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Business Project

Kitchen Genie ( An Online Store)

By

Syeda Mahin Nadeem

Roll# BBA-19-10

2019-2023

To

Ma’am Naureen Afzal

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Institute Of Management Sciences

The Women University Multan
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About Us

Welcome to our online store, where you can find all kinds of high-quality kitchen items for your
cooking and baking needs. From utensils to cookware, we have everything you need to create
and serve delicious meals that will impress your family and friends.

Our kitchen items are made from durable materials and designed to last for years of use. We
source our products from trusted manufacturers and suppliers, so you can be sure that every item
you purchase from us is of the highest quality.

Whether you are an experienced cook or just learning your way around the kitchen, we have the
perfect kitchen items to help you achieve your culinary goals. Our selection includes spatulas,
whisks, mixing bowls, baking sheets, and much more.

So why wait? Shop our selection of high-quality kitchen items today and start creating delicious
meals that everyone will love!
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Contents
Acknowledgement.......................................................................................................................................4
Executive Summary.....................................................................................................................................5
Section 1:.....................................................................................................................................................6
Introduction.................................................................................................................................................6
1.1. Brief Description of the Business................................................................................................7
1.2. Name of the business...................................................................................................................7
1.3. Logo............................................................................................................................................8
1.4. Slogan..........................................................................................................................................8
1.5. Vision..........................................................................................................................................8
1.6. Mission........................................................................................................................................8
1.7. Objectives....................................................................................................................................9
1.8. Core Values.................................................................................................................................9
Section: 2...................................................................................................................................................10
Service Description...................................................................................................................................10
2.1. Product & service features..............................................................................................................11
2.2. Customers benefit...........................................................................................................................11
2.3. Unique selling proposition..............................................................................................................12
Section: 3...................................................................................................................................................13
Industry Analysis.......................................................................................................................................13
3.1. Background and overview..............................................................................................................14
3.2 Significant trends.............................................................................................................................14
3.3. Growth rate.....................................................................................................................................14
3.4. Barriers to entry..............................................................................................................................14
Section: 4...................................................................................................................................................16
Competitor Analysis..................................................................................................................................16
4.1. Existing competitors...........................................................................................................................17
4.2Potential competitors........................................................................................................................17
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Section: 5...................................................................................................................................................18
Business Strategy......................................................................................................................................18
5.1. SWOT Analysis..............................................................................................................................19
5.2. Pest Analysis..................................................................................................................................20
Section: 6...................................................................................................................................................21
Marketing strategy.....................................................................................................................................21
6.1. Target market.................................................................................................................................22
6.2. Customer’s motivation to buy.........................................................................................................22
6.3. Market size and trend......................................................................................................................22
6.4. Advertising and promotion.............................................................................................................22
6.4.1. Media Used..............................................................................................................................22
6.4.2. Types of Marketing..................................................................................................................23
6.5. Pricing............................................................................................................................................23
6.6. The 5A marketing framework:........................................................................................................24
6.7. Solutions.........................................................................................................................................24
6.8. Consumer Persona..........................................................................................................................24
Section: 7...................................................................................................................................................26
Organizational Plan...................................................................................................................................26
7.1. Form of ownership:........................................................................................................................27
7.2.Partners:..........................................................................................................................................27
Section: 8...................................................................................................................................................28
Operational Plan........................................................................................................................................28
8.1. Description of company’s operation...............................................................................................29
8.2. What is flow of order?....................................................................................................................29
8.3. Technology utilization....................................................................................................................29
Section: 9...................................................................................................................................................31
Financial Plan............................................................................................................................................31
9.1. Startup cost.....................................................................................................................................32
9.2. Pro Forma Income statement..........................................................................................................32
9.3. Pro Forma Cash flow Statement.....................................................................................................33
9.4. Pro Forma Balance sheet................................................................................................................34
9.5. Break-even analysis........................................................................................................................34
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Pitch......................................................................................................................................................34
Business Model Camvas........................................................................................................................35
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Acknowledgement
It is truly an honor for me to prepare a report on business project and it would not be possible
without the constant support and guidance of my Teacher. I convey my heartfelt gratitude to our
Ma’am Naureen Afzal for her time and attention. She kept us motivated and determinant in our
endeavor.

