Outdoor Gear Designer Business Plan

Simplistic Labyrinth Design Studio specializes in designing and prototyping outdoor gear. We create prototypes based on customer specifications or our own imagination. Customers can then license and sell the product as their own. This service is valuable for companies without an in-house design studio or for those unable to produce unique models.

In addition to fulfilling manufacturer requests, Simplistic Labyrinth has pre-designed products. We will find suitable companies to market and manufacture these products. Our competitive advantages lie in our imagination and expertise, which we will utilize to capture market share. Profits will fluctuate over time, depending on the revenue cycle for this type of business.

Outdoor Gear Designer Business Plan Example

1.1 Objectives

The objectives for the first three years of operation are:

  • Create a service-based company that exceeds customers’ expectations.
  • Utilize Simplistic Labyrinth with at least four multi-million dollar companies.
  • Increase the number of clients by 20% per year.
  • Develop a sustainable home-based design studio that licenses designs to top manufacturers in their respective fields.

1.2 Mission

Simplistic Labyrinth Design Studio’s mission is to provide cutting edge designs licensed by manufacturers. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed customer expectations.

Company Summary

Simplistic Labyrinth Design Studio designs and licenses outdoor gear products. We search for licensees to purchase our designs or develop products when approached by manufacturers.

Simplistic Labyrinth Design Studio was founded by Ikan Fabreekate and is based in his home studio in Portland, Oregon. Our revenue comes from license fees and one-off prototypes. We will reach profitability by month four with yearly revenues of $6,000 in year two.

2.1 Company Ownership

Simplistic Labyrinth Design Studio is a sole proprietorship owned by Ikan Fabreekate.

2.2 Start-up Summary

Simplistic Labyrinth Design Studio will incur the following start-up expenses:

  • Computer system with CD-RW, printer, Microsoft Office, QuickBooks Pro, CAD/CAM software, and a DSL connection.
  • Commercial walking foot sewing machine.
  • Serger.
  • Heat press for applying 2-ply hot tape, 3-ply hot tape, polyurethane hot tape, and nitrile hot tape.
  • Hot knife.
  • Bar tacker.
  • Assorted threads, needles, scissors, and fabric cutters.
  • Extra phone line.
  • Web page development.
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Note that long-term assets, such as those used for more than a year, will be labeled long-term assets and depreciated using G.A.A.P. approved straight-line depreciation method.

Outdoor Gear Designer Business Plan Example

Start-up Funding

Start-up Expenses to Fund: $200

Start-up Assets to Fund: $17,800

Total Funding Required: $18,000

Assets

Non-cash Assets from Start-up: $6,350

Cash Requirements from Start-up: $11,450

Additional Cash Raised: $0

Cash Balance on Starting Date: $11,450

Total Assets: $17,800

Liabilities and Capital

Liabilities

Current Borrowing: $0

Long-term Liabilities: $0

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $0

Capital

Planned Investment

Ikan: $18,000

Investor 2: $0

Other: $0

Additional Investment Requirement: $0

Total Planned Investment: $18,000

Loss at Start-up (Start-up Expenses): ($200)

Total Capital: $17,800

Total Capital and Liabilities: $17,800

Total Funding: $18,000

Start-up

Requirements

Start-up Expenses

Legal: $100

Stationery etc.: $100

Other: $0

Total Start-up Expenses: $200

Start-up Assets

Cash Required: $11,450

Other Current Assets: $0

Long-term Assets: $6,350

Total Assets: $17,800

Total Requirements: $18,000

Services

Simplistic Labyrinth Design Studio is a full-service design studio for outdoor gear. Simplistic Labyrinth creates designs as per manufacturer’s specifications and independently.

Some of Simplistic Labyrinth’s designs include a secure, low-profile velcro watch band, an insulated wine/beer bag made of durable Cordura fabric, simple shoe bags for travel, a water hydration pack for ultramarathon running, a waterproof bag for bicycling, a strap system for trekking poles, bicycling messenger bags, and a slimline padded laptop case/envelope. Design is only limited by the client’s willingness to pay.

Simplistic Labyrinth derives revenue from license and prototyping fees. License fees are one-time fees for using the product in production, while prototyping fees are for creating a working model.

