ExecutiveSummary
Thepurposeofthisbusinessplanistomoveintoalargerspace,whichallowsforan
expansionofinventory,constructionofasmallindoorskateplaza,andcreating
customgraphicskateboards.
SwitchStanceSkateShop,isaRockIsland,ILbasedcompanythatcurrently
providessalesofskateboards,accessoriesandapparel,andseekstospecializein
customgraphicskateboards,apparelandotherrelatedproductstocustomersinits
targetedmarket.JamesSeanFarleyJr.foundedSwitchStance.
Products&Services
TheexpectedprimaryrevenueforSwitchStanceSkateShopwillcomefromthesale
ofskateboardsandcompleteskateboards.SwitchStanceSkateShopiscurrently
sourcingfrommultiplewholesaledistributorsandonemainmanufacturerthatwill
beabletoprovidethestorewithanextensivelineofproductsforsaletoitstargeted
demographicofteenagersandyoungadultslivingwithintheQuadCityarea.The
companywillalsogeneratesecondarysourceofrevenuethroughthesaleof
skateboardingapparel,footwear,andaccessories.Thestorewillalsomaintainan
expansiveonlinesalesplatform.
MissionStatement
SwitchStanceSkateShop’smissionistoprovideitstargetaudienceanextensive
lineofskateboardingproductsandapparel.
TheManagement
JamesSeanFarleyJr.,Owner,hasbeenskateboardingformorethan12years.
It’salwaysbeenadreamofhistomakeitbigintheskateworld.
Unfortunately,itjustwasn’tasaprofessionalskateboarder.Instead,James
decidedtofurtherhiseducationandobtaininganAssociatesDegree,then
transferingtoIowaStateUniversityScienceandTechnologytopersueand
achieveadegreeinAdvertising.
Withhiscodllegeexperienceofcompanycampaigns,advertisementbuying
andselling,graphicdesign,entruepernalspirit,andcurrentcareerasa
DigitalandSocialMediaSpecialist,bundlingtheseskillsintoonemakesfora
concreteplanforaskateshop.Jameshashadalongstandingcareerasa
salespersonatU.S.CellularPremierLocations,sellingphonesand
accessoriestocustomersfromallwalksoflife.There,helearnedtobe
creativewithwhathehadtoworkwith.
Upongraduation,JamespersuedacareerasaDigitalandSocialMedia
specialist.There,hebegantoenhancehisdesignability,andlearnmore
aboutHTML,CSS,CSS3,andJavaScriptcoding.Allessentialskillsto
constructaproperlyfunctioningwebsite.Withthe13plusyearsof
skateboarding,knowledgeandawarenessoftheskatecommunity,and
creativity,Jamessetouttoputtogetherabusinessplantogiveskateboarders
andskatersa-likewhatthey’vealwayswanted.Toskatelikeapro.All
skatershavehadtheideatocreatetheirowngraphicboard,butthecostis
incredible.Withthisideainmindandopportunitytocapitalize,Jamessethis
sightsonasuccessfulbusinessplan.
ExpansionPlan
Withmorethan11.08millionskateboardersintheU.S.,SwitchStanceexpectsto
aggressivelyexpanditsserviceswithinthefirst3years.Jamesplanstoimplementa
seriesofadcampaignstargetingtheexactspecificationsofwhatskateboarders
expectfromaskateboarderownedandoperatedstore.
OriginallyuponSwitchStanceSkateShop’sthirdyearofbusiness,thestorewill
expanditsservicestoincludecustomgraphicskateboards.Thankstothesupportof
thelocalskatersandcommunity,theshopiswillingtoproceedwithitsexpansion
planssoonerthananticipated.
Uponexpandingtheshopsfacility,SwitchStancewillalsoexpanditsservicesto
includecustomgraphicskateboards.Thisoptionwillallowskateboardersand
artiststocreatetheirownboard.Thisoptionwillalsogiveasenseof
accomplishmentandsparkcreativityamongthetargetaudience.
Withthelargerfacility,SwitchStancewillalsoofferasmallindoorskateplaza.
