Do you want to start a greeting card business and need to write a plan? If YES, here is a sample greeting card business plan template & feasibility report.
Businesses that are worth going for are those you are certain people would need your services or products quite frequently. Greeting card wholesale and retail business falls under this category; you can be certain that there would be occasions of celebration that would make people purchase greeting cards for colleagues, friends and family members.
So, if you are looking for a business to start as an aspiring entrepreneur who has an interest in selling stuffs, you can open a greeting card wholesale and retail shop in your city.
One good thing about this type of business is that you don’t need qualifications to start and run it; you just require basic business skills such as customer service skills, accounting skills, bargaining skills, networking skills and of course overall business management skills.
When starting this business, you should ensure that you carry out feasibility studies and market survey. Business plan is yet another very important business document that you should not take for granted while launching your business.
Below is a sample greeting card wholesale and retail business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Greeting Card Business Plan Template
1. Industry Overview
Greeting card wholesale and retail business is part of the Gift Shops and Card Stores industry and players in this industry retail a range of gifts, gift wrap, novelty merchandise, souvenirs, greeting cards, party supplies and seasonal and holiday decorations.
It is important to state that this industry does not include retailers that operate as used merchandise stores, electronic shopping, mail-order houses and discount retail stores.
If you are close observer of happenings in this industry, you will notice that the Gift Shops and Card Stores industry has displayed signs of contraction as external competition has caused the number of operators to fall over the past five years.
On the other hand, industry revenue has continued to rise as consumers have increased their discretionary spending on nonessential items that are predominant in this industry.
Please note that the continued growth of per capita disposable income has also enabled consumers to travel more and purchase items from gift shops and other industry operators. Going forward especially as it relates to projecting for the five years, the industry is anticipated to benefit from rising disposable income levels and tourist activity.
Statistics has it that in the united states alone, the Gift Shops and Card Stores industry generates over $19 billion annually from more than 61,279 businesses. The industry is responsible for the direct employment of over 188,120 people.
Experts project the Gift Shops and Card Stores industry to grow at a 0.2 percent annual rate. Hallmark Cards Inc. American Greetings Corporation LLC and Party City Holdco are the establishments in this industry that has the lion market shares in the industry.
A recent report published by IBISWorld shows that the Gift Shops and Card Stores industry is in the mature stage of its life cycle.
The report further revealed that over the 10 years to 2023, industry value added, which measures the industry’s contribution to the overall domestic economy, is estimated to increase at an annualized rate of 1.0 percent, whereas US GDP is projected to expand an annualized 2.2 percent during the same period.
This industry is growing at a slightly slower rate than the economy as a whole, but its growth generally mirrors that of the US at large, which is characteristic of a mature industry. Industry revenue is expected to grow relatively consistently over this period however, intensifying competition from alternative retailers will likely mitigate any faster growth.
The market for the greeting card wholesale and retail business is also no longer limited to a single customer or to women, especially as women once made up the largest segment of the industry’s market, as both customers as well as recipients. The market has now expanded to include the corporate client.
The Gift Shops and Card Stores industry has minimal barriers to entry, with low startup capital and no specific licensing requirements.
The majority of greeting card retail shops operate as a one – outlet business and the capital costs of establishing greeting cards wholesale and retail shop outlets are not substantial relative to many other retail industries, such as department stores with chains of outlets all over the country.
On the other hand, the high level of competition and market saturation in a declining industry can prove challenging to aspiring entrepreneurs who want to start their own business. Most players in the Gift Shops and Card Stores industry are small – to medium – size establishments that cater to the local community.
If you are contemplating opening a greeting card retail shop business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies so you that you will be able to get the ideal location to launch your greeting card business.
2. Executive Summary
Happy People™ Greeting Cards Shop, LLC is a registered greeting cards wholesale and retail shop business that will be located in one of the busiest business cum market districts in Carson City – Nevada.
We have been able to lease a shop facility along a major road that is big enough to fit into the kind of business we intend launching and the shop facility is located in a corner piece property directly opposite the largest shopping mall in Carson City – Nevada.
Happy People™ Greeting Cards Shop, LLC will be involved in retailing a wide range of greeting cards and related merchandize. We will also be involved in helping our clients wrap and deliver their greeting cards as instructed.
