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Business Plan For Tobacco Leaf Presented By Rahul Gupta A Brief History Established in 1982 2 current locations in different shopping malls (both located in Maryland)

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Business Plan For Tobacco Leaf

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Presentation Transcript
business plan for tobacco leaf

Business Plan For Tobacco Leaf

Presented By

Rahul Gupta

a brief history
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
the cigar industry
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”
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

Tobacco Leaf – Proposed Location
tobacco leaf proposed layout
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.

tobacco leaf new products services
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
marketing our new location
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
tobacco leaf s competition
Tobacco Leaf’s Competition
  • No specialty tobacco retailers within 15 mile radius
  • Closest retailer – The Humidor

- different market,smaller retailer, not as much merchandise, more expensive, doesn’t offer many products and services we do.

  • Online stores/wholesalers

- sometimes cheaper because state OTP taxes don’t apply, buy in bulk, no sales tax, less overhead expenses.

estimated costs
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

funding the project
Funding the Project
  • Bank Loans
  • Family
  • Investors/Partnerships
tobacco leaf
Tobacco Leaf

Questions? Comments?

Thank You