Business Plan by Charlie Barraclough

Business Plan

‘Stamping your regional pride’

IS0619 Katie Shackleton (12017453) Victoria Smith (12013014) DE0926 Rachael Moore (12010714) Sophie Balmbra (12003749) Charlotte Baraclough (12002043)

Contents 1.

Executive Summary ________________________________________________ 4 1.1 Mission Statement _____________________________________________________ 4 1.2 Vision Statement ______________________________________________________ 4 1.3 Day-‐to-‐day activities ____________________________________________________ 5 1.4 ‘Made with Words’ Brand Values __________________________________________ 5 1.5 SWOT analysis ________________________________________________________ 6 1.6 Business Objectives ____________________________________________________ 6

Environmental and Market Analysis ___________________________________ 7 2.1 Competitive Advantage _________________________________________________ 7 2.2 Primary research ______________________________________________________ 7 2.3 Secondary Research ____________________________________________________ 8 2.4 The UK Market ________________________________________________________ 8 2.5 Customer Profiling _____________________________________________________ 8 2.6 Competitor Analysis ____________________________________________________ 9

Marketing ______________________________________________________ 10 3.1 Strategic Marketing ___________________________________________________ 10 3.2 Promotional Marketing ________________________________________________ 11 3.3 Marketing and Sales Strategy ____________________________________________ 11 3.4 Market Segment ______________________________________________________ 11

4. Product/Service ____________________________________________________ 11 4.1 Product _____________________________________________________________ 12 4.2 Service _____________________________________________________________ 12

5. Strategy, Growth and Exit ____________________________________________ 13 5.1 Strategy _____________________________________________________________ 13 5.2 Growth -‐ 9 Month Plan _________________________________________________ 13 5.3 Theoretical expansion -‐ 5 Year Plan _______________________________________ 13 5.4 Potential Stakeholders _________________________________________________ 14 5.5 Exit ________________________________________________________________ 14

6. Operations and Logistics _____________________________________________ 15 6.1 Operations __________________________________________________________ 15 6.2 Logistics ____________________________________________________________ 15 6.3 Legal _______________________________________________________________ 16 6.4 Distribution Channels __________________________________________________ 16 6.5 Suppliers ____________________________________________________________ 16

6.6 Location and Premises _________________________________________________ 16 6.7 Personnel Management ________________________________________________ 17

7. Finances __________________________________________________________ 17 7.1 Cash Flow Forecast ____________________________________________________ 17 7.2 Beginning and End of Year Balance Sheets – Year 1 __________________________ 18 7.3 Projected Profit and Loss _______________________________________________ 19 7.4 Assumptions _________________________________________________________ 19 7.5 Break Even Point ______________________________________________________ 20

8. APA References ____________________________________________________ 21 Appendix A – Team Roles and Responsibilities ______________________________ 22 Appendix B – Survey Results ____________________________________________ 24 Appendix C – Detailed Competitor Analysis ________________________________ 27 Appendix D – Supplier profile: ‘Stamptastic.’ _______________________________ 31 Appendix E – Social Media Statistics ______________________________________ 32

1. Executive Summary ‘Made with Words’ is a new start up business based in the North East of England. We design and manufacture stationery, in particular paper goods with a specific focus on the Geordie regional dialect, targeted towards customers in and around the North East. We hope to build a vast product range, encompassing an array of different types of stationery. By hand stamping all stationery ourselves before selling we ensuring customers are receiving products that are unique, that have been carefully designed and have undergone numerous quality control checks. We will raise a profit within the business as we begin trading at local events and online platforms, using a brand PayPal account. We also aim to expand our business with the intention of becoming a small-‐scale concession within department stores and existing regional retailers. The business will be liquidated in May 2015 and potentially restarted again depending on its financial success over the trading year (See Finance section on p. 16 for further details).

1.1 Mission Statement ‘Made with Words’ aim to be the leading hand-‐crafted stationery brand in the UK. We celebrate regional identities across the nation, one stamp at a time.

1.2 Vision Statement As a brand we aim to be an approachable and trusted go to supplier of paper goods for students, office workers and individuals who appreciate high quality design and craftsmanship. We will ethically source all of our materials where possible and ensure that the materials we use are recyclable (see Brand Values section for more information). Alongside this, we will establish a positive relationship with local partners and business owners, supporting and promoting the regional community of the North East, which has inspired our product range and ultimately lead to the creation of the ‘Made with Words’ brand.

1.3 Day-‐to-‐day activities Product or Service Hand stamped notebooks and personalised gift wrapping service.

Target Customers Students and young professionals based in the North East of England. Predominantly focusing on Females. Also targeted towards tourists visiting the area.

How made available A small team of creative students working in the North East, to create each hand crafted product and service.

(See Appendix A for the full breakdown on team roles and responsibilities)

1.4 ‘Made with Words’ Brand Values § § § § §

To be totally transparent in the manufacturing and creation process. To ethically source all of our materials where possible. To value each customer as an individual. To always strive to produce high quality and well-‐designed products. To build relationship with local and independent brands, companies and suppliers.

