FLIP IT

Final Report Business Proposal

Technical Writing Final Report

Fall 2014
Jennifer Stephenson
Jordan Wright

TECM 2700 REPORT

Table of Contents
Sec$on

Execu$ve Summary

II

Business Objec$ves, Research

III

Loca$on

IV

Products and Services

Design

VI

Present Market

VII

Compe$$on

VIII

Marke$ng Plan

IX

Management and Organiza$on

Financial Plan and Data

XI

References

TECM 2700 REPORT

FLIP IT
Final Report Business Proposal
Executive Summary
Thanks to various Do It Yourself (DIY) shows on TV and the creation of Pinterest,
many Americans have taken to flea markets, garage sales and dumpster diving in
an effort to reimagine and refurbish items into one of a kind pieces for their homes

also known as flipping or up-cycling. In order to flip items it can take several
different types of tools, a large amount of space, and various paints and fabrics.
This can be very costly for an individual. Flip it is a store that provides space
dedicated to the purpose of flipping or up-cycling items found in an individuals
home, garage sale, or flea market into items that can be purposeful or beautiful in a
new way. The store will provide space, tools and experienced flippers to help
individuals with their DIY projects.

TECM 2700 REPORT

A store offering space to complete projects, varying types of tools, the expertise of
the staff as well as the ability to exchange, reuse and share items would be welcome
and prosper in this type of environment based on market research.

Much like a gym membership, individuals may choose to pay a monthly fee to use
the facility however, a one time rental fee will also be available. DIY or Do It
Yourself classes will be available several times per month, free for members and at
a cost for non-members. The store will offer a wide range of tools, many in
multiples, necessary to complete most projects. Experienced flippers, licensed
electricians and carpenters will be on hand to help with projects or questions. In
addition all staff will be certified in First Aid and CPR. Those entering the facility
will be asked to sign a waiver and complete a basics course for tools and safety.
Safety equipment and emergency equipment will also be provided.
Research based on population, local economy, business types and town cultures
identify the Grapevine TX area as the most lucrative and successful location for
this type of store. In order to open we are looking to obtain $20,000.00 in investor
funds.

TECM 2700 REPORT

Business Objectives & Research

The companys main goal is to provide a space for individuals to enjoy the process
of refurbishing what others may consider to be trash and making unique items for
their homes. Individuals will be able to learn new techniques and gain access to
tools otherwise unavailable to many. The space will be safe and clean and will offer
various items to aid in the overall process of flipping an item.
Mission Statement:

Building a community involved

in the preservation of resources
by educating and encouraging
the reuse of salvageable items.
Similar businesses do not exist making it difficult to calculate and compare success,
overhead costs and market sustainability. Based on research conducted via
geographic locations in the Dallas Fort Worth (DFW) metroplex, population of
various cities, local demographics, activities and comparable stores in various areas
a location in Grapevine is the most ideal for this type of business model.

Population and Demographic of Cities Surrounding DFW-1

DFW Cities

Population as of
2014

Small Town eclectic

feel?

Hosts fairs or
festivals

741,206 No

Yes

1,197,816 No

Yes

Southlake

26,575 No

Yes

Grapevine

46,334 Yes

Yes

Irving

216,290 No

No

Keller

39,627 Yes

Yes

5,962 Yes

Yes

22,807 No

No

Fort Wort
Dallas

Roanoke
Colleyville

TECM 2700 REPORT

Surveys were conducted in Grapevine asking questions such as:

Do you live in Grapevine?

Do you live within 10 Miles of Grapevine?
Do you live more than 10 Miles from Grapevine?
Have you attempted a DIY project?
If yes did you finish the project?
If no please identify the reasons that kept you from completing the DIY project?
Are you Male or Female?
Do you watch DIY shows or maintain a Pinterest page for DIY inspiration?
The results are as follows:
Male

