CASE CREATIONS COMM 447 Juanita Wolfe APRIL 9, 2015 Table of Contents EXECUTIVE SUMMARY .................................................................................................................................. 4 INTRODUCTION ............................................................................................................................................. 5 INDUSTRY .................................................................................................................................................. 5 MISSION STATEMENT ............................................................................................................................... 6 GOALS AND OBJECTIVES ........................................................................................................................... 6 OPERATIONS PLAN ........................................................................................................................................ 6 LOCATION.................................................................................................................................................. 6 SITE PLAN .................................................................................................................................................. 7 FLOOR PLAN .............................................................................................................................................. 7 HOURS OF OPERATION ............................................................................................................................. 9 DAILY OPERATIONS ................................................................................................................................... 9 SUPPLY .................................................................................................................................................... 10 SERVICES ................................................................................................................................................. 10 CAPITAL BUDGET..................................................................................................................................... 10 WORKING CAPITAL.................................................................................................................................. 11 PROFIT MARGIN ...................................................................................................................................... 11 OPERATING EXPENSES ............................................................................................................................ 11 PRODUCTION PROCESS ........................................................................................................................... 13 HUMAN RESOURCES PLAN ......................................................................................................................... 14 ORGANIZATIONAL STRUCTURE ............................................................................................................... 14 JOB DESCRIPTION .................................................................................................................................... 15 EMPLOYEE EXPENSES .............................................................................................................................. 16 MARKETING PLAN ....................................................................................................................................... 16 PRODUCT ................................................................................................................................................ 17 PLACE ...................................................................................................................................................... 18 PRICING ................................................................................................................................................... 18 PROMOTION ........................................................................................................................................... 19 SEGMENTATION, TARGETING AND POSITIONING .................................................................................. 20 POSITIONING STATEMENT ...................................................................................................................... 21 COMPETITION ......................................................................................................................................... 21 POSITIONING MAP .................................................................................................................................. 22 MARKETING BUDGET .............................................................................................................................. 22 REVENUE PROJECTIONS .......................................................................................................................... 23 FINANCIAL PLAN.......................................................................................................................................... 23 FINANCIAL ANALYSIS ............................................................................................................................... 24 BREAKEVEN ANALYSIS............................................................................................................................. 25 SENSITIVITY ANALYSIS ............................................................................................................................. 26 OWNERS COMPENSATION ...................................................................................................................... 