Business Plan

Bella Soul Mosaics

Custom Art & Décor

2819 Vahan Court

Lancaster, CA 93536

661-992-1818

Kellie J. Moore Owner, Artist, Creator

This document is confidential.

Table of Contents

Table of Contents. 3

Executive Summary. 4

Vision/Mission Statement and Goals. 5

A. Vision Statement 5

B. Goals and Objectives. 5

C. Keys to Success. 5

Company Summary. 5-8

A. Company Background. 5

B. Resources, Facilities, and Equipment 5

C. Marketing Methods. 6

D. Management and Organization. 6

E. Ownership Structure. 7

F. Social Responsibility…………………………...…………………………………....7

G. Internal Analysis. 7-8

Products and/or Services. 8

Market Assessment 8-10

A. External Analysis. 9

B. Customers. 10

C. Industry Analysis……….…………………………………………………… ……10

D. Strategic Alternatives. 10

Strategic Implementation. 10-12

A. Production……………………………………………………………...…….. ..….10

B. Resource Needs……………………………………………………...………….10-11

C. Sourcing/Procurement Strategy……………………………………………..……...11

D. Marketing Strategy… ………………………….………………………,,,…….11-12

E. Performance Standards……………………………………………………………..12

Financial Plan. 12

A. Financial Projections. 12-14

Executive Summary

Vision/Mission Statement

Creating one-of-a-kind mosaic designs to show off a unique spirit, and the beautiful soul, of people and communities.

Company Summary

Bella Soul is a family-owned and operated custom mosaic design, creation, and installation company. They range in size from small decorative pieces also known as micro-mosaics to larger commissioned projects such as murals, statues, and interior and exterior work.

Products/Services

Mosaic creations range in size from small decorative pieces also known as micro-mosaics to larger commissioned projects such as murals, statues, and interior and exterior work including pools, fountains, restrooms, kitchen counters, backsplashes, flooring, and accent work.

Market Assessment

Bella Soul’s market is characterized by interest and lifestyle. Because of the quality, creativity, and uniqueness. The clear segmentation in the market is psychographic, behavioral, and demographical, based on the importance of quality, creativity, and uniqueness.

Strategic Implementation

Value of the work in each piece will be captured in the breathtaking design and artistry of the creator. Our artist talent design style and originality must be a fit for Bella Soul standards to be part of our team. Utilizing all social media platforms, personal and professional business connections, and other creative advertising sources to amplify positive visibility. Accepting commissioned, and volunteer projects to show community connections.

Expected Outcomes

With Bella Soul Mosaic’s talent, hard work, and dedication to creating unique art envisioned by our clients, private parties, and subcontractors, we expect to have ownership of a prime storefront boutique location with an onsite workshop, classroom, and office within 5 years. Operating successfully and with profitability levels leading to moving into the next phase of business growth including larger commissioned work, exclusive subcontracts, and a signature line of products available for purchase online.

Vision/Mission Statement and Goals

A. Vision Statement

Creating one-of-a-kind mosaic designs to show off a unique spirit, and the beautiful soul, of people and communities.

B. Goals and Objectives

To create a product that brings a fresh new look to art and style into today's homes and businesses that encourages more creative and diverse thinking. To bring our unique brand and family-owned business into mainstream America, and possibly. To provide workshops and classes for people of all age groups that encourage comradery within our community.

C. Keys to Success

Staying focused on your goal(s), creativity, technique know-how, team support, and talent all pitched in collectively, love for people, community, and art. Business sense, customer service, listening, sticking to deadlines, and communication.

Company Summary

A. Company Background

Bella Soul was founded back in 2017 after years of mosaic work as a hobby to make pieces for family and friends. The moment that pushed Bella Soul into a business direction came after having pieces on display at a local flea market as a sample to show what Bella Soul can do. The overall feedback was exciting and very encouraging. From that point on I became obsessed with locating new material to create with. Meeting people within the art community and finding resources across the country. I also invested many hours in researching more techniques and understanding how different materials worked together for various projects.

