Columbia Cleaners is a company that will be set up in Hillsboro. The limited liability company, J.C. Copperbeech, owns it. The company will provide dry cleaning and laundry services, as well as garment alterations. They also offer regular home pick up and delivery. Due to our pick-up/delivery service, the company will have its own production facility. However, we will require delivery vans and customer-service trained drivers.
Customers have the option to pay at delivery or via monthly credit card billing. We will send each customer a statement at the end of each billing cycle. It will include details about service fees and charges to their credit card for payment.
The business offers door-to–door dry clean, laundry, and alteration services in Hillsboro (OR) and surrounding areas that will certainly attract customers’ attention. Customers who work may find the service convenient and want to use it. If customers are satisfied with the service, they will likely be repeat customers. Loyal customers are those who return to Columbia Cleaners for their services on a regular basis. These customers will spread the word about Columbia Cleaners to their coworkers and friends. Columbia Cleaners’s image will be enhanced as more customers use this service. This will allow us to gain more market share.
The sales forecast is for a steady increase in the first year with total sales at $324,000. We project modest net profits the first year. Net profits for the second and third years are expected to increase substantially.
1.1 Objectives
Columbia Cleaners provides laundry and garment modification services to Hillsboro area customers.
A sustainable business can be established by the end if the first one year.
Your first year’s total sales exceed $324,000
Producing net profit
1.2 Mission
We will offer dry cleaning, laundry, and clothing alteration services with free home pickup and delivery. Our convenience and high quality will make it easier for customers to work.
Success Keys 1.3
A comprehensive marketing strategy will be key to the success of this business as it enters its first year.
It is important to remember the customers you are targeting have money and will only use your service if they are completely satisfied.
Furthermore, the hours of operation must be convenient and service completion must be timely in order that customers are not harried after a long day working.
Creative Concepts Computer Design will provide computer and technical consulting to local small businesses as well as home PC users. The company will be focusing on quality, marketing, responsiveness, and customer retention.
The Company
Creative Concepts, at first, will be a sole-proprietorship with little outside financing. Creative Concepts, which will be located in Eugene, Oregon, will serve local customers from a studio room within the owner’s home.
Bram Ekstrand will own Creative Concepts in the beginning. The company could expand and add employees, depending on its growth.
The Market
Market research indicates that additional businesses could fill a niche in the market. Due to the extraordinary pace of technological innovation in the computing industry, there is a constant demand for businesses that are skilled at updating and advising customers regarding computer-related issues. Most of our business revenue comes from PC owners at home. These jobs will typically consist of minor upgrades services and advising. Business Week projects that the computing industry will grow at a rate in excess of 12%, and that processor speeds will continue to increase for many years to provide a rich resource for sales.
Creative Concepts is focusing primarily on the home-PC market. These customers are more likely to request simpler, quicker and less resource-intensive jobs than their small business counterparts. This market also offers more flexibility in service times, which allows for a more productive work day.
Eugene and its surrounding areas will be our target market. Creative Concepts is a small business that has been able to access a lot of business through market research. Promotional mediums such as radio and print ads can be used to promote your business if there is a demand.
Two major competitors compete in the computer upgrade market in the greater Eugene/Springfield. VOS Computers (and Suntech Computers) are two of the major competitors in the computer upgrade business. These companies have rates that are higher than Creative Concepts. We expect to be able attract the price-sensitive market quickly.
Considerations for Financial Planning
There are very low start-up expenses. The start-up is a service-oriented business that does not focus on product development. This means that operational costs are likely to remain low.
Fixed costs have been established at a fair monthly level. This should provide for equipment maintenance and the purchase or replacement basic tools needed to deliver our services. Variable costs per unit have been established to account for extra expenses like gas and other travel costs that are specific to each job.
1.1 Objectives
To provide a service in enough demand to generate profit for the community.
To maximize growth, gain a loyal customer base.
Be a positive force in your local community.
