Owen Clark

Don't Sew It! Speed-Sew It!

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The #1 Fabric Glue

1. The Business Model

My assets include 45 years of recognition in the market place, national distributors across Canada and 1 in the USA.  A tube, its content, inventory in the east and the west.  A manufacturing facility in central USA.

Currently I outsource is the creation of my videos for Speed-Sew Fabric glue, starting Jan 2014 and i have also used E-Lance to outsource the listing of my product on Amazon and Ebay outside of Canada, other then that I'm a 1 man show except for my accountant who I only need a few times a year.

My customer is someone who hates sewing or doens't know how to sew.  It could be a mom who needs a quick fix on her sons jeans or a worker at work who needs a quick fix on his coveralls.  All they do is pull out a tube of Speed-Sew Fabric Glue and glue the rip or tear together.  If they have a patch that can work better.

I find getting new national distributors challenging or at least it seems like a long sales process.  Getting to be #1 on Google search for Fabric Glue is challenging too. The unique thing about Speed-Sew is that it has been around for almost half a decade.  I did get one new national retailer in Canada in 2013 the goal is to repeat that process every year but across the line in the USA going forward.

2. Freelancing vs. Entrepreneuship

Speed-Sew Fabric Glue is a product people buy use up and buy again.

Seems 2014 is off to a good start by 1st hiring a video company to make 1 professionally made video a month for 12 months and 2nd to hire / outsource the listing of my product on Amazon and EBay.  I need to hire sales people who can go and find new retailers to sell my product.

Realalistically I should be able to outsource absolutly everything I do to run this business.

3. Funding

No I do not need money for this business currently, if sales were to triple in a 6 month period yes i probably would need money to produce the inventory.  I already have a positive cash flow and am profitable. 

If I ever need to borrow money the assets would be inventory.  Early 2015 would be nice because that would mean sales have drastically increased.  If sales increase enough I would also borrow money to buy my own manufacturing set up vs outsourcing production.

I would need $500,000 to set up my own show plus another $100,000 for inventory. Money invested would start producing a return within weeks.

I do not see any reason to sell a company that has a positive cash flow and a steady stream of income.  If I sell then I would have a pile that I have to manage and could lose. If I lose one months of income I know another month is on its way.  If I lose my pile then what?

My Gross Margin is 36.6%

My goal is to double sales for 3 years in a row.  This will get me to 2 million tubes a year.

I believe I can go the traditional funding route via my local business bank if and when i need to.

4. Hiring

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