biz plan sample (intern1 tnwp's conflicted copy 2010-03-11)

8/9/2019 Biz Plan Sample (Intern1 Tnwp's Conflicted Copy 2010-03-11)

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Go Green Yoga Mats

Business Plan

Address of Company

Phone Number

Logo

Owners name, contact info

5/12/10


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Confidentiality Statement

This document contains confidential information proprietary to GoGreenYogaMats,

hereinafter referred to as the Company. This information and related conversations are

submitted solely for the purpose of introducing selected parties to companys Business

Plan. companys disclosure of information contained herein and in related conversations

does not constitute any subscription or authorization to use the information, ideas, or

concepts presented, or to disclose any information to other parties. company retainsownership of this Plan, and the concepts and ideas described herein.

Each recipient of this document agrees to treat it in a strictly confidential manner. The

recipient may not to disclose, directly or indirectly, or permit any agent or affiliate to

disclose any of the information contained herein, or reproduce this document in whole or

part without the prior written consent of the Company.

Any party who accepts delivery of this Plan or any other document or verbal communication

of confidential information from company agrees to be bound by the terms of thisConfidentiality Statement and further agrees to promptly return documents to the Company

upon request.

Securities Statement

This Business Plan does not constitute an offer to sell or the solicitation of an offer to buy

any securities or an offer to sell or the solicitation of an offer to buy such securities in any

circumstances in which such offer or solicitation is unlawful. Neither the delivery of thismemorandum nor any sale of the Companys securities shall, under any circumstances,

create any implication that there has been no change in the affairs of the Company since

the date hereof, or that information contained herein is correct as of any time subsequent to


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Date: ___________________________________________

TABLE OF CONTENTS

EXECUTIVE SUMMARY..............................4

MISSION & VISION....................................5

Mission Statement.................................5

Core Values...........................................5

Core Purpose.........................................5

PRODUCT & SERVICE DESCRIPTION..........5

Overview of Products & Services...........5

Problems, Causes, Solutions and Benefits 10

Product & Service Advantages............10

Product Development Activities..........11

Customer service................................12

MARKET ANALYSIS..................................12

Market Segmentation..........................12


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Indirect Competitors............................23

Competitive Advantages.....................24

Barriers to Entry..................................24

SALES AND MARKETING PLAN................25

Sales Forecast.....................................25

Marketing Goals..................................26

Positioning...........................................26

SWOT..................................................26

Branding..............................................27

Distribution Channels..........................27

Pricing StrategyError! Bookmark not defined.

Marketing Strategies (Promotion & Advertising) 29

Customer Service................................29

OPERATIONS PLAN..................................30

Location..............................................30

Staffing and Training...........................30

Operational Procedures Merchandising30

Purchasing PROCEDURES....................30


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EXECUTIVE SUMMARY

History

Go Green Yoga Mats sells eco-friendly yoga products in the continental U.S. and was

established in 2008. Owners Tyler and Hunter Jensen are determined to make

gogreenyogamats.com the #1 seller of eco-friendly yoga packages and products in

the United States. We will be successful through good business practices, fast

delivery, quality products, and a great marketing plan.

Marketing

The yoga industry has 16 million participants and is continuing to grow.1 The green

movement is also on the rise with people becoming more conscious about how the

decisions they make will affect the environment. Consumers are spending more

time researching products online and then making purchases, instead of always

going to a brick and mortar store.

There are several competitors in this industry and including large organizations with

online and brick and mortar stores and smaller companies that only sell online. Go

Green Yoga Mats plans to set themselves apart through their high quality products

and package deals. They offer a variety of eco-friendly yoga mats and package

deals for consumers to choose from. They even have a MATmatcher to help

customers determine what option is best for them. All of their products are sold at

the same or lower price than their competitors making them a better choice formost consumers. The website also contains additional information about yoga so

consumers can continue to gain more knowledge about the industry while they

shop


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Financials

The company is expect to generate $355,000 at the end of the second year withvery low overhead.

MISSION & VISION

MISSION STATEMENT

Go Green Yoga Mats is dedicated to selling high quality, "green" yoga products tothe eco-minded individual through individual mat sales and discounted packagedeals. Our superior products and fast delivery are sure to create satisfiedcustomers! We believe business can change the world; and through the eco

movement, gogreenyogamats.com sets out to make positive impacts on theenvironment while delivering the products our consumers need.

CORE VALUES

CORE PURPOSE

PRODUCT & SERVICE DESCRIPTION

OVERVIEW OF PRODUCTS & SERVICES

Go Green Yoga Mats is an online based company created in August of 2008. Thathas set out to provide customers with eco-friendly yoga mats and products that


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Communities surrounding vinyl chloride facilities suffer from groundwater andair pollution.

