business plan bookstore

Bookstore Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Bookstore Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Bookstore Plan Here

Bookstore Business Plan

You’ve come to the right place to create your own bookstore business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bookstores.

To write a successful bookstore business plan you will first need to decide what type of bookstore you want to open. Will you be a traditional bookstore, a specialty bookstore, a children’s bookstore, a used bookstore, an online bookstore, or a religious bookstore?

You will need to conduct market research about your bookstore and identify market trends within the book industry. This type of information includes data about customer demographics for your target market, a detailed marketing plan, and a financial plan (full financial projections including profit and loss statement, balance sheet, and cash flow statement).

Sample Bookstore Business Plan

The following bookstore business plan template gives you the key elements to include in a winning plan:

• Executive Summary – The Executive Summary is the most important part of your business plan. It is a brief overview of your bookstore, its products and services, potential market opportunity, and competitive advantage.
• Company Overview – Also called the Company Analysis, here, you will provide a detailed description of your bookstore, its products and other services, and legal structure.
• Industry Analysis – In the Industry Analysis, you will provide an in-depth analysis of the industry in which your bookstore operates including major players in the industry, market size and growth, and profitability.
• Customer Analysis – In the Customer Analysis, you will identify your target market and provide insights into their purchasing habits. You will also create customer segments and discuss your marketing strategy for reaching them.
• Competitive Analysis – In the Competitive Analysis, you will identify your direct competition and provide insights into their strengths and weaknesses. You will also discuss your competitive advantage and how you plan to stay ahead of the competition.
• Marketing Plan – The Marketing Plan includes a discussion of your marketing strategy and tactics along with your pricing strategy. You will also provide a book sales forecast and budget for your marketing activities.
• Operations Plan – In the Operations Plan, you will discuss your bookstore’s day-to-day operations. You will also provide your business goals that you plan to achieve and a budget for your operating expenses.
• Management Team – In this section, you will provide a brief overview of your management team and their experience in the industry.
• Financial Plan – In this section, you will provide a three-year financial statement for your bookstore. This will include your income statement, projected balance sheet, and cash flow statement.

Next Section: Executive Summary >

Bookstore Business Plan FAQs

What is a bookstore business plan.

A bookstore business plan is a plan to start and/or grow your bookstore. Among other things, a business plan outlines your business concept, identifies your target customers, presents your marketing plan and details your financial forecasts .

You can easily complete your bookstore business plan using our Bookstore Business Plan Template here .

What Are the Main Types of Bookstores?

There are many types of bookstores to consider when writing your business plan. Many stores are independently owned and carry a variety of new books from many different publishers. Independent bookstores are able to dictate which authors and genres they want to sell in their store. Other retail bookstores are large national retail stores that have a wide selection of books and accessories. There are also bookstores that focus exclusively on used books to sell. They accept donations of books and sell them at a discount price.

What Are the Main Sources of Revenue and Expenses for a Bookstore?

The primary source of revenue for bookstores is the products sold at the store.

The key expenses for a bookstore are the cost of purchasing the product inventory. Other expenses are the overhead costs for employees, rent, utilities, and any marketing for the store.

How to Open a Bookstore?

When opening a bookstore , you will need to do the following:

• Write a business plan and track your progress. This will help you stay organized and on task.
• Secure funding. This can be done through investors, a small business loan, or personal savings/equity.
• Choose a location. This should be based on your target customer, what's available in the area, and your budget.
• Stock your shelves with books. You can order them from distributors or buy them used from other bookstores.
• Market your business. Use social media, print advertising, and word-of-mouth to get the word out about your store.

Learn more about how to open a bookstore:

• How to Open a Bookstore Business

How Do You Get Funding for Your Bookstore?

Bookstores, along with other similar businesses in the industry , are most likely to receive funding from banks. Typically you will find a local bank and present your bookstore business plan to them. Another option for a bookstore is to obtain a small business loan. Outside investors, crowdfunding, and/or friends or family are other typical funding options.

This is also true for online bookstores, used bookstores, and independent booksellers seeking funding.  

• Sample Business Plans
• Retail, Consumers & E-commerce

How to Write a Bookstore Business Plan: Template & Guide

Have you ever thought of opening your own bookstore?

Well, starting a bookstore is a rewarding venture that combines a passion for books with business savvy!

Whether you aim to open a niche store catering to specific genres, a cozy corner shop stacked with dusty classics, or a vibrant space filled with the latest bestsellers, the first thing you’ll need is a strong business plan.

