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.

Outlines

00:00

🐝 Bumble's Business Overview and Market Position

Bumble, established in 2016, aims to bolster the declining bee population while offering honey products and pollination services. The company is strategically located in the San Joaquin Valley, a significant agricultural hub. Bumble differentiates itself by offering unique honey flavors and specialized pollination services. Despite starting with only 500 hives, the company plans to expand and is actively increasing brand awareness. They face challenges like competition and colony collapse disorder but have strategies to mitigate these risks. Bumble's goals include environmental stewardship and community involvement, with a strong focus on employee collaboration and performance.

05:01

🍯 Bumble's Market Insights and Product Strategy

Bumble faces minimal competition in the local honey market and has a distinct advantage in offering raw honey varieties. The company targets adults aged 30 to 45 who are interested in high-quality honey products and pollination services. Bumble's product line extends to skincare and is priced competitively. The company's marketing efforts are diverse, utilizing social media and local events to engage consumers. Bumble also has a strong community outreach program and derives its profit from pollination services, business contracts, and retail sales. The company's financials are healthy, with a clear path to break-even and growth.

10:04

🌐 Bumble's Expansion Plans and International Trade Considerations

Bumble is considering expansion beyond its current scope, with a focus on both the East Coast and international markets. The company is well-positioned to capitalize on reduced honey imports, which could increase demand for its products. Bumble is also looking to grow its presence in the lucrative pollination industry. While initially aiming for a balanced focus on retail and commercial sectors, Bumble has found that its commercial services, particularly pollination, are more profitable. The company is proactive in addressing threats to its hive supply and is planning to expand its operations while maintaining financial stability.

15:06

📈 Bumble's Financial Planning and Risk Management

Bumble has a robust financial plan that includes the acquisition of additional hives to meet growing demand. With a substantial cash reserve, the company is financially equipped to expand its operations significantly. Bumble is cautious about the risk of colony collapse disorder and maintains a cash reserve to quickly replace any lost hives. The company's strategic planning and financial management aim to ensure long-term sustainability and growth, even in the face of potential challenges.

Keywords

💡Honey Production

Honey production refers to the process by which bees create honey and the subsequent harvesting by beekeepers. In the video, it is mentioned that there has been a 9% increase in honey production in the past year, which is significant for the economy and the ecosystem.

💡Pollination Services

Pollination services are essential for agriculture as they involve the transfer of pollen from the male parts of a flower to the female parts, enabling fertilization and the production of fruits and seeds. The video emphasizes that bees pollinate over 70% of the world's crops, and Bumble's pollination services contribute significantly to their revenue.

💡Bumble Bee Population

The bumble bee population refers to the number of bumble bees in existence, which is a critical indicator of environmental health. The video discusses Bumble's mission to replenish the threatened bee population, which is vital for both agriculture and biodiversity.

💡SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a strategic planning tool used to identify and analyze the internal and external factors that can impact an organization's performance. In the video, Bumble's SWOT analysis is used to outline the company's strategy for success.

💡S-Corporation

An S-Corporation is a type of corporate structure in the United States that offers tax advantages and limited liability to its shareholders. Bumble opened its doors as an S-Corporation, which is a key aspect of its business formation and legal structure.

💡Hive Rental

Hive rental is a service provided by Bumble where they rent out beehives to agricultural producers for pollination purposes. The video mentions that Bumble has 500 hives available for rental, which is a part of their business model.

💡Colony Collapse Disorder (CCD)

Colony Collapse Disorder is a phenomenon where worker bees from a hive disappear, leading to a decline in the bee population. The video discusses this as a threat to Bumble's business, as it can lead to a loss of production and affect the pollination services they provide.

💡Beekeeping

Beekeeping is the practice of maintaining beehives, typically in order to produce honey and other products such as beeswax, pollen, and propolis. Bumble's business involves beekeeping, which is essential for their honey production and pollination services.