BeinglocatedintheMidwestdoesnotallowforskateboardingoutdoor
continuously,however,withasmallindoorskateplaza,thiswillallowskaters
throughouttheareatocontinueprogressinasafeenvironmentandatanaffordable
cost.
CompanyandFinancingStructure
RegisteredName&CorporateStructure
SwitchStanceSkateShop,isaLimitedLiabilityCorporationregisteredinRock
Island,IL.
RequiredFunds
SwitchStanceSkateShopisaSingleMember(SoleProprietor)LLCandinorderto
meetthedemandsofitsfutureclientbase,thebusinesswillcrowdsourcefunds
(fundraise)for$5,000to$7,000.Thisfundingwillcovertheconstructionofthe
indoorskateplaza;partiallycoverthesuppliesneededforcustomgraphic
skateboardsandapparel,andtheexpansionofinventory.Thestorewillalsoseek
additionalfundingthroughthecityviatheCLRFMicroloanprogram,andcontinue
tobefundedoutofpocketbyownerJamesFarley.
ExitStrategy
IfSwitchStanceSkateShopisverysuccessful,Jameswillpotentiallyseekasecond
locationwithintheQCarea.Bydoingso,thiswillallowSwitchStanceSkateShop
productstobeavailablenotonlytoskateboardersinRockIsland,butalsomore
convenienttothoselivingonthe“outskirts”oftheQuadCities.Basedonthe
business’historicalsalesfigures,thiscouldallowearningstoexceed2to3timesas
expected.
IfintheeventSwitchStanceSkateShopisunsuccessful,thestorewillcloseits
doors.Priorto,thestorewillsellallremaininginventorydiscountedoratcost.This
willallowforthestoretoatleastmakeitsreturnoninvestment.Thestorewillalso
sellanyremainingsupplies,screen-printingequipment,heatpress,officesupplies,
andfixturesthatwereadded.Alloutstandingdebtwillbeconsolidatedandpaidoff
byownerJamesS.FarleyJr.
ProductsandServices
SaleofStoreBrandedSkateboards,ProfessionalSkateboards,andApparel
SwitchStanceSkateShopwillcontinuetoofferhighqualitystorebranded
skateboards,professionalskateboards,skateboardingapparel,andaccessoriesatan
efficientcost.FutureplansforSwitchStanceSkateShopwillbetospecializein
customgraphicskateboardsandapparel.Customerswillhavetheabilitytocreate
theirowngraphic,submitittothestore,andwillbeprintedlocally.Allboardsthat
arecreatedthroughtheprogramwillbehandcut,andsilkscreenprinted,allowing
uptoa4-colordesign.
Thestorewillcontinuetoofferanarrayofnamebrandshoesdesignedfor
skateboarding,accessories,beverages,andforthosewhowhishtocreatetheirown
graphics,designtipstotrulyhelpmakeeachcustomers’boardone-of-a-kind.
Theshopwillalsoworkwiththosewantingtostart/createtheirownskateboard
companyorapparelline.Thiswillserveasanadditionalsourceofincomeforthe
shopandwillpotentiallyhelpwiththeformationofmorelocalbusinesses.
TheshopwillalsobeginofferingprotectiongearfortheRollerDerbyaudience.
Thoughit’snotdirectlyskateboarding,theshophashadanincreaseinbearingsales
fromrollerskaters.Thesamebearingsofferedforskateboardingisalsoofferedfor
theRollerDerbyscene.
Upongatheringinformation,thereisnobrickandmortarlocationforthissmall
markettopurchasetheprotectionequipmentneeded.Thestoreisabletopurchase
theprotectionequipmenti.e.;elbowpads,kneepads,andhelmetsfromitscurrent
distributioncompanies.Thiswillprovidenotonlyanadditionalsourceofincome,
butgainasmalluniquemarketinwhichhasnotbeenengagedintheareabefore.
OnlineSalesofProducts
TomakeSwitchStancemoreeffective,thestorewillhaveallproductsavailablefor
purchaseonline.Thisservesasasecondarysourceofrevenueforthebusiness,and
becauseofJames’webdesignexperience,thiswillcostlittletonocostfor
maintenance.Asfeaturedinthestore,thewebsitewillalsoincludea“Design
Station”,allowingcustomerstocreateandorderfromtheconvenienceoftheirown
home.