1.2 Mission
To contribute to society while providing exceptional quality, value, timely delivery. Each customer will be treated like they are our only customer.
1.3 Keys for Success
Marketing and Networking (being visible to the public).
Being a computer paramedic on-call with quick response times.
Quality (Getting the job done right, 100% guaranteed).
Relationships are about building loyal repeat customers.
Royal’s Software has embarked on an ambitious plan to create a new software product, Royal’s Inventory Basic–a scalable inventory software product. Pursuit Solutions will sell the new product, which is expected to be available in May.
Pursuit Solutions will distribute Royal’’s Inventory Basic through over 1,100 Valued-Added Resellers. This is a $50 Million company hardware integration reseller. The product will retail for $2,499. Each unit sold will earn Royal’’s Software $1,250 Pursuit Solutions will likely sell 250 units each month, according to the six-month projection. The first year of Royal’’s Software sales is expected to bring in $313,000
Product modifications and tech support will be critical components of software sales. Royal’s Software projects $63,200 in product modification by the end of six months.
Royal’, Software has also signed a business agreement to work with Pursuit Solutions and Johnson and Roe (CPA) to create a MAS90 portable interface to collect data that can be used by accounting firms. This software product is in development for the past ten month.
John Royal and Dan Whiteaker were integral to the product’s development. MAS 90, while not a packaged product is bundle with Royal’: Software’s software customization services ($2,000 – $3000). This software product will retail for $2,500
Royal’’s Software will be paid 1/3 of gross sales ($833). From product sales and customization services, Royal’’s Software is expected to gross $500,000.
The two co-owners of Royal’s Software, John Royal and Dan Whiteaker, will each invest $50,000. In addition, the company will obtain a $100,000 short-term loan.
1.1 Objectives
These are the objectives of Royal’’s Software:
Make the company a leader when it comes to inventory software products.
Each year, increase sales 20%
Create one new inventory product each year.
1.2 Mission
Royal’s Software’s mission is to make inventory software affordable that can be scalable and can be modified by customers.
1.3 Keys for Success
Produce products on-time and under budget that meet the requirements and specifications of the customer.
Sagebrush Sam’#8217 will be offering a unique combination, a steak buffet and an excellent price. It is not like a traditional restaurant. Sagebrush Sam’8217’s can meet the growing demand. The public (1) expects value in everything it buys, (2) doesn’t want to be disappointed by anything, and (3) enjoys entertainment as part of its dining experience.
It is becoming increasingly difficult for restaurants to be distinguished in today’s highly competitive world. Sagebrush Sam’s does this by being the only buffet concept that features mesquite-grilled, USDA-choice sirloin steaks, cooked on our display grill, for one low price. Our steaks will be 21-day-aged and hand-cut daily. They are then seasoned to perfection. The grill will be open to all guests and filled with the right amount of steaks. With our high dinner volume, there will be no waiting for a steak since we will have the grill stocked with every degree of doneness. This market has not been tapped by any other national chain. We are confident that this feature will help us succeed in a world where red meat (especially steaks), is increasingly in demand.
The restaurant business plan has been prepared in order to get financing for its initial launch. This financing is necessary to fund the initial year of operations, including kitchen design, architectural plans manuals and recipe books, site selection and equipment purchases. For the second and third units, which are expected to be completed in July, Year 2, and January, Year 3, additional financing will be required. Some of the burden can be offset by our positive cash flow.
Sagebrush Sam’ will be able continue its operations in year one thanks to the capital contributions and financing. Sagebrush Sam’’s initial capital investment will allow it to offer its customers an entertaining, value-driven dining experience. The customers will be treated to an innovative and unique environment in order to make them feel at home. A successful operation in year three will allow for sufficient cash flow to become self-sufficient in year 4.
Objectives
Sagebrush Sam’s objectives for the first three years of operation include:
One unit per year growth for the first three consecutive years.
