subscription box business plan template

Subscription Box Business Plan [Download Template Here]

Are you ready to take your subscription box from idea to reality if so, this blog post is for you whether you are a new subscription box entrepreneur or a seasoned pro, having a solid business plan can make the difference between being a disorganized mess and having a solid strategy. why you need a […].

Are you ready to take your subscription box from idea to reality? If so, this blog post is for you!

Whether you are a new subscription box entrepreneur or a seasoned pro, having a solid business plan can make the difference between being a disorganized mess and having a solid strategy.

Why you need a business plan for your subscription box idea

Starting a new business can be overwhelming. You’ve got a great idea, maybe it’s written down on a napkin or on a sticky note. You’ve got marketing ideas swimming around in your head and you just read a blog post that gave you some great financial advice. But the problem is, you need a place to organize all of this information. A business plan, like the one provided below, can help you collect all of the amazing ideas you have for a new subscription box and turn them into a successful business.

How to use this Business Plan template

In this blog post, we’ll go over the core components of the subscription box business plan and at the end, you’ll be able to download a 25-page template to get you started! The business plan is broken up into 6 different parts: Goals & Strengths, Niche, Cost Analysis, Competitive Analysis, Plan for Growth & a Week-by-Week Launch Calendar.

Goals & Strengths

The first section of the Subscription Box Business Plan is the “Goals & Strengths” section. In this section, you’ll outline the foundation of your business, high-level goals and write out your company’s mission statement. It’s important when writing down your goals to be very specific about what you want to accomplish. The more specific of a goal you write down, the more clarity you will have around which business tasks to accomplish in order to meet those goals.

In this section, you’ll also take stock of your personal strengths. Writing down what skills and talents that you are bringing to business will allow you to determine which tasks you’ll take on and which ones you’ll need to delegate. For example, if graphic design or website coding are not skills you currently possess, you will need to find someone to help you in those areas. While it can be tempting to try to do everything yourself, getting help in the areas in which you are not skilled can be especially helpful in the beginning.

The second part of the business plan will help you narrow down and identify your niche. Some of the most successful subscription boxes have found a way to serve a very specific niche. Boxes like BarkBox, which caters to dog owners or BirchBox which caters to makeup lovers are successful because they deliver the exact products that their target market needs & wants. We recommend that you place a lot of importance on identifying which niche your box will serve before launching.

Using the worksheets provided, you’ll be prompted to describe your niche and identify products that serve that niche. Once completed, you can use this information to reveal unique opportunities that exist in your niche and develop ways to take advantage of them.  You’ll also create an ideal customer profile for your business. Knowing who your ideal customer is will help you as you put together marketing collateral and establish a social media presence.

Before starting any business, it’s always a good idea to ‘run the numbers’. Forecasting your costs and sales can be helpful in determining how much cash you will need to start the business and keep it running. Inside the business plan listed below, you will find several worksheets to help you calculate what your start-up and operating costs will be. This will be helpful should you need to secure a loan or run a Kickstarter campaign to get it started.

In this section, we’ll also take a look at pricing your box. The worksheet provided will walk you through all of the things you need to consider when pricing your box. Margins are especially important in the subscription box business. A profit margin of 30%-50% is ideal. Should you have a hard time meeting those margins, you may need to reconsider how you are getting products or the price of your box.

Competitive Analysis

Knowing who your competitors are and what they are doing is very important in the beginning stages of your business. Inside of this business plan is a section that will allow you to do a thorough competitive analysis of your competitors. Knowing your competitor’s strengths and weaknesses can be valuable information to have, especially as you develop your own unique value proposition.

In each of the worksheets, you will be prompted to write down key information about your competitors and how you can set yourself apart from that particular competitor. If there aren’t any competitors in your niche, consider yourself lucky. However, you can still use the worksheets to study other successful subscription boxes.

Plan for Growth

This section of the subscription box business plan is dedicated to creating a marketing plan for your subscription box business. An effective customer acquisition strategy is a crucial part of your subscription box’s success. You will need to use a variety of marketing channels like social media, paid ads and influencer marketing to attract new customers.

In this section, you’ll find worksheets dedicated to outlining your strategy for Facebook, Instagram, Youtube, brand influencers & email marketing.

Launch Calendar

The last section of the business plan includes a week-by-week launch calendar. In this 6 week calendar, you will find a checklist of the tasks and deadlines that you will need to accomplish on your way to launching your subscription box. These checklists will take you from the pre-launch phase , sourcing products, packaging products and marketing your pre-launch page.

Ready to get started?

Download the 25-page Subscription Box Business Plan Template here!

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Greetings, I have requested the business plan twice and never received it in my email.

Please advise on how I can secure the template.

Thanks in advance for your assistance.

Hi Monique! Sorry to hear you’re having trouble getting that plan into your email. Did you check your spam folder? Feel free to reach out to us at [email protected] and we’ll get you squared away.

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How to Write a Business Plan for a Subscription Box Service

19 min. read

Updated November 13, 2023

Free Downloads:  Sample Retail & eCommerce Business Plan Templates

The subscription box industry is growing rapidly thanks to a steady revenue model and tapping into people’s love for surprises. Ipsy, Birchbox, and Dollar Shave Club are the premier companies doing exactly this and therefore reach the 15 percent of online shoppers signing up for subscription boxes.

But with so many people trying to get their share of the growth, many subscription box businesses fold within a year or two. Lots of new box companies have trouble ironing out the kinks in their process: their customer can’t easily unsubscribe, their boxes just aren’t exciting or well-curated, and more. Any of these can lead to failure .

This guide to writing a subscription box business plan will help you through the process either way.

To help you get started, you can download this free business plan template for writing a traditional business plan for a loan or investment, or this Lean Plan template for a more nimble, easy to update plan.

• 1. Executive summary

The first element of every business plan is the executive summary . But, don’t write your executive summary first—it’ll be quite a bit easier to write after you’ve written the rest of the plan. It provides an overview of your business plan by compiling the most important information from the sections that come after.

Investors will read your executive summary first, so give enough information that they’re intrigued enough in your business to be interested in seeing your full plan.

This is what you’ll include:

• Problem : State the problem your subscription box will solve.
• Solution : How does your box and the products it contains solve that problem?
• Target market : What groups of people will want your box?
• Competition : What other subscription box companies target the same niche?
• Team : Who are your coworkers and what’s their business experience?
• Financial summary : Project your revenue for the first few years.
• Milestones : List major long-term goals you hope to achieve.

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Opportunity: Proving there’s a market for your subscription box

Because you complete the executive summary last, you will begin your actual business plan writing process with the problem and solution section of your business plan.

Think of the opportunity as including the problem you’re solving, the solution to that problem, who you plan to sell to, and how your business fits into the existing competitive landscape.

• 2. Problem and solution

Defining the problem you’re trying to solve is an important part of your business plan because it’s the first place where you’ll demonstrate that idea is viable—that you can actually make money with your business model and idea. Your subscription box service could solve any number of problems.

Here are a few examples (but definitely not an exhaustive list):

• Other boxes appealing to your niche are too expensive.
• No box exists for your niche.
• Online shopping for your product is difficult to some extent (hard to find, can’t return it, often doesn’t fit, so on).

Then, explain how your subscription box company solves the problem.

For example, if your box service will be cheaper than others in your niche, talk about your business model and how you’ll keep your box more affordable.

• 3. Target market

The target market section of your subscription box business plan identifies which subset of people you will focus your marketing and sales plan on. You can’t target everyone. If you’re selling a box that curates hair products for wealthy, curly-haired men, you probably don’t want to use your marketing dollars to advertise to people outside of your demographic.

Even narrower, not everyone who’s in your niche will want your box. A majority of men with curly hair probably have a product they always use, or they don’t use a product at all. The example box should, therefore, target men with that hair type who are looking for a new product.

Doing a formal market analysis can help you valid the assumption that people will actually pay for your box, as well as identify which people have the best chance of purchasing a subscription.

Additionally, you’ll want to have done some market research or analysis before you attempt to secure outside funding. Banks and investors will be looking to you to prove that you’ve had some initial sales success, but they’ll expect you to prove that you can continue to build your customer base in service of growing a profitable business.

The target market section of your business plan should include your TAM, SAM, and SOM, a brief buyer persona, your key customers, competition, and your pie in the sky future plans.

TAM, SAM, SOM

TAM, SAM, and SOM are three indicators that can help you think through how big your opportunity really is. In the beginning, your SOM is the most important number to think about. Most products aren’t really marketable to every single person with a credit card.

It can be tempting to think that you’re going to advertise to everyone everywhere—but that’s a huge and fairly unnecessary expense. Figuring out who can can really reach and get to pay for your product will save you time and money in the long run.

Understanding TAM, SAM, and SOM:

• Total Addressable Market (TAM): If you’re selling a men’ hair product subscription box, you might say that every man with hair is your TAM. That’s probably not completely accurate. Maybe your TAM is actually every man in a certain income bracket that is fashion conscious and has his hair styled by a professional.  
• Segmented Addressable Market (SAM) : This is how much of the TAM you’ll target. The SAM for our example might be men with curly hair because you curate products specific to that style.
• Share of the Market (SOM) : Your SOM is who you will reach in your first few years of business. The example’s SOM would, therefore, be a percentage of men with, curly hair based on the number of orders your business model can handle. It could also narrow the SAM by selecting specific regions that its box will be available in.

Buyer persona

Creating a buyer persona puts you in the customer’s shoes to guide marketing and sales decisions. You can see what your customer needs out of your subscription box, and why they need it.

It also gives you an edge over competitors without one. Keeping your buyer persona in mind can help you as you develop your marketing and sales plan, and think through crafting messages to potential customers that will compel them to convert, or subscribe to your box.

Key customers

This section is for businesses that sell to enterprise customers, not consumers. Companies that become a big subset of your revenue are likely strategic alliances, though, which is a later section. A key customer for a subscription box might be a large organization that contracts with you as an exclusive provider of something they need.

Maybe your subscription box is a monthly curated selection of comic books. If you partner with a large, wealthy private school district who wants you to provide comic book packages to all their eighth-grade students every month, that contract might be key your business survival for a period of time. They’re a key customer because without their business, you’d be in trouble.

Competition

Name the other subscription boxes that appeal to your niche. The men’s hair product example would list Birchbox, Dollar Shave Club, Bespoke Post, and Luxury Barber. Describe their pricing, what sort of products they include, how many items are in each box, and so on.

An easy and visual way to do this comparison is with a competitive matrix . A competitive matrix lists the company names down the left column and particular features across the top row. Check marks indicate which company has which feature—you should construct yours to highlight why your box is different and better.

Then, explain how your subscription box service differs , and how those differences appeal to your target market.

Future plans

This section is for your hopes and plans for scaling your business. Maybe your comic book subscription plan eventually wants to branch into comic book merchandise curation in the future. Maybe you want to start marketing your subscription boxes at different price points to increase your available market share. Put those ideas here.

Execution: How you’ll do it

Now that you explained your opportunity thoroughly, it’s time to describe how you plan to take advantage of it. Now, you’ll describe your marketing strategies, sales plans, operations information, milestones, your team and company basics, and your financial plan.

• 4. Marketing and sales plan

For many businesses, marketing and sales effort stops once a particular customer purchases its product or service.

Subscription boxes are nice because they’re designed to retain customers. But a lot of subscription companies bill on a period basis, like monthly, so you’re always thinking about how to retain the customers you have while you seek new customers.

Your marketing and sales plan should include a positioning statement, your initial pricing tests, tactics for promoting your brand, and information about any strategic alliances that are critical to your success.

Positioning statement

Your positioning statement should explain how your subscription box is different than competitors. Most statements follow this template:  

“For [target market description] who [target market need], [this product] [how it meets the need]. Unlike [key competition], it [most important distinguishing feature].”

Next, it’s time to determine your box’s pricing.

There are a lot of factors to consider when determining your monthly price:

• Product itself
• Fulfillment
• Packing materials
• Transaction and platform fees
• Postage and shipping

With the total cost of each box in hand, calculate a price with at least a 40 percent profit margin, as suggested by CrateJoy . Cratejoy also has other resources for calculating the best price for your subscription box.

There’s one final aspect of pricing to consider. Established subscription box services generally offer different rates depending on the length of subscription. For example, the men’s hair product box might cost $39.95 per month, but if you commit to subscribing for a year, its monthly cost will drop to $36.95.

If you do this, make sure the annual plan with cheaper monthly payments still generates a profit.

Most of your outreach will happen during the pre-launch stage . Subscription box services primarily use social media ( Instagram , Facebook , Pinterest , and influencers ) to show off some of its curated products and give offers prior to official launch.

Get the email addresses of interested customers by advertising email sign-ups rather than pre-orders on your website and social media.  You can then personalize your pre-launch marketing plan with emails to these interested people. This will keep your leads warm and encourage a higher percentage to subscribe once you launch.

Consider landing page design , easy email sign up, and potential deals for pre-subscribers  during the pre-launch promotion as well.

One thing to be cautious of: how you advertise the products in your box. Not getting permission from the manufacturers on their product limits how much you can advertise it.

Strategic alliances

What vendors can you partner with to give you discounted or free sample products for your box? Let them know that they get cheap advertising by sponsoring your box.

Your business has a lot of potential if you can attain such partnerships. They save time by lessening your product curation efforts, and they make the overall product cost cheaper.

The example box might reach out to popular hair product brands like American Crew, Baxter of California, or Kevin Murphy to get free samples. Customers try each one in their box and decide if any are worth buying a full bottle of. If none work perfectly, they wait until the next month’s box, plus they don’t waste any product because the samples are small.

You should also explore other types of strategic alliances, like brick and mortar locations or selling through Amazon. These, among other ideas, can help your store reach new target markets, expand business operations, and improve profit margins.

Finally, an overlooked alliance is the one with each of your customers. Subscription models depend on customers staying for a while and increasing their lifetime value. Make the boxes personal and provide reliable customer service to grow your business and retain customers.

• 5. Operations

The operations section includes the logistics, technology, and other behind-the-scenes pieces of your business. For a subscription box service, this section will primarily focus on product curation and box distribution.

Sourcing, fulfillment, and distribution

Where will you get your products ? How you will assemble them in your box. What packing materials will you use and how will you make the inside of your box aesthetically pleasing?

Then, talk about the box itself. Will you have a custom box designed, or will you keep it super simple at first?  Will you outsource your packaging and shipping?

Once your business can’t run out of your garage anymore you’ll probably want to consider outsourcing some of the work. If you don’t plan on outsourcing initially (as most don’t), explain how you will handle box distribution. Your explanation should include how you will ship boxes, keep track of shipments, and any other logistics for getting your product to the customer’s door.

Deliver your boxes on a regular schedule—customers should receive their order within the same time frame each month (or whatever time period) to avoid confusion. Also, offer tracking information so they can see where their package is in the shipping process.

Startup costs

There are several expenditures you need to address before starting your business operations. Your startup costs will include acquiring your initial inventory, or the products you plan to include in the first edition of your box service.

You’ll probably also want to include your first round of shipping materials: filling, boxes, and labels. Say where you will get these and why that’s the cheapest option—you’ll likely buy these supplies in bulk. And if you’re paying for space for storage or packing operations, you’ll want to include that too.

Away from the box itself, you will pay for a website to process payments and advertise your service. Will you need an app? Think that through from the beginning too. You’ll want to think through which tool is essential from the beginning.

At first, you might get away with manually billing each of your customers each month, but it probably won’t be long until you’ll need tools to help with automated re-billing, order management, shipping label generation, customer management and more. The key for startup costs is to decide what you can’t live without from day one.

Set milestones to show your business plan’s audience where you realistically see your company going long term. Add the milestone’s name, due date, budget, and person responsible to a calendar to put “ some bite into your plan and management .”

Stay up to date with these milestones once your business gets off the ground; they will keep you and your coworkers on track toward your original goals. Schedule monthly review meetings within your team (or schedule time to review by yourself, if you’re starting out solo) every month to monitor your progress on each milestone.

No investor will give away money to an unproven business idea. Even if you haven’t launched your subscription box yet, run a minimum viable product (MVP) to demonstrate that people will pay for your box. This can be as simple as selling a beta version of your boxes to verify that people will pay for it.

If your business is already up and running, include the milestones you already achieved. “Traction” shows that your subscription box is heading in the right direction and is important to investors as proof that your business is viable.

Key metrics

Going smaller, use key metrics to ensure that your business is on track to reach your milestones.

The five key metrics to judge your subscription model’s success are:

• Churn and churn rate
• MRR (monthly recurring revenue)
• ARPU (average monthly revenue per user/customer)
• LTV (lifetime value)
• CAC (customer acquisition cost)

Most business owners would be terribly concerned their sales stagnated. That’s one benefit of the subscription pricing model—a slower sign up rate isn’t always bad for your business. Use these five metrics to track how many people are continuing their subscription and to know when you need to address stagnated sales.

Key assumptions and risks

State the key assumptions and risks of your subscription box service.

Knowing your assumptions helps maintain the business’ consistency because the subscription box industry is always changing. They become even more important when you revisit and update your business plan in the future.

Additionally, acknowledging potential risks can guide your business to reduce its susceptibility to them. Investors want to know that you’ve thought about situations that could negatively affect your service business, plus ways to avoid them.

Issues related to credit card fraud is a big risk with any ecommerce business model. Address the security risk with your website, as well as how you plan to stop any sort of fraud.

You want to make your management team attractive and credible to investors. If they know your subscription box idea will get customers, show them why you and your team are the ones to make it happen.

Name the people involved with your subscription box service. Your team might change as the business grows, though. You might outsource packaging, shipping or both instead of hiring more people to work with you directly. 

Explain your business qualifications, along with any business partners or key team members. Also, describe why they are passionate or knowledgeable about the niche your box specializes in. Why do they know how to curate products that will surprise and satisfy customers?

• 7. Company overview

In the company overview section, you’ll explain what your company values, how it will legally protect its products, follow certain regulations, and structure ownership. Include your business’ history and location as well.

Mission statement

The mission of your subscription box is what you ultimately want people to recognize the brand name for. A generic template for a mission statement is:

“The mission is to provide X (services) by doing Y (methods) for Z (target market).”

Keep it as short and meaningful as you can.

Intellectual property

Trademarking your business name, logo, and so on are the main intellectual property issues for a subscription box.

But if you have some sort of new technology or method that improves an aspect of your service, make sure to protect it with patents . That could be anything from improved packaging methods to automated product curation.

Legal structure and ownership

Each legal structure has its own pros and cons , so do your research so you can make in informed decision.

Where is your distribution center? Is it in an optimal location for reaching your target market without expensive shipping costs? This might change at some point in the future if you choose to outsource it.

If you’re writing this business plan as a strategic guide and your startup is already up and running, talk about how it began. Highlight any major achievements you have already reached.

• 8. Financial plan

With so many fluctuating expenses to account for in the curation and distribution of your boxes, you need to make sure that you are still making a profit.

For a subscription box company, like any other business, there are eight elements you need to include in the financial section of your business plan.

