International Smoke ShopBUSINESS PLAN
Prepared by:
Jordan Slade
179 Roasted Nut LnSmithfield, North Carolina 27577
I. EXECUTIVE SUMMARY International Smoke Shop (referred to from hereon in as the "Company") is intended to be established as a C-corporation at179 Roasted Nut Ln, Smithfield, North Carolina 27577 with the expectation of rapid expansion in the high-end smoke shopindustry. The Company solicits financial backing in order to be able to introduce its new product (described below). Business DescriptionThe Company shall be formed as C-corporation under North Carolina state laws and headed by Jordan Slade. I have been mentored into business 10years ago by a colleague and manager from Ford. I sat on Ford Customer ServiceCommittee for 1yr at Ford dealership in Jamestown, ND. I'm currently enrolling into a transferrable program for BusinessManagement at NC State. Im a survivor of a MVR 2-28-17,. That left me with a severe TBI that also caused 2 strokes. I'malive to change the world. One business at a time. Exactly how I relearned how to walk and talk. Business MissionTo creating a peaceful atmosphere in local community. Where goods/products can be purchased. ProductThe Company's primary product will be Smoke accessories: Hand blown glass pieces, bags, scales, vape products, finecigars, cigarettes, energy drinks, clothing, bags/pursesThere will be a multitude of products sold. All products sold will have come directly from West Coast businesses. Made and manufactured in U.S. Except Tobacco andEnergy drinks. Funding RequestThe Company requests a total loan of $90,000.00 over the course of 48 months, to be used for the following purposes: Licensing/permits. To purchase store and make alterations where needed to meet code standards. To purchase necessaryitems for product placement. Point of sale system. Insurance policies. Initial utility setup costs for first 1-3 months. Topurchase an alarm system/cameras. To purchase cooler for energy drinks. To purchase a staging area 20x20ft. To hostcommunity comedians or bands/artists. Purpose Loan AmountMarketing $3,500.00Staffing $10,000.00Initial hiring background checks, etc. $500.00
Long-term debt payment is a key feature of the Company's financial plan. We expect to break even within a two yearsoperation if not less time period following the introduction of our product. Financial predictions suggest a minimum 100%%return on investment by the conclusion of the financing period.
II. BUSINESS SUMMARY Industry OverviewIn the United States, the high-end smoke shop industry presently makes 312,000 dollars in sales. Cigarettes are anticipated to dominate the market segment and hold the largest revenue shares of the market, about 38.54%in the forecast year by 2026. Research shows that consumers in this industry primarily focus on the following factors when making purchasing decisions:Cigar markets: 10,455.2M 2022 market expected to grow 3.56% annually.CBD markets: 2020 2.8 billion expected Annual growth rate 21.2% 21'-28'Energy drink market: Globally 57.4 billion growing at 7% annually between 2020-2025Cigarette market: 455.7 million in NC 2020Based on this market information. I have concluded that adult males are primarily purchasing one of these products. Focus ison the community. With exceptional customer service along with high quality products. Word to mouth advertisement will beat its best. Business Goals and Objectives Short Term:To launch store with little setbacks. To find and hire employees with the knowledge and compassion. Direct the policy and procedure handbook to all employees and make sure it's well read and versed to the best of theemployees knowledge. Long Term:To establish customer base.Launch 3-5 more stores.Donate a percentage of revenue every year to a Brain Injury Nonprofit. Legal IssuesThe Company affirms that its promoters have acquired all legally required trademarks and patents.
III. MARKETING SUMMARY Target MarketsThe Company's major target markets are as follows: Adult population. Smokers as well as CBD users all genders included The estimated number of potential clients within the Company's geographic scope is 5.20. Pricing StrategyThe Company has completed a thorough analysis of its competitors' pricing. Keeping in mind our competition's pricing and thecosts of customer acquisition, we have decided on the following pricing strategy: All pricing will be set at an amount reasonable enough to maintain happy customers. Promotional StrategyThe Company will promote sales using the following methods: I will host community events in order to draw in potential customers. Comedians, bands, artists. Anything to get a crowd ofpeople to witness the store. Im very highly driven when it comes to exceptional customer service. Word of mouth is how mostof the advertising will take place. Also, online platforms. I.e. social media SWOT AnalysisStrengthsCommunity involvementHigh quality West Coast productsExceptional Customer Service WeaknessesEstablishing the proper employees. OpportunitiesTo network on behalf of the West Coast businesses associated with International Smoke Shop ThreatsN/A ServicesFirst-rate service is intended to be the focus of the Company and a cornerstone of the brand's success. All clients will receiveconscientious, one-on-one, timely service in all capacities, be they transactions, conflicts or complaints. This is expected tocreate a loyal brand following and return business.
IV. FINANCIAL PLAN 12-Month Profit and Loss Projection M o n t h l y expense for salaries and overhead(projected):
$10,000.00
Revenue and sales for first year of business(projected):
$300,000.00
Gross profit for first year of business (projected): $120,000.00
