Financial Ventures

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MARKETING PLAN AND STRATEGY

In order to generate revenue it is key to be aware of the individuals in which you want to sell product to. The target market of the company will be males, females and children between the ages of 10 and 35 who both collect and wear retro sneakers on a frequent basis.

Pricing plays a major role in whether a business venture becomes successful or not. Although the product will be of high demand it is key not to exaggerate prices for these products. At "Sole Mate" prices for these collector's items will not be charged at retail price. Most competitors sell their product for 400 to 800 dollars above market value. However, at soul mate the max price above retail will be 350 dollars. This way more customers would be attracted to the boutique. Also, “Sole Mate” will have more sizes available than any other retailer in the industry.

Promotion and distribution are key elements of the business venture. In order for the business to be lucrative there must be proper advertising. As a result of the target market, social media would be one of the first places used for advertisement. Facebook, Twitter, and Instagram are ideal places to post ads in order for individuals to become aware of "Sole Mate". Using this avenue for advertising will eliminate some advertising costs as it does not cost anything to advertise on these websites. Also news paper ads would be used, radio ads, and promotions throughout the city will be done as well. These promotions will be done at malls and popular shopping areas. In terms of distribution, Sole mate will be the traditional stop, pickup, and go boutique. As the business expands a website may be put into place and in this case the option to shop online will become available.

MARKET SEGMENT

There is no need to segment the market as “Sole Mate” has a clear target market and is aware of exactly who will be shopping at the store. The focus of the business is to cater to sneaker collectors between the ages of 10 and 35. There is no need to segment the market into any other categories because the main target market is categorized and any other individuals who decide to shop there may be a much selected few. For example, celebrities and professional athletes.

PRICING METRICS AND FENCES

In order to show our customers appreciation there will be particular incentives given to them once the requirements are met. There will be a points program where if an individual gains a particular amount of points they may get certain discounts. Also, there will be friends and family offered once every month where if you bring in 5 friends or family members that person will receive a 30 percent discount. Also, there will be an offer where if an individual brings in more than five customers a month they will receive a fifteen percent discount on their purchase.

OPERATIONS AND SUPPORT

Products will come directly from the different brands warehouses. For example, Nike will come directly from Nike warehouses and Adidas will come directly from Adidas warehouses. The store will also buy collector’s items that are brand new and unboxed; only if there is an original receipt. All shoes will arrive two weeks prior to the release date and may be pre-ordered. Quality will be a main focus of "Sole Mate" as well. Owners will ensure there is an attractive store front, comfortable seating, attractive display of footwear. (Racks and Manikins), and 100% authentic products.

TECHNOLOGY

Being a new business, some existing technology will be required. A POS system, computers and telephones would be required. In the future, a website will become available in order to cater to the international market; however, that is not needed as of present. The reason a website is not a major requirement now is because it is open to particular risk. For example, internet Bots, hackers, and fraud.

MANAGEMENT

This sneaker boutique will be a partnership. This type of business was chosen in order to have shared liability, shared start up cost, increases in equity, and there is single taxation. "Sole Mate" will be ran by a team of four individuals Maximum. As the creators of this store and the main contributors of capital, my partner and i will be the owners. However, if needed there is a business angel willing to step in and assist with investments at any time. When the store first opens it will be operated on a daily by my wife; however, as business increases there will be a demand for more workers and according to demand other employees will be hired.

In terms of organizational structure there will not be a need for a large amount of employees as this is a sneaker boutique and only provides rare, collectible items. Therefore the business will have the owner, below the owner the general manager, then a floor manager, followed by a sales representative. Below is an organizational structure.

[pic 1]

As a new business venture it is key to take care of any intellectual property rights that may be needed. In terms of a sneaker boutique it would be essential to trademark the name of the business in order for it to be unique. As a result of the type of business there is no need for patents or copyrighting.

FINANCIAL STATEMENTS

Income Statement

SOLE MATE]

Income Statement

For the Years Ending [Dec 31, 2016 and Dec 31, 2018

Revenue

2016

2018

Sales revenue

1,728,000

3,456,000

(Less sales returns and allowances)

Service revenue

120,000

170,000

Other revenue

200,000

200,000

Total Revenues

2,048,000

3,826,000

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