Kismet was a distributor of tools and hobby products (such as: hunting knives, compasses and sleeping bags). Stuart Trier – President
Aaron Anticic – Treasure
Mitcha Chiba – Director of Operations
Kismet focused on selling lower-priced tools to individuals and contractors throughout South-western Ontario. Main source of revenue came from “mobile tool shows”
Kismet rented a venue within a city or small town, sending out flyers and local newspapers to sell products at 40% - 70% off opened 2-4 days in length. Home Depot (Sales of $54B in 2001; with 27% of those sales from hardware and seasonal product lines) and Canadian Tire dominated the industry Kismet partners were planning for next year’s operations and rapid expansion. Chiba’s 1st annual salary: $38,000 + 10% bonus (EBIT) + company car $3000 Administrative assistant annual salary: $26,000
Trier and Anticic combined salary of $6000 per month + dividends equal to 20% Kismet expected accounts receivable to increase from 0 – 10 days of sales hence wanting to increase of inventory from 29 – 40 days to mitigate frequency of stock outs. This plus full time management of Trier and Chiba were expected to create $2M and $4M in sales for upcoming full year of operations. New software system $20,000 – point of sale (POS) system
Inventory control system $10,000
Office investments $5,000
Storage cost - $3,500 per month
London warehouse utilities $2,400 per year
Insurance bill increase by $2,000 annually
Both Trier and Anticic were worried for the difficulty for new companies, with young entrepreneurs to obtain financing from financial institution. They were uncertain what information should be stressed in their meeting with the bank’s account management Fact: bank wants a company who is comfortable in paying back its debt Projected statements were required.
Web Summary: Kismet Inc. was a rapidly growing distributor of tools and hobby products that focused on...
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