| This gift shop business plan
focuses on one thing: you. This isn't Hallmark's gift shop. It is
yours. Make it uniquely yours. KEY
CONSIDERATION
What is it that is going to distinguish your gift
shop? Local artists? Your work? A unique supplier you discovered on
vacation? Souvenir type items? First define that. The rest will be a
breeze.
STRONGEST ADVANTAGE
Because your gift items will be unique, you
needn't worry much about Sears competing with you in pricing. In
fact, competition isn't an issue at all for the most part -- and
that makes this a very unique business!
STRONGEST DISADVANTAGE
The very advantage -- its unique quality -- is
also what makes it difficult for bankers to quantify your potential
market. You will need to devote extra attention to emphasizing where
your clients will come from, and how many of them there are.
OVERCOMING THE DISADVANTAGE WITH YOUR GIFT SHOP
BUSINESS PLAN
Strut Your Stuff
Whatever your previous success with this product
line has been, bring it front and forward. Perhaps the artist(s)
have sold in art fairs or through personal advertising. That's
great. Show how successful they were. Talk about the awards they
have won, the great reviews they have gotten.
Present your gift shop as a fait accompli -- as
something you have already done. Submit drawings of both the
exterior and interior, with all the photos you can muster of the
product itself. This is not a time to be shy.
Prove that you have the marketing background and
skill to make the store successful.
It doesn't matter that you were vice president of
finance for a Fortune 500 company. It does matter that you ran the
hospital gift shop for five years as a volunteer.
This is not a business that requires a degree in
marketing, but you must be able to demonstrate your basic knowledge
of marketing and promotion, and be able to set out a strong
marketing plan for your gift shop. If you don't have this ability,
get it at a local community college.
OTHER PLUSSES FROM YOUR GIFT SHOP BUSINESS PLAN
Your store will be judged by the business plan,
including its aesthetic value. In a business like this, the
aesthetic approach you take in the gift shop business plan becomes
even more important.
Be sure to include all the basic information. And
make sure it is packaged to demonstrate your skill.
FOR ADDITIONAL INFORMATION FOR YOUR GIFT SHOP
BUSINESS PLAN AND YOUR MARKETING PLAN FOR A GIFT SHOP
For traffic information on your retail location,
contact the owner/manager of the retail center. Also go to your city
or county planning department where you can get traffic counts and
information on housing and construction in that area. The gift shop
business plan must include strong demographic information (see below
for more on demographics).
For statistical information for your gift
shop marketing plan, go to
BizMiner. Having
solid marketing information is critical in a gift shop business
plan. Bankers pretty much assume that you are artistic; and they
also assume you don't know business.
At the home page, look for "Search by Industry".
In the SEC Drilldown, click on "Retail"
On the next page click on 5900 - Miscellaneous
Retail
In the drop down list, choose the industry closest
to the type of store you will have:
- Drug stores
- Liquor stores
- Used merchandise
- Sporting goods and bicycle shops
- Book stores
- Jewelry stores
- Hobby, toy, and game shops
- Gift, novelty, and souvenir shop
- Luggage and leather goods store
- Sewing, needlework, and piece goods
- Catalog and mail order houses
- Merchandising machine operators
- Direct selling establishments
- Fuel oil dealers
- Liquefied petroleum gas dealers
- Fuel dealers, misc.
- Florists
- Tobacco stores
- News dealers
- Optical goods
- Miscellaneous retail stores
It truly amazes me that "toys" and "fuel dealers"
are in the same general category, but here they are. I doubt that
gas stations would appreciate this gift shop business plan.
At any rate, odds are that you will select "Floral
and gifts, Retail", then on "Gift, novelty, and souvenir shops".
When you do, you will be taken to a page that narrows down your
choices even further to: artcraft and carving store, balloon shops,
gift baskets, gift shop, novelties, party favors, greeting cards,
souvenirs, and trading cards.
For each specific type of business, there is both
a Financial Analysis and Marketing Research. These tools will let
you really wow the lender with your knowledge of how the business
side of the business operates. That, combined with your artistic
talent, and you are home free!
Be sure to look at the left side of that page for
VIEW ALL REPORTS, then find DEMOGRAPHICS compiled from US Census
statistics. This is the information that your banker will be working
with, so know what it says before you meet your banker.
ONE STEP BEYOND ...
Because you want to make a strong impression on
your lender, present a gift shop business plan worthy of your
business. The creativity and energy that you bring to your shop
should be reflected in the plan itself.
YOUR LIKELY
LENDER/INVESTOR
The
SBA
is a strong lender in the retail field. Depending on the size of your
gift shop, you may qualify for a microloan. Also, if appropriate,
check the mentoring potential with the SBA. |
