Build an Automated Wholesale Business - E-commerce Automation andPassive Income
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Automated Wholesale - Exclusively sell to and create thousands of independent retailers by owning an automated wholesale center. The Black Competitiveness Initiative Starts Today! I have been mulling over this for more than two years now. we have finally refined the pieces. now it is time to Launch what promises to be one of the biggest initiatives in the country focused on building black-owned manufacturers in the United States. This part is most important. Not just any manufacturers but black manufacturers operating under industrialization 4.0 standards. YES!!! the opportunity for black owned businesses in the United States to become leaders in manufacturing in the next part of our century will be done through Automation and Robotics. But that is no short task and the learning curve is immense. Entrepreneurial and pioneering spirit to push into this new era of business in the United States. Unlike many other programs of its type we will not try to push black Americans from where they are today directly into Manufacturing. that would be ludicrous. Instead we will start from the beginning. we will build strong e-commerce retailers as well as Wholesale Distributors. and then the initiative will carry their businesses through the practical and systematic transition from a successful retailer into a manufacturer through the path of cost reduction and scaling. The Black Competitiveness initiative or BCI composes of three primary components and objectives. 1. Create high-margin streams of revenue for Black-American-Owned web 4.0 e-commerce companies leveraging international sourcing and duty Free trade by 2025 2. Transfer Industry 4.0 knowledge and capacity from top manufacturing markets to Black-American-Owned companies by 2030 3. Localize Black-Owned Manufacturers in the US utilizing integrated Industry 4.0 and Web 4.0 methods by 2035 The BCI is currently taking interest by providing a free e-book on foreign sourcing available for download at https://qosil.world/qosil-sourcing-and-fulfilment-home/ This is an aggressive methodical initiative to increase the manufacturing capacity of our country through the original manufacturers of our country. As Booker T. Washington said, we seek dignified industrialization. Although industrialization might have been the instrument of our misfortunate arrival into the US, it is also our savior. When you utilize the latest technology and when the primary beneficiary of your labor is yourself and your family, then the labor is dignified. I add that when you meet this criteria in the modern age, dignified Industrialization is the key to ultimate self-determination. #cantonfair #cantonfair2023 #buyblackeconomics #generationalwealth #ecommerce #blackmanufacturing #favor #industry4 #blackwallstreet #greenwood #Kazakhstan #kazakhinvest Want the inside track become a Freedom Nation Business Citizen. Https://www.freedomnation.me/apply
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Build an Automated Wholesale Business - E-commerce Automation andPassive Income
- 1. © GENIUSCO SUPPORT SERVICES, LLC Exclusively sell to and create thousands of independent retailers by owning an automated wholesale center.
- 2. © GENIUSCO SUPPORT SERVICES, LLC 01. State of Black Business How are things today 04. How to Play / Q&A! How do you get started. Let’s answer questions you may have. 02. Why Wholesale? Why not another business? Why does wholesale make sense? 03. Path to Success What makes the businesses fail and what makes them succeed 0:10 0:20 0:00 0:10 0:30 1:00 0:20 0:30 Agenda. Black Competitive Initiative
- 4. © GENIUSCO SUPPORT SERVICES, LLC 2% of US Businesses 2% of Retailers <1% of Wholesalers Black Americans 16% of the population, 2% of business
- 5. © GENIUSCO SUPPORT SERVICES, LLC 25% of Retailers 50% of Hotels and Restaurants 16% of Wholesalers Asian Americans 4% of the population, 16% of business
- 6. © GENIUSCO SUPPORT SERVICES, LLC BOB are losing on every Metric - 30% of Minority Firms - <1% of Business Earnings - Each Businesses 90% smaller than nonminority businesses - <1% of workforce