New car smell? New shower curtain smell? Thats the smell of poisonouschemicals off-gassing from the PVC. Our bodies are contaminated withpoisonous chemicals released during the PVC lifecycle, such as mercury,dioxins, and phthalates, which may pose irreversible life-long health threats.

Go Green Yoga Mats provides people with yoga packages that are put together with

the yoga user in mind. They set themselves apart from other companies with their

unique packages and brand comparisons that other companies are not offering. Go

Green Yoga Mats provides mats as package deals to save consumers money. GoGreen Yoga Mats will provide fast, reliable, and quality products to consumers to

help them better their lives in the area of health and well-being.

Go Green Yoga Mats distributes Manduka and Jade Yoga products. Manduka and

JadeYoga handle the inventory and shipping of the products through a drop-shipping

program. Orders are sent to Manduka or Jade Yoga via e-mail, the order is placed

and shipped to the customers location accordingly. We will create a pricing market

that is equal to Manduka, JadeYoga, and our competitors.

How Go Green Yoga Mats products compare to the market:

Average yoga mat Jade Manduka

Material PVC/non-organic cotton Natural Rubber Natural Tree Rubber

Longevity 3-12 months 1-3 years 5-50 years


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*While we cannot speak for all companies who make yoga mats, the majority of yoga matproducers/ distributors do not support environmental charities if they are not selling eco-friendlyyoga mats.

Overview of Products and Services

Go Green

Yoga Mats

Gaiam Barefoot Yoga Yoga-

Clothing.com

Products

Yoga mats x x x x


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Green -ness

Vinyl Mats No x x x

GreenCertification

Oeko-texcompliant

PEFC; Fair Trade x

Mat Life Jade: 1-3 yrs;

Manduka: 5-50yrs

Manduka: 5-50 yrs Jade: 1-3 yrs;

Manduka: 5-50 yrs

Shipping

Cost $9.99 Depends onProducts

Based on theshipping option, zipcode, and weight of

package

$8.00, moredepending on

shipping method

ETA 2-5 Days Up to customer:2, 5-7, or 7-10

Up to customer:overnight, 2, 3, or

5-7

Up to customer:overnight, 2, or 5-

10

CustomerSupport

Return Policy x x x x

Other

Social Media x x x x

Yoga Info on site x x


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Packages

The Beginner Package

Eko Lite Mat, MatSak (Small),

Gravity & Grace DVD

The Black Mat 85 Package

Black Mat 85, eQua Towel (X-large),

Cork Block, 10 Strap, MatSak (Large)

The eKO 71 Package

eKo Mat 71, eQua Towel (Large),

Jo-sha Mat Wipes, Cork Block,

8 Strap, MatSak (Small)

The eKO 85 Package

eKO Mat 85, eQua Towel (X-Large),Jo-Sha Mat Wipes, Cork Block,

10 Strap, MatSak (Large)


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PROBLEMS, CAUSES, SOLUTIONS AND BENEFITS

Go Green Yoga Mats

Solutions

Only provide yoga products

created by environmentallyfriendly companies that use

green materials and

manufacturing processes

Benefits to the Consumer

Getting high quality green

products

Opportunity to buy with

confidence

Common Problems

Inability to find yoga mats

and accessories that meet

their green standards

Products not from a reliable

source they trust (ex.

WalMart)

Causes

General desire of producers

to make their products using

cheap materials, such as

vinyl, which are often

harmful to the environment


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Advantages of our products

Durability Jade mats last 1-3 years and Manduka

mats last 5-50 years where an average

yoga mats only last 3-12 months

Selection Yoga mats come in a variety of sizes and

thicknesses in order to suit the needs of

any yoga enthusiast

Packages Allow customers to easily get everything

they need to start yoga

Products Green and eco-friendly products

Information Plenty of Green/Yoga information on thewebsite

Support Company supports Off the Mat, Into the

World and Trees for the Future

How our products are green:


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CUSTOMER SERVICE

Go Green Yoga Mats has set up a return policy for both damaged mats and whenconsumers change their minds. For damaged mats, Go Green Yoga Mats must be

notified within 3 days of the consumer receiving the product or no refund/exchange

will be possible.

Go Green Yoga Mats accepts returns or exchanges up to 30 days from the date ofpurchase. There is a $15.00 restocking fee for all non-defective Go Green YogaMats merchandise that is returned out of the original packaging. In order to process

a return/exchange, we must receive ALL of the following:

1. Returned merchandise in clean condition

2. Proof of purchase (i.e. sales receipt)

3. Return Authorization Form

MARKET ANALYSIS

MARKET SEGMENTATION

The market segmentation for Go Green Yoga Mats reaches four potential segments;

women, 23-34 and 35-55, men and yoga instructors. People who practice yoga

often have a median income of $75,000 or higher2 and are looking for health

benefits and stress reduction. Go Green Yoga Mats has something to offer all yoga

students whether they are concerned with website security and accessibility or

focused on getting high quality eco-friendly products.