I also like to thank my siblings and my friends for their moral support. Lastly, I am
thankful to all who advised me and helped me somewhere in this time.
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Executive Summary
We at Kitchen Genie, aims to provide high-quality and affordable kitchenware to our
customers throughout our online community. With a focus on customer satisfaction, we offer a
wide range of products that cater to the needs of home cooks and professional chefs alike. We
choose Drop-shipping as our business model because it allows us to keep our overhead costs low
and pass on the savings to our customers. We are excited to work with trusted suppliers who will
provide us with top-quality products at competitive prices. We’ll ensure that our customers get
the best value for their money.

Our target market includes individuals and families who are passionate about cooking
and want to upgrade their kitchen with the latest and greatest products. Professional chefs and
Restaurant owners, who need reliable and durable kitchenware for their businesses, can also take
full advantage of our suggested products. To make sure that we reach our target market, we are
planning to leverage social media platforms and online marketplaces to promote our products
and build our brand. We are eager to offer excellent customer service and fast shipping to our
customers so that our customers will have a positive shopping experience with us.

In summary, Kitchen Genie is poised for success, thanks to our focus on quality, affordability,
and customer satisfaction. We are confident that we can build a loyal customer base and grow
our business over time.
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Section 1:
Introduction
1.1 Brief Description of the Business

Drop-shipping is an e-commerce business model in which products are

sold online on an e-commerce platform without having to buy or store any inventory. Instead, we
purchase products from a third-party supplier or manufacturer who then ships the items directly
to customers.

Kitchen Genie is a drop-shipping business on Shopify that specializes in selling high-quality

kitchen products. The store offers two types of products:

 Those for common use

 Those that make customers go crazy for them.

These products are designed to solve customers' problems and provide them with benefits that
are hard to find in other stores. For instance, the common use products are perfect for everyday
cooking needs, while the unique ones can help customers explore their creativity and add a touch
of personality to their kitchen decor.

Kitchen Genie's products are carefully curated to ensure they offer high-profit margins, while
still being affordable and of the best quality. With Kitchen Genie, customers can enjoy an
exceptional shopping experience, high-quality products, and excellent customer service. This
model helps to reduce overhead costs which make it an attractive option for university students
and graduates.

Here we typically focus on products that have a specific niche market. By selecting the right
products and suppliers, we can achieve success in drop-shipping business.

1.2. Name of the business

Deciding and selecting a name for a business is not so easy and it becomes even more
difficult when the business is your ‘love at first attempt’. After giving up on all names, I came to
a conclusion to fuse two meaningful words together. I chose Kitchen Genie as my business
name. This name incorporates the words ‘kitchen’ and ‘genie’, conveying the idea that customers
are getting great deals of kitchen items.
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1.3 Logo

1.4 Slogan
Shop smart, cook smart

1.5 Vision
"At Kitchen Genie, we strive to inspire and empower home cooks with top-quality
kitchen products and exceptional service, making every meal a masterpiece

1.6 Mission
“To provide high-quality kitchen products at affordable prices while ensuring exceptional
customer service and satisfaction.”
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1.7 Objectives
 To provide the highest quality products at the best prices.
 To create a convenient and reliable delivery system for customers.
 To focus on customer satisfaction with hassle-free returns and a 100% satisfaction
guarantee.
 To provide our customers with the best possible shopping experience.

1.8 Core Values

 Quality: We are committed to providing high-quality kitchen products that meet our
customers' needs and exceed their expectations.
 Transparency: We believe in being transparent with our customers about our products,
pricing, and policies.
 Reliability: We ensure fast and reliable shipping of products directly to our customers'
doorsteps.
 Trust: We build trust with our customers by providing honest and accurate information
about our products and services.

Section: 2
Service Description

2.1. Product & service features

• Wide-range of products: Our business offers a wide range of kitchen items, from
cookware to utensils and small appliances to gadgets, ensuring that customers can find
everything they need.

• Competitive pricing: our prices are competitive with other online retailers, providing
customers with affordable options for their kitchen needs.
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• Fast shipping: our business ensures that items are shipped quickly, allowing customers to
receive their products in time.

• Social media presence: Our business has a strong social media presence, providing
customers with updates on new products and promotions.

