BUSINESS 101: COMMON SENSEJASON’S STORY: THE BIRTH AND GROWTH OF VIVERE

LTD.

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!

SATURDAY OCTOBER 5, 2002

http://www.flickr.com/photos/toekneestuck/4661834402/in/photostream/

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

2003

• CFO

• PLAN HAMMOCK VILLAGE LAUNCH FOR 2004

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

2005• SALES: $30,558 (50% GROWTH)

• PROFIT: -$881

DECEMBER 29, 2005

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

1

2

3

4

5

6

7

8

9

10

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

EUROPE

• WHAT WOULD BE YOUR STRATEGY TO LAUNCH VIVERE LTD. INTO YOUR HOME COUNTRY?

• CAN YOU IDENTIFY DIFFERENCES BETWEEN WESTERN EUROPE AND NORTH AMERICA?