Writing a Zip Line Business Plan [Sample Template]

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A zip line business is a business that designs and produces different types and sizes of zips for the tailoring and fashion industry. These zips are sold wholesale to distributors who in turn sell them to retailers. Zip or zipper as it is popularly called is a device used to open and close parts of clothes and bags.

Zippers are used as a fastening component to bind the edges of an opened material or other flexible material, such as a bag. It is widely used for fastening and securing trousers, besides luggage and bags, sporting goods, footwear products, and camping gear such as tents and sleeping bags. Zippers no doubt are the most popular and preferred fastener compared to hooks, buttons, and other fastener solutions.

The Global Zippers market share was valued at USD 15.5 billion in 2020 and is expected to reach USD 24 billion by 2028. Available data shows that the top exporters of Zippers were China ($1.03B), Chinese Taipei ($224M), Japan ($208M), Hong Kong ($115M), and Italy ($113M).

Steps to Write a Zip Line Business Plan

Executive Summary

Shannon Hills© Zipper Production Company, Inc. is an American-based and licensed zipper production company that will major in designing and producing different types and sizes of zippers. Our Production facility will be located in a well-furnished, well-equipped, and centrally located facility in the heart of Chagrin Falls, Ohio.

Shannon Hills is the founder and CEO of Shannon Hills© Zipper Production Company, Inc.

Company Profile

a. Our Products and Services

Shannon Hills© Zipper Production Company, Inc. will be involved in the production of;

Different sizes and designs of metal zippers, nylon zippers, and plastic zippers
Different sizes and designs of flame-resistant zippers, chemical-resistant zippers, soft zippers, and printed zippers.

b. Nature of the Business

Our zip line business will operate the business-to-business model (wholesale distributors and in some cases business-to-consumer business model (retail outlets).

c. The Industry

Shannon Hills© Zipper Production Company, Inc. will operate in the zipper production industry.

d. Mission Statement

Our mission is to produce quality zippers that will be irresistible to a wide range of customers that cut across different strata of society.

e. Vision Statement

Our vision is to become the number one zipper brand in the United States of America.

f. Our Tagline (Slogan)

Shannon Hills© Zipper Production Company, Inc. – The Zipper Company That Cares!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Shannon Hills© Zipper Production Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to ur personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.

h. Our Organizational Structure

Chief Executive Officer (Owner)
Production Manager
Human Resources Manager
Accountant
Salesmen and Saleswomen
Machine Operators
Cleaners

i. Ownership/Shareholder Structure and Board Members

Shannon Hills (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
Garry Button (Board Member) 18 Percent Shares
Christian Norman (Board Member) 10 Percent Shares
Carty Bright (Board Member) 10 Percent Shares
Esther Bash (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

a. Strength

Competitive advantage in terms of cost, quality, and innovation
Ideal location for a zip line business
Highly experienced and qualified employees and management
Access to finance from business partners
Access to raw materials and supplies.
Reliable, and quality zippers.

b. Weakness

Financial Constraints
A new business that will be competing with well-established zipper production companies (the dominance of low-cost Asian manufacturers from China has intensified the competitive environment in the international market)
Inability to retain our highly experienced and qualified employees longer than we want.

c. Opportunities

The demand for cost-effective and quality zippers is increasing especially in the garment industry, thus offering new opportunities in the global zipper market.
Online market, new services, new technology, and of course the opening of new markets

i. How Big is the Industry?

Trust me, the market for zippers is massive in the United States of America. This can be supported by the fact that the Global Zippers market share was valued at USD 15.5 billion in 2020 and is expected to reach USD 24 billion by 2028.

ii. Is the Industry Growing or Declining?

Yes, the zipper line business is a growing business. The major factors driving the growth of the global zipper market include developing economies, consumption of products that use zippers (apparel, sporting goods, luggage & bags, camping gear, etc), and a rise in the number of manufacturing companies in Southeast Asia for apparel, textile, and fashion accessories.

iii. What are the Future Trends in the Industry

The future trends when it comes to the zipper line business will revolve around technology and fashion trends. It is important to note that new innovations in the zipper market include flame-resistant zippers, chemical-resistant zippers, soft zippers, and printed zippers which also help to boost the global zipper market. Preference for branded handbags, footwear, and luggage has increased the demand for premium zippers.

1v. Are There Existing Niches in the Industry? If YES, List them

No, there is no existing niche idea when it comes to the zip business but it is important to note that some zip lines may specialize in the production of metal zippers, nylon zippers, plastic zippers, flame-resistant zippers, chemical-resistant zippers, soft zippers, and printed zippers.

v. Can You Sell a Franchise of your Business in the Future?