Need help getting your plan in order? Don’t worry; we’ll help!

Explore this bookstore business plan template that will help you get started, understand what to include in a business plan, and guide you on how to make it compelling for investors.

Sounds good? Let’s dive right in!

Why You Need a Business Plan for Your Bookstore

A business plan serves as a strategic roadmap for your bookstore, highlighting your business goals, strategies to achieve them, and growth plans for the next few years.

Whether you’re planning to start a new bookstore or expand an existing one, you need a well-thought-out business plan to make it successful.

Here are several reasons why you need to write a bookstore business plan:

To get clarity on your vision

Well, writing a business plan helps you crystallize your unique business idea, vision, and short-term objectives. This will force you to consider each aspect of your business, including financial projections, operational procedures, marketing tactics, and long-term goals.

To raise funding

If you want to secure funding, you will need a solid business plan in place, as it shows the viability of your bookstore venture. Also, it is easier for potential investors to understand the financial aspects of your business and learn about the industry and market before making any decision.

To better understand your competitors

Conducting thorough market research is integral for a business plan, allowing you to comprehend the competitive landscape easily. Plus, you will get the information you need about your competitors, including their price points, USPs, market positioning, and target customers.

To identify potential risks

When you create a business plan, you can identify the potential risks and challenges your bookshop may face. By knowing these risks beforehand, you can develop contingency plans and strategies to mitigate their impact and ensure the long-term success of your business.

Now that you know the importance of having a business plan , let’s explore the key components you need to include in a bookstore business plan.

What to Include in Your Bookstore Business Plan?

While drafting a comprehensive business plan, you should include the following key sections in your bookstore business plan:

1. Executive Summary

An executive summary is the first and foremost section, providing a high-level overview of your bookstore business plan.

Though it is an introductory part, it would be more convenient to write in the last once the entire doc is ready. Why? It summarizes the most important points you have included in the rest of the plan.

Your executive summary may include a brief description of your business, including.

• Business concept & status
• Vision/mission statement
• Market opportunities
• Your target customers
• Marketing strategy
• Financial highlights

The primary goal of writing an executive summary is to quickly engage the reader and persuade them to delve further into the plan. So, keep this section simple, concise, and compelling enough.

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2. Company Description

The company description section provides an in-depth understanding of your bookstore, starting from its basic information (like its registered name, location, and size) to its long-term plans.

So, this is your opportunity to present your business concept in detail that every potential investor or any financial institution needs to know.

You may also include the following points in this section:

• Type of bookstore you own (traditional bookstore, online store, hybrid approach, specialty store, etc.)
• Business founders
• Core values or short history
• Previous achievements (if any)
• Legal structure(s-corp, an LLC, or a sole proprietorship)
• Short-term and long-term goals

This section introduces your business to the readers, so make sure that it is concise yet engaging.

3. Market Analysis

In the market analysis, you should give a thorough knowledge of the industry in which your bookstore intends to operate, the competitive environment, and industry-specific elements affecting business success.

This will help you identify and understand the target market, along with the customer demographics, psychographics, and preferences.

For instance, you may refer to an example of target market segment of the Maxwell bookstore:

By conducting detailed market research, you could even analyze the top competitors in your area and evaluate the emerging market trends, like digital vs. print selections, emerging genres, etc.

Remember, the main intention of this section is to identify the market gaps and describe how you stand apart from the other bookstores.

4. Products and Services

The products and service offerings section should present a detailed breakdown of what type of books you plan to sell, what you’ll charge for them, and what other services you might offer.

You may include some of the most common product categories such as, magazines and newspapers, religious books, autobiographies, textbooks & educational materials, or stationery.

In addition to that, you may even highlight the services, including book clubs, workshops, reading events, or a cafe.

5. Marketing and Sales Strategy

As the name indicates, this section involves the strategies you’ve decided to attract and retain customers by promoting your business. You may include online and offline marketing or external promotional campaigns.

For example,

• Outline branding principles and logo
• Describe marketing strategies (traditional advertising, digital marketing, author signings, or community events)
• Discuss any collaborations (schools or local organizations)
• Define pricing strategy & sales channels
• Explain loyalty programs or incentives

Overall, these sales and marketing strategies will help investors to recognize how you’ll promote your bookstore and generate sales, making it essential to consider.

6. Operational Plan

As you have clarified your business goals in the previous sections, now it’s time to explain how you’ll accomplish those goals.

In your operations plan section , you’ll need to describe the day-to-day activities required to run the bookstore smoothly.

