African American Heritage Society Financial Forecast Overview Proposal

Page 1

“OurPeople.OurExperience.”

| AFRICAN
AMERICAN HERITAGE SOCIETY
Estimated Financial Projections Overview Version 1 | March 2024
4-Year

Revenue growth, generating operational cost efficiencies, and a strong ROI on an annual basis will be the financial strategy.

African American Heritage Society is projecting strong growth over the first four years as our modern marketing strategies attract new customers, our loyalty programs create a cost-efficient financial foundation, and potential retail partnerships ensure solid growth.

$2,467,500 $5,312,150 $10,996,750 $13,918,750 $3,551,350 $6,645,089 $10,397,822 $11,429,707 (-$1,083,850) (-$1,332,939) $598,928 $2,489,043 $(1,500,000.00) $(500,000.00) $500,000.00 $1,500,000.00 $2,500,000.00 $3,500,000.00 -$2,500,000 $1,000,000 $4,500,000 $8,000,000 $11,500,000 $15,000,000 Year 1 Year 2 Year 3 Year 4 SAAH Annual Revenue vs. Expenses (Years 1 - 4) Revenue Expenses Before-tax Profit/(Loss)
Financial | 4-Year Revenue & Expense Overview | AFRICAN AMERICAN HERITAGE SOCIETY | “OurPeople.OurExperience.” | 2 Revenue Expenses Revenue Growth +115% +98% +26%

Fine Art products will be the foundation of the business followed by Merchandising and Memberships designed to create the loyalty for growth.

African American Heritage Society will commence operations solely focused on introducing the fine art products to consumers. Over the first four years, AAHS will look to create retail partnerships along with capitalizing on repeat relationships (loyalty) through a highly relevant Membership program as well as a low barrier of entry merchandising items to boost revenue.

Annual Revenue Projections (Year 1

Fine Art Products Memberships Merchandise

$2,467,500 $4,764,900 $9,927,250 $12,426,500 $173,250 $297,000 $396,000 $374,000 $772,500 $1,096,250 $0 $3,000,000 $6,000,000 $9,000,000 $12,000,000 $15,000,000 Year 1 Year 2 Year 3 Year 4
- 4)
Financial | Revenue Overview $5,312,150 $10,996,750 $13,918,750 | AFRICAN AMERICAN HERITAGE SOCIETY | “OurPeople.OurExperience.” | 3

Financial | Expense Overview – Years

The objective for the first two years is to build a solid foundation for growth from an Operational standpoint to prepare for strong business growth.

Logistics

Product

Preparing for success is the most vital element of achieving long-term success, therefore African American Heritage Society has developed a strategic plan that put the right organizational and operational structure in place with a strong executive management team. Additionally, the key to continued growth is an intelligent marketing strategy that utilizes modern marketing techniques to be effective yet efficient to attain the outlined business goals.

Logistics

Product

Admin

2 $1,628,500 $214,770 $117,000 $235,000 $1,356,080 $ $ $1,000,000 $2,000,000 $3,000,000 $4,000,000 Brand, Marketing, & Media
1 &
& Distribution
Production
Operations Loan Debt Service Year 1 $2,125,210 $271,384 $162,500 $662,250 $1,778,680 $531,215 $ $1,000,000 $2,000,000 $3,000,000 $4,000,000
Marketing, & Media
Development
Admin &
Brand,
Distribution
&
Development Production
& Operations Loan Debt Service Year 2 Total | $3,551,350 Total | $6,645,089 | AFRICAN AMERICAN HERITAGE SOCIETY | “OurPeople.OurExperience.” | 4

Financial | Expense Overview – Years 3 & 4

Both Operational and Marketing expenditures will stabilize with a focus on customer retention along with expanded marketing partnerships will be the basis for growth objective for years 3 and 4. This represents the most crucial period for African American Heritage Society given the organization will be transitioning from a start up to an established operation with a growing customer base. During this phase, it will be imperative to foster new, high-profile relationships with established partners to broaden the opportunities to engage new audiences in which the brand can attract for sales and revenue growth. This will work in conjunction with a robust loyalty-focused Membership program resulting in significant increased sales and revenue.

$3,702,292 $1,100,563 $108,500 $1,703,250 $2,488,300 $1,391,875 $ $1,000,000 $2,000,000 $3,000,000 $4,000,000 Brand, Marketing, & Media Logistics & Distribution Product Development Production Admin & Operations Loan Debt Service Year 4 $3,278,125 $888,903 $162,500 $1,370,500 $2,265,180 $1,099,675 $ $1,000,000 $2,000,000 $3,000,000 $4,000,000 Brand, Marketing, & Media Logistics & Distribution Product Development Production Admin & Operations Loan Debt Service Year 3
Total | $10,897,322 Total | $11,429,707 | AFRICAN AMERICAN HERITAGE SOCIETY | “OurPeople.OurExperience.” | 5

In summary, the African American Heritage Society represents a solid financial investment growth opportunity.

Our team has crafted a well thought out strategic business plan that focuses on building a strong organizational and operational foundation. Our objectives are focused on consistent growth using innovative approaches to building our audience then supplementing that organic growth with relevant partnerships to ensure enduring success for years to come.

| AFRICAN AMERICAN HERITAGE SOCIETY | “OurPeople.OurExperience” | 6

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