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MARKET SEGMENTATION

Segment 1 Segment 2 Segment 4 Segment 3

BriefDescription

Women 23-34 Women 35-55 Men Yoga Instructors

Size 72% of people who practiceyoga are women, 23-34 yearolds make up 40%

72% of people who practiceyoga are women. 35-55 yearolds make up 41%

Men represent 27.8% of thepeople that practice yoga

Approximately 70,000instructors

Demographics

Age range 23-34 35-55 Any Any

Gender Women Women Men Men/Women

Race Any Any Any Any

Religion Any Any Any Any

Location USA USA USA USAMaritalStatus

Not Married/Married Married or has been Married Any Any

Income level $50,000+ $50,000+ $50,000+ N/A

Occupation

Educationlevel

College Grad Any College Grad Certified Instructors

FamilyStructure

Any Likely to be a wife and mother Any Any

Psychographics

Personality Active social life. Up to date onentertainment news. Young anda compulsive buyer, butsophisticated.

A resourceful woman who isonline less than 5 hours a week.More inclined to shop aroundthan buy impulsively

Active, self-confident menfocused on health & stressreduction. More inclined toshop around than buyimpulsively

Cares about theenvironment. More inclinedto shop around than buyimpulsively. Wants qualityproduct

BrandAttitudes

Less concerned with brandname and more likely to buyfrom emerging one.

Well known brands create asense of product trust.

Less concerned with well-known brands

Less concerned with brandname, but wants highquality

Goals Muscle tone, stress reduction Stay healthy, hobby, stressreduction

Less stress, be healthy,flexibility

Teaching others, Stayhealthy

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Motivations Feel better about body image,Style, Eco-friendly, Injury

Health, flexibility, getting awayfrom family, quiet reflectiontime.

Increased flexibility, Health,Wife/girlfriend, Injury

Love of yoga, Health, Eco-friendly

Needs Peace of mind knowing they are

buying an eco-friendly product

Stress reduction, Weight loss,

Feeling young/sexy

Stress reduction, Flexibility Longevity, Product quality,

Eco-friendly productDecision-makingfactors

Price, Style, Convenience ofshipping

Price, longevity, travel ability,website security, quality

Price, Convenience ofshipping

Price, longevity, quality

People/Influences

Friends and family,Entertainment industry,(Magazines, celebrities)

Co-workers, Yoga instructors,Magazine articles

Family and friends, Yogainstructors

Yoga studio, Yoga school,Co-workers

Expectations Easy site navigation, Fastshipping, Testimonials, Ability toleave reviews

Good customer service(preferably phone), Fastshipping, Website security, Easysite to navigate

Easy site navigation, Fastshipping, Good customerservice, Website security

Easy site navigation, Fastshipping, Testimonials,Ability to leave reviews

What they

think aboutGo Green

Yoga Mats

Simplicity & convenience of

website & shipping. Likesgreen-ness of GGYM. Likesyoga mats with graphics. Maybe unsatisfied with selection

Appreciates website security

features, return policy, and allthe yoga info on the site. Mightbe weary of buying from a newcompany.

Simplicity and convenience

of website & shipping.Appreciates websitesecurity, return policy, andthe yoga info on the site.

Simplicity and convenience

of website & shippingpolicies. Likes green-nessof the company.Appreciates yoga info onsite.

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MARKET TRENDS & GROWTH PATTERNS

Women

According to the US Census Bureau, as of 2008, Women between the ages of 25-44

accounted for 26.18% of the US female population, approximately 40.9 million

people. As a percentage of the total population, this segment is projected decrease

slightly to 25.68% of women by 2020. However, this will still result in a population

increase, to an estimated 43.5 million people in 2020. Overall, the Census Bureau

predicts a slow but steady increase in this population over the next decade.3

Yoga

A 2008 study indicated that almost half (49.4%) of current yoga students began

practicing to improve their overall health, which has grown since 2003 when that

number was 5.6%. Nearly 8%, or 18.3 million Americans, say they are very or

extremely interested in yoga and 4.1% of non-practitioners, or about 9.4 million

people, say they will definitely try yoga within the next year.4

Green

Mintel forecasts that there will be a 19% growth for green products by 2013.5 About

50% of women say are looking for more green options. 37% say they are paying

more attention to brands that are committed to environmental causes and of all the

products in womans shopping carts today, 25% of them are environmentally

friendly.6 30% of American consumers are willing to pay up to a 20% premium on

clean, green products over non-sustainable alternatives.7


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MARKET SIZE AND POTENTIAL

Women72% of yoga practitioners are women who do the main purchasing for thehousehold.

