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JUN.16, 2022

Scrapbooking Business Plan Sample

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Scrapbooking Business Plan Sample

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    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.

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    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.

    Scrapbooking Business Plan - 3 Years Profit Forecast

    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.

    Scrapbooking Business Plan - Startup Cost

    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.

    Scrapbooking Business Plan - Marketing Segmentation

    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 

    Scrapbooking Business Plan - Sales Monthly

    6.4 Sales Yearly

    Scrapbooking Business Plan - Sales Yearly

    6.5 Sales Forecast

    Scrapbooking Business Plan - Unit Sales

    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

    Scrapbooking Business Plan - 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

    Scrapbooking Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Scrapbooking Business Plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    Scrapbooking Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Scrapbooking Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Scrapbooking Business Plan - 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.

    Download Scrapbooking Business Plan Sample in pdf

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