Designer Chocolates
Business Opportunities
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Introduction
Designer Chocolates was started seven years ago, and has experienced steady growth since then. Our chocolates have been presented to royalty and heads of state, placed in lavish formal high-society dinner settings, given away at weddings, placed on pillows in the world's best hotels, eaten with coffee at trendy restaurants, given away at the launch of a new sports car by Mercedes Benz, a printer by Hewlett Packard and a Swatch watch. They are on the shelves of large department stores, and in the catologues of gift companies. The list goes on-and-on.
We at Designer Chocolates International intend to grow our business concept by issuing "Area Licenses". This will allow others to replicate our success, and give the licensee's a unique opportunity to own a business. We believe that this concept has all of the advantages of Franchising, but with none of the disadvantages.
About Franchising
It is often said that 90% of all business start-ups fail within three years whereas 90% of all franchises are successful. When you consider that all businesses, from the smallest to the biggest, are a complex mix of many factors including image, products, technology, people, accounting, management, market conditions and marketing skills, it is really not surprising that few businesses manage to get the recipe just right.
The high success rate that franchises enjoy is also not surprising, for if a business does get the formula correct, it follows that the same formula will create success in another location. This fact has lead to the explosive growth in franchising. In America in 1997 there were more than 550,000 franchises generating more than $800 billion in sales and with a new franchise business opening somewhere in the U.S. every eight minutes.
With all those positive factors you might wonder if franchising has any disadvantages; We think there are plenty.
A franchising agreement is a complex and intensely legal arrangement, in which both parties have certain obligations to each other. You can be sure that the franchisor and his lawyers have tipped the advantage in their favour.
Franchises are typically awarded for a limited time, which may be as short as five years. Renewal is not automatic, and indeed you may find that you are not permitted to renew the franchise for any number of reasons, such as if your sales targets have not been met, or if because of cash-flow problems you have missed some royalty payments. A worse scenario can occur if your franchise has been very successful. Your principal may decide to take over your franchise and run a direct operation, thereby repatriating profits direct to head office. In this way the Franchisor reaps the benefits of your hard work in building up the market, but leaves you with nothing.
Additionally You will have to do very complete monthly financial reporting to the Head Office. You may have to contribute to the advertising budget. You may have to purchase all your raw materials from the Principal, even if you can source better suppliers. After some time you will probably wonder if you really are in business for yourself, or have simply traded bosses.
The Designer Chocolates Area License
The Designer Chocolates Area License in contrast to a franchise agreement, is the essence of simplicity and fairness.
The basic points are, that for a one-time fee the licensee gets:
Training in mould-making.
Training in the computer graphics required for mould-making.
Advice on costing.
Promotional Material.
Tips and help with marketing.
Corporate identity material, such as artwork for letterheads, business cards etc.
Assistance in all aspects of setting up your business.
Immediate access to new technology or packaging as it is developed.
An Internet presence.
Continuous support via email, plus being a part of the Designer Chocolates discussion group to swap ideas.
Obligations
Area license consists of a simple legal agreement defining the area which it covers. This area can be any meaningful definable area, such as a city, a state or a country.
A Licensee can sell Designer Chocolates into any region where no Area License has been sold, but must not sell into an existing Licensee's Area.
A Licensee will not reveal the Designer Chocolates mould-making technology to any individual or entity, except in the case of re-selling their Area License.
A Licensee may transfer or sell their License to another party, provided the new Licensee signs, and agrees to abide by the conditions of a Designer Chocolates Area License.
If a Designer Chocolates Licensee ceases trading for any reason, then the Area License reverts back to Designer Chocolates International.
Should I buy a Designer Chocolates Area License?
It is as important to us as it is to you that you succeed, therefore it is good to understand the qualities you should possess:
Experience in sales, while not essential is very useful. In any case you should be the type who enjoys meeting people, listening to them, and helping them promote their business.
Project management. Running a Designer Chocolates business is simple project management. You will be coordinating printers and chocolate makers to meet delivery schedules, you'll be busy, but it'll be fun!
A strong desire to succeed, and a capacity for hard work. We can give you all the tools, products and ideas for success, but you will need to put the effort in.
What is the anatomy of a Designer Chocolates business?
There are several ways to operate a Designer Chocolates business, we'll start from the simplest:
From Home
This is a good way to start. You will need a computer and a scanner, a desk and telephone, and a Designer Chocolates Area License. That's it!
You start by securing appointments with hotels, restaurants, businesses, airlines etc. in your area, during which you show your samples and promotional material. You will need to prepare quotes, which we can help you with. Next you finalise the details of the project such as the design for the chocolates and packaging, and give the neccessary instructions to your printer. Back home you make the moulds, and when finished a few days later, take them or courier them to the chocolate makers. Now you manage the rest of the project mostly by telephone, ensuring that the packaging is delivered to the chocolate maker on time, the chocolate maker packs on time and delivers the product to your customer. You may want to deliver the products yourself to maintain a good relationship with your customer, but most chocolate makers are happy to deliver.
Your goal will be to secure contracts or standing-orders with a few institutions which will bring in a fixed monthly income. The projects you get for product launches, seminars, weddings and corporate events on top of this monthly revenue, are a bonus! From our experience one person can handle the business alone until revenues get to around $30,000 per month. After that you'll need to employ staff.
From an Office
As your business grows you will probably want to move to an office, take on an accounts person, and hire marketing staff. When selecting the location of an office you should preferably locate it close to your customers, normally this means near the Central Business District.
Another factor to consider when choosing a location for your office, is that later you may wish to manufacture your own chocolates. Making Designer Chocolates is easy. The only equipment you need is a warmer, a chiller, and a storage cabinet. Additionally, you will need an area to store packaging materials and to pack the chocolates. You may also want to buy a shrink-wrap machine. If you intend to make your own chocolates you must be mindful of your local food handling regulations.
While working with an established chocolate manufacturer in your area, you will quickly build up a knowledge of how a chocolate manufacturer operates. Starting your own will be easy.
If you already have an existing business, taking on a Designer Chocolates Area License will add little to your operating costs, yet can substantially improve your revenue.
Businesses that Designer Chocolates could add synergy to are: Florists, Corporate Gift companies, Event Organising companies, Caterers, Marketing and Communication companies.
If you are an established chocolate maker, then purchasing a Designer Chocolates Area License is an obvious smart move. It will give you an instant advantage over your competitors and you will find yourself selling substantial amounts of product into non-traditional markets. If you are in a major city it would not be unreasonable for example, to expect an increase in revenue of around $200,000 in your first twelve months, with little increase in operating expenses.
Please use the form below to contact Designer Chocolates.
If you wish to look for more business opportunities we recommend Every Franchise and Business Opportunities web site