ENTREPRENEURSHIP (STARTING A BUSINESS)

Recycled Based - Rebottld

Shippensburg University (PA)
Blake Hargrove
1871 Old Main Drive
Shippensburg, PA 17257
Evan Landauer, Zach Dolan, and Brady Udovich
5 Bard Drive
Shippensburg, PA 17257
April 24, 2014

!
!
!
!

I. Executive Summary
Rebottld is a recycled based company that focuses on repurposing glass bottles into
practical products that can be used by consumers every day. Rebottld is a total bottom line
business, meaning that we are financially sustainable, environmentally sustainable and socially
responsible. Rebottld strives to create the highest quality products out of post-consumer
materials. There is a rapidly growing trend towards green business Rebottld will be on the front
line of that movement.
Rebottld will offer two initial product lines that will serve as the foundation of the
company. We will launch our self-watering planters, a highly efficient plant self-watering system
that is made from a post-consumer wine bottle. We will also launch our candle line, which are
made from 100% natural soy wax and utilizes repurposed glass as the container. With these two
product lines we will sustain consistent growth over three years while developing new product
lines.
The products that Rebottld will produce offer high margins per unit and will require very
little overhead to produce. This will create a high return on investment. Rebottld will have the
production capabilities to generate a profit within the first year. Currently, with our production
capabilities we are unable to meet our pre-orders. For this reason we are seeking financial capital
in order to increase our production capabilities.

!
!
2

Mission Statement
Rebottld is committed to being good stewards of the environment and community. We strive to
make the highest quality products out of post-consumer materials in order to enhance the lives of
our customers, while preserving the environment that enhances our lives every single day. In a
world that continues to produce new products and new waste every day, we believe that society
has a bounty of resources at its disposal that are over-looked all the time. At Rebottld we
appreciate those resources and will continue to utilize them to their full potential. We encourage
everybody to reduce, reuse, Rebottld.

II. Description and Analysis of the Business Situation

The personal experience we have as a team contributes to our company in a vast amount
of ways. Our Glass cutting, sanding, and polishing have been perfected through practice and
error. Rebottld has been a hobby and a leisure activity before we started to take it somberly. The
knowledge we possess on the process of our assembly and distribution are unmatched to the
competition. We as a team can train and learn from one another while our expertise continues to
flourish.
The location of our business will mainly be in the Lehigh Valley of Pennsylvania. One of
the main reasons we picked this area is due to the fact that two out of three of the owners live in
that locality. We will distribute our products throughout the Valley and also touching down into
Westminister, Maryland. Our other partner resides in that region which is an immense factor in
our distribution channel. The Lehigh Valleys growth is the fastest in the state as well as the third
most populous region in Pennsylvania. This region is ranked in the top 79th percentile for

population growth between 2010-2012. In this present time there are no direct competitors in
this area. The major department stores sell plastic watering planters
Target Market- Here at Rebottld we strive to reach the highest level of satisfaction to all
our customers. The clientele we aim to satisfy are primarily women and men from the ages of
30-50 years old. We arranged that data from numerous points of view. We understand the interest
for a greener earth and society unequivocally contribute to the greener movement more and more
every day.
Competitive Advantage- Our Company sets new standards for indoor planter systems.
The current generation is on an environmental kick, and many companies are still struggling to
realize the positive impacts this movement can bring. The quality of our merchandise are pristine
in the sense that our customers will not only buy the best product on the market, but also have a
sentimental connection with our company and products they purchase. The competition locally is
nonexistent, which is why we need to jump on the opportunity and make an impact in the
market. The availability of our products are at ease and can be purchased 24 hours a day, 365
days a year.
Proposed organization- Rebottld is owned by three inspiring entrepreneurs who share the
company equally. Each partner has a percentage of thirty-three percent. The company is a
partnership that is run by all three personnel evenly. Eventually down the road we wish to hire
employees who would manufacture and distribute our products to the highest potential. As
entrepreneurs we understand all realms of the business, and we need to incorporate our strengths
while helping each others weaknesses to succeed in the business world. For the first year or so,

the three owners would most likely handle all aspects of the business until employees will be
needed.