Thestorewillalsoopenitsonlinespacetoadvertisers.Byofferingadspace,thiswill
generateanadditionalsourceofincomeandwillallowforlocalbusinessesthatare
relatedtoskateboardingtoprojecttheirinformationtothecrowd.
Thisservesasagreatopportunityasasecondsourceofrevenueasonlinesalestend
toincrease.Accordingtoastudyfrominternetretailer.com,asof2012’sthird
quarter,e-commercesalesreached$56.99billion,up17.3%from$48.59billionone
yearpreviously.Withthesekindsofstatisticsandrightmarketing,SwitchStance
SkateShop,willbeabletogenerateagreatdealofsales.
StrategicandMarketAnalysis
AccordingtoShop-Eat-Surf.com,skateboardingisa$4.8billiondollarindustrywith
11.08millionskateboarderparticipants,and77%ofskaterssayaskateshopis
ideallytheplacetoshop.(Shop-Eat-Surf.com)Asskateboardingcontinuesto
evolve,sodoesthetargetaudience.AccordingtoaTransworldskateboarding
readersurvey,themedianageforaskateris16yearsold.
12-17=39%
18-24=33%
25-34=18%
and91%ofthesestatisticsaremale.42%oftheHouseHoldIncome
(HHI)is$50k.(Media)
Withthisuniquemarket,SwitchStanceSkateShop’smaindemographicwillbe
skatersages12-17,anditssecondarymarket18-24.Becauseskatersaremore
likelytopurchaseaboardandsimilarproductsinstore,SwitchStanceissetmaking
apositiveimpactonitsprimarytargetmarket,andthelocalcommunitybyoffering
auniqueservice.
Thecycleofskateboardinghappensinseasons.Majorityofskateboardingtakes
placefromlatespring(Mid,tolateApril),andspansthroughlatefall(lateOctober),
oruntilthefirstsnowfall.Duringthehightoftheskateseason,thisisthebesttime
tocapitalizerevenuewithproductsales,contest,give-aways,andothercreative
motivestokeepasteadyflowoftraffic.Duringtheoff-season,November-March,
mostbusinesseswillseethisasaslowperiod,whichessentiallyistrue,butfor
SwitchStance,thisisaperfectopportunitytomaintainrevenueandtrafficwith
skaterelatedsales,promotions,andcontests.Thoughit’llbeforcastedtobeabit
slowerthanintheon-season,it’sstillgreatopprotunitytokeepclientelinterestedin
thecompany’sproductsandservices.
BecauseSwitchStanceSkateShopwilloffertheuniqueserviceofcustomgraphic
boardsandapparle,anditsownproductline,theshopwillhaveagreatimpacton
themarketshareofcompetitorZumiez,Tilly’sandnowTheFullKit.
Zumiez,Tilly’s,andTheFullKitofferthestandardlineofskatesuppliesincluding:
boards,shoes,accessories,etc.,butwhatthesestoreslackistheuniquenessofa
customtailoredproduct,andknowingitsactualtargetmarket.BecauseSwitch
StanceSkateShopisabletocapitalizeontheweaknessoflargerchainshops,the
storewillbegintomakeanimpactintheskateboardingcommunity,andthe
skateboardingculturealmostimmediately.
SwitchStanceSkateShopStrengths:
Thestoreoffersitsownproductlinesuchasclothing,accessories,etc.
atanefficientcosttoconsumers.
ThestorewillofferCustomGraphicSkateboardsandApparel.
Thestoreisskateboarderownedandoperated.
Thestore’smainlocationisnearaskatepark.
Thestorewilloffermobileservice.
Thestorewillofferasmallindoorskateplazaatanefficientcost.
Thestorewillofferitsservicesonline,makingallproductsavailable
nationwide,andglobally.
Operatingcostswillbemoreefficientbecauseitwillbedoneinhouse.
(advertisements,website,graphics,andpromotions)
SwitchStanceSkateShopWeaknesses:
Demandcouldpotentiallybegreaterthansupply.
Off-seasonmonthshavethepotentialtoeffectsalesnegatively.
