Anne Quackenbush

MAY 20, 2013

Every Occasion

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Table of Contents

Section I: Introduction

Executive Summary……………………………………………………………………………………………………………………4

Self-Analysis……………………………………………………………………………………………………………………………….4

Section II: Analysis of the Business Situation

Trade Area Analysis

Geographical Analysis………………………………………………………………………………………………………………..6

Competitive Data……………………………………………………………………………………………………………………….7

Market Segment Analysis

Market Segment Analysis…………………………………………………………………………………………………………..7

Analysis of Location

Location……………………………………………………………………………………………………………………………….….10

Floor Plan………………………………………………………………………………………………………………………..……….10

Section III: Planned Operation of Proposed Business

Proposed Organization

Type of Ownership……………………………………………………………………………………………………………….….12

Management…………………………………………………………………………………………………………..……………….13

Proposed Product or Service

Proposed Product and Service………………………………………………………………………………………………….13

Suppliers………………………………………………………………………………………………………………………..………..15

Equipment……………………………………………………………………………………………………………………………….16

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Proposed Marketing Strategies

Pricing Policies…………………………………………………………………………………………………………..…………….17

Promotional Strategies…………………………………………………………………………………………………………….18

Section IV: Financing

Projected Income and Expenses

Start Up Costs………………………………………………………………………………………………………………………….19

Sales Forecast………………………………………………………………………………………………………………………….20

Income Statement……………………………………………………………………………………………………….………….21

Building Costs………………………………………………………………………………………………………………………….22

Proposed Plan to Meet Capital Needs

Financing………………………………………………………………………………………………..……………………………….23

Conclusion……………………………………………………………………………………………………………………………….23

Work Cited……………………………………………………………………………………………………………………………….25

Appendix………………………………………………………………………………………………………………………………….26

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Section I, IntroductionExecutive Summary

Every Occasion provides the Rogue Valley and Central Point a new and innovative dress store and shopping experience. This is something everybody wants- a painless and quick spree where you can purchase your dress and have it custom fit to your body just the way you want it, then and there. There are many stores in Central Point and the Rogue Valley that offer formal wear or alterations and custom sewing, but Every Occasion is the first to offer both. We plan to emphasize our differences and the ease of getting it all done in one visit.

There is a wide selection of formal wear available to make for even easier shopping trips, i.e. the whole bridal party can all shop for dresses there, because bridal and all formal wear attire is available for purchase, with additional wedding catalogs for dresses that customers may wish to order.

Making a selection in the midst of so many beautiful gowns can be hard, and to remedy that, personal shoppers are employed to be style support. Management at Every Occasion is team managing with my partner, an event planner, which will provide more communication between employees and managers, and increase team problem solving.

Though a wide range of product offered, Every Occasion’s target market is focused, clear, and concise. Based on the size of our target market and the market area, our sales projections for the first year will be $49,000. Every Occasion is expected to target 4,208 people, about 33% of the people in the Central Point area, with an estimated customer spending per month to be $160. The estimated profits will easily keep Every Occasion afloat and successful, but two loans will be needed to pay off the startup costs. We are confident both can be paid off in seven to eight years, and that the monthly payments will be paid easily.

The easy efficiency, quality of product, customer service, and work that comes with the valued experience of shopping at Every Occasion will be sure to attract attention and customers from around the valley. Once we have a loyal customer base we hope to expand further, and increase profits as we market our worthy product to deserving customers.

Self-Analysis

Starting a business without a wealthy knowledge of business, strategies, finances, and etc. is like riding a motorcycle after you’ve only learned how to ride a tricycle. You’ll lose your balance, probably wiggle around, and then crash headfirst in the bushes. Or, you may not even be able to start it. Without a previous knowledge of how the bike worked, you wouldn’t be able to go, and if you could, you wouldn’t make it very far. The same concept applies to starting a business: don’t run before you can walk. However, if you’re worked your way up from tricycle to training wheels to a two wheeler, you would have learned key skills like balance, patience, determination, and how to properly take care of your bike. These skills are a necessity to be successful on your bike and with your business. I have gained and refined those qualities through many years of hard work put forth into school and grades, my jobs, and yes, learning to ride my bike.