Here are the components of the financial plan that you’ll need to include:

• Sales forecast : There are two parts involved with your sales forecast — annual revenue projections and cost of goods sold (COGS).
• Personnel plan : How much will you pay each employee. Include “employee burden” costs as well—the cost of an employee beyond their salary.
• Break-even analysis : Calculate when your business will break even  and begin making a profit. Show what your profit numbers will look like from that point forward.
• Profit and loss statement : Compare the revenue projections by time period with your expenses. The bottom line of a profit and loss statement is net profit, or how much money you’re making after all expenses are paid. Here’s a template to help you get started.
• Cash flow statement : The cash flow statement helps you recognize what your startup’s cash position is—profit isn’t the be-all-end-all metric for the money you have. This statement tracks how much cash you have, where it’s coming and going from, plus on what schedule. 
• Balance sheet : Make sure your assets and liabilities balance out to show financial health. Your balance sheet is a snapshot of your businesses’ financial health. Here’s a balance sheet template you can use to get started.
• Use of funds : Talk about where potential funding from investors or the bank will go and why the money is necessary there. Omit this bullet if you’re not seeking any funding.
• Exit strategy : Name a few other subscription box services or outside companies who might want to take over if you decide to exit the industry down the line. Omit this bullet as well if you’re not seeking funding.

Like with any appendix, add any charts, tables, pictures, or other necessary information that didn’t fit neatly into the business plan.

This section is not necessary—only include it if you have supplemental information that you need to cover.

Subscription-based business models are growing exponentially in all industries because people are figuring out how to maximize the profit margins, and s ubscription box businesses are one of the premier industries taking advantage of this new and popular business model. They supply customers with unique, curated products, and provide the excitement of the unboxing experience that no other industry can.

Before you enter this lucrative industry, ask yourself these seven questions to make sure it is right for you. Then, start working on your business plan—keep it as short and concise as you can so that it’s easier to use it as a tool to guide your business.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Nate Mann recently finished his second year at the University of Oregon. He is pursuing a major in journalism, along with minors in business administration and computer science. He is currently a content marketing intern for Palo Alto Software. Outside of school and work, Nate is an avid basketball fan and writes about the Portland Trail Blazers for Rip City Project. He is also a data reporting intern for the University of Oregon’s School of Journalism and Communication.

Table of Contents

• Opportunity: Proving there’s a market for your subscription box
• Execution: How you’ll do it

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Subscription Box Business Plan

Free Business Plan Template

Download our Free Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Subscription Box Business Plan?

Writing a subscription box business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

Here are a few key components to include in your executive summary:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Introduce your business:

• This section may include the name of your subscription box business, its location, when it was founded, the type of subscription box business (E.g., beauty & personal care, health & wellness, food & snacks), etc.

Market opportunity:

Product and services:.

• For instance, you may include beauty & personal care, food & snacks, and fashion & accessories as products and mention customization as some of your USPs.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• Beauty & personal care
• Health & wellness
• Food & snacks
• Fashion & Accessories
• Book & Literature
• Crafts & DIY
• Kids & Family
• Lifestyle & home
• Describe the legal structure of your subscription box business, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, busy professionals are the ideal market for a subscription box business.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, the demand for local and artisanal products is increasing; explain how you plan on dealing with this potential growth opportunity.

Regulatory environment:

Here are a few tips for writing the market analysis section of your subscription box business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the subscription box products & services your business will offer. This list may include:

• Curated products
• Personalization & customization
• Exclusive or limited edition products
• Product information & recommendation
• Products like beauty items, snacks, books, etc along with the theme of your box

Curated section:

Quality measure:.

• This may include timely delivery, quality packaging, or excellent customer support.

Additional services:

In short, this section of your subscription box plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, exclusive perks & discounts or personalization & customization could be some of the great USPs for a professional subscription box company.

Pricing strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your subscription box business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your subscription box business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, equipment & software:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your subscription box business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. operations manager, customer services manager.) involved in the subscription box business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your subscription box products & services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more.These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your subscription box service business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample subscription box business plan will provide an idea for writing a successful subscription box plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our subscription box business plan pdf .

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Frequently asked questions, why do you need a subscription box business plan.

A business plan is an essential tool for anyone looking to start or run a successful subscription box business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your subscription box company.

How to get funding for your subscription box business?

There are several ways to get funding for your subscription box business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your subscription box business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your subscription box business plan and outline your vision as you have in your mind.

What is the easiest way to write your subscription box business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any subscription box business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Home » Sample Business Plans » Online Startups

How to Write a Box Subscription Service Business Plan [Sample Template]

Are you about starting a box subscription company? If YES, here is a detailed sample box subscription business plan template & FREE feasibility report. If you are looking towards leveraging on the eCommerce industry to launch a business that requires minimal startup capital, one of the many businesses you can successfully start in the industry is box subscription business. Subscription Boxes are boxes that contain an assortment of products – typically with a common theme, such as beauty boxes, pet boxes, or food boxes.

These boxes are automatically delivered for the length of your subscription. The majority of subscription box services keep each month’s specific box items a surprise. It is indeed a growing and profitable business in the united states of America. Below is a sample box subscription services business plan template that will help you write yours with little or no stress.

A Sample Box Subscription Service Business Plan Template

1. industry overview.

Subscription boxes are a recurring delivery of niche products as part of a marketing strategy and a method of product distribution. Subscription boxes are used by subscription-based ecommerce businesses, referred to as “subcom” for short, which follows a subscription Business model. Instead of a one-time purchase, customers agree to automated online payments for the duration of their subscription.

Players in this industry target a wide range of customers and cater to a variety of specific needs and interests. It is estimated that there are 400 to 600 different kinds of subscription boxes in the United States alone and more overseas. Subscriptions vary in both cost and frequency, making them more accessible to a greater range of customers with different socioeconomic backgrounds. Subscription boxes tend to range from $10 to $100.

The eCommerce industry that box subscription service business is a part of is indeed a very large industry that can boast of creating business opportunities for loads of entrepreneurs all across the globe and generating multiple billion dollars annually. The industry generates over $1 trillion annually on a global scale. For example, in 2012, ecommerce sales topped $1 trillion for the first time in history and the figure is still growing.

According to Wikipedia, “Among emerging economies, China’s e-commerce presence continues to expand every year. With 384 million internet users, China’s online shopping sales rose to $36.6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level of shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online.

China’s cross-border e-commerce is also growing rapidly. E-commerce transactions between China and other countries increased 32 percent to 2.3 trillion yuan ($375.8 billion) in 2012 and accounted for 9.6 percent of China’s total international trade in 2013, Alibaba had an e-commerce market share of 80 percent in China.”

In recent time, loads of subscription commerce companies are emerging and of course growing rapidly. Since launching in 2011, Quarterly.co has doubled in size every six months. NatureBox, which launched in 2012, grows by 50-100 percent every month and BarkBox’s subscribers grew from 1,500 to 55,000 between 2012 and 2013.

A report released by Forbes shows that Birchbox, which is arguably the most recognizable service and valued at a reported $485 million in April, 2014, led the subscription box trend with its 2010 launch. Birchbox’s model of providing customers with samples of personal care products in order to upsell customers into buying the standard sizes of the sample products they enjoyed has proven to be a successful marketing tool.

Birchbox has reached nearly 400,000 monthly subscribers and has inspired many other companies to start utilizing subscription boxes.

It is important to mention that there are loads of advantages in starting a box subscription services business hence the increase in the number of players in this line of business. Some of the advantages of starting a box subscription business are low overhead, flexibility in choosing a location for the business and a wide selection of products from different manufacturing brands or wholesale distributors.

So also, if you start a box subscription company, then you will not have to crack you brain on how to source for money to lease of manage a warehouse, but on how to package and ship orders from customers, keeping track on inventory for accounting reasons, handling returns and inbound shipments and frequently ordering products and managing stock level.

Lastly, it is important to state that the eCommerce industry is regulated by a number of federal, state, and international regulatory organizations. So if you are a player in the industry, you are expected to play by the rules and regulations.

There are laws that govern e-commerce business, such law involves complex contract and tax issues, security, and privacy issues. Because technology changes swiftly, so also the laws regulating it are renewed on a regular basis.

2. Executive Summary

Zara Cornwell® Beauty Box Subscription Service, Inc. is a United States based international beauty box subscription services company that delivers a wide range of high-end and drugstore products, effective skincare, statement-making makeup products, beauty tools and beauty products, amazing cosmetics like eyeshadow palettes and trend-savvy lip color, and luxurious haircare.

At least 4 of the 6 items our subscribers get each month will be full-size. The beauty box will be personalized at super affordable subscription. These boxes are automatically delivered for the duration of subscription of our clients. Our head office will be located in the heart of Mount Pleasant – South Carolina.

Zara Cornwell® Beauty Box Subscription Service, Inc. will run 24 hours a day and 7 day a week online platform, with effective and timely delivery system. Our payment platform is highly secured and we will only deal in non-Cash Payment.

Our payment platform will readily accept payment from credit cards, debit cards, smart cards, electronic fund transfer via bank’s website and other modes of electronic payment. Our inventory management of products is automated, our portal is designed such that it reports get generated instantly when required and our product inventory management is very efficient and easy to maintain.

We have a robust business relationship with shipping companies and we are going to be shipping goods for our clients at a highly-discounted price in and around Mount Pleasant – South Carolina. Our plans of partnering with beauty and health care wholesalers and manufacturing brands makes it easier for us to deliver products on time.

At Zara Cornwell® Beauty Box Subscription Service, Inc. our staff are highly competent and dedicated to the company; they are trained to go the extra mile to resolve any complaints from our customers. Our phone lines are opened 24 hours a day and 7 days a week, with highly trained call center agents manning them and also customers can freely chat with us via our website at any time of the day.

Zara Cornwell® Beauty Box Subscription Service, Inc. is owned by Zara Cornwell and her immediate family members. Zara Cornwell has a Diploma in ecommerce and a degree in Business Administration. She will run the business with other experience team members who have worked in similar business venture.

3. Our Products and Services

Zara Cornwell® Beauty Box Subscription Service, Inc. will make available a wide range of beauty and health products from top manufacturing brands in the United States and other countries of the world to our customers via box subscription.

We will have available in our Beauty Box high-end and drugstore products, makeup and skincare products, beauty tools and beauty products, amazing cosmetics like eyeshadow palettes and trend-savvy lip color et al.

4. Our Mission and Vision Statement

• Our vision is to build a beauty box subscription company that can favorably compete with leaders in the industry.
• Our mission is to establish box subscription service business that will make available a wide range of beauty and health care products from top manufacturing brands at affordable prices to a wide range of customers that will cut across different countries of the world.

Our Business Structure

Zara Cornwell® Beauty Box Subscription Service, Inc. intends starting small, but hopes to grow big in order to compete favorably with leading companies both in the United States and on a global stage. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. That is why we are committed to only hire the best hands within our area of operation.

At Zara Cornwell® Beauty Box Subscription Service, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit our stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer / President

Human Resources and Admin Manager

• Business Developer

Information Technologist

• Call Center Agent

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.
• Manage the organizations’ website
• Responsible for continuous update of our online store
• Ensure that our payment platform is secured 24 / 7
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Responsible for continuous upgrade and maintenance of IT systems
• Handles any other technological and IT related duties.

Transport and Logistics Manager

• Accountable for coordinating the transportation of boxes that are subscribed for
• Responsible for negotiating and agreeing contracts
• Answerable for developing and confirming schedules
• Responsible for preparing paperwork for regulatory bodies
• Responsible for liaising and managing staff
• In charge of planning routes and load scheduling for multi-drop deliveries (box subscribed for).
• Responsible for booking in deliveries and liaising with customers.
• Directs all transportation activities and develops transportation relationships.
• Responsible for monitoring transport costs.

Sales and Marketing Manager

• Manage external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of the business
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Call Center Agents/Customer Care Executives

• Answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives parcels / documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

We are quite aware that there are several box subscription services in the United States of America which is why we are following the due process of establishing a business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.

Zara Cornwell® Beauty Box Subscription Service, Inc. employed the services of an expert HR and Business Analyst with bias in startup businesses to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Zara Cornwell® Beauty Box Subscription Service, Inc.;

The fact that we have robust relationship with beauty products third-party wholesalers and manufacturing giants will definitely count as a strength for us. We have a well-coordinated and users’ friendly website and our customers can be rest assured that they will have their subscribed beauty box delivered to them in record time. Other areas of strength are; secured payment platforms, robust shipping network and excellent customer service culture.

A major weakness that may count against us is the fact that we are a new beauty box subscription brand and we don’t have the financial capacity to compete with multi – billion dollars’ online stores like Amazon and Alibaba.com when it comes to wider reach and selling products at a rock bottom prices.

• Opportunities:

There are unlimited opportunities in this line of business because part of the appeal of subscription boxes is that consumers discover products they might not have otherwise. This allows customers to try products and brands risk-free.

The increased exposure to new products helps customers discover optimal products of their preferences. While only some subscription boxes have return options, there are places online to exchange unwanted items. The subscription box industry is growing rapidly, thanks to a steady revenue model and tapping into people’s love for surprises.

A major threat that we will be confronted with is the fact that shipping costs and the need to constantly innovate present challenges to retailers offering the subscription service.

7. MARKET ANALYSIS

• Market Trends

Although this a Green business, but the trend is still emerging. One early subscription box available was called The Sampler, which first became available in 2004 and offered samples of products from independent web-based artists, crafters, zines and shops.

Critics of subscription boxes have examined the environmental impact of subscription boxes. Shipping goods over long distances require energy, however, the energy used to send subscription boxes is not always more than purchasing products locally. Contents in subscription boxes may not always appeal to the subscriber.

This leads to a waste of products and transportation costs. This affects the environment in the form of energy needs to get product to the customer, the natural resources to make the product, and the disposal costs to get rid of the product. Especially because some of the products that are sent can be purchased.

Lastly, subscription boxes are the perfect solution to indecisiveness and regret as they curate products according to a customer’s personal preferences, simplifying the process, and letting personalization become the center of the retailer-customer relationship in a way that encourages extreme loyalty.

8. Our Target Market

When it comes to selling products via the subscription box business model, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just female folks but all those who shop online for beauty and health care products from all across the globe.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to distribute a wide range of beauty products such as high-end and drugstore products, makeup and skincare, beauty tools and beauty products, amazing cosmetics like eyeshadow palettes and trend-savvy lip color via the box subscription business model.

• Our Competitive Advantage

In recent time, studies show that subscription boxes are experiencing tremendous growth and popularity, and are also becoming increasingly competitive. As a matter of fact, the overall ecommerce industry has become much more intensely competitive over the last decade.

In essence, you have to be highly creative, customer centric, proactive and have a robust business network if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other leading box subscription services.

Part of what is going to count as competitive advantage for Zara Cornwell® Beauty Box Subscription Service, Inc. is the vast experience of our management team and our robust business network with loads of wholesalers and manufacturing giants; we have people on board who understand how to grow the business from the scratch to becoming a national phenomenon. Of course, our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Zara Cornwell® Beauty Box Subscription Service, Inc. was established to distribute a wide range of products to a wide range of customers that cut across different countries via our box subscription services.

In view of the above, our source of income will be generated from people who subscribe to our beauty box and our beauty box will contain high-end and drugstore products, makeup and skincare, beauty tools and beauty products, amazing cosmetics like eyeshadow palettes and trend-savvy lip color et al.

10. Sales Forecast

One thing is certain when it comes to box subscription services business, if you have quality products from top manufacturing brands and your website is user friendly and your payment portal is secured, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in the business and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the ecommerce industry cum box subscription services line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projection for Zara Cornwell® Beauty Box Subscription Service, Inc., it is based on the business model we are running and other factors as it relates to small scale and medium scale box subscription services company startups in the United States of America;

• First Fiscal Year (FY1):  $250,000
• Second Fiscal Year (FY2):  $550,000
• Third Fiscal Year (FY3):  $950,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Our marketing strategy will center on quality beauty and health products, reliability, swiftness in delivery, safety, pricing, secured payment platform, and above all excellent customer service. We will ensure that whenever our customers subscribed to our box services (place orders), they will get it delivered within the stipulated time frame.

We know that if we are able to put the above stated in place, we won’t struggle to retain our old customers and at the same time win over new customers.

We are aware of the power of the internet and we will do all we can to maximize the internet to market our business. In other words, a larger percentage of our marketing effort will be directed to internet users since our business is based on the internet; our website will become our number one marketing tool

In summary, Zara Cornwell® Beauty Box Subscription Service, Inc. will adopt the following sales and marketing strategy;

• Introduce our box subscription services business by sending introductory letters alongside our brochure to females in and around our business location, third party retailers, wholesalers, manufacturers, Local stores, Search engines, Niche websites, and other key stake holders.
• Advertise our business in relevant beauty and health business magazines, newspapers, TV and radio stations
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients
• Leverage on e – mail marketing approach

11. Publicity and Advertising Strategy

We have been able to work with our in – house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for online shoppers, third party retailers, manufacturers and other clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our box subscription services company.

Below are the platforms we intend to leverage on to promote and advertise Zara Cornwell® Beauty Box Subscription Service, Inc.;

• Place adverts on both print (newspapers and beauty and lifestyle magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote our services
• Install our Billboards in strategic locations all around the United States of America
• Distribute our fliers and handbills in target areas
• Contact wholesalers, manufacturers, third party retailers and other online retailers by calling them up and informing them of Zara Cornwell® Beauty Box Subscription Service, Inc. and the products we sale
• List our beauty box subscription services company in local directories / yellow pages
• Advertise our box subscription services company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vans are well branded with our company logo et al.

12. Our Pricing Strategy

We know we don’t have the capacity to compete with Alibaba, Amazon or any other big retail store, but we will ensure that the prices of all the category of our boxes are competitive with what is obtainable amongst companies within our level.

In essence we will be charging our customers $15.00 per month subscription fee for our small beauty box, $25.00 per month subscription fee for our medium beauty box and $35.00 per month subscription fee for our large beauty box.

• Payment Options

The payment policy adopted by Zara Cornwell® Beauty Box Subscription Service, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Zara Cornwell® Beauty Box Subscription Service, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our client make payment for the subscription of the boxes listed on our website without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

We have been able to pull cash that will be enough for us to successfully launch a standard beauty box subscription services company in Mount Pleasant – South Carolina. These are the key areas where we will spend our startup capital to setup Zara Cornwell® Beauty Box Subscription Service, Inc. in the United of America;

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses for the grand opening of Zara Cornwell® Beauty Box Subscription Service, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, Distribution Software and QuickBooks Pro et al) – $7,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, fax machine, cabins, tables and chairs et al): $4,000.
• The cost of launching a website/online store: $1,500
• The cost for branding: $5,000
• Miscellaneous: $10,000

We would need an estimate of one hundred thousand dollars ($100,000) to successfully set up our beauty box subscription services in the United States of America. Please note that you can successfully launch this type of business from any part of the world in your bedroom with just a functional laptop, internet facility and the required software applications.

But if you choose to build a business with structure, a business that does not revolve around one man or woman, a business that has a robust network with wholesalers, and manufacturing giants, then you should follow the above business structure.

Generating Funds/Startup Capital for Zara Cornwell® Beauty Box Subscription Service, Inc.

