The client approached us to formalize their business of offering home and closet organization services. Their target market & audience have luxurious houses or large areas of shelving ad closets that need to be organized. The client is targeting a very particular niche and hence, wanted help in understanding the marketing and financial strategies relevant to their business. Business consultation services were provided to the client by Avvale.
To help the client better understand the business conditions we conducted in-depth market research and drafted a business plan which consisted of the following:
Strategy & Implementation
Five-Year Financial Forecasts
The market size and trends helped us understand how likely it is for a business to scale in this industry and if so at what rate can we expect the industry to grow over time. The market size of the home décor industry is estimated at 11.4 billion USD in Florida. Sales for single-family homes and condos have gone up so they constitute most of our market.
The Competitor Analysis helped in understanding the key players in the market and their relative strengths and weaknesses. Specializations and unique selling points of each of the competitors were analyzed, which helped our client identify what value addition they could do to their products/services to capture a greater market share. The target market is people aged between 25-60 years. Since the beginning of Covid-19, 70% of the real estate buyers in Florida are domestic. There has been a 20% growth in the Home Organization market from 2015-to 2020. This shows that American home and space owners are finding less time in their schedules to organize and are now in more need to hire someone to organize their space for them.
The SWOT analysis looked closely into the strengths and weaknesses the business is likely to possess and the threats and opportunities the business is likely to face in the operating environment. The biggest weakness for the business was that although the client wanted to work on an interesting niche, closet organization, they had limited themselves to that niche and weren’t offering other services that counter the pain points of their niche market.
We provided the client with a list of the competitors in the market and the services they offer. This helped the client decide how to market their products and expand their service offering to help them stand out. The marketing plan that we drafted for the client helped the client strategize and organize the steps they can take to capture a greater market share. A few examples include use of Google CPC ads and Loyalty cards.
A financial forecast was also conducted for the business to analyze their startup costs, operating expenses as well as the revenue they can expect with the expansion plan outlined by Avvale Consulting.