IkaVina Wine and Spirits, LLC: The Investment Amount

The Amount

I find it more plausible that I can get 3,000 people each willing to invest $100 dollars towards seeing this done. That's probably what many people spend on a date or a night out partying. If you want to invest more than $100, you have to do it in increments of that as each $100 represents an ownership unit in the company.

This is not a timeshare opportunity nor is this some sort of multilevel marketing business; I so hate those things. You will not make more money by getting friends and associates to invest though you'd probably get me to put together a dinner or barbecue for you and some friends. And no, you will not get your own website whereas people can purchase wine from your site and so many other people are offering the same products. Laugh just a little.

The amount calculated comes from two figures, the first is that which is the cost of the wine, including labeling and transport. This figure totals just under 150K and covers three forty foot containers; one consisting on wine from Spain, another consisting of two to three different wines from one producer in Italy, and the last consisting of one wine from another producer in Italy. All told, that would come to around 40,800 bottles of wine. This price also reflects a rate of 1.37 dollars to the Euro. The remainder of the amount are the costs associated with one year of business expenses, consisting of everything from insurance and printing, to lodging and transportation.

ProductCost Per ContainerTotal Bottles
Product A $37,861.20 13,800
Products B, C $66,777.93 13,800
Products D $69,970.96 13,200

  Selling Price Per Bottle Maximum Gross Profit*
(Above Product Cost)
Case Purchase Cost
  Wholesale Distributor Retail Per Case Per Container As Distributor** Distributor Retailer
Product A 3.70 5.00 7.00 5.76 13,251.42 31,104.84 22.22 30.00
Products B, C 6.09 8.23 11.52 9.48 21,800.71 51,231.67 36.56 49.36
Product D 7.16 9.66 13.53 11.13 24,489.84 57,551.11 42.92 57.96

* This is reflected after taking out the cost of the product and its transport to the warehouse
** If we sell in DC, we also act as distributor as well, thus enjoying another level of profit

I figure that I am not asking too much and I am not asking too little either. $100 means a lot of things to a lot of different people, and in the end I find it a respectable number. Would having 3000 additional owners in the company be a bother? Well, you can easily have 5,000 Facebook friends so it doesn't seem to be an issue, and I can probably gain more from those people in suggestions, tips for where to sell, and who knows what else. Maybe we can also trade drink and food recipes; I make a mean ceviche!

What percentage stake of the company does the total investment represent?

This total amount raised will represent a 25% ownership of/in the company.

How Can I Invest?

I am in the process of revamping our crowdfunding campaign which should be up by the June 7th, so check back then.

The Return