Business Profile: Wireless World-Wireless Device Retail Store
Vision
The vision of the entrepreneur is to create a single-location retail operation that sells portable wireless devices called Wireless World. The company sells phones, wireless e-book readers, high-end notebook and netbook computers, iPads, and other wireless computing devices.
Strategy
a) Market Focus/Analysis
This store targets tech-savvy individuals who are mostly students from wealthy families or working adults between the ages of 22 and 49 years of age. These individuals either purchase the products because they love wireless gadgets, think the gadgets will improve their productivity, or think the wireless gadgets are fashionable and consistent with their lifestyle. The store is located in a high-end shopping center called Millennia Mall alongside Neiman Marcus, Macy's, and other high-end stores.
b) Product
Products are cutting edge wireless devices from brand name companies, as well as specialty companies that have unique products that are not readily available at other stores.
c) Basis of Competition
Customers shop at the store for the high-end shopping experience; knowledgeable staff; superior customer service and return policies; and the broad selection of well-known, brand-name products, as well as lesser known companies with highly unique and innovative wireless devices. They also shop at the store because it is stocked with cutting-edge products that are new to the market.
Start-Up Requirements*
Given Costs
· The cost of registering a limited liability company in Florida-filing fees listed at the bottom of the application located at https://form.sunbiz.org/pdf/cr2e047.pdf
· Renovation of the facility expected to cost $25,000
· Business insurance, estimated at $1,000 per year
· Health and other benefits are 20% of the salaries of the manager and assistant manager
· Initial investment in inventory is $20,000
Costs you should estimate through research, experience, or other methods
· The cost of an average of seven employees on the payroll
· All operating costs, such as advertising, rent for a 3,500 square foot facility with male and female washrooms (already installed), utilities, maintenance, and annual depreciation.
*If you have questions about start-up requirements, or think other start-up costs necessary for the business are missing, then make an assumption and state it in the relevant section of the report.
Given Financial Assumptions*
· The owner will be granted a loan for the initial start-up, repayable over 10 years at current interest rates for small business loans.
· The owner will use personal funds to operate the business until it generates enough cash flow to fund itself.
· Essentially, all sales are made by credit card. All credit card sales are paid to the store daily by the credit card company.
· A total of 2.5% of sales are paid to the credit card company in fees.
· Merchandise suppliers give 30 days of trade credit.
· Inventories are expected to be approximately 10% of the following month's sales.
· Managers have health benefits, and other workers do not.
· The company will operate from 10:00 a.m. to 9:00 p.m., 6 days a week.
· The entrepreneur will manage the store and draw a salary.
*If you believe any other assumptions are necessary, please state them in your budget proposal.