Female

100
90
80
70
60
50
40
30
20
10
0

Live in Grapevine

TECM 2700 REPORT

< 10 miles

> 10 miles

Started a DIY

DId not finish Watch DIY/Pinterest

A random sampling of individuals identified that of the 100 individuals surveyed

63% lived in the immediate area, 17% lived within 10 miles of Grapevine and
20% lived more than 10 miles outside of the city. Of those surveyed 82%
indicated that they have started a DIY project in the past with only 45%
completing the project. When asked some common reasons why projects were left
uncompleted (multiple reasons could be selected) 60% indicated lack of time, 53%
indicated lack of tools, 54% indicated lack of space and 40% indicated lack of
knowledge. Using the market research we can infer that this type of business
concept would be successful in this environment.
Grapevine offers a hometown feel despite the relatively large population size.
Downtown Grapevine known as Main Street offers various bars, restaurants,
boutique shops, artisan cafes and plays host to some of the most popular street
fairs in the surrounding area. The Annual Wine Festival draws individuals from all
over the DFW metroplex. Craft fairs, chocolate fairs and the antique train are
additional nostalgic qualities that draw a large amount of tourists to the region.

TECM 2700 REPORT

Location
After doing a great deal of research on locations, we are convinced that a
downtown Grapevine location would bring in almost double the revenue, due to
the dense population, nearby businesses, and proximity to one of the largest
monthly flea markets in the country. Additionally the town is considered one of the
trendiest of the geographical region playing host to many fairs, farmers markets
and celebrations.

Local companies consist of similar DIY profiles to include BYOB painting shops,
shabby chic boutique stores and artisan cafes. Given that there are no researchable
stores similar to proposed Flip It, in order to gauge its possible success rate a survey
was administered over the course of two weeks to over 100 individuals in the
downtown Grapevine area. As previously discussed, based upon the results of a
survey, a large percentage of individuals living in Grapevine and the surrounding
areas frequent the shops and restaurants on Main Street. Of those surveyed many
have taken party in DIY projects and other related activities. Given this
information we feel that the business will thrive in this type of community.
As of 2014 there was a population of 50,000 people living in Grapevine with 6
million people living within an hours drive of the city. The 2014 Wine Festival
drew over 260,000 people to the citys epicenter to partake in the wine festival and
art fair. When considering the location, square footage and proximity to the town
center was most important. A square footage of 3,500 sq./ft would be most ideal

TECM 2700 REPORT

in order to design the store most effectively. Two locations have been identified that
meet those needs.

Option 1:
1271 William D. Tate
Grapevine, TX 76051

Option 2:
129 S Main St,
Grapevine, TX 76051

Option one would require demolition and reconstruction and is further from
town than option two. Option two is currently under development and provides
the most ideal location in terms of location and ability to design the space from
the ground up.

TECM 2700 REPORT

Products and Services

Management- The company will be operated by myself Jennifer Stephenson who
will act as CEO, CFO/Accountant and Marketing Director. Jordan Wright will act
as Community Liaison, Managing Partner and Executive Director. Additional
management will be hired in order to operate the store for 40 hours per week.
Benefits will be provided to all employees consistent with federal and state laws.
Employees- Employees will be hired based on knowledge of electrical,
woodworking and general DIY craftsmanship. Those who posses the desire to
become certified in various areas will be educated and certified. All employees will
be trained on the use of the various tools and will also be certified in First Aid.

Operating Hours- Operating hours will run from 11AM to 9PM Monday
through Friday and 9AM to 8PM Saturday, Closed on Sunday. The facility can be
rented out for private classes/parties with a focus on various DIY projects.
Services Provided- Supplies will consist of an array of tools (see supply
spreadsheet located in the Budget section), fabrics, lighting kits, paints, stains, WiFi,
DIY classes, knowledgeable personnel, drinks and snacks.
TECM 2700 REPORT

Cost of Membership- Members will pay a monthly fee of $25 to use the facility
whenever they would like. Storage of unfinished projects will be provided to
members as will free monthly classes. Guest passes will be given out to encourage
additional membership to the store. Individuals who seek to use the store on an at
will basis will be asked to pay a $10.00 fee for each use of the facility.
Use of supplies- Tools will be provided free of charge, however will be checked
out by each individual. All other supplies will be charged a small fee based on
actual usage.
Startup Costs- Based on the budget sheet the initial startup cost will be
approximately $100,000.00. As of 11/24/14 current savings for the project total
$45,000.00 and a recent application for a small business loan covers an additional
$40,000.00. We are currently below projected startup figures by $15,000.00
however we are looking for an investor who will supply $20,000.00 with a 5%
partnership into the company affording a payout of 3% of the monthly profits or a
monthly loan repayment with a 2.5% fixed APR over the course of the loan.
Overhead Costs- Per the budget sheet, dependent on the selected location
overhead costs run at about $10,000.00 per month or $120,000.00 per year.
Break Even- In order to break even, 4,000 people would need to sign up for a
membership at $25.00 per month in a year. This equates to approximately 2% of
the Grapevine population. This does not include single use individuals, the sale of
drinks and snacks, or the sale of supplies.
Marketing- Marketing will consist of utilizing Groupon, Pinterest, Blogs,
Facebook, attending local Craft Fairs, and becoming involved in all aspects of the
local community.
Sustainable products and services- using biodegradable paints, natural
fabrics, reclaimed items and local goods such as wine and business recyclables will
strengthen the relationship between the store and local businesses as well as create a
eco friendly company.