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My experiences in my education, the work force, and in everyday life have prepared me and led me to be completely capable to start and manage a business. There have been three main contributors to my education and training: high school, my home life, and my diverse selection of jobs and internships I’ve held. The courses I’m taking in high school help me to prepare for real life, and I’ve applied the information about interviews and making connections to get internships and jobs. I’ve interned at a bakery and with a seamstress, and currently I’m sewing for the Rogue Creamery. It requires me to set my own hours and be my own boss, which has been difficult but a great experience for me. I have my strengths, and I have my weaknesses, but I believe it is likely to have a profound effect on success to have both in an entrepreneur world. I excel in math, leadership, and I’m not afraid to take risks. I have confidence in myself and my abilities, and that I can improve upon the skills that aren’t so strong. For instance, I could be more outgoing, so every day I am trying to be more friendly and open and talk to someone I normally wouldn’t. Because I made that a goal of mine, I have become friendlier and I don’t have a problem speaking in front of people anymore. I am a positive, hard worker, so when I reach a challenge or a bump in the road, I know I can work through it, and I can make my weaknesses strengths. The willingness to take risks is imperative in the financial world, just like it is when learning to ride a bike. You will never be able to be successful if you don’t get on the bike and push off. The same goes with business, for if you never take that first step, you can know for sure you’ll never succeed. I figured this out when I was a kid, and I’ve never forgotten it. I was the daredevil in the family, the daredevil with a quiet voice, but a daredevil still the same. I climbed the tallest trees the farthest, drove the fastest, and explored the most. I experiment with food, and with my hobbies, because I willing to do something new and different if it might help me grow or be successful in living a fulfilling life. This kind of thinking and way of living has gotten me in trouble before, but it has helped me far more than it has hurt me. Constantly putting yourself out in the open when trying something for the first time is also accepting you might fail. But there is a saying that goes, “In order to succeed, your desire for success should be greater than your fear of failure.” Once I got past my fear of failure and judgment, I have grown so much from my failures and my successes. I know I have to change what I’m doing wrong, improve my technique, and learn to laugh at myself when I make a mistake. All of it is part of being a successful entrepreneur. I have figuratively gone through the process of learning to ride my bike with entrepreneurship, which means I started small with no knowledge or experience. But because of the education and training experiences I’ve sought after, I have grown in confidence and I can effectively focus on developing myself and my weaknesses into strengths. As my confidence and ambition grows, my willingness to take risks grows right along with them. Though I have farther to go and more to learn, I know I am ready and fully capable to be an entrepreneur.

Section II, Analysis of the Business Situation

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Trade Area Analysis

Geographical Analysis

An analysis of the trade area is of great importance, because it can smooth out crinkles in a person’s plan for her business, i.e. an ice cream shop would be far more successful in Florida than in Wyoming or Washington where it is cold and wet all the time. Central Point will be a perfect fit for a dress shop, because of its location, climate, and topography. Each is crucial to the success of a business, and the impact and the benefits of Central Point will be explained.

Central Point, Oregon is placed so that the distribution of products is easy. Oregon is not landlocked, which means shipping can be done across the water, and by plane or helicopter, whichever is best and more affordable. Coos Bay is the nearest port to Central Point and is only 162 miles away,

traveling on I-5. This will provide easy access to shipping, and there is an airport in town. Being very close to and connected with I-5 will be a definite benefit, as well as being so close to transport options.

The climate of Oregon is stranger than strange, yet that’s not a bad thing. A dress shop with tailoring’s success wouldn’t depend much on climate. However the mild, warm weather of Central Point and its four distinct seasons make it a great place to live and visit, especially during the spring and summer. The average temperatures during the winter months are high 30s, low 40s, and build up to an average of 70˚F during the summer and fall months. The annual precipitate in inches is 18.9, with most rainfall happening from November to January. There is hardly any snowfall worthy of note, just a 7.3 in annual average, with most snowfall accumulating during December and January.

Central Point, Oregon is located in the Rogue Valley, and is surrounded by the Cascade Mountains and the Siskiyou Mountains.I5 is the main highway but during the winter months may be blocked in the Siskiyou’s, which would hurt distribution somewhat. Roads can be very hazardous, which is why distribution would also be shipped overseas and through airlines. The great climate and beautiful landscape really make it a great place to live and go walking in, especially down Pine Street to look at all the local stores, like mine.

The whole state of Oregon is so green and provides so many beautiful landscapes and great hiking places that it can be just a great place to live in. The benefits of situating my business in Central Point, Oregon, largely outweigh the disadvantages, and I think because of this city’s location, climate, and topography, my business will thrive.

