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WMJ Services By: Michelle Tobeson, Jordon Lucas, Michael Masiejczyk, William Jones, and Jason Reynolds The Debonair and Dynamic Developers1
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Introduction Welcome to WMJ Services An Innovative Beauty and Personal Care Box Subscription Service Personalized and Curated Boxes Delivered Monthly for $10 per month Exclusive Partnership with Procter and Gamble Access to new products from Beauty Innovation Center The Debonair and Dynamic Developers2
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Executive Summary Rise of E-Commerce in Subscription Services Business Opportunity Low Overhead Cost User-Generated Marketing Highly Targeted Market Consumer Benefits Low Financial Risk Increased Product Trial Recognition of National Brands Procter and Gamble (P&G) Exclusive Agreement Benefits of established markets Business to Business Benefits of Data Sharing The Debonair and Dynamic Developers3
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Executive Summary Location Decision Mason, Ohio Close to P&G 2 Major Cities Lowers Costs Transportation Inventory Strong Financial Outlook Keeping Expense Low Lack of Manufacturing Costs Small Shipments Proximity to Manufacturer Break Even Point 35% of First Years’ Sales The Debonair and Dynamic Developers4
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SWOT Analysis Strengths Weaknesses Opportunities Threats The Debonair and Dynamic Developers5
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Description of the Opportunity and Region Selected Business Opportunity E-commerce is growing rapidly Low Barriers to Entry Low Overhead Untapped Markets Opportunity to Increase Customer Value Convenience Price Experience Location Mason, Ohio High Household Income Proximity to Large Cities Cincinnati Dayton Home to 500 businesses 5 Top Global Businesses The Debonair and Dynamic Developers6
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Infrastructure Economic Prosperity Through Infrastructure Ease of travel & accessibility Traffic Engineering Transportation Planning Urban Design Aviation Planning The Debonair and Dynamic Developers7
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Current Climate for Competition in the Region Strong Business Competition Expanded Region of Competition Low Barriers to Entry The Debonair and Dynamic Developers8
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Current Climate for Competition in the Region The Debonair and Dynamic Developers9
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Explanation of the Specific Location and the Company’s Break Even Point WMJ Financial Outlook: Projected Growth is 100% in year 2 and 25% in Year 3 $10,000,000 capital loan received from P&G Low financial risk with lease of property and equipment Loan will yield $12,000,000 in case at end of year 3 The Debonair and Dynamic Developers10 Loan ClosingEnd Year 1End Year 2End Year 3 Net Inc. Cash $9,997,500$811,655$4,733,876$6,647392 Cash Beg.$50,000$10,047,500$10,859,155$15,593,031 Cash End. $10,047,500$10,859,155$15,593,031$22,420,423
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Expenses, Income & Break Even “Keeping the expenses at bay yields healthy net income and low debt to income ratio” Employees offered bonuses for reaching quotas Low interest rate keeps cash flow high Revenue increase by half while expenses increase by 25% in year 2 Gap between revenue & expenses allows for positive net income if projections fall short The Debonair and Dynamic Developers11
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Expenses, Income & Break Even Analysis Sales must reach 20%-30% of its forecast to break even in the first 3 years High contribution margins result in low break even dollars 17,000 yearly subscribers needed to break even in year 1 Reputable brands & strong business model result in near foolproof forecasts The Debonair and Dynamic Developers12
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Argument to Pursue the Business Opportunity Business Opportunity Low Barriers to Entry Simple Operations Low Overhead Costs Increased Value and Convenience to Consumers Most Efficient and Flexible Model Less Risky and Costly Marketing Business to Business Shared Benefits Demand Trends Opportunities to Up-Sell and Cross-Sell The Debonair and Dynamic Developers13
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Sources of Competitive Advantage Exclusive Agreement with P&G Take out the Middleman Increased Customer Convenience Monthly Subscription/ Less Financial Commitment Personalized Box Tailored to Each Consumer Increased Consumer Experience Brand New Products First Access from Beauty Innovation Center The Debonair and Dynamic Developers14
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Specific Location Mason, Ohio (Warren County) Proximity to P&G Ability to House Multinational Companies Great Location/ Access to Major Highways 75 North and South and Midwest Location High Annual Household Income/ Quality of Life Opening of $300 million Research and Development Facility The Debonair and Dynamic Developers15
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Conclusion The Debonair and Dynamic Developers16
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