

Manufacturing
A Company Of Quality

Business
Plan
[YEAR]

 John Doe
 10200 Bolsa Ave, Westminster, CA, 92683
 (650) 359-3153
 info@[Link]
 [Link]

CONFIDENTIAL
Table of Contents

Executive Summary 5

Business Profile Summary 6

Market Research Summary 6

Marketing Summary 6

Finance Summary 7
Net Income 7

Business Description 8

Business Overview 9
Business Description 9

Unique Value Proposition 9

Company History 9

Management 10

Location 10

Legal Structure 10

Vision & Mission 11

Professional Advisors 11

Goals & Objectives 11

Products and Services 12

Products 13
Premium Sustainable Leather Designer Bag 13

Alternate Sustainable Material Bag 13

Heirloom Limited Edition Bag 13

Basic Purse 14

Market Research 15

Industry Profile & Outlook 16

Local Market 16

Key Competitors / SWOT Analysis 17

Ci Comme Ca 17

Manufacturing | Business Plan [YEAR] 2/37

 Baggit 18

Target Market 18

Customer Survey Summary 19

Sales & Marketing 20

Pricing Strategy 21
Alternate Sustainable Material Bag 21

Premium Sustainable Leather Material Bag 21

Heirloom Limited Edition Bag 21

Basic Purse 22

Marketing Strategy 22
Digital Marketing 22

In Person Marketing 23

Print Marketing 23

Operations 24

Location(s) 25

Legal Issues 25

Insurance Issues 25

Human Resources 26
Jennifer Martinez 26

Packaging/Shipping/Handling 26

Manufacturing Assistant 26

Marketing Designer 26

Process/Production 27
Production Flow and Delivery Method of Products and Services 27

Suppliers 27

Risk Assessment 28

Financials 29

Breakeven analysis 30

Projected Profit and Loss 30

Projected Cash Flow 33

Projected Balance Sheet 34

Manufacturing | Business Plan [YEAR] 3/37

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1.

Executive Summary
Business Profile Summary
Market Research Summary
Marketing Summary
Finance Summary
Manufacturing | Business Plan [YEAR] 5/37
Business Profile Summary

 Baggit

Baggit designs manufacture and sell the highest quality men’s and women’s designer bags and
totes. Baggit distributes products through its online store, boutique retailers, and brick and mort
ar fashion outlets across North America. Wholesale is a key part of Baggit’s strategy through
To unlock help try Upmetrics! 
various Sales Trade Shows across North America.

Baggit
Start is here..
writing currently operating out of a 2-car garage, making sales at pop-up shops, and is carried
in 3 local clothing boutiques. Baggit plans to expand to a larger manufacturing facility in
Vancouver and eventually outsource all shipping, packaging, and storage to the fulfillment
Market Research
center Shipwire in year Summary
2 of operation.

Baggit is 100% owned by Jennifer Martinez of Burnaby, BC, and is registered as a sole
proprietorship. Jennifer holds a degree in fashion design, has over 8 years of experience in the
 Baggit
fashion retail industry, and experience working for a large-scale leather manufacturer in Spain.
She has consistently sold out of her flagship product, Women’s Designer Handbags, at various
Jennifer has built key relationships throughout her career in retail sales, fashion design
markets and pop-up shops around Vancouver.
education, and employment at an overseas manufacturer in Spain who is now a supplier of
Baggit. Jennifer plans to leverage these relationships to eventually enter into the major retail
To unlock help try Upmetrics! 
space.

Baggit’s
Start writingearly
here..sales strategy will include targeting small vendors such as boutique clothing and
accessory shops, markets and pop-up shops as well as major sales trade shows and fairs.

Baggit products reflect the wealth of experience Jennifer has in both high-end fashion design
Marketing Summary
and manufacturing. Although the company produces entry-level products, distinct brand and
high-quality craftsmanship are echoed in her exclusive line of high-end designer handbags.
These high-end handbags will serve primarily as a showcase to the design world and only be
 Baggit
made available in limited quantities to garner attention and credibility.

During the first bags

The entry-level year, Baggit willthe
will have build
sameon distinct,
the success of attending
recognizable local
brand markets,
qualities, butpop-up
will beshops,
made
and
fromboutiques for regular
less-expensive, sales. Baggit
sustainable will attend
materials. an average
A unique, of 4 plastic
new flexible marketsmaterial
or pop-up shops per
(Nano-mold)
month to maintain
will be hidden withinsales.
fabric bags to provide the feel and malleability of leather. This unique
To unlock help try Upmetrics! 
material will not be apparent, nor advertised as a feature. However, customers will instantly
The wholesale strategy will be to attend at least 2 sales trade shows during year 1 in New York
notice the quality and durability that doesn’t typically exist in fabric-based bags the moment
and
Start Las Vegas
writing here.. where extensive research has revealed an excellent R.O.I. for the top 3 trade
they pick it up. It is subtle, but it definitely sets the Baggit fabric bag apart from any fabric-
shows researched. Baggit will build on the wholesale strategy during the 2nd year and
based bag on the market.
eventually replace small vendor sales (pop-ups, markets, and boutiques) with larger wholesale
opportunities. Jennifer will leverage her existing network connections in the industry to contact
larger retail purchasers as well as attend multiple designs and fashion shows, showcasing her
exclusive line whenever possible.

