Bumble - 1st Place - 2017 National Business Plan Competition

Summary

Bumble, a company founded by Victoria von Flu, aims to bolster the threatened bee population while offering honey products and pollination services. Based in the San Joaquin Valley, Bumble benefits from a prime location for agricultural business and offers unique honey flavors, distinguishing it from competitors. Despite initial challenges such as a limited number of hives, the company is proactive in expanding its supply and focuses on both retail and commercial sectors. With a strong emphasis on environmental stewardship and community involvement, Bumble's revenue is derived from pollination services, business contracts, and retail sales. The company faces threats like colony collapse disorder but has strategies in place to mitigate risks and is poised for growth, with plans to expand its reach and impact globally.

Takeaways

• 🍯 The average American consumes 1.5 pounds of honey annually, signifying a substantial market for honey products.
• 📈 Honey production saw a 9% increase in the past year, indicating growth in the industry.
• 🌍 Bees are crucial for pollinating over 70% of the world's crops, highlighting their importance to global food security.
• 💰 Lone bee pollination contributed over $19 billion to the US economy last year, underscoring the economic impact of bees.
• 🐝 Bumble, established in 2016, aims to bolster the threatened bee population and support communities with honey products and pollination services.
• 🏢 Bumble's location in the San Joaquin Valley positions it advantageously for B2B sales between agricultural producers and their pollination services.
• 🏆 Bumble differentiates itself by offering five unique flavors of raw honey and specialized pollination services with an 8 frame guarantee.
• 📦 As of now, Bumble has 500 hives available for rental, which is a potential weakness due to the company's early stage, but they plan to double the supply by 2018.
• 🚀 Market opportunities include high demand for pollination services, especially in California, and the potential for honey to alleviate allergic symptoms.
• 🌱 Threats to Bumble include Colony Collapse Disorder (CCD) and harmful pesticides, which the company is proactively managing through partnerships and precautions.
• 🎯 Bumble's goals are to foster environmental awareness and operate cohesively with all departments aligned towards common objectives, using KPIs to track progress.
• 📈 Bumble's profit is derived from 44% pollination services, 38% business contracts, and the remaining 18% from storefront, web sales, and tradeshow events.
• 💹 Bumble started with a $150,000 loan and has a cash flow that, as of April 2017, holds $220,000, indicating positive financial performance.
• 📊 The company's break-even point is projected to be reached with the sale of 35,000 units at an average price of $27, with a net profit rate of 38%.
• 🌟 Bumble faces risks such as competition and consumer loyalty to existing honey producers but has strategies in place to mitigate these risks and ensure growth.

Q & A

How much honey does the average American consume annually?

The average American consumes 1.5 pounds of honey each year.

What is the significance of bees in global agriculture?

Bees pollinate over 70% of the world's crops, which is crucial for food production.

How much did bee pollination contribute to the US economy last year?

Bee pollination contributed over 19 billion dollars to the US economy.

When did Bumble open its doors and what type of corporation is it?

Bumble opened its doors on November 1st, 2016, as an S-Corporation.

What is Bumble's mission?

Bumble's mission is to replenish the threatened bee population while supporting the community and crop lands with their honey products and pollination services.

What are the two main areas of focus for Bumble's business?

Bumble's business is primarily focused on pollination services and its product line, which includes unique flavors of raw honey.

What is the current weakness in Bumble's business model?

One of the current weaknesses is that Bumble only has five hundred hives available for rental, which could be risky for a startup business.

How does Bumble plan to address the issue of limited hives?

Bumble is planning to double its hive supply by 2018 and is also considering buying an additional 250 hives using a portion of its cash reserve.

What is the potential impact of reduced honey imports from Asian countries on Bumble?

With less competition from imported honey, Bumble expects to see an increase in demand for its honey, providing an opportunity to fill the market gap left by reduced imports.

What is Bumble's strategy for expansion?

Bumble is considering expanding its retail sales to the East Coast, increasing its market share in the pollination industry, and potentially extending its international outreach program to more countries beyond Brazil.

How does Bumble ensure the protection of its bee population?

Bumble requires its business partners to notify them 40 hours prior to spraying any pesticides on their property so that necessary action can be taken to protect the bee population.

What is the significance of Bumble's 'Bee's Needs' program?

The 'Bee's Needs' program is Bumble's outreach initiative that focuses on both domestic and international efforts to support bees, including planting bee-friendly gardens and educating children about the importance of bees.