Do you want to start a helmet manufacturing company? If YES, here is a detailed sample helmet manufacturing business plan template & FREE feasibility report.
If you are an investor and you are looking towards starting a business in the manufacturing industry, one of your best bets is to start a helmet manufacturing company. There is indeed a huge global market for different types of helmets.
You can start this type of business by manufacturing customized helmets for your customer base and then grow the business to start manufacturing different types of helmets for a wide range of customers within and outside the United States of America. The sample helmet manufacturing company business plan template below will guide you on how to draft yours with little or no stress.
Table of Content
- 1 A Sample Helmet Manufacturing Business Plan Template
- 2 Industry Overview
- 3 Executive Summary
- 4 Our Product Offering
- 5 Our Mission and Vision Statement
- 6 Job Roles and Responsibilities
- 7 SWOT Analysis
- 8 MARKET ANALYSIS
- 9 Our Target Market
- 10 SALES AND MARKETING STRATEGY
- 11 Sales Forecast
- 12 Publicity and Advertising Strategy
- 13 Startup Expenditure (Budget)
- 14 Sustainability and Expansion Strategy
A Sample Helmet Manufacturing Business Plan Template
A helmet is a form of protective gear worn to protect the head. More specifically, a helmet complements the skull in protecting the human brain. Ceremonial or symbolic helmets (e.g. UK policeman’s helmet) without protective function are sometimes worn. Soldiers wear helmets, often made from lightweight plastic materials.
Helmet manufacturing business is a niche idea in the body armor manufacturing industry and players in this industry manufacture a variety of body armor (personal armor) for use in law enforcement and military operations. Products include tactical body armor, concealable armor, plates, shields, helmets and padding.
Research conducted by IBISWORLD shows that the Body Armor Manufacturing industry, which produces protective equipment such as hard and soft body armor, shields and headwear, took a major hit over the five years to 2018. The industry is highly reliant on demand from the US military, which receives its funding from the federal government.
Over the past five years, industry revenue has fallen rapidly after reaching unprecedented levels earlier in the decade. In particular, reduced US combat operations and the overall decline in defense spending led to lower US military spending on armor. Therefore, as manufacturing contracts tapered off, industry revenue plunged at an expected annualized rate of 9.9 percent to $530.6 million, including a drop of 16.9 percent in 2018.
Statistics has it that in the United States of America alone, the Body Armor Manufacturing industry generates over $531 million annually from more than 57 registered and licensed body armor manufacturing companies (helmets manufacturing companies inclusive). The industry is responsible for the employment of over 4,333 people. Experts project the Body Armor Manufacturing industry to grow at a -9.9 percent annual rate.
The establishment in this industry that has a dominant market share in the United States of America are; Point Blank Enterprises Inc., Safariland LLC and Ceradyne Inc. The Body Armor Manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business.
Tim Armstrong® Helmet Manufacturing Company, Inc. is a U.S based helmet manufacturing company that will be located in Santa Fe – New Mexico. We have been able to lease a facility that is big enough (a 25 thousand square foot facility) to fit into the kind of standard helmet manufacturing company that we propose launching.
Tim Armstrong® Helmet Manufacturing Company, Inc. will manufacture a wide range of helmets. We will be involved in manufacturing of helmets that are used for recreational activities and sports (e.g. horse racing, American football, ice hockey, cricket, baseball, camogie, hurling and rock climbing); dangerous work activities (e.g. construction, mining, riot police, fighter pilots); and transportation (e.g. motorcycle and bicycle helmets) et al.
We are set to service a wide range of clientele not just in the United States of America, but also in all parts of the world.
We know that there are several helmet manufacturing companies in the United States of America, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.
Tim Armstrong® Helmet Manufacturing Company, Inc. will ensure that all the helmets that leaves our factory are of the highest quality. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base may grow to.
Tim Armstrong® Helmet Manufacturing Company, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.
Tim Armstrong® Helmet Manufacturing Company, Inc. is owned by Tim Armstrong. Mr. Armstrong has a Diploma in Production Technology and a B.Eng. in Production Engineering, with over 25 years’ experience in the Body Armor Manufacturing industry, working for some of the leading brands in the United States.
Our Product Offering
Tim Armstrong® Helmet Manufacturing Company, Inc. is in the Body Armor Manufacturing industry to manufacture a wide range of helmets. We are set to service a wide range of clientele not just in the United States of America, but also all parts of the world and of course to make profits, which is why we will ensure we give our clients options.
Our product offerings are listed below;
- Helmets used for sports such as horse racing, American football, ice hockey, cricket, baseball, camogie, hurling and rock climbing
- Helmets used for dangerous work activities such as construction, mining, riot police, and fighter pilots
- Helmets used for transportation such as motorcycle and bicycle helmets
Our Mission and Vision Statement
- Our vision is to become the leading brand when it comes to helmets manufacturing not just in New Mexico but all through the United States of America.
