Vesta Movement at Georgia Tech
The Team Maria Rivero Project Leader Nicya Manocchio Business Analyst Darius Rotnem Business Analyst Nihal Shah Business Analyst Ching-Chi Tu Business Analyst Marissa Pittard McKinsey Mentor
Agenda Topic Slide Background Slide 4 Communications Slide 6 Inventory Slide 13 Budgeting Slide 17 Expansion Slide 23 Wrapping Up Slide 30
Topic Overview Communications Inventory Expansion Budgeting
Communication Channels
Communication Channels May Improve Efficiency and Clarify Duties Scheduling Updates Customer recommendations/ideas Discussion of the day s strengths and weaknesses (can be personal channel) Mainly steered by the owners/maddie Online In-Office
Trello as the Whiteboard for In-Office Communication
Trello as the Whiteboard for In-Office Communication
Slack as Easy-to-Manage Communication Software The most up-and-coming, easy-to-use app in the recent come-abouts of the tech world Can create channels for discussions, like those aforementioned Can additionally import photos and files to conversations, or post messages to yourself
Slack and Trello Connect for Ease
Slack and Trello Connect for Ease
Inventory
Classifying Inventory Will Help in Reducing Unnecessary Costs and Outstanding Stock Action Items that Vesta was not previously aware of: Adjusting and restarting the negatives in inventory stock in MindBody Changing inventory grouping for consistency via MindBody Classifications that were created for all inventory in the last 6 months: Seasonal Keep High Stock/Keep Low Stock Choose One Color Consider Removing
More Visibility Will Increase Sales for the RXBAR Have been selling for at least the last 6 months, and average demand per month is very low Determining low demand factors: Ingredient list may not be appealing to wide range of customers Visibility Could keep this bar in stock while experimenting with a new Consult Your bar addition Community
New Products Will Could Appeal to Wider Customer Base at Vesta
Budgeting
Create a Budgeting System Aid for Day-to-Day Decision Making Processes Objectives of a budgeting system: Create a simple yet adaptive tool to: Use current and historic financial data to help financial planning Break down and understand the key sources of revenue and fixed/variable costs Allow for the implementation of future financial goals and objectives. Offer potential third party software as options for the client to decide which product best satisfies their current situation
Excel Revenue Tool to Serve as a Short Term Buffer for Transition Into Professional Software Usage Printable financial summary Interactive graphical breakdowns
Goal Setting Tool Provides Better Understanding of Financial Outlook
Use Quicken to Make Budgeting Easy Quicken #1 Budgeting app for Mac users Plan your budget for the future Features include how much to save to reach your goal Imports bank transactions including credit card accounts Simplifies taxes Categorizes small business and personal transactions automatically $65 to download the software
Expansion
Cost Estimates for Expansion Cover Expenses for a Year Getting a budget allocation Sensitivity analysis which plots years vs inflation for better estimation
Denver and Portland are Best Fits for Expansion Examined: Median salary, location quotient, cost of living, rent, demographics, competition, demand, taxes, regulation, overall culture, etc Researched cities: San Francisco Las Vegas Sacramento NYC Narrowed down to 2 best fit cities Denver, Colorado Portland, Oregon Austin Denver Portland
Why Denver? Ranked best place in country for business by Forbes 42% of population in target demographic Median age of 34 Proximity to colleges Best state for health-conscious population
Lower Downtown Regarded as the ideal hub for urban living Very young population Denver s version of Midtown Real estate quite expensive Home to most of the core age group of 24-35 LoDo appealing because of its walkability and mass transit
Why Portland? Climate almost identical to Denver Cost of living index: 141 (205 for housing) Employment per 1000 jobs for fitness trainers: 2.6 Top marginal individual income tax rate of 9.9% State ranked 43rd in Small Business Survival Index Location quotient for fitness trainers: 1.51
Pearl District Entertainment/Recreation one of fastest growing sectors here High population/population density Growing at 3% per year Lower median age than Portland as a whole Close proximity to downtown neighborhoods Considered the San Francisco of Oregon
Summary 1 Communications Use Trello as the online whiteboard and use Slack to maintain separate conversation streams 3 Budgeting Expand the Excel tool to see a Revenue & Cost breakdown Transition to Quicken for continuous improvement 2 Inventory 4 Expansion Add Citadel Nutrition and Pure Bliss bars to stock Give more visibility to products Use the Excel tool to calculate expansion CapEx Denver & Portland best cities
Questions?