Alphagraphics business

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Executive summary

This plan is being submitted to support a request for funding of £100,000 through a business development loan under the small firms loan guarantee scheme and an overdraft facility of £20,000 to support growth plans for the business. This will support the development of a new AlphaGraphics business and the immediate acquisition of a small independent operation they plan to roll into the new business once they complete the lease agreement on their desired property in LS1.

The principals of Business Design & Print Ltd have secured the AlphaGraphics franchise for Leeds and plan to operate from the city centre with effect from March 2004, leveraging the brand that has been present in LS1 since 1989. They propose to invest a total of £100,000 in the business.

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Alphagraphics is a full service printer and operates around 300 stores around the globe with 15 in the UK.

There is a clear market opportunity in Leeds and the industry trends all indicate the situation is changing and improving. The AlphaGraphics vision for e-commerce represents enormous potential to differentiate our service from both independents and other franchises and when coupled with operating systems that comply with ISO 9002 they make a compelling business case that will succeed in the marketplace.

This franchise start up will comprise a sales team of three people (two of whom have many years of experience in the printing industry and one of them was Managing Director of AlphaGraphics UK from 1991 to 1995) who are all investing in the business plus a store manager; each of them is scheduled to attend the four-week New Franchisee Training course. This combined knowledge and insight will deliver an aggressive approach to sales supported by strong adherence to the business systems that will lead to operational profit and the long-term success of the enterprise.

The business follows the AlphaGraphics model whereby the business trades through start up losses to move into positive cash flow and profitable operation in year three. The average turnover for Alphagraphics is £800k pa and beyond this level of business they are capable of generating annual profits in the 14-20% range.

The principals have plans to develop three businesses across Yorkshire, creating a network of self-reliant businesses that will create wealth for all involved.

AlphaGraphics

After successfully building its proprietary operating systems into a successful and profitable business model, AlphaGraphics began franchising its concept in 1979. By the late 80’s AlphaGraphics was aggressively pursuing the global marketplace, becoming the first US printing franchise to open internationally with locations in Hong Kong and London. Today, AlphaGraphics has over 300 locations in fourteen countries.

Through continued investment in technology and the innovative development of business practices AlphaGraphics is able to offer an expanded portfolio of products and services well beyond that of the competition.

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