💡Environmental Stewardship

Environmental stewardship refers to the responsible management and protection of the environment. Bumble prides itself on attracting customers interested in the health benefits of honey and focusing on environmental stewardship, which aligns with their mission to replenish the bee population.

💡Apiary Industry

The apiary industry involves the business of keeping bees, producing honey, and selling related products. The video discusses the growth opportunities within the apiary industry, with Bumble aiming to capitalize on the increased demand for domestic honey due to reduced imports.

💡Virtual Enterprise Market

The virtual enterprise market refers to the online or digital marketplace where goods and services are traded. Bumble aims to reach this market through their product line, which includes honey and other bee-related products, allowing them to tap into a broader customer base beyond their physical location.

Highlights

The average American consumes 1.5 pounds of honey per year.

Honey production has increased by 9% in the past year.

Bees are responsible for pollinating over 70% of the world's crops.

Lone bee pollination contributed over $19 billion to the US economy last year.

Bumble, led by CEO Victoria von Flu, opened in 2016 with a mission to support the bee population and local agriculture.

Bumble is located in the San Joaquin Valley, a strategic location for B2B sales and agricultural partnerships.

The company offers five unique flavors of raw honey, differentiating it from local competitors.

Bumble's pollination services guarantee 8 out of 10 frames covered in bees, exceeding local standards.

Bumble has 500 hives available for rental but plans to double the supply by 2018.

The company has a diverse and aggressive marketing campaign to increase brand awareness.

There's a high demand for pollination services, especially in California, presenting an opportunity for Bumble.

Honey is known to alleviate allergic symptoms, beneficial in areas with severe air pollution and allergy seasons.

Bumble faces threats such as colony collapse disorder (CCD) and requires partners to notify them before pesticide use.

Bumble's goals include fostering environmental awareness and promoting values among employees.

The company uses key performance indicators (KPIs) to monitor employee success and company goal achievement.

Bumble's long-term goals include contracting with five local agriculture producers within the next 18 months.

The US has seen a 1.9% increase in national GDP and a drop in unemployment rates, beneficial for small businesses like Bumble.

Bumble is ready to meet the demand for domestic honey production, as 80% of honey consumed in the US is currently imported.

Pollination services in the US are valued at $19 billion, presenting significant growth opportunities for Bumble.

Bumble's revenue is sourced from 44% pollination services, 38% business contracts, and 18% from storefront and online sales.

The company aims to break even by May 2017 with a net profit rate of 38%, accounting for both fixed and variable expenses.

Bumble faces business risks such as competition and consumer loyalty to previous honey producers but has strategies to mitigate these risks.

