The Challenge ahead
The Global COVID-19 pandemic has: (i) reset the worldwide consumer markets, and (ii) reshaped the way U.S. businesses will trade internationally, both to accomplish its goals of supply and growth in an overall demanding and challenging economy, a daunting task that will involve all its sectors and will certainly take years to accomplish. The symptoms, so far, are our current problems of inflation, lack of skilled labor, supply chain shortfalls, and the consequences of war in Europe, and the Middle East, raising oil prices and diminishing world food supply, adding a political distancing from China and Rusia, that will even more so, throw us all into unchartered territory.  

 

Solution Proposed

Our Business Plan is about identifying, worldwide products and goods, available to the US consumer, using the combination of IT platforms, broker networks, and retail storefront strategies to adapt our offer to the new and changing trends and identify underserved segments and niche markets. In very simple words, putting buyers, producers, and their sellers of products, services, and goods, in the same marketplace.

 

Our market targets include (i) Online Shoppers, (ii) Dollar/Discount Store Retail Shoppers, and (iii) wholesale distribution networks (buyers and sellers), these segments and niche markets, although very different and broad, are all common process of changing their ways of buying and of selling, primarily due to the “new normal” defined and generally accepted era, their values and lifestyles will be different from pre-pandemic standards.  U.S. Dollar Stores - Statistics & Facts | Statista

 

It would certainly be a big mistake to think in ways and methods that have worked in pre-pandemic periods, our business plan will be evolving in identifying strategies to work: (i) within online affiliate programs and other distribution models, (ii) creating smart content and marketing for social networks, (iii) finding and importing/exporting worldwide products, services, and goods to satisfy identified niche markets and (iv) working with distributors in making affordable products available to retail shoppers in markets where it makes sense, NOT competing BUT integrating our Business Plan as a supplement to existing distribution networks (online and land-based)  where change is needed to be more effective and where we can add value.

The world is now one small marketplace.

 It is common knowledge that social networks and online commerce have changed the way all sorts and varieties of products, services, and goods are being sold and distributed to consumers around the world. These innovative and modern business models have changed the relationship with manufacturers and producers worldwide and have certainly changed the lifestyle of urban communities. The Question:

 

 

Our answer to this question is evolving now more than ever and deserves more focused review, research, and attention because it will bring more business opportunities than we can imagine. We can say with confidence "The best is yet to come".

 

Our Business Plan is about implementing international trade models and distribution strategies that will reach consumers in niche markets from artisan, organic, and original products to mainstream commodities and goods to producers that have not tapped the US market and vice versa.

 

Our Company will devote a full-time, relentless effort, experience, and talent to implementing these trade and distribution models available to everyone interested and capable, we will adapt to the required technology, content production, and strategy without being bound to a specific brand, or economic interest that will cause a conflict or reason why these ever-evolving business opportunities have not been realized yet. 

 

 The Company.

GLOBAL MARKET COMMERCE LLC (“The Company” or “GMC”), is a Texas legal entity, formed in May 2022 in which Mr. Raymundo Diaz is the Founder, Sole Member, and Manager. Mr. Diaz has an academic background in Public Accounting, graduated from the Anahuac University in Mexico City (www.anahuac.com), and is currently the Sole Proprietor and Executive Director of ARA International Business Consultants, a professional consulting practice for the last 15 years. Mr. Diaz is entrepreneurial and driven with Business Management expertise in the international marketplace, specifically the Latin American region. Fluent in Spanish. Facilitator, great communicator, and builder of management, development, and operations teams, with a specialty in both start-up and scaled growth stages. Proven networking skills, in building fruitful strategic partnerships, and delivering bottom-line growth.

 

Hiring of Marketing Director

As we establish our initial operations, we will hire this position to ensure a strong drive and results-oriented planning in all our business divisions. The profile will require knowledge and experience in internet-based digital marketing including social media and the implementation of strategies to increase the number of visitors and potential customers. 

 

The purpose of GMC business plan is to establish, in its first phase, retail operations, a Dollar Plus Discount Store DBA “The Dollar Urban Mart” (See Exhibit I, approved filing to the Texas Secretary of State) opening its first store in El Paso, Texas on May 16th, 2023. For pictures and references visit us at: www.dollarurbanmart.com. You can also look us up at Google (The Dollar Urban Mart) Yelp, Instagram, and Facebook.