III. Proposed Marketing Plan

Product Description
Rebottld is committed to innovating and expanding our product line as we grow in the
future. We believe that creativity is the core of growing a successful business and we strive to
bring unique and quality products to our customers. Our initial product line consists of practical
home dcor items. We sell an extremely efficient self-watering planter that makes growing many
plants very simple and care-free. We also offer very elegant candles, produced from 100% all
natural soy wax; these candles can be scented to nearly anything in the world in order to adhere
to customers tastes and preferences. We believe that with these two initial products, we are able
to achieve a degree of product diversity, while still remaining within our niche market.
Our Self-Watering planters are the perfect solution to anybody who loves to grow plants
but just cant seem to keep them alive. These self-watering planters are made from a postconsumer wine bottle that is then cut and processed into two main components: The bulb and the
base. We then install a specialized wicking and draining system into the planter to complete the
product. All that a consumer must do is fill the bulb with potting soil, plant either an existing
plant into the soil or plant seeds in the soil. Then you fill the base of the planter with water, and
thats all it takes. The wicking system will ensure that the plant stays perfectly watered until the
water in the base has been depleted, then just simply fill the base with water again. Typically a
consumer will only need to refill the water once every other week, however this may vary based

on the complexity of the root system of the plant that you are growing and the stage of growth
that it is in. We will offer two standard size planters, we will offer planters made from 1.5 liter
wine bottles as well as 750 mL bottles. Our self-watering planter is a perfect way to grow your
favorite herbs and spices in your kitchen window to use in your cooking. Our self-watering
planters are a simple and elegant way to assist anybody in growing their favorite spices; they
help to save plants, bottles and the environment by reducing waste.
The candle market in the United States is an enormous opportunity. We believe that we
can offer a unique product to this large and saturated market. In the candle market it is very
difficult to establish product differentiation other than scents, quality and price. At Rebottld we
have an opportunity to enter into this market and differentiate ourselves from the competition.
We will be able to produce candles out of post-consumer wine, beer, and liquor bottles. We will
establish partnerships with local breweries, wineries and distilleries. We will take their bottles,
process them and turn them into high quality candles. We will scent and dye our candles to
match the original beverage that was contained in that particular bottle. For instance, if we cut a
beer bottle that was a chocolate stout, then we would scent our candles to match the chocolate
scent. This creates a more complete product and allows a customer to gain an understanding of
what the candle might smell like just from looking at the label of the bottle. Candles will be
offered in two standard sizes: 12oz. beer bottle containers, and 750 mL wine and liquor bottle
containers.

!
6

Pricing Policy
Our products will be priced in line average market prices. However, our margin of profit per unit
7! is very large so we will have flexibility within our pricing. We will offer our products both at
retail value and wholesale value. While conducting research we have found that retailers want
the purchase the products wholesale at a price that they can be marked up 100% to retail value.
Below, there is a chart depicting product prices and their associated variable costs involved with
producing them.

Product
1.5L Self-Watering Planter

Retail Price

Whole Sale Price

Variable Costs
Per Unit

$10.00

$5.00

$0.75

$8.00

$4.00

$0.70

750mL Candle

$18.00

$9.00

$3.50

12oz. Candle

$12.00

$6.00

$2.00

750 mL Self-Watering Planter

!
Promotional Plan
Rebottld will implement a variety of promotional strategies in order to create awareness
within our target market in order to grow the demand for our products. Our key promotion
strategies include public demonstrations and utilizing social media outlets in order to build a
strong connection with our customers.
Public Demonstrations. Public Demonstrations will be conducted to give customers an
awareness and a better understanding of our products. There are many expos and conventions

that attract hundreds of thousands of consumers that fall into our target market. These events
include lawn and garden shows, wine tastings, beer festivals, etc. At these events we will

Rebottld

24-Apr-14

Required Start-Up Funds

Required Start-Up FundsAmount

Totals
Depreciation

Notes

Fixed Assets
Real Estate

-00

Buildings

-00

20.00

years

Leasehold Improvements
-00

7.00

years

Equipment

4,250

8.00

years

Furniture and Fixtures -00

7.00

years

Vehicles

-00

7.00

years

Other Fixed Assets

250

2.00

years

4,500

Total Fixed Assets

Operating Capital
Pre-Opening Salaries and
-00Wages
Prepaid Insurance Premiums
-00
Beginning Inventory

