1. style and fashion
2. body art

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Thrútheim Tattoo Studios, Inc.
March 2011
Ryan M. Fochtman
Owner & President
Reykjavik, Iceland
(720) 940-3001
ThrútheimTattoo.com
Ryan@ThrútheimTattoo.com
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Table of Contents
1. Executive Summary
2. Present Situation
3. Objective
4. Management and Organization
5. Product and Service Description
6. Market Analysis
7. Marketing Strategy
8. Financial Summary
9. Appendix
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Executive Summary
Thrútheim Tattoo Studios, Inc. is devoted to producing tattoos of the highest quality, and
redefining the nature of the tattoo culture in Reykjavik, Iceland. Due to its unique
positioning, deliberate business model, and clear value proposition, Thrútheim Tattoo
Studios, Inc. is dedicated to becoming the best tattoo studio in Iceland over the course of
the next three years. The underlying purpose of this business plan is to raise $45,000
from an investor.
Registered Name
Thrútheim Tattoo Studios, Inc.
Meaning “Land of Strength” in Icelandic, and rooted in ancient Norse Mythology, the
Thrútheim is the ancient realm of Thor and the source of the absolute strength and power
that is granted to the Viking God himself.
Commencement of Operations
Thrútheim Tattoo Studios, Inc. is scheduled to begin operations in August of 2011, in
Reykjavik, Iceland. Development and construction is scheduled to begin June, 2011, with
appointments being scheduled via the company website beginning the following month.
Background
At its very core, Thrútheim Tattoo Studios, Inc. is the embodiment of the sacred power
that surrounds ancient Norse mythology, and is dedicated to achieving its goal of
becoming the benchmark of quality tattooing in Reykjavik, Iceland. Thrútheim Tattoo
Studios, Inc. employs a direct business model that does make its goal achievable by the
end of its third year of operations. Presently Icelandic tattooing is a seemingly nascent
and underdeveloped industry; Thrútheim Tattoo Studio, Inc. is driven to fill in this gap,
and provide the Icelandic customer with a product that is, indisputably, of the highest
quality available. Designed with the customer in mind, the direct business approach of
Thrútheim Tattoo Studio, Inc. provides the resources necessary to achieve the
overarching goal of the company, while simultaneously guaranteeing an 18% rate of
return, compounded annually. The financial projections as presented within this plan
confirm this rate of investment return based on conservative calculations, with a gradual,
yet, lucrative increase in annual net revenue.
Mission Statement
Thrútheim Tattoo Studios, Inc. is dedicated to redefining the current benchmarks of the
Icelandic tattoo industry by thereby challenging current industry standard by offering a
product that will undeniably redefine the nature of tattooing in Iceland and fill the gap
that is both crippling and preventing the industry from developing and evolving. By
offering a quality of service that is indisputably of the highest standard, and marketed by
a pricing structure that represents a company fueled by fair and better business practices,
Thrútheim Tattoo Studios, Inc. is striving to become the icon of an Icelandic tattoo
culture reborn into something worthy of international consideration.
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Vision Statement
Fueled by unique positioning, deliberate business model, and clear value proposition,
Thrútheim Tattoo Studios, Inc. is dedicated to becoming the best tattoo studio in Iceland
over the course of the next three years while also returning its initial capital investment
with a 18% rate of return by the end of the third year.
Objective
Our objective, at this time, is to launch the company into a prominent marketing position.
We feel that within three years Thrútheim Tattoo Studio, Inc. will become the best tattoo
shop in Iceland, offering a product that cannot be challenged by any of its competitors.
To adequately accomplish this goal, we have developed a comprehensive plan to
intensify and accelerate our marketing activities, overall product and development,
expansion of retail distribution, and customer service. To properly implement our plan we
are requesting an initial investment of $45,000. This capital infusion will be used for the
following purposes:
1. Procurement of supplies necessary to properly open and operate the company,
(see appendix)-$10,000.
2. Procurement of raw materials, to be used in construction and development of
company-$11,000.
3. General Contracting and construction of company-$10,000.
4. Payment to Icelandic ministry of commerce, covering ISK company
registration, licensing and ISK required capital amount-$6,000.
5. Payment of rents owed during development phase-$3,800.
6. For general working capital, (procurement of production, inventory and
company general development)-$4,000.
These items will enable Thrútheim Tattoo Studio, Inc to maximize its rate of
development, and therefore allow the company to launch itself into the unique
positioning that will underline its overall success. This initial capital investment will
provide Thrútheim Tattoo Studio, Inc. with the opportunity and resources necessary to
adequately establish itself as a marketable operation, and as one that is capable of
handling the increased demands created by the influx of potential customers who are
presently dissatisfied by the current state of the Icelandic tattoo industry.
Organizational Values
1. Unique positioning
2. Deliberate business model
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3.
Clear and direct value proposition
4. Transparency with all dealings with equitable stakeholders
5. Absolute commitment to full return of equitable interest of investors
Management & Organization
The management team behind Thrútheim Tattoo Studios, Inc. is exceptionally motivated,
highly experienced within the field of tattooing, and is more than capable of successfully
executing the overarching company goal presented within this plan. The management
team of two, company founder Ryan M. Fochtman, and studio manager and permanent
artist Eric Carlson currently lead Thrútheim Tattoo Studios, Inc.
