Join Date: Oct 2015
Location: Salem, OR
Business Idea (Feedback?)
Willamette Valley Custom Furniture and Decor (WVCF)
Willamette Valley Custom Furniture and Décor (WVCF) will be established to sell at retail and through consignment, uniquely crafted and refurbished furniture and décor. Business relationships with product suppliers will be obtained through sales team prospecting. Consignment agreements will be completed with each supplier. A product price and consignment fee will be determined with each supplier.
Supplier relationships will be established through online and marketplace prospecting. WVCF will be in search of suppliers who create unique and refurbished furniture and décor.
Product competitiveness and popularity will be monitored through trends on Pinterest, popular sales and other trends as shown online and through media.
Additionally, WVCF will produce and refurbish its own unique furniture and décor. The prices of these items will be established through market research and associate agreement. The proceeds from each sale will be distributed in accordance to upkeep, salaries and savings.
WVCF will be advertised and marketed through the use of Social Media, Craigslist, Public Events, Markets, Posters, Fliers, Brochures and Coupons. Advertising costs will be included in the monthly operating budget.
Each sales representative will begin with a $1,500.00 per month commission salary, gross, minus safety fund reimbursement. Any additional funds will be placed into the WVCF bank account for safety funds, in the case of low monthly sales volumes. The WVCF safety fund shall at all times retain a minimum balance of $1,000.00 for precautionary purposes. At the end of each 6 month period, 20% of the savings fund, of the additional amount over $1,000.00 will be split between sales personnel, as a bonus.
Additional WVCF account monies that remain after bonuses and safety funds, will be used to reinvest in generating more business advertising, merchandising, employees and additional locations.
Establish 10 Business Relationships with Suppliers. Contracts at 35% Commission. Daily Gross Sales at $850.00. Annual Gross of $306,000.
To reuse materials and turn for profit. Work as refurbishers and middlemen (Consignee’s for suppliers).
Keys to Success
Unique Furniture and Décor, Low Prices, Great Location, Low Overhead and High ROI.
Description of Business
Willamette Valley Custom Furniture and Décor (WVCF) will work primarily as a middleman (Consignee) to suppliers of custom built furniture and décor.
Marketing staff will consist of 2 sales professionals, whom will establish relationships with furniture and décor craftsmen. These relationships will be to gain opportunity to store, market and sell the uniquely crafted furniture and décor at the retail location. Each relationship will require a 35% commission split, from each product sale, granted to WVCF, for the efforts and marketing done by the business.
Additional functions of WVCF will be to solely create and refurbish furniture and decor, apart from suppliers’ products. These products built by WVCF will be sold at a staff determined price and split evenly between sales staff.
Products to be sold, includes but is not limited to:
Custom/Refurbished/Restored: Tables, coffee tables, side tables, benches, chairs, lamps, dressers, home décor, etc…
Company Ownership/Legal Entity
Key criteria for determining a business location will include: A retail building off of a busy street where the business is visible from the street and has an available billboard.
At least 400sf, clean, painted, carpet or hardwood flooring.
Furniture will be displayed in functioning position.
Décor will be displayed appropriately on displayed furniture, walls, and retail display tables.
Hours of Operation
Open 7 days per week
Week Days: 10:00 AM - 6:00 PM
Weekends: 10:00 AM - 5:00 PM
Products and Services
Products Include: Custom built/Refurbished/Reclaimed furniture and décor.
Services Include: Sale of suppliers’ custom crafted products.
Products will appeal to antique shoppers, contemporary furniture consumers, reclaimed furniture and décor seekers.
WVCF will stand out from its competitors, by only carrying uniquely crafted furniture and décor that is at a competitive market average cost.
Salesmen will prospect for supplier business relationships through Craigslist and Social Media. WVCF will market and sell uniquely crafted products for a contractual commission of 35% of the sales price.
We serve our suppliers through the sale of their products at no upfront cost.
