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New Venture Feasibility Analysis

By Danny Howard,2014-06-29 10:13
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New Venture Feasibility Analysis ...

     College of Business and Administration

    University of Central Florida

    New Venture Feasibility Analysis

    Company Name: _Fishstixx Custom Swimwear______________________________

Student:

    Course: _GEB 4111 New Venture Finance_________________________________

Section: _001________________________

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     College of Business and Administration

    University of Central Florida

    1. Company Overview

? What is the name of our company?

    o Fishstixx Custom Swimwear.

    ? Does it company currently exist, or will it be forming?

    o Forming.

    ? How is our company organized (e.g., sole proprietorship, partnership,

    corporation...)?

    o Limited Liability Company.

    ? What is our overall strategy and what objectives do we have?

    o Designing swimwear that will inspire young women to experience

    something new and have the feeling that their swimwear is their second

    skin, by providing customized uniquely tailored swimsuits that are one of a

    kind, and achieving the feeling of a healthy, free-spirited life-style of the

    beach.

    ? What are our goals for the company (keep it small, grow it big, franchise it...)?

    o Grow it big.

    ? What is the exit strategy for us and for our investors (sell to larger company, go

    public, buy out investors...)?

    o Go public.

    ? What additional information do we need to describe and organize our company?

    o Fishstixx caters to the young fashionista who wants a custom fit bikini and

    is seeking an alternative style for a forever-changing generation. Our

    customers can obtain Fishstixx Swimwear through our online retail store

    or through specialty surf/boutiques. Customers and buyers can choose

    from a variety of sizes, styles, colors, trims, jeweled accessories, and

    more. Our motto is anything goes! Whatever the customer wants, they

    get!

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     College of Business and Administration

    University of Central Florida

    2. Product/Service Description

? What exactly is our product or service?

    o Customized fashion swimwear.

    ? What isn't it? Carefully describe.

    o Not just another factory produced swim line that everyone can get at any

    store.

    ? What is unique about our product/service?

    o Our collection features innovative silhouettes that are decorated with

    electric prints and specialty trims. Each customizable suit exemplifies

    the attitude of its owner.

    ? What are its features and benefits?

    o A customer will not find another girl wearing the exact same suit. Each

    is designed with the customer in mind.

    ? Do we have any proprietary rights to the product/service (for example,

    technology, patents, copyrights, etc.)?

    o Designs and cuts of our swimwear.

    ? Why is our product/service superior to the competition, and how is it different?

    o Our products are customizable and unique. Each suit is designed

    specifically for our customers.

    ? What additional information do we need to define our product or service?

    o Fishstixx is a uniquely designed swimwear collection for the fashion

    forward surf/boutique customer. The Fishstixx collection features

    innovative silhouettes that are decorated with electric prints and specialty

    trims. Each swimsuit is custom made for its owner. Our attention to

    detail is like no other! Customers can choose from the specific style, fun

    print, vibrant colors, jewel tones, and more to create a one of a kind

    swimsuit that will make them stand out in a crowd. This funky and

    fabulous collection will have any fun beach-loving girl feeling sexy and

    beautiful.

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     College of Business and Administration

    University of Central Florida

    3. Industry and Marketplace Analysis

? What is the industry that addresses this market?

    o 31523 Women’s and Girls’ Apparel Manufacturing in the US.

    ? What trends are important in this industry?

    o Firms outsourcing local production to manufacturers in overseas countries.

    ? How does this industry segment the market?

    o The industry is segmented by products/services.

    ? Other outerwear 41.2% Share

    ? Blouses and shirts 20.1% Share

    ? Dresses 19.1% Share

    ? Lingerie and nightwear 11.2% Share

    ? Suits, coats and skirts 8.3% Share ? What is the market we intend to serve?

    o Specialty retail stores and online sales.

    ? How large is it?

    o Large. Not a legitimate response. Need real #s

    ? What is its growth potential?

    o Strong. Same comment here

    ? What motivates customer purchase decisions?

    o Appeal and demand.

    ? What additional information do we need about our marketplace?

    o The Women’s and Girls’ Apparel Manufacturing in the US industry is a

    very competitive industry. With recent imports penetrating the market and

    major players shifting operations overseas, pricing has become more and

    more important. Not only does pricing affect the industry but also the

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     College of Business and Administration

    University of Central Florida

    level of real household disposable incomes, fashion swings and trends,

    brand strength, weather patterns, and quality of the product.