Zara Cornwell® Beauty Box Subscription Service, Inc. is owned and financed by Mrs. Zara Cornwell and her immediate family members. They do not intend to welcome any external business partners which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $20,000 (Personal savings $15,000 and soft loan from family members $5,000) and we are at the final stages of obtaining a loan facility of $80,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Zara Cornwell® Beauty Box Subscription Service, Inc. is to ensure that we continue to make available easy means of subscribing to our unique boxes, deliver quality services, improvise on how to do things faster and cheaper.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in diversifying our services; expand our product and service offerings once the need arises.

Zara Cornwell® Beauty Box Subscription Service, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of office facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating startup capital from partners: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Branding and Printing of Marketing/Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of furniture, racks, shelves, computers, electronic appliances, office appliances, delivery vans and delivery bikes: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Establishing business relationship with third party retailers and other manufacturers and wholesale suppliers of beauty and health care products we intend retailing: In Progress

More on Online Startups

How To Write a Successful Subscription Box Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for subscription box businesses that want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every subscription box business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Subscription Box Business Plan?

A subscription box business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and includes information about your team members. Your business plan is a critical document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Subscription Box Business Plan?

A subscription box business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Subscription Box Business Plan

The following are the key components of a successful subscription box business plan:

Executive Summary

The executive summary of a subscription box business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your subscription box company
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

You may not have a long company history if you are just starting your subscription box business. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company or been involved in an entrepreneurial venture before starting your subscription box firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a subscription box business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the subscription box industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and, if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a subscription box business’ customers may include:

• Men and women aged 18-35 who are interested in health and fitness
• Women aged 25-45 who are interested in fashion and beauty

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or subscription box services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your subscription box business may have:

• Unique products that competitors don’t offer
• Lower prices than competitors
• Better customer service than competitors
• More variety in products than competitors
• Higher quality products than competitors
• Faster shipping than competitors
• Easier returns or exchanges than competitors
• Free shipping for customers
• A loyalty program for customers
• Flexible subscription options (e.g., monthly, quarterly, semi-annually)
• Customizable subscription boxes

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your subscription box business via a PR campaign.  

Operations Plan

This part of your subscription box business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a subscription box business include reaching $X in sales. Other examples include adding Y number of new customers or increasing your social media following by Z%.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific subscription box industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Subscription Box Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Subscription Box Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup subscription box business.

Sample Cash Flow Statement for a Startup Subscription Box Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your subscription box company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is an essential tool for any startup subscription box company. A business plan will give you the best chance for success when seeking funding or partnerships.  

Finish Your Subscription Box Business Plan in 1 Day!

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Here is a free business plan sample for a subscription box business.

Are you captivated by the idea of launching a subscription box service but unsure of the first steps to take? Look no further.

In the content that follows, we will present to you a comprehensive sample business plan tailored for a subscription box company.

As an aspiring entrepreneur, you're likely aware that a meticulously formulated business plan is a cornerstone of any successful venture. It serves as a roadmap, guiding you through the establishment of your objectives, vision, and strategic approach for your enterprise.

To expedite the creation of an effective plan with precision and ease, feel free to utilize our subscription box business plan template. Additionally, our specialists are on standby to provide a complimentary review and refinement of your plan.

How to draft a great business plan for your subscription box business?

A good business plan for a subscription box service must cater to the unique aspects of this business model.

Initially, it's crucial to provide a comprehensive overview of the subscription box market. This should include current statistics and an examination of emerging trends within the industry, similar to what we've outlined in our subscription box business plan template .

Your business plan should articulate your vision clearly. Define your target audience (such as niche hobbyists, beauty enthusiasts, pet owners, etc.), and describe the distinctive appeal of your subscription boxes (curated, themed, personalized, etc.).

Market analysis is next on the agenda. This requires a thorough understanding of your competitors, market dynamics, and subscriber preferences.

For a subscription box service, it's imperative to detail the types of boxes you will offer. Describe the contents - whether they are gourmet foods, books, toys, or beauty products - and explain how they cater to the interests and desires of your subscribers.

The operational plan is equally important. It should outline the logistics of box assembly, packaging, distribution channels, supplier partnerships, and inventory management.

Quality control is vital for subscription boxes, as is the unboxing experience, which should be memorable and shareable, especially on social media.

Then, delve into your marketing and sales strategy. How will you acquire and keep subscribers? Discuss promotional tactics, subscriber engagement, referral programs, and upselling opportunities.

Embracing digital strategies, such as a user-friendly website, subscription management system, and active social media engagement, is indispensable in the digital age.

The financial section is another cornerstone. It should encompass the startup costs, subscriber acquisition costs, recurring revenue projections, and the path to profitability.

With subscription boxes, it's essential to understand customer lifetime value and churn rates, as these will significantly impact your financial success. For assistance, consider using our financial forecast for subscription box services .

Compared to other business plans, a subscription box service must focus on customer retention strategies, managing recurring revenue, and the logistics of regular product curation and delivery.

A well-crafted business plan will not only help you solidify your strategy and approach but also attract investors or secure loans.

Investors and lenders are looking for a thorough market analysis, sound financial projections, and a clear plan for subscriber management and growth.

By presenting a comprehensive and substantiated business plan, you showcase your dedication and preparedness for the challenges of running a subscription box service.

To achieve these goals while maximizing efficiency, feel free to utilize our subscription box business plan template .

A free example of business plan for a subscription box business

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a subscription boxes .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The subscription box industry has been experiencing a surge in popularity, with a significant market presence.

Recent estimates value the global subscription box market at approximately 15 billion dollars, with projections indicating continued growth. This is driven by the convenience and personalization that subscription services offer to consumers.

In the United States alone, there are thousands of subscription box services, catering to a diverse range of interests and needs, from beauty and food to books and fitness, contributing to a multi-billion dollar annual revenue within the sector.

These numbers underscore the robust demand for subscription services and their expanding role in modern consumer habits.

The subscription box industry is at the forefront of e-commerce trends, with a focus on customization, curation, and convenience.

Personalization is a key trend, as customers seek boxes tailored to their specific preferences and lifestyles. This has led to the rise of data-driven curation, where companies use customer data to handpick items for each subscriber.

Eco-consciousness is also influencing the industry, with a push towards sustainable and ethically sourced products. Subscription services that prioritize eco-friendly packaging and support for local businesses are gaining traction.

Technology plays a role too, with subscription services utilizing sophisticated algorithms and machine learning to enhance user experience and product selection.

Additionally, the integration of social media and influencer marketing has become a powerful tool for subscription box companies to reach new audiences and build communities around their brands.

These trends highlight the dynamic nature of the subscription box industry and its alignment with contemporary consumer values and technological advancements.

Success Factors

Several factors contribute to the success of a subscription box service.

First and foremost, the value proposition is critical. Subscribers must feel they are getting a good deal, both in terms of the quality and the uniqueness of the items provided.

Curation is another essential element, as a well-curated box can delight customers and encourage ongoing subscriptions.

Customer experience is paramount, from the ease of subscribing and managing preferences online to the excitement of receiving and unboxing the items.

Marketing strategies, particularly through social media and influencer partnerships, are vital for growing the subscriber base and maintaining visibility in a crowded market.

Lastly, efficient logistics and supply chain management ensure timely deliveries and help control costs, which is crucial for maintaining profitability and customer satisfaction.

By focusing on these key areas, a subscription box company can build a strong foundation for sustained success and customer loyalty.

The Project

Project presentation.

Our subscription box service is designed to cater to the diverse interests and needs of modern consumers. Each month, subscribers will receive a curated box filled with a variety of high-quality, niche-specific items. Whether it's for beauty enthusiasts, foodies, fitness buffs, or hobbyists, our boxes will provide a tailored experience that delivers excitement and discovery right to the customer's doorstep.

The service will focus on the element of surprise and the joy of uncovering new products, brands, and experiences. We will partner with emerging and established brands to offer a mix of full-sized products and samples, ensuring that each box exceeds the value of the subscription price.

Our subscription box company aims to build a loyal community of subscribers who look forward to their monthly delivery as a highlight, offering them a unique way to indulge in their passions or explore new interests.

Value Proposition

The value proposition of our subscription box service lies in the personalized and curated experience we offer our subscribers. We understand that today's consumers value convenience, exclusivity, and discovery. Our service saves them time and effort by researching and selecting the best products that align with their interests and delivering them directly to their homes.

We are committed to providing a sense of anticipation and delight with each box, making it not just a delivery, but a monthly event. Our service also introduces subscribers to new brands and products they might not have found on their own, enhancing their lifestyle and broadening their horizons.

By focusing on customer satisfaction and the unboxing experience, we aim to create a strong bond with our subscribers and become a trusted source for discovering new trends and products.

Project Owner

The project owner is an entrepreneur with a passion for creating personalized experiences and a knack for identifying emerging trends. With a background in e-commerce and marketing, they have the expertise to build a subscription box service that stands out in a crowded market.

They have a keen eye for quality and a commitment to customer satisfaction, ensuring that each box is thoughtfully curated and provides genuine value. Their experience in supply chain management and partnerships will enable them to source the best products while maintaining an efficient and reliable delivery system.

Driven by a desire to connect people with products and experiences that enrich their lives, the project owner is dedicated to building a subscription box service that consistently delights and surprises its subscribers.

The Market Study

Target audience.

The target audience for our subscription box service is segmented into various groups.

Firstly, we cater to enthusiasts of niche markets who appreciate the convenience and surprise element of receiving curated items regularly.

Secondly, we target busy individuals who seek time-saving solutions for their shopping needs, providing them with a selection of products tailored to their interests and preferences.

Our service also appeals to gift-givers looking for unique and thoughtful presents for friends and family, offering subscription options that can be gifted.

Lastly, we focus on attracting collectors and hobbyists who are interested in obtaining exclusive items or products related to their specific hobbies or interests.

SWOT Analysis

Our SWOT analysis for the subscription box service highlights several key points.

Strengths include a personalized customer experience, the ability to offer exclusive and hard-to-find items, and the excitement of monthly discovery for subscribers.

Weaknesses may involve logistical challenges in curating and delivering diverse items, as well as the need to constantly innovate to keep the subscription offerings fresh and appealing.

Opportunities exist in forming partnerships with brands for exclusive deals, expanding our product range to cater to new market segments, and leveraging social media for marketing and community building.

Threats could come from other subscription services with similar offerings, changes in consumer preferences, and potential disruptions in supply chains.

Competitor Analysis

Our analysis of competitors in the subscription box industry shows a market with a variety of players.

Direct competitors include other curated subscription services that offer products in similar categories.

These competitors strive to provide value and uniqueness in their boxes to retain a loyal subscriber base.

Our competitive advantages could be in the curation of exclusive items, exceptional customer service, flexible subscription plans, and a strong online community presence.

Understanding the strengths and weaknesses of these competitors is crucial for carving out our niche and ensuring subscriber satisfaction and retention.

Competitive Advantages

Our subscription box service stands out due to our dedication to creating a personalized and engaging unboxing experience for our subscribers.

We offer a carefully selected assortment of products that cater to the specific interests and needs of our customers, ensuring that each box feels like a tailored gift.

Additionally, our commitment to customer engagement through social media and community events helps us foster a loyal subscriber base and encourages word-of-mouth referrals.

We also prioritize flexibility in our subscription plans, allowing customers to easily customize their experience and manage their subscriptions according to their preferences.

You can also read our articles about: - how to create subscription boxes: a complete guide - the customer segments of a subscription box business - the competition study for a subscription box business

The Strategy

Development plan.

Our three-year development plan for the subscription box service is designed to capture the interest of niche markets and enthusiasts.

In the first year, we will concentrate on building a strong online presence and curating high-quality, themed boxes that cater to specific interests and hobbies.

The second year will be focused on expanding our subscriber base through targeted marketing campaigns and collaborations with influencers and brands within our chosen niches.

By the third year, we aim to diversify our box offerings, including limited edition and seasonal boxes, and to explore international shipping options to reach a global audience.

Throughout this period, we will prioritize customer satisfaction, feedback integration, and market trend analysis to ensure we stay ahead of the curve in the subscription box industry.

Business Model Canvas

The Business Model Canvas for our subscription box service targets individuals looking for curated experiences and products tailored to their interests.

Our value proposition lies in delivering handpicked, high-quality items that provide a sense of discovery and personalization for each subscriber.

We operate primarily online, utilizing our website and social media platforms to engage with our customers and manage subscriptions.

Key activities include box curation, content creation, and community engagement.

Our revenue streams are generated from monthly subscription fees, while our costs are associated with product procurement, packaging, and logistics.

Access a comprehensive and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered around building a loyal community and leveraging word-of-mouth.

We plan to create excitement around our boxes through unboxing videos, social media challenges, and testimonials from satisfied subscribers.

Collaborations with well-known personalities and niche experts will help us gain credibility and attract new subscribers.

We will also offer referral discounts and rewards to encourage our current subscribers to spread the word about our service.

Finally, we will continuously analyze subscriber feedback to refine our marketing efforts and box contents, ensuring we always meet and exceed customer expectations.

Risk Policy

Our risk policy for the subscription box service focuses on mitigating risks associated with product selection, supplier reliability, and customer retention.

We will establish strong relationships with reputable suppliers and maintain a diverse product pipeline to prevent stockouts and ensure box variety.

Regular analysis of subscriber churn rates and feedback will help us identify and address any issues promptly.

We will also maintain a flexible inventory management system to adapt to fluctuating demand and minimize overstocking.

Additionally, we will secure insurance to protect against any logistical or operational disruptions. Our goal is to provide a seamless and enjoyable experience for our subscribers while safeguarding the sustainability of our business.

Why Our Project is Viable

We are confident in the viability of our subscription box service due to the growing trend of personalized and convenient consumer experiences.

With our dedication to curation, community building, and responsiveness to market trends, we believe we can carve out a significant niche in the subscription box market.

We are excited to offer our subscribers a unique and engaging way to explore their passions and discover new products.

Open to evolving with our customer base and market demands, we look forward to the dynamic and promising future of our subscription box service.

You can also read our articles about: - the Business Model Canvas of a subscription box business - the marketing strategy for a subscription box business

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a subscription boxes and our financial plan for a subscription boxes .

Initial expenses for our subscription box service include costs for website development and e-commerce platform integration, procurement of initial inventory tailored to our niche offerings, packaging design and materials, and establishing partnerships with product suppliers. We will also invest in targeted marketing campaigns to build a subscriber base and brand creation to appeal to our target audience.

Our revenue assumptions are based on a thorough analysis of the market demand for curated subscription boxes, considering trends in personalized shopping experiences and the convenience of home delivery.

We anticipate a steady growth in subscriber numbers, starting with a conservative estimate and expanding as our brand gains recognition and trust.

The projected income statement outlines expected revenues from our subscription sales, cost of goods sold (including procurement and packaging), and operating expenses (website maintenance, marketing, salaries, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our subscription box service.

The projected balance sheet will reflect assets such as inventory, prepaid expenses for future boxes, and liabilities including any debts and operational expenses.

It will provide a snapshot of the financial standing of our subscription box service at the end of each fiscal period.

Our projected cash flow statement will detail the inflows from subscriptions and outflows for inventory purchases and operational costs, enabling us to predict our cash requirements. This is crucial for maintaining a healthy cash flow and ensuring business sustainability.

The projected financing plan will outline the sources of funding we intend to tap into to cover our initial setup costs.

The working capital requirement for our subscription box service will be carefully managed to maintain sufficient liquidity for day-to-day operations, such as inventory acquisition, packaging, and shipping, as well as payroll.

The break-even analysis will determine the number of subscribers required to cover all our costs, including initial investments, and to begin generating profits.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the customer acquisition cost, the average revenue per user, the churn rate to measure customer retention, and the lifetime value of a customer to gauge the profitability of our investment in acquiring and serving subscribers.

These metrics will be instrumental in evaluating the financial health and success of our subscription box service.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a subscription box business .

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Start a Subscription Box Business Plan in 11 Easy Steps

A subscription box business plan is a comprehensive document that outlines the key aspects, goals, and strategies of a subscription box service. It serves as a roadmap for entrepreneurs, helping them define their objectives, identify their target market, plan their operations, and secure funding. In this article, we will explore what a business plan entails, discuss its importance in the context of subscription box services, outline the main steps to write a subscription box business plan, and provide popular samples for reference.

What Is a Business Plan?

A business plan is a written document that outlines the goals, strategies, financial projections, and operational details of a business. It serves as a roadmap for entrepreneurs, guiding them through the process of launching and managing their venture. A well-crafted business plan provides clarity, defines the business’s direction, and helps attract investors and partners.

Importance of Writing Business Plan in Subscription Box Services

In the context of subscription box services, a business plan plays a crucial role in several ways:

• Defining the Value Proposition: A business plan helps articulate the unique selling points of the subscription box service, such as the curated products, convenience, or personalization, which sets it apart from competitors.
• Understanding the Target Market: Through market research, a business plan helps identify the target audience, their preferences, and buying behaviors, enabling the business to tailor its offerings to meet customer needs effectively.
• Planning Operations and Logistics: A business plan outlines the operational requirements, including sourcing products, managing inventory, packaging, shipping, and customer service, ensuring smooth and efficient operations.
• Financial Projections and Funding: A well-developed business plan includes financial forecasts, such as revenue projections, cost analysis, and profitability estimates. This information is vital for attracting investors or securing funding from lenders.

11 Steps to Write Subscription Box Business Plan

A business plan outlines the steps you need to take to achieve your goals and objectives. It helps you to develop a clear strategy and to make informed decisions. It also helps to identify critical risks and opportunities that could affect your business.

Here is a summary of how to build a subscription box business in the beyond table:

In the following, we will provide a more comprehensive and detailed explanation of the steps involved in writing subscription box business plan , breaking it down stage by stage.

1. Executive Summary

Provide an overview of the business, its objectives, and unique selling proposition.

• Research and analyze successful subscription box businesses
• Identify industry trends, and gain insights into the competitive landscape.
• Clearly define the unique selling points and benefits that customers will receive by subscribing to your boxes.
• Consider factors such as product curation, personalization, exclusivity, convenience, or educational content.
• Your value proposition should resonate with your target market and compel them to choose your subscription box over others in the market.

2. Research the Market

Start by researching the competitive landscape to understand what other subscription brands are already in the market and what makes them successful. It’s important to identify any gaps in the market and areas where the subscription box business can be unique and stand out from the competition. In short, follow the tips below:

• Conduct market research to identify the demographics, preferences, and buying behaviors of your target audience.
• Determine their needs and pain points, and align your subscription box offerings accordingly.
• By catering to the specific desires of your target market, you can create a compelling and appealing subscription box service.

3. Define the Target Market

Next, it’s important to define the target market for the subscription brand. For Define the target market, you should answer these questions:

• Who are the customers that will be most likely to subscribe to the service?
• What are their pain points, interests, and needs?

Understanding the target market will be key to developing a successful subscription service.

4. Outline Your Product

Outline Your Product and Service Offerings means that you should determine the types of products you will include in your subscription boxes by considering the following factors:

• Product sourcing
• Quality, variety
• Customization options.
• Pricing structure and subscription tiers based on the value provided by your offerings.
• Your product and service offerings should align with your target market’s preferences and reflect your brand’s value proposition.

