Anti-Fraud 1 Anti-Fraud Prevention Name Class Date Professor Anti-Fraud Prevention Fraud is the intentional act of stealing another individual’s identity or misappropriating funds from a business or an organization. These individuals intentionally steal money from their business or commit acts of deception to gain the money of their victims. It is important for the company and even the individual to establish internal controls to prevent fraud. The company will need to employ a prevention plan that includes a clear fraud policy and use detection strategies to discover acts of fraud. Regardless of size or sector, training, especially involving loss prevention, is critical to any business (2009). The small business takes the greatest hit from this type of crime and it can cause the small business to go bankrupt. The FBI's Internet Crime Complaint Center released its annual Internet Fraud Crime Report in 2006. The reports included multiple fraud types, including auction fraud, non-delivery, and credit-card fraud, as well as non-fraudulent complaints, such as computer intrusions, spam/unsolicited email and child pornography (2010). A monetary loss from business and personal fraud exceeds $660 billion annually and on average a business or organization will lose 6% of their profit in a year. Businesses with less than one hundred employees will be the hardest hit by this crime. Occupational fraud and abuses fall into three main categories: asset misappropriation, fraudulent statements, and bribery and corruption (2009). A comprehensive control program would aid the organizations in avoiding this financial loss. It will provide valuable internal controls and assess the effectiveness of current internal controls. A confidential, anonymous reporting system will be developed and safeguard the companies assets. The comprehensive control program would provide many benefits for the company. It would provide preventive, detective, and corrective controls and will apply new improved auditing standards and rules to follow concerning the standard of controls concerning both inventory and cash flow. In order to be proactive when protecting a company from fraud, this program would provide helpful strategies and methods for eliminating fraudulent activity. Preventive measures that would be taken would work to stop fraud before it happens. It will provide controls for protecting the company’s assets and the private information of company personnel. Detective controls will be applied to alert company officials of any potential threats of fraud and aims at finding and investigating possible incidents of fraud. Corrective controls will monitor existing controls and apply alternative actions for any aspect of the fraud plan is not beneficial to the company. The comprehensive control program will provide measures to remedy problems that are discovered, so that future frauds can be better prevented and detected (.

1. Anti-Fraud 1
Anti-Fraud Prevention
Name
Class
Date
Professor
Anti-Fraud Prevention
Fraud is the intentional act of stealing another individual’s
identity or misappropriating funds from a business or an
organization. These individuals intentionally steal money from
their business or commit acts of deception to gain the money of
their victims. It is important for the company and even the
individual to establish internal controls to prevent fraud. The

2. company will need to employ a prevention plan that includes a
clear fraud policy and use detection strategies to discover acts
of fraud.
Regardless of size or sector, training, especially involving
loss prevention, is critical to any business (2009). The small
business takes the greatest hit from this type of crime and it can
cause the small business to go bankrupt. The FBI's Internet
Crime Complaint Center released its annual Internet Fraud
Crime Report in 2006. The reports included multiple fraud
types, including auction fraud, non-delivery, and credit-card
fraud, as well as non-fraudulent complaints, such as computer
intrusions, spam/unsolicited email and child pornography
(2010).
A monetary loss from business and personal fraud exceeds
$660 billion annually and on average a business or organization
will lose 6% of their profit in a year. Businesses with less than
one hundred employees will be the hardest hit by this crime.
Occupational fraud and abuses fall into three main categories:
asset misappropriation, fraudulent statements, and bribery and
corruption (2009). A comprehensive control program would aid
the organizations in avoiding this financial loss. It will provide
valuable internal controls and assess the effectiveness of current
internal controls. A confidential, anonymous reporting system
will be developed and safeguard the companies assets.
The comprehensive control program would provide many
benefits for the company. It would provide preventive,
detective, and corrective controls and will apply new improved
auditing standards and rules to follow concerning the standard
of controls concerning both inventory and cash flow. In order to
be proactive when protecting a company from fraud, this
program would provide helpful strategies and methods for
eliminating fraudulent activity.
Preventive measures that would be taken would work to stop
fraud before it happens. It will provide controls for protecting
the company’s assets and the private information of company

