RETAIL ASSORTMENT OPTIMIZATION SERVICE BUSINESS PLAN

I. Executive Summary

Company Description

AssortX Analytics — name reflects focused expertise on product assortment and analytics — is a specialized retail consulting firm launching in 2026 to serve the U.S. market. We operate in retail consulting and data science, delivering recurring, service-based partnerships that optimize product assortment for small and medium-sized retailers. Our core services combine demand forecasting, category strategy, inventory rule-setting, and monthly performance reviews, all powered by proprietary statistical models and hands-on retail experience. One-liner: we turn sales data into repeatable assortment wins for SMB retailers.

Based in a major U.S. retail hub, our team pairs data scientists with retail veterans to ingest POS and inventory data, build models, run merchant workshops, and embed new ordering rules into clients’ operations. We target independent and regional chains with $5M–$200M annual revenue, offering higher hit rates and faster payback than one-off software installs through ongoing advisory and execution. Short-term goal: launch in Q1 2026 and onboard initial channel partners; five-year goal: reach $4,992,000 in annual revenue and expand into adjacent category optimization services. One-liner: recurring partnerships scale revenue while improving client gross margin and inventory turns.

Problem

U.S. small-to-medium retailers lose measurable revenue to poor product assortment and inventory guesswork: out-of-stocks on bestsellers, excess carrying costs on slow SKUs, and reduced shelf productivity that harms margins and repeat visits.

Most of these retailers lack in-house data science and forecasting capabilities, so current solutions are ad hoc, one-off, or require expensive software and technical staff they don’t have.

There is a clear need for a recurring, service-driven solution that combines data science with retail expertise to stop revenue leakage and restore predictable replenishment.

Solution

We convert retailers' POS and inventory data into clear assortment actions so small and mid-size U.S. retailers avoid hiring in-house data teams, reduce slow-moving stock, and capture missed sales from high-demand items. Our service combines expert-led consulting with proprietary analytics to forecast demand, recommend optimal assortments, and deliver hands-on implementation and reporting.

Outcome: improve sales and margin while avoiding retailer infrastructure costs; target Year 5 revenue of $4,992,000.

Mission Statement

We empower independent and regional U.S. retailers with data-driven insights and seasoned industry guidance to optimize product assortments and maximize profitability. We turn retail guesswork into clear, actionable strategies that drive measurable growth for every client.

Key Success Factors

Critical milestones and capabilities that determine operational and financial success.

• Achieve breakeven by August 2027 (20-month timeline).
• Maintain CAC toward $1,800 to protect long-term margins.
• Deliver $60,000 proprietary analytics tool for decision leverage.
• Retain CEO and Senior Data Scientists to preserve expertise.
• Grow Core Monthly Retainer to 80% of customer mix for revenue stability.

Financial Summary

The plan projects revenue rising from $560,000 in 2026 to $2,167,000 in 2028 while reaching profitability in Year 3 with positive EBITDA.

Financial requirements: launch capex $135,000 and minimum cash $330,000 (minimum cash month Aug-27). Anticipated returns: IRR 3.5% and ROE 3.13%; breakeven Aug-27 and payback in 43 months.

Overall outlook: revenues scale quickly and the business reaches sustained positive EBITDA by Year 3.

Funding Requirements

The business requires $857,000 to fund the 2026 capital program, cover Year 1–2 EBITDA shortfalls, secure a cash buffer to August 2027 breakeven, and complete the proprietary software build, targeting a 3.5 percent IRR.