I get the feeling that the FB IPO wasn’t in their best interest. I’m assuming they make a lot of money anyway from ads and other consulting work.

Sounds to me like the stock market is a fools game, and even the players like yourself can get burned.

The Facebook is the most important IPO to EVER hit the StockMarkets – But not for the reasons you think « blog maverick…

Stimulus Plan Business Proposal Synopsis – Start Up 25 25 STORE

Retail Concept (Best in Class Products, constantly evolving line up, One Price, and Motivated Team)

25 25 Store and the 5 5 5 Store

Lean, Mean, Hiring and Profit Generating Machine
• Great Sales Teams are adaptible, the backbone of any profitible retail firm, and must be compensated adequetly in order to exceed ever increasing quotas.
• A Unique alternative to the traditional Retail Business Model must address common inventory problems; disproportionate dollars tied up, slow turn over, dead skus and limited shelf life.
• Strategic site selection greatly impacts bottom line. Discounted retail space in high traffic areas kills two birds with one stone.
• Savvy and flexible buyers locate globally the very best products within specific target cost range.
• Policy & Procedure Manual promotes uniform training, duplication, profitibility.
25 25 Store
Concept: 25 for $25 Twenty five product skus with everything at one price. $25 IE Gifts, Sporting Goods, Women’s Wear, Men’s Wear, Housewares
Inventory 25 products @ 40 stock level = 1,000 items at $8 delivered cost. Total $8,000 13.7 turns
Three associates scheduled at 50 hours per week will cover Monday-Saturday 9-9 and Sunday 10-5
Associates – minimum wage plus OT: Salary of $22,000 plus $1,500 monthly bonus = $40K annual
Gross Sales Gross Profit
Revenue Weekly $6,600.00 $4,488.00
Gross Monthly(4.33) $28,578.00 $19,433.04
Gross Yearly $342,936.00 $233,196.48

Gross Yearly wages 130,000.00
Gross wage Overhead(.3) 39,000.00
Gross annual expense 12 months @ $2500 per month 30,000.00

Net Profit (gross – wage) $64,196.48
Pre Tax Net Profit per store $34,196.48
Pre tax Net Profit % 9.97%

Seek out retail space in malls – strip centers at amazing, favorable and flexible terms.
Product sourcing via global, non-conventional markets. Best in class at deep discount and shipping.
Identify ambitous, intellegent associates with great aspirations and develop a family culture.
Lead from the front but roll up sleeves and teach by example.
Establish controls to protect assets and maintain a “we can’t afford it” attitude toward expenses.
Capital requirement: $65K per unit based on $24.5K assets, 2 months wages and 3 months overhead.

5 5 5 Store
Smaller but Flexible, scalable, duplicatible version of the 25 25 Store
Concept for mall kiosks, unique spaces, seasonal opportunities.
Features include 25 skus in each of five, flexible product categories.
One price $5 IE Make-up, Jewelry, I Phone accessories, Stocking Stuffers

Inventory 125 products @ 40 stock level = 5,000 items at $1.60 delivered cost. Total $8,000 13.7 turns
Similar Per unit revenue, wage, overhead and profitablilty as the 25 25 Store.

Bottom line: Take advantage of leasing and sourcing opportunities; Train great sales team, Listen to the market; Learn, adapt and grow.
one accessories

Inventory 125 products @ 40 stock level = 5,000 items at $1.60 delivered cost. Total $8,000 13.7 turns

Similar Per unit revenue, wage, overhead and profitablilty as the 25 25 Store.

Bottom line: Build a Brand. Take advantage of leasing and sourcing opportunities. Train great sales team. Listen to the market. Learn, adapt and grow.
Suggested initial funding in $100K range with a 50 % equity position for investor.

However, at a dollar a share, the amount initially raised to line the pockets of those who created facebook would have been a lot less, unless shareholders simply held onto their shares for a few months and watched the price skyrocket into the 10 dollar to 20 dollar range.

The fact that Facebook operatives don’t care that they overpriced the value of their company is why it is a strange company. Facebook has no real customer service even while providing a product for everyday people yet not allowing those everyday people to advertise their own websites or personal services.

It’s a strange brew indeed and helps explain why there has been a job loss in this country. If companies like facebook and google, as big as they are, have no public customer service division, than that becomes the “jobs” model of the future.

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