QGT1_Business_Plan_Hope_Hreha_000234528

Student ID 000234528 Hreha Business Capstone Business plan Version 1
page 1
GrumpleWear Business Plan
Hope F. Hreha
Founder & President
2216 Harden Circle
Hendersonville, NC 28739
(828) 693-0051
grumplewear@hilarious.com
June 1, 2014

page 2
Contents
Contents.........................................................................................................................................................................2
A.Executive Summary..................................................................................................................................................3
B.Company Summary..................................................................................................................................................6
C.Market Analysis......................................................................................................................................................12
D.Market Strategy......................................................................................................................................................17
D1: 4Ps......................................................................................................................................................................17
Pricing..................................................................................................................................................................17
Product.................................................................................................................................................................18
Place.....................................................................................................................................................................18
Promotion............................................................................................................................................................18
D2: Price List............................................................................................................................................................20
D3: Selling Strategy..................................................................................................................................................21
D4: Sales Forecast....................................................................................................................................................27
E.Implementation Strategy........................................................................................................................................30
E1. Overall Strategy..................................................................................................................................................31
E2. Implementation...................................................................................................................................................32
E3. Control Plan........................................................................................................................................................39
F.Financial Statements and Projections....................................................................................................................42
F1. Revenue and Cost Estimate................................................................................................................................42
F2. Forecasted Profit and Loss Statement................................................................................................................42
F3. Forecasted Balance Sheet...................................................................................................................................44

page 3
G1. Financial Projections...........................................................................................................................................46
G1a- Breakeven Point...............................................................................................................................................46
G1b-Financial Position.............................................................................................................................................47
G1c-Capital/Investment Needs: ...............................................................................................................................48
References....................................................................................................................................................................49
A. Executive Summary
A1. Business Identification:
GrumpleWear is a small business whose corporate office is located in Hendersonville, North
Carolina. GrumpleWear offers high-quality, humor-based t-shirts manufactured in the United
States. Merchandise will be sold via the GrumpleWear online store (www.grumplewear.com).

page 4
This business plan outlines the sales goals slated for the first year of operation along with the
associated costs, the methodology that will guide the company’s growth and identify the capital
needs required to successfully launch and sustain the business in the initial year of operation.
A2. Mission, Goals and Objectives:
GrumpleWear’s mission is to offer best-in-class quality, U.S. manufactured clothing infused with
sarcastic humor that speaks to the inner “grumple” of our customers.
In support of the company missions, the following goals have been identified:
1) Be an industry leader by setting the stand for high-quality t-shirts
2) Capitalize on the trend among U.S. customers for goods made within the country
3) Provide socially relevant messages delivered with humor
4) Provide superior service to and build a relationship with our customers
5) Ensure growth of the company through fiscal responsibility, commitment to quality and
establishing strong brand recognition.
In further of these goals, the company will pursue the following objectives:
1) Development of a relationship with a U.S. based company that produces goods within the
country. Build a partnership that is focused on ongoing improved quality of manufactured
goods. Participation will go beyond the typical organization/vendor relationship with a focus
on building a long-term strategic alliance that benefits both companies.
2) Develop brand recognition through careful marketing and ongoing maintenance of the brand.

page 5
3) Increase sales month-over-month with review of monthly reporting to assess actual sales with
goals; examine underlying causes of variation and adjust future (sales projections, marketing
efforts, cost containment) efforts as necessary
4) Ensure profit through control of costs and reduction in defects through continuous quality
improvement.
A3. Keys to Success:
There are three main keys to the success of GrumpleWear:
1) The first key to success is GrumpleWear’s commitment to quality through all aspects of the
operation, including but not limited to:
a. GrumpleWear garments. GrumpleWear garments must live up to their best-in-class
quality claims through selection of superior materials and workmanship that lead to
longer product life and fewer defects.
b. Marketing. Marketing efforts that support the GrumpleWear brand must clearly
identify what is unique about the GrumpleWear garment and the commitment to the
“grumple” side of life.
c. Financial planning & oversight. Financial planning must reflect an attention to
detail, careful analysis and sound decisions.
d. Customer Service. Creative, well-designed and easy to use website along with
customer-centric post-sales follow-up and support.
e. Packaging. Packaging utilized for fulfillment of product must be able to withstand
the rigors of the delivery process and ensure that product arrives undamaged.
Acceptable condition of delivered product enhances the customer experience and
minimizes post-sales customer service calls made in order to register a complaint.

page 6
2) Pricing that is consistent with a high-quality image and high-quality product. The goal of
GrumpleWear is not to be the cheapest in the business so the pricing of the product should
reflect the quality being offered.
3) Provide humorous content that resonates with customers and reflects GrumpleWear’s
signature attitude. The GrumpleWear brand will not be for everybody, but needs to reflect
the humor and attitude that the GrumpleWear customer expects.
B. Company Summary
B1. Industry History:
The first component to the GrumpleWear business is the merchandise itself: the t-shirt. The t-
shirt has become one of the iconic symbols of America…from the plain tees immortalized by
Marlon Brando in the classic film “A Streetcar Named Desire” to logo-laden garments that make
their wearers instant billboards for the companies whose moniker they display to modern
expressions of individuality of every kind. The t-shirt is an American wardrobe staple that has
moved beyond its utilitarian beginnings.
First issued by the U.S. Navy in the Spanish American War era, the humble t-shirt was plain and
designed to be worn underneath the uniform and soon evolved into a standard issue item for the
Army. (History of the T-Shirt, 2014) The first public display of a printed t-shirt occurred on the
cover of LIFE magazine in 1942 and featured a reference to the Air Force Gunnery School in Las
Vegas, Nevada. Printed t-shirts for the masses, however, did not occur until approximately the
late 1950’s or early 1960’s. (Brown, 2009) Some early versions of the printed t-shirt are still
popular today including the Tie-Dyed t-shirt that made it’s introduction in 1969 to the I ♥ NY t-
shirt introduced in 1977 that spurred a resurgence of tourism for the city and has become the most

