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Business start-up: 

EN MI SALSA

Arts and Crafts

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    foto BID1.JPG

Production of high quality handicraft products from Central America for which producers receive a good price. Profits are invested in new products and training and organising producers for general development.
Products are sold in western countries through an internet webshop and local representatives in different countries to individuals and shops.

Facts

Year of establishment

2006

Sales (US$)
Two years ago:
Last year:
This year (forecast): 10,000
Year 2 (forecast): 15,000
Year 3 (forecast): 30,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 5,000
Year 2 (forecast): 10,000
Year 3 (forecast): 15,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 60
Year 2 (forecast): 100
Year 3 (forecast): 150

How do you expect this to be financed?

Own Contribution in cash 1,000
Loans (debt) 4,000
Shares in your company that you offer to investors (equity)
Other sources
Total finance needed (US$) 5,000

The Business

What is your product/service?

I sell high quality handmade handicraft from Guatemala (and Nicaragua and Honduras in the future) taking into account fair payment and environmental issues. I have so far two types of products: child/babyroom products and jewellery.

I focus on high quality products. I did research on the fabric and I control the fabrics used. Most products are made at home. I provide materials I buy in local shops and markets to keep control on quality.
I need more investment in training and organisation then in equipment.

Training: I am training 35 women who make embroidery and weaving works. They need professional training to improve and learn new techniques. The jewellery group of 25 women need to learn new techniques and designs. We need a designer to teach and train both groups. And expanding the group.
Personal training and coaching: I need to train a select group of local people in organisational and management skills.
Logistics: I need to find reliable and willing local people to work with and to set up a solid organisation.
The embroidery/weaving products are made of cotton without cancer causing ingredients. They are durable as well and the colours don’t run out. It means good research on and control over the materials used.
Equipment: I would need 3 sowing machines and to rent a place to store materials, a computer with internet service.
Glasses: Lots of women need glasses as they do precise work and the can not see properly. There is a project who sells glasses for a reasonable price I want to work with.
Natural dyes: I want to do research on dyes made of plant material and the possibility of developing home made dyes.

The target areas are quality shops in western countries who are actively searched for by local representatives and individual people who buy through internet. People who are looking for original, quality and/or responsibly produced products. People apreciate the transparancy of the company. It makes them feel good to buy a personal and unique product.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

I will reach my customers through:
- my sales representatives. My goal is having dedicated sales representative in 15 different “western” countries who work on a commission base (starting as a volunteer).
- my website: especially for individuals but also for shops
- actively searching shops in the Netherlands and through my representatives in other countries
- advertisement in magazines and internet

My competitors are the fair trade shops and regular sellers of the same kind of products. I want to find people with rising consciousness. Who want transparency. My strength is that my company (and the people who work with me) is strongly motivated and transparent and based on development of impoverished people, with a personal approach, and a strong believe in that making money is good but without exploiting people. I want to be fresh and modern and social at the same time so that it attracts young people. Through my website people will know the producers through a foto and a lifestory.
I will convince buyers to pay for a handmade, quality and responsible product. Profits will be lower, but when the amount of customers rise the profits will be enough. Part of the profits is reinvested.

What makes your business different/better than your competitors (competitive advantage)?

Because of high quality, handmade, original, a local ánd modern and fresh appearance. “Feeling good” because stimulation of development instead of exploitation. Personal service, transparency, good information through the website, possibilities in involvement: working as a volunteer in Central America or as a sales representative. Tailor made products!

The Entrepreneur & Management

Describe the entrepreneur & management

I started research in 2006 through: house parties for friends and strangers with products to investigate the market and advise. I visited shops with comparable products. I read about fair trade possibilities and development issues. I sold all my products at once. I’m setting up networks, finding reliable and motivated local people to work with me. I set up a steady group of 35 Maya-women from a very impoverished area to make embroidery products. I already found very motivated sales representatives in several countries to help me find buyers.
It's surely hard starting a business in a region without the same working ethics as in the western world, where a promise is just a word and you have to motivate people very hard. People also lack the skills and motivation to organise themselves. That’s exactly why this company is necessary; give people more skills, motivation and hope!

Development

How does your business improve the local living standards (social and environmental)?

When selling I can provide a steady income to 60 women the first year up to 150 women in the third year. I work especially with women who come from impoverished areas where a normal monthly male income cannot cover the family needs. Families are big and most women are illiterate or semi-illiterate. Half of them don’t speak Spanish well because they speak a Maya-language as their first language, which makes them even more vulnerable. Women work for a few extra penny’s in handicraft, and exploited because in need. Lot’s are left by their husband or he's alcoholic, lost their husband to alcohol or accidents, or in the civil war of the eighties. With paying them a good price and teaching them free trainings they can broader their selling market, sustain their family and improve living conditions. Part of the women will be tought organisational/management skills. They will run the cooperative that we'll set up, so they can eventually sell to other foreign buyers as well. With profits other trainings will be set up, including hygiene, improving living qualities, healty diet, literacy programs.
Eventually hundreds of families are helped in an area with little change of development.

After a year or two other products from different areas are included, other cooperatives and responsable companies can sell their products through my website, including handicraft from Honduras and Nicaragua. Information about the environment taken into account will rise consciousness by consumers and prevent pollution.

Needs
Advice - business management, Advice - PR, marketing, Network - buyers, customers