3. personnel. Detective controls will be applied to alert company
officials of any potential threats of fraud and aims at finding
and investigating possible incidents of fraud. Corrective
controls will monitor existing controls and apply alternative
actions for any aspect of the fraud plan is not beneficial to the
company. The comprehensive control program will provide
measures to remedy problems that are discovered, so that future
frauds can be better prevented and detected (Spelman, 2010).
The preventive measures that would be applied are providing
safeguards for assets, proper authorization of transactions,
segregation of duties, independent checks on performance, and
an anonymous reporting mechanism like a fraud hotline. The
program will provide fraud education and evaluating, designing,
and implementing controls that proactively prevent fraud form
occurring in the company or the organization. If a company
provides preventive measures for fraud it will take away the
opportunity for immoral employees to commit acts of fraud.
The first step in any preventive programs is to encourage a
policy of reporting any wrongdoings, and to remain anonymous
to avoid any repercussions from fellow employees. The
objective of the plan is to educate the executives on the
environment in which fraudulent crime are more likely to occur
(Spelman, 2010). The employees should feel encouraged to
report any cases of suspected fraud. The culture of the work
environment can play into the criminal’s ability to commit a
crime. The goal is to control the environment through internal
controls and increase the pressure against committing fraudulent
acts.
Procedures that should be considered for detective controls,
including independent checks and a system for documents and
records are random audits, inventory counts, external audits,
designated reporting structures, and investigations. Monitoring
activities are important processes of detection procedures for
fraud. Monitoring access to assets, data, and the accounting
system will help detect any act of fraud and limit access to the
financial information of the company. Record and documents

4. should be stored in a locked, authorized area, with limited
access. Protecting the private information of company
employees is another important process of preventing and
detecting fraud.
Another important aspect of fraud control is the watchful
eye of other employees. A program will be implemented that
educates employees on the sign of fraud and the proper steps for
reporting fraudulent activity. The employees will be guaranteed
anonymity and will be able to report any acts of possible fraud
to a fraud hotline. The hotline will provide a telephone number
for all employees where a message concerning the fraud can be
left anytime during the day or night. The assurance of
anonymity will encourage employees to report acts of fraud and
save the company countless numbers of dollars in lost assets.
Personnel in charge of monitoring the hotline will use discretion
when taking down fraud complaints and no personal information
will be requested from the tipster.
Corrective measures will be taken using the comprehensive
control program. Once an incident of fraud has been reported to
the company’s fraud hotline, an investigation of the accusations
will be launched. The investigation will be conducted discreetly
and uncover any acts of fraud. Employees will not be accused of
fraud but instead evidence will be gathered before any
determinations are made. The employee that is accused of fraud
will be fired from their job and face criminal action. In order to
stop fraud from other employees, a strong message must e set
when an employee is caught committing acts of fraud.
Other corrective measures will include reviewing the current
procedures being employed by the organization. A risk
assessment will be developed for the company and alternative
preventive and detective measures will be implemented. The
program will be designed to fill in the gaps and provide more
comprehensive procedures for protecting the company from
fraud. A code of conduct and hotline are necessary elements of
an anti-fraud program (Lister, 2007). Key stakeholders in the
anti-fraud program; such as internal auditors, general counsel,

5. compliance officers, and other executives must be made aware
of the areas that are vulnerable to fraud.
Making employees aware of this comprehensive control
program will help to limit the number of fraudulent acts
committed in a company. Preventive, detective, and corrective
controls will protect the company from acts of fraud and
provide a better company culture in which employees can
thrive. Fraud destroys the assets of a company and breeds a
culture of mistrust. The company environment will be
controlled through internal controls and increase the pressure
against committing fraudulent acts. Employees that blow the
whistle on fraudulent acts will be provided with complete
anonymity and activities of employees will be monitored to
prevent these acts from happening.
References
(2009). Security Loss and Prevention Training. Retrieved
November 7, 2010 from
http://www.lptoday.com/training.htm
(2010). Essentials of Corporate Fraud: Fraud Prevention.
Retrieved November 7, 2010 from
http://www.fraudessentials.com/index.php?option=com_content
&view=article
Lister, L. (2007). A Practical Approach to Fraud Risk:
Comprehensive Risk Assessments can
Enable Auditors to Focus Antifraud Efforts on Areas where
their Organization is most
Vulnerable. Retrieved November 7, 2010 from
http://www.allbusiness.com/legal/legal-services-
litigation/8958091-1.html
Spelman, G. (2010). Fraud Prevention Plan Development and
Implementation ECPA Model.
Retrieved November 7, 2010 from
http://www.dpsa.gov.za/documents/networks/ac_rm/FRAUD_PR
EVENTION

