Pottery Studio Business Plan

The Pottery Table is a new 44-seat paint-it-yourself pottery studio in Monroe. It’s fun. It’s easy. It’s a great place to have a party or create a one-of-a-kind gift.

The store staff provides the pre-fired pottery, supplies, and a clean, cozy, and relaxing place to put it all together–plus idea books and a helpful staff to get the “artist” started. The customers provide the inspiration to create unique gifts with a warm and personal touch–like a mug with a child’s handprint, a custom photo frame, or a bowl for a canine companion.

A customer can even create items to match home decor with unmatched creative flexibility and color choice. The Pottery Table supplies everything the “artist” needs:

• Hundreds of pre-fired pottery choices.
• A huge selection of non-toxic glazes.
• All the brushes, sponges, and supplies.

When the artist is finished, a clear glaze will be applied and the pottery will be re-fired. The customer can pick up his or her work in about a week. It’s food and dishwasher safe.

Janet Miller, owner of The Pottery Table, has been a pottery instructor for over ten years, including leading classes through the city’s recreation program. Over the ten years, she has instructed hundreds of children and adults in the joy of creating unique pottery.

1.1 Objectives

The objectives of The Pottery Table are as follows:

• Achieve 80% class capacity in the studio within the first year of operation.
• Create a successful pre-school pottery program.
• Create a successful new mother’s pottery program.
• Create a successful seniors pottery program.

1.2 Mission

The mission of The Pottery Table is to provide customers a great creative environment in which to design and create their one-of-a-kind pottery.

The Pottery Table is a new 44-seat paint-it-yourself pottery studio in Monroe. The business is organized as a limited partnership. Janet Miller will operate the business and the silent partner will perform limited accounting responsibilities.

The Pottery Table is located in the Grand Avenue Shopping Center. The smaller mall has a number of retail stores, coffee shops and restaurants, with a reasonable amount of shared parking.

2.1 Company Ownership

Janet Miller and a silent partner are the owners of The Pottery Table.

2.2 Start-up Summary

The start-up cost of The Pottery Table will consist primarily of firing equipment and studio set up. Janet Miller and a silent partner will invest equally. Janet will also secure a long-term loan.

The Pottery Table offers the following products and services:

• Instruction on painting and placing designs on pottery. Classes are $50 per person.
• Hundreds of pre-fired pottery choices. Starting at $5 and up.
• A huge selection of non-toxic glazes.
• All the brushes, sponges, and supplies needed.
• Unlimited studio time at $10 a session.
• Special gift basket pottery, ranging from $30- $70.
• Sale of pottery tools and accessories.

The city of Monroe has a population of 120,000 residents. Over the past four years there has been significant growth in participation in the city’s park arts program.

The groups that have been most supportive of the program are youths and seniors. Approximately 20% (24,000) of the population are active seniors who participate in numerous programs around the city. Youths, under the age of ten, represent 35% of the city’s population.

Recently, due to budget cuts, the arts program has been discontinued. The Pottery Table is positioned to attract the patrons of the discontinued arts program. The Pottery Table will establish a programs specifically targeting seniors, young children, and new mothers.

4.1 Market Segmentation

The Pottery Table will focus on three customer groups:

• Seniors;
• Youth (ages 3 – 10);
• New mothers.

4.2 Target Market Segment Strategy

The target market strategy for The Pottery Table is as follows:

• Seniors: This is an important group for morning and early afternoon studio time. Active seniors are members of community senior organizations and clubs. The Pottery Table can market directly to these groups in order to attract seniors.

• Youth (ages 3 – 10): The Pottery Table will focus on bringing pre-schoolers in during the morning and early afternoon and school-aged children during the late afternoon.

• New Mothers: The Pottery Table believes that marketing to new mothers is the best way to build future customers. The new mother’s program will focus on creating pottery that will celebrate the new baby.

4.3 Service Business Analysis

The Pottery Table is a do-it-yourself craft business where customers create their own unique piece of pottery.

There has been a number of successful do-it-yourself businesses that focus on the joy of the creative process. Currently, in Monroe, there is only one existing pottery store that offers the same service. The Kiln Room is located on the south side of town, in the commercial district. Its focus is the more serious pottery customer.

The Pottery Table’s focus is more entertainment than education. The key is how the customer feels about the experience rather than the pottery. Repeat business, as well as referrals, are crucial to the success of a craft business.

The Pottery Table will develop relationships with senior centers, senior organizations/clubs, childcare programs and afterschool programs. The Pottery Table will offer discounted group rates in order to promote sales.

5.1 Competitive Edge

Janet Miller is the competitive edge for The Pottery Table. Janet has been a pottery instructor for the city’s arts program for the past ten years. She is a highly-respected artist and instructor in the community.

Over the years she has built a loyal following of students who have returned to her, again and again, for more instruction. She has visited the city’s senior center and childcare centers promoting her program. Most importantly, she is the most visible symbol of the now discontinued city’s arts program.

5.2 Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will be holding follow-up meetings every month to discuss the variance and course corrections.

5.3 Sales Strategy

The Pottery Table’s sales strategy is to sell the creative experience to the target customers. Janet Miller will make presentations at senior centers, childcare centers, afterschool programs and parent groups.

The Pottery Table will offer free sessions for children during the first month of business. Children will be given a small cup to paint that is part of a set. The Pottery Table will promote the children coming back and painting another cup in the set.

5.3.1 Sales Forecast

The following is the sales forecast for the next three years.

5.4 Marketing Strategy

The Pottery Table will pursue the following marketing strategy:

• Seniors: Senior groups (six or more) will receive a 15% discount for group instruction and group studio time, and a 15% discount for individuals using the studio between 9 a.m. and 3 p.m. on weekdays.

• Youth (ages 3 – 10): Youth will receive a group discount (six or more) of 15% for group instruction and group studio time.

• New Mothers: New mothers will receive 20% discount for group instruction and group studio time.

Janet Miller will be the manager of The Pottery Table.

6.1 Personnel Plan

The personnel of The Pottery Table are as follows:

• Manager;
• Instructors, part-time (2);
• Aides (1).

The following is the financial plan for The Pottery Table.

7.1 Break-even Analysis

The monthly break-even point is shown in the table and chart below.

7.2 Projected Profit and Loss

The following table and charts present projected profit and loss for the next three years.

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 3269, Pottery Products, are shown for comparison.