page 7
imitated t-shirt in the articles history. (Cellina, 2011) Now one can hardly imagine any band that
doesn’t have a t-shirt supporting their image, cover artwork or song lyrics or any vacation
destination that doesn’t offer up a bevy of locale related t-shirts that remind you of your trips.
Sales information for apparel does not delinate t-shirts from other types of offerings so inferences
regarding sales potential must be made from either general information or by looking at specific
companies. Apparel sales in the United States is undeniably huge business with a reported 250
billion dollars in sales revenue 2013 for fixed point-of-sales locations. The general trend size
1992 has been upward with some softening of the market in 2008 and 2009. Those years still
brought in 216 and 205 billion dollars respectively. The upward trend reinstated itself beginning
in 2010. (Clothing & Clothing Accessories Store Sales, 2014) According to the US Census
Buerau report as of 2009, e-commerce apparel sales represented 74.9% of the total sales for the
segment. (Wholesale & Retail Trade: Online Retail Sales, 2012) Allowing for the differences in
collecting data the conclusion is that the apparel industry offers substantial opportunity. It is also
revealing to look at the sales of a heavy weight in the t-shirt business, CafePress, Inc. CafePress
is an online retailer whose product mix is heavily t-shirt related. The company has seen
substantial annual sales and considerable growth. Total sales for the company were 103.49
million in 2009 and 245.86 million in 2013 with growth year over year during that period which
translates into an increase of nearly 138%. (CafePress, 2014)
The second component to the business is the advent of e-commerce. The seeds of the modern
Internet began in 1962 with the U.S. military wanting a way to ensure command and control over
their arsenal of weapons post-nuclear attack and formally launched as the ARPANET in 1968.
(Kristula, 2011) It was six years later in 1974 that the first commercial version of ARPANET,

page 8
Telenet, was introducted. The next several years saw advances in technology, such as the modem
and TCP/IP, that would enable the evolution of the Internet toward widespread dissemination.
Another milestone in this evolution was the introduction of the first commercial Internet Service
Provider (ISP) in the United States in 1989 known as the “The World” and is considered the first
ISP utlized on what we know today as the Internet. Two years later in 1991, the World Wide
Web (WWW) was born which allowed the mass sharing of information. (Who Invented the
Internet, 2014) The World Wide Web in conjuction with the online shopping system cretated by
Michael Adrich led to the modern era of online shopping. (Aldirch, 2011)
E-Commerce sales dollars are no laughing matter and neither is the growth of the industry. First
quarter E-Commerce retail sales were $9.8 billion dollars in 2002. Eleven years later, the first
quarter of 2013 was reported at $61.2 billion. (Monthly & Annual Retail Trade, 2014) Online
retail sales for the United States are projected to be just over 434 billion in 2017 with apparel
sales accounting for 20.93% of those dollars. (US Online Retail Sales, 2013)
The Internet and the E-Commerce potential that it has created do not exist in a bubble, but have
had profound affects on consumer behavior, the retail world itself and the industries that support
it. Consumers no longer have to go to brick-and-mortar stores to make their purchases for
everything from apparel to cars to groceries and now have access to items that may not be
available for purchase locally, but can arrive directy to their homes through an assortment of
delivery options. This shift in “consumer buying behavior is really forcing retailers to rethink
their entire fulfillment and supply chain model” and impacts shippers such as UPS, FedEx and
the United States Postal Service. (Berman, 2013) The Order Fulfillment Services industry has
benefited from the increase in E-Commerce sales as many companies outsource the services they

page 9
see as outside their core competancies. (Order Fulfillment Services in the US Industry, 2014)
Companies are now in the position of having to offer an online E-Commerce options in order to
maintain customer satisfaction. Additionally, Marketing has been forced to adapt to an online
and increasingly mobile digital world in order to reach customers. Companies are forced to adapt
and to adopt new technology quickly in order to play in this still relatively new retail world which
requires either developing existing staff, hiring new staff or outsourcing their IT and related
infrastructure needs. And the IT world continues to offer innovations that support, enhance and
improve the E-Commerce World. Financial systems had to be modernized or replaced in order to
support a fast growing electornic trade. (Lakshmi, 2010)
B2. Legal Form of Ownership:
GrumpleWear will be established as a Limited Liability Company (LLC) operating and licensed
in the state of North Carolina. The main advantages of a LLC are that owners are personally
protected from any liability that may be created by the company and flexibility regarding taxes.
A single member LLC, such as GrumpleWear, can choose to be taxed under the same rules as a
sole proprietorship or choose to file as a corporation. (Why Start a LLC? Limited Liability
Company Advantages and Disadvantages, 2014)
While licensing to do business in North Carolina, the company will be formally recognized as a
Delaware company and will utilize a registry agent to assist with this process. The main benefits
of this selection is to capitalize on the state’s large body of business law that helps companies
carefully plan in order to avoid litigation, court decisions are issued without jury trials so the
basis of decisions is from established case law and Delaware’s Chancery court, a separate
business court, has a reputation regarded as one of the finest in the country. Additionally, the
charges associated with establishment and a continuation as a Delaware company are low in

page 10
relation to other options. Delaware recognizes both standard incorporation as well as creation of
Limited Liability Companies. (Why Incorporate in Delaware, 2014)
B3. Location and Facilities:
The company’s home or corporate office will be located at 2216 Harden Circle in Hendersonville,
North Carolina and will be the hub for all marketing, financial, design and other non-
manufacturing roles. Manufacturing of product will occur at the Charlottesville, VA location of
our service provider and strategic partner. The company will engage a number of service
providers who will be located at various locations.
The company will comply, and work with all service providers, to ensure that they comply with
any local, state or regulatory requirements. Based on the nature of the manufacturing work this
includes not only compliance to the Fair Labor Standards Act (FLSA) but to the rules &
regulations set forth by the Occupational Safety & Health Administration (OSHA). Taxes will be
filed on an annual basis as required by the Internal Revenue Service (IRS). Insurance will be
maintained by the manufacturer who will warehouse the inventory and handle order fulfillment.
B4: Management Structure:
As the sole owner and single company paid employee, Hope F. Hreha will serve as President of
GrumpleWear. In this capacity, she will be responsible for the company’s operations. She will
leverage her years of business and consumer affairs experience in the furtherance of the
GrumpleWear mission. Additionally, she holds a CompTia Project+ Certification which will
allow her to successfully plan and manage the various aspects of starting up and running a
business.

