Concrete Carbon Parts is a California company that makes and sells carbon fiber seatposts. The California L.L.C. was the initial form of the company. and has operated out of the owner’s home for the last year. The company has sold individual seatsposts through the Internet to customers and the owner wants the company to go to the next level.

The Products

Concrete Carbon is a supplier of high-end carbon fibre seatposts. The shafts and head units will be made of carbon fiber. Josh has created a product that surpasses all other competitors by achieving a safety barrier that was tested through torture. Concrete Carbon can offer high-end seats for road and mountain bikes that are light and comfortable thanks to carbon fiber’s natural ability to disperse vibrations. They are also completely safe. Concrete Carbon has yet to have a seatpost fail.

Concrete Carbon’s competitive advantage lies in the product. It is capable of offering a range to best fit each rider. The posts can be adjusted to fit riders based on their weight. There is no manufacturer that offers custom fitting. This is an important feature because the way the post fits affects how the ride, safety margin and weight. By having the post tuned to rider’s specific weight range, the maximum weight is possible. Ride quality and safety will also be improved by allowing for sufficient flex, which dampens road and trail vibrations. It can be likened to suspension because of the amount of flex it has.

Concrete Carbon will use an outsourcing model for production in order to let Concrete Carbon concentrate on its core business, which is serving the customer. Production will be outsourced by two industry leaders. Josh will supply the subcontractors with the design details. The parts will be made to order by them. Josh&#8217, Concrete Carbon’s prior networking connections, was a key factor in selecting the subcontractors. They were also chosen for their ability scale production when required.

Market

Concrete Carbon currently only sells seatposts direct to customers. In order to grow the business, Concrete Carbon needs to begin selling to new customers. Concrete Carbon decided to sell to distributors. With 343,009 customers potential, the annual growth rate of individual customers is 10%. The growth rate for distributors is 4% with 14 potential customers. Although the growth rate isn’t very high, it is still impressive to see the potential market.

Marketing

Concrete Carbon will use two very distinct marketing strategies for its potential customer segments. Concrete Carbon will use the website to make concrete carbon’s parts more visible to consumers. The website has been in operation for a year. Continuous improvements will be made to it. Concrete Carbon will be present at various trade shows in the industry to build sales relationships with distributors. The trade shows are the most effective place to develop close relationships with new and perspective distributors. Concrete Carbon will be able to invest trust in many relationships because business relationships are built on trust.

Sales will increase to $119,000 by year 1, and reach $332,000 by year 3. Concrete Carbon Parts will see a steady increase in profitability and gross margins over the next three-years.

1.1 Keys to Success

• Precisely engineered products.
• Follow up on all promises made to vendors and customers.
• Strict financial controls.

1.2 Mission

Concrete Carbon Parts’#8217 mission is to make the best quality carbon seatposts available. It will promote lightweight, comfort, as well as a realistic safety margin on all of the products.

1.3 Objectives

• To become the world’s leading manufacturer of carbon seatpost bicycles.
• Concrete Carbon must increase its sales in order to become a sustainable company.
• Increase sales significantly by creating new customers.