Sample Business Plan

Sample Business Plan

Your business name
Address
Phone Number

Mission Statement:

(Your business name) pledges to provide high quality machine quilting at reasonable prices.

Business Overview

The Quilting Industry

PRIMEDIA a noted publisher of quilting magazines conducted a survey in 2003. From 2000 to 2003 the number of quilters increased by 15% exceeding 21 million. This is a 50% increase from 1997. Dedicated quilters (those spending over $500 per year) increased spending by 26% to a record 2.15 billion since the 2000 survey. The average age of women in this group is 54 years to 58 years. More recently, in 2024 ChatGTP estimates the growth of quilting since the year 2000 to be as shown in the chart below, with current numbers of quilters estimated to be about 31 million. Quilting is a segment that shows strong growth potential and is an excellent segment to start a business in.

Year | Quilters (in millions)

2000 | ████ (21 Million)
2004 | █████ (24 Million)
2008 | ██████ (27 Million)
2012 | ██████ (27 Million)
2016 | ███████ (28 Million)
2020 | ████████ (30 Million)
2024 | █████████ (31 Million)

With additional people learning the art of quilting each year, the need for quilting services has increased dramatically. And, the business of providing a Longarm Quilting Service is well understood and the pitfalls and strategies for success are easy to access thru Quilting Business Success podcast interviews as well as the Accelerate Program which provides templates and coaching to new business startups.

The longarm quilting machine is used to stitch the 3 layers of a quilt together, consisting of the top, the back, and the batting layer in between. Each year more women discover the physical demands of using their home machines to stitch the layers comprising a quilt. The use of a longarm quilting machine makes sewing the layers together much easier, thanks to a roller system that holds the three layers to be stitched. The machine is moved on a carriage along the length of a track system that runs parallel to the rollers. This reduces the overall physical stress to the operator and dramatically increases the productivity. A quilter can quilt 4-7 quilts per week with the longarm quilting machine.

Local Quilting Needs

It is estimated that during our first year of operation we will quilt 200 quilts for customers. This is expected to grow by 25% per year for the next two years. This growth will be based on new customers and improved reputation as experience and skill level is increase. It is expected that the business will level off at 300 – 350 quilts per year. There are many anecdotes available as to the challenges and rewards of running a longarm quilting business, one strong resource is the podcast “Quilting Business Success” which details the triumphs and struggles of many small business owners who have chosen to run a longarm quilting business.

Meeting Local Quilting Needs

As a business we will post regular contact hours, and will provide pick up and delivery services at area quilt shops. We will stay competitive in price and maintain a reasonable turn-around-time.

In addition we will strive to offer the greatest variety of patterns and options to choose from, ensuring the uniqueness each quilt deserves.

Expanding the Area of Service

In an effort to expand our service area, we will join as many of the area quilt guilds as possible, advertise by posting compelling photos and videos on Facebook, Instagram, and other social media platforms as they become relevant, and offer to assist the area quilt guilds and or shops with charity quilts. Our goal is to cover the following counties within (3 Years): (list counties)

Estimated Revenue
The income is based on the full time operation of one longarm quilting machine:
• The average charge per quilt will be $147.20 based on $0.02 per square inch and surface area of an 80 X 92 quilt (the dimensions given represent a queen size quilt).
• We anticipate completing (200) quilts the first year at gross revenue of $29,440.
• Expenses are estimated at $10 per quilt, including thread, electrical, and maintenance; or $2,000 per year
• Net income in the first year is estimated to be $27,440.

Anticipated Growth
Our growth strategy plans for a 25% growth each year or:
• $34,300 Net income in the second year.
• $42,875 Net income in the third year.

Cost Analysis

Startup Costs
• Gammill Quilting Machine – $ (Machine Cost Here) (See attached Quote or Invoice)
• Patterns, Thread and Batting – $(1,000)
• Total Costs (Total Costs Here)

Here’s a step-by-step guide for conducting a competitive market analysis (CMA) for your longarm quilting service using phone calls:

Step 1: Identify Competitors

Find Competitor Listings:

  • Search local quilt shops and ask if they partner with or recommend quilting services.
  • Look for quilting guilds in your area that may have longarm quilters as members or advertisers.
  • Search online via Google, Facebook Groups, etc., for quilting service providers in your area.
  • Compile a list of names, phone numbers, and any other details (like their website) from these sources.