1.5 SWOT analysis § §

§ § § § § §

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Strengths Hand crafted stationery. Each product is unique and a one off, giving a great alternative to generic and non-‐personal electronic devices. Contemporary brand aesthetic and corporate identity. Personal gift-‐wrapping service. Popular and familiar regional sayings. Unique stationery concept. Economic advantage for start-‐up costs. Competitive advantage with retail pricing. Opportunities Potential to expand into a wider product range within the area of stationery and paper goods. Expand with seasonal themed products. Potential to increase the Made with Words database of regional sayings, including other dialects from around the UK. Increase selling over different online platforms, partners and brand concessions. Selling online using Etsy allows for a global reach Made with Words could establish a Pinterest board to showcase its product range once it expands and inspiration behind the brands image and ethos. Advertising campaigns targeted towards specific regions in the UK. In future use Google search engine optimization.

§

§ §

Weaknesses Currently focuses on a relatively small market in the North East of England. Production (stamping) can be quite time consuming and requires great attention to detail and focus. Only caters to a small section of the stationery market, note books.

Threats Large market to compete in. Stationery market is shrinking due to technological advances and increased use of electronic products/services to make notes and memos. Limitations due to price in relation to environmentally friendly materials. Relatively small staff base to operate the business needs and operations in line with predicted growth.

1.6 Business Objectives

Short-‐Term § §

To set up the business and be ready to trade. To gain recognition within the North East region.

§

To begin to run the business effectively and efficiently.

Mid-‐Term § § §

To follow the business plan effectively. To reorder and manufacture to stock frequently and in time with demand. Start successfully producing and selling products with high quality and attention to detail.

Long-‐Term § To have in-‐depth knowledge of running a business. § To make a profit through sales. § To successfully shut down the business at the end of the academic year in 2015.

2. Environmental and Market Analysis

2.1 Competitive Advantage Our competitive advantage is differentiation -‐ being better. We do this by focusing on particularly high quality craftsmanship and good customer service. We will actively engage with our targeted customers through social media posts consisting of; aesthetically pleasing imagery and persuasive, engaging language with a regional twist, maintaining the ‘Made with Words’ brand identity. Our intention is to create repeat customers and to encourage positive word of mouth between friends, colleagues and family. To ensure this, with every sale complimentary handmade thank you tags will be given to the customer at the point of purchase, connecting with them in a sincere, personal and memorable way to the ‘Made with Words’ brand. These tags will also be available as a personalised gift option, complementing our unique gift wrapping service which will be provided at an additional cost at the point of purchase (see Product and Service section p. 11 for more details).

2.2 Primary research The primary research, undertaken by ‘Made with Words,’ was in the form an online survey of internet users in the UK (see Appendix B for graphs of results). This showed that our targeted consumer base: §

Mainly consists of Females from the North East, between the ages of 17-‐30.

§ § § § §

Consists of students, office workers, gift buyers, tourists, and working professionals. Regularly buy stationery from Paperchase, WHSmiths and Nation-‐wide supermarket/discount stores. Frequently purchase notebooks (45%) and pens (33%) Are interested in buying themed stationery with a hand stamped regional dialect on the cover if it complimented their personal heritage (75%) Have bought stationery as a gift or would do so in the future (66%)

Conducting this market research has validated our business idea and proposal, allowing us to gain views from our target market and incorporate the needs and requirements of our consumers into the business model as a whole. This makes the business and brand sustainable for future development, meaning that it is able to satisfy customer needs. Following the results of the Market Research has reduced the risk of business failure, enabling us to forecast the next suitable area/region for potential brand expansion.

2.3 Secondary Research ‘People and businesses use stationery products in many ways to communicate specific messages. Create products and marketing collateral positioned using relevant, current industry catchphrases and trends. ‘Plan for the future products that take advantage of customer lifestyle evolution, such as graduate students who move on to become lawyers, or destination brides that plan their regular family activities and vacations’ (Brown, 2010).

2.4 The UK Market The stationery market within the UK is vast, due to large amount of UK and International Students, who roughly spend approximately £20 a month on stationery for their University degrees (Butler, 2014). In 2011, the market for stationery was an estimated £1.01 billion, although this has fallen in the years since 2008. The largest area covered by the stationery sector primarily consists of paper goods. However, this too has seen a decline in recent years due to the rise in technology and paper-‐free environments, particularly in academia and the work place. Because the stationery market has declined, it has become more common to see items of stationery like notebooks featuring eye-‐catching designs, which add an extra area of interest and attract consumers with a specific aesthetic taste.

2.5 Customer Profiling All customer profiling was done through a combination Primary and Secondary research. Ensuring that ‘Made with Words’ was targeting the correct audience and therefore leading

to success, as all products produced are tailored to fit the specific needs and tastes of the brands target market.

