Home Accessories and Gifts Business Plan

Dan Carithers, one of the country’s most renowned interior designers, stated that if he had $500,000 to spend in a room, he would spend $400,000 on accessories. . . Accessories are what make a person feel alive. They are the main ingredient in decorating. . . It’s the accessories that create the “I’m home” feeling.” Source: Atlanta Magazine Shops Fall 2001

The Scarlet Tassel is a start-up retail store offering eclectic home accessories and gifts to consumers wanting to create a personalized home environment – that “I’m home” feeling. The Scarlet Tassel plans to open in Sandy Springs/Lower Roswell. This store will cater to middle- to upper-class shoppers who want to express their style and personality beyond the traditional gift and accessory chains. Unparalleled customer service, quality, and value will enhance the customer experience. In Year Two, The Scarlet Tassel will develop its online presence at www.thescarlettassel.com. In Year Three, The Scarlet Tassel will move to e-commerce, shipping directly to its web customers. The Web will be an extension of the store concept – a virtual business card and portfolio for the company – its online “home.”

The Scarlet Tassel’s growth plans include a comfortable year one total revenue. Year Two will develop services and marketing plans, in addition to the Web presence, so that a 30% growth rate is realized. Year Three is expected to achieve further growth by e-commerce development, and continuing awareness by consumers. It is the feeling of both owners that these expectations are realistic and attainable.

Shelly Dozier McKee and Deirdre Stanab bring together 36 years of combined experience to this venture. Their expertise spans merchandising and marketing, purchasing, forecasting and operations, as well as sourcing direct imports. Scarlet Tassel, Inc., is an S-corporation. Shelly and Deirdre each have a 50 percent share of the business, as well an equity investment. The Scarlet Tassel will be realized if additional funding is available for asset purchases and startup costs.

1.1 Mission

Company Mission

The Scarlet Tassel celebrates the home and is a store that caters to the style-conscious buyer. We provide home accessories and gifts that are unique, affordable, and eclectic. Our goal is to create a fair return so we can continue growing and expanding our community involvement.

Customer Creed

The Scarlet Tassel will inform, inspire and show you, our customer, how to create an expression of yourself within your home. We want you to trust us and use our custom services, smart pricing, as well as a sense of trust to create a customized home environment.

Employee Promise

We will provide a fair and friendly work environment that encourages creativity, diversity, innovation, and hard work for our employees.

1.2 Keys to Success

The following factors will determine the success of your company:

• Selling products that offer quality and value to consumers while allowing for personal expressions of style.
• PROVIDE custom services such as in-store workshops and personalized promotions so that customers are retained to generate repeat purchases and make referrals.
• COMMUNICATE directly with your customer base via print magazine advertising, postcard mails, or through our website.
• ESTABLISH a storefront and website that is visible, accessible, and friendly to ensure we are the first choice for all of our products and services on the market.
• Ensure that the Scarlet Tassel’s values are followed through every day management so that a profitable and growth-oriented business can be created and maintained.

1.3 Objectives

• Aim for a minimum direct cost of sales of 45%, and a minimum gross margin of 55%.
• Keep operating expenses equal to or lower than the plan.
• In Year 1, generate total revenue of $626,000
• Establish an Internet presence by Year 2.
• Make Internet presence a part of e-commerce by Year Three
• In Year 2, you can expect an annual growth rate around 30%
• For Year Three, expect an average annual growth rate around 20%