the gift box wa4 version 2.0

Entreprenuers

Mission Statement:

“To be a trusted gifting company

that makes personalized gift

buying quick and simple.”

Brooke Rea

Elizabeth Vue

Jodi Green

Eric Wynn

Introduction The Gift Box

Online gift retailer with an array of customizable and

personal gift baskets for those on the go in today’s fast paced world.

How We Operate

Items are selected by the customer from products

offered on our website from select vendors.

The designers at The Gift Box can customize a basket

according to the person or occasion after a short

questionnaire is completed.

Preview Technology

Ability to preview the gift, BEFORE YOU BUY IT!

What We Offer Holidays Birthdays Just Because

The Problem Time Shortage

With a widespread shortage of time consumers

have a need for personalized custom made gifts

from birthday, to holidays, to just because.

Average working professional is working 72 hours a

week

Only left 3 hours a day to do everything else

(chores, grocery store, family time, etc.)

We will target the working professional who is short

on time to provide personalized not generic gift

options.

Source: Deal, 2013; "Welcome to the 72-Hour Work Week." Harvard Business Review Case Studies

The Solution

Busy professionals need better alternatives to the

mass produced gift ideas such as flowers or gift cards.

Give consumers the power to create a

personalized solution, using our “ The Gift Box” platform to take the hard works out of gift giving.

The freedom to be unique and thoughtful without

the high gift cost and valuable research time.

Company Status/

Customer Validation

Personalized gifts are in demand

Worth around 3.3 billion dollars annually in the US

Gift Basket Industry

40% of the total market

Future outlook

Staying competitive

Following market trends

Analysis of Competitors

Market Segmentation

Geographic Demographic Behavioral Psychographic

“Any location, online based”

• Start: Domestic

plan

• Locally

• Main cities

• Any city

with

delivery

drop offs

• Branch out:

Internationally

• Main cities

• Any city

with

delivery

drop offs

• Customers: Can

be broad but

mainly towards

ages 25 to 55

• Gender: Male/

Female

• Occupation: All

professionals

• Rate of usage:

Anytime,

available 24/ 7,

365 days a year

• Benefits: Easy to

use and choose

• Readiness to

purchase: Likely

due to

customized gifts

• Lifestyles: Fast

paced

• Attitudes: Caring

and wants

something

unique

“To any customer base that are limited

in time”

“Customers who want valued,

customized gifts for recipients”

“Customers who prefer to buy customized

gifts”

The Market

5

3

1

6

1

0

1

2

3

4

5

6

7

Spouse Best Friend Co-worker Customers Employee

Nu

mb

er

of

vo

tes

Market Survey

Survey takers consisted of:

3 C-Level Executives

4 Directors

3 Regional Sales Directors

6 Managers

The Market (Continued…)

Benefits

Gifts for everyone

Provide a much needed service

Demand all year around

Challenges

Upcoming competitors

Having the right resource

Competitors

Flower Delivery Gourmet Gift Baskets Online Gift Site

Competitors Comparison Matrix

Online Flower Delivery Shops

Online Gourmet Gift Baskets

Online Personalized Gift Shops

Our Online Shop

Examples FTD.com

Proflowers.com GourmetGiftBaskets.com

Gifttree.com MarkandSpencer.com The Gift Box

Types of

Products

Flowers, Plants, Sweets, Food

Basket, Stuffed

Animals & Personalized Gifts

Food & non-food gift baskets for all occasions,

Baked Goods

Flower, Gifts, Food & Wine for different genders, age and

occasions

Perishable and

non-perishables

Allows

Customizations No

Very Limited (Same Day Gift Baskets)

Limited (engravings/embroidering) Yes!

Prices $30-$350 $20-$250 $25-$1700 $25+

Business Model Canvas Key Suppliers Key Activities

Value

Proposition Customer

Relationships Customer Segments

• Kelli’s Gifts

• Supplies for

Gift Baskets

• Paper Mart

• Local

Hobby/Craft

Store

• Creativity and

originality of

the

arrangements

• Website

• Mobile App

• Creative staff

able to create

beauty

• We’ve got you

covered with great gift ideas.

• A convenient one stop shop for customized gifts for anyone

and everyone on your gift list.