Step 2: Prepare for Calls

Create a Script for Consistency:

Use a polite and professional tone. Introduce yourself briefly, but do not mention that you are a competitor. Act as a customer inquiring about services.

The two key questions you’ll ask:

  • “What is the charge for a basic edge-to-edge quilting service on a quilt that measures 88 x 112 inches (or whatever size you choose to use for this project)?”
  • “How long is your turnaround time? When would I get my quilt back?”

Example Script:

“Hello! I’m interested in having a quilt quilted and I’m wondering if you could help me with a couple of questions. First, how much would you charge for basic quilting on a quilt measuring 88 by 112 inches? Also, how long would it take to get my quilt back if I brought it in?”

Be Ready to Record the Data:

Create a spreadsheet or simple chart with the following columns:

  • Business Name or Personal Name
  • Phone Number
  • Price per Square Inch (if quoted)
  • Total Price for 88 x 112 (or chosen size)
  • Turnaround Time
  • Additional Comments (e.g., extra services, discounts)

Step 3: Conduct the Calls

Start Making Phone Calls:

  • Call each quilting service on your list.
  • Be polite, thank them for their time, and record their answers immediately in your spreadsheet.
  • Focus only on the two questions (price and turnaround time) to keep the interaction simple and efficient.

Handle Unexpected Responses:

  • If they don’t offer edge-to-edge quilting or don’t have the specific size you’re asking for, ask for the closest price (e.g., queen size).
  • Note any extra services or fees (e.g., thread costs, batting).

Step 4: Tabulate the Results

Calculate Prices:

  • Many quilting services charge by square inches. For an 88 x 112 inch quilt, total square inches = 9,856 sq. inches.
  • Example: If they charge $0.02 per sq. inch, the price is $0.02 x 9,856 = $197.12.
  • Enter the final price and turnaround time into your spreadsheet.

Summarize Turnaround Times:

  • Record the estimated completion time, specifying whether it’s in business days or calendar days.
  • Note any rush services or faster delivery options.

Step 5: Analyze the Data

Compare Pricing:

  • Average Price: Calculate the average cost for the edge-to-edge service.
  • Pricing Tiers: Identify if there’s a general range (e.g., $100–$200) or any outliers charging more or less.
  • Square Inch Pricing: Compare prices per square inch in a separate column.

Compare Turnaround Times:

  • Average Turnaround Time: Calculate the average time quoted for quilt completion.
  • Note which businesses offer faster service and which ones have longer wait times.
  • Identify any common trends (e.g., most offer 2–4 weeks turnaround).

Look for Additional Insights:

  • Extra Services: Note if competitors offer extras like binding, custom quilting, or discounts for frequent customers.
  • Customer Service: Consider how friendly or helpful the business was on the phone. This is an indicator of service quality.

Step 6: Report Your Findings

Create a Summary of Results:

Present the findings in a table with:

  • Competitor Name
  • Pricing (total and per square inch)
  • Turnaround Time
  • Additional Services or Notes
Competitors Table

Identify Your Market Positioning:

  • Are your prices competitive, or should you adjust?
  • Are you offering faster, slower, or comparable turnaround times?
  • Is there an opportunity to offer additional services your competitors don’t?

Set a Pricing and Service Strategy:

  • How will your pricing compare? Will you position yourself as a budget, mid-range, or premium service?
  • What turnaround times will you offer? Will you compete on speed or focus more on quality?
  • Are there added benefits or services you can promote to differentiate yourself?

Step 7: Adjust Your Business Plan

Update your business plan based on these findings, refining your pricing strategy and operational plan to reflect the competitive landscape.

By following these steps, you’ll have a clear understanding of where your business stands in the local quilting market and how you can strategically position yourself for success.