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Janware Distributors
Janware Distributors has been created to obtain designer manufactured pottery and ceramic dinnerware products from selected regional supplier to exclusive supply specialty restaurant and the appropriate segment of the private consumer market. Agreement have been defined with qualified suppliers to contract with Janware Distributors and two lines of low end market product have been secured for supplementary sales.
The principal of Janware Distributors, David Janes has several years experience in the dinnerware industry and will be joined in the enterprise by his wife, Anne Janes, who is qualified in book keeping and has both sales background and dinnerware industry knowledge. It is proposed that the venture will employ one person to assist with handling and packing merchandise and provide occasional sales assistance.
The business can be located in the shopping centre to cater for domestic buyers and the site will serve as a display showroom for retail and restaurant clients as well as an office for the outside sales activities conducted by David Janes. It is expected that half the sales will be to personal consumers with the balance to restaurants and retailers in other regional locations.
The average, gross profit on product sales in 41% with a forecast of $317,220 in first year sales progressively increasing to an operating profit within 18 months. Initial capital investment will be returned by the end of the third year. The forecast profitability and growth achievements will benefit the business for eventual expansion or negotiated sale with good capital gain. The owners will draw minimum incomes from the business in order to maintain a re-investment strategy and maximize profits. An investment of $20,000 from savings will be made to assist with commencing operations.