A business plan I created for Woolworks.

1. Woolworks is a sole proprietorship, owned by Irene McGinley. I sell original, high-quality custom
crochet items to discerning customers who give them as gifts or keep them as heirloom artworks. I do
the customer response; design, piecing, machine and hand crochet works. They are crocheted by me.
I have roughly 20 years of experience. Woolworks items are manufactured in the owner's home, and
sold directly to my customers in Ireland and Europe. My strength is transforming even the vaguest
ideas and descriptions from a customer into beautiful and meaningful crochet designs which both
giver and recipient appreciate.
Woolworks works to provide custom, individually designed, crochet art to customers who value
originality but don't have the time or skills to create such pieces on their own. By working with my
customers in the design phase, I give them the satisfaction of having input into their gift or artwork,
without the intense investment of their own time and labour that would be necessary to produce such
an item themselves. The result is a personalized, usable, beautiful crochet item which will be
appreciated for generations to come.
I have been making crochet items on commission as a hobby for three years now, and cannot keep
up with the demand from new customers when doing this part-time. Starting I will open Woolworks as
a full-time venture operated out of my home. My goals are to be able to pay myself a decent wage for
doing the work I love.
I will minimize the financial risks by requiring payment at the time of commission. For the customer,
this means that they can take as long as they want to work with me on a design, but once we have
agreed on the design, they must pay me in full for the item before I will begin creating it. This
arrangement has been the one which works best for both sides in the past.
Most of the value of the items comes from the labour of designing and creating them, rather than from
the materials (fabric, thread, etc.) of which they are composed. My start-up requirements are therefore
fairly small (under €8,000):
€2,000 of inventory (a basic fabric library)
€1,000 for a second sewing machine
€2,000 for marketing
€4,000 for website development
€1,000 of various supplies
I will invest €3,000 to start the business, and need another €7,000 for initial inventory of fabric and
equipment. Based on current prices for my items, and the time needed to complete each one, I am
forecasting sales of €45,700 in the first year. I expect to begin breaking even in the third month.

2. 1.1 Mission
At Woolworks, I know that my customers value originality and high-quality work as much as they value
their time. Using only a small portion of their time to provide me with the important information about
their desires in commissioning an item, I will provide them with high-quality, custom-designed crochet
art which can proudly be given as a gift, kept as an heirloom, and displayed prominently as a piece of
artwork in a home or office.
1.2 Keys to Success
The keys to success for Woolworks are:
1. Effectively establishing my reputation as an exceptional business: nationally I am unique
in creating truly custom-designed crochet items which do not rely on standard geometric
designs.
2. Catering to my customers' need to feel unique by emphasizing the personal nature of the
customization process, which puts the customer, and his or her personality and feelings,
at the centre of the product.
3. Quickly (2-3 weeks) turning out these finished custom items, both locally and through my
website, for a price premium which enhances the prestige of the customized product.
4. Maintaining originality of design and quality of skills to turn bulk, inexpensive fabrics and
materials into high-end artworks which can bring high prices.
1.3 Objectives
Create and sell 6 original, custom crochet items per month, at prices which cover owner's
labour.
Use contacts in local artisan groups and in my customer base to create successful word-
of-mouth advertising.
Establish a website to provide more information and to initiate non-local sales.
Pay back initial investment with 10% interest in two years

3. 2.1 Start-up Summary
To begin my business, I will need a stock of materials, and time to begin the first commissions for the
business, which are currently being negotiated with two interested buyers, who have offered to
advertise my business through word of mouth with friends and family members. I plan to begin my
official advertising campaign by placing brochures in likely locations around Donegal and in the North
of Ireland and by creating my business website.
Initial inventory consists of threads and a basic fabric library:
between 200 each of 300 different wool, covering hues and shades in all colour groups
3-4 yards each of 25 different colour thread
These fabrics will give me the necessary initial range to execute a wide variety of designs which rely
on subtle colour grading and variation for their effectiveness. The fabric library will be supplemented
month by month, as designs are finalized and as particular fabrics need replacing, or new, more
popular ones, become available.
Expenses include:
New equipment
initial marketing materials (brochures and website)
extra insurance to cover the value of the inventory and the sewing machines, as well as
work in progress
The number in Other current assets is for a second sewing machine.
Start-up Funding
Start-up Expenses to Fund €3,000
Start-up Assets to Fund €4,000
Total Funding Required €7,000
Assets
Initial investment €3,000

