C&M Bridal Business Plan - The Gift of a Wedding - Is Priceless
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
C&M Bridal
Business Plan
The Gift of a Wedding
Is Priceless
Carrieann Payne and Meghan Kelly
The purpose of this plan is to secure financing in order for C&M Bridal to start and benefit Mesa County.Table of Contents
C&M Bridal
Executive Summary 3, 4, & 5
Section I: Business Description
Business Concept 6
Goals 6&7
Industry Analysis 7&8
Form of Ownership 8
Facility Requirements 8&9
Opening Date 9
Legal Requirements 9
Section II: Marketing Plan
Geographic Market 10
Customer Profile 10
Potential Customers 10
Market Penetration 10
Competitive Analysis 10 & 11
Pricing 11
Promotion 12 & 13
Section III: Management Plan
Employees 13
Organizational Chart 13
Business Expertise 14
Section IV: Financial Plan
Initial Capitalization 15
Cash Flow Projection 16 & 17
Appendices A, B, C 18
2Executive Summary
There are so many details in planning a wedding that the work should not be left
up to just one person; it should be left up to professionals. Why not? This is a once-in-a-lifetime
day! C&M Bridal is a new and unique company focused on bridal consulting. There are so
many details that go into the entire process of planning a wedding that many people forget to
enjoy the experience. There is a definite need for a company such as this to handle all the details
and assure that events go as planned for a wedding.
Our services are unlike any other in Mesa County, and we are sure the public will
have a positive response to the services we provide. C&M Bridal handles all components in the
wedding planning process. We have partnered with local businesses to provide all services
including: location and reservations for the ceremony and reception, invitations, food
arrangements, photography, flowers, and decorations. Companies that we have already
contacted and plan to work with include: the Adam’s Mark Hotel, Two Rivers Convention
Center, the Redlands Community Center, Johnson’s House of Flowers, Mauch Photography,
Hallmark, and Partyland.
Through the years we have attended many weddings and seen the stress and
frustration that goes along with the process. This is suppose to be one of the greatest moments in
our lives right? So let us do the work for you! We cater to the bride and her family in designing
the best package for the actual day. We want to be trusted in all our business relationships, and
from that we will strive to be known as experts in the wedding planning process. Because of our
desire to work with the community and the uniqueness of our services, there is no reason why we
will not lead the wedding industry in Mesa County. We are confident that the public will benefit
greatly from our services.
Our target market would be made up of any couple getting married. There are
many different age segments in the Grand Valley that could benefit from a consulting service
3such as this. Opening November 2001 in time for the holiday season, we are anticipating 100
weddings for the first year. This is our marketing penetration number and goal for the first year.
The population in Mesa County is increasing at a 2% rate, and the desire to get married will
never change. Therefore, we feel that this is an attainable goal. There are couples in the area
that are getting married for the first time and would benefit greatly from experts, and there are
others in the community getting married for the second or third time. These people in particular
have the disposable income to spend on a beautiful and remembered wedding and would
appreciate perfection. In our marketing efforts, we are planning to advertise on Mix 104.3,
Magic 93.1, and KEKB 99.9 in the beginning. We will also advertise at the different stores we
have partnered with and participate in the local bridal fairs. The bridal fairs are a great way to
show our consumers how much we know and show our desire and willingness to help.
The form of ownership we have decided to utilize is a general partnership. The
profits will be split evenly between both Carrieann and Meghan, after the expenses are paid of
course! This is an appropriate start for C&M Bridal, and if there later shows to be a need for
employees, we are prepared and ready to hire as many as needed. In order to be successful and
truly understand our customers, Carrieann and Meghan would like to start this endeavor alone
to develop a clear understanding of what works! Both of us are capable and ready to handle the
other aspects of running the start-up business. Our job descriptions are later listed in the
Management Plan.
The Financial Plan included was the most interesting and helpful part of the plan.
It showed how likely our company is to make profit in the first year, and we were able to check
the pricing plan we have developed also. The end result showed not only a successful first year
start-up, but a profitable at that. Knowing that there is a strong possibility for profit in the first
year alone will assure lenders that we are capable and prepared to pay back whatever money we
4borrow. C&M Bridal is a company that is ready to work with the community and use the talents
we have.
