Cover Page My Hot Electronics (313) 283-4537 (phone) email@example.com (email) http://www.myhotelectronics.com (website) http://www.sportsfanplayground.com (website)
1.0 Executive SummaryMy Hot Electronics is a new e-commerce company that specializes in the sale of electronics aroundthe United States. As our name suggests, our focus is to bring the customers the hottest electronicsanywhere at the best prices, and position ourselves as one of the top online retailers in this particularmarket and niche.While not having a full physical store, our main control area is located in Michigan and we are able towork with various online retailers to ship products out nationwide in a timely and efficient manner.With having one of most aggressive PR campaigns in the industry, we will compete against the top e-commerce companies in the industry today, and possibly, out draw them over time.
1.1 ObjectivesThe objectives for My Hot Electronics are outlined below:1. To create a strong, e-commerce-based company whose main goal is to give thecustomer quick service and exceed expectations.2. To be able to reinvest in the metro Detroit area through working with film students andyoung actors in the area in terms of filming professional level commercials.3. Sales increase to over $25,000 by the end of the first year and increase aggressivelyby the end of the second year.4. To increase the number of consumers serviced by at least 30-35% per year throughstrong performance, fast shipping, aggressive marketing, and competitive pricing.5. Achieve a customer return rate of 95% by end of first full year of operation.6. Gain status as a strong and respected online shopping destination.
1.2 MissionTo provide the state of Michigan, as well as consumers worldwide, with qualitybrand-name products from the top manufacturers in the world at the bestprices, with the quickest shipping, world-class service with a small town feel,and to earn a fair profit through embracing ethical and moral businesspractices, and to reinvest and help in the revitalization of the State of Michigan.
1.3 Keys to SuccessThe keys to success at My Hot Electronics are:- Top-of-the-line customer service: Provide reliable, high quality IT and consumerproducts and provide quick and reliable service with some of the fastest turnaround timesin the industry.- Convience: Offering clients over 7 million products and licenses, ready to ship atanytime from one of 25 warehouses around the United States - Location: With My Hot Electronics being a strictly online business, the customer canpurchase items through their computer or mobile phone at any time from anywhere inthe country with quick shipping from one of the many distribution centers we arepartnered with around the United States, as well as the various vendors and brands weare affiliated with. - Strong Reputation: Conducting business with integrity, morals and credibility from 7years of experience in sales.
2.0 Company SummaryMy Hot Electronics will provide consumer and IT products and services to customers around theworld. We provide top-of-the-line products such as -- Tablets- PCs- Home Appliances (vacuums, refrigerators, stoves, etc)- Video Games- Televisions- Networking and Office Hardware and SoftwareWhat will separate My Hot Electronics aside from the competition is having an aggressive PRcampaign through PRWeb. With PRWebs Premium Service, we are able to advertise new productsimported into our store and news about our business everyday to millions of people, which we haveseen through our current marketing strategy, has increased our hits and sales over 145% since thebeginning of May 2012.While we plan on enjoying success with our company, we will also make a strong commitment tocommunity, as we are pledging that for our video marketing campaigns, we are committed to usinglocal production companies and actors for our videos. We believe in the film schools, companies andthe talent that has come from these avenues, and we are committed to giving the students anopportunity to succeed on a high level, allowing their work to be seen worldwide on a regular basis.
2.1 Company OwnershipMy Hot Electronics is a Limited Liability Company, and owned by DaVaughn Lucas.DaVaughn has 7 years of sales experience working for the Gail & Rice marketing firm inSouthfield, Michigan, working as a product presenter/specialist for Ford, General Motorsand Chrysler.
2.2 Startup SummaryThe startup expenses will primarily consist of upgrading the PRWeb advertising programthat is currently in place and upgrading computer hardware and software. The directowner investment has been $3,200.00.Consistent operation standards, aggressive marketing and a strong returning customerbase will allow My Hot Electronics to be self sufficient and profitable in year two, if notsooner.
3.0 ProductsMy Hot Electronics (myhotelectronics.com) is a leading retailer of electronic-based products, whichinclude tablets, televisions, blu-ray discs, DVDs, automotive parts and accessories, video games (oldand new), computers, office products, and networking solutions.The Sports Fans Playground (sportsfanplayground.com) is a leading provider of sports productsincluding jerseys, collectible items, sporting goods, fan apparel, accessories and sports toys.
5.0 Web Plan SummaryMy Hot Electronics will develop its web presence by continuing to have the websiteautomatically updated with current and relevant products in the various fields. Ourwebsite will continue to give strong product information about each of our products, ourvendors, our shipping times and any sales that may be happening at the time.
5.1 Website Marketing StrategyMarket strategy in an internet retail business depends on recognition ofexpertise by the consumer. For My Hot Electronics, our basis will be ourinternet website and performing press releases 7 days a week to advertisemilestone accomplishments and advertise new products that are just releasedor are about to be released.