Transcripts

the average American eats 1.5 pounds of

honey a year honey production has a 9%

in the past year

bees pollinate over 70% of the world's

agriculture last year lone bee

pollination contributed over 19 billion

dollars to the US economy so you might

be wondering what's all the buzz about

hello my name is victoria von flu CEO of

bumble and this is my hive maddie Rivera

VP of HR ma young CEO Oh Griffin peavler

CFO Sofia Caputo VP of Sales bumble

opened its doors on November 1st of 2016

as an s-corporation with the loan

150,000 dollars in a contract with wave

farms bumbles mission is to replenish

the threatened bee population while

supporting our community and our crop

lands with our honey products and

pollination services our company

educates consumers on the importance of

bees fostering a positive social

environmental and economic influence in

current County and beyond a look at our

SWOT analysis we'll highlight how the

company plans to succeed first the

strength bumble is located in the heart

of the San Joaquin Valley and Agri

business hub where over 250 types of

produce are grown and is responsible for

almost 15 percent of the world's

agriculture this is the perfect

environment to establish

business-to-business sales between local

agricultural producers and our

pollination services second bumble has

strong product differentiation we offer

five unique flavors of raw honey in

comparison to our local competitors who

only offer to our pollination services

are specialized with an 8 frame

guarantee meaning that in our 10 frame

view boxes at any given time eight

frames will be completely covered in

bees in comparison to local pollination

service providers who only guarantee six

frames now the weaknesses as of now

bumble only has five hundred hives

available for rental which could be

dangerous in such a fragile stage of

start-up business however we are already

taking steps to double our hive supply

by 2018 and in the mean time we'll

emphasize our retail dependent revenue

streams

lastly bumble is conscious of our lack

of brand awareness within a broad

industry to combat this we've created a

marketing campaign that is diverse and

aggressive so that our customers can

join us in saving the bees however they

please bumble is presented with a few

market and environmental variables that

one

selves to potential opportunities the

demand for pollination services severely

out members the available supply of bees

and high especially in California making

the ideal time to enter this market

honey has also been known to alleviate

allergenic symptoms which is welcome

news to our home back in Kern County

where we suffer from severe air

pollution and a harsh allergy season

bumble does face a few external threats

one being colony collapse disorder or

CCD an instance where bees abandon their

hives leading to a loss of production

harmful pesticides catalyze CCD for this

reason bumble requires its business

partners to notify as forty hours prior

to spraying any pesticides on their

property so that we can take the

necessary action to maintain and protect

our bee population bumble's business

goals include fostering environmental

awareness to our community as we promote

the same values in our employees at

bumble we formulate our company's

objectives through the collaborative

efforts of our executive team allowing

for all departments to work cohesively

with the same goals in mind in addition

to an open-door policy we will quarterly

evaluations for employees to ensure that

they are performing in accordance with

bumbles expectations and objectives we

utilize key performance indicators or

KPIs which help us monitor the

progression of employee success towards

achieving company goals our hive is

organized in a spoken-- wheel

organization chart which allows our

executive rank to establish the most

effective models planning within the

company each department follows a

specific chain of command that works its

way up to the delegated executive

officer of each department ensuring that

all departments are working

collaboratively towards Gumbel's long

term mission when a bubble's for long

term business goals includes contracting

with five local agriculture producers

within the next 18 months

currently the economy is buzzing

especially for small businesses the

united states have experienced a 1.9

percent increase in national GDP over

the past year alone and with the healthy

inflation rate of 2.5 percent consumers

have flexibility with their disposable

income California's unemployment rate

has dropped the 5 percent and the

national unemployment rate is now only

4.8%

which is the lowest of this decade the

honey and apiary industries provide

growth opportunities for the company

there are currently 1700 commercial

beekeepers with an annual industry

growth rate of 4.4% in the u.s. national

honey industry report recorded 486

million pounds

honey consumed by Americans in 2015 but

80% of that honey is imported to the

United States bumble is ready to do its

parts help meet that demand pollination

services proved to exceed honey

production in terms of value in a

Cornell University study pollination

services in in the United States were

valued at 19 billion dollars the USDA

data shows it in the California Central

Valley almond farmers alone spend up to

239 million dollars annually on bee

pollination services through our

contract with wave farms we are

contributing 250 hives almond production

thus tapping into industry opportunities

our company's faces the real world

competition of local honey producing

