction and solving problems for our customers by offering great products at an economical price.
We are proud to educate our customers about ergonomic issues, so that they don’t experience pain or discomfort in the future. We find doing this is rewarding in a personal and business sense.
1.2 Keys to Success
Specialty products are not available at large-box retailers like Office Max, Office Depot and Staples. We want niche products that can’t be found at these stores, because we can’t compete with them on price.
Provide excellent customer service. It can be hard to find customers with enough awareness of the health consequences of regular office work to understand that ergonomic products are necessary. Once we find them, we must make them happy and keep their business coming back to us for any future products.
To ensure we maintain low expenses and a slow growth rate, we must keep it organic.
We created a simple-to-use website to educate our customers and potential clients, as well as sell our products effectively.
1.3 Objectives
After six months of operation, it is possible to become financially independent.
The market leader for specialty ergonomic products within the local market. There is no official measurement, but it should be relatively easy to guess how our few competitors are doing.
Your website must be ranked amongst the top five websites offering specialty ergonomic products in terms of both sales and traffic. Unfortunately, we cannot get sales statistics from other competitors. However, we are able to judge their traffic levels based their search engine place, pay per Click advertising, links in their site and Google Pagerank. From there we can guess at how well their site converts visitors into sales.
Have fun helping our customers work in a safer and more comfortable work environment.
Garden Crafts Inc. has created a new product, Sit N’. Caddy. This product will be manufactured and sold in the United States. Garden Crafts Inc. has developed a strategy and mission statement that will incorporate value, quality and conscience into the development mix.
Garden Crafts LLC will be incorporated in Georgia as Chapter S corporation. It will include two stockholders: Rob Kane, Keith Jones, and Keith Jones. The administration offices will have separate facilities for the operation. Starting costs have been calculated with the bulk being donated by Mr. John Houseman who was the owner of Kustom Kabinets. He has also agreed to keep the equipment cost in 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’’ Caddy.
Analysing several markets shows that Home Depot is the biggest national retailer of home and garden supplies. This expanding market has experienced constant growth, showing double digit increases over the past three years. With two-thirds of homeowners spending an average of $532 annually on gardening products, this indicates a highly profitable future for Garden Crafts.
Home Depot was our first target for sales. Therefore, our strategy revolves around the Merchant Home Depot uses as their regional purchaser. Our sales price will be determined by Home Depot’s merchant pricing system. Based on our costs, $20 was the lowest price Home Depot would accept. The projected 11% growth rate is evident in the three-year forecast, which includes a single product with a standard price.
Labor would cost $5 per unit at $10. Instead of paying hourly rates, future employees should be paid a piece rate. A portion of net profits will be paid to the founders by the corporation as dividends. As retained earnings, the rest of the profits are placed in an aggressive-growth mutual account.
Gross sales numbers show an increase in the three-year time period. This is natural given our projection of a 11% growth rate. Although the trend is not identical to that of sales, operating expenses show an increase. 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. The profits from the first year’s production will be sold to Home Depot. There is modest growth in the second year and third years. Check out the Highlights section in this business plan.
Garden Crafts has the potential to make a large return on investment and reap healthy returns. Major factors contributing to this success are the knowledge and skills of the founders, a commitment by Home Depot, uniqueness of design, and a continuous growth in the home and garden market.
1.1 Objectives
Objectives for Garden Crafts:
Design and build a workshop capable of handling a yearly production of 10,000 units of the Sit N’ Caddy.
A brochure and specification sheet are needed for the Sit N’ Caddy.
Increase design efficiency to reduce production costs.
1.2 Mission
Garden Crafts will ensure quality in production and delivery. We will create a business around one product, the Sit N’, a hybrid gardening stool/garden caddy. This will be a priority over our profits and we will provide safe working conditions for all of our employees.
We will be using a variety marketing strategies to reach a broad range of gardening enthusiasts to bring what we believe to be a valuable resource to any gardener’s shed. Garden Crafts will remain open-minded to new methods of production and to changes in our product line. We also welcome custom orders from customers.
We will always remember our profits but not at the expense our customers.
1.3 Keys To Success
Our keys to success are:
Effective promotions; we can’t sell if we aren’t visible to the gardening enthusiasts.
Efficiency in production is key to our success.
Flexibility. This product is made for gardeners. If they have new ideas, we’ll listen.
Thinking outside of the box; we will not limit ourselves to a single concept.
New opportunities will present themselves and we must watch for, and be open to, them.