TECM 2700 REPORT

Design

The design of the space will allow for 6 work stations approximately 3x4 spaced 4
apart to allow for free movement within the facility. The work stations will be made
out of reclaimed wood and will house a locker for individuals to lock their
belongings. The floors will be a finished and stained concrete, the walls will be
painted white with large artwork to inspire DIY creativity. There will be TVs
showing various HGTV/DIY popular shows. A main work station 10 in length
and 3 wide will be at the front near the entrance which will host various instructors
as well as employees. POS stations will consist of iPads allowing customers to sign
up quickly in order to become a member or to pay. Additionally there will be an
app available for members and non members to reserve a work station in advance
as well as to keep up with the store calendar of events and to RSVP.
The general feel of the store will be industrial in nature. A drink and snack bar will
be located near the front entrance. There will be a tool supply corner as well as
shelves with various paints, stains and fabrics available. Additional items such as
lighting kits, brackets, hinges, screws, nails, et al will be available. Items provided

TECM 2700 REPORT

by the store will be charged to the client. Clients will be able to check out tools at
the front desk and will be charged if they are not returned.
Before clients are able to use the space they will be asked to sign a waiver, also
housed on the iPad which will mitigate the risk of lawsuit for the business. A
lawyer will also be utilized for various other parts of the company structure and
liability purposes.

TECM 2700 REPORT

Present Market and Competition

The present market for this type of business is incalculable at this time. There are
no known businesses with similar business goals or available goods and services.
Similar DIY small businesses maintain a presence in the surrounding area of
downtown historic Grapevine such as BYOB painting shops, shabby chic boutique
stores and artisan cafes.
Within a few hours of Grapevine lies one of the largest flea markets in the country
bringing more than 7,000 vendors and over 400,000 people on a monthly basis.
Many of the individuals attending this event draw from experience in DIY projects
and are typically seeking out ideas of their own. Grapevine plays host to several
craft fairs and community celebrations. During the summer months the local
farmers market draws individuals from the city and surrounding area. Based on
the interests of the local community and surrounding cities the company brings a
unique solution to a popular yet expensive hobby.

Canton Trade Days

TECM 2700 REPORT

Marketing Plan
Marketing the business will fall primarily to social media and word of mouth.
Brochures will be available at local businesses as will newsletters consisting of useful
tips/tricks and dates and times for available classes.

Membership:

NOVEMBER 30, 2014

Ullamcorper libero
Consectetur Adipiscing

Donec vestibulum dictum nunc, eget hendrerit

elit porttitor ac. Quisque id cursus mauris. Duis id
metus tincidunt, bibendum velit nec, mattis
sapien. Nam congue elementum id vulputate
lacus. Nunc luctus neque et quam blandit iaculis.
Curabitur tempus lorem quis felis venenatis, eu
egestas odio ornare.

Whats
Happening?
UPCOMING CLASSES
BEGINNING 12/1

MAPS! GOOD FOR

MORE THAN JUST
DIRECTIONS!

SUITCASE TURNED
CHAIR
RSVP: ONLY 12 SPOTS

Vivamus id blandit ante. Donec congue lacus vel

elementum fringilla. Cras sollicitudin congue orci.
Ut sit amet nisi eros. Mauris suscipit, mauris sit
aviverra convallis, nunc nisi gravida tortor, et
posuere odio sapien ac eget rutrum.

WINE BARREL
TURNED DOG BED
TUTORIAL

Fusce quis cursus mi.