Keep food costs under 35% of revenues
Maintaining a 16-18% revenue margin for employee labor costs.
The average annual sales of each location is between 3-4 Million Dollars.
Maintaining tight controls on costs and operations by hiring a managing partner/proprietor for each location and utilizing automated computer/Internet control.
Mission
Sagebrush Sam’’s is determined to be the most popular buffet restaurant in the region. We want our guests to have the total experience when visiting Sagebrush Sam’s. Not only will our guests receive a great meal, they will also be provided with a fun atmosphere. Unique things will distinguish us from other restaurants, such as serving USDA-choice sirloin steaks all you can eat on a mesquite grill. We will want the dining experience to be as pleasing to the senses as it is to the palate.
Our goal is to offer high-quality, affordable food. We will have a large variety of freshly prepared meals, most of which will be visible to our guests. Each day, we will have 100 unique items that are packed with flavor and zest for an incredible price.
Customer satisfaction matters. When approached by a customer with a request, our motto will be, “Yes is the answer; what is the question?” We will strive for broad appeal. We strive to be the preferred restaurant for everyone, including singles and families.
Our success will depend on the well-being of our employees. All employees will be treated with respect and fairness. Sagebrush Sam’s wants its employees to feel like they are part of the success.
To achieve our goal of providing entertainment/dining experiences that are both enjoyable and affordable, we will use a combination of atmosphere, ambience, ambiance, friendly staff, and menu variety to create a feeling of “place”.
Keys to Success
Sagebrush SamՉ۪s success lies in these keys:
Our mission is to create an atmosphere that is unique, innovative, fun, and mid-scale, which will distinguish us from the rest.
Execution our primary goal to only serve the highest quality food at ridiculously low prices in clean, friendly surroundings. We must keep this promise 100% of all times.
Controlling all costs in all areas.
It is important to hire the best people and train them.
Scope creep. Consulting clients use the approval process for more consulting without additional payment.
A professional consulting business normally involves a proposal — also called an engagement letter — and acceptance. Accepted proposals are the agreements between client and consultant on what’s to be done, when and how much.
For tracking progress and managing ongoing projects, it is helpful to refer back to the original engagement. This will help you avoid scope creep and helps you track your progress. It’s a critical missing link for most consultants.
Solution
Overture compiles proposals including text, tables, milestones and component tasks. Date and deadline data is included. Overture also provides ongoing progress tracking with tickler functions, communication and billing for the progress. The secret sauce is easy to use tools and a conceptual framework that prevents scope creep.
Market
Prospects may include single professionals as well as small professional firms and individuals within large businesses. The software is affordable at different levels. Individual accounts can be purchased for as low as $19.95 per month.
Competition
Competing software
There aremany good proposal management options span style=”font weight: 400 ;”>.
PandaDoc
RFPIO
Propose
Qwilr
Bidsketch
Osmosis
Loopio
Nusii
Quote Roller
Proposable
Octiv
None of them address scope creep like Overture. They’re all priced high, but few offer the same features.
The real competition
The real competition is using existing word processing tools combined with project management and billing.
Why Us?
A great team of startup veterans has been assembled. They are able to invest their own funds in start-up investments in the middle six-figures. They have strong software and consulting experience.
We value our customers. We believe we are doing what is necessary, will help users succeed, and will provide the best way for them to spend their money.
Expectations
Forecast
We will prioritize high growth over profits in the near future. We want to achieve the kind of high valuations that make a good opportunity for us and our investors.
Financial Highlights for the Year
You will need financing
We plan on a capital investment of $2.5 million.
We are able, as three founders, to invest $240K early seed money in the building of the company to enable us to secure local angel investment.
We are looking to attract $750K angel investment for the Spring 2023.
Series In Spring 2023, venture capital will be available.
The public needs (1) access and access to all communication channels and information on the Internet. (2) access at a fair price and without being economically, politically or socially isolated.
