Company & Products
Uncommon Ground is a startup company that offers unique bath and body care products while helping to reduce the environmental burden of food waste. Using spent organic coffee grounds as a primary ingredient, Uncommon Ground will develop and market a line of products including bar soaps, shower gels, body and facial scrubs, and lip care products.
Two key differentiating factors will drive Uncommon Ground’s opportunity for success. First, by using recycled grounds, reuse is a vital component of the company’s sustainability strategy. Secondly, part of the workforce at Uncommon Ground will be comprised of at-risk youth who are aging out of the foster care system. The business will serve as a job-training and internship program …show more content…
Uncommon Ground’s custom formulations will be developed using organic ingredients and our specialty raw material of spent coffee. Sales channels will include online retail sales through the Uncommon Ground website, direct retail sales at craft fairs and farmers markets, and wholesale to boutiques, natural food stores, coffee houses and other specialty retailers.
Financial Information
Anticipated start-up and capitalization costs for Uncommon Ground are $225,000. Sales are projected at $313,000 for Year 1, $1,189,00 in Year 2, and $4,168,00 in Year 3. The company’s first profitable year will be reached in Year 3, with net profit after tax of approximately $852,000. Alternative Strategy While the company’s initial business plan is based on a combination of solid market research, realistic sales objectives and sound financial planning, it is important to identify potential risks. Uncommon Ground has developed a strong alternative strategy in the event of unforeseen circumstances that could become barriers to financial success. Financial risk management has been addressed in the previous section of this plan, and this section addresses strategies to manage risk events. Three potential scenarios that may be barriers to the success of Uncommon Ground could be poor sales, entry of a major competitor’s similar product, or the …show more content…
In order to combat such an occurrence, Uncommon Ground will try to maintain a low profile while selling locally, and move quickly into our target sales channels. Advertising will promote the products as unique and innovative, positioning followers as copycats. Once competitive products reach the market, however, Uncommon Ground will defend its niche by seeking additional sales channels (such as at trend-setting, youth-oriented retailers like Urban Outfitters and American Apparel), refocusing on new advertising targets and expanding our product line to include other recycled ingredients such as spent beer-making grains, fruit and vegetable refuse from juice bar establishments, and grape skin and seed pomace by-products from wine-making. Incorporation of these ingredients may also help develop additional sales channels at breweries, wineries, juice bar establishments and other
Uncommon Ground is a startup company that offers unique bath and body care products while helping to reduce the environmental burden of food waste. Using spent organic coffee grounds as a primary ingredient, Uncommon Ground will develop and market a line of products including bar soaps, shower gels, body and facial scrubs, and lip care products.
Two key differentiating factors will drive Uncommon Ground’s opportunity for success. First, by using recycled grounds, reuse is a vital component of the company’s sustainability strategy. Secondly, part of the workforce at Uncommon Ground will be comprised of at-risk youth who are aging out of the foster care system. The business will serve as a job-training and internship program …show more content…
Uncommon Ground’s custom formulations will be developed using organic ingredients and our specialty raw material of spent coffee. Sales channels will include online retail sales through the Uncommon Ground website, direct retail sales at craft fairs and farmers markets, and wholesale to boutiques, natural food stores, coffee houses and other specialty retailers.
Financial Information
Anticipated start-up and capitalization costs for Uncommon Ground are $225,000. Sales are projected at $313,000 for Year 1, $1,189,00 in Year 2, and $4,168,00 in Year 3. The company’s first profitable year will be reached in Year 3, with net profit after tax of approximately $852,000. Alternative Strategy While the company’s initial business plan is based on a combination of solid market research, realistic sales objectives and sound financial planning, it is important to identify potential risks. Uncommon Ground has developed a strong alternative strategy in the event of unforeseen circumstances that could become barriers to financial success. Financial risk management has been addressed in the previous section of this plan, and this section addresses strategies to manage risk events. Three potential scenarios that may be barriers to the success of Uncommon Ground could be poor sales, entry of a major competitor’s similar product, or the …show more content…
In order to combat such an occurrence, Uncommon Ground will try to maintain a low profile while selling locally, and move quickly into our target sales channels. Advertising will promote the products as unique and innovative, positioning followers as copycats. Once competitive products reach the market, however, Uncommon Ground will defend its niche by seeking additional sales channels (such as at trend-setting, youth-oriented retailers like Urban Outfitters and American Apparel), refocusing on new advertising targets and expanding our product line to include other recycled ingredients such as spent beer-making grains, fruit and vegetable refuse from juice bar establishments, and grape skin and seed pomace by-products from wine-making. Incorporation of these ingredients may also help develop additional sales channels at breweries, wineries, juice bar establishments and other