Presentation on theme: "Cigar World H. Anthony Vilar Executive Summary Opening a cigar company in Miami is a wonderful idea. The beautiful city has a population of approximately."— Presentation transcript:
Executive Summary Opening a cigar company in Miami is a wonderful idea. The beautiful city has a population of approximately 2.6 million residents. Therefore, when one sees it, he/she will spread the word in the matter of days and everyone will hear about it in no time. Cigar World will provide its customers with a large variety of cigars including many from Cuba which is where the best cigars are produced. Cigar World will represent itself in the area of Miami Beach. Miami Beach is if not the biggest, one of the biggest tourist attractions in Miami with over 14 million visitors annually.
Company Description Sole Proprietorship: Cigar World will be owned by one person but will have many employees.
Company Description Effective date of business: February 29, 2016
Company Description Company Mission Statement: “Our goal is to supply our customers with a fine variety of cigars. Our prime concern is the customers satisfaction with our service and finely cut cigars. Customer satisfaction is what forms an outstanding company.”
Company Description Company Location: Miami Beach, Florida
Company Description Immediate Goals: Satisfy all customers that attend Cigar World and multiply the amount of customers that walk into my store weekly.
Industrial Analysis Industry Description: Size: The cigar industry is a very large industry, with cigar manufacturers throughout the world.
Industrial Analysis Industry Description: Growth Rate: The use of cigars around the world are gradually increasing. In 2015, it is to be expected that there will be a 4.5% increase in market growth. There are currently 1.3 billion smokers in the world and it is expected to increase by almost 4%.
Industrial Analysis Industry Description: History: Cigars were started as early as in the 10 th century. It all started on an expedition that was lead by Christopher Columbus. He discovered tobacco on his expedition and brought back as much as he could to Spain. There, the cigar industry took off and began its own expedition.
Industrial Analysis Trends: Today, fat cigars are becoming more and more popular. There are now cigars, with the diameter of an inch. Another trend is handmade cigars from Cuba or the Dominican Republic. Opportunities: Manufacturing and selling fat cigars is a great opportunity for this business because they are very popular right now.
Target Market Profile: Our target market are adults with an interest in smoking. We specifically target adults because they are the only ones who can legally smoke. Therefore, the ones who do have an interests in smoking can purchase our cigars.
Target Market Needs: We need loyal customers who will continue to buy our products often. We also need those customers to spread positive words about Cigar World, its service and its products. If those needs are accomplished, Cigar World will be in up and running and in great business.
Competition Vilar Cigars Strength: Family owned business and very well known in the city of Miami. Large inventory with multiple cigar and cigar related products. Weakness: Parking. Even though they have valet parking, customers prefer to park themselves and get in and out quickly
Competition Deco Drive Cigars Strength: Very well known and organized store in Miami Beach. Rated the best cigar shop in Miami Beach Weakness: South Beach gets very busy and has too much traffic so customers may not want to go through the hassle of finding parking.
Competition Sosa Family Cigars Strength: Located near several restaurants (may want to smoke and or relax after dinner). 1,000 square foot Weakness: This shop is located on 8 th street and that street tends to have a lot of traffic.
Competition Not sure how much competition will be getting into the cigar industry because right now the industry is not booming and many companies are going out of business due to the economy.
Operations Business Facility Description: Cigar World will be located in Miami Beach in an area of much foot traffic and ample parking available. The facility will have very modern design with a state of the art humidor. We will have a beer and wine license, so we will have waitresses providing beverages at your service We will provide a barber that will give haircuts and clean shaves once a week at a nominal fee. We will have comfortable leather couches and luxurious chairs.
Operations Workforce Defined: The staff will consist of well groomed men and women. We will have 3 waitresses on staff during the evening hours from 4pm to close. We will have cigar savvy educated men working the cigar humidor.
Operations Technology : We will provide complimentary Wi-Fi for all of our customers. All employees will have tablets in order to charge their customers immediately and efficiently. Our security system will be top of the line, with many cameras inside and outside the humidor.
Entertainment The shop will provide live entertainment on the weekends We will have screens throughout the shop with news channels, weather channels, sports channels and financial channels. We will have music playing at all times. We will hold Domino Night every Wednesday There will be Ladies Night every Tuesday We will have a networking night once a month to promote and support local businesses
Management and Organization Key Employees: I will be the owner/manager of the store. I will have 1 humidor supervisor and 1 head waitress that will oversee the other employees in their specialty.
Management and Organization Recruitment Plan: I will interview people that have worked in the cigar industry previously and that have great rapport with customers, as well as cigar companies. I will be finding well groomed, personable, good looking waitresses that the customers will like around them.
Management and Organization Compensation and Incentives: Humidor Supervisor: $20/hour Head Waitress: $12/hour Regular Employees: $10/hour Waitresses: $10/hour These are all starting salaries and all employees will be able to keep all their tips.
Management and Organization Benefits: All full time employees will be offered individual health insurance. Full time employees will be given 10 paid vacation days Full time employees will have 6 sick days
Long Term Goals Goals Identified: My goals are to make this a profitable business. Would like to net about $50,000 the first year and grow the business by $25,000 every year after that. I would like to become known for excellent service and a large variety of brands. My goals are to make my company known nationwide with the possibility of obtaining business from out of state clients.
Long Term Goals Means for achieving the goals identified: I plan on working hard at developing my company name. I will advertise throughout the city. I will create deals with restaurants, bars and golf courses to get the name out in circulation. I will create specials with the nearby hotels for tourists and special events.
Financials Type of accounting system: I will use front end and back end Quickbooks. Quickbooks will track all the information needed; from inventory to sales to tax.
Financials Financial Projections: I would like to profit $50,000 the first year. I would like to increase my profit by $25,000 every year after that. I’m calculating my expenses to be around $8,000 a month, which means I would need to sell a minimum of $12,000 a month.
Supporting Documents Licenses: We will need to obtain an ATF license We will need a retail/resale license We need a tax ID We need a sales tax certificate
Supporting Documents Advertising: Social Media Tourist booklets Have a cigar waitress walking around selling cigars Area advertising
Supporting Documents Letters: Letters are needed for recommendations. Letters are needed to open accounts with cigar manufacturers Letters are required for contracts between customers and Cigar World
Fun Facts A thousand tobacco seeds can fit inside a thimble. An experienced roller can make at least 120 cigars a day. Cigars are made of three types of tobacco leaves. The variations of these leaves establish the smoking and flavor characteristics, specifically – binders, fillers and wrappers. The day before signing the embargo with Cuba, JFK had his Secretary of State running around buying up his fav Cuban cigars. While tobacco is grown in many parts of the world, Cuba, with its unique soil and climate conditions, is still considered to be the place that produces the best cigars in the world.