B. Resources, Facilities, and Equipment

Over the past three years, I have searched, researched, and located various materials across Southern California. I have purchased supplies from various stained-glass manufacturers, craft stores, jewelry distributors, home improvement stores, thrift stores, garage & estate sales, and even online distributors countrywide. I have purchased finer and harder-to-access materials like Mexican Talavera tile, or Italian Smalti online. Other resources include material donations from friends and family such as wood, stone, grout, mortar, and other suitable substrates (base) to build mosaic onto. In most cases, I pay in return by creating a unique piece specifically for that person or family. We currently work out of a workshop created in our home. Tools have been acquired over time in addition to several that we have on hand. Tumblers, nippers, glass cutters, soldering irons, grinders, glue, oil, grout, tile, glass, jewelry, and all other material that have been purchased, were done with our personal finance account.

C. Marketing Methods

Annual sales volume is roughly $100,000 based on 720 square feet of mosaic work at $140 per square foot. $125 to $500 per square foot and the price is determined by many factors including size, materials, and complexity of the design. Delivery and installation are priced separately.

Marketing methods include creating a custom logo and advertisement conversation pieces for business waiting rooms or storefronts at no charge with the stipulation of our business info being credited for the artwork and business cards available for interested customers. Sponsorship of local youth sports teams or events. Attending home shows, craft shows, art shows, and festivals featuring smaller scale micro mosaic pieces, samples for larger contracting jobs such as interior or exterior custom home designs for pools, flooring, backsplashes, or for business or community-scale projects and murals. All mainstream social media platforms will be utilized for marketing with access to a portfolio of all past work to refer to, along with hyperlinks to BellaSoulMosaics.com for more information.

D. Management and Organization

Management Team:

Kellie Moore - Owner, CFO, CEO, community project leader, marketing, designer, artist, creator, muralists, and installation.

*20 years of operations & event management, planning, and guest relations. 30 years of art & design working with a variety of mediums. 10 years collectively working with youth in sports and theatre. Built priceless connections over the years with local government, media (radio & newspaper), Chamber of Commerce, and joining a local community marketing team.

Frank Lancaster- Co-owner, designer, artist, substrate creator/builder, co-collaborator, project coordinator, site foreman, acquires city permits

*26 years working in the Motion Picture Industry Paint, Art, and Lighting Departments collectively. Extensive knowledge in binding, bonding, cement, and mortar reaction with various mediums and climates. Experience in operating construction machinery and equipment. Has built a large support base and numerous material connections over the years.

Crystal Moore- Operations Manager, inventory control, preliminary client correspondence, human resources, accounts receivable & payable, marketing, website, and social media maintenance.

*15 years of operation management, department nutritionist, and customer relations experience during her career with a regional hospital. Also worked for a large medical insurance company providing excellent customer service skills, attention to detail, and takes great pride in leadership and strong work ethics.

Gracie Lancaster- Operations Assistant, Mosaic Artist Apprentice, product organization and maintenance, inventory, volunteer correspondent, shop upkeep, installation

*3 years of art experience and design education. Excellent leadership skills and a strong work ethic. A talented artist an eye for design.

E. Ownership Structure

Kellie Moore Lancaster & Frank Lancaster are the primary stakeholders for Bella Soul Mosaics. The legal form is a married couple jointly owns and operate a business as a sole proprietorship.

In some cases, there are requirements for permits through the local city hall depending on the project location, but those are all on a case-by-case basis. Mainly these are needed for larger scale, city mural projects.

