Are you about starting a paint and sip company? If YES, here is a detailed sample paint and sip business plan template & FREE feasibility report.
If you love creativity, arts and socialization, as well as have a penchant for business, then you may want to think of starting your own paint and sip studio. The publicity and patronage of this unique business is on the rise and perhaps this is the right time to open a paint and sip studio.
Depending on the scale you want to start, the startup capital for this type of business can range from low to moderate. As a matter of fact, it is advisable to run an art studio alongside your paint and sip business if indeed you want to maximize profits in this business. Below is a sample paint and sip studio business plan template that will help you write yours with little or no stress.
A Sample Paint and Sip Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
The paint and sip industry is made up of group painting lessons accompanied by wine or other beverages. Many wine and painting party studios are franchise-based and the number of businesses in this industry has increased rapidly since 2007.
The paint and sip industry is highly fragmented, with most operators having only one to four employees. However, on the opposite end, though smaller in number, the industry also includes multibillion-dollar institutions that organize paint and sip parties.
Over the five years to 2022, industry revenue is projected to grow. Contemporary art lessons and socialization has become a considerable growth segment as the sheer number of people interested in learning painting on an informal settings increases; this trend is not expected to slow.
A recent report published shows that there are an estimated 1000 wine and painting party companies in the United States and Canada. The typical wine and painting party franchise offers group painting classes that last for several hours.
Customers are encouraged to bring beverages, or purchase them if the studio has a liquor license. Painting lessons are led by professional artists or art students who also create art for the franchise. Clientele are usually 78 percent women. As a matter of fact, most wine and painting party businesses operate in a studio, although some host their painting events in restaurants.
On the average, an ideal Paint and Sip combines the fun and relaxation of a party with the challenge of a class. Guided by professional artists, the group will work at individual easels to create a masterpiece that is suitable for framing.
Over and above, the paint and sip industry is a profitable industry and it is open for any aspiring entrepreneur to come in. With the right location, right employees, right facility and network, you will just be fine with this business.
2. Executive Summary
Steve Shannon® Paint and Sip Studio, Inc. is a registered paint and sip studio that will be located in one of the busiest roads and a social hub in Las Vegas – Nevada.
We have been able to lease a facility along a major road that can fit into the kind of paint and sip studio that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Las Vegas – Nevada.
At Steve Shannon® Paint and Sip Studio, Inc. our art instructor will offer step-by-step instructions on how to paint a predetermined image.
While they paint, customers enjoy an alcoholic beverage of their choice (or, if they prefer, coffee or water). And when they finish, they get to keep their creations. Our classes will cost $35 to $65 a person, depending on location and format per time.
We will also be involved in auctioning off art, retailing art privately, retailing art through galleries, arts exhibitions, merchandise sales, other products and services and renting of art works. We will also partner with leading artists in and around the united states of America.
We are aware that there are several paint and sip studios all around Las Vegas – Nevada, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.
Much more than organizing paint and sip parties and classes, our customer care will be second to none in the whole of Las Vegas – Nevada. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our paint and sip studio.
Steve Shannon® Paint and Sip Studio, Inc. will ensure that all our customers are given first class treatment whenever they visit our paint and sip studio.
We have a CRM software that will enable us manage a one on one relationship with them no matter how large they may grow to. We will ensure that we get our customers involved when making some business decisions that directly affect them.
Steve Shannon® Paint and Sip Studio, Inc. is owned by Steve Shannon and his immediate family members. Steve Shannon is an artist per excellence. He has a BA. in Fine Arts, with over 15 years’ experience in the paint and sip industry.
Although the business is launching out with just one outlet in Las Vegas – Nevada, but there are plans to open other outlets in Nevada and perhaps in other key cities in the United States of America.
3. Our Products and Services
Steve Shannon® Paint and Sip Studio, Inc. is in the paint and sip studio industry to make profits and we will make available appealing classes and a wide range of art works from different artists and other related merchandise to our clients. Our product and service offerings are listed below;
- Organize paint and sip classes
- Organize paint and sip parties
- Auctioning off art, retailing art privately, retailing art through galleries, arts exhibitions, merchandise sales, other products and services and renting of art works.