4. Cash Requirements from Start-up €3,000
Additional Cash Raised €0
Cash Balance on Starting Date €3,000
Total Assets €10,000
Liabilities and Capital
Liabilities
Current Borrowing €0
Long-term Liabilities €0
Accounts Payable (Outstanding Bills) €0
Other Current Liabilities (interest-free) €0
Total Liabilities €0
Capital
Planned Investment
Woolworks €3,000
Other €0
Additional Investment Requirement €0

5. Total Planned Investment €3,000
Total Capital €10,000
Total Capital and Liabilities €10,000
Total Funding €7,000
Start-up
Requirements
Start-up Expenses
Fabric Board €2,000
Marketing €2,000
Sewing machine €1,000
Supplies: Rotary heads, pins, extra machine needles €1,000
Website Development €4,000
Total Start-up Expenses €10,000

6. 2.2 Company Ownership
Woolworks is a sole proprietorship, owned by Irene McGinley.
2.3 Company Locations and Facilities
The company is located in the home of Irene McGinley. All locations are maintained smoke-free, since
fabric items can easily absorb odours.
Products and Services
Woolworks manufactures all-wool, high-quality, custom crochet items with original designs. Through
my design process, my customers work with me to provide the information, ideas, and sometimes
even images (like photographs) that allow me turn their intentions into beautiful works of crochet art.
When completed, my items are hand-delivered or shipped securely to my clients, or, if they prefer, to
the intended recipient of the gift, along with instructions on the proper care and maintenance of their
crochet item.
3.1 Product and Service Description
I make many different crochet options, which are differentiated by design, product, whether they are
machine made or handmade). Use of hand-dyed fabrics, larger sizes, and special requests or
processes (including photo transfer, etc.) will require additional charges and completion time.
Baby Blankets
Type: Price Time
Machine €70 2-3 weeks
Hand €90 4-5 weeks
Baby clothes
Type: Price Time
Machine €50 1-2 weeks

7. Hand €70 3-4 weeks
Ladies Wear
Type: Price Time
Machine €150 3-4 weeks
Hand €200 5-6 weeks
Tea cosies
Type: Price: Time:
Machine €30 1-2 weeks
Hand €40 1-2 weeks
Accessories
Type: Price: Time:
Machine €50 1-2 weeks
Hand €50 1-2 weeks
Homewear:
Type: Price: Time:
Machine €60 1-3 weeks
Hand €80 2-4 weeks
Price and time variables are determined mostly by the intricacy of the image and crochet designs
requested, and reflect additional labour costs. Time to finish does not include shipping time, which will
be determined (and paid for) by the client. Since these are custom artworks, I will encourage my local

8. clients to view the finished item themselves before sending it to a recipient, and may even provide
delivery services for local clients.
For customers ordering over the Web, I will make arrangements to ship via their preferred shipper, but
will recommend insured delivery with signature and confirmation via UPS and Fed-Ex, since the items
are irreplaceable. When I ship, rather than deliver, I will provide the primary wrapping of the item, first
in un-dyed cotton, then in waterproof plastic wrappers within a larger, padded box, to ensure safe
arrival in the item’s original condition. I WILL NOT ship any item without delivery confirmation or
insurance, as each item represents roughly 1/6 of my monthly earnings.
3.2 Competitive Comparison
There are only a handful of other businesses offering custom-designed crochet items, and my
competitive advantage stems from my design expertise. Many businesses which claim to offer
"custom crochet items" are really just offering customers a choice between several pre-determined
original designs. I, on the other hand, can help a customer generate ideas, even take basic
information about the colour of a child's room and his favourite book and create a completely new
design which is tailored to the customer's taste. And, most importantly, my design features emphasize
my client's ideas and feelings, and my skills, by creating beautiful unique items, rather than the
traditional, designs other businesses offer. My real challenge is simply to get my name out there,
because I am offering services far more complete than most other crochet item makers.
My closest competitors are pre-manufactured crochet retailers, other crochet-selling websites, and the
do-it-yourself crochet market. However, none of these competitors offers the combination of factors
which define my niche. Retailers, both local and national via websites, offering finished items allow the
customer only to choose However pre-determined designs, with customization limited at most to
colour choices. The only other option for custom-designed crochet items, offered through crochet
classes and books, requires an enormous investment of time on the part of the customer.
My challenge is both to enable customers to see personalized items as an appropriate choice, and
then to demonstrate the superior quality of my crocheted items.
Woolworks fills a unique niche, offering the status and personalization available with a fully custom
crochet item, without a major investment of the customer's time. I am therefore targeting those busy
professionals (often called the Bourgeoisie Bohemians) who see prestige in gifts and purchased
artwork not solely in its expense, but by the extent to which it reflects their values: handmade or
unique, rather than mass-produced; consisting of all-natural materials, rather than synthetics; made
by (and thus funding and supporting) an identifiable small-scale artisan rather than a large
corporation; and reflecting sincere feelings of love and caring, rather than commercialized,
standardized emotions. (More information on my target market can be found in the Market Analysis
section, below.)
3.3 Sales Literature
At the end of this plan are sample brochures such as those I will distribute at local arts and crochet
retailers. These brochures contain pictures of some previous items, as well as customer comments on
the high quality of my workmanship and willingness to customize my designs.

