FireRescue Depot is an exciting start-up business that has been registered as an Illinois S Corporation. FireRescue Depot is a vendor of fire department and search and rescue hydraulic tools. FireRescue Depot stands apart from the competition by offering a complete line of hydraulic tools from all of the popular industry manufacturers. FireRescue Depot is able to offer an extensive product selection by arranging a drop ship agreement with the different manufacturers, significantly reducing their inventory overhead. FireRescue Depot was founded by Steve Dalmatian and the business plan recently won a competition, generating $50,000 in prize money for the start up of the business. The plan won the competition due to FireRescue Depot's unique approach to offering an extensive selection, as well as its addressing the common pitfall of large selection which is huge inventory. Winning the competition was the initial validation that Steve had developed what appeared to be a novel, profitable business model.
Products- FireRescue Depot will offer several different classes of tools for fire and search/rescue departments. These classes are the backbone of a department's tools.
- Rams are used for punching, pulling, shoring, stabilizing, or supporting. With up to 15,000 pounds of punching force, they can easily displace a dashboard, move a steering column, or stabilize a vehicle. Various sizes are sold.
- Cutters provide maximum cutting force and flexibility. A wide range of cutters is offered, from 20,000 to 94,000 pounds of pressure. The different models come in a variety of sizes, jaw designs, and shapes.
- Spreaders separate a variety of materials including metal, mass timber, etc. Various models offer a range of spreading distance (24-40 inches) and a range of spreading force (19,000 - 37,000 pounds).
- Combination tools mate cutters and spreaders into one tool. These are quite useful when you need to move metal and have the cutting power necessary for quick responses.
Market- The following is a description of the two distinct customer segments that FireRescue Depot has identified and will tailor their marketing and sales activities toward.
FireRescue Depot targets two market segments. The first is urban fire and rescue departments with more than 10 employees serving more that 10,000 people. 3,435 potential customers have been identified. The annual growth rate is 8%. The second customer segment is rural departments with fewer than 10 employees and serving less than 10,000 people. This segment grows at an annual rate of 7% and includes 8,787 potential customers.
Management- FireRescue Depot's management recognizes the fact that while business ideas and models change over time, the most important element of a business is the management who are in the position to carry out a well designed business plan.
FireRescue Depot will be led by Steve Dalmatian. Steve has the right skill set to follow through on the well thought out business opportunity. Steve has three years experience in a fire department where he participated in countless rescue operations, becoming intimately familiar with the industry and the corresponding technology. In addition to this wealth of knowledge, Steve received his MBA from Loyola University, providing him with comprehensive business skills.
1.1 Mission
FireRescue Depot's mission is to become the leading vendor of fire and rescue equipment. Through a combination of outstanding selection and attention to detail, this customer-centric organization will be known as the best retailer for the price and customer service.
1.2 Keys to Success
FireRescue Depot has identified three keys to success, all of which are necessary to achieve sustainable profitability. These keys will be constantly monitored to determine if the organization is meeting them:
- Identify the products that the market demands and sell a wide range of options.
- Build long term customer relationships with exceptional customer service.
- Design and implement strict financial controls.
1.3 Objectives
FireRescue Depot has identified three objectives that will serve as lofty but achievable goals for the entire organization. They are:
- To become a premier vendor in the fire rescue hydraulic tool market.
- To reach profitability within 24 months.
- To increase market penetration to 15% by the end of four years.
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