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The location I-5 provides advantages for import or export of supplies. Being in a coastal location provides shipping advantages to and from foreign countries. Central Point is not a huge tourist attraction, but the Table Rock is, which will affect the selling of my

product. The climate changes provide advantages to the product you are selling? The relative location of the Siskiyou Mountains provides potential winter transportation issues. The Rogue River may affect my products sales directly or indirectly through tourist traffic during the

summer. The seasons change the type of product (i.e. summer dresses in comparison with long and heavy

formal dresses). Geographical formations like Table Rock may increase tourist visits and business. Seasonal weather variations do not affect the sales of my products

Competitive Data

David’s Bridal

Products carried Wedding

Prices $100-1,700

Location 1251 E McAndrews Rd, Medford, OR 97504

Promotion Sweepstakes, online, sales

Debs

Products carried Formal/occasion dresses, junior clothes, shoes

Prices $50-75 for short, up to $170 for long dresses

Location Rogue Valley Mall, downstairs

Promotion Sales,

Marketing Segment Analysis

Market Segment Analysis

You know that moment of realization, when it finally dawns on you, and you finally get the big picture? After that realization comes, usually, so does a change in the way you are living, or the way you do something. This doesn’t only happen on Sunday nights at 10:00 p.m. when you realize you had

Sue Quackenbush Custom Sewing

Products carried Custom Sewing and alterations

Prices

Location 1162 Marilee Street, Central Point, OR

Promotion Word of mouth, business cards at fabric stores, newspaper

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homework, or an answer comes to you like a bolt of lightning right, only right after the test was collected. In business, when you realize and can clearly define your target market, because after you know, you basically make the rest of your marketing decisions, i.e., product, price, place, and promotion, based off of your target market and its psycho- and demographics.

The demographics, or the measurable statistics, of my target market for Every Occasion are based on age, sex, race, income level, and education levels. The market I’m going to target will be females, from ages 21- 40, and of a Caucasian race. There will be customers outside of these margins, but the main source of income will be from women of these categories. Because Every Occasion is a formal wear dress shop, the customers are targeted must have a large enough income to purchase a dress, and a reason to buy and wear it. However, the alterations open the target market, and will probably bring in bigger revenue. That is why the income level and education levels are at lower levels, because they are the averages of all the people in Central Point.

Every Occasion Formal Wear

Demographics Psychographics (VALS)

Age: 21-40 Innovators

Innovators are successful, sophisticated, take-charge people with high self-esteem. Because they

have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very

active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. Image is important to Innovators, not as evidence of status or power but as an expression

of their taste, independence, and personality. Innovators are among the established and

emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer

things in life.

Sex: Female

Race: Caucasian

Income Level: $30,000 to $60,000

Education: Some College (minimum 1 year)

There are many people that will fit into my target market in the Jackson County. There are about

3,250 women in the age category I chose for my demographics, out of the 8,910 women in the Jackson County, according to American Fact Finder. Also according to American Fact Finder, the most common

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education level achieved among the people here in the Valley is some college, with only a high school diploma coming in as a close second. Hardly anybody had and associates degree, only 895, whereas there were almost 2,000 people with a bachelor’s degree or higher. The majority of my target market, income level wise, is in the 25,000 to 35,000 dollar range, and more people with more than that (898) compared with people with less.

Every Occasion Target Market Demographics

Category Demographics Jackson County Data

Age 20 – 24 943 25 - 29 1,117 30 - 34 1,175

Gender Female 8,910

Education High School Diploma 3,227 Associate Degree 895

Some College 3,371 Bachelor's Degree or Higher 1,977

Income Level $14,000 - $19,000 647

$25, 000 - $34,999 1,065

$35,000 - $49, 000 898

There are eight VALS psychographic profiles listed: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors. I believe my target market to be mostly Innovators, because take charge people usually chase their dreams, get what they want, and are successful, which means they might have fancy parties to attend where they’ll need formal attire. However, the other half of my business opens my target market up to several others, like Achievers. Image is important to Achievers; they favor established, prestige products and services that demonstrate success to their peers. Because of their busy lives, they are often interested in a variety of time-saving devices. Well, being able to buy a dress and have it tailored is time saving, and will give them a good image because they have beautiful clothes and ones that fit well and customized. It also includes the love of social and trendy things of Strivers and Experiencers, because they want to look good, be social, and show success through clothes.