- Our mission is to establish a world – class helmet manufacturing company whose products will not only be retailed in the United States of America, but also be exported to other countries of the world.
Our Business Structure
Our intention of starting a helmet manufacturing company is to build a standard helmet manufacturing company in Santa Fe – New Mexico. We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Production Manager
- Human Resources and Admin Manager
- Sales and Marketing Manager
- Helmet Designers
- Customer Services Executive
Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
- Responsible for managing the daily activities in the helmets manufacturing factory
- Ensures that proper records of helmets are kept and warehouse does not run out of finished products
- Ensures that the factory is in tip top shape and easy to locate
- Interfaces with third – party suppliers (vendors) of raw materials
- Controls helmet distribution and supply inventory
- Supervises the workforce in the helmets manufacturing factory.
- Responsible for the purchase of raw material
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for designing and manufacturing of helmets used for sports
- Responsible for designing and manufacturing of helmets used for dangerous work activities such as construction, mining, riot police, and fighter pilots
- Responsible for designing and manufacturing of helmets used for transportation such as motorcycle and bicycle helmets
- Handle any other duty as assigned by the production manager.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
- Receives Visitors / clients on behalf of the organization
- Receives parcels / documents for the company
- Handles enquiries via e-mail and phone calls for the organization
- Distributes mails in the organization
- Handles any other duties as assigned by the line manager
Tim Armstrong® Helmet Manufacturing Company, Inc. is in business to become one of the leading helmets manufacturing companies in the United States of America and we are fully aware that it will take the right business concept, management and organization – structure to achieve our goal.
We are quite aware that there are several large and small scale helmet manufacturing companies all over the United States of America which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Tim Armstrong® Helmet Manufacturing Company, Inc. employed the services of an expert HR and Business Analyst with bias in the manufacturing industry to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Tim Armstrong® Helmet Manufacturing Company, Inc.;
Our core strength lies in the high quality of our finished helmet products, the power of our team and the state of the art helmet manufacturing factory that we own. We have a team of highly trained and experienced helmets designers that can produce top notch helmet. We are well positioned in the heart of Santa Fe – New Mexico and we know we will attract loads of clients from the first day we open our helmet manufacturing company for business.
A major weakness that may count against us is the fact that we are a new helmet manufacturing company and we don’t have the financial capacity to compete with multi – million dollar helmets manufacturing companies when it comes to manufacturing at rock bottom prices and leveraging on economies of scales. So also, we may not have enough cash reserve to promote our helmet manufacturing company the way we would want to do.
The fact that we are going to be operating our helmet manufacturing company in Santa Fe – New Mexico provides us with unlimited opportunities to sell our helmets to a large number of individuals and corporate organizations.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our showroom; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new helmet manufacturing company in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.
- Market Trends
One common trend in the Body Armor Manufacturing industry is that the demand for its product is driven by professional ethics, safety needs and of course consumer disposable income. The profitability of individual helmets manufacturing companies depends on their ability to design and market helmet models that effectively target consumer tastes and preferences.
Large helmet companies have economies of scale in distribution and marketing and small scale helmet companies can compete successfully by crafting customized helmet based on their client’s preference.
With recent development, there will be influx of new consumers and this will put pressure on product developers to meet their unfamiliar preferences and needs. Developed economies placing their products in emerging markets will also have to adjust their pricing strategies to compete with local low-price manufacturers.
Lastly, as part of marketing strategies, helmet manufacturing companies now ensure that they have showrooms at different locations where they display their helmets. It is even cheaper to purchase directly from these showrooms established by helmet manufacturing companies as against purchasing from helmet retail cum body armor stores.
Our Target Market
People make use of helmets for ethical purposes and of course safety reasons hence there are loads of people who make use of helmet. In view of that, we have positioned our helmet manufacturing company to service the clientele in the United States of America and other parts of the world.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We in the Body Armor Manufacturing industry to manufacture a wide range of helmet for the following people;
- People that engage in sports such as horse racing, American football, ice hockey, cricket, baseball, camogie, hurling and rock climbing
- Workers who are engaged in dangerous work activities such as construction, mining, riot police, and fighter pilots
Our Competitive Advantage
A close study of the Body Armor Manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative with your designs and market approach, customer centric and proactive if you must survive in this industry.
We are aware of the stiff competition and we are well prepared to compete favorably with other leading helmet manufacturing companies in the United States.
Tim Armstrong® Helmet Manufacturing Company, Inc. is launching a standard helmet manufacturing company that will indeed become the preferred choice of residents of Santa Fe – New Mexico and every other location where our products will be distributed and retailed.