5. Set Goals

Set clear and achievable goals for your subscription brand like:

• Increasing customer retention
• Improving customer service
• Increasing revenue.

6. Plan Your Operations and Logistics

In this step, outline the operational requirements for running your subscription box business.

• Consider aspects such as product sourcing, inventory management, packaging, shipping, and customer support.
• It’s crucial to create a unique brand identity for the subscription service. This includes the logo, color palette, messaging, tone of voice, and visuals that will be used to communicate the brand.
• Determine how you will source products, manage inventory levels, and ensure timely and efficient fulfillment of orders.
• Additionally, establish customer support systems to address inquiries, concerns, and resolve any issues that may arise.

It is often that businesses neglect the importance of brand awareness due to the expense of having a marketing team. You can, however, contact Subify’s customer success team to get assistance with various aspects of your subscription box business plan, including marketing and UX design.

7. Develop a Marketing and Sales Strategy

Creating a robust marketing and sales strategy is essential for attracting and retaining subscribers.

• Social media
• Influencer marketing
• Email marketing
• Content marketing.
• Determine your customer acquisition tactics and develop strategies to promote your subscription box service.
• Consider offering incentives, referral programs, or limited-time offers to attract new subscribers and retain existing ones.

8. Create Financial Projections

Develop detailed financial projections for your subscription box business. You can follow these steps:

• Estimate your revenue streams, including subscription fees, one-time purchases, or additional services. Consider your cost structure, including product costs, packaging, shipping, marketing expenses, and operational costs.
• Project your expected expenses and calculate your profitability and cash flow.
• These financial projections will help you assess the viability of your business and attract potential investors or lenders.
• Estimate the costs associated with launching and running your subscription brand. This should include things such as advertising, marketing, materials, labor, and shipping.
• Having a budget table before launching your online subscription brand allows you to create a realistic timeline to set deadlines and ensure that all aspects of your business are ready to go when it is time to launch.

9. Outline the Business Model

The business model should be clearly outlined in the business plan. This includes:

• How the subscription service will be marketed?
• How it will be priced?
• How it will be packaged/delivered?
• How it will be managed. Are you planning to offer discounts?
• Would you like to receive pre-payments?
• How about setting delivery dates?

You can answer these questions with Subify tools in order to create the best subscription boxes on Shopify.

10. Write Subscription Box Business Plan

Now that you have gathered all the necessary information, it’s time to write your subscription box business plan :

• Start with an executive summary that provides an overview of your business, followed by a company description, market analysis, product and service description, marketing and sales strategy, operational plan, and financial projections.
• Ensure that your business plan is well-organized, concise, and showcases the unique aspects of your subscription box service.

11. Get Feedback

Ask for feedback from potential customers, industry experts, and other entrepreneurs. This will help you refine your subscription box business plan and ensure it’s ready for success. Allowing your customers to leave reviews on your products is also another way to receive a precise insight into your offerings.

By following these steps, you can create a business plan that will help your subscription brand stand out from the competition. Keep in mind that it’s important to keep your plan updated as your business grows and evolves. That way, you can ensure your subscription model is always relevant and up-to-date.

Subscription Box Business Plans: Tips For Being Successful

Creating a successful subscription brand requires careful planning and an understanding of the competitive landscape. That’s why a business plan is a great way to ensure that all of the necessary requirements are in place and that the subscription brand is unique and competitive enough to stand out.

When creating a subscription box business plan, look for these components:

1. Clear Goals: A business plan must have clear and specific goals that are easy to understand and measure. This will help keep the business on track and ensure that the subscription model is meeting the needs of the customer base.

2. Strategic Pricing: A subscription model requires careful consideration of pricing. It should be competitive enough to attract customers while still generating a healthy profit.

3. Customer Retention: Retaining customers is key to the success of a subscription box business that needs a helpful Retention Strategy . A good business plan should have strategies to keep customers engaged and coming back for more.

4. Automation: Automation is essential for streamlining operations and ensuring that the subscription model runs smoothly. Automation provides various benefits to businesses like:

• Streamlining sales tasks
• Providing powerful analytics that can be used to improve customer experiences.

But, at larger scales, automating payments is practically impossible, which is one of the reasons why customers turn to Subify , as their automated subscription management app.

5. Execution Plan: Last but not least, the business plan should include an execution plan that outlines the steps and processes needed to launch and manage the subscription business within a timeline.

Popular Samples for Subscription Box Business Plan

When writing a subscription box business plan, it can be helpful to refer to popular samples that provide guidance and inspiration. These samples can serve as valuable references to understand the structure, content, and key components of a well-crafted business plan. Here are some popular samples that you can explore:

Subscription Box Business Plan Template

A subscription box business plan template provides a framework that can be customized to suit your specific needs. It typically includes sections such as executive summary, company overview, market analysis, product description, marketing strategy, operational plan, and financial projections.

By using a template, you can ensure that you cover all the essential elements of a subscription box business plan in a systematic manner.

Subscription Box Business Plan Example

Examining a subscription box business plan example can offer real-world insights and practical ideas.

• Look for successful subscription box businesses examples, operating in similar industries or targeting a similar demographic.
• Analyze how they structure their business plans, highlight their unique value propositions, outline their marketing strategies, and present their financial projections. This will help you understand effective approaches and apply them to your own plan.

Industry-Specific Resources

Explore industry-specific resources and publications that may provide subscription box business plan examples or case studies. Look for blogs, articles, or books written by experts in the subscription box industry. These resources often offer valuable insights, best practices, and real-life examples that can inform your own business plan.

Subscription Box Business Communities and Forums

Joining subscription box business communities and forums can connect you with like-minded entrepreneurs and professionals in the industry. Engage in discussions, ask for recommendations, and share your goals.

Members of these communities may be willing to provide sample business plans or direct you to resources that can help you in your business planning process.

Final Thoughts

Planning is everything. Diving into a business without thinking it through first can lead to costly mistakes and wasted resources. The subscription box business is an opportunity for you to raise your revenue, build customer loyalty program , and make your brand stand out in the crowd. Taking a few primary steps early on will keep you from missing out on this opportunity.

Writing a subscription box business plan requires careful consideration and detailed analysis of various aspects of your business. By following the comprehensive steps outlined in this article, you can create a well-structured and informative business plan that will guide your subscription box service towards success. Remember, a subscription box business plan is a dynamic document that should be regularly reviewed and updated as your business evolves and grows.

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12 Types Of Subscription Models In Business + Examples

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How To Create A Subscription Box Business Plan?

It’s a great time to be in the subscription box business. 

Subscription boxes have been on the rise for years, and the COVID-19 pandemic has given them a massive boost. 20% of US consumers subscribed to a box during the pandemic just to have these products available without going to a store. 

And it’s not just the pandemic — 51% of shoppers get subscription boxes just to try new products. 

In other words, if you’ve been dreaming of starting a subscription box business , now’s a good time to do so. But you’re going to need a plan. 

Subscription boxes are competitive, and it can be hard to reach your target customers. Factors such as fulfillment and recurring billing can get complicated. To give your subscription business a chance, you need to have a comprehensive business plan. 

This article will give you the information you need to create a successful subscription box business plan. 

The Growth of the Subscription Box Industry

Subscription boxes began their rapid rise in popularity a little over a decade ago. Between 2010 and 2012, the world was introduced to subscription box pioneers like Birchbox, BarkBox, Dollar Shave Club, and Blue Apron. 

In 2021, the global subscription box market size reached a value of $22.7 billion , and it’s expected to reach $65 billion by 2027.

While subscription boxes have been around for a while, they really took off during the pandemic. For example, boxes related to pets and animals saw a 147% growth in subscribers between 2019 and 2020, while the number of beauty box and food box subscribers grew by 120% and 100%, respectively.   

Why Your Subscription Box Business Needs a Business Plan ?

Starting a subscription box company is complex. A business plan helps you put all the pieces together and achieve your business goals. 

Here’s what a business plan can do for you.

Prove Your Idea is Viable

A business plan includes research and analysis of the market, your niche, and your target audience. It demonstrates how your subscription box idea will fit into the existing landscape. 

Secure Funding

A business plan can help investors and lenders see your company’s value. They want to know that you not only have a fun idea but a viable plan to profit. 

Keep Everyone on the Same Page

If you have multiple decision-makers in your subscription box business, a business plan keeps the entire team aligned. 

Plan for Expenses

A business plan helps you set realistic expectations for your upfront and ongoing expenses. It lays out how much cash you will need and where you expect to get it. 

Reduce Risks

Your business plan will identify risks and help you manage them. It will mitigate some of the uncertainty involved with starting a new business.

How to Create a Subscription Box Business Plan?

A business plan is essential for breaking into the subscription box market, but it can be intimidating to create one. It doesn’t have to be, though — just take it step-by-step, as outlined below. 

1. Determine Your Niche, Target Audience, and Value Proposition 

In this part of your business plan, you outline who you will be targeting, your value proposition for that audience, and why your subscription box will be successful in its target market. 

Start with an idea for a niche. Is this a beauty box? A meal kit? Popular categories for subscription boxes include:

• Personal care and beauty

In your business plan, describe the product you intend to sell. Next, include research to back up that idea.

Define a Problem and Solution

Every good subscription box offering solves a real problem that people have. For example, if someone wants to cook healthy meals but doesn’t want to spend time shopping and preparing ingredients, they can subscribe to HelloFresh . 

Think about what problem your subscription box solves for your target audience, and add that to your business plan. 

Market Validation

The next step is to gauge whether your idea is viable in its target market . this ensures you’re not wasting resources on an idea that can’t be profitable. .

Market validation data you can add to your business plan includes: 

• Information from interviews with customers in your target market. Does your subscription box solve a real problem they have?
• Sales numbers of your competitors. 
• Keyword search volume. Are people searching for products like yours? 
• Results of beta tests. 

Industry Analysis

What does the current landscape look like in your industry? Include any information you have on the major players, whether the industry is growing or shrinking, and any predictions (such as technological advancements) for the industry’s future that could affect your business. 

Competitive Analysis

After you’ve analyzed the industry as a whole, take a look at the competitors in your niche. Although there may be subscription boxes similar to yours, yours should have something that differentiates it. In your business plan, detail what gives your box a competitive edge. 

You can also dig into which channels your competitors are using in their promotions. For example, if no one in your niche is taking advantage of influencer marketing, that’s an opportunity you can include in your business plan. 

Target Market Analysis

Finally, analyze your target demographic. Assess where you expect your product to gain the most traction, and include this in your business plan. 

One way to represent your target buyer is to create buyer personas for your business plan. A buyer persona is a detailed description of a fictional person representing your target audience. Include information like their: 

• Spending patterns
• Pain points
• Stage of life (whether they’re married, have children, own a home, are retired, etc.)

Once you’ve nailed down your target market, it’s time to analyze how big that market is and how well you’ll be able to penetrate it. For that, look at TAM SAM SOM: 

• TAM (Total Available Market) is the total market demand for a product or service.
• SAM (Serviceable Available Market) is the segment of the TAM that is within your geographical reach.
• SOM (Serviceable Obtainable Market) is the portion of the SAM that you can capture.

2. Plan Your Subscription Box Website 

If you were starting a brick-and-mortar company, you would have to make plans for your physical store. For a subscription box company, your website is your storefront. Your business plan should include your plans for the website and the tools you’ll use to make it excellent. 

Choose your eCommerce Platform Wisely

Large companies might build eCommerce capabilities into their websites on their own. For most smaller businesses, however, it makes more sense to use an e-commerce platform. An eCommerce platform is a software that facilitates buying and selling online. It may offer features like inventory management, security, marketing tools, design options, and analytics.

Some of the most popular eCommerce website platforms are:

• WooCommerce
• BigCommerce

You may also want to consider taking the approach of headless commerce for your eCommerce website. 

Headless commerce involves decoupling the frontend (the customer-facing presentation layer) and the backend (the infrastructure that keeps the site running). Headless is growing in popularity thanks to the agility and other benefits it provides. 

Research your options and include your choice in your business plan. Factors to consider include the cost of the platform, whether its traditional or headless, available features and integrations, scalability, security, and whether the design options match your brand’s aesthetic.

Relevant Read: How to start a subscription box business in shopify?

Add Subscription Management functionality

Since your business is subscription-based, you need to integrate a tool into your website that will manage eCommerce subscriptions and recurring payments. This kind of solution handles things like accepting recurring payments for your eCommerce store, helps in recovering failed payments and enables you to experiment with different pricing strategies.

For example, futuristic food maker Soylent turned to Chargebee for subscription management. Chargebee helped Soylent manage tens of thousands of subscribers with minimal engineering overhead.

Your choice of subscription management platform is important because it can provide so much more than monthly billing . Chargebee offers advanced features like localized payments, promotions, gift subscriptions, refund options, PCI compliance, and proration logic . 

When you’re choosing a tool to manage subscriptions, consider the different devices and channels your customers use. Chargebee delivers a consistent customer experience to users whether they’re interacting with your site on iOS, Android, or desktop. 

As with eCommerce platforms, many subscription management platforms, including Chargebee, are now headless . This makes the platform more flexible by allowing you to alter or scale each function (like billing, taxation, revenue analytics, and more) independently without breaking the systems around it.

Other Integrations for Your Subscription Box Website

There are all sorts of integrations and plugins you can use with your website to enhance your business. Shopify, for example, offers over 4,000 integrations. 

These integrations expand the functionality of your website and give you the opportunity to build your ideal subscription experience for your customers. They allow your existing tech stack to work together and make it easy to add features to your site as you grow. Make sure the plugins and integrations you choose are maintained and updated regularly.

Common integrations for a subscription box business include:

• Email marketing
• Accounting software
• Social media platforms

Make a list of key website integrations in your business plan.

3. Develop an Operational Plan 

You’ve identified your target market, analyzed the competitive landscape, and made a plan for your business’s storefront. 

Now it’s time to talk about operations. Where will you get your products, and how will you send them to your customers? The operational section of your business plan details procurement, packaging, shipping, and fulfillment. 

Procurement

You can’t have a subscription box service without products to put into the box. While that might seem obvious, how to source those products is sometimes less clear. 

If you’re creating your own products, include your production plan — such as which manufacturing facility you’ll use — in your business plan. 

Another option is to purchase products wholesale or for a low price. Make sure the market supports a subscription box price that’s more than what you paid for the products. 

Finally, some subscription boxes offer sample products from a variety of companies. It’s in the interest of the vendors to provide these samples for free or at a very low price because doing so will introduce new customers to their products. 

One of the most well-known subscription boxes, Birchbox, initially relied entirely on procuring free samples from vendors.

If your subscription box follows this business model, negotiate with vendors. Show them information about your target market and buyer personas to reassure them that they’ll get repeat customers out of the deal. 

How your subscription box looks can be as important as what’s inside it. Your subscribers should know at a glance that the package they receive isn’t just any old box but an exciting monthly delivery from your company. 

They might even show a friend or post the box on social media, so you want your branding to be visible and memorable. 

Ideally, the packaging will fit the box’s theme. For example, Retro Pop Box has a box design with an ‘80s feel. The box for the Once Upon a Book Club looks like a book. And the team at CatLadyBox says it’s no coincidence that the box is perfectly sized for your cat to sit in.

There are digital printing services like BoxUp and PackLane that you can use to create your boxes. 

In addition to the boxes’ appearance, you should consider their size and weight. Consider how many products you’ll be sending in each box to determine what the dimensions need to be. Add those details to your business plan.

No one likes paying for shipping. Of course, a subscription box service is pretty heavy on shipping, so you have to find ways to reduce your own costs while making the shipping fee acceptable to the customer.

It’s also important for customer satisfaction that their boxes arrive on time. 

Your business plan should include information on which shipping company you plan to use and how much you’ll charge the customer for shipping. Many subscription box companies offer “free shipping” by including the shipping costs in the subscription price. 

• Fulfillment

You’ve got the products, and you’ve got the packaging. The next thing to add to your business plan is how you’ll get the box ready to ship. 

You have two choices: You can either package and ship the products yourself, or outsource the work to a fulfillment center. 

Doing it yourself may be necessary if you’re procuring products from a wide variety of sources. 

It can also save money when you’re a very small business, but if your business grows, it’s not economical. You may struggle to keep up with orders, leading to disorganization and errors. You may not have storage space for all of the products or be able to afford the labor costs involved with fulfillment. 

Working with a fulfillment center is efficient and scalable. For example, Ipsy is able to send orders to millions of subscribers by partnering with Saddle Creek Logistics Services. 

4. Write a Sales and Marketing Plan

You could have the best subscription product in the world, but if you don’t promote it well, no one will buy it. 

Your investors and stakeholders know this and want to see a convincing sales and marketing strategy for your subscription box. Here are a few things you can include in this strategy.

Branding refers to the things that people associate with your company, like its name, visual style, and voice. It’s a key way that customers will differentiate your subscription box from the competition. 

For example, KiwiCo boxes come in the company’s signature green color that you’ll also see in its logo. 

Your business plan can include elements of branding like: 

• Company name
• Color palette
• Voice and personality
• Brand values

Marketing Channels

Which methods will you use to promote your subscription boxes?

Different subscription box brands rely on various channels. For example, beauty product seller Ipsy promotes its monthly Glam Bag by working with influencers who already have large followings. 

Potential channels to focus on for subscription box marketing include:

• Social media
• Web content
• Paid advertising
• Influencer marketing 
• Affiliate marketing

Sales Tactics

Your business plan should also include a high-level plan for your sales team. 

What will your team look like? What methodologies will they use to deliver results? How will you measure their progress?

Think about the offers and promotions you’ll create. Incentives like a limited-time percentage discount can drive customers to buy a product. Think about your target customers and the offers they’re likely to appreciate and include them in your business plan. 

5. Determine Costs and Upfront Investments 

The average startup cost for a subscription box business is $13,936 . It’s important to determine how much you’ll have to invest in your new company upfront and to include this information in your business plan. 

The costs to consider including in this section include: 

• Domain name and web hosting
• Procurement of products
• Software tools
• Advertising

In your business plan, detail any investment you’ve already secured and what you predict to obtain. 

6. Develop a Pricing Strategy 

When a potential customer discovers your subscription box, they’ll have one question: How much does it cost?

Picking the right price point is an essential part of creating an attractive subscription box offering. In this section of your business plan, talk about how much your box will cost and why you chose that amount. 

When you’re determining the cost of your subscription box, think about factors like:

• The cost of procurement, fulfillment, and shipping
• How much your competitors are charging
• The value of the product to customers
• Customer lifetime value
• Customer acquisition cost
• Profit margin

You also have to consider what types of subscriptions you’ll offer. Will you have different pricing tiers, and will you offer pay-as-you-go boxes? Will you accept payment monthly, or will subscribers have to commit to a longer contract?

You have a few pricing plan options. Indicate the one you choose in your business plan. 

If you choose flat rate pricing, all subscriptions cost the same amount. For example, Candy Club only has one price for its candy boxes: $29.99 per month. 

Tiered Pricing

Tiered pricing is extremely popular with subscription box services. With this pricing scheme, different versions of the box are created with different values. 