Manufacturing | Business Plan [YEAR] 6/37

Finance Summary

Net Income

Financial Year Revenue Expenses Net Income

Year1 184,074 219,452 -35,378

Year2 341,645 338,451 35,000

Year3 612,545 451,125 70,000

Manufacturing | Business Plan [YEAR] 7/37

2.

Business Description
Business Overview
Company History
Management
Location
Legal Structure
Vision & Mission
Professional Advisors
Goals & Objectives
Manufacturing | Business Plan [YEAR] 8/37
Business Overview

 Baggit

Baggit designs manufacture and sell the highest quality men’s and women’s designer bags and
totes. Baggit distributes products through its online store, boutique retailers, and brick and
mortar fashion outlets across North America. All of the materials are sustainably sourced and
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selected for their quality. The designs cleverly integrate old-world elements with simple, modern
design and functionality that meet the requirements of today's stylish millennial.
Business Description
Baggit currently designs and manufactures its products in a 2-car garage with part-time
Start writingfrom
support here..family members and fellow university students. The company is looking to locally
outsource labor, secure storage facilities, and small office space, in addition, to purchase raw
materials in larger quantities to increase profit margins during the next year.
 Baggit
Lasting quality craftsmanship, modern design, and impeccable attention to detail are what will
keeptop
The people
threetalking about
features Baggitproducts
of Baggit productsand
andtheir
demonstrate pride
value to the in being a Baggit owner.
customer:

Although the focus

1. Intelligent for Baggit compartments
organization products is on quality and design,materials.
using lightweight an added benefit is the comfort
To unlock help try Upmetrics! 
and ergonomics
Baggit ownersoffered
canby our light
travel proprietary
withoutNano-mold
unnecessarymaterial
weighthidden within
or bulk. the bag. Nano-
mold2. is a flexible,
Unique, thin, light,
lightweight eco-friendly
‘chainmail’ Polyplastomer
material plate
hidden into the which enables the
fabric (standard bagsonly).
model to remain
Unique
thin andValue
Thesoft, Proposition
yet
hidden be instantly material
‘chainmail’ formed to the body
allows addedforprotection
an ergonomic, custom
for the bag’s fit. Additional
contents to
providing
ergonomic benefits,
strength Nano-mold
yet flexibility. plates
It also offerfabric
allows ‘bang-protection’
bags to holdfor laptops,
their shape tablets, and other
to the user’s body for
Start writing
items here..
sensitive to damage.
a more ergonomic carrying experience.
3. Premium, sustainable materials.
Baggit’s distinct recognizable design elements serve as a symbol for social and
Company History
environmental responsibility. Owners need fewer bags due to the quality and neutral
themes of the designs

 Baggit

Since a young child, Jennifer Martinez has been inspired by her grandmother’s love for Spanish
leather-carving and her grandfather’s career as a curator for The Museo Nacional del Prado
(Popularly called El Prado) museum in Madrid. Jennifer learned to sew and pattern from her
To unlock help try Upmetrics! 
mother and grandmother during her early teens and has been creating and selling inspired
works ever since.
Start writing here..
Jennifer has recently graduated from the Bachelor of Design Program at Emily Carr University
of Art + Design. During her studies, Jennifer participated in 3 different fashion pop-up shops
around the city and sold almost all of her 10 items on each occasion. She has made a total of
over $3,000 in sales to date from her designer bags and accessories consisting of sales from
pop-up shops, Etsy sales, and direct sales through friends and family.

Jennifer has established relationships with 3 different boutique fashion stores in Vancouver
who have expressed interest in carrying her products and who will provide a letter of intent to
purchase order once the products are ready. She also has a close relationship with a major
premium textiles supplier due to her previous employment in Spain.

Manufacturing | Business Plan [YEAR] 9/37

Management

 Baggit

Jennifer Martinez, 28 years old - 100% Owner/Designer

Jennifer Martinez holds a Bachelor of Design Degree from Emily Carr University. She has been
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working in the clothing industry for 8 years, starting as a sales representative for The Gap
Clothing Company and progressing to store manager within three years. She has since gained 4
years
Start of sales
writing here..management experience with The Gap where she learned valuable lessons in
people management, budget, and inventory control. Before beginning her degree, Jennifer
traveled to Spain and spent 1.5 years in a reputable leather manufacturing factory, Calzado
Location
Leather SL, where she learned about production, process, and quality assurance.