Solution
JavaNet, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. JavaNet’s purpose is to offer a forum for communication and entertainment that is social, educational, and fun.
Market
JavaNet caters to new users as well as those who have been using the Internet for a while and want to share their enthusiasm in a friendly environment. JavaNet will also be a hub for professionals, both local and international, who want to collaborate or check email in a relaxed environment. JavaNet’s computers will be used by these professionals, as well as their laptops to connect to the Internet. JavaNet’s target market is a broad range of ages. It includes members of Generation X, Baby Boomers, and those who grew to be surrounded by computers.
Competiton
Cafe Paradisio Coffee Corner, Full City Coffee Corner, Allann Bros. are the major competitors in retail coffee. These businesses are located in or near the downtown area, and target a similar segment to JavaNet’s (i.e. Business people and students who are educated and upwardly mobile.
Why Us?
JavaNet will adopt a differentiation strategy to be a market leader in cafes. JavaNet stands out from other Eugene cafes by providing Internet service. JavaNet offers Internet service in Eugene and a pleasant environment that includes coffee and baked goods.
Expectations
Forecast
In year 1, we expect to sell more than 500,000 units and nearly 1,000,000 in year 3. Earnings will be in year 2 and 3
Financial Highlights per Year
Need to Finance
Our financing has already been secured as follows:
Wooderful Floors, a start-up company offering wood floor refinishing in the Pittsburgh, Pennsylvania region. The company was founded as a L.L.C. Logan Madison.
Keys to Success
Wooderful Floors has identified several keys of success that will be instrumental in its progression to profitability within the first year.
Attention To Detail: Each floor that is being worked on must adhere to strict, caring standards.
100% customer Satisfaction: Every customer should be satisfied with the job.
Business efficiency. It is essential to analyze all business activities and determine which one is the most efficient.
Competitive
Wooderful Floors will be focusing on the environmentalism and trust to increase market share. Wooderful uses only a water-based final product. This new product, although not as durable as other polyurethane products, is non-toxic and doesn’t release harmful fumes. Because of the toxic fumes, home owners often have to evacuate their home for several days. Wooderful Floors has extensive experience with this water-based product. Logan is the most skilled service provider for water-based product.
Management
Logan Madison earned his Bachelor of Arts degree from Allegheny College. His last few years of employment were as a floor refinisher in a general contractor. Logan began using water-based products within the first month of their introduction and was constantly learning about how to apply them.
Logan will combine his skill set and experience to lead Wooderful Floors into profitability in its first year. Wooderful Floors expects to see steady sales growth for the next two years, with corresponding increases in net profits.
1.1 Mission
It is Wooderful Floors’ mission to offer the highest-quality environmentally-sound wood floor refinishing service in Pittsburgh. Wooderful flooring will quickly develop a loyal base of customers through fair pricing, quality craftsmanship, and 100% customer service.
1.2 Keys of Success
Attention to every detail. Every floor needs to be refinished to perfection.
Wooderful Floors must ensure that customers are 100% satisfied with all their work.
Wooderful Floors should be remembered that floor refinishing takes a lot of work and love. To be a sustainable company, Wooderful Floors must also pay attention to the details regarding business efficiency.
1.3 Objectives
To become the premier environmentally-sound wood floor refinisher.
Profitable within one year
You will see significant improvements in your market penetration.
Centroplex Health System (CHS), Workwell offers a top Occupational Medical Program. It helps to reduce healthcare costs, increase productivity, decrease absenteism as well as improve employee morale. Workwell also attracts and retains high-quality workers and provides a positive return. Workwell, Killeen’s first Industrial Occupational Medicine Program, will help area businesses become more productive while lowering overall costs.
In their attempt to reduce health care costs, employers “want” occupational medicine clinics that provide them with the following components: accessibility, drug screening services, high quality staff, state-of-the-art care, and a wide scope of services. Workwell will help area employers fulfill their ‘#8220’ and #8220 ‘needs.
