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Jigsaw Puzzle Business Plan [Sample Template]

A jigsaw puzzle business is a company or venture that specializes in creating, manufacturing, and selling jigsaw puzzles. Jigsaw puzzles are popular recreational and educational activities enjoyed by people of all ages.

The business involves producing puzzles with various images, designs, and difficulty levels, catering to different target markets. The jigsaw puzzle business is generally considered to be relatively recession-proof and can experience surges in demand during times when people are spending more time at home.

As a result, it can be an appealing venture for entrepreneurs with a passion for puzzles and the ability to create engaging and diverse puzzle offerings.

Steps on How to Write a Jigsaw Puzzle Business Plan

  1. Executive Summary

Rex Smith® Jigsaw Puzzle Company, Inc. is a leading manufacturer and distributor of high-quality jigsaw puzzles based in Detroit, Michigan. Our company has a rich history of creating engaging and innovative puzzles that delight customers of all ages.

With a team of talented designers, state-of-the-art manufacturing facilities, and a commitment to excellence, Rex Smith® has become a trusted name in the puzzle industry.

Rex Smith® Jigsaw Puzzle Company, Inc. collaborates with renowned artists and photographers to curate an exclusive collection of puzzle images, giving our customers a vast selection of engaging options. Our puzzles are crafted using eco-friendly, durable materials to ensure longevity and superior tactile experiences.

In addition to our standard puzzles, we offer a personalized puzzle service, allowing customers to create cherished keepsakes from their own photos or artwork. We recognize the educational benefits of puzzles and have developed a series of puzzles designed to teach various subjects, making them ideal for classrooms and homeschooling.

  1. Company Profile

a. Our Products and Services

At Rex Smith®, we offer a diverse range of jigsaw puzzles that cater to various interests and skill levels. Our collection includes puzzles featuring stunning landscapes, famous landmarks, captivating artworks, licensed characters, and educational themes.

We take pride in the attention to detail put into each puzzle, ensuring a rewarding and enjoyable experience for puzzle enthusiasts.

b. Nature of the Business

Our Rex Smith® Jigsaw Puzzle Company, Inc. will operate with both the business-to-consumer business model and business-to-business model for retailers and distributors.

c. The Industry

Rex Smith® Jigsaw Puzzle Company, Inc. will operate in the “Recreational Products” or “Toys and Games” industry.

d. Mission Statement

At Rex Smith® Jigsaw Puzzle Company, Inc., our mission is to bring joy, inspiration, and a sense of accomplishment to puzzle enthusiasts of all ages. We are committed to crafting premium-quality jigsaw puzzles that captivate the mind and stir the imagination.

Through our diverse and thoughtfully curated puzzle collection, we aim to create cherished moments of togetherness, foster learning experiences, and leave a lasting impression on every puzzle solver.

e. Vision Statement

Our vision at Rex Smith® Jigsaw Puzzle Company, Inc. is to be the foremost name in the jigsaw puzzle industry, synonymous with creativity, quality, and unmatched customer satisfaction. We aspire to continually push the boundaries of puzzle design, utilizing cutting-edge technology and collaborating with renowned artists to present an ever-evolving assortment of captivating puzzles.

f. Our Tagline (Slogan)

Rex Smith® Jigsaw Puzzle Company, Inc. – “Piece Together Moments of Wonder”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Rex Smith® Jigsaw Puzzle Company, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure
  • Chief Executive Officer (Owner)
  • Production Manager
  • Quality Control Officer
  • Accountant
  • Production, Packaging and Distribution Staff
  • Customer Care Officer.
i. Ownership/Shareholder Structure and Board Members
  • Rex Smith (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
  • Job Connel (Board Member) 18 Percent Shares
  • Silas Potter (Board Member) 10 Percent Shares
  • Austin Frank (Board Member) 10 Percent Shares
  • Jovita Chris (Board Member and Secretary) 10 Percent Shares.
  1. SWOT Analysis

