Pottery studio business plan for starting your own business
Do you want to start a pottery business? Well, this business is quite a perfect choice if you possess an artistic mind or if you can hire experts in this domain. The pottery business can be run in two forms. You can choose to just provide manufacturing services and sell pottery products. And you can choose to also allow people to come to your studio and enjoy doing pottery under your guidance.
In terms of yielding profits, both aspects can serve the purpose. However, what you should choose to offer from the above-mentioned options entirely depends on your resources and management skills.
In either case, the first step would be to create a pottery painting studio business plan. If you don’t know how to develop an accurate business plan for pottery studio, you can take help from here. In this sample business plan pottery studio we are providing the business plan of Ceramic Land, a startup that decided to offer both types of services to its customers.
Ceramic Studio Business Plan Summary
2.1 The Business
Ceramic Land will be a registered and licensed pottery studio business based in Austin. The business aims at providing pottery tools and space for people who may want to practice their art. Besides, the business also sells some pottery items that are in-demand in the vicinity.
2.2 Management of Pottery Studio Business
To manage a pottery studio, you will need a skilled and responsible team along with a lot of space. Moreover, you will need to make arrangements for preparing clay, heating the ceramics, and drying the sample.
To make sure that all aspects of your business are taken care of, you should develop a business plan for pottery studio. In your business plan ceramic studio, you should include the human and financial resources you’ll need to manage your business.
If you don’t know how to manage a pottery studio you can learn a lot from this sample business plan for custom pottery studio.
2.3 Customers of Pottery Studio Business
Ceramic Land identifies the following group of people as its target customers:
- Young & Adults
- Senior Citizens
- Children & Teens
- Home Decoration Stores
- Ceramic Cutlery Stores
2.4 Business Target
Our target is to become the most visited and successful pottery studio in the whole of Austin within two years of our launch. We also aim at earning a profitability margin of $28k per month by the end of the third year of our launch.
3.1 Company Owner
Emma Markel will be the owner of Ceramic Land. Emma is a graduate of Fine Arts. She is a talented woman who has 8-year-experience of working as a pottery instructor. She has got an artistic mind and is best-suited to efficiently run a pottery studio.
3.2 Why the pottery studio business is being started
Emma has always been interested in ceramic designs. When she thought of starting her own business, she couldn’t think of a more suitable option than opening a pottery studio. Through entering this venture she will be able to make profits while also serving society by engaging them in positive activity.
3.3 How the pottery studio business will be started
Step1: Create Ceramic Painting Studio Business Plan
Firstly, you will have to study some business plans ceramic studios to identify the important components of custom pottery painting studio business plan. You can take help from this pottery studio business plan example to learn how to make an accurate business plan.
Step2: Define your Brand
The next step is to establish your workplace and workforce. This will include major steps like setting up your pottery studio and starting the recruitment process.
After this, you will be able to brand your company’s values and the talent of your employees. So that people can understand how you stand out in the market competition.
Step3: Establish a Web Presence
The next you have to do is making a user-friendly website to help your target customers get an insight into what you do. Complying with the newer trends, your website should also be able to process online transactions and bookings.
Step4: Promote & Market
The last thing before launching your company is to develop your advertisement plan. The advertisement or sales strategy must be created with extreme consideration about the mindset of your target customers. So that it can influence the interests of your target people.
The costs involved in all of the above-mentioned steps are listed below:
|Research and Development||$27,000|
|TOTAL START-UP EXPENSES||$375,000|
|Other Current Assets||$256,000|
|Start-up Expenses to Fund||$375,000|
|Start-up Assets to Fund||$1,252,000|
|TOTAL FUNDING REQUIRED||$1,627,000|
|Non-cash Assets from Start-up||$1,623,000|
|Cash Requirements from Start-up||$358,000|
|Additional Cash Raised||$53,000|
|Cash Balance on Starting Date||$30,100|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$37,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,627,000|
|Loss at Start-up (Start-up Expenses)||$370,100|
|TOTAL CAPITAL AND LIABILITIES||$2,064,100|
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Services of Ceramic Studio
Before starting a pottery painting business you should decide which services you’ll offer to your customers. Your services and the requirements to conduct those services must be clearly stated in your business plan for custom pottery studio. So that you can have a systematic structure to follow.
