Fulham Furniture Mfr. has been riding a growth spurt, having discovered the high-end direct mail channel that gave us a push to new potential volumes through channels. Bolstered by appearances in specialty catalogues, we were able to develop another additional channel through distributors of office equipment that sell directly to larger enterprises.
This annual business plan calls for another three years of accelerated growth. Because our sales growth has brought some working capital implications, we are carefully planning to manage growth and provide for steady cash flow.
We also expect to be profitable as never before. In all, this plan is a healthy company with good growth prospects, looking to manage its orderly growth in the near future.
Fulham Furniture Mfr. helps create pleasant, productive office environments with well-designed furniture that incorporates new technology into the classic office mode, in which real people can work happily. We are sensitive to the look and feel of good wood and fine furniture as well as to high-powered personal computing. We always provide the best possible value to our customers who care about quality office environments, and we want every dollar spent with us to be well spent. We also create and nurture a healthy, creative, respectful, and fun office and workshop environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the product we produce. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk.
1.2 Keys to Success
- Uncompromising commitment to the quality of the end product: quality wood, quality workmanship, quality design, quality of end result.
- Successful niche marketing: we need to find the quality-conscious customer in the right channels, and we need to make sure that customers can find us.
- Almost-automatic assembly: we can't afford to ship fully-assembled desks, but assembly must be so easy and automatic that it makes the customer feel better about the quality, not worse.
- Focus on the new channels to increase sales substantially by Year 3.
- Maintain a high gross margin, despite the sales increase.
- Increase the net profit/sales percentage proportionately by Year 3.