Workwell’s existence is based upon two simple facts.
Healthy employees are more productive than chronically ill employees.
It costs less to prevent injuries than to treat them after they occur.
Workwell helps employees make healthier choices and reduces company health care costs. It also increases worker productivity. The following factors will impact your health care spending: lower medical insurance premiums and absenteism, lower turnover rates, fewer worker’s compensation claims, fewer tardiness, shorter hospital stays, and lower medical insurance premiums.
Centroplex Health System’s (CHS), relationship is a key advantage for Workwell. CHS is the choice provider for health services in its service region and has already supported the crucial structures that are required to establish a successful Occupational Med program, such Workwell. The structures include an Emergency Department and a free-standing walk-in facility (i.e. COMC), an MCO (currently developing), and a network with primary and special physicians. All four of these structures will form a loop, which acts as a catalyst to bring business into Workwell. Workwell then should refer back into these four structures. This completes the loop. The model proposed is to offer Occupational Medicine services–, Workwell and primary care services in one setting, COMC. The service mix will offer a comprehensive alternative to traditional Occupational Health and Primary Care services for our clients employers. This will create a synergy which expands the market and establishes new relationships. It also reduces operating costs and generates new revenues.
Workwell’s keys to success and critical factors for the next three years are:
Successful marketing strategies/plans for employers are developed and implemented.
Experienced medical and administrative talent are sought after.
Enter the Occupational medicine market and create a brand#8221 before the competition.
Commitment to continuously improve the quality of service.
Demonstrate a financial returns on investment
Senior Management’s commitment
CHS can develop and implement an occupational medicine program based on the business plan. Market research indicates that there were 7,720 total worker compensation injuries last year. CHS treated 2,532. In addition, worker compensation injuries are projected to increase to a total of 9,446 in the next four years. This business plan has a five-year goal to position CHS so that it can treat 5,064 workers compensation injuries, and thus achieve 53 percent market share.
Below is a chart that illustrates the overall highlights of the business plan for the next five-years. Total visits to COMC are projected to increase from 11,085 to 15,918 by Year 5. This will result in an increase in total revenues and net surplus.
1.1 Objectives
Workwell’s key objective is to help ESTABLISH Centroplex Health System and make it the #8220ONE STOP SMOOKING” MEDICAL CENTER OF HEALTH CARE IN ITS SERVICE AREA.
Provide a full continuum of Industrial Occupational Medicine services that provides responsive, quality medical care to all injured employees.
By Year 1, you will provide Occupational medicine services to 10 Killeen employers with 50 employees and 20 small employers with 50 employees.
To expand the market and offer Occupational Medicine services, employers will need to be able to access these zip codes by Year 2.
Expand the target market to provide Occupational Medicine services to the Centroplex Health System Service Area (Bell, Lampasas and Coryell county) employers by the end of Year 3.
Become the Provider of Choice for Occupational Medicine in the service area.
1.1.1 Observation & Recommendations
OBSERVATIONOccupational health programs have been stepchildren in hospitals because they’ve historically not brought in much revenue. But they could become more lucrative if health systems develop the necessary competencies and sell them directly to employers. Providers have to be proactive as they look for new revenue streams, especially as the value of discounted managed care continues to shrink. Occupational healthcare services provides a way to create positive relationships and build trust with local employers.
RECOMMENDATIONS
The underlying factor in these recommendations is TIME IS OF THE ESSENCE FOR DEVELOPING WORKWELL.
Following are the recommendations (options) being made:
Hire a consultant to help you start your program.
Two main reasons for this recommendation: First, expertise is required in developing an occupational medicine program. Second, why reinvent the wheel when we can learn from proven techniques. All the programs reviewed either hired an experienced occupational physician director or an outside consultant to help the program succeed. CHS does not have the expertise to support this effort and is considering hiring a consulting company.