page 11
Expansion of GrumpleWear staff will occur based on the needs of the business. Newly hired
employees will be brought on in either a full-time or part-time status as required to handle the
expanding business and will be company (W-2 issued) employees and not contract employees.
GrumpleWear will continue to outsource many of the services in order to leverage the core
competencies of the selected vendors. This also serves to lower the overall operating costs of the
business since services can be secured on an as needed basis instead of dedicating company
funds, via payroll, for underutilized staff. Additionally, a larger footprint and increased site cost
for corporate operations will be avoided through utilizing the outsourcing strategy. At start-up,
corporate expenses will be minimized through operating out of a home office instead of costly
rental or purchase expenses.
B5. Products and Service:
GrumpleWear will offer an exclusive line branded t-shirts that feature:
1) A sarcastic and grumpy style of humor
2) High quality, premium cotton spun into extra-long fibers that enhance the
durability and softness of the material
3) Re-enforced double-needle stitching at all seams to reduce separation
through normal wear and tear
4) Two product options: the GrumpleWear Basic t-shirt and the GrumpleWear
Love-to-Live-in-It super soft t-shirt that does not sacrifice product durability
for enhanced softness
5) Manufacturing in the United States

page 12
C. Market Analysis
C1: Target Market
GrumpleWear’s target market is t-shirt wearers of any age with a great sense of humor that want to speak
for their inner “grumple” or get a gift for the “grumple’ in their life. Since GrumpleWear will only sell
via an online store the target market is limited to those who make purchases from an online store (e-
tailer). Given the expanding nature of E-Commerce, this limitation is not considered to be an impediment
to the business which is tailored for the market.
Additionally, shipping outside of the United States will not be an option at least during the initial year of
operations. Based on feedback from potential customers outside of the United States, the market may be
expanded if the volume supports the additional costs related to international shipping. This restricts the
target market to the United States. Based on the size of the U.S. apparel marketing this also is not
considered an impediment to the business.
While not excluding purchases from those below or above, it is anticipated that the bulk of purchase will
come from individual in the 25-64 age range based on the overall distribution of income across the
various age brackets.

page 13
(Short, 2013)
Utilizing the PRIZM marketing segmentation analysis tool in conjunction with our anticipated age range
and the income ranges indicated for those within the age range, it is anticipated that the target market is
large and covers a diverse group of individuals including those with and without children and living in a
variety of settings from rural to the suburbs to urban centers. (Segment Explorer, 2014)
The market includes individuals who prize the American traits of individuality, freedom of expression
and the flexibility of choice. It is part of the psychological make-up of the modern American. (Markman,
2012) GrumpleWear speaks to each of these important traits.
C2: Industry Analysis –
With apparel sales at 20.93% of an estimated $296.7 billion dollars in online retail sales in the United
States and steady growth indicated over the next several years, the market in term of revenue dollars is

page 14
expanding. Even at 1% of total sales, t-shirts will generate over $620 million in sales dollars. (US Online
Retail Sales, 2013) A company who could achieve a modest ½ percent market share would generate
revenues of over $3 million dollars.
Even in the years of 2008-2009 which saw a decline in overall sales including apparel, the total market
was nothing short of huge. The growth of online sales is forecasted to increase by 62% by 2016 from the
base period of 2011. (Rueter, 2012) As a whole, the indicators indicate positive growth in the industry.
C3: Competitive Analysis-
There are two main types of competitors in the market. The first type is heavily, but not
exclusively, t-shirt oriented. A summary of the top competitors in this segment:
Threadless (www.threadless.com)
Threadless provides offerings across a wide range of subject matters. The truly unique feature of this
website is that it allows artists from around the world to submit their designs. Designs are then displayed
for a seven day period to be evaluated (scored) by registered visitors to the site. The results of those
scores determine which of the designs will be printed and made available to customers. Artists selected
will receive cash and prizes as compensation for a winning design. The focus in on creativity and product
details, including quality components, vary from item to item. A scan of the website found no
information indicating a significant focus on quality and the comments for individual shirts varied from
very pleased to extremely unsatisfied including complaints about the quality of the printing as well as the
quality of the shirts themselves. No information was located regarding the sites of manufacturing. Non-
sales priced items generally ranged from $20.00-$29.00 for short sleeved t-shirts.

page 15
CafePess, Inc. (www.cafrepress.com)
CafePress offers a veritable smorgasbord of products from mugs to golf balls to cufflinks. However, the
best-selling items as indicated by their own ranking were all t-shirts. They also offer a t-shirt designer
that lets customers create a product for their own purchase. As with the Threadless site, product details
are available but are not prominently highlighted. Of the t-shirts viewed no prominent details regarding
product quality were noted in any descriptions. Some t-shirts indicate that they are made in the USA, but
this is not a universal feature of the product offerings. This indicates that multiple suppliers are used and
possibly suggests that no close strategic relationships have been formed. Non-sale priced items generally
ranged in the $7.00 to $50.00 price range for short sleeved t-shirts.
Zazzle (www.zazzle.com)
Like CafePress, Zazzle offers a wide variety of products including photo gifts, various apparel items and
posters to name just a few of the offerings. The website offers a nice, clean and organized feel to it
compared to the first two competitors. The product designer provided is similar to the one offered by
CafePress which allows individual customers to create t-shirts, business cards and other items on demand
for their use. This site also lists product details for each shirt but does so somewhat more prominently
than the first two but still not providing a commanding presence. Some of the shirts reviewed made
specific mention of quality related details, but this was not uniform across all the offerings. Some t-shirts
indicate that they are made in the USA, but this was also not a universal feature of the product offerings.
Non-sale priced items generally ranged in the $15.95 to $33.95 price range for short sleeved shirts.
Woot! (www.shirt.woot.com)