For instance, consider outlining operational routines like how much staff strength you will require, how you will handle administrative duties, and keep track of inventory.

Furthermore, you may summarize customer service protocols, technology requirements, and bookstore layout plans.

7. Management Team

A well-trained and strong management team is crucial to your bookstore’s success. So, here, you will introduce your management team in this section.

You may highlight the bookstore owners and key manager, along with the educational backgrounds, skills, and experiences that help you grow your business.

Also, try to explain how each member fits their roles and what responsibilities they will take care of, like resume-styled summary. You may even add a personnel budget plan to demonstrate their salaries.

8. Financial Plan

A financial plan is the most important aspect of your business planning. Typically, a bookstore financial plan covers the financial projections for the first 3-5 years.

You may consider including a few critical statements and reports such as sales forecasts, income statements, cash flow estimates, balance sheets, revenue streams, initial startup costs, funding requirements, and break-even analysis.

Here is an example of a balance sheet prepared using Upmetrics:

Besides that, you may discuss essential financial assumptions and include sensitivity analyses for different sales scenarios.

This way, you can demonstrate to financial backers that you have a solid understanding of the finances, allowing them to make informed decisions and see your store’s long-term growth and profitability.

9. Appendix and Supporting Documents

In this section, you may attach any supporting documents that don’t fit into specific sections but support your plan. It includes

• Market research data and surveys
• Licenses & permits
• Supplier agreements or contracts
• Resumes of an executive team
• Store location lease & design blueprint

You may also incorporate any additional documents or attachments that your readers might use for reference.

Download a Sample Bookstore Business Plan

Ready to start writing your bookstore business plan but need more assistance? Well, here you go; download our free bookstore business plan template PDF to get started.

This modern business plan template has been specifically designed for bookstores in mind. It comes with step-by-step guides and examples that help you develop your own plan.

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

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

Now that you have a detailed bookstore business plan outline, it’s much easier to kickstart your plan writing process.

However, drafting a comprehensive business plan from scratch can be a daunting task. But not to worry; Upmetrics could be a great companion here!

It’s a modern, AI-powered business plan generator that helps new entrepreneurs and small business owners create investment-ready plans in minutes.

From easy-to-follow guides and 400+ sample business plans to financial forecasting software, Upmetrics offers everything to streamline the entire business planning process for you.

So, wait no longer; start preparing your plan!

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Frequently Asked Questions

What are the financial projections i need to include in my business plan.

You should include the following financial projections in your business plan:

• Profit and loss statement (Income statement)
• Cash flow projections
• Balance sheet
• Break-even analysis
• Initial funding needs

Is a bookshop business profitable?

According to reports , the bookshop market is expected to increase at an annual growth rate of 1.7% through the end of 2024 and is forecasted to grow at a CAGR of 3.0% in 2029. So, opening a bookshop would be a profitable business for aspiring entrepreneurs.

Is a business plan template essential for opening a bookstore?

Of course, having a business plan template can be very helpful for opening a bookstore. You can use it as a reference point while writing a business plan instead of starting from scratch. It provides a structured outline, pre-designed sections, prompts, and customization options tailored to your specific needs and goals.

Are there any free or paid bookstore business plan templates available online?

Yes. There are both free and paid bookstore business plan templates available online. You may consider using Upmetrics’ free bookstore business plan PDF to structure and detail your business plan outline.

Should I get professional help with writing my bookstore business plan?

It’s not mandatory to get professional help while writing your bookstore business plan, as there are different business planning software available. However, having professional assistance could be a worthwhile investment. It will save time and help create high-quality plans that speak to your financial backers or stakeholders.

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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Bookstore Business Plan Template

Bookstore Business Plan

If you want to start a new bookstore or expand your current bookstore, you need a business plan.

The following bookstore business plan gives you the key elements to include in your own successful business plan. It can be used to create a traditional bookstore business plan or a plan for a used bookstore, religious bookstore, vintage bookstore, specialty bookstore, online bookstore, and many other types of independent bookstores.

You can download our Bookstore business plan template (including a full, customizable financial model) to your computer here.  

Sample Bookstore Business Plan

I. executive summary, business overview.

[Company Name], located at [insert location here] is a new, independent book store focused on staff curated book selections. The cozy bookstore offers a book club, author events and children’s story hour.

Products and Services

[Company Name]will offer a wide selection of books including children’s literature, modern fiction, true crime, cook books, foreign language titles and art books. The store will also feature monthly author events and weekly children’s story time. Gift wrapping service will be provided, and gift certificates will be sold to encourage customers to buy for the children of friends and family members.

