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ENTP
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Entreprenuers
Mission Statement:
“To be a trusted gifting company
that makes personalized gift
buying quick and simple.”
Brooke Rea
Elizabeth Vue
Jodi Green
Eric Wynn
Introduction The Gift Box
Online gift retailer with an array of customizable and
personal gift baskets for those on the go in today’s fast paced world.
How We Operate
Items are selected by the customer from products
offered on our website from select vendors.
The designers at The Gift Box can customize a basket
according to the person or occasion after a short
questionnaire is completed.
Preview Technology
Ability to preview the gift, BEFORE YOU BUY IT!
What We Offer Holidays Birthdays Just Because
The Problem Time Shortage
With a widespread shortage of time consumers
have a need for personalized custom made gifts
from birthday, to holidays, to just because.
Average working professional is working 72 hours a
week
Only left 3 hours a day to do everything else
(chores, grocery store, family time, etc.)
We will target the working professional who is short
on time to provide personalized not generic gift
options.
Source: Deal, 2013; "Welcome to the 72-Hour Work Week." Harvard Business Review Case Studies
The Solution
Busy professionals need better alternatives to the
mass produced gift ideas such as flowers or gift cards.
Give consumers the power to create a
personalized solution, using our “ The Gift Box” platform to take the hard works out of gift giving.
The freedom to be unique and thoughtful without
the high gift cost and valuable research time.
Company Status/
Customer Validation
Personalized gifts are in demand
Worth around 3.3 billion dollars annually in the US
Gift Basket Industry
40% of the total market
Future outlook
Staying competitive
Following market trends
Analysis of Competitors
Market Segmentation
Geographic Demographic Behavioral Psychographic
“Any location, online based”
• Start: Domestic
plan
• Locally
• Main cities
• Any city
with
delivery
drop offs
• Branch out:
Internationally
• Main cities
• Any city
with
delivery
drop offs
• Customers: Can
be broad but
mainly towards
ages 25 to 55
• Gender: Male/
Female
• Occupation: All
professionals
• Rate of usage:
Anytime,
available 24/ 7,
365 days a year
• Benefits: Easy to
use and choose
• Readiness to
purchase: Likely
due to
customized gifts
• Lifestyles: Fast
paced
• Attitudes: Caring
and wants
something
unique
“To any customer base that are limited
in time”
“Customers who want valued,
customized gifts for recipients”
“Customers who prefer to buy customized
gifts”
The Market
5
3
1
6
1
0
1
2
3
4
5
6
7
Spouse Best Friend Co-worker Customers Employee
Nu
mb
er
of
vo
tes
Market Survey
Survey takers consisted of:
3 C-Level Executives
4 Directors
3 Regional Sales Directors
6 Managers
The Market (Continued…)
Benefits
Gifts for everyone
Provide a much needed service
Demand all year around
Challenges
Upcoming competitors
Having the right resource
Competitors
Flower Delivery Gourmet Gift Baskets Online Gift Site
Competitors Comparison Matrix
Online Flower Delivery Shops
Online Gourmet Gift Baskets
Online Personalized Gift Shops
Our Online Shop
Examples FTD.com
Proflowers.com GourmetGiftBaskets.com
Gifttree.com MarkandSpencer.com The Gift Box
Types of
Products
Flowers, Plants, Sweets, Food
Basket, Stuffed
Animals & Personalized Gifts
Food & non-food gift baskets for all occasions,
Baked Goods
Flower, Gifts, Food & Wine for different genders, age and
occasions
Perishable and
non-perishables
Allows
Customizations No
Very Limited (Same Day Gift Baskets)
Limited (engravings/embroidering) Yes!
Prices $30-$350 $20-$250 $25-$1700 $25+
Business Model Canvas Key Suppliers Key Activities
Value
Proposition Customer
Relationships Customer Segments
• Kelli’s Gifts
• Supplies for
Gift Baskets
• Paper Mart
• Local
Hobby/Craft
Store
• Creativity and
originality of
the
arrangements
• Website
• Mobile App
• Creative staff
able to create
beauty
• We’ve got you
covered with great gift ideas.
• A convenient one stop shop for customized gifts for anyone
and everyone on your gift list.