page 16
The www.shirt.woot.com site is part of the larger Woot! Site that offers everything from electronics,
computers and items for the garden along with its t-shirts. This was the least organized and appealing of
all of the sites. A key feature of this site is that it releases a new t-shirt design every night at midnight.
Like Threadless it accepts submissions from artists for possible offering on the site although selection
may be by the Woot! staff or selected by registered site visitors. The artist has the option of selecting
which review and selection process is employed. Every t-shirt also comes with a unique storyline related
to the image. Product details are easy to find in relation to the image. None of the viewed shirts provided
any information regarding any specific quality details and no shirts were identified as being manufactured
in the United States. Shirts are printed in Texas as each shirt is printed after it is ordered. The prince
range for short-sleeve shirts is in the $12-18 range.
The second segment is comprised of mid to large sized department stores that have an online presence. A
few example of companies in this market are JCPenney, Macy’s, Belk’s and Nordstrom. However, they
are focused on offering a wide range of products and are not focused on developing a significant brand
presence in the t-shirt industry.
The primary competitive advantage of GrumpleWear is that it does not want to be the t-shirt company for
everybody, but rather wants to build a unique brand that speaks to a large niche of individuals.
Additionally, while diversification of the product offerings may be considered at a future time, the focus
at inception and for the first year of operation is the production, selling and distribution of high-quality,
humor based t-shirts. Through careful branding measures, quality product and humor that resonates, the
GrumpleWear brand can carve out its place in the large apparel market and perform well.

page 17
D. Market Strategy
D1: 4Ps.
Pricing
Pricing for the product will be based first on the overall quality of the product being offered and reflective
of association with the GrumpleWear brand. GrumpleWear’s goal is not to be the cheapest in the
industry, but a leader in quality, humor-based, in-country manufactured goods and the pricing should
reflect these goals.
The next step in determining price is the distinction between the two product options which are the
“Basic” Tee and the “Love-to-Live-in-It” tee which offers a super soft feel in addition to the high quality
requirements of the product. The additional processing required to achieve the desired feel require an
increase in the pricing.
The final determining factor in pricing is related to the shirt options: short-sleeve versus long-sleeve.
The additional quantity of high-quality fabric used in the long-sleeve option warrants the additional
charge.
In addition to the individual unit pricing of the item, GrumpleWear will offer flat rate shipping for all
orders. A base assumption is that orders will be fulfilled with an average of 1 unit per pricing. The flat
rate shipping is intended to cover shipping charges and fulfillment costs. If additional quantities are
ordered, the increase in revenue is an offset against the additional costs in those areas.

page 18
A full price list is included in D2 of this plan.
Product
GrumpleWear will offer high-quality product that is:
1) Manufactured using high quality, premium cotton spun into extra-long fibers
that enhance the durability and softness of the material
2) An enhanced version of the product that will undergo additional processing
using a specialized brine solution that increases product softness
3) Assembled using re-enforced double-needle stitching at all seams to reduce
separation through normal wear and tear
4) Branded with either only the basic GrumpleWear logo or contain the logo on
the front and a signature GrumpleWear humorous slogan on the back
Place
GrumpleWear products will be available exclusively via the online store at www.grumplewear.com.
Product will be placed into individual bags either at the end of the manufacturing process or at the
beginning of the fulfillment process. Fulfillment of product will be completed at the Charlottesville, VA
site of our manufacturer and strategic partner.
Promotion
Prior to launch, GrumpleWear will be introduced via Press Release via the following sources:
1) 24-7 Press Release (www.24-7pressrelease.com)
2) PR Log (www.prlog.org)
3) T-Shirt Magazine (www.t-shirtmagazineonline.com)

page 19
Social Media pages will be created using the following which will feature product information, product
photos and other teaser material:
1) Facebook
2) Twitter
3) Pinterest
4) Instagram
The marketing strategy utilized will focus on the differentiation of the GrumpleWear product line from
their competitors. Pre-Customer feedback will be solicited about current design options and offer a way
to submit their own “Grumple”-tudes for possible use in a future printing.
Shortly before the launch:
1) Acquire services from the web hosting site specialist to fully enhance the website including ease
of navigation for the customer, attractive design and an easy check-out process.
2) GrumpleWear will contract with a seasoned individual expert in in enhancing the ability of a site
being returned in an online search for keywords associated with the product line. This person
should also have the ability to review the website and make recommendations for keyword
enhancements on the site itself. The site should be constructed in such a way that the site
receives a high return rate based on keyword searches without sacrificing the aesthetic appeal of
the site.
3) Identify the vendors that will be utilized for online marketing and work with their personnel to
craft various ads to for placement on their site. All marketing efforts will be approved by the
president and will be reflective on the GrumpleWear brand image.

page 20
Coinciding with the launch, GrumpleWear
1) Activate paid marketing via on-line sources.
2) Bring the GrumpleWear blog and community online.
Post launch activities will be continued online advertisements and post-sales follow-up and marketing for
customers who elect to receive additional promotions from GrumpleWear. Time will be dedicated to
regular updates on the GrumpleWear blog and ongoing development and enhancement of the “Grumple”
community. Ongoing evaluation of the website will occur and adjustments will be made to enhance the
customer experience furthering both the commitment to the customer and to quality in all aspects of the
organization.
D2: Price List
Item
Code Product Description
Price
Each
GW001 GrumpleWear Basic Tee-Logo (Short Sleeve) $25.00
GW002 GrumpleWear Basic Tee-Design 1 (Short Sleeve) $25.00
GW005 GrumpleWear Love-to-Live-in-It Tee (Short Sleeve) $35.00
GW006 GrumpleWear Love-to-Live-in-It Tee-Design 1 (Short Sleeve) $35.00
GW009 GrumpleWear Basic Tee (Long Sleeve) $30.00
GW010 GrumpleWear Basic Tee-Design 1 (Long Sleeve) $30.00
GW013 GrumpleWear Love-to-Live-in-It Tee (Long Sleeve) $40.00
GW014 GrumpleWear Love-to-Live-in-It Tee-Design 1 (Long Sleeve) $40.00

