Simply Gifted Business Proposal

Simply Gifted a business proposal

LET’S CELEBRATE

Table of Contents

Cover Image: Anthony Shkraba on Pexels

the Moment you’ve been Waiting for...

Imagine that it’s your best friend’s birthday. You have put hours of thought, research, and consideration into finding something that perfectly captures your relationship with them in a meaningful and fun way that you know they’ll love... and yet... you feel your heart race with anticipation as they open their gift. You start to question your choice and feel the tension rise as you anxiously await their reaction while they tear away that last piece of wrapping paper...

Vlada Karpovich on Pexels

the Business Concept

Simply Gifted is a gifting platform that connects clients with personalized and meaningful gifts for any occasion. This time saving and stress-reducing service takes the guess-work out of gifting by providing clients with a variety of thoughtfully selected and sourced gift suggestions. With our network of small businesses, artists, and artisans, and our AI gifting algorithm, Simply Gifted aims to simplify the art of gifting, support the creative community, and help clients create cherished memories with the people they love.

the Platform

When you enter the Simply Gifted website or launch the Simply Gifted App, you will be prompted to answer a brief questionnaire to get to the heart of your gifting needs. Our AI algorithm then analyzes your responses and pulls products from our network of vendors to suggest unique and thoughtful gifts for your recipient. From there you can either choose which gifts you like the most or browse through our site, curating your search to your liking. If you still feel like you haven’t found the perfect gift, our team of gifting professionals are there to help! Subscribing to Simply Gifted’s services provides access to a personal gifter and other gifting tools like a gift planning calendar to help you with all of your gifting needs throughout the year.

KEY PLATFORM FEATURES:

· Mobile and Web Applications

· Personalized Gifting Suggestions

· Customizeable Search Options

· Optional Paid Services for Added Convienience

the Go-Getter

The Go-Getter is the Gen Z activist who values community and activism. She likes to give back to her community by shopping at local and small businesses. Shes a student, she volunteers on weekends and maintains a part-time job. Her schedule can be pretty full at times so it can be hard for her to research trustworthy retailers to meet her gifting needs. The go-getter is most likely to be a user of Simply Gifted’s free services. She will find value in the diversity of products and makers showcased on the site but may not commit to a subscription service.

the Go-Getter

customer profile

Demographic:

Gen Z

18-24 years old

Female

Values creativity, identity and diversity.

Current Jobs and Goals:

Activist, Student, Working Part-Time

Wants her behaviors to align with her values

Wants to shop with retailers who embody transparency and authenticity

Pains:

Busy schedule, not a lot of time to research vendors

Gain Creators:

Convenience

Variety of Vendors

Customizable lists of vendors and products

Curated suggestions based on user responses to questionnaire.

Expected Service Use:

Non-subscribing user of the site who will find value in the free features such as the gift finding questionnaire and product and business sorting features.

the Boss customer profile

Demographic:

Millennial and Gen X

25- 40 years old

Female

Values a balance between quality and cost.

Current Jobs and Goals:

Busy women in the workforce who always have something on their to-do list.

Wants to find balance between work and personal life

Wants to maintain and nurture personal relationships.

Pains:

Short on spare time

Conscious of spending

Needs help with ideas

Gain Creators:

Saves time

Works within budget

Personalized solutions

Year long gifting support

Expected Service Use:

Expected to purchase subscription services.

the Boss

The Boss is the Millennial or Gen X working woman with a full schedule. She’s an on-the-go hustler who values her time and always seems to have it all together. But sometimes her schedule gets in the way and while she can usually find unique and meaningful gifts on her own, she fears she might let her loved ones down if she can’t find that perfect something. She’d love some help brainstorming ideas and planning some gifts in advance so that she can better manage her schedule, impress her loved ones and maybe even find some free time for herself. The Boss is most likely to be a subscriber of Simply Gifted’s Services. She will find value in the convenience of a personal gifter and other gifting tools that help her find the perfect gifts on time and within budget.

Alex Baljan on Unsplash

Rough Cut customer archetype

Demographic:

· Female

· 20-40 years old

· Likely to be in a relationship or married

· Likely to not have children

· Middle to Middle Upper-class Income

($50,000-$100,000)

· Likely to be living in or near a metropolitan area.