Duringthebusyseason,parkingmaybeanissue.
Theownerworksafull-timejobaswellassupportthestoreoutof
pocket.
Howimportantisthetargetmarkettothecompetitors?
Beingacoreskateshopandofferinghighqualityskateboardingsuppliesand
variousproductslargechainstoresdon’tcarry,SwitchStancewillbeableto
actinaneffectivemanner.
Wherelargerchainstoreswillseethe“unsatisfied”customersaslessofa
threat,SwitchStanceSkateShopwillbeabletosatisfythewantsand
demandsofthe“unsatisfied”customers.Bydoingso,thistrickleeffectwill
eventuallyhelpSwitchStanceSkateShopgrowtoitsmaximumpotentialand
beyond.
Opportunitytoenterthismarket?
Thewindowofopotunityisgreat.Becausethisisauniqueideaandservice,
mostwouldn’twanttotreadinthisexactterritory.Mostskateshopsthat
offercustomgraphicboardsonlyoffertheserviceonlinewithlimitedtono
contact.SinceSwitchStanceSkateShophasthedesignnstationsavailablein
storeandonline,thiswillmaketheconsumerfeeltheirworkistaken
seriously,andsomeoneunderstandstheirwantsandneeds.
Arethereanyindirectorsecondarycompetitorsthatmayimpact
yoursuccess?
Recently,alocalcompetitorhasopenedastoredowntownDavenportcalled
TheFullKit.Originally,TheFullKitoperatedasaskateshop,butinrecent
yearshastransitionedtoasneakerbotiquewhileofferingsome
skateboardingproducts.Thishashadasmallimpactonthesalesofshoes
andsomeapparel,andsomeskateboards.
InorderforSwitchStancetomaintainitsuniqueness,theshopisconsidered
acoreshop.Meaning,onlyskateboardingproductsandanythingthathasto
dowithskateboardingisoffered.Thisincludesthesaleofcustomgraphic
skateboards,storebrandedboards,andcollaborationswithpopular
skateboardingcompanies.
Whatbarrierstomarketarethere?(changingtechnology,high
investmentcosts,lackofqualitypersonel?)
Theskateboardingworldisadynamicscene.Astricksandskatersevolve,
theequipmentandproductsneedtoaswell.SwitchStancecurrentlyoffersa
websitethatismobilefriendly,andplanstoofferamobileapplicationwhich
willallowanyonetoshopvariousproductsrightfromtheirmobiledevice.
Ascompaniescontinuetoshiftgearstowardsmore“personalization”of
products,anddifferentstrategiesofadvertising,SwitchStancewillalways
trytostayonestepaheadofthecompetiton.Becausethestoreownerhasa
degreeinadvertising,obtainedwebsitedesignskills,andcurrentlylearning
differentprogramminglanguages,thestoreiscapableofadvancing
seamlesslybyeffectiveadvertisingandofferingpromotionsinthemost
creativeandeffectivewaysknowntoskateboarding.
InformationaboutTargetMarket:
DistinguishCharacteristics
Thecrutialneedsofthecompany’sprimarytargetmarketistosupplyboards.
Majorityofthecompany’sstorebasedclientswillresidewithintheQuadCityarea
rangingfrom10to38yearsold.SwitchStance’stargetmarkettoappealtois
skateboarderswhoaremale,andintheagerangeof18-24.
Seasonally,themidwestisknownforgreatsummers,andwithqualityout-door
skateparks,theseoptionswillkeepSwitchStance,afloatduringtheslowperiods.
Generallytheskateboardseasonstartsinlatespring,lateApril,andendslatefall,or
firstsnowfall,generallylateNovember.Duringthesetimes,skateboardingsalesare
atitsalltimehigh,whichwillallowSwitchStanceSkateShoptocapatializeandget
itsbrandrecognized.
Sizeoftheprimarytargetaudience
AccordingtoTransworldBusinessSkateboarding,asof2010nationalskateboard
salesrevenuegrosed$2.52billion,whichincomparisionto2008was$2.85billion.