- 8. © GENIUSCO SUPPORT SERVICES, LLC Very Few Can Pay The Bills - Average Profit Margins are below 15% - Average life of firms is 2 years - At $250k in gross receipts the profit is $50k/yr Geographic Area Name Meaning of NAICS code Sum of Number of firms Texas Manufacturing 60 Wholesale trade 105 Retail trade 280 Texas Total 445 Florida Manufacturing 45 Wholesale trade 92 Retail trade 212 Florida Total 349 Georgia Manufacturing 22 Wholesale trade 52 Retail trade 212 Georgia Total 286 California Manufacturing 22 Wholesale trade 62 Retail trade 192 California Total 276 New York Manufacturing 4 Wholesale trade 52 Retail trade 132 New York Total 188 Maryland Manufacturing 4 Wholesale trade 42 Retail trade 122 Maryland Total 168 North Carolina Manufacturing 4 Wholesale trade 22 Retail trade 92 North Carolina Total 118 Virginia Manufacturing 4 Wholesale trade 24 Retail trade 72 Virginia Total 100 New Jersey Manufacturing 4 Wholesale trade 19 Retail trade 72 New Jersey Total 95 South Carolina Manufacturing 4 Wholesale trade 19 Retail trade 67 South Carolina Total 90 Gross $250k+ Gross Under $250k Geographic Area Name Meaning of NAICS code Sum of Number of firms Texas Wholesale trade 250 Manufacturing 350 Retail trade 1450 Texas Total 2050 Florida Manufacturing 250 Wholesale trade 350 Retail trade 1350 Florida Total 1950 California Manufacturing 180 Wholesale trade 300 Retail trade 1250 California Total 1730 Georgia Wholesale trade 240 Manufacturing 240 Retail trade 1250 Georgia Total 1730 New York Manufacturing 130 Wholesale trade 190 Retail trade 850 New York Total 1170 Maryland Manufacturing 90 Wholesale trade 140 Retail trade 700 Maryland Total 930 North Carolina Manufacturing 90 Wholesale trade 110 Retail trade 550 North Carolina Total 750 New Jersey Manufacturing 80 Wholesale trade 100 Retail trade 450 New Jersey Total 630 Virginia Manufacturing 60 Wholesale trade 90 Retail trade 400 Virginia Total 550 Pennsylvania Manufacturing 50 Wholesale trade 70 Retail trade 350 Pennsylvania Total 470
- 9. © GENIUSCO SUPPORT SERVICES, LLC Most BOB are not full fledge companies They are Independent Contractors - Average Profit Margins are below 15% - Average life of firms is 2 years Gross $250k+ Geographic Area Name Meaning of NAICS code Sum of Number of firms Texas Total for all sectors 34900 Texas Total 34900 New York Total for all sectors 28830 New York Total 28830 Florida Total for all sectors 28450 Florida Total 28450 California Total for all sectors 27750 California Total 27750 Georgia Total for all sectors 27150 Georgia Total 27150 Maryland Total for all sectors 17560 Maryland Total 17560 North Carolina Total for all sectors 12190 North Carolina Total 12190 Virginia Total for all sectors 11240 Virginia Total 11240 Illinois Total for all sectors 10580 Illinois Total 10580 New Jersey Total for all sectors 10250 New Jersey Total 10250 Ohio Total for all sectors 8340 Ohio Total 8340 Texas Total for all sectors 3900 Texas Total 3900 Georgia Total for all sectors 2650 Georgia Total 2650 Florida Total for all sectors 2550 Florida Total 2550 California Total for all sectors 2450 California Total 2450 New York Total for all sectors 1530 New York Total 1530 Maryland Total for all sectors 1460 Maryland Total 1460 North Carolina Total for all sectors 1090 North Carolina Total 1090 Virginia Total for all sectors 940 Virginia Total 940 New Jersey Total for all sectors 850 New Jersey Total 850 Ohio Total for all sectors 740 Ohio Total 740 Texas Agriculture, forestry, fishing and hunting (660) 4 0% Information 19 0% Educational services 19 0% Mining, quarrying, and oil and gas extraction 22 1% Manufacturing 60 2% Accommodation and food services 92 2% Arts, entertainment, and recreation 95 2% Finance and insurance (662) 102 3% Wholesale trade 105 3% Other services (except public administration) (663) 122 3% Administrative and support and waste management and remediation services 122 3% Real estate and rental and leasing 222 6% Retail trade 280 7% Health care and social assistance 335 9% Professional, scientific, and technical services 350 9% Construction 570 15% Transportation and warehousing (661) 1390 36% Texas Total 3909
- 11. © GENIUSCO SUPPORT SERVICES, LLC 5.5 Million New Businesses Every Year - Grew by 34% after COVID - 68% Gen-Z and Millennials 16-40 - 35 Million Businesses - 200% more businesses than 7 years ago - Black business ownership is growing at the fastest pace in 30 years, and the share of Black households owning a business has more than doubled, from 5% to 11% in the last 3 years
