Stained Glass Gallery Business Plan
More than 10 years ago, Jan Primak discovered stained glass art. Within six months, she was teaching the art, running a successful stained glass retail store in Richmond, and developing her own artistic style. Jan returned to Montclair and dedicated her time to creating unique stained glass pieces and teaching stained glass classes at Montclair Community College. Later, she opened Glass Dreams, a highly successful art studio and gallery.
In addition to being an art studio, Glass Dreams is a small retail outlet for supplies, tools, and glass in Montclair.
Glass Dreams wants to expand the retail outlet to create a second storefront with a comprehensive variety of supplies, tools, and glass in Montclair. The new storefront will be adjacent to the studio. The original storefront will become a reference library with over 610 art glass books and a training center for both serious and recreational artists, novice and expert alike.
Glass Dreams will secure a $50,000 long-term loan to facilitate the opening of the second storefront.
Mission
Glass Dreams’ mission is to offer consumers one-of-a-kind stained glass art and provide tools and training to artists, both serious and recreational.
Keys to Success
– Knowledgeable staff who can quickly answer customer questions.
– Excellent instruction in the art of stained glass.
– Comfortable shopping environment that keeps customers in the store.
Contents
Company Summary
Glass Dreams is a highly successful art studio, gallery, and retail outlet for supplies, tools, and glass in Montclair. Jan Primak, a popular stained glass instructor, has made the studio a gathering place for aspiring artists.
2.1 Company History
Jan uses stained glass art and ambient light to create her interpretations. She combines the shifting qualities of light with the textures and colors of glass to create exclusive pieces for collectors worldwide.
Although Jan works in Montclair, she is internationally renowned. Her stained glass creations have sold to Japan, Belgium, Egypt, Australia, and the United States. With a seemingly limitless supply of creative ideas, Jan emphasizes the individuality of each piece she creates, resulting in high demand for her work.
Glass Dreams combines the studio, gallery, and store, providing customers and aspiring artists with a unique experience. The popularity of Jan’s classes has outgrown the current store space.
| Past Performance | |||
| 1999 | 2000 | 2001 | |
| Sales | $180,000 | $220,000 | $260,000 |
| Gross Margin | $50,000 | $60,000 | $75,000 |
| Gross Margin % | 27.78% | 27.27% | 28.85% |
| Operating Expenses | $100,000 | $110,000 | $120,000 |
| Inventory Turnover | 13.00 | 11.85 | 5.52 |
| Balance Sheet | |||
| 1999 | 2000 | 2001 | |
| Current Assets | |||
| Cash | $10,000 | $30,000 | $50,000 |
| Inventory | $10,000 | $17,000 | $50,000 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $20,000 | $47,000 | $100,000 |
| Long-term Assets | |||
| Long-term Assets | $20,000 | $20,000 | $20,000 |
| Accumulated Depreciation | $1,000 | $2,000 | $3,000 |
| Total Long-term Assets | $19,000 | $18,000 | $17,000 |
| Total Assets | $39,000 | $65,000 | $117,000 |
| Current Liabilities | |||
| Accounts Payable | $14,000 | $15,000 | $16,000 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities (interest free) | $0 | $0 | $0 |
| Total Current Liabilities | $14,000 | $15,000 | $16,000 |
| Long-term Liabilities | $0 | $0 | $50,000 |
| Total Liabilities | $14,000 | $15,000 | $66,000 |
| Paid-in Capital | $0 | $0 | $0 |
| Retained Earnings | ($5,000) | $20,000 | $11,000 |
| Earnings | $30,000 | $30,000 | $40,000 |
| Total Capital | $25,000 | $50,000 | $51,000 |
| Total Capital and Liabilities | $39,000 | $65,000 | $117,000 |
| Other Inputs | |||
| Payment Days | 0 | 0 | 0 |
2.2 Company Ownership
Jan Primak is the owner of Glass Dreams.
Products and Services
Glass Dreams will open a second store front to sell stained glass supplies. The new space will double the inventory and provide ample space for customers. The retail space will have its own manager and staff.
Glass Dreams provides:
STAINED GLASS SUPPLIES
- Basic and super stained glass tool kits;
- Gryphon band saws;
- Tauris ring saws;
- Glass grinders;
- Glass: Spectrum, Kokomo, Bullseye, Armstrong, Optimum, Sahara, English Muffle, Uroborus, GNA, Antiques, Gluechip;
- Mosaic forms and supplies;
- Slab glass (Dalle De Verre);
- Solder;
- Lamp bases;
- Bevels;
- Books and more!
TEACHING
- Stained glass courses;
- 7-10 week classes;
- Novice to advanced;
- Mosaics, etching, soldering–one day courses.
