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Garden Furniture Maker Business Plan

3 March 2023 Businnes Plan


Garden Furniture Maker Business Plan


Garden Crafts Inc. has developed a new product, the Sit N’ Caddy, which it intends to produce and market. Garden Crafts has developed a vision statement and strategy to use quality, value and a sense of conscience in its development mix.

Garden Crafts will be incorporated in the state of Georgia as a Chapter S corporation, and will consist of two stockholders: Rob Kane and Keith Jones. The administration offices will house the operational facilities. Starting costs have been calculated with the bulk being donated by Mr. John Houseman who was the owner of Kustom Kabinets. He has also agreed to keep the equipment cost in a private note.

The Sit N&#8217, Caddy, is a combination stool/tool tray made from premium grade hardwood. Market research revealed that there were many similar products, but none that were wood-based and customizable to the extent of the Sit N&#8217’ Caddy.

Analysis of several markets points out Home Depot is the largest national retailer in home and garden supplies. This market has seen steady growth over the past three year, with double-digit increases. Garden Crafts can expect a profitable future as the average homeowner spends $532 per annum on gardening products.

Home Depot was chosen as our first target for sales. Our strategy will focus on the Merchant Home Depot uses to be their regional buyer. Our sales price will be determined by Home Depot’s merchant pricing system. We have determined that $20 is the lowest price we are willing to accept from Home Depot based on our costs. With a single product and a standard price, the three-year forecast shows a direct result of the projected 11% growth rate.

Labor would cost $5 per unit at $10. It was decided that future employees would prefer a piece-rate rate rather than an hourly wage. The corporation will also pay part of its net profits as dividends to the founders. As a form retained earnings, the remainder of profits will be invested in an aggressive-growth mutual funds.

Our projection of a 11% annual growth rate has resulted in a rise in gross sales over the three-year period. The trend in operating expenses is also increasing, but not in line with it. This is due to the slight deviation in expenses that were paid in advance during the first year and additional expenses that did not occur after the fifteenth month. With Home Depot selling the entire production run for the first time, the profits for that year are healthy. However, there will be modest growth in sales the second and subsequent years. This business plan has a section called Highlights.

Garden Crafts can provide healthy returns for a small investment. This success is due to the skills and knowledge of the founders, the commitment of Home Depot, uniqueness in design, and the continuous growth of the home and garden markets.

1.1 Objectives

Objectives for Garden Crafts:

  1. A workshop is designed and built that can produce 10,000 units per year of the Sit N&#8217’ Caddy.
  2. Make a brochure and spec sheet for the Sit N&#8217’ Caddy.
  3. Decrease production costs by increasing design efficiency.

1.2 Mission

Garden Crafts will be committed to quality in both its production and shipping. We are focusing on one product: the Sit N&#8217’ Caddy, which is a combination gardening stool/garden caddy. We will ensure safe working conditions for all employees, placing this as a priority above our profits.

We intend to use diverse marketing methods to reach a large segment of the gardening population to offer what we feel is a valuable asset to any gardener’s shed. Garden Crafts will also keep an open mind with regards to new methods of production, changes to our product line, and custom orders from interested clients.

We will never lose sight of our customers, but our profits will be kept in mind.

1.3 Keys to Success

Our keys to success will be:

  1. You can’t sell your products if you aren&#8217t visible to gardening enthusiasts.
  2. Efficiency in production is key to our success.
  3. Flexibility. This product was created for gardeners.
  4. We will think outside the box.

We must be open to new opportunities that present themselves.

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