We are aware that there are several greeting cards wholesale and retail shops all around Carson City – Nevada, which is why we spent time and resources to conduct thorough feasibility studies and market survey so as to offer much more than our competitors will be offering.
We have delivery service options for our customers, and our outlet has various payment options. Our customer care will be second to none in the whole of Carson City – Nevada. We know that our customers are the reason why we are in business which is why we will get them satisfied when they visit our shop.
Happy People™ Greeting Cards Shop, LLC 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 client’s needs precisely and completely.
Our plan is to position Happy People™ Greeting Cards Shop, LLC to become the leading brand in the greeting cards wholesale and retail industry in the whole of Nevada, and also to be amongst the top 10 greeting cards wholesale and retail shops in whole of the United States of America within the first 10 years of opening our first shop.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are confident that Carson City – Nevada is the right place to launch our business before spreading to other parts of the United States.
Happy People™ Greeting Cards Shop, LLC is a family business that is owned by Sharon Pearce and her immediate family members. She has the required exposure, experiences, qualifications and skills that will help her grow the business in the shortest time frame possible.
Although the business is launching out with just one outlet in Carson City – Nevada, but there is a plan to open other outlets all around key cities in the United States of America via franchising.
3. Our Products and Services
At Happy People™ Greeting Cards Shop, LLC we make a wide range of greeting cards in terms of sizes and niches (products) et al; we will engage in retailing and wholesale distribution. As part our strategy to create multiple sources of income in line with our core business concept, we will go into franchising and consultancy services.
Our intention of starting Happy People™ Greeting Cards Shop, LLC is to make profits from the gift shops and cards stores industry and we will do all that is permitted by the law in the US to achieve our aim and ambition. Here are some of our products and services;
- Single greeting cards
- Greeting cards sold in boxed sets
- Customized / handmade greeting cards
- Packaging and delivery services
- Franchising
4. Our Mission and Vision Statement
- To be amongst the top 10 leading greeting cards wholesale and retail shops in the United States of America before our 10th anniversary.
- Our mission is to build a greeting cards wholesale and retail business that will meet the needs of all our customers in the regions/cities where we have our outlets and to sell franchise all across the United States of America and Canada.
Our Business Structure
As part of our plan to build a standard greeting cards wholesale and retail shop in Carson City – Nevada, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent and hardworking employees to occupy all the available positions in our organization.
The kind of business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in the industry as long as they are willing and ready to work with us to achieve our business goals and objectives. Below is the business structure that we will build Happy People™ Greeting Cards Shop, LLC;
- Chief Executive Officer
- Shop Manager
- Merchandize Manager
- Sales and Marketing Officer
- Accountants / Cashiers
- Information Technologist
- Drivers / Deliverers
- Customer Service Executives
- Cleaners
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Shop Manager
- Responsible for overseeing the smooth running of the greeting cards wholesale and retail shop
- Part of the team that determines the quantity, types and brands of greeting cards to be retailed in our store
- Maps out strategy that will lead to efficiency amongst workers in the shop
- Responsible for training, evaluation and assessment of the entire workforce
- Ensures that the shop meets the expected safety and health standard at all times.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Merchandize Manager
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Help to ensure consistent quality of greeting cards on our rack
- Responsible for the purchase of greeting cards for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- 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
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Information Technologist
- Manages the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manages the organization’s CCTV
- Handles any other technological and IT related duties.
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
Distribution Van Drivers:
- Delivers customer’s orders promptly
- Runs errand for the organization
- Handles any other duty as assigned by the sales and marketing executive
Client Service Executive
- Responsible for taking orders from clients when the call or email the organization
- Ensures that all contacts with customer (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
- Manages administrative duties assigned by the shop manager in an effective and timely manner
- Consistently stays abreast of any new information on Happy People™ Greeting Cards Shop, LLC products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
Cleaners:
- Responsible for cleaning the entire shop facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the manager.
6. SWOT Analysis
Due to our desire and drive for excellence, we were able to engage some of the finest business consultants in Carson City – Nevada to look through our business concept and together we were able to examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard greeting cards wholesale and retail shop that can compete favorably compete with other leading brands in the industry.
In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to if we launch our greeting cards wholesale and retail business in Carson City – Nevada.
Here is a of what we got from the critically conducted SWOT Analysis for Happy People™ Greeting Cards Shop, LLC;
- Strength:
Our strength lies in the fact that we have a wide range of both handmade and mass – produced greeting cards that can meet the needs of a wide range of customers. We have the finance, facility and competent workforce that has positioned us to compete in the industry.
Another factor that counts to our advantage is the background of our Chief Executive Office; she has a robust experience in the industry. We are not ignoring the fact that offering consultancy services and running a franchise is definitely going to count as a positive for us.
- Weakness:
The fact that we are setting up a greeting cards wholesale and retail business in a city with other leading greeting card outlets might likely pose a challenge for us in breaking into the already saturated market in Carson City – Nevada.
In essence our chosen location might be our weakness. But nevertheless, we have plans to launch out with a big bang. We will be able to create a positive impression and we have a proper handle when it comes to building on already gathered momentum.
- Opportunities:
A rise in consumer spending may lead to more consumers purchasing high-cost greeting cards. Furthermore, revitalized discretionary spending among consumers incites businesses to purchase mail order catalogs from industry publishers. Consumer spending is expected to increase in the coming year, representing a potential opportunity for the industry.
- Threat:
Although the Greeting Cards business includes companies that retail both print and electronic products, it does not include companies that solely retail their products digitally.
Consumers are increasingly able to access alternatives to industry products on their mobile phones and tablets, which has hastened the shift toward companies that solely provide digitally based substitutes. External competition is expected to intensify in the coming year, posing a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
The Gift Shops & Card Stores industry has risen slowly over the last five years while combatting lackluster consumer spending and changing preferences pattern. The introduction of technology and subsequently online retail store has indeed helped in reshaping the industry.
It is now a common phenomenon for retail outlets and greeting cards wholesale and retail shops to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology helps retailers to maximize supply chain efficiencies.
No doubt data collected from customers goes a long way to help greeting cards wholesale and retail shops serve them better. The market for greeting cards is also no longer limited to a single customer or to women, especially as women once made up the largest segment of the industry’s market, as both customers as well as recipients.
The market has now expanded to include the corporate client. As a matter of fact, external factors such as Domestic trips by US residents and Per capita disposable income in the Gift Shops & Card Stores industry impact the overall performance in this industry.
8. Our Target Market
When it comes to greeting cards sales and delivery business, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in the location where we intend opening our shops.
In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. These are the groups of people we intend marketing our greeting cards to;
- Households
- Corporate Organizations
- Corporate Executives
- Government Officials
- Business People
- Celebrities
- Military Men and Women
- Sports Men and Women
- Students
- Tourists
- Everyone who resides in our target locations.
Our Competitive Advantage
Our aim of starting Happy People™ Greeting Cards Shop, LLC, is to build a business that can grow within the first 10 years of establishing it to be listed amongst the top 10 greeting cards wholesale and retail shops in the United States of America and also to sell our franchise. With that in mind, we have been able to come up with strategies that will help us compete favorably in the industry.
Another competitive advantage that we have a wide range of handmade and mass – produced greeting cards that can meet the needs of a wide range of customers. We have a competent workforce that has positioned us to meet the demand of products even if the demand tripled over night.
Another factor that counts to our advantage is the background of our Chief Executive Office; she has a robust experience in the industry. We are not ignoring the fact that offering consultancy services and running a franchise is definitely going to count as a positive for us.
Lastly, we can boast of having attractive product presentation and effective quality control. We are not taking for granted that our excellent customer service culture, highly competitive prices, reliable and easy to use payment option and the visibility of our outlets will serve as a competitive advantage for us.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Happy People™ Greeting Cards Shop, LLC is established with the aim of maximizing profits in the Gift Shops & Card Stores industry in the United States of America and we are going to go ensure that we do all it takes to sell a wide range of greeting cards to a wide range of customers.
Happy People™ Greeting Cards Shop, LLC will generate income by offering the following products and services;
- Single greeting cards
- Greeting cards sold in boxed sets
- Customized / handmade greeting cards
- Packaging and delivery services
- Sale of franchise and consultancy services
10. Sales Forecast
We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income/profits from the first month of operation and grow the business and clientele beyond Carson City – Nevada.
We have been able to examine the Gift Shops & Card Stores industry, we have analyzed our chances in the industry and we were able to come up with the following sales forecast. Below is the sales projection for Happy People™ Greeting Cards Shop, LLC, it is based on the location of our business and our competitive advantage;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $500,000
- Third Fiscal Year (FY3): $700,000
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 offering same products and services as we do 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 Happy People™ Greeting Cards Shop and also the types of greeting cards to retail, we conducted a thorough market survey and feasibility study in order for us to be able to penetrate the available market in the cities where we intend positioning our business. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the Gift Shops & Card Stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market Carson City – Nevada and throughout the United States of America where we intend selling our franchise.
In summary, Happy People™ Greeting Cards Shop, LLC will adopt the following sales and marketing approach to sell our products;
- Introduce our greeting cards wholesale and retail shop – brand by sending introductory letters to residents, corporate organizations and other stakeholders in Carson City – Nevada
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages’ ads (local directories)
- Leverage on the internet to promote our greeting cards wholesale and retail shop brand
- 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 greeting cards wholesale and retail shop is a standard one with a wide range of products that can favorably compete with other leading brands in the United States, we will still go ahead to intensify publicity for all our brand. We are going to explore all available means to promote Happy People™ Greeting Cards Shop, LLC.
Happy People™ Greeting Cards Shop, LLC has a long term plan of opening outlets in various locations all around the United States of America and also to sell our franchise which is why we will purposefully build our brand to be well accepted in Carson City – Nevada before venturing out to other cities in the United States of America.
Here are the platforms we intend leveraging on to promote Happy People™ Greeting Cards Shop, LLC;
- Place adverts on both print (community based newspapers and lifestyle magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
- Install our Bill Boards on strategic locations all around major cities in the United States of America
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
Generally, the prices for greeting cards and similar products are relatively affordable hence there is no need to employ any detailed strategies when it comes to pricing.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our greeting cards are sold a little bit below the average market price. We have put in place business strategies that will help us run on low profit margin for a period of 6 months; it is a way of encouraging people to buy into our brand.
- Payment Options
The payment policy adopted by Happy People™ Greeting Cards Shop, LLC 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 Happy People™ Greeting Cards Shop, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our greeting cards without any stress on their part.
13. Startup Expenditure (Budget)
When it comes to starting a standard greeting cards wholesale and retail business, one is expected to spend the bulk of the startup capital in renting a store facility. You are also expected to purchase distribution vans, purchase commodities, and pay your employees and utility bills.
These are the key areas where we will spend our startup capital;
- The Total Fee for Registering the Business in Carson City – Nevada – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Happy People™ Greeting Cards Shop, LLC 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 cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $55,200.
- 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) – $50,000
- The cost for Start-up inventory (a wide range of handmade and mass – produced greeting cards and related merchandize et al) – $80,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase of distribution vans – $20,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a Website – $600
- Miscellaneous – $5,000
We would need an estimate of two hundred and fifty thousand dollars ($250,000) to set up our greeting cards wholesale and retail business in Carson City – Nevada.
Generating Funds/Startup Capital for Happy People™ Greeting Cards Shop, LLC
Happy People™ Greeting Cards Shop, LLC is a family business that is owned and financed by Mrs. Sharon Pearce and her immediate family members. They do not intend to welcome any external business partners which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 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
Part of the plans we have in place to sustain Happy People™ Greeting Cards Shop, LLC is to ensure that we continue to make available a wide range of greeting cards, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Happy People™ Greeting Cards Shop, LLC adopt the use of payment machine and accounting software to run the business.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store. We will not waste time in adopting new technology, best practices and diversifying our services.
Happy People™ Greeting Cards Shop, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are 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.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is 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 store facility and re – construction of the store facility: 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 Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- 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
- Establishing business relationship with vendors – wholesale suppliers / merchants of handmade and mass – produced greeting cards and related merchandize: In Progress
- Purchase of delivery vans: Completed