companies like Jim's honey farm VI

market insights with less than 75 firms

categorizes business services

none of which focus on pollination

though there are numerous vie cosmetic

companies like essence no one is quite

like bumble as our quality products line

in our vital outreach efforts are

unmatched of the 54 virtual food and

beverage companies including all out on

top none offer whipped or raw honey

essentially our products are not yet

faced with any competition on the

virtual market allowing us to control

our entire market share some of target

market consists of adults ages 30 to 45

looking to purchase high quality

artisanal honey products and bee

pollination services we chose this age

range based off of real-world statistics

and data discovering that in the San

Joaquin Valley farmers an immediate

pollination services as well as men and

women willing to spend their disposable

income on our products fellows in this

age range now this is not to say that

bumble plans to exclude any other age

demographics honey knows no age and 16

or 67 its health benefits can be enjoyed

by anyone and everyone that being said

the ideal bumble customer doesn't come

from a specific age group or demographic

bumble prides itself on attracting the

customer that's interested in the health

benefits honey has to offer while

focusing on environmental stewardship as

well our storefront is located in

downtown Bakersfield California downtown

Bakersfield is seen as a hub of vibrant

life and the influx of people brought to

this area for First Friday a monthly

festival can ensure us an ever expanding

customer base for our product line

bumble harvest the beeswax and honey in

order to create a diverse product line

offering skincare life

I'll edible and service-based goods we

also follow product quality leadership

strategy and research industry markups

when determining our retail prices on

the low-priced consumer end of our

perceptional map our honey sticks and

lip balm can be found our 12 ounce jars

of whipped and raw honey are

competitively priced in a consumer

favorite as we offer five rich flavors

the company also outsources argues to

local growers in the San Joaquin Valley

and bee box rentals average at $200 per

bee box per month it can be seen through

our promotional marketing mix that we

strive to reach out to both our real and

virtual consumers and we do so through

various various social media accounts

personnel selling presents at each of

our local farmers markets and each of

our California's EE trade shows

we also exclusively offer tradeshow

promotions during tradeshow season not

seen in our normal catalog offerings one

of which includes a special honey flight

where you can sample four of our unique

flavors the bees means is our outreach

program focused both domestically and

internationally the bees needs

international partners with the honey

hutch to donate 100 of our hives to send

to South America the bees needs

California so kiss back home in

Bakersfield where we're planting be

friendly gardens around town and

educating current county children about

the necessity of the bee in our everyday

life bumbles profit placement is sourced

from 44% pollination services 38%

business contract and the remaining 18%

is comprised of storefront transactions

web sales and tradeshow events bumble

was started with a loan $150,000 our

cash flow and balance sheet proof cash

to be the most prominent assets holding

two hundred and twenty thousand dollars

as the ending cash of April 2017 our

business contact with wave farms

accounts for seventy five percent of

payroll which is consistently bumbles

largest expense starred expenses from

our income statement have set prices

provided by the standard payment rates

of vei

while other expenses were calculated by

comparing similar expenses from local

businesses the break-even point in

average units of sale will occur when

35,000 units have been sold at an

average price of twenty seven dollars

and a net profit rate of thirty eight

percent this net profit rate accounts

for both fixed and variable expenses as

bumble has met all the sales projections

to date we can accurately project to

break-even by May of 2017

now bumble does face a few business

risks

when you start up companies possible the

consumers would stay loyal to their

previous honey producers in the event

that we fail to make sales projections

bubble will send sales representatives

into the agriculture community to remind

business owners of bubbles unmatched

high quality at a fair price if we fail

to create our projected amount of

business-to-business sales the company

would certainly have to take strategic

measures business-to-business sales

make up roughly 1/2 of all of our income

while this lack of financial support

would hinder bumble's growth our

relatively high profit margins and

aggressive marketing strategies would

allow us to stay afloat in the event of

this risk or to occur due to the

multi-faceted nature of our business

operation it is highly unlikely there

are two primary revenue streams should

fail to meet sales projections

simultaneously so why bumble an untapped

market full of potential over 1 million

dollars of revenue in the first year

alone your investments can make a global

impact so be a part of our movement

bumble from our hives to yours and

that's what the buzz is about thank you

we will now take any questions well done

so as a lot of discussion national

discussion going on around international

trade all right would your business do

better in an environment with more or

less regulation so to refer to some of