For example, CatLadyBox has the CatLadyBox, which includes cat accessories, and the slightly more expensive CRAZY CatLadyBox, which also includes cat toys. 

Pay-As-You-Go

Many subscription box companies let customers buy individual boxes with no subscription, this is called as pay-as-you-go pricing model . This is offered in addition to subscription plans and can be a good way to let customers try your product before committing to a subscription. 

For example, KiwiCo lets customers shop for individual boxes on its website.

7. Create Your Financial Plan 

The financial section of your business plan assures the reader that your subscription box will turn a profit. 

Here’s what you need to include in this section:

• Sales forecast : Your annual revenue projections and cost of goods sold (COGS).
• Personnel plan : How much you plan to pay each of your employees.
• Break-even analysis : Determine when your business will break even and begin making a profit. 
• Profit and loss statement : Your projected profits (or losses).
• Cash flow statement : How much cash you have, where it’s coming from, and when it’ll come. 
• Balance sheet : A statement of your business’s assets, liabilities, and capital.
• Use of funds : Where investments will go and why. 

The subscription box business model is more popular than ever, and your box could be the next big thing. But to achieve your idea’s full potential, you need a plan. 

Use the subscription box business plan laid out by us to set goals and formulate your strategy. This plan will be valuable for internal stakeholders as well as investors and lenders. Looking for a way to manage billing for your products? Try Chargebee’s subscription box billing .

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• 10 min read

How to start a subscription box business that (actually) sells

This post was last updated on January 22, 2024.

Subscriptions have come a long way. These days, weekly subscription boxes are more likely to arrive on your front porch than a newspaper—and during the pandemic, subscriptions became one of the Internet’s most profitable eCommerce business ideas .

Sales from subscription eCommerce grew 41% from 2019 to 2020, according to eMarketer , and are expected to grow another 64% by 2023.

The success of the subscription model is due, in part, to a win-win formula: subscribers enjoy fun finds, convenience, and savings. Meanwhile, they spend up to 2.5 times more than regular customers, according to McKinsey —a boon for businesses.

Read on to learn more about the different types of subscription boxes you can offer, how to decide whether a subscription service is the right business idea for you, and how to get started.

Read Also: How to start a business

Subscription box basics

By now, you’re probably very familiar with subscription services—maybe you even use one (or several) yourself. But it’s worth a closer look at how they work to determine whether they’re a good fit for your business.

What are subscription boxes?

Subscription boxes are a type of recurring order that automatically gets shipped out to customers on a set schedule. Subscriptions are available in a wide range of product categories and prices.

Subscription boxes are especially popular among younger shoppers: around 34% of millennials and 22% of Gen Z shoppers are currently trying and are likely to continue using subscription services, according to GfK’s FutureBuy report .

While some brands are built solely on a subscription model, plenty of retailers have leveraged subscription services to encourage repeat business.

How to start a subscription service

If you’ve determined a subscription box business is right for you, then it’s time to start planning. A successful launch depends on careful planning, goal-setting, and advance coordination.

Six steps for starting a subscription service:

Find your subscription box niche

Align subscription price, product, and frequency

Develop a prototype subscription box

Supercharge customer service

Launch and promote with strategic marketing

Monitor and adjust

01. Find your subscription box niche

Start by defining a specific niche for your subscription box service. Are you going to target your top spenders, buyers of a specific product category, or a particular demographic?

If you’re not sure, start by looking at your most popular or frequently bought products. Who’s buying them? How often do they repurchase your products? What can you simulate via a subscription program?

Alternatively, you can take a look at the competitors in your industry. Conduct a competitive analysis of others who are selling subscriptions, and identify any market potential that they’ve left open.

You’ll want to get as detailed about your ideal subscriber as possible, understanding their needs, motivations, spending habits, values, and more. After all, an 85-year-old resident in Wyoming will likely want a different snack box than a 23-year-old hipster in New York. Use your persona’s desires and needs to determine your subscription frequency, box contents, and branding.

Other ways to hone in on your ideal customer:

Survey your customers

Look at customer reviews for other subscription services—what do people love or dislike about them?

Identify trending products via social media or tools like Google Trends

Perform keyword research around top products or subscription services in your industry

02. Align subscription price, products, and frequency

Create the parameters for your subscription service itself. Of course, you can adjust your goals and offerings over time, but it’s essential to have concrete metrics in place so you can measure your progress. To start, decide:

What is the overall business goal?

Are you trying to capture a new market, or better retain existing customers? Are you looking to generate the highest possible revenue upfront, or perhaps drive more sales in the off-peak season? By prioritizing your goals, you’ll likely have an easier time deciding on the right pricing, product selection, marketing plan, and more.

For example, if your goal is to elevate your brand, you might opt for a curated quarterly assortment of premium products, targeted to your high-value customers. For each shipment you could choose deluxe packaging and include a hand-written note on fine stationery. By contrast, if your aim is to acquire new customers and raise overall brand awareness, you could offer a small assortment of fun low-cost finds, with splashy but inexpensive packaging, marketed primarily on social media.

How often will you ship subscription boxes?

Do you want to offer your subscription box on a weekly, monthly, or yearly basis? This can depend on:

Products - How often do your customers need your products? How long will your products last? For replenishment subscriptions, calculate intervals between orders from existing customers, if available, to determine what intervals to offer.

Budget - How often can you afford to ship your products, considering the resources involved in logistics, the shipping costs, and the price of your product packaging?

Buzz - To maintain customer enthusiasm, you’ll need to strike the balance between regularity and exclusivity. How often should you ship to remain top-of-mind, while still maintaining anticipation?

What’s included with a subscription?

If you’re launching a curated subscription service, design shipments to give customers a sense of quality, value, and essence of your brand. A mix of top sellers and lesser-known products in a variety of sizes, colors, or flavors can give your box an “eye candy” appeal.

If you’re offering a replenishment box, focus on providing the right amount of items to tie your customers over until your next shipment. How long will a shaving kit last? How many ounces of tea do customers need per week?

For membership subscriptions, consider what perks you can offer that are both practical and luxurious. In addition to free shipping or discounted prices, you could offer VIP consultations, invitation-only classes, or birthday treats.

How much does a subscription cost?

Develop a product pricing strategy that aligns with your goals, customer expectations, and your chosen subscription model. Curated assortments tend to command a premium, while replenishment subscriptions are often value-driven.

Prices may also depend on subscription length. You might offer a slight discount for subscribers who commit to an annual subscription versus a month-to-month plan.

Remember to think through how perks align with existing discounts and loyalty rewards you may offer. For example, if members get 20% off merchandise with every purchase, will you apply that discount to already-slashed prices on Black Friday?

It goes without saying that whatever price you land on, you must ensure that you’re turning a profit. Make sure that you’ve factored in the cost of marketing, packaging, storage, fulfillment, and other fees associated with your program.

03. Develop a prototype subscription box

Once your parameters are set, create a prototype to use for marketing purposes and to serve as an introduction to your subscription service.

Prototyping goes beyond finding the ideal product assortment; you need to build and test every aspect of the customer experience. This includes:

Suppliers - If you’re outsourcing products for your subscriptions, thoroughly research suppliers and negotiate a price that works for your budget. If you haven’t used a supplier’s products yet, order samples to ensure quality and understand what you’re sending your customers. When you can personally vouch for the products you sell, you can provide better customer service and marketing.

Packaging - When customers open your subscription boxes, you want them to feel delighted. Emotion is a powerful driver for purchase, and a unique unboxing experience also begs to be shared. Consider what type of packaging fits your budget and your audience, whether that involves minimalist eco-friendly materials or bright colors and confetti.

The eCommerce site experience - Whether you’re building a new website or adding to your existing one, check that your eCommerce website templates are capable of hosting a subscription service. This goes well beyond attractive site templates—rather, your platform should support product subscription options, recurring payments/auto-renewal, and easy subscription management. Wix eCommerce, for instance, includes subscription box features to simplify everything from fulfillment to self-service subscription tools for your customers.

Behind-the-scenes logistics - Put your fulfillment center to the test, and establish processes to ensure prompt, reliable subscription fulfillment. Flesh out your plan for dealing with voluntary or involuntary cancellations and customer queries. Consider running a test with friends and family to ensure that these systems interoperate as smoothly as possible prior to offering your subscription publicly.

04. Supercharge customer service

When you launch a subscription business, your customer service teams need to deliver on a whole new level. Get ahead of customer questions by building out self-service content, subscription-related information, and various customer service options, backed by well-trained professionals.

Clarify your rules for shipping and returns, and include prominent links throughout the subscription onboarding experience. What are your shipping fees? Do you ship internationally? How long after purchasing can a customer return a box? Do you refund subscriptions, and under what circumstances?

In addition, prepare for inevitable cancellations with an “offboarding” process (e.g., asking why a subscriber is leaving and/or suggesting options to keep them around). A thoughtful approach can even recoup 15% to 30% of would-be cancellations, according to ProfitWell .

05. Launch and promote with strategic marketing

When your subscription box is ready to see, promote it prominently across your site, emails, search ads, and social media. While you should tailor the specific marketing mix to your subscription service’s target persona, consider these tactics to help your program take off:

Cross-promote and coordinate messaging across your own marketing channels. Include your brands’ social handles on your product packaging and encourage customers to tag your business in their posts. This will help new customers find you and encourage engagement online.

Encourage reviews on your online store and product pages. This creates a bank of word-of-mouth marketing and testimonials you can re-use in promotional campaigns, plus provide actionable feedback.

Consider reaching out to bloggers and influencers to promote your subscriptions. Around 72% of Gen Z and millennial shoppers follow influencers, according to Deloitte , and 56% say they’ve purchased a product featured in a post by someone they follow. By partnering with content creators, you can build your brand credibility and expand your commercial reach.

View a list of 14 eCommerce marketing strategies for more inspiration.

06. Monitor and adjust

Now that your subscription business is up and running, revisit the goals and metrics you established prior to launch. Track performance carefully. Analyze sales performance, customer feedback, product reviews, and social posts to optimize your offering.

Don’t be afraid to adjust your subscription service—just be transparent with existing customers about what changes are coming, with ample lead time to allow them to cancel or change their subscriptions as needed. If you’re making changes in direct response to subscriber feedback, let them know this; you may earn plaudits and trust for responding to customers' needs.

3 types of subscription box business models

Here are three popular ways to structure your subscription service, with examples of how Wix merchants are leveraging them.

01. Curation

Under this model, shipments contain a selection of one or more items based on a theme, style, or customer preference. The purpose is usually to introduce subscribers to expert-picked goods and/or new products and brands. Apparel brands like Stitch Fix pioneered the curation concept. But curated boxes are now prevalent in various categories, ranging from wine to wellness to beauty. House of Suppliez  is one such beauty supplier that offers several types of monthly subscriptions that makes it easy for customers to discover the latest nail business  trends.

02. Replenishment

The replenishment model offers a way for customers to conveniently restock on their most-used items, such as toiletries, food, or household supplies.

For example, online food marketplace Napa Wild  offers weekly shipments of fresh produce boxes, with the option to choose a “100% organic” or “organic/conventional mix” of goods. Since Napa Wild boxes contain perishable food, subscription boxes are limited to areas located by the company’s headquarters in Napa County, California.

03. Membership (aka access)

A membership model focuses on giving subscribers access to exclusive pricing and other perks with their subscriptions.

Amazon Prime and Walmart Plus are two of the most well-known examples of this, but retailers of all sizes offer paid memberships to boost brand loyalty, beef up AOV, and subsidize the cost of free shipping.

For instance, home and wellness retailer MightyNest  combines its subscription box services with membership perks. MightNest members can enjoy free shipping on all items across its online store, plus up to 35% off everything every day.

Pros and cons of subscription business models

A subscription service may sound like a no-brainer. However, there are various benefits and challenges to be aware of.

The upside: more cash. The challenge: higher costs.

With a subscription offering, you can charge a membership fee right away or incentivize upfront prepayment, resulting in a healthy boost to your bottom line with every signup. Even better, subscription services offer predictable, recurring income.

However, running a subscription business also requires thorough planning and investment. It can add an extra layer of complexity to your operations between managing virtual subscriptions (including new signups, late payments, renewals, and cancellations) and managing the eCommerce logistics  behind it. Moreover, you’ll need to plan out your marketing and packaging plan.

The upside: built-in loyalty. The challenge: customer churn.

Subscription boxes inherently generate repeat customers and recurring revenue. And by including products that customers may not have tried on their own, subscription boxes can help to build up interest in new and/or higher value items—thereby increasing a customer’s lifetime value.

With that said, the key to generating momentum is keeping subscribers enrolled—and therein lies the challenge. More than a third of consumers cancel their subscriptions in less than three months, and over half cancel within six months, according to McKinsey . Higher churn rates makes it harder for you to recoup acquisition costs, so you’ll have to effectively differentiate your box and price competitively.

Note: involuntary churn caused by glitches like expired credit cards is another potential headache, accounting for over half of all subscription cancellations, according to billing vendor Chargebee .

The upside: less excess inventory. The challenge: personalization rules.

Overstock items that haven’t caught on can be more appealing if packaged with other curated items, or if thrown in as an extra thank-you treat for subscribers. In this way, a subscription service can provide an avenue to keep inventory moving.

However, the potential challenge comes with balancing these practical considerations with customers’ expectations for personalized assortments. More than seven in 10 consumers expect personalization whenever they shop online, McKinsey found. That expectation may be heightened when it comes to subscription products, which aim to align shipments with customers’ personal tastes. Undercutting that promise with random inventory can breach trust, leading to cancellations and a tarnished reputation.

Ready to create a steady cash flow and spark a loyal customer base? Start your own business and sell subscriptions with Wix today.

How to start a subscription business box FAQ

What is an example of a subscription model.

There are countless examples of subscription models in our everyday lives. Here are a few common ones:

Streaming services: Netflix, Hulu, Spotify

Software as a service (SaaS): Adobe Creative Cloud, Microsoft Office 365

Membership clubs: Costco, Amazon Prime

Subscription boxes: HelloFresh, BarkBox

Mobile apps: Headspace

Gyms and fitness studios: Planet Fitness, Orangetheory

Newspapers and magazines: The New York Times, The Wall Street Journal

Cosmetics: Birchbox, Glossybox (deliver curated beauty products monthly)

Cloud computing: Amazon Web Services (AWS), Google Cloud Platform (offer on-demand access to computing resources like storage, servers, databases)

Is a subscription business profitable?

How does a subscription business make money, what is a subscription-based model, what helps subscription models succeed, how much does it cost to start a subscription box.

Allison Lee Editor, Wix eCommerce

Allison is the editor for the Wix eCommerce blog, with several years of experience reporting on eCommerce news, strategies, and founder stories.

• Sell Online

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How to Start a Subscription Box Business

Starting a subscription box business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful subscription box business.

Importantly, a critical step in starting a subscription box business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Subscription Box Business :

• Choose the Name for Your Subscription Box Business
• Develop Your Subscription Box Business Plan
• Choose the Legal Structure for Your Subscription Box Business
• Secure Startup Funding for Your Subscription Box Business (If Needed)
• Secure a Location for Your Business
• Register Your Subscription Box Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Subscription Box Business
• Buy or Lease the Right Subscription Box Business Equipment
• Develop Your Subscription Box Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Subscription Box Business
• Open for Business

1. Choose the Name for Your Subscription Box Business

The first step to starting a subscription box business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your subscription box business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your new business.

2. Develop Your Subscription Box Business Plan

One of the most important steps in starting a subscription box business is to develop your subscription box business plan . The process of creating your plan ensures that you fully understand the subscription box market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your subscription box business.
• Company Overview – this section tells the reader about the history of your subscription box business and what type of subscription box business you operate. For example, are you a monthly subscription box, quarterly subscription box, or a customized subscription box?
• Industry Analysis – here you will document key information about the subscription box industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your subscription box business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your subscription box business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your subscription box business.

Next you need to choose a legal structure for your subscription box business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the subscription box business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a subscription box business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a subscription box business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a subscription box business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your subscription box business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Subscription Box Business (If Needed)

In developing your subscription box business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a subscription box business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a subscription box business that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting a subscription box business, you will need to find a space that is affordable and has enough room to store all of your inventory. You may also want to consider locating your business in a city with a large population, as this will increase your potential customer base.

6. Register Your Subscription Box Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your subscription box business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your subscription box business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Licenses and permits you may need to start a subscription box business include a business license, a seller’s permit, and a general contractor’s license. You may also need a shipping permit. For more information on the licenses and permits you may need to start your business, contact your local government agency.

10. Get Business Insurance for Your Subscription Box Business

You may need multiple types of insurance to operate a subscription box business.

Business insurance policies you should consider for your subscription box business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Subscription Box Business Equipment

There are a few pieces of essential equipment that you’ll need to run your subscription box business. You’ll need a computer to manage your orders, a phone to communicate with customers, and packing supplies to package and ship your subscription boxes. You may also want to invest in a label printer to create professional-looking labels for your boxes.

12. Develop Your Subscription Box Business Marketing Materials

Marketing materials will be required to attract and retain customers to your subscription box business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your subscription box business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional subscription box website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media channels will help customers and others find and interact with your subscription box business.

13. Purchase and Setup the Software Needed to Run Your Subscription Box Business

To start a subscription box business, you’ll need software to manage your inventory, shipping, and customers. There are many different types of software that can help you do this, so you’ll need to find the one that fits your needs. Some popular options include Shopify, Shipstation, and Mailchimp.

14. Open for Business

You are now ready to open your subscription box business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.  

Additional Resources

Subscription Box Mavericks  

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How to Start a Subscription Box Business FAQs

Is it hard to start a subscription box business.

No, It is not hard to start a subscription box business because all you need is a good idea and the drive to make it happen. Additionally, the growth of e-commerce has made it easier than ever to reach customers and start selling your boxes online.

How can I start a subscription box business with no experience?

There are a few things you can do to get started with starting your own subscription box business with no experience. First, look online for resources or attend entrepreneur workshops in your area. Additionally, try reaching out to subscription box businesses that are already established and ask them if they would be willing to mentor you. Finally, make sure to create a business plan and track your progress along the way so you can continually improve your process.

What type of subscription box business is most profitable?

The most profitable type of subscription box company is one that offers a variety of products in its box. This allows customers to try out a range of products without having to go to multiple stores. It also gives them the opportunity to find new favorites.

How much does it cost to start a subscription box business?

It can cost anywhere from $5,000 to $20,000 to start a subscription box business. You'll need to invest in marketing, branding, and product development in the beginning. Additional costs include web hosting, payment processing fees, and shipping materials.

What are the ongoing expenses for a subscription box business?

The ongoing expenses for a subscription box business typically include costs associated with shipping and handling, as well as marketing and advertising. Additional costs may include the design and production of the boxes, customer service, and inventory storage.

How does a subscription box business make money?

There are generally two ways subscription box businesses make money: through the sale of products and services, and through membership fees. Some businesses also generate revenue by charging brands to be featured in their boxes, while others make a commission on every product sold.

Is owning a subscription box business profitable?

