Basket of Goodies
Basket of Goodies (BOG) is a premier gift basket retailer. BOG is concentrating on making gourmet gift baskets out of a wide range of high-quality ingredients. In addition to having several flagship baskets, BOG will also offer the option of a custom basket allowing the customer to choose the ingredients themselves. BOG will be selling to individuals as well as corporations. Initially the bulk of BOG’s business will be generated by individuals from word-of-mouth referrals, but as time passes, corporations will become a growing percentage of sales.
Once up and running with some momentum, BOG will be steadily producing profits. It is projected that BOG will be making a profit by December. By the end of year three, it is projected that BOG will be generating a net profit of approximately $21,000.
The Basket of Goodies’ mission is to create the finest gift baskets available. BOG, soon to be located in Salem, OR, will be hand assembling our products out of premier ingredients, local when possible. The business will be based out of Susan Presento’s home. Although this will be a home-based business, toward the end of year one Susan will have an employee.
Susan Presento, founder and owner, managed a flower shop in Salem for three years and this has given her insight to the gift giving practices of Oregonians. The primary gift baskets that will be offered are: smoked fish basket, fruit basket, pasta dinner basket, and picnic basket that has caviar, crackers, fruit, and smoked fish. BOG also offers a custom basket which allows customers to pick items from a list and BOG will assemble the basket with its custom ingredients.
The purchasing of gift baskets is very “seasonal.” More than half of the gift basket purchasing occurs during a wide variety of holidays.
BOG’s competitive advantage will be based on two factors, low overhead which allows reasonable prices, and an unrelenting desire for the highest quality product and service.
- Low overhead.
- Highest quality product and service.
BOG’s sales strategy will be targeted at obtaining both the individual and corporate clients through word-of-mouth referrals. Customers will be able to place an order at the office, over the phone or via the website.
BOG’s start-up costs will include all the equipment needed for the home-based office, legal fees, website creation, and start-up advertising. The home office equipment will be the largest chunk of the start-up expenses. This equipment includes a computer system, fax machine, office supplies, cellular phone, and pager. Additionally, there will be the installation of a broadband connection, and furniture for the home office. Total start-up expenses are expected to be $28,000, all of which will be provided through Susan Presento’s own equity.
The Break-even Analysis indicates BOG will need to sell approximately $4,900 per month to break even. BOG expects to earn approximately $14,000 in year two and $21,000 in year three.
The Basket of Goodies’ mission is to create the finest gift baskets available. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our products and services will exceed the expectations of our customers.
The objectives for the first three years of operation include:
- To create a home-based company whose primary goal is to exceed customer’s expectations.
- To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals.
- To develop a sustainable home business, surviving off its own cash flow.