SST BUSINESS PLAN - Fiona McGilvray 2023

Welcome The Business Plan

You’ve got a business idea. You’ve decided to start a business. You want to get going.

But there’s a lot more to a good business than a good idea. You need to think things through to maximise your chances of success. Are you the right person to run the business? Will customers like your product?

A business plan will help you turn an idea into a business. It needs you to think through all the parts of your business to plan how everything will work. It will take a few weeks to write if you’re going to do it properly. Some parts will be easier to complete than others.

Stick at it because it’s not the final document that’s important, it’s the process. Although you want to have a good plan when you’re done, an OK plan is better than no plan.

The Prince’s Trust Business Plan Pack

The best business plans aren’t long and complex; they explain only the most important information – what you want to achieve, how you will get there and the things you need to do along the way.

It’s best to tackle a business plan in small chunks. The Prince’s Trust Business Plan Pack can help. This is The Business Plan divided into sections to help you develop your business idea. You can use the information in The Guide to help you complete the sections. Some of the sections of The Business Plan have tables to record the financial parts of your business. The tables are also available in MS Excel format and the sums in these are automatic.

The Prince’s Trust Enterprise Programme

The Prince’s Trust has helped many young people to complete their business plans and start their own businesses. If you are aged 18–30 and unemployed or working fewer than 16 hours per week, then we might be able to help you. We have offices throughout the UK and in each there is a team of Enterprise Programme staff.

To take part, you need to be interested in self employment and have a business idea that you would like help to test and explore. The programme can then help you to see if your business idea will work and whether self employment is right for you. If through this process you find out it is, the programme can offer mentoring support and, if you really need it, financial support to start your business. However, if self employment turns out not to be the right option, the programme can offer support to secure other goals in employment, education, training or voluntary work.

We can’t guarantee that your business will work or that we will be able to offer you money, but if you are up for a challenge and want our help to explore your business idea, get in touch and come and meet us.

Getting started

Whose plan is this?

Business and owner details:

Fiona McGilvray

Business name:

Fiona Jane Handmade

Owner(s) name:

Fiona McGilvray

Business address and postcode:

Business telephone number:

Business email address:

Home address and postcode (if different from above):

Home telephone number (if different from above):

Home email address (if different from above):

As above

Section one

Executive summary

1.1 Business summary:

A craft-based business, selling on Etsy, the business will sell handmade rice bags, sewn primarily by machine and finished by hand. To supplement this there will be other lines in patchwork bags as well as simpler and smaller items, all decorative and functional, for sale, for use around the house, for example bunting, coasters, and place mats.

1.2 Business aims:

The aim of the business is to provide an additional income stream in retirement, by creating a business which as well as generating income, provides a creative outlet for me, the owner, can be run from home and will fit around my other roles and interests. Starting small, concentrating on providing textile bags, with a small selection of other hand-made goods, the aim is to keep stock and labour costs in line with budget. Proceeds will initially be reinvested into the business, which over time will allow the business to grow and me to develop my skills and expand the range, exploring the viability of offerings such as wall hangings, art quilts and other bespoke items for clients.

1.3 Financial summary:

Being a mature individual, with saving and other sources of income, I will in the first instance be able to fund the startup costs myself. I will allow for an initial investment of £200 of my own money for new materials, including packaging, and keep a close eye on time spent, not only on making products but on the administration of the shop e.g. managing the finances, taking parcels to the post office etc.

Elevator Pitch

1.4 Your business name:

Fiona Jane Handmade

1.5 Strapline:

Beautiful finds, made lovingly by hand.

1.6 Elevator pitch:

Unique bags and other decorative and functional items, which can made to order to your specifications, resulting in an individual pieces you will treasure and use for years to come.

Section two

Owner’s background

2.1 Why do you want to run your own business?

I want to create a business, that will allow me to generate an income stream in retirement, doing something I love, creating functional and decorative textile bags and other goods, which will bring joy to customers and clients for years to come.

I want to carve a niche, offer something unique to the customer, while developing my craft through practice and collaboration with customers to meet their briefs.

