Elevator Pitch for K.A.N.Y.C. Enterprises
K.A.N.Y.C. Enterprises, formally Caterina Fashions & Beauty Inc., a New York C-Corp, will be the number one wholesaler/retailer of Organic, Natural, and Ayurvedic Beauty and Personal Care products. We have already identified drop ship manufacturers and lines we can carry in India, whose products are Ayurvedic, guaranteed pure and natural. The other firm is here in the U.S. with a line of fragrances, bath and body, also guaranteed to contain no harmful chemicals. One of the goals is to have our own line produced, 100% Organic, Natural and Ayurvedic from hundreds of recipes Ms. Appello has. What is initially necessary is the website, space, samples, the launch event, and sustained P.R./Marketing, particularly online. Our revenue will come from e-commerce, and tradeshow sales.
In regards to the market, it is looking positive. According to Cosmetics-Design and others, In the US “New natural and organic cosmetic lines are flooding the cosmetics and toiletries market at an unprecedented rate. And the launch of Origins Organics signals the intention of the large multinationals to get a slice of the action. Imogen Matthews, consultant to in-cosmetics, examines the reasons behind the growth in naturals and organics and highlights some recent innovative product lines.” “Demand for natural cosmetics is wider, with some consumers buying these products because of allergies, skin conditions and sensitivities.” “In Europe, with consumers continuing to opt for cosmetic products that are deemed to be natural and therefore safer, sales of natural & organic cosmetics are projected to surpass the €1 billion mark for the first time this year, according to market research provider Organic Monitor.” Other sources have determined that the international market for natural and organic cosmetics has skyrocketed over the past few years and will further grow. Global sales in natural and organic cosmetics passed the €5bn mark in 2007. US sales were estimated around €3.5bn whereas European sales approximated €1.1bn in 2007.
The team currently consists of Ms. Katherine Appello, the firm’s founder and President, who consults regularly with other Entrepreneurs on Start Up Nation, and watches shows such as The Big Idea. Ms. Appello has taught English at the college level for nearly 15 years and is multilingual, with fluency in Spanish and Italian. She will hire a President of Operations, a P.R./Marketing firm, and a Virtual Assistant as soon as the funds are available. Though she has put in several thousand for samples, equipment, voicemail and other expenses, she has very little capital to work with and thus has had difficulty launching and sustaining the firm, as she would like.
It is anticipated that for a top quality website, maintenance, launch event, samples, office, and salary the cost for the first two years will roughly be $1,100,000. It is planned that with aggressive campaign, including massive direct mail, the firm will see sales within six months of launch and positive cash flow in the second year.
The terms proposed are as follows. Repayment, principal only at 10% begins the second year and each year for 7 years. In the seventh year the principal is due. Ms. Appello is open to taking the firm public at the right time and selling it in 10 or 12 years at a substantial profit.