Beyond equitable control and direct management of the company, a board of
advisors has been founded that will oversee the success and growth of the company by
way of advisement and assistance with strategic business planning. Currently, the board
consists of the following five members, all of whom have achieved success in various
business ventures
1. Bill Thomas-Successful venture capitalist and investment banker who has just
recently partnered with an international corporation, located in Stockholm,
Sweden.
2. Mark Whistler-Founder and President of Wallstreetrockstar.com,
iOnlineForexTrading.com and iOnlineTradingForex.com
3. Thomas Davidson-Canadian investor and co-owner and president of Nisim
International, Inc.
4. Tom Fochtman-Successful independent business owner and current VicePresident of Cocal Landscaping.
5. Aries Talisman-Founder and owner of Talisman Tattoos, located in Taos,
New Mexico.
Target Market
The target market of the company falls into two separate categories: individuals
permanently residing in Iceland, and tourists traveling the country and passing through
Reykjavik. Currently, the population of Iceland is 321,000 (December, 2010).
Approximately 63% of the population lives in Reykjavik and its neighboring
communities. With 22% of its population aged 15 and below, and only 12% aged 65 or
above, Iceland has the youngest population in Europe. In recent years, tourism in Iceland
has grown tremendously, with travelers passing through Reykjavik constantly throughout
the year.
Thrútheim Tattoo Studio, Inc. is ready to move into its first marketing phase,
namely expansion of its market base by making potential clients aware of its presence
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prior to its grand opening date in August. To accomplish this marketing goal, the
company plans on utilizing the marketing capabilities of the social networking site
Facebook, a site used by 96% of the Icelandic population. In addition to Facebook, the
company intends to launch its website, www.ThrútheimTattoo.com, which will provide
potential customers with adequate knowledge of the quality and services offered, as well
as provide potential customers with the opportunity to connect with artists, and schedule
their appointments online.
Responses from potential customers strongly indicate that the product offered by
the current Icelandic tattoo industry has developed a reputation of considerable doubt,
despite its incredibly high demand. Inquires from prospective customers suggest that
there is a considerable demand for a tattoo studio that offers a pricing model that is
reasonable and set fairly, and a product that is consistently of the highest quality
available.
Marketing
Taking into strong consideration every possible variable presented with the present tattoo market
and national industry as a whole, paired with considerable consideration directed towards
company operations and development, a specific marketing model does present the highest
possibility for positive revenue forecast:
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Establish an overwhelmingly strong presence in the Icelandic market within the first two
years of operations, based on fundamental business strategies.
•
Based on extensive market research already taken, and continuing to evaluate the everevolving Icelandic demographic, nationwide awareness of the presence of Thrútheim
Tattoo Studios, Inc., will develop within 18 months time; based on strategic, Icelandicspecific, marketing strategies.
•
Through Thrútheim Tattoo Studios, Inc. own marketing force, based on continuously
acquired market knowledge and research, developing and expanding customer relations
will proliferate based on personalized understandings of the Icelandic customer and
client.
Marketing Analysis And Strategy
The fundamental thrust of our marketing strategy consists of online networking and
advertising, printed advertising, and word of mouth networking. Presently, online
marketing and advertising do hold the highest level of potential for a successful
marketing campaign, and thereby allow the company the chance to intensify and
accelerate its overall market share.
We intend to reach prospective clients by continued advertising via primarily
online marketing and printed advertising. In addition, upon establishing itself as an
operation superior in excellence, the reputation of Thrútheim Tattoo Studio that will
inevitably develop will only further our marketing campaign; as the company progresses
while maintaining a standard of the highest quality, the expressions of satisfaction and
recommendation continued customers further expands our marketing strategy, thereby
allowing us to continue our advances in the Icelandic marketplace with a far greater and
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more unique positioning strategy. None of the competitors of Thrútheim Tattoo Studio
are advertising as intensely by any of the aforementioned methods. Accordingly, our
company can be characterized through our marketing efforts as the business that provides
a consistently positive and stable product overall to our customers.
A fundamental key to successfully marketing Thrútheim Tattoo Studios, Inc. is to
individually identify and target individuals who potentially present themselves as longterm clientele. As such, generation of long-term/repeat business guarantees both a steady
flow of generated revenue, and a consistent and steady marketing force. Therefore,
strategically marketing Thrútheim Tattoo Studios, Inc. depends on personalized
awareness of the Icelandic customer need, as well as, an intimate awareness of the market
as a whole.
Product Marketing
Fundamentally, Thrútheim Tattoo Studios, Inc. and its offered product will outsell
competition because of excellence in quality, and a competitive pricing structure. As
such, based on the current nature of the monopolized Icelandic tattoo market, Thrútheim
Tattoo Studios, Inc. will flourish due to its superiority in quality and competitive pricing
model.
4.4 Pricing Structure
The Pricing structure, as it has been developed (based on evaluation and consideration of
competitor pricing structures), is as follows:
•
$150.00 for every hour of tattooing
•
$65.00 for standard piercing, and $75.00+ for elaborate, dermal modifications
This pricing strategy will be high enough to convince customers that they are purchasing
a product that is superior and of the highest quality available. Primary research indicates
that the target market driven by price sensitivity, and thereby will react favorably to this
competitive pricing strategy. Based on current pricing structures of potential competitors,
prices offered by Thrútheim Tattoo Studios, Inc. are universally 35-40% lower than
competitor pricing.
Financial Summary
Financial Highlights (Best Case Scenario)
• Cash positive in each year of studio operation
• $45,000 received in capital investment returned by the end of the third year of
operations
• Cash surplus returned to investor, by way of a 33% dividend, paid out annually
• 18% return of investment the end of the third year of operations
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• Surplus of cash available by the end of year three does allow for removal of
overhead by way of purchasing of studio property space
The Offer
By the end of year three we will have reached every one of our stated goals and
objectives, and our lending partner will be able to collect their return on investment. As
predicted in the balance sheet for year three (see appendix), the original loan will be paid
down to zero by the end of year three. For the $45,000 investment, an 18%, annually
compounded returned interest is being offered. Therefore, in addition to being fully
reimbursed for the initial capital investment, our investment will receive $16,200 in
returned interest. Return of the initial investment is planned to happen annually, with a
33% dividend being paid out at the end of each of the first three years. In addition to 33%
of the initial $45,000, the 18% of returned interest will be included in each dividend
payment.
If the management of Thrútheim Tattoo studios fails to meet expectation and does
not achieve its predicted rate of success, an exit strategy will be implemented to ensure a
full return of investment to our lender. If the company fails to meet its projected financial
goal, as presented in this plan, by the end of year two the company will scale back its
operation and preserve its available cash balance to be used for a potential repayment of
initial capital funds. If, by year three, the company has failed to improve its financial
condition all available positive net cash flow will be directed to the investment partner,
while all operational diligence will be applied to manage and maintain the value of the
lender’s initial investment.
Breakdown of Repayment Strategy:
• Year one: $15,000 + $8,100 (45,000*0.18) = $23,100
• Year two: $15,000 + $5,400 (30,000*0.18) =$20,400
• Year three: $15,000 + $2,700 (15,000*0.18) =$17,700
Total Return: $61,200
Sensitivity Analysis
The first thing that must be considered is the possibility that the first three years of
operations fail to go as planned per terms of generated revenue. In such a scenario, at the
end of year three, if the total equitable worth has not neared the expected worth, the
organization will be unable to return the capital investment by year three. If, by year
three, the company has failed to improve its financial condition all available positive net
cash flow will be directed to the investment partner, while all operational diligence will
be applied to manage and maintain the value of the lender’s initial investment.
Company Financial Assets
1. Cash-reflects limited amount of cash on hand at any balance sheet date.
Positive generation of cash is to be applied against outstanding loan.
2. General Administration expenses-are minimal to Thrútheim Tattoo Studio.
Every artist working for the company will employed as independent
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contractors, and therefore are not considered a payroll or salary expense.
Rather, company policy does dictate that 50% of all profits made by artists
will be collected.
3. Inventory-is to be purchased on a large-order only basis at a precalculated
order point, which is determined by the overall volume of retail sales.
Based on our sales predictions, as of now the reorder point is scheduled
for every three months. On hand inventory available for sale is therefore
scheduled to have a six to eight week turn around period. By ordering
more inventory at a time and placing larger orders, the primary benefit of
this inventory ordering plan is that it allows us to avoid shipping and
importation costs.
Fixed Assets
1. Because it is customary for tattoo and piercing artists to supply their own
tools, the fixed assets held by the company are reasonable and does not
absorb the overall net worth of the company. Aside from equipment that is
to be purchased during the start-up phase of development, all other
equipment and materials will be purchased on an as needed basis.
2. Upon opening to the public in August, a $40,000 line of credit will be
provided to Thrútheim Tattoo Studio by another lending partner, which
will be reserved for general working capital if it is needed, and the
purchasing of needed supplies and materials
Liabilities
1. Accounts Payable-Includes amounts due on inventory purchases, as well
as non-inventory items such as supplies, materials, and utilities.
2. Taxes Payable-for unpaid Icelandic federal, commercial, and property tax.
General and Administration
1. Employee Wages-includes all Thrútheim Tattoo Studio employees who
are not employed as independent contractors but are instead compensated
hourly. The hourly wage that is paid is set by the Icelandic government,
and will be determined based on the specific schedule of the employee.
2. General Administration Expenses-Once a month, owner Ryan Fochtman will be
reimbursed an amount that will reflect the revenue generated each month.
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Appendix
1. Year One-2012
• Profit & Loss Statement
• Cash Flow Statement
2. Year Two-2013
• Profit & Loss Statement
• Cash Flow Statement
3. Year Three-2014
• Profit & Loss Statement
• Cash Flow Statement
4. Initial Start-Up Expenses
5. Ongoing Expenses