F. Social Responsibility

Many of the tesserae materials used for projects are recycled or repurposed materials. When using any kind of cutting technique, all safety precautions are taken. Eye protection, gloves, aprons, and face masks are required and provided on-site for each employee. A dedicated vacuum system with industrial filters is used for cleanup to minimize any chance of glass or tile particles in the air. There are designated disposal receptacles for larger cut waste. All general bonding materials used for mosaics are handled with the necessary care. Proper ventilation and/or safety equipment are used daily. On rare occasions that there is a stronger chemical needed to be used, Frank is certified to properly handle them. If necessary, for more use, any employee must obtain certification to use these chemicals. All new employees will be trained through paid apprenticeship programs. During this time, they will shadow each employee to understand the operation process and how everything fits into place. The use of all tools will be trained extensively until the trainee shows proper use and safety before working unsupervised.

All designs and art will also be evaluated to see if they will be a good addition to Bella Soul. After the apprenticeship, a meeting between the management team will be held, and it will be decided then if they will be promoted to a permanent designer/artist position. A minimum of once per year, a community beautification project will be created somewhere appointed by the event coordinator. Generally funded by local businesses and donors for said communities, the mosaic murals strive to incorporate elements, businesses, local traits, and services to bring more positivity to the communities. All volunteers will be provided the proper safety equipment for the project after a brief meeting explaining the process and what is needed to be done. Any events involving local youth or special needs projects will need a minimum adult to child ratio, which will be decided during planning. Once per month Bella Soul will host a mosaic workshop for youth interested in learning the craft, free of charge.

G. Internal Analysis

Bella Soul Mosaics is set above the rest with its strength in creativity and the passion that goes into each piece or project. We take pride in our ability to take a vision of a client and then turn it into reality. The current financial position of Bella Soul Mosaic is not yet to its full potential. We have a limited number of designers and workspace. As the orders progress and more artists are hired, our productivity will increase allowing us to relocate to a larger facility and workshop. Having a storefront with a gallery featuring some of our pieces for sale and space to perform workshops for future opportunities are considerations as our client base and business grows.

We are a family-owned and operated business. Having our business workshop, storefront, and home all on the same property would be ideal. Commuting a short driving distance between the shop and home are acceptable options as well.

Products and/or Services

Bella Soul is a custom mosaic design, creation, and installation company. They range in size from small decorative pieces also known as micro mosaics to larger commissioned projects such as murals, statues, interior, and exterior work. In addition to designing, and creating, our services also include installation. Our product is differentiated. Each project is one of a kind. This is done by creating these mosaics by hand, and most of the pieces are hand-cut or nipped. Some pieces, depending on the project are also tumbled smoothing down edges to give them all a more unique look.

Our product and service compare to others in a favorable light. Each of Bella Souls’ designs are well thought out and based on each client’s unique idea. Our Prices are competitive with other businesses within the industry. Our location is currently home-based. An online meeting can be conducted to speak with clients that are unable to meet in person. Commissioned work offsite will be additionally charged for traveling, if out of the local area.

Kellie has approximately 10 years of mosaic experience and over 3 decades of art experience working with a variety of mediums.

Market Assessment

A. Examining the General Market

Bella Soul’s market is characterized by interest and lifestyle. Because of the quality, creativity, and uniqueness. The clear segmentation in the market is psychographic, behavioral, and demographical, based on the importance of quality, creativity, and uniqueness. In many other custom art businesses, Bella Soul recognizes the lack of service provided by other commissioned artists to create a vision for someone else.

Growth potential for each segment can be promising for all four categories, however behavioral and psychographic segmentation shows the most potential for profitable growth. Demographic segmentation shows potential as well, especially when looking to expand the custom business with a larger commissioned work base. In those cases, it is important to find ways to collaborate with other businesses that provide a service that can complement Bella Soul and the same in return. For example, XYZ Pool Builders, build beautiful inground pools and spas with beautiful trim work and designs. In some cases, customers ask for more extravagant mosaic designs or tile work in specific areas of the pool and spa. In this case, if a partnership for collaborating has been established, then XYZ would provide that part of the build. The same would be done the other way around when someone is commissioning a mosaic artist, but also needs to have a pool built or refurbished. Bella Soul would recommend XYZ. Perhaps advertise on each other’s websites, and/ or showrooms.

