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Garden Furniture Maker Business Plan Leave a comment
Garden Crafts Inc. has created a new product, Sit N’. Caddy. This product will be manufactured and sold in the United States. Garden Crafts has developed a vision statement and strategy to use quality, value and a sense of conscience in its development mix.
Garden Crafts is a Chapter S company that will be incorporated in Georgia. It will consist of Rob Kane as well as Keith Jones. The administrative offices will not be accessible from the operational areas. Start-up costs have been projected with the bulk being provided by Mr. John Houseman, former owner of Kustom Kabinets. He has agreed that he would keep the equipment costs as a private loan.
The Sit N’’ Caddy is a stool/tool combination made out of premium hardwood. Although there are many similar products on the market, none of them were wood-based or customizable to the same degree as the Sit N’′ Caddy.
Analysis of several markets points out Home Depot is the largest national retailer in home and garden supplies. The market is growing at a double-digit rate over the last three years. Garden Crafts has a bright future with two-thirds spending on average $532 per year for gardening products.
Home Depot being our initial target for sales, we will center our strategy around the Merchant Home Depot uses in their region. Our sales price will be determined by Home Depot’s merchant pricing system. Based on our costs, we have decided that $20 will be the lowest price that we will be willing to accept from Home Depot. With a single product and a standard price, the three-year forecast shows a direct result of the projected 11% growth rate.
Out of the $10 per unit cost, it was determined that labor would be $5. Rather than pay an hourly rate, it was decided that piece-rate would be the best option for future employees. The corporation will also pay a portion of net profits to the two founders as dividends. The rest of the profits will be put into an aggressive-growth mutual trust as a form to retain earnings.
Gross sales figures show an increase over the three-year period, a natural result of our projection of an 11% growth rate. Although the trend is not identical to that of sales, operating expenses show an increase. There is a slight deviation from expenses paid in the first year as well as additional expenses not occurring after the 15th months. Since Home Depot will purchase the entire first year’s production, the profits are healthy. Second and third year sales show modest growth. See the Highlights section of this business plan.
Garden Crafts can provide healthy returns for a small investment. 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:
- Build a workshop to produce 10,000 Sit NՉ۪s Caddy units annually.
- Prepare a brochure or specification sheet for Sit N’ Caddy.
- Reduce production costs and increase design efficiency.
1.2 Mission
Garden Crafts will focus on quality in its production process and shipping. The Sit N’′ Caddy is a hybrid garden stool/caddy. We plan to build a business around this product. We will ensure safe working conditions for all employees, placing this as a priority above our profits.
To reach large segments of the gardening community, we will use a variety of marketing strategies to make our product a valuable addition to every gardener’s shed. Garden Crafts is open to any new production methods, product changes, or custom orders from clients.
We will never lose sight of our customers, but our profits will be kept in mind.
1.3 Keys for Success
These are the keys to success
- We can’t sell without effective promotions.
- Efficiency in production; minimal waste will be a large part of our success.
- Flexibility: This product was designed for gardeners. We will listen to your ideas.
- We will think outside the box.
New opportunities will present themselves and we must watch for, and be open to, them.