2.6 Competitor Analysis ‘Made with Words’ is competing in a market of small-‐scale and independent companies who specialise in printed, paper goods such as note books, greetings cards and gifts. The following brands have been highlighted in secondary research and observations as competitors for ‘Made with Words’: § Arminho § Paper Whales § Blinkin Imp § Joanna Burrows (WotMaLike) § TaDa Notebooks § Lovely Cuppa § Happy Jackson § The Letter Press Collection by NineteenSeventyThree § Nuuna Notebooks § Hello Frankie (See Appendix C for the detailed competitor analysis of each of these brands) All of the brands observed in secondary research have online sales platforms and are all available in the UK. Furthermore, all the observed products have a similar stamped/printed aesthetic and graphic style, featuring humorous and familiar sayings in particular ‘WotMaLike’, which is a brand that has branched out and away from solely stocking paper goods such as greetings cards, into homewards such as mugs and tea towels. Social media and visual online communication platforms (Facebook, Twitter, Instagram and Pinterest) are used very effectively by all of the afore mentioned brands, who use these touch points to communicate the image and ethos of their company and products to their targeted costumers on platforms that they use regularly and are familiar with. Some brands also utilise online blogging platforms, such as Blogger or WordPress, which allow them to showcase the craft process and inspiration behind their product range. Because of the small-‐scale and independent nature of these brands, customer awareness and loyalty may be low and advertising is not a main priority for these brands, which mostly rely on Social Media platforms and word of mouth to spread the message of their brand. ‘Made with Words’ stands out form the other brands observed in secondary research, as it is the only brand to produce hand stamped notebooks that are inspired by a geographical location and regional dialect. The hand crafted nature of the ‘Made with Words’ product range adds an extra area of interest, as each product is one off, individual and made with care and attention to detail.

Observed price points for notebooks range from £3.26 to £18.30 (further details on price points can be found in Appendix C). This is a large price bracket and is highly dependent on the targeted consumers spending power and their personal tastes and purchasing habits.

3. Marketing An example of a potential advertising message which can be used across all platforms (both physical and online) is as follows: § ‘Regional pride and high quality design are of the upmost importance to ‘Made with Words’. Bringing a cheeky contemporary twist to your desktop with crafty hand stamped notebooks, decorated with homely regional sayings from the heart of the North East of England. Their pages are waiting for your lists, memos, doodles and amazing ideas’. ‘Made with Words’ will use social media communication platforms such as Facebook and Instagram, therefor allowing content to be shared online between social groups. As a brand we feel it is important to encourage and promote word of mouth communication between potential and purchasing customers. This will allow us to gage opinions and general feedback from customers and furthermore, create a dialogue, which we can use as a tool to build upon and improve the brand as a whole. In the future ‘Made with Words’ will also be able progress with our marketing methods by paying a monthly fee to promote the brands Facebook page, focusing in on users in specific regions. Allowing us to target a high proportion of local, internet using customers with specific and tailored promotional advertising.

3.1 Strategic Marketing ‘Made with Words’ will also strategically market the business, by remaining strong to its core brand values and image; of a hand crafted and contemporary aesthetic. The visual marketing of the business will also remain on point, relevant and fashion forward with a relaxed and approachable demeanor. It is essential that the colour scheme mirrors the brand ethos and message and is muted with rich hues to make sure that the products maintain the handmade look. Alongside this aesthetic branding, will run the complimentary tag line: ‘Stamp your regional pride’. This enables customers to observe the purpose and mission of the business, giving them an insight to brand and company values.

3.2 Promotional Marketing Our promotional marketing techniques will coincide with seasonal events and public holidays: §

§

Within the Christmas sales market, we will utilise Festive themed hand stamped designs on our notebooks, as well as contemporary hand decorated brown wrapping paper and brown string fastenings. We will source some 2014 diaries, in-‐keeping with our brand, and hand stamp these to be sold over the Christmas period also. Further ahead in the business’s progression over the course of the year, there will be considerations made and targeted towards the Valentine’s Day market, which could include romantic and heart-‐warming phrases which are appropriate to our regional target market based in the UK.

3.3 Marketing and Sales Strategy The social media sites utilised by ‘Made with Words’ are as follows: § §

www.facebook.com/MadewithWordsNE www.instagram.com/madewithwords.ne

These platforms will be used to initiate sales, engaging customers by giving them an insight into our product range and the design aesthetic of the ‘Made with Words’ as a whole. Promotional pricing strategies and offers (such two for £8) will be used to encourage sales at peak times in the selling calendar such as Christmas and Valentine’s Day.

3.4 Market Segment ‘Made with Words’ is positioned within the existing stationery market as a small-‐scale independent brand which produces hand crafted, regional themed stationery. By creating hand stamped notebooks, ‘Made with Words’ has entered into a niche market, targeting a niche, regional customer.

4. Product/Service ‘Made with Words’ will produce a contemporary range of lined, hard back, brown paper notebooks , decorated with one off, unique hand stamped typographic and patterned geometric designs, which are inspired by the regional dialect of the North east of England, in particular Newcastle.

4.1 Product Hand stamping the North East dialect directly onto our stationery, means that a connection will be made with the community of the North East; in particular Newcastle. The stamps used to decorate the ‘Made with Words’ product range are produced by a local supplier ‘Stamptastic’, based in Durham. (See Appendix D for supplier profile on Stamptastic). We will also be adding geometric and tessellating designs to the covers of our notebooks, using colourful acrylic paints and have cut, one off stamps (in designs such as polka dots, triangles, stripes and zigzags). Note books are available in two different sizes; A5 (£5) and A6 (£3.50), see finance section for further details on price points. According to secondary market research (See Appendix C) there is currently no brown paper notebooks decorated with regional sayings. The only regionally inspired products are cards and home wears by brands such as ‘WotMaLike’, which are very popular with both regional and national retailers. The hand crafted nature of the products produced by ‘Made with Words’ requires and includes a great attention to detail; each product is unique due to the hand stamped nature of the decoration. In addition each material used in the production of Made with Words products is, where possible ethically sourced and recyclable. ‘Made with Words’ will also produce hand stamped postcards, to be sold at a lower price point then the notebooks, as an alternative/additional purchasing option. These can be pinned on notice boards or used as decorative touches in the home or office.