• High quality, unique

gift arrangements

that exceeds

expectations

• Reliable and on

time delivery

• Business

Professional

• Generation X

age 38-50

• Generation Y

age 20-37

Key Resources Channels

• Wide Variety

of supplies

• Talented staff

• B2C – direct to

customer from

website

Cost Structure Revenue Streams

• Cost of materials and supplies

• Marketing cost

• Website

• Fixed/Variable Cost

• 33% - 50% Markup on materials and supplies

• $10.00 flat fee for each basket

Spa Basket

=

Pricing Structure Item Price Retail Cost

(50% markup)

Hand Massager $0.82 $1.23

Sisal Sponge $0.47 $0.71

Loofah $0.65 $0.98

Sponge $0.65 $0.98

Sisal Belt $0.83 $1.25

Bath Slipper $1.45 $2.18

Hair Brush $0.68 $1.02

Foot File $0.52 $0.78

Bathing Brush $0.60 $0.90

Basket $2.45 $3.68

Paper Filler $0.10 $0.15

Bow $0.16 $0.24

Total Cost of Supplies $14.07

Arrangement Fee $10.00

Total Cost to Customer (not including shipping) $24.07

Revenue

Spa Basket

Total Paid by

Customer

$24.07

Cost of Supplies -$9.38

Total Revenue $14.69

Marketing Plan Marketing Position

A one stop shop for customized gifts for anyone and

everyone on your list.

Marketing Strategy

Have the website developed and running to our

specifications.

Use social media sites like Facebook and Twitter to help

get the word out starting in the beginning of summer.

Make sure we are first on industry related google

searches (SEO).

Hit the pavement to market face to face with different

white collar professional office’s and different

networking association’s in the DFW area starting in

September so that they have us in mind when the

holiday season starts and they need gifts.

Pricing Strategy Pricing Strategy Pricing Starting at $25 and up

33% - 50% Markup on materials and supplies

$10.00 flat fee for each basket

Sales Forecast

Revenue Projection

Year 1

500 units = $25K

Year 2

1500 units = $75K

Year 3

3000 units = $150K

Financial Projections

Projection model based on average revenue per unit of $24.07, with a fixed cost of $9.38. This present a pre-tax margin of $14.69 per unit to the business operating income.

Operating revenue growth goal is a 4X multiples for the first 3 years.

The first milestone will be EOY 2 with a net operating cash flow of $75k, this will provide the capital restructuring opportunity for cheaper financing cost and additional growth capital injection.

Partnership

Structure at a

glance Capital Funding Strategy for

70%

13%

17%

Capital Structure

Debt 42k GP Equity 8k

LP Equity 10k

Round 1

funding goal

of 60k

Funding Memorandum

Initial capital requirement of $60k for development of online business infrastructure and marketing/sales.

Capital structure will be 70% of 60k (42k) bank variable loan with >2 year duration at minimum interest. The rest of 18k will come from equity investors. (each business partner will make the initial contribution of 2k each, adding up to 8k total equity investment from GPs (General Partners).

The remaining 10k will be offered at 1k per unit equity shares with cash flow option after year 2 for any additional LP (Limited Partners). LPs are also offered the option to exit after year 3 at FMV (Fair Market Value) to selling his/her shares to other LPs, GPs and new prospects.

Timeline

Year 1 Q1

•Market trend product selection

•Logistics

Q2

•Product Purchases

•Create online website

Q3

•Web and business launch

Year 2 Q1

•Online expansion

•Vendor partnerships

Q2

•Trend product update

Q4

•Positive cash flow

Year 3 Q1

•Advertising

Q2

•City expansions

Q3

•Trend product update

•Payback investors

•Earn Expected Revenue

Management Team/ Advisors

Brooke Rea

Currently involved in: Tax

Experience in different fields will

contribute to all other areas

needed in the business.

Interests

Interests in home décor, cooking

and craft items will be a great

contribution as it will relate to

products that we will market.

Jodi Green

Currently involved in: Sales/ Marketing

Experience in field will allow her to

market our business with vendors

and customers.

Interests

Interest in health will also help

generate great ideas for general

market of the same interest.

Eric Wynn

Currently involved in: Professional investment services, financial market, direct participation program and private equity

Interests

Interest in guitar, piano, and

traveling around the world.

Elizabeth Vue

Currently involved in: Accounting

Experience in different fields will

contribute to all other areas

needed in the business.

Interests

Interest in technology and children

will be a great contribution in that

general markets.

Summary

Our Vision

Opportunities

Challenges

Thank you!

Questions?