Jennifer is also active in local, sustainable product education initiatives and volunteers as a
board member for The Green Product Group Organization and Natura leather Hub. Both are
 Baggit
non-profit organizations committed to improving the environment through corporate social
responsibility education.
Baggit currently operates rent-free from a 600 square foot garage at 252 National Street,
Burnaby. After 6 months of operations, the company will require a 1000 square foot additional
storage and assembly space. An example of the ideal 1000 square foot space is 1352
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Woodland Dr. Vancouver, BC located in a light industrial area, yet close to the downtown core.
After 1.5 years of operation, Baggit intends to use a fulfillment center such as Shipwire for all of
Start
itswriting here.. packaging, and order fulfillment.
distribution,

Legal Structure

 Baggit

Baggit is a sole proprietorship, 100% owned by Jennifer Martinez. A sole proprietorship will
fulfill all of the company’s requirements for at least the first 2 years.

To unlock help try Upmetrics! 

Start writing here..

Manufacturing | Business Plan [YEAR] 10/37

Vision & Mission

 Baggit

In 10 years, the Baggit team will be 100 employees strong and headquartered in Toronto and
New York City. The company will have distribution partnerships with major department stores
throughout North America such as Nordstrom and Macy’s.
To unlock help try Upmetrics! 

Baggit drives optimism. Through its branding, messaging, product design, and company
culture,
Start writingBaggit
here.. is committed to helping people feel optimistic about the future of our planet.

Direction, decisions, and culture at Baggit are governed by core values of integrity, authenticity,
and openness. Integrity will be reflected in Baggit’s selection and production of materials, the
Professional Advisors
people hired, as well as in all of its internal and external relationships.

 Baggit

Rex Eagleton: 20-year business owner in the clothing industry.

Rex is a family friend of Jennifer’s and has been an invaluable source for advice and guidance
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along her entrepreneurial journey. Rex owns and operates 2 clothing retail stores in Edmonton,
AB, and can advise on distribution and sales strategies as well as foster connections in the
industry.
Start writing here..

Susanne Jonesfield: Susanne has had a successful career as a purchaser for Macey’s and
Nordstrom’s and is now Senior Vice President of Operations for The Gap Clothing Company.
Goals & Objectives
She has helped Jennifer over the past 3 years with her product development and sales
strategies.
Goal Objectives Date
Chad Fryling: Entrepreneur-In-Residence, Futurpreneur Canada. Chad’s 1 on 1 help with
Jennifer’s business plan and workshops have been instrumental in preparing Jennifer’s
• Reach $192,000 in sales
business for launch.
• Introduce one new product
Goal 1 • Attend at least 2 trade shows and 3 high-profile fashion shows Year1
• Sell at least 1 exclusive product to a local or national celebrity

• Reach $300,000 in sales

Goal 2 • Presence in a major retail chain Year2

Manufacturing | Business Plan [YEAR] 11/37

3.

Products and Services

Products

Manufacturing | Business Plan [YEAR] 12/37

Products

 Baggit

All materials for Baggit’s premium line are selected for quality and durability. Materials include
chromium-free, vegetable-tanned, high-end leather, and recycled cork.

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Men’s Courier Style Bags and Women’s Designer Handbags:

Baggit carries
Premium 3 premiumLeather
Sustainable designs for men andBag
Designer 2 premium designs for women that vary in
material, color, and minor functional design elements. Material patterns are machine cut at the
manufacturer
Start writing here..to precise sizes, then hand-stitched locally with Duralex thread to ensure
premium durability and lasting quality. Each bag requires an average of 5 square feet of
material at an average cost of $32.50 per bag. Hardware costs are on average $5 per bag. The
shipping
Baggit of pre-cut materials takes approximately 3 weeks and costs approximately $300 per
100 bags worth of material. Assembly of each bag requires an average of 3 hours of labor
averaging
All $36for
materials per bag). Alternate material line are selected for quality and durability. Materials
Baggit’s
include Hemp fabric, bamboo, cork, organic wool, and linens.
Average Price/Unit of Sale: $250 (MSRP = $425)
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These entry-level bags employ similar design and functionality as the premium models, but use
Total cost per bag: $76.50
less-expensive materials and are produced 100% mechanically by the manufacturer. The
Alternate Sustainable
average material Material
and labor costs forBag
each bag are $30 and shipping is $150 per 100 bags.
Hardware costs are on average $5 per bag. Local unpacking and handling labor averages at $5
Start
perwriting
bag. here..

Average Price/Unit of Sales: $150 (MSRP = $225)

 Baggit
Total cost per bag: $41.50
Heirloom edition bags are 100% handmade locally and incorporate original artwork from up and
coming global artists. Materials used are similar to the premium design models but the
hardware used for each bag uses pure materials such as Stainless Steel, Carbon Fibre, Gold,
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and Silver. Each piece is a one-of-a-kind original and is created to last for generations. The
average cost of each bag varies greatly depending upon the requirements of the artist, however,
Heirloom
it is likelyLimited Edition Bag
to be approximately $1,500 assuming the artist requires a $1,000 commission.

Start writing Price/Unit

Average here.. of Sale: $3,200

Manufacturing | Business Plan [YEAR] 13/37

  Baggit

These entry-level bags employ similar design and functionality as the premium models, but use
less-expensive materials and are produced 100% mechanically by the manufacturer. The
average material and labor costs for each bag are $20 and shipping is $150 per 100 bags.
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Hardware costs are on average $2 per bag. Local unpacking and handling labor averages
about $5 per bag.
Basic Purse
Average Price/Unit of Sale: $58 (MSRP = $120)
Start writing here..
Total cost per bag: $28.50

Manufacturing | Business Plan [YEAR] 14/37

4.

