Letter To Rich Relitive
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11/23/2007
5267 N. Augusta Street
Fresno, Ca. 93710
Bruce Mosby
7265 w. First Street
San Jose, Ca. 60601
Dear Uncle Bruce,
Thank you for the opportunity to share with you a little more of our company ideas, goals and strategies. In my first letter, yes I did not request a certain amount. I was saving that for when you actually showed some interest. My friends and I are requesting $45,000 for start up costs and some material to build lots of tables with, storage units to house paper, boxes, bows, and some for advertising expenses. But heres a better breakdown for you, we are going to take about $15,000 just for start up costs (business license, custom sign for outside the building, custom letter head and stationary made-up). We will use about $15,000 just for our first 6 months of rent at $1000 a month and about $9,000 for paint, carpet, interior design. Now the last $15,000 we plan on using about $6,000 for labor for the first six months. This is labor other than the three partners labor. The remaining $9,000 would be used for utilities, specialty items and just plain things we forget.
Now we have thought about this long and hard, this is where we will share with you some of our goals and the strategies for reaching those goals.
Short-term goals
To be able to expand our existing supplies to include more then three times as many materials that we plan to utilize right now. We are looking at several vendors that we are positive will give us the opportunity to broaden the materials that we offer to our clients.
All partners agree we should have a recycling program in place within the first month. Our goal here is to not only recycle for our business but to get every business around us recycling as well. Our goal is, to receive the Mayors award for recycling. That would give us some community exposure and label us as an environmentally friendly company which we plan to be.
Get on the web and expand our exposure to our customers not only in our city, our state, our country and around the world. We would do this by signing up with “Windows live” for small businesses. For $40 a month, with the first three months free. We could have a professional looking website that could showcase our products to our customers. Plus being able to offer our customers interesting idea suggestions on different gift baskets ideas. Not to mention being able to order online with a credit card. Windows live not only offers the website that comes with a domain name and e-mail addresses for the company. Windows live also offers online tools to help your website like, site reports on what pages were visited most. Along with Windows live there is “live Expo” free online classifieds to help further advertiser business.
Coming up with advertising specials not only for the basic holidays but the four seasons as well. Offer return customers, a percentage discount, approximately 2% for every return visit and up to a 20% discount. Do a little more market research to figure out exactly what certain corporations would be interested in purchasing in the form of a gift basket.
Intermediate goals
Buy one or two delivery vehicles to expand our service area. This would enable us to reach more customers for delivery farther north and south of Fresno. Enabling us in reaching more corporations increasing our bottom line.
Pay you off Uncle Bruce. Even though this is our second intermediate goal, this is our most important goal of all. We were looking at giving you a 10% on top of the $45,000. We would like to take roughly a year and a half to payback (36 months). Which makes our payments to you for 36 months = $1452.02 a month.
When I set our business up as a corporation within the first two years. This can be done relatively quickly over the Internet or we can have our lawyer check into it and see how costly it would be for him to do it. This would give us several advantages as far as liability,