4.2 Service ‘Made with Words’ will offer a personal gift wrapping service with themed and decorated brown wrapping paper for a small additional cost (£1 for online sales and 50p for face-‐to face sales). This will be offered and executed immediately at the point of purchase, with the paper cut to the exact size needed for each dimension variation of note book, A5 and A6. Gift packages will be completed with the finishing touches of a string cross over fastening, a branded sticker and a hand written and stamped ‘Thank you’ label. This adds a personal touch, making the purchasing experience memorable and connecting with each customer individually. Customers’ needs and expectations are satisfied when purchasing from ‘Made with Words’ because the product range offers them something special and unique that they can use to share their regional heritage, or to give as a gift to someone from the North East. The high quality nature of the product means that it will stand the test of time.

The organic feel of the product, being hand produced, with a good design aesthetic and a sense of wit and humour will appeal to those who love to purchase unusual, personal and one off products, which are unique to their individual tastes and identity as a whole.

5. Strategy, Growth and Exit 5.1 Strategy In order for the business to grow, it is important to make sure that ‘Made with Words,’ sells their products at a competitive price point in line with its competitors, making the business a leader in the stationery market. Developing the product range over time will allow the business to differentiate itself from its competitors and therefore, allows the ‘Made with Words’ brand to detach itself from the competition, giving us a strong sense of competitor advantage within the independent stationery market in the UK.

5.2 Growth -‐ 9 Month Plan Month No 1 2 3 4 5

Date September 2014 October 2014 November 2014 December 2014 January 2015

6 7

February 2015 March 2015

April 2015

May 2015

Business Action Business idea and name formulated Initial researching and purchasing of products Production of products and materials begins Trading and social media activities begin Begin production of new product ranges for Valentine’s Day sales Targeted seasonal sales for the Valentines market Analyse previous sales figures, make judgements according to these in terms of most popular regional sayings Begin the liquidation process, and selling existing product range Liquidise Business

5.3 Theoretical expansion -‐ 5 Year Plan Within the following five year period (2014-‐2019), ‘Made with Words’ aims to expand and improve, (depending on the overall success of the business) this would lead to: § §

§ §

Outside funding and sponsorship to allow for expansion of the brand Further primary and secondary Market research being conducted, to expand the business into different regions within the UK and to develop a catalogue of additional popular phrases from these regions. Development in online sales which will include, Companies own website and possible online marketplace sales such at ‘Etsy.’ Expansion into mass production line (20 units per week).

§

The employment of more staff to maintain the hand stamped and one off nature of the ‘Made with Words’ product range and also the original mission and ethos of the brand. As a result of moving to mass production, there would potentially be the opportunity to be stocked as a concession within department stores, books shops and large stationery retailers. Due to the regional nature of the product range, ‘Made with Words’ could also be stocked in regional Tourist Information centres and public spaces in the North East, such as train stations and airports.

5.4 Potential Stakeholders ‘Made with Words’ potential stakeholders for the future could include: Department stores and attractions such as: § § § § §

John Lewis Fenwick Selfridges Liberties of London The Tate Art Gallery (Liverpool/London)

Tourist information centres such as: § §

Local council information points Public building and libraries

Stationery, bookshops and supermarkets such as: § § § § § § § § §

Sainsbury’s Tesco Morrisons ASDA WHSmith Waterstones Paperchase Regional craft shops and Cafes such as ‘RE’ in Corbridge Currently, one of our main stakeholders is ‘Stamptastic’ who create our regional stamps at a cost to the business (See Appendix D).

5.5 Exit The exit plan will consist of the division of all business profits; ‘Entrepreneurs in privately held firms retain a higher percentage of ownership’ (Wasserman, 2003) meaning that all 5 founders would be entitled to an even amount of the profits.

In the run up to liquation ‘some of the day-‐to-‐day operation may continue within the organisation, but the business and its products may be seen on a smaller scale’ (Joseph, 2014). To sell off remaining stock at the end of the trading year, we will use web sales at a discounted price.

6. Operations and Logistics 6.1 Operations Products are sourced from a variety of different companies. The notebooks used by ‘Made with Words’ are purchased from Little Crafty bugs. Stamps are sourced from local independent retailer and manufacturer ‘Stamptastic’ (See Appendix D). Ink pads are purchased from Hobby Craft, and paints are sourced from an existing personal collection (to cut down on startup costs). The manufacturing and hand stamping of the business will be carried out using a conveyor belt system in which each member of staff is assigned a different role such as, creating pattern stamps, organizing colours, stamping products and fastening notebooks and wrapping with stamped paper. Online orders will be purchased over PayPal and posted by members of the team using Royal Mail, Postage and Packaging approximately £3 due to the regular small size of the product. If selling within one area i.e. a workplace a member of staff will take a bulk amount of products to sell on the spot, cash in hand. Online, electronic orders can be placed using a variety of different communication platforms, such as Facebook and E-‐Mail (madewithwordsne@gmail.com).

6.2 Logistics The re-‐order point for the products will be when stock levels reach a minimum of 5 notebooks. Quality control checks will be overseen by all members of ‘Made with Words’, at each individual production point to ensure the highest quality of product and craftsmanship. For example we will make sure all paint and ink is dry before boxing. Health and safety will ensure that gloves and aprons are worn and all working surfaces are clear and organized. There is a social media timeline in place, according to which updates will be sent out 1 every 3 days in order to make sure customers are kept up to date with products available, this will be done twice on the day, at lunch time and tea time when customers are winding down and checking their phones.

