BOOK KLUB BUSINESS PLAN 2012-2015
BOOK KLUB THE LIBRARY
We provide high quality print service at low cost, and we sell various printed works at a comission and sale or return policy basis.
BASED UPON NATWEST ONLINE BUSINESS BANKING BUSINESS PLANS, 2012 NATWESTPLANNER.CO.UK
Our target audience is creative, students, and design agencies. By having close conenctions to the Universities and local design agencies, we plan to promote the shop as having some of the best YEAR 1 new design work in the North Total profit for 251 business and Leeds. days= £158,694.75 plus zine sales and events =
OF PRINTED DESIGN
BUSINESS PLAN 1/6
WhAT WE SELL
WhO WE SELL TO
WHO WE ARE FINANCIAL Who we are SUMMARY We are Book Klub, a local DESCRIPTION printed design based shop which has it’s own printing facility. We specialise in print and selling design work from local and up and coming design-
We have calculated the potential footfall by the total student populations of the three major Universities within LeedsLeeds University, Leeds Metropolitan, and Leeds College of Art at a total of 6,3225.
various products ranging from With a projected estimate of posters, t-shirts, books 10% of this amount as visitors to our retail outlet per day and zines.
BOOK KLUB MATT CHATFIELD/ SARAH ROBERTS/ CHRIS VAN NIEKERK/ SOPHIE WLSON
(considering other residents of Leeds/Universities, Colleges, Schools, tourists, etc), with 25% as buying customers.And a median sale (calculated by total stock units/total number of units= £292/30) of approximately £10.00, we have projected daily retail income to be £3,161.25 of which we take 20% commission (lowest rate), therefore, the company goes on to make £632.25 per day from retail income.
£160, 295.75 (profit) minus £62, 908.70 (living wages) and £46, 016.00 (overheads) = £108, 924.70 (before taxes) = £51, 371.05 (total profit before taxes) = £49, 882.40 (tax total) (VAT 20% income) + (NIC 12% living wage) + (CORP TAX 20% profit) = £1, 488.65 PROFT MADE YEAR 1.
BOOK KLUB THE LIBRARY OF PRINTED DESIGN
= £65, 564.44 (tax total) (VAT 20% income) + (NIC 12% living wage) + (CORP TAX 20% profit) = £32, 614.16 profit before payments. Minus personal payments made in start up (first 6 months) total of £4, 989.77 minus repayment minus annual repayment of £25,000 Barclays loan with 8.9% APR at £2,722.50= £24,901.89 (-£15,000 for Chris and Sophie- Creative Director & PR & Marketing to work full time at the company). = £9,901.89 PROFIT MADE YEAR 2.
BUSINESS PLAN 2/6
FINANCIAL SUMMARY DESCRIPTION CONTINUED... YEAR 2 Total profit= £192, 354.90 (profit) minus £94, 179.60 (living wages and overhead costs)= £98,179 (profit before taxes)
YEAR 3 Total profit= £250, 825.88 (20% increase from networking and advertising per annum) minus £94, 175.30 living wage and overheads (combined)= £136,650.58 (profit before tax)= £86, 077.04 (tax total) (VAT 20% income) + (NIC 12% living wage) + (CORP TAX 20% profit) = £50, 573.54 minus loan repayments of £2,722.50 and minus £15,000 so all employees work full time = £32, 851. 04 PROFIT YEAR 3.
BOOK KLUB MATT CHATFIELD/ SARAH ROBERTS/ CHRIS VAN NIEKERK/ SOPHIE WLSON
COMPANY OVERVIEW Book Klub is a company which sells printed designs from local designers to local people. As a company, we sell printed work from other designers and our in house prints at a rate of 20% commission. Out aim is to promote printed work from young local designers with strong connections to Leeds University, Leeds Metropolitan and Leeds College of Art. Our retail space is located on Blenheim Terrace, which is a short walking distance from each of the Universities. The company is shared by four associates, Marketing Director, Financial Director, Creative Director, and Retail Manager.
MANAGEMENT TEAM The team is split into four main roles, as shown above. Alongside these roles, each member of the team also works as a retail assistant in the shop- reducing costs.
BOOK KLUB THE LIBRARY OF PRINTED DESIGN
BUSINESS PLAN 3/6
COMPANY OVERVIEW CONTINUED...
printed products including ; t-shirt, tote bags, posters, and zines.
The company itself does not have access to it’s own printing facilities, unlike Book Klub, and is, therefore, dependant on outside sourcing for printingpotentially increasing costs as a result.
Our service allows designers the opportunity to send in their designs to a shop which will take care of the printing and selling of their products without them having to worry, and spend crucial time in their working schedules. A lot of designers do not have PRINT CLUB LONDON the adequate facilities to screen print their designs (we provide both diigtal and Print Club London stocks a screen print faciltiies) or to sell their wide variety of creative, wellwork locally. finished printed design, suited to a more adult audiende in it’s humour and content. The company is based in London, and would, SWOT ANALYSIS therefore, have higher rental bills than our retail outlet in Leeds- and should not affect VILLAGE (ZINES) our market share too greatly considering the geographical Village specialises in selling independent art books and zines distance within the country.