Yes, the subscription business model is profitable because it generally involves a high level of customer retention, which means businesses spend less on lead generation to get new customers. The price of the subscription box also often includes the shipping costs which makes it even more attractive to new customers. Subscription box businesses can be even more profitable if they use a tiered pricing strategy in addition to one time purchases.

Why do subscription box businesses fail?

Many subscription box businesses fail because they do not properly assess what their customers want. They may also offer the wrong mix of products, which can frustrate customers and lead to them canceling their subscriptions. Businesses that do not manage customer satisfaction well are likely to see a high rate of customer churn.

Other Helpful Business Plan Articles & Templates

How to write a business plan for a subscription box?

Putting together a business plan for a subscription box can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing subscription box, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a subscription box?

• What information is needed to create a business plan for a subscription box?
• How do I build a financial forecast for a subscription box?

The written part of a subscription box business plan

• What tool should I use to write my subscription box business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a subscription box business plan is so crucial.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a subscription box is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your subscription box to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your subscription box's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Crafting a comprehensive business plan for your subscription box, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your subscription box has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your subscription box, let's delve into the necessary information needed to craft an effective plan.

Information needed to create a business plan for a subscription box

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your subscription box business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a subscription box

Before you begin writing your business plan for a subscription box, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your subscription box.

You may discover that customers are increasingly looking for subscription boxes that offer unique, high-quality products. Additionally, customers might be interested in subscription boxes that offer convenience and value for money.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your subscription box.

Developing the marketing plan for a subscription box

Before delving into your subscription box business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a subscription box

Whether you are starting or expanding a subscription box, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A subscription box might incur staffing costs such as hiring employees to assemble the boxes, package the products, and manage customer service inquiries. It might also incur equipment costs such as purchasing packaging materials, shipping supplies, and a printer for printing labels.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your subscription box, it is time to start creating your financial forecast.

What goes into your subscription box's financial forecast?

The financial forecast of your subscription box will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a subscription box are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

The projected P&L statement for a subscription box shows how much revenue and profit your business is expected to make in the future.

A healthy subscription box's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established subscription box.

The projected balance sheet of your subscription box

The balance sheet for a subscription box is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your subscription box's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your subscription box's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a subscription box is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your subscription box business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the subscription box is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a subscription box.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the subscription box, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your subscription box business plan, let's have a look at the written part of the plan.

The written part of a subscription box business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a subscription box business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your subscription box's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your subscription box, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

As you build your subscription box business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When discussing your subscription box business with a potential investor, it's important to highlight the potential customer base in the area of operation. You can emphasize the population size, demographics, and the number of potential subscribers in the region. Additionally, you may want to outline the area's growth potential and explain how your subscription box can leverage that growth. By providing an overview of the regional economy and customer base, you can demonstrate the opportunity for successful growth for your subscription box service.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your subscription box might offer a rotating selection of organic produce, artisanal cheeses, and craft beer. This will provide customers with access to healthy and sustainable items, as well as unique flavors and products they may not be able to find elsewhere. Additionally, your box could also include recipes and cooking tips to help customers make the most out of their items. Finally, customers could have access to exclusive discounts and special offers on additional items.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When outlining your market analysis in the subscription box business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your subscription box, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your subscription box targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include busy professionals. These individuals may have a hectic schedule and not enough time to shop for clothing or other items. This segment would benefit from a subscription box that provides them with pre-selected items every month.

In the competition subsection, introduce your main competitors and explain what sets your subscription box apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your subscription box.

5. The strategy section

When writing the strategy section of a business plan for your subscription box, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

You may face the risk of customers not receiving their orders in a timely manner. This could lead to customer dissatisfaction and potentially lead to a loss in future sales. Additionally, there may be the potential risk of customers receiving damaged orders. This may result in them not wanting to purchase from your subscription box again, and could lead to a loss of customers.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your subscription box.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your subscription box's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You could have a key asset in the form of a brand name or logo that customers may recognize and associate with your subscription box. Additionally, you might have a website or even a mobile app that helps customers access your services more easily. Both of these could be integral pieces of intellectual property that could differentiate your subscription box and establish a unique presence in the market.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a subscription box business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my subscription box's business plan?

In this section, we will be reviewing the two main options for writing a subscription box business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your subscription box's business plan

Using online business planning software is the most efficient and modern way to create a subscription box business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your subscription box's business plan

Outsourcing your subscription box business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the subscription box business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your subscription box's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a subscription box business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my subscription box business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a subscription box business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your subscription box and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your subscription box business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a subscription box? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Start a Subscription Box Business

A subscription box is a business model that relies on monthly or quarterly subscriptions from customers. These subscription boxes typically have a theme, and items within them will match this theme. Some of the most popular subscription boxes send makeup samples, snacks, beauty products, and stationery.

This business model is far more consistent than other retail business models because it is based on regular purchases from customers. While some subscription boxes are available on a month-to-month basis, most businesses will debit customers monthly unless the subscription is canceled.

If this business model appeals to you, you can find our comprehensive guide to starting a subscription box business below.

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How to Start a Subscription Box Business — Checklist Download

Download our free "How to Start a Subscription Box Business" Checklist in PDF format.

How to Start a Subscription Box Business:

A subscription box business model is an excellent way to ensure a consistent monthly purchase from customers. Before you can launch and market your business, you'll want to do some research, create a business, and set up operations. Our steps below provide a comprehensive guide to launching your subscription box business.

Plan your business.

Do market research..

Market research should try to identify the growth projection of the industry, potential startup costs, your competitors, and your target market.

How to Conduct Market Research:

• Conduct surveys.
• Read articles or books about the industry.
• Ask for feedback on samples.
• Gather statistics about your target market.

Once you have this information, you can begin to form concrete ideas about your specific business model as well as create your sales strategy.

Find a niche or theme.

Most subscription boxes will focus on particular products like beauty and wellness, novelty items, or food. Another option is to have a monthly theme that includes various products. These themes can reflect seasonal changes, a particular ingredient, a specific method of sourcing, or a dietary requirement.

Your market research should reveal what other subscription boxes do for themes and help you identify potential gaps in the market. Cratejoy is a site that lists the most popular subscription boxes with their pricing information. You can search your content ideas here to see who your competitors will be.

Types of Subscription Boxes:

• Snacks from a specific country.
• Beauty products.
• Reading material and literary novelty items.
• Items specific to a hobby or project.
• Seeds and planters.

Create a business plan.

A business plan is of utmost importance if you plan to secure funding from investors. They will need to see your estimated expenses, growth projections, and a detailed description of what the company will do.

In addition to providing investors with a clear picture of your growth strategies, a business plan will help you map out the steps needed to launch and expand your business. It includes measurable goals like improving subscription numbers or hiring more staff.

A business plan should include the following items:

• Executive summary.
• Business description.
• Market research.
• Marketing plan.
• Competition analysis.
• Financial data.
• Future goals.

Secure financing.

There are several expenses involved in selling subscription boxes, such as:

• Packaging material.
• Domain purchase.
• Website creation and maintenance.
• Vendor payments.
• Shipping costs.
• Office/storage space rental (if you choose not to work from home).

One way to cover these costs is by using your savings. However, this may not be viable, depending on your financial status. Securing a small business loan from the bank may be required. Failing this, you could fund your business with a credit card, or you could try crowdfunding.

It is also possible to sell equity in your company or apply for local and state small business grants.

Set your business up.

Choose and register a business name..

Choosing a name is essential, as you will need to create a website to sell your products. Your name should be easy to remember, relevant to your products, and/or unique compared to your competitors (if your name is too similar to a competitor's, this can cause confusion).

Check to see if your business name is available as a domain name. Your website will be where all information and purchasing facilities are, and you need to ensure that the name you have in mind is free before working on logo designs and registering with your state.

You can check to see if your desired business name is already registered by visiting the USPTO website or your Secretary of State website.

You can use domains.google to see if your business name is available as a domain name. Simply type in your business name in the domain format you would like to purchase, and the site will display the available variations that can be purchased. The site also provides tips on how you could improve your domain name by making it easier to remember or simpler to hear correctly.

Create a legal entity.

Choose a legal structure and register your business with the state. This is essential for tax purposes.

Types of Legal Entities:

• Sole proprietorship: Includes only one person who is the owner/operator of the business. There are no employees and all profits are the proprietor's personal income. The sole proprietor personally assumes all liability for the business. You'll likely need to use a schedule C form to report profits and losses.
• Partnership: A business relationship between two or more people who share costs and revenues. Partnerships do not pay income tax but must file an annual return. Taxes are passed on to the individual members of the partnership.
• Corporation: A corporation is a standalone entity with shareholders. A corporation must file an annual tax return and is required to pay corporate taxes.
• S Corporation: S corporations are corporations that pass all profits, losses, deductions, and credits on to shareholders. This is done for tax purposes so that the shareholders and not the corporation end up being responsible for the tax burden. Corporate income is still taxable.
• Limited Liability Company (LLC) : LLCs are regulated by state laws. An LLC can be owned by a person, persons, or a corporation. Depending on the size and location of the LLC, it may be treated as a partnership or corporation for tax purposes. Check your State's laws for more information.

Hire employees.

Initially, you may choose to handle most operations yourself until you can afford staff members. There are, however, several roles that would best be fulfilled by other staff members.

Create a website.

Your website is where all of your sales will take place, so it is important to ensure that it functions correctly and looks appealing. If you don't have experience with building a website, it is worth the fee to hire a website designer. A professional designer will also be able to suggest useful plugins and tools to improve functionality.

Create social media profiles.

Social media advertising has been proven to be highly effective with a wide range of audiences. Your market research should include information about which social media platforms your target market frequents.

Instagram would be a great platform for subscription box advertisements because of the emphasis on high-quality images and videos. Instagram also has an advertising feature where promoted posts have direct links to your website. Followers can also tag your business in stories, which can then be shared by your own page.

Facebook allows you to create a page for your business and share content from there. Facebook users are more likely to read the information on a post, as opposed to Instagram where users prioritize images. Links are easier to include in captions, and advertisements can have call-to-action buttons to streamline the purchasing process.

YouTube is also a good place to post videos about your subscription box to show content, behind the scenes, interviews with suppliers, and other content that viewers may request. Many subscription boxes approach YouTubers to review their products, so you could be advertising on YouTube without posting your own videos.

Find a location.

You may not need office space if you choose to fulfill your orders with dropshipping. However, if you plan on ordering products and packaging them, you will need space for these operations.

One benefit of selling your subscription boxes online is that your location does not need to have frequent foot traffic or retail facilities. Your office will mainly function as a storage and packaging space, and/or a place for staff to work. Your location requirements will mostly be space.

Find vendors and suppliers.

Unless you plan on creating your own products, you will need to source your box items from external vendors. One way to find vendors would be to do a Google search with keywords relating to items you are interested in. You can include area-specific keywords if your box will focus on locally sourced products.

You can also reach out to your community on social media to ask for reliable vendor suggestions. Small business Facebook groups could also be a great source of vendors.

Aside from the content inside the box, you will need packaging materials to house your items. You will need to find a wholesaler for boxes, packing material, and box design or printing.

Choose a reliable shipping service.

If you plan to sell products online, they will need to be shipped. Decide on which areas you will be shipping to, and choose a courier that offers a competitive fee for their services.

You could also make use of an order fulfillment service like the one provided by Amazon Seller Central. This service allows merchants to store their inventory in an Amazon warehouse and have Amazon manage deliveries when items are purchased online. Amazon Seller Central charges $0.99 per item or $39.99 per month with their Pro service.

An alternative to the above process is dropshipping, which refers to when sellers order their stock directly from suppliers, and the suppliers deliver to the client's door. This minimizes delivery fees for online business owners and ensures that there is no surplus of unpurchased stock. Ordoro is a company that offers dropshipping services with positive reviews from clients.

Launch your business.

Unlike brick and mortar stores, an online business needs to be launched on multiple online platforms to gain exposure.

Make your website go live. Once you have designed your website, you will be able to make it 'live', meaning that it will become visible through internet searches.

Advertise through social media. Platforms including Facebook, Twitter, and Instagram have paid advertisement services that may be useful for reaching a wider audience.

Reach out to niche forums, social media groups, and/or newsletters. If your target market is a specific group of hobbyists or professionals, there should be several dedicated news hubs and social media groups that you can approach for advertising opportunities.

Encourage new followers to join your mailing list. This provides your online business with a network of consumers that you can reach through email marketing.

Subscription Box Business Plan — Free Template

Download our free Subscription Box Business Plan.

How do you market a subscription box?

• Reach out to YouTubers and negotiate for them to provide a review in exchange for a free box.
• Develop an affiliate program for influencers to offer discounts to their followers.
• Create social media profiles and acquire followers.
• List your subscription box on Cratejoy and use their marketplace platform.

How much does it cost to make a subscription box?

The cost of your subscription box is dependent on the items you choose to sell, as well as the frequency of box deliveries. Some subscription boxes are sent out monthly, while others are sent out quarterly.

The type of packaging you use also determines the cost, as bigger and sturdier boxes will be more expensive.

Can you sell subscription boxes on Amazon?

Yes, qualified sellers can list and sell their subscription boxes on Amazon. You can also manage your box items on their site.

What is Cratejoy?

Cratejoy lists information about the most popular subscription boxes and allows subscription box sellers to advertise their products.

How do I create a successful subscription box?

Market research will help you to develop a subscription box that consumers want. Doing adequate research is one of the best ways to lay a foundation for success.

The next aspect to focus on is marketing. Try to reach out to YouTubers and influencers and ask them to review your subscription box in exchange for a free sample. This way, you reach more potential customers and gain more followers.

What is a subscription box business?

A subscription box business sells a box of items on a monthly or quarterly basis. These boxes are usually themed, including items such as skincare products, snacks, accessories, and fragrances.

Subscription boxes will debit customers monthly unless it is canceled, offering business owners a regular source of income.

Why do subscription models work?

Businesses will spend more of their marketing budget on customer acquisition compared to customer retention thanks to the nature of a subscription. This also means that there is a somewhat reliable estimate of how much inventory is needed and how much revenue will be earned.

What is the most popular subscription box?

• Dollar Shave Club.
• Ozone Socks.
• Loot Crate.

How much does Cratejoy charge to sell subscription boxes?

Cratejoy charges $39.00 per month for hosting and 1.25% + $0.10 per transaction.

How many people subscribe to subscription boxes?

Birchbox, one of the largest subscription box services, has 2.5 million active users.

What kind of subscription boxes are there?

• Skincare products.
• Tea and tea accessories.
• Coffee and coffee accessories.
• Gin samples.
• Clothing items.

How do I start a subscription business?

Your first step to starting a subscription business is to conduct market research . Next, you should write up a business plan to map out your marketing plan, plans for expansion, and predicted expenses.

What is a curated box?

A curated box reveals the content before a box is shipped, unlike traditional subscription boxes that keep all content a surprise.

What is the difference between a subscription and a membership?

Memberships grant customers access to special discounts on items but it's not a commitment to purchase a box each month. Subscriptions refer to the fixed regular boxes that customers pay for each month.

How do I promote my subscription service?

You can list your subscription service on Cratejoy, Subscription Box Addict, or Urban Tastebuds. Another way to gain exposure is to approach influencers and YouTubers, offering them a free box or discount for reviewing your box.

How much is the average subscription box?

Subscription boxes typically cost between $10.00 and $40.00 per month.

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Subscription Box Business plan

Written by Elma Steven | Updated on April, 2024

How to Write a Subscription Box Business Plan?

Subscription Box Business Plan is an outline of your overall subscription box business. The business plan should include a 5 year financial projection, marketing plan, industry analysis, organizational overview, operational overview and finally an executive summary. Remember to write your executive summary at the end as it is considered as a snapshot of the overall business plan. You need to be careful while writing the plan as you need to consider various factors that can impact the business’s success.

You can spend 3 to 4 weeks trying to write your own Business Plan by browsing through free online resources or hire a professional writer for $2,000. There is a better way to do this-  Download our Subscription Box Business Plan to write a plan in just 2 days .

This depends on your expected revenue and cost. Also, we need to consider the startup cost. Find out the answer- Is Subscription Box Business Profitable?

Table of Contents

Executive summary, how to write an executive summary.

An executive summary should include four sections: an overview, a mission, a vision and an industry overview. The overview section should include details such as the business name, founder details and primary services and products. You can also include any USPs to highlight your competitive advantage. Click on this box to read the details of executive summary writing process. The executive summary should be written at the end and it should inspire the reader to go through the entire business plan.

An innovative Portland, Oregon-based subscription box business, EcoBox Delights promotes sustainability and eco-conscious living via its creative products. Our business, started by Emily Johnson, an avid environmentalist, delivers a curated assortment of premium, eco-friendly items to the homes of our customers every month.

Mission: Our goal is to level the playing field so that everyone may live sustainably. By showcasing eco-friendly items, EcoBox Delights hopes to encourage customers to live a greener lifestyle.

Vision: We see EcoBox Delights as a pioneer in the sustainable subscription box industry, celebrated for its dedication to fair trade, high-quality products, and the promotion of an eco-conscious client base.

Industry Overview:

The worldwide subscription box industry is booming, with a valuation of $25 billion in 2018 and an even more astounding $65 billion by 2027, a robust compound annual growth rate (CAGR) of 16.5%. Convenience, customization, and product discovery are the three pillars upon which this ever-changing industry rests.

Check out this guide on  how to write an executive summary?  If you don’t have the time to write on then you can use this  custom Executive Summary Writer  to save Hrs. of your precious time.

Financial Highlights

Earnings & profitability.

Break-Even Analysis

Business Description

Business Name: EcoBox Delights

Founders: Emily Johnson

Management Team: [You can ignore this/ delete this but its better to provide it]

Legal Structure: LLC

Location: Miami

Goals & Objectives:

• Establish a Diverse Subscriber Base: Aim to get subscribers from all walks of life, from specialized fans to casual shoppers, in the first year. The key is to break your customers down into their unique hobbies and preferences so you can personalize your boxes for each group.
• Enhance Brand Recognition: Establish a solid reputation for your subscription box brand. Get involved on social media, build relationships with influential people or related firms, and use focused marketing methods to boost your brand’s exposure.
• Consistently Deliver Quality Products: Make sure that every subscription box stays true to your brand’s concept and offers high-quality, one-of-a-kind goods. The foundation of trust and a devoted clientele rests on this constancy.
• Expand Product Range and Services: In the next two years, you should strive to expand your membership choices to include more themes or specialty boxes. Weigh the pros and cons of implementing limited edition boxes and supplementary services, such as individualized product recommendations.
• Achieve Financial Stability: In the first three years of operation, you should aim to establish a sustainable model that generates consistent revenue growth. Strategic pricing, effective cost management, and prudent financial planning are all necessary components of this.
• Create a Community Around Your Brand: Create an active community of subscribers by offering them opportunities to participate in activities like social media groups and special events. Client loyalty and word-of-mouth advertising may both benefit from this kind of community-building.
• Incorporate Technological Advancements : Stay updated with the latest in e-commerce and subscription management technologies to enhance user experience, from personalized subscription models to seamless order processing.
• Develop Strategic Partnerships: Your box offers and your network may both benefit from collaborations with local craftsmen, product suppliers, and other enterprises. Opportunities for co-marketing and cross-promotions might also arise via these collaborations.
• Gain Industry Recognition: Aim for industry accolades or features in prominent publications within five years. This recognition can significantly boost your brand’s credibility and market presence.
• Commit to Sustainability and Social Responsibility: Promote ethical sourcing procedures and use environmentally friendly packaging. Take part in community events or form collaborations with charities to show that your business cares about the world around.

