SET UP AN IMPORT BUSINESS

Set Up an Import Business



Set Up an Import Business

Introduction

Fantastic Florals, Inc. (FFI) imports exclusively handmade flowers by artisans from Indonesia. The firm's main office is in Anytown, Oregon, and has a customs house broker in Seattle, Washington to deal with related matters. FFI quality products are unique and exclusive, and its target consumers are women with upper-middle to upper-end incomes. FFI's competitive edge is that the products are 100% handmade, unlike competitor's products. By this fact, the firm hopes to attract people that value the artistry of producing silk flowers. Since FFI products are mostly silk flowers and silk hair accessories, it considers itself to be in the retail gift market, although some consumers purchase the product for themselves.

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 is where suppliers of silk flowers and other silk products and buyers meet and arrange deals to sell the product. FFI projected sales are approximately $1.1 million by the end of the first year of operation. Also during this year, FFI plans to open an exclusive gift shop for our product in Anytown at the Third Street Public Market, leasing for 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 projects sales of $1.5 million in Year 2. During the third year, FFI plans to do both selling through suppliers, catalogs, and the exclusive gift store in Anytown, projecting sales to be nearly $2 million. The FFI family will expand in Year 3 by adding 10 different kinds of flowers and flower 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.

Start-up Summary

Start-up costs are approximated at $75,000, which primarily consists of product costs and expenses associated with establishing a marketing program and opening up FFI's first distribution center.

Start-up Requirements

Start-up Expenses

Legal

$1,000

Insurance

$600

Rent

$1,300

Other

$200

Total Start-up Expenses

$3,100

Start-up Assets

Cash Required

$70,000

Start-up Inventory

$0

Other Current Assets

$0

Long-term Assets

$0

Total Assets

$70,000

Total Requirements

$73,100

Products

FFI imports silk flowers and other silk accessories. These products provide consumers with a wide variety of product lines and allows for individual customization of orders.

Product Description

Fantastic Florals, Inc. has a variety of silk flowers and products from which to choose. During the first two years, the product line will include:

Tulips and roses.

Two kinds of flower arrangements.

Silk scarf and silk hair accessories.

Seasonal bouquets.

Future Products

Fantastic Florals, Inc. plans to introduce ten new kinds of flowers and silk products every year for the first four years, with aggressive advertising at the beginning of each year that introduces these new flowers. After establishing a firm reputation, FFI plans to import products other that silk products, but all will still be related to ...