The Grand Opening of our first Store occurred on August 31, 2023, with the sponsorship of the El Paso Chamber of Commerce, we had very good local news coverage and a warm welcome into the El Paso business community. This event was the official commencement of operations for our Company. We are closely working with our network of providers to establish a good relationship and to have an excellent Inventory purchase strategy, maintaining a 40% gross profit margin from these transactions, and our stores are always fully stocked with high-demand products and goods at the best price possible.

We have successfully set up proper internal controls in the store operations to keep the COGS and G&A expenses of the store operation as efficient as possible and to consolidate good financial results when our sales increase.

The ramp-up plan is to at least add one store annually and execute an aggressive marketing and advertising campaign.  In its second phase, we to finalize our website operations to promote and sell selected products, goods, and services using Internet-based affiliate networks, and we will also broker International import-export transactions for goods and products worldwide. Our current office address is a leased location at:

 6100 N Mesa Street, STE B
El Paso TX, 79912 

From this, the company also operates its warehouse and first retail operation.

 

1. The Dollar Urban Mart Retail Store Operations 

The plan includes opening a SECOND retail operation with a minimum of 5,000 Sq Ft of sales area in the East Side of El Paso, TX. To supplement our First Operation and to take advantage of an aggressive marketing campaign. We estimate the cost of remodeling and adapting Store furniture and fixtures and Inventory and signage (internal and external) to be at USD 160,000.00.

With the knowledge and experience acquired during the opening of the first store, we estimate a budget of USD 120,000.00. To cover 6 months of operating expenses while sales pick up volume to sustain themselves and to start producing positive cash flow.

       
3. Inventory Purchase Strategy
In broad terms, our strategy looks to cover two areas of concern, to always have fully stocked and available (i) Store Essentials, such as personal care items, disposables, cleaning supplies, kitchenware, stationary, hardware, groceries, baby care, and pets. (ii) Seasonal Items, such as party Supplies, temporal decorations (Halloween, Christmas, etc.), and special occasion materials (graduations, baby showers, birthdays, etc.). We estimate a budget of USD 100,00.00 to accomplish our sales goals.

4. Advertising and Marketing
The strategy involves the hiring of a Marketing Firm with expertise in retail business and with experience in start-up businesses that require branding and a comprehensive advertising campaign in TV, and the internet including the production of content and a procurement of our image in social media. The planned budget is USD 120,000.00.

 

TOTAL CAPITAL REQUIRED: USD 500,000  

General Assumptions

 

For the Store retail operations, we have identified demographics with a population of 175,000 average ages of 37 years within a 5-mile radius for consumers at an annual income of 55,000 USD average. We have planned an estimated 3,000+ products inventory to offer in our stores and that will be linked to our online platform to further increase sales and distribution channels.  Our Company has leased a store location of 6,250 Sq Ft in a highly commercial area in West El Paso, TX. We have intentions to open more in cities with similar demographics shortly, at a rate of one store per year.

 

 Derived from Store Sales in our Retail Division, revenues are calculated on a national average provided by our advisors, considering the size of the store (5,000 sqft storefront space) and its commercial location demographics, it will most probably sell 60% of its inventory every month, therefore our procedure of Inventory replacement is essential to maximize the revenue-generating potential, backed up by a comprehensive digital marketing strategy and the calendarization of targeted promotions and discounts on particular products that will both drive traffic volume and increased spending.

 

The projections consider a six-month start-up period; (in a range of 10,000 and 15,000) before producing national average numbers (in a monthly range between 67,500 and 112,500). The sales numbers do not include an additional 8.25% sales tax payable to the state of Texas.

 

 COGS is calculated at an average 40% gross profit margin from gross sales, which is an industry-standard. This percentage is key to determining our gross margin goal or “Net Revenues” which we expect to accomplish using state-of-the-art technology platforms to control our inventory in (i) cost of replacement, (ii) pricing policies, and, (iii) purchases.

 The calculation of these expenses includes payroll (Manager, Customer Services, Warehouse assistants, and Cashiers), utilities, and marketing and are grouped up in Other (Repairs, Maintenance, Bank Fees, Software app fees, Insurance premiums, and other day-to-day. The projected monthly range is between 19,000 and 25,000

5. EBITDA
In summary, we expect to have an approximate EBITDA of USD 259,095 within the first 12 months of receiving the funding and an EBITDA of USD 531,626 in the second year.

After we have consolidated the operations, we will consider a franchising model of growth in our third year of operation with aggressive expansion and scaling models designed by financial and legal experts.