EXECUTIVE SUMMARY (extract)
Our competitive advantage is based on our human expertise. It will be through knowledgeable staff in wine with good grasp on our portfolio and empathy. The goal is to build trust with the customers, to be able to advice them in their purchase according to their taste, the atmosphere they want to create and to be able to say no to a customer if the bottle will not fit their taste. Finally we are bringing the traditional French wine in the portfolio but also Spanish one that are less known.
Competition in China might seem fierce, as it is the new Eldorado, especially in Shanghai, the most Occidentalized city. However, our location analysis gave us a perfect spot with low competition – only two wine bars in the neighborhood with no retail option.
The project is having a paid-up capital equally divided among the founders of EUR 50,000. There is a Working capital requirement of EUR 100,000 that needs to be funded either through bank loans or through an investment and EUR 10,000 overdraft requirement.
The main points of expenses in the project are the rent and the inventory purchase. With a goal of 3% of the market share the first year, a margin of 45% over the bottle price and another 15% other the glass price at the bar, the project is expected to generate enough cash to repay the loan by the end of the third year with an IRR of 39,5%