AC OUTFIT Business

Plan

Table of Contents

Introduction Page & Company NameExecutive Summary & Mission Statement

Logo & SloganProduct Description

FinancesAdvertising

ShippingCostumer Payments

Customer ServiceSummary of Day to Day Costs

Target MarketGrowthGoals

CompetitionPotential Problems & Solutions

Conclusion

• AC-Outfit Enterprises is an dot-com company that sells specially made clothing with installed mini AC systems

• Our company name AC- OUTFIT is an abbreviation for Air Conditioning Outfit.

• With a surplus of venture capital funding, and product distribution via the internet

• The buying and selling of our outer wear is entirely conducted over electronic system such as the internet and other networks.

• Due to the fact that we use the world-wide-web as our main retail platform our products are offered to the entire world with varying shipping costs.

Introduction Page & Company Name

Product Description Our product is designed to cool/warm the body of the wearer

through an almost undetectable air conditioning system, for any out door activities or workers

The product will keep the wearer warm though the cold winters and cool in the hot summers

the system is powered by either movement generated electricity, or solar generated electricity

Since people go out side frequently, for skiing/skating/hiking etc, we can say that a lot of people will buy the product for these activities

Executive Summary

AC Outfits is great for outdoor enthusiasts looking for distinctive outdoor clothing online

Our e-commerce website eliminate the middle man and offer unique outdoor clothing that is both functional and aesthetically appealing

Our costumers will be paying a fraction of what they normally do for current outdoor adventuring jackets in stores.

James Ding and Tiger Sun co-owners of AC Outfit Enterprises, have experience working with technology and e-commerce.

AC Outfit Enterprises will not maintain a surplus of clothing inventory. AC Outfits will work closely with its manufacturing facilities located in

Sichuan, China to produce and ship all of our outerwear. AC-Outfit will maintain the necessary inventory and produce sufficient

product to meet the planned demand.

Mission Statement:

“AC-Outfit Enterprises’ fundamental objective is to provide scientifically sound, high-quality, and

comfortable air-conditioning jackets to our consumers.”

Logo & Slogan

This slogan is created to• Therefore, the slogan is created to emphasize comfort• Attract the attention of customers• Show the uniqueness of the product

Product Description • We have many large clothing companies as partners in this business

• Our jackets cost a bit more than your average clothing, but less than professional venturing gear

• The jackets are made of water proof material, being able to protect the wearer from most of nature’s wrath

• The cool/warm air is directed through tiny holes so small that’s its invisible to the naked eye, to the body

Finance

LabourLabor cost/ year

CEO (possibly Tiger or James) 0$ (Tiger or James)

Technicians (up to 2 people) $50,000 x 2 =$100,000

Marketing Director(1 person) 0$ (Tiger or James)

Workers( up to 30 people) 20,850 each= up to $625,500 making about a jacket every 2 hour each person

IT Technician (1 person) 56,000 x 1 = 56,000

Accountants (up to 2 people) 0$ (Most likely Tiger or James)

Employee Insurance/Benefits 50,000

Total 197,700 -831,500$/year depending on the amount of product needed to be produced

Day to Day CostsDay to Day Cost

Office supplies 2,000

Communication fee 5,000

Travel expenses 30,000

Car expenses 20,000

Internet fee 3,000

Total 60,000

Public Finance Budgetary Revolving Fund

Due to the fact that we must prepare half a year of deposit fund a head of time. We will cut half of all our total costs and include the start-up cost to calculate the revolving fund.

Start-Up Money Registration fee $300

Leased Machinery and equipment $25,000

Factory Refurnishing $50,000

Patent 20,000

CostFixed cost-Labor-Utilities/hydro-rent-depreciation-Online retail operation fee-Employee Training

$197,700 -831,500$50,000$200,000$100,000$10,000$10,000

Variable cost-day to day- material cost- Advertising- Machinery maintenance

62,000$50,000$300,000$50,000

Total (including Day to Day Cost) $865,700-1,706,800

Cost per item $226.6

Start-up MoneyRequirements

Start-up Expenses

Legal $6,000

Stationary etc. $2,000

Consultants $8,000

Insurance $2,000

Rent (Factory) $6,000

Leased Factory Equipment $25,000

Computer Equipment/Software $40,000

Website $10,000

Total Start-up Expenses $100,000

Start-up Assets

Cash Required $450,500

Start-up Inventory $0

Other Current Assets $0

Long-term Assets $0

Total Assets $450,500

Total Requirements $1,000 ,000

Start-up SummaryStart-Up Funding

Start-up Expenses to Fund $570,500

Start-up Assets to Fund $450,500

Total Funding Requirement $1,021,000

Assets

Non-cash Assets from Start-up $0

Cash Requirements from Start-up $450,500

Additional Cash Raised $0

Cash Balance on Starting Date $450,500

Total Assets $450,500

Liabilities and Capital

Current Borrowing $0

Long-term Liabilities $400,000

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities $0

Total Liabilities $400,000

Capital

Planned investment

Investor 1 (James) $250,000

Investor 2 (Tiger) $250,000

Other $0

Additional Investment Requirement $0

Total Planned Investment $500,000

Lost at Start-up $100,000

Total Capital $400,000

Total Capital and Liabilities $800,000

Total Funding $1,021,000

PriceOuterwear Type Average Price/Jacket

Ultimate Heating AC Outfits $500

Supreme Heating AC Outfits $430

Premium Heating AC Outfits $350

Average Price/ Outerwear

Cost/Outerwear Profit/Outerwear

430 296.00 + payment fees (paypal or other methods of payment)

Roughly 126$

4,300,000 2,966,000 1,260,000Assuming the CIT is 20% then our net profit will result to be 1,000,000.

Advertising Market Analysis Summary In the past 15 years, outdoor clothing has grown into a

billion dollar niche in the clothing industry. The popularity of the internet also launched a number of

online stores for outdoor enthusiasts but no company is exclusively selling outerwear with air conditioning function online.

Our marketing medium is traditional advertising through sportswear magazines and fitness magazines. Other marketing medium include social media marketing, where we

will advertise our products through YouTube, Facebook, Twitter. Our ads will focus on the quality and uniqueness of our

clothing. The special comfort it offers and the distinctive style.

Advertising Market Segmentation AC-Outfits will focus on two distinct groups of people that purchase

outdoor clothing.

People 26-50 of age: These are the core group that will drive our clothing brand’s success and

are responsible for the growth of outdoor clothing.

They can be quite difficult to pull into the website. However, once they are there, the key will be to promote the quality, uniqueness, and savings.

In addition, we need to assure that our customers are satisfied with their purchases. Thus, a hassle-free and efficient return policy is needed.

Advertising# of people the advertising will reach

Growth per year

Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Ages 12-25

20% 6,000,000 7,200,000 8,640,000 10,368,000

12,441,600

20.00%

Ages 26-50

15% 5,000,000 5,750,000 6,612,000 7,604,375 8,745,031 15.00%

Other 0% 0 0 0 0 0 0.00%

Total 17.81% 11,000,000

12,950,000

15,252,500

17,972,375

21,186,631

17.81%

AdvertisingAdvertising Mediums

Magazines- Sports Magazines $20,000-50,000- Travel/Tourism Magazines $20,000-50,000- Recreational Magazines 10,000

Sports Game Sponsorship- Hockey Arena and Games Sponsorships (after growing a lot bigger)- Winter Olympics sponsorship (after growing a lot bigger)- Other skiing and snowboarding competitions(after growing a lot bigger)

Social Media Marketing (max of $10,000 for each method each)- Facebook- Twitter- YouTube

Advertising through Sports Brands or getting a TV ad- Putting up internet popups in sporting brands websites (up to $50,000)- Adidas, sports check, Converse/winter sports channel(up to $200,000)

Customer Payments We accept a variety of customer payments such as Visa Cards,

Master Cards, American Express, PayPal, Pay By Cash services, etc. Our standard shipping will begin once the money is transfered to

us. We also offer different gift cards that can be purchased from local

convenient stores, supermarkets, electronic stores such as: Best Buy Future shop.

