Business Plan V2 2019

Cockatoo Gate Books

Business Plan V2

Table of Contents
Introduction ................................................................................................................................................ 3
1. Executive Summary ............................................................................................................................. 4
2. Company Overview.............................................................................................................................. 5
3. Business Description ............................................................................................................................ 6
4. Market Analysis ................................................................................................................................... 7
5. Operating Plan ..................................................................................................................................... 8
6. Marketing and Sales Plan .................................................................................................................. 10
7. Financial Plan ..................................................................................................................................... 11

Version Control

Version # Author Date

1 Alex Blair 02/02/2019
2 Alex Blair (input M Cresswell and J Dyer) 01/05/2019

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Business Plan V2

INTRODUCTION

Cockatoo Gate Books is a business designed to provide and promote access to arts and culture to a broad
community. We encourage diversity, inclusivity and participation across a range of arts and culture. This plan
will:

• Provide a solid understanding and vision for the business

• Prioritise important tasks
• Provide common understanding of the vision to leaders
• Future versions of the plan will reflect changes in business structure, aims and plans

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1. EXECUTIVE SUMMARY

Cockatoo Gate Books is a profit-making community service. We will help to solve the problems of limited
inclusivity and participation in arts and culture and promote humanist values, including respect for diversity and
its benefits.

We’ll do this by modelling inclusive corporate practices and policies, affordable products and services designed
to bring enjoyable experiences of arts and culture, training and support for participation.

We’ll target everyone who wants to enjoy and participate in arts and culture, with a particular focus on people
with a disability, seniors, people who are disadvantaged and others whose differences limit their options in this
area.

Our competitive advantage is in low overheads and willingness to go the extra mile for our customers.

Major stakeholders are Alex Blair, Celia Blair (owners), Jamie Dwyer (IT and Web Design Manager), Mark
Cresswell (Psychologist) and Darren Plogman (Legal Consultant).

We expect to break even during the 2020/2021 financial year and begin to show healthy profits from the
following year.

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2. COMPANY OVERVIEW

Cockatoo Gate Books is a registered partnership of Alex and Cecilia Blair. The business has also partnered with
JD Design (web development), Philippine Rondalla Ensemble Performing Arts (PREPA), Mark Cresswell,
Psychologist and Darren Plogman, Legal Advisor and Chef.

The concept for Cockatoo Gate Books was first envisioned by author Alex Blair (writing as A Michael Blaire) in
2017 as a vehicle to promote greater access to arts and culture for sectors of the community where it is limited.
This includes disability, disadvantage and cognitive diversity. Our major focus is on literary arts but we include
performing and visual arts. As the business grows, it will enfold a more diverse range of arts.

We provide low cost entry into the arts by providing training and related services such as editing, proofreading,
choreography, web design and resources etc. Outreach to the community is aimed at bringing artists, potential
artists and potential corporate sponsors into our sphere of influence bring them together and demonstrate the
advantages and benefits of our business vehicle.

In order to pursue our goals into the future the company must be profitable. Revenue will come from fees for
service, stock sales, library loans, tickets to events and donations and investments.

A proportion of profits will be donated directly to charities that help the disadvantaged. Currently, these are
Rosy’s Van and Sunset Soup Kitchen. Both of these feed and support the homeless.

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3. BUSINESS DESCRIPTION

Opportunity:

The benefits of inclusivity, knowledge and participation, including therapeutic value in the arts is becoming more
widely understood. Impact on quality of life is recognised as significantly positive. There is a demand for services
that assist people of disadvantage to participate in and enjoy the arts.

Start-up Products:

• Books, new and used, all genres, sales and loan

• Music CDs, vinyl records and digital music, new and used, sales and loan
• Movie DVDs and digital movies, new and used, sales and loan
• Online training courses, initially Creative Writing
• Editorial and writing services

Product Expansion (from 2nd fin yr):

• Choreography and dance coaching

• Vocational English training
• Customer Service training
• Cafe

Key Participants:

• Alex Blair and Cecilia Blair—Owner/Managers

• Jamie Dyer—Web Designer/Developer

• Perla Pound—CEO, PREPA

• Mark Cresswell—Clinical Psychologist

• Darren Plogman—Legal Consultant

• Amazon Australia

Pricing: Pricing will be maintained lower than industry average. Generous discounts will be provided for pension
card, seniors card and bearers of a letter from a recognized health professional confirming therapeutic benefit.