Based off of my research, information and target market shown above, I have decided to really promote my business to women aged 20-40 who have average income and education levels, see clothes as indicators of social success, and those who are the innovators always trying to be better. To do so, the store will be decorated with a vintage, appealing, colorful theme that is really popular right now, having sales, and giving business cards or ads out to fabric stores to hand out. If any success is to be had in business, a certain amount of risk is involved, as it is in simple things like crossing the street; there is risk in everything, but in something as important as a business plan for your first business, you want to

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be as sure of success as possible. There is a way to minimize it greatly by research and work: through determining the psychographics and demographics of your target market. After you’ve got those, you’re ready and fully prepared to make decisions that will shape your business to be a successful one.

Analysis of Location

Location

BUSINESS LOCATION

1. 313 East Pine Street, Central Point OR, on the corner of Pine and 3rd street

2. Located in the middle of town

3. Flower shop down the street, event planning in adjoining building space

4. JARVIS FAMILY LIMITED PTNRS

5. EC = Employment Commercial This is

COMPETITION

1. 1.3 mi. to Sue Quackenbush Custom Sewing, 4 mi. to Angela’s Bridal

2. Suburbs, and off of I-5

Floor Plan

The building is a two story brick store with two separate storefront doors. The store’s dimensions are 36 ft x 45 ft, with a total square footage 3240 ft². The bathroom square footage is 35 ft², and is in the back of the first floor. The storefront, or the first floor is open and has a grand staicase in the center back. The 2nd floor is where the offices are, my office and my partner’s office, Sarah Howell.

Downstairs – 1st floor

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Upstairs – 2nd Floor

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Section III, Planned Operation of Proposed Business

Proposed Organization

Type of Ownership

Sole Proprietorship Partnership Corporation Limited Liability

Pros Cons Pros Cons Pros Cons Pros Cons

Easy to start

You assume liability

Two heads are better than one

Life is limited

Stockholders have limited

liability

Taxed twice Profits and losses can be passed to owners

without tax

You’re the boss

Investment capital you can raise is

limited

Easy startup

Must share profits

Can raise the most

investment capital

Must pay capital

stock tax

Owners are shielded

from personal liability

Owner gets all profits

The life of the

business is dependent

on the owner

More investment

capital is available

May argue and disagree

Unlimited life

Starting is expensive

Takes the pros of

corporation and

partnership forms

Can discontinue at will

Retaining high-caliber employees is difficult.

Pay personal

income tax

Unlimited liability

Ownership is easily

transferable

Closely regulated

by government

Income is taxed as personal income

High caliber

employees can be partner

Utilize specialists

My business, Every Occasion, will be a partnership with my colleague Sarah Howell. I believe this form of business will be a good fit for our businesses, because we share the profits, and we will share a building. Because our services and products cater to different target markets, but are still connected, I think i is a good thing we share so much. Having both of us in one building makes it more convenient for people, which means we both get about equal business. But since we share the profits, we are getting much more revenue than we would on our own.

Management

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A business without management is like a boat without a rudder; in other words, it can’t go anywhere. The presence of good management leads to a strong and efficient team, but only If the management is strong and efficient as well. The importance is paramount, and if you have a management style that is suited to your business, as well as an organized plan of action and a salary schedule, your business has a greater chance of success and productivity.

Being an effective manager means knowing when to use the right management style. (“Three Effective Management Styles”) The right management style for my business is team management, because first and foremost, I am running the store with a partner, and to run a orderly and successful store between the two of us, we need to work together. Secondly, according to the article “Three Effective Management Style,” if you want to expedite a project and optimize a process for completing that project, managing by teamwork is the way to go. When you motivate people to pool their knowledge, the results may exceed your expectations. Often, teams can tackle problems more quickly than what you can accomplish on your own. I believe that is the best way our employees and I will work together. However, I also understand the need for being direct, so when team management doesn’t fit the bill, I will fall back to the direct management, where it is very clear what needs to be done, and how it should be. It will answer five questions: what, where, how, why, and when. The team style will be used to make decisions that affect the whole store, and the directing style will be used most with the daily duties and responsibilities.

The main responsibilities are mostly store maintenance responsibilities. My main task will be managing and organizing employees in the storefront and upstairs in the alterations. I will also be a consultant for customers, especially for brides and for customers wanting custom sewing. The employees working upstairs will be responsible for doing the alterations, taking measurements, the whole process of doing alterations with customers. The employees downstairs will be working the cashier, restocking, and helping customers with dressing rooms, ordering dresses, and checkout.

The following table is how much each employee will have earned at the end of the year, depending on their labor time. There may be salary changes for some employees, but within the first year or so stability in our positions will be very important to have. Salary schedules benefit employers and employees, because for employers, there is better communication with employees and a reduced employee turnover rate. For the employees, they know the salary expectations and can have the ability to evaluate a job's pay over time.