• Dual-functionality: Many of our kitchen items come with dual-functionality, which

means they can be used for multiple purposes and save you money and space in your kitchen.

• Durability: Our kitchen items are made from high-quality materials that are built to last,
so you can trust that your investment will withstand years of use and remain in excellent
condition.

• Ergonomic design: Our kitchen items have been designed with your comfort and ease of
use in mind. With ergonomic features such as comfortable handles and easy-grip designs, you
can enjoy using our kitchen items for extended periods without experiencing any unnecessary
strain.

• Easy to clean: Our kitchen items are easy to clean and maintain, which means you can
spend less time cleaning up and more time enjoying your culinary creations.

• Exceptional customer service: We pride ourselves on providing exceptional customer

service, so you can trust us to help you find the perfect kitchen items for your needs. Our team is
always available to answer your questions and help you with any issues you may encounter.

2.2. Customers benefit

• Convenience: Customers can browse and purchase kitchen items from the comfort of
their homes without having to make trips to physical stores. This saves them time and offers
convenience.

• Affordable Prices: Customers can enjoy affordable prices and competitive promotions
when purchasing kitchen items from our store.

• High-quality products: Our store offers high-quality kitchen items that are both durable
and built to last, so customers can be confident that they're investing in a worthwhile product.

• Wide range of products: Our store has a large selection of kitchen items to choose from,
so customers can always find what they're looking for.

• Free Shipping: Our store has free shipping policies in most areas around the world which
reduces the cost of purchasing an item online.

• Easy returns and refunds: Our store is committed to providing hassle-free returns and
refund policies to customers, ensuring their peace of mind and satisfaction.
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• Excellent customer support: Our store offers excellent customer support, ensuring that
customers can easily get in touch with team for any concerns or questions they may have.

2.3. Unique selling proposition

"Our free shipping policy on most orders ensures that you can focus on creating culinary
masterpieces rather than worrying about shipping fees. Shop with confidence at Kitchen Genie..

Section: 3

Industry Analysis

3.1. Background and overview

The history of e-commerce dates back to the 1960s when the concept of electronic data
interchange (EDI) was introduced. However, the first online transaction did not take place until
1994 when a man sold a CD through a website. The following year, Amazon and eBay were
launched, paving the way for the growth of e-commerce.

In the early 2000s, drop-shipping emerged as a popular business model in e-commerce. It

allowed store owners to sell products without the need for a physical store or inventory. Instead,
they marketed the products online and forwarded customer orders to the supplier who then
handled the packaging and delivery of the product.

3.2 Significant trends

Some new and significant trends in drop-shipping of kitchen items include the increasing
demand for small kitchen appliances, gadgets, and utensils, as well as the popularity of the drop-
shipping business model itself. Some of trendy products are:

 Kitchen Utensils Organizer

 Stretchable Eco Lids
 Mini Bag Sealer
 Air fryers
 Electric kettles
 Portable blenders
 Coffee pods
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3.3. Growth rate

Searches for kitchen and dining products have seen a steady increase over the past five years.
With more people working from home or spending more time at home in general, this category
has more room to grow.

According to recent studies, the kitchenware market is worth $56.8 billion. It is expected to
expand by 4.5%, and by 2025 it will amount to $77.4 billion.

The countries experiencing constant growth of demand for cookware are the United States,
United Kingdom, Germany, China, India, Brazil, and Saudi Arabia.

Interestingly, according to Statista, more than 30% of consumers are extremely likely to make a
kitchen tools purchase in the next 12 months. And that’s just in the United States alone.

3.4. Barriers to entry

Starting own business in e-commerce and specifically choosing the right category is not as hard
as it seems but there is no journey worth pursuing which have no barriers at all. Here are some
barriers to entry:

 Finding trusted suppliers and building a strong relationship with them

Suppliers are the backbone of a business. We are providing customers with

latest and trendy products. As any new product launch in the market, we ensure it reaches our
customer in time. All of this is not possible without our suppliers. It is difficult to create and
maintain strong relationship with supplier but we ensure they get their fair share of profit on
time. Also, since the market is increasing day by day; more suppliers and manufacturers are
entering and making relations with the businesses operating in their niches.

