Scrapbooking business plan for starting your own business
Do you want to start a scrapbooking business? Well, the business can be the best choice for you provided you have the temperament for it. The business involves creating and selling scrapbooks and accessories to customers so that they could record their life events in it.
To start this business, you’d first have to explore how to start a scrapbooking business. Then, you’ll have to make a scrapbook business plan. To assist you with this step, we’re providing business plan online of a scrapbooking startup, Scrap It.
Executive Summary
2.1 The Business
Scrap It will be a scrapbook store located in Maryland. The business will sell scrapbooks along with some other accessories. The business will be operating both in-store and online.
2.2 Management of scrapbooking business
If you are starting a scrapbooking business on a small scale such as in one location and one store, the management can be fairly easy.
However, if you start on a mass scale, at multiple locations, or if you offer diverse services in the domain, the management can give you a tough time. In both cases, to ensure that you generate profit as soon as you start a scrapbook business, you need to have an efficient management plan.
For your help, we’re providing scrapbook business plan sample. However, it is recommended to not experiment with making a business plan and hire business plan professional services even if you are starting scrapbooking business from home.
2.3 Customers of the scrapbooking business
The following groups are expected to be the customers of Scrap It.
- Teens & Pre-Teens
- Parents
- Seniors
- Company Employees
2.4 Business Target
Our business targets are to achieve set levels of customer satisfaction scores and average ratings. Our financial targets for the first three years of the launch are demonstrated in this graph.
Company Summary
3.1 Company Owner
Scrap It will be owned by Gracie Adler. Gracie is an MBA from a prestigious business institute. After working for 2 years in a management position, she decided to launch her own business.
3.2 Why the scrapbooking business is being started
Gracie has a very pleasant nature and she decided to open a scrapbook store to earn money while doing a simple business. Initially she looked for starting scrapbooking home business or online scrapbooking business. But later seeing analyzing the returns of starting a scrapbook store in a physical location, she decided to go for it.
3.3 How the scrapbooking business will be started
Step1: Research
If you don’t know how to start a scrapbook business, you must first study other scrapbooking businesses and research how they started and operated. Your research must also cover the areas such as how many financial resources will be needed, how much gains you would be getting in return etc.
Step2: Get a Business Plan
The next step is to get a detailed and in-depth business plan for your startup. To make one on your own, you need experience and expertise in the domain. Otherwise, it would be best to have it made by professional writers.
Step3: Market Your Startup
You must explore ways to market and advertise your products. For successful advertisement techniques you can also study business plan for gifts baskets or painting studio business plan.
Step4: Be Present on the Web
Next, you have to ensure a strong web presence. It will help you boost both online and offline sales as more and more people would be able to know about you.
Step5: Recruit and Start
Last, you have to make a list of required personnel and hire them to start executing your ideas regarding the business.
| Start-up Expenses | |
| Legal | $136,300 |
| Consultants | $0 |
| Insurance | $25,100 |
| Rent | $33,600 |
| Research and Development | $10,000 |
| Expensed Equipment | $52,200 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $260,600 |
| Start-up Assets | $213,400 |
| Cash Required | $136,000 |
| Start-up Inventory | $35,100 |
| Other Current Assets | $236,000 |
| Long-term Assets | $211,300 |
| TOTAL ASSETS | $831,800 |
| Total Requirements | $1,092,400 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $260,600 |
| Start-up Assets to Fund | $831,800 |
| TOTAL FUNDING REQUIRED | $1,092,400 |
| Assets | |
| Non-cash Assets from Start-up | $1,080,300 |
| Cash Requirements from Start-up | $113,600 |
| Additional Cash Raised | $52,000 |
| Cash Balance on Starting Date | $31,300 |
| TOTAL ASSETS | $1,277,200 |
| Liabilities and Capital | |
| Liabilities | $18,360 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $63,600 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $81,960 |
| Capital | |
| Planned Investment | $1,092,400 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,092,400 |
| Loss at Start-up (Start-up Expenses) | $102,840 |
| TOTAL CAPITAL | $1,195,240 |
| TOTAL CAPITAL AND LIABILITIES | $1,277,200 |
| Total Funding | $1,092,400 |
Services of scrapbooking business
Before starting a scrapbook business you should study some home based scrapbooking businesses and others to find out the services they provide. In this way, you would be able to explore scrapbooking business opportunities.
In this blog on how to start a scrapbooking business from home, we are listing the services provided by Scrap It.