Shannon Hills© Zipper Production Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving markets in the United States of America.

d. Threats

Competition within our market space (The dominance of low-cost Asian manufacturers from China has intensified the competitive environment in the international market)
Unfavorable government policy and regulations.
Steady wage expenses
Economic uncertainty
Liability problems
The regulatory agencies could change their regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

i. Who are the Major Competitors?

YBS Zipper Group
YKK Group
Riri
Kao Shing Zopper Co., Ltd.
IDEAL Fastener Corporation
Salmi Oy
Max Zipper Co.
LTD, KCC Zipper Co., Ltd,
SANCRIS Linhas e Fios Ltd
ZIP industries limited
Talon International Inc.
HHH Zipper
Perfectex Plus, LLC
Gerald Schwartz, Inc.
Carolina Tape & Supply Corp.
SC Fastening Systems
Allbrands.com
Broner Glove & Safety Company.
Dunlap’s Zippers
SBS Zipper.

ii. Is There a Franchise for Zip Line Business? If YES, List at least 20 of them and their cost

No, there are no franchise opportunities for the zip line business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Zip Line Business?

Yes, there are county or state regulations and zoning laws for zip line businesses, and players in this industry are expected to work with the existing regulations governing such businesses in the county or state where their business is domiciled.

Marketing Plan

a. Who is Your Target Audience?

i. Age Range

Our target market comprises adults above 18 years old who have the finance to purchase zippers from us.

ii. Level of Educational

We don’t have any restrictions on the level of education of those we will sell our zippers.

iii. Income Level

There is no cap on the income level of those we will sell our zippers to.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people with whom we want to sell our zippers.

v. Language

There is no restriction when it comes to the language spoken by the people we will sell our zippers to.

vi. Geographical Location

Anybody from any geographical location is free to purchase zippers from us.

vii. Lifestyle

Shannon Hills© Zipper Production Company, Inc. will not restrict any customer from purchasing zippers from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

Deliberately Brand All Our Official Vehicles and Delivery Vans.
Tap Into Text Marketing.
Make Use of Bill Boards.
Share Your Products Adverts in Local Groups and Pages.
Turn Your Social Media Channels into a Resource
Develop Your Business Directory Profiles
Build Relationships with players in the apparel, sporting goods, luggage, bags, and camping gear-based industry.

i. Traditional Marketing Strategies

Marketing through Direct Mail.
Print Media Marketing – Newspapers & Magazines.
Broadcast Marketing -Television & Radio Channels.
OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
Leverage direct sales, direct mail (postcards, brochures, letters, fliers), coupon books, billboards), and referrals (also known as word-of-mouth marketing).

ii. Digital Marketing Strategies

Social Media Marketing Platforms.
Influencer Marketing.
Email Marketing.
Content Marketing.
Search Engine Optimization (SEO) Marketing.
Affiliate Marketing
Mobile Marketing.

iii. Social Media Marketing Plan

Start using chatbots.
Create a personalized experience for our customers.
Create an efficient content marketing strategy.
Create a community for our target market and potential target market.
Gear up our profiles with a diverse content strategy.
Use brand advocates.
Create profiles on the relevant social media channels.
Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Shannon Hills© Zipper Production Company, Inc. will make sure it covers profits, insurance, premium, transportation, and the full package. All our pricing strategies will reflect;

Cost-Based Pricing
Value-Based Pricing
Competition-Based Pricing.

Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties such as referral partners, affiliate partners, and strategic alliances in the apparel, sporting goods, luggage, and bags industry to help refer customers to us.

Shannon Hills© Zipper Production Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need zipper-making raw materials means that Shannon Hills© Zipper Production Company, Inc. will operate an inventory strategy based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Shannon Hills© Zipper Production Company, Inc. will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer
Payment via bank draft

d. Return Policy, Incentives, and Guarantees

At Shannon Hills© Zipper Production Company, Inc., our customers are our top priority hence if you receive zippers that are different from your receipt, we will sincerely apologize. Please call us as soon as you notice an error in your order, so you can come and pick up the correct order.

For credit card payments, you will be refunded the sales price amount associated with the error and recharged for the new item’s price. For cash payments, you will be asked to pay the difference of the balance if the new order has a greater value than the order received in error.

In the same way, you will receive the difference of the balance back as credit for the new item if less than the order received in error. In some cases, we may offer you store credit. Your order will be a priority if you come to pick it up. In all cases, please return the order in the original container. Please, if you have any questions regarding the Return & Refund Policy, call our customer care officer.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our clients and investors, it will help us to first understand their needs, experiences, and pain points.

We will work with effective CRM software to be able to achieve this. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.

