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Executive Summary

PolyMatrix Ceramics specializes in making vitrified chinaware that is American-made,  lead-free, and single-fired. The average client is someone looking to buy a handmade present for a friend or relative or wants to possess distinctive everyday utensils. The buyer is free to choose any design. Our success has been predicated on providing excellent quality, value, and service across the board, from conventional ovenware to creating unique goods for several chain businesses. The founding and veteran of the pottery industry, Jackie Forster, had a vision for PolyMatrix Ceramics.

Problem Summary:

One of the significant issues with selling at a gallery is how much our goods will cost. Compared to selling on Amazon or Etsy, the commission rate will be much greater there. Some art galleries will take up to 50% of the price of our pieces. Customers choose inexpensive products with straightforward, sophisticated, and valuable designs.

Solution Summary:

We stopped using art galleries that charged above 50% and began operating our own. Homeowners, tenants of apartments, college students, wealthy people or families, and anybody looking to brighten up their living environment while supporting regionally produced handmade ceramics are the target market for PolyMatrix Ceramics.

Industry Overview: 

The industry for ceramic tiles was valued at USD 56.21 billion in 2018. It is anticipated to grow at a CAGR of 7.7% from 2019 to 2025. Rising building activities, backed by an increase in housing demand, will continue to be significant development drivers. The expansion is anticipated to be further boosted by rapid urbanization and increased disposable income in Middle Eastern and the Asia Pacific nations.

The main raw ingredients used to make ceramic tiles are feldspar, alumina, zircon sand, silica, and kaolin. These tiles are widely used in both residential and commercial construction. Natural minerals, namely feldspar, are employed to reduce the firing temperature for making these tiles. The result is a flat, thin product with wear resistance, heat protection, and corrosion resistance characteristics. Among other uses, they are used to cover table tops, baths, walls, floors, and roofs.

Financial Forecast: 

Business Description

Business Name: PolyMatrix Ceramics

Chief Operating Officer(Owner): Jackie Forster

Management Team:

NameDesignation
STEVEN FORSTERCo-owner & Operations Manager
MARIA MORTENSENMarketing & Sales Manager

Legal Structure: LLC

Locations:  Polymatrix Ceramics is based in Pike Place Market in Seattle, WA

Mission:  The finest locally produced goods are our priority at Polymatrix Ceramics. Our mission is to provide the best dinnerware, draw in consumers, and keep them coming back.

Vision:  Our vision is to create a thriving, varied, and sustainable community that supports the ceramic arts’ quality while providing our clients with a unique selection of goods that may be utilized for interior, exterior, wall, floor, shower, and pool installations. Our goal is to make the industrial environment a safer place to work as we advance and develop.

Products and Services: 

PolyMatrix Ceramics produces production and bespoke ceramics. We specialize in making vitrified chinaware. We are a pottery workshop with complete production. Everything is manufactured by hand, even the clay and glaze at the store. Additionally, PolyMatrix Ceramics provides In-Store Paint Your Own sessions.

Financial Overview

Fund Usage

Key Metrics
2023F2024F2025F
Earnings
Revenue$8M$23M$38M
Gross Profit$5M$14M$23M
Gross Margin60%59%59%
EBIT$2M$7M$12M
EBIT Margin25%31%32%
Liquidity
Current Ratio566
Cash Ratio455
Others
Average CAC$18$20$22
Inventory Turnover111111

SWOT ANALYSIS

As a business, we look forward to making the most of our advantages and assets while averting risks and challenges. Here are the results of the SWOT analysis:

STRENGTHWEAKNESS
  Our connections with suppliers of raw materials are solid. Our business produces the best products. The management staff is enthusiastic and assured.      Low sales of items like cups, plates, and saucers. Sales are declining, as is market share.  
OPPORTUNITYTHREAT
  The hotel and tourism sectors are constantly expanding, making five-star hotels our prospective clients. The workforce can shop around for a better supplier offer.    Competitors can make items of comparable quality for less money. different ceramic pottery  

Founder

Jackie Forster

Chief Operating Officer(Owner) 

Jackie started PolyMatrix Ceramics in a garage in 2015. An organizational leadership master’s degree from Seattle University and a bachelor of arts in ceramics and sculpture from Goshen College, both in Goshen, Indiana, are held by Jackie. Jackie has a diverse background in art and nonprofit work, having worked in two ceramic production studios, as an art center teacher, in a small clothing design business, with a small arts fundraising organization, and for more than fifteen years as a manager and director at various nonprofits in the Seattle area.

