Do you want to start a pottery business? Well, this business is quite a perfect choice if you possess an artistic mind or if you can hire experts in this domain. The pottery business can be run in two forms. You can choose to just provide manufacturing services and sell pottery products. And you can choose to also allow people to come to your studio and enjoy doing pottery under your guidance.
In terms of yielding profits, both aspects can serve the purpose. However, what you should choose to offer from the above-mentioned options entirely depends on your resources and management skills.
In either case, the first step would be to create a pottery painting studio business plan. If you don’t know how to develop an accurate business plan for pottery studio, you can take help from here. In this sample business plan pottery studio we are providing the business plan of Ceramic Land, a startup that decided to offer both types of services to its customers.
Start your Business Plan Now Start My Business PlanCeramic Land will be a registered and licensed pottery studio business based in Austin. The business aims at providing pottery tools and space for people who may want to practice their art. Besides, the business also sells some pottery items that are in-demand in the vicinity.
To manage a pottery studio, you will need a skilled and responsible team along with a lot of space. Moreover, you will need to make arrangements for preparing clay, heating the ceramics, and drying the sample.
To make sure that all aspects of your business are taken care of, you should develop a business plan for pottery studio. In your business plan ceramic studio, you should include the human and financial resources you’ll need to manage your business.
If you don’t know how to manage a pottery studio you can learn a lot from this sample business plan for custom pottery studio.
Ceramic Land identifies the following group of people as its target customers:
Our target is to become the most visited and successful pottery studio in the whole of Austin within two years of our launch. We also aim at earning a profitability margin of $28k per month by the end of the third year of our launch.
Emma Markel will be the owner of Ceramic Land. Emma is a graduate of Fine Arts. She is a talented woman who has 8-year-experience of working as a pottery instructor. She has got an artistic mind and is best-suited to efficiently run a pottery studio.
Emma has always been interested in ceramic designs. When she thought of starting her own business, she couldn’t think of a more suitable option than opening a pottery studio. Through entering this venture she will be able to make profits while also serving society by engaging them in positive activity.
Step1: Create Ceramic Painting Studio Business Plan
Firstly, you will have to study some business plans ceramic studios to identify the important components of custom pottery painting studio business plan. You can take help from this pottery studio business plan example to learn how to make an accurate business plan.
Step2: Define your Brand
The next step is to establish your workplace and workforce. This will include major steps like setting up your pottery studio and starting the recruitment process.
After this, you will be able to brand your company’s values and the talent of your employees. So that people can understand how you stand out in the market competition.
Step3: Establish a Web Presence
The next you have to do is making a user-friendly website to help your target customers get an insight into what you do. Complying with the newer trends, your website should also be able to process online transactions and bookings.
Step4: Promote & Market
The last thing before launching your company is to develop your advertisement plan. The advertisement or sales strategy must be created with extreme consideration about the mindset of your target customers. So that it can influence the interests of your target people.
The costs involved in all of the above-mentioned steps are listed below:
| Start-up Expenses | |
| Legal | $242,000 |
| Consultants | $0 |
| Insurance | $27,000 |
| Rent | $26,000 |
| Research and Development | $27,000 |
| Expensed Equipment | $49,000 |
| Signs | $4,000 |
| TOTAL START-UP EXPENSES | $375,000 |
| Start-up Assets | $320,000 |
| Cash Required | $345,000 |
| Start-up Inventory | $51,000 |
| Other Current Assets | $256,000 |
| Long-term Assets | $280,000 |
| TOTAL ASSETS | $1,252,000 |
| Total Requirements | $1,627,000 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $375,000 |
| Start-up Assets to Fund | $1,252,000 |
| TOTAL FUNDING REQUIRED | $1,627,000 |
| Assets | |
| Non-cash Assets from Start-up | $1,623,000 |
| Cash Requirements from Start-up | $358,000 |
| Additional Cash Raised | $53,000 |
| Cash Balance on Starting Date | $30,100 |
| TOTAL ASSETS | $2,064,100 |
| Liabilities and Capital | |
| Liabilities | $30,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $37,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $67,000 |
| Capital | |
| Planned Investment | $1,627,000 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,627,000 |
| Loss at Start-up (Start-up Expenses) | $370,100 |
| TOTAL CAPITAL | $1,997,100 |
| TOTAL CAPITAL AND LIABILITIES | $2,064,100 |
| Total Funding | $1,627,000 |
Before starting a pottery painting business you should decide which services you’ll offer to your customers. Your services and the requirements to conduct those services must be clearly stated in your business plan for custom pottery studio. So that you can have a systematic structure to follow.