6. Financial Plan.This section includes an MS Word section and an
MS Excel section. NOTE: Online financial templates usually
lead you astray. Therefore, you may not use them! Build your
own Excel® spreadsheets.
· Narrative assumptions or the premises for resource needs.
(Note: For some reason, many students forget to include this
section. Unfortunately, if you forget to do the narrative
assumptions your grade will suffer!) You may bullet point
these; in fact, that is typically a better format for
assumptions.What is an assumption? It could be the number of
units of your product you intend to sell; what price you will sell
them for; the revenue growth rate you are assuming; the
percentage of the selling price that will represent the COGS;
your monthly rent; interest rate on any loan you take; etc.
Anything that drives your revenues and expensesthat is not
generally known needs to have an assumption attached. That
does mean that simple items purchased, such as computers and
furniture, do not need assumptions. Only those things that are
out of the ordinary or vary considerably need assumptions.
Also include in here the legal form your business will take; that
will have an impact on the taxes your company will pay (or
won’t pay).
· Cash needs assessment (three years of a cash budget, done
annually). Include all cash invested in or loaned to the business
as well as all of your expenses that must be paid out. When
estimating your cash needs, be sure to include all start-up
expenses as well as ongoing cash needs until your business can
sustain itself. Remember that this will be different from your
income statement, since not all cash coming in to the business
(such as bank loan money and founder investments) show up on
an income statement, and there could be some non-cash expense
items on the income statement. Also, if you take a bank loan,
only the interest shows up on the income statement; there is

7. also, however, a principal portion of the payment that is a cash
outflow.
· Pro-forma income statement (three years, done annually). All
expenses must be broken down in detail. You cannot simply list
SG&A and report one lump sum, for example.
· And you need to set up data
Business Concept
Campus Couches is a furniture consignment store serving
Philadelphia area college students. Campus Couches has a
physical store front, warehouse, and e-commerce website. For
college students who are in need of selling or buying affordable,
gently used furniture, Campus couches, Inc. offers customers an
online and in-store platform with which to buy and sell
furniture in an organized manner. Campus Couches buys
furniture from prospective customers in the surrounding
community, picks up said goods, and delivers products to
paying customers. Our service eliminates the headache of
selling, delivering, and searching for affordable furniture from
reputable sources. Customers are primarily college students in
the Philadelphia area who are looking to buy and sell used
furniture.
Campus Couches operates a delivery service, in which an
associate will appraise a customer’s old furniture and deliver it
to a warehouse to be sold online. Once an item is sold, the item
is either moved to the store front to be picked up by the buyer
or delivered straight to the interested buyer. Alternatively,
customers could bring their furniture to the store front and have
it appraised and sold there.
There is definitely potential for warehouses in other cities with
college campuses, such as Boston or New York. There is also a

8. possibility to open store fronts with a solid inventory of popular
furniture that customers can buy on the spot.
Put simply, Campus Couches buys furniture from prospective
sellers and re-sells said merchandise to buyers, primarily in
Philadelphia but not limited to college students. This business
will take an existing market for price-conscious college students
and introduce them to a more organized platform for selling and
buying used furniture. This business eliminates the hassle of
delivering furniture and gives buyers the security of a reputable
retailer, all at an affordable price.
Industry Analysis
Campus Couches, Inc. falls under the used merchandise store
industry, or more specifically, used furniture. The used
merchandise industry in the US includes about $18,000 stores
with a combined annual venue of about $12 billion, and
includes companies such as Goodwill and The Salvation Army.1
However the industry is also very fragmented with the fifty
largest US companies accounting for just 25% of sales2.
Competition in the used merchandise industry is fairly high
because of low start-up costs and varies by geographic region.
In addition to competitive brick-and-mortar stores, e-commerce
retailers and auction websites also offer a wide range of new
and used goods at low prices.3 The variety of merchandise
coupled with the lack of physical stores help e-commerce
retailers achieve greater operational cost savings.4 According to
the Philadelphia Yellow Pages, there are about 150 used
furniture merchandisers within 5 miles of the Philadelphia
area.5 They all seem to be small businesses that rely on local