page 21
Flat Rate Shipping $7.99
D3: Selling Strategy
The following are the key points of the GrumpleWear sales strategy:
1) Product Differentiation. GrumpleWear strives to be a unique player in the online t-shirt industry
through offering:
a. Quality Product-exceeds that of GrumpleWear competitors with a commitment to
ongoing improved quality. This includes acknowledging that what is good enough for
today is not good enough for tomorrow.
b. Brand Recognition-the brand should be easily recognizable with the combination of the
GrumpleWear logo and humor.
2) Customer Relationships-a customer will be viewed as more than just sales revenue. Post-sales
follow-up will be an important part of this along with building an online “Grumple” community
for customers to participate in.
3) Time Management-ongoing analysis of where and how time is spent to ensure that it is focusing
on those things that are most important to the success of the company. Hire additional staff as
required to handle tasks that while they may be important, are not at the core of the business—
quality, humor and the development of customer relationship.
4) Develop a customer-centric website that is easy to navigate and contains an easy shopping cart
and checkout process.
5) Utilize online marketing such as pay-to-click, banner ads and product placement ads on Social
Media sites to reach market. Offline marketing is inappropriate for our target customer.

page 22
In support of the outlined sales strategy, the following project goals along with their target
delivery dates, milestones and project deliverables have been developed. These are also key
items in the Implementation Strategy covered in section E. Certain portions of the detailed items
relate only to pre-launch activities that are required for both the sales strategy and the
implementation process while other components are ongoing concerns of the sales strategy. Not
all items have a defined deliverable as they represent decision points with the next step resulting
from that decision producing a deliverable.

Student ID 000234528 Hreha Business Capstone Business plan Version 1 page 23
Task Responsible Party Milestone Target Completion
Ongoing
? Deliverable Comments
Secure domain President Y 6 months prior to launch N Ownership of domain
Select Graphic Artist President N 6 months prior to launch N
Develop Logo
President/Graphic Artist
Contractor Y 5 months prior to launch N Graphic Files
Trademark Logo President Y 4 months prior to launch N Trademark
Develop Initial Slogans President N 4 months prior to launch N Slogans
Final Vendor Selection
(Manufacturing &
Fulfillment) President N 6 months prior to launch N
Vendor Contract
(Manufacturing &
Fulfillment) President Y 5 months prior to launch N Contract
(Customer Care) President Y 4 months prior to launch Y
Vendor Contract
(Customer Care) President Y 3 months prior to launch Y Contract
Develop Quality
Specifications President/Vendor Y 4 months prior to launch N
Quality specification
document
Develop Total Quality
Program President/Vendor Y 3 months prior to launch Y SOP's
Quality is always to be
considered an ongoing
and evolving concern
Identify Advertising
Markets President N 4 months prior to launch Y
Evaluation of success of
each marketing avenue
is an ongoing and
evolving concern
Develop Ads President/Advertisers Y 2 months prior to launch Y Content
each ad is an ongoing

Select Web Hosting
Site President Y 4 months prior to launch N
Selection is one-time
event; evaluation of
website is ongoing
concern; hosting site
will also include
available options for cc
processing.
Develop Website President/Website/Developer N 2 months prior to launch Y Website
Evaluation of website,
developing & changing
content is ongoing
concern; website
development includes
building of the blog and
providing a convenient
way for customer's to
initiate contact with
GrumpleWear.
Product Samples Vendor N 6 weeks prior to launch N Sample product
Initial launch items are
one-time event;
development of
products for expansion
are ongoing concern.
Approve Samples President Y 5 weeks prior to launch Y
Order Product President N 4 weeks prior to launch Y Purchase Order
Initial plans are to
maximize savings by
purchasing full year of
inventory; additional
orders will be placed if
sales exceed projection.
Manufacturing Run Vendor Y 2 weeks prior to launch N Inventory
Finalize Financing President Y 6 months prior to launch N Funds

Select Email Provider President Y 2 months prior to launch N
Email provider is also a
marketing tool so
selected vendor will
need to also provide
the ability to create
marketing campaigns.
Launch Website President/Web Host Y Launch Day N Functional Website
Sales Monitoring President N Perpetual Y Reports
Using reporting
available from the
website portal review
sales and match against
forecast.
Customer Feedback President N Perpetual Y Reports
Selected Customer Care
vendor will provide any
necessary responses
directly to customer;
will accumulate
feedback and provide
via reports.
(Surveys) President N N
Vendor selected will
allow for easy
implementation into
the website or to
provide surveys via
email to customers.
Vendor Contract
(Surveys) President Y Perpetual Y Reports
Time Management President N Perpetual Y President will evaluate
on an ongoing basis
how time is being
spent, make
adjustments to ensure
focus on the core
components of the
business; hire

additional staff as
required.

page 27
D4: Sales Forecast
The following is a summary of the projected gross sales revenue for the first year of operations
(by SKU):
Item Code
Total Projected
Qty (1st Year) Total Projected Net Revenue (1st year)
GW001 3380 $ 84,500.00
GW002 1472 $ 36,800.00
GW003 1472 $ 36,800.00
GW004 1476 $ 36,900.00
GW005 840 $ 29,400.00
GW006 240 $ 8,400.00
GW007 240 $ 8,400.00
GW008 240 $ 8,400.00
GW009 3380 $ 101,400.00
GW010 1472 $ 44,160.00
GW011 1472 $ 44,160.00
GW012 1476 $ 44,280.00
GW013 840 $ 33,600.00
GW014 240 $ 9,600.00
GW015 240 $ 9,600.00
GW016 240 $ 9,600.00
Total Projected Units 18720
Total Projected Revenue $ 546,000.00
The above is a summary of the anticipated annual sales by unit and revenue. The full forecast, by
month, is included in the following document:
Forecast.xlsx

page 28
Projected Annual Sales Units by SKU:
Projected Annual Sales Dollars by SKU:

page 29
Projected Annual Sales by Period (Month):

page 30
E. Implementation Strategy

page 31
E1. Overall Strategy
GrumpleWear, utilizing the www.grumplewear.com website, has a substantial opportunity to
enter into the t-shirt apparel market by creating a distinct brand that is built on quality products
that support the U.S. manufacturing industry, display a distinctive type of humor and
development of a community that encourages ongoing interaction with the customer that
recognizes them as more than a sales dollar. A review of the competitive landscape shows that
there is significant opportunity for GrumpleWear as the current market has not demonstrated
attention to this particular set of qualities.
Certain implementation activities will take well in advance of the actual website launch and
include, but is not limited, to the following key items:
1) Pre-launch “buzz” generation through press releases and development of social
media sites.
2) Development & trademark of the “GrumpleWear” logo
3) Selection of manufacturing & fulfillment vendor that will be a long-term strategic
partner
4) Selection of service vendors for web hosting, graphic design and customer care
initiatives
5) Securing of financing required to launch and support company in the initial period
The research and selection of vendors will be based on their qualifications, commitment to
furthering the GrumpleWear goals, an interview of their provided references and industry

page 32
research. The GrumpleWear commitment to quality at every level of the organization must be
present as part of the vendor’s culture.
Marketing will occur through online ad placements, development of appropriate social media
sites, the GrumpleWear blog and follow-up to existing customers. The message delivered must
support the GrumpleWear mission in all instances. Working with the specialists at the selected
sites and utilizing the skills of the contract graphic artists will ensure that the message is delivered
consistently and exhibiting the quality required of all segments of the GrumpleWear business.
An expanded list of pre and post (ongoing) implementation items is listed in sections D3 and E2.
E2. Implementation
Refer to next page.

Task Responsible Party Milestone Target Completion
Ongoing
? Deliverable Comments
Secure domain President Y 6 months prior to launch N Ownership of domain
Select Graphic Artist President N 6 months prior to launch N
Develop Logo
President/Graphic Artist
Contractor Y 5 months prior to launch N Graphic Files
Trademark Logo President Y 4 months prior to launch N Trademark
Develop Initial Slogans President N 4 months prior to launch N Slogans
(Manufacturing &
Fulfillment) President N 6 months prior to launch N
Vendor Contract
(Manufacturing &
Fulfillment) President Y 5 months prior to launch N Contract
(Customer Care) President Y 4 months prior to launch Y
Vendor Contract
(Customer Care) President Y 3 months prior to launch Y Contract
Develop Quality
Specifications President/Vendor Y 4 months prior to launch N
Quality specification
document
Develop Total Quality
Program President/Vendor Y 3 months prior to launch Y SOP's
Quality is always to be
considered an ongoing
Identify Advertising
Markets President N 4 months prior to launch Y
each marketing avenue
is an ongoing and
evolving concern
Develop Ads President/Advertisers Y 2 months prior to launch Y Content
each ad is an ongoing

Select Web Hosting
Site President Y 4 months prior to launch N
Selection is one-time
event; evaluation of
website is ongoing
concern; hosting site
will also include
available options for cc
processing.
Develop Website President/Website/Developer N 2 months prior to launch Y Website
Evaluation of website,
developing & changing
content is ongoing
concern; website
development includes
building of the blog and
providing a convenient
way for customer's to
initiate contact with
GrumpleWear.
Product Samples Vendor N 6 weeks prior to launch N Sample product
Initial launch items are
one-time event;
development of
products for expansion
are ongoing concern.
Approve Samples President Y 5 weeks prior to launch Y
Order Product President N 4 weeks prior to launch Y Purchase Order
Initial plans are to
maximize savings by
purchasing full year of
inventory; additional
orders will be placed if
sales exceed projection.
Manufacturing Run Vendor Y 2 weeks prior to launch N Inventory
Finalize Financing President Y 6 months prior to launch N Funds
Open Business
Checking Account President N 6 months prior to launch N Confirmation

Select Email Provider President Y 2 months prior to launch N
Email provider is also a
marketing tool so
selected vendor will
need to also provide
the ability to create
marketing campaigns.
Launch Website President/Web Host Y Launch Day N Functional Website
Sales Monitoring President N Perpetual Y Reports
Using reporting
available from the
website portal review
sales and match against
forecast. This will be
completed at least on a
monthly basis. Increase
in monitoring will occur
if sales projections are
much higher or lower
than anticipated.
Expense Monitoring President N Perpetual Y Reports
Using accounting
software all revenues
and expenses will be
booked as they occur;
accounting software
will generate the
appropriate reports;
monitoring will occur at
least monthly; Increae
in monitoring will occur
if expenses are higher
or lower than
anticipated or if there is
substantial change in
sales revenue.

Customer Feedback President N Perpetual Y Reports
Selected Customer Care
vendor will provide any
necessary responses
directly to customer;
will accumulate
feedback and provide
via reports.
(Surveys) President N N
Vendor selected will
allow for easy
implementation into
the website or to
provide surveys via
email to customers.
Vendor Contract
(Surveys) President Y Perpetual Y Reports
Time Management President N Perpetual Y
President will evaluate
on an ongoing basis
how time is being
spent, make
adjustments to ensure
focus on the core
components of the
business; hire
additional staff as
required.
Supplies President N 6 months prior to launch Y Supplies
In the initial phase,
operations will be
conducted out of a
home office; however,
certain supplies such as
accounting software
will be required.
License President N 6 months prior to launch N License
Establish business in
the state of North
Carolina

Filing President Y 6 months prior to launch N Confirmation
Engage a
representative in the
state of Delaware; file
paperwork at LLC.
Vendor Selection
(Packaging Materials) President N 4 months prior to launch N
Vendor Contract
(Packaging Materials) President N 3 months prior to launch Y Contract
Packaging Materials
(Order) President N 2 months prior to launch Y Purchase Order
Purchase initial supply
is one time-event;
materials will be
replenished as needed.
Packaging Materials
(Delivery) Vendor N 2 weeks prior to launch Y Inventory
Purchase initial supply
is one time-event;
materials will be
replenished as needed.
Customer Follow-Up President N Occurs with 1st sale Y Email
A post sales thank you
and order confirmation
email will be sent to the
customer; a shipment
confirmation will be
sent to the customer;
approximately 10 days
after shipment a
follow-up email with
survey will be sent
along with an invitation
to join the
GrumpleWear
community.