YogaGo Green Yoga Mats market size consists of the entire population of yogapractitioners, approximately 15.8 million people.10

GreenThe green movement is continuing on the rise, growing around 5% per year.11

OnlineIn todays market place more people are buying online, which is currently averagingaround 68 million online shoppers.12 Go Green Yoga Mats has a large market size ofindividuals that shop online for green yoga products.

INDUSTRY ANALYSIS

INDUSTRY OVERVIEW

Size

The NAICS Code is 451110 - Sporting Goods Stores, subsector 454 - non store

retailers. The SIC Code is 5941 - Exercise equipment stores. These two codenumbers represent the industry classifications. The Sporting goods stores industrycontains approximately 18,390 firms13, that vary from online small stores to largenationwide organizations.


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available within the yoga sector and sums up to a 29% increase.2 The NorthAmerican Studio Alliance (NAMSTA) estimates that there are approximately 70,000

yoga teachers in North America.

15

The yoga mat industry clearly will benefit withthis projected increase of yoga professionals.

Yoga instructors now need specialized training in their particular method ofexercise. There are several types of training programs for instructors that rangefrom online programs to programs that give the title of Registered Yoga Teacher.Most yoga studios require teacher to complete a 200-500 hour program which helpsto standardize the industry.16 This allows yoga participants to feel more confident inthe yoga studios and their instructors.

History

Yoga has been around for thousands of years, but really took hold around the1960s as more types of yoga become available for a wider variety of participants.17

Today millions of people practice yoga. The trend is credited to people looking fornatural remedies to health problems and individuals looking to improve their overallhealth and quality of life.18

Economic Factors

The recession has created a new segment of cash-strapped individuals, looking forinexpensive new ways to exercise. Yoga and cardio kickboxing were among thebiggest gainers from 2008 to 2009. Purchases of yoga instructions, mats andsupplies continue to increase in a health and money conscious market place.19During this economic down turn green businesses are still surviving. Manycompanies are seeing the green movement as a way to cut costs and improve theirreputation. Businesses are using the movement to improve operations, fosterinnovation, engage employees and satisfy customers.20 Online shopping is alsobecoming increasingly popular during the recession because consumers canresearch products in advance and find what they want at the least expensive priceout there 21


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YogaDayUSA.org operated by Yoga Alliance (Integrity. Diversity.Community)23

YogaJournal.com continues to expand and provide necessary information forthose with yoga on mind. 24

Blog sites like www.life.gaiam.com provides insightful and up to dateinformation regarding the new current trends taking place in the yogaindustry. The site is well aware that despite the economy and the recession,there was constant growth and expansion in the yoga world.25
http://www.life.gaiam.com/http://www.life.gaiam.com/


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INDUSTRY OVERVIEW

Business description Target Market Revenues

YearEstablis

hed

Link

TradeOrganizations

InternationalYogaAssociation

Membership association to help expandbusinesses and lower costs

Various healing modalitiesbusinesses

--- 1994 www.iyogaassociation.com

UniversalForceInternationalNaam YogaAssociation

Membership association that providessupport, benefits and education in theyoga industry

Teachers and professionalsin the yoga industry

--- --- www.naamyoga.com/association/

Green YogaAssociation

A network, community and resource fordoing yoga and being green.

Yoga studios, instructors,participants and anyone

looking to be more green

--- --- http://www.greenyoga.org/home

Majorcompanies

Gaiam Provider of information, goods andservices to customers who value theenvironment, a sustainable economy,healthy lifestyles, and personaldevelopment

Individuals that value theenvironment, sustainableeconomy, healthy lifestyle,alternative healthcare andpersonal development

Approx.$48million

1988 http://www.gaiam.com/

Barefootyoga Personally designed products as toolsto help achieve more peace andstillness through the practice of yoga

when there is restlessness of the mind,intellect and spirit

Anyone who practicesyoga

--- 1998 http://www.barefootyoga.com/

Yoga-clothing.com

Give customers the best selection ofyoga clothing & accessories from thehottest brands at the great prices andhigh quality customer service

New or experiencedindividuals who practiceyoga

--- --- http://www.yoga-clothing.com/

LululemonAlthetica

Make technical athletic apparel foryoga, running, dancing, and most othersweaty pursuits

Active women and men Approx$292million

1998 http://www.lululemon.com/

MajorSuppliers

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Manduka High quality and performance yogamats that are crafted using simple,enduring, natural, and wheneverpossible, renewable materials

A company built by and forYoga teachers and theirstudents

--- 2000 http://manduka.com/

JadeYoga Committed to making the worlds bestperformance, most eco-friendly yoga

mats, providing the highest level ofcustomer service and giving back tothe earth with every product

All individuals that practiceyoga

--- 2000 http://www.jadeyoga.com/

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INDUSTRY PARTICIPANTS

In the yoga industry the size of organizations varies widely. Many of the larger

organizations have both an online and mortar and brick store. This gives consumers a

chance to see the products in person. For example large organizations include

Luluemon Athletica and Prana, who have both online, and brick and mortar stores.

