Project Consultants

1

• Project Consultants
• Philip Ingling
• Michael Mastro
• Jennifer McWilliams

2
Business Plan Objectives

• Provide a step by step manual to open and run the
  Gloucester County ReStore.
• We will cover the following topics in the
  business plan
• Set-up Process
• Marketing Advertising
• Store Operations
• Store Facilities
• Finance Administration
• Business Strategies
• Human Resources
• Research Development

3
ReStore Mission

• Provide increasing financial contribution to
  Gloucester County HFH to support the
  organizations strategic goal of building new
  homes.
• Expand opportunities to serve a broad base of low
  income homeowners with quality materials in
  Gloucester County.
• Promote preservation and recycling in Gloucester
  County.

4
Set-Up Process

• Time line of processes
• Goals for operation with respect to
• Volunteers
• ReStore will run almost exclusively by volunteers
  at first
• Environment
• Promote reuse and recycling in community
• Long term operation
• Ability to sustain future building projects for
  HFH

5
Marketing Advertising

• Industry with little competition, but no name
  recognition.
• Consumer Needs
• Low prices
• Large selection
• Immediate availability
• Convenient location
• Sense of community
• Target market is customers, donors volunteers.

6
Advertising Strategy

• Cross promote ReStore with all affiliate events
  and current/future advertising.
• Customers, donors, and volunteers need to learn
  the name ReStore and that its associated with
  Habitat for Humanity.
• All advertising must target potential customers,
  donors, and volunteers.
• ReStore needs to gain name recognition.

7
Advertising ReStore Positioning

• Market the cause
• ReStore Low Cost Building Supplies to Help You
  and Your Community
• Positioning of ReStore as an extension of HFH.
  It is not a competitor of Home Depot, but a low
  cost alternative with a social conscious on a
  local level.

8
Advertising Strategy

• Short term
• Advertising must be free and donated by local
  media.
• Ads must target donors, customers, and
  volunteers.
• Co-marketing arrangements with other local
  businesses and prior donors.
• Long term
• Advertising may cost but will be worth it.

9
Advertising Public Relations

• HFH has received nationwide media attention from
  the help they have given in Tsunami and Katrina.
  This is free public relations.
• Use the local media to pitch human interest
  stories.
• Long term Corporate partnerships with local
  retailers is a win-win situation!

10
Marketing Donor Solicitation

• Short term
• Solicit current HFH donors for start up
  inventory.
• Build donor data base and hit the streets.
• Goal commit donors to steady stream of donation.
• Reach out to corporate companies and build
  relationships Lowes, Home Depot, 84 Lumber, etc
• Be an expert in the tax benefits of donation.
• Donators can also choose to donate exclusively to
  building efforts. This is encouraged.

11
Merchandising the ReStore

• Prices should be clearly marked on items.
• Store should be neat and clean.
• All items should be arranged in an appropriate
  manner.
• Train volunteers on customer service skills and
  store policies.

12
ReStore Operations

• Store Operations
• Operations Plans
• Hours of Operations
• Store Appearance
• Signage
• Store Security and Safety
• Pricing, Sales, and Return Policy
• Donations
• Mailings and Correspondence

13
Store Operations

• Store management
• Office operations
• Volunteer coordination
• Floor and counter sales/customer service
• Building materials collection and pick-up
• Warehouse Operations
• Facilities and equipment maintenance

14
Recommendations

• Store Operations
• (ReStore Director January 2006)
• 1. Create an Operations Manual defining all
  operations including the following
• Store management
• Office operations
• Volunteer coordination
• Floor and counter sales/customer service
• Building materials collection and pick-up
• Facilities layout/design
• Warehouse Operations
• Facilities and equipment maintenance

15
Recommendations

• Operations Plans (ReStore Manager April 2006)
• Develop an Operations Manual defining daily
  departmental procedures, materials pick up and
  receiving, and facilities layout/design.
• Develop a Maintenance Manual defining all
  equipment and building maintenance procedures and
  timeframes.
• Hours of Operations (ReStore Manager April
  2006)
• Initial hours of Operation should be 10 a.m. 4
  p.m., Wednesday through Saturday.
• Hours of operation can be changed after first six
  months based upon sales traffic and availability
  of volunteers.
• Major holidays such as Labor Day, Memorial Day,
  and Fourth of July should be emphasized because
  they are major shopping days.