Market Research
Industry Profile & Outlook
Local Market
Key Competitors / SWOT Analysis
Target Market
Customer Survey Summary
Manufacturing | Business Plan [YEAR] 15/37
Industry Profile & Outlook

 Baggit

Baggit operates primarily in the Manufacturing industry.

Handbags became a symbol of women's independence in the 20th century, according to

“Handbags: The Power of the Purse” by Anna Johnson. Chanel saw theirTo unlock help try Upmetrics! 
potential and by
introducing handbags which suited the time managed to increase their popularity.
Start writing here..
Expensive handbags confer status and certainly have an aura about them. Hundreds of women
are on the waiting lists for the infamous Kelly and Birkin bags even though their prices are very
high. A vintage crocodile Hermes Birkin bag with diamond clasps recently sold for over
Local Market
$64,000.00. Though liberating, but it can also be a financial strain, as some women are willing
to go into debt just so that they can carry a designer bag.

 Baggit
Amongst recognizable North American brands, the last 10 years has seen in excess of a 4900%
increase in companies offering sustainable materials within their products. For example, a
Baggit’s early sales
search through strategy
10 major will include
brand-name targeting
websites fromsmall vendors
2006 such
returned as boutique
a total clothing
of 3 products and
that
accessory
advertised shops, markets
sustainable and pop-up
materials. shops,search
The same as welltoday
as some trade ashows
produces list of and
overfairs.
150 items
containing sustainable materials. To unlock help try Upmetrics! 
Vancouver is home to approximately 252 suitable boutique shops that could carry Baggit
products. 3 of these
The sustainability boutiques
trend - AAA, BBB,
today amongst and CCCisare
consumers interested
inarguably in makingItaispurchase
increasing. evident in order
the
from
Start the
20writing first
here..
Business production run and have provided a letter of intent to purchase. The
and Environment Associations in Canada alone that exist to educate consumers Lower
Mainland and
and companies Valley Region
as well as tocontain
provideapproximately 423 shops
green certification that could
for products and potentially carry
services. Jennifer
Baggit
Martinezproducts.
is actively involved in supporting two of these companies through volunteering; The
Green Product Group Organization and Natura leather Hub.
The Lower Mainland hosts 5 popular weekend markets annually which expect between 10,000 -
40,000 visitors each. The most popular market is the Oval craft Christmas market (40,000
visitors each year), followed by Craft Works (25,000 visitors) and Make It Vancouver (12,000
visitors). There are approximately 12 other smaller annual market opportunities in the region
including fairs such as the Maker Faire Vancouver and Luxury Craft Club events.

Fashion Sales&Trade-shows take place around North America on a regular basis. After diligent
research into each trade show with respect to targeted purchasing audience, the potential
return on investment, Baggit’s production capacity, and time/expense considerations, Jennifer
has chosen 3 potential shows to participate in during the first two years:

Accessories TheShow

New York December 2015

AccessoriesTheShow creates the world’s largest and most vibrant marketplace for juries
accessories each season.

Travel and accommodation cost: $7,300

Average attendance: 10,000 purchasers and 1,000 vendors

Manufacturing | Business Plan [YEAR] 16/37

Key Competitors / SWOT Analysis

Ci Comme Ca

Start writing here..

Strength Weakness

• Uses many different options for materials • Style across products is not distinct
• Strong reputation • Confusing website
• Connections in fashion industry • Brand is not cohesive
• Large social media following and • Only sells through Etsy
engagement

Opportunity Threat

• Could expand distribution • Vulnerable to crashes and changes

• Leverage large social networks more because of reliance upon Etsy
effectively

Manufacturing | Business Plan [YEAR] 17/37

Baggit

Start writing here..

Strength Weakness

• Highest quality materials • Smaller social media networks

• Strong relationships in fashion and retail • Lower profit margins due to smaller
industries batches during the first year
• Offers both high-end luxury and
accessible lines of bags

Opportunity Threat

• Develop stronger social media networks • Changes in import regulations

• Increase margins by making larger raw • Fluctuations in currency could affect
material purchases margins
• Student interns
• Maximize partnership with previous
employers

Target Market

 Baggit

Primary Target Market – End consumer

• 26 – 32-year-old women; 35 – 40-year-old men

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• Household income of $60,000 to $100,000 per annum
• University Educated
Start writing here..
• Lifestyle activities including dining out with friends; yoga; tropical travel destinations;
commuting; business meetings; conferences; shopping

Women in this age group typically make 1 to 2 $200+ accessory purchases every 3 to 4 years.
Men in this age group typically spend $100 - $150 every 2 to 3 years on such accessories.

Women are typically more affected by color, style, and brand recognition.
Men are typically motivated to find a bag that solves a problem.

Manufacturing | Business Plan [YEAR] 18/37

Customer Survey Summary

 Baggit

Based on a recent survey poll, Baggit has updated its design and marketing strategy to confirm
a target market.

