INTERIOR DESIGN BUSINESS PLAN- Sample

Executive Summary
Barton Interiors is a proposed venture that will offer comprehensive interior design services for
homes and offices in the Boulder, Colorado area. Barton Interiors also will provide access
to products to complement the design consulting services including furniture, both new and
antique, decorator fabric, and home and office accessories. This venture offers the
personalized services the target market desires and can afford in a way that is unique from
concept to implementation.
ecent market research indicates a specific and growing need in the area for the interior design
consulting services and products Barton Interiors offers the market it will serve. The market
strategy will be based on a cost effective approach to reach this clearly defined target market.
!lthough the population of Boulder is under "##,###, the market has a significant quantity of
relatively wealthy households that are conscious of the appearance and feel of their home and
offices.
The approach to promote Barton Interiors with be through establishing relationships with key
people in the community and then through referral activities once a significant client base is
established. Barton Interiors will focus on developing solid and loyal client relationships offering
design solutions based on the client$s taste, budget, use, and goals for the space. The
additional selection, accessibility of product, design services, and value%based pricing will
differentiate Barton Interiors from the other options in the area.
Total revenues in the first year are pro&ected to e'ceed ()*,### with a loss. The venture will
show increasing profits in year two and three, with revenues pro&ected to increase to almost
(+#,###. This business plan outlines the concept and implementation and details regarding the
first three years of this venture.
1.1 Objectives
". ealize an average of (,,+-# of sales each business month for the first year, (.,-/# for
the second, and (*,*## for the third year.
/. 0enerate a minimum of ).1 of revenues from product sales versus consulting billing.
,. 2stablish a commercial revenue client base accounting for "#1 of total revenues.
1.2 Mission
Barton Interiors is an interior design service for discerning, quality%conscious clients that seek
assistance in their design choices for their primary residences, vacation homes, and
businesses. This e'perience offers personal attention through the design process and also
provides design resources and products to its clients through special purchases of furniture,
fabric, and accessories. The total e'perience is provided in a way to inform, inspire, and
assist people through the process of transforming their home or business environment to
become a unique and personalized e'pression of themselves and add to their en&oyment of that
interior space.
1.3 Keys to Success
The primary keys to success for Barton Interiors will be based on the following factors3
4rovide the highest quality interior design consulting e'perience possible.
5ell specially selected products to these clients to further meet their interior design
needs.
Communicate with our client base through the website and personalized communication
techniques.
etain clients to generate repeat purchases and initiate referrals.
Company Summary
Barton Interiors is a start%up business that will offer comprehensive interior design services for
home and office. This business will assist those that want to have guidance and council in
developing a basic design concept of their pro&ect, to the person that desires someone to take it
from concept to complete implementation. Barton Interiors will offer the ability for clients to
purchase new and antique furniture, art work, decorator fabric, and home accessories. The
website www.bartoninteriors.com will be used as another way to communicate the
services available and provide a portfolio of the work accomplished. The business will begin as
a home%based business and is e'pected to remain in this structure through at least the first
three years.
2.1 Company Ownership
Barton Interiors, located in Boulder, Colorado is registered in the 5tate of Colorado as a sole
proprietorship owned and operated by 6ill Barton dba Barton Interiors.
2.2 Company Locations an !aci"ities
Barton Interiors is operated from a home office located in Boulder, Colorado. ! room is
dedicated to support a work area, a client contact work center, and display samples of design
concepts, products, and past work.
#roucts an Services
Barton Interiors focuses on providing interior design consulting. This is complemented
by specially purchased furniture, art pieces, decorator fabric, and accessories for the home and
office. The sales process will begin with interior design consulting services, and then progress
on to offer specially selected components to complement the design theme.
4roducts available through Barton Interiors include3
7urniture available through special purchase arrangements with Thomasville, 8re'el
9eritage, and 9enredon and local craftsman.
! selection of decorator fabrics from :averly, 4 ;aufmann, 7abricut, alph <auren,
egal, obert !llen, <atimer !le'ander, Covington, and 4ortfolio.
! line of drapery hardware called =>val >ffice Iron= purchased through 8ept. of the
Interior 8ecorator 7abrics in 2ugene, >regon found at www.fabric%online.com.
!ccessory and art pieces available through wholesale shows.
9unter 8ouglas window treatment products including a variety of hard window
coverings.
Interior shutters made of wood and a plastic?resin product called =polywood.=
!ntiques acquired for specific client needs through an arrangement with a local antique
buyer and through direct purchases through other sources.
3.1 #rouct an Service $escription
>ur primary points of differentiation offer these qualities3
! unique client e'perience from a trained and professional interior designer that is
qualified and capable of meeting the needs of discerning clients with high e'pectations.
!ccess to a wide and unique selection of new and antique furniture, accessories, and
special%order decorator fabrics.
4ersonal assistance from a complementary product offering, including hard%covering
window treatment, hardware, and home accessories that fit the look and ob&ectives of each
pro&ect.
3.2 Competitive Comparison
>ur competition is primarily from other interior designers. <ooking at a broader picture, there is
also competition from the =do%it%yourself= resource providers that have retail stores and websites
that include the following3
Bed, Bath and Beyond moved into the market in the year /### at an e'cellent location.
8iscount stores including Target, :al%@art and 9ome 8epot have e'panded their fabric,
bedding, pillow, and ready%made drapery selections often representing lines including
:averly.
Aorwalk continues to make purchasing =blank= furniture and making a designer fabric
selection an attractive option to recovering furniture.
Catalog sales continue to be a strong force with a list including 4ottery Barn, Calico
Corners, Ballard 8esign, and 2ddie Bauer e'panding purchasing selection.
The list of competitors for home accessory competition includes 4ier " and local
competitors that provide an entire list of other furniture, accessory and gift stores.
:eb sales of furniture, fabric and other interior design%oriented products has e'panded
dramatically and in many cases is easily available.
3.3 Sa"es Literature
! simple and professional looking brochure will be available to provide to referral sources, leave
at seminars, and on a select basis, use for direct mail purposes.
Mar%et &na"ysis Summary
Barton Interiors has a defined target market client that will be the basis of building this
business. This client is identical for both the residence and office spaces, but the target market
is identical based on her different roles for each of those spaces.
2ffective marketing combined with an optimal product offering is critical to the Barton
Interiors$ success and future profitability. The owner possesses solid information about
the market and knows a great deal about the common attributes of those that are e'pected to
be prized and loyal clients. This information will be leveraged to better understand who Barton
Interiors will serve, their specific needs, and how to better communicate with them.