By offering a service unlike anyone else, C&M Bridal has the opportunity to gain
and own the market. This is a great advantage for us; we will be able to penetrate the market
before our competitors and demonstrate to the community how our service has always been
needed. After reviewing the financial portion of our business plan, it is clear that C&M Bridal
will be a successful business and loan repayment will not be a problem. We are certain that our
expertise will make this company a success.
5Section I
Business Description
Business Concept
We want to handle all components in the wedding process. C&M Bridal will take away
the stress of planning a wedding and make the planning both fun and memorable. There are so
many details in planning a wedding that the work should not be left up to just one person; it
should be left up to professionals. Why not? This is a once-in-a-lifetime day! We simply want
the bride and her family to tell us what they want, and we will handle the tedious scheduling
conflicts, reservations, and ordering processes. We are the consultants, and through our work
with local companies and other specialists, we will assure the family that the planning tasks will
be complete and on schedule. We want to be a part of most Western Colorado weddings to some
degree, but our main service is for a flat rate and it includes the following services:
-Location and Reservations (Ceremony and Reception)
-Invitations
-Food Arrangements (Reception)
-Photography (Ceremony and Reception)
-Flowers
-Decorations
At C&M, we feel our service is unique because we work directly with the bride and the
local businesses making sure that the wedding is successful in every way. To our knowledge,
there are no businesses such as this, so this demonstrates a definite need for such a service. Our
expertise comes from witnessing and participating in many of our friends’weddings. The
frustration they underwent showed the need for C&M Bridal.
Goals
In this business, we have many goals and visions. First of all, we hope to develop on-
going relationships with both local businesses and our clientele, the wedding parties. We hope to
organize a positive experience for the bride and her family, so that we can later depend on word-
6of-mouth advertising. Finally, we want to be trusted in all of our business relationships, and
from that we want to be considered experts in the wedding planning process. In this first year,
our main priority is to facilitate 100 weddings in Western Colorado. As a vision, we see
ourselves having some role in almost all weddings in Western Colorado. This could be from
simply offering suggestions and expertise, participating in one component of the process, or
being the sole provider for a family and using all our available services. We want and see
ourselves being the leader in the wedding industry and creating a new idea here in Western
Colorado!
Industry Analysis
After researching the industry in Western Colorado, we found that there is nothing like
C&M Bridal in Grand Junction or the surrounding areas. Therefore, this service would be in the
growth phase of the product life cycle. We could potentially compete with the individual
components of our wedding package, flower stores and photographers etc., but the industry they
are categorized in is different from ours as well. We are in a category of our own, and the
information that led us to conclusions about our market segment and potential success comes
from marriage trends and statistics for married vs. single households.
The Texas Bureau of Vital Statistics, from the 1996 Marriage and Divorce Annual
Report, tells us that the wedding trends from 1969 to 1996 have increased. This is expected due
to inevitable population growth, but the information also states the periods of decline. The trend
increase has not been continual for these 30 years. There was a major decline in the late 1980's
perhaps due to a slow economy. The new trend started in 1990 and has remained steady since.
The growth of weddings in 1996 was 0.6% higher with 178,659 marriages to 177,581 in 1995.
This report stated that many of the factors for the marriage trend coincide with the age structure,
higher with more young people, and the economic state, higher when the economy is strong.
Looking at the information from the Grand Junction Chamber of Commerce Population of Age
7Groups page, we can see that the largest segment in the Grand Junction area is from the ages of
15-29 with 22.4%. This is the largest population segment in the area and the economy is
currently fairly strong. Looking at the U.S. Census Bureau Official Statistics chart for Married-
Couple Households, in the past 5 years the number of married-couple households in the U.S. has
risen 2.14%.
This industry is attractive to us because it is something entirely new for the Grand
Junction area. We feel the public, especially the engaged population, will be very excited and
willing to make use of our services. The key factors to success revolve around how we market
ourselves and make ourselves available to the people.
Refer to Appendix A for -1996 Annual Report-Marriage and Divorce
-Grand Junction Chamber of Commerce-Population
-Table C of the Census Official Statistics, Married-Couples
Householders by Sex: 1980-1997
Form of Ownership
Carrieann and Meghan have both decided to share the name C&M Bridal determined by
verbal agreement. We have also decided to share the business profits as well. Our form of
ownership will be a general partnership. This form is easy to establish and maintain, and it is
appropriate because we are not planning on hiring other employees as of now. If later business
demand calls for other employees, we will consider hiring additions to our company. We
understand that there are also risks associated with a general partnership, but we are prepared to
deal with that when it comes.
Refer to Appendix A for Partnership Agreement and Trade Name Registration
Facility Requirements
Our building facilities will be approximately 2,000 square feet. Our monthly rent is
estimated to be $2,000. A prospective location for C&M Bridal is in the Eastgate Shopping
Center on North Avenue. This facility is empty as of now and ready for a new business. North
8Avenue maintains steady traffic flow, so we feel many people would see our business and want
to inquire about it.
C&M Bridal’s sign will cost approximately seven to eight thousand dollars. Our sign
will be made out of a dark oak with our name engraved on it. The name will be burnt into the
wood to present an elegant, yet stylish look. We may decide to have a picture of a bride and
groom engraved into the sign; it would all depend on how much more it would cost. The
important thing is to make sure the sign presents a look of sophistication for C&M Bridal.
Opening Date
The tentative opening date is November 2001. This would prepare us for those winter
and holiday weddings. Weddings are something that can be any time throughout the year.
However, the summer months do seem to be the busiest. For this reason, we want to give
ourselves enough time to gain experience and market to couples for summer 2002.
Legal Requirements
The legal requirements that we need to consider are few. We have taken care of our
name registration, and we know that C&M Bridal is an acceptable and available name for
business use. Our location would have lease and monthly rent requirements, and we could
display a sign at this location because it is for commerce use. Even though we are not required
to participate in a partnership agreement, we feel that it is necessary to ensure a healthy and
successful business environment. Taxes are the final and most important legal consideration.
The following bulleted list encompasses all legal requirements C&M Bridal will have to
consider.
§ Lease and Rent Requirements
§ Right of Business Name
§ Income Tax
§ Sales Tax
§ Property Tax
§ General Business Insurance/Liability
§ Contract Lawyer
9Section II
Marketing Plan
Geographic Market
C&M’s geographic target market will primarily be in Mesa County. We will target the
following areas such as Fruita, zip code, 81521, Grand Junction, which has several zip codes,
Clifton, zip code 81520, and Orchard Mesa and Palisade, zip code 81526.
Customer Profile
Our customer profile is couples getting married in Mesa County. These couples can be of
any age. Ideally we would target the 30-44, because these people have more disposable income.
This age segment also would probably be getting married for a second or third time; ergo, they
would spend more money on the second wedding.
Potential Customers
According to our search from www.quickinfo.net, we discovered that there were
approximately 900 weddings in Mesa County in 2000.
Refer to Appendix B for number of Colorado Marriages
Market Penetration
After speaking to the owner of the Victoria Rose, Judy Panozzo, she indicated that she
sells approximately 200 wedding dresses a year. Since there are no wedding planners in the
Grand Valley, Meghan and I have decided a reasonable penetration number would be 100
weddings, half the number that the Victoria Rose serves.
Refer to Appendix B for Victoria Rose contact information
Competitive Analysis
Our competitive analysis is relatively simple. After determining that there are no
10wedding planners in the Grand Valley, we have concluded that the only direct competition would
be the brides who want to plan their own weddings. We have searched in the yellow pages and
have talked to two bridal stores in Grand Junction that sell wedding dresses to see if services
such as ours are already offered. To our knowledge C&M Bridal would be the only store in
Grand Junction that would offer such services mentioned above.
Pricing
The total package price is made up of what the total would have been if the client had
gone to each component individually plus 15% of that total, for our services. C&M Bridal
receives a 10% discount of the total cost from each component, such as Johnson’s House of
Flowers or Mauch Photography, because we are in essence bringing them business. From the
total of all components, the total package price, we then add an additional 15% cost for our
services. Therefore, we get a 25% profit from the total cost. This is how we are funded. The
pricing of each package is impossible to determine, as each bride chooses a different package.
The companies that we contract from have their own set prices, and these are the prices that we
also implement. The advantage of using C&M Bridal is as a matter of convenience and
assurance that everything will go as planned.
Promotion
We plan to promote our grand opening at the different bridal stores using fliers and
business cards. We will also promote our grand opening at the different stores that we will
contract with, such as Johnson’s House of Flowers, etc. However, the promotion for our grand
opening will be on three different radio stations starting in October 2001, one month before our
grand opening. We are willing to pay extra for the prime hours so that our name will be heard.
The radio stations that we will use will be Magic 93.1($30/ad), Mix 104.3 ($25/ad), and KEKB
99.9 ($40/ad). After the November grand opening, we will continue to advertise on these
11stations for three months. These stations are the most listened to in the Grand Valley. We feel
that we will reach our target market on these stations. As an incentive to come talk to us and
book your wedding, we will include a complimentary photograph of your choice of the wedding.
(This applies to the first ten weddings; no larger than a 16 X 20 please.) We also plan to
promote C&M Bridal at the bridal shows such as the one at Two Rivers Convention Center in
January 2002. The booth rental cost varies from $500-$2000. We have decided to have a mid-
range booth, costing $1000. We understand that we will miss this year’s bridal show, but we
will be prepared 2002 year with the show in January.
Refer to Appendix B for a copy of the promotional flyer
12Section III
Management Plan
C&M Bridal will only employ two people in the beginning. Meghan Kelly and Carrieann
Payne will operate the whole store. Once the business is up and running and profits are being
made, employees may be the next natural step in expanding the business.
Meghan’s job description will consist of the following activities:
1) consultation of customers
2) secures all reservations for churches and receptions
3) supervises decorations of churches and receptions
4) orders catering services, flowers, and photography
Carrieann’s job description will consist of the following activities:
1) all bookkeeping, accounting and deposits
2) marketing activities
3) work together with local businesses to form strategic alliances
4) attending bridal fairs
Both Meghan and Carrieann will be expected to serve each customer with the utmost
respect and deliver the highest quality of service that is possible. They will responsible for
making ethical and moral decisions, and must justify their decisions if questioned.
Organizational Chart
Because the two partners, Meghan and Carrieann, solely operate C&M Bridal the
organizational chart will be very basic.
Meghan Kelly Carrieann Payne
_________________
Our resumes are in the appendix. Three references are listed, one of which is a banking
reference.
Refer to Appendix C for a copy of our resumes
13Business Expertise
We chose this business because nightmare-wedding stories are far too common, and we
feel we can give the bride and groom a perfect day without having to worry about unimportant
details. Carrieann has been married once before, and as a first time bride, it was difficult to
know where to go and what to do. It is important for C&M Bridal to take the frustration and
worry out of the bride’s life and let her enjoy her day. By providing a service that currently does
not exist, we feel that we can not only give the wedding party a beautiful day, but also turn our
service into a profitable business.
14Section IV
Financial Plan
Pro Forma Statements
Initial Capitalization
Decorations
Silver Settings (for eight) $250
Table Cloth (one or two high quality) $45
Crystal Glasses (for eight settings) $200
China $300
Display Oak Table (with eights chairs) $2000
Conference Table (8 or more) $1000
Invitation Catalogs $100
Flower Arrangement Catalog $125
Menus No cost
Decorations Subtotal $4020
Equipment
Two Computers (includes Internet access) $1800
Two Cell Phones (unlimited access) $200
Phone line (Fax, Internet, and Business-line— 3 needed $135
Fax Machine $100
Business Sign $8000
File Cabinets (2) $160
Two Desks $300
Two Desk Chairs $150
Office Supplies $465
Equipment Subtotal $11310
Promotional Materials
Radio Ads
Mix 104.3 ($25/ad) $375
Magic 93.1 ($30/ad) $450
KEKB 99.9 ($40/ad) $800
Bridal Fair Booths $1000
Fliers $175
Promotion Subtotal $2800
Other Associated Costs
Initial Deposits (phone, utilities etc.) $200
Utilities $2000
Rent (first month’s rent) $2000
Insurance Deposit $300
Legal Fees (develop contract— 3 hours) $600
Miscellaneous Items (Alarm system, keys etc.) $400
Associated Costs Subtotal $5500
Total Cost $23630
First Three Month’s Operating $20205
Total Initial Capitalization $43835
Owner’s Contribution (40%) $17534
Financing Needed (7% for 5 years) $26301
1520% Cash Flow Statement
1625% Cash Flow Statement
17Appendices
18Feasibility
After manipulating the cash flow statement using different pricing tools, it was clear that
charging 20% extra (30% total) was too high. We then calculated using 10% extra (20% total),
and this total seemed to undermine our potential. So from that, we took the median— 25%. This
is a happy medium between overpricing our service and undermining our ability to do more.
This is why there are two cash flows provided, but we have chosen to use the 25% figure.
Therefore, we feel C&M Bridal is very feasible, and we are ready to open ASAP!
19This is for 25% profit 12 MONTH CASH FLOW CYCLE
PRE STARTUP November December January February March April May June July August September October TOTAL
estimate actual estimate actual estimate actual estimate actual estimate actual estimate actual estimate actual estimate actual estimate actual estimate actual estimate actual estimate actual estimate actual estimate actual
1 CASH ON HAND $26,301 $26,301 $22,414 $28,577 $26,744 $36,257 $32,749 $32,591 $37,079 $62,046 $83,663 $101,551 $101,393
2 CASH RECEIPTS
a Cash Sales $3,350 $13,400 $6,700 $16,750 $5,025 $8,375 $11,725 $33,500 $30,150 $25,125 $8,375 $5,025 $167,500
b Collections $0
c Cash Injection $0
3 TOTAL CASH RECPTS $0 $3,350 $13,400 $6,700 $16,750 $5,025 $8,375 $11,725 $33,500 $30,150 $25,125 $8,375 $5,025 $167,500
(2a+2b+2c=3)
4 TOTAL CASH AVAIL. $26,301 $29,651 $35,814 $35,277 $43,494 $41,282 $41,124 $44,316 $70,579 $92,196 $108,788 $109,926 $106,418
(1+3)
5 CASH PAID OUT
a Wages $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
b FICA $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
c Gasoline $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400
d Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000
e Utilities $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000
f Cell Phones $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400
g Office Phone Line $135 $135 $135 $135 $135 $135 $135 $135 $135 $135 $135 $135 $1,620
h Marketing/Promotions $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $21,600
I $0
j Misc. Expenses $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $4,800
k Subtotal $0 $6,735 $6,735 $6,735 $6,735 $6,735 $6,735 $6,735 $6,735 $6,735 $6,735 $6,735 $6,735 $80,820
l Loan Principal $502 $502 $502 $502 $502 $502 $502 $502 $502 $502 $502 $502 $502
m Capital Purchases $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
n Other Startup Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
o Reserve $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
p Owner's Withdrawal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
6 TOTAL CASH PD. OUT $0 $7,237 $7,237 $8,533 $7,237 $8,533 $8,533 $7,237 $8,533 $8,533 $7,237 $8,533 $8,533 $95,916
(5a thru 5p)
7 CASH POSITION $26,301 $22,414 $28,577 $26,744 $36,257 $32,749 $32,591 $37,079 $62,046 $83,663 $101,551 $101,393 $97,885
(eom) (4 minus 6)
OPERATING DATA
(non cash flow info.)
Weddings predicted 2 8 4 10 3 5 7 20 18 15 5 3
Sales Formula 200 guests: Invitations 200
Food/Cake 3400
Photos 2000
Flowers 350
Decorations 250
Location/Reception
500
6700
**We get a 10% discount from -670
each component
**We pay the companies 6030
But from the totalpackage cost (6700), we charge an additional
7705 (6700*1.15)
20% for our services
To find the profit, we subtracted our profit (7705) from what we have to pay the components (6030), to make $1675 per wedding.
To determine profit, we then multiplied the number of weddings by $1675.You can also read
