Value Proposition Our product of a shoe disinfectant carries on the idea of a healthy lifestyle. The value of our product is that it keeps away germs from your shoes which could lead to foot infections such as; athlete’s foot, fungal nail, jock itch, and ringworm. By placing your shoe inside the Shoe Wash for a time length depending on the type of shoes, UV lights will shine upon the pair killing 99.9% of bacteria. Competitive Advantage
Location: Our company is located within the city of Long Beach, California, allowing us to be able to present our product to a family based environment
Customer Service: The service of our company will be spectacular, since our company will be based on the people who actually created the product and will fully understand how the machine works.
E-Commerce: The company will mainly be based on and accessed through our website. However, the ShoeWash will also be sold in various stores all around the United States from department store to shoe stores. Since the company will be mostly website based, it will allow us to be connected to a larger community of shoe lovers and also other companies with the same purpose.
Marketing Strategy Our marketing will include short term strategies that will improve our start up and gather the attention of the consumers.
Purchased Advertising such as on TV, billboards, and on the radio.
Website advertisements
Bulletin Boards
Newsletters
The long term strategies that will be helpful increasing the company sales includes:
Improvements made to our product from time to time to make it better
Freebies (when buying a ShoeWash, it comes with a fragrance spray for the shoes)
Sales
Distribution Patterns The distribution patterns of the company will be based upon the website to reach out to every person we can, and will become available on markets and in store companies. Our company will have partnerships with major shoe stores to create publicity for our product at start-up. The company will be involved with numerous activities and processes such as packaging, inventory, warehousing, supply chain and logistics. In the highly beloved shoe market, our company will be the top and best competitor since there aren't any other product like ours. Due to this lack in other competitors, our company will be most profitable since we will be widespread in the field of shoe disinfectant. Positioning Statement In the highly beloved shoe market, our company will be the top and best competitor since there aren't any other product like ours. Due to this lack in other competitors, our company will be most profitable since we will be widespread in the field of shoe disinfectant. Pricing Strategy Our goal of the Shoe Wash is to offer the consumer a high quality product to keep their life healthy. Our pricing will have seasonal promotional offers and annual anniversary sale events, encouraging additional sales and large purchases. Sales Strategy Infinite Co. will approach a website based sales, where the customer will interact with the setup site. With the our official website, comes a well organized customer service team to help you on any problems that may appear. Our goal is to develop service that will enhance the shopping experience to perfection and product offers & merchandising formats. Sales Forecast
Revenue Stream
Milestones To sell our product all over the U.S and make sure that it satisfied our customers and met their expectations. Also, see how we can make our product even better and more convenient with the new technology today. Assumptions
Infinite Co. will be able to gain a stable amount of profit after around three years of releasing the ShoeWash.
The ShoeWash will be sold in major department stores and shoe stores such as Target, Bed Bath & Beyond, and Walmart for those who do not have access to our online store website.
We begin with a slowly growing economy without any major or large declines in our sale
Break Even Analysis Break-even analysis depends on the assumptions made average per unit revenue, average per cost, and fixed costs. Also it allows us to determine what we need to sell either monthly or annually to cover the costs of doing business. We have to sell enough to make a stable amount of profit. Our predicted break even point will be a about 2-3 years after operations where we have sold enough of our product and gained a stable amount of profit that will be equal to the amount of money lost. After that time, our business will continue to grow which will lead to use gaining more money over time. Projected Profit & Loss We predict that during our second year of operation and sales, our high level of customer service and quality of our product will allow us to generate about 3.00% profit.
The blue represents our yearly profit from our first year to our third. Whereas the red represents the amount of money lost per year. For the first two years, the amount of money lost is greater than the amount of profit made, but when the third year comes around, we will be able to maintain more profit than the amount of money lost.
This chart represents how much every part that makes up the ShoeWash will cost. Since our set price is $70, we will be able to gain and maintain a stable amount of profit as our sales rise over time.
Projected Cash Flow When it comes to spending money to create our product, we must use it wisely to try and find the best materials at an affordable price. After time with the product out to the public, we expect to make a profit by the beginning of our second year. If we capture our target market (athletes), our sales could increase as much as 20% during the first two quarters of production. After establishing a required cash balance level (about 6 months after releasing the ShoeWash), we will reduce the projected cash balance in order to decrease debt. Projected Balance Sheet Once we start selling our product, we will list our business account balances, liabilities, and equity. From time to time we expect to have a healthy growth in net worth by the end of the plan period to see progress within our company. Business Ratios Ratios are also used by bankers, investors, and business analysts to assess a company's financial status. In the future when there is data made, here will present common business ratios for reference. As a prediction for our ratios we have a 1 to 24 ratio in our sales overall in a time of six months.