Customer Focus

[Company Name] will primarily serve the residents who live within a 10- mile radius of our store. The demographics of these customers are as follows:

• 416,000 residents
• 1,750 workers (who do not live the neighborhood)
• Average income of $54,700
• 38.9% married
• 49.6% in Management/Professional occupations
• Median age: 34 years

Management Team

[Company Name]is led by [Founder’s Name] who has been in the book business for 20 years. While [Founder] has never run a book store himself, he was an assistant manager at another book store previously. As such [Founder] has an in-depth knowledge of the book business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is uniquely qualified to succeed for the following reasons:

• There is currently no independent book store in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
• Our location is in a high-volume area with little direct traffic, and will thus be highly convenient to significant numbers of passersby each day.
• The management team has a track record of success in the book business.
• The book store business is a proven business and has succeeded in communities throughout the United States.

Financial Highlights

[Company Name] is currently seeking $330,000 to launch. Specifically, these funds will be used as follows:

• Store design/build: $165,000
• Working capital: $165,000 to pay for marketing, salaries, and land costs until [Company Name] reaches break-even.

Top line projections over the next five years are as follows:

II. Company Overview

Who is [company name].

[Company Name]is a new, independent book store focused staff-curated book selections. The cozy bookstore offers a book club, author events and children’s story hour.

[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the book business for some time, it was in [month, date] that he decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During his trip, [Founder’s Name] frequented an independently-owned book store that enjoyed tremendous success. After several discussions with the owner of the store, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.

Specifically the customer demographics and competitive situations in the Fort Lauderdale location and in [insert location here] were so similar that he knew it would work. Furthermore, after surveying the local population, this theory was proven.

[Company Name]’s History

Upon returning from Fort Lauderdale and surveying the local customer base, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

[Founder’s Name] has selected three initial locations and is currently undergoing due diligence on each property and the local market to assess which will be the most desirable location for the store.

Since incorporation, the company has achieved the following milestones:

• Developed the company’s name, logo and website located at www…
• Determined the list of products to be offered
• Determined equipment and inventory requirements
• Identified 20 potential suppliers and received preliminary interest from them

[Company Name]’s Products

Below is [Company Name]’s initial list or product categories:

• Children’s Books
• Modern Fiction Books
• Historical Fiction Books
• True Crime Books
• Foreign Language Books
• Self-Help Books
• History & Art Books

The store will offer free gift wrapping service and sell gift certificates in any amount desired. Transactions will be completed by skilled salespeople on the floor of the store, who will offer a high level of customer service and develop ongoing relationships with customers.

Store Design

[Company Name] will develop a 5,000 square foot store whose key elements will include the following:

• Main Bookstore • Reading Nook • Storage Room • Check-Out Counter • Restrooms

The retail location has 20 dedicated parking spots which should suffice even in peak hours.

[Company Name] plans to be open 7 days a week, from 10 AM to 7 PM. As demand dictates, we may extend or reduce our hours.

III. Industry Analysis

[Company Name] directly or indirectly competes with all book stores nearby our store. Competition will come from department stores, specialty children’s stores, and discount mass retail stores. Direct competition will come from companies offering book selections similar to [Company Name].

Over the next five years, industry revenue is projected to increase an annualized 2% to $16.5 billion.

Key industry drivers include an increase in disposable income, leisure time and the increase in self-publishers.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the residents of [company location] and the immediately surrounding areas.

The area residents we serve are affluent and are expected spend more on books per capita than the national averages.

The precise demographics of the town in which our retail location resides is as follows:

Customer Segmentation

We will primarily target the following three customer segments:

• Wealthy Parents
• Twenty and Thirty-Something
• Grandparents

V. Competitive Analysis

Direct & indirect competitors.

The following book stores are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Barnes & Noble Inc.

Barnes & Noble (B&N) is the leading book retailer in the United States, with over 640 stores across all 50 states and Washington, DC. The company offers trade books, paperbacks, e-books, e-readers, magazines, newspapers and other content across its distribution platform, which includes general retail book stores and an e-commerce website. Barnes & Noble also owns Sterling Publishing, a leading publisher of nonfiction books.

After spinning off its college bookstore segment in 2015, the company currently operates through its retail and NOOK segments. Its retail segment consists of both its 640 brick-and-mortar stores and the company’s website, bn.com. The website is one of the internet’s largest e-commerce sites, generating an estimated $886.0 million in 2015. The company’s NOOK segment includes the sale of the NOOK e-reader and revenue generated from e-books and other digital media through the company’s mobile platform. While the company’s retail segment accounts for an overwhelming majority of company revenue, the NOOK segment is used to compete with Amazon’s Kindle platform.