Management Team

Steven Forster

Co-owner/Operations Manager 

Steven is an entrepreneur with experience in software engineering, furniture design, and business management. While Steven sometimes works in the gallery, he is often found behind the scenes overseeing the website and organizing our yearly Mug Madness competition.

Maria Mortensen

Marketing & Sales Manager

Maria is a New Mexican clay-covered desert native who works as a sculptor, printmaker, photographer, and ceramicist. She has also worked as an experiential educator for many years, bringing unmistakable sass and a commitment to listening to and embracing her students. Printmaking methods, Raku, and the unique hues and shapes of the place where she was reared all inspire her clay work.

Organogram

Industry Analysis

Industry Overview

Because of the rising demand for building single-family homes and solid residential replacements in the nation, the market for ceramic tiles in the United States will increase during the projected period. Ceramic tiles are becoming more popular for flooring and wall coverings because they are dependable, robust, and green building compliant. Along with increased designer tile exports, factors driving the market expansion include expanding infrastructure projects, a thriving architectural sector, and more. Because of the availability of kaolin for the production of ceramic tiles, the United States market is anticipated to see rising use. The key market growth factors in the United States are the use of inkjet technology and the booming flooring industry. There are significant market participants in the United States market, and they have been making substantial investments to increase their market share. The ceramics sector is reaching new heights thanks to innovation. To produce distinctive and in-demand products, domestic and international manufacturers keep up with the latest technological advancements and design fads. In addition to enabling the tile to slide up walls and onto worktops, new technologies have enabled a higher degree of realism in flooring design. With new graphics, innovation is expanding the market for flooring tiles, helping designers and homeowners to create whatever appearance they like without being constrained by performance.

Covid-19 has kept the commercial flooring market weak due to firm projects being delayed or abandoned, affecting the office, hotel, retail, and aviation sectors. In anticipation of a rebound, manufacturers have expanded our domestic goods’ production while keeping most of our commercial infrastructure. Trade might be affected if supply lines are interrupted since the US depends on imports of ceramic tiles.

Over the anticipated period, the market for ceramic tiles used in new construction will have the most significant growth. The demand for ceramic tiles has increased throughout the nation due to the massive growth in home building expenditure over the last several years. Wall tile sales are predicted to rise due to shifting customer tastes and more possibilities for wall decorating in residential structures. The ceramic tile market is anticipated to increase throughout the forecast period due to the expanding construction sector in which ceramic tiles are used for flooring and wall decorating.

Market Size

Competitive Landscape

The research discusses significant local and foreign firms active in the American ceramic tile market. Some leading firms presently control most of the market in terms of share. However, thanks to product innovation and technology improvement, mid-sized and smaller businesses are becoming more prevalent on the market by winning new businesses and entering untapped sectors. Mohawk Industries, Shaw Industries, Florida Tile Inc., Crossville Inc., Marazzi, American Olean Tile Company, Emser Tile, Daltile Corporation, Porcelanosa Group, Jeffrey Court, Roca Tile, and other notable firms are some of the most significant participants in the United States Ceramic Tiles industry.

Top Ceramic Manufacturers in the USA

CeramTec North America, in Laurens, SC, offers advanced ceramic products and materials, including composite and ceramic component oxide and non-oxide ceramics. They serve the medical technology and automotive, electronics, energy, and engineering sectors. 

ACI Alloys, based in San Jose, CA, offers ceramics, precious and non-precious metals, bonding and backing plates, and evaporation materials. Their ceramic offerings include nitrides, oxides, fluorides, phosphides, sulfides, and chlorides.

Thermal Products Company specializes in high-temperature products in Berkeley Lake, GA. They also offer silica and fiberglass textiles, heating elements, and crucibles.