Proposed Product or Service

Proposed Product and/or Service

“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” William Pollard.

Innovation and change go hand in hand, one without the other, we stop moving. The relationship between the two is infinite—when change occurs, there is innovation that adapts our lifestyles to that change. When innovation comes first, we change to stay with the times. An example of this is every single new iPhone that comes out. There is constant competition between phone companies that pressures them into updating newest models to keep up with competing companies, which means that

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the customers change their ways to adapt to new and better technology. Innovation is happening all over the world, and in our own Central Point in the form of a formal wear store that also offers alterations and custom sewing that I bring to you today. How? Every Occasion is valuable addition to our community, as is evident by the product and services it will provide, the potential suppliers, and inventory policies.

What a business intends to make or sell is called the product mix, and Every Occasion’s product mix is made up of owned goods services and shopping goods. The owned goods services are the alterations and custom sewing services available, and the shopping goods are the formal event wear sold on the racks, or prom dresses, etc. There will be clothing lines, and the product items are going to be quality dresses in all sizes and colors. There will be one main supplier, but the product width will have different products because there will be wedding wear and prom wear. The depth within the width will be ginormous, because this is wedding dresses and prom dresses we’re talking about, and it is especially important for brides to have a wide range of dresses to look for the One.

Where is all this going to come from, you ask? Let’s go into detail about my suppliers. The main suppliers will be Shanghai Weijun Group Wedding Dresses Manufactory, Outer Inner and Richforth Limited. They will manufacture the prom/ formal event wear, and the wedding dresses, and bridesmaids. I’ll need a lot of hangers; those will come from Butler Hangers. For the other half of my business, Wawak Sewing Supplies Inc. They carry various supplies in bulk: buttons and fasteners, machine parts and accessories, marking and measuring, pressing and spotting, scissors/cutting, sewing notions, signs and packaging, thread, and zippers. There will be more suppliers, but these are the expectant main suppliers.

The inventory policies I will use are LIFO and perpetual inventory; LIFO means Last In First Out, and I plan to use it because it is tax advantageous and because it always matches expense and revenues. LIFO is better suited to retail or dress stores because you will sell with the trends, with the latest arrivals on the floor first. Perpetual inventory is an inventory system that uses transactions to adjust on-hand balances to coincide with physical activities that are occurring. It covers continuous intake of stock and up-to-date financial records. It will help keep constant track of incoming and outgoing materials, work-in-progress and the day-to-day sales of goods.

The prior information only goes to prove that because of the product mix, suppliers, and inventory policy my business, Every Occasion, is prepared to be opened. The innovation that has been put into use in the creation of my offered goods is changing with times, and is changing to better serve the purposes of my target market and customers.

Suppliers

Every Occasion - An Album Emporium Supplier List

Company Name

Address Phone Number Web Address Rating

Wawak 1059 Powers Road Conklin, NY 13748

1-800-654-2235

http://www.wawak.com/ 5 stars

Product Offerings

Offers products like thread, machines, sewing notions and accessories, every sewing supply needed in bulk. They have fast service and shipping and offer special sales all the time.

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Every Occasion - An Album Emporium Supplier List

Company Name

Address Phone Number Web Address Rating

Butler Hangers

4098 Cerrito Lane, Santa Barbara, CA 93110

1-805-963-9442

www.butlerhangers.com/# 4 stars

Product Offerings

Classily shaped wholesale hangers available in metal, wood or plastic. All can be customized in width height and the notches on the top. Prices are not published, you must sign up for a free quote. They also offer slippers, shoe bags, hair dryers,a dn kimono robes.

Every Occasion - An Album Emporium Supplier List

Company Name

Address Phone Number

Web Address Rating

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Equipment

Equipment list Number of Item Price Per Unit Price Mannequins 3 $138.00 $414.00

Hangers 5 $55.00 $275.00

Wall hangers 25 $12.00 $300.00

Packing/ bagging supplies 100 $28.23 $2,823.00

cash register 3 $106.00 $318.00

dressing rooms curtain rack 4 $25.00 $100.00

Sewing machine 4 $185.00 $740.00

Scissors 5 $41.45 $207.25

cutting mat 3 $54.00 $162.00

check out desk/area 1 $1,559.07 $1,559.07

couch for dressing rooms 1 $649.00 $649.00

ironing board 2 $22.97 $45.94

iron 2 $49.09 $98.18

New door 1 $540.00 $540.00

Glass for windows 15 $164.67 $2,470.05

TOTAL $10,701.49

Proposed Marketing Strategies

Pricing Policies

Shanghai Weijun Group Wedding Dresses Manufactory

Ste1401-1405, 2123 Pudong Ave.,Shanghai Shanghai China (mainland) 200135

+86 (21) 6853

0544 / +86 (21) 6853 8130

http://weijundresses.manufacturer.globalsources.com/si/6008830721315/Homepage.htm?source=USP_TP&pkg=P6