- Hand Thrown Stoneware Pottery Classes
We’ll offer stoneware pottery classes to enthusiasts who may want to learn and practice their art under guided supervision. Stoneware is durable so we will instruct our clients to learn to make mugs, plates, bowls, and other forms of cutleries using this approach.
- Hand Thrown Earthenware Pottery Classes
We’ll also offer pottery classes to help people in learning earthenware pottery creating skills. Since earthenware needs to be glazed, we’ll hire certified experts to teach glazing techniques.
- Manufacturing Ceramics Cutlery
We’ll manufacture several types of ceramic cutleries to be sold in the market. Our main products in this domain will include:
- Egg pots
- Teapot Set
- Manufacturing Ceramics Decoration Pieces
Lastly, we’ll offer ceramic-made decoration pieces. Our decoration pieces will include:
- Artistic jars
- Painted Vases
- Ceramic Wall Art Sculpture
- Ceramic Candle Holders
- Ceramic Lanterns
- And other novelty décor items.
Marketing Analysis of Pottery Studio
Before starting a pottery studio it is essential to carry out a detailed marketing analysis. The marketing analysis studies your target marketplace to identify the competition and the groups of your target customers. This will eventually guide you in setting your pricing strategy. Moreover, this will also assist you in estimating your monthly and yearly sales and thus profits.
In this ceramic art studio business plan on how to start a pottery studio we’re providing the marketing analysis of Ceramic Land. Keep in mind that the market trends and analytics we’ll be providing are general. It is recommended for you to also study the market ups and downs specific to your service area before entering this venture.
5.1 Market Trends
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These days, pottery studios are high in demand due to the valuable products they can produce. According to IBISWorld, the current market size of the ceramics manufacturing business is $2.4 billion in the United States. The business has seen a growth rate of 0.9% during the last five years i.e. from 2016 to 2021. Moreover, the same source has predicted a 3.1% growth in this business during this year i.e. 2021.
All the above-mentioned stats are highly satisfactory and ensure that it is the right for setting up pottery studio.
5.2 Marketing Segmentation
Ceramic Land identifies the following groups of people as its target customers.
5.2.1 Young & Adults
Our major customers will be young people. They are expected to purchase ceramic products from us. Moreover, they are also expected to make the most of our trainees of pottery classes.
5.2.2 Senior Citizens
Our second target group will comprise senior citizens. Elderly people always look forward to positive activities that also require some physical effort. Therefore, we believe them to come to us for learning or practicing pottery.
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5.2.3 Children & Teens
Our third category includes children and teens. Teens usually tend to do things for fun. Therefore, they are expected to visit us mostly to learn and enjoy doing pottery.
5.2.4 Home Decoration Stores
The stores that sell ceramic decoration pieces will also be our target customers. Due to their work nature, this group is expected to purchase in bulk from us.
5.2.5 Ceramic Cutlery Stores
Lastly, the stores that sell ceramic cutlery will also be our target customers. They are expected to make big purchases from us.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Young & Adults||27%||34,000||36,000||37,000||39,000||40,000||10.00%|
|Children & Teens||9%||6,000||7,000||9,000||10,000||11,000||10.00%|
|Home Decoration Stores||24%||25,000||27,000||29,000||31,000||33,000||10.00%|
|Ceramic Cutlery Stores||20%||22,000||25,000||27,000||29,000||31,000||11.00%|
5.3 Business Target
The economic, social, and human targets of our business are listed below:
- To become the most successful pottery studio in our city by achieving and maintaining an average ranking above 4.9 within a year of the launch.