Some of Simplistic Labyrinth’s designs may be patented if they meet the criteria for intellectual property protection and are unique enough to avoid easy replication.

Market Analysis Summary

Simplistic Labyrinth Design Studio targets two customer groups: manufacturers interested in prototype development and entrepreneurs seeking design assistance.

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These groups are primarily targeted through outdoor industry trade shows and advertisements in industry journals. Additionally, Simplistic targets entrepreneurs interested in finding manufacturing partners for their designs.

Market Segmentation

Simplistic Labyrinth’s customers can be divided into two groups:

1. Manufacturers looking to sell a specific design and need quick design assistance.

2. Entrepreneurs who license designs and seek manufacturers for mass production and distribution.

The majority of the business is with manufacturers who outsource design and prototyping to minimize costs. Some entrepreneurs license designs and handle product distribution and marketing.

Outdoor Gear Designer Business Plan Example

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Manufacturers 9% 1,245 1,357 1,479 1,612 1,757 8.99%
Entrepreneurs 10% 12,455 13,701 15,071 16,578 18,236 10.00%
Other 0% 0 0 0 0 0 0.00%
Total 9.91% 13,700 15,058 16,550 18,190 19,993 9.91%

4.2 Target Market Segment Strategy

Simplistic Labyrinth will target market segments through:

– Outdoor industry trade shows, which occur biannually and attract key industry players. These shows offer excellent networking opportunities and are essential for gaining business.

Strategy and Implementation Summary

Simplistic Labyrinth Design Studio will leverage their competitive advantage of imagination and expertise to drive sales. They will engage with prospective customers at trade shows and through inquiries, focusing on providing professional and customer-centric service. Additionally, they will showcase past designs to highlight their outstanding work, ultimately leading to steady sales growth.

5.1 Milestones

Simplistic Labyrinth will achieve several milestones early on:

1. Business plan completion: Essential as a roadmap for ongoing performance and improvement.

2. Office setup.

3. Portfolio and website completion.

4. Profitability.

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Milestones
Milestone Start Date End Date Budget Manager Department
Business plan completion 1/1/2001 2/1/2001 $0 ABC Marketing
Office setup 1/1/2001 2/1/2001 $0 ABC Department
Portfolio and website completed 1/1/2001 2/1/2001 $0 ABC Department
Profitability 1/1/2001 4/30/2001 $0 ABC /
Totals $0

5.2 Competitive Edge

Simplistic Labyrinth’s competitive edge lies in their imagination and expertise. By thinking outside the box, they offer creative solutions to design constraints. Furthermore, their versatility and experience enable them to approach projects from various angles, considering factors such as cost, features, and durability. This imaginative approach provides a competitive advantage.

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Another competitive advantage is Simplistic Labyrinth’s expertise. With over five years of designing experience, including internships at reputable companies, they have developed the necessary skills to design a wide range of products.

5.3 Sales Strategy

Simplistic Labyrinth’s sales strategy emphasizes customer service and showcases previous designs. They prioritize professionalism in all communications, accurate design proposals, regular updates on progress, and attention to detail. Additionally, they leverage their trademarked and patented designs to impress prospective clients. Personal interactions at trade shows or over the phone are crucial for turning prospects into long-term customers.

5.3.1 Sales Forecast

The first month will involve setting up the design studio, signing up for trade shows, and advertising in relevant journals and magazines. Building awareness in the industry will take several months. In the meantime, repair work and prototyping will help generate income through collaborations with local outdoor stores. From the third month onwards, sales will steadily grow, primarily driven by trade show-generated business.

Outdoor Gear Designer Business Plan Example

Sales Forecast:

Sales Forecast
Year 1 Year 2 Year 3
Sales
Manufacturers $21,865 $29,788 $32,455
Entrepreneurs $16,245 $26,455 $30,145
Other- local projects $3,455 $3,500 $4,500
Total Sales $41,565 $59,743 $67,100
Direct Cost of Sales Year 1 Year 2 Year 3
Manufacturers $2,187 $2,979 $3,246
Entrepreneurs $1,625 $2,646 $3,015
Other- local projects $346 $350 $450
Subtotal Direct Cost of Sales $4,157 $5,974 $6,710

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