A social media campaign on Facebook, Instagram, and Tumblr was sentTo outunlock help try Upmetrics! 
asking consumers
to answer 10 short questions about their needs when it comes to the bags they currently use.
The
Start results
writing were very productive with over 50 polls in 24hours, sparking direct interest via
here..
email. People were very excited about our products and expressed their current frustration with
bags on the market today.

Over 50% of consumers own 2-3 personal bags for different occasions and 47.4% carry
professional bags. The key factor when purchasing a bag for consumers is “the size of the bag
to be as small as possible”. Comfort and durable materials were the second decision factor.
83% of consumers also said they would be willing to pay more for something made in Canada
over a cheaper import. The majority of consumers said poor quality would be the determining
factor to not purchase a handbag.

This confirms a market for local quality hand made products in the accessories industry. The
full results of the survey poll are attached in the appendices along with the corresponding
request letters from the poll.

Manufacturing | Business Plan [YEAR] 19/37

5.

Sales & Marketing

Pricing Strategy
Marketing Strategy

Manufacturing | Business Plan [YEAR] 20/37

Pricing Strategy

 Baggit

This product is priced at the lower end of designer bags and is intended to be used as an
everyday bag with more common materials employed. The MSRP for this product is $225.

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Volume discount for wholesale:

Alternate
2-5 bagsSustainable Material Bag $220 per bag

Start5-50 bags
writing here.. $120 per bag

50+ bags $110 per bag

 Baggit

This product is priced at the high end of the ‘accessible’ designer bags but the low end of the
well-known brand names and is intended to be used for specific purposes and special
occasions with higher-end materials and designs used. The average MSRP of this product is
To unlock help try Upmetrics! 
$425.

Premium Sustainable
Volume discount Leather Material Bag
for wholesale:

Start2-5
writing
bagshere.. $400 per bag

5-50 bags $200 per bag

 Baggit
50+ bags $160 per bag

This product is priced at the premium level. Only 2-3 will be made per year and the opportunity
to purchase them will only happen 2 times per year on an application basis. They are exclusive
and one-of-a-kind items. These high-end bags are used to raise the profile of Baggit products
To unlock help try Upmetrics! 
and gain attention and reputation from the fashion and design community. They will appeal to
the affluent accessories collector who truly wants a quality, exclusive piece. Local and
Heirloom Limited
international Edition
celebrities Bag
will be the intended market for these bags. The average MSRP of this
product is $3200.
Start writing here..
There is no volume discount for these bags.

Manufacturing | Business Plan [YEAR] 21/37

  Baggit

This product has been created to provide a smaller, more affordable entry level for consumers.
It is an everyday purse and a way for customers to discover the quality and style of Baggit
products, but without having to invest in a more expensive bag immediately. The MSRP for this
To unlock help try Upmetrics! 
product is $100. Profit margins are lower on this product as it will be entirely manufactured by
Fabric Industrial Ltd.
Basic Purse
Volume discount for wholesale:
Start writing here..
2-5 bags $70 per bag

Marketing
5-50 bags Strategy $55 per bag

50+ bags $50 per bag

 Baggit

Digital Marketing strategies will focus on Instagram, Facebook, Professional Bloggers, and
directing traffic to Baggit's website.

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In-Person Marketing Strategies will focus upon trade shows, conferences, and purchase fairs,
pop-up shops, weekend markets, boutique vendors, networking, and art shows.
Start writing here..
Print Marketing will include business cards and flyers & posters

Year One Projected Promotional Budget $40.400

 Baggit
Year Two Projected Promotional Budget $51,600

Most Instagram and Facebook posts will be used to engage with customers as opposed to
advertising or direct selling with approximately 3 to 4 posts every day rotating between fashion
and entertainment info; makeup and fashion tutorials; latest trends from Paris, New York, and
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London.

Digital
ThereMarketing
will be a monthly ‘selfie contest’ to encourage followers to post photos on our pages with
$100 per month spend in highly targeted Facebook ads directing users to engage and follow
Start
thewriting
Baggithere..
Facebook page.

Leads generated: 600 unique visitors per month in Year 1

Estimated Conversion to Sales: 2 direct sales per month
Cost: $0 per month

The Baggit website serves 3 functions: feature promotions and new lines; capture visitor’s
email; direct sales through built-in Shopify plugin.

The website URL will be promoted at every event and highly visible on all handout materials
including business cards, posters, and flyers. Google Analytics will be examined weekly to
measure traffic goals.

Manufacturing | Business Plan [YEAR] 22/37

  Baggit

Baggit stands out at every event because of the unique and creative displays, for example,
turning our display table into a high-end-looking runway using mannequins. At each event, the
aim is to collect an email address from each booth visitor by offering something of value in
To unlock help try Upmetrics! 
return. For smaller events, follow-up will be personalized email. For larger events, mass emails
via MailChimp will direct potential purchasers to the Baggit website and/or social media page
In Person Marketing
with a unique offer code.

Start writing here..