16
Recommendations

• Store Appearance
• (ReStore Manager April 2006)
• Create policies and procedures for daily aisle
  and floor cleanup.
• Enforce floor and product organization.
• Signage
• (ReStore Manager April 2006)
• Obtain all signage through donation for the
  outside of building, all company vehicles, and
  all in-store promotions.
• Make sure that all signage is clear, visible, and
  precise.

17
Recommendations

• Store Security and Safety
• (ReStore Director April 2006)
• Construct detailed opening and closing
  procedures.
• Create an office lock box for company vehicle
  keys.
• Consider yard fencing for all company equipment
  and vehicles.
• Obtain a building security system with panic
  buttons at the register and direct connections
  with the local police and fire companies.
• Implement a buddy system for opening and closing.
• Provide volunteer training in spotting and
  deterring shoplifters.
• Create an accident report template for
  documenting any in-store accidents.
• Obtain and utilize safety signage such as wet
  floor, work area, etc. and provide safety
  training for new volunteers.

18
Recommendations

• Pricing, Sales, Return Policy
• (Restore Manager April 2006)
• Establish clear pricing strategy through internet
  research, retail research, local distributor
  research.
• Create clear policies and procedures for pricing.
• Clearly mark and price all floor items.
• Develop in-store signage clearly defining return
  policies, and holding policies as mentioned
  above.
• Determine which credit cards you will accept
  (Visa and Mastercard recommended).

19
Recommendations

• Donations (ReStore Director March 2006)
• Decide on what to accept in form of donations.
• Create a tri-fold clearly explaining types of
  acceptable donations.
• Identify potential donators through yellow pages,
  web searches, word of mouth, etc.
• Start a donor database (preferably with Microsoft
  Access) to track donations
• Create a donation receipt.
• Create a form letter describing tax benefits of
  donating.
• Mailings and Correspondence (ReStore Manager
  May 2006)
• Develop Thank You Postcard for donators.
• Develop form letter advertising future events,
  sales, and specials.
• Develop form letter advertising ReStore in detail
  for donators and potential customers.

20
ReStore Facilities

• Choosing the right facility
• Facility layout design
• Recommendations

21
Choosing the Right Facility
22
Facility Layout Design

• Needs
• Office Space
• Sales Counter
• Racking
• Receiving Area
• Loading Dock
• Inventory Space
• Aisles
• Restrooms

23
Recommendations

• Choosing the right facility
• (Board of Directors/ReStore Director December
  2005)
• 1. Begin searching for potential locations using
  realtors, word of mouth, Not-for-Profit).
• 2. Modify and utilize the facility rating system
  to compare locations.
• 3. Obtain necessary funding for acquiring
  location (donations, grants, low interest loans).
• 4. Finalize purchase or lease of desired
  location.
• 5. Provide any maintenance or construction
  upgrades/restoration.

24
Recommendations

• Facility layout and design
• (Board of Directors/ReStore Director December
  2005 -
• March 2006)
• 1. Determine office space needed.
• 2. Hand sketch current facility dimensions.
• 3. Input necessary departments (Cabinets,
  flooring, lumber, etc).
• 4. Create rough first draft of design/layout for
  board approval.
• 5. Finalize design/layout based on board
  approval and necessary changes.
• 6. Final design/layout created on AutoCad.