9. clientele to refresh their product rather than reaching and
expanding to more areas. However, only there are no brick-and-
mortar stores that serve college students and very few that offer
consignment for used furniture. About a quarter of competitors
are non-profit organizations that rely on donations to refresh
their inventory, such as Uhuru, Habitat for Humanity
Philadelphia, and Philly Aids Thrift. Another quarter of
competitors specialize in consigning antique furniture, which
does not serve the purpose of cheaper, affordable furniture for
college students.6 While there are a few businesses that cater
specifically buying and reselling to a niche market like Hotel
Furniture Liquidators and Boomerang (used office furniture),
there is no business existing for college students.7
1, 2Hoover's Online. Used Merchandise Stores Report.
Retrieved October 25, 2014 from Hoover's Online.
3, 4Hoopes, Stephen. (2014). IBISWorld Industry Report 45331:
Used Goods Stores in the US. Retrieved October 25, 2014 from
IBISWorld database.
5Used Furniture Stores. (n.d.). Retrieved November 25, 2014,
fromhttp://www.yellowpages.com/philadelphia-pa/used-
furniture-stores
6Uhuru Furniture & Collectibles. (n.d.). Retrieved November
26, 2014, fromhttp://uhurufurniturephilly.blogspot.com/
7Certified Pre-Owned Office Furniture for Sale. (n.d.).
Retrieved November 26, 2014,
fromhttp://www.boomerangofficefurniture.com/
In the used merchandise industry, the sellers and buyers of used
goods are on and same. While some customers are content with
donating their used goods to non-profit organizations, others
desire cash or credit for sold items.8 With the large selection of
companies available in the used merchandise industry,
consumers are constantly comparing the pros and cons of
different companies. The rise of Internet retail especially makes
it easy to compare prices and selection of goods. While

10. inventory varies by company, the cost of such inventory is
almost always cheaper than new retail. When per capita
disposable income is low, price-conscious consumers are more
likely to shop for second-hand goods, according to America’s
Research Group.9 Regarding Campus Couches, suppliers and
buyers have no bargaining power on prices: our service gives
customers a non-negotiable appraisal that sellers can either take
or leave. The internet savviness of our clientele makes it easy
for them to search for nearby used furniture shops, specific
pieces of furniture, or selling prices. However, as stated earlier,
there are no other used furniture businesses that cater
specifically to college students specifically. Some shops do not
even have websites or a gallery of furniture available online for
customers to order. Other shops offer delivery, but customers
must at least visit that store to know what they are buying. Our
business is the only one in the Philadelphia area to offer
delivery, opportunity for resale, an online system of
organization, and specific marketing toward our clientele
simultaneously.
8Hoopes, Stephen. (2014). IBISWorld Industry Report 45331:
Used Goods Stores in the US. Retrieved October 25, 2014 from
IBISWorld database.
9Hoover's Online. Used Merchandise Stores Report. Retrieved
October 25, 2014 from Hoover's Online.
The industry is growing 7% annually, with used furniture being
one of the fastest growing segments, according to the National
Association of Resale and Thrift Shops.10Start-up costs are
low: stores are typically 2000-5000 square feet, and sales per
square foot range from $40-$100, which is low compared to
most retailers.11Licenses to sell used goods are not expensive
and not time consuming or obtain. New entrants may face
competition from local establishments for a limited number of
potential customers and also struggle with e-commerce retailers
like Craigslist linking buyers directly to sellers of used

11. goods.12 Since our company would like to have the convenience
of a location in University City to stay close to clientele, it may
be difficult to obtain a reasonable store front space that doesn’t
encroach on other furniture businesses. For instance, there is
already an existing furniture store, Home Furnishings, located
at 36thStreet between Walnut and Chestnut streets, that
specializes in popular dorm furniture items. There are also
thrifted furniture shops at 40th street, at the edge of University
of Pennsylvania’s campus. Our company also faces competition
from well-established e-commerce and private ad websites like
Craigslist and Freecycle that might make it hard to establish our
reputation as a new, hassle-free e-commerce website for used
furniture.
10, 11, 12Hoover's Online. Used Merchandise Stores Report.
Retrieved October 25, 2014 from Hoover's Online.
Sellers of used merchandise face competition from traditional
retailers selling inexpensive but new merchandise, as in
Walmart, Target, or discount department stores.13Target and
Walmart specifically market to college students during back-to-
school season, and already have an established relationship with
clientele. Ikea also has an established reputation, especially in
the Philadelphia area, for selling new furniture. It’s location on
Columbus Boulevard makes it easy to serve both Philadelphia
and New Jersey students. Its furniture is easy to assemble,
reasonably priced, and some items are specific to dorm-style
furniture. All the mentioned companies have circulated catalogs
and online websites that make it easy for consumers to choose
furniture and compare prices. Campus Couches also faces
furniture from private online ad websites, like Craigslist and
Freecycle, as well as social media forums that can be found on
Facebook. Such websites allow consumers to search for used
furniture, contact sellers, negotiate price, and even negotiate the
terms of delivery from seller to buyer. However, these websites
don’t guarantee the sale of used furniture. Some posts may go
unnoticed for an extended amount of time because of the sheer