4. Our Mission and Vision Statement
- Our vision is to become the leading paint and sip studio in Las Vegas – Nevada with clients traveling from far to take our classes or attend our paint and sip parties.
- Our mission is to establish a paint and sip studio that combines the fun and relaxation of a party with the challenge of a class.
- Guided by one of our professional artists, we will work at individual easels to create a masterpiece that is suitable for framing.
Our Business Structure
Steve Shannon® Paint and Sip Studio, Inc. do not intend to start a small paint and sip studio; our intention is to build a standard and one stop paint and sip studio in Las Vegas, Nevada. We will ensure that we put the right structures in place that will support the kind of growth that we have in mind.
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 our stakeholders. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Paint and Sip Studio Manager
- Sales and Marketing Manager
- Art Instructor (Artist)
- Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Chief Artist):
- 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
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Paint and Sip Studio 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.
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Source for avenues for us to organize paint and sip parties and classes and also to exhibit our artworks and generate sales
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Artist (Art Instructor)
- Guide students through painting of a pre determine image while they sip their drinks
- Monthly painting submissions
- Picking up supplies
- Setting up classes and breaking down the classes
- Creating a fun and relaxed atmosphere throughout the class
- Offering assistance to students
- Making sure to always end the painting on time.
- 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
- Ensuring 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’ promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
- Responsible for cleaning the paint and sip studio facility at all times
- Ensure that toiletries and supplies don’t run out of stock
- Handle any other duty as assigned by the gallery manager.
6. SWOT Analysis
Our intention of starting just one outlet of our paint and sip studio in Las Vegas – Nevada is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets in key regions within the United States of America.
We are quite aware that there are several paint and sip studios in Las Vegas and even in the same location where we intend locating ours, 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.
Steve Shannon® Paint and Sip Studio, Inc. employed the services of an expert HR and Business Analyst with bias in new business 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 Steve Shannon® Paint and Sip Studio, Inc.;
Steve Shannon® Paint and Sip Studio, Inc. is not only a leader in the paint and sip category, we are innovative and engaged in the creative entertainment market. From blacklight classes to painting wine glasses and bottles, dancing and karaoke during breaks, we enjoy bringing entertaining experiences to our guests.
A major weakness that may count against us is the fact that we are a new paint and sip studio and we don’t have the financial capacity to compete with leading studios who are already determining the market direction in the United States.
The fact that we are going to be operating our paint and sip studio in one of the busiest social hub in Las Vegas – Nevada provides us with unlimited opportunities to sell our products to a large number of people. 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 paint and sip studio.
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 paint and sip studio in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
The paint-and-sip trend is driven in part by a generally heightened interest in wine. The growth of such business may reflect the findings of recent psychological research showing that people are happier when they have an experience rather than making a purchase.
The beauty of a paint and sip business is that it offers customers both an experience and a product. The growth of experience-based businesses, like paint-and-sip concepts, reflect current trends in which millennials are placing greater value on experiences versus things.
Research published by San Francisco State University found that people who spent money on experiences rather than material items were happier and felt the money was better spent. As Forbes explained, “The thrill of purchasing things fades quickly but the joy and memories of experiences, from epic adventures to minute encounters, can last a lifetime.”
8. Our Target Market
There are loads of people who are looking out to learn painting in a relax and social environment. This goes to show that if a paint and sip studio is well positioned, they will continue to attract a wide range of clients on a regular basis. In view of that, we have positioned our paint and sip studio to service the residents of Las Vegas, Nevada and the entire United States via our online paint and sip studio shop.
We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to attract the following groups of people;
- Bachelors and Spinsters
- Corporate Executives
- Business People
- Sports Men and Women
Our Competitive Advantage
Top on the list when it comes to our competitive advantage is that Steve Shannon® Paint and Sip Studio, Inc. is coming into the industry with a cutting-edge e-commerce reservation and management systems, including POS and calendar planning.
Steve Shannon® Paint and Sip Studio, Inc. embrace of new technology allows owners to focus on driving business and satisfying guests.
Steve Shannon® Paint and Sip Studio, Inc. is not just about public painting events, we will also offer specialty programs like Project Pet, where customers can paint their pet; private parties and celebrations; team building and other B2B opportunities.
Plus, we offer children’s classes and camps. Steve Shannon® Paint and Sip Studio, Inc. has a center dedicated to answering guest questions and helping them book events at local studios. The center manages all of the calls the studio receives during business hours.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the paint and sip studio industry, meaning that they will be more than willing to build the business with us and help deliver our goals and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Steve Shannon® Paint and Sip Studio, Inc. is in business to attract clients to our paint and sip studio in Las Vegas – Nevada. We are in the paint and sip studio industry to maximize profits and we are going to ensure that we achieve our goals and objectives.
In essence, our source of income will be;
- Organize paint and sip classes
- Organize paint and sip parties
- Auctioning off art, retailing art privately, retailing art through galleries, arts exhibitions, merchandise sales, other products and services and renting of art works.
10. Sales Forecast
One thing is certain when it comes to paint and sip studio, if your studio facility is centrally positioned, you will always attract customers that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Las Vegas – Nevada 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 projections for Steve Shannon® Paint and Sip Studio, Inc., it is based on the location of our business and other factors as it relates to paint and sip studio startups in the United States;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $550,000 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 offering same services as we do within same location. 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 Steve Shannon® Paint and Sip Studio, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents of Las Vegas – Nevada.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the paint and sip studio 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 Las Vegas.
In summary, Steve Shannon® Paint and Sip Studio, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our paint and sip studio in a grand style with a party for all.
- Introduce our paint and sip studio by sending introductory letters alongside our brochure to organizations, households and key stake in Las Vegas – Nevada
- Ensure that we organize a wide range of paint and sip classes
- Make use of attractive hand bills to create awareness and also to give direction to our paint and sip studio
- Position our signage/flexi banners at strategic places around Las Vegas
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
11. Publicity and Advertising Strategy
Despite the fact that our paint and sip studio is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote Steve Shannon® Paint and Sip Studio, Inc.
Steve Shannon® Paint and Sip Studio, Inc. has a long – term plan of opening outlets in various locations all around Nevada which is why we will deliberately build our brand to be well accepted in Las Vegas before venturing out. Here are the platforms we intend leveraging on to promote and advertise Steve Shannon® Paint and Sip Studio, 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 business.
- Ensure that our we position our banners and billboards in strategic positions all around Las Vegas – Nevada
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise Steve Shannon® Paint and Sip Studio, Inc. business in our official website and employ strategies that will help us pull traffic to the site
12. Our Pricing Strategy
Basically, adult canvas paint parties cost $35 per person. If a private party is booked for 20 or more painters, the cost goes down to $30 per person, 30 or more is $25 per person. But Mural painters charge $50 to $100 per hour or generally $10 to $35 per square foot, depending on their experience and the intricacy of your painting.
You might pay closer to $50 per square foot for a master painter. At Steve Shannon® Paint and Sip Studio, Inc., our classes will cost $35 to $65 a person, depending on location and format per time.
- Payment Options
The payment policy adopted by Steve Shannon® Paint and Sip Studio, 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 Steve Shannon® Paint and Sip Studio, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our clients make payment for services and products purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
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 Steve Shannon® Paint and Sip Studio, 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 cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $85,600.
- The cost for facility remodeling (construction of racks and shelves) – $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) – $60,000
- The cost for start-up inventory (stocking with a wide range of painting materials, wines, glasses, art works, and other related merchandize) – $50,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of $250,000 to successfully set up our paint and sip studio in Las Vegas – Nevada.
Generating Funds/Startup Capital for Steve Shannon® Paint and Sip Studio, Inc.
Steve Shannon® Paint and Sip Studio, Inc. is a private business that is owned and financed by Steve Shannon and his immediate family members. They do not intend to welcome any external business partners which is why 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 $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. 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, then it won’t be too long before the business closes shop.
One of our major goals of starting Steve Shannon® Paint and Sip Studio, 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 offer our paint and sip parties and classes and also retail our art works a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Steve Shannon® Paint and Sip Studio, Inc. will make sure that the right foundations, 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 retraining 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 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 paint and sip studio: 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 Promotional Materials: In Progress
- Recruitment of employees: In Progress
- 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
- Opening party/launching party planning: In Progress
- Establishing business relationship with artists and vendors – suppliers of art works and related merchandize (paintings, drawings, prints, sculptures, photography and other merchandize) In Progress.