Books-A-Million

Founded in 1917, Books-A-Million is one of the leading chain book retailer in the United States. The company employs 5,500 full-time and part-time workers across its 250 locations. The retailer operates primarily in the Southeast United States through its traditional store and superstore formats. The company’s traditional stores are smaller in size and are often located in enclosed malls. Books-A-Million’s super stores, conversely, are standalone facilities that are larger in size and offer space for browsing, reading, shopping and various promotional events. Over the past five years, Books-A-Million has opened, closed and relocated a variety of stores to rescue struggling profit margins. Additionally, the company increasingly promotes its “Millionaire’s Club” loyalty program to attract repeat customers. These various restructuring attempts have caused the company’s revenue to fluctuate over the past five years. In 2016, company sales are expected to reach $452.9 million.

Powell’s Books

Founded in 1971 in Portland, OR, Powell’s Books is one of the top independent booksellers in the United States. The company revolutionized the book selling industry by offering both new and used hardcover and paperback titles on the same shelf. The store is immensely popular with both the local community and visiting patrons. With a selection of books in over 120 subject areas and 3,500 subsections, the store offers an expansive array of both bestselling authors along with less common niche titles. In 1994, the company launched its e-commerce site, and, within two years, its entire collection was available for purchase online. Contrary to the overall trend of the industry, this small company has thrived over the past five years.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Book Lover Focus: [Company Name] will focus solely on book lovers, which is a fast growing market segment by revenue. By focusing on book lovers, vs. the mass market, we are able to provide a personalized, meaningful shopping experience.
• Management: Our management team has years of book retail experience that allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
• Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all the local leaders and newspapers, as well as suppliers. As such, it will be relatively easy for us to build branding and awareness of our store.

VI. Marketing Plan

You can download our Bookstore business plan template (including a full, customizable financial model) to your computer here.

The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company’s planned promotions and pricing strategies.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Offering personalized, curated book selections in an intimate environment
• Rotating books to always offer the latest selections
• Providing excellent customer service

Promotions Strategy

[Company Name] expects its target market to be individuals living within a 10-mile radius of its store. The Company’s promotions strategy to reach these individuals includes:

Direct Mail

[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will offer discounts and/or provide other inducements for people to visit the store.

Public Relations

We will contact all local and area newspapers and television stations and send them a press release describing the opening and unique value proposition of [Company Name].

Advertising

[Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.

Ongoing Customer Communications

[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products, and more.

Pre-Opening Events

Before opening the store, [Company Name] will organize pre-opening events designed for local merchants and press contacts to create buzz and awareness for [Company Name].

Pricing Strategy

[Company Name] pricing will be appropriate for the high quality and level of service associated with the store. Pricing will be on par with Barnes and Noble.

VII. Operations Plan

Functional roles.

In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:

Administrative Functions

• General & administrative functions including legal, marketing, bookkeeping, etc.
• Sourcing suppliers and managing supplier relations
• Hiring and training staff

Retail Functions

• Customer service and check-out
• Gift wrapping
• Gift certificate program management
• Display rotation and design
• Janitor/maintenance personnel to keep the store clean

[Company Name] expects to achieve the following milestones in the following [] months:

VIII. Management Team

Management team members.

[Company Name]is led by [Founder’s Name] who has been in the book business for 20 years. While [Founder] has never run a retail store himself, he was an assistant manager at another book store previously. As such [Founder] has an in-depth knowledge of the book business including:

• Store operations and management
• Floor sales
• Display design
• Retail marketing
• Hiring and training workers
• Book trends

[Founder] has personal relationships with a variety of suppliers and authors.

[Founder] graduated from the University of ABC where he majored in Communications.

Hiring Plan

[Founder] will serve as the store manager. In order to launch the store, we need to hire the following personnel:

• Assistant Manager (Will handle much of store operations and manage store on [Founder]’s day’s off)
• Check-out and Floor Staff (3 to start)
• Part-Time Bookkeeper (will manage accounts payable, create statements, and execute other administrative functions)

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come from the sale of children’s clothing to customers.

The major costs for the company will be cost of goods sold (supplier costs), staff salaries, 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.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $330,000 to launch its store. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Store design/build: approximately $165,000
• Working capital: approximately $165,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions & Forecasts

Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

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