6.3 Legal Legal aspects of the business include making sure ‘Made with Words’ is covered by liability insurance to sell products though Young Enterprise. The name ‘Made with Words’ is exclusive to the company brand, product area of stationery and paper goods; it also avoids patent and copyright breach laws. As the business progresses, the typographic designs produced and used by ‘Made with Words’ could potentially be placed under copyright, making them unique to the brand.

6.4 Distribution Channels Products are distributed both online and offline. (See Location and Premises for further details)

6.5 Suppliers Our Suppliers include: § Stamptastic (Regional Stamps) § Hobby Craft (Ink Pads) § Little Crafty Bugs (Notebooks) § Post Office (Brown Paper)

6.6 Location and Premises ‘Made with Words’ will sell at trade fairs and stalls at local markets such as The Metro Centre GE Market, Tynemouth Market, North Shields Victorian Christmas Market, Quayside Market and The Grainger Arts and Crafts Market. To meet the Christmas sales market segment we will sell to/ alongside existing stall holders who have a similar brand image and ethos to ‘Made with Words.’ Many people who sell at these trade markets are usually independent retailers whom the majority of, hand produce or source their products. The ‘Made with Words’ company sits well in this category and these locations provide ideal selling points, which will attract the desired targeted customers who are likely to purchase ‘North East’ themed stationery. The regional location of these premises means that there is a large array of individuals who would potentially purchase ‘Made with Words’ products, as they are familiar with/speakers of the ‘Geordie’ dialect and are somehow connected to it. Advantages of trading at prime location stalls (Metro Centre and Eldon Square) would be: § § §

Guaranteed high level of footfall Broader consumer market (e.g. gifting and tourism) Additional marketing opportunities; handing out leaflets on the business, convenient browsing opportunities.

By analysing trade locations and observing the clientele, we will be able to define the target market more accurately. The online selling platform that has been chosen for ‘Made with Words’ is Etsy, a popular global sales point for unique, quality hand crafted goods.

6.7 Personnel Management ‘Made with Words’ consists of 5 members each with their own individual roles which are as follows: § § § § §

Managing Director-‐ Katie Shackleton Finance Manager-‐ Victoria Smith Marketing Director-‐ Charlotte Barraclough Product/ Service Manger-‐ Rachel Moore Head of Communications-‐ Sophie Balmbra

(See Appendix A for staff roles and responsibilities in accordance with personality tests)

7. Finances

7.1 Cash Flow Forecast The cash flow forecast is a prediction of the finances within the business in the first year of the business. Sept Oct Nov Dec Jan Feb March April May

Starting £-‐ capital Cash in £-‐ Cash £100 out Closing -‐£100 capital

-‐£100

-‐£190.50

-‐£101.59

-‐£83.65 £26.39

£83.43

£137.47

£-‐ £-‐

£-‐ £90.50

£132 £43.09

£88.00 £70.06

£176.00 £88.00 £65.96 £30.96

£85.00 £30.96

£67.00 £10.41

-‐£100

-‐£190.50

-‐£101.59

-‐£83.65

£26.39 £83.43

£137.47

£194.60

7.2 Beginning and End of Year Balance Sheets – Year 1 The balance sheet has been worked out on the costs of starting up the business.

BALANCE SHEET Made With Words Sep-‐14 Fixed Assets Less Depreciation Net Fixed Assets Current Assets Bank Stock Debtors Pre-‐Payments TOTAL Current Liabilities Bank Overdraft Creditors Accruals TOTAL C.A Less C.L. NET ASSETS Financed By Profit / Loss Less Drawings Loan Outstanding Capital TOTAL

£194.06 £272.94 £467.00 £194.06

£467.00 £467.00 £194.06 £194.06

7.3 Projected Profit and Loss The Profit and loss Account has also been taken from the cash flow forecast of starting up the business.

NAME YEAR ENDED

Made W ith W ords Sep-‐14

Cost of Sales Gross Profit Total Rent and Rates Heat, Light and Power Wages and s alaries gross Bank charges/interest Insurance Vehicle exp (Fuel etc.) Travel (Fares, hotels) Postage and carriage Printing and s tationery Professional Fees Repairs and renewals Telephone Advertising Leasing charges Hire purchase interest Depreciation on assets Loan interest

Sales £363.06 Stock £363.06

Total

£69.00 Gross Profit Other Receipts

£636.00 £272.94 £363.06 £363.06

£100.00

Total Net Profit Total

£169.00 £194.06 £363.06

Total

£363.06

7.4 Assumptions The current assumption for the financial growth within the business is encouraging. Forecasting the success of the business and a positive future financial position, the business will be a sustainable and continued success within the entire duration of the first year of trading (ending in 2015). We have drawn this assumption according to the high interest levels that ‘Made with Words’ received on the launch its Facebook page (See Appendix E for Social Media Statistics).

This shows that the future planning and implementation of additional regional sayings will be a success, meaning that the ‘Made with Words’ brand and business will be able to expand their product line and area of trade and focus its attention on many more regions across the UK.