26 APPENDIX A: FINANCIAL MODEL ............................................................................................................... 29 Table of Figures & Tables Figure 1 – The Centre Mall Floor Plan........................................................................................................... 7 Figure 2 – Case Creations Floor Plan............................................................................................................. 8 Figure 3 – Cell Phone Kiosk Example ............................................................................................................ 8 Figure 4 – Product Process.......................................................................................................................... 13 Figure 5 – Organizational Chart .................................................................................................................. 14 Figure 6 – Product Samples......................................................................................................................... 17 Figure 7 – Location…………………………………………………………………………………………………………………………………18 Figure 8 – Price Samples………………………………………………………………………………………………………………………..19 Figure 9 – Advertising Tools ........................................................................................................................ 20 Figure 10 – Target Markets……………………………………………………………………………………………………………………21 Figure 11 – Positioning Map ....................................................................................................................... 22 Figure 12 – Break Even Analysis……………………………………………………………………………………………………. ………25 Table 1 – Hours of Operation ........................................................................................................................ 9 Table 2 – Capital Budget………………………………………………………………………………………………………………………..10 Table 3 – Working Capital ........................................................................................................................... 11 Table 4 – Profit Margin ............................................................................................................................... 11 Table 5 – Operating Expenses ..................................................................................................................... 12 Table 6 – Hours of Work ............................................................................................................................. 16 Table 7 – Salary and Wage Expense............................................................................................................ 16 Table 8 – Marketing Budget ........................................................................................................................ 22 Table 9 – Revenue Projections .................................................................................................................... 23 Table 10 – Financing Budget ....................................................................................................................... 24 Table 11 – Payback...................................................................................................................................... 24 Table 12 – Sensitivity Analysis .................................................................................................................... 26 Table 13 – Owner’s Compensations ........................................................................................................... 26 EXECUTIVE SUMMARY The smartphone and tablet industry is vastly growing and in abundant rates from year to year. Along with this, the smartphone and tablet accessory industry is steadily growing from year to year. The smartphone accessory industry sees very generous margins from year to year. As competition continues to expand, the industry is continuously finding ways to stay successful. Case Creations will be the first of its kind in Saskatoon and surrounding areas. Case Creations intends to set the bar in quality products and excellent customer service. Case Creations will enable customers to express themselves freely through a device that they often use and can’t live without, their smartphone and/or tablet. Case Creations is conveniently located in The Centre Mall, a destination shopping centre with a wide variety of services and amenities to suit various needs. The Centre Mall is located on the busy street of 8th Street in Saskatoon and the vehicle traffic alone accounts for 70,000 vehicles per day. The mall itself is very busy and offers easy access to free parking underground and in the parking lot. The kiosk location is near the food court, which will see a lot of foot traffic and is in a great location. The kiosk location will be a great attraction for the target markets Case Creations is seeking. Besides being located near the food court, it will be located by other important shops such as Shoppers Drug Mart, Chatters Hair Salon and the trendy store Ardene’s. Case Creations has the goal of being the first of its kind in the area, but also by providing its customers with an experience that will keep them coming back or referring Case Creations to their friends and family. Case Creations will offer outstanding customer service and stand by its product. Should issues arise, Case Creations will do its best to make it right, if that means discounts or replacements. $20,000 of Case Creations equity will be invested by the Manger/Owner of Case Creations, with the other $26,500 in bank loans. From the completed financial model, it appears that Case Creations will have a slow start, but in saying that will begin to pay out dividends in its third year of operations. Case Creations is a small business and would require a large input from the Manager/Owner, with limited