2.2 Previous work experience:

Currently I have two part time roles, which I intend to continue in, while establishing my own business.

Healthcare - November 2022 to date

 Working part time for the NHS, I provide administrative support for the Vaccination Transformation Programme, which provides a comprehensive vaccination service to the population. I support the team by meeting and registering the public when they come in for vaccinations, but also assist with arranging visits to nursing and care homes as well as the housebound. After many years working with internal and corporate clients, I enjoy being able to work with individuals from many different backgrounds.

Library Services (Local Government) - October 2022 - to date

 Following the pandemic, when I worked for local government in a vaccination centre, I have moved across into libraries and now work on a supply basis to assist with the provision of local library services. This takes me to different libraries and allows me to gain experience in both traditional settings and larger school libraries, based within community hubs. Given the wide range of services provided by libraries, no two shifts are the same and I have been able to get involved in and gain insight into services offered, to young and old and everyone in between.

Previously, I worked in:

Financial Services - December 1989 – January 2020

Assistant, Manager, Lloyds Banking Group plc – May 2007 – January 2020

Supported Legacy Ireland & IMS Asia businesses and Leasing Centre of Excellence teams within Finance, delivering a variety of monthly, quarterly, and ad hoc finance reporting and other processes to a range of stakeholders across the wider finance team and the business, my specialisms included.

Stakeholder management

o Strengthening stakeholder relationships with business partners, as well as with divisional and financial control teams through regular dialogue, which lead to improved reporting and business efficiencies.

o Ensuring submissions were in line with expectations and requirements and were kept relevant by reflecting changes in the business areas, and at the same time were achievable within specified time frames.

Communication

o Acting as the team’s Service Excellence representative, meeting with the other representatives on a regular basis to share best practice across the wider team.

o As a member of the Charity Committee, assisting with the preparation of and participated in the wider team’s annual charity event, to support Mental Health UK.

o Organising my own event to raise funds for charity and support daughter’s school fundraising.

Process alignment and improvement

o Reviewing and streamlining the reconciliation process, by identifying, and making efficiencies to this, strengthening the backup, e.g., reconciling by company rather than by asset or liability, and migrating all balances to one ledger.

o Creating user groups and filters on the Integrity system to simplify and streamline the process for all parties involved.

o Adopting the Financial Control journal standard, rolling out templates, log, and related processes to the team, and providing guidance where required. Identified omissions in templates, used workarounds and liaised with the central financial control team.

o Migrating and aligning different heritage databases, systems, and processes across locations.

Projects and working parties

o Compiling statistics on team skills to facilitate cross training, knowledge, and resource sharing within the wider team.

o Participating in user acceptance testing for the ledger (Oracle Fusion) migration project, prior to installation, to ensure that this could match the output of the previous Oracle ledger.

Financial analysis and reporting

o Preparing pre and post month end financials on expenses for business partners, challenged outputs as required.

o Producing monthly MI packs and management accounts, including variance analysis.

o Participating in annual planning activities to support the production of the business area’s budget, completing an in-depth analysis of the Ireland accruals and provisions, to facilitate this process and optimise their utilisation.

o Supporting the monthly and quarterly completion of Group & Divisional Reporting Solution (GDRS), including uploading to the Intercompany Server (ICS) and variance analysis for the business, a vital element in the production of notes to the Group’s accounts.

o Quarterly VAT returns, which included analytical review and liaising with Group VAT to fully resolve all queries.

o Monthly balance sheet reconciliations, with the focus on reserves, and VAT balances.

o Daily reconciliation of the Leasing source system to ledger, responsible for investigating and resolving issues.

o Monthly P&L and balance sheet submissions to other Finance teams for consolidation and management reporting.

o Submissions to external stakeholders, e.g., SocGen and the FLA (Finance and Leasing Association) and contributed to Office for National Statistics and Bank of England returns.

Financial Control / Governance

o Monthly journal preparation, including accurate and appropriate back up to predetermined deadlines within the governance framework, to ensure accurate reporting of financials.

o Balance sheet reconciliation and certification monthly, which involved investigating and resolving differences, facilitating account owner sign off and ensuring adherence to group minimum standards.

o Assisted with Quality Assurance Reviews, implemented recommendations and supported the resolution of external audit queries.

