Are you about starting a mannequin manufacturing business? If YES, here is a complete sample mannequin manufacturing business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a mannequin manufacturing business.
We also took it further by analyzing and drafting a sample mannequin manufacturing marketing plan template backed up by actionable guerrilla marketing ideas for mannequin manufacturing companies. So let’s proceed to the business planning section.
Why Start a Mannequin Manufacturing Business?
Starting a business might not come cheap, but one thing is certain, if you are able to successfully launch a viable business, you will definitely be glad that you did. This is so because starting a business of your own is one sure way of becoming financially stable.
The rule of thumb in choosing a business to launch is to look out for a business whose products or services are needed in our everyday life; a business whose products can be purchased by the rich as well as the poor and a business that is less competitive in your location.
One of such businesses is a mannequin manufacturing business. It is a fact that mannequins are used by boutiques and fashion houses et al. Mannequin manufacturing business is indeed a profitable business that an aspiring entrepreneur with the required startup capital can successfully launch and grow from scratch to profitability.
If you are interested in starting a mannequin manufacturing company, then you would find this sample mannequin manufacturing company business plan template highly useful.
A Sample Mannequin Manufacturing Business Plan Template
1. Industry Overview
A mannequin which is also known as a manikin, dummy, lay figure or dress form is an often articulated doll used by artists, tailors, dressmakers, window – dressers and others to display or fit clothing.
The term is also used for life-sized dolls with simulated airways used in the teaching of first aid, CPR, and advanced airway management skills such as tracheal intubation and for human figures used in computer simulation to model the behavior of the human body. During the 1950s, mannequins were used in nuclear tests to help show the effects of nuclear weapons on humans.
If you take a closer look at the Toy, Doll and Mannequin manufacturing industry, you will realize that operators in the industry have experienced a challenging operating environment over the past five years. Owing to the fact that price competition in this industry is high, domestic players in the industry have been forced to reduce prices to compete with inexpensive imports sourced from developing countries with low-labor costs.
As a labor-intensive industry, imported products have a significant advantage because foreign manufacturers are able to pass low production cost savings onto the consumer in the form of low product selling prices. As a result, domestic operators have been forced to settle for lower profit margins to compete with low-cost imports. The industry is expected to continue declining, albeit more slowly, over the five years to 2022.
The Toy, Doll and Mannequin manufacturing industry is indeed a thriving and viable business in most countries of the world. Statistics has it that in the united states of America alone, the Toy, Doll and Mannequin Manufacturing industry generates over $2 billion annually from more than 595 registered and licensed big toy, doll and mannequin manufacturing companies scattered all around the United States of America.
The industry is responsible for the employment of over 6,254 people. Experts project the toy, doll and game manufacturing industry to grow at a -3.1 percent annual rate. The establishment in this industry that has a dominant market share in the United States of America are; Cartamundi and K’NEX.
According to report published by IBISWROLD, the Toy, Doll & Mannequin Manufacturing industry is in the declining stage of its life cycle. Although decline in industry revenue is expected to decelerate over the five years to 2022, IBISWorld expects that industry value added (IVA), which measures an industry’s contribution to GDP, will decline at an annualized rate of 2.1 percent over the 10 years to 2022.
This indicates a rapid decline, as compared with an expected growth rate of 2.1 percent for GDP during the same period. Enterprises in this industry will continue to decline as the industry consolidates and operators exit the industry in response to a high level of import penetration. A rise in imports is expected to continue, aided by a strengthening US dollar.
In summary, the toy, doll and mannequin manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small or large scale with standard mannequin manufacturing factories in the United States of America and in countries in Asia where you can get cheaper labor and raw materials.
2. Executive Summary
Campbell Johnson® Mannequin Manufacturing, Inc. is a registered mannequin manufacturing company that will be located in Jefferson City – Missouri. We have been able to secure all the necessary permits for our facility.
Campbell Johnson® Mannequin Manufacturing, Inc. will manufacture a wide range of mannequins, toys, and dolls. We will be involved in designing and manufacturing of action figures, articulated doll used by artists, tailors, dressmakers, window – dressers and others especially to display or fit clothing; life-sized dolls with simulated airways used in the teaching of first aid, CPR, and advanced airway management skills; and human figures used in computer simulation to model the behavior of the human body. We are set to service a wide range of clientele not just in the United States of America, but also in all parts of the world.
We are aware that there are several mannequin manufacturing companies all around the United States of America, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to favorably compete with all our competitors.
Campbell Johnson® Mannequin Manufacturing, Inc. will ensure that all the mannequins, toys, and dolls that leaves our factory are of the highest quality and affordable. We want to build a business with a wide client base that cut across people and businesses of different financial status. We have a CRM software that will enable us manage a one on one relationship with our customers.
Campbell Johnson® Mannequin Manufacturing, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.
Campbell Johnson® Mannequin Manufacturing, Inc. is a family business that is owned by Campbell Johnson and his immediate family members. Campbell Johnson has a Degree in Production Engineering, with well over 10 years’ experience in the manufacturing industry.
