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XYZ Paint - Business Plan Sample - Jeff Dean
XYZ Paint - Business Plan Sample - Jeff Dean
Table of Contents
1.0 Executive Summary 1.1 Objectives 1.2 Mission 1.3 Keys to Success 2.0 Company Summary 2.1 Company Ownership 2.2 Company History 2.3 Company Locations and Facilities 3.0 Products 3.1 Product Description 3.2 Competitive Comparison 3.3 Sales Literature 3.4 Sourcing 3.5 Technology 3.6 Service and Support 3.7 Future Products 4.0 Market Analysis Summary 4.1 Market Segmentation 4.2 Target Market Segment Strategy 4.2.1 Market Needs 4.2.2 Market Trends 4.2.3 Market Growth 4.3 Industry Analysis 4.3.1 Industry Participants 4.3.2 Distribution Patterns 4.3.3 Competition and Buying Patterns 4.3.4 Main Competitors 5.0 Strategy and Implementation Summary 5.1 Strategy Pyramids 5.2 Value Proposition 5.3 Competitive Edge 5.4 Marketing Strategy 5.4.1 Positioning Statement 5.4.2 Pricing Strategy 5.4.3 Promotion Strategy 5.5 Sales Strategy 5.5.1 Sales Forecast 6.1 Organizational Structure 6.2 Management Team 6.3 Management Team Gaps 7.0 Financial Plan 7.1 Important Assumptions 7.3 Break-even Analysis 7.4 Projected Profit and Loss 7.5 Projected Cash Flow 7.6 Projected Balance Sheet
1.1 Objectives
1. Sales increasing to more than $541 thousand by the third year. 2. Continue gross margin at a minimum of 35%, and maintain that level. 3. Improve inventory turnover to 6 turns next year, 7 in 2003, and 8 in 2004.
1.2 Mission
XYZ Paint & Flooring is built on the assumption that the management of floor and wall information for contractors and homeowners is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-ityourself prospect. Smart business people need to find quality vendors of reliable paint, sundries, carpet, and equipment. They need to use these quality vendors as they use their other professional service suppliers, as trusted allies. XYZ Paint & Flooring is such a vendor. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure that our clients have what they need to run their businesses as well as possible, with maximum efficiency and reliability. Many of our products are mission critical, so we give our clients the assurance that we will be there when they need us.
3.0 Products
XYZ provides floor and wall coating products and expert advice to offer a complete service package to the end user.
maintenance customer, property manager and manufacturer of products requiring a factory finish. Competitors are other paint and wall paper stores, mass merchandisers, home centers, independent hardware stores, hardware chains and manufacturer- operated direct outlets. Product quality, service and price determine the competitive advantage in the highly fragmented paint and coatings markets.
3.4 Sourcing
Our costs are part of the margin squeeze. As competition on price increases, the squeeze between manufacturers' price into channels and end-users' ultimate buying price continues. In order to hold costs down as much as possible, we concentrate our purchasing with BM, which offers 30-day net terms and overnight pickup from the warehouse in Commerce, CA. We need to concentrate on making sure our volume gives us negotiating strength. In accessories and add-ons we can still get decent margins, 35% to 50%. For carpet and flooring products, margins are 30% to 40%.
3.5 Technology
Utilizing the Benjamin Moore Computer Color Matching System, the tinters at XYZ can match about any color.
Business Projections
560,000 541,688 540,000 527,000 520,000 Sales 500,000 480,000 460,000 440,000 1 2 Years 3 474,900
TENTATIVE 2004 $43,700.00 $43,700.00 $43,700.00 $47,900.00 $47,900.00 $52,000.00 $52,000.00 $57,444.00 $57,444.00 $49,300.00 $46,500.00 $43,800.00 $541,688 $379,182 70.0% $54,169 10.0% $81,253 15.0% $27,084 5.0% $541,688
2003
2004
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0
JA NU FE AR BR Y UA RY MA RC H AP RI L M AY JU NE JU AU LY SE GU PT S EM T B OC ER T NO OBE VE R M DE BE CE R M BE R
$23,341 $35,500
$23,341 $35,500
$23,341 $35,500
$25,511 $38,800
$25,511 $38,800
$27,747 $42,200
$27,747 $42,200
$30,640 $46,600
$30,640 $46,600
$26,300 $40,000
$24,788 $37,700
$23,341 $35,500
$312,247 $474,900
PAINT DEPARTMENT SALES 70% COST OF SALES 65% $24,850 $16,153 $24,850 $16,153 $24,850 $16,153 $27,160 $17,654 $27,160 $17,654 $29,540 $19,201 $29,540 $19,201 $32,620 $21,203 $32,620 $21,203 $28,000 $18,200 $26,390 $17,154 $24,850 $16,153 $332,430 $216,080
FLOORING DEPARTMENT SALES 10% $3,550 $3,550 $3,550 COST OF SALES $2,485 $2,485 $2,485 70% SUNDRY DEPARTMENT SALES 15% $5,325 $5,325 COST OF SALES $3,461 $3,461 65%
$3,880 $2,716
$3,880 $2,716
$4,220 $2,954
$4,220 $2,954
$4,660 $3,262
$4,660 $3,262
$4,000 $2,800
$3,770 $2,639
$3,550 $2,485
$47,490 $33,243
$5,325 $3,461
$5,820 $3,783
$5,820 $3,783
$6,330 $4,115
$6,330 $4,115
$6,990 $4,544
$6,990 $4,544
$6,000 $3,900
$5,655 $3,676
$5,325 $3,461
$71,235 $46,303
SPRAY EQUIP. DEPART. SALES 5% $1,775 $1,775 $1,775 COST OF SALES $1,243 $1,243 $1,243 70% TOTAL SALES TOTAL COST PERCENT PROFITS
$1,940 $1,358
$1,940 $1,358
$2,110 $1,477
$2,110 $1,477
$2,330 $1,631
$2,330 $1,631
$2,000 $1,400
$1,885 $1,320
$1,775 $1,243
$23,745 $16,622
SALES
EXPENSES
$50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
TENTATIVE 2004 $43,700.00 $43,700.00 $43,700.00 $47,900.00 $47,900.00 $52,000.00 $52,000.00 $57,444.00 $57,444.00 $49,300.00 $46,500.00 $43,800.00 $541,688 $379,182 70.0% $54,169 10.0% $81,253 15.0% $27,084 5.0%
JA FE MA AP NU BR RI RC L AR UA H Y RY
MA Y
JU NE
JU LY
AU SE OC NO DE GU PT CE TO VE EM ST MB BE MB BE R ER ER R
2002
2003
2004