part time help. The sensitivity analysis shows that Case Creations is very sensitive to changes in customers per day. The base case is twelve customers per day at a $25.00 purchase per visit rate. It is important that Case Creations meet that twelve customers per day as a change in negative direction makes quit the difference in revenues. It should be noted that Case Creations would be quite a risk for the person who is not committed to making it work. Such commitment is not reflected in the Manager/Owner’s salary as it is only $40,000 per year. Perhaps, with a larger marketing budget and resources, such as radio advertising, Case Creations would be able to flourish in its environment. INTRODUCTION Case Creations is a company that allows consumers to purchase custom smartphone and tablet cases that will protect their devices while making a personal statement. Many consumers are purchasing smartphones and tablets at accelerating rates, and in many cases consumers prefer using their smartphone or tablet over a computer. The fact that smartphones and tablets are expensive devices, consumers are spending money to protect those devices. It is true that consumers will pay economical prices to high prices to keep their devices protected. Allowing the consumer to add their own flair of uniqueness and identity to the case, adds personal value to the case. Many consumers will purchase more than one case and change them as desired, as they would change other accessories such as purses or shoes. Case Creations allows the consumers to personalize their cases at a reasonable cost, while increasing its personal value. INDUSTRY The smartphone case industry has been steadily growing over the years, consumers continue to spend to protect their devices. Smartphone designs are continually changing from year to year and becoming thinner and more fragile; therefore protection is a necessity. In Canada, it is estimated that cell phone users will raise 900% from 2013 to 2018 (Choma, 2013). Also, in 2013 wireless revenues generated were $20.2 Billion in 2013 (Choma, 2013). It is estimated that by 2017, the smartphone case industry will reach $38 Billion (Sundar, 2013). Currently, the smartphone case industry is on the rise with generous margins, but as with every business its competition is also on the rise. With competition on the rise in the industry, Case Creations offers a way to differentiate itself from that competition. Consumers can browse the competition and they will find that they will come across the same cases over and over again. Through personalization, Case Creations increases the personal value of their devices and consumers are willing to pay for that unique experience. MISSION STATEMENT “Case Creations strives to become the smartphone/tablet outlet that consumers will prefer. Case Creations offers consumers the freedom to express their unique and personal flair through one of a kind cases that they create.” GOALS AND OBJECTIVES To become the smartphone/tablet outlet of choice To gain a respectable and trustworthy reputation in the industry To increase market share within Saskatoon and community To offer quality services at affordable prices To offer freedom of expression to consumers wishing to be unique To offer outstanding customer service that will attract and retain consumers To gain profits after year one and into the future OPERATIONS PLAN Case Creations will be a sole proprietorship that will have one owner/manager. Case Creations will build on the fact that it is the only kind of its type of establishment within Saskatoon and surrounding areas. Case Creations will offer quality services at affordable prices. Case Creations will create an environment where consumers will feel welcome, comfortable and willing to return in the future, or refer our products to their friends. Case Creations will be located where there is easy access to its products. All necessary steps in attaining business licenses, leases and insurance will be taken to ensure Case Creations operates fully and functionally without interruption. LOCATION Case Creations will be located at The Centre Mall located at 3510 – 8th St E, in the city of Saskatoon, Saskatchewan. The Centre Mall serves as an ideal location for Case Creations as it is a popular shopping destination with over 70,000 vehicle traffic per day on 8 th Street. The Centre boasts over 90 shops with free parking and access to a variety of amenities within the mall. The Centre Mall is located in the most dominant commercial area in Saskatoon. SITE PLAN Case Creations will be located in a kiosk inside The Centre Mall at location option #1 as follows: Figure 1 – The Centre Mall Floor Plan FLOOR PLAN Case Creations will be a simple 10 x 10 customized kiosk as follows: Figure 2 – Case Creations Floor Plan Figure 3 – Cell Phone Kiosk Example Case Creations has contacted various establishments that specialize in creating customized kiosks. E2 Design and Fabrication has quoted the cost of a customized kiosk to suit Case Creations business needs to be approximately $35,000, which includes shipping and set up costs. The customized kiosk would very similar to the example in Figure 3 with locking cabinets for equipment, inventory and other valuables. HOURS OF OPERATION Case Creations would operate the same hours as the The Centre Mall’s hours of operation. The only days The Centre Mall closes is Christmas Day and Easter Sunday. SUNDAY 11:00 am – 5:00 pm MONDAY 9:30 am – 6:00 pm TUESDAY 9:30 am – 6:00 pm WEDNESDAY 9:30 am – 9:00 pm THURSDAY 9:30 am – 9:00 pm FRIDAY 9:30 am – 9:00 pm SATURDAY 9:30 am – 6:00 pm STATUTORY HOLIDAYS 11:00 am – 5:00 pm Table 1 – Hours of Operation DAILY OPERATIONS Case Creations would require its manager and/or worker to open the store half an hour before the mall opens for