Existing Customer
Marketing President N Perpetual Y Email
Quarterly emails sent
to existing customers
with updates on
company, introduction
of any new designs, and
reminder about the
GrumpleWear
community.
Marketing Evaluation President N Perpetual Y Reports
Utilizing reports
provided from
marketers and
information gathered
via the website (unique
keycode identification)
evaluate the results of
each marketing effort;
based on analysis of
reporting make
decisions regarding
which ads to tweak,
which to discontinue
and which should get
an increase in funding.

E3. Control Plan
The GrumpleWear control plan is broken down into various business segments that are key drivers of our success:
1) Marketing—are the current marketing efforts delivering results
2) Sales—are sales on target
3) Customer—are the customers happy and satisfied
4) Quality—does product deliver on quality claims
5) Inventory—is inventory sufficient to meet demand
6) Financial-what is the financial position of the company
7) Competition—what is the completion doing and does it impact the business
Segment Description Action (Possible) Frequency
Marketing
Review marketing report and
evaluate which efforts are providing
the great response rate (page
landing) and great conversion rate
(sales).
1) Determine which ads should be
discontinued
2) Determine which ads should be
tweaked
3) Determine which ads should have
additional funds provided
4) Determine if new ads should be
created
Monitoring should occur at least
weekly in the initial phase (1st
quarter post-launch); future
monitoring schedule will be
determined by sales revenue and
customer feedback.

Sales
Review sales reporting and compare
to period forecasting
1) Determine variance
2) Based on whether variance is +/-
will determine next action:
a) In conjunction with review of
marketing information, determine
changes in volume, location, $$ spent
on marketing
b) Order additional product or
supplies
c) Hire additional support staff
d) Hire marketing specialist
customer feedback.
Customer
Review feedback provide from
Customer Care vendor
1) In conjunction with marketing &
sales revenue review, determine
changes
2) Respond directly to customer for
both highly positive or highly
negative feedback
customer feedback.
Customer
Review feedback gathered from
surveys (web and post-sales
generated)
1) In conjunction with marketing,
sales and Customer Care review,
determine changes
2) If customer has provided avenue
for follow-up, respond directly to
both highly positive or highly
negative feedback.
Quality
Evaluate current quality initiatives
and develop future
initiatives/changes
1) Site visits to manufacturer
2) Continuing research into
manufacturing methods
3) Adjust manufacturing methods (as
required)
4) Change of raw materials (as
required)
Site visit to manufacturer should
occur 2x per year; review of
customer comments or concerns
according to Customer segment

Financial
Review the financial statements in
terms of revenue & expenses
1) Adjust projections
2) Reduce costs or increase
marketing spend
Monitoring should occur two times
per month in the initial phase (1st
expenditures
Inventory
Review on hand inventory in relation
to sales projections
1) Order additional inventory if sales
are tracking above projection
2) Additional orders will be based on
SKU purchases and not blanket
purchases
Monitoring will occur weekly in
conjunction with the sales
monitoring
Competition
Review what top competitors are
doing
1) Evaluate changes in competitors
2) Make changes to counter the
competitor as long as they are in
keeping with the GrumpleWear
mission
3) Re-enforce brand image in the
marketplace. Monthly
The control plan addresses the seven key segments that have been identified and includes possible actions to take as a result of reviewing all
available information. The planned monitoring schedule may be adjusted based on the needs of the business.

page 42
F. Financial Statements and Projections
F1. Revenue and Cost Estimate
During the first year of business, GrumpleWear is projected to earn $695,572.80 in total revenue
against total operating expenses of $362,104.54. An additional $9000.00 will be paid in interest
expense on a loan made to cover the required start-up costs and 4 months of operating expenses
for a net profit of $353104.54 for the year.
F2. Forecasted Profit and Loss Statement
A review of the forecasted profit and loss statement shows that GrumpleWear will run at a loss
for the first three months of the year. Beginning with the fourth month of operation, the business
will begin to experience a profit before deducting interest expense. In the fourth month, revenue
less operating expenses will show a profit before interest of $724.91. After interest, the business
will show a small loss of $25.09. At the end of the fifth month, the business will show a profit
based on revenues less both operating and interest expense. At the end of the first year, the
company will have a net profit of $324,468.26. Net profit is 46.65% of revenue (sales) for the
same period.
Graphically, the totals revenues and total expenses (operating + interest) are:

page 43
Following is the detailed listing of revenue and the various expenses incurred by the business:

page 44
The top five expense categories of the business are:
1) Cost of Goods Sold
2) Salary Expense (including all taxes and withholdings)
3) Marketing Expense
4) Shipping Expense
5) Web Hosting
These five categories comprise 82% of the business total expenses and represent key components for
success.
A full copy of the Forecasted Profit & Loss sheet including assumptions is included with this plan as
an attachment.
F3. Forecasted Balance Sheet
The balance sheet at the end of the first year of operations shows the company in a very good financial
position. All net profit gained from the operations during the first year will be retained in the business
and can be used to expand the product line and increase the marketing efforts. There is sufficient cash on
hand to pay the full balance of the loan.

page 45

page 46
G1. Financial Projections
G1a- Breakeven Point
The following graph represents where the breakeven point for GrumpleWear lies and includes all
expenses (operating & interest expense):
Based on the graph and the cumulative revenue and expense chart, the breakeven point will occur
sometime in June. At the end of May, cumulative expenses still exceed cumulative revenue by
$9377.09. At the end of June, the cumulative revenue exceeds expenses by $3899.46. The June

page 47
accounting period is the one in which GrumpleWear becomes a profitable business and exceeds
the breakeven point.
G1b-Financial Position
GrumpleWear is expected to be in an excellent financial position at the end of the first year of
operations. Revenue generation far exceeds expenditures and leave the company with a projected
net profit of $324,468.26. GrumpleWear will have established its presence in the t-shirt
marketing by appealing to a specific, but large, group of consumers. Ample opportunity exists to
expand the product line and to increase marketing expenditures. Additionally, sufficient revenue
exists to add at least one additional full-time person to assist with the additional demands of a
growing product line.
As with any forecast, a number of assumptions were made in the compilation of this data:
1) Sales growth of apparel will continue to grow based on indicated by industry projections
and the t-shirt market will grow in conjunction with the overall market.
2) Prices determined at the time of inquiry for all services will be the same or roughly the
same as those included in this plan.
3) Inventory needed for the following annual period will be ordered at the end of the current
annual period but due to terms will not require payment until the following period.
4) All inventory will be depleted by the end of the initial annual period.
5) GumpleWear will see continued growth of their product line based on marketing efforts,
word-of-mouth and branding initiatives.
6) Average order size is 1 unit.