12. number of posts that are created every day. Craigslist and
Freecycle also have a reputation for being untrustworthy or
unsafe since it is open to the public and anyone can post
anything. There is no mediator or certification that ensures the
safety of the transaction. Posts on Facebook are similar and
limited by friend circles and social groups. Facebook is also not
specifically tailored for the selling of merchandise, which can
make it difficult for customers to find what they want. Our
company offers an organized and safe platform for students to
easily sell and buy used and affordable furniture.
13Hoover's Online. Used Merchandise Stores Report. Retrieved
October 25, 2014 from Hoover's Online.
Based on the above analysis, the used merchandise environment
in Philadelphia is attractive. Campus Couches, Inc. is both an
in-store business and an e-commerce website, meaning it
reaches a large number of consumers, can compete with other e-
commerce websites, and also reduces operational costs. While
there may be issues in finding an appropriate location for our
business, there are no other existing businesses that offer what
we offer: convenience, resale, delivery, and e-commerce. There
is an existing market of many college students that are
interested in saving money and selling used furniture. As stated
earlier, start-up costs are small and upkeep is minimal.
Therefore the environment is attractive.
Some strengths of Campus Couches is that we serve a local
market, Philadelphia-area college students, allowing us to focus
on superior customer service and targeted marketing programs.
Serving a specific market allows us to acquire more relevant
merchandise, dorm and apartment furniture, which differentiates
us from retailers that sell all furniture in general. The Internet-
based nature of our business helps to manage inventory,
customer information, and reduce the cost of labor. Our website
also allows us to compete with classified ad websites and other
retailers that offer websites. In our industry, both buyers and

13. sellers are considered customers, and jobs in the used
merchandise industry require few skills and pay is low.14
14 Hoopes, Stephen. (2014). IBISWorld Industry Report 45331:
Used Goods Stores in the US. Retrieved October 25, 2014 from
IBISWorld database.
Some weaknesses of Campus Couches is that the quality of
merchandise submitted for appraisal can vary significantly in
quality and type. There is no control of what kind of furniture is
available at any time or even the quantity of such goods at any
given time. Inconsistency in pricing may also pose a problem,
so it is imperative to establish a standardized system of
appraisal to ensure that our prices are consistent within our firm
and still competitive with other companies. Acquiring pricing
software can also be very expensive. The turnover rate of
employees in the used merchandise industry is high because of
low wages, so our company must offer flexible scheduling,
ample discounts, and a larger number of employees.15
15Hoopes, Stephen. (2014). IBISWorld Industry Report 45331:
Used Goods Stores in the US. Retrieved October 25, 2014 from
IBISWorld database.
Campus Couches has the opportunity to develop mobile
applications that can help with mobile payments, managing
listings, and browsing for furniture. A mobile application also
allows for the opportunity to share such experiences on social
media, expanding the reach of our business. The acquisition of
improved and better-quality used goods will increase consumer
interest. Ongoing economic uncertainty encourages shoppers to
seek bargain prices: as the unemployment or poverty rate rises,
or when per capita disposable income decreases, sales at
Campus Couches will increase.16Students are always looking to
save wherever they can, especially with the rising cost of
tuition, supplies, and housing.