4 stars

Product Offerings

Offers varying numbers of 11 different dress categories. They welcome your custom ideas, have English speaking customer service representatives, and have a 2,000 square foot showroom in New York.

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Competition in the retail world makes pricing very important, because any little thing that you have over another company could be a deciding factor for a customer to come to your store. As a young sprout of a business, getting every customer you can is essential. The pricing of your products is compared to prices of a competing business, and they aren’t right, you won’t get the business. When deciding on how much you should price your product for, it should include the business idea, competition, location of your business, cost and availability of supplies.

I will be using the Markup Pricing for the dresses and other items on the racks and shelves; they will have set prices, and the Cost Plus pricing for the service I sell. Cost plus fits the alterations/custom sewing because it adds the materials and labor in hours, and that would be thread, fabric, etc. plus how much time it took to complete. There will still be set prices for easy fixes, like $5 for hemming pants, or $20 for fixing/taking in a zipper. My other products are dresses and formal wear, and they can easily have set prices.

I think the best pricing technique for my business is the odd-even technique, because I don’t want my products to be too expensive, I want them to be affordable, because most dress stores around here are expensive, or they are cheap, but also cheaply made. I’m looking for quality and affordable. And my target market is the middle class, who don’t have a lot of money, but whom still go to fancy events and are willing to pay a little extra for a fancy dress. Since Every Occasion sells for every event, I will use the promotional pricing around the time the biggest events happen. For example, during the summer months, it’s a really popular time for weddings, or the month when all the proms are held.

My strategy for new product introduction will be to do price skimming, because generally, there is a bigger budget than normal for fancy occasions, especially weddings, proms, quinceañeras, etc., therefore allowing a more extravagant purchase, especially if it’s a hot new style. And no one would want to buy something old for more if when it first came out it was really cheap.

Using the skimming pricing technique for new products is kind of in the prestige technique, so the products might be seen as high quality and classy, and I see no reason a community wouldn’t want or accept a product like that. Because both services at my store are affordable for the average person, there will be more people who want to come here, who either want alterations/custom sewing, or a dress pre-made. The pricing will help me maintain my market share because I can pull from companies that price things more expensively and only sell/market half of my products/services.

New products may be price skimmed, but not everything is going to be very expensive, and profits can benefit from that. My products will attract my target market, but also people who are looking for more, or less, than what my target market wants can find something here too.

Promotional Strategies

Say one day in the future, some genius invents an easy button. Pretty incredible, right?? Who wouldn’t want one? That guy could go from your regular, run of the mill genius to super billionaire genius in two days. But of course that can’t happen if no one knows about it, and the way to let people know is through what is called the promotional mix. The next section will describe the marketing mix Every Occasion will utilize: Order getting, publicity, and sales promotions.

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In the clothing and retail business, it’s all order getting, or order taking. Order getters attempt to increase their sales by selling to new customers or by convincing current customers to buy more of a company’s products. They develop new business and are therefore paid quite well. Their job is to convince the customer to purchase a fancy outfit, so they need to have persuasive abilities. Order takers are involved in the routine completion of a sale. They complete the sales transaction and mainly deal with the same or similar customers. A sales clerk in a supermarket is an order taker. They are paid minimum wage and do not have to persuade anyone to buy anything. It is the former that is best to have as an employee in retail, because an order getter will sell things personally, which means that they can convince a buyer easier because they can tailor the product to be what they need better than an ad on TV can. Order getting is part of the promotional mix, in personal selling, because they deal directly with people, and make the product they are trying to sell personal.

Non personal promotional activities have their benefits as well, especially publicity. The main reason its a commonly used promotional activity is because it’s free. It can enable you to reach your entire marketplace with a positive story that promotes you and your small business, in your own community, across the country or around the world. It can get you coverage in newspapers, magazines, radio and TV, trade publications, newsletters, blogs, or on the Internet. It creates the demand that attracts the impulse or ‘panic’ buy of a customer, partly because of popular demand, and because they feel they need to get it before its gone. Using publicity, you can also appeal to the customers who are looking for a good reputation, if you can build the right image. A customer wouldn’t want to buy from a store they know uses child labor, but rather from a store that holds charity balls or gives to their community.

