Be sure to understand the risks of this type of investment. No regulatory body (not the SEC, not any state regulator) has passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials or information posted herein. That’s typical for Regulation CF offerings like this one.
Risk 1.
If the Company is unable to raise additional capital on acceptable terms, it may be unable to complete the full launch of our 'Floral Concierge Membership' product/service offering. The Company will require future capital in order to continue to develop and grow our 'Floral Concierge Membership' product/service offering with all the activities necessary to bring it fully to market. There can be no assurance that additional funding will be available on acceptable terms. Failure to satisfy our capital requirements will adversely affect the Company’s business, financial condition and results of operations because the Company would be left without the capital required to complete product development, obtain regulatory approvals, or establish sales, marketing and manufacturing capabilities.
The Company's strength lies in the people on the team – if key employees would leave, significant re-building would have to happen, which would take time and slow down the implementation of our re-development projects. Or if key employees or the Company's members should develop significant health challenges or, heaven forbid, pass away, these would also cause a slow down in the process or an inability in the company to move forward, and puts members interest at risk.
The Company is faced with all of the risks associated with a company in an early stage of re-development. We've been in business 15 years, and have been plateaued for the last 5 years, attempting to pay off debt AND grow at the same time, all while having turnover driven in part by the low wages in this industry. The Company is in a stage of re-development and there is no guarantee how quickly it will reach a stage of full profitability.
Risk 2.
Flowers are a perishable product. The inherent risks are, for example, purchasing product that is shipped in good condition and arrives in poor condition. There are also possibilities of making inaccurate projections based on year-over-year sales regarding ordering flowers for peak holiday times that can effect profitability.
Risk 3.
In addition, the Company's business is subject to numerous risks associated with a luxury product such as flowers – if the economy goes into recession again, the flower business is deeply effected. Additional risks include, among other things, competition from well-established and well-capitalized companies who may want to poach, steal or replicate our service model.
Risk 4.
Because we have in-person delivery as our delivery model, there are inherent risks and potential liabilities in the case of an accident, should the situation escalate beyond our business liability insurance (which is set at $1 million in coverage per incident).
Risk 5.
The floral industry is changing. The walk-in purchase of flowers has shifted to convenience points of grocery stores and membership stores, and so the local florist model is primarily one of customer service and artistic designs as distinctions, both of which we do well. And yet, the shift in purchasing flowers as a commodity puts pressure on pricing models that are more value-based, like God's Garden Treasures LLC.
Risk 6.
People are shopping online more and expect to receive exactly what is pictured. With hundreds of varieties of flowers in dozens of colors and stem lengths, and many different design styles, and adding on the different containers or vessels as additional variants, the number of options is in the millions. There is additional cost to curating collections, shopping the flower markets for the best pricing, and then there are also weather-dependent variations on availability. We have seen some initial testing that giving people more verbal options in the descriptions on the website may actually be a detriment. And also, there is a large cost to adding new products online, from taking quality photos, to curating and editing photos, creating catchy names, to writing the descriptions and experimenting with market pricing, and then uploading it all on the website, placement on the collection page, and which collection(s) to include it. Also customers expect seasonal adjustments and for the website to feel current.
Risk 7.
God's Garden Treasures LLC is one of 7 florists in Tempe, Az. Making Google rankings competitive and a challenge. We have clients all over the city, acquired through the owner's networking and acquisition of previous flower shop's phone numbers and websites. While in the past it was easier to rank for wider geographic areas, Google's algorithms seem to be making that more and more difficult. Also, with the dhift away from google+ to Google My Business, rankings have shifted yet again. And the push inside Facebook to the 'pay to play' business model for Facebook pages also puts pressure on marketing efforts. There is no guarantee that successful online marketing strategies will remain effective, and there continues to be a need for experimentation in marketing and sales.
Risk 8.
Our current design studio is not conducive to walk-in traffic and doesn't give visibility. God's Garden Treasures LLC may need to find one or more micro-retail locations or establish locations in other parts of the city to really thrive, needing more investment.
Risk 9.
Your securities are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these units and the company does not have any plans to list these securities on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a liquidation event occurs.
Risk 10.
Any forecasts we make about our operations may prove to be inaccurate. We must, among other things, determine appropriate risks, rewards, and level of investment in our product lines, respond to economic and market variables outside of our control, respond to competitive developments and continue to attract, retain, and motivate qualified employees. There can be no assurance that we will be successful in meeting these challenges and addressing such risks and the failure to do so could have a materially adverse effect on our business, results of operations, and financial condition. Our prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in the early stage of development. As a result of these risks, challenges, and uncertainties, the value of your investment could be significantly reduced or completely lost.