5.2 Development RequirementsCosts that My Hot Electronics will expect to incur with development of itswebsite include:Development Costs- PRWeb News Release Program - $8,800- Scanner/Fax/Copier - $500- Mac Computer - $1,100
6.0 Strategy and Implementation SummaryMy Hot Electronics goal is to provide the most comprehensive line of IT andoffice solutions on the internet, with the focus being on promptness, customersatisfaction and helping the community. There is room for a strong IT industryto come into West Michigan, and for us, we keep the small town charm and feelthat the people of West Michigan hold dear, and spread that across the UnitedStates and the world with our company.Our intention is to gain 80% of this market share by focusing on our nichepositioning, brands that we well, excellent customer service, and making surethat a customer can reach our company through various means.
6.1 SWOT Analysis- Aggressive marketing in the online and television mediums is one of the biggest keys tocustomer retention.- The changing technology around the world would be a weakness in running thebusiness only because of the need to keep up and the need to be financially ready tostay ahead of the competition.- Due to the increase in internet usage via social networking, Ebay, and mobileapplications, more avenues open for increased brand awareness to the general public. - New, upstart companies that are opening in various areas will make for toughercompetition over time and the need to constantly re-invent ourselves and continue tocater to our customers and find new and creative ways to keep them.
6.1.1 Strengths- Strong advertising techniques.With the employees backgrounds in sales, marketing, and performance arts, the overall marketingstrategy will be aggressive and successful based primarily on the strength of our PR campaign withPRWeb Premium Program.- Working with strong vendors.Working with companies such as Amazon, Cisco, Nike, BeachBody, Apple and other vendors allow usto gain credibility with consumers and allow for quicker and more reliable shipping and buildingrelationships with customers.- Ability to have competitive discounts.Due to inexpensive distributor pricing, our entire store of products will always be on sale, with mostsales at at least 25-30% off the MSRP. Having the discounts will develop brand loyalty and get a highcustomer retention rate.- Ability to expand quickly - lower costs.With the low cost of putting together websites for international customers, our company can expandinto Canada and England quickly, and because of our strong search engine marketing program that isalready in place, we have received a strong amount of traffic from other countries and this will allow forus to create websites and e-commerce solutions that sell products that cater to the interests of thelocal consumers in other nations.
6.1.2 Weaknesses- Budget for television marketing campaign.Television marketing does have an great impact on consumers purchasing habits anddesires. By having the television marketing, the ROI would be even greater due to theproduct having a strong search engine presence already, having reputable products andvendors advertising in our store, and being able to reach a broader, nationwide audience.
6.1.3 Opportunities- The growing presence of mobile commerce around the world.As more online features become available via mobile devices, consumers are becoming able to do their shoppingdirectly on their various tablets, phones or even video game device. In 2015, shoppers around the world are expectedto spend about $119 billion on goods and services purchased via mobile phones (source: . That number represents 8%of the total ecommerce market. Our presence as a strong competitor in the mobile commerce market allows My HotElectronics to compete directly with a company such as Ebay.- The increased presence of social networking as a viable marketing vehicle. As more people become more reliant on social networking for news, events, and information about friends and family,businesses have realized that there is a marketing opportunity to reach out to a broader audience, more than even theaudience that would visit their stand-alone website. According to Experian, 90% of users aged 18-34 visit social mediawebsites as opposed to online blogs or networking websites. The numbers are also very one-sided for ages 35 andolder as well. By developing a strong Facebook and Twitter feed, it allows for My Hot Electronics to develop betterbrand awareness and opens the company up to new audiences that may not have been familiar with our store andallows for us to continously offer the lowest prices and build consumer trust.- The opportunity to reinvent.As mentioned earlier, the threats for My Hot Electronics will always come in the form of new companies developing andhelping move the IT retail industry forward. This threat will be seen by our company as a challenge to look at ourselvesand come up with new ways to stay ahead of our competition and improve our company to make the shoppingexperience better for our customers.- The opportunity to expand quickly.By partnering with multiple distributors, the opportunity to expand business overseas quickly is a guarantee. Within amonth, My Hot Electronics will be able to develop websites for Canada and England. By the end of a year, the companywill look to develop websites in China, Japan, France, Germany and Australia - for less than $2,000.Distribution centers are located around the world, and opens up the chance to expand brand awareness.- Selling Advertising for the websites.With the popularity of myhotelectronics.com and sportsfanplayground.com, we will be able to sell ad space on our sitefor a monthly fee or a pay-per-click campaign if the company prefers. As time goes on, we will charge a flat fee forcompanies to put up an HTML banner or ad in particular areas of the website.
6.1.4 Threats- Emerging local competitors.Currently, there are very few IT companies that have as aggressive of amarketing program implented as what My Hot Electronics would be proposing.However, competitors are on the horizon, and we need to be prepared for theirentry into the market. Many of our sales and offerings through the website,mobile applications and social media applications are designed to buildcustomer loyalty, and it is our hope that our quality service wont be easilyduplicated.With the ability to release press releases every single day, it allows for My HotElectronics to develop relationships with the top media outlets around the worldand continue to build a strong stance in the online marketing medium.