NEWSLETTER

Proin sodales, orci nec feugiat sollicitudin, nulla

sapien ultricies tortor, ut tincidunt augue libero ac
odio. Nam congue elementum id vulputate lacus.
ultricies. Nunc luctus neque et quam blandit
iaculis. Pellentesque aliquam quis ligula quis
commodo. Venenatis, eu egestas odio ornare.
Vivamus id blandit ante. Donec congue lacus vel
elementum fringilla. Sed et porta purus, id
vulputate lacus. Suspendisse gravida massa in
ante vehicula elementum. Nulla a nulla dui. In sed
diam nibh. Morbi orci tincidunt at tellus. Vivamus
vulputate libero eu accumsan auctor.

Lorem ipsum dolor sit amet, consectetur

adipiscing elit. Donec vestibulum dictum nunc,
eget hendrerit elit porttitor ac. Quisque id cursus
mauris. Duis id metus tincidunt, bibendum velit
nec, mattis sapien. quis leo eget rutrum.

Flip IT! From

Trash to
Treasure

Ut sit amet nisi eros. Mauris suscipit, mauris sit

amet viverra convallis, nunc nisi gravida tortor,
posuere odio sapien ac dui.

Suspendisse tempor velit ut rhoncus vehicula.

Duis purus ante, molestie et placerat id, dictum
semper neque. Aenean vitae eros eget lacus
bibendum molestie. Ut consequat aliquet
interdum. Fusce quis cursus mi. Proin sodales,
orci nec feugiat sollicitudin, nulla sapien ultricies
tortor, ut tincidunt augue libero ac odio.

Quisque id cursus mauris. Duis id metus

tincidunt, bibendum velit nec, mattis sapien.
Nam congue elemluctus neque et quam blandit
iaculis. Curabitur tempus lorem quis felis
venenatis, eu egestas odio ornare. Duis id metus
tincidunt, bibendum sapien.

Flip It: turning trash to treasure

Lorem ipsum dolor sit amet, igula suspendisse nulla pretium, rhoncus tempor
fermentum, enim integer ad vestibulum volutpat. Nisl rhoncus turpis est, vel
elit, congue wisi enim nunc ultricies sit, magna tincidunt. Maecenas aliquam
maecenas ligula nostra, accumsan taciti. Sociis mauris in integer, a dolor
netus non dui aliquet, sagittis felis sodales, dolor sociis mauris, vel eu libero
cras. Faucibus at. Arcu habitasse elementum est, ipsum purus pede porttitor

DIY is no longer a
chore! Its a nice
place to go for
advice and
encouragement!

!1

In terms of Social Media, a review

of usage among Americans on
Facebook, Twitter, Groupon,
Pinterest and Instagram indicate
that to be successful, even as a
small business involvement in
these forms of marketing are
beneficial.

As of 2014 Groupon boasted over 51.8 million users as of Q4, 42% of those being
in North America while Facebook users surpass well over 1 billion users in 2014.
Pinterest and Instagram users are fewer with however maintain a rapidly growing
fan base. Involvement in each of the social media sites would draw quite a bit of
traffic to help gain member customers.

TECM 2700 REPORT

Involvement in the community would consist of participating in the local fairs and
farmers markets as well as hosting various DIY competitions. How to newsletters
will bring attention to the idea of sustainability through the repurposing of various
items.
The opening of the store will coincide with a local town fair in order to draw
additional attention to the store opening. Fliers and coupons will be passed out as
well as DIY instruction sheets. Branding will extend to merchandise, such as Tshirts, tote bags, pens and magnets.

TECM 2700 REPORT

Management and Organization

There are six types of company registrations, Sole Proprietorship, Limited Liability
Company, Cooperative, Corporation, Partnership and S Corporation. Based on
the structures of each of the registrations this company will be registered as a
Limited Liability Company LLC. An LLC is a legal structure that provides the
limited liability features of a corporation and the tax efficiencies and operational
flexibility of a partnership. The owners are referred to as members and
depending on the state the members consist of a single individual or owner or two
or more individuals, corporations or other LLC companies. All profits and losses
are transferred through the company to each member of the LLC.
Below are the steps to forming an LLC:
1. Choose a business name.
2. File the Articles of the Organization.
3. Create an Operating Agreement.
4. Obtain Licenses and Permits.
5. Hiring Employees.
6. Announce your business.
The company has been named Flip It however given that the Articles of
Organization and other legal documents have not yet been filed the name is subject
to change. Once the relationship between the investors and business have been
determined the Articles of Organization will be filed and Licenses and Permits will
be obtained. An account for the company will be established at Fidelity
Investments in order to centralize the companys financial portfolio and 401K plans
for the Exempt employees.
The employment notice will be listed on Monster seeking individuals with at least
10 years of experience in successful flipping, construction or electrical certifications.