the current policies regarding the

international trade the new

administration seems to be taking a step

back from it specifically the

trans-pacific partnership and this means

that we can expect to see less imports

from a lot of Asian countries and so

looking at the on the honey industry in

particular 80% of the honey that you see

on the store shelves is imported from

Asian countries and so if we see less

imports from these countries that means

that bumble will expect to see the last

competition in the future in terms of

honey and we can actually fill in the

demand that is now available because of

the reduced imports Kirchhoff question

assuming you continue to grow and become

a very mature business in your wildest

dream what would be the next phase of

expansion beyond your current product

offering or would you argue to

not expand outside of you're very

focused scope so right now bumble is

focused in California in Bakersfield but

we've already been taking steps to kind

of branch out to the East Coast with our

retail sales so we have a few business

contracts or a business of business

sales agreements one with Brooklyn sweet

and savory catering where we provide

them our honey for their restaurant and

so in the future in terms of expansion

we're looking at making more of those

contracts and getting bubbles named more

over here looking at the pollination

industry the industry is actually a 19

billion-dollar place and so looking to

bumble's growth 19 billion dollars is a

huge market and if we could take a

larger spot in not than we are right now

I'd be a great advancement to our

company however we do see a lot of

potential specifically strengthening our

ability to happen into the industry in

Kern County specifically so as mentioned

previously Kern County the area where

we're based right now a councilors 15%

of the world agriculture and so before

we want to expand outside of that and

spread ourselves too thin we wanted to

make sure that we're maximizing our

profits with the resources we already

have they're in our wildest dreams as

far as our mission goes we would love to

be able to expand our beez kneez program

to more South Africa South American

countries as we are only in Brazil at

the moment so the best thing for our

company in the world would be if we

could expand that to multiple countries

instead of just one so in listening to

your presentation I heard a lot about

retail honey sales and as I looked at

the chart there lots of different

individual products at the far upper

right-hand corner of course you have the

pollination service and that seems to

constitute 50% or more of profits and

revenues so I guess my question to you

is are you a retail company or you a

commercial company or are you trying to

be both in the beginning when we started

bumble we wanted to create a business

that was equally focused on pollination

services and our products line however

after our first few months of operation

we realized that it was kind of

unrealistic to be a 50/50 company

because pollination services do exceed

profit-wise over our product line but we

do see that the product line still

a really vital part of our company

because it allows us to reach the

virtual enterprise market the

pollination services you can't really

sell a beehive to a 16 year old at a

trade show however you can't sell honey

and you can't sell face maps and

products and that's this is a way that

we really tap into the virtual market

and so while we're not a 50/50 centered

business both of them are really vital

parts to our company and so when you

look specifically at our profitability

while the commercial sector of our

company is definitely the main sector

the fact is we're not losing profit by

focusing on both so when we look at the

revenue generated from our retail sales

which are mostly emphasized in the

virtual world we're generating enough to

also have 100 thousand dollars of profit

specifically comparing them to expenses

related to retail sales so things like

our storefront rent and because of that

we see that it's still beneficial for us

to invest in both sectors but we do

mainly focus on the commercial sector in

one of your earlier slides you made an

observation about a threat about not

having enough hives how are you going to

rectify that if you have that

opportunity where there's less

competition so that this way you could

kind of slot in and meet the current

demand in terms of hives we are already

planning to double our hive supply by

2018 and as we grow a more firm customer

base as a company we can definitely

expand on that however taking

competition into play that comment was

made on the commercial side are on the

consumer side I'm sorry more so as the

honey imported from Asian countries and

would be our opportunity to jump on that

new available space and in terms of

actions we're already taking this month

we're planning on buying 250 additional

hives you utilizing a percentage of our

cash reserve which is $220,000 and so it

cost us 40 granted by our initial 500

hives and with our 220 grand cash

reserve

we have enough wiggle room to be able to

actually buy our high supply five times

over four times over

and so the reason what we haven't

already done this is because for one we

want to save cash to hire more

beekeepers before weeks they don't have

to buy too much but for two we want to

have some Casa service left over in case

there is a risk of colony collapse

disorder so that let's say we lose a

portion of our hives we can

by those highs back and still have cash

reserve to expand in the future

[Applause]