Fantastic Florals, Inc., (FFI), imports handmade flowers only from Indonesian artisans. The main office is located anywhere in Oregon. However, the company has a Seattle-based customs house broker to handle any related matters.
FFI quality products, which are exclusive and unique, are targeted at women with middle- to high-end incomes. FFI’s competitive advantage is the fact that all of its products are handmade. This makes them stand out from other competitors. The firm hopes this will attract people who are passionate about the craft of silk flower production. FFI products are mostly made from silk flowers, and some people purchase the product for their own use.
The company intends to get manufacturer reps to sell the products in the initial year. They will attend the Silk tradeshow in Chicago, Illinois. This trade show allows buyers and suppliers to meet and make deals to sell silk flowers and other products. FFI expects to sell approximately $1.1million by the end its first year of operations. FFI also plans to open a gift shop in Anytown at Third Street Public Market for our product, which will be leased for five years.
The company will expand its direct mail catalog sales in the next year by becoming a member of an established catalog with a similar target audience. FFI anticipates that sales will reach $1.5 Million in the second year. FFI is projecting that sales will reach nearly $2 million during the third year.
In Year 3, the FFI family will grow by adding 10 new types of flowers and arrangements. Maintaining an average gross margin of 25 to 30 percent is very realistic. The projected rate of annual growth in sales is 25 percent.
- Year 1 sales of $1.1million
- With a five-year lease, open gift shop in Anytown at Third Street Public Market.
- Expand into direct mail catalogs for Year 2.
- Maintain a gross profit margin of 25 percent
- Establish annual growth rate of 25 percent.
- Increase product variety by including 10 types of flowers in the Year 3 flower arrangements
FFI’s mission is becoming a trusted importer of quality handmade silk gift items in America. FFI guarantees customer satisfaction at all times and offers friendly service.
FFI’s purpose in life is to help customers appreciate handmade silk flowers, other silk products, as well as to provide beautiful artistic decorations.
Success Keys 1.3
Fantastic Florals Inc.’s key to success are:
- Product quality.
- Customer service.
- Access to manufacturers.
- Controlling fixed costs and variable cost during the first two-year period.