The Solvino GmbH is a premium mail order company for exclusive wines and delicacies, that offers them on the Internet. The unique selling point is the combination of wine and Specialty food retail. This approach has not been followed to a greater extent by the competition. The prospects are promising.
In 2009, revenues in online trading reached a record high of more than € 21 billion and netted, for the second time, more than 50% of total sales in mail order and online trading. This shows that the field of online trading was resistant in times of economic crisis. Food retailers also performed extremely well in online trading. A distinction has to be made here between products for daily use, so-called fast moving consumer goods (FMCG, products with a high inventory rotation, e.g. milk, cheese, eggs, bread, fruit, etc.) and products for enjoyment, so-called slow-moving consumer goods (SMCG, products with a medium to slow rotation goods). Solvino focuses on products with a medium to slow rotation. However, a clear distinction cannot be made because some product groups at least partially cover both areas.
The business model is based on a team of motivated employees and simple corporate structures with flat hierarchies. The goal is a powerful shipping company for upscale food products.
We want to invest in a modern enterprise resource planning system, a viable online store and an attractive website, to increase further growth. We also want to expand our storage and hire additional employees. For this, we need an external financing of 120,000 €, 45,000 € for the financing of investments, 60,000 € to compensate in the start-up phase and 15,000 € as overdraft for cash-flow fluctuations. We will contribute 60,000 € ourselves.
We expect to make profit at the end of second year (even after subtracting interest).