9. 3.4 Fulfilment
I buy most of my wool and thread online, to keep down costs. Since most of the design value comes
from the combination of fabrics, my ideal fabric supply provides a broad range of styles, colours, and
textures.
Occasionally, customers may want a particular theme or style in the fabric choices, so I also maintain
the option of shopping from other local fabric retailers, and of charging a premium for specialty or
special-order fabrics. Many of the artisan fabrics are available through craftspeople here in Donegal,
while the national ones are most available online.
3.5 Technology
My business as a whole is a relatively low-tech establishment in terms of manufacturing, since I stress
the value of individually designed and hand-crafted items. However, my use of a website will attract
more technologically-savvy customers, and I anticipate possibilities for design which incorporate
photos and other images which are emailed to me by the customer, enabling their direct input into the
finished design.
Trends Tracking:
I will use a database to track my orders and to spot trends in customer requests. For example, I may
find that Web customers more often request customized text embroidery on an item, while my local
customers want to choose individual fabrics from my collection. Keeping track of these trends will
enable me to tailor my marketing approaches to different customer groups.
3.6 Future Products and Services
My products are driven directly by customer demand. Whatever they request, within reason, I will give
them. So, each design, each item is the direct result of suggestions or requests from the customer
and future products will reflect any changes in customer preferences.
In the future, once my business is established, I may take some design time to create a series of
stock elements which can be combined in different ways to provide less expensive options for
customers who want customization, but cannot afford to fully commission their own design.
Eventually, I would like to employ other local craftspeople to do the piecing and crocheting of the
artworks, so that I can focus on design and customer interaction. However, this is a long-term goal (5-
10 years away), and will depend on increasing demands for my products which require additional
labour.
Market Analysis Summary
Crochet items are not only decorative; they can be cherished gifts and investments in artwork.
Woolworks will target two separate groups - gift buyers, particularly people buying crochet items for
new children and grandchildren, and art buyers, who are looking for a piece of usable art which they
can keep and pass on to later generations or sell in the future as an antique. Because such high
quality items are more labour and time intensive to make, they are more expensive than ordinary cot
or bed coverlets. The market most interested in my products will, therefore, be people with an average

10. level of disposable income, who value quality workmanship and original - even custom - design work
in the gifts and decorations they choose to purchase. Ireland has a high percentage of such
consumers who support a number of craftsmen and women, but very few of these crafts involve high
quality textile work other than clothing. This is a market niche that can and should be tapped.
Local Sales:
I am a featured artist at Barry’s Art and Design in Downings. My custom designed items have been
sold out four times over and I have had to restock very quickly.
4.1 Market Segmentation
My market, aside from geographical divisions (i.e., Ireland versus Internet customers), is generally
divisible into two main categories: people who are buying gifts for others, and those who are buying a
crochet item as a "gift" to themselves or an investment in heirloom-quality crochet item.
I hope that many of my customers, having purchased one item from me, will come back to me for
more unique gifts; I expect that my long-term customers will thus move back and forth customers the
two categories. Customers will generally encounter me with only one of the two agendas in mind, and
I have developed different strategies to appeal to these different needs.
Gift Buyers:
Potential customers seeking to buy a gift are looking for something that speaks of their own taste, but
more than that, of their intimate knowledge of, and thoughtfulness toward, the gift recipient. For my
customers, Woolworks becomes the magic medium by which their caring feelings towards the
recipient are made manifest in a tactile, tangible object, which can then be passed on to a friend or
family member who will cherish it (and the giver) forever. The key to this transformation is the design
process. My customers give me as much or as little information about themselves and the gift
recipient as they wish - the more detail, the better the item can reflect the unique personalities,
wishes, and love of both people. I have created basic forms and questions for all my prospective
customers to consider, but in-person consultations, supplemented by email and telephone
conversations with the designer for my website customers, will be the selling point. My customers are
getting personalized services, and they will feel pampered and catered to.
Art Buyers:
These customers are buying my items to display in their homes and offices, to declare to their guests,
their clients, and their colleagues that they value high-quality, original art with a hand-made feel.
These clients may send me photographs of the locations in which they would like to have their items,
and consult with me about their taste in subjects, colours, and styles. My design services for art-
buyers are more akin to interior designing than to gift-making, as I will try to make items that both co-
ordinate with, and yet stand out from, their surroundings. These items require the same sort of
consulting as gift items, but with a focus on the buyer only, and not a recipient. These items may
depict aspects of the buyer's hobbies or occupation. They may incorporate meaningful elements from
the buyer's family history or professional journeys. They may depict treasured pets or family
members, living or passed. These customers are commissioning artworks that will beautifully
represent some aspect of their lives of which they are proud.

11. Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth
Irish/European Customers 3% 326,142 335,926 346,004 356,384 367,076 3.00%
Internet browsers seeking
5% 100,000 105,000 110,250 115,763 121,551 5.00%
gifts
Total 3.48% 426,142 440,926 456,254 472,147 488,627 3.48%
4.2 Target Market Segment Strategy
By focusing on gift-givers and art-buyers within the market, I am remedying a major paradox these
clients face, and taking advantage of my unique market niche.
These customers value high-quality, non-mass produced goods, but don't have the time
to make them.
I specialize in individualized original designs for people who can afford to pay for high-
end items.
Both segments require some level of input into the design phase of the product in order to obtain the
kind of personalized feel they are looking for, and my expertise in translating their ideas and feelings
into images fits this need perfectly. In addition, the personalization services add value to the product
far beyond the high quality of my workmanship by making my customers - and the crochet recipients -
feel special and unique. Market research into Bo-bo trends identifies this need to feel unique as a
highly motivating factor in buying choices.
Because these two different segments of the customer base may approach their initial searches via
different routes, I am locating brochures and advertisements (locally) in three places:
general upscale or high-end consumer areas like organic grocery stores, local symphony
pamphlets, and upscale day care facilities
gift-centred retail centres such as artisan co-ops, holiday markets, and upscale shopping
centres
art-centred retail centres such as antique stores and art galleries

12. To target both segments on my website, I will include searchable keywords such as "personalized
gifts," "baby gifts," "custom artwork," and "gift ideas."
4.2.1 Market Needs
I am offering these kinds of consumer’s access to individually crafted, locally made, unique, high-
quality quilt art. In buying my product, my customers get the kind of personalized gift they want, and
can pay someone else to invest the time needed to make the item, since their own time is already full.
Crochet items, in particular, speak to their ideas about tradition and slow, time-intensive labours of
love that these customers may associate with their own mothers and grandmothers, and which the
women in particular may feel guilty for not being involved in themselves. For a good price, I will make
an original, usable work of art that they can be proud to give to their discriminating friends and
families, from its all-wool and cotton thread to the brochure which describes my small, local artisan
business.
4.2.2 Market Trends
Crocheting used to be seen as an old-fashioned, rather fuddy-duddy kind of endeavour. Recent
exposure to issues in the historical aspects of crocheting as a forum for women's expression has
begun transforming this thinking, and crocheting is on the way to being recognized as a valuable (and
occasionally subversive) form of mostly-female art. This kind of countercultural interpretation will, of
course, appeal to my market segment.
Those I am targeting are beginning more and more to identify their socially-conscious consumerism
as rooted in local buying, which is an advantage when selling in the Irish market. I anticipate that
some of my local customers will initially encounter me online at my website when searching for locally
made gift products, and will only then come to visit me in person.
4.2.3 Market Growth
With the increasing use of technology in everyday business endeavours, there is expected to be an
ongoing growth in the number of good-paying jobs utilizing creative and critical thinking skills, the
characteristics that define my target market. I also expect that as the economy continues to recover,
consumers will feel more and more confident about placing some of their disposable income into more
decorative and luxury items, such as the custom crochte items I am offering.
4.3 Service Business Analysis
Woolworks is part of the handicrafts industry, in which product manufacturers work directly with
individual consumers to create custom goods from a set of pre-determined materials (in this case,
wool, thread). I will not distribute through retailers, since that would not allow for the custom design
process that is the heart of my business, but I will network with handicrafts retailers to enhance
advertising (for example, joining local artisan co-ops). Woolworks is also registered with the Craft
Council of Ireland. As a business offering custom-designed, high-end, usable artworks, I am
competing not only with other crochet makers, but with all other artisans producing high-quality gift
items. The advantages my product offers over my competitors include the personalized design
process, and the nature of the product itself - would you rather give a gift the recipient can wear or
look at, or one that she can snuggle up under and feel as warm as when she hugged you to thank you
for the gift? Woolworks crochet items are tangible, huggable love.