STAINED GLASS DESIGNS FOR
- Entryways;
- Shower doors;
- Lamps;
- Windows;
- Gifts;
- Custom orders;
- Residential;
- Commercial.
Market Analysis Summary
Stained glass is a popular craft art. It is a popular attraction of art and craft galleries and festivals. There are approximately 2,000 galleries on the West Coast that carry stained glass art. Each year, stained glass artists are attractions at over 250 major arts and craft festivals on the West Coast. Over 30 million shoppers visit these festivals annually. These galleries and festivals represent millions of dollars in sales for stained glass artists.
Over the past three years, Jan Primak has had many customers sign up for stained glass project classes. Some of these students have become stained glass artists. Jan has built a base of loyal artists and customers who use Glass Dreams as a resource.
4.1 Market Segmentation
Glass Dreams will focus on two customer groups:
- Recreational Artists: These are customers of Jan’s less expensive pieces and are interested in trying their own hand at creating a piece based on one of Jan’s designs.
- Serious Artists: This group represents the artist base that comes from three years of teaching stained glass courses. Over that period, Jan has assisted 300 students in finishing multiple stained glass projects.
| Market Analysis | |||||||
| 2002 | 2003 | 2004 | 2005 | 2006 | |||
| 5,000 | 5,750 | 6,613 | 7,605 | 8,746 | |||
| 2,000 | 2,200 | 2,420 | 2,662 | 2,928 | |||
| 7,000 | 7,950 | 9,033 | 10,267 | 11,674 | |||
Strategy and Implementation Summary
After the second storefront is opened, Glass Dreams will have the following resources:
Studio
The work studio is a new space with many amenities, including a 4′ x 6′ light box table, a full basement with kilns, and a kitchenette where coffee and good conversation are always present. Jan Primak and apprentices continuously work on projects.
The teaching section of the studio allows up to six people at a time to receive instruction in stained glass assembly. Classes include beginning, intermediate, and advanced levels, with projects such as lead came windows, panel lamps, tiffany lamps, glass mosaics, picture frames, stained glass boxes, stained and beveled glass windows, stained glass stone tables, mosaic stepping stones, and garden stakes.
Retail
The retail section offers everything a glass crafter needs, including over 6,000 square feet of stained glass in various textures and opacities. The store will have a manager and a staff of two responsible for setup and maintenance.
5.1 Competitive Edge
Jan Primak, an internationally renowned artist, is the competitive edge of Glass Dreams. Her stained glass creations are sold worldwide. She is a high-energy individual with a seemingly limitless supply of creative ideas. Most importantly, she excels with customers and fellow artists. Her classes are popular and have generated a loyal base of artists who return to Glass Dreams for supplies and inspiration.
To develop good business strategies, perform a SWOT analysis of your business. It’s easy with our free guide and template. Learn how to perform a SWOT analysis
5.2 Sales Strategy
Glass Dreams will focus on building the retail storefront during the first three months. During that time, a 20% discount will be offered for purchases of $50 or more. Sales are expected to grow slowly during the first five months.
5.2.1 Sales Forecast
The following is the sales forecast for three years.
Sales Forecast:
2002 2003 2004
Sales
Retail $125,000 $140,000 $160,000
Courses $89,000 $100,000 $100,000
Art Pieces $118,500 $120,000 $140,000
Total Sales $332,500 $360,000 $400,000
Direct Cost of Sales:
2002 2003 2004
Retail $40,500 $45,000 $52,000
Courses $0 $0 $0
Art Pieces $25,250 $30,000 $36,000
Subtotal Direct Cost of Sales $65,750 $75,000 $88,000
Management Summary:
Jan Primak will manage the staff of Glass Dreams, while the retail storefront will have its own manager. Jan has over ten years experience in stained glass art and is a popular arts teacher at the local community college. Her ability to manage people and maintain a disciplined, yet creative, environment is one of her strongest characteristics as an artist and teacher.
6.1 Personnel Plan:
Glass Dreams will be doubling its staff with the opening of the second storefront. The retail store manager position and retail staff positions are new. The personnel plan for Glass Dreams is as follows:
Personnel Plan:
2002 2003 2004
Jan Primak $36,000 $38,000 $40,000
Retail Store Manager $32,400 $34,000 $36,000
Apprentices/Project Assistants (2) $48,000 $48,000 $48,000
Retail Staff (2) $38,400 $40,000 $42,000
Total People 5 5 5
Total Payroll $154,800 $160,000 $166,000
The following sections outline the financial plan for Glass Dreams.
7.1 Break-even Analysis:
The following table and chart show our monthly break-even point for the next year.
Break-even Analysis:
Monthly Revenue Break-even: $23,353
Assumptions:
– Average Percent Variable Cost: 20%
– Estimated Monthly Fixed Cost: $18,735
Projected Profit and Loss:
The table and charts below show the projected profit and loss for three years.
