Your Business Plan is your road map to the future. The success of your new business will be in direct proportion to the effort you put into researching and preparing your business plan. Business plans ensure your success and are required by financial institutions when applying for a small business loan.

The business plan should include all relevant supporting data for areas such as suppliers' price lists, competitors' price lists, photographs of your product, leases, etc.

The following is a description of those items that The Quilted Rose believes will be helpful to include in a business plan.

INTRODUCTORY PAGE AND BUSINESS PROFILE

Your name, address and phone number
Start up date of the business
Company Name
One or two paragraphs outlining your proposed business venture, keeping in mind that non-quilters may be reading this plan. Include a photograph of a completed quilt that you have quilted on a longarm machine.

Example: A survey was conducted in 2000 that showed nearly 20 million adult Americans spent almost $2 billion per year on their quilting hobby. The "dedicated quilters" (5% or 1,100.000+) start an average of 14.2 projects per year and spend more than $500 on quilting annually. It is time consuming (and sometimes physically impossible) to hand quilt a large quilt, so machine quilters are in great demand. The machine quilter uses a large longarm quilting machine (similiar to a sewing machine), combined with along table and roller system that holds the 3 layers of the quilt together while the sewing machine is in use. My goal is to use a longarm machine to provide high quality, machine quilting for this growing market.

TABLE OF CONTENTS

Use a Table of Contents and number the pages in your business plan.

RESUME

List all work experience
List all education
List all revelant hobbies and volunteer work
Relate how experience gained during each of your occupations, education and hobbies or volunteer work will help you sucessfully operate your proposed business.

BUSINESS OVERVIEW

Mission Statement:

It is important to have a vision of what you want your business to become. Mission statements state your short-term primary goal. The mission statement should be as short and consise as possible.

Example: My mission is to use a longarm quilting machine to provide high quality, machine quilting at a reasonable price.

Highlight some of the reasons you would like to start this specific business.

Business Goals:

Short and long term objectives should be stated along with who is responsible for implementation and the time frame. Will family and/or friends be involved?

Location and Facilities:

Are you planning to work from home or a storefront similiar to The Quilted Rose? Include the address, a description of the site, the size, and lease arrangements, if applicable.

INDUSTRY OVERVIEW

Description of the Industry:

Who is the competition?
Is sthe strongest competion local or from outside the area? Are quilters currently shipping their quilts away from the local area to have their quilts completed?
How will new technology affect the quilting industry?

Competion:

Provide names and address for all competitors.
What are your competitors' strengths and weaknesses?
What do they specialize in, if anything?

BUSINESS:

Use and Source of Funds:

What funds will be required to start your business?
What is the source of these funds?

One-Year Cash Flow Statement:

Provide a detailed listing of your projected monthly sales and expenditures by month of the first 12 months of your business. This is necessary so that you have an estimate of what the cash requirements will be before starting your business.

PRODUCTS AND SERVICES:

Description of service:

Describe exactly what it is that you will be providing as a service.
What size will your business be? How many projects will you quilt each week/month?

Example: I plan to quilt between 4-6 quilts per week.

What are the key features and benefits to your customers?

Example: I will be providing unique quilting patterns (the feature) so that my customers will have heirloom quality quilts to hand down to their family (the benefit). I will also be providing a service in picking up the overflow business from existing quilters.

Why will customers buy your service instead of a competitors?

Example: No waiting and a fast turnaround time.

Uniqueness of Service:

It is very important that your service be unique in some way. Describe how your service will differentiate from the competition.

Example: I plan to or have attended classes and learned from experts in the longarm quilting field. I began my training with a 4-day class at The Quilted Rose in San Diego. With this knowledge, I can provide unique, one-of-a-kind quilting patterns for my customers.

Suppliers:
List all suppliers and the products you will be receiving from them (e.g., thread, batting, backing fabric).
What will your supplies cost you? Include price lists from the suppliers.
What will the payments terms be?
Note: The Quilted Rose will furnish you with a list of suppliers when you attend our classes and/or purchase a Gammill Quilting Machine from us.

Competitive Advantage:
Do you have specialized skills, technology, access to cheaper materials or lower overhead costs? What sets you apart from the others?

Example: Technical support from machine manufacturer and/or dealer, i.e., Gammill or The Quilted Rose. Trained with an expert longarm quilting teacher.

PRICING

Is there any competition in your local area? If so, what is the competition charging for their service?
How will the price of your service compare to competitors?
What is the minimum you will work for?
How much profit will you want?
Determine how you wil price your service. Will you charge by the hour or by the square inch?
Some examples of the cost of a queen size (92 x 96) quilt:

$25.00 per hour with a fairly simple pattern = 3 hours x $25.00 per hour = $75.00
$30.00 per hour with a fairly simple pattern = 3 hours x $30.00 per hour = $90.00
$30.00 per hour with an intricate pattern = 4.5 hours x $30.00 per hour = $135.00
$ .01 per square inch = 92 x 96" = 8832 square inches X $ .01 = $88.00
$ .015 per square inch = 92 x 96" = 8832 square inches X $ .015 = $ 132.00

What will you charge for batting and backing fabric? Most stores charge double the wholesale cost.

MARKETING AND ADVERTISING

Know your target clientele:

Who will purchase your services?
Where do they presently do business?
Why is there a demand for your service?
Why should a customer purchase from me?
In what ways will you have an advantage over your competitors, and in what ways (if any) will you be at a competitive disadvantage?

Advertising:

What is your plan to market your product?

Examples: Business cards, web page, representation at local quilt show, ads in guild newsletters, flyers placed in local quilt shops, word of mouth, family and friends, etc.

Provide details on how your advertising dollars will be spent.
Be consistent with all advertising. Use a common logo, similiar print style, and identical colors on all advertising (business cards, stationary, flyers, etc.)
Always remember to state the benefits gained by the customer in your advertising.

BOOKKEEPING AND TAXES

It is important that an income statement and balance sheet be completed ona monthly basis.
Who will do the bookkeeping? Will it be out-sourced?
Do you have the expertise? If you need training, how will you get it?
Will the bookkeeping system be manual or a computer-based program?
Dome has a manual bookkeeping system that can be purchased at office supply stores and on many internet sites. QuickBooks is an excellent financial and accounting software program for your computer.
Who will prepare your yearly taxes and ensure the accuracy of your bookkeeping system?
Research the tax laws of your state and obtain licenses as required. Much of this information can be obtained on the internet.

The State of California Board of Equalization website is www.boe.ca.gov. In California, state tax is collected on quilting services and sales of batting, backing, thread, etc.

BUSINESS LICENSES

Check with your local city to determine what type of business license is required and the cost.
If you are going to operate the business under any name other than your own, a search should be done to make sure that the name is available and protect it by registering that name.

INSURANCE

Contact a reputable insurance agent. You must consider a loss of the items in your possession and the liability aspect
Talk to the insurance agent regarding possible changes to your homeowner's policy.
If you will be using your personal vehicle for business, even occasionally, consider putting business coverage on it.

RISKS

What are the major threats or risks to your business? What would happen if you were sick or injured?
Identify the risks and then outline what your response whould be should they occur.

ADVANTAGES

Small start up costs, large return on your investment
Working in an industry that you love
Setting your own hours/flexibility of hours
Opportunity to meet other quilters
Training and service available through The Quilted Rose

This business plan is for the exclusive use of The Quilted Rose and it's customers, and may not be reproduced without permission.