Before starting a pottery studio it is essential to carry out a detailed marketing analysis. The marketing analysis studies your target marketplace to identify the competition and the groups of your target customers. This will eventually guide you in setting your pricing strategy. Moreover, this will also assist you in estimating your monthly and yearly sales and thus profits.
In this ceramic art studio business plan on how to start a pottery studio we’re providing the marketing analysis of Ceramic Land. Keep in mind that the market trends and analytics we’ll be providing are general. It is recommended for you to also study the market ups and downs specific to your service area before entering this venture.
These days, pottery studios are high in demand due to the valuable products they can produce. According to IBISWorld, the current market size of the ceramics manufacturing business is $2.4 billion in the United States. The business has seen a growth rate of 0.9% during the last five years i.e. from 2016 to 2021. Moreover, the same source has predicted a 3.1% growth in this business during this year i.e. 2021.
All the above-mentioned stats are highly satisfactory and ensure that it is the right for setting up pottery studio.
Ceramic Land identifies the following groups of people as its target customers.
Our major customers will be young people. They are expected to purchase ceramic products from us. Moreover, they are also expected to make the most of our trainees of pottery classes.
Our second target group will comprise senior citizens. Elderly people always look forward to positive activities that also require some physical effort. Therefore, we believe them to come to us for learning or practicing pottery.
Any questions? Get in TouchOur third category includes children and teens. Teens usually tend to do things for fun. Therefore, they are expected to visit us mostly to learn and enjoy doing pottery.
The stores that sell ceramic decoration pieces will also be our target customers. Due to their work nature, this group is expected to purchase in bulk from us.
Lastly, the stores that sell ceramic cutlery will also be our target customers. They are expected to make big purchases from us.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Young & Adults | 27% | 34,000 | 36,000 | 37,000 | 39,000 | 40,000 | 10.00% |
| Senior Citizens | 20% | 22,000 | 24,000 | 25,000 | 26,000 | 28,000 | 10.00% |
| Children & Teens | 9% | 6,000 | 7,000 | 9,000 | 10,000 | 11,000 | 10.00% |
| Home Decoration Stores | 24% | 25,000 | 27,000 | 29,000 | 31,000 | 33,000 | 10.00% |
| Ceramic Cutlery Stores | 20% | 22,000 | 25,000 | 27,000 | 29,000 | 31,000 | 11.00% |
| Total | 100% | 109,000 | 119,000 | 127,000 | 135,000 | 143,000 | 10% |
Great service. Good turnaround time and quality work. Thanks!
∙ Marc JacobsOur prices are a little higher than our competitors. It is because we’re providing many additional services and perks as compared to our competitors. Our competitive advantages, through which we will be able to attract more customers despite the high prices, will be listed in detail in the upcoming sections.
After you have explored every aspect regarding how to create pottery studio business plan, you should start developing your marketing business strategy. Your ceramic painting studio marketing plan should explain how you are better than your competitors. Moreover, it should also cover your advertisement policies.
Ceramic Land will come up with the following competitive advantages:
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Hand Thrown Stoneware Pottery Classes | 44,000 | 46,640 | 49,438 |
| Hand Thrown Earthenware Pottery Classes | 40,000 | 42,400 | 44,944 |
| Manufacturing Ceramics Cutlery | 31,000 | 32,860 | 34,832 |
| Manufacturing Ceramics Decoration Pieces | 29,000 | 30,740 | 32,584 |
| TOTAL UNIT SALES | 144,000 | 152,640 | 161,798 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Hand Thrown Stoneware Pottery Classes | $48.00 | $55.68 | $64.59 |
| Hand Thrown Earthenware Pottery Classes | $48.00 | $55.68 | $64.59 |
| Manufacturing Ceramics Cutlery | $54.00 | $62.64 | $72.66 |
| Manufacturing Ceramics Decoration Pieces | $52.00 | $60.32 | $69.97 |
| Sales | |||
| Hand Thrown Stoneware Pottery Classes | $2,112,000.00 | $2,596,915.20 | $3,193,166.93 |
| Hand Thrown Earthenware Pottery Classes | $1,920,000.00 | $2,360,832.00 | $2,902,879.03 |
| Manufacturing Ceramics Cutlery | $1,674,000.00 | $2,058,350.40 | $2,530,947.65 |
| Manufacturing Ceramics Decoration Pieces | $1,508,000.00 | $1,854,236.80 | $2,279,969.57 |
| TOTAL SALES | $7,214,000.00 | $8,870,334.40 | $10,906,963.18 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Hand Thrown Stoneware Pottery Classes | $45.00 | $51.00 | $59.00 |
| Hand Thrown Earthenware Pottery Classes | $45.00 | $51.00 | $59.00 |
| Manufacturing Ceramics Cutlery | $52.00 | $59.00 | $68.00 |
| Manufacturing Ceramics Decoration Pieces | $49.00 | $57.00 | $65.00 |
| Direct Cost of Sales | |||
| Hand Thrown Stoneware Pottery Classes | $1,980,000.00 | $2,378,640.00 | $2,916,865.60 |
| Hand Thrown Earthenware Pottery Classes | $1,800,000.00 | $2,162,400.00 | $2,651,696.00 |
| Manufacturing Ceramics Cutlery | $1,612,000.00 | $1,938,740.00 | $2,368,548.80 |
| Manufacturing Ceramics Decoration Pieces | $1,421,000.00 | $1,752,180.00 | $2,117,986.00 |
| Subtotal Direct Cost of Sales | $6,813,000.00 | $8,231,960.00 | $10,055,096.40 |
Your employees’ behaviors and performance hugely impact the success of your business. To make sure that all of your employees are well-trained and competent, you should make a personnel plan. Your personnel plan must suggest on which basis and pay scale you will be hiring your workers. And through which criteria, you will be judging their performance from time to time.
For your reference, we’re providing the personnel plan of Ceramic Land in this sample business plan for pottery studio.
Emma will hire the following people to run her business:
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager | $14,000 | $15,400 | $16,940 |
| Ceramic Artists | $72,000 | $79,200 | $87,120 |
| Pottery Instructors | $58,000 | $63,800 | $70,180 |
| Website & App Developer | $8,200 | $9,020 | $9,922 |
| Accountant | $9,000 | $9,900 | $10,890 |
| Sales Executive | $8,500 | $9,350 | $10,285 |
| General Assistants | $15,000 | $16,500 | $18,150 |
| Receptionist/ Call Operator | $7,000 | $7,700 | $8,470 |
| Total Salaries | $191,700 | $210,870 | $231,957 |
To make sure that your financial flow is the same as you wanted, you need to prepare a financial plan. A financial plan analyzes your expenses, fixed and variable costs, and your profitability goals. After an accurate analysis, the financial plan suggests a safe trajectory for your business. For example, you can learn how much to put in reserve to cater to any financial risks. Moreover, you can get an idea of how much money is safe to invest at a specific time.
As a financial plan is an extremely important component of a business, it must be developed by a professional financial expert. To give you an idea of how a perfect financial plan should look like, we’re providing the financial plan of Ceramic Land in this pottery studio business plan example.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.17% | 8.23% | 8.26% |
| Long-term Interest Rate | 8.28% | 8.35% | 8.41% |
| Tax Rate | 23.09% | 23.34% | 23.88% |
| Other | 0 | 0 | 0 |
| Break-Even Analysis | |
| Monthly Units Break-even | 5341 |
| Monthly Revenue Break-even | $133,900 |
| Assumptions: | |
| Average Per-Unit Revenue | $235.00 |
| Average Per-Unit Variable Cost | $0.63 |
| Estimated Monthly Fixed Cost | $166,400 |
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $7,214,000 | $8,870,334 | $10,906,963 |
| Direct Cost of Sales | $6,813,000 | $8,231,960 | $10,055,096 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $6,813,000 | $8,231,960 | $10,055,096 |
| Gross Margin | $401,000 | $638,374 | $851,867 |
| Gross Margin % | 5.56% | 7.20% | 7.81% |
| Expenses | |||
| Payroll | $191,700 | $210,870 | $231,957 |
| Sales and Marketing and Other Expenses | $129,000 | $130,000 | $132,000 |
| Depreciation | $2,200 | $2,245 | $2,310 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,500 | $2,600 | $2,700 |
| Insurance | $1,900 | $2,000 | $2,100 |
| Rent | $29,000 | $30,000 | $31,000 |
| Payroll Taxes | $26,000 | $27,000 | $28,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $382,300 | $404,715 | $430,067 |
| Profit Before Interest and Taxes | $18,700 | $233,659 | $421,800 |
| EBITDA | $18,700 | $233,659 | $421,800 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $3,740 | $46,732 | $84,360 |
| Net Profit | $14,960 | $186,928 | $337,440 |
| Net Profit/Sales | 0.21% | 2.11% | 3.09% |
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $49,000 | $52,920 | $57,154 |
| Cash from Receivables | $20,000 | $21,600 | $23,328 |
| SUBTOTAL CASH FROM OPERATIONS | $69,000 | $75,210 | $81,227 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $70,000 | $76,000 | $82,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $31,000 | $32,000 | $33,000 |
| Bill Payments | $14,000 | $15,000 | $16,000 |
| SUBTOTAL SPENT ON OPERATIONS | $45,000 | $47,000 | $49,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $45,000 | $48,600 | $52,488 |
| Net Cash Flow | $14,000 | $15,000 | $16,300 |
| Cash Balance | $23,000 | $24,000 | $25,000 |
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $259,000 | $290,080 | $319,088 |
| Accounts Receivable | $24,400 | $27,328 | $30,717 |
| Inventory | $4,100 | $4,592 | $5,143 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $273,000 | $305,760 | $343,674 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $18,000 | $20,160 | $22,680 |
| TOTAL LONG-TERM ASSETS | $23,900 | $26,768 | $30,114 |
| TOTAL ASSETS | $284,000 | $318,080 | $357,840 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $19,800 | $22,176 | $24,926 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $17,200 | $19,264 | $21,653 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,500 | $17,360 | $19,513 |
| Paid-in Capital | $29,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $191,000 | $208,190 | $229,009 |
| TOTAL CAPITAL | $274,000 | $298,660 | $328,526 |
| TOTAL LIABILITIES AND CAPITAL | $289,500 | $318,080 | $357,840 |
| Net Worth | $290,100 | $316,209 | $347,830 |
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.31% | 8.10% | 8.97% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.25% | 10.25% | 11.36% | 9.80% |
| Inventory | 5.48% | 6.07% | 6.73% | 9.90% |
| Other Current Assets | 2.24% | 2.48% | 2.75% | 2.40% |
| Total Current Assets | 150.10% | 151.80% | 152.00% | 158.00% |
| Long-term Assets | 11.42% | 11.45% | 12.00% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.85% | 4.89% | 4.93% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.74% | 7.80% | 7.87% | 7.38% |
| NET WORTH | 100.56% | 101.36% | 102.30% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 95.24% | 97.81% | 100.55% | 99.00% |
| Selling, General & Administrative Expenses | 95.70% | 98.28% | 101.04% | 97.80% |
| Advertising Expenses | 1.62% | 1.66% | 1.71% | 1.40% |
| Profit Before Interest and Taxes | 40.92% | 42.02% | 43.20% | 33.90% |
| Main Ratios | ||||
| Current | 33 | 34 | 35 | 32 |
| Quick | 32 | 33.4 | 34.235 | 33 |
| Total Debt to Total Assets | 0.17% | 0.17% | 0.16% | 0.40% |
| Pre-tax Return on Net Worth | 73.00% | 73.70% | 74.20% | 75.00% |
| Pre-tax Return on Assets | 95.80% | 100.59% | 105.62% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.81% | 34.86% | 35.94% | N.A. |
| Return on Equity | 55.55% | 57.27% | 59.05% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.7 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.6 | 34.23 | 35 | N.A. |
| Accounts Payable Turnover | 15.9 | 16.1 | 16.2 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.4 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.03 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.84 | 0.86 | 0.87 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 26.8 | 28.1 | 28.7 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.3 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
