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.
Contents
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.
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.
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.
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.
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.
To develop effective business strategies, perform a SWOT analysis using our free guide and template.
| 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.
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.
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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