a. Strength
  • Rex Smith® offers a wide range of jigsaw puzzles with captivating designs, including stunning landscapes, famous landmarks, artistic illustrations, licensed characters, and educational themes. This diverse collection appeals to a broad customer base and fosters brand loyalty.
  • The company’s commitment to using eco-friendly and durable materials ensures that customers receive high-quality puzzles that offer an enjoyable experience.
  • Rex Smith® has built a strong reputation as a trusted and reliable puzzle brand, known for its attention to detail, innovation, and commitment to customer satisfaction.
  • The ability to offer personalized puzzles, where customers can create their own puzzles using personal photos or artwork.
  • The company has established a robust sales and distribution network, including online platforms, retail partnerships, and collaborations with educational institutions, reaching a wide audience.
  • Rex Smith®’s dedication to creating puzzles with educational themes has positioned the company as a valuable resource for teachers, homeschoolers, and parents seeking engaging learning tools.
b. Weakness
  • While the company has a strong domestic market presence, there may be opportunities to expand internationally and tap into the global demand for jigsaw puzzles.
  • Demand for jigsaw puzzles may vary seasonally, with peak sales occurring during holidays and winter months. The company should explore strategies to maintain consistent sales throughout the year.
c. Opportunities
  • Investing in an enhanced online presence, including e-commerce platforms, social media marketing, and online promotions, can attract a larger customer base and increase sales.
  • Partnering with popular influencers and well-known artists can increase brand visibility, attract new customers, and create limited-edition puzzles that generate excitement.
  • Exploring new markets and distribution channels in international regions can open up significant growth opportunities for Rex Smith®.
  • Introducing puzzle subscription services can build customer loyalty, offer a regular revenue stream, and encourage repeat purchases.
i. How Big is the Industry?

The jigsaw puzzle industry is a relatively big industry. The industry’s size can be measured by its global market revenue and the number of puzzles sold annually.

ii. Is the Industry Growing or Declining?

The jigsaw puzzle industry was experiencing significant growth and had become a sizable market worldwide. Jigsaw puzzles became a popular hobby not only for children but also for adults of all ages, contributing to a broader customer base.

iii. What are the Future Trends in the Industry?

With the growing popularity of digital gaming and interactive experiences, the jigsaw puzzle industry may see increased adoption of digital puzzles and augmented reality (AR) puzzles. Digital platforms and apps that offer virtual puzzles with interactive features and AR overlays could appeal to tech-savvy consumers and offer new ways to engage with puzzles.

The trend of personalized products is likely to extend to the jigsaw puzzle industry. Companies may offer more customization options, allowing customers to create personalized puzzles using their own photos, artwork, or messages for special occasions and gifts.

Puzzles designed for specific interests or demographics may gain popularity. This could include puzzles aimed at different age groups, special interests, hobbies, or educational subjects, catering to diverse consumer preferences.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the jigsaw puzzle business.

v. Can You Sell a Franchise of Your Business in the Future?

Rex Smith® Jigsaw Puzzle Company, Inc. will not sell franchises in the near future.

d. Threats
  • The jigsaw puzzle industry is highly competitive, with several established players and new entrants. Rex Smith® must continue to differentiate itself and maintain its position as a market leader.
  • Economic downturns or recessions may impact consumer discretionary spending on recreational products like jigsaw puzzles.
  • There is a risk of competitors imitating designs or potential copyright issues related to using licensed characters or artworks.
  • Any disruptions in the supply chain, such as material shortages or shipping delays, could impact production and delivery timelines.
i. Who are the Major Competitors?
  • Ravensburger AG
  • Clementoni
  • Ceaco
  • Buffalo Games
  • White Mountain Puzzles
  • Eurographics
  • SunsOut, Inc.
  • Melissa & Doug
  • Springbok Puzzles
  • Castorland
  • Educa Borras
  • Jumbo Games
  • MasterPieces, Inc.
  • Piatnik
  • Trefl Group
  • Heye Puzzle
  • Cobble Hill Puzzle Company
  • Gibson Games
  • SunsOut, Inc.
ii. Is There a Franchise for Jigsaw Puzzle Business? 