Services: 

• Curated Product Selections: Present boxes stocked with handpicked items that are designed to complement certain hobbies, interests, or ways of life. Make sure that subscribers have a one-of-a-kind and enjoyable experience with every box.
• Personalization Options: Make it possible for subscribers to tailor their boxes to their own tastes and requirements. Types of products, themes, or even package contents may be customized in this way.
• Flexible Subscription Plans: Make it simple for customers to cancel or switch plans by offering a variety of subscription plans (monthly, quarterly, or yearly) to meet their requirements.
• Exclusive Products and Collaborations: Incorporate limited-edition or exclusive goods into your boxes, or team up with other businesses or influencers to provide things that aren’t found anywhere else.
• Member-Only Perks: Offer additional benefits to subscribers, such as exclusive discounts, early access to new products, or members-only content like guides, tutorials, or webinars.
• Gift Subscription Options: Allow subscribers to purchase gift subscriptions, providing a unique gift option for friends and family for special occasions.
• Sustainable and Eco-Friendly Practices: Use eco-friendly packaging and source products from sustainable or ethical brands, aligning with environmentally conscious values.
• Interactive Community Engagement: Build an online community for subscribers to share experiences, provide feedback, and connect over shared interests related to the box themes.
• Seasonal and Special Edition Boxes: Offer seasonal or special edition boxes throughout the year, aligned with holidays, seasons, or special events.
• Customer Service Excellence: Guarantee complete client happiness, provide quick response times for support inquiries, and make it simple to manage subscriptions.
• Educational Content and Inserts: Put educational inserts or resources in the boxes to make unpacking more fun and useful, and make sure they tie to the concept of the box.
• Referral and Loyalty Programs: Implement referral incentives and loyalty rewards to encourage subscribers to spread the word and remain loyal to your service.
• Market Research and Feedback Loops: Regularly conduct market research and solicit subscriber feedback to continually improve the box contents and overall subscription experience.
• Custom Brand Collaborations: Collaborate with brands to create custom products that align with your box themes and add unique value for your subscribers.

Financial Overview

Startup cost, revenue & cost projection, profitability & cash flow projection, business model, tips on business model canvas.

The Business Model Canvas is a high-level overview of the business model. It can also be considered as the business model map in the overall plan. The important partners, key activities, value proposition and cost & revenue sections are only some of the nine vital components. A company idea’s complexities may be mapped out, analyzed and communicated with the use of the canvas. It shows the whole picture of a company’s value creation, delivery and capture processes. It helps new business owners hone their ideas, encourage creative thinking and make sound strategic decisions. It’s a helpful resource for coming up with ideas, organizing plans and presenting business models to key players. Check out  the 100 samples of business model canvas.

Tips on SWOT Analysis

It offers a clear lens into a company’s strengths, weaknesses, opportunities and threats. This self-awareness enables effective resource allocation and strategic positioning against competitors. Businesses can mitigate risks, make informed decisions and set realistic goals. In addition, presenting a SWOT analysis in a business plan communicates to stakeholders that the company possesses a deep understanding of its market environment. In essence, SWOT ensures a business’s strategy is grounded in reality enhancing its chances of success. Check out the 100 SWOT Samples

Marketing Plan

How to write your marketing plan.

The marketing plan concisely focuses on customer engagement & competitive strategies, incorporating a marketing budget, promotional channels, brand management and a go-to-market approach. It requires understanding the target audience and competition, setting defined marketing goals and developing a strategy that blends these elements. This approach ensures efficient budget use, leverages appropriate channels for promotion, maintains brand integrity and executes a solid market entry strategy.

Promotional Channels

Social media marketing – $15,000 (30%).

• Platform Focus: Concentrate on platforms like Instagram, Facebook, and Pinterest, ideal for showcasing the visual appeal of your boxes. Share unboxing videos, customer reviews, and themed box previews.
• Paid Ads: Use targeted advertising to reach potential subscribers based on interests, demographics, and online behavior.
• Content Strategy: Regular posts featuring box contents, sneak peeks, subscriber stories, and occasional live Q&A sessions to engage the audience.

Website and SEO ($10,000 – 20%)

• Website Revamp: Ensure your website is visually engaging, easy to navigate, and effectively showcases the unique selling points of your subscription boxes.
• Blog Content: Regularly update a blog with posts related to the themes of your boxes, subscriber stories, and lifestyle tips to drive organic traffic.
• SEO: Optimize your website with relevant keywords associated with subscription boxes, your specific themes, and e-commerce best practices.

Email Marketing ($5,000 – 10%)

• Newsletter: Develop a regular newsletter featuring behind-the-scenes content, upcoming box themes, exclusive offers, and subscriber spotlights.
• Segmentation: Customize emails for different subscriber segments, such as new subscribers, long-term subscribers, and those who showed interest but haven’t subscribed yet.

Influencer Collaborations ($7,000 – 14%)

• Influencer Partnerships: Partner with influencers who align with your box themes for unboxings and reviews, reaching their followers.
• Giveaways and Promotions: Collaborate on giveaways and special promotions to create buzz and attract new subscribers.

Paid Online Advertising ($6,000 – 12%)

• Search and Display Ads: Invest in search engine and display ads to capture potential customers actively searching for subscription boxes.
• Retargeting Campaigns: Use retargeting ads to re-engage visitors who have visited your website but haven’t made a purchase.

Local Partnerships and Events ($4,000 – 8%)

• Local Market Collaborations: Partner with local markets or events to showcase your boxes and offer on-the-spot subscriptions.
• Pop-up Events: Organize pop-up events to create a physical presence, offering a tactile experience of your boxes.

Referral Program ($3,000 – 6%)

• Referral Incentives: Implement a referral program where current subscribers get benefits or discounts for referring new customers, encouraging word-of-mouth promotion.

Brand Management

Social media marketing.

• Brand Voice and Visual Identity:Develop a brand voice that is engaging, friendly, and aligns with the theme of your subscription boxes, whether it’s lifestyle, food, beauty, or another niche.
• Use a consistent visual style across all platforms that highlights the uniqueness and value of the products in your boxes. High-quality images and videos of the boxes and their contents are crucial.

User-Generated Content:

• Encourage subscribers to share their unboxing experiences on social media. User-generated content like unboxing videos and product reviews can significantly boost credibility and attract new subscribers.

Influencer Marketing:

• Collaborate with influencers who align with your brand to reach a wider audience. They can create unboxing videos, write reviews, or share photos using your products.

Search Engine Marketing (SEM) and SEO:

• Develop engaging ad copy highlighting special features like exclusive items, curated experiences, or personalized products.
• Optimize your website with relevant keywords related to your subscription box theme.
• Keep your Google My Business updated if you have a physical location or office.

Email Marketing:

• Regular newsletters can update subscribers on upcoming box themes, sneak peeks, special offers, and new product launches.
• Use segmentation to tailor content to different subscriber preferences or purchasing history.

Partnerships and Collaborations:

• Partner with brands or local businesses to include their products in your boxes, which can also expose your box to their customer base.
• Collaborate with non-profit organizations for special edition boxes, appealing to socially conscious consumers.

Content Marketing:

• Create blog posts and videos related to the themes of your boxes, offering additional value to your subscribers.
• Share behind-the-scenes content about how boxes are curated and packed, highlighting the care and thought put into each box.

Social Media Marketing:

• Regularly post on social media platforms where your target audience is most active. Use these platforms to tease upcoming boxes, announce new products, and engage with your community.
• Host giveaways and contests to increase engagement and visibility.

Offline Advertising:

• Participate in pop-up events, trade shows, or local markets to showcase your subscription boxes.
• Distribute flyers or discount codes in complementary local businesses or at events.

Referral Program:

• Offer incentives to subscribers who refer friends, like discounts on their next box or exclusive items.

Go To Market Strategy

Online presence and community engagement.

• Professional Website: Make a website that looks good and is easy to use. Make it simple for people to subscribe by showcasing the themes and contents of your boxes and including testimonials from satisfied customers.
• Content Marketing: Consistently release content that relates to your boxes’ topics, whether it’s lifestyle advice, product reviews, or industry news. You can establish your brand as an authority in your field and increase traffic from search engines with this material.
• Local Directory Listings: If you own a subscription box or target a certain market niche, it is essential that your company be included in appropriate web directories.
• Partnerships: Partner with like-minded businesses, bloggers, and influencers who can help spread the word about your box. Promotional possibilities and more awareness may be achieved via these collaborations.

Subscription Box Launch and Promotional Offers:

• Launch Event: Consider an online launch event, such as a live unboxing with an influencer or a virtual tour of your box’s contents. This can create buzz and attract early subscribers.
• Introductory Discounts: Offer special rates or bonus items for first-time subscribers. You could also create bundle deals for long-term subscriptions to encourage customer commitment.

Digital Marketing and Customer Relations:

• Social Media Campaigns: Showcase your boxes on social media sites like Instagram, Facebook, and Pinterest. Consistently provide interesting information, such as videos of forthcoming boxes being unpacked, customer testimonials, and previews of previous shipments.
• Email Marketing: Update your subscribers with news about upcoming box themes, unique material, and discount codes by email. Using segmentation, you may tailor communications to each subscriber’s unique tastes.
• Loyalty Program: Implement a rewards system where subscribers can earn points for referrals, long-term subscriptions, or social media shares.

Brand Awareness and Public Relations:

• Local Media Outreach: Reach out to local media and bloggers for features or reviews. Sharing unique stories about your box or its contents can garner media interest.
• Community Involvement: Engage with community events or charities that align with your box’s theme. This not only increases visibility but also enhances brand image.
• Influencer Partnerships: Partner with influencers who can authentically represent your box to their followers. This content can then be shared across your social media platforms.

Performance Tracking:

• Analytics and Feedback: Regularly monitor your marketing strategies’ effectiveness using tools like Google Analytics. Collect customer feedback through surveys or direct communication.
• Adaptation: Stay flexible and ready to adjust your strategies based on performance data and customer feedback, keeping up with market trends and subscriber preferences.

Organizational Overview

How to write your organizational overview.

Organizational overview provides a snapshot of how a company is structured and operates. It outlines the ownership structure, roles, responsibilities of key management personnel and the reporting hierarchy within the organization. This section offers stakeholders, investors and other readers a clear understanding of the company’s leadership and its chain of command. Additionally, it may give insight into the company’s culture, values and operational philosophy.

Emily Johnson’s inventive creativity and dedication to sustainable living are on full display in her expertly crafted EcoBox Delights, which she made in the environmentally aware city of Portland, Oregon. With a background in business and sustainability studies, Emily was driven to start EcoBox Delights by her love for environmental protection. She was able to create a subscription box business that promotes a greener lifestyle and delivers eco-friendly items because to her unique blend of knowledge and enthusiasm.

Sustainable living should not be difficult, boring, or out of reach; this is Emily’s goal with EcoBox Delights. Emily carefully selects an assortment of eco-friendly products, such as organic personal care items and eco-friendly household goods, to include in each monthly box. All of the items here come from reliable vendors and mom-and-pop shops that share our values of ethics and environmental responsibility.

In EcoBox Delights, Emily is committed to teaching her subscribers about sustainability and environmental challenges; her responsibility extends beyond product curation. Share your thoughts, ideas, and inspiration for making daily decisions that are more ecologically responsible with every box.

A standout quality under Emily’s leadership is the dedication to actively engaging with and receiving support from the community. By showcasing goods made and sold by local artists and small companies, EcoBox Delights helps to lessen the environmental impact of shipping and distribution while simultaneously strengthening local economies.

Another important part of Emily’s eco-friendly strategy is the packaging and shipment. In keeping with the company’s philosophy of minimizing waste and environmental effect, EcoBox Delights uses only recyclable, biodegradable, or reusable packaging materials.

Emily makes a name for herself in Portland’s eco-conscious circles outside of the subscription box as well. Hosts educational programs, partners with other eco-friendly enterprises, and is actively engaged in local sustainability projects to educate awareness and support sustainable living.

EcoBox Delights, run by Emily Johnson, is more than just a subscription service; it’s a reflection of her business savvy, her love of the environment, and her desire to bring together people who share her enthusiasm for making a difference.

Positions and Responsibilities

Chief executive officer (ceo):.

The expansion, long-term goals, and strategic trajectory of the company are all under your purview as CEO. Overseeing the whole organization, making high-level decisions, and representing the firm in professional transactions are all part of your job description.

Operations Manager:

Order processing, inventory management, and logistics are all part of the day-to-day activities that this position oversees. The timely assembly and shipment of the subscription boxes is guaranteed by the Operations Manager.

Product Curator/Manager:

Choosing the contents of each subscription box is your responsibility. They make sure there’s a high-quality, consistent assortment of goods that fits the brand and what customers want by researching and sourcing them, negotiating with suppliers, and so on.

Customer Service Manager:

Manages customer interactions, addressing inquiries and concerns, handling subscription changes, and ensuring a high level of customer satisfaction.

Marketing and Promotions Manager:

Plans and executes advertising campaigns to bring in new subscribers and keep the ones they already have. Advertising, social media, email, and collaboration possibilities are all within their purview.

Content Creator/Social Media Coordinator:

Creates engaging content for social media, blogs, and newsletters. This role is key for building a community around the brand and enhancing customer engagement.

Financial Controller:

Manages the company’s money matters, including accounting, budgeting, and financial reporting. They need to keep an eye on the company’s finances and make sure everything is in order.

Data Analyst:

Determines consumer tastes and habits by analyzing subscription data and customer records. Using this data, product selection and marketing tactics may be more informed selections.

IT/Web Manager:

Manages the technical aspects of the business, including the website and subscription management system. They ensure that the online platform is user-friendly, secure, and efficient.

Logistics Coordinator:

Handles the logistics of box assembly and shipping, managing relationships with shipping and logistics providers to ensure timely and cost-effective delivery.

Human Resources Specialist:

Manages staffing needs, including hiring, onboarding, and employee relations. They ensure that the business has the right talent to grow and succeed.

Legal and Compliance Officer:

Ensures that the business complies with all legal and regulatory requirements, particularly in areas like consumer protection, data privacy, and contracts with suppliers and partners.

Operational Overview

Curated subscription boxes:.

• Monthly themed boxes containing a selection of products tailored to specific interests such as beauty, wellness, gourmet foods, books, or hobbies.
• Personalization options based on subscriber preferences and feedback.

Special Edition Boxes:

• Limited edition boxes released for special occasions or holidays, featuring exclusive items or collaborations with brands.
• Option for one-time purchase without needing a regular subscription.

Customizable Boxes:

• Allow subscribers to build their own boxes by choosing from a range of products.
• Options to select the number of items or set a price range.

Gift Subscriptions:

• Special gift packages for various occasions like birthdays, anniversaries, or holidays.
• Include a personalized message and gift wrapping options.

Corporate/Bulk Orders:

• Tailored solutions for corporate gifting or bulk orders for events and occasions.
• Custom branding and packaging options to align with corporate identity.

Eco-Friendly and Sustainable Options:

• A line of boxes focusing on sustainability, featuring eco-friendly and ethically sourced products.
• Use of recyclable or biodegradable packaging materials.

Kids and Family Boxes:

• Boxes designed for children or families, containing age-appropriate products, educational items, or family activities.
• Options for different age groups and family sizes.

International Specialty Boxes:

• Boxes featuring products from different countries or cultures, offering an international experience.
• Focus on traditional, artisanal, or unique items from around the globe.

Health and Wellness Boxes:

• Boxes centered around health and wellness, including fitness products, healthy snacks, and wellness guides.
• Collaboration with health and wellness experts for curated content.

Subscription Add-Ons:

• Additional services or products that subscribers can add to their monthly box, such as premium items, extra products, or exclusive content.

Online Community Access:

• Exclusive access to an online community for subscribers, offering additional content, forums, and special events.

Subscriber Loyalty Program:

• A rewards program for long-term subscribers, offering discounts, early access to new boxes, or exclusive products.

Industry Analysis

Tips on industry analysis.

The industry analysis section offers a detailed exploration of the market environment. It identifies current challenges and potential opportunities within the industry, segments the target market to pinpoint specific consumer demographics, assesses the market’s overall size for growth potential and examines influential industry forces. This thorough analysis is essential for developing strategic business approaches, aligning objectives with market trends and positioning the company for competitive success.

The global subscription box industry is witnessing explosive growth, expected to reach $65 billion by 2027, fueled by a remarkable 18.3% CAGR from 2022. This rapid expansion is driven by several key factors

Source: businessresearchinsights

With a projected valuation of $65 billion by 2027, the worldwide subscription box market is booming. Curated product delivery, which are tailored to individual interests and requirements, are driving this trend because of how convenient and personalized they are. The growth of this sector is being propelled by changes in consumer tastes towards more customized experiences, a wider variety of items, and the proliferation of online shopping and social media. New technological developments are adding to this trend with features including enhanced user experiences, dynamic pricing, and tailored suggestions. There is a wide variety of choices available to meet the demands of the industry’s three primary segments: replenishment, curation, and access subscriptions. Key themes impacting the future include collaborations and partnerships, sustainability, experiential subscriptions, and personalization. Acquisition and retention of customers, operational efficiency, competitiveness, and regulatory compliance are some of the remaining issues. Subscription box businesses may succeed in this ever-changing industry by meeting these problems head-on and jumping on the trend bandwagon, all while providing customers with sustainable, customized goods and using technology to improve their experience.

Other key trends and stats:

• Personalization: Companies are increasingly leveraging data and customer preferences to personalize box contents, offering unique and relevant experiences for each subscriber.
• Sustainability: Consumers are seeking eco-friendly options, leading to the rise of subscription boxes with sustainable packaging, ethical sourcing, and carbon-neutral practices.
• Experiential Subscriptions: Subscriptions are evolving beyond products to offer access to unique experiences and activities, fostering brand loyalty and engagement.
• Collaborations and Partnerships: Companies are partnering with influencers, brands, and other businesses to expand their reach, offer exclusive products, and cater to niche interests.