'.1 Mar%et Se(mentation
The profile of the Barton Interior client consists of the following geographic, demographic,
psychographic, and behavior factors3
)eo(raphics
The geographic market is the affluent sector within the Boulder, Colorado area with a
population of B),*-,. CBased on the /### Census data.D
! /#%mile geographic area is in need of the products and services offered and do not
intend to pursue the 8enver market at this time.
The total target market population is estimated at /),### based on the following
demographics.
$emo(raphics
7emale, married and have attended college.
9ave children, but they are not necessarily at home.
! combined household annual income greater than ("##,###.
!ge range of ,. to .. years, with a median age of )/.
>wns their home, townhouse and?or condominium valued at over ()/.,###.
They and?or their spouse work in a professional setting and may have interior design
requirements for their office space as well as their homes.
Belong to one or more business, service, and?or athletic organization including3
o Boulder Country Club.
o 6unior <eague of Boulder.
o !merican Business :omen$s !ssociation.
o !merican !u'iliary of Eniversity :omen.
o 8octor$s :ives !u'iliary.

The following is known regarding the profile of the typical resident of Boulder3
*-1 have lived in the area for seven years or more.
/,1 are between the ages of ,. and )).
)#1 have completed some college.
/)1 are managers, professionals and?or owners of a business.
.,1 are married.
*.1 have no children living at home.
.*1 own their residence.
#sycho(raphics
The appearance of her home is a priority.
2ntertaining and showing her home is important.
5he perceives herself as creative, tasteful and able, but seeks validation and support
regarding her decorating ideas and choices.
5he reads one or more of the following magazines3
o @artha 5tewart <iving.
o Country <iving.
o 9ome.
o 9ouse Beautiful.
o Country 9ome.
o @etropolitan 9ome.
o Traditional 9omes.
o Fictoria.
o 2lle 8ecor.
If she does seek out television as an information source for home decorating that is most
likely to be =@artha 5tewart= and, on a lesser basis, =Interior @otives.=
*ehaviors
5he takes pride in having an active role in decorating their home.
9er home is a form of communicating =who she is= to others.
Comparison positioning and stature within social groups are made on an ongoing basis,
but rarely discussed.
Barton Interiors is providing its clients the opportunity to create a home environment to e'press
who they are. They seek design assistance and have the resources to accomplish their goals.
They desire their home to be personal, unique, and tasteful as it communicates a message
about what is important to them. Barton Interiors will seek to fulfill the following benefits that are
important to our clients.
Mar%et &na"ysis
Gear " Gear / Gear , Gear ) Gear .
4otential Customers 0rowth C!0
Country Club :omen "/1 ,),)## ,+,./+ ),,"." )+,,/B .),"/+ "/.##1
Boomers in Transition B1 "/,### ",,#+# "),/.- ".,.)# "*,B,B B.##1
4rofessional
Goungsters
+1 +,### +,*)# B,,," "#,#-- "#,++, +.##1
9ome Builders .1 +,### +,)## +,+/# B,/*" B,-/) ..##1
>ther #1 # # # # # #.##1
Total "#.#B1 */,)## *+,*)+ -.,..B +,,/#- B",*-) "#.#B1
'.2 +ar(et Mar%et Se(ment Strate(y
>ur marketing strategy will create awareness, interest, and appeal from our target market for
what Barton Interiors offers its clients. The target markets are separated into four segmentsH
=Country Club :omen,= =Boomers in Transition,= =4rofessional Goungsters,= and =9ome
Builders.= The primary marketing opportunity is selling to these well defined and accessible
target market segments that focuses on investing discretionary income in these areas3
Country Club :omen % The most dominant segment of the four is comprised of women in the
age range of ,. to .#. They are married, have a household income greater than ("##,###, own
at least one home or condominium, and are socially active at and away from home. They are
members of the Boulder Country Club, 6unior <eague of Boulder, !!E:, and?or the 8octor$s
:ives !u'iliary. They have discretionary income, and their home and how it looks is a priority.
The appearance of where they live communicates who they are and what is important to them.
This group represents the largest collection of =@artha 5tewart :anna Be$s,= with their profile
echoing readers of Martha Stewart Living magazine, based on the current demographics
described in the /##" Martha Stewart Living Media Kit.
Boomers in Transition % This group, typically ranging in age from .# to *., is going through a
positive and planned life transition. They are changing homes Ceither building or movingD or
remodeling due to empty nest syndrome, retirement plans, general downsizing desires, or to
&ust get closer to the golf course. Their surprisingly high level of discretionary income is first
spent on travel, with decorating their home a close second. This is what makes this segment so
attractive. The woman of the couple is the decision maker, and often does not always include
the husband in the selection or purchase process.
4rofessional Goungsters % Couples between the ages of /. and ,. establishing their first =adult=
household fall into this group. They both work, earn in e'cess of (+#,### annually, and now
want to invest in their home. They seek to en&oy their home and communicate a =successful=
image and message to their contemporaries. They buy big when they have received a
promotion, a bonus, or an inheritance.
9ome Builders % 4eople in the home building process, typically ranging in age from )# to .., are
prime candidates for Barton Interiors. This applies to both primary residences and vacations
and secondary homes. !lthough only e'pected to occur two to fives times each year for the
business, this event will be the single largest dollar transaction amount.
'.2.1 Mar%et +rens
The home te'tile market, considered to include sheets, towels, draperies, carpets, blankets, and
upholstery, accounts for ,-1 of all te'tile output. The trade publication =Home Textiles Today=
estimates the size of the E.5. home te'tiles market at the wholesale level, e'cluding carpets, to
be between (*.. billion to (- billion annually. The industry is e'pected to realize a steady
increase over the ne't few years.
The industry is driven by the number of =household formations= which is e'pected to continue
through the first years of the new millennium. This is primarily due to the solid growth in the
number of single%parent and non%family households. This growth also comes from baby
boomers needing bigger houses to accommodate growing and e'tended families and, as
people get older, they are buying homes rather than renting to realize ta' and equity building
benefits. 7avorable mortgage rates will also enable others to invest in their e'isting home.
The =do%it%yourself= C8IGD market continues to grow and closely parallels the professional home%
improvement market. 8IG market growth is attributed to an increased presence of products, the
personal satisfaction e'perienced, and the cost savings clients realize. ! portion of the do%it%
yourself market is the =buy%it%yourself= CBIGD market. Consumers are buying the product and
arranging for someone else to do the fabrication and?or installation. This is more e'pensive then
the do%it%yourself approach, but less costly than buying finished products from other sources. It
also provides similar feelings of creativity, pride, and individuality associated with direct creative
involvement. This sense of =participation= in home decorating is an important factor for many of
these committed clients.
egardless of this data, the following trends and issues impact the success and challenges of
Barton Interiors.
,ationa" economic hea"th- The industry performs better when the country e'periences
=good times= regardless of its direct impact on the local economy. 5ales decrease when the
stock market falls and when A!T> takes military action. !n upbeat 5tate of the Enion
address by the 4resident correlates with an increase in sales.
,ew home construction activity- @ore closely related to what is taking place in our
local economy, new home construction has a significant impact on sales across all product
lines.
Shi.ts in esi(n trens- @a&or changes in design trends increase sales. The Boulder
market lags behind metropolitan design trends by si' to "/ months. This offers a buying
advantage for the store, offering a preview of what is coming and how we should ad&ust our
in%stock inventory.
'.2.2 Mar%et )rowth
American Demographics pro&ects the number of E.5. households will grow by "*1 to "".
million by the year /#"#. !lmost half of the households comprised of people from ,. to )) years
old are married couples with children under the age of "+. Based on this research, households
in the ). to *. age range will grow to ,) million by the year /###. These households will
increase another ,/ percent to ). million in /#"# as baby boomers add to this peak%earning and
spending age group. These families will either build new homes or move into e'isting dwellings.
:ith appro'imately )*./1 of the nation$s B,., million dwellings built before "B*#, many of these
homeowners are also e'pected to update.
>ne important factor is that married couples in the ,. to *. age range represent a growth
segment and en&oy larger incomes than other family structures. They en&oy the choice to spend
their disposable income on life$s amenities. They may demonstrate =cocooning= by making their
home a more comfortable and attractive haven. They choose to spend resources here rather
than on vacations and other discretionary options. This group represents a larger subsegment
of the target market.
These factors contribute to an increased need for home decorator fabrics for window treatment,
upholstery, pillows, bedding, and other fabric accessory needs. This demand is e'pected to be
complemented by the growth in the Boulder market. The ma&ority of homeowners spend a large
percentage of their disposable income on home goods within two years after buying a new
house. Therefore, positive trends in new housing activity represents growth and opportunity for
home te'tiles.
ecent slow downs in the local economy have resulted in falling below sales pro&ections and
these factors will affect market growth. !dding additional revenues through the website will
hopefully add a more stable factor in to the revenue stream.
The publication, American Demographics, pro&ects the number of E.5. households will grow by
"*1 between "BB. and the year /#"#, an increase from B+.. million to "". million. >f the
households comprised of people from ,. to )) years old, almost half are married couples with
children under the age of "+. Based on research by American Demographics, households in the
). to *. age range should grow to ,) million by the year /###. These households will increase
another ,/ percent to ). million in /#"# as baby boomers add to this peak%earning and
spending age group. :ith appro'imately )*./1 of the nation$s B,., million dwellings built before
"B*#, many of these homeowners are also e'pected to update. These factors contribute to an
increased need for home decorator fabrics for window treatment, upholstering, pillows, bedding,
and other fabric accessory needs. This demand is e'pected to be complemented by the growth
in the Boulder market. The ma&ority of homeowners spend a large percentage of their
disposable income on home goods within two years after buying a new house. Therefore,
positive trends in new housing activity represents growth and opportunity for home te'tiles.
>ne important factor is that married couples in the ,. to *. age range represent a growth
segment and en&oy larger incomes than other family structures. They en&oy the choice to spend
their disposable income on life$s amenities. They may demonstrate =cocooning= by making their
home a more comfortable and attractive haven. They choose to spend resources here rather
than on vacations and other discretionary options. This group represents a larger sub%segment
of the target market.
'.2.3 Mar%et ,ees
Barton Interiors will provide its clients the opportunity to create a home environment to e'press
who they are. They have the choice to actively participate in the design, look, and feel of their
home. They desire their home to be personal, unique, and tasteful as well as communicate a
message about what is important to them. Barton Interiors seek to fulfill the following benefits
that we know are important to our clients.
'.3 Service *usiness &na"ysis
The industry continues to be competitive with a =commodity= concern with =designers= of all skill
and background levels available throughout the market.
#otentia" Competitors- There are many other interior designers in the Boulder area and
these competitors range from those that provide simple%focused services, such as
draperies only, to a more full%service interior design approach similar to Barton Interiors.
#ower o. Supp"iers- @oderately high in most anyone that has a business licence can
have access to wholesale purchase of furniture, fabrics and accessories.
#ower o. *uyers- Fery low as buyers work within the financial terms and product
availability offered through the suppliers that specify the terms and conditions.
Substitute #roucts- 9igh as many people refer to themselves as interior designers
regardless of background, training, or certification. 5ubstitute products are also high in the
area of window treatment as hardcovering solutions have become available and
increasingly affordable. This includes blinds, shutters, and other =manufactured=
treatments. 5ubstitute products are not as prevalent in the area of antiques and art pieces.
/iva"ry- @oderately low with the =territorial= structure that the industry e'periences and
moderately low e'it barriers. The easy entry is accompanied with an easy e'it and people
get out when it is not working.
:ith the slow, but steady, growth of the past few years, the industry is now e'periencing a
=cautious optimism= regarding the future. 0rowth and e'pansion activities for most areas of the
interior design industry appear to be carefully considered. @any in the industry continues to
decide what to do and buy as the economy has e'perienced a slowdown and increased
uncertainty from the more economically confident "BB#$s.
'.3.1 $istributin( a Service
>ur primary method of distribution will be on a direct sales basis for each individual client.
'.3.2 Competition an *uyin( #atterns
Competition in the area is strong, with designers ranging from the home%based, no formal
training individuals to the more formalized store front, !merican !ssociation of Interior
8esigners C!5I8D certified designers that have close relationships with prestigious architects. In
most cases, clients make the provider decision on the basis of three criteria in this order with
these percent influences indicated after each3
". eferrals and relationship with other professionals, particularly architects C..1D.
/. 4ersonality and =e'pected relationship= with the designer C/.1 D.
,. 4ast work C".1D.
). !5I8 certification C.1D.
Enderstanding the influence of these factors on the prospective client will be key in the
marketing strategy.
'.3.3 Main Competitors
Current local competition includes the following3
Interior 8esigners3 There are ,- interior designers listed in the Boulder Gellow 4ages
CGear /###%/##" issueD that offer fabric as a part of their services. Interior designers make
profit off mark%up of fabric in addition to their hourly services charges. Their costs per yard
are typically higher since they do not benefit from retail or volume discounts. Therefore,
their costs to their client is often two to four times higher than the price per yard from Barton
Interiors.
9ouse of 7abrics3 Aationwide recognition and buying power of numerous types of dated
fabric with strong product availability. This store has e'perienced financial difficulty in recent
years and has closed several locations throughout the country.
:arehouse 7abrics3 <ocally owned, offering low%cost products with a wide selection of
discontinued fabrics and only a limited number of =current= fabrics. This warehouse concept
offers marginal client service with what many =upper end= clients consider to be an
=undesirable= shopping environment.
6o!nn$s3 Aationwide chain with strong buying power. They have a broad fabric selection
for clothing with a limited number of in%store decorator fabrics available. Their primary
target markets are the clothing seamstress, with an increasing emphasis on craft items.
<ow prices are fabric main point of competitive differentiation.
:ebsite 4roviders3 7abric sales over the :eb are limited at this time, and this will be a
source of competition for the future to watch. Currently, there is no measurable impact on
our market through competitive websites.
Cata"o( Competitors
!n increasing level of competition is anticipated from catalog sales. ecent trends, such as
those demonstrated in the well established but evolving 4ottery Barn catalog, indicates
increased interest in offering decorator fabric, window designs, and other home decorating
products through this increasingly popular channel of distribution. Catalog sources do not offer
clients the option to see, touch, and have the fabric in their homes. 4rice is the most significant
competitive factor this product source presents. The most aggressive catalog competitor is
Calico Corners followed by Pottery Barn and other home%accessory%based providers.
$iscounters
Channels of distribution continue to shift in favor of discounters, who account for a significant
portion of the growth in the industry. !s consumers e'perience lower levels of disposable
income, discounters leverage frequent store promotions to entice frugal, value%oriented
consumers. >ne of the biggest criticism of discounters is their failure to offer a quality service
e'perience and their failure to present inviting displays to promote sales. These discounters,
along with specialty store chains, present one of the most severe competitive threats for
individually%owned specialty stores. This is partially due to e'tensive promotional efforts, price
advantages, and established relationships with their vendors. >ne e'ample of these discounters
is the =home improvement= chains, such as 9ome Base. This aggressive retailer has adopted a
strategy to include complete decorator departments in their metropolitan stores. Currently
e'isting in the <os !ngeles market, this strategy is anticipated to be introduced into the 5eattle
area and other select metropolitan markets within the year. !lthough the Boulder 9ome Base
store sells basic curtain rod hardware and other hard cover window treatment, there are no
known plans at this time for the Boulder 9ome Base store to implement this in the foreseeable
future. This will be an important issue to monitor for competitive purposes.
'.3.' *usiness #articipants
Industry participants in the area of interior design comes from si' general categoriesH interior
designers, traditional furniture stores, traditional fabric retail stores, catalog and :eb%based
sales, click and mortar discounters, and individually owned stores. @ost of these players have
some type of an online presence. The following provides an overview of the type of participants
that are most active and most successful in this arena.
0nterior $esi(ners
This large group makes up a substantial quantity of higher%end fabric purchases. 7or e'ample,
there are ,- interior designers listed in the Boulder Gellow 4ages CGear /##"%/##/ issueD that
offer fabric as a part of their services. Interior designers make profit off mark%up of fabric in
addition to their hourly services charges. Their costs per yard are typically higher since they do
not benefit from retail or volume discounts. Therefore, their costs to the client is often two to four
times higher than the price per yard from Barton Interiors. It is unusual to find an independent
interior designer that has a website.
+raitiona" !abric /etai" Stores
The traditional retail stores are corporate stores Cnot franchisesD that have multiple locations in
select metropolitan markets. 2'ample of these stores include3
6o!nn$s www.&oanns.com % Aationwide chain with strong buying power. They have a
broad fabric selection for clothing with a limited number of in%store decorator fabrics
available. Their primary target markets are the clothing seamstress, with an increasing
emphasis on craft items. 6o!nn$s purchased the 9ouse of 7abric chain and has a link set
up from the previous E< www.houseoffabrics.com.
Calico Corners www.calicocorners.com % This national chain was a franchise through the
"B+#s Cno longer selling licensesD and has been purchasing those stores throughout the
country. Calico Corners stores number about B# and are in most larger cities, with a
concentration in the Aortheast.
Catalog and :eb%based Competitors
Firtually every catalog and ma&or retail store in the industry now has a website. The most
aggressive and direct catalog competitor is Calico Corners at www.calicocorners.com which
complements their +#I retail store network. !n increasing level of competition is anticipated
from these catalog and :eb%based sales. ecent trends, such as those demonstrated in the
well established, but evolving, 4ottery Barn catalog at www.potterybarn.com and Ballard 8esign
at www.ballarddesigns.com indicates increased interest in offering decorator fabric for window
design and upholstery through this increasingly popular channel of distribution.
C"ic% an Mortar $iscounters
Channels of distribution continue to shift in favor of discounters, who account for a significant
portion of the growth in the industry and who have been e'tremely active on the :eb. !s
consumers e'perience lower levels of disposable income, discounters leverage frequent store
promotions to entice frugal, value%oriented consumers. >ne of the biggest criticism of
discounters is their failure to offer a quality service e'perience and their failure to present
inviting displays to promote sales. >ne e'ample of these discounters is the =home
improvement= chains, such as 9ome Base at www.homebase.com. This aggressive retailer has
adopted a strategy to include complete decorator departments in their metropolitan stores.
Currently e'isting in the <os !ngeles market, this strategy is anticipated to be introduced into
the 5eattle area and other select metropolitan markets within the year. !lthough the Boulder
9ome Base store sells basic curtain rod hardware and other hard cover window treatment, there
are no known plans at this time for the Boulder 9ome Base store to implement this in the
foreseeable future. Bed, Bath J Beyond at www.bedbathandbeyond.com has an even larger
assortment of hardware with a selection of pre%made solutions for window treatments, bedding
and pillows. Both of these retailers have stores in our market and with selection activity on the
:eb, this will be important to monitor for competitive purposes.
0niviua""y Owne Stores
5ome form of locally owned stores e'ist in virtually every market with a population of over
.#,###. Typically, the low end begins with those that carry a limited selection of decorator fabric,
often with a focus on clothing fabric and crafts. !t a slightly more sophisticated level, stores may
offer low%cost products with a wide selection of discontinued fabrics and only a limited number
of =current= fabrics. =7ull service= individually owned stores, like Barton Interiors, are less
prevalent. !n increasing number of these stores at all level do have websites, including this
local competitor e'ample3 www.econosales.com.
Strate(y an 0mp"ementation Summary
The primary sales and marketing strategy for Barton Interiors includes these factors3
! premier interior design consulting e'perience that provides impressive client service
throughout.
The sale of other complementary products that adds value for the client$s total
e'perience.
4roviding a e'perience that will result in repeat business for home and?or office needs
and client referrals.
This strategy will be implemented through the tactics and programs described in this section.
1.1 S2O+ &na"ysis
The following 5:>T analysis captures the key strengths and weaknesses relating to the market
analysis summary and describes the opportunities and threats facing Barton Interiors.
Stren(ths
The proven ability to establish e'cellent personalized client service.
5trong relationships with suppliers that offer fle'ibility and respond to special product
requirements.
0ood referral relationships with architects, complementary vendors, and local realtors.
Client loyalty developed through a solid reputation among repeat, high%dollar purchase
clients.
2ea%nesses
The owner is still climbing the =retail e'perience learning curve.=
Aot established in a market where a variety of interior design options e'ist.
Challenges of the seasonality of the business.
Opportunities
! significant portion of our target market is desperately looking for the services Barton
Interiors will offer.
5trategic alliances offering sources for referrals and &oint marketing activities to e'tend
our reach.
4romising activity from new home construction activity.
Changes in design trends can initiate home updating and, therefore, generate sales.
+hreats
Continued price pressure due to competition or the weakening market reducing
contribution margins.
8ramatic changes in design, including fabric colors and styles can present challenges to
keep paced with what is desired by what is e'pected to be a leading%edge client base.
2'pansion of products and services offered by other sources including national discount
stores into the local market including Target, :al%@art, and 9ome 8epot.
Catalog resources, including Calico Corners and 4ottery Barn, with aggressively priced
trend%setting fabric products including drapery, bedding and slipcovers.
This analysis indicates solid potential success, but the weaknesses and threats must be
recognized throughout the life of the venture.
1.2 Strate(y #yrami
The following three strategies summarize our implementation process for the upcoming year.
They address in%store retail revenue, e'pansion to non%fabric revenue sources, and :eb%based
sales activities.
S+/&+E)3 41 5 )eneratin( /e.erra"s
Tactic K"! % Build a client base through leveraging e'isting contacts from former clients of the
architecture firm.
Tactic K"B % Build a referral network through professional contacts. >ffer special order fabric
that will arrive in reasonable time frame and enable to provide something very unique for each
customer.
4rogram K"! % 4ress release in the local paper announcing the business is open.
4rogram K"B % >ffer seminars through organizations to promote the concept of using an
interior designer and using Barton Interiors.
S+/&+E)3 42 5 #rouct Sa"es
Tactic K/! % 4romotion of products available through Barton Interiors.
4rogram K/! % 5eminars and demonstration promotions.
4rogram K/B % Cross selling activities with home and office consulting.
Tactic K/B % 4romotion of art and antiques.
4rogram K/C % 8emonstrate the unique qualities they offer to promote these higher
dollar transactions.
4rogram K/8 % 8isplay this through the online and notebook portfolio.
S+/&+E)3 43 5 )enerate &wareness +hrou(h the 2ebsite
Tactic K,! % Better facilitate and communicate Barton Interiors services and product through
the website.
4rogram K,! % 8esign of www.bartoninteriors.com.
4rogram K,B % Integration of completed client work.
Tactic K,B % @onthly assessment of performance of email inquiries.
4rogram K,C % 2stablish goals of the program Cefer to :eb 5trategy 4lan done in :eb
5trategy 4roD.
4rogram K,8 % 2valuate the client work initiated through the site.
1.3 6a"ue #roposition
Barton Interiors offers the highest interior design e'perience for the home and office
conveniently available for those in the Boulder area. The concept is unique through the
selection of antiques, home accessories, and complementary products along with the interior
design consulting e'perience.
1.' Competitive E(e
Barton Interiors will be differentiated from other interior designers by the value it offers in quality,
sought%after products not found through other designers or store choices, and through the
e'cellent service and support it offers. Client follow%through will be impeccable. This
competitive edge leverages the same proven factors that indicated higher success rates for
interior design services.
1.1 Mar%etin( Strate(y
The marketing strategy is based on establishing Barton Interiors as the resource of choice for
people in need of interior design ideas and products. The more involved =do%it%yourself= and the
=buy%it%yourself= clients will find the consulting and guidance helpful. >n the other end of the
spectrum, the =&ust%get%it%done= client will find Barton will successfully accomplish e'actly that.
!ll clients will find Barton Interiors to be a resources to decorate their homes and offices in a
way that is inspiring, inviting, and motivating.
>ur marketing strategy is based on superior performance in the following areas3
Enique consulting services.
4roduct choices specifically chosen for each individual client pro&ect.
>verall quality of the e'perience and the result.
2'cellent client service and support regardless.
This marketing strategy will create awareness, interest, and appeal from our target market for
what Barton Interiors offers our clients. This will be e'ecuted in a manner that will entice them
to come back for repeat purchases and encourage them to refer friends and professional
contacts.
1.1.1 #ricin( Strate(y
4roduct pricing is based on offering high value to our clients compared to others in the market.
Falue is determined based on the best design services, providing a =picture= of what the space
will look like before the work begins, convenience, and timeliness in accomplishing the goal.
1.1.2 #romotion Strate(y
The promotion strategy will focus on generating referrals. >ther potential sources of promotion
include3
,ewspaper &vertisements- 5elect advertisements in the Boulder 9erald.
+e"evision &vertisements- 5elect =@artha 5tewart= and =Interior @otives=
local television shows.
7uarter"y #ostcar- ! direct mail postcard distributed to the client mailing list.
2ebsite- Traffic from www.bartoninteriors.com.
1.1.3 $istribution Strate(y
The primary source of distribution is through the tradition retail distribution channel. >n a
secondary basis, it will be through the website via email inquiries and phone sales, or directly
from the site itself.
1.1.' Mar%etin( #ro(rams
The single ob&ective is to position Barton Interiors as the premier source for home decorator
fabrics in the Boulder area, commanding a ma&ority of the market share within three years. The
marketing strategy will seek to first create client awareness regarding the products and services
offered, develop that client base, establish connections with targeted markets and work toward
building client loyalty and referrals.
*arton 0nteriors8 .our main mar%etin( strate(ies are-
". Increased awareness and image.
/. <everaging e'isting client base.
,. Cross selling.
). Aew home construction promotion.
The strategies will be implements through the following marketing tactics and programs.
Strate(y 41
IAC2!528 !:!2A255 and I@!02 % n!orming those not yet aware o! what Barton
nteriors o!!ers"
!dvertising
o @artha 5tewart.
o Interior @otives.
eferral 0eneration
o ealtor =open house= promotions.
o Complementary vendor referrals.
Imperial 7loors.
Epholstery resources.
=8esign Time= Interior 8esign.
/-th 5treet 7abrics.
>rganization elationships
o Co%sponsorship of fund raising activities.
o 4articipating in social and service events.
Strate(y 42
<2F2!0IA0 2LI5TIA0 C<I2AT B!52 % #$r %est sales in the !$t$re will come !rom o$r
c$rrent client %ase"
Client 5ervice and elationships
o 2'ceptional client service in the store.
o 7ollow up contact.
o 4ersonal shopper support.
!dditional 2'periences
o Classes.
o 8emonstrations.
Strate(y 43
C>55 52<<IA0 % ncreasing the average dollar amo$nt per transaction"
Internal
o !dditional sales of furniture, art pieces, and fabric and home accessories.
o <ook for office?commercial assignments.
4rospecting
o >ngoing work including more involvement in the implementation phase.
o 7uture assignments based on additional work initiated by family changes and
transitions.
Strate(y 4'
A2: 9>@2 C>A5TECTI>A 4>@>TI>A % Connecting with people involved in the %$ilding
process"
Connecting with =5uppliers=
o ealtors gift certificate program.
o Builders design support services.
o <oan >fficers gift certificate program.
Connecting with =Clients=
o 5ubscription and use of =newcomers= report.
o Chamber of Commerce new members update.
1.1.1 #ositionin( Statement
7or the person that seeks to create a personalized and unique impression of her home, Barton
Interiors is the source for client%oriented design services. Clients will be impressed with, and
return for, the services they receive and the outcome they have en&oyed. Enlike other interior
designers or stores, such as 6o!nn$s, :arehouse 7abric, or catalog options, Barton Interiors is
a pleasant and tasteful resource that encourages everyone in the process of decorating their
home. Enlike using the services of other interior decorators, Barton Interiors allows the
individual to participate in their design choices to the e'tent they choose, and realize greater
value for the dollars they invest.
1.9 Sa"es Strate(y
The key to our sales strategy is referrals from pleased clients that are proud of the result Barton
Interiors provided them and pleased to tell their friends%%people much like them. ;eeping in
contact with past clients to acquire repeat business and to remind them of this referral
opportunity will be key. 5ales activities will depend on creating awareness about the services
Barton Interiors offers and then build on each and every client as they make the decision to
refer to others.
1.9.1 2eb #"an Summary
The website of www.bartoninteriors.com will be used for information only purposes at this time.
Contact information will be presented with a complete portfolio of work accomplished.
!dditional information will be provided regarding the product%based resources Barton Interiors
incorporates into the work done for clients.
1.9.2 Sa"es !orecast
The sales forecast is broken down into three main revenue streamsH residential consulting
revenue, commercial consulting revenue, and product sales. The goal is to have these two
revenue streams be equal by the second year, with product sales slower to secure during year
one. The revenue forecast for the upcoming year is based on a modest "/1 growth rate. The
economic unpredictability adds to the difficulty of making these pro&ections.
Sa"es !orecast
Gear " Gear / Gear ,
5ales
esidential Consulting (//,-## (,",/## ()*,###
Commercial Consulting (,,B*# (*,/)# (-,/##
4roduct 5ales ("B,+## (,",/## ()*,###
>ther (# (# (#
Total 5ales ()*,)*# (*+,*)# (BB,/##
8irect Cost of 5ales Gear " Gear / Gear ,
esidential Consulting (,,)#. (),*+# (*,B##
Commercial Consulting (.B) (B,* (",#+#
4roduct 5ales ("#,+B# ("-,"*# (/.,,##
>ther (# (# (#
5ubtotal 8irect Cost of 5ales ("),++B (//,--* (,,,/+#
1.9.3 Sa"es #ro(rams
In brief, our marketing mi' is comprised of these approaches to pricing, distribution, advertising
and promotion, and client service.
#ricin( % esidential consulting will bill at an average of (B# per hour and commercial
consulting at ("## per hour.
$istribution % !ll services and products will be distributed directly through the personal contact.
&vertisin( an #romotion % The most successful advertising is anticipated to be through the
Boulder 9erald and through ads on local broadcasts of the =@artha 5tewart= and =Interior
@otives= television shows.
C"ient Service % 2'cellent, personalized, fun, one%of%a%kind client service is essential. This is
perhaps the only attribute that cannot be duplicated by any competitor.
The first goal is to recognize individualized needs of each client. If they are a repeat client, they
benefit from the knowledge regarding their lifestyle and taste that was gained from the previous
e'perience.
1.: Strate(ic &""iances
Barton Interiors does have some dynamic alliances. Based on initial research and contacts,
several architect firms are willing to refer clients to Barton Interiors, including 6ill$s e'isting
employer, 0ibson J 5awyer, <<C. >ther alliances include a retail store called =4rovidance=
which focuses on gallery%type pieces for the home and office and is e'pected to refer clients.
There is also a positive relationship with =Interior 7abricators= and this business is e'pected to
be a referral resource. 5trategic online alliances do not e'ist at this time. This will be an area of
concentrated development for the future and is reflected in our milestone chart.
1.; Mi"estones
The milestone chart below accompanied by the graphic outlines key activities that will be critical
to Barton Interiors$ success in the coming year.
Mi"estones
@ilestone 5tart 8ate 2nd 8ate Budget @anager 8epartment
Gear Buying 4rogram "?/?/##/ "?,#?/##/ (.*# 6ill 4roducts
@embership 5trategy /?/?/##/ /?".?/##/ (//. 6ill 4romotions
5eminar 5chedule J
4rep.
,?"?/##/ )?"?/##/ (). 6ill @arketing
5eminars )?"?/##/ .?,#?/##/ (.)# 6ill @arketing
Client eview?!nalysis *?"?/##/ *?".?/##/ (/.# 6ill @arketing
7urniture @arket C9igh
4oint, A.C.D
""?"#?/##/ ""?/#?/##/ (",+## 6ill 4roducts
Gear 2nd 2valuation "/?/#?/##/ "/?,"?/##/ (/.# 6ill J C4! @anagement
Totals (,,*-#
Mana(ement Summary
6ill Barton is the founder and owner of Barton Interiors. 6ill received a Bachelor of !rts degree
from the Eniversity of >regon in "BB# through the College of !rchitecture and Interior 8esign
and is !5I8 certified. !fter working for three years at a prestigious interior design firm in
4ortland, >regon, she moved to Boulder in "BB, and began working with 0ibson J 5awyer,
<<C, a well%established architecture firm focusing on the commercial sector. 6ill worked with the
architects in the interior design needs for their pro&ects. 8uring this time, she has developed
relationships with a number of community, professional, and supplier contacts throughout the
Boulder and 0reater 8enver area. 6ill plans to leave the firm on favorable terms at the end of
the year.
:ith her new role at Barton Interiors, 6ill will oversee all aspects of the design process and all
business operations. 6ill$s responsibilities include all aspects of establishing the business,
marketing, buying, bookkeeping and financial dealings.
9.1 Or(ani<ationa" Structure
The organization structure is simplistic. 6ill manages all employees and professional contacts,
and will be interfacing with more than "/ account e'ecutives?vendors. 6ill will determine
resources requirements and monitor e'penses for all aspects of the firm.
9.2 #ersonne" #"an
6ill will act as a sole proprietor without employees at this point. Contract labor may required for
upholstery and fabrication purposes, but that will be included in the cost of good for each client$s
pro&ect. 6ill$s salary will begin at a modest (",/## per month, increase quarterly, and then is
pro&ected at (/,)## per month for year two and (,,### for year three.
#ersonne" #"an
Gear " Gear / Gear ,
6ill Barton ("B,+## (/+,+## (,*,###
>ther (# (# (#
Total 4eople # # #
Total 4ayroll ("B,+## (/+,+## (,*,###
!inancia" #"an
The initial funding of (/.,### will be invested by the owner. The goal is to fund the growth of
the business from its earnings. The financial plan contains these essential factors3
". ! growth rate in sales of )-1 for the year /##/ and ".1 for /##,.
/. !n average sales per month that increases each year, averaging (,,+-# in the first year,
(.,-/# the second, and (*,*## in the third year.
,. Continue to fund the growth of the business from the revenues it generates.
!inancia" i..icu"ties an ris%s
5low sales resulting in less%than%pro&ected cash flow.
Ene'pected and e'cessive cost increases compared to the planned e'penses.
>verly aggressive and debilitating actions by competing designers.
! parallel entry by a new competitor further diminishing revenue generation potential.
2orst case ris%s mi(ht inc"ue
8etermining the business cannot support itself on an ongoing basis.
8ealing with the financial, business, and personal devastation of the venture$s failure.
5urvivable but painful.
:.1 *rea%5even &na"ysis
The break%even analysis below is e'pressed as a per%client unit. This is based on average
hourly billing, product sales, and costs per transaction.
*rea%5even &na"ysis
@onthly evenue Break%even (),#*-
!ssumptions3
!verage 4ercent Fariable Cost ,/1
2stimated @onthly 7i'ed Cost (/,-*,
:.2 0mportant &ssumptions
The following captured critical assumptions will determine the potential for future success.
! healthy economy that supports a moderate level of growth in the market.
The ability to support a gross margin percentage in e'cess of *.1.
;eeping operating costs low, particularly in the areas of product purchases ongoing
monthly e'penses.
eceiving an initial payment for each pro&ect of .#1 of estimated time and product
purchases and collecting the balance of these revenues within ). days of completing each
pro&ect.
)enera" &ssumptions
Gear " Gear / Gear ,
4lan @onth " / ,
Current Interest ate B..#1 B..#1 B..#1
<ong%term Interest ate +..#1 +..#1 +..#1
Ta' ate /+."-1 /+.##1 /+."-1
>ther # # #
:.3 Key !inancia" 0nicators
The key financial indicators focus on cash flow. There is virtually no inventory but late payments
for completed &obs will be a concern. Timely billing and collection will be critical. !ll e'penses
are tracked on a monthly basis, recorded in the accounting software, and will be compared to
our business plan budget.
:.' Start5up Summary
The following details the initial start%up e'penses for Barton Interiors. @ost equipment costs are
office related. 5ample and display costs include books, samples and resources necessary to
promote furniture, fabric and other home accessory products.
Start5up
equirements
5tart%up 2'penses
<egal (.##
5tationery etc. (+.#
Brochures ()/#
Consultants ().#
Insurance (".#
5amples and eference Books (,,/.#
esearch and development (+##
2'pensed equipment (),/.#
>ther (..#
Total 5tart%up 2'penses ("",//#
5tart%up !ssets
Cash equired (B,-+#
>ther Current !ssets (",###
<ong%term !ssets (,,###
Total !ssets (",,-+#
Total equirements (/.,###
Start5up !unin(
5tart%up 2'penses to 7und ("",//#
5tart%up !ssets to 7und (",,-+#
Total 7unding equired (/.,###
!ssets
Aon%cash !ssets from 5tart%up (),###
Cash equirements from 5tart%up (B,-+#
!dditional Cash aised (#
Cash Balance on 5tarting 8ate (B,-+#
Total !ssets (",,-+#
<iabilities and Capital
<iabilities
Current Borrowing (#
<ong%term <iabilities (#
!ccounts 4ayable C>utstanding BillsD (#
>ther Current <iabilities Cinterest%freeD (#
Total <iabilities (#
Capital
4lanned Investment
6ill Barton (/.,###
Investor / (#
>ther (#
!dditional Investment equirement (#
Total 4lanned Investment (/.,###
<oss at 5tart%up C5tart%up 2'pensesD C("",//#D
Total Capital (",,-+#
Total Capital and <iabilities (",,-+#
Total 7unding (/.,###
:.1 #rojecte #ro.it an Loss
The following represents the pro&ected profit and loss for Barton Interiors based on sales and
e'pense pro&ections for /##/ through /##).
#ro !orma #ro.it an Loss
Gear " Gear / Gear ,
5ales ()*,)*# (*+,*)# (BB,/##
8irect Cost of 5ales ("),++B (//,--* (,,,/+#
>ther (# (# (#
Total Cost of 5ales ("),++B (//,--* (,,,/+#
0ross @argin (,",.-" ().,+*) (*.,B/#
0ross @argin 1 *-.B.1 **.+/1 **.).1
2'penses
4ayroll ("B,+## (/+,+## (,*,###
5ales and @arketing and >ther 2'penses ("",.*# (",,),# (".,"##
8epreciation (,## (-.# (+##
<eased 2quipment (# (# (#
Etilities (.)# (**# (+##
Insurance (B*# (",/## (",*##
ent (# (# (#
4ayroll Ta'es (# (# (#
>ther (# (# (#
Total >perating 2'penses (,,,"*# ()),+)# (.),,##
4rofit Before Interest and Ta'es C(",.+BD (",#/) ("",*/#
2BIT8! C(",/+BD (",--) ("/,)/#
Interest 2'pense (# (-* (/,+
Ta'es Incurred (# (/*. (,,/#*
Aet 4rofit C(",.+BD (*+, (+,"-*
Aet 4rofit?5ales %,.)/1 #.BB1 +./)1
:.9 #rojecte Cash !"ow
The cash flow pro&ections are outlined below. These cash flow pro&ects are based on our
basic assumptions and e'pense and revenue pro&ections.