 Building a strong brand image and reputation

Brand and brand image is an important factor these days. A strong brand can help a
business differentiate itself from competitors and increase the perceived value of its products or
services. A positive brand image can lead to increased sales and customer loyalty. By building a
strong brand, we aspire to stand out from the competitors.
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Section: 4
Competitor Analysis
4.1. Existing competitors

There are many businesses operating in this niche. But selling kitchen items is a consistent and
on-going business. This business will never get out of trend. People prefer every kind of product
ranging from basic kitchen utensils to fancy items. Most businesses in this niche provide variety
of products.

But there are huge amount of customers that are not satisfied with their product or their shipping
timing and even complains about high prices of low quality items. Some of the most ranked
online stores in kitchen products niche are:

• BlendJet® Portable Blender (blendjet.com) is ranked at 172 in the world ranking. This
store was created on 2018/03/09

• Tupperware® Official Site (www.tupperware.com) is ranked at 185 in the world ranking.

This store was created on 2016/12/30

• Ooni USA (ooni.com) is ranked at 209 in the world ranking. This store was created on
2018/07/06

4.2. Potential competitors

As a drop-shipping business in the kitchen items niche, there is no doubt that there is competition
in this market with the increasing demands for high quality kitchen products, many businesses
have emerged to meet the needs of customers. However, this competition can be viewed
positively, as it can drive innovation and keep businesses work hard, ensuring they provide
customers with the best possible product and service.
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To stay ahead of the competition, it is important for us to continuously improve our product
offerings, pricing, marketing strategies. We at Kitchen Genie will make sure to cover high
quality products with best shipping times and order tracking to our customers.

Section: 5
Business Strategy

5.1. SWOT Analysis

Strengths

• Lower Initial Cost: There is no need for a physical setup as the inventory part is
redundant with the drop shipping approach.

• Online Payment Method: The ease of multiple payment options can be significant for
customers and drop shippers as it reduces the risk of cash crunch

• Worldwide Access: There is no restriction to the operational capabilities as you can scale
your drop shipping business to any country in the world.

• Ease of Operations: Consumers can order products from your online stores without any
need for physical interaction with the business.

Weakness

• Lack of control: Once the order is passed on to the supplier, there is no control over it by
the drop shipper. From shipping charges to the delivery schedule, everything depends on the
supplier.

• Consumer Behavior: There is no customer loyalty, and everything depends on the

pricing. So, it is hard for drop shipping companies to determine consumer behavior

• Little Personalization: This depends on the market niche; some suppliers offer
personalization, while others don’t provide such a facility.

Opportunity
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• Maximum Categories: With no need for stocking the products, the drop shipping model
can be a goldmine for many startups and organization

• Growth Road-map: Drop shipping model is growing, and all you need is a roadmap to tap
into the market’s potential. In the present scenario, online stores are booming due to the
pandemic and that is a great opportunity.

• Maximization of Revenue: There is no limit to the type of products you can add to your
drop shipping marketplace, and that is an excellent opportunity for any business with higher
volumes of sales

Threats

• High competition: With a global reach, competition is higher, and that is a massive threat
for any business looking to exploit drop shipping business model.

• Profit Margins: Keeping the prices competitive is not easy, and that restricts the profit
margin. However, the drop shipping business model is all about volumes, and that is why it’s the
sales that matter more than margins.

5.2. Pest Analysis

Political:
The political environment can affect drop shipping businesses in terms of regulations, trade
agreements, and taxes. We have to keep an eye on the laws and regulations that affect your
business. For example, Political instability in Pakistan is affecting a lot of businesses today.
Recently, we have seen the closure of Internet and Wi-Fi for a whole week. This closure caused
huge losses in online businesses.

Economic:
The economic environment can affect your drop shipping business in terms of consumer
demand, currency exchange rates, and the overall economic climate. If consumers are spending
less due to a recession or inflation, your sales could suffer. Currency exchange rates can also
have an impact on your profits since you may be buying from one country and selling to another.
Pakistan has an inflation of 36.4% all-time high. Due to inflation, our earnings are still less
valued. We are not able to invest our hard earned money in Pakistan because of less options of
investments availability.

