Promotional Products Maker Business Plan

Promotional Products Maker Business Plan


A market exists within the advertising specialty industry for velour and leatherette drawstring bags, eyeglass bags, jewelry bags & pen bags to hold various promotional products to increase their perceived value. Elsewares Promotional Products & Packaging (EPPP) has been established to supply these logo imprinted products to advertising specialty distributors who, in turn, market these products to the end user.

The Products

Elsewares intends to develop an inventory of unique products and drawstring packaging products that can add perceived value to those products. These products, which will be sourced from Mexico and the Far East, will be imprinted in-house with various company logos before they are shipped to the distributors.

Elsewares joining the Advertising Specialties Institute trade organization will give them print and electronic acces to a network (13,000 to 14,000 ASI)-listed advertising specialty distributors. This is part a $7 billion industry. This ranks only behind television and newsprint in terms of advertising dollars spent. Elsewares only markets their products through distributors. End users will not be sold directly by them. Elsewares is planning to reach distributors through ads in trade publications, an internal sales force, as well as a network comprised of salaried sales reps and commission-based representatives.

Parallel to our campaign to market these packaging items, we will present our unique promotional products to the same distributors. We can offer three sales opportunities, including the sale or the purchase of promotional products from other suppliers, as well as the use of packaging products by distributors to complement promotional items purchased from them.

The Market

Over $7 billion has been sold last year. The sales of the advertising specialties sector have increased at a rate close to 7% annually for the past decade. This is an established industry with many suppliers and distributors. The industry’s three largest suppliers of velour and leatherette drawstring bag products combined made $2,500,000. Those three suppliers are located on the East Coast while some of largest advertising specialty distributors in the industry are Midwest and West Coast firms. We believe by focusing our efforts on marketing the West Coast distributors – many of whom have already had positive business relationships and our personnel – we will capture a significant share of the packaging market over the next three year.

Financial Considerations

We will use a portion of our initial startup cost to buy inventory, office equipment, as well as imprinting machine. The balance will be used for catalog costs and initial advertising expenses. A financial commitment will be needed to finance payroll expenses and receivables for the first 12 month.

Elsewares aims to increase its sales in the West United States, and achieve a respectable sales level by Year 2. We should reach a monthly break-even with our monthly fixed costs estimate and expected monthly unit sales.

Elsewares wants a financial package built on a 5-year-old note that will be amortized over 15 year. The founder will personally guarantee this note. The company will have the chance to develop a track record that will permit it to obtain alternative financing. Elsewares owners do not plan to take any profit out of the business before the long-term debt has been paid. Any profits that remain after paying the debts will be used to finance future growth, principally through the acquisition and sale of inventory.

1.1 Objectives

The East Coast is home to the three largest suppliers of imprinted pouches for advertising specialty distributors. They are currently making a combined $2,000,000 in pouch sales. Elsewares plans on concentrating its sales force to the west and to reach a respectable sale level by the year’s end. Elsewares will factor its growth by diversifying into unique promo product offerings that will be appealing as advertising specialties in themselves or packaged in a drawstring bag which we can also provide.

1.2 Mission

Elsewares intends to develop an inventory of unique products and drawstring packaging products that can add perceived value to those products. These products, which are sourced from Mexico or the Far East, will have various company logos imprinted before being shipped to distributors.

By joining the Advertising Specialties Institute trade association, Elsewares will have print and electronic access to a network of 13,000 to 14,000 ASI-listed advertising specialty distributors, part of a $7 billion a year industry. This number is only second to TV and newsprint for advertising dollars. Elsewares will market their products exclusively through these distributors and will not sell directly to end users. Elsewares intends to reach those distributors through advertisements in trade publications, through an in-house sales force, and a network of salaried and commission-based sales reps.

1.3 Keys To Success

Management at Elsewares believes that the company has the right products and people to draw loyal customers. Our business philosophy is what will make us successful. Advertising specialty requires that products be delivered on-time and with high quality imprinting. These are the demands of the advertising industry.

Elsewares will satisfy this demand by maintaining acceptable inventory levels that will be delivered on time according to pre-arranged shipping schedules.

Elsewares is going to establish a quality assurance procedure to control the imprinting process on-site. This will ensure that imprint quality is acceptable.

Elsewares will not only offer a full line of velour packaging products but will also offer unique promotional products that will encourage advertising specialists distributors to think about Elsewares first when searching for original products.

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