Business Plan for an Art and Souvenir Shop

Table of Contents

1.0 Executive Summary
1.1 Objectives
1.2 Mission
1.3 Keys to success

2.0. Company summary
2.1. Company description
2.2 Start-up summary
2.3 Location and location analysis
2.4. Opening hours

3.0 Management
3.1. Company ownership: Veronika Minkova
3.2 Employees:
3.2.1. Two shop attendants
3.2.2. Artists (Mosaics and Paintings)
3.2.4. Producers of Souvenirs

4. 0 Products
4.1 Souvenirs
4.2 Paintings and mosaics

5. Marketing Analysis
5.1 Market Segmentation
5.2 Competition analyses
5.3 Competitive comparison
5.4 SWOT analysis
5.5 Marketing strategy
5.6. Price strategy

6.0 Financing
6.1. Basic assumptions
6.2 Revenue Calculations

1.0 Executive Summary

Art shop “Avocadi” is an art and souvenir shop, situated in Hungarian town of Szentendre. Hungary is in 17th place ranking of World’s Top tourism destinations The place is carefully selected as it is only 20 kilometers from Budapest on the bank of the River Danube. The ancient houses, churches and traditions of its various ethnic groups so carefully preserved in this atmospheric small town have made it a popular destination for excursions. Located in the heart of Szentendre, art shop “Avocadi” will attract both tourists and locals. Because in all travel agencies’ programs visit to Szentendre is included (either by bus or boat), a large amount of tourists visiting Budapest spend a few couples of hours in Szentendre. Due to its internationally famed artists' colony as well as its numerous museums and galleries it is both a city of the living arts and a true tourist favorites.

In today’s highly competitive environment, it is becoming increasingly more difficult to differentiate between one souvenir shop to another. It looks like all the souvenir shops in the tourist places are selling similar goods and are looking alike. Art shop “Avocadi” unlike a typical souvenir shop, will provide a unique combination of souvenirs and art works and will introduce mosaic works as a new product. Our products are divided in 3 categories: 1) souvenirs, 2) mosaics and paintings and 3) bags and purses. Souvenirs are 86% of our production because our main target group are tourists. We offer a variety of hand made souvenirs: plates, cups, T-shirts, key holders, toys, greeting cards.

Souvenirs will be high-quality hand made products in authentic and in the same time artistic style. The diversity of art products and the materials they are made of will attract a lot of customers at fair prices.

The second category of our production is mosaics and paintings. Although the „art and souvenir market” in the town is in great competition we will bring out something new to the market. Art shop Avocadi will be innovative as appearing with mosaic pictures both as reproductions of masterpieces and original ones. The new material: mosaics distinguish from traditional ceramic pieces of art, in which the region is very familiar with. We expect that art lovers in the region will be fascinated of our works. Mosaics are reproductions of famous masterpieces of Henry Matisse, Van Gogh, Picasso as well as many contemporary Hungarian and foreign artists. The shop will offer originals as well. We will have contracts with two artists: Dimitar Ivanov will be responsible for paintings and Emil Minkov for mosaics. Mosaics will represent 9% of total production and paintings 4% respectively. Our shop name also stands for extravagancy, art and style.

The third product category is “bags and purses”. It represents 1% of total production.

The manager of the store will be Veronika Minkova, who will be supported by her family. Her father will be one of the artists, who make mosaics. The start up expenses will be financed as investing family savings and taking a bank loan. Start up expense will be needed to finance the legal issues, necessary for start up, development of company logo, purchase of store equipment as well as materials and goods for production.

Mainly the business is highly correlated to tourism in Hungary, because 85% of our production is souvenirs. Therefore we evaluate our business risks in connection with the number of tourist visits yearly. A decrease of profits may occur for a number of reasons: raising prices, unfavorable natural conditions or tourist preferences. Another risk we may face is the competition.

Prices are calculated in Hungarian forint throughout the business plan.

1.1 Objectives

Short-term:

Set up a unique shop in the centre of the artistic town Szentendre.

Attract tourists as well as local customers and increase sales of mosaics and paintings

Develop and offer new unique souvenir products

Long-term:

Expand product family by adding pottery products, vases, etc.

Establish “Avocadi” as a place regarded as a “worth-to-visit” by the tourist companies.

1.2 Mission

Avocadi will strive to be a unique shop in the local market. We want our clients to have a complete experience when visiting Avocadi. Not only will they receive an unique souvenir or art work, they will also be provided with an artistic atmosphere, enjoy the design of the shop, the presence of the mosaic art works on the walls, the ceiling and the floor. The outlook of the shop will be unique that will set us apart from the competition.

Our main focus will be offering quality souvenirs at a great value. We will feature a large selection of unique souvenirs, offer original paintings and mosaic works as well as bags and purses.

Customer satisfaction is paramount. Our motto will be: “Everyone deserves to possess unique things.” We want to be the shop of choice for everyone regardless nationality or age.

We will combine variety of goods, atmosphere, ambiance, and friendly staff to create a sense of “place- worth-to-visit” for both tourists and locals.

1.3 Keys to success

The keys to success in achieving our goals are:

Location - visibility, high traffic pattern, convenient access.

The creation of unique, innovative, appealing atmosphere that will differentiate us from the competition

Variety of quality products

Competitive prices, controlloing costs at all times, in all the products.

Providing exceptional service that leaves an impression.

2.0. Company summary

2.1. Company description

The company will be established as a sole proprietor (Bt is Hungarian abbreviation). Veronika Minkova is the owner. Fine arts products will be made by the artists Dimitar Ivanov – paintings and Emil Minkov - mosaics, who will have contracts with the company. The company will buy the materials for them (e.g. paints, ceramics, mosaic, etc.). The same system will apply to producers of souvenirs, who will work with their own equipment but the company will provide materials for them. The souvenirs will be designed by the same two artists.

2.2 Start-up summary

Art shop “Avocadi” start up costs will be necessary to cover all expenses for making up the beginning inventory, rent and maintain the shop. The costs will be also designated to a sewing machine and advertising. A company’s logo will be developed. Our initial start-up costs amount to HUF 11,462,000.00. Prices are calculated in Hungarian forint, the current exchange rate is 251 HUF for 1 EUR.

2.3 Location and location analysis

The modern town of Szentendre was founded by Serbian immigrants in the seventeenth century, which is why it bears more resemblance to southern European towns than Hungarian ones. The town has an old feel with cobblestone streets and outdoor cafes and various architectural styles - Baroque and Rococo - along with the beautiful Orthodox churches. Szentendre is the artist center of Hungary. There are literally hundreds of galleries and artist sketching in the sun. Since the town has also been an artists' colony for more than a century, small museums exhibiting some of their works dot the streets. This is also a great place for shop for souvenirs, although the glut of tacky shops can be a little overwhelming. There are many traditional Hungarian items which can be purchased more cheaply here than in Budapest. Due to its picturesque appearance and easy rail and river access, it has become a popular destination for tourists staying in Budapest and there are many shops and restaurants catering for these visitors.

2.4. Opening hours

Monday to Sunday 09.00: 18.00

3.0 Management

3.1. Company ownership: Veronika Minkova

Skills and experience:

currently an International Business Management student in Fachhochshule “Furtwangen”, 3rd semester

has already managed an art shop

has a family, living in Szentendre

has spent two years in Szentendre

has interest in Fine arts

Responsibilities of the Manager:

Take up the whole management: contract the artists, souvenir producers and other services

Buy and deliver materials to the artists and producers

Managing the shop assistants

Sewing bags and purses in spare time

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