Based on the current market analysis, industry competition is a minimal threat due to the lack of skilled mosaic artists, and companies. Current market trends exhibit colorful, unique, and intricate artistry. People like to be noticed and complimented for their style and decorating choices. Bold, bright, artwork, or accents with pops of color that give an expensive, one-of-a-kind look are often well sought after.

B. Customer Analysis

Our customer base majority consists of creative individuals, young or middle-aged adults, new homeowners, or renovators, all within the middle to the upper-income range. Typically looking to have a unique piece of design to show off in their home as a conversation starter or compliment piece that they can credit as their design “idea” and made into a reality by Bella Soul Mosaics.

Bella Soul offers a variety of artwork and services. Artwork, tile work including home flooring, countertops, backsplashes, furniture, fountains, spas, pools, sculptures, murals, and so much more. Each piece is made to order and will always be one of a kind. The difficulty in retaining a customer comes from getting visibility. Once that is accomplished the artistry work and quality will speak for themselves. The costs to support a client varies based on the work commissioned, and the materials requested. Current market prices will be taken into consideration during the estimate if there is a substantial price difference in material.

C. Industry Analysis

The industry analysis for Bella Soul is a small and specific market. These are currently artistic communities, middle to upper-income communities, or other businesses looking to add a decorative edge to the aesthetics in or outside of their business location. It is our goal to branch out into the open market by developing a more affordable signature line available and accessible through select locations first locally, then expanding from there provided we can maintain the integrity of the Bella Soul Mosaics brand. There is no plan or place for mass quantity production.

D. Strategic Alternatives

A strategic alternative that Bella Soul Mosaics can do that they aren’t doing now is creating a signature line available for purchase directly from www.BellaSoulMosaics.com, from our store location, or from distributors that we have secured a contract to sell within their locations onsite and online.

Another alternative is advertising in more unconventional ways. Vehicle wraps, artistic piece donation for various raffle or drawings giving a short debut of information about what our company offers in addition to offering items on sale on-site during the event, for creating a company-specific advertisement for other businesses free of charge with the stipulation that we get to have our company credited and contact information located somewhere tastefully on the piece.

Strategic Implementation

A. Production

Our mosaics will be created by a talented and experienced artist. Produced by hand with various products available, and those ordered specially by commissioned clients and made to order based on each unique need or creative dream. The value of the work in each piece will be captured in the breathtaking design and artistry of the creator. Our artists all must possess the same type of style and quality of Bella Soul standards to be part of our team. It is because of this that we can maintain a vibrant and unique edge above our competitors.

The technology used will vary based on each product we create in addition to the daily use of the tools and devices we have on hand. Over time we expect to purchase more advanced technology to keep up with the demands of our customers, inventory, accounting, calculating, etc. For now, we use P.C.s for use of or in conjunction with copy machines, smartphones, scanners, color matching tech, Microsoft Adobe, product calculation apps, along with various other computer applications including one on one or group conferences online when necessary for collaborating or discussion. Skill saws, routers for substrate cutting, electric etchers tile cutters, and skewers for tile or other tesserae cutting needs. Forklifts, scissor lifts, boom lifts, cement mixers for a larger mural, statue, or other commissioned projects. Soldering tools, tumblers, and grinders depending on each project’s individual needs.

Growth options that will be used for expansion will be the storefront, expanding creative services available to offer, and developing a signature line of products for Bella Soul available for purchase online, or onsite at our location. Also expanding this line into selling in larger distributing outlets, but still maintaining the integrity of the Bella Soul brand. Replication can only be possible to a degree. Each piece will maintain its individuality and uniqueness, although several versions of one item could be available for sale at one location.

B. Resource Needs

1. Human

Skills that are needed to be part of the Bella Soul Team include passion, care, creativity, patience, hand strength, exceptional listening skills, and the ability to take a client’s vision and turn it into a reality.

Physically it is important to have the hand strength to operate the manual nippers, cutters, etc. It is also imperative to maintain a healthy back and core strength to endure long hours of position holding during tesserae placement.