Frequency: 2 trade shows and 2 conferences/fairs per year
Estimated Sales: 50 units for Year 1
Cost: $15,000 per annum
 Baggit

The promotional email strategy will be used for booth visitors at pop-up shops, weekend
Circulation of approximately
markets. During the first year100 business cards
of operations, perwill
Baggit month
visit at
or acall
cost of $300
3 local per year.
boutiques per week
to showcase Baggit products and secure storage space.
Circulation of approximately 500 flyers/per month at a cost of $500 per month.
To unlock help try Upmetrics! 
Frequency: 4 markets per month and 3 boutique visits per week
Estimated Sales: 50 units per month
Print Marketing
Cost: $1,500 per month

Start
Atwriting here..events, the focus will be upon making industry connections and forming
networking
strategic partnerships. Where possible Baggit will seek collaboration, engage in volunteer
work, and secure sponsorship from organizations that share the same customer base.

Frequency: 2+ meetings per month

Estimated Sales: Indirect
Cost: up to $200 per month

Manufacturing | Business Plan [YEAR] 23/37

6.

Operations
Location(s)
Legal Issues
Insurance Issues
Human Resources
Process/Production
Risk Assessment
Manufacturing | Business Plan [YEAR] 24/37
Location(s)

 Baggit

Currently, Baggit operates out of a 600 square foot garage for its manufacturing, storage,
packaging, and shipping. Space includes a fabric and materials storage area, 2 large working
tables, 2 sewing machines, and a small product storage area. Working and storage are
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workable up to about 200 units of production per month.

Once
Start demand
writing here..reaches approximately 200 units per month, Baggit will move to a 1000 - 1200
square foot industrial space. The extra space will enable more storage and higher production
through year 2 of business. Towards the end of year 2, Baggit will outsource storage,
Legal Issues
packaging, shipping, and handling to a fulfillment center (Shipwire), therefore increasing the
available space and time for higher production levels.

 Baggit

Baggit anticipates the following legal issues:

• business licenses
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• import/export

A business
Start license from the city of Burnaby will be required for the first year of operation. After
writing here..
the proposed location move in year 2, Baggit will apply to the city of Vancouver.

A provincial business registration (sole proprietorship) will also be obtained through the
Insurance Issues
government authority for the purposes of opening a business bank account through the
Government bank.

 Baggit
A 2-hour import consultation is scheduled with an import advisor through Small Business BC.
This will ensure proper labeling and guidelines are met for a smooth border transaction of raw
Basic Liability
materials Insurance
imported will beJennifer
to Canada. obtainedisthrough Atkinsonthese
also consulting and Terry
sitesInsurance
for furtherand will be paid
regulations:
in monthly installments
Import/Export to help
Canada and increase
Global Affairsmonthly
Canada:cash flow.
Trade.
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Start writing here..

Manufacturing | Business Plan [YEAR] 25/37

Human Resources

Jennifer Martinez
Owners - jen@[Link]

Her responsibilities include building relationships that lead to sales, design

work and changes, sewing, cutting and shipping &handling. Jennifer plans to
employ staff to take over the manufacturing, shipping, and handling during the
first 6 months of operation. The role will be paid a starting salary at $32,500 per
year and will aim for 40 - 60 hours per week.

 Baggit

The position is currently filled by family members on a pro bono basis, which will continue until
approximately month 6. Position requires approximately 10 hours per week, with
responsibilities include boxing, labeling, packaging, organizing and shipping orders. The role
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will be part-time, starting at $11 per hour.

Packaging/Shipping/Handling

Start writing here..

 Baggit

The position will begin as part-time during months 3 and 4 becoming full-time in month 5.
Responsibilities will focus on manufacturing and assembly work (sewing, cutting, gluing, etc.).
This role is key in enabling Jennifer to plan for and attend shows and trade fairs. The role will
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be part-time leading to full-time starting at $15 per hour. This role would be suitable for a recent
design graduate.
Manufacturing Assistant

Start writing here..

 Baggit

Linda Holsworth bringing with her8 years of marketing experience. The position is on a contract
basis at approximately $40 per hour and is on an ‘as needed’ basis.

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Marketing Designer

Start writing here..

Manufacturing | Business Plan [YEAR] 26/37

Process/Production

 Baggit

Products/Services Production Flow: Raw materials will be ordered 2 months in advance,

allowing approximately 30-45 days of manufacturing time to maintain sufficiently. Cutting is
done in as large batches as possible and prepared material is organized near the assembly
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station. Sewing and assembly of the materials happen in 3-day runs and stacked near the
assembly tables for attachment of branding and labeling. A Quality Assurance examination is
Production Flowfor
then undertaken and Delivery
each Method
piece and ofbefore
signed off Products
moving and Services
products to the shipping table to
be packaged. Packaging and shipping preparation can be completed in approximately 2 hours
Start
perwriting
week here..
with items shipped each Wednesday. Greater efficiencies are anticipated once Baggit
employs Shipwire as the fulfillment center during year 2 of operation.
Suppliers
Distribution Strategy: The strategy for most of Year 1 includes small vending (weekend
markets, popup shops, etc.), online opportunities and attendance at 2 major industry trade
Supplier Terms & Policies
shows. Baggit is Product/Service Pricing
currently moving an average of 16 units per month. Year 2 strategy will include
Name Location
phasing out small vending (markets and pop-up shops), attending 6 major trade-shows,
outsourcing packaging and fulfillment to a distribution service and leveraging relationships with
purchasers for major department stores and smaller Canadian $1,500and American retail chains.
Industrial leather sewing machine 30 days shipping
Cal industriesDistribution Channels: Etsy, a local network of friends and family, XXXX Boutique
Immediate
6” leather skiving machine Southern
Inc. $2,600
(Vancouver), XYZ Boutique (Vancouver), ABC Boutique (Edmonton), Local markets and popup
shops (Rainier Provisions, XYZ Christmas
Hot Foil Stamping Market, ABC Weekend Market).
Machine California, USA
600
Distribution Channels in Development: ABC Seattle Trade-show, XYZ New York Trade-show,
Toronto Fashion Exhibit, Purchaser Trade show Las Vegas, Nordstrom, Macy’s, The Gap,
Bootlegger, The Bay, Banana Republic, Harry Rosen, Moores. Minimum order
time of 14 days in
Vegetable-tanned leather hides
advance
Provides entry-level materials as well
Archdale $4 - $45 per 30 day order time
as premium materials
Leather [Link]. for material not in
Vegan and alternative leathers stock
available
North Vancouver,
Canada

$2 - $35 per sq. Up to 65 days

Premium, authentic Spanish leather
ft. custom clearance
BC Calzado hides
Leather SL Additional $5 Min order of 5 hides
Unique hides finished with traditional
per sq. ft.
Spanish carving patterns Madrid, Spain
shipping

Manufacturing | Business Plan [YEAR] 27/37

 Supplier Terms & Policies
Product/Service Pricing
Name Location

Website design and development $5,000

Mackrelmoto Digital marketing campaign

Vancouver, Canada
Media management $800 per month

Print and banner design work Per project

Risk Assessment

 Baggit

Cash flow is dependent on making estimated sales at 2 trade shows per year:
The first trade show is already confirmed. Jennifer will apply to attend multiple shows.

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Illness or inability for Jennifer to work:
Jennifer has a family with the skills to help run the business temporarily if needed. She has
confirmed
Start this option with the family members as a back-up strategy.
writing here..

Suppliers going out of business or raising rates:

Jennifer will maintain relationships with more than one supplier of any given material so as to
reduce the chances of dependency.

Injury Claims:
Jennifer will maintain at least 5 million dollars in liability insurance as well as the standard
Workers Compensation Insurance.

Manufacturing | Business Plan [YEAR] 28/37

7.

Financials
Breakeven analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Manufacturing | Business Plan [YEAR] 29/37
Breakeven analysis

 Baggit

Average Overhead cost per month: $18,000

Average Product Price: $153
Average Product Cost: $49
To unlock help try Upmetrics! 

In order to break even, Baggit will need to sell on average 173 units per month
Start writing here..

Projected Profit and Loss

2024 2025 2026

Revenue $720,051 $1,187,558.50 $1,990,421

Women's Designer
$141,938 $202,402 $288,552
Handbags

Unit Sales 710 1,012 1,443

Unit Price $200 $200 $200

Men’s Designer Bags $100,585 $127,582.50 $161,802.50

Unit Sales 402 510 647

Unit Price $250 $250 $250

Online Sales $477,528 $857,574 $1,540,066.50

Unit Sales 3,184 5,717 10,267

Unit Price $150 $150 $150

Cost Of Sales $554,401.02 $578,951.17 $610,654.42

General Costs $554,401.02 $578,951.17 $610,654.42

Production Costs $490,000 $504,700 $519,841

Material Costs $250,000 $257,500 $265,225

Labor Costs $240,000 $247,200 $254,616

Manufacturing | Business Plan [YEAR] 30/37

 2024 2025 2026

Manufacturing Overheads $64,401.02 $74,251.17 $90,813.42

Utility Costs $14,401.02 $23,751.17 $39,808.42

Equipment Depreciation $50,000 $50,500 $51,005

Revenue Specific Costs $0 $0 $0

Personnel Costs (Direct

$0 $0 $0
Labor)

Gross Margin $165,649.98 $608,607.33 $1,379,766.58

Gross Margin (%) 23.01% 51.25% 69.32%

Operating Expense $524,049.19 $555,645.52 $601,496.49

Payroll Expense (Indirect

$432,000 $440,841.60 $449,874.24
Labor)