25
Finance and Administration

• Financial and Administration Activities
• Financial Analysis
• Start Up Cost
• Risk Management/Insurance
• Capital Asset Management
• Management Information Systems (MIS)

26
Initial Start Up Costs
27
Budgets and Projections

• Expense Budgets
• Sales Budgets
• By day, month, year
• By department
• By customer type
• By zip code

28
Budgets and Projections

• Three Year Projections

29
Recommendations

• Finance and Administration
• (ReStore Director April 2006)
• 1. Define and document daily, monthly, and long
  term processes
• 2. Provide training on daily drawings from the
  cash register in order to minimize exposure to
  cash
• 3. Create opening and closing procedures to
  minimize risk to personnel and cash
• 4. Review and revise current daily reporting
  tools in order to maximize utilization of
  software benefits
• 5. List and begin obtaining essential start-up
  items

30
Recommendations

• Budgets and Projections
• (ReStore Director December 2005 May 2006)
• 1. Create a detailed monthly and yearly expense
  budget
• 2. Create department based sales budgets
• 3. Identify three year sales projections

31
Recommendations

• Risk Management
• (ReStore Director February 2006)
• 1. Research and obtain a comprehensive
  insurance policy
• 2. Create an accident report template
• 3. Provide volunteer training for safety
  procedures

32
Recommendations

• Management Information Systems (MIS)
• (ReStore Director December 2005 December
  2006)
• 1. First year manually input daily sales and
  operating data
• 2. Implement automated hardware and software for
  accounting and operations reporting
• 3. Research and implement Raisers Edge and
  similar software programs for donator and
  customer database linkage
• 4. Create donation receipts and donator
  correspondence letters

33
Business Strategies

• Continuously take advantage of the opportunities
  in the marketplace.
• Operational Infrastructure in place capable of
  handling growth.
• Maintain business strategies that address
  important issues.

34
Human Resources

• 4 Phases of hiring
• Phase 1 ReStore Director
• ReStore Manager
• Volunteers
• Phase 2 Interns
• Phase 3 Product Procurement Manager
• Materials Supervisor
• Phase 4 Project Manager

35
Human Resources Phase 1

• ALL POSITIONS to be established immediately
• ReStore Director similar to a CEO
• Maintains books and records
• Handles Legal Insurance needs
• Oversees everyday activities of the office
• Strategic planning
• Starting Salary of 43,000 a year

36
Human Resources Phase 1

• ReStore Manager
• Daily management activities
• Design and layout of store
• Day-to-day facilities and operations
• Ensure proper customer/staff relations
• Staff and volunteer recruitment
• Starting salary of 27,000 a year

37
Human Resources Phase 1

• Volunteers
• Cashiers/Sales Associates
• Pick-up and drop-off of materials
• Store security
• Customer relations
• Provided in Appendix III of the Business Plan is
  a more detailed document identifying additional
  volunteer opportunities.
• Unpaid, part-time employees

38
Human Resources Phase 2

• To be established 1 year after opening
• Interns
• Marketing
• Management Information Systems
• Store Management
• Provided in Appendix III of the Business Plan is
  a detailed document identifying the opportunities
  available to interested Interns.
• Recruitment Plan provided
• Unpaid, part-time employees

39
Human Resources Phase 3

• Positions to be established 2 years after opening
• Product Procurement Manager (Salary - 27,000/yr)
• Working relationship with donors
• Ensure availability of materials
• Materials Supervisor (Salary - 27,000/yr)
• Coordinate pick-up/drop-off schedule
• Ensure timely collections of donated materials
• Maintain client relationships

40
Human Resources Phase 4

• Positions to be established 2 years after
  opening
• Project Manager
• Strategic planning
• Feasibility analysis of potential partnerships
• Pursue grant opportunities
• Suggestions on how to hire an experienced Project
  Manager provided in Chapter 7 of the Business
  Plan.

41
Research Development

• Customer Donor Surveys
• Customer Donor Demographics
• Consumer Analysis
• Action Plans
• ReStore Core Processes (re-engineer)
• SWOT Analysis (every 3-4 months)