2. Financial

Have started by using our personal finances and inventory on hand that has been strategically accumulated over the past few years. Apply for a small business loan, and possibly turn to various family members to help for the next step of expansion if necessary.

3. Physical

The type quality and quantity of physical resources that we require will have to maintain a certain standard that will maintain the luster and longevity of our pieces. Wood, glass, tile, shell, Italian and Mexican smalti, stone, jewelry, grout, glue, sealer, hardware, display material, drying clamps, hangers, fans, brushes, paints, stain, safety equipment (gloves, safety glasses, masks), and the various tools required for each job. Unless the client asks for a specialty premium material, the general cost will be close to the industry standard.

C. Sourcing/Procurement Strategy

Our sourcing and procurement strategy would be discounts earned by organization memberships, exclusivity promises to certain vendors for products, and longtime customer relationships built. Most of our distributing resources are local or within a one-hundred-mile radius. This makes the ability to see and feel the material before purchasing a much better business choice. On some occasions where this is not an option, our decisions are and will be based on referrals from other trusted sources.

D. Marketing Strategy

The initial sales plan involves selling and advertising through local home shows, flea markets, fairs, festivals, antique and unique boutiques like stores, our website www.BellaSoulMosaics.com and other social media platforms. Word of mouth commissioned work for a trade of advertisement, mobile advertisement of my personal vehicle, gifts, and cashing in on any owed favors earned over the years. Team sponsorship, and free advertising giveaways including keychains, decals, pens, t-shirts, etc.

We expect to use contract business in the earlier years of developing our business and maintain our primary focus, however, once the storefront and signature brand are developed, we will open to the open market as well for variations of different items, each different in from the last by continuing with the handmade, hand-cut process.

1) Hedging, forward pricing, options

Early in our business development will have to vary based on our client’s requests and what we have in-house and on hand. As larger commissioned work like murals, pools, fountains, etc., develop, larger bulk orders will increase for future orders opening more relationships with material sources, and future discounted rates.

2) Contracting

If anything is ever outsourced it will be done by referral to the client directly if requested, and a separate contract will have to be done between those two parties. This will then release liability from Bella Soul for services rendered outside of our professional scope with another company. Bella Soul will work closely with other contracted companies to work out and sync color pallets, material types scheduling, and timelines.

3) Insurance

A. Owner's policy: This includes property insurance, vehicle coverage, liability insurance, flood insurance, business interruption,

and crime insurance.

1. Liability insurance will be used to help protect Bella Soul in the case of the following:

2. Property Damage: a client’s property is damaged and needs to be replaced, this insurance can help cover the costs of replacement or repairs

3. Bodily Injury: someone besides an employee is injured on your property, this coverage can cover medical expenses or damages

4. Product Liability: anything produced or sold by Bella Soul that harms anyone, this insurance can help pay legal expenses w/ product liability lawsuits or medical expenses if an injury is caused

B. Workers Compensation: In the event, an employee is injured while on the job, this will cover the cost of medical treatment and r r recovery or rehabilitation.

E. Performance Standards

It is imperative that Bella Soul Mosaics maintain a specific look and feel to all pieces and commissioned work completed under our brand. Each artist and collaborator will go through a long apprenticeship, training, and trial period process to ensure Bella Soul’s look and feel quality before being given full creative freedom.

Financial Plan

A. Financial Projections

Initial funding for Bella Soul will be out of pocket. This is the time that product is being created in-house for online, or event sales. These are also our opportunities to create new relationships with suppliers, buyers, and venues. Once there is a need for expansion, investigate borrowing from family, or applying for a small business loan. This includes the possibility of any special programs for small business owners,

women, or anything else being offered that can be qualified for.

The desired debt to an equity position, if using investors, would ideally be 1.5. However. If necessary, to borrow more for the opportunity to expand, the highest would be 2. This would only be in the event of using investors, for business expansion. Leasing will be considered, a financial strategy to show less debt to equity when applying for a loan. This is to feel out a specific community, to see if our storefront is in the right market area for exposure before a full commitment to a mortgage is made.