Marketing Plan

Marketing Budget

Total budget for projected years:

The following graphs indicate budget allocation across projected years:

Marketing Channels

Website

Polymatrix Ceramics has a website that will extensively detail all available product designs. In addition to the production items, our portfolio of past and present designs will be available online to offer suggestions for custom designs.

Diverse Advertising Strategies

Polymatrix Ceramic will use various advertising strategies to build store traffic and create a brand for our business. We will have several promotional events throughout the year. We also plan to advertise to Seatle Magazine and radio stations and take advantage of social media sites like Twitter, Facebook, and Instagram.

Pricing

The promotional pricing strategy will build store traffic, and the number of sales and stepped pricing will make customer satisfaction by appealing to customers within different budgets.

Strong Community interaction

Polymatrix Ceramics will host our charity events that aim to build a solid relationship with the community to build trust and bring in more customers. 

Marketing Channels

Website

Polymatrix Ceramics has a website that will extensively detail all available product designs. In addition to the production items, our portfolio of past and present designs will be available online to offer suggestions for custom designs.

Diverse Advertising Strategies

Polymatrix Ceramic will use various advertising strategies to build store traffic and create a brand for our business. We will have several promotional events throughout the year. We also plan to advertise to Seatle Magazine and radio stations and take advantage of social media sites like Twitter, Facebook, and Instagram.

Pricing

The promotional pricing strategy will build store traffic, and the number of sales and stepped pricing will make customer satisfaction by appealing to customers within different budgets.

Strong Community interaction Polymatrix Ceramics will host our charity events that aim to build a solid relationship with the community to build trust and bring in more customers. 

The following graphs indicate budget allocation across projected years:

Financials

Earnings

Liquidity

Revenue

Cost of Goods Sold

Operating Cost

Cash Flow Statement2023F2024F2025F
Cash Flow from Operating Activities
EBIT-$25,471$117,410$162,139
Depreciation$2,000$3,351$4,634
Payables
Salaries payables$14,750$16,000$19,400
Total payables$14,750$16,000$19,400
change in payables$14,750$1,250$3,400
Receivables
Revenue related receivables$46,688$79,064$99,960
Total receivables$46,688$79,064$99,960
change in receivables-$46,688-$32,376-$20,896
Inventory
COGS inventory$56,725$96,102$121,502
Total inventory$56,725$96,102$121,502
change in inventory-$56,725-$39,377-$25,399
Net cash flow from operating activities-$112,134$50,259$123,877
Cash Flow from Investing Activities
R&D$25,000$50,680$48,083
Web Development$15,000$10,136$9,617
Miscellaneous$10,000$6,757$6,411
Net cash flow from investing activities-$50,000-$67,573-$64,110
Cash Flow from Financing Activities
Equity$500,000
Net cash flow from financing activities$500,000
Net (decrease)/ increase in cash/ cash equivalents$337,866-$17,315$59,767
Cash and cash equivalents at the beginning of the year$0$337,866$320,551
Cash & cash equivalents at the end of the year$337,866$320,551$380,318
Balance Sheet2023F2024F2025F
Non- Current Assets
R&D$25,000$75,680$123,763
Web Development$15,000$25,136$34,753
Miscellaneous$10,000$16,757$23,168
Total non- current assets$50,000$117,573$181,683
Accumulated Depreciation-$2,000-$5,351-$9,985
Net non- current assets$48,000$112,222$171,698
Current Assets
Inventory$56,725$96,102$121,502
Cash$337,866$320,551$380,318
Receivables$46,688$79,064$99,960
Total current- assets$441,279$495,717$601,780
Total assets$489,279$607,939$773,478
Liabilities
Accounts payable$14,750$16,000$19,400
Total liabilities$14,750$16,000$19,400
Equities
Equity$500,000$500,000$500,000
Retained earnings-$25,471$91,939$254,078
Total equity$474,529$591,939$754,078
Total liabilities & equities$489,279$607,939$773,478
Salaries2023F2024F2025F
Management & Operations
CEO$24,000$24,000$24,000
COO$0$0$21,600
Head of HR$0$0$0
Total$24,000$24,000$45,600
Marketing & Sales
Marketing Manager$15,000$30,000$30,000
Regional Representative$108,000$108,000$108,000
Online Store Manager$12,000$12,000$12,000
Digital Marketer$0$0$19,200
Total$135,000$150,000$169,200
Finance & Accounting
CFO$0$0$0
Bookkeeping Personnel$18,000$18,000$18,000
Audit Personnel$0$0$0
Total$18,000$18,000$18,000
Total Salaries$177,000$192,000$232,800
Non- Current Asset Schedule2023F2024F2025F
R&D$25,000$75,680$126,147
depreciationNANANA
accumulated DepreciationNANANA
Net book value$25,000$75,680$126,147
Web Development$15,000$25,136$35,229
depreciationNANANA
accumulated DepreciationNANANA
Net book value$15,000$25,136$35,229
Miscellaneous$10,000$16,757$23,486
depreciation$2,000$3,351$4,697
accumulated Depreciation$2,000$5,351$10,049
Net book value$8,000$11,406$13,438
Total Net book value$48,000$112,222$174,814
Total Depreciation$2,000$3,351$4,697
Total Accumulated Depreciation$2,000$5,351$10,049