7.5 Break Even Point The breakeven point is how many sales are made within the company and at which point the business will be able to produce a profit. Units Sold (US) Variable Cost (VC = US * V) Fixed Cost (FC) Total Costs (TC = FC + VC) Sales Income (SI = P * US) Revenue (SI – TC)

Sept 0

Oct 0

Nov 0

Dec 30

Jan 20

Feb 40

March 20

April 20

May 17

£ -‐

£90.50

£26.09

£53.06

£30.96

£ 10.41

£100.00

£ -‐

£17.00

£35.00

£ -‐

£100.00

£ -‐

£90.50

£43.09

£70.06

£65.96

£30.96

£51.95

£10.41

£ -‐

£132.00

£88.00

£176.00

£88.00

£85.00

£67.00

-‐£100

£ -‐

-‐£190.50

-‐£101.59

-‐£83.65

£26.39

£83.43

£137.47

£194.06

250

This line shows the predicted break-‐even point for ‘Made with Words’ would be February/March 2015

Sales revenue & cost (£)

200 150 100

Units Sold (US) Variable Cost (VC =US * V)

Fixed Cost (FC)

0 -‐50

Sept

Oct

Nov

Dec

Jan

Feb March April May

Total Costs (TC=FC+VC) Sales Income (SI=P*US) Revenue (SI-‐TC)

-‐100 -‐150 -‐200 -‐250

8. APA References •

•

• •

Chris Joseph (2014) Examples of Business Exit Strategies. Retrieved 6 November 2014, from http://smallbusiness.chron.com/examples-‐business-‐exit-‐strategies-‐ 69.html Jake Butler (2014) What do students spend their money on. Retrieved 17 November 2014, from http://www.savethestudent.org/money/student-‐budgeting/what-‐do-‐ students-‐spend-‐their-‐money-‐on.html Times 100 (2014) Why Carry out Market Research. Retrieved 10 November 2014, from http://businesscasestudies.co.uk/kelloggs/new-‐products-‐from-‐market-‐ research/why-‐carry-‐out-‐market-‐research.html#axzz2vYrcwiVl Wasserman, N. (2003). Founder–CEO succession and the paradox of entrepreneurial success Organization Science, 14 (2) (2003), pp.149–172. Yolanda Brown (2010) Marketing Strategies for selling stationery products. Retrieved 15 November 2014, from www.yourbusiness.azcentral.com/marketing -‐ strategies-‐selling-‐stationary-‐products-‐2966.html

Appendix A – Team Roles and Responsibilities Katie Shackleton – Managing Director “My position is the Managing Director of ‘Made with Words’. I found this role would suit my personality the best as it corresponds with my preferred Belbin role as a ‘shaper.’ Shapers are highly motivated which is essential in encouraging team members and boosting morale. Shapers are also known for taking the lead and pushing others into action. I have displayed these characteristics by taking initiative in the sourcing of some of our supplies and ensuring products we’re ordered at a timescale. I have also been in charge of corresponding with our external moderator and main supplier Hayley Whytock of ‘Stamptastic.’ I have been heavily involved in the editing and ordering of the business plan as my role expresses that I am suited to making necessary changes; all have been for the progression and interest of the team. My role suggests that my desire to succeed will sometimes lead to emotional responses due to frustration; therefore it is vital I liaise with my team through regular (weekly, sometimes twice weekly) meetings and keep them all up to date of group activities through social media platforms. This allows any confusion to be discussed and issues aired in a friendly and professional manner as to forge positive team relationships”.

Sophie Balmbra -‐ Head of Communications “My position in ‘Made with Words’ is Head of Communications. As I completed the Belbin Test I found the role that most suited me was the ‘Team Workers’ role. This highlighted qualities such as good at listening, adapting to different situations and people. It also says that they operate with sensitivity at work, but may be indecisive in crunch situations. This is very accurate of my own work ethic as I would not be as quick to decide on big events in the business. I have supported the other people in my team and made sure there are no interpersonal problems within the team. I have also worked on making sure the content on the social media platforms convey the brand values and message we want to get across. Team workers also don’t like friction and so will go to great lengths to avoid it. I have seen this in myself when selecting an appropriate supplier for the notebooks so there is no problems in getting new, high standard stock at the cheapest price in the quickest amount of time. Even though it may have taken a little longer to find this supplier”.

Victoria Smith-‐ Financial Manager “I was allocated the position of 'Financial Manager' from the Belbin results where I was shown as a Team Worker, which means that I like to provide support within the team as well as making sure that people are able to work effectively. I am also good at filling in the role of negotiation, and I am flexible, diplomatic and perceptive, which fitted in with the role

correctly. I also like to make sure that everyone in the team is getting along. However, I am quite indecisive during planning and decision making. As the Financial Manager within 'Made with Words,' I have over seen the budget and observed where we could improve as well as looking at stock and working out what the business would see as affordable”.

Charlotte Barraclough-‐ Marketing Director “I was allocated the position of 'Marketing Director' for the results from the Belbin Team Roles assessment revealed that I was a 'Complete Finisher', which means that I have a great eye for precise details, a good concentration span and enthusiasm. This then made sense for me to curate the 'voice' and promotional aspects of the brand, communicating my passion into the brands image and ethos through social media and physical promotion materials. The test also displayed that a 'Complete Finisher' is able to foster a sense of urgency' and 'is motivated by internal emotions/anxiety'. These attributes conclude how my time management skills and the ability to work under pressure are traits that have helped my role within this team. As the Marketing Director of 'Made with Words', I oversee the product target market and make sure our brand suits this captive audience with our marketing strategies. I also liaise with Rachael; the Product/Service Manager to look at the brand design aesthetics and decide what will best project the voice of the 'Made with Words'”.