You can also use these reasons:
CHS can now offer formal occupational medicine programs to both area employers and employees in as little as 30 days. You can use the personnel ($$$) needed to develop this program to hire experts to execute their proven techniques. Senior leaders will feel renewed commitment to the program’s success by spending money on consultants.
CHS is at risk of being ‘canned’ and could be subject to legal action, but it is clear that the positives far outweigh any negatives. Three consulting firms have submitted their bids towards this project. These are Concentra Health Services Florida Hospital, and Occupational Health Research. This information has been included in my presentation.
In-house occupational medicine program
Positives:
Save money.
Programming customized.
Negatives:
Time frame
Inadequacy of expertise.
Senior leadership is not committed.
Decision to remain status quo:
If you choose this option, the program will continue to operate as usual.
Positives:
None.
Negatives:
Continue to lose revenue
Potential to lose market share
You don’t have the opportunity to network effectively with employers in your area.
Don’t miss your chance to become a #8220one-stop shop#8221 for health care services.
CHS employees will continue to be injured.
Divestiture by COMC
This option involves placing COMC on a marketplace for sale.
Positives:
There is a lot of money.
You can invest the $$$ to develop or expand new programs.
Leaders can spend more time on issues closer to “home”.
CHS should improve its bottom line, at least in the near term.
Negatives:
Lose new revenue stream.
Gain market share.
Loss or relocation of prime real estate.
It is possible for a competitor to establish itself in the same setting.
You can lose your identity in the market.
1.2 Mission
Workwell, a premier program in industrial occupational medicine, is customer-focused. The team approach aims to deliver quality occupational health, safety, and rehabilitation services. This includes addressing a person’s overall health (body, mind, and spirit) while building and maintaining partnerships with local businesses.
1.3 Keys to Success
Workwell’s key to success is:
Development and implementation of a successful marketing strategy/plan to employers.
Experienced medical and administrative talent are sought after.
Building a career in Occupational Medicine and entering the market
Brand name before the competition
An ongoing commitment to improving the quality of service.
Demonstrate a financial profit on your investment.
Cresta Testing, Inc. (“Cresta” or the “Company”) is an ambitious and innovative global professional services company with a world class track record in testing and quality assurance. Cresta lowers risk, reduces software development costs, and significantly improves time to market for new systems.
With experienced management at the helm, Cresta intends to grow by more than forty percent (40%) per year through solid customer service, a great sales plan, proven competitive strategies and a group of people that bring dynamic energy to the Company and the sales and delivery process. Cresta’s financials are realistic, and based on conservative figures relative to the industry as a whole.
Professional service companies have to stand out in today’s competitive market with low-cost, commodity-based service providers. Cresta is unique in the fact that all of our services and capabilities focus exclusively on quality control (QA) technology.
Our identity is clearly defined, and is easy for customers to understand. Customers appreciate and value specialists and are happy to do business with them. Our service delivery team consists of experienced QA specialists who are skilled in the most current QA techniques and technologies. Cresta is able to provide the right service for the right time.
To ensure success of every technology-driven business, we must now be aware of the current state of job insecurity, financial scrutiny, regulatory compliance, and global terrorist threats.
Cresta’s contribution to mitigating risks is significant. Clients can be sure that critical business applications and the supporting technology infrastructure are functional, performant, and scalable. We educate our clients so they can be self-sufficient in these efforts, or we will execute QA activities for them, ensuring that service level and financial management objectives are achieved.
Cresta’s “roots” have grown within the global finance industry. This is where we have our largest client base, and also has the highest level of referenceability. This market is our main focus for the immediate future. It will streamline and control sales and delivery costs, and leverage our prior work.
Cresta is determined to attain ‘#8220’ trusted advisor status with each of its clients. This will give Cresta the chance to truly demonstrate Cresta’s value-add.
