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Used Book Store Business Plan Leave a comment
Introduction
Flyleaf Books is a start-up used bookstore in the Cleveland, Ohio area. Management of Flyleaf Books aims to gain local market share in the used book industry by offering low prices, a large selection of products and a variety of services, including a buyback/trade program, hard-to-find book search and a relaxed, friendly environment that encourages browsing, reading, and encouraging people to read.
Company
Flyleaf will become a limited liability company in Ohio. Mr. James Vinck, an ex-head librarian of Philadelphia City Library, will co-own the company with his wife Aracela.
Vinck plans to establish this company to grow his business, meet others with similar interests and leave a legacy to his children. Flyleaf Books will be establishing its store in one of the busiest section of Brecksville, an outlying suburb of Cleveland. This area is well-known for its upscale residents as well as high-quality establishments. The former furniture store was 8,000 sq. ft., which allowed the company to stock large quantities of inventory.
Products/Services
Flyleaf Books offers a variety of magazine, book, and music selections. You will find books in every genre, from fiction to non-fiction to business and science to children’s hobbies, collecting and business. We will be focusing our music selection on CD’s because they are the most in-demand and take up the most floor space. We will also offer a competitive buy-and-trade service to help lower our inventory acquisition costs. This will make our store more appealing to customers. Customers who are looking for hard-to-find items can also use our search and order service. Flyleaf Books is going to have a relaxed “reading room” atmosphere. We will encourage the use of couches and chairs.
Market
Over the last two years, our market has seen a drop in growth. This is due to the general weak economy. Book store industry sales rose only 3.6% for last year whereas overall U.S. retail sales grew by 4.3%. Management believes this is a benefit for the used bookstore sector. As customers cut back on purchasing, used bookstores will look more attractive to customers who still wish to purchase books. Therefore, management believes this may be a good time to get into the industry and gain market share.
The consolidation of the entire bookstore industry is underway. The market was previously dominated by small, local stores and regional chains. With the advent of the “superstore” as created by Barnes & Noble, the largest players in the market have been able to gather significant market share and drive many independent booksellers out of the market.
Independent booksellers have the ability to still be viable in the used book market. This segment generally does not attract big companies since the “superstore” concept is much more difficult to replicate in a market with such low profit margins. As long as the bookseller can afford a large enough facility to store an attractive inventory, they will be able to compete with national chains.
Financial Considerations
The start-up costs for the store are $178,000 and include one-time fees. These costs are financed by both private investors and SBA loans. It is expected that we will be operating at a loss during the first couple months before advertising starts to take effect and attract customers. Flyleaf Books will be receiving periodic influxes of cash to cover operating expenses during the first two years as it strives toward sustainable profitability. Already funding has been obtained from private investors and lending institutions. We do not anticipate any cashflow problems in the next 3 years.
1.1 Objectives
These are Flyleaf Books’ future goals over the next three years:
- Gain profitability by July 2.
- You can earn approximately $200,000 per year in sales
- Pay owners a reasonable salary while running at a profit.
1.2 Keys to Success
Flyleaf Books has to keep these things in mind if they are to survive and thrive.
- We need to achieve a high level visibility through advertising, billboards, media and other means.
1.3 Mission
Flyleaf Book’s mission is to offer quality used literature at the best prices in Cleveland, OH. Flyleaf Book also strives to create an environment that encourages browsing, relaxation, as well as a place where clients can spend extended time. Flyleaf’’s unique offering to customers will include a large selection books, magazines, and CD’’s that can be used. Additionally, we offer a buying/buyback option which reduces book acquisition costs, and allows our customers the opportunity to trade in unwanted books/CD’’s for cash.