Managing any financial risks that Bella Soul faces, will be handled by keeping an emergency fund available for this very purpose, to cover necessary operating expenses for a minimum of a few months. Maintaining the proper business operating insurance and the location the items are being created. Mr. Lancaster will continue to work until he qualifies for retirement, or Bella Sound is financially sound enough for him to retire early. The Lancaster family will continue to utilize the pension and health plan provided through Mr. Lancaster’s union. Mrs. Lancaster is currently working on obtaining a degree in business management with a focus on cyber study. Fortunately, this field presents many opportunities to work freelance.

Operating and developing cash flow budgets and spending limits would have to be a combination of research forecasting based on competitor numbers, inventory flux, initial spending ceiling, and estimated costs. Studying community spending trends, and any untapped potential is very promising. Once these are established, sit down with a financial advisor to develop a strategy, and appoint an accountant to help get our finances in order. Using software, consistency, and sticking with a budget are key.

Certain assumptions that underlie our projections are the demand for our commodity, the economic stability in the next 5 years, building a strong customer base with interior designers, real estate investors, and general homeowners, and developing strong relationships with suppliers that will bring wholesale costs.

All financial aspects of Bella Soul will be monitored. In the first year, I will be working closely with a financial planner, and an accountant to create an efficient business operating system. This will also help layout any trends, areas that can be finetuned or cut back, or if to pursue further funding for necessary expansion. Finding and developing the right software to use for our internal system that works the best for Bella Soul, will also be part of the first-year research and development for future business monitoring. For example, payroll/commissioned work, accounts receivable and payable, inventory, contact database, advertising, designs, contracts, leases, licenses, insurance information, social media access, and a possible network with assigned secure login information and various access levels. Most of the daily monitoring will be followed by our office manager, and I will be given reports to keep me informed. This allows me to have time to focus on designing and have a trusted business manager handling the daily operations.

The level of business that Bella Soul intends to shoot for is not quantity, but quality. We pride ourselves on exceptional designs, beautiful work, and the ability to bring a vision by a client to reality. Our customer service, client relationships, and family-oriented business are our niche. The goal is never to turn Bella Soul into a major corporation. Doing this could compromise the integrity of the foundation that it has been built. Bella Soul would grow on the premise of commissioning large jobs. They could be residential, or commercial. The possibilities are abundant. The key is keeping a sound reputation, and gaining exposure through advertising, word of mouth, and visibility. Efficiency would be attained by keeping a strong timeline. Holding clients to appointments, requiring a certain amount of payment upfront before ordering material, giving each project ample amounts of time to complete, making sure our staff is all taken care of, having weekly meetings to address any concerns, keeping strong open lines of communications with clients if any event requires modification or rescheduling.

B. Contingency Plan

If we cannot follow through with our primary plan, our contingency plan will be to cut back on all applicable expenses. Create a signature line of smaller pieces to sell exclusively online or at events. This will help with creating more exposure. Do more charity work in the community and offer more classes free or for free. Offer piece work to businesses in exchange for your work to be seen and given credit somewhere within the piece and contact info available if asked. Downsize to a different location, either less expensive, without a storefront, or a home base workshop.

In preparing for an emergency in our business, we will have a sit-down meeting and draw up a plan to discuss everyone’s role. In some cases, this will be required training, finetuning, and tightening up with security. There will be an action plan in place that will be posted on-site to refer to. There will be the proper safety equipment available onsite and up to code with the city, the fire department, the health department, and OSHA. A stocked first aid kit, fire extinguishers, proper chemical handling manual, safety equipment such as protective eyewear, gloves, mask, and respirators. All mechanical equipment will be kept in proper safe working order. Staff will need to be trained properly on using some equipment before being allowed to operate.

If something happens to one of the key members of the management team, owners and managers will be crossed trained to step in with ease in the event of emergencies, illness, personal time, or vacation.