Social:
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The social environment can affect your drop shipping business in terms of consumer behavior
and trends. You need to keep up with the latest consumer trends and preferences in order to stay
ahead of the competition. Social media platforms can be a great way to stay connected with your
target audience and get insights into their behavior.

Technological:
The technological environment can affect your drop shipping business in terms of innovation and
automation. You need to stay up to date with the latest technologies and tools that can help you
streamline your processes and improve your customer experience. For example, using up-to date
and emerging websites and tools can help you provide 24/7 customer support.

Section: 6
Marketing strategy
6.1. Target market
The target market for our business may include amateur chefs, food enthusiasts, homemakers,
and anyone who takes pride in their kitchen and wants to make it a comfortable and functional
space. Purchasing products from an online store is a matter of impulsive purchase. Individuals
who are active on social platforms are better aware of upcoming trendy and new products. We
just cater to their needs by providing them with their choice of product. People aged between 25
to 50 years of age, are our main audience who are passionate about cooking and are willing to
invest in high-end cookware and appliances.

6.2. Customer’s motivation to buy

Convenience is a major factor, as shopping online from a store that lists product from multiple
categories, allows customers to browse and purchase products from the comfort of their own
homes. This saves them time and effort, as they no longer have to physically travel to a store to
make a purchase.

We believe that our customers' motivation also stems from our commitment to providing
exceptional customer service, competitive prices and hassle-free returns.

Our customer is most important for us. Therefore, for our customer satisfaction we are providing
free-shipping all over the world.

We are dedicated to helping our customers find the perfect kitchen items for their needs and
ensuring their satisfaction with every purchase. Through our strong dedication to providing
quality products and excellent customer service, we aim to establish a long-term relationship
with our customers and earn their trust and loyalty.
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6.3. Market size and trend

According to recent reports, the global drop-shipping market was valued at $128 billion in 2020.
The kitchenware market is worth $56.8 billion and is expected to expand by 4.5%, with an
estimated worth of $77.4 billion by 2025. This indicates the potential for growth in the drop-
shipping industry for kitchen products and cookware. The rise of e-commerce and mobile
shopping apps has contributed to the growth of the drop-shipping industry, which is expected to
continue growing at a CAGR of 32% from 2021 to 2026. Furthermore, the drop-shipping market
is expected to grow at a CAGR of 23.4% from 2023 to 2030, with an estimated revenue forecast
of USD 1,253.79 billion in 2030. To ensure success in the drop-shipping industry, it is important
to choose the right supplier, target the right audience, and offer high-quality products at an
affordable price.

6.4. Advertising and promotion

6.4.1. Media Used

Social media platforms like Facebook, Instagram, Tiktok, and YouTube have become important
tools for businesses. With the vast audience that these platforms generate, businesses can reach
millions of potential customers around the world. Social media advertising allows for highly
targeted marketing, making it easier for businesses to reach their ideal customers based on
demographics, interests, and behaviors.

6.4.2. Types of Marketing

• Organic marketing

Organic marketing on social media is essential for businesses looking to establish a strong online
presence. By creating engaging content and interacting with followers, we want to build brand
loyalty and trust. This way we will organically increase our reach to potential customers without
spending money on advertising.

Moreover, we can connect with our audience in a more authentic way, leading to long-term
success. For this purpose, we will rely on Tiktok and YouTube Marketing. Tiktok and YouTube
are two different platforms with two different kinds of audiences.

On Tiktok, we will be sharing our products creative videos. Here, we can reach to almost all
kinds of background and groups of audiences.

YouTube is different in this matter. On YouTube, there are people who want to search for a
particular product. We will make videos of our products and rank them using SEO. These
strategies will bring in traffic on our store and conversion rate will increase.
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• Paid Marketing

On Social media, Paid marketing is used to increase the visibility and reach on these platforms.
By targeting specific demographics and interests, paid marketing can help reach ideal customer
and drive sales. We will be implying paid marketing on Facebook to track and measure the
success of our campaigns. Facebook has its own advertisement service. It is known as FB Ads. It
has a fee per month which usually starts from $50 and we can increase it as needed.

6.5. Pricing
We decided to set our selling price by taking into consideration of our Costs, Margins and
Competition. One of our products we sourced from supplier costs us $10. This cost of $10
included the shipping fees and packaging from the supplier. For the Profit margin, we use the
multiple of 3 to calculate selling price which can vary from $25 -$30 for a product. This way we
cover our expenses and save profits in retained earnings.

6.6. The 5A marketing framework:

1. Awareness: At this stage, consumers become aware of Kitchen Genie through various
channels such as social media, email marketing, SEO, and paid advertising. These efforts aim to
reach potential customers and introduce them to the brand and its products.

2. Attention: Once consumers become aware of Kitchen Genie, the next step is to capture their
attention and interest. This may be achieved through targeted advertising, content marketing, and
referral programs. Kitchen Genie may also offer free or discounted products to incentivize first-
time purchases.

3. Acquisition: After capturing the consumer's attention, the next step is to convert them into a
paying customer. Kitchen Genie can use website optimization, checkout optimization, and
retargeting campaigns to help nudge consumers towards a purchase.

4. Activation: Once a consumer has made a purchase from Kitchen Genie, the next step is to
activate them and encourage repeat purchases. This may include post-purchase follow-up emails,
social media engagement, and loyalty programs.

5. Advocacy: Finally, satisfied customers become advocates for the brand and may share their
positive experiences through word-of-mouth, social media, and online reviews. Kitchen Genie
can encourage advocacy by offering incentives for referrals and by providing excellent customer
service.

6.7. Solutions
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 Kitchen Genie is based on the needs of consumers who are looking for high-quality
kitchen items that are both useful and affordable.
 These consumers may be home chefs, busy parents, or people who enjoy cooking but
don't have the time to shop for the latest kitchen gadgets.
 Kitchen Genie solves the problem of convenience for these consumers. Instead of having
to go to multiple stores or websites to find the products they need, they can simply visit
your website and find a wide range of kitchen items all in one place.
 Additionally, with reliable suppliers we ensures fast shipping times, Kitchen Genie helps
consumers who may not have access to kitchen items in their local area.
 Kitchen Genie's focus on quality, affordability, and convenience makes it a valuable
resource for consumers who want to enhance their cooking experience.

6.8. Consumer Persona

• Name: Anam

• Age: 32

• Occupation: Full-time working mother of two young children

• Income: Middle-class

• Location: Suburban area

• Interests: Cooking, meal planning, family time

• Personality: Busy, organized, goal-oriented

• Behaviors: Sarah is always on the lookout for ways to save time and make her daily
routine more streamlined. She enjoys spending time in the kitchen and takes pride in preparing
healthy and delicious meals for her family, but finds it difficult to balance this with her work and
family responsibilities. She is tech-savvy and likes to shop online.

• Motivations: Sarah is motivated by finding efficient and convenient ways to make her life
easier. She is always looking for high-quality kitchen items that can help her cook faster and
more efficiently. She is also attracted to affordable prices and easy returns.

• Pain points: Sarah struggles with finding enough time to meal plan and efficiently cook
meals due to her busy lifestyle. She may also experience frustration with low-quality kitchen
products that don't work effectively or break easily.

• How Kitchen Genie can help: By offering a wide range of high-quality and affordable
kitchen items that can save time and increase efficiency in the kitchen, Kitchen Genie can
provide Sarah with the tools she needs to balance her busy lifestyle with her passion for cooking.
Offering free and fast shipping and easy returns can also alleviate any concerns Sarah may have.
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Section: 7
Organizational Plan
7.1. Form of ownership:
Our business is based on Partnership. There are two Owners responsible of operating this
business. Thus, we have an equal share in profits, losses and any future liabilities.

7.2. Partners:
• Syeda Mahin Nadeem

She is a student of Business Administration. She did her intermediate from Punjab College and
Matric from Saint Mary’s Convent. She is handling product searching and trending items.

• Iqra Abdullah

She is currently enrolled in Business Administration. She did her intermediate from City College
and Matric from Government School Multan. She is responsible of updating store and apps.

Section: 8
Operational Plan
8.1. Description of company’s operation

Drop shipping is a business approach where the product fulfillment does not involve inventory or
the activity of keeping the products stocks. This is how it works:

 Product Sourcing

We sources products at wholesale rates from independent suppliers, third-party vendors and
even manufacturers. For this purpose, we used online retailers like Ali Baba, Ali express.

 Integration
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Integration is basically connecting our store with those websites or apps that will help us in
Fulfillment of orders. Then we integrate those products we choose for our store.

 Order Management

Whenever a customer chooses a product from our store and makes a purchase order. We take
that order and purchase that particular product from our supplier.

 Order Forwarding

As soon as we get the details of customers address, we forward the order to third-party
supplier and pay them on behalf of customer.

 Order Fulfillment

Supplier will fulfill the order by directly shipping the order to the customer.

8.2. What is flow of order?

 Customer places a purchase order from the store.
 As soon as we get the order request, we send this request to our fulfillment center with all
the shipping details and payment is made on behalf of customer.
 The supplier ships the order directly to our customer on their given address. They also
provide us with a tracking number in the system, so we keep updating our customer on
order delivery.

8.3. Technology utilization

Working as an online e-commerce store requires us to use a wide range of technology. The
market dynamics changes every second and to keep up with the fast paced changes we use
multiple software, websites to stay ahead of our competitors.

 E-commerce platform:

There are many e-commerce platforms nowadays. But I chose Shopify for my business
because it is a growing marketplace for small business owners and it is cheaper than Amazon.

 E-commerce software:

We used e-commerce software to create online stores and scale our sale. Debutify is an e-
commerce theme for Shopify stores. It is an all-around e-commerce theme with 50+ Add-Ons
that helps maximize store conversion rate.

 Payment Gateways:
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These are services that allow us to accept payments from customers all around the world.
We added 2 to 4 payment gateways including PayPal, Stripe, tranferwise and Payoneer to our
store.

 E-commerce tools:

We use various tools for our store sales and growth. One is Helium 10, which is an e-
commerce suite of tools use to manage and sell products, find keywords, identify trends,
optimize listings, streamline advertising campaigns.

 Marketing Tool:

For marketing and promotion purposes we rely on social sites such as Facebook,
YouTube and Reddit.

Section: 9

Financial Plan
9.1. Startup cost
The startup cost is $365, which is use to open store on the e-commerce platform and making it
able to run there. We have preferred to use $ as our currency of transactions because of
International selling of products.

Startup Costs $
Laptop 250
Web Store fees 29
Internet 14
Store theme fees 22
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Facebook Ads 50
Total Startup Cost 365

9.2. Pro Forma Income statement

Pro Forma Income Statement, Three Years
Year 1 Year 2 Year3
Sales 16200 43470 67770
Less: Cost of Goods 5650 14490 2590
Sold
Gross Profit 10550 28980 45180
Operating expenses:

Web-Store Fees
348 348 348
Store Theme Fees 261 261 261
Internet 168 168 168
FB Ads 600 600 600
Total 1380 1380 1380
Net Income 9170 27600 43800

9.3. Pro Forma Cash flow Statement

Pro Forma Cash flow statement, First Year by Months
Receipts Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Sales 900 900 900 900 900 900 1800 1800 1800 1800 1800 1800

Disbursemen
ts:
300 300 300 300 300 300 600 600 600 600 600 600
CGS
Laptop 250 - - - - - - - - - - -
 26

FB ads 50 50 50 50 50 50 50 50 50 50 50 50

Internet 14 14 14 14 14 14 14 14 14 14 14 14

Web-Store 29 29 29 29 29 29 29 29 29 29 29 29
fees
Store theme 22 22 22 22 22 22 22 22 22 22 22 22
fees
Total 665 415 415 415 415 415 715 715 715 715 715 715

Cash flow 235 485 485 485 485 485 1085 1085 1085 1085 1085 1085

Beginning 1000 1235 1720 2205 2690 3175 3660 4745 5830 6915 8000 9085
Balance
Ending 1235 1720 2205 2690 3175 3660 4745 5830 6915 8000 9085 10170
Balance

9.4. Pro Forma Balance sheet

Pro Forma Balance Sheet, End Of First Year
ASSETS $ Owner’s Equity $
Cash 10170 1st owner investment 500
2nd owner investment 500
Retained earnings 170
Total 10170 Total 10170

9.5. Break-even analysis

Break even analysis for the First Year
B/E= TFC/ (SP-VC per unit)
B/E= $1380/ ($30-$10)
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B/E=$1380/ $20
B/E= 69 units

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