Running head: EXQUISITE SKINS – COMPANY BUSINESS PLAN 1

Exquisite Skins– Company Business Plan

Danya Thomas, Doran Kelly, and Nadia Martinez

International College of the Cayman Islands

BE 444: Special Topics: Seminar on Entrepreneurship

Instructor: Melisa Hamilton

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TABLE OF CONTENTS

1. Cover Page

2. Table of Contents

3. Executive Summary

a. Product

b. Customers

c. Future of the Company

4. Business Description

a. Mission Statement

b. Partnership

c. Legal Structure

d. Location

e. Product/Services

f. Pricing Strategy

5. Market Research

a. Industry

b. Market Segment

c. Target Market and Demographics

d. Competition

e. Company Advantage

f. Regulation

6. Service Line

a. Pricing Structure
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b. Product Lifecycle

c. Intellectual Property Rights

d. Research and Development

7. Marketing and Sales

a. Growth Strategy

b. Communicate with the customer

c. Slogan

d. Character/Spokesman

e. How to sell

8. Financial Analysis

9. SWOT Analysis
EXQUISITE SKINS – COMPANY BUSINESS PLAN 4

Executive Summary

Products

Exquisite Skins is a supplier, wholesaler, and retailer of high-quality iguanas (lizard) skin

accessories such as handbags, belts, purses, and cell phone cases. These accessories are built to

be long lasting and beautiful to gain the interest of many individuals, especially those

specializing in exotic skin products.

Customers

Our Target market generally will be to reach customers locally and internationally. Also, focus

on the specific demography of customer that specializes in exotic skin items. Usually, lizard skin

products are made from three more popular lizards, not including the iguana. By providing more

of this product to the market, this will provide more options for customers. In addition, the

company hopes to get involved into fashion that is trending. Just by providing the raw material

for designers in the fashion industry daring enough to try a new product, will provide an

incentive for customers to take a closer look at the product.

Future of the Company

The company will to start by striking a deal with one of the biggest international suppliers of the

iguana skin industry. This will be made possible especially owing to the current local effort to

significantly reduce the iguana population. Furthermore, the company will sign an agreement to

be the exclusive supplier of this product locally. By extension, the company will also make an

arrangement for the first production line of items to be circulated in the local market to be

archived for future generations. Furthermore, enough supplies will be secured for others wishing

to purchase the product locally as well. The as a future plan to sell the company and business

idea once the supply of iguana skins is finished in Cayman.

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BUSINESS DESCRIPTION

Mission Statement

To prepare, supply internationally, and secure a local supply of iguana skins product sell iguana

the highest quality and quantity at the most competitive prices possible. You don't have to be rich

to afford our exquisite skins! We pride ourselves in quality, rare skins, and competitive prices.

Partnership

Doral Kelly - Owner, Designer, and primary builder

Nadia Martinez - Business Manager and bookkeeper

Danya Thomas - Builder, Assembler and Painter

Hired Employee - Web Master for handles shipping for the web, mail, and special orders

Legal Structure

Exquisite skin is a partnership. We choose a partnership as it’s the simplest type of business and

we think with three persons in command; we should be able to make quick and smart decisions.

Location

The warehouse will be located in East End; all cleaning, preparation, and processing of the skin

will take place there. After that, shipments will be sent to supplier overseas.

Product/Services

Our company will fulfil both categories. From a product standpoint, we will provide a variety of

accessories namely: belts, wristbands, purses, wallets, and phone cases. The company will also

have aside; this will be undertaken by supplying a considerable quantity of iguana skins to a

dealer.
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MARKET RESEARCH

Industry

We will be a fashion manufacturing industry. Our accessories are unique and will be sold at

competitive prices. Exquisite accessories are considered part of the niche markets, and we are

very confident that our business will dominate the market. Exquisite Skins' accessories can be

afforded by everyone as mention in our mission statement “You don't have to be rich to afford

our exquisite skins!”

Target Market and Demographics

The company will have two phases; the interest in exquisite skin products locally may not be that

great as currently there is not an outlet for these products. However, the company will be

appealing to the emotion of concerned residents that feels that instead of killing the iguanas and

discarding them. By creatively providing a product from what is considered waste would be an

uplifting way to honour this species of animals. Also, the company will contract with

international company industry to reserve first manufacturing of exotic skin products for the

local market. On the international scene, our ideal customers are fashion designers, persons

interested in top tier unique exquisite items made from animal skins of various species. Also,

others interested in promoting the notion that while alligator and crocodile skin products are

most popular, lizard skin can be equally interesting to wear.

