Create A Business Plan
I started my Longarm Quilting business waaayyy back in 2003 when we moved to Houston. I worked from home (WFH) at corporate job for about six months after moving, knowing my job was ending. I did create a Business Plan. Looking back, I was way off course in what I thought would work and what actually worked in getting my quilting business underway. But, that is OK. I had a plan, and it made hubby happy to spend the upfront cash. Those first years, I updated the information once or twice a year and MODIFIED my plan as my business progressed.
Why Do You Need A Business Plan?
Creating a business plan for your longarm machine quilting business should provide you with a three-to-five year road map that outlines how you plan to achieve your goals – whether that is to quilt only one quilt a month for friends and family for a small fee, or to earn a living quilting for others.
Sections of a Business Plan
Whether you are going 'professional' or just quilting for friends and family, these are the areas that are typically included and really great subjects for you to consider for your personal plan.
Executive Summary
All businesses include an Executive Summary, which typically includes a mission statement, your roadmap for the business, financial information, services and products you plan to offer. This was actually the last thing I wrote when preparing my business plan.
This is where you will determine whether you are going professional or doing a hobby project.
Description of your Business
Start with a list of all of the services you think you might provide. Quilting, piecing for others, basting quilt tops, t-shirt quilts, binding, and so on. Products could include batting, backing, and thread. Decide what is going to make YOUR business different from others.
Market analysis
This next section should be a thorough market analysis. Research what the competition is like in your area. When I was starting my business there were annual quilting surveys that disclosed how much money quilters were spending on things like fabric, quilting, classes, purchasing notions, etc.
- Quilt Guilds. active guilds, guild newsletters.
- Trade show or Quilt show vending?
- Instagram, Pinterest, X (Twitter) or other social media
- Will you have blog and post on a regular basis?
- What services do your competitors offer?
- Do they specialize in any type of quilting? Only Edge to Edge or Custom quilting.
- What is the “waiting list"? Is it realistic to offer two week or four week turn-around time.
- What is the pricing structure? Minimum charges?
- What about quilt shops or fabric stores? Are they offering quilting? Will you be competing or working with them to complete quilting?
- Charity quilting. Determine how much time you want to spend doing 'charity' quilting. It's great for the learning process, but can get out of control if you don't set boundaries.
Financial Projections
Financial projections are also a critical part of a well-crafted business plan. In this section you’ll outline what earnings and expenses you expect over the next five years. This section will include documents such as income statements, balance sheets, payments on hardware (if financing), and cash flow statements on at least a quarterly basis for your first year. The financial section should also include an outline of any capital expenditures you anticipate. For example, you may start by investing in your longarm quilting machine but you may intend to add a computer system after your second year in business. Are you purchasing an application such as QuickBooks to handle the invoicing process.
Business or Hobby?
Longarm quilters often start quilting for others as a hobby or as a way to pay for their own personal quilting supplies. While this style of business can provide you some “pocket money”, it will be hard to grow your business beyond that very casual arrangement without a solid plan as your foundation.
Unexpected Changes To The Plan
My best friend, also a longarm quilter, husband had a heart attack, with no insurance. We were brainstorming trying to figure out what can she do to make some more money than just quilting for others. T-shirt Quilts. We both started offering t-shirt quilts as an option, and both of our businesses took off. We targeted a niche, focused, and it paid off. At the time, it was an underserved market and we took advantage of it.
Marketing.
How are you going to ''sell' your product? You need a website, even if it only a one page site that gives your contact information.. I was fortunate that I built websites as my fulltime job at a Fortune 500 corporate business. I was able to create a viable website for my business (and my friend). You need to create a website, whether using your grandkids, best friend or hiring a professional. Don't forget all of the social platforms like X (twitter), Instagram, Pinterest and Instagram.
Financial Plan
Whether you’re pitching to investors (maybe a spouse) or just preparing your own overview of the year ahead, pay a lot of attention to financial projections and take them seriously. This will help you prepare well for both the good and rough times.
Appendix
This is the place to include any information that was omitted elsewhere, but it is still worth mentioning. For instance, you can include any charts, market analyses, contracts, resumes or other legal documents that you find relevant to support your business plan.
Look for a Sample Business Plan coming. Meanwhile, do a Google search on business plans to get you started.
