3. Introduction
Who: Owner/Operator: Jodi Steinberg from Chicago, Illinois. I
am 40 years old with a 3.9 GPA. bachelor degree in Public
Relations with a minor in TV/Radio broadcasting. And, and
associates in Culinary Arts. Link to my Linkedin Profile
What: I am proposing to acquire the Turquoise Turtle Beach
Shop including: the name, shop lease transfer and inventory in
St John island in the U.S. Virgin Islands from the current and
original owner of 13 years to current who wishes to retire.
What: The shop carries: the original St John Hook bracelet,
Water Candy jewelry, swimwear, sandals, hats, clothing,
sunglasses, paintings and even ukuleles!
How: The owner is asking $125,000 less Jewelry. I propose a
capital investment of $135,000 for an ROI of 20%. Distributions
on annual basis until ROI is satisfied.
Why: The current store has a gross income of $275,000 and the
location right across from the boat ferries from the other islands
is ideal.
4. Market Opportunities
Location is ideal not only 50 feet from the boat ferries dock, but it
shares a courtyard with a restaurant.
There are not any chain stores or restaurants on the island with
limited boutique stores. And 60% of the island is US national
park leaving not much opportunity for competitors to build.
A loyal following of return customers.
Exclusive rights to the original St John Hook bracelet.
*Tourist (Stop over) arrivals in 2015 USVI: Jan-Feb up 3.9%
** U.S. Virgin Islands expect 2017 to be a banner year for
tourism, officials are predicting.
**423 cruise ships will call dock in St. Thomas bringing 1.3
million passengers to the United States Virgin Islands
**Starwood Hotels & Resorts announced a $35 million project to
renovate the Westin St. John Resort & Villa. In addiction,
Starwood will convert 79 guest rooms into 54 luxury vacation
ownership villas under the new Coral Vista brand. Upon
completion, a total of 200 villas will grace the resort’s 47 acres.
•onecaribbean.org Caribbean Tourism Organization (updated May 7,
2015)
•**lapoostexaminer.com (April 21, 2014)
5. Market Strategy
Sales channels: 450 sq. foot store front run mostly by
owner daily and a new ecommerce website (to be
launched by August 2015)
Distribution channels: Some exclusive distribution of
hand made jewelry. Mostly intensive distribution
trough direct sale of wholesale products.
Strategic partnerships: Summer interns from the
business school of my alma mater: Lewis University in
Romeoville, IL. Where Jodi Steinberg was the
graduation speaker 2013 class.
Market penetration potential: Our store will increase
market share by opening an ecommerce website,
promotion campaigns and cross marketing
opportunities with the boat ferry operators as well as
the local restaurants, hotels and bars. We will
advertise in local and tourism publications.
6. Competitive Advantage and
Risks
Market niche: selling exclusive, jewelry,
sunglasses, bathing suits, hates, sandals,
clothing and other high quality sought after
brands and artists.
Unique opportunity: Limited amount of things to
do on the island so shopping is often a must do
whether on vacation or not.
Key success factor: Owner run and operated
generating a one on one customer experience.
Important risk: A serious economic downturn of
visitors to the island and/or spending
8. Financials
Our revenue projections for the next five years (in 10% increases
for first 3 years, 5% increase 4&5 after stabilization):
Year 1: $265,000
Year 2: $291,500
Year 3: $320,000
Year 4: $336,682
Year 5: $353,516
Gross margins: Net operating income (NOI) 26% of gross
revenues
Return on investment: 20%. Distributions on annual basis until
ROI is satisfied.
Exit strategy: Year5, term 2 of lease projected sale at a 40%
premium
9. Funding Requirements
How much money do we need? $145,000
What does this company need the funding for?
Initial purchase of store, lease transfer for 8-year
continuation, inventory ($10,000), jewelry
inventory ($5,000), operating capital ($10,000).
Timing: Is as soon as possible for high season.
Future rounds of financing: No. This has been
viable and profitable store for 13 years. There
should be no need for further funding.
10. Why invest?
A great return on investment 20%
You will always have a friend, and tour guide in
St. John, USVI.
Receive drop shipments of at cost priced items if
desired.
Fulfilling the dream of an extremely hard worker
and passionate business operator.
Thank you kindly!
Jodi Steinberg
Island.jodi1@gmail.com