(Business)Thiswasa11.6%deceaseinsalesduetotherecession.Asof2011,sales
haveincreasedabout16%accordingtoSurfIndustryManufacturersAssociation
(SIMA),.Withthesefigures,SwitchStanceSkateShoppredictsanadditional10%
increasein2013.
Howmuchmarketsharecanyougain?
WithintheIllinois/Iowaarea,ourmarketsharewillconsistof70%ofskaters,and
30%generalconsumers.Wepredictthesenumbersduetothecommercializationof
theskateboardingindustry.AscompaniessuchasDCShoes,OsirisShoes,OBEY,and
Supremecontinuetobecomemoreurbanized,webelieveclientswilllookforthese,
orsimilar,productsinthestore.Ourmarketsharewillbe70%becauseweare
providingauniqueserviceforskateboardersandskateboardersa-like,andSwitch
StanceSkateShopwillbetheQuadCitiesfirstofficialskateboarderownedand
operatedskateshop.
MarketingPlan
SwitchStance,anticipatestomaintainanextensivemarketingcampaignthatwill
ensuremaximumvisibilityforthebusinessinitstargetedmarket.Belowisan
overviewofthemarketingstrategiesandobjectives.
MarketingObjectives
•
Developbrandawarenessandafurtherdemandforcustomgraphicskateboards
bycreatinga“Hype”campaing.Accordingtoaseriesoffocusgroupscondicted
byJamesFarley,allparticipants(interviewedindividually)saidskatingaboard
theycreatedwouldgetthem“Hyped”toskate.Thiscampaignwillhaveaseries
ofshortcommercials,onlineadvertisements,andgorillaadvertisements.
•
Developanonlineandsocialnetworkingpresencebycreatingawebsitethatis
SEO(searchengineoptomized),abletobesearchedthroughgoogleandother
popularsearchengines.SwitchStanceSkateShopwillalsocreatesocial
netowrkingsitessuchasFacebook,Twitter,Instagram,Pinterest,FourSquare,
TumblrandcreatingaGooglePlacesaccount.BycreatingaGooglePlaces
account,thiswillallowcustomerstoleavereviewsandsharetheiropinonand
experiencesatthestore.ThiswillalsoenticeskaterstosearchforSwitchStance
online.Throughtheback-end,Jameswillbeabletotrackandmonitorthe
numberofvisitstothestorewebsite,analyzekeywordsearchesrelativetothe
store,andadjusttowhattheaudienceissearchingfor,whichinreturn,will
accuratelyandeffictivelydisplaystoreadvertisements.
•
ImplementEmailmarketingtothestore’saudience.Theshophascollectedemail
addressesofskateboardersinandaroundthearea.Thegoalistocreateemails
thatspecificallytargettheaudienceandnotonlytoenticethemtopurchase
productfromthestore,buttoalsocommunicatenewbrandsavailable,keeping
upwithwhattheshopisworkingonandinformthemabout
giveaways/sweepstakes.
•
Implementiggiveawaystokidswithinthelocalarea.Thiswillgenerateafurther
interestinthestoreandwhatithastooffertothecommunity.
MarketingStrategy
JamesintendsonusinganumberofmarketingstrategiesthatwillallowSwitch
Stance,toeasilytargetitsdemographicswithinitsmarket.Thesestrategiesinclude
traditionalprintadvertisinginpopularskateboardingmagazines,advertising
throughsocialnetworkingsites,andadvertisingthroughitswebsitewhichwillbe
SEOfriendly.Thebusinesswillalsohostonlinegiveaways,andlocalskate
competitions.
Thiswilldrawtheskateboardingcommunitytogetherinauniqueway.Switch
StancewillalsouseavariationofQR(QuickResponse)Codesallthroughoutthe
city.EachQRCodewillgrantaccesstocustomersforexclusiveoffersthatnoother
retailerwillbeabletomatch.Byofferingtheseefficientcoststrategies,thiswill
havecreatedmoredemand,interestforthebusiness,andgeneratealarger
customerbase.
Currently,thestorealsoofferstheoptionforcustomerstobeapartofitsmonthly
emailsubscription.Thisemailsubscriptionwillofferexclusivedealsonskate
products,highlightlocalskaters,andconnectingcustomertothestore’ssocial
networkingsites.