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4. MARKET ANALYSIS

Cockatoo Gate Books is a unique amalgam of product and service provision. While the market for
books is limited since the advent of digital products, there are still many who love and value print
media. The market for online services and training services is expanding. Demand for
inclusivity/participation related services to the disadvantaged and disabled is also on the rise.

While offering products and services to the broad market, we specialize in helping people with
disadvantage, disability and those able to benefit from our specialised services at lower cost.

Our strengths are broad business and management experience, specialized IT skills, a strong
customer service ethos, a commitment to continuous monitoring, analysis and constant
improvement, and a determination to succeed and excel.

Our weaknesses are limited marketing knowledge and skills and skilled competition and limited
capital. This will be addressed through further training in this area and consultation with industry
experts and liaison with potential funding providers.

Opportunities are expanding markets and demand in providing access and entry to the arts, especially for
the disadvantaged and disabled. There is a niche market for printed media of high quality and popularity.

Threats are inexperience in some aspects of the business, experienced competition, the ability to meet
statutory requirements and customer perceptions of product/service value.

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5. OPERATING PLAN

Products will be displayed and delivered online and in the physical stores. Online, customers may order and pay
using credit/debit card or PayPal. Products will be delivered by Australia Post or modern delivery contractor,
such as Sendle. Product handling at start-up is manual. In the physical stores customers may pay with cash or
card.

Pricing is based on source cost, competition and product quality. Prices will typically be less than competitors’.

Services will initially be provided online. Future plans include also providing face-to-face services. Services
pricing is one-off, based on time and other resources required.

Technology used is state-of-the-art. We use up to minute MYOB, Microsoft Office and internally developed
spreadsheets and other documents. Wherever practicable we use the most effective and efficient means.

Key customers are book lovers, lovers of diverse cultures and the arts and those seeking low cost entry into
cultural participation.

Current Skills Base

Alex is an ex-government (30 years) executive manager. He’s a qualified trainer, assessor and manager with vast
experience in management, training, HR, creative and business writing, editing, IT troubleshooting and
resolution, performance assessment and development. Alex has owned and managed businesses including
cattle breeding and showing, mobile food, vending machines, packaged nuts and dried meat products. He is an
experienced cook. He also has counselling, software testing, mentoring and coaching qualifications. He has been
published internationally in automated software testing, a historical fiction novel and bush poetry.

Cecilia is a nursing assistant in aged care and a choreographer and performer for PREPA. She is an experienced
performer of music, singing and dancing in diverse cultural settings. She has been a lead singer in a rock band
and plays guitar.

Jamie is a freelance graphic & web designer with clients from all over south-east Qld. He specialises in
WordPress websites, print design, and brand identity.

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Mark Cresswell is a consultant psychologist in his own practice. He provides advice , programs and facilitation
for a variety of educational institutions including VET and University. He has worked in the Mental Health and
AOD sectors since graduating in 1987. He has degrees in behavioural science and psychology and a Masters in
education. Has has worked in the government sector, NGO’s and private practice as a clinical and forensic
psychologist. He has served two terms as a director of the Australian Psychological Society.

Recently Mark has been in Europe where he managed Drug and Alcohol Rehabilitation Centres in Scotland and
England as well as working on projects for other agencies, including a European Social Fund initiative across
Italy, Germany and Scotland, where he served as a director of their peak AOD body. He has significant
experience in both the mental health and AOD sectors, including community development, e.g. on Cape York
Peninsula.

Mark has had poetry and short stories published and is currently working on a science fiction/horror trilogy
based on the Cthulhu mythology.

Darren is a Commissioner for Declarations with Qld Justice Dept. and has good knowledge of legislation relating
to our business model and goals. He is a qualified chef and has owned and managed food businesses.