Pro Forma Profit and Loss
Year 2002 2003 2004
Sales $332,500 $360,000 $400,000
Direct Cost of Sales $65,750 $75,000 $88,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $65,750 $75,000 $88,000
Gross Margin $266,750 $285,000 $312,000
Gross Margin % 80.23% 79.17% 78.00%
Expenses
Payroll $154,800 $160,000 $166,000
Sales and Marketing and Other Expenses $6,000 $6,000 $6,000
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $4,800 $4,800 $4,800
Insurance $0 $0 $0
Rent $36,000 $36,000 $36,000
Payroll Taxes $23,220 $24,000 $24,900
Other $0 $0 $0
Total Operating Expenses $224,820 $230,800 $237,700
Profit Before Interest and Taxes $41,930 $54,200 $74,300
EBITDA $41,930 $54,200 $74,300
Interest Expense $4,415 $3,380 $2,300
Taxes Incurred $11,255 $15,246 $21,600
Net Profit $26,260 $35,574 $50,400
Net Profit/Sales 7.90% 9.88% 12.60%
7.3 Projected Cash Flow
The following table and chart illustrate the projected cash flow for three years.
Pro Forma Cash Flow
| Pro Forma Cash Flow | |||
| 2002 | 2003 | 2004 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $332,500 | $360,000 | $400,000 |
| Subtotal Cash from Operations | $332,500 | $360,000 | $400,000 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| Subtotal Cash Received | $332,500 | $360,000 | $400,000 |
Projected Balance Sheet
7.4 Projected Balance Sheet
The following table is the projected balance sheet for three years.
| Pro Forma Balance Sheet | |||
| 2002 | 2003 | 2004 | |
| Assets | |||
| Current Assets | |||
| Cash | $105,389 | $130,545 | $170,490 |
| Inventory | $6,380 | $7,278 | $8,539 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $111,769 | $137,823 | $179,029 |
| Long-term Assets | |||
| Long-term Assets | $20,000 | $20,000 | $20,000 |
| Accumulated Depreciation | $3,000 | $3,000 | $3,000 |
| Total Long-term Assets | $17,000 | $17,000 | $17,000 |
| Total Assets | $128,769 | $154,823 | $196,029 |
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7336, Commercial Art and Graphic Design, are shown for comparison.
| Ratio Analysis | ||||
| 2002 | 2003 | 2004 | Industry Profile | |
| Sales Growth | 27.88% | 8.27% | 11.11% | 8.50% |
| Percent of Total Assets | ||||
| Inventory | 4.95% | 4.70% | 4.36% | 5.30% |
| Other Current Assets | 0.00% | 0.00% | 0.00% | 44.20% |
| Total Current Assets | 86.80% | 89.02% | 91.33% | 69.00% |
| Long-term Assets | 13.20% | 10.98% | 8.67% | 31.00% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 9.56% | 8.78% | 7.75% | 43.70% |
| Long-term Liabilities | 30.44% | 18.34% | 8.98% | 19.40% |
| Total Liabilities | 40.00% | 27.12% | 16.73% | 63.10% |
| Net Worth | 60.00% | 72.88% | 83.27% | 36.90% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 80.23% | 79.17% | 78.00% | 0.00% |
| Selling, General & Administrative Expenses | 72.33% | 69.29% | 65.40% | 81.30% |
| Advertising Expenses | 1.80% | 1.67% | 1.50% | 1.00% |
| Profit Before Interest and Taxes | 12.61% | 15.06% | 18.58% | 1.70% |
| Main Ratios | ||||
| Current | 9.08 | 10.14 | 11.78 | 1.60 |
| Quick | 8.56 | 9.61 | 11.22 | 1.23 |
| Total Debt to Total Assets | 40.00% | 27.12% | 16.73% | 63.10% |
| Pre-tax Return on Net Worth | 48.56% | 45.04% | 44.11% | 3.60% |
| Pre-tax Return on Assets | 29.13% | 32.82% | 36.73% | 9.80% |
| Additional Ratios | 2002 | 2003 | 2004 | |
| Net Profit Margin | 7.90% | 9.88% | 12.60% | n.a |
| Return on Equity | 33.99% | 31.53% | 30.88% | n.a |
| Activity Ratios | ||||
| Inventory Turnover | 2.93 | 10.98 | 11.13 | n.a |
| Accounts Payable Turnover | 8.76 | 12.17 | 12.17 | n.a |
| Payment Days | 31 | 29 | 28 | n.a |
| Total Asset Turnover | 2.58 | 2.33 | 2.04 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.67 | 0.37 | 0.20 | n.a |
| Current Liab. to Liab. | 0.24 | 0.32 | 0.46 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $99,460 | $124,235 | $163,835 | n.a |
| Interest Coverage | 9.50 | 16.04 | 32.30 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 0.39 | 0.43 | 0.49 | n.a |