Our gift Cards can be used to redeem cash on our websites. Our cards come in: $500 $700 $1000

Shipping AC Outfits will cooperate with FedEx to improve the standard delivery

time and costs. We will offer free shipping for all purchases over $1000And free

international shipping for over 1500$. Our jackets are light weighted so it will not cost an enormous amount

for shipping. The shipping costs also varies according to different continents.

The chart below lists the amount of shipping costs according to weight and distance.

The standard shipping will be anywhere from 3 days to 2 weeks depending on the distance.

Africa With in Asia

South America

North America

Europe Australia

1 item $15 $10 $30 $30 $20 $15

2 item $20 $15 $45 $45 $30 $25

3 item $25 $20 $50 $50 $40 $35

Customer Services We offer quality customer service to our customers.

On our e-commerce websites, there are chat boxes opened to our retail agents to provide solutions to problems.

We also offer services through phone and email. All of our emails are replied within 24 hours

All of our jackets have a three year warranty so we guarantee a free exchange for any dissatisfaction. We also have a great return policy that allows our costumers

to return any outerwear they are dissatisfied with. we will be responsible for the shipping costs if a costumer

wishes to return a product.

Target Market Out target market is anyone who enjoys outdoors activities

whether it’s for work or recreational purposes. We target anyone between the age of 12 to 80. We target those who enjoy outdoor recreational activities such

as : skiing, snowboarding, ice-skating, ice hockey, camping, fishing, etc.

We also target those who works outdoors. Such as TV show anchors, journalists, archaeologists, etc. We target

those who will be out in the cold weather for long periods of time. Our jackets are designed to give off warm heat from:

charged electricity solar energy as it applies to all outdoor enthusiasts.

Growth 800,000 Americans/Canadians ski each year and more go hiking/adventuring

in place of extreme weather and temperature such Alaska We expect our initial sales in the first year to be around 10,000 jackets. we do expect our sales to gradually increase over the next 5 years. We expect to break-even after the first five years. With each years’

depreciation evened out. we expect to expand our company and increase more factory locations, and

eventually opening up retail stores Our sales projection is expected to be 75,000 jackets by the end of our 5th year. phone services which are available Monday through Friday 9:00 am to 6:00 pm. Sports Game Sponsorship

- Hockey Arena and Games Sponsorships (after growing a lot bigger)- Winter Olympics sponsorship (after growing a lot bigger)- Other skiing and snowboarding competitions(after growing a lot bigger)

Potential Problems & Solutions One of the potential problems that might occur in the future may be due to

fact that we do not have actual retail locations. solution to this problem could be to expand our advertising.

We could offer links to our website on other sportswear websites, eBay, and Amazon, etc.

We know that the current generation of adults are fully capable of shopping online and so by simply expanding our advertising we expect to solve that problem.

Another potential problem that might occur is our technology. It could be difficult for new costumers to accept our clothing.

To solve this problem we will have testimonials to try our product and give out their thoughts and opinions via

YouTube. Soon, after our products become more and more acceptable in the public

we will have an rapid increase of sales.

Competitions• Our competitions are other outdoor clothing brands such as:

– LL Bean, the North Face, The Timberland Company, etc.

• We expect to even out our competitions through our unique offerings of technology.

• Our AC system will automatically bring out the distinction. – Once we are able to impress consumers with our unique quality

and technology we expect to be one of the strongest companies in retailing.

• we do not have specific retail locations– it will not hurt our growth because of our mass advertisement

and our unique branding concepts.

Conclusion AC Outfit Enterprises is an e-commerce that offers the online retailing of air

conditioning jackets. AC Outfit’s uniqueness and distinction will rule out many of the existing competitors. We have a detailed financing plan that will allow the company to break-even within

the first 5 years, despite the enormous initial investment. We will advertise through different mediums such as:

Magazines, Sports Game Sponsorships Social Media Marketing Advertising through sports brands.

Our target market include all of the outdoor enthusiasts amongst our consumers.

We offer unique and quality customer service to our costumers through web chat, phone services, and email services.

We expect to expand our company internationally and increase our revenue as much as possible within the next 10 year