page 48
7) Fulfillment expense includes bagging of individual items regardless of what point in the
process the bagging actually occurs.
8) One percent of all orders will result in customer service contact via phone with an
average talk time of 5 minutes.
9) One percent of all orders will result in customer service contact via email.
10) Estimated that ½% of product sales (does not include shipping revenue) will cover
warranty claims and will be paid in the month after the sale occurs.
G1c-Capital/Investment Needs:
The capital needs required to start the business includes funds to the purchase costs of the initial
inventory to be used to fulfill customer orders. In order to maximize quantity discounts, the full
amount of inventory projected to be needed for the first year will be purchased at the same time.
Additionally, as the business will operate at negative profit for the first four months when
including both operating and interest expense the capital raised must include the ability to cover
those costs. A small amount of cushion is built into the initial capital needs to provide coverage
should initial sales not reach their projected numbers. Based on these parameters, the initial
capital/investment needs are determined to be $150,000 which will be acquired via a small
business loan.

page 49
References
Aldirch, M. (2011). History of Online Shopping. Retrieved from The Michael Aldrich Archive:
http://www.aldricharchive.com/shopping_history.html
Berman, J. (2013, December 9). UPS exec addresses how e-commerce has changed logistics and supply
chain operations. Retrieved from Logistics Management:
http://www.logisticsmgmt.com/article/ups_exec_addresses_how_e_commerce_has_changed_logi
stics_and_supply_chain_op
Brown, B. (2009, December 18). Brief History of Printed T Shirts. Retrieved from Article Base:
http://www.articlesbase.com/printing-articles/brief-history-of-printed-t-shirts-1599172.html
CafePress. (2014). Retrieved from MarketWatch:
http://www.marketwatch.com/investing/stock/PRSS/financials
Cellina, M. (2011, March 7). A Brief and Incomplete Timeline of T-shirts. Retrieved from Neatorama:
http://www.neatorama.com/2011/03/17/a-brief-and-incomplete-timeline-of-t-shirt-history/#!
TpNuY
Clothing & Clothing Accessories Store Sales. (2014). Retrieved from Statista: The Statistics Portal:
http://www.statista.com/statistics/197640/annual-clothing-store-sales-in-the-us-since-1992/
Doe, J. P. (2011, 10 10). www.wgu.edu. Retrieved from Student Template in APA for Business Plan:
http://www.wgu.edu
History of the T-Shirt. (2014). Retrieved from T-Shirt Spotlight: http://tshirtspotlight.com/history-of-the-
t-shirt/
Kristula, D. (2011). The History of the Internet. Retrieved from davesite.com:
http://www.davesite.com/webstation/net-history1.shtml

page 50
Lakshmi, L. D. (2010, February 20). Impacts of E-Commerce on Business. Retrieved from Articlesbase:
http://www.articlesbase.com/ecommerce-articles/impacts-of-ecommerce-on-business-
1882952.html
Markman, A. P. (2012, January 6). Why We Love Independence, Individuality, and Starbucks. Retrieved
from Psychology Today: http://www.psychologytoday.com/blog/ulterior-motives/201201/why-
we-love-independence-individuality-and-starbucks
Monthly & Annual Retail Trade. (2014). Retrieved from United States Census Bureau:
http://www.census.gov/retail/ecommerce/historic_releases.html
Order Fulfillment Services in the US Industry. (2014, 4 13). Retrieved from IBISWorld:
http://www.virtual-strategy.com/2014/04/13/order-fulfillment-services-us-industry-market-
research-report-ibisworld-has-been-updated
Rueter, T. (2012, February 27). E-retail spending to increase 62% by 2016. Retrieved from Internet
Retailer: http://www.internetretailer.com/2012/02/27/e-retail-spending-increase-45-2016
Segment Explorer. (2014). Retrieved from Nielsen:
http://www.claritas.com/MyBestSegments/Default.jsp?
ID=30&menuOption=segmentexplorer&id1=1027&prevSegID=2611099&filterstate=age_ranges
~25-44^35-54^45-64|
hh_income~Wealthy^Upscale^Midscale^Downscale&sortby=lifestage_group_code
Short, D. (2013, September 17). Median Household Income by Age Bracket: 1967-2012. Retrieved from
dshort.com: http://www.advisorperspectives.com/dshort/updates/Household-Incomes-by-Age-
Brackets.php
US Online Retail Sales. (2013). Retrieved from visual.ly: http://visual.ly/us-online-retail-sales-
%E2%80%93-statistics-and-trends-infographic

page 51
Who Invented the Internet. (2014). Retrieved from Computer Hope:
http://www.computerhope.com/issues/ch001016.htm
Wholesale & Retail Trade: Online Retail Sales. (2012). Retrieved from United States Census Bureau:
http://www.census.gov/compendia/statab/cats/wholesale_retail_trade/online_retail_sales.html
Why Incorporate in Delaware. (2014). Retrieved from Delaware Intercorp:
http://www.delawareintercorp.com/t-WhyIncorporateinDelaware.aspx
Why Start a LLC? Limited Liability Company Advantages and Disadvantages. (2014). Retrieved from
Rocket Lawyer: https://www.rocketlawyer.com/article/why-start-an-llc-limited-liability-
company-advantages-and-disadvantages.rl

QGT1_Business_Plan_Hope_Hreha_000234528

Recommended

Recommended

More Related Content

Similar to QGT1_Business_Plan_Hope_Hreha_000234528

Similar to QGT1_Business_Plan_Hope_Hreha_000234528 (20)

QGT1_Business_Plan_Hope_Hreha_000234528