Earlier Roles

o Assistant Manager, Corporate Banking Finance, HBOS plc, June 1998 – May 2007

o Network Manager, Global Custody Services, Bank of Scotland plc, September 1996 – June 1998

o Customer Service Officer, Frankfurt, Bank of Scotland plc, February 1994 – September 1996

o Customer Service Officer, Registrar Department, Bank of Scotland plc, September 1990 – February 1994

o Clerical Officer, Carol Jones Recruitment, December 1989 – September 1990

2.3 Qualifications and education:

 City & Guilds, School of Stitched Textiles, May 2021 – to date Currently studying towards Skills Stage 3, Patchwork & Quilting

 Edinburgh University, Centre for Open Learning, Short Courses 2019/2020

o A History of Modern Fashion

o Introduction to Scottish Genealogy

 Future Learn Short Courses 2019/2020

o History of Royal Fashion, Glasgow University

o The Tudors, University of Roehampton

o Genealogy: Researching Your Family Tree, Strathclyde University

 Member of the Chartered Institute of Bankers (MCIBS), Napier University, October 1991 – June 1998

o CPD certification maintained to 2020 through LBG internal training & software courses.

 Postgraduate Diploma in Executive Secretarial & Office Studies, Strathclyde University, 1988 – 1989

2.4 Training:

Details of future training courses you want to complete:

I would like to progress with School of Stitched Textiles and City & Guilds, to either broaden my knowledge in another field of Textiles or progress to the next skill level in Patchwork & Quilting. I would also like to acquire more experience with tools, social media and apps designed to promote a small business. Resources I have made use of in the last couple of years in this area are Tech Pixies, attending their social media Bootcamp and Happy Side Hustle, which helps to promote small businesses by supporting them with advice and guidance on a number of issues.

2.5 Hobbies and interests:

Walking Pilates & Yoga

Crafting History & Genealogy

2.7 Additional information:

VOLUNTEERING

January 2022 – to date

NHS Lothian - Clothing Store, Royal Infirmary, Edinburgh

March 2021 – December 2021

NHS Lothian - Covid Vaccination Centre, Midlothian

April 2020 – October 2020

University of Bristol, contributor to PhD research into ‘Crafting during Coronavirus’

May 2020 – August 2020

Edinburgh Mask Makers, mask maker

Section three

Products and services

3.1 What are you going to sell?

3.2 Describe the basic product/service you are going to sell:

Initially, I will set up the Etsy shop to sell pre-made rice bags, and a small range of decorative goods, these will include other bags, bunting, coasters, and place mats. These will be produced using a limited number of colours to keep costs down and avoid wastage.

3.3 Describe the different types of product/service you are going to be selling:

Textile bags – as part of my course I made quilted bags, and one would work particularly well commercially. The rice bag is a four-sided boxy shaped drawstring bag, quilted, lined, and fastened with a drawstring. The design is easy to construct and can be made up and embellished in any number of ways, depending on the fabrics used and desired result. I chose plain fabric for my version, but decorated each side with a unique pattern, tied together with a theme of circles, using a variety of techniques I have learned over the last couple of years. The idea would be to produce three or four examples, which although constructed in the same way would demonstrate the different finishes that could be achieved showing how they can be customised.

Bunting – the market for bunting is saturated, so I will start with two different styles, one in pastels and one in brights. These will be available in two lengths.

As with the bag, I will be able to offer a personalised service where bunting can be customised with letters or numbers. I have already made a string of bunting which I personalised for my great nephew, my niece chose the colours for the flags and letters. This could be offered to mark birthdays, weddings, or other celebrations.

Quilted coasters and place mats – these will again be offered in colour ways in sets of 4. Although the fabric colour choices will be the same for sets, each mat would vary in design. Again, these goods can be adapted so that customers will have the option to choose their own colour. Both these and the bunting are a good way to make use of left over fabric from the textile bags.