COMPETITORS
from designers. They would have the same type of creative MARKET NEEDS audience as Book Klub, but they (PEST ANALYSIS) do not sell a wide variety of printed products- specialising only Book Klub provides designers in zines and books. PRODUCTS AND an outlet in which they can SERVICES produce their own printed SALFORD ZINE LIBRARY work at a retail The service we offer is for commissioned price of 20%, local designers to send in their or, with the additional print Salford Zine Library publishes a printed works to our shops, facility, 30%- offering a wide range of printed products, then to be sold at a 20% practical service as well as based in the North, and sharing commision, also operating a time-management solution under a sale or return policy. the same range of customers and to hard working designers. target audience as Book Klub. The shop sells a range of
BOOK KLUB MATT CHATFIELD/ SARAH ROBERTS/ CHRIS VAN NIEKERK/ SOPHIE WLSON
BOOK OVERVIEW KLUB THE LIBRARY
and turns over both monthly and annually dependent on the influx of new students, new student designers, and outside networking opportunities with new designer clients.
OVERVIEW
OF PRINTED DESIGN
BUSINESS PLAN 4/6
COMPETITORS CONTINUED... MARKET NEEDS (PEST ANALYSIS) CONTINUED... Leeds is a culturally rich city, with the 4th largest industry being print. The shop allows customers a place to come in and browse through contemporary print and design work which changes
Our company is aimed at helping young designers out with printing and selling their designs to various customers and agencies to help them start up in the working design world. We are also in a centralised location between the Universities, in which we have no direct competitors surrounding us (but well suited ‘Blackwells’ educational bookshop and various Cafes). We have our own printing facilities so we are not dependant on working with an outside printer(s), which allows us to print in small unit quantities and at low cost if required.
POSITIONING A printed design company who help to print and sell work for young local designers for the creative community of Leeds and around the United Kingdom through exhibitions and events.
BOOK KLUB MATT CHATFIELD/ SARAH ROBERTS/ CHRIS VAN NIEKERK/ SOPHIE WLSON
PRICING If we sell designers/artists work in store, we charge 20% commission on all units we sell. We have screen printing and digital print facilities to print designer’s work and sell in store charged at an increased 30% comission (30% total). For example, when we sell a print from Drew Millward sold at £50, Drew would recieve £40, but at 30% print comission, he would recieve £35 of the sale from the original £50 RRP sale. Therefore, we would make £10 selling the print, and £15 for printing and selling the design. For the first three years of the business we do not intend to offer discounts to regular clients/customers due to a modest profit margin. However, after this time, it is a strong consideration, particularly when working with our most profitable designers. Our pricing is similar to local competitors and matches the RRP of the original designer’s stock prices.
BOOK KLUB THE LIBRARY OF PRINTED DESIGN
BUSINESS PLAN 5/6
OVERVIEW CONTINUED... PROMOTION Our customer group are interested in printed design, so we propose to produce a range of creative hand outs and printed media that will reflect the creativity and diversity of our company, at a low cost. We aim to promote the company around the neighbouring Universitie’s
Unions to give a series of talks to the relevant art and design departments. We will put up a series of posters that we propose to sell around the city to entice customers as well as promoting the designer’s work. Along with these printed outcomes, we will actively make use of social networking sites such as Facebook and Twitter for a free communication device to a national and global audiene.
SALES FORECAST Based on the total number of students in Leeds at 63,255, divided by 10% vistors per week=
6,322.5 visitors= 1,264.5 visitors per day with DISTRIBUTION an average spend of £10 per customer (25% Our products are either made by customers as buyers)= in house designers, or they are £3161.25, 20% comission= submitted by young, local designers- there will not be any £632.35 made per day by shipping or handling costs for the Book Klub in house prints, and all P&P costs Open 251 business days= from designers will be requested to be paid by the designers £158, 694.75 before zines, themselves. If designs are events, living wage and tax returned (from the sale or return allowances and deductions. policy) when we will then cover any necessary P&P costs. PERSONNEL
MILESTONES 02/01/12: Purchase property 16/01/12: Move in date 30/01/12: Finalise refitting 06/02/12: STORE OPENING 06/08/12: 6 month start up accounts review 06/02/13: Year one AGM meeting to review accounts and business for first year.
BOOK KLUB MATT CHATFIELD/ SARAH ROBERTS/ CHRIS VAN NIEKERK/ SOPHIE WLSON
Living wage per year x3: SOPHIE WILSON= £7,788 CHRIS VAN NIEKERK= £16,980 MATT CHATFIELD= £18,016 SARAH ROBERTS= £16,545 TOTAL (year 1)= £59,329
BOOK KLUB THE LIBRARY OF PRINTED DESIGN
BUSINESS PLAN 6/6
SALES FORECAST CONTINUED... PERSONNEL PLAN SOPHIE is living with her partner, which means that the living wage expenses are considerably lower. In the first year, we will all take on a part time job as well as working at Book Klub (2 employees in the
shop at a time, working on a rotational basis)- this reduces our living wage costs by £30,000 (£7,500 each). In Year 2, Sophie and Chris will go on to work full time at Book Klub (as PR and Marketing Director and Creative Director) in order to boost sales and advertising. Sarah and Matt will continue working at their part time jobs, resulting in a combined £15,000 reduction in living wages. In Year 3, each employee will be working for the company full time and recieving the living wages as required.
START UP COSTS Overheads for the first 6 months reach a total of £30,734.10. With a £25,000 loan from Barclays under a business account, this leaves us with a £5,734.10 loss. Deducting 6 months profit made by the company (£744.325), we are left with - £4989.77 for start up costs in the first six months. Split four ways, we will each pay £1247.44 from our personal accounts towards the funding of the business, which will be claimed back in the Year 2 profits, paying back £207 a month for 6 months. One off payments include;
BOOK KLUB MATT CHATFIELD/ SARAH ROBERTS/ CHRIS VAN NIEKERK/ SOPHIE WLSON
- PRINTING FACILITIES - SHOP FITTING AND FURNITURE - SOFTWARE - COMPUTER NEEDS (See accounts sheets and notes for more details).