customers. This would allow for the manager and/or worker to prepare the kiosk for operations. Such preparations would include unlocking all equipment and case displays that require it and displaying signs and banners for the day. Also, all operating equipment would need to be powered on for operation and preparation. Such equipment would include printers, presses, computers, and cashier register. Finally, the cashier and float would need to be prepared for the day. At the end of the day, all cash and reconciliation of sales would need to be input into computer program. All equipment and inventory would once again be locked for the night. Operating equipment, such as printers, presses, computers and cashier would need to be maintained and powered down for the night. Also, the manager and/or worker would ensure that all operations are prepared for the next day, such as floats, inventory logs and restocking of inventory. Along with daily activities, the manager would keep a weekly report of sales to track trends and inventory. The manager would also be responsible for payroll processes and Canada Revenue Agency submissions. Also, monthly sales reports and inventory reports would be generated for yearly tax purposes. SUPPLY Case Creations will receive its supply from Budget Electronics through online purchasing. In addition to smartphone and tablet cases, Cases Creations will also provide a selection of cell phone accessories. Such accessories would include chargers for different types of smartphones. Budget Electronics provides wholesale prices for the cases, tablets and accessories required for sales. The time required for shipping of supplies is four to five business days. Case Creations has other suppliers to invest in should Budget Electronics cease to exist at some point. SERVICES Case Creations is not required to pay utilities as it is covered in the cost of the lease agreement with the Centre Mall. WIFI is also provided through the lease agreement. Case Creations would be responsible for telephone services, which would be provided by a local provider. Also, a point of sale system for debit/credit services would be negotiated with its bank. CAPITAL BUDGET Case Creations would operate on the following capital budget and start-up costs: Capital Budget 2015 Sign 1,500 Kiosk 35,000 Furniture and Equipment 10,000 Total 46,500 Table 2 – Capital Budget Furniture and equipment would include the purchases of computer, software, printers, presses, inkjet toners, heating tools, sublimation paper, thermal tape, cashier register, stools for sitting, and heat-resistant gloves. WORKING CAPITAL The following is the working capital for Case Creations: Working Capital 2015 Cash 10,000 Inventories 2,000 Accounts Payables 0 Total 12,000 Total Capital Required 57,500 Table 3 – Working Capital PROFIT MARGIN The following outlines the profit margins expected within the first five years that Case Creations is in operation. (See Appendix A for more detail). Year Sales Revenue COGS Gross Profit Gross Profit Margin 2015 2016 2017 2018 2019 108,000 121,770 131,055 141,048 151,803 7,128 8,037 8,650 9,309 10,019 100,872 113,733 122,405 131,739 141,784 93% 93% 93% 93% 93% Table 4 – Profit Margin OPERATING EXPENSES The following outlines the operating expenses for Cases Creations over the first five years of operations. (See Appendix A for more detail). Included in the operating expenses are accounting and legal expenses for yearly reconciliation of taxes by a professional accountant. Also, included are the lease costs for the kiosk at the Centre Mall at $1800 per month, with the exception of November and December when the lease cost increases to $4800/month. A percentage of rent may be calculated at 15% of gross sales, if greater than minimum rent per lease month. Schedule 4: Operating Expenses Accounting and Legal Advertising (Marketing) General Supplies Insurance Lease Telephone Repair and Maintenance Wages Employee Benefits (salaries) Employee Benefits (wages) Misc Variable Costs % Sales Capital Cost Allowance Debt Interest Total Operating Expenses Table 5 – Operating Expenses 2015 8.19% 13.96% 0.5% 1,500 1,000 500 500 27,600 500 500 56,464 3,276 2,298 540 2,700 1,855 99,233 2016 1,538 1,025 513 513 28,290 513 513 57,876 3,358 2,356 609 4,972 1,781 103,854 2017 1,576 1,051 525 525 28,997 525 525 59,322 3,442 2,415 655 4,197 1,702 105,459 2018 2019 1,615 1,077 538 538 29,722 538 538 60,806 3,528 2,475 705 3,568 1,618 107,268 1,656 1,104 552 552 30,465 552 552 62,326 3,616 2,537 759 3,057 1,527 109,254 PRODUCTION PROCESS Figure 4 – Product Process Step 1: Customer presents image at Case Creations Step 2: The image is sized and placed on printing template, using computer software Step 3: The image is printed on specialized printer and cut to fit case Step 4: The printed image is then taped onto the case Step 5: The case would be heated in sublimation machine or press Step 6: Let cool, package case and deliver to customer HUMAN RESOURCES PLAN ORGANIZATIONAL STRUCTURE MANAGER SALES ASSOCIATE Figure 5 – Organizational Chart Case Creations is a relatively small business and would require one part time sales associate in order for the Manager to have time away from the kiosk. Full time employees are required to work 1960 hours per year and in this particular case, Case Creations would require a part time associate to work 0.8 of that time for that to happen (See Appendix A for further details). At the discretion of the Manager, Case Creations may increase part time hours during peak times, such as Christmas and vacation taken. Part-time associates will be paid minimum wage or $10.50/hour. JOB DESCRIPTION Owner/Manager Hiring and firing of workers Training of product processes to new workers Ordering and tallying all inventory Payroll processes and