Skills Deficit. We need to procure/access more skills in marketing, advertising, event promotion and accounting
to meet our goals.

Facilities

Cockatoo Gate Books is currently home based at our Ipswich and Stanthorpe locations. We have offices at both
locations, each with printer/copier/scanners, computers, NBN internet and ancillary office equipment. We have
product display rooms, bookcases and display cabinets. We’re gearing up to include café facilities and training
rooms.

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6. MARKETING AND SALES PLAN

Key Messages

• Buy a book and feed the homeless/help the disadvantaged

• Books are fun and informative

• There’s a special relationship between a book and its owner

• Old books don’t die, we find them a home

• Participation in/admiration of arts is beneficial to everyone

• We’ll help and support you to link to and participate in the art/s of your choice

Marketing Activities

• Media advertising (newspaper, magazine, radio)

• Direct mail (printed and email)

• Social media and SEO

• Seminars and conferences

• Dinner/Cheese and wine etc. events

• Performance events

• Word of mouth and fixed signage

Sales Strategy

Our focus is on outstanding customer service with no place for pushiness, pressure or inappropriate
sign-ups. We’re an ethical service provider with customer needs paramount. There are no
dedicated sales staff. Every one of our representatives is a salesperson. We’re all trained in our
specific sales approach as will future staff.

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7. FINANCIAL PLAN

Start-up costs 2019/2020

COST/
COST GROUP COST ITEMS MONTHS ONE-TIME COST TOTAL COST
MONTH
SALARIES AND FEES Web Development 3 $500 $1,500
Research 3 $1,000 $3,000
Consultancy 12 $125 $1,500
Salaries and Fees Total $6,000
PROJECT COSTS Training Material $1,000 $1,000
Catering 6 $500 $3,000
Project Total $4,000
MARKETING Advertising 6 $500 $2,000 $5,000
Travel 4 $1,000 $4,000
Marketing Total $9,000
ADMINISTRATION Postage/Shipping 12 $285 $3,420
Communication/Telephone 12 $35 $420
Computer Software $510 $510
Insurance $150 $150
Supplies $0 $500 $500
Admin Total $5,000
STOCK Books 4 $1,000 $4,000
Music 4 $500 $2,060
Movies 4 $735 $0 $2,940
Stock Total $0 $0 $10,000
ESTIMATED START-UP BUDGET $32,940

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Projected profit and loss model:

IMCOME JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YTD
Estimated Sales $0 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $5,500
Returns/Discounts $0 $0 $0 -$2 -$3 -$4 -$5 -$6 -$7 -$8 -$9 -$10 -$54
Service Income $0 $0 $0 $0 $0 $250 $350 $100 $0 $0 $1,245 $1,360 $3,305
Other Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Sales $0 $0 $100 $198 $297 $646 $845 $694 $693 $792 $2,136 $2,350 $8,751
Cost of Goods Sold $0 $0 $40 $79 $119 $258 $338 $278 $277 $317 $854 $940 $3,500
Gross Profit $0 $0 $60 $119 $178 $388 $507 $416 $416 $475 $1,282 $1,410 $5,251
EXPENSES JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YTD
Web Development $500 $500 $500 $1,500
Research $1,000 $1,000 $1,000 $3,000
Consultancy $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500
Training Material $1,000 $1,000
Catering $500 $500 $500 $500 $500 $500 $3,000
Advertising $2,500 $500 $500 $500 $500 $500 $5,000
Travel $1,000 $1,000 $1,000 $1,000 $4,000
Postage/Shipping $285 $285 $285 $285 $285 $285 $285 $285 $285 $285 $285 $285 $3,420
Telecommunications $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $420
Computer Software $510 $510
Insurance $150 $150
Supplies $500 $500
Books 1000 1000 1000 1000 $4,000
Music 500 500 500 500 $2,000
Movies 735 735 735 735 $2,940
TOTALS $3,455 $2,945 $4,830 $3,445 $3,445 $2,180 $1,445 $945 $3,680 $2,445 $1,945 $2,180 $32,940
NET PROFIT -$27,689

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