- 12. © GENIUSCO SUPPORT SERVICES, LLC Retail is the second fastest Growing for Business Registrations - More new businesses are motivated to either sale retail goods or deliver and store retail goods - The exponential growth in the transportation and warehousing sector is due to the tremendous growth in e-commerce - The wholesale market is growing at 4x slower than the retail market
- 13. © GENIUSCO SUPPORT SERVICES, LLC Retail Business Registrations are highly concentrated to the Southeast More new businesses are registered every year in the Southeast United States than any other part of the country
- 14. © GENIUSCO SUPPORT SERVICES, LLC Growth is skewed in favor of wholesale Wholesalers Retailers Wholesalers Retailers 2019 2023 640k 285k 1.5m 350k 225% Ratio Growth
- 15. © GENIUSCO SUPPORT SERVICES, LLC Flow of Your Money (Retail) +15% -35% -25% -30% Low budget here will directly affect sales. To stop marketing is to kill your business. Also Legal, HR, technology etc. Admin, Marketing & Sales The cost of your inventory can vary greatly compared to sales COGS This is a conservative number. FBA charges 43% Operations/Fulfillment Average Profit For Black Owned Business Net Profit 100% Pay Yourself and Re-Invest +5%
- 16. © GENIUSCO SUPPORT SERVICES, LLC Flow of Your Money (Near Mfg Wholesale) +40% -10% -30% -10% Dedicate more to marketing and sales helps the business accelerate its growth. Admin, Marketing & Sales Direct from foreign Manufacture purchasing is as low as you can buy it and still retain quality COGS You have a shared or dedicated staff Operations/Fulfillment Average Profit For Black Owned Business Net Profit 100% Pay Yourself and Re-Invest +30%
- 17. © GENIUSCO SUPPORT SERVICES, LLC Increasing Representation on the Entire Chain 01 03 02 Wholesalers Develop successful wholesalers through automation of operations and general administration Retailers Create low-cost entry for retailers that do front end marketing and order in bulk from wholesalers Manufacturers Localize wholesalers as manufacturers by increasing their profits and profit margins
- 18. © GENIUSCO SUPPORT SERVICES, LLC Increasing Margins 01 03 02 Wholesalers Use Foreign Sourcing and Free Trade Rules to generate 70% Gross Margins Retailer Retailers can earn up to 60% Gross Margins Manufacturers Automated manufacturers selling direct to retailers 90% Gross Margin
- 21. © GENIUSCO SUPPORT SERVICES, LLC Qosil Specializes in sourcing and fulfilment in Kazakhstan http://Qosil.world/Qosil-sourcing-and- fulfilment-home
- 22. © GENIUSCO SUPPORT SERVICES, LLC Instant Access To Fulfilment Services We have the Facilities Feb, 2023 Instant Access To Special Logistics Prices We have the relationships Dec, 2022
- 23. © GENIUSCO SUPPORT SERVICES, LLC 20 Years Fortune 500 Project and Operational Management Over 200 Million in Projects Managed 20+ Years as Program, Project Managers & Technologists
- 24. © GENIUSCO SUPPORT SERVICES, LLC DAILY DUTY FREE SHIPMENTS FROM REGION TO KAZAKHSTAN Qosil Development, Ltd actively developing sourcing and fulfilment offices for black owned businesses in the Khorgos Cross Border Collaboration Center. The project will provide 100 100m2 units of packaging and fulfilment, 100 units for sourcing and international sales and sourcing offices and executive residential units for staff of foreign companies to stay in while they do business on the border. USPS PRIORTIY MAIL TO CUSTOMER All packages are shipped priority mail to customer’s door in the United States DAILY DUTY FREE SHIPMENTS TO THE USA UNDER CBP 321 DIMINIMIS VALUE The United States Customs and Border Patrol does not impose tariffs or duties on shipment to the US worth less than $800 USD C A B BULK AIR SHIPPING FROM ALMATY Qosil Fulfilment Services partners with a Kazpost to pick-up daily individual shipments from Khorgos and transport them to Almaty where they are consolidated and shipped to USPS in New York. D
- 25. © GENIUSCO SUPPORT SERVICES, LLC market deployment metrics venture metrics learning curve term sheet twitter assets validation COGS $15.00 The retailer is still able to make a 50% Gross Profit even if we drop- ship the product for him Wholesale $60.00 Source: Morocco We are sourcing Experts We traveled the world and localize sourcing for wholesalers and popular Asian North African markets. Maintaining ultimate quality control and we present every product idea to the owner for approval before purchase.