- To earn a CSAT score above 90% within six months of our launch.
- To ensure a customer repeat rate of 60% by the end of the first year of our launch.
- To earn a net profit margin of $28k per month by the end of the third year.
5.4 Product Pricing
Great service. Good turnaround time and quality work.
Our prices are a little higher than our competitors. It is because we’re providing many additional services and perks as compared to our competitors. Our competitive advantages, through which we will be able to attract more customers despite the high prices, will be listed in detail in the upcoming sections.
Marketing Strategy of Ceramic Studio Business
After you have explored every aspect regarding how to create pottery studio business plan, you should start developing your marketing business strategy. Your ceramic painting studio marketing plan should explain how you are better than your competitors. Moreover, it should also cover your advertisement policies.
6.1 Competitive Analysis
Ceramic Land will come up with the following competitive advantages:
- We are the largest pottery studio in the whole of Austin. Due to more space, we’re able to provide an extremely comfy and creative environment to our pottery trainers.
- We value our customers and always attach special regard to elderly and senior people. For them, we’ll ensure high collaboration and cooperation from our side.
- Our assortment of decoration pieces is quite large. We are offering many types of novel ceramic pieces.
- Last, our sales strategy is very effective. Through it, we expect to get more customers than our competitors.
6.2 Sales Strategy
- We’ll carry out a social media campaign to let our target customers know about us.
- We’ll advertise our services through local magazines, posters, local newspapers, and Google Local Ads services.
- We’ll offer a 60% discount to our first 20 customers of stoneware and earthenware pottery classes.
- We’ll offer a 40% discount on our decoration pieces for the first month of our launch.
- We’ll offer a 20% discount on our pottery classes for people aged above 60.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Hand Thrown Stoneware Pottery Classes||44,000||46,640||49,438|
|Hand Thrown Earthenware Pottery Classes||40,000||42,400||44,944|
|Manufacturing Ceramics Cutlery||31,000||32,860||34,832|
|Manufacturing Ceramics Decoration Pieces||29,000||30,740||32,584|
|TOTAL UNIT SALES||144,000||152,640||161,798|
|Unit Prices||Year 1||Year 2||Year 3|
|Hand Thrown Stoneware Pottery Classes||$48.00||$55.68||$64.59|
|Hand Thrown Earthenware Pottery Classes||$48.00||$55.68||$64.59|
|Manufacturing Ceramics Cutlery||$54.00||$62.64||$72.66|
|Manufacturing Ceramics Decoration Pieces||$52.00||$60.32||$69.97|
|Hand Thrown Stoneware Pottery Classes||$2,112,000.00||$2,596,915.20||$3,193,166.93|
|Hand Thrown Earthenware Pottery Classes||$1,920,000.00||$2,360,832.00||$2,902,879.03|
|Manufacturing Ceramics Cutlery||$1,674,000.00||$2,058,350.40||$2,530,947.65|
|Manufacturing Ceramics Decoration Pieces||$1,508,000.00||$1,854,236.80||$2,279,969.57|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Hand Thrown Stoneware Pottery Classes||$45.00||$51.00||$59.00|
|Hand Thrown Earthenware Pottery Classes||$45.00||$51.00||$59.00|
|Manufacturing Ceramics Cutlery||$52.00||$59.00||$68.00|
|Manufacturing Ceramics Decoration Pieces||$49.00||$57.00||$65.00|
|Direct Cost of Sales|
|Hand Thrown Stoneware Pottery Classes||$1,980,000.00||$2,378,640.00||$2,916,865.60|
|Hand Thrown Earthenware Pottery Classes||$1,800,000.00||$2,162,400.00||$2,651,696.00|
|Manufacturing Ceramics Cutlery||$1,612,000.00||$1,938,740.00||$2,368,548.80|
|Manufacturing Ceramics Decoration Pieces||$1,421,000.00||$1,752,180.00||$2,117,986.00|
|Subtotal Direct Cost of Sales||$6,813,000.00||$8,231,960.00||$10,055,096.40|
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Your employees’ behaviors and performance hugely impact the success of your business. To make sure that all of your employees are well-trained and competent, you should make a personnel plan. Your personnel plan must suggest on which basis and pay scale you will be hiring your workers. And through which criteria, you will be judging their performance from time to time.