Source: thebusinessresearchcompany

Industry Problems 

• Customer Acquisition and Retention:Solution: Attract the correct audience with the use of customized marketing methods. Boost client retention by attentive service, high-quality goods, and tailored experiences.
• Managing Inventory and Supply Chain: The solution is to create effective mechanisms for managing inventories. Ensure dependable procurement by cultivating strong connections with suppliers and negotiating advantageous terms.
• Diverse and Appealing Product Curation: The answer is to keep an eye on what consumers want and how the market is evolving. To meet the needs of a wide range of customers, provide a selection of boxes or personalization choices.
• Cost Management and Pricing Strategy: The solution is to find the sweet spot between profitability and competitiveness in pricing. Try buying in bulk or haggling with shipping companies to get a better deal on shipping and handling.
• Effective Marketing and Branding: A solid brand identity should be established. To promote your boxes and engage your audience, use social media, influencer collaborations, and email marketing.
• Customer Experience and Engagement: Our solution is to streamline the unpacking process and actively involve our consumers via various online channels like as social media, newsletters, and community forums. Ask for and consider client input.
• Logistics and Shipping Challenges: The solution is to enhance the reliability of delivery while simplifying the fulfillment operations. Make tracking options available and resolve delivery difficulties efficiently.
• Sustainability and Eco-Friendliness: Sustainability and environmental friendliness are key, therefore make use of recyclables and only buy from companies you can trust.
• Adapting to Market Changes and Trends: Keep an open mind and be quick to adapt to shifting customer tastes and preferences. Substantially change up the contents and concepts of the boxes to keep people interested.
• Data Analysis and Customer Insights: The solution is to learn about consumer tastes and habits using data analytics. To increase happiness, modify your services according to these findings.
• International Expansion and Localization: The solution is to think about cultural preferences, local shipping rules, and customs while growing internationally. Target foreign consumers with locally relevant marketing and product recommendations.
• Building a Community Around the Brand: The answer is to provide opportunities for members to connect with one another, such as user-generated content, special events, or online platforms.

Industry Opportunities

• Flexible Subscription Models: Create a range of subscription plans to meet the needs of customers with varying budgets and tastes. Plan choices include monthly, quarterly, or yearly payments, as well as one-time purchases and gift subscriptions.
• Efficient Online Platform and Scheduling :Create a subscription management software that is simple to use online. Make it easy for users to manage their subscriptions by adding options to stop, cancel, or change them. Timely deliveries are guaranteed by efficient management of inventory and delivery schedules.
• Curated and High-Quality Product Selection: Keep looking for one-of-a-kind, high-quality products to include in your boxes. Always be aware of what your customers want and what’s happening in the industry so you can maintain your products interesting and relevant.
• Diverse and Skilled Team :Put together a staff that excels in a variety of areas, such as marketing, customer support, and product curation. To keep up with the latest trends and provide consistent high-quality service, it is important to provide continuous training.
• Creating an Engaging Customer Experience: Create an exciting and unforgettable unpacking experience by designing your packaging. Improving the customer experience may be achieved by adding customized touches, appealing packaging, and branded goods.
• Robust Communication Channels: Keep in constant, fruitful contact with subscribers. Stay in touch with your subscribers and keep them engaged via customer care channels, social media, and email.
• Comprehensive Range of Services: Offer a variety of box types to cater to different interests and needs, such as themed boxes, limited edition collections, or customizable options.
• Accessible and Convenient Services: Make sure your subscription service has a simple and straightforward web interface. For clients who would rather use their mobile devices, think about mobile optimization.
• Secure and Privacy-Focused Operations :Implement strong privacy and security measures to protect customer data. Be transparent about your use of data and adhere to privacy regulations.
• Tailored Services and Personalization: Provide individualized subscription boxes according to subscriber preferences. Customize items and enhance customization by using client data and feedback.

Target Market Segmentation

Geographic segmentation:.

• Local Residents: Focus on families living in close proximity to the nursing home who are seeking convenient care options for their elderly relatives.
• Specific Areas with Aging Populations: Target regions or neighborhoods with a higher percentage of seniors, where there might be a greater demand for nursing home services.

Demographic Segmentation:

• Age Groups: Differentiate services for younger seniors who may be more independent versus older seniors who may require more comprehensive care.
• Income Levels: Offer a range of options from basic elder care services to more luxurious accommodations and amenities for higher-income clients.

Psychographic Segmentation:

• Health-Conscious Seniors: Focus on residents who are particularly interested in wellness and fitness programs.
• Socially Active Seniors: Offer a vibrant community environment with a variety of social activities, events, and communal spaces.

Behavioral Segmentation:

• Long-term Residents: Tailor services for residents who plan to stay for an extended period, focusing on comfort, ongoing health care, and community building.
• Short-term or Respite Care Clients: Offer specialized programs for short-term stays, catering to seniors recovering from surgery or giving relief to family caregivers.

Needs-Based Segmentation:

• Residents with Specific Health Conditions: Provide specialized care for residents with conditions like dementia, Alzheimer’s, or mobility issues.
• Independent Living vs. Assisted Living Needs: Segment services based on the level of care and independence each resident requires.

Cultural and Ethnic Segmentation:

• Culturally Specific Care: Offer services, meals, and activities tailored to specific cultural or ethnic groups, ensuring a sense of familiarity and comfort for residents.

Technological Segmentation:

• Tech-Savvy Seniors: Integrate technology-based solutions for entertainment, communication, and health monitoring for residents comfortable with technology.
• Traditional Service Preference: Maintain traditional care and communication methods for residents who prefer a more conventional approach.

Market Size

• Total Addressable Market (TAM) for Subscription Box Business: The total addressable market (TAM) is the sum of all possible subscription box service users in a certain area or worldwide. Anyone or everything that could be considering a subscription service for product delivery falls under this category. The amount of the TAM may be affected by factors such as the current state of online shopping, customer purchasing patterns, and the increasing popularity of home delivery services. The total addressable market (TAM) for subscription box services might grow in response to rising e-commerce and a trend towards customized goods.
• Serviceable Addressable Market (SAM) for Subscription Box Business: Within the TAM, SAM is a more narrowly defined market segment that your subscription box company may reasonably aim to reach and satisfy. A number of variables come into play here, including your geographic reach, your target demographics, and the nature of your items (e.g., books, gourmet foods, or beauty supplies). The SAM of a company that caters to those who are passionate about beauty products would vary from that of a company whose subscription boxes are filled with gourmet foods. Gaining insight into your SAM allows you to customize your offers and marketing techniques to resonate with your target audience.
• Serviceable Obtainable Market (SOM) for Subscription Box Business: The SOM represents the share of the SAM that your company has a reasonable chance of capturing. It is the percentage of the market that you can expect to capture with your existing strategy, advertising, name recognition, and level of competition. Your SOM is highly dependent on factors like customer happiness, product originality, price strategy, and marketing efficacy. In terms of subscribers and income, this statistic gives you a more reasonable goal for your company, so you may concentrate your strategy on gaining a larger proportion of the most lucrative and appropriate market sectors.

Industry Forces

Demand in the Market and Current Customer Preferences: Subscription box companies are doing really well right now. It is critical to know what items or topics are popular so that boxes may be tailored to fit their interests. Some examples of popular themes include health, gourmet cuisine, beauty, and hobbies. Another factor that might drive expansion is the growing need for more convenient and tailored shopping experiences.

Numerous organizations provide a wide range of themes and items in the subscription box industry, making it very competitive. Attracting and retaining members may be achieved by differentiating your boxes by greater quality, customisation choices, unique goods, or specialized targeting.

Recent Technological Developments: The most important thing is to use technology to make the subscription process easy, handle orders efficiently, and provide customers with individualized experiences. Efficient logistics and stock management systems, as well as data analytics for customized products, are all part of this.

The regulatory landscape necessitates adherence to rules governing online sales, shipping, and sales tax, particularly when engaging with clients from other countries. Also, be sure you follow all health and safety regulations if your parcels include food, cosmetics, or health items.

Subscription services are susceptible to changes in disposable income and consumer spending patterns brought about by macroeconomic factors. Subscription services that are considered luxuries or not absolutely necessary may see a decrease in demand while the economy is in a slump.

Dynamics with Suppliers: The assortment, price, and quality of the items in the boxes are highly dependent on the suppliers. The capacity to properly manage inventory, keep up with product trends and availability, and cultivate strong connections with dependable suppliers is crucial.

Expectations and Preferences of Customers: It is critical to comprehend subscriber preferences about personalization, product variety, and delivery frequency. Customer happiness and loyalty may be enhanced by adapting to evolving consumer expectations and providing subscription terms with some leeway.

Consumers are becoming more conscious of the importance of sustainability and ethical practices. Sustainable or ethical product sourcing, eco-friendly packaging, and promotion of these methods might draw in customers who are more concerned about these issues.

Strong branding and efficient marketing methods are of the utmost importance. To draw in buyers, highlight the boxes’ distinctive features via content marketing, influencer collaborations, and social media.

Engaging with subscribers via feedback and community building, providing outstanding customer service, and having a strong online presence may increase customer loyalty and word-of-mouth recommendations.

Tips on Financial Modeling & Analysis

It includes essential elements such as an Investment and Capital Expenditure Summary that details the necessary funds, a Revenue Summary that estimates profits, a Cost of Goods Sold (COGS) Summary that details the expenses of manufacturing or services and an Operating Expenses (OpEx) Summary that presents the costs of everyday operations. An Income Statement that shows how profitable the business is, a Cash Flow Statement that shows how liquid the funds are and a Balance Sheet that shows the overall financial health of the organization round out the part. For stakeholders to make educated decisions it is crucial to have a comprehensive picture of the company’s financial health and development possibilities.

Investment & Capital Expenditure

Revenue Summary

Cost of Goods Sold Summary

OpEX Summary

Income Statement

Cash Flow Statement

Balance Sheet

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Subscription Box Business Plan Sample

MAY.14, 2018

Subscription Box Business Plan for starting your own business

Do you plan to start a subscription box business ? Subscription box business has been growing steadily over the last couple of years which has seen a drastic increases in the number of subscribers gaining interest in subscription boxes. The best part about this business is you can exercise as much creativity as you want since there are so many creative ideas you can implement to stand out from your competitors. Everyone gets excited at the thought of receiving a subscription box every month not knowing what the box contains. Statistics have shown that traffic to subscription box sites has grown by over 3,000% in a span of three years. There are so many niche categories to choose from and with a well-laid out subscription box business plan , you’re guaranteed to make good profits.

Executive Summary

2.1 the business.

The subscription box business will be registered as Brandchoice and will be situated in Los Angeles, California. The business will be owned and managed by Raul Davis who’s an experienced Accountant by profession.

2.2 Management Team

Raul Davis who’s the owner and manager of Brandchoice is an experienced accountant with vast experience in the subscription box industry that spans over 10 years. During his career, Raul has worked for top subscription box companies such as Ipsy and Blue Apron gathering crucial experience associated with the subscription box industry.

2.3 Customer Focus

In this subscription box business model , focus will be on targeting customers who love subscription boxes and are excited by the curiosity that comes with not knowing what they will find in a box each month.

2.4 Business Target

Brandchoice plans to offer high quality, niche specific, durable and exciting products to a wide range of customers. After carefully considering local trends, Brandchoice is looking to target both local, regional and international customers with an aim of targeting customers.

Company Summary

3.1 company owner.

Raul Davis is an experienced accountant who has had the opportunity to work in reputable and well known subscription box companies across the United States. Given his past experience, he knows how to start a subscription box business . Raul clearly understands the various aspects involved in niche selection, business strategy and business marketing.

3.2 Aim of Starting the Business

Subscription boxes have become so popular thus necessitating the need to have providers who can creatively cater for customer needs. Customers love subscription boxes because they’re highly convenient and are delivered at your doorstep. With people preferring personalized items, subscription box businesses cater for these needs. The excitement associated with subscription boxes is evidently increasing and for these reasons, Raul found the best approach of how to build a subscription box business that caters for individual customer needs.

3.3 How the Business will be Started

With over a decade in subscription box industry, Raul Davis is an expert in subscription box businesses as he has actively helped many businesses to prosper. Given his accounting experience, Davis understands what needs to be done and has come up with a comprehensive financial analysis for Brandchoice.

Services for Customers

Brandchoice plans to offer its clients a wide range of exciting products. The best part about subscription box business is it directly caters for the needs of customers. Brandchoice hopes to collect information from each customer in order to better understand their likes and preferences with an aim of making customized products. In order to successfully create a subscription box business , it is important to identify the products you wish to sell and try to diversify where necessary. In this case, Brandchoice is planning how to start a monthly subscription box business that will offer customers the following products:

• Art and Culture subscription boxes such as jewelry boxes, toys, paintings and kids books.
• Food and beverage subscription boxes such as chocolate subscription, jams, honey, healthy food bars and baking boxes.
• Home and Living subscription boxes i.e. cleaning suppliers, flowers and doormats.
• Fashion, Beauty and Grooming subscription boxes such as luxury bags, t-shirts, soap, underwear and deodorants etc.

Marketing Analysis of Subscription box business

Demographics are key and Brandchoice knows too well starting a subscription box business must clearly identify and target specific demographics.

5.1 Market Segment

Immigration business plan.

For Brandchoice to meet the needs of its customers, the subscription box business plan s to offer diverse subscription box products whose demand is high. This way, subscription box can effectively reach out to consumers. Subscriptions don’t last forever as customers eventually end them. Brandchoice has done a comprehensive market analysis to only target the right customers with the right products in order to lengthen subscriptions.

5.1.1 Households

Los Angeles has a high population of households that require different types of items for various uses. However, research has shown subscription box purchases are mainly done by households with an income exceeding $100,000. Given the unique nature of subscription boxes, only households with specific interest in unique items will be expected to subscribe for boxes from Brandchoice. This business plan for subscription box intends to specifically offer subscription boxes with products tailored for household use. There’s no doubt, this is a major revenue source for Brandchoice.

5.1.2 Working Class Population

Subscription boxes are a favorite for employed individuals and entrepreneurs earning a steady income. Subscription boxes come at different prices and the concept of monthly payments makes them an ideal choice for salaried individuals with a taste for fine and unique items. Los Angeles is a business hub thus providing a high population of working class individuals who’re likely to commit to monthly subscription of products cutting across various niches.

5.1.3 Women

Women ordinarily love creative and unique items and will therefore to go any lengths to search for customized products. Subscription boxes offer a perfect solution because these boxes are famously associated with various fashion and beauty items. Brandchoice plans to sell fashion, beauty and grooming subscription boxes which are a favorite for women. To succeed in the business, Brandchoice has incorporated subscription box business ideas that target female shoppers who’re considered a key customer segment for the business.

5.1.4 Children

A good number of subscription boxes to be offered by Brandchoice will be geared for children. These boxes contain kids’ items such as toys, children books and clothes that attract parents who want to buy them for their children. The aim of the business is to venture into niches that are appreciated by children in order to capture this lucrative market. Brandchoice is keen to curate products for children to maximize retention and offer a great customer experience.

5.2 Business Target

With the demand for subscription boxes increasing, Brandchoice has created a unique subscription box business plan template that will cater for both local and external customers. Los Angeles is a large city and the business expects to make good sales by putting in place systems that allows for the creation of unique and exciting subscription boxes. This box subscription business model hopes to achieve an annual sales growth of between 15-20%.

5.3 Product Pricing

In order for Brandchoice to achieve its targets, a detailed pricing survey was done in order to come up with a competitive pricing structure after taking into account the market average. Brandchoice also hopes to initially sell its subscription boxes at discounted prices for the first two months.

The subscription box industry has witnessed positive growth and it is expected more people will join this new wave. The appetite for unique and customized products has grown and trends indicate an increase in the uptake of subscription products.

Great Satisfaction

Great communication and coordination. The quality of the work delivered is very professional and exceeded my expectation. I would definitely engage with OGS Capital again in the future. Thank you OGS Capital!

When determining how to create a subscription box business , focus should be how to attract long lasting subscriptions to keep a steady flow of income. With good strategies in place, Brandchoice hopes to reach out to a wide market segment.

6.1 Competitive Analysis

When you start subscription box business , it is critical to analyze the market and come up with the best strategies to grow the business. Despite the growing number of subscription box companies in Los Angeles, Brandchoice has come up with the best strategies to remain ahead of competitors.

6.2 Sales Strategy

For Brandchoice to advertise its subscription boxes, the following sales strategies will be adopted for marketing the business.

• Understand client preferences and what they want in order to minimize cancellations and find out ways of making subscription boxes more appealing
• Find a creative and customer-friendly approach of handling cancellations and returns to keep a positive image of the business
• Provide a good alternative for customers who’re not satisfied with the present subscription plan or model
• Advertise the subscription box business on local media channels such as television, radio and newspapers
• Offer new clients a free subscription box in order to entice and allow them to see the quality of products
• Adopt direct mailing approach for targeted customer segments such as household and corporate organizations
• Advertise the business using digital marketing strategies such as Social media platforms (Facebook, Twitter and Instagram).

6.3 Sales Forecast

To achieve its sales targets, Brandchoice has formulated a detailed sales forecast to show how the subscription box business will perform when it begins operations.

Personnel Plan

Brandchoice plans to hire an experienced and small team of staff to run the subscription business. How to start your own subscription box business requires you to identify your personnel team as well as each role every member will play. It is also important to come up with a staff budget to help the business know how much it will spend on staff salaries.

7.1 Personnel Plan

Brandchoice is owned by Raul Davis who will also become the manager of the subscription box business. As preparations take shape to open the business, the following staff members will be hired to help on how to run a subscription box business . The team is expected to work closely together to facilitate a smooth flow of business activities.

Manager/Owner 1 Marketing Executive 1 Operations Manager 1 Accountant 2 Designers 1 Admin Assistant Those who’re successful will be taken through extensive training in order to familiarize themselves with how subscription box businesses are managed on a day-to-day basis.

7.2 Average Salaries

Brandchoice plans to remunerate staff members the following salaries in the first three years of operation.

Financial Plan

Brandchoice has come up with a comprehensive financial plan that will guide how the business will be run and managed. In this subscription box service business model , key financial parameters have been identified. Raul Davis will raise capital from his personal savings and will be working closely with two investors. Before planning how to start a box subscription business , you need to know about the expenses and costs involved to launch operations. A bank loan for business plan subscription box will be secured to finance any budget deficiencies.

8.1 Important Assumptions

The financial forecast for Brandchoice will be based on the assumptions below.

8.2 Brake-even Analysis

The Brake-even Analysis for Brandchoice is shown in the graph below.

8.3 Projected Profit and Loss

Below is the Profit and Loss information for the subscription box business calculated on a monthly and annual basis.

8.3.1 Monthly Profit

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

8.4 Projected Cash Flow

Below is a summary of pro forma cash flow, subtotal cash received, subtotal cash spent, subtotal cash from operations and subtotal cash spent on operations.

8.5 Projected Balance Sheet

Below is a Projected Balance Sheet for Brandchoice that shows assets, capital, liabilities, long term assets and current liabilities.

8.6 Business Ratios

The following is the Ratio Analysis, Business Net Worth and Business Ratios for Brandchoice.

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Subscription Box Business Plan Template [Updated 2024]

IX. Financial Plan

This Section's Contents

Revenue and Cost Drivers

Capital requirements and use of funds, key assumptions.

[Company Name]’s revenues will come from the fees we charge for our subscription boxes.

The major costs for the company will be the cost of inventory, salaries of the staff, and rent for a prime location. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

[Company Name] is currently seeking $350,000 to launch. Specifically, these funds will be used as follows:

• Office build/lease: $100,000
• Initial inventory and supplies: $100,000
• Working capital: $150,000 to pay for marketing, salaries, and overhead costs until [Company Name] reaches break-even.

The following table reflects the key revenue and cost assumptions made in the financial model:

  5 Year Annual Income Statement

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

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Subscription Box Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan