Visigoth Imports is a full-service import/export broker that offers purchase contracts, shipping, warehouse management, and scheduling. The company will concentrate on special and cultural imports from Germany and Scandinavia to the unique Bavarian town of Leavenworth, WA. Visigoth will provide trade consultation services to newly started farms created under the Puget Consumers Co-op’s Farmland Fund initiative.
Visigoth is going to be serving two types clients only: the Leavenworth Gift Shops and the Puget Consumers Co-op Farmers (PCC). For both market segments, we have secured exclusive contracts or endorsements putting us in a unique position to service these niche firms and their needs.
The markets in question are expected to be profitable, especially Leavenworth’s import section which attracts more than a million tourists annually. We expect profitability in the co-op end to be much slower in the first five years of operation, but it too will increase steadily.
All potential importers that are able to service small enterprises like farms or specialty gift stores will be considered competitors. Practically, this means that even the largest export/import companies such as Eagle Distributing or Fisher-Mills won’t be able compete with us. Other companies tend to be more regionally focused. The foreign trade industry has a high degree of fragmentation. It is composed of many small companies that mainly deal with small businesses, as well as a handful large companies that are looking for the largest contracts from companies like Microsoft, GM, and others. The industry is very competitive. Our niche strategy is designed to prevent competition and its drawbacks like price wars, etc.
We are going to be Leavenworth’s preferred import company. Visigoth realizes that Leavenworth’s unique tourist town has special requirements for the best gifts. Visigoth Imports understands that new farms created by the PCC farmland funds initiative have higher prices than other competitors. They will need to export their produce at an acceptable profit. Visigoth Imports’ combined experience in the import/export industry is 35 years. We believe in building long-term relationships with our clients to ensure seamless delivery and loyalty.
Most of the company’s liabilities will come from outside private investors and management investment, however, we have obtained current borrowing from Bank of America Commercial Investments, the principal to be paid off in two years. A long-term loan through Charter Bank of Nieurich will be paid off in ten years.
The company anticipates reaching profitability in year 2, and doesn’t anticipate any cash flow problems. We anticipate that approximately 3,500 units per month will ensure a break-even level.
Financial Highlights per Year
The four founders will provide $84,000.
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