Art Supply Store and Gallery Business Plan

Executive Summary

NALB Creative Center (NCC) is the place where artists meet. NALB is an acronym for “No Artist Left Behind,” with our company by-line stating: “Live Your Art.” NCC is a specialty retail store offering a large array of artists’ materials and supplies, crafters’ needs, a gallery, and an education center. NCC will provide a pleasant facility that will inspire and support amateurs, professionals and crafters in the Big Island art community. NALB will sponsor art shows and competitions, art and craft fairs, scholarships for artists to continue their formal education, and other community events. NALB will facilitate, organize and offer creative workshops and classes in a variety of techniques and media.

The Market

NALB is at the forefront in an exciting and growing market. The island of Hawaii currently has only two stores exclusively offering art and craft supplies. Neither of these stores is able to offer education and hands-on opportunities. Neither currently supports the artists community in active ways. They are also not able to give the high level of customer support that NALB can. NALB is the only art supply store on the island that is owned and operated exclusively by artists. NALB Creative Center will tap into the growing number of professional artists in West Hawaii. We will also fill the needs of the growing market of retirees (100% growth in the last three years) many of whom have settled in Kona because of the thriving art community that exists here. NALB will actively market to teachers and students in the growing public and private education systems.

The Organization

NALB is owned and operated by practicing artists. It is founded on the idea that maintaining satisfied customers is essential to the bottom line. With this in mind, NALB Creative Center will be working hard to ensure that all of their customers’ expectations are exceeded in all transactions. To maintain a presence within the art and craft community and close relationships to customers, NCC will be an active member of the local art scene through participation and education. NALB staff will receive training in the most current trends and products. NALB’s owners will both anticipate and set consumer trends in creative work.

Products, Services, and Delivery

NALB will be located in the commercial business park between Costco and Home Depot, in a 3,000 square foot store. The previous tenants were cabinet makers and much of their handiwork remains to our benefit. NALB will have the floor space to offer a wide variety of art and craft supplies. Due to our size, we will also have the purchasing power to buy from manufacturers directly, thus avoiding middle man mark-ups. We will offer discounts to regular customers. We will also offer free delivery in North Kona for orders of $300 or more. NALB will offer Artist’s Oasis holidays to travelers by arranging local accommodations, renting equipment, selling supplies, and offering maps and guides.

Financials

NCC will show modest profit from month one. Margins are forecasted to be at 50%, due to the ability to buy wholesale. Sales in the first full year will be slightly over $300,000. We are projecting conservatively a growth rate of 5% the first three years and 20% thereafter, even though existing art supply stores are reporting growth of over 30%. We budget conservatively, but have great vision.

1.1 Objectives

1. Customer Satisfaction: To create a shopping environment that caters to the needs of the art and craft community of the Big Island by offering knowledgeable and professional customer service. Customer satisfaction will be measured through repeat business (our goal is that 50% of our customers will return within 6 months for an additional purchase) and multiple sales (our goal is that 30% of sales are accompanied by an additional purchase).
2. To earn 80% market share and become the number one art and craft supplier on the island.
3. To achieve a 50% profit margin within the first year.
4. To be an active and vocal member in the community and to provide continual re-investment through sponsorship of community activities and celebrations, including: supporting art and craft events, hosting classes, providing scholarships.
5. To develop, in year two and three, Artist’s Oasis of Hawaii. In this program we would arrange local accommodations and materials rental for visiting/vacationing artists.

1.2 Keys to Success

In order for NALB Creative Center to succeed we must:

• Provide for the satisfaction of 100% of our customers and vendors.
• Advertise and promote in areas where our target customer base will learn about our store.
• Continuously review our inventory and sales and adjust our inventory levels accordingly.
• Sell products that are of the highest reliability and quality. We must offer as many or more premium products than our competition offers. Offer loss leaders and other promotions that bring customers into the store to buy goods, explore our line of services, and sign up for future events.
• Be an active member of the community.
• Provide in-store classes, demonstrations, and events.

1.3 Mission

NALB Creative Center’s mission is to support and contribute to the community of artists and crafters by offering quality, name brand supplies to accommodate customer needs; by hosting and supporting shows, events, classes and contests; and by promoting the island as an artist’s oasis and destination.

We will strive, constantly, to supply what the consumer is asking for; we will continually review what is available in the marketplace. We will provide new products and services to the areas of need.  We will maintain NALB as a place for artists to gather.

Success will ultimately be measured by our customers choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and selection