3. Our Products and Services
Campbell Johnson® Mannequin Manufacturing, Inc. is in the toy, doll and mannequin manufacturing industry to manufacture a wide range of mannequins (action figures, articulated doll used by artists, tailors, dressmakers, window – dressers and others especially to display or fit clothing; life-sized dolls with simulated airways used in the teaching of first aid, CPR, and advanced airway management skills; and human figures used in computer simulation to model the behavior of the human body). We are set to services a wide range of clientele in the United States of America and other parts of the world.
4. Our Mission and Vision Statement
- Our vision is to become one of the top 10 brands in the toy, doll and mannequin manufacturing industry in the United States of America.
- Our mission is to establish a world – class mannequin manufacturing company whose products will not only be retailed and used in the United States of America, but also be exported to other countries of the world.
Our Business Structure
Campbell Johnson® Mannequin Manufacturing, Inc. do not intend to start a small scale mannequin manufacturing business. We intend to build a standard mannequin manufacturing company in Santa Jefferson City – Missouri. Although our mannequin manufacturing company might not be as big as Cartamundi and K’NEX et al, but we will ensure that we put the right structure in place that will support the kind of growth that we have in mind.
We will ensure that we hire qualified, honest, customer centric people that are ready to work to help us build a prosperous business. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Production Manager
- Human Resources and Amin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Mannequin Designers and Machine Operators
- Accountants/Cashiers
- Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, appraising job results and developing incentives.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals
- Accountable for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Production Manager:
- Responsible for managing the daily activities in the mannequin manufacturing factory
- Ensures that proper records of mannequins and other related products are kept and warehouse does not run out of finished products
- Ensures that the factory is in tip top shape
- Supervises the workforce in the factory.
Merchandise Manager
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure quality raw materials are purchased and used for the manufacturing of toys, dolls and mannequins
- Responsible for the purchase of raw material for the organization
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- Manages external research and coordinates all the internal sources of information to retain customers and attract new ones
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Mannequin Designers and Machine Operators
- Responsible for designing and manufacturing of action figures, articulated doll used by artists, tailors, dressmakers, window – dressers and others, especially to display or fit clothing, life-sized dolls with simulated airways used in the teaching of first aid, CPR, and advanced airway management skills; and human figures used in computer simulation to model the behavior of the human body
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
6. SWOT Analysis
Campbell Johnson® Mannequin Manufacturing, Inc. is in business to become one of the leading toy, doll and mannequin manufacturing companies in the United States of America and we are fully aware that it will take the right business concept, management and organizational structure to achieve our goal.
We are quite aware that there are several mannequin manufacturing companies all over the United States of America, which is why we are following the due process of establishing a business. We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Campbell Johnson® Mannequin Manufacturing, Inc. employed the services of an expert HR and Business Analyst with bias in the manufacturing industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Campbell Johnson® Mannequin Manufacturing, Inc.;
- Strength:
Our core strength lies in the quality of our finished mannequins, the power of our team and the state of the art factory that we own. We have a team of highly trained designers and support staff members that can produce high quality mannequins. We are well positioned in the heart of Jefferson City – Missouri and we know we will attract loads of clients from the first day we open our mannequin manufacturing company for business.
- Weakness:
A major weakness that may count against us is the fact that we are a new mannequin manufacturing company and we don’t have the financial capacity to compete with multi – million dollars’ mannequin manufacturing companies such as Cartamundi and K’NEX et al. So also, we may not have enough cash reserve to promote our brand the way we would want to do.
- Opportunities:
The fact that we are going to be operating our mannequin manufacturing company in Jefferson City – Missouri provides us with unlimited opportunities to sell our mannequins to a large number of customers. We have been able to conduct thorough feasibility studies and market survey and we know what our potential customers will be looking for when they visit our warehouse and showroom; we are well positioned to take on the opportunities that will come our way.
- Threat:
One of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new mannequin manufacturing company in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
If you take a closer look at the toy, doll and mannequin manufacturing Industry, you will realize that stagnant product prices and of course key demographic variables have affected the industry over the years. Surprisingly, growth in the number of businesses that make use of mannequins has not been sufficient to compensate for stagnant prices.
Going forward, wealth gains resulting from increases in per capita disposable income and improvements in equity markets will positively impact the sale of mannequins.
Larger companies have economies of scale in distribution and marketing, and small scale toy, doll and mannequin manufacturing companies can compete successfully by targeting low income earning brackets in the society. Domestic operators have been forced to settle for lower profit margins to compete with low-cost imports and many Chinese-manufactured mannequins have been recalled due to unsafe levels of lead and choking hazards.
Lastly, as part of marketing strategies, toy, doll and mannequin manufacturing companies ensure that they are always following the trends if indeed they want to maintain their market share in the industry.