No, there are no franchise opportunities for the jigsaw puzzle business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Jigsaw Puzzle Business?

There are no specific policies, regulations, or zoning laws that directly target jigsaw puzzle businesses in the United States. Jigsaw puzzle manufacturing and distribution are generally considered part of the larger Toys and Games industry, which is subject to general business regulations applicable to most companies.

However, there are some general regulations and requirements that businesses, including jigsaw puzzle companies, must adhere to.

Jigsaw puzzles, like all toys, must comply with safety standards set by the Consumer Product Safety Commission (CPSC) in the United States. These standards ensure that the products are safe for consumers, especially children, and do not pose any hazards.

Jigsaw puzzle companies must respect intellectual property rights when using licensed characters, copyrighted artworks, or trademarks. Obtaining proper licenses and permissions is essential to avoid legal issues.

Companies that manufacture and distribute jigsaw puzzles must comply with environmental regulations related to waste disposal, recycling, and the use of materials that may have environmental implications. Jigsaw puzzle businesses must comply with labor laws, including minimum wage requirements, working hours, and workplace safety regulations.

  1. Marketing Plan

a. Who is Your Target Audience?

i. Age Range: The target audience for jigsaw puzzles is typically diverse, covering a wide age range.

ii. Level of Education

The level of education for the target audience can be varied, ranging from high school graduates to individuals with advanced degrees.

iii. Income Level

Rex Smith® Jigsaw Puzzle Company, Inc. may target a middle to upper-middle-income demographic. Puzzles are generally affordable, making them accessible to a broad range of consumers.

iv. Ethnicity

The target audience for jigsaw puzzles is not specific to any particular ethnicity. Puzzles have universal appeal and are enjoyed by individuals from diverse cultural backgrounds.

v. Language: As jigsaw puzzles are primarily visual in nature, language proficiency is not a significant factor in the target audience.

vi. Geographical Location: Jigsaw puzzles have a global appeal and can be enjoyed by people from various regions.

vii. Lifestyle

The target audience for Rex Smith® may include individuals with diverse lifestyles. Puzzle enthusiasts can be students, working professionals, stay-at-home parents, retirees, and anyone seeking a relaxing and engaging leisure activity.

b. Advertising and Promotion Strategies
  • Build Relationships with toy stores, gift shops, department stores, and schools.
  • Deliberately Brand All Our Vans and Trucks.
  • Develop our Business Directory Profiles
  • Tap Into Text Marketing
  • Make Use of Billboards.
  • Share our Events in Local Groups and Pages.
  • Turn our Social Media Channels into a Resource
i. Traditional Marketing Strategies
  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • Out-of-Home” marketing (OOH marketing) – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage on direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing
  • Mobile Marketing.
iii. Social Media Marketing Plan
  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market and potential target market.
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on relevant social media channels.
  • Run cross-channel campaigns.
c. Pricing Strategy

When working out our pricing strategy, Rex Smith® Jigsaw Puzzle Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package.

  • Penetration Pricing
  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.
  1. Sales and Distribution Plan

a. Sales Channels

Rex Smith® Jigsaw Puzzle Company, Inc. has a robust sales and distribution network. Our puzzles are available through our website, major online marketplaces, and a wide network of retail partners, including toy stores, gift shops, and department stores. We also engage in strategic partnerships with educational institutions and corporate clients.

b. Inventory Strategy

We will analyze market trends, historical sales data, and customer feedback to forecast demand accurately. This will help us maintain optimal inventory levels and avoid stockouts or excess inventory.