Competition

At current, we have no local competition. However, on the international front, lizard skins make

up less than 40% of desired exotic animal skin products. Furthermore, there is also a circulation

of inferior products; however, these products can be detected based on significantly lower prices
EXQUISITE SKINS – COMPANY BUSINESS PLAN 7

and places of purchase. Also, exquisite will have to ensure that an exclusive arrangement is

secured locally to establish a barrier for entry from others wishing to copy this business idea.

Company Advantages

Exquisite skins will have the advantage of supplying iguana skin of the highest quality and

quantity. Currently, there is a local initiative to catch and discard iguanas as the Island is

overpopulated. There is a local that began on October 29, 2018 and the intention is to capture.

6,000 iguanas daily over a 12 month span at minimum. This will help to secure a steady supply

of lizard skins. Also, a smaller percentage of this catch is distributed elsewhere to sell as meat.

Our company will ensure that the meat gets to the local distributor in order to secure the skins.

Exquisite will also secure exclusive supplier arrangement to establish a barrier to entry. Lizard

skin products are as impressive as any other exotic skin items but the product is not as popular.

Currently, there isn’t a supplier of animal skins products locally. This will be the perfect time to

introduce this product to the market. Not only that, but we will also be assisting the government

with the iguana problem. There is also an incredibly large quota of 400 catch per person for each

month. More than 300 individuals have already taken on this challenge. There is absolutely no

time like the present to be initiating a plan of this magnitude.

Regulations

Although the green iguanas are not indigenous to Grand Cayman, there is a broad representation

of this species present in the Cayman Islands. Currently, there is no law preventing the growing

of iguanas and also none preventing the product from being shipped overseas. Our company will

secure an exclusive arrangement with an international supplier. This will provide a barrier to

entry to anyone or company wishing to copy our business idea

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SERVICE LINE

Pricing Structure

Products Price Range (KYD)

Purses/Wallets (retail) $65.00

Handbags (retail) $550.00

Belts (retail) $75.00

Product Lifecycle

All iguana exotic skin products will be in production and inventory will be accumulated.

Intellectual Property Rights

The company will not be manufacturing any products locally but will work out a deal for a

selected amount of merchandize to assume the name of the country from the first production of

exotic skin items.

Exotic Skins is a trademark name under The Trade Mark Law, 2016 of the Cayman Islands.

Research and development

The company is planning to conduct the following research and development:

• Surveying neighbourhoods and through online

• Suggested feedback on products and prices

• Feedback on the type of products that you would like to see in the market

• Product development at an elite level that will get customer eager to talk about products

to everyone they encounter.

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MARKETING AND SALES

Growth Strategy

To grow the company, Exotic Skins will do the following:

• The company is prepared to offer free samples

• The company will also give products to members of the echelons of society

• Sell our products at discount prices to a high-end clothing store

• Sell products in our store and online portal

• Maintain a high standard of quality and not take short-cuts

• Invest in advertisement

• Constantly increase supplies while it last

• Being consistent with all arrangements made with supplier

• Increase barriers to entry over the full span of product life cycle

Communicate with the Customer

Exotic skins will communicate with our customers by:

• Utilizing social media such as Instagram, Facebook, Twitter

• Word of mouth

• Providing detailed cards with contact information with every purchase

• All items will be labelled with the company name

Slogan

Why should we discard then when they can become a part of heritage?

Character/Spokesman

Our spokesman will be Nadia Martinez

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How to sell

Exotic skins intend to create awareness that there is currently a local effort to discard the green

iguanas. The company will use the strategy of tapping into the emotion of the local population,

that the iguanas are being treated like an outcast. Although they are seen as “discards,” we can

uplift the iguanas by creating a beautiful and creative product to remember them. Also, supplies

sent to international supplier will be going to a region already eager to purchase product.

Therefore the burden will be to sell locally. Furthermore, the supplies will be limited locally and

will only be avail while supplies last.

