Investment opportunity in manufacturing business.

Opportunity to invest in the USA in a lucrative business

1. Introduction:

• This business has been in existence in SA for 25 years and has developed unique garden/outdoor products and these products are sold at some of the top gardening/outdoor centres in SA.
• Due to the weight of cement products (garden pots/water features/walls/pillars/statues/pavers), the owner has successfully designed and manufactured alternative products with UHDP (Ultra High Density Lightweight Polymer).
• He has just over 1000 products of which the designs have copyright on them.
• Of these 200 products will be exported to the USA as described underneath.

2 Expansion to the USA :

• The owner has investigated this option over a period of years, visited various venues and had discussions with a number of prospective persons.
• Based on that, he has drawn up a business plan that can be made available to a prospective investor/partner.
• The basis of this is that the investor/partner will invest R 2 million to buy into the USA proposal, whereby the owner and the investor/partner will have a 50% share in the USA business.
• Besides that, an amount of R4,5 million will be required from  the investor/partner to start/run the business in the USA- the owner will also contribute his R4,5 million.
• This R4,5 million of each party includes all set up costs/vehicle/offices/accommodation/staff salaries plus production costs for 12 months, without any sale taken into account (which is highly unlikely).
• The products (200 in total) will initially be manufactured in SA and exported to the USA.
• Costing has been done on the products for instance a product at cost would be 44 USA dollars and can be sold for anything from 900 to 2500 USA dollars in different regions of the USA.
• In the USA there are various options to sell/distribute the products-

1. Option 1- above parties start their own retail outlets in the USA.
2. Option 2- slot into existing USA manufacturers/retailers with the products.
3. Option 3- selling of the moulds etc to interested manufacturers in the USA.

• All of above options are discussed in detail in the business plan.
• The gardening/outdoor market was worth close on 50 billion USA dollars in 2018/2019 so it’s a huge market to tap into.

Selling price for 50% share to buy into the USA venture- R6,5 million