- 26. © GENIUSCO SUPPORT SERVICES, LLC market deployment metrics venture metrics learning curve term sheet twitter assets validation COGS $0.35 The retailer is still able to make a 50% Gross Profit even if we drop- ship the product for him Wholesale $6.50 We are sourcing Experts We traveled the world and localize sourcing for wholesalers and popular Asian North African markets. Maintaining ultimate quality control and we present every product idea to the owner for approval before purchase. Source: China
- 27. © GENIUSCO SUPPORT SERVICES, LLC Central Asia - Agriculture Collectively central Asian countries lead the world in many agricultural products North Africa - Cotton Leading the world in cotton and cotton textile mfg China, Thailand, Vietnam - Electronic Goods Asia produces over 80% of the world’s electronics China - Robots alpha pivot analytics supply handshake scrum project India - Plastics India has a large capacity for refining products from petroleum Turkey – Automotive Parts Turkey is a world leader in Automotive parts and products production
- 28. © GENIUSCO SUPPORT SERVICES, LLC Sourcing Agent Inventory Quality Control Packaging Shipping Duties 1000sf Fulfilment While it is common knowledge that buying product and the low cost overseas market can save most businesses money and increase their margins it is not commonly known that operating your business outside of the US can offer additional cost savings there are many times left unexplored. Cost Comparison US Based vs KZ QC FULL-TIME Operational Drastic Reduction United States (Import) United States (Buy Local) Operate in Kazakhstan
- 29. © GENIUSCO SUPPORT SERVICES, LLC Central Asia - Agriculture Collectively central Asian countries lead the world in many agricultural products North Africa - Cotton Leading the world in cotton and cotton textile mfg China, Thailand, Vietnam - Electronic Goods Asia produces over 80% of the world’s electronics China - Robots alpha pivot analytics supply handshake scrum project India - Plastics India has a large capacity for refining products from petroleum Turkey – Automotive Parts Turkey is a world leader in Automotive parts and products production JIT Just In Time Pull System Vs. Push System Small or No Inventory Vs. Significant Inventory Multi-Functional Labor Vs. Specialized Labor Total Quality Management Vs. Acceptable Quality Management Simple Cost Accounting Vs. Complex Cost Accounting
- 30. © GENIUSCO SUPPORT SERVICES, LLC 0 500 1,000 1,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Product Cost: $4 per T-Shirt Product Sale: $20 Product Per Container: 80,000 Shipping, Duties and Quality Control to America: 65% Monthly Operating Costs: $4,500 Average Monthly Sales: 5,000 t-shirts Units in X1,000 US Import (24 Months) Cash Flow & Profit Expenses INVESTMENT RECOUP Revenue RE-ORDER POINT 16 MONTH BREAK EVEN 18 MONTH INVENTORY PLANNING NEW INVENTORY NEW INVENTORY TRUE BREAK-EVEN ORDER INVENTORY 18 MONTH CYCLE (Startup Cost $700k)
- 31. © GENIUSCO SUPPORT SERVICES, LLC 0 500 1,000 1,500 2,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Product Cost: $4 per T-Shirt Product Sale: $20 Product Per shipment: 5,000 Shipping, to KZ no duties: 15% Monthly Operating Costs: $2,000 Average Monthly Sales: 5,000 t-shirts Units in X1,000 Personal Salary: $4500/mo KZ FULFIL (24 Months) Cash Flow & Profit Expenses Revenue RE-ORDER POINT 1 MONTH BREAK EVEN 1 MONTH INVENTORY PLANNING NEW INVENTORY TRUE BREAK-EVEN ORDER INVENTORY EVERY MONTH MONTHLY CYCLE (Startup Cost 30k)
- 33. © GENIUSCO SUPPORT SERVICES, LLC “80% of businesses fail in the first year” US Census
- 34. © GENIUSCO SUPPORT SERVICES, LLC 03 Lackluster market research 05 Bad team chemistry 04 Unsustainable growth 06 Poor Management 07 Cash-flow issues 08 Eating Your Profits 01 Badly thought through business plans 02 Failure to adapt.