FINANCIAL ANALYSIS
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Income Statement Years 1-3

Prepared By: Company Name:

Danya Thomas Exquistic Skins

Revenue 2019 2020 2021

Skins 4,073,225 4,684,209 5,386,840
Purses 246,000 282,900 325,335
Handbags 1,001,000 1,151,150 1,323,823
Belts 146,250 168,188 193,416
Product 5 -
Product 6 -
Total Revenue $ 5,466,475 100% $ 6,286,446 100% $ 7,229,413 100%
Cost of Goods Sold 5000 5
Skins 375,990 432,389 497,247
Purses 17,220 19,803 22,773
Handbags 16,380 18,837 21,663
Belts 6,825 7,849 9,026
Product 5 - - -
Product 6 - -
Total Cost of Goods Sold 416,415 8% 478,877 8% 550,709 8%
Morgage Deposits 5,050,060 5,807,569 92% 6,678,704 92%
Payroll - - -
Operating Expenses

Advertising 2,400 2,472 2,546

Car and Truck Expenses 3,950 4,069 4,191
Commissions and Fees - - -
Contract Labor (Not included in payroll) 1,000 1,030 1,061
Insurance (other than health) 5,000 5,150 5,305
Legal and Professional Services - - -
Licenses 63 66 69
Office Expense 2,000 2,060 2,122
Rent or Lease -- Vehicles, Machinery, Equipment S - - -
Rent or Lease -- Other Business Property - - -
Repairs and Maintenance 2,660 2,793 2,933
Supplies 8,300 8,549 8,805
Travel, Meals and Entertainment - - -
Utilities 50,000 51,500 53,045
Miscellaneous - - -
Other Expense 1
Other Expense 2
Total Operating Expenses $ 75,373 1% $ 77,688 1% $ 80,076 1%

Income (Before Other Expenses) $ 4,974,688 91% $ 5,729,881 91% $ 6,598,628 91%
Other Expenses

Amortized Start-up Expenses 176,739 176,739 176,739

Depreciation 28,786 28,786 28,786

Interest

Commercial Loan 35,213 30,679 25,865

Commercial Mortgage - - -

Credit Card Debt - - -

Vehicle Loans - - -

Other Bank Debt - - -

Line of Credit 1,272 1,455 1,455

Bad Debt Expense - - -

Total Other Expenses $ 242,010 4% $ 237,658 4% $ 232,844 3%

Net Income Before Income Tax $ 4,732,677 $ 5,492,223 $ 6,365,784
Income Tax $ - $ - $ -
Net Income/Loss $ 4,732,677 87% $ 5,492,223 87% $ 6,365,784 88%
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Balance Sheet Years 1-3

Prepared By: Company Name:

Danya Thomas Exquistic Skins

ASSETS 2019 2020 2021

Current Assets
Cash 4,882,871 10,502,572 16,991,020
Accounts Receivable - - -
Inventory 30,000 30,000 30,000
Prepaid Expenses 353,477 176,739 -
Other Initial Costs - - -
Total Current Assets $ 5,266,348 $ 10,709,310 $ 17,021,020

Fixed Assets
Real Estate -- Land 90,000 90,000 90,000
Real Estate -- Buildings 250,000 250,000 250,000
Leasehold Improvements 10,000 10,000 10,000
Equipment 30,000 30,000 30,000
Furniture and Fixtures 15,000 15,000 15,000
Vehicles 30,000 30,000 30,000
Other 5,000 5,000 5,000
Total Fixed Assets $ 430,000 $ 430,000 $ 430,000
(Less Accumulated Depreciation) $ 28,786 $ 57,571 $ 86,357
Total Assets $ 5,667,562 $ 11,081,738 $ 17,364,662

LIABILITIES & EQUITY

Liabilities
Accounts Payable - - -
Commercial Loan Balance 546,704 468,657 385,797
Commercial Mortgage Balance - - -
Credit Card Debt Balance - - -
Vehicle Loans Balance - - -
Other Bank Debt Balance - - -
Line of Credit Balance 18,181 18,181 18,181
Total Liabilities $ 564,885 $ 486,839 $ 403,979
Equity
Common Stock 370,000 370,000 370,000
Retained Earnings 4,732,677 10,224,900 16,590,684
Dividends Dispersed/Owners Draw - - -
Total Equity $ 5,102,677 $ 10,594,900 $ 16,960,684
Total Liabilities and Equity $ 5,667,562 $ 11,081,738 $ 17,364,662
EXQUISITE SKINS – COMPANY BUSINESS PLAN 13

SWOT Analysis

Strengths

Our company is unique and will be the only business on the island supplying iguana skins. We

will also be assisting the Island economically and environmentally.

Weakness

The island aims to drastically decrease the population of the iguanas on the island, with the goal

of 6,000 a day. Therefore, we will be at risk of loss of supply. The company will sell its business

model if there is ever shortage or no supply of product.

Opportunities

The product will be unique in the market as there is a lack of this product in the market. We will

take advantage of this opportunity as there will be no competitors in this market.

Threats

As we will be the only business on the island supplying this product, others can copy this idea.

The company will establish an exclusive deal with international supplier over the full extent of

the product life cycle, and this will create a barrier to entry.