Once established, I intend to introduce, Wall art – small abstract art quilts. These will be finished so they are ready to hang. This is one area that I would hope to develop over time, as my skills and confidence in this area grow.

3.4 If you are not going to sell all your products/services at the start of your business, explain why not and when you will start selling them:

As mentioned above, I will produce a small range before launching my shop, so that I am able to cost accurately based on time spent. I would anticipate 8 – 12 weeks to get stock prepared and the shop and social media up and ready. I want to have a few items ready to dispatch at any one time. Central to my idea of customer service, is not to keep the customer waiting, though with personalised items a lead time is inevitable, and this needs to be clearly outlined in the information on the shop and any social media. Accurate time frames will be calculated as I prepare the initial stock for the shop

3.5 Additional information:

Ideas and options to consider once the shop is open and trading is established.

Some items may sell better than others, so lead the business in a particular direction. Possible alternative places of sale, further research would be required to find out what this entails and suitability of places of sale.

4.1 Are your customers:

x individuals businesses

both

4.2 Describe your typical customer:

Most likely female, someone who is looking for a thoughtful gift which will appeal to the recipient. Someone who appreciates the work that goes into a handmade item and has the disposable income to pay for it.

4.3 Where are your customers based?

Initially I would like to limit to sales within the UK. Online shoppers.

4.4 What prompts your customers to buy your product/service?

Presents to self and others for Christmas and/or birthdays. My bags are multipurpose so can be used anytime, but can be customised for occasions e.g., Halloween. Other goods are for the home and garden, so would work as a housewarming present or adding finishing touches to interior décor, in which case they could also be purchased year-round.

As products can also be themed, they would work for summer festivities, held outside, garden parties, weddings. They could also be themed for other celebrations and festivals, such as Christmas, Easter, and Halloween.

4.5 What factors help your customers choose which business to buy from?

o Advertising

o Social media presence with regular updates

o Word of mouth

o Good customer ratings

o Uniqueness of product and/or ability to personalise.

o Personal touches, how the products are presented and little extras such as a thank you note.

4.6 Have you sold products/services to customers already? x yes no

If you answered “yes”, give details:

I regularly sell a wide variety of second-hand goods, ranging from clothing to vintage textiles and books, what seems to work well are good photographs of products, regular listing of new products and favourable ratings from satisfied customers. I notice more activity around pay day.

I have also made bespoke bunting for my niece, for which my sister-in-law paid me. This was made to order, and we communicated frequently to ensure the end product met with and hopefully exceeded expectations.

4.7 Have you got customers waiting to buy your product/service? yes

If you answered “yes”, give details:

Section five

Market research

5.1 Key findings from desk research:

For my research, I have looked on Etsy at shops which sell similar goods to those I am intending to sell. From this research it is worth noting the following.

 Offering a variety of different examples of the same item, using the same design but in different fabrics to suit several tastes.

 Offering a selection of different items sold through one shop, to increase sales by offering variety.

 Offering an affordable price bracket on all goods, so selling higher volumes but at lower prices.

 Keeping the shop well stocked, so visitors spend longer browsing and potentially buying and returning to the same shop.

 Offering a high level of customer service, promoting positives, such as quick delivery and being open to enquiries.

 Perhaps offering discount vouchers to encourage customers to return.

 Generating good reviews, which can be read by potential customers.

 Plenty of good photographs, well-lit against a plain background, taken from a few angles and in close-up. Depending how the item will be used, it is worth considering if it can be shown or filmed in that setting.

5.2 Key findings from field research – customer questionnaires:

I have no customers at present but have asked friends and family what they would look for in if buying my products.

 With the rice bags, they have made suggestions for different colour choices and sizes, my initial design is constructed using 9’’ squares, could this be scaled up or down?

 Suggested uses, what could this be used for? This would be useful for marketing, in terms of promotional photographs, incorporating a selection of items in photographs to suggest a variety of uses.

 Lead time for delivery, how quickly will they get the item.

 Return policy, will they be entitled to their money back.

 Would they be able to specify changes and how would this effect delivery times?