- Scrapbooks & Accessories
Our major product will be scrapbooks and the things that are required to use them. We all provide scrapbooks of all types such as those with sheet protectors, ring blinders, and creative boxes and artwork.
- Diaries
We’ll also offer personalized and DIY diaries that could be used for academic and non-academic use.
- Stationery
We’ll also sell stationery items ranging from pens and pencils to notebooks.
- Gifts
Our customers will also find a range of gift products at us such as customizable mugs, keychains, cards, etc.
Marketing Analysis of scrapbooking business
If you have completed your research on how to start a scrapbook store it’s time to move to the next parts. What you need to do now for starting a digital scrapbooking business is carrying out market analysis. This includes gathering facts and figures of the scrapbooking businesses to know where you stand. The market analysis is essential to perform even when you are launching a home scrapbooking business.
5.1 Market Trends
The market demand for scrapbooking stores in the US is booming. It is because, after the advent of technology, many people find it hard to find any activity that is not to be performed on screen. Scrapbooks are thus, good to go for people belonging to all age groups.
5.2 Marketing Segmentation
If you are looking for how to start a scrapbook business from home you must first think about the groups that would be your customers. It is because your direction of business might change with your customer groups.
In this blog on how to start a digital scrapbooking business, we are providing the market segmentation done for Scrap It. The customer groups identified are almost the same as those in gift shop business plan or pet photography business plan.
5.2.1 Teens & Pre-Teens
The first group of our target customers comprises teens and pre-teens who may want to buy scrapbooks to record their daily lives. Most of them also raise pets and thus they would also be buying scrapbooks to preserve their pet memories.
5.2.2 Parents
The second group of target customers comprises parents. They are expected to use our scrapbooks to record the moments and memories of their kids.
5.2.3 Seniors
Seniors usually tend to find hobbies and activities that do not require working with technology. Therefore, they will also procure our products.
5.2.4 Company Employees
The last category of our target customers includes people working in offices and companies. They are expected to purchase scrapbooks to document events from their job routine.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Teens | 33% | 41,100 | 49,320 | 59,184 | 71,021 | 85,225 | 10.00% |
| Parents | 31% | 36,600 | 43,920 | 52,704 | 63,245 | 75,894 | 10.00% |
| Seniors | 21% | 21,130 | 25,356 | 30,427 | 36,513 | 43,815 | 10.00% |
| Employees | 15% | 16,110 | 19,332 | 23,198 | 27,838 | 33,406 | 11.00% |
| Total | 100% | 114,940 | 137,928 | 165,514 | 198,616 | 238,340 | 10% |
5.3 Business Target
Setting attainable, measurable, and specific goals for your business helps you direct your business operations towards achieving those goals. In this blog on how to start an online scrapbook store, we’re listing the business targets set by Scrap It.
- Expand our sales by 20% each year.
- Maintain an average rating of more than 4.5 on all online platforms.
- Become the leading name in Maryland among all scrapbooking stores.
5.4 Product Pricing
Our prices are almost in the same range as others in the same business. Our business monetization model is based on maximizing sales to earn profits rather than increasing prices.
Marketing Strategy of scrapbooking business
After you have explored everything about how to become a professional scrapbooker it is now time to think about how to get ahead of your competitors in the business. The marketing strategy of Scrap It is provided here for your help.
6.1 Competitive Analysis
- Our scrapbooks, diaries, and other products are uniquely designed. Our creative artists have specifically focused on generating newer ideas to design scrapbooking as a business
- We are highly customer-centric and will offer professional scrapbook ideas to our customers who would want to design them from scratch on their own.
- Our discounting strategies are expected to help us get more customers.
6.2 Sales Strategy
- We’ll offer a 40% discount on our scrapbooks for the first 3 months of our launch.
- We’ll advertise our unique covers and artworks via social and electronic media.
- We’ll offer gifts with bundles of our products.
