Scrapbooking Business Plan Sample

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 scarpbooks alongwith some other accessories. The business will be operating both on-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 mass scale, at multiple locations or if you offer diverse services in the domain, the management can give you a tough time. In both the 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 scrapbooking business

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 on 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: Reasearch

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 much financial resources you will be needing, 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 idea of 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 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 opportunites.

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 it. 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 gifts 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 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 do you stand. The market analysis is essential to perform even when you are launching 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 comprise of 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 comprise of 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 include 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 the 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. 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 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 simple and straight-forward 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 expense 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 how your financial plan would look like. However, if you’re looking for 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

1. 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.

2. 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.

3. 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.

4. 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