Business Plan For Tobacco Leaf

1
Business Plan For Tobacco Leaf

• Presented By
• Rahul Gupta

2
A Brief History

• Established in 1982
• 2 current locations in different shopping malls
• (both located in Maryland)
• Carry a large variety of products including more
  than 200 brands of premium cigars, lighters,
  humidors, pipes, cigarettes, and other tobacco
  accessories
• Gross over 700,000 in retail sales
• -nearly 60 of total revenue comes from
  cigars and cigar accessories
• Cigar selection considered to be One of the best
  in Maryland

3
The Cigar Industry

• Hundreds of Brands mainly from the Dominican
  Repubic, Nicaragua, and Honduras.
• Currently experiencing a cigar boom 309 million
  cigars imported to the U.S. last year, most since
  1997.
• Excellent quality cigars available at reasonable
  prices due to high competition and increased
  consumer demand
• Cigars have almost become a fad

4
Tobacco Leaf Proposed Location

• 30 miles away from both existing locations
• - Allows us to reach a completely new
  customer base
• Surrounded by many commercial outlets
• - Newly renovated shopping center
  containing more than 40 stores
• - Located near many office
  buildings
• - Many hotels and restaurants
• Affluent neighborhoods surround the area.
• - Average income of surrounding
  residents over 500K

• Hunt Valley Shopping Center

5
Tobacco Leaf Proposed Layout

• Free standing building located on a main street
  parallel to renovated shopping center
• 2 levels
• - 1st level will be selling area carrying
  same products as both existing locations but with
  more of a concentration on cigars.
• - 2nd level will be a smoking lounge
  furnished with leather couches, plasma
  televisions, billiards table, and personal locker
  humidors for customers who wish to store cigars.

6
Tobacco Leaf New Products Services

• New products various different cigar brands.
• Gift items pens, clocks, canes, cigar brand
  clothing, steins.
• Cigar Catering for corporate or personal events
• Cigar Club
• Maryland Lottery and Scratch off tickets
• Hookah nights Friday and Saturday nights

7
Marketing Our New Location

• Advertise on local cable channels
• Advertise among clientele in existing two
  locations
• Local newspapers / publications
• Flyers
• Promotional events with cigar companies offering
  discounts and free goods
• Word of mouth

8
Tobacco Leafs Competition

• No specialty tobacco retailers within 15 mile
  radius
• Closest retailer The Humidor
• - different market, smaller retailer, not
  as much merchandise, more expensive, doesnt
  offer many products and services we do.
• Online stores/wholesalers
• - sometimes cheaper because state OTP taxes
  dont apply, buy in bulk, no sales tax, less
  overhead expenses.

9
Estimated Costs

• Land 350,000
• Construction 250,000
• Inventory 150,000
• Décor 50,000
• Taxes, License, Fees 15,000
• Miscellaneous 50,000
• Total Cost 900,000

10
Funding the Project

• Bank Loans
• Family
• Investors/Partnerships

11
Tobacco Leaf

• Questions? Comments?
• Thank You