For more advertisement ideas, you may also want to read tattoo business plan and business plan for a record label.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Scrapbooks | 18,450 | 19,557 | 20,730 |
| Diaries | 15,650 | 16,589 | 17,584 |
| Stationery | 17,500 | 18,550 | 19,663 |
| Gifts | 10,250 | 10,865 | 11,517 |
| TOTAL UNIT SALES | 61,850 | 65,561 | 69,495 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Scrapbooks | $40.00 | $46.40 | $53.82 |
| Diaries | $35.00 | $40.60 | $47.10 |
| Stationery | $50.00 | $58.00 | $67.28 |
| Gifts | $75.00 | $87.00 | $100.92 |
| Sales | |||
| Scrapbooks | $738,000.00 | $907,444.80 | $1,115,794.13 |
| Diaries | $547,750.00 | $673,513.40 | $828,152.08 |
| Stationery | $875,000.00 | $1,075,900.00 | $1,322,926.64 |
| Gifts | $768,750.00 | $945,255.00 | $1,162,285.55 |
| TOTAL SALES | $2,929,500.00 | $3,602,113.20 | $4,429,158.39 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Scrapbooks | $12.00 | $13.20 | $13.86 |
| Diaries | $10.00 | $11.00 | $11.55 |
| Stationery | $12.50 | $13.75 | $14.44 |
| Gifts | $13.00 | $14.30 | $15.02 |
| Direct Cost of Sales | |||
| Scrapbooks | $221,400.00 | $258,152.40 | $287,323.62 |
| Diaries | $156,500.00 | $182,479.00 | $203,099.13 |
| Stationery | $218,750.00 | $255,062.50 | $283,884.56 |
| Gifts | $133,250.00 | $155,369.50 | $172,926.25 |
| Subtotal Direct Cost of Sales | $729,900.00 | $851,063.40 | $947,233.56 |
Personnel plan of scrapbooking business
If you are starting a scrapbook store and you want to offer professional scrapbooking services, you must have great employees at your help.
In this scrapbooking business plan we’re providing the list of staff that will be hired by Scrap It.
7.1 Company Staff
- 1 Store Operator to manage the store
- 1 Social Media Manager to manage online presence and sales
- 1 Graphic Designer to design eye-catching covers for notebooks, scrapbooks, and dairies
- 2 Artists/ Fine Arts Experts to craft unique designs
- 1 Accountant
- 1 Receptionist
- 1 Cleaner
- 2 Drivers
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Store Operator | $35,000 | $38,500 | $42,350 |
| Social Media Manager | $35,000 | $38,500 | $42,350 |
| Graphic Designer | $35,000 | $38,500 | $42,350 |
| Artists | $54,560 | $60,016 | $66,018 |
| Accountant | $22,350 | $24,585 | $27,044 |
| Receptionist | $22,350 | $24,585 | $27,044 |
| Cleaner | $22,350 | $24,585 | $27,044 |
| Drivers | $44,560 | $49,016 | $53,918 |
| Total Salaries | $271,170 | $298,287 | $328,116 |
Financial Plan of scrapbooking business
No matter how straightforward the transactions of a business seem, making a financial plan is a must. Your financial plan should be accurate and detailed to cover each of the expenses and monetary in-flow. It is only by making an accurate financial plan that you would be able to generate the required profits.
In this sample scrapbooking business plan we’re providing the financial plan of Scrap It. You can see the profit margins, balance sheet, and business ratios in this business plan scrapbooking store to gauge what your financial plan would look like. However, if you’re looking for a scrapbooking business for sale you will have to search for more info on the web.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $2,929,500 | $3,602,113 | $4,429,158 |
| Direct Cost of Sales | $729,900 | $851,063 | $947,234 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $729,900 | $851,063 | $947,234 |
| Gross Margin | $2,199,600 | $2,751,050 | $3,481,925 |
| Gross Margin % | 75.08% | 76.37% | 78.61% |
| Expenses | |||
| Payroll | $271,170 | $298,287 | $328,116 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $450,370 | $481,737 | $522,016 |
| Profit Before Interest and Taxes | $1,749,230 | $2,269,313 | $2,959,909 |
| EBITDA | $1,749,230 | $2,269,313 | $2,959,909 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $349,846 | $453,863 | $591,982 |
| Net Profit | $1,399,384 | $1,815,450 | $2,367,927 |
| Net Profit/Sales | 47.77% | 50.40% | 53.46% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| 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 | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- How do I start a scrapbooking business?
To start this business, you need to first make a scrapbook business plan. Your scrapbook store business plan should be covering every aspect to guide you through the following stages.
- How do you make money scrapbooking?
You can make money scrapbooking by selling scrapbooks as well as by offering professional ideas for scrapbooking. In this scrapbook for others business plan, you can see the services provided by Scrap It to earn money from the venture.
- How much should I charge for scrapbooking?
Depending on the type, quality of pages, and level of artwork you may charge your customers in the range of $10 to $70. However, the range isn’t fixed and you should choose prices while considering all the factors.
- Is scrapbooking still popular?
Yes! It is popular among many age groups as listed in the market segmentation section of this digital scrapbook business plan.