13. 4.3.1 Competition and Buying Patterns
The market segments I am targeting are clearly defined above, in the Market Analysis sections. Such
customers shop for items such as mine primarily by word of mouth, although they do buy from
galleries and are influenced by ads in magazines with an upscale, socially-responsible edge.
Strategy and Implementation Summary
I hope that many of my customers, having purchased one item from me, will come back to me for
more unique gifts; I expect that my long-term customers will thus move back and forth between the
two categories. Customers will generally encounter me with only one of the two agendas in mind, and
I have developed different strategies to appeal to these different needs.
5.1 Value Proposition
At Woolworks, I understand that you are busy, but that your limited time doesn't reflect your unlimited
love and caring for your friends and family. I have the time and the skills to turn your ideas and
feelings into a snugly, warm, and beautiful items that you will be proud to give as a gift or display on
your wall, an artwork which can be appreciated for generations to come. My prices are reasonable
because they reflect the many hours of work I spend designing, piecing, and making your original
work of art. Buying an item from me is an investment - in your relationships with your gift recipient, in
the value of the artwork, and in your own preferences and personal style.
5.2 Competitive Edge
Woolworks fills a unique niche, offering the status and personalization available with a fully custom
item, without a major investment of the customer's time.
My items are:
handmade or unique, rather than mass-produced;
consisting of all-natural materials, rather than synthetics;
made by (and thus funding and supporting) an identifiable small-scale artisan rather than
a large corporation;
and reflecting sincere feelings of love and caring, rather than commercialized,
standardized emotions.
5.3 Marketing Strategy
My marketing strategy relies on word of mouth, an inexpensive, attractive, and fully accessible display
space (my website), and a small amount of ad placement.

14. 5.3.1 Promotion Strategy
My promotion strategy is threefold:
to locate brochures and ads about my product in areas where my customers normally
shop: high-end organic grocers, artisan co-ops, local bookstores, and the like.
to spread word-of-mouth among friends and family.
to create and promote a website, linked to other crochet sites, to Donegal area crochet
promotions, and to sites about local crafts
In addition to these direct promotions, I have arranged for a selection of my items to be sold at Barry’s
Art and Design in Downings, where information about the possibility of buying a custom item will be
prominently displayed.
5.3.2 Pricing Strategy
My pricing is resonable and competitive.
5.4 Sales Strategy
My sales strategies will focus on the personalization process by responding to all potential customers'
inquiries in person in the medium they most prefer - emails will be responded to by email or phone,
phone calls will be returned by phone calls and by face-to-face visits. I have a large collection of
existing crochet designs to show potential clients, so that they can see the quality of the work offered.
Ideally, these consultations will take place in the owner's home, where my customers can browse
through the fabric library to get inspirations, and can form a personal connection to the
owner/designer, and imagine the contract as the beginning of a creative partnership.
5.4.1 Sales Forecast
In addition to the relatively minor direct costs of wool, thread, notions, etc., used up in each crochet
item, I have another direct cost for hand-made. Based on current prices for my items, and the time
needed to complete each one, I am forecasting sales of €45,700 in the first year.
Personnel Plan
The company has only one full-time worker - the owner.
The owner has several years of experience at marketing, designing, and producing custom items for
others. She has been working part-time at this business for the last three years; over the last year,
demand has increased to the point where she can no longer do items simply as a hobby without
saying "no" to 3/4 of the commission requests. She will use her contacts and word-of-mouth
advertising to turn this into a full-time business.
One of the best contacts she currently has is with Barry’s Art and Design, through the local
community.

15. My pay will cover living expenses and the cost of adding me to my husband's health insurance policy.
Since any illness on my part means an immediate drop in income from the business, it is important for
me to aggressively maintain my health.
Personnel Plan
Year 1 Year 2 Year 3
Owner €24,000 €28,000 €30,000
Other €0 €0 €0
Total People 1 1 1
Total Payroll €24,000 €28,000 €30,000
Financial Plan
Woolworks will begin commissions in November 2012, with the first items to be completed within 3-6
weeks after commission.
6.1 Key Financial Indicators
I expect a steady but slow rise in sales over the next three years, up to the maximum capacity of 16
items per month. As the business and its reputation grows, I will be able to direct clients toward the
best itemt for them more efficiently, and streamline the design and production processes.
6.2 Projected Profit and Loss
The Profit and Loss for Woolworks is encouraging. In addition to paying good wages the business will
be able to pay for the necessary insurance, taxes, and a small marketing budget, and still make a
modest profit.
The projected marketing and promotion expenses are low, because the owner already has an
established reputation and clientele, from her part-time forays into crochet in the last few years. The

16. marketing budget includes items like advertisements in local papers and magazines, church
directories (a great source for customers seeking gifts!) and yellow page ads, as well as brochures in
likely local venues.