14. 16 Hoover's Online. Used Merchandise Stores Report. Retrieved
October 25, 2014 from Hoover's Online.
Campus Couches faces the threat of classified ad websites,
which have an established reputation and connects buyers to
sellers directly. Consumer taste drives demand and can also
impact inventory: what may be considered tasteful and
convenient one year may not maintain the same image years
later, leaving some merchandise outdated and virtually
unsellable. Also, more and more websites are being created
existing companies in order to keep sales on their books. For
example, Goodwill launched Shopgoodwill.com and
Mygoodwill, an online auction site for employees and associate
organizations.17
17Hoopes, Stephen. (2014). IBISWorld Industry Report 45331:
Used Goods Stores in the US. Retrieved October 25, 2014 from
IBISWorld database.
Overall, Campus Couches is at an advantage to compete with
brick-and-mortar stores and e-commerce websites. Campus
Couches serves a specific market of college students, making
merchandise relevant to the customer. The web-based nature of
the company also allows for a wider array of merchandise
available to more consumers and also allows for lower
operational costs. However, the company must be sure to have a
larger number of employees to make up for the turn-over rate of
the industry. The company must also be very wary of pricing
policies. In order to stay competitive, Campus Couches must
focus on e-tailing, standardized pricing, and establishing a
reliable relationship with customers.
Campus Couches faces a moderate amount of competition from
well-established brick-and-mortar stores. Goodwill Industries
International is a network of 165 local, autonomous member

15. organizations in the US and Canada.18 With over 2,900 brick-
and-mortar stores, Goodwill focuses on customized job training
for the disabled and homeless.19 Retail stores sell clothing,
books, and other donated goods and proceeds fund the
organizations’ employment provision services. In 2014, the
company estimated about 76,000 employees, with 261,975
individuals who gained meaningful employment through
Goodwill over the years.20 Goodwill has also launched an
online auction website, ShopGoodwill.com, which sources
products from donation and auctions them online, making them
competitive with other e-commerce merchandisers. Although the
company has undergone some speculation due to its
questionable employment practices, Goodwill has thrived during
recent economic downturns, like other companies in the
industry. Goodwill’s revenue is expected to increase at an
annualized rate of 9.3% to reach $3.9 billion.21
Although Goodwill has a positive, community outreach identity
and partakes in e-commerce, the company does not offer a
delivery service. The closest Goodwill locations are located at
Front Street and 7th Street, making accessibility for non-
commuter students difficult. The site is also strictly auction-
based and sellers make no profits from sales. Students are more
likely to shop at Campus Couches because of the profit from
second-hand items and the convenience of delivery.
18, 19, 20, 21 Hoover's Online.Goowdill Industries
International, Inc. Retrieved November 29, 2014 from Hoover's
Online.
The Salvation Army is an evangelical part of the universal
Christian Church. Like Goodwill, this organization offers
outreach programs for the homeless, addicts, elderly, and
disabled. The Salvation Army operates 1,266 thrift stores called
Salvation Army Family Stores, and offers clothing, furniture,
books, and other inexpensive goods.22 Proceeds from stores go

16. toward the operation of the Salvation Army Adult Rehabilitation
Centers.23 The company discloses limited financial data, but is
estimated to reach $600.3 million in 2014.24 The Salvation
Army has virtually the same advantages and disadvantages as
Goodwill. The closest Salvation Army Family Store is located
in Upper Darby, PA and does not offer delivery, compensation,
or even an e-commerce platform.
22, 23, 24Hoover's Online. The Salvation Army National
Corporation. Retrieved November 29, 2014 from Hoover's
Online.
Ikea is the largest brick-and-mortar furniture retailer in the
area, and also the world’s top furniture retailer. Although Ikea
offers limited delivery services, Ikea uses flat packaging,
enabling customers to assemble their furniture at home.25Ikea’s
low-price retail concept sustained it during the global financial
crisis in both the UK and the US and continued to remain
popular when economic times were better.26 Ikea had $37.2
billion in sales in the fiscal 2013 year with an increase of 6% to
the prior year.27 Ikea also distributes 210 million catalogs a
year and sells its goods online, giving the company plenty of
exposure.28 Visits to the website totaled 1.2 billion in 2013,
and the catalog app has been downloaded 9.7 million times.29
For college students looking for affordable, reliable furniture,
many turn to Ikea because of their easy-to-assemble furniture.
Ikea has been marketing to college students for years and the
company prides itself on simplicity. While it may prove
difficult to out-market Ikea, Campus Couches has the advantage
of focusing on local Philadelphian college students. Campus
Couches is also capable of creating a mobile applications and a
website that connects buyers to sellers through the company,
making the service more personable. Campus Couches also
offers delivery for all products, and the location of Campus
Couches is more accessible than Ikea’s location on Columbus
Boulevard. Campus Couches is also capable is reselling Ikea