WVCF will in some cases craft its own unique furniture and décor. The building of such products will be done outside of the established business location, with personal tools and in personal space. Business built products will be transported privately and marketed for sale, directly to the public, from the store location.
Management will consist of the 2 primary salesman:
Tyler M: Account/Financial manager.
(Bachelors in business/Accounting/ Sales Experience)
Jacob C: Sales/Marketing manager.
(Real Estate License/ Business Education/ Sales Experience)
Business financing shall be handled by both owners. The savings account associated with WVCF shall be used as a safety net, in the case of a low sales volume. Debts will include: Rent, Water & Sewer, Garbage, Power/Electric, Insurance, marketing, internet and business supplies. Income of staff shall be subtracted to accommodate for low sales volume, if necessary. All Net profits made each month shall be placed into the WVCF associated bank account, for reinvestment and safety funds. At the end of each 6 month cycle, 20% of the WVCF profits will be split between staff, as a bonus. New, part-time employees (15-20 hours/week - $10.00/Hr) may be hired if quarterly net profit exceeds $10,000.00.
Start-Up shall happen upon which an amount of $8,000.00 has been saved or invested into the company AND upon 5 or more established supplier relationships and agreements AND upon the location of an available and affordable retail store.
Marketing will be done in the form of Billboards, Brochures, Business Cards, Social Media Advertising, Craigslist Advertising, Posters, Flyers, Coupons, Events, and Saturday Markets. WVCF will prospect for customers through these marketing efforts.
WVCF’s target market consists of people who have a passion for decorating and interior design, uniquely crafted and handmade furniture and décor.
Through our marketing efforts, it is reasonable to believe that 50-80% of all target market will be reached, locally.
Primary Competitor: Encore Furniture (Sells gently used furniture, paintings and lamps).
Similarities: WVCF and Encore Furniture both sell similar products.
Differences: WVCF sells custom pieces and refurbished/redesigned furniture and décor.
WVCF Advantages: Unique/Handcrafted furniture and décor.
Consignments: Pricing is determined by agreement with supplier.
In-House Products: Comparisons. Pricing will be established by recently sold items that are similar and at a price extremely similar to or lower than competitor’s price. (Beat price deals on like-items).
Advertising and Promotion
WVCF will advertise on a regular basis, through the use of Social Media and Craigslist. Additionally, there will be a billboard and sign placed in front of the location. Coupons, flyers and posters will be sent out on a regular basis via handouts, events, Saturday markets and door hangers.
Strategy and Implementation
To become established these steps will be taken:
• Establish 5 business relationships with suppliers.
• Establish a savings or investment of $8,000
• Send out grand opening invitations and promote business.
• Locate retail property.
• Send out grand opening invitations and promote business.
• Set-up inventory.
Business Licenses 200
Bank Account 4100
Interior Modifications 500
Equipment/Machinery Required: 200
Stationery/Business Cards 100
Pre-Opening Advertising 250
Opening Inventory 500
TOTAL STARTUP EXPENSES 8000
Full salaries within 2 months.
$1,500.00 in WVCF account, within 8 months.
$2,500.00 in WVCF account, within 12 months.
Increase staff salaries to $2,000.00/Mo, within 18 months.
$5,000.00 in WVCF account, within 24 months.
Increase staff salaries to $2,500.00/Mo, within 30 months
$10,000 in WVCF account, within 36 months.
Open new location, hire 2 part time employees, within 42 months.
Increase management salaries to $3,500.00/Mo, within 48 months.
At a sales profit of 35% of each unit, 30 days per month, WVCF would need to generate $516.67 in sales volume, daily.
An average profit rate of in-house restoration and development units would be about 70%. At this rate, WVCF would need to generate $258.33 in sales volume, daily.
A combined average profit rate from in-house and supplier product sales would be about 52.5%. At this rate. WVCF would need to generate $344.44 in sales volume, daily.