c. Payment Options for Customers
  • Bank Transfers
  • Cash
  • Credit or Debit Card
  • Checks
  • Electronic Payment Systems such as PayPal or Venmo
d. Return Policy, Incentives, and Guarantees
Return Policy:
  • Damaged or Defective Items: If a customer receives a damaged or defective puzzle, they can contact our customer support within 2 days of receiving the order. We will arrange for a replacement or issue a full refund, including any shipping charges.
  • Incorrect Orders: In the rare event that a customer receives an incorrect puzzle, we will gladly exchange the item for the correct one and cover any return shipping costs.
  • Change of Mind: If a customer decides to return a puzzle due to a change of mind, they can do so within 3 days of purchase. The item must be unopened, unused, and in its original packaging. We will issue a refund for the purchase price, excluding any shipping charges.
  • Loyalty Program: Customers can enroll in our loyalty program, where they earn points for every purchase made. These points can be redeemed for discounts or future purchases, encouraging repeat business.
  • Special Offers and Promotions: We regularly run special offers, promotions, and seasonal discounts, providing customers with excellent value for their money and the opportunity to explore new puzzle collections.
  • Exclusive Access: As a token of appreciation, loyal customers may gain access to exclusive puzzle designs, limited-edition releases, or early access to new collections.
  • Quality Guarantee: We use premium-quality materials in our puzzles, ensuring durability, vibrant colors, and precise fit. If a customer experiences any quality issues, we will replace the puzzle or provide a full refund.
e. Customer Support Strategy

Customer support is a crucial aspect of any business, hence we will make sure to provide multiple channels for customers to reach out and seek support. This will include a dedicated customer support phone line, email address, and online chat option on the company’s website. This will foster strong customer relationships.

We will implement a system that allows customers to track their orders and receive regular updates on the status of their deliveries. This transparency helps build trust and reduces customer anxiety about the progress of their purchases.

We will regularly evaluate and analyze customer support metrics, such as response times, customer satisfaction scores, and complaint resolution rates. Identify areas that require improvement and implement strategies to enhance overall customer support.

  1. Operational Plan

Our creative team will collaborate with renowned artists, photographers, and designers to curate a diverse and captivating collection of puzzle images. We will continuously introduce new and exciting designs to keep our offerings fresh and appealing to customers.

We will partner with reliable manufacturers to produce our puzzles using premium-quality and eco-friendly materials. Regular quality checks will ensure that our puzzles meet our high standards.

a. What Happens During a Typical Day at a Jigsaw Puzzle Business?
  • The business opens for the day
  • The day usually begins with reviewing the production schedule and planning the day’s manufacturing activities.
  • Different types of jigsaw puzzles are produced, packaged, labeled, and distributed or stored
  • Throughout the day, inventory levels of raw materials, packaging materials, and finished products are monitored. Replenishment orders are placed as needed to maintain optimal stock levels.
  • The business is closed for the day.
b. Production Process
Puzzle Design:
  • Collaborate with artists, photographers, and designers to create a diverse and captivating collection of puzzle images.
  • Select images based on market trends, customer preferences, and themes that cater to various interests and age groups.
Material Procurement:
  • Source high-quality and eco-friendly materials, such as sturdy cardboard or wood, from trusted suppliers.
Image Conversion and Puzzle Cutting:
  • Utilize advanced puzzle-cutting machines to precisely cut the images into puzzle pieces of various shapes and sizes, ensuring a challenging and enjoyable puzzle-solving experience.
Puzzle Assembly:
  • Assemble the cut puzzle pieces into complete puzzles using a semi-automated or manual process.
  • Inspect each puzzle for accuracy, ensuring all pieces fit together seamlessly.
Quality Control:
  • Implement rigorous quality control measures at different stages of production to maintain high product standards.
  • Conduct visual inspections, test fit puzzles, and assess print quality.
Puzzle Packaging:
  • Package completed puzzles in attractive and durable boxes,
Branding and Labeling:
  • Apply Rex Smith® branding and labeling to the puzzle boxes.
Warehousing and Inventory Management:
  • Store finished puzzles in a well-organized warehouse.
c. Service Procedure
  • Receive customer orders through various sales channels, including our website and retail partners.
  • Pick and pack orders accurately and efficiently for shipping.
  • Partner with reliable shipping and logistics providers to deliver orders to customers, ensuring safe and timely delivery.
  • Offer different shipping options, including standard and expedited shipping.
d. The Supply Chain

Rex Smith® Jigsaw Puzzle Company, Inc. will establish efficient supply chain processes to ensure timely procurement of raw materials, seamless production flow, and on-time delivery of finished products.

e. Sources of Income

Rex Smith® Jigsaw Puzzle Company, Inc. will make money from creating, manufacturing, and selling jigsaw puzzles.