5.3 Key findings from field research – test trading:

As mentioned above, I regularly sell second hand items. I have had much greater success with this than attempts at selling previously on Etsy. The key findings are.

 Entering a market where there are already many successful producers with proven track records is very difficult.

 Pricing to make a profit is hard, given there are similar products sold at a lower price.

 It is important to come up with a unique selling point, something which gives your product the edge, it is crucial to understand who the customer is.

 What works well when selling second hand on established sites, is security for both parties if something goes wrong or is lost in transit.

 It is easier to sell, if you are prepared to offer discounts for bundles or have factored in a discount when listing.

 Good photographs and good ratings help to sell, as do regular new listings.

 It is always more interesting to look in a well-stocked shop than one with only a couple of items for sale.

Section six

Marketing strategy

What are you going to do?

Set up an Instagram account specifically for my business, invite my friends and family to look, like and follow me, this will be done as I produce my initial Etsy shop stock. Provide a link to the Etsy shop.

TOTAL COST

Why have you chosen this marketing method?

I am an existing account holder and am familiar with how it works.

How much will it cost?

It is free. Instagram is free, but I will track time spent on marketing activities.

Section seven

Competitor analysis

7.1 Table of competitors Name,

Forest and Leaf Etsy Shop (3,015 sales)

Handmade rice bags

Price

Strengths

Weaknesses

£6.00 - £12.00

Shop split by type of product

Good photographs, well-lit and demonstrates size

Nice branding

Links to Facebook and Instagram

Visibility of seller and her history

Lovely packaging, if intended as gift

5* ratings for quality of goods, delivery, and customer service

Variety of fabrics

Variety of themes

Variety of sizes

Different goods sold in same shop

Volume of products available

Made to order

Minimising waste through use in other products

Although the seller makes drawstring bags, her main product is a fabric plant holder, the range of products is limited, and design repeated in different fabrics. Pricing seems on the low side for the work involved in making the product, other similar items on Etsy are priced at as much as £25 to £45.

Drawstring looks to be made of a cream-coloured cord, this could be enhanced to tie in better with fabrics used in bag and reflected in pricing.

7.2 SWOT analysis :

Strengths

 New to market, with fresh product

 Selection of products available

 Made to order

 Qualification in relevant area

Opportunities

 Customise products by season or occasion, or customer’s choice of colour

 Personalise with letters or numbers

Weaknesses

 New to Etsy and no track record

 Profitability at outset with initial outlay

 Ability to generate sales and get business off the ground and established

 Maintaining and growing the business, keeping it fresh

Threats

 Competitors and what they offer

 Saturation of market

 Ideas copied

 Prices undercut

 Problems with equipment, if sales come in and sewing machine breaks down, time lost due to repairs or replacements

 Problems with suppliers

7.3 Unique Selling Point (USP): Unique Selling Point (USP)

Fresh new design, simple colour palette in neutrals with pops of colour, with option to customise or personalise for customers.

Section eight

Operations and logistics

8.1 Production:

All items will be made at home, using a domestic sewing machine and finished by hand. A few samples will be made beforehand to stock the shop. I anticipate being able to spend 15-20 hours per week on the business.

8.2 Delivery to customers:

Delivery to UK customers by Royal Mail

8.3 Payment methods and terms:

Via Etsy, acts as collecting age, customers can pay by credit card, PayPal and Apple Pay.

8.4 Suppliers:

Name and location of supplier Items required and prices

Plush Addict Ltd

9 Brassey Close

Peterborough PE1 2AZ

Holly’s Haberdashery

19 Barracks Court

Barracks Road

Newcastle-under-Lyme

Staffordshire

ST5 ILG

John Lewis

60 Leith Street

Edinburgh

EH1 3SP

Frumble Ltd

Unit 303 Jubilee Centre

130 Pershore Street

Birmingham B5 6ND

8.5 Premises:

£200 initial outlay to purchase fabrics, wadding and thread

Payment arrangements

Reasons for choosing supplier

Monzo account set up and funded from savings to keep business finance separate from personal finances

Track record, reliability and breadth of stock available. Past experience of ordering from these two suppliers, both are fast and reliable.

This business will be run from my home

8.6 Equipment

If being bought

Item required Already owned? New or second hand?

Sewing machine

Hand sewing equipment e.g

Already own

Purchased from Price

needles, scissors, cutting mat, quilters ruler, tape, pins and clips.

8.7 Transport:

Not essential, as supplies bought mainly online, and sales taken to the post office on foot.

8.8 Legal requirements:

Register business with HMRC.

8.9 Insurance requirements:

Craft based business insurance to be obtained at the outset to cover any unforeseen circumstances.

8.10 Management and staff:

Sole trader, no additional staff required.

Section nine

Costs and pricing strategy

Product/service name

A Number of units in calculation

Product/service components

Fabric * 10 metres

Wadding * 1 metre

Bias tape * 10 metres at £9.00

B

Machine usage and other items, incl. thread, scissors, needles

Hours * 27 @ £15.00 per hour

C Total product/service cost

Cost per unit

Rice bag (2 bags)

Textile bag (2 bags)

D

Coasters (8 coasters)

Place mats (8 placemats)

Bunting (2 strings of 2 metres)

unit

Rice and textile bags, coasters, mats and bunting

4 bags (2 of each style)

2 sets of coasters (4 per set)

2 sets of placemats (4 per set)

2 lengths of bunting

Components cost

(2 @ £47.50)

(2@ £75)

(2 sets @ £35)

(2 sets @£50)

(2 strings @ £30)

Section ten

Assumptions (e.g. Seasonal trends)

I intend to include samples of rice bags and bunting in Halloween, for my launch in September as well as non-themed versions. In subsequent months I will include Christmas, Valentine, and Easter themed fabrics into all product ranges.

Mortgage/rent

Section Monthly cost (£) A Estimated costs

Council tax

Gas, electricity and oil

Water rates

All personal and property insurances

Clothing

Food and housekeeping

Telephone

Hire charges (TV, DVD etc.)

Subscriptions (clubs, magazines etc.)

Entertainment (meals and drinks)

Car tax, insurance, service and maintenance

Children’s expenditure and presents

Credit card, loan and other personal debt repayments

National Insurance

Other

Total costs (£)

Income from family/partner

Estimated income

Part time job

Working tax credit

Child benefits

Other benefits

Other

Total income (£) E Total survival income required (£)

10.3

Cashflow forecast

Bias Tape

Sundries

£4.50 for 5 metres, if successful, can be ordered in 25 metre rolls, 2 rolls bought, cost is for tape used.

£10.00 initially, to cover sewing machine, electricity, thread, needles, scissors, pins & other notions

£15.00 per hour, 19.25 hours work estimated for making stock for the shop.

Postage & packaging

£5.00 approximately per sale, to box with gift wrapping, enclose business card, future purchase discount voucher and send by Royal Mail second class (UK only)

Section eleven

Back-up Plan

11.1 Short-term

plan:

As I am in employment, I intend to start the shop small and build up a small stock, as outlined above, 2 versions of each product, before launching. If successful, I will make batches of items, considering seasonality.

11.2 Long-term

plan:

In the longer term, I would like to branch out from the Etsy shop, initially approaching my neighbour to sell my products in her art & crafts shop, then by attending craft fairs. At this point, I will commission a website. My thoughts currently for the longer term are to create commission-based art quilts and wall hangings. I have a friend who plans to run an exhibition space in retirement, October 2024, so I will collaborate with him and negotiate some space, maybe exhibiting with other textile artists.

I will also look for some local studio space to accommodate the business.

11.3 Plan B:

Working independently, there are always risks involved. With a small Etsy based business with pre-made stock, this should be manageable should I become ill, or have an accident or if my sewing machine breaks down. I can put the shop temporarily on holiday and ensure outstanding orders are completed.

For the longer term where the intention is to establish a commission-based business, I would need to look at other artists. At the point of finalising the brief, it needs to be agreed with the client what would happen in the eventuality that I am unable to complete the work, considering any up-front costs on my part.

11.4 Plan B continued...: