business 101: common sense jason’s story: the birth and growth of vivere ltd
TRANSCRIPT
1976 TO 1995PETERBOROUGH, ON, CANADA
• BORN AND RAISED ON A DAIRY FARM
• FARMING WAS FINANCIALLY CHALLENGING
• HARD WORK WAS MODELED BY MY PARENTS
• SPORTS
• DRIVEN TO WIN
• COW KING
• 1995: AMERICAN FOOTBALL AT THE UNIVERSITY OF GUELPH
1995 TO 2000UNIVERSITY OF GUELPH
• AMERICAN FOOTBALL SUCCESS
• COW KING IDEA WAS DEAD
• 1999: GRADUATED WITH A BSC (AGRICULTURE)
• FLORICULTURE INDUSTRY
• START A FLORICULTURE BUSINESS
• MBA
2001 TO 2002MBA
• FINALLY!
• FLORICULTURE BUSINESS IDEA WAS DEAD
• UNIVERSIDAD DE GUADALAJARA, MEXICO,
• AUGUST 26, 2002 TO DECEMBER 20, 2002 MEXICO!
• OCTOBER 5, 2002: THE BIG EVENT!
JANUARY 2003MEXICO
• JANUARY 14 TO 24: MERIDA, MEXICO
• DAY 1: SUCCESS!
• DAY 2-8: PURE ENJOYMENT
• DAY 9: JANUARY 23, 2003 RICHARD
• DAY 10: RETURNED TO CANADA
2004
• JANUARY 10: MARRIED FAYE
• CFO JOB: 5 TO 4 DAYS PER WEEK
• FEBRUARY: FIRST CONTAINER (20FT) FROM BRAZIL, $60,000
• USED STUDENT FUNDS, SAVINGS AND PROCEEDS FROM FAYE
• WAREHOUSE: MY RENTED HOUSE
• SALES STRATEGY: COLD CALLS
• TARGET MARKET
• SALES: $21,000
• PROFIT: -$12,369
2006
• DECEMBER 29, 2005: 540 HAMMOCK STANDS FROM CHINA $25,000
• FEBRUARY 14: ANNIKA IS BORN
• 2004 CONTAINER
• LCL SHIPMENT FROM BRAZIL $20,000
• SALES STRATEGY: STILL COLD CALLING
• TARGET MARKET: GARDEN CENTRES/NURSERIES
• SALES: $60,888
• PROFIT: $1,001
2003 2004 2005 2006 $-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$2,000
$97,425
$194,850
$409,185
$1,376 $21,353 $30,558
$60,888
Sales
Forecast Actual
2007• CFO: 2 DAYS PER WEEK
• ADDED ROPE & NYLON HAMMOCKS, 15FT STANDS
• VISIT CHINA
• CANADIAN SHOWS
• SALES: $146,000 (GROWTH OF 140%)
• PROFIT: $9,300
2008
• JANUARY 25: QUIT MY CFO JOB.
• MARCH 3: JACOB IS BORN
• SALES: $250,000 (GROWTH OF 71%)
• PROFIT: $41,000 (EBT)
2009
• INCORPORATED: HAMMOCK VILLAGE LTD.
• HIRE FIRST SALES REP FOR QUEBEC
• BIG BREAK: HOME HARDWARE (1,200 STORES, $5B SALES)
• SALES: $614,000 (GROWTH OF 146%)
• PROFIT $100K+
2010
• JANUARY 1, 2010: VIVERE LTD.
• “INSPIRED OUTDOOR LIVING” AND “DRESS UP YOUR BACKYARD”
• JUNE 28: BUY A FARM
• DECEMBER 19: RUBY IS BORN
• SALES: $722,000 (GROWTH OF 18%)
• STABILITY:
• QUALITY CONTROL
• GOOD NETWORK
• NOVEMBER 5: HIRE FULL-TIME ADMINISTRATOR
• IT’S TIME: “PEDAL TO THE METAL”
2011
• CYPRESS WOOD STAND
• 6 MORE SALES REPS:
• JUNE 2011: USA LAUNCH
• SALES: $1,035,000 (GROWTH OF 43%)
2011 LAUNCH INTO USA
• STRATEGIES
• HIRE REGIONAL SALES REPS
• ATLANTA GIFT SHOW AND CHICAGO OUTDOOR SHOW
• EXTREMELY COMPETITIVE PRICING
• STEAL MARKET SHARE
• ONLINE RETAILERS
• SMALL BUSINESS – SPECIALTY RETAILERS (NOT MASS MARKET)
• WAS IT A SUCCESS OR FAILURE?
2011 LAUNCH INTO USA
• FAILURE! - MAJOR DISAPPOINTMENT….WHY?
• TOTAL SALES $112,000
• TOP 5 CUSTOMERS:
• $40,212 (36%)
• $19,750 (18%) CLOSEOUT SPECIALISTS
• $16,589 (15%)
• $ 9,400 (9%) LIQUIDATORS
• $ 6,379 (6%)
• MAKE CHANGES OR BE PATIENT
2011 LAUNCH INTO USA
ONE YEAR LATER…• 2011 STRATEGIES
• HIRE REGIONAL SALES REPS
• ATLANTA GIFT SHOW & CHICAGO OUTDOOR SHOW
• EXTREMELY COMPETITIVE PRICING
• STEAL MARKET SHARE
• ONLINE RETAILERS
• SMALL BUSINESS – SPECIALTY RETAILERS (NOT MASS MARKET)
• 2012 STRATEGIES
• HIRE ONLINE SALES REPS & IN HOUSE REP
• LAS VEGAS INT’L HARDWARE & CHICAGO OUTDOOR SHOW
• COMPETITIVE PRICING
• FOCUS AND PROMOTE OUR NICHE ITEMS
• ONLINE RETAILERS (EXTRA FOCUS)
• GET READY FOR MASS MARKET, SPECIALTY RETAILERS WILL COME NATURALLY
2011 LAUNCH INTO USA
ONE YEAR LATER…
2011 20120
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COGS Contribution Retailer Margin
2012 USA MARKET
• TOTAL SALES $1,000,000
• AMAZON.COM
• OTHER MASS MARKET
• DIRECT IMPORT
• SPECIALTY RETAILERS
• DISCOUNT RETAILERS
2012
• TOTAL SALES $2.5M (146% GROWTH)
• HIRED MORE PEOPLE
• LARGER WAREHOUSE
• EDI SOFTWARE
• MORE FINANCING
2013
• TOTAL SALES $5.7M (123% GROWTH)
• USA $3.5M
• CANCELLING ORDERS
• VERTICAL INTERGRATION
• NEW FACTORIES
• EXPANDING EXISTING FACTORIES
• HIRING MORE PEOPLE
• MORE FINANCING
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Sales
Actual Forecast
SUCCESS FACTORS
• NICHE PRODUCTS
• ECOMMERCE
• QUALITY PRODUCT
• SERVICE! SERVICE! SERVICE!
• QUANTITY
• TIMING
• PATENTS
• ASIA
MARKETING STRATEGIES
• SELL WHERE THE TRAFFIC EXISTS
• COOP ADVERTISING
• CONSUMER REVIEWS
• BRANDING
• SHOWS/EXHIBITIONS
• SOCIAL MEDIA
• WEB-SITE
TAKE HOME MESSAGES
• WORK WITH SOMETHING YOU ARE PASSIONATE ABOUT
• BE FLEXIBLE AND PERSISTENT
• INVEST TIME AND MONEY
• FOCUS ON AREAS THAT ARE GOING TO GENERATE MONEY
• BE FORWARD THINKING WITH BIG STRATEGY, BUT LOCALLY FOCUSSED