· Budget conscious, thoughtful, independent.

Joel Muniz on Unsplash

Preliminary Market Size

35.6 million people 2

Calculation considered 52% of e-comm shoppers are women and 26% are in the 25-34 age range.

Target Market

11.7 million people

3

Calculation considered 52% of e-comm shoppers are women and 26% are in the 25-34 age range, and 33% reported medium to high incomes.

1. Statista. “Ecommerce in the United States .” Statista. 2020, https://0-www-statista-com.library.scad.edu/study/28028/e-commerce-in-the-united-states-statista-dossier/. 2. Statista. “Ecommerce Report 2020 .” Statista, Nov. 2020, https://0-www-statista-com.library.scad.edu/study/42335/ecommerce-report/ 3. Ibid

the Entrepreneur

The Entrepreneur is the artist or small business owner who is looking to grow their consumer base and be a part of an inclusive and supportive community. But they don’t want their business to be lost in a sea of other businesses with similar values and products. They value authentic and meaningful connections and hope to establish relationships with clients and vendors. Simply Gifted offers an equal opportunity platform that recommends businesses and their products based on the best fit for the client not on seniority. The entrepreneur will also find value in a variety of communication tools and multiple networking opportunities.

Bruce Mars on Unsplash

the Entrepreneur partner profile

Current Jobs and Goals:

Manage and scale a small business

Get, Keep and Grow consumer base

Increase website traffic

Pains:

Wants to develop and expand her customer base on a budget

Wants to surround herself with a supportive community

Gain Creators: Saves Money

Reduces Risk

Creates Community

Creates a sense of belonging

Reinforces sense of purpose

Platform Offerings:

Opportunity to reach a nationwide audience

Opportunity to identify customer wants needs and trends

Diverse and supportive community

Opportunity to network with industry mentors or advisors.

Interviews with our potential customers revealed that the search for the perfect gift usually starts with a web search conducted on a phone or computer. Our research also found that customers become aware of new products primarily through social media, word of mouth and web searches. For these reasons, we intend to raise brand awareness though social media platforms such as Instagram and Facebook. These advertisements will then drive potential customers to our website, where they can learn more about our paid services and have the option to try our free services. Customers will also have the option to download our app to their mobile devices so that they can access conveniently access Simply Gifted’s services on the go or install a web extension so that they can run the Simply Gifted algorithm on external sites.

Ben Kolde on Unsplash

Cost and Budgeting

Community and collaboration are at the heart of Simply Gifted’s services so it is no surprise that we will need a variety of partners to be able to fully develop our vision. As we build our MVP we intend to utilize freelance sites, like Upwork to hire an algorithm developer, a web extension developer and a website designer so that we may build and test our MVP as quickly and cost effectively as possible. After the first year, we intend to start hiring permanent members of the Simply gifted team to assist with marketing, customer service and creative asset development. This strategy will help us to keep costs considerably low for year one, allowing us to turn a profit within the first year.

Fixed Costs (Annual):

Domain Name Ownership: $54.94 for 3 years and Domain Protection Plan with Go Daddy

Platform Hosting Fees: Wordpress EComm site: $45 mo = $540 yr

Post Affiliate Pro: $97 mo = $1,164 yr

Fixed Costs (One Time):

Algorithm Strategy and Development: $200 Upwork Freelancer

Web and App Development and Design: $6,000 Upwork Freelancer

Browser Extension Development:$550 Upwork Freelancer ($55 an hr approx 10 hours)

Variable Costs:

Projected Cost Totals:

Advertising: $23,652- $47,699.88 per year

Employees (Annual Salaries):

Content Creator: $60,000 yr

Social Media Strategist: $47,000 - $67,000 yr

Customer Service Representative: $37,000 yr

Personal Shopper (Concierge): $64,000 yr

Network Associates: cost bundled into advertising and acquisition considerations.

Social Media Influencers: cost bundled into advertising and affiliate cost considerations.