Pricing
Aspreviouslyexplained,SwitchStanceSkateShopwilloffercustomgraphicboards
designedbycustomers.Therearetwowaystocompletetheback-endprocess,Heat
Transfer,andsilkscreenprint.Thesearethetwomainandpopularwaystobringa
designtolife.
SwitchStancewouldmainlyfocusonthesilkscreenprintingprocess.Thiswillallow
forvividdesignsandlimitedcolors.Byofferingthisprocess,itwillallowtokeep
costlow,andturn-aroundtimedown,specifically3-5days(beforeshipping).
PricingStructure
StoreBrandedProductscost-peritem
Deck–24.95
CustomDesignDeck(potentialcost)–19.99(each)
Griptape(persheetdiecut)100sheets–1.79
Wheels(singlegraphic)setof25(4eachset)-9.49
Hardware1000sets(8perset)(includespackaging)-0.89
Trucks50(2perset)5.24
SkateTool25total–5.75(each)
BearingsABEC7(8perset)–6.00
TotalCostforShopSkateboardComplete-$53.60
TotalCostforCustomGraphicSkateboardComplete–$48.64
StoreBrandedApparel
ShopShoeCollaboration–26.5(pair)
ShopShirtLongSleeveCollaboration–16.50
ShopCollaborationShortSleeve–5.95
ShopT-shirts–7.00
ShopHoodies–18.00
ShopHats–16.00
ProfessionalBrandedProductscostperitem
Deck–34.00
Bearingsabec7-6.00
ShockPads&Risers-.95
Wheels–16.00
Hardware–1.5
KingPin(each)-.69
Trucks-14.00
TotalCostofCompleteProfessionalBrandSkateboard–66.5
OtherSkateApparel
Shoes–35.00
T-shirts–13.00
Hoodies–24.00
Hats–13.00
Whatthestorewillcharge
ProfessionalSkateboard-50.00
Shopskateboard-35.99
CustomGraphicSkateboard–45.99
GripTapePerBoard(average)-7.99
BearingsABEC7-23.99
Shockpads/riserscombo-3.00
ShopWheels–21.99
Wheels–26.99
Hardware-4.99
ShopHardware–2.99
Skatetool-16.99
ShopSkateTool–13.99
Kingpin-2.99 Trucks-42.99
ShopTrucks–26.99 OrganizationalStructure
Positions:
StanceAssociate:Thedailydutiesoftheshopemployeewillconsist
ofdailystoremaintenance.Ensuringthestoreisproperlycleaned,shelves
arestocked,computersarefunctioningproperly,restroomiscleaned,and
thecashregisterisaccurate.
TheprimarydutiesofaSwitchStanceSkateShopemployeewillbetoassist
customerswithanyandallpurchases,heatpressboardson-site(don’t
worry,theownerwillshowyouhowit’sdone,justassoonashelearns!),and
fulfillallonlineorders.Assistingtheownerwithpromotionalevents,sales,
andifrequested,makinglocaldeliveries.
AbackgroundwithCS4-6(CreativeSuite),SomeHTMLskillswouldbe
greatasset,butnotrequired.Becausethestorewilloffercustomdesigned
boardsanddesignstations,customersmayneedadditionalhelpwith
bringingtheirartworkalive.Itwouldbeamazingtohaveanemployeewho
knowsthebasicsofphotoshop,indesign,andillustrator.KnowingHTMLby
heartisquiteanamazement.Ifyouknowitawesome,ifnot,it’sallgood,and
ifyouwanttolearn,sweet!Theownercanteachyou.Again,thisskillisnot
required.
Quickproblemsolvingskills.Beingabletothinkonyourfeetisagreat
benefit,anditalsoshowsoneslevelofcreativityandabilitytothinkoutside
thebox(sincethat’swhatthestoreisallabout).
Salesexperience,again,anamazingbenefit,butnotrequired(atthis
point,theproductsshouldsellthemselves).Beingabletospeaktocustomers,
treatingthemhowtheemployeewouldliketobetreatediftherollwas
reversed.Greatcustomerserviceensuresfutruesalesfromnewclients,and
repeatbusinessfromreoccuringclients.Don’thaveanysalesexperiece?No
worries,aslongasyoumaketheefforttomakeanySwitchStanceSkate
Shopcustomeracustomerforlife,you’vedonewell.