Before you can be known for your reputation, you have to be known! Making a good first impression and introducing your business is key, just as publicity and order getting is. You have to get your business out there, and that’s done with sales promotions. Having eye-catching displays that attract your target market, or having sales that are too good to pass up are just some examples. Business can promote their goods by creating contests, sweepstakes, and rebates. Coupons, frequent shopper cards, and free gifts call customers back after initial purchases with 10% off’s, and it gives them benefits for shopping at your store; it is like thanking them and asking them back at the same time.

Playing to your target market of customers is a very important thing to remember when advertising, whether it is personal, like order getting, or non-personal, like publicity or sales promotion. The saying, “Your worst customer is your friend; you best customer is your partner,” is important here, because If you use these advertising techniques and activities to your advantage, you can sell to all your customers, the worst and the best.

Section IV, Financing

Projected Income and Expenses

Start Up Costs

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Start Up Costs - Type of Business:

Retail

Deposits (rent, utilities, phone) $750 to $1,500

Furniture and Equipment 22,000 to 25,000

Machinery Equipment 8,000 to 12,000

Transportation Equipment 12,000 to 16,000

Building Improvements - this is to fix up a place

10,000 - 42,500

Professional Fees - Lawyers, etc. $500 to $1,000

Advertising $500 to $1,500 $200 to $400 an hour for attorney

Working Capital - this is money you need to start

3,800 - 93,700

Inventory - products you have 35,000 -157,000

Totals 67,000 - 350,600

Sales Forecast

Company % of

Market Share

% of Target Market

10% Estimated

Sales Estimated Earnings

Every Occasion 12.00% 2112 211 $100,000.00 $50,000.00

Sue Quackenbush 15.00% 2640 264 $1,333.00 $666.50

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Custom Sewing

Angela's Bridal 12.00% 2112 211 $11,000.00 $5,500.00

Deb 16.00% 2816 282 $500,000.00 $250,000.00

David's Bridal 15.00% 2640 264 $10,000.00 $5,000.00

Macy's 30.00% 5280 528 $2,000,000,000.00

$1,000,000,000.00

Estimated Customer Spending Per Month

$160

Total Target Population

17,600

Income Statement

MONTHLY INCOME STATEMENT

REVENUES XXXXXXXXXXXXXXX XXXXXXXXXXXXXX

Sales receipts $8,333.33 XXXXXXXXXXXXX

Less - Cost of goods sold

$848.33 XXXXXXXXXXXXX

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--Total revenues XXXXXXXXXXXXXXX $7,485.00

EXPENSES

Employee salaries $2,953.32

Commissions $0.00

Rent $3,356.06

Utilities (from other SG and A expense -

See Detail) $1,045.23

Materials

Office Expenses $405.95

Advertising $307.16

Professional services

$349.61

Insurance $3,297.48

Home Office Expense

$300.08

Depreciation $4,683.64

Taxes $1,464.07

Maintenance $6,521.35

Interest $888.93

Miscellaneous $853.82

Other expenses 0

--Total expenses

$26,426.70

Net profit (loss)

$18,941.70

Building Costs

Building Costs

Sq. Feet Cost

Facilities 3240 ft $121.00

Kitchen and Bath 35 ft $250.00

Total 3275 ft $400,790.00

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Cash for Down Payment $80,158.00

Term of Loan (Years) 20

Annual Interest Rate % - 3.864 3.86%

Loan Amount $320,632.00

Monthly Payment $1,920.07

Working

Capital

Equipment

Total cash needed

$18,942 $42,000.00

20% down payment

$3,788 $8,400.00

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Loans

Proposed Plan to Meet Capital Needs

Financing

The source of funding for my business will come from several sources: from money saved between my partner and I, and my personal savings. Family sources are willing to help fund my business venture as well. There are potential investors in the making, the bank for one, and at business conventions I hope to network and find new contacts willing to help as well.

I will pay the down payment first, and then as the store gets more popular, or at the point where my sales can support the business and I have extra left over, every little bit will go towards paying off the loans. I took out a working capital loan and an equipment loan to have enough money to pay for it all, because without it I couldn’t even start my business. They are for 6 and 8 years, and I know what the monthly payments are for and I am prepared to budget my revenue so that I can keep up and hopefully pay them off as soon as I can. Monthly payments are for $1,247.44 and $2,765.99. I expect, or hope to pay them off before the six and eight years, but I also am assuming everything will go well.

