Whether you're a new owner of a flooring business, or have been managing a store for some time, the task of keeping a business afloat can sometimes feel daunting. However, the more you utilize partners, external resources, and business management technologies, the easier it will be to come up with a solid flooring business plan that will take your operation to new heights.
Why Do I Need a Business Plan for My Floor Store?
Creating a comprehensive business plan is crucial for the success of your flooring business. It serves as a vision and roadmap for your business, providing guidance when it comes to making important decisions. Just as a driver is lost without their GPS, an operation will have a harder time staying focused, organized, and on-track without a plan in place.
What Should I Include in a Flooring Business Plan?
The good news is, there isn't “one way” to create a plan. Business plans come in all different shapes and sizes. Some are in the form of a word document, while others are on a slide deck. Some choose to make theirs very detailed and extensive, while other business owners want theirs to be brief and straight-to-the-point. You get the idea.
A good rule of thumb is a business plan should cover your company's goals, how you plan to achieve those goals, a marketing plan, a financial plan, strategies on how you're going to manage your business, among other things. If you need help constructing your first business plan for your flooring business, here are 10 essential elements that should be included. Below the infographic, you'll find more information on each section.
1 - Executive Summary
This goes at the beginning of your business plan, but many choose to do this section last. So if you want to do this after you've done all the other sections, go ahead! The Executive Summary typically contains a summary of what you will be covering in your plan. It can include a brief overview of your business (including its mission, vision, goals, etc.,) and a summary of the key points in your plan.
2 - Business Description
In this section of the plan, you'll provide detailed information about your flooring business. Describe the types of flooring services you'll offer, your target market, and your unique selling proposition (USP). What makes your business stand out from the competition? Why do people choose your flooring store over others? What is the unique history of your business?
List key success indicators you're going to use to measure your business' success. Key success indicators for a business in the flooring industry can vary depending on the specific goals, market conditions, and business model.
Here are some general key success indicators that are commonly relevant to those flooring:
- Customer satisfaction
- Product and installation quality
- Market share
- Sales revenue and profit margins
- Customer loyalty
- Operational efficiency
- Brand reputation
- Industry standard compliance
- Employee satisfaction
3 - Market Analysis
Now it's time to conduct a thorough analysis of the flooring industry in your area. In this section, identify your competitors, their strengths and weaknesses, market trends, and potential growth opportunities.
Along with the strengths and weaknesses of your competitors, you should honestly (and more importantly) evaluate your own strengths and weaknesses, opportunities and threats (SWOT analysis). Your Operational Plan in Step 7 should include plans to strengthen your weaknesses, take advantage of opportunities, and mitigate threats if possible.
4 - Target Market
Define your ideal customers and answer the following questions:
- What is my target's demographics?
- What are their preferences and needs?
- What is my target market's purchasing behavior like? Where do they go to shop? How do they complete a transaction?
- What are my target market's dislikes?
- What is my business going to do to attract and retain these customers?
5 - Marketing and Sales Strategy
Next, in your flooring business plan you'll outline your marketing and sales tactics. This includes your pricing strategy, advertising and promotional efforts, your strategy in maintaining an online presence (website, social media), and any partnerships you'll pursue. For this section, you may want to consult with your marketing and sales staff so you're all on the same page.
6 - Products and Services
Describe the types of flooring products and services you've offered in the past, and are planning on offering in the future. You can list things such as hardwood installation, carpeting, tile work, refinishing, interior design consultations, and more. Be sure to highlight any specialized services that set you apart from competitors.
7 - Operational Plan
For this portion, take time to explain how you would like your flooring business to operate on a day-to-day basis. Discuss your location, equipment, staffing requirements, suppliers, and any subcontractors you're working with. You'll also want to mention the tools and technologies you are planning to use to streamline your operations, such as flooring software.
8 - Financial Projections
After talking with your accountant, provide detailed financial projections for the next 3 to 5 years. Include projected income statements, balance sheets, and cash flow statements. From there, you can then factor in startup costs, ongoing expenses, and revenue forecasts. As mentioned above, please consult with an accountant or financial expert when doing this section.
9 - Funding Request
If you're seeking external funding, specify the amount of capital you need, how you plan to use it, and how you'll repay it. This can include information about loans, investments, or personal contributions. If you aren't seeking funds, you can skip this portion.
10 - Management & Team
Last but not least, introduce the key members of your management team and their relevant experience in the flooring industry. Highlight their roles and responsibilities and explain how their expertise will contribute to the success of the business. If there are team members that may be hindering your success, you may want to include in your plan ways you can address those concerns.
When There's a Plan, There's a Way!
Remember, a well-crafted business plan not only helps you secure funding but also serves as a roadmap for your business's growth and success. It's essential to regularly review and update your plan as your business evolves and market conditions change. As you create and implement your plan moving forward, your flooring operation will be on its way to growth and success!
