T3 Embroidery LLC
BUSINESS PLAN
Prepared by:
Latasha N. Felder
304 Martin Luther King Dr.
Lonnie, Georgia 31095
9123972151
t3embroidery.com
- EXECUTIVE SUMMARY
T3 Embroidery LLC (referred to from hereon in as the “Company”) was established as a Limited Liability Company at 10406 GA Highway 26 E, Montezuma, Georgia 31063, with the expectation of rapid expansion in the manufacturing industry.
Business Description
The Company was formed on 03/01/2023 as a Limited Liability Company under Georgia state laws and is headed by Latasha N. Felder.
The Company currently employs 2full-time employees and three part-time employees.
Business Mission
“T3 Embroidery is dedicated to providing customized embroidery and unique sewn patches made with precision and passion, catering to everyone who loves embroidery while constantly offering new and fresh designs.“
New Service
The Company is prepared to introduce the following service to the market:
Stitch work: We specialize in custom embroidery, sewn patches, and design services.The company offers products made with precision and passion, and they pride themselves on its attention to detail.
- BUSINESS SUMMARY
Industry Overview
The manufacturing industry presently makes 15 dollars in sales in the United States.
Research shows that consumers in this industry primarily focus on the following factors when making purchasing decisions:
T3 Embroidery plans to leverage social media networks by creating new content, launching new products, and running.Campaigns that will be shared across their active channels. They also recognize the importance of motivating customers to advocate for their business by spreading the word to their friends and family.
As T3 Embroidery grows, they plan to build a team and employ more staff to help manage their orders and reduce turnaround times.
Business Goals and Objectives
Short Term:
- Increase customer base by 20% within the next year through targeted marketing efforts.
- Achieve a 90% customer satisfaction rate through regular feedback and improvement measures.
- Increase production efficiency by 15% through process improvement initiatives.
- Expand product offerings to include a new line of embroidery designs within the next six months.
Long Term:
- Increase revenue by 25% next year through strategic pricing and promotion strategies.
- Hire and train two new employees within the next six months to increase capacity and shorten turnaround times.
- Establish partnerships with at least two small fashion brands within the next year to expand market reach.
- Increase social media engagement by 30% within the next six months through regular posting and targeted advertising.
Legal Issues
The Company affirms that its promoters have acquired all legally required trademarks and patents.
III. MARKETING SUMMARY
Target Markets
The Company’s primary target markets are as follows:
T3 Embroidery’s target group is anyone who loves embroidery. Most of their customers are schools and small businesses, but they aim to expand their reach to other companies in the future.
The estimated number of potential clients within the Company’s geographic scope is 20.
Table 1: Target Market Analysis
| Target Market | Potential customers | location |
| schools | Students, staff, sports teams | local |
| Small business | Owners, employees | local |
| Other companies | varied | Local and beyond |
Pricing Strategy
The Company has comprehensively analyzed its competitors’ pricing and has decided on a pricing strategy based on the number of stitches required for each item while considering its customers’ price sensitivity and ensuring that the margins would cover operating costs. The company will have fees ranging from $25 to $65 per piece, allowing buyers to select a price that fits their budget. This competitive strategy also enables T3 Embroidery to target diverse consumer categories, with some ready to pay a premium for superb quality merchandise while others are more budget conscious.
Table 2: Pricing Strategy
| Stitch count | Price per Piece ($) |
| 0-900 | 25.00 |
| 901-4000 | 35.00 |
| 4001-9000 | 45.00 |
| 9001-14000 | 55.00 |
| 14001-20000 | 65.00 |
T3 Embroidery would be considered a bargain choice and a premium brand compared to the company’s competitors. This is because the company has considered the prices of the direct competitors and has set prices that are similar or slightly lower, depending on the product and level of customization, hence meeting the needs of a broad audience.
T3 Embroidery’s pricing strategy aligns with what was revealed in its competitive analysis. They have researched the prices of similar offerings and have established fair and competitive rates. T3 Embroidery will provide exceptional customer service and credit policies, guaranteeing that consumers are delighted with their products and services. For customers with limited financial resources, they will also offer payment plans and other forms of flexibility in pricing. These measures will boost customer loyalty and repeat purchases.
Promotional Strategy
T3 Embroidery intends to employ a comprehensive marketing plan to reach prospective clients and increase brand recognition. The firm has identified low-cost methods, such as social media marketing, email marketing, and referral programs, to maximizeits promotional budget.
In addition to low-cost methods, T3 Embroidery intends to use targeted Facebook and Instagram ads for paid advertisements. This will enable the business to reach prospective consumers who may not follow its social media accounts. The firm will also exhibit its products and network with prospective customers at trade exhibits.
T3 Embroidery desires to project a professional and superior image to its clients. The company will spend money on designing logos, business cards, flyers, and signs to help make its brand more recognizable. The business’s interior will be designed to exude professionalism while being warm and inviting to customers.
T3 Embroidery intends to implement a system to recognize recurring clients and routinely contact them via email marketing or tailored promotions to increase customer retention. T3 Embroidery aspires to promote customer loyalty and positive word-of-mouth recommendations by maintaining relationships with returning clients.
The Company aims to:
- Increase customer base by 20% within the next year through targeted marketing efforts.
- Achieve a 90% customer satisfaction rate through regular feedback and improvement measures.
- Increase production efficiency by 15% through process improvement initiatives.
- Expand product offerings to include a new line of embroidery designs within the next six months.
Distribution Strategy
T3 Embroidery intends to have a physical and online store to sell itsgoods. Customers will have the option of making purchases either in-store or via their website.
The Company intends to sell its products directly to clients and will not use distributors as part of its distribution network. However, they are open to collaborating with small fashion businesses to broaden their market reach.
T3 Embroidery will distribute its products through its own sales staff and agents. They will also use social media networks and targeted advertising to enhance customer involvement and revenue.
As the company expands, they intend to recruit and train two new staff within six months to boost capacity and reduce turnaround times. They also hope to raise social media engagement by thirty percent in the next six months through regular posting and targeted advertising.
Services
First-rate service is intended to be the focus of the Company and a cornerstone of the brand’s success. All clients will receive conscientious, one-on-one, timely service in all capacities, be they transactions, conflicts, or complaints. This is expected to create a loyal brand following and return business.
- FINANCIAL PLAN
T3 Embroidery is a product-providing company specializing in custom embroidery, sewing patches, and design services, catering to everyone who loves embroidery. T3 Embroidery utilizes financial statements such as balance sheets and income statements. From T3 Embroidery’s balance sheet, the company requires a source of funds of $ 13,000. From its income statement, T3 projects a gross profit of $20,000 during its first year of operation. A 3-year projection has shown an increase in its net income. So, a source of funding will significantly improve its services and products and its overall net income.
- b) i)A balance sheet of T3 embroidery showing the amount of equity needed
| T3 EMBROIDERY CURRENT BALANCE SHEET | |||||||||
| CURRENT ASSETS | CURRENT LIABILITIES | ||||||||
| Accounts payable | 500 | ||||||||
| CASH | 1,000 | Wages payable | 500 | ||||||
| prepaid insurance | 1,500 | ||||||||
| Inventory | 3,000 | total | 1000 | ||||||
| licenses | 1,500 | ||||||||
| TOTAL | 7,000 | ||||||||
| Fixed assets | |||||||||
| Equipment | 3,000 | ||||||||
| Furniture | 1500 | Total funding (EQUITY) needed | 12,000 | ||||||
| Leasehold improvements | 1500 | ||||||||
| TOTAL | 6,000 | ||||||||
| TOTAL ASSETS | 13,000 | Total liabilities and equity | 13,000 | ||||||
Bii) T3 Projected income statement for the first year
| Sales | 30000 | |||||
| Cogs | 10000 | |||||
| Gross profit | 20000 | |||||
| Operating expenses | ||||||
| Rent | 700 | |||||
| Salaries | 4000 | |||||
| Insurance | 500 | |||||
| License | 500 | |||||
| Telephone | 300 | |||||
| Depreciation | 200 | |||||
| Advertising | 800 | |||||
| Total | 7000 | |||||
| Net income | 13000 | |||||
T3 Embroidery is a Limited Liability company. LLCs have several advantages over other types of businesses due to their legal identity and members’ restricted accountability for business activities (Etter et al., 2021). Due to the lack of a board of directors and the reduced administrative burden, their members often administer LLCs.
- ii) Projections for income and expenses for three years
| Year | 1 | 2 | 3 |
| Embroidery sold | 30000 | 34500 | 39700 |
| Cost of goods sold | 10000 | 8960 | 10800 |
| Gross profit | 20000 | 24290 | 28900 |
| EXPENSES (cash outflows) | |||
| Rent | 700 | 700 | 700 |
| Salaries | 4000 | 4700 | 5000 |
| Insurance | 500 | 500 | 500 |
| License | 500 | 500 | 500 |
| Telephone | 300 | 400 | 600 |
| Depreciation | 200 | 200 | 200 |
| Advertising | 800 | 1040 | 1400 |
| Total outflows | 7000 | 8040 | 8900 |
| Net INCOME | 13000 | 16250 | 20000 |
T3 Embroidery projects to increase revenue by 25% in the second year and 19% in the third year. This will be possible when it uses the funds to increase its social engagement, increase production efficiency, expand product offerings, increase its customer base, increase production efficiency, and add extra employees.
As evidenced by the Income statement, T3 Embroidery has a total current capital of
$ 7,000. T3 Embroidery needs extra funding for its start-up costs of $ 13,000. The $ 13,000 will be utilized as follows:
Hiring and training two new employees – $700
Advertising through social media – $1300
Process initiatives – $ 4,000
Targeted marketing – $ 500
A new line of embroidery – $ 3,500
Market research – $ 1’500
Partnerships – $ 1,000
Customer retention measures- $ 500
For continuous improvement, we will utilize the six-sigma approach. We will define improvement activities and the company’s goals, measure performance, analyze causes of poor performance, improve performance by addressing core causes, and control future performance by improving activities (Basu, 2022).
References
Basu, R. (2022). Tools for measurement. The Green Six Sigma Handbook, pp. 157–185. https://doi.org/10.4324/9781003268239-11
Etter, V., & Gagnon, M. (2021). Limited liability companies. Business Structure. https://doi.org/10.4135/9781071861905
