Sample Short Form Business Plan
Picture Perfect, Inc.
900 Remington Road
Philadelphia , PA
Phone: (215) 976-4000 Fax: (215) 976-4001
E-mail: mpeterson@aol.com Web Site: www.ppi.com
Business Description :
Picture Perfect, Inc. (the “Company”) was founded by an experienced management team to develop and market new types of consumer products in the picture frame, photography products and photo album markets. The Company has applied for patents on several of its new innovative products.
Industry and Market Description :
The picture frame, photography products and photo album markets have annual sales in excess of $15 billion, expected to grow to $20 billion by 2006. The picture frame industry is dominated by three large players (Burnes, Fetco and Carr) and smaller niche players ( Malden , Advent). Photo albums are made and distributed by many of the same companies. Large retail chains as well as specialty boutique stores are the primary purchasers of picture frame and photo albums.
The photography products industry consists of numerous companies large and small (Kodak, Fuji , Arrelle). The Company, however, will be focussing on photography products for general consumer orientation (as opposed to professional photographers).
The Company plans to develop and market comprehensive innovative product lines to intelligently compete in all three areas, with the goal of obtaining significant and profitable market share.
Company History :
The Company was formed in August 2003 by four individuals with significant experience and contacts in the various relevant industries. Since that time, the Company has (1) designed four new picture frame products, (2) designed two new photo album products, (3) lined up several distributors, (4) made product demonstrations to Macy's, Nordstroms, Wal-Mart, JC Penney, and other major retailers, and (5) implemented manufacturing contracts.
The Company's Products :
The Company's products are intended to be innovative and interesting. The Company has designed a new series of frames, the DateFrame™ picture frames, which incorporate a feature that displays the date when the picture was taken on a built-in mechanism in the frame. The Company has a patent pending on this product line. The Company has also designed picture frames and photo albums, samples of which are available on request. The Company plans to develop a broad based product line to penetrate the market.
Marketing :
The Company intends to use a combination of employees and distributors for marketing its products. The Company founders have extensive relationships with major prospective chain stores and distributors, which should facilitate marketing. The Company has also been developing distinctive packaging and logos to achieve brand recognition for its products.
Projections :
The Company projects that sales and profits will be as follows, all as further detailed in more extensive projections and underlying assumptions available upon request:
| |
2004 |
2005 |
2006 |
| Revenues |
$450,000 |
$1,625,000 |
$3,000,000 |
| Cost of Sales |
225,000 |
700,000 |
1,100,000 |
| Gross Profit |
225,000 |
925,000 |
1,900,000 |
| Operating Expenses |
452,000 |
707,000 |
1,210,000 |
| New Income (loss) Before Taxes |
(277,000) |
218,000 |
690,000 |
Management Team :
| President : |
Barry Sanders : Previously Head of Product Development at Burnes of Boston (the largest picture frame company in the United States ); formerly Marketing Manager at Eastman Kodak. 20 years of industry experience. |
| Vice President of Operations : |
Terry Davis : Previously Office Manager at PhotoExpress, Inc.; 10 years of operations experience with Carr Frames, Inc. and Fetco International. 15 years of industry experience. |
| Vice President of Development : |
Joe Bledsoe : Previously Chief Product Designer of Arrelle (consumer photography products) and Product Manager at Macy's; 10 years of industry experience. |
| Chief Financial Officer : |
Confidential Candidate : CPA, Big 6 Accounting experience; Controller and CFO for consumer products companies; 15 years of industry experience. |
| Vice President of Marketing : |
Jill Buckley : MBA from Penn State ; Marketing Manager at Digital Albums, Inc. and Burnes of Boston . 12 years of industry experience. |
| Funding : |
|
| Amount Needed : |
$3-$5 million of funding is needed over the next two years for development, marketing, manufacture, sales and personnel. |
| Funding History : |
Over $400,000 has been raised from the founders of the company and angel investors. |
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