8. Our Target Market
We know that there is a large market for mannequins in the United States of America and of course all across the globe. In view of that, we have positioned our company to service the clientele in the United States of America and other parts of the world.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in the toy, doll and mannequin manufacturing industry to manufacture a wide range of mannequins for the following customers;
- Boutiques
- Artists
- Tailors
- Dressmakers
- Window – dressers
- Computer Simulators
- First Aid Trainers
Our Competitive Advantage
A close study of the toy, doll and mannequin manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative with your designs and market approach, customer centric and proactive if you must survive in this industry. We are aware of the competition and we are prepared to compete favorably with other leading companies in the United States and the globe.
Campbell Johnson® Mannequin Manufacturing, Inc. is launching a standard toy, doll and mannequin manufacturing company that will indeed become the preferred choice of businesses in Jefferson City – Missouri and every other location where we intend marketing our products.
Our competitive advantage lies in the quality of our finished products, the power of our team and the state of the art factory that we own. We have a team of highly trained designers and support staff that can produce high quality mannequins. We are well positioned in the heart of Jefferson City – Missouri and we know we will attract loads of clients from the first day we open our business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Campbell Johnson® Mannequin Manufacturing, Inc. is in business to manufacture and retail a wide range of mannequins in the United States of America and other parts of the world. We are in the toy, doll and game manufacturing industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.
In essence, our source of income will be the manufacturing and retailing of a wide range of mannequins.
10. Sales Forecast
One thing is certain when it comes to mannequins manufacturing business, if you are into the manufacturing or various types of toys, mannequins and dolls, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in the United States of America and of course the rest of the world and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Jefferson City – Missouri.
- First Fiscal Year: $350,000
- Second Fiscal Year: $750,000
- Third Fiscal Year: $1 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing or retailing mannequins within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to launch Campbell Johnson® Mannequin Manufacturing, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become one of the preferred choice of customers not only in Jefferson City – Missouri, but also throughout the United States and the globe.
We hired experts who have good understanding of the toy, doll and mannequin manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in the United States of America.
In summary, Campbell Johnson® Mannequin Manufacturing, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our mannequins manufacturing company by sending introductory letters alongside our brochure to businesses that make use of mannequins
- Ensure that we manufacture a wide range of mannequins
- Make use of attractive hand bills to create awareness and also to give direction to our retailing outlets
- Position our signage / flexi banners at strategic places around Jefferson City – Missouri
- Create a loyalty plan that will enable us reward our regular customers
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our mannequin manufacturing company and retail outlets are well located, we will still go ahead to intensify publicity for the business.
Campbell Johnson® Mannequin Manufacturing, Inc. has a long term plan of opening our outlets in various locations all around Jefferson City – Missouri and other key cities in the United States which is why we will deliberately build our brand to be well accepted in Jefferson City – Missouri before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Campbell Johnson® Mannequin Manufacturing, Inc.;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Jefferson City – Missouri
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our mannequin manufacturing company and showroom in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that give leverage to a mannequin manufacturing company. It is normal for consumers to go to places where they can get toys, dolls and mannequin at cheaper price which is why big player in the industry like Cartamundi and K’NEX et al. will always attract loads of clients.
We know we don’t have the capacity to compete with Cartamundi and K’NEX et al, but we will ensure that the prices and quality of all the toys, dolls and mannequin that we manufacture are competitive with what is obtainable amongst mannequin manufacturing companies within our level.
- Payment Options
The payment policy adopted by Campbell Johnson® Mannequin Manufacturing, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Campbell Johnson® Mannequin Manufacturing, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of our products without any stress on their part.
13. Startup Expenditure (Budget)
Starting a manufacturing cum production business requires detailed planning and budgeting hence the need for us to carry out a thorough market research and feasibility studies for us to be able to have a clear estimate of the amount needed to launch the business. In view of that, here are the key areas where we will spend our startup capital on;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Campbell Johnson® Mannequin Manufacturing, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring Business Consultant – $2,500.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
- The total cost for long – term leasing of a standard manufacturing factory and warehouse- $250,000
- The total cost for remodeling the manufacturing factory and warehouse – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The total cost for Start-up inventory (purchase of mannequin making tools and equipment and the purchase of mannequin making raw materials inclusive) – $100,000
- The total cost for counter area equipment – $9,500
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The total cost for the purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The total cost of launching a website: $600
- Miscellaneous: $10,000
We would need an estimate of $450,000 to successfully set up our toy, doll and game manufacturing business in mannequin manufacturing company.
Generating Startup Capital for Campbell Johnson® Mannequin Manufacturing, Inc.
Campbell Johnson® Mannequin Manufacturing, Inc. is a privately registered family business that is solely owned and financed by Campbell Johnson and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Campbell Johnson® Mannequin Manufacturing, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to manufacture durable and quality mannequins and to retail our products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Campbell Johnson® Mannequin Manufacturing, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if all these are put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility (mannequin manufacturing factory and warehouse): In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of mannequin making machines and equipment: Completed
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of mannequins that we will be manufacturing: Completed
- Establishing business relationship with vendors – supplier of mannequins making raw materials, key stakeholders and wholesale suppliers of toy, doll and mannequins related products: In Progress