Our helmet manufacturing company is located in an ideal property highly suitable for the kind of manufacturing company that we want to run. We have enough parking space that can accommodate well over 10 cars/trucks per time.
One thing is certain, we can boast of having unlimited access to the latest and most efficient technology and techniques. Our excellent customer service culture, showrooms, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
SALES AND MARKETING STRATEGY
- Sources of Income
Tim Armstrong® Helmet Manufacturing Company, Inc. is in business to manufacture and retail a wide range of helmet in the United States of America. We are in the Body Armor Manufacturing industry to maximize profits and we are going to go ensure that we achieve our business goals and objectives.
Tim Armstrong® Helmet Manufacturing Company, Inc. will generate income by selling the following products;
- Helmets used for sports such as horse racing, American football, ice hockey, cricket, baseball, camogie, hurling and rock climbing
- Helmets used for dangerous work activities such as construction, mining, riot police, and fighter pilots
- Helmets used for transportation such as motorcycle and bicycle helmets
One thing is certain when it comes to helmet manufacturing business, if you are into the manufacturing or various types of helmets, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in the United States of America and of course the rest of the world and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
Below are the sales projection for Tim Armstrong® Helmet Manufacturing Company, Inc., it is based on the location of our business and other factors as it relates to helmet manufacturing startups in the United States;
- First Fiscal Year (FY1): $450,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.5 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing same products with their target market in same locations where we have our target market. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Tim Armstrong® Helmet Manufacturing Company, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become one of the preferred brand for consumers not only in Santa Fe – New Mexico, but also throughout the United States.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want.
We hired experts who have good understanding of the Body Armor Manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in the United States of America.
In summary, Tim Armstrong® Helmet Manufacturing Company, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our helmet manufacturing company by sending introductory letters alongside our brochure to the military, sports club, construction and engineering companies, retailers and merchants and key stake holders in Santa Fe – New Mexico and other parts of the United States
- Ensure that we manufacture a wide range of helmet
- Make use of attractive hand bills to create awareness and also to give direction to our helmets showrooms
- Position our signage/flexi banners at strategic places around Santa Fe – New Mexico
- Create a loyalty plan that will enable us reward our regular customers
- List our business and products on yellow pages’ ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
Publicity and Advertising Strategy
Despite the fact that our helmet manufacturing company and showroom is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our helmet manufacturing company.
Tim Armstrong® Helmet Manufacturing Company, Inc. has a long term plan of opening our showrooms in various locations all around Santa Fe New Mexico and other key cities in the United State which is why we will deliberately build our brand to be well accepted in Santa Fe – New Mexico before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Tim Armstrong® Helmet Manufacturing Company, Inc.;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our helmet brand.
- Ensure that our we position our banners and billboards in strategic positions all around Santa Fe – New Mexico
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our helmet manufacturing company and showroom in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and ensure that all our staff members wear our branded shirt or cap at regular intervals.
Our Pricing Strategy
We are aware of the pricing trend in the Body Armor Manufacturing industry which is why we have decided to produce various qualities and categories of helmets.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various helmets brands in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.
- Payment Options
The payment policy adopted by Tim Armstrong® Helmet Manufacturing Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Tim Armstrong® Helmet Manufacturing Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for helmet purchase without any stress on their part.
Startup Expenditure (Budget)
Starting a standard helmet company is capital intensive because the amount required in setting up the business. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing the needed equipment.
Aside from that, you are also expected to purchase distribution trucks, raw materials, pay your employees and utility bills. These are the key areas where we will spend our startup capital on;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Tim Armstrong® Helmet Manufacturing Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring Business Consultant – $2,500.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
- The total cost for long – term leasing of a standard manufacturing plants, warehouse and showroom – $250,000
- The total cost for remodeling the warehouse and showroom – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The total cost for Start-up inventory (purchase of helmet making tools and equipment and the purchase of footwear making raw materials inclusive) – $250,000
- The total cost for counter area equipment – $9,500
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The total cost for the purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The total cost of launching a Website: $600
- Miscellaneous: $10,000
We would need an estimate of seven hundred and fifty thousand dollars ($750,000) to successfully set up our helmet manufacturing business in Santa Fe – New Mexico.
Generating Funding/Startup Capital for Tim Armstrong® Helmet Manufacturing Company, Inc.
Tim Armstrong® Helmet Manufacturing Company, Inc. is solely owned and financed by Tim Armstrong. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Tim Armstrong® Helmet Manufacturing Company, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to manufacture durable and quality helmets and to retail our wide range of quality helmets a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Tim Armstrong® Helmet Manufacturing Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility (helmet manufacturing factory and showroom): In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of helmet making machines and equipment: Completed
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of types of helmet that will be manufacturing: Completed
- Establishing business relationship with vendors – supplier of helmet making raw materials, key stakeholders and suppliers of helmets: In Progress
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