Design Team $103,680 $106,358.40 $109,108.56

Lead Designer $60,480 $62,294.40 $64,163.28

Assistant Designer $43,200 $44,064 $44,945.28

Production Staff $237,600 $242,352 $247,199.04

Production Manager $57,600 $58,752 $59,927.04

Production Workers $180,000 $183,600 $187,272

Administrative Staff $90,720 $92,131.20 $93,566.64

Office Manager $50,400 $51,408 $52,436.16

Administrative Assistant $40,320 $40,723.20 $41,130.48

General Expense $92,049.19 $114,803.92 $151,622.25

Facility Costs $44,047.15 $47,645.58 $51,880.69

Rent $36,000 $37,440 $38,937.60

Utilities $8,047.15 $10,205.58 $12,943.09

Manufacturing | Business Plan [YEAR] 31/37

 2024 2025 2026

Marketing and Advertising $40,802.04 $59,742.34 $92,101.64

Digital Marketing $28,802.04 $47,502.34 $79,616.84

Print Advertising $12,000 $12,240 $12,484.80

Administrative Costs $7,200 $7,416 $7,639.92

Office Supplies $2,400 $2,424 $2,448.24

Insurance $4,800 $4,992 $5,191.68

Bad Debt $0 $0 $0

Amortization of Current
$0 $0 $0
Assets

EBITDA ($358,399.21) $52,961.81 $778,270.09

Additional Expense $17,314.93 $15,380.77 $13,327.31

Long Term Depreciation $12,168 $12,168 $12,168

Gain or loss from Sale of

$0 $0 $0
Assets

EBIT ($370,567.21) $40,793.81 $766,102.09

Interest Expense $5,146.94 $3,212.76 $1,159.29

EBT ($375,714.14) $37,581.04 $764,942.78

Income Tax Expense /

$0 $0 $0
Benefit

Total Expense $1,095,765.14 $1,149,977.46 $1,225,478.22

Net Income ($375,714.14) $37,581.04 $764,942.78

Net Income (%) (52.18%) 3.16% 38.43%

Manufacturing | Business Plan [YEAR] 32/37

 2024 2025 2026

Retained Earning Opening $0 ($383,714.14) ($350,133.10)

Owner's Distribution $8,000 $4,000 $4,000

Retained Earning Closing ($383,714.14) ($350,133.10) $410,809.68

Projected Cash Flow

2024 2025 2026

Cash Received $720,051 $1,187,558.50 $1,990,421

Cash Paid $1,083,597.14 $1,137,809.46 $1,213,310.22

COS & General Expenses $646,450.21 $693,755.09 $762,276.67

Salary & Wages $432,000 $440,841.60 $449,874.24

Interest $5,146.94 $3,212.76 $1,159.29

Sales Tax $0 $0 $0

Income Tax $0 $0 $0

Net Cash From

($363,546.14) $49,749.04 $777,110.78
Operations

Assets Sell $0 $0 $0

Assets Purchase $60,000 $0 $0

Net Cash From

($60,000) $0 $0
Investments

Amount Received $150,000 $0 $0

Loan Received $100,000 $0 $0

Common Stock $0 $0 $0

Preferred Stock $0 $0 $0

Owner's Contribution $50,000 $0 $0

Manufacturing | Business Plan [YEAR] 33/37

 2024 2025 2026

Amount Paid $39,359.35 $37,293.51 $39,347.12

Loan Capital $31,359.34 $33,293.52 $35,347.14

Dividends & Distributions $8,000 $4,000 $4,000

Net Cash From

$110,640.65 ($37,293.51) ($39,347.12)
Financing

Summary

Starting Cash $0 ($312,905.49) ($300,449.96)

Cash In $870,051 $1,187,558.50 $1,990,421

Cash Out $1,182,956.49 $1,175,102.97 $1,252,657.34

Change in Cash ($312,905.49) $12,455.53 $737,763.66

Ending Cash ($312,905.49) ($300,449.96) $437,313.70

Projected Balance Sheet

2024 2025 2026

Assets ($265,073.49) ($264,785.96) $460,809.70

Current Assets ($312,905.49) ($300,449.96) $437,313.70

Cash ($312,905.49) ($300,449.96) $437,313.70

Accounts Receivable $0 $0 $0

Inventory $0 $0 $0

Other Current Assets $0 $0 $0

Long Term Assets $47,832 $35,664 $23,496

Gross Long Term Assets $60,000 $60,000 $60,000

Accumulated Depreciation ($12,168) ($24,336) ($36,504)

Manufacturing | Business Plan [YEAR] 34/37

 2024 2025 2026

Liabilities & Equity ($265,073.48) ($264,785.96) $460,809.68

Liabilities $68,640.66 $35,347.14 $0

Current Liabilities $33,293.52 $35,347.14 $0

Accounts Payable $0 $0 $0

Income Tax Payable $0 $0 $0

Sales Tax Payable $0 $0 $0

Short Term Debt $33,293.52 $35,347.14 $0

Long Term Liabilities $35,347.14 $0 $0

Long Term Debt $35,347.14 $0 $0

Equity ($333,714.14) ($300,133.10) $460,809.68

Paid-in Capital $0 $0 $0

Common Stock $0 $0 $0

Preferred Stock $0 $0 $0

Owner's Contribution $50,000 $50,000 $50,000

Retained Earnings ($383,714.14) ($350,133.10) $410,809.68

Check $0 $0 $0

Manufacturing | Business Plan [YEAR] 35/37

Manufacturing | Business Plan [YEAR] 36/37
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