Year One: $32,124.31 (No permanent hires, Advertising cost $23,652)

Year Two: $242,722.31 (Permanent staff hired (one each), Advertising cost increased to $30,000)

Year Three: $343,722.31 (One Additional Customer Service and Personal Shopper hire, Advertising cost increased to $47,699.88)

Total Cost of 3 years: $618,568.92

Pro Forma Income Statement

Revenue Streams and Models

Revenue Streams Pricing Model

- Paid advertisers and sponsors.

- Commission on network partner sales.

- Membership Fees for network partners.

- Various subscription options for interested paying clients.

Clients: Freemium Model

Certain features on the site and the browser extension are available to use for free.

Clients: Subscription Models

Clients have the option to pay to access additional features at various commitment levels.

Partners: Subscription Model and Commission Structure.

Members pay a membership fee to be a part of the network.

A commission of 20% is collected per sale from the site.

Obtain 1,500 infrequent freemium users, 500 subscription users and 150 network partners.

1,500 freemium users: $270,000

500 subscribers: $257,940

150 network partners: $90,000

Total Predicted Gross Customer Revenue: $617,940

Total Predicted Costs: $398,422.19

Total Net Revenue: $219,517.81

Three Year Projections

Obtain 2,000 infrequent freemium users, 650 subscription users and 200 network partners.

2,000 freemium users: $360,000

750 subscribers: $335,322

200 network partners: $120,000

Total Predicted Gross Customer Revenue: $815,322

Total Predicted Costs: $398,422.19

Total Net Revenue: $416,899.81

Best

Obtain 2,500 infrequent freemium users, 800 subscription users and 250 network partners.

2,500 freemium users: $450,000

800 subscribers: $412,704

250 network partners: $150,000

Total Predicted Gross Customer Revenue: $1,012,704

Total Predicted Costs: $398,422.19

Total Net Revenue: $614,281.81

Customer Lifetime Value per segment

Scenario One:

Non-subscriber, Infrequent Loyal User (the Go-Getter)

Customer uses the website for half of their gifting needs (6 months) and round up to $150 per transaction.

Simply Gifted is envisioned to run off of a commission with each of it’s network partners at 20%.

$150 x 6 x 1 x 0.2 = $180 per year

Scenario Two:

Subscriber, Frequent User (the Boss)

Customer uses the website for all of their gifting needs (at $150 per transaction) and subscribes to the subscription services for $12.99 a month

($150 x 12 x 1 x 0.2) + 155.88 = $515.88 per year

Scenario Three:

Network Subscriber (the Entrepreneur)

Monthly cost of $50 a month for network benefits

50x12x1= $600 per year

Break-Even Analysis

Variable Cost per Month: $23,652/12= $1916.67

Expected Sales per Month: (500+100+50)/12= 54 sales a month

42 Infrequent users

8 subscribers

4 partners

Variable Cost per Sale: $1916.67/54= $35.49

Fixed Monthly Cost: $8,472.31/12=$ 706.03

Combined Revenue per Sale: $42.99+$50+$30= $122.99

Variable Cost per Month: $35.49

Combined Contribution per Sale: $87.50

Fixed Monthly Cost: $706.03

Total Number of Sales per Month: 54

Combined Contribution per Month: $4,725

Contribution per Sale: $706.03/$87.50=8 of each kind of sale; 24 total sales

Current Solutions

3 Main Solutions

· Independent Ideation, Research and Purchase

· Pre-curated gifting options: Boxed gifting, subscription gifting, basket gifts, etc.

· Concierge Shopping

Shortcomings of These Solutions

· Time consuming

· Limited options in customization

· Likely to be costly

Vlada Karpovich on Pexels

the Simply Gifted difference

By focusing on community and fostering nurturing relationships with our network partners, Simply Gifted brings unparalleled value to our customers by offering them unique, quality items that they might not have been able to find on their own. Our Ai algorithm and personalized services add additional value by saving customers time and money; helping them avoid the hassle of endless brainstorming and scrolling through websites and ensuring that they will find the perfect gift every time.

Let’s put the heart back into gifting. Let’s give people even more reasons to celebrate. Gifting is hard, we make it simple.