TECM 2700 REPORT

A staff of 2 will be needed to run the store at any given time. For the first year of
operation Jordan and I will act as the managers and full time employees to save on
operating costs.
Software currently exists for iPad business owners to keep track of financial reports
in accordance with state and Federal LLC guidelines as well as write employee
schedules, take payments and establish memberships. The iPads will be used for
the signing of waivers prior to being given use of the shop.

TECM 2700 REPORT

Financial Plan and Data

Initial Startup is projected to be approximately $100,000.00 to purchase a
dedicated space, renovate and purchase the initial inventory. With a current
business savings of $45,000.00 a small business loan of $40,000.00 and the receipt
of investor funding in the amount of $20,000.00 the business should be able to
open within 1month of purchasing the space.

Inventory Checklist and Budget

Inventory

Cost

Total Cost

Wrench Set

12

$40

$480

Hammer

12

$15

$180

Pliers

12

$8

$96

Safety Glasses

20

$3

$60

Saw

$400

$400

Hand Saw

$16

$48

Fabric

$150

$1200

Paint

30

$25

$750

electrical kits

20

$3

$60

Continued:

Total Cost:

TECM 2700 REPORT

$76,000

Break-Even Analysis
COST VS. SALES
Fixed Costs

$10,000

Variable Cost per Unit

$0

Unit Price

$25

Unit Increments

30

BREAK-EVEN POINT

400

$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0

30 60 90 120 150 180 210 240 270 300

Units Sold
Sales

Total Costs

UNITS SOLD

SALES

TOTAL COSTS

PROFIT/LOSS

$0

$10,000

-$10,000

30

$750

$10,000

-$9,250

60

$1,500

$10,000

-$8,500

90

$2,250

$10,000

-$7,750

120

$3,000

$10,000

-$7,000

150

$3,750

$10,000

-$6,250

180

$4,500

$10,000

-$5,500

210

$5,250

$10,000

-$4,750

240

$6,000

$10,000

-$4,000

270

$6,750

$10,000

-$3,250

300

$7,500

$10,000

-$2,500

330

$8,250

$10,000

-$1,750

360

$9,000

$10,000

-$1,000

390

$9,750

$10,000

-$250

420

$10,500

$10,000

$500

450

$11,250

$10,000

$1,250

TECM 2700 REPORT

References
http://www.goodhousekeeping.com/home/crafts/upcycled-home-decor#slide-6
http://www.bruzzesehomeimprovements.com/secrets-of-upcycling-success/
http://www.diyinspired.com/upcycled-lighting-ideas/
http://www.loopnet.com/Listing/18983882/1271-William-D-Tate-GrapevineTX/?linkcode=31060
http://commercialsearch.realtor.com/commercial-detail/129-s-mainst_grapevine_tx_76051_P145407
http://legendmarielu.wikia.com/wiki/File:No_image_available.jpg
http://www.thefiftybest.com/wine/the_wine_detective/texas_wine.html
http://www.chirotexas.org/tca-annual-convention-2014-grapevine
http://shechive.files.wordpress.com/2012/12/upcycling-ideas-16.jpg
http://www.togetherweteach.com/TWTIC/uscityinfo/43tx/txpopa/43txpa7.htm
https://brightnest.com/posts/the-most-buzzworthy-brightnest-posts-of-2012
http://www.academiabarbatilor.ro/suport-pentru-bicicleta-format-din-particomponente/
http://blog.hgtvremodels.com/2014/03/07/blog-cabin-2014-upcycled-kitchenand-bathroom-lighting-yay-or-nay/
http://seekingalpha.com/article/2310115-groupon-has-an-unsustainable-businessmodel
http://removeandreplace.com/2014/05/08/30-fantastic-diy-wooden-palletprojects/
https://www.sba.gov/content/limited-liability-company-llc
http://www.instructables.com/id/Reclaimed-Wood-Table/
http://glamnicism.blogspot.com/2011/07/fabric-stores-haberdasheries-and.html
http://www.visitcantontx.com/

TECM 2700 REPORT