6.2 Competitive EdgeOur biggest advantage and what makes our company different from others ishaving strong search engine marketing capabilities and quickly building astrong reputation with potential customers because of our PRWeb newsreleases.The PRWeb News Releases, as an up-and-coming company, gives us theinstant exposure needed to make an impact on people who want to be able togo to a search engine and instantly find their information quickly. The PR allowsus to do that consistently.
6.3 Marketing StrategyOur marketing strategy will focus heavily on sales promotion, niche positioningin the marketplace and friendly customer service with loyalty and retention insales.- The marketing budget will not exceed 10% of our gross annual sales afteryear 1.- Our promotions will always stay in tune with our company objectives andmission statement.
6.4 Sales Strategy- We utilize the Amazon.com payment processing portal for credit cardprocessing. The various vendors that advertise on our sites handle the shippingfrom their direct shipping centers.- Along with having the transactions, the various vendors keep direct contactwith the consumers and delegate certain return policies for their items, relievingus of the responsibility of shipping or product defect.- My Hot Electronics and The Sports Fans Playground does not store customerinformation; however, we do keep track of the orders being placed and thevendors that are selling the items. If a consumer does have a issue with theirservice, we are able to contact the vendors directly about the status of aparticular item that has been ordered.
6.4.1 Sales ForecastThe following table and chart give a highlight on forecasted sales. We expectsales to start off conservatively but grow quickly once the spring begins. Thisgrowth would be a direct impact of the aggressive marketing campaign andbrand awareness initiative.The end of the summer and the holiday season represent our strongest salestimes due to students going away to college and looking for TVs, notebooksand tablets to have on campus and the aggressive sales and marketing effortsfor the holiday season, especially on Black Friday.
7.0 Management SummaryDaVaughn Lucas will access the productivity and perform informal employees evaluations of allemployees every six months. DaVaughn will be responsible for day-to-day operations of businesswhich will include -- Writing press releases- Researching trends in consumer purchasing- Assisting in website development- Developing online marketing campaignsMelissa Morgan would be hired on to work as the primary website developer. Melissa has an extensivebackground in HTML and CSS coding and has worked with DaVaughn from day 1 in terms of the basicdesign and flow of the website. Melissas duties would include -- Assisting DaVaughn with the online marketing campaigns when needed- Primary website developer- Researching International Trends in Marketing- Assisting in writing press releases
7.1 Personnel PlanThe personnel plan is included in the following table below. There willbe one full-time employee and 1 part-time employee working 35 hoursper week.
8.0 Financial PlanThe growth of My Hot Electronics will be steady and moderate and the cashbalance will always be positive. Being a retail environment we will not be sellingon credit.We will accept credit cards through the Amazon checkout system, which willsave on processing costs. Both myhotelectronics.com and sportsfanplayground.com are selling productscurrently and within 6 months, we project having strong sales numbersaveraging in the 200-250 sales a month range.
Startup FundingStartup FundingStartup Expenses to Fund $11,500Startup Assets to Fund $15,400Total Funding Required $26,900AssetsNon-cash Assets from Startup $12,500Cash Requirements from Startup $2,900Additional Cash Raised $0Cash Balance on Starting Date $2,900Total Assets $15,400Liabilities and CapitalLiabilitiesCurrent Borrowing $0
8.4 Projected Profit and LossThe following chart and table will indicate projected profit and loss. There are certainnotes about the startup fees:*The software that is needed for the implementation of products is a once-a-year fee of$8,800.*The hardware and software needed (desktop, notebooks) - $3,000 total - are one timefees.*The advertising that will be needed (commercial, internet marketing) will be one-timefees.
8.8 Long-term PlanOur long-term plan includes expansion into the Canadian and England marketswithin 6-8 months of launch, and expansion into Europe, Asia and Australia byyear 2.Also, in year 2, we will look to develop our software licensing company thatwould distribute operations software to major business firms worldwide.Our goal is to be able to sell products around the world with the quickness andease of the American service structure, and also run the franchise as a profitcenter for the purpose of building wealth for employees, the community, andthe Lucas family.
Sales ForecastSalesForecast Jan Feb Mar Apr May Jun Jul Aug Sep OctSalesMy Hot $544 $873 $949 $1,2 $1,3 $1,4 $1,6 $1,8 $2,5 $3,0Electro 57 73 81 74 97 88 5nicsSports $446 $825 $902 $1,2 $1,0 $1,6 $1,8 $2,0 $2,6 $3,1Fan 47 97 86 58 51 05 0PlaygroundTotal $991 $1,698 $1,851 $2,5 $2,4 $3,1 $3,5 $3,9 $5,1 $6,1Sales 04 69 67 32 48 93 4