Conclusion

I invite you to take this exciting opportunity to get in on the ground floor of a company with unlimited growth potential. Right now, there is an opportunity to act, to fund Every Occasion. The target market area has nothing like it; it has never seen anything like it, and it never will if we don’t act now. There are always risks in business, always choices to make and following consequences. This business plan outlines where those risks lie, and how to lessen the risk and increase the success, all in detail. By following this plan of action, Every Occasion will meet its financial goals and prove to be worth your consideration and generous help.

3% loan fees

$455 $1,008.00

Total out of pocket cash needed

$4,243 $9,408.00

Loan amount

$14,699 $32,592.00

Prime rate 3.25% 3.25%

Additional interest

0.75% 0.75%

Total interest rate

4.00% 4.00%

Length of loan in years

6 8

Monthly payment

$1,247.44 $2,765.99

Interest on 12th payment

$320.42 $710.47

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Works Cited

Ayers, Laurie. “Understanding your Target Markets”. MLMWoman Newsletter Blog.14 March 2009. 13 May 2013.

http://regentpress.typepad.com/mlmwoman/2009/03/understanding-target-markets.html

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Dickson, Carl. “Questions to Answer in your Executive Summary”. Captureplanning.com. 23 May 2013.

http://www.captureplanning.com/articles/13573.cfm

“Jackson County Oregon”. State & County QuickFacts. United Census Bureau. 16 May 2013.

http://quickfacts.census.gov/qfd/states/41/41029.html

“Job Details for Retail Store Manager”. Salary.com. Web. 17 May 2013.

http://www.salary.com/

“Medford Oregon”. City-data.com. Onboard Infomatics. 21 May 2013.

http://www.city-data.com/city/Medford-Oregon.html

“Paragraph and Topic Sentences”. IndianaUniversityBloomington.com. Writing Tutorial Services, Indiana University, Bloomington, IN. 27 April 2004. 15 May 2013.

http://www.indiana.edu/~wts/pamphlets/paragraphs.shtml

“Three Effective Management Styles”. AllBusiness. Web. 20 May 2013.

http://www.allbusiness.com/human-resources/workforce-management/11438-1.html

travelmedford.org. Travel Southern Oregon. 14 May 2013.

http://travelmedford.org/

Ward, Susan. “Executive Summary Example”. About.com. 22 May 2013.

http://sbinfocanada.about.com/od/businessplans/a/execsumexample.htm

“Intersection Volume Files”. Jackson County Road. 17 May 2013.

http://www.co.jackson.or.us/Page.asp?NavID=890

Appendix

Selection Letter

Every Occasion 313 East Pine Street Central Point, OR, 97502 541-665-2199 March 22, 2013

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Mr. Simon Franco SBA Loan Officer Bank of America 845 N. Highland Street Medford, OR 97501 Dear Mr. Franco: With great excitement, I come to you in hopes of procuring financial backing. Every Occasion will be a dress boutique that offers tailoring with alterations and custom sewing available for customers who need their clothing tailored or who want an original handmade creation. We will offer in-store bridal samples and dresses for every occasion, including quinceañeras, prom, holidays, and any other special occasions. We will offer a wide variety of quality clothing and customer care, and be strategically placed in the middle of town to attract attention. Every Occasion gives women high quality clothing and tailoring, making it a smart and easy choice to make when in need of a gown. The Rogue Valley has never had a store like mine, where customers can buy any style of dress or formal wear and have it tailored all in one visit. The competition only supplies one or the other; therefore, Every Occasion will have a larger target market to sell to. The location situates it right in the middle of Pine Street, which means it will be seen every day by anybody who is driving or walking down Pine Street in Central Point. Every Occasion is close, locally owned, and for those who don’t like the flurried shopping in a crowded mall, Every Occasion is a perfect option for them. It is evident that my business is going to be a much needed addition to Pine Street and Central Point. Thank you so much for your time and consideration, and for reading my business proposal. I know that Every Occasion can succeed and fill the need the Rogue Valley has for my business. I look forward to further discussing my ideas with you, and would like to schedule a time to meet with you. You can contact me at (541) 499-5388. Sincerely, Anne Quackenbush

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Every Occasion

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Every Occasion

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Business Card

Every Occasion Formal Wear