other administrative duties as required Maintain relationship with suppliers Conflict resolution with customers as they arise Conflict resolution with part time workers as they arise Planning of any sales promotions or coupons Monthly review of sales, finances and projections Yearly review of sales, finances and projections Stock and organize inventory Receive and process all orders and shipments Cash processes with customers Cash balances at end of day Process custom orders as they arise Open and closing procedures of kiosk Part Time Associate Stock and organize inventory Receive and process all orders and shipments Cash processes with customers Cash balances at end of day Provide excellent customer service Process custom orders as they arise Open and closing procedures of kiosk Other duties as required by Manager Expected Hours Per Week Manager/Owner 40 hours per week Part Time Associate 13 hours per week Table 6 – Hours of Work EMPLOYEE EXPENSES Case Creation’s employee expenses are shown for the operation in the first five years (See Appendix A for details). Salary and Wage Expense Number of Employees: Manager (full time) Part time staff Salaries/Wages Manager Salary Part time staff (wage rate/hr) 1 0.80 2,020 $ Salary and Wage Costs Manager Part time staff Total Salaries and Wages 1 0.80 2,020 1 0.80 2,020 1 0.80 2,020 1 0.80 2,020 40,000 10.50 $ 41,000 10.76 $ 42,025 11.03 $ 43,076 44,153 11.31 $ 11.59 40,000 16,464 56,464 41,000 16,876 57,876 42,025 17,297 59,322 43,076 17,730 60,806 44,153 18,173 62,326 Table 7 – Salary and Wage Expense The salary and wage expenses show that the Manager/Owner is being paid a low salary of $40,000 per year in order to keep other costs down. Case Creations is a very small business and hiring more than one part time associate would have a high cost to the company, a cost that at this time it would not be able to afford. MARKETING PLAN Case Creations has the advantage in that it would be the first smartphone/tablet image printing kiosk in Saskatoon. Case Creations has the expectation that there will be a high demand and customers willing to pay for its products. Case Creations would provide a product that is unique to its customers and therefore it would be a novelty. It is true that there is a high percentage of people who own smartphones and tablets. Case Creations will build on its marketing mix to attract customers and a market share. PRODUCT Figure 6 – Product Samples PLACE Case Creations has the potential to reach a fair share of its target market in the location it will be in. The Centre Mall has high traffic and is a destination centre for many people’s shopping needs. Case Creations has the opportunity to reach its target market as well as those customers who are just passing through. Case Creations will sell directly to its customer’s one on one and face to face. Case Creations also has the opportunity to utilize direct marketing tools in terms of printed flyers, coupons, and demonstrations right at the kiosk. People are normally curious and the odds of them stopping to view products would work well for Case Creations in making sales. Figure 7 – Location PRICING Case Creations will focus primarily on making sales in smartphone cases, then tablets and finally cell phone accessories. The prices are below competitor prices and add a further value to the product, which is personalization. The cell phone cases will be priced at $25.00 per case and the tablet cases will be priced at $35.00 per IPad Mini Case and $40.00 per IPad case. The pricing strategy that will be used by Case Creations is cost-plus pricing as it buys the cases at wholesale and sells them for a mark-up on the cost. Figure 8 – Price Samples PROMOTION Case Creations intends to promote its products using direct marketing tools as well as social media platforms. The direct marketing tools would include the printed materials such as promotional cards and the banner onsite. Case Creations will also utilize a website operated by Go Daddy.com at a low cost of $20.00 per month. Included in this cost is a free domain, 300 business and personal themes, unlimited pages, 50 GB disk space, 1000 GB bandwith, 10 busines email addresses, search engine optimization, social media manager and 1 year SSL certificate. Go-Daddy also offers technical support and the option to include an online store if desired. The social media platforms Case Creations intends to use are, Facebook, Twitter, and Instagram. Social media has been proven to be very effective in advertising in terms of reaching target audiences. Case Creations also intends to use Facebook ads as an advertising tool. Advertising on facebook is a low cost, but effective way of promotion a product. The final tool Case Creations will utilize is word of mouth advertising as it is also effective. Figure 9 – Advertising Tools SEGMENTATION, TARGETING AND POSITIONING It is very important for Case Creations to segment as certain portion of the market as it would be difficult to target everyone. Targeting everyone proves to be ineffective and costly. Case Creations will target a younger audience, starting with youth ages 12 to 17. Reasons for this target market is because youth at that age own a phone and will be the first to hone in on the idea of having a unique case. Youth at that age are finding themselves and proving themselves to be unique is ideal. Secondly, Case Creations will target the younger adults from ages 18-35. Reasons for this target market is also because young adults strive to be unique and they are also at an age when they are beginning to have serious relationships, getting engaged, getting married, and starting families. Women especially pride themselves on showing pictures of their children, partners or pets. Figure 10 – Target Markets POSITIONING STATEMENT “Case Creations’ will provide its customers with an outlet to create unique and personal cases that reveal their and what is important to them.” COMPETITION Currently, Case Creations has an advantage in the area of competition. Case Creations would be one of a kind upon opening. London Drugs, Wal-Mart and Cost-Co offer the same product. However customers must order it online or through sales associates and it takes 7-10 business days for the customer to receive the product. Furthermore, the prices of the product start at $27.99 to as high as $39.99 for the same product with a ten day wait time. Case Creations provides the cases within ten minutes and at a lower price of $25.00 per case. Other competition includes the already existen cell phone case outlets in the Centre Mall and surrounding areas. Their prices range dependent on the type of case purchased, however they are not personalized or unique. (See Figure 11) POSITIONING MAP HIGH VARIETY HIGH High PRICE Price LOW PRICE Cellular Kiosks Case Creations Costco London Drugs Wal Mart LOW VARIETY Low Variety Figure 11 – Positioning Map MARKETING BUDGET ITEMS BANNER FACEBOOK ADS TOTAL PRICE 500 50 WEBSITE 250 PROMOTIONAL FLYERS 200 TOTAL 1,000 Table 8 – Marketing Budget The marketing budget for Case Creations includes costs that can be limited if the Manager/Owner takes some of the responsibility. For example, creating promotional flyers at home rather than having them professionally made. The website cost is based on $20/month for 12 months with Go-Daddy.com. The banner would be placed right at the kiosk and strategically placed for full effectiveness. Facebook ads would be used more frequently during peak seasons such as Christmas (See Appendix A for details). REVENUE PROJECTIONS Case Creations market revenue projections begin with twelve customers per day with an average purchase per customer of $25.00. Case Creations intends to see a 10% increase in the growth rate of customers, mainly because the product is new and the novelty is alive. The growth rate will then decrease to 5% ever year after until the fifth year (See Appendix A for details). Schedule 2: Revenues 2015 Number of Customers/day Number of Days/year Average Purchase/customer 2017 2018 2019 12 13 14 15 15 360 360 360 360 360 $ 25.00 $ 25.63 $ 26.27 $ 26.92 $ 27.60 Growth Rate Number of Customers Revenues Cell Phone Cases Tablet Cases Accessories Total Revenues 2016 80% 15% 5% 100% 86,400 16,200 5,400 108,000 10% 5% 5% 5% 97,416 18,266 6,089 121,770 104,844 19,658 6,553 131,055 112,838 21,157 7,052 141,048 121,442 22,770 7,590 151,803 Table 9 – Revenue Projections FINANCIAL PLAN Case Creations intends to seek 57% of the required capital through bank debt. The remainder will come from personal savings and equity on behalf of the Manager/Owner. (See Table 10 (See Appendix A for details). Schedule 6: Financing Budget Bank debt Equity Total 57% 2015 26,500 20,000 46,500 Table 10 – Financing Budget FINANCIAL ANALYSIS Based on the average purchase of $25.00 per customer and 12 customers per day in year one, Case Creations has the following expected return. (See Appendix A for details) Payback Table 11 – Payback Gross Net 146,099 126,099 BREAKEVEN ANALYSIS Case Creations has analyzed its break even points and it requires an average of 12 customers per day every year for five years in order to break even (See Appendix A for details). Breakeven Analysis Base Case Cust/day Breakeven Cust/day 12 12 13 12 14 12 15 12 15 12 Number of Customers per day Net Income Breakeven 18 16 14 12 13 14 15 15 12 10 12 12 12 12 12 8 6 4 Average 5 year Net Income = 14,871 Year 5 Owner Compensation =67,682 2 0 1 Figure 12 – Break Even Analysis 2 3 Year 4 5 SENSITIVITY ANALYSIS When the sensitivity analysis was completed, it shows that even a difference of one customer per day makes a large difference. Sensitivity based on numbers of customers/day is high. (See Appendix A for details). Sensitivity Analysis Number Cust/day 8 9 10 11 12 (Base) 13 14 Average 5 Year 5 Owner's year Profit Compensation Net Payback (23,391) (13,270) (3,149) 6,065 14,871 23,676 32,482 44,153 44,153 44,153 56,685 67,682 77,179 86,676 (150,559) (76,502) (2,446) 61,677 126,099 190,522 254,944 Table 12 – Sensitivity Analysis OWNERS COMPENSATION Dividends are usually paid when there is enough retained earnings made by the business. In the case of Case Creations, dividends start paying in year three of operations (See Appendix A for details). Average Owners' Compensation Owner Salary Dividends Total Owners' Compensation 51,309 Table 13 – Owner’s Compensations 40,000 40,000 41,000 41,000 42,025 5,063 47,088 43,076 17,699 60,775 44,153 23,529 67,682 CONCLUSION In the beginning, Case Creations has the potential to exceed revenue projections based on the fact that it’s one of a kind in Saskatoon. Case Creations shows potential to become a profitable business in the long run. There are many factors to consider, such as future competition and possible introduction of new products in the same industry. The sensitivity analysis shows that Case Creations relies heavily on its customers/day. Case Creations would require innovation in its marketing ideas and attracting and retaining its customer base. Case Creations would require a committed Manager/Owner that would be willing to give up a large portion of their time to it for a lower salary. In the future, Case Creations has the potential to expand into other areas of expertise, such as wood engraving cases, engraving metal cases and online retail. Although these areas would require further investment into the company, they can take Case Creations into new markets. REFERENCES http://cwta.ca/facts-figures/ http://consumeronomics.anoj.net/2013/11/smartphone-caseonomics-billion-dollar.html APPENDIX A: FINANCIAL MODEL SEE ATTACHED