Assumptions

Investment Assumptions2023F2024F2025F
Equity Injection$500,000
Total Capital$500,000
R&D$25,000$50,680$48,083
% of initial equity5%
% of last year’s ending cash balance15%15%
Web Development$15,000$10,136$9,617
% of initial equity3%
% of last year’s ending cash balance3%3%
Miscellaneous$10,000$6,757$6,411
% of initial equity2%
% of last year’s ending cash balance2%2%
Working capital$450,000$270,293$256,441
% of initial equity90%
% of last year’s ending cash balance80%80%
No. of Sales Assumptions2023F2024F2025F
Total Promotional Budget$135,000$175,690$217,975
as % of working capital30%65%85%
In- person Marketing
proportion of total budget35%25%15%
spending$47,250$43,923$32,696
CAC$25$10$7
No. of Sales1,8904,3924,671
Event Sponsorship
proportion of total budget10%12%13%
spending$13,500$21,083$28,337
CAC$25$30$35
No. of Sales540703810
Content Marketing
proportion of total budget13%15%20%
spending$17,550$26,354$43,595
CAC$15$20$25
No. of Sales1,1701,3181,744
Social Media
proportion of total budget15%15%15%
spending$20,250$26,354$32,696
CAC$15$15$15
No. of Sales1,3501,7572,180
Google Ads
proportion of total budget5%13%15%
spending$6,750$22,840$32,696
CAC$30$35$40
No. of Sales225653817
Email Marketing
proportion of total budget7%10%12%
spending$9,450$17,569$26,157
CAC$10$10$10
No. of Sales9451,7572,616
Affiliate Marketing
proportion of total budget15%10%10%
spending$20,250$17,569$21,797
CAC$15$20$25
No. of Sales1,350878872
Revenue Assumptions2023F2024F2025F
Light Knee Pad for Women
% of total sales100%50%50%
No. of sales7,4705,7296,855
unit price$75$75$75
Aggressive Knee Pad with Shin Guard for Women
% of total sales0%25%25%
No. of sales02,8643,427
unit price$65$65$65
Spine Protector for Women
% of total sales0%25%25%
No. of sales02,8643,427
unit price$80$80$80
COGS Assumptions2023F2024F2025F
Light Knee Pad for Women
unit cost$26.3$26.3$26.3
Aggressive Knee Pad with Shin Guard for Women
unit cost$22.8$22.8$22.8
Spine Protector for Women
unit cost$28$28$28
Payment processing fees
as % of revenue3%3%3%
Packaging fess
as % of revenue1%1%1%
In- bound shipping cost
as % of revenue1.5%1.5%1.5%
OpEx Assumptions2023F2024F2025F
Legal & professional expenses
as % of revenue1%1%1%
Employee travel and relevant expenses
as % of revenue3%3%3%
Miscellaneous
as % of revenue2%2%2%
Spillage & wastage
as % of revenue2%2%2%
Cash Flow Assumptions2023F2024F2025F
Payables
Salaries payables as % of total salaries8%8%8%
period in months111
Receivables
as % of revenue8%8%8%
period in months111
Inventory
as % of revenue25%25%25%
period in months333