| Current Debt/Total Assets | 10% | 9% | 8% | n.a |
| Acid Test | 8.56 | 9.61 | 11.22 | n.a |
| Sales/Net Worth | 4.30 | 3.19 | 2.45 | Plan Month
– Current Interest Rate – Long-term Interest Rate – Tax Rate – Other Pro Forma Profit and Loss: – Sales – Direct Cost of Sales – Other Production Expenses – Total Cost of Sales – Gross Margin – Gross Margin % – Expenses – Payroll – Sales and Marketing and Other Expenses – Depreciation – Leased Equipment – Utilities – Insurance – Rent – Payroll Taxes – Other – Total Operating Expenses – Profit Before Interest and Taxes – EBITDA – Interest Expense – Taxes Incurred – Net Profit – Net Profit/Sales Pro Forma Cash Flow: – Cash Received – Cash from Operations – Cash Sales – Subtotal Cash from Operations – Additional Cash Received – Sales Tax, VAT, HST/GST Received – New Current Borrowing – New Other Liabilities (interest-free) – New Long-term Liabilities – Sales of Other Current Assets – Sales of Long-term Assets – New Investment Received – Subtotal Cash Received – Expenditures – Expenditures from Operations – Cash Spending – Bill Payments – Subtotal Spent on Operations – Additional Cash Spent – Sales Tax, VAT, HST/GST Paid Out – Principal Repayment of Current Borrowing – Other Liabilities Principal Repayment – Long-term Liabilities Principal Repayment – Purchase Other Current Assets – Purchase Long-term Assets – Dividends – Subtotal Cash Spent – Net Cash Flow – Cash Balance Pro Forma Balance Sheet: |
| Pro Forma Balance Sheet | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
| Assets | Starting Balances | ||||||||||||
| Cash | $50,000 | $39,016 | $39,209 | $40,988 | $47,592 | $57,127 | $65,797 | $76,453 | $88,518 | $95,073 | $100,154 | $104,044 | $105,389 |
| Inventory | $50,000 | $47,700 | $44,600 | $40,500 | $35,000 | $28,500 | $22,000 | $15,500 | $8,500 | $6,325 | $6,820 | $7,150 | $6,380 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $100,000 | $86,716 | $83,809 | $81,488 | $82,592 | $85,627 | $87,797 | $91,953 | $97,018 | $101,398 | $106,974 | $111,194 | $111,769 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
| Accumulated Depreciation | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Total Long-term Assets | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 |
| Total Assets | $117,000 | $103,716 | $100,809 | $98,488 | $99,592 | $102,627 | $104,797 | $108,953 | $114,018 | $118,398 | $123,974 | $128,194 | $128,769 |
| Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $16,000 | $5,327 | $5,235 | $5,375 | $6,414 | $7,279 | $7,274 | $7,849 | $8,279 | $10,642 | $13,812 | $14,431 | $12,309 |
| Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Current Liabilities | $16,000 | $5,327 | $5,235 | $5,375 | $6,414 | $7,279 | $7,274 | $7,849 | $8,279 | $10,642 | $13,812 | $14,431 | $12,309 |
| Long-term Liabilities | $50,000 | $49,100 | $48,200 | $47,300 | $46,400 | $45,500 | $44,600 | $43,700 | $42,800 | $41,900 | $41,000 | $40,100 | $39,200 |
| Total Liabilities | $66,000 | $54,427 | $53,435 | $52,675 | $52,814 | $52,779 | $51,874 | $51,549 | $51,079 | $52,542 | $54,812 | $54,531 | $51,509 |
| Paid-in Capital | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Retained Earnings | $11,000 | $51,000 | $51,000 | $51,000 | $51,000 | $51,000 | $51,000 | $51,000 | $51,000 | $51,000 | $51,000 | $51,000 | $51,000 |
| Earnings | $40,000 | ($1,711) | ($3,627) | ($5,187) | ($4,222) | ($1,152) | $1,923 | $6,404 | $11,940 | $14,856 | $18,162 | $22,664 | $26,260 |
| Total Capital | $51,000 | $49,289 | $47,373 | $45,813 | $46,778 | $49,848 | $52,923 | $57,404 | $62,940 | $65,856 | $69,162 | $73,664 | $77,261 |
| Total Liabilities and Capital | $117,000 | $103,716 | $100,809 | $98,488 | $99,592 | $102,627 | $104,797 | $108,953 | $114,018 | $118,398 | $123,974 | $128,194 | $128,769 |
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!