  1. Financial Plan

a. Amount Needed to Start Your Jigsaw Puzzle Company?

Rex Smith® Jigsaw Puzzle Company, Inc. would need an estimate of $1.2 million to successfully set up our jigsaw puzzle company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Cost Involved?
  • Legal and administrative costs (the cost of obtaining business licenses and permits, registering the business, and consulting with attorneys and accountants): $12,500
  • Machines, Equipment,, and supplies (raw materials): $500,000
  • Staffing costs: $250,000
  • Rent/lease: $350,000
  • Marketing and advertising costs: $5,000
  • Insurance costs: $6,800
  • Miscellaneous Expenses: $5,000.
c. Do You Need to Build a Facility? If YES, How Much will it cost?

Rex Smith® Jigsaw Puzzle Company, Inc. will not build a new facility for our jigsaw puzzle company; we intend to start with a long-term lease and after 8 years, we will start the process of acquiring our own production facility in a centralized location in the city.

d. What are the Ongoing Expenses for Running a Jigsaw Puzzle Company?
  • Raw Materials (cardboard or wood for puzzle pieces, ink for printing, puzzle box packaging materials, and any additional components like puzzle trays or figurines)
  • Labor cost
  • Utilities (expenses for electricity, water, heating, and cooling required for operating the manufacturing facility)
  • Machinery and Equipment Maintenance
  • Rent or Mortgage
  • Insurance
  • Licensing and Permits
  • Marketing and Advertising
  • Packaging and Shipping
  • Regulatory Compliance
  • Payment of federal, state, and local taxes, including income tax, sales tax, and property tax.
e. What is the Average Salary of your Staff?
  • Chief Executive Officer – $80,000 Per Year
  • Production Manager – $60,000 Per Year
  • Accountant – $55,000 Per Year
  • Quality Control Officer – $52,500 Per Year
  • Production, Packaging, and Distribution Staff -$46,000 Per Year
  • Customer Care Officer – $42,000 Per Year.
f. How Do You Get Funding to Start a Jigsaw Puzzle Business?
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
  • Source for soft loans from your family members and friends.
  1. Financial Projection

a. How Much Should You Charge for Your Product/Service?

The price of our jigsaw puzzles will typically range from $5 to $30 or more, depending on the size, complexity, and design of the jigsaw puzzle.

b. Sales Forecast?
  • First Fiscal Year (FY1): $600,000
  • Second Fiscal Year (FY2): $750,000
  • Third Fiscal Year (FY3): $1 million
c. Estimated Profit You Will Make a Year?
  • First Fiscal Year (FY1) (Profit After Tax): 20%
  • Second Fiscal Year (FY2) (Profit After Tax): 25%
  • Third Fiscal Year (FY3) (Profit After Tax): 30%
d. Profit Margin of a Jigsaw Puzzle Company Product/Service

The ideal profit margin we hope to make at Rex Smith® Jigsaw Puzzle Company, Inc. will be between 15 and 30 percent depending on the sales volume.

  1. Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a Franchise?

Rex Smith® Jigsaw Puzzle Company, Inc. will grow our jigsaw puzzle company by partnering with key players across different countries and export markets.

b. Where do you intend to expand to and why?

Rex Smith® Jigsaw Puzzle Company, Inc. plans to expand to the following cities.

  • New York City, New York
  • Chicago, Illinois
  • Detroit, Michigan
  • Philadelphia, Pennsylvania
  • Atlanta, Georgia
  • Memphis, Tennessee
  • Los Angeles, California
  • Washington, D.C.
  • Dallas, Texas
  • Houston, Texas.

We are expanding to these cities because these cities have a high demand for jigsaw puzzles.

  1. Exit Plan

The founder of Rex Smith® Jigsaw Puzzle Company, Inc. plans to exit the business via family succession. We have positioned structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without difficulties.

The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor. This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.