For your reference, we’re providing the personnel plan of Ceramic Land in this sample business plan for pottery studio.
7.1 Company Staff
Emma will hire the following people to run her business:
- 1 Manager to help manage the business
- 4 Ceramic Artists to manufacture the products
- 3 Pottery Instructors to conduct training classes
- 1 Website & App Developer to manage the online presence
- 1 Accountant to manage financial records
- 1 Sales Executive to execute company’s sales strategies
- 2 General Assistants for routine tasks
- 1 Receptionist/ Call Operator
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Website & App Developer||$8,200||$9,020||$9,922|
|Receptionist/ Call Operator||$7,000||$7,700||$8,470|
To make sure that your financial flow is the same as you wanted, you need to prepare a financial plan. A financial plan analyzes your expenses, fixed and variable costs, and your profitability goals. After an accurate analysis, the financial plan suggests a safe trajectory for your business. For example, you can learn how much to put in reserve to cater to any financial risks. Moreover, you can get an idea of how much money is safe to invest at a specific time.
As a financial plan is an extremely important component of a business, it must be developed by a professional financial expert. To give you an idea of how a perfect financial plan should look like, we’re providing the financial plan of Ceramic Land in this pottery studio business plan example.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.17%||8.23%||8.26%|
|Long-term Interest Rate||8.28%||8.35%||8.41%|
8.2 Break-even Analysis
|Monthly Units Break-even||5341|
|Monthly Revenue Break-even||$133,900|
|Average Per-Unit Revenue||$235.00|
|Average Per-Unit Variable Cost||$0.63|
|Estimated Monthly Fixed Cost||$166,400|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$6,813,000||$8,231,960||$10,055,096|
|TOTAL COST OF SALES||$6,813,000||$8,231,960||$10,055,096|
|Gross Margin %||5.56%||7.20%||7.81%|
|Sales and Marketing and Other Expenses||$129,000||$130,000||$132,000|
|Total Operating Expenses||$382,300||$404,715||$430,067|
|Profit Before Interest and Taxes||$18,700||$233,659||$421,800|
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 from Receivables||$20,000||$21,600||$23,328|
|SUBTOTAL CASH FROM OPERATIONS||$69,000||$75,210||$81,227|
|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||$70,000||$76,000||$82,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$45,000||$47,000||$49,000|
|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|
|SUBTOTAL CASH SPENT||$45,000||$48,600||$52,488|
|Net Cash Flow||$14,000||$15,000||$16,300|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$273,000||$305,760||$343,674|
|TOTAL LONG-TERM ASSETS||$23,900||$26,768||$30,114|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$17,200||$19,264||$21,653|
|TOTAL LIABILITIES AND CAPITAL||$289,500||$318,080||$357,840|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.24%||2.48%||2.75%||2.40%|
|Total Current Assets||150.10%||151.80%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||95.70%||98.28%||101.04%||97.80%|
|Profit Before Interest and Taxes||40.92%||42.02%||43.20%||33.90%|
|Total Debt to Total Assets||0.17%||0.17%||0.16%||0.40%|
|Pre-tax Return on Net Worth||73.00%||73.70%||74.20%||75.00%|
|Pre-tax Return on Assets||95.80%||100.59%||105.62%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.81%||34.86%||35.94%||N.A.|
|Return on Equity||55.55%||57.27%||59.05%||N.A.|
|Accounts Receivable Turnover||7.7||7.7||7.8||N.A.|
|Accounts Payable Turnover||15.9||16.1||16.2||N.A.|
|Total Asset Turnover||2.4||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.03||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.84||0.86||0.87||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
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