1.1 Mission
Cresta is committed to providing clients with a specialized reliable, high-quality and sophisticated alternative to internal resources. This includes the development and implementation on an international scale of top QA and testing infrastructures and methodologies. Cresta must be able to offer clients a high level of business knowledge, practical experience, and confidentiality as a viable alternative to in-house resources. Cresta offers a professional and more risk-free way for clients develop and implement testing and QA strategies than they can do it themselves.
Cresta must offer the highest quality IT solutions for its clients by providing QA and strategy testing services that reduce risk, improve time-to market, optimize ROI, minimize risk, and ensure the scalability as well reliability of IT environments throughout the enterprise. Cresta must have a healthy financial balance, be able to charge a reasonable price for its services and offer a better service to its clients. In the beginning, Cresta will concentrate on the New York City market. This will include services for European clients and financial services.
1.2 Objectives
You can sustain your profitability by using efficient operational methods to reach a minimum gross Margin of 50 percent (50%) or a net profitability after tax of nine per cent (9%) by year end 2004. Subsequent yearly levels of profitability maintained equal to or greater than that of the current leading public IT testing consultancy.
Gaining a strong repeat customer base to maximize growth and achieve a minimum yearly growth rate of forty percent (40%) in each of the next two (2) years and a minimum yearly growth rate of fifteen (15%) thereafter.
Cresta’s constant growth and stability through the creation of an environment that is stable
Cresta certification for all major technologies and tools used in Cresta’s marketplace.
By the end 2002, Cresta’’s services and products were in need of a balanced consulting team.
1.3 Keys to Success
Leverage CrestaՉ۪s positive record and references from marquis clients to close large, qualified transactions.
True industry specialization. This will give you a competitive edge and differentiate your services.
Cresta-certified consultant resources are available for use in Cresta’s target markets.
Fantastic Florals, Inc. imports only handmade flowers from Indonesian artisans. The company’s main office can be found in Anytown Oregon. There is also a Seattle customs house broker who can assist with any related issues.
FFI quality products have a unique and exclusive appeal. Its target customers are women with high-incomes and middle-class families. FFI’s competitive advantage is the fact that all of its products are handmade. This makes them stand out from other competitors. FFI hopes to attract people who enjoy the art of making silk flowers. FFI products consist mainly of silk flowers and hair accessories. The company considers itself to have a place in the retail market for gifts, though some consumers may choose to purchase the product.
For the starting year, the company plans to attract manufacturer reps and retailers to distribute the products by attending the Silk trade show in Chicago, Illinois. This trade show allows buyers and suppliers to meet and make deals to sell silk flowers and other products. FFI projects that sales will reach $1.1 million within the first year. FFI will open an exclusive gift store for its product in Anytown, at the Third Street Public Market. The lease term is five years.
For the following year, the company plans to expand to direct mail catalog sales by being in an established catalog, with a similar target market. FFI predicts $1.5 million in sales for Year 2. FFI projects sales of nearly $2 million in the third year. This includes both direct sales through suppliers and catalogs.
FFI’s flower family will increase in Year 3, adding 10 more varieties of flowers and arrangement. It is realistic to expect a gross margin of between 25 and 30 percent. The annual sales growth rate is estimated at 25 percent.
1.1 Objectives
Year 1 sales over $1.1 million
Open gift shop in Anytown on Third Street Public Market, with a five year lease.
Expand into direct mail catalogs for Year 2.
Maintain gross margin of 25 percent.
Establish annual growth rate of 25 percent.
In Year 3, expand product range by adding 10 new types of flowers and arrangements to the flower family
1.2 Mission
FFI’s mission is to be a well-respected importer of high quality, artisan silk gifts in the United States. The company is committed to customer satisfaction and strives for friendly service.
FFI’s purpose is to enhance customer appreciation of handmade silk flower and other silk products, and to offer customers beautiful and unique artistic decorations.
1.3 Keys to Success
Fantastic Florals Inc. is looking for key success factors
Product quality.
Customer service.
Access to manufacturers and distribution channels.
Controlling fixed as well as variable costs during the first year.