17. furniture, so if a buyer wanted to purchase a specific Ikea
product, it is possible to find it via Campus Couches.
25, 26, 27, 28, 29Hoover's Online. Inter Ikea Systems B.V.
Retrieved November 29, 2014 from Hoover's Online.
Craigslist is a web forum for locals in metropolitan areas in the
US. Posts include listings for jobs, housing, companionship,
events, and the sale of goods and services. According to
Hoover’s, after many years of rapid expansion, the company’s
growth has dropped from 185% in 2009 to 43% in 2012.30 Any
person can create a post, with the exception of job posts which
require a posting fee. The posts are limitless and just about
anything can be found via Craigslist, including used furniture.
However, there is a mixed bag of products. Some sellers may
not offer delivery or negotiable prices, and there is a lingering
precaution for safety in online transactions. Campus Couches
offers a more focused range of products (used apartment or
dorm life furniture) sold by students for students on a safe,
mediated platform that offers delivery. The Campus Couches
website also organizes product by category and clearly lists
price. In this way, Campus Couches is at an advantage
compared to the cluttered, free-to-post nature of sites like
Craigslist, Facebook, or Freecycle.
30Hoover's Online.Craigslist, Inc. Retrieved November 30,
2014 from Hoover's Online.
In terms of how our product will be distributed, Campus
Couches offers a delivery service and a physical store-front.
The delivery service is used for online, thrifted product or
unwieldy furniture bought in-store. Buyers can either have
furniture delivered or pick it up themselves. The physical store-
front contains a solid inventory of popular furniture. It is
possible that in the future, Campus Couches can hold pop-up
shops, events where student ambassadors can promote the

18. business and students have the opportunity to shop for furniture
at a discounted rated.
Market Analysis
Description:
According to information taken from the US Census Bureau, in
2010 there were 149,405 Philadelphians enrolled in college or
graduate school. This is a 29% increase since 2000, when there
were 115,671 Philadelphians enrolled in college or graduate
school. (2013 Annual Report, 2014) Such a significant growth
in ten years leads us to believe that Philadelphia is going to
continue to develop and thrive as a city that attracts people to
attend college here.
This year, The American Institute for Economic Research
ranked Philadelphia number 12 out of the 75 top college
destinations which was organized by population size.
Philadelphia was placed into the “major metro” category. The
methodology of the rankings were based on comparing each
locations overall economic and academic environment, quality
of life and employment opportunities. (Aier.org, 2014) Thus
proving more to our point that Philadelphia is on the rise as an
attractive city for college students to attend which will increase
our business.
From 2000 to 2010, Philadelphia gained 50,306 new residents
within the age range of 20 to 34 years old. This is the first time
Philadelphia has seen an increase in population since the 1950
Census Bureau. (2013 Annual Report, 2014) Although our
specific target market is aged 20 to 25 years old, and some of

19. that significant increase includes ages outside our target market,
it still proves that Philadelphia is becoming popular for people
in their 20’s and makes it a more desirable city.
Based off this research, we know there are many customers
in our target market. In order to be successful we must enter the
market in a strong unique way to gain our first customers,
impress them enough to retain them, and allow them to spread
the word about their great service.
Primary Customer Description:
As we will be pursuing a B2C model, our primary customer are
our customers. We believe our primary customer will be located
in the Philadelphia area and attend one of the colleges or
universities there. Thus making the age of our primary customer
anywhere from 18 years old to 25 years old as we plan to attract
both undergraduate and graduate students.
People in college generally need new furniture after living in
the dorms and after their first year students are constantly
switching apartments and houses. For instance, many students
will spend a year in a house that needs to be furnished and the
following year move into a fraternity house or sorority house
that is already furnished. This would leave the student with the
trouble of finding someone to store the furniture or have a
difficult time selling it on companies like Craig’s List. Our
company would help students in making these moves less
stressful in a seamless manner. In addition, as we are a
consignment furniture store, college students are known to
always be on a budget and watching their money as it is an
expensive time in their life. Since all the colleges and
universities are considered city campuses, having a car is not
required here. By providing a delivery service we can help
alleviate the struggle of renting a uhaul or other means of
transporting furniture.