Overall, we plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainers deals that will enable the firm to boost our zipper sales and support revenue growth.

a. What Happens During a Typical Day at a Zip Line Business?

The production factory is open for the day’s work
The facility is cleaned and well-arranged
Factory swing into action (production of zippers)
Deliveries of orders are made
Stocks are taken and reports are written and submitted to superior officers
The business is closed for the day.

b. Production Process (If Any)

The production process of zippers starts by getting your raw materials ready. Thereafter, loops are made with strippers on each side and shaped into U-shapes by a heading and notching wheel that also forms heads on the teeth. Teeth are then sewn onto the cloth tape to make stringers. Woven zippers are made by weaving the plastic wire directly into the cloth which makes zippers of high quality.

c. Service Procedure (If Any)

The service procedure for a zip line business starts with a customer requesting supplies of zippers. Once the request is gotten, it will be processed and the order delivered to a location as requested.

d. The Supply Chain

Shannon Hills© Zipper Production Company, Inc. will rely on key players in the apparel, sporting goods, luggage, bags, and camping gear-based industry to patronize us or refer business deals to us. So also, we have been able to establish business relationships with wholesale supplies of zipper-making raw materials.

e. Sources of Income

Different sizes and designs of metal zippers, nylon zippers, and plastic zippers
Different sizes and designs of flame-resistant zippers, chemical-resistant zippers, soft zippers, and printed zippers.

Financial Plan

a. Amount Needed to Start your Zip Line Business?

Shannon Hills© Zipper Production Company, Inc. would need an estimate of $750,000 successfully set up our zip line business in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.

b. What are the Cost Involved?

Business Registration Fees – $750.
Legal expenses for obtaining licenses and permits – $11,300.
Marketing, Branding, and Promotions – $5,000.
Business Consultant Fee – $2,500.
Insurance – $1,400.
Rent/Lease – $155,000.
Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
Operational Cost (salaries of employees, payments of bills et al) – $40,000
Start-up Inventory – $150,000
Store Equipment (cash register, security, ventilation, signage) – $1,750
Furnishing and Equipping the Product Factory – $250,000
Website: $600
Opening party: $3,000
Miscellaneous: $5,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Shannon Hills© Zipper Production Company, Inc. will not build a new facility for our zip line business; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own production facility in a centralized location in the city.

d. What are the Ongoing Expenses for Running a Zip Line Business?

Zipper-making raw materials and supplies
Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
Salaries of employees
Trucks and vans maintenance
Insurance
Marketing costs

e. What is the Average Salary of your Staff?

Chief Executive Officer – $55,000 Per Year
Production Manager – $45,000 Per Year
Human Resources Manager – $35,630,000 Per Year
Accountant – $35,630,000 Per Year
Machine Operators – $27,100 Per Year
Salesmen and Saleswomen – $26,000 Per Year
Cleaners -$24,000 Per Year

f. How Do You Get Funding to Start a Zip Line Business?

Raising money from personal savings and sale of personal stocks and properties
Raising money from investors and business partners
Sell shares to interested investors
Applying for a loan from your bank/banks
Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
Source for soft loans from your family members and friends.

Financial Projection

a. How Much Should You Charge for your Product/Service?

The price of our zippers will be based on the number of cartons, type, and size of zippers supplied to wholesalers.

b. Sales Forecast?

First Fiscal Year (FY1): $480,000
Second Fiscal Year (FY2): $740,000
Third Fiscal Year (FY3): $1.2 million

c. Estimated Profit You Will Make a Year?

First Fiscal Year (FY1) (Profit After Tax): $80,000
Second Fiscal Year (FY2) (Profit After Tax): $300,000
Third Fiscal Year (FY3) (Profit After Tax): $600,000

d. Profit Margin of a Zipper line business

The ideal profit margin we hope to make at Shannon Hills© Zipper Production Company, Inc. will be between 20 and 40 percent depending on the type and size of zippers sold.

Growth Plan

a. How do you intend to grow and expand?

Shannon Hills© Zipper Production Company, Inc. will grow our zip line business by opening production factories in Bangladesh and Thailand.

b. Where do you intend to expand to and why? (Geographical locations)

Shannon Hills© Zipper Production Company, Inc. plans to expand our supply outlets to Miami, Florida, Houston, Texas, New York City, New York, Oklahoma City, Oklahoma, Chagrin Falls, Ohio, Kaysville, Utah, Cedar Rapids, Iowa, Las Vegas, Nevada, Los Angeles, California and Dallas, Texas.

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest and most thriving markets for apparel, sporting goods, luggage, bags, and camping gear businesses in the United States.

Exit Plan

The founder of Shannon Hills© Zipper Production Company, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.