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     College of Business and Administration

    University of Central Florida

    4. Marketing Strategy

? Who are our target customers?

    o The fashionable twenty-something year old with a free-spirited lifestyle. ? What problems are we solving for them?

    o Filling the void of feeling like everyone around you has the same suit as

    you.

    ? What are their profiles?

    o Feminine, twenty-something girls who love the healthy, free-spirited life-

    style surrounding the beach.

    ? What motivates their buying decisions?

    o Appeal and demand.

    ? What are the strengths of our product/service?

    o Quality, custom suits that fit like a glove. ? Weaknesses?

    o Meeting the customers’ specific ideas and wants.

    ? Who are our competitors?

    o Other surf/fashion swimwear lines that is available for purchase. ? How will we differentiate our product or service?

    o The customer can customize their suit by style, color, size, etc. ? How will our product be priced?

    o 100% mark-up.

    ? What are gross revenues per unit sold?

    o Fifty dollars.

    ? What are anticipated annual sales?

    o $23,540,000.

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     College of Business and Administration

    University of Central Florida

    ? What additional information do we need to create an effective marketing strategy?

    o The purpose of Fishstixx Custom Swimwear is to provide young

    fashionable women one-of-a-kind swimsuits that will match their

    personalities and fit their unique bodies. This will be accomplished by

    creating individual distinctive pieces that inspire girls to express

    themselves. The target market is the fun-loving, free-spirited twenty-

    something female looking for an alternative style. Marketing tools to be

    utilized will be a combination of classified advertising in magazines and

    newspapers, direct mailing of catalogs, sales at trade shows, publicity in

    magazines, direct sales calls to retail stores, and a web-based online store.

    The niche to be occupied is an alternative design to everyday swimwear.

    Our identity will be one of expertise, reliability, quality, uniqueness, and

    quick response to customer requests. Thirty percent of sales will be

    allocated to marketing.

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     College of Business and Administration

    University of Central Florida

    5. Distribution & Sales Strategy

? What distribution channels will we use (e.g., direct sales, mail order, wholesalers,

    etc.)?

    o Online, selling direct, agents, retailers, and advertisements. ? How will we communicate with our customers (e.g., advertising, promotions, etc.)?

    o Advertising.

    o Public relations.

    o Personal selling.

    o Printed materials.

    o Other means of promotion.

    ? How will our product or service be sold?

    o Personal selling, direct mail, online buying, and retailers. ? Who will do the selling (our own sales people, manufacturing representatives, etc.)?

    o An internal sales force, brand representatives, trade shows, and online. ? What are the costs associated with our sales strategy?

    o Costs include fabric for the swimwear, accessories such as beads, jewels,

    and rhinestones, sewing machines, payroll, fixed and variable costs, and

    shipping charges.

    ? Which costs are fixed?

    o Plant and equipment.

    ? Which are variable?

    o Labor, materials, etc.

    ? What additional information do we need to create an effective sales strategy?

    o The intention of Fishstixx Custom Swimwear is to let younger girls

    express themselves and be unique. In order to get out and reach the

    younger females we need an inspirational, knowledgeable, motivated sales

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     College of Business and Administration

    University of Central Florida

    team. They will go through extensive training to make sure that they know

    all they need to know to get out there and make the sale. Our website will

    be easy and attractive to the eye so buyers enjoy their online buying

    experience with us.

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     College of Business and Administration

    University of Central Florida

    6. Operations Plan

? Which operations are critical to the success of our business?

    o The customization and tailoring divisions are pivotal for Fishstixx to

    succeed against our competitors. They lend us our competitive

    advantage.

    ? Which are secondary?

    o For the retail stores, the ability to make the customer feel at home and

    welcome. Also, timeliness is very important. We must always keep an

    edge over the competition.

    ? How will we produce and deliver our product/service?

    o The customer will place their order online and we will custom make it in

    our facilities. It will then be shipped out via a method that the customer

    can chose when they place their order.

    ? What will we do in-house, and what will we purchase (make vs. buy)?

    o All swimsuits will be made in-house. Fabrics and trims will be purchased. ? What will it cost to produce and deliver our product or service?

    o Fifty dollars.

    ? Estimate fixed costs (plant, equipment, etc.) and variable costs (labor, materials,

    etc.)

    o Fixed: $4,943,400.

    o Variable: $29 per unit.

    ? What additional information do we need understand and cost our operations?

    o We must follow every product through out operations and all the way to

    the customer’s hands, considering every cost in between. We must also

    use educated guesswork to accurately predict our operation figures.

    Correct depreciation methods and following the GAAP standards ensures

    us to be 100% legally and ethically correct as well.

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