Rachael Moore-‐ Product/Service Manager “I was assigned the role of ‘Product/Service Manager’ because according the Belbin Team Roles assessment I fall under the category of ‘Complete Finishers’ or ‘CFs’ who... § Have great attention to detail & high levels of concentration when it comes to precision and small details. § Are motivated by internal emotions/anxiety § Are able to foster a sense of urgency within the team and are good at meeting schedules and following through with commitments § Are often introverted and require little in the way of external stimulus to be inspired I agree with all of the above statements and feel they describe my personality accurately. These traits are also all beneficial to my role within the team, Product and Service Manager. A role which involves me over seeing the overall design and quality of the entire ‘Made with Words’ brand aesthetic and product range, including the visual identity and presentation of all brand outputs”.

Appendix B – Survey Results

Appendix C – Detailed Competitor Analysis The following brands are all small scale and independent companies who specialise in printed, paper goods such as note books, greetings cards and gifts. All these brands fit into a similar price bracket and act as inspiration and motivation for the message, product lines and brand aesthetic of ‘Made With Words’. § Arminho -‐ www.etsy.com/uk/shop/ARMINHO Arminho is a ‘stationary boutique’ based in Portugal founded in May 2011 by two art and design students. Their notebooks are sold via the online retailing platform Etsy and are available worldwide. Price points range from £3.26 for a 4"x5.5" note book with 32 pages to £6.52 for a 5.5"x7.8" note book with 40 pages. They also stock multi packs of 3 small note books for £8.31/£8.55. As a brand Arminho are active on Social Media such as Facebook (2,599 likes) Instagram, Flickr and Pinterest, all of which are very visual communication devices, allowing them to communicate their products quality and pleasing and attractive aesthetic, which consists of natural imagery and a muted pastel colour scheme. They also stock posters which fit within their identifiable brand image of hand crafted letter pressed products. § Paper Whales -‐ www.etsy.com/shop/paperwhales Paper Whales is a small scale independent stationary/accessories manufacturer based in New York, USA. This brand specialises in hand stamped paper notebooks, consisting of simple, geometric and tessellating designs. Paper Whales is stocked on www.Etsy.com, www.collectorartshop.com and www.signature81.com and was founded in February 2012. This brand is active on social media platforms such as Twitter, Pinterest and Facebook (153 likes). Their stock is shipped worldwide from New York and includes Tote bags, Posters,

Stationary Sets and Large or Pocket sized notebooks. Paper Whales retail price points range from £5.10 for a 3½" x 5½" note book with 64 blank pages to £7.66 for a 5¼" x 8¼" note book with 64 pages. § Blinkin Imp -‐ www.blinkin-‐imp.com Bikin’ Imp is a small scale, independent stationary, accessories and home wares brand founded by Lizzie Carins from Morpeth, Northumberland in 2011. She mainly uses hand crafted; limited edition screen prints to decorate her product range (Tote bags, Tea towels, T-‐shirts, Postcards and Mugs) with designs complied of saying and imagery inspired by the North East of England. Blinkin Imps products are stocked online through the brands own Big Cartel page www.blinkinimp.bigcartel.com where retail prices range from £8 to £15. They are also sold in many regional galleries and shops, for example The Biscuit Factory and Northern Print in Newcastle, The Linen Cupboard in Alnwick, CIRCA in Amble, RE in Corbridge, The Chantry in Morpeth and Whitley Bay Tourist Info Centre, North Tyneside. Lizzie also often has stalls at local events such as Tynemouth Farmers Market and Alwinton Country Show. Seasonal products are also available from Blinkin Imp such as screen printed and handmade Christmas cards (£2) and decorative handmade baubles (£4.50). Blinkin Imp utilises Facebook (299 likes), Twitter (146 followers) and also a BlogSpot page www.blinkinimp.blogspot.co.uk to keep in touch and connect with its audience, mainly made up of residents within the North East region. § Joanna Burrows -‐ www.wotmalike.com Wotmalike Ltd was originally founded in November 2009 under the business name GeordieMugs. In January 2014 the business changed becoming Wotmalike Ltd and is run by husband and wife team Jo & Nick Burrows. Jo was brought up in Byker, Newcastle and always been very proud of her North East heritage, using the design name ‘BYKERLASS’ for many years. All of Wotmalikes products are sourced and made in the UK and the brand is stocked in prestigious independent stores throughout the North as well as renowned stores such as Waterstones, Fenwick, The Harris Museum and Art Gallery, The National Trust, Tate Modern Liverpool and The Lowry. Wotmalike Ltd are active on Facebook (305 likes), Twitter (1,046 followers) and Instagram. Wotmalike designs and produces products such as Greetings Cards, Mugs, Tea towels and Coasters, all of which are influenced and inspired by a different region of the UK such as Liverpool, Yorkshire, Newcastle, Northumberland, Cumbria and Manchester. Common and humorous sayings connected to these areas are printed on products in fun and light-‐hearted pastel coloured designs, making these products ideal year round gifts. Prices on Wotmalikes

