Garden Crafts Inc. created the Sit N&#8217’ Caddy, a product it intends produce and market. Garden Crafts has created a mission statement, strategy, and product that use value, quality, integrity, and a conscience to develop the product.

Garden Crafts will become a Chapter S corporation in Georgia. It will have two stockholders, Rob Kane (owner) and Keith Jones (manager). The administration offices will have separate facilities for the operation. A projection has been made for the startup costs, with the majority being covered by Mr. John Houseman. He was previously owner of Kustom Kabinets. He has agreed to hold the equipment cost as a private note.

The Sit N&#8217, Caddy, is a combination stool/tool tray made from premium grade hardwood. Market research revealed that there were many similar products, but none that were wood-based and customizable to the extent of the Sit N&#8217’ Caddy.

Home Depot is the largest national seller of home and gardening supplies, according to an analysis of various markets. This growing market has shown steady growth with double-digit gains over the past 3 years. Garden Crafts will be a lucrative business in the future thanks to two-thirds homeowners spending an average $532 annually on garden products.

Home Depot was chosen as our first target for sales. Our strategy will focus on the Merchant Home Depot uses to be their regional buyer. Home Depot being our only customer, our sales price will be determined based on their merchant pricing system. Based on our costs we decided $20 would be the lowest price Home Depot will accept. With a single product and a standard price, the three-year forecast shows a direct result of the projected 11% growth rate.

The $10 unit cost was determined to be $5 for labor. It was decided to pay future employees a flat rate instead of an hourly salary. A portion of net profits will be paid to the founders by the corporation as dividends. The rest of the profits will be put into an aggressive-growth mutual trust as a form to retain earnings.

The gross sales figures have increased over the past three years, which is a natural consequence of our 11% growth rate projection. Operating expenses have also increased, although not in the same way as sales. This is due to the slight deviation in expenses that were paid in advance during the first year and additional expenses that did not occur after the fifteenth month. Given that Home Depot will sell the entire first-year production run, profits are healthy. The second and third years see modest growth. Check out the Highlights section in this business plan.

Garden Crafts can provide healthy returns for a small investment. These factors include the experience and skills of the founders as well as a commitment from Home Depot. Unique design is also a key factor in Garden Crafts’ success.

1.1 Objectives

Objectives for Garden Crafts:

1. Build a workshop to produce 10,000 Sit N&#8217’s Caddy units annually.
2. Make a brochure and spec sheet for the Sit N&#8217’ Caddy.
3. Design efficiency can reduce production costs.

1.2 Mission

Garden Crafts will focus on quality in its production process and shipping. The Sit N&#8217′ Caddy is a hybrid garden stool/caddy. We plan to build a business around this product. We will ensure that all employees have safe working conditions, putting this first before our profits.

We will be using a variety marketing strategies to reach a broad range of gardening enthusiasts to bring what we believe to be a valuable resource to any gardener’s shed. Garden Crafts will also keep an open mind with regards to new methods of production, changes to our product line, and custom orders from interested clients.

We will never lose sight of our customers, but our profits will be kept in mind.

Success Keys 1.3

We will use these keys to achieve success:

1. The most effective promotion is the best. If we aren’t easily visible to the gardeners, we won’t be able to sell.
2. Efficiency in production is key to our success.
3. Flexibility. This product has been designed for gardeners.
4. Think outside the box. We won’t limit ourselves to one concept.

We will be presented with new opportunities and we need to be alert and open to them.