Thelast,butnotleast,youmustknowhowtoputaskateboard
together.
BecauseSwitchStance’smainfocusisonskateboards,it’scrutialtoknow
howtoputaboardtogetherfrombearings,togriptapeinatimelymanner.
Youdon’thavetobeaskateboarder,butifyouwantthejob,youshould
probablyhavesomeoneshowyouhowtoatleastputtheessentialstogether.
i.e.,thehangertothebaseofthetrucksincludingthebushingsandwashers
(thismakesthebasictrucks),puttingthebearingsinsidethewheels(this
makesthewheelsmove),addingthewheelstothetrucks,Applyingthe
griptape(don’tworry,theownerwillhelpwiththat.It’satricky,andsticky,
process.),andfinallyplacingthehardwarewiththetrucks(thismakesthe
boardbecomeone.).
Accountant:SwitchStanceutilizesaccountingservicesofStiegerand
Nagovan.Thedutieswillincludeanyandallbookkeeping,filingtaxes,
expensereports(ownerwillkeeptrackofthisaswell),andassistingwith
settingmonthlygoalsandbudget.
Owner:Thedutiesoftheowneristooverseethestoreandall
operationsperformed.Approveanytime-offrequested,coveranyadditional
shifts,createandimplementanyandalladvertisements,websitecreation,
publication,photography,pressreleases,approveallboarddesigns(of
courseensuringalldesignsabidecopyrightlaws),andtrainnewemployees.
Whatqualifiestheownertobethe“owner”?
JamesSeanFarleyJr.,Owner,hasbeenskateboardingformorethan12years.
It’salwaysbeenadreamofhistomakeitbigintheskateworld.
Unfortunately,itjustwasn’tasaprofessionalskateboarder.Instead,James
decidedtofurtherhiseducationandobtaininganAssociatesDegree,then
transferingtoIowaStateUniversityScienceandTechnologytopersueand
achieveadegreeinAdvertising.
Withhiscollegeexperienceofcompanycampaigns,advertisementbuying
andselling,graphicdesign,entruepernalspirit,andcurrentcareerasa
DigitalandSocialMediaSpecialist,bundlingtheseskillsintoonemakesfora
concreteplanforaskateshop.Jameshashadalongstandingcareerasa
salespersonatU.S.CellularPremierLocations,sellingphonesand
accessoriestocustomersfromallwalksoflife.There,helearnedtobe
creativewithwhathehadtoworkwith.
Upongraduation,JamespersuedacareerasaDigitalandSocialMediaspecialist.
There,hebegantoenhancehisdesignability,andlearnmoreaboutHTML,CSS,
CSS3,andJavaScriptcoding.Allessentialskillstoconstructaproperlyfunctioning
website.Withthe12plusyearsofskateboarding,knowledgeandawarenessofthe
skatecommunity,andcreativity,Jamessetouttoputtogetherabusinessplanto
giveskateboardersandskatersa-likewhatthey’vealwayswanted.Toskatelikea
pro.Allskatershavehadtheideatocreatetheirowngraphicboard,butthecostis
incredible.Withthisideainmindandopportunitytocapitalize,Jamessethissights
onasuccessfulbusinessplan.
UnderlyingAssumptions
SwitchStanceSkateShopwillachieveanannualgrowthrateof10%eachyear.
Jameswillacquire$10,000intheformofaloantoexpandinventory.
Theloanwillbea5yearfixedrateat4%interest.
SensitivityAnalysis
IntheeventofaneconomicdownturnSwitchStancemayfaceadeclineinrevenue.
Customdesignedskateboardsandapparelitemsareconsideredtobeanexpendable
goods.Customerswill,unfortunately,havelessdisposableincometopurchasethese
goodsduringaneconomicrecession.However,thehighgrossmarginsgenerated
frombothonlineandinstore,willensurethatSwitchStanceSkateShopwillremain
profitableandcashflowpositiveinanyeconomicclimage.