online sales page range from £2.20 for a greetings card to £8.99 for a printed Tea Towel or Wall hanging. § Ta Da Note Books: ‘Ideas are everything’ -‐ www.tadanotebooks.co.uk TaDa Note books are a high end stationary brand based in London, UK. Their product range of hand letter pressed Note pads, Note books, Sketch books and Greetings cards are all ethically printed on letterpress, from recycled paper and linseed-‐based inks and are bound by hand, they are ‘made by people, for people’. TADA notebooks are hand-‐printed on letterpress and stitched by hand. Other unique details include a pocket on the inside of the back cover and a message debossed printed on the back cover, different for each series of notebooks. Prices on TaDa’s online sales platform range from £3.50 for a letter pressed greetings card to £7.50 for a A5 printed note book and £14.50 for a hard back A5 Note book with 128 pages. As well as being stocked online, TaDa notebooks are also stocked in many independent retailers across the UK (www.tadanotebooks.co.uk/stockists). TaDa Note books are active on online communication platforms such as Facebook (109 likes), Twitter (498 followers) and Instagram (637 followers). They also have their own brand orientated blog www.tadanotebooks.co.uk/blog/ § Lovely Cuppa -‐ www.lovelycuppa.co.uk Run by Nottingham based graphic designer Amber Ward Lovely Cuppa (founded in 2009) produces stationery such as bright digital prints, screen prints, hand stamped cards and ecofriendly notebooks, all paper used for the creation of Lovely Cuppa products is 100% recycled paper. Lovely Cuppa is stoked solely online on ‘Not on the High Street’, ‘Etsy’, and ‘Folksy’. Prices range from £2 for a printed greetings card and £3 for a hand stamped 89x124mm note book to £25 for a framed screen print. Lovely Cuppa uses Facebook (61 likes), Twitter and Pinterest to connect with its online customers. § Happy Jackson: ‘It’s a beautiful thing’ -‐ www.happyjackson.com Happy Jackson is an East London based stationary, gifts and accessories brand which is centered on its humorous, bright and bold aesthetic. They mirror this brand image throughout their online communication platforms Facebook (1,214 likes), Twitter and a blog www.happyjackson.com/latest-‐blog . All Happy Jackson products are sold online through the e-‐retailer www.temptationgifts.com, however their products are also stocked in department stores, independent gift retailers and card shops across the country. Retail prices range from £6.99 for an A6 note book, £8.99 for a A5 note book to £12.95 for a branded ball point pen. § The Letter Press Collection/NineteenSeventyThree -‐

www.nineteenseventythree.com/collections/the-‐letterpress-‐collection The Letter Press Collection is a small product diffusion line within the stationary and accessories brand NineteenSeventyThree which is based in East Sussex, UK. The collection consists of Note books and Greetings cards. All cards have a retail price of £2.75 and are printed and letter pressed in bold colours and graphic designs, similar in design all letter pressed, hard back Notebooks measuring 121mm x 170mm are priced at £5. NineteenSeventyThree are active on Facebook (1,011 likes), Twitter (3,371 followers), Instagram (1,811 followers) and Pinterest; however there are no social media platforms dedicated to The Letter Press Collection. NineteenSeventyThree also stock other note book brands such as Eley Kishimoto, Grafika and Sanna Annukka. § Nuuna Notebooks: ‘A Nuuna Notebook asks to be filled with good and bad ideas, sudden inspirations, thought fragments, moods and sketches. And, in time, with every fleeting note and every coffee stain, it becomes more valuable’ -‐ www.nuuna.com Nuuna Notebooks is a German brand based in Frankfurt who specialise in graphically designed Note and Sketch books printed with motivational slogans. Small note books measuring 108 x 150 mm and with 176 pages retail for 15.90€ (£12.59) and larger notebooks measuring 165 x 220mm with 256 pages for 22.90€ (£18.30). Facebook (878 likes), Twitter and Pinterest are all utilised by Nuuna Notebooks to connect with their targeted consumers. § Hello Frankie: ‘Organise. Create. Love. Hello Frankie is an eclectic collection of beautiful stationery and lifestyle items that help us lead a more organised and stylish life’ -‐ www.hellofrankie.com.au Hello Frankie is an Australian based brand which showcases small and independent designers of stationary, gifts, office wears, decorations and home wares. Brands they stock include Papier Tigre, Rifle Paper, Katie Leamon and An April Idea. With 1,816 followers on Instagram, Hello Frankie is a very visually lead brand. This is also shown in the brand blog which is used to keep customers up to date with the latest product lines and designers www.hellofrankie.com.au/blogs/news. Prices vary between brands, however at the time this research was observed the cheapest note book was a Katie Leamon A5 Notebook, priced at 9.95 Australian Dollars or £5.42. A set of 2 A2 note books by Rifle Paper is priced at 17.92 Australian Dollars or £9.77. An A5 note book by Papier Tigre with 96 Pages (32 plain, 64 ruled) which retails at 22.95 Australian Dollars or £12.51. A pack of 2, blank 14cm x 21cm note books by Danish brand Darling Clementine is priced at 27.95 Australian Dollars or £15.23. Worldwide shipping is available from Hello Frankie; however this must be arranged via direct email communication with the brand.

Appendix D – Supplier profile: ‘Stamptastic.’

Above you can see the polymer stamps that were produced by Stamptastic for Made with Words. www.facebook.com/stamptastic.uk

Appendix E – Social Media Statistics