20. Primary Research:
In order to know if Campus Couches is a feasible business, we
conducted primary research. We facilitated interviews with 20
people from our target market. As we all go to Drexel
University and are undergraduate students, we thought it was
important to interview 20 people who all could provide us with
a different insight and opinion. Therefore, our 20 respondents
included undergraduate and graduate students from Drexel
University, University of Pennsylvania and Temple University.
Our findings were helpful and encouraging. Out of the
respondents, 85% claimed they would try our service at market
introduction. One respondent gave their reasoning and explained
that our company “sounds more reliable than Craig’s List, so
why not”.
When asked where the respondents usually buy their furniture,
75% stated IKEA. When asked if this company could meet their
needs, there was also a 75% answer of yes, it will meet their
needs. When these 15 respondents explained how it could
potentially meet their needs, they gave us the feedback we had
been wanting to hear. Overall, the respondents explained how
getting furniture from IKEA was overall a troubling experience.
Many respondents complained about finding a way to get to
IKEA and back was difficult and setting up the furniture was a
daunting task as well. Campus Couches would provide delivery
and since the furniture has been used previously it will already
be set up, thus improving the whole experience for our
customers.
When asked what our customers would expect to pay for our
product and service, our answers vary greatly as there are
various pieces of furniture that vary in size. As stated in our
financial section, we assume the average price will sold at $80
per unit. Although we received a variation in price from all the
respondents, 70% answered more than $80 per unit. Which leads

21. us to believe we will be pricing our product at a relatively good
price and that our target customers will be willing to pay for it.
Entry strategies:
There are various marketing tactics we are going to utilize when
entering the market to acquire our first major customers.
We are first going to try and establish a partnership with a non-
profit organization, Campus Philly. According to Campus
Philly’s website, their mission is to fuel economic growth by
encouraging students to study, explore, live and work in the
Greater Philadelphia tri-state region. Campus Philly has been an
established organization for over 13 years and over the years
they have accumulated numerous partners in order to connect
and assist the college students in Philadelphia. This is a great
platform for us when first beginning as they have a strong
following on various forms of social media. We will offer
certain discount codes such as “Campus Philly” to provide to
their customers and blast on their social media platforms. This
will also allow us to see how many customers we get from
Campus Philly and if we should continue investing time with
the organization.
In addition, we will establish relationships with off-campus
housing apartments. For instance, The Courts, which is located
in University City, always displays brochures for local food
stores and other businesses. The Courts does not offer furnished
bedrooms so we would give them brochures to display near the
front desk. We could also establish an agreement for a packaged
deal, meaning, if someone signs a lease with The Courts, they
get a 10% discount on their purchase from our website. The
courts will be providing us with promotions to our target market
and we will be encouraging our potential customers to sign with
them as well.
The final tactic we will use and that will be imperative to our

22. success is our referral program. As word-of-mouth marketing is
continuously proven to be effective and important to a
company’s success. This will hopefully get our brand name out
in the market and encourage repeat customers. If someone refers
a new customer, we will reward that person with a $25 gift card
on their next purchase. The gift card will expire in six months,
so many customers may not use their gift cards which will save
our company money in the long-term, however, it will make our
customers feel as if they are being rewarded which will
establish a relationship between our brand and our customers,
thus creating loyal customers.
Through these various partnerships and promotions, we are sure
to enter the market in a profound way setting us on the course
for great success.
Product Development Plan
Our team will be hiring an experienced furniture appraiser and
professional marketer. We will also hire two consultants, an
accountant and attorney. Our business will sell furniture both
online and in store which will be approximately 5,000 square
feet and will be open eight hours during the weekdays and ten
hours on the weekends. The furniture we obtain to sell will first
be appraised by two employees and a percent of final sale price
the seller will receive will be set at the time of agreement. The
percentage that our company will aim to receive from each sale
will be between 40 and 60 percent of the final sale price.
Financial Plan

23. New Venture Development Timeline
Phase 1:
Register Business
Acquire Permits
Acquire Location
Consult with others in the Business
Phase one = 6-9 months
Phase 2:
Review Leasing Plans
Develop Store layout
Arrange Business Location
Choose optional Advisors
Join Local Chamber of Commerce
Apply for Business Loans and Credit
Phase 2 = 4-6 months
Phase 3:
Business Filings Done
Have Licenses Validated
Have Permits Granted
Renovate Property
Open Checking Accounts
Develop Ad Campaigns
Phase 3 = 1-2 months
Phase 4:
Make Final Changes to Property
Acquire Inventory
Hire Employees
Make Business Cards and Brochures
Finalize Ad Campaign

24. Install Cash Registers and Equipment
Phase 4 = 1 month
Phase 5
Train Employees
Stock Inventory
Launch Ad Campaign
Open Business to Public
Phase 5 = 1-2 months