#ro !orma Cash !"ow
Gear " Gear / Gear ,
Cash eceived
Cash from >perations
Cash 5ales (,/,.// ()+,#)+ (*B,))#
Cash from eceivables (B,.-+ ("+,."" (/*,+B/
5ubtotal Cash from >perations ()/,"## (**,..B (B*,,,/
!dditional Cash eceived
5ales Ta', F!T, 95T?05T eceived (# (# (#
Aew Current Borrowing (# (",*## (",+##
Aew >ther <iabilities Cinterest%freeD (# (# (#
Aew <ong%term <iabilities (# (# (#
5ales of >ther Current !ssets (/"# (# (#
5ales of <ong%term !ssets (# (# (#
Aew Investment eceived (# (# (#
5ubtotal Cash eceived ()/,,"# (*+,".B (B+,",/
2'penditures Gear " Gear / Gear ,
2'penditures from >perations
Cash 5pending ("B,+## (/+,+## (,*,###
Bill 4ayments (/),*B, (,+,.#* (./,B/)
5ubtotal 5pent on >perations ()),)B, (*-,,#* (++,B/)
!dditional Cash 5pent
5ales Ta', F!T, 95T?05T 4aid >ut (# (# (#
4rincipal epayment of Current Borrowing (# (# (#
>ther <iabilities 4rincipal epayment (# (# (#
<ong%term <iabilities 4rincipal epayment (# (# (#
4urchase >ther Current !ssets (# (# (#
4urchase <ong%term !ssets (# (# (#
8ividends (# (# (#
5ubtotal Cash 5pent ()),)B, (*-,,#* (++,B/)
Aet Cash 7low C(/,"+,D (+./ (B,/#B
Cash Balance (-,.B- (+,))B ("-,*.+
:.: #rojecte *a"ance Sheet
Barton Interiors$ balance sheet is outlined below.
#ro !orma *a"ance Sheet
Gear " Gear / Gear ,
!ssets
Current !ssets
Cash (-,.B- (+,))B ("-,*.+
!ccounts eceivable (),,*# (*,))" (B,,#+
>ther Current !ssets (-B# (-B# (-B#
Total Current !ssets ("/,-)- (".,*+# (/-,-.-
<ong%term !ssets
<ong%term !ssets (,,### (,,### (,,###
!ccumulated 8epreciation (,## (",#.# (",+.#
Total <ong%term !ssets (/,-## (",B.# (",".#
Total !ssets (".,))- ("-,*,# (/+,B#-
<iabilities and Capital Gear " Gear / Gear ,
Current <iabilities
!ccounts 4ayable (,,/.* (,,".- (),).-
Current Borrowing (# (",*## (,,)##
>ther Current <iabilities (# (# (#
5ubtotal Current <iabilities (,,/.* (),-.- (-,+.-
<ong%term <iabilities (# (# (#
Total <iabilities (,,/.* (),-.- (-,+.-
4aid%in Capital (/.,### (/.,### (/.,###
etained 2arnings C("",//#D C("/,+#BD C("/,"/*D
2arnings C(",.+BD (*+, (+,"-*
Total Capital ("/,"B" ("/,+-) (/",#.#
Total <iabilities and Capital (".,))- ("-,*,# (/+,B#-
Aet :orth ("/,"B" ("/,+-) (/",#.#
:.; *usiness /atios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
5tandard Industrial Classification C5ICD code -,+B, Business 5ervices%%Interior 8esign 5ervices,
are shown for comparison. If we fail in any of these areas, we will need to re%evaluate our
business model3
0ross margins at, or above, *.1.
@onth%to%month and annual increases to meet the e'pected growth requirements.
5elf%fund growth not dependant on the credit line to meet cash requirements.
/atio &na"ysis
Gear " Gear / Gear , Industry 4rofile
5ales 0rowth #.##1 )-.-)1 ))../1 "/.)#1
4ercent of Total !ssets
!ccounts eceivable /+.//1 ,*..,1 ,/./#1 /*."#1
>ther Current !ssets ..""1 ).)+1 /.-,1 )).-#1
Total Current !ssets +/../1 ++.B)1 B*.#/1 -)..#1
<ong%term !ssets "-.)+1 "".#*1 ,.B+1 /...#1
Total !ssets "##.##1 "##.##1 "##.##1 "##.##1
Current <iabilities /".#+1 /*.B+1 /-."+1 )).,#1
<ong%term <iabilities #.##1 #.##1 #.##1 "*.##1
Total <iabilities /".#+1 /*.B+1 /-."+1 *#.,#1
Aet :orth -+.B/1 -,.#/1 -/.+/1 ,B.-#1
4ercent of 5ales
5ales "##.##1 "##.##1 "##.##1 "##.##1
0ross @argin *-.B.1 **.+/1 **.).1 #.##1
5elling, 0eneral J !dministrative
2'penses
-,.B*1 *..-/1 ,+.*"1 +#.+#1
!dvertising 2'penses "*.,*1 "/./)1 "".,*1 ".,#1
4rofit Before Interest and Ta'es %,.)/1 ".)B1 "".-"1 /./#1
@ain atios
Current ,.B/ ,.,# ,.., ".-.
Muick ,.B/ ,.,# ,.., ".,+
Total 8ebt to Total !ssets /".#+1 /*.B+1 /-."+1 *#.,#1
4re%ta' eturn on Aet :orth %",.#,1 -.,*1 .).#-1 ,.+#1
4re%ta' eturn on !ssets %"#./B1 ..,+1 ,B.,+1 B.-#1
!dditional atios Gear " Gear / Gear ,
Aet 4rofit @argin %,.)/1 #.BB1 +./)1 n.a
eturn on 2quity %",.#,1 ..,#1 ,+.+)1 n.a
!ctivity atios
!ccounts eceivable Turnover ,./# ,./# ,./# n.a
Collection 8ays .. B* B- n.a
!ccounts 4ayable Turnover +..+ "/."- "/."- n.a
4ayment 8ays /- ,# /* n.a
Total !sset Turnover ,.#" ,.+B ,.), n.a
8ebt atios
8ebt to Aet :orth #./- #.,- #.,- n.a
Current <iab. to <iab. ".## ".## ".## n.a
<iquidity atios
Aet :orking Capital (B,)B" ("#,B/) ("B,B## n.a
Interest Coverage #.## ",.)- )+.B, n.a
!dditional atios
!ssets to 5ales #.,, #./* #./B n.a
Current 8ebt?Total !ssets /"1 /-1 /-1 n.a
!cid Test /..+ ".B) /.,. n.a
5ales?Aet :orth ,.+" ..,, ).-" n.a
8ividend 4ayout #.## #.## #.## n.a
&ppenix
Sa"es !orecast
@onth
"
@onth
/
@onth
,
@onth
)
@onth
.
@onth
*
@onth
-
@onth
+
@onth
B
@onth
"#
@onth
""
@onth
"/
5ales
esidential
Consulting
#1 (+## (B## (",### (",/## (",)## (",*## (",+## (/,### (/,)## (/,+## (,,/## (,,*##
Commercial
Consulting
#1 (# (# (# (/)# (/+# (,/# (,*# ()## ())# (.*# (*)# (-/#
4roduct
5ales
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Current
<iabilities
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<iabilities
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