• High quality, unique
gift arrangements
that exceeds
expectations
• Reliable and on
time delivery
• Business
Professional
• Generation X
age 38-50
• Generation Y
age 20-37
Key Resources Channels
• Wide Variety
of supplies
• Talented staff
• B2C – direct to
customer from
website
Cost Structure Revenue Streams
• Cost of materials and supplies
• Marketing cost
• Website
• Fixed/Variable Cost
• 33% - 50% Markup on materials and supplies
• $10.00 flat fee for each basket
Spa Basket
=
Pricing Structure Item Price Retail Cost
(50% markup)
Hand Massager $0.82 $1.23
Sisal Sponge $0.47 $0.71
Loofah $0.65 $0.98
Sponge $0.65 $0.98
Sisal Belt $0.83 $1.25
Bath Slipper $1.45 $2.18
Hair Brush $0.68 $1.02
Foot File $0.52 $0.78
Bathing Brush $0.60 $0.90
Basket $2.45 $3.68
Paper Filler $0.10 $0.15
Bow $0.16 $0.24
Total Cost of Supplies $14.07
Arrangement Fee $10.00
Total Cost to Customer (not including shipping) $24.07
Revenue
Spa Basket
Total Paid by
Customer
$24.07
Cost of Supplies -$9.38
Total Revenue $14.69
Marketing Plan Marketing Position
A one stop shop for customized gifts for anyone and
everyone on your list.
Marketing Strategy
Have the website developed and running to our
specifications.
Use social media sites like Facebook and Twitter to help
get the word out starting in the beginning of summer.
Make sure we are first on industry related google
searches (SEO).
Hit the pavement to market face to face with different
white collar professional office’s and different
networking association’s in the DFW area starting in
September so that they have us in mind when the
holiday season starts and they need gifts.
Pricing Strategy Pricing Strategy Pricing Starting at $25 and up
33% - 50% Markup on materials and supplies
$10.00 flat fee for each basket
Sales Forecast
Revenue Projection
Year 1
500 units = $25K
Year 2
1500 units = $75K
Year 3
3000 units = $150K
Financial Projections
Projection model based on average revenue per unit of $24.07, with a fixed cost of $9.38. This present a pre-tax margin of $14.69 per unit to the business operating income.
Operating revenue growth goal is a 4X multiples for the first 3 years.
The first milestone will be EOY 2 with a net operating cash flow of $75k, this will provide the capital restructuring opportunity for cheaper financing cost and additional growth capital injection.
Partnership
Structure at a
glance Capital Funding Strategy for
70%
13%
17%
Capital Structure
Debt 42k GP Equity 8k
LP Equity 10k
Round 1
funding goal
of 60k
Funding Memorandum
Initial capital requirement of $60k for development of online business infrastructure and marketing/sales.
Capital structure will be 70% of 60k (42k) bank variable loan with >2 year duration at minimum interest. The rest of 18k will come from equity investors. (each business partner will make the initial contribution of 2k each, adding up to 8k total equity investment from GPs (General Partners).
The remaining 10k will be offered at 1k per unit equity shares with cash flow option after year 2 for any additional LP (Limited Partners). LPs are also offered the option to exit after year 3 at FMV (Fair Market Value) to selling his/her shares to other LPs, GPs and new prospects.
Timeline
Year 1 Q1
•Market trend product selection
•Logistics
Q2
•Product Purchases
•Create online website
Q3
•Web and business launch
Year 2 Q1
•Online expansion
•Vendor partnerships
Q2
•Trend product update
Q4
•Positive cash flow
Year 3 Q1
•Advertising
Q2
•City expansions
Q3
•Trend product update
•Payback investors
•Earn Expected Revenue
Management Team/ Advisors
Brooke Rea
Currently involved in: Tax
Experience in different fields will
contribute to all other areas
needed in the business.
Interests
Interests in home décor, cooking
and craft items will be a great
contribution as it will relate to
products that we will market.
Jodi Green
Currently involved in: Sales/ Marketing
Experience in field will allow her to
market our business with vendors
and customers.
Interests
Interest in health will also help
generate great ideas for general
market of the same interest.
Eric Wynn
Currently involved in: Professional investment services, financial market, direct participation program and private equity
Interests
Interest in guitar, piano, and
traveling around the world.
Elizabeth Vue
Currently involved in: Accounting
Experience in different fields will
contribute to all other areas
needed in the business.
Interests
Interest in technology and children
will be a great contribution in that
general markets.
Summary
Our Vision
Opportunities
Challenges
Thank you!
Questions?