Free Embroidery Business Plan PDF | How to Start an Embroidery Business

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Here's a Sample 'Executive Summary' for a Embroidery Business plan:

COMPANY NAME is an existing family apparel retailer.  The store offers on a year round basis items such as jackets, shirts, sweatshirts, sports apparel, hats, and promotional items.  They also customize the garments they sell by embroidery, silk-screening, monogramming, and lettering.
 
The store is in Forest Lake, Minnesota and is centrally located to the tri-county area it serves (Washington, Anoka, and Chisago counties).  The area is growing in population and demographic information indicates it may be faired better than many other parts of the United States through the ongoing economic downturn.  According to U.S. Census data, the tri-county area is home to over 614,000 people and 47,640 businesses.  The area appears to be highly diversified with no single industry dominating the area's economy. 

The store has been in existence at its present location since 1999.  The previous owners sold the business and building to OWNER’S NAME in May 2007.  They operate the business through a limited liability company structure.  OWNER’S NAME, who handles the day-to-day operations of the business and is an active hands-on owner, had eight years of previous experience in retailing, embroider, and silk-screening prior to owning the store. 

The store is the only embroidery and silk-screening business within a 30-minute radius, so they have no local competition.  Internet companies are the main competition for the store with price and the convenience of ordering being the two competitive factors they must overcome.  Its primary marketing focus is toward privately owned businesses in the tri-county area with a staff of face-to-face customer service providers, or with a vision of "branding" their business by providing their employees with uniforms or coordinated logo apparel.  Its secondary marketing focus is the teams, groups, and organizations in the area seeking lettered uniforms.

The store's competitive edge is its location, its focus on excellent customer service, and the experience and knowledge of the owners who have already identified key factors that they must achieve to make the store successful.  Increased sales can be achieved by developing an outside sales force, by expanding their retail hours, and by exploring the advantages of a more sophisticated website with shopping cart capabilities.  These are immediately possible with the addition of two new employees.  Increased profitability can be achieved by continuing to maintain their gross profit margin and by developing a diligent expense control system.

The future for COMPANY NAME appears bright.  The store has far more strengths than it has weaknesses.  It has opportunities for growth and profitability by simply following this business plan and by finding a source of funds to restructure their business debt.  The only serious threats are a prolonged and worsening economic downturn or a competitor decision to move into their immediate area to compete head-to-head.

1.1 Objectives

• Achieve profitability by year-end 2012 and in future years by increasing sales and diligently controlling expenses
• Design and implement strict financial controls to help ensure future success
• Increase sales to local area businesses, teams, groups, and organizations through more aggressive marketing
• Determine whether the development of a more robust website would result in more effective competition on the internet  
• Obtain additional capital required to consolidate existing business debt

1.2 Mission

The mission statement of COMPANY NAME is "Professional Quality, Hometown Service".

1.3 Keys to Success

• Focus our marketing efforts on businesses, teams, groups, and organizations in the tri-county area 
• Continue our heritage by exceeding customer service expectations every time
• Grow sales and diligently control expenses to again become profitable
• Improve cash flow by consolidating existing business debt
• Complete a study on whether an improved website will increase internet sales

COMPANY NAME was formed on May 24, 2007 by OWNER’S NAME.  Their retail store, located in Forest Lake, Minnesota, offers custom embroidered, silk-screened, monogrammed and lettered sports apparel and clothing items.  They market to individuals, groups, teams, and businesses in the tri-county area of Washington, Anoka, and Chisago counties since they are located in the extreme northwest corner of Washington County where these three counties merge.  They have the ability to accept orders via walk-in, mail, telephone, fax, or the internet.  They have the capability of handling production runs from a single garment to hundreds of garments.

2.1 Company Ownership

Forest Lake Embroidery is 50% owned by INSERT NAME and 50% owned by INSERT NAME.  The LLC formation was chosen as ways to minimize personal liability issues for the owners and avoid the double taxation inherit with traditional corporations.
INSERT NAME is the most active and hands-on of the two COMPANY NAME owners.  INSERT NAME comes from a retail management background with experience in embroidery, silk-screening, and promotional products.

2.2 Company History

The store originated in 1999 at its present location as a family owned embroidery shop.  Ownership remained with the original family for eight years.  On May 24, 2007, the original owners sold the existing business to INSERT NAME.  They remain as owners of the business and continue to operate it as custom embroidery, silk-screening, monogramming, and lettering store in Forest Lake, Minnesota.

Table: Past Performance

PAST PERFORMANCE
	2007	2008	2009
Sales	$188,127	$288,583	$243,056
Gross Margin	$98,474	$149,508	$132,717
Gross Margin %	52.34%	51.81%	54.60%
Operating Expenses	$88,909	$151,812	$146,350
Inventory Turnover	8.97	13.92	7.62
Balance Sheet
	2007	2008	2009
Current Assets
Cash	$19,677	$26,696	$8,635
Inventory	$10,000	$9,976	$18,976
Other Current Assets	$3,550	$3,300	$0
Total Current Assets	$33,227	$39,972	$27,611
Long-term Assets
Long-term Assets	$141,140	$160,640	$160,640
Accumulated Depreciation	$20,792	$42,590	$60,344
Total Long-term Assets	$120,348	$118,050	$100,296
Total Assets	$153,575	$158,022	$127,907
Current Liabilities
Accounts Payable	$0	$2,083	$2,083
Current Borrowing	$7,436	$13,868	$22,953
Other Current Liabilities (interest free)	$0	$0	$0
Total Current Liabilities	$7,436	$15,951	$25,036
Long-term Liabilities	$95,607	$103,843	$92,777
Total Liabilities	$103,043	$119,794	$117,813
Paid-in Capital	$40,967	$30,967	$16,466
Retained Earnings	$0	$9,565	$7,261
Earnings	$9,565	($2,304)	($13,633)
Total Capital	$50,532	$38,228	$10,094
Total Capital and Liabilities	$153,575	$158,022	$127,907
Other Inputs
Payment Days	30	30	30

The store offers essentially an identical inventory of apparel as do other retail embroidery and silk-screening establishments.  Their offerings include shirts, sweatshirts, jackets, hats, sports apparel, and other clothing items with their primary suppliers being SanMar and Dakota Collectibles.  The store enhances the clothing items they retail through custom embroidery, silk-screening, monogramming, and lettering.  They can design an insignia or logo simply from an image or an idea and customize the chosen apparel with their stitching and silk-screening equipment for large or small orders from individuals, groups, teams, and businesses.