-00

Legal and Accounting Fees

-00
Rent Deposits

-00

Utility Deposits

-00

Supplies

1,550

Advertising and Promotions

-00
Licenses

70

Other Initial Start-Up Costs

-00
Working Capital (Cash1,500
On Hand)
3,120

Total Operating Capital

$

Total Required Funds

Sources of Funding

Amount

7,620

Totals Loan Term

Rate in Months
Monthly Payments

Owner's Cash Injection39.37%

3,000

Outside Investors

3,000

39.37%

Additional Loans or Debt

Commercial Loan

21.26%

1,620

9.00%

84.00

$26.06

Commercial Mortgage0.00%

-00

9.00%

240.00

$0.00

Total Sources of Funding

100.00%

7,620

$26.06

Rebottld
Projected Cash Flow Statement - Year One
May
Beginning Cash Balance1,500

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Totals

6,154

10,808 15,462 20,116 23,920 26,024 27,278 28,531 29,360 31,039 33,568

8,000

8,000

8,000

8,000

7,000

5,000

4,000

4,000

3,500

4,500

5,500

6,500

72,000

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

8,000

8,000

8,000

8,000

7,000

5,000

4,000

4,000

3,500

4,500

5,500

6,500

72,000

New Capital Purchases

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

Inventory Purchases -00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

1,850

1,850

1,850

1,850

1,700

1,400

1,250

1,250

1,175

1,325

1,475

1,625

18,600

Salaries and Wages -00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

Fixed Business Expenses

1,470 1,470

1,470

1,470

1,470

1,470

1,470

1,470

1,470

1,470

1,470

1,470

17,640

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

Cash Inflows
Income from Sales
Accounts Receivable
Total Cash Inflows
Cash Outflows
Investing Activities

Cost of Sales
Operating Activities

Taxes

-00

-00

Financing Activities
Loan Payments

-00
26

26

26

26

26

26

26

26

26

26

26

26

313

Line of Credit Interest-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

Line of Credit Repayments

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

Dividends Paid

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

Total Cash Outflows

3,346

3,346

3,346

3,346

3,196

2,896

2,746

2,746

2,671

2,821

2,971

3,121

36,553

Cash Flow

4,654

4,654

4,654

4,654

3,804

2,104

1,254

1,254

829

1,679

2,529

3,379

35,447

Operating Cash Balance6,154

Line of Credit Drawdowns-00
Ending Cash Balance
Line of Credit Balance

6,154
-00

10,808 15,462 20,116 23,920 26,024 27,278 28,531 29,360 31,039 33,568 36,947
-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

10,808 15,462 20,116 23,920 26,024 27,278 28,531 29,360 31,039 33,568 36,947
-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

-00

introduce our unique products to our consumer base, this will help us to establish our brand and
promote our products.
Social Media Outlets. In this day in age social media has become an extremely powerful
marketing tool. Thats all that it is, a tool, we must be able to master the art creating strong social
media campaigns in order for this to be a successful method of promoting our business. We will
use our vast social media following not only to promote our products but to connect with our

-00

customers. We believe that building strong relationships with customers is a key element in
building a loyal customer base. We will do this by offering special offers to our followers. If we
see that a follower posts a lot about cooking, we will comment on their post to offer them a free
self-watering planter so that they can use their favorite herbs and spices in their cooking. It is
small gestures like this that will help us build long lasting relationships with our customers. This
tactic will also help our brand spread through word of mouth because simple acts like that will be
talked about amongst their friends and family.
Distribution Strategy
Rebottld will primarily sell their products through third-party retailers in order to reach
the customers. We will primarily focus on business-to-business transactions in the form of
wholesale accounts. Our business will be based out of Allentown, PA and we will focus on
supplying to retailers within a 100 mile radius of our headquarters. The retailers that will be used
in order to reach our consumers include: Flower shops, boutiques, craft-stores, wineries and
breweries.

IV. Proposed Financing Plan

Financials
Rebottld as a start up has a relatively low start up cost, making it attractive to potential
investors. Unlike most start-ups we are projected to pull a profit in year one. To meet our
production goals, our production is able to stay in-expensive, as we don't need a building and
other major plant assets that most start-ups would incur. As well as our low start up costs, our
margins per product are also relatively high at 61.11% per product.

10

!
!
!
!
!
!
!
!
!
!
!
!
!
!
!

11