- 35. © GENIUSCO SUPPORT SERVICES, LLC “Can you Please Make it Simpler” Typical Black Entrepreneur when given a radically new idea
- 36. © GENIUSCO SUPPORT SERVICES, LLC Automate The Heavy Lifting 01 02 03 04 05 Representation and Authorization This is you as a CEO (5-6 days/Mo) Sourcing Identifying Suppliers , Product Development, Logistics, Quality Control Administration Legal, Human Resources, Accounting, Technology Marketing & Sales Social Marketing, Training, Customer Support. Fulfilment Order Fulfillment, Storage, Operational Process
- 37. © GENIUSCO SUPPORT SERVICES, LLC 10k Inv. & Mktg . $10K Exp. Cashflow For Your Business 01. Purchase Inv. & Mktg Your credit line is used to purchase inventory and to market your business. You will approve inventory purchases and the ad copy that goes out for your business prior to any release. 04. Re-Invest Based on Projection Prior to entering another month we ask you to participate in reviewing the data collected from the sales of your products and 03. Pay Expenses After your business makes a profit then we pay the administrative, warehousing, fulfillment and other expenses. Typically 27% 02. Sale to Resellers Qosil handles all marketing, customer services, fulfilment, returns, etc. the goal is to achieve 80% inventory liquidation or higher and to set margins at a level that will produce 1 2 3 4 First payments from Net profits go to grow the company‘s operating fund so that the company has more cash to operate from and can free itself from dependency on credit. To run a debt free business is always one of our primary concerns 00. Setup The Business Square one. We charge $3500 to setup your business and everyhting you need to be in full swing.
- 38. © GENIUSCO SUPPORT SERVICES, LLC 00. Setup The Business 00. Setup The Business Square one. We charge $3500 to setup your business and everyhting you need to be in full swing. • Business Plan Development Consultatiion and completion • Product Development (Analysis, Selection, packaging, presentation) • Website • Inclusion and integration into wholesale marketplace • Legal development and licenses • Establish Back-End software: CRM, Accounting Software, Social Accounts, Social Media Tracking, Onine user tracking, Warehouse Management, Dashboard for KPI Management. • Initial staffing $3500
- 39. © GENIUSCO SUPPORT SERVICES, LLC 10k Inv. & Mktg . 01. Purchase Inv. & Mktg 01. Purchase Inventory & Mktg Your credit line is used to purchase inventory and to market your business. You will approve inventory purchases and the ad copy that goes out for your business prior to any release. 1 • We help you establish a $10,000 Line of Credit for Inventory & Mktg expenses • The initial funds are drawn to pay for marketing and Inventory expenses. • Inventory ispurchased according to market projections
- 40. © GENIUSCO SUPPORT SERVICES, LLC 02. Sale to Resellers 02. Sale to Resellers Qosil handles all marketing, customer services, fulfilment, returns, etc. the goal is to achieve 80% inventory liquidation or higher and to set margins at a level that will produce 2 • We handle all parts of selling and supporting your resellers • Order fulfilment, custom changes, packaging, Quality Assurance, Returns, Etc. • The goal is to sale at least 80% of available inventory
- 41. © GENIUSCO SUPPORT SERVICES, LLC $10K Exp 03. Pay Expenses 03. Pay Expenses After your business makes a profit then we pay the administrative, warehousing, fulfillment and other expenses. Typically 27% 3 • Profit is initially used to pay for operating expenses, monthly software expenses, fulfilment costs, mortgage and staff costs • These operating costs are paid first • Each wholesale business is run in an individual wholesale warehouse with a minimal space of 900sq ft. • Profits from your business go to pay the 5 year mortgage and the property is deeded to your business afterwards
- 42. © GENIUSCO SUPPORT SERVICES, LLC 04. Distribute Funds 4 First payments from Net profits go to grow the company‘s operating fund so that the company has more cash to operate from and can free itself from dependency on credit. To run a debt free business is always one of our primary concerns • Profit is distributed to 3 accounts. The first to get paid is the business‘s operating account. The intention is to grow the operating account as not to continue to utilize the credit account • The owner‘s account is the next to get funded. This is the owner‘s direct income and is usually 15%-20% of Revenue • Only after all expenses are paid does the Bci account get funded at about 7%-10% of the revenue based on the margins of the sale
- 43. © GENIUSCO SUPPORT SERVICES, LLC 04. Re-invest Based on Projection 04. Re-Invest Based on Projection Prior to entering another month we ask you to participate in reviewing the data collected from the sales of your products and • Lastly the original amount is returned to the credit account in order to bring the balance to zero prior to the start of the next monthly cycle.