Opportunity
Solution
Visigoth Imports offers complete import/export brokerage services, including shipping and warehousing as well as delivery scheduling. The company will concentrate on special and cultural imports from Germany and Scandinavia to the unique Bavarian town of Leavenworth, WA. Visigoth offers trade consultation services to new farms established under the Puget Consumers Co-op’s Farmland Fund Initiative.
Market
Visigoth is going to be serving two types clients only: the Leavenworth Gift Shops and the Puget Consumers Co-op Farmers (PCC). We have secured exclusive endorsements and contracts in both market segments. This gives us the unique opportunity to serve these niche clients.
These two markets are expected to have excellent profitability, particularly in the import section. Leavenworth attracts over a million tourists every year. The co-op’s profitability will grow slowly in the initial five years but we expect it to increase steadily.
Competition
All potential importing firms serving small enterprises, such as farms or specialty shops, are subject to competition. Practically, this means that we will not compete against the largest import/export businesses such as Eagle Distributing, Fisher-Mills, or other large, national companies. The majority of other companies are regionally focused. Foreign trade is fragmented. There are many small businesses that mainly serve small firms, and a few larger companies that look for large contracts from large companies like Microsoft or GM. This makes competition within the industry very intense. Our niche strategy will avoid the drawbacks of competition such as price battles, etc.
Why Us?
We will be the preferred supplier of imports to Leavenworth, a unique tourist destination. Visigoth understands that the import shops and restaurants in Leavenworth have special needs of most unique gifts for the million tourists that visit the town annually. 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 brings together 35 years of experience in the export/import business. We believe in building long-term relationships with our clients to ensure seamless delivery and loyalty.
Expectations
Forecast
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. Charter Bank of Nieurich will pay off a long-term loan in ten years.
The company expects that it will be profitable by year 2. It does not anticipate any major cash flow problems. A break-even point will be achieved by approximately 3,500 units per monthly.
Financial Highlights per Year
Financing Required
We will receive $84,000 from the founders.
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