Gaiam has only online stores. Other organizations tend to be smaller with only online

stores. These stores usually sell a variety of products from various brands, focusing on

lower costs and strong customer service. Some do have their own brand and often

focus on a higher quality product that consumers are willing to pay for. These smaller

companies include Yoga-Clothing.com, Barefoot Yoga.

INDUSTRY TRENDS & GROWTH

Yoga

The yoga industry continues to grow almost every year. According to the National

Sporting Goods Association (NSGA), yoga has the second highest growth rate among

sports and recreation activities. Following closely behind running/jogging, in 2008 yoga

had a growth rate of 17.1% reaching about 16 million participants.26

Complementary and alternative medicine (CAM) has also become increasingly popular

in the past several years. Based on data from 2007 approximately 38% of adults in the

past 12 months spent 34 billion on CAM. Self care accounted for 22 billion of themarket and 4 billion of that was spent on classes such as yoga and tai chi.27


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The U.S Census Report Health and Nutrition (Table 161) "Adults 18 years and over who

used complementary and alternative medicine (CAM) in the past 12 months byselected type of therapy 2002 and 2007" shows that between the years 2002-2007

there was a 26.8 percent increase from 10,386,000 to 13,172,000 in the usage of yoga

practices. A 26.8 percent increase within the 5 year bracket shows that yoga is a

growing industry and an increasingly common method of alternative medicine. 28

Also, the Bureau of Labor Statistics expects that jobs for fitness workers are expected

to increase much faster than the average for all occupations, because of continued job

growth in health clubs, fitness facilities and other settings in which fitness workers areconcentrated.29

Green


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grow, yoga supplies will continue to be in high demand, more companies will move

more toward green methods and online stores will continue to pop up. The market is

expected to grow as individuals become more aware of eco-friendly yoga mats and theavailability of them online.

COMPETITIVE ANALYSIS

COMPETITIVE OVERVIEW

Go Green Yoga Mats is in the yoga industry and is focused on selling eco-friendly yoga

products. Their main competition rests in companies that sell eco-friendly yoga mats,

bags, and props. Go Green Yoga Mats products stand out compared to others by means

of quality and by offering package deals. They also offer a variety of eco-friendly yoga

mats for customers to compare.

Go Green Yoga Mats direct competitors are other online distributers of yoga products.

Some of the competitors compile all the top brand names to sell on their sites.

Consumers will continue to do more research on companies, products and pricing as

more information is available to them online.

Direct competitors: Gaiam, Barefoot Yoga, Yoga-Clothing.com, Manduka and Jade Yoga.

Indirect competitors: include all companies that sell yoga products, but dont offer

green products, or sell their products online.


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who sell solely online. These stores are either well branded or have a wide variety of

options, and have some focus on eco-friendly products. Many companies sell yoga

products as part of a much wider line, such as Amazon, Wal-Mart, etc.


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DIRECT COMPETITORS

GoGreenYogaMats.com

Gaiam Barefoot Yoga Yoga-Clothing.com

Manduka JadeYoga

Years inBusiness

0 20 10 5 10 6

Owner Tyler Jensen Jirka Rysavy Kelly LeFebvre ? Peter Sterios Dean Jerrehian

Est. # ofEmployees

4 70,000 StoresDomestically/20

CountriesDistributed

30 20 25 9

Type of Entity Partnership Corporation Corporation Corporation LLC Corp.

Yearly Sales N/A $263 Million ? ? ? $650,000

CompanyHeadquarters

San Diego, CA Boulder, CO Seattle, WA Ventura, CA San Luis Obispo, CA Conshohocken, PA

# of CountriesCarrying Brand

1 20 1 1 8 7

Average PricePer Mat

$69.60 $34.00 $54.00 $62.00 $69.60 $70.95

Average eco-friendly Package

Price

$185.50 does not offer eco-friendly packages

$60 (includes matand a pair of blocks

only)

does not offerpackages

$136.25 does not offerpackages

Program/Networks/ Charities

Yoga WorldOnline

Linkshare AffiliateNetwork

Facebook bizrate.com Ambassadors Trees for the future

Focus Eco-FriendlyMats & Packages

Eco-FriendlyProducts/DVD's/Sola

r Panels

Yoga Products &Clothing

Yoga Clothing &Mats

Yoga Mats & Products Yoga mats only

Target Market Eco MindedPeople who

practice Yoga

Eco-minded peoplein general

Eco-Friendly yogapeople

Eco-Friendlyclothing buyers

Eco-Friendly yogapeople

Eco-friendly yogapeople

Manufacturing/Importing/

Distributing

Distributor Manufacturing 73%Importing 27%

Importing Importing Importing Made in the USA

Contact Info [email protected]

(877) 989-6321 (877) 227-3366 (800) 620-9642 (805) 544-3744 (888)784-7237

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Strengths Packages Size of Company/Financial Status in

Growth

Focus strictly onyoga products/

simple, easy Website

Focus strictly onClothing/ Simple

Website

Website/ DistributionProgram

Simple/ easy sitenavigation

Weaknesses Margins Low end selection of yoga products

Advertising Not enough info/seems like company

w/o experience

ProductSelection/Needs to

add DVD Program

Lack of accessories/packages

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INDIRECT COMPETITORS

Luluemon Athletica Amazon Walmart Target

Name of

Owner/CEO

Christine Day Jeffrey P Bezos Michael Duke Gregg Steinhafel

CompanyHeadquarters

Vancouver, BritishColumbia

Seattle, Washington Bentonville, Arkansas Minneapolis, MN

Year Founded 1998 1995 1962 1902

Contact Info 604-732-6124 1-866-216-1072 479-273-4000 (612) 304-6073

Website URL http://www.lululemon.com

www.amazon.com www.walmart.com www.target.com

Type ofEntity

Corporation Corporation Corporation Corporation

# of

Locations/Stores

110 Online only 8,400 1,750

# ofEmployees

3,219 13,300 2,100,000 351,000

InternationalPresence

Yes Canada, USA,Australia, Japan

Yes Canada, China, USA,France, Germany, Japan, UK

15 countries Only USA

Manufacturing, importing,distributing

Sell in stores and online Sell online only Sell in stores and online Sell in stores and online

Product/Service Summary

Athletic gear Large variety of products-from household goods to

exercise equipment to books

Large variety of products-from household goods to


Large variety of products-from household goods to


TargetMarket

Active women and men Online shoppers Discount shoppers Discount Shoppers

Estimatedannual

revenues forlast 3 years

270 450 million 470-902 million 405 billion 63 65 billion

Pricing Yoga mats - Yoga mats Yoga mats Yoga mats $28 90 dollars $13 100 dollars $12 50 dollars $19 70 dollars

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Strengths Brand Variety of products,inexpensive online store

Discount Store Discount Store

Weaknesses Specific brand for highercost

Online only + shipping costs Inexpensive lower qualityproduct

Inexpensive lower qualityproduct

Strategiesused

High quality products Online Discount products Discount products

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COMPETITIVE ADVANTAGES

Go Green Yoga Mats only carries organic, toxin free, naturally made mats with noexceptions. Their premium yoga mats are made with only all natural products, containno harmful substances like PVC (polyvinyl chloride), and are lovingly crafted usingsustainable green practices. Go Green Yoga Mats products stand out from theircompetitors due to their high quality and package deals. They offer a variety of eco-friendly yoga mats for customers to be able to compare to determine what option isbest for them. The website also contains additional information about yoga soconsumers can continue to gain more knowledge about the industry.

BARRIERS TO ENTRY

There are few barriers to entry in the yoga product distribution industry, due to thenature of the industry and the organization being online. The most relevant barrier ofentry for this organization would be brand recognition. Many of the organizations havevery strong brands which get consumers attention and loyalty. Getting our name heardand our website viewed will be the main challenge, though our prices, packages, and

quality of products will be on our side. Marketing and advertising are another potentialbarrier due to the size of the competition and the money they are willing to spend toget there brand noticed.


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MARKETING PLAN

SALES FORECAST

Monthly goals chart:

SalesGoals

May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr 3 yr

TrafficGoals

1,500 1,725 1,984 2,282 2,624 3,018 3,471 3,992 4,561 5,245 6,032 6,937 24,973

Conversion

Rate

.01 .01 .01 .01 .01 .01 .01 .01 .01 .01 .01 .01 .01

# Sales 15 17 20 23 26 30 35 40 46 52 60 69 250

# Sales onE-bay

15 17 20 23 26 30 35 40 46 52 60 69 250

Total #

Sales

30 34 40 46 52 60 70 80 92 104 120 138 500

Avg. SaleAmount

$65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65

Avg.Revenue

$1,950

$2,210

$2,600

$2,990

$3,380

$3,900

$4,550

$5,200 $5,980 $6,760 $7,800 $8,970 $32,500

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MARKETING GOALS

Go Green Yoga Mats marketing goals are to increase our website traffic by 15 percent

each month. They plan for their sales on e-bay to have a similar increase, 15 percent

per month.

POSITIONING

We will position our product as eco-friendly, high quality, and fashionable. "We are notthe Wal-Mart of yoga mats." We will build customer satisfaction through customerservice, fast delivery, and high quality products.

SWOT

Strengths

Sell products in packagesAll Eco-friendly productsHigh quality products at a low price

Yoga information on website

Weaknesses

Low marginsLack of product varietyWeak brand name

Young companySearch engine optimization


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CONFIDENTIAL

BRANDING

Ideal Customer Profile

Go Green Yoga Mats ideal customers are people that currently practice or plan to startpracticing yoga. This group is made up of mostly women between the ages of 23-55,since they are the majority of the market. These consumers often make over $50,000 ayear and are usually college graduates or have families. The consumers tend topractice yoga in order to bring them flexibility, stress relief, muscle tone and more.

They are conscious of their effects on the environment and look to make a difference

by purchasing more eco-friendly products. They are willing to do the research to findthe best price and a company that they trust. These customers like the convenience ofshopping online, but also the ability to get their questions answered when needed.

Core Message

Go Green Yoga Mats is a one-stop shop for eco-friendly yoga mats. Customers can

compare the products and prices of the various brands they offer, and then choose

which one to purchase. They will also use the website for additional information onyoga

Our green philosophy is not only represented by our selection of the best eco friendly

mats but also by the foundations supported by our sales. For every Jade yoga mat we

sell, the foundation Trees for the Future plants one tree. For every Manduka yoga mat

sold, a donation is made to Off the Mat Into the World, a foundation that promotes

taking lessons learned from yoga and applying them to help your local community and

environment.

Where company name came from?


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CONFIDENTIAL

PRICING STRATEGY / SHIPPERS:

Packages Wai Lana Kulae JadeBlac

k

Mat71

Black

Mat85

ProLit

eDeluxeYogi

Eko71

Eko85

Beginne

r

Green

Enviromat

Green

Ecomat

tpECOma

t

tpECOma

tPlus

Travel

Mat

Professio

nalMat68

Professi

onalMat74

Fusion

Mat68

Fusion

Mat74

XWMat

68

XWMat

74

EdgeColle

ctionMat

Wholesalecost

$111 $141 $156

$107 $120 $59 $27 $36 $29 $35 $23 $30 $33 $50 $55 $36 $39 $38

DropShipfee

$5 $5 $5 $5 $5 $5 $3 $3 $3 $3 $5 $5 $5 $5 $5 $5 $5 $5

Our

totalcost

$121 $146 $16

1

$112 $125 $64 $30 $39 $32 $38 $28 $35 $38 $55 $60 $41 $44 $43

Customer price

$199 $225 $275

$199 $225 $99 $45 $60 $39 $47 $48 $60 $65 $100 $110 $72 $78 $75

Profit $78 $79 $114

$87 $100 $35 $15 $21 $7 $9 $15 $25 $27 $45 $50 $31 $34 $22

Profitmargin

39% 32.64%

39% 40.65%

41.3%

31.5%

27.27%

30% 14.28%

15.79%

25.86%

35.71%

36% 40.91%

41.67%

37.80%

38.64%

29.33%

Manduka Bolder Mat Company Natural Fitness Blac

kYoga

Mat71"

Blac

kYogaMat85"

Pro

LiteMat

Eko

Mat71"

Eko

Mat85"

Eko

LiteMat

Boul

derMat

Cos

micBreath

Peac

ePrayer

Fish

Wish

Go

withtheflowTurtl

e

Flow

erPower

Eco-

yogaMat

Jour

ney

Fitne

ssProfessional

Prof

essionalExtr

along

Divin

e

Wholesalecost

$52 $69 $37 $35 $45 $21 $35 $35 $35 $35 $35 $35 $18 $26 $30 $37 $52

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CONFIDENTIAL

DropShipfee

$5 $5 $5 $5 $5 $5 $1 $1 $1 $1 $1 $1 $5 $5 $5 $5 $5

Ourtotalcost

$57 $74 $42 $40 $50 $26 $36 $36 $36 $36 $36 $36 $23 $31 $35 $42 $57

Customer price$85 $99 $68 $70 $89 $42 $49 $49 $49 $49 $49 $49 $30 $40 $55 $60 $90

Profit $28 $25 $26 $30 $39 $16 $13 $13 $13 $13 $13 $13 $7 $9 $20 $18 $33

Profitmargin

29.5%

22.94%

34% 37.50%

39.4%

32% 22.41%

22.41%

22.41%

22.41%

22.41%

22.41%

17.5%

18% 30.77%

25.71%

33%

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CONFIDENTIAL

MARKETING STRATEGIES (PROMOTION & ADVERTISING)

Goal 1- Traffic Goals

To accomplish our traffic goals in November and December we will focus on both paid andunpaid online marketing tactics.

On Paid online advertising we will focus only on Google Adwords only. By using Adwordsanalytics we can monitor our impressions to clicks rate.

In terms of unpaid online marketing tactics, we will focus on SEO & blogging tactics. Futurestrategies could also involve Online PR, Social Media Strategies, & Viral MarketingStrategies.

Goal 2- Conversion Rate

In the first few months we will be primarily focused on creating content and landing pagesthat match the users intent of arriving at the page. (Lower the bounce rate). Secondarilywe will focus on converting the visitor to a sale by making the site easy to navigate, containthe correct information and highly visible calls to action.

Monitoring Results

Go Green Yoga Mats will monitor results through the following methods:

Analyze adwords account. Test various ads, landing pages, keywords, and monitor bounce

rate. Survey customers after checkout (to gather info regarding their shopping experience, site

navigation, etc) and once through a follow-up email three weeks after placing the order (togather info on shipping product quality and customer satisfaction)

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CONFIDENTIAL

3 weeks after their product has been received in order to make sure the process went smoothlyand the consumers are satisfied.

OPERATIONS PLAN

LOCATION

Our customers are located in the United States and are all online. Our competitors are United

States based online suppliers of yoga mats and related products. All of our California sales aretaxed. The community lifestyle that makes up our customer base are those located within the

United States that have started to embrace the movement to Go Green, the more recent trend

of yoga, and also that of conveniently shopping online.

There are two physical locations of our facilities. One office is located in Solana Beach, California

and another in Pacific Beach, California. Our relation with our vendors is not related to our

physical locations because we drop-ship and do not need vendors to physically come to us. There

is no stock carried at these locations so no customers come to them.

STAFFING AND TRAINING

Hunter Jensen, Chief Technology Officer (CTO) and his team of 3-4 staff handle software

development and some marketing at the Pacific Beach office. Tyler Jensen and his team of 3-4

staff handle marketing, operations and customer service at the Solana Beach office

Training is done through an operation manual that is kept for all operations for new staff to reviewand become up-to date with all current practices.

OPERATIONAL PROCEDURES MERCHANDISING

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All GGYM sales are done over the phone or are placed online through ebay and through our

website with a valid credit card currently through do-it order. Eventually, this will be done on net

30-90 day payment terms with our vendors. We only ship within the United States and customersreceive their orders within two to five days of order placement. Refunds are handled through our

customer service intern. We do not manage any inventory as all products are drop-shipped from

our vendors. Our website is updated and organized as to size, color, and availability on an as-

needed basis.

INVENTORY MANAGEMENT PROCEDURES

Go Green Yoga Mats does not carry inventory in-house. Orders are drop-shipped from the

manufacturers. They use a computer database in order to keep track of the products that the

manufacturer has in stock, the specs on each product (color, size, etc.) and to track how much of

what is sold and how often. The computers do most the other work when it comes to re-ordering

and keeping the supply consistent.

QUALITY CONTROL MEASURES

Quality control and customer service are done through refunds and response to questions by

email and phone within a timely manner.

Unhappy customers email us reporting their problems and we then contact the vendor with theissue. Money is returned unless the product has been used or destroyed by the customer.

ADMINISTRATIVE PROCEDURES

Accounting, customer service, marketing, and order fulfillment are handled by Tyler Jensen and a

f h f h S l B h ffi

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development of creative ideas, problem solving and effective and efficient planning in numerous

areas of business. Mr. Jensen is quite knowledgeable in a broad range of growth issues including

strategies for accelerating growth, development of the companys business plan, strategicdirection, sales and marketing, management team development, recruiting and motivating

employees and numerous other operational and strategic issues. Mr. Jensen is a serial

entrepreneur, investor and strategic advisor and he is passionate about assisting other

entrepreneurs.

EXPERIENCE

Co-Founder- www.GoGreenYogaMats.com - Retail industry

January 2009 Present (1 year 5 months)

We currently sell eco friendly yoga mats. Soon to expand to other eco friendly yoga products.

Founder- Coastal Latitude Consulting - Management Consulting industry

January 2008 Present (2 years 5 months)

Founder- The New Wave Project- Internet industry

January 2007 Present (3 years 5 months)

Personal internet incubator. Testing and developing internet business ideas.

Board of Director- Rent a Toy- Consumer Goods industry

September 2008 March 2009 (7 months)

Partner- Ignite It Consulting - Management Consulting industry

CONFIDENTIAL
http://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Co-Founder&currