Visigoth Imports Inc
Visigoth Imports will provide complete import/export brokerage services including purchase contracts, shipping, warehousing, and delivery scheduling. The company will concentrate on special and cultural imports from Germany and Scandinavia to the unique Bavarian town of Leavenworth, WA. Visigoth will provide trade consultation services to newly started farms created under the Puget Consumers Co-op’s Farmland Fund initiative.
Visigoth will be concentrating on servicing just two types of clients, the gift shops of Leavenworth, Washington, and the farmers of the Puget Consumers Co-op (PCC). For both market segments, we have secured exclusive contracts or endorsements putting us in a unique position to service these niche firms and their needs.
Profitability in these two markets is expected to be excellent, especially in the import section as Leavenworth draws in over a million tourists each year. We expect profitability in the co-op end to be much slower in the first five years of operation, but it too will increase steadily.
Competition includes all potential importing firms that serve small enterprises such as farms and specialty gift shops. Practically speaking, this means the largest import/export firms such as Fisher-Mills, Eagle Distributing, and other large, nationwide companies will not compete with us. Most other companies tend to be regionally focused. The foreign trade industry is highly fragmented, with a large number of small companies that mainly cater to small firms and a few large companies that seek the largest contracts from companies such as Microsoft, GM, etc. This makes competition within the industry very intense. Through our niche strategy we intend to avoid competition and its drawbacks such as price wars, etc.
We will become the preferred import company for the unique tourist town of Leavenworth. 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 also understands that the newly launched farms of the PCC farmland fund initiative also have higher costs than most competitors and will need to export their produce at a cost that provides sufficient profit. Visigoth Imports has a combined 35 years of experience working in the import/export business. Our philosophy is in creating a long-term relationship with clients so that the delivery of their products becomes a seamless experience that promotes loyalty.
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. A long-term loan through Charter Bank of Nieurich will be paid off in ten years.
The company expects to reach profitability in year 2 and does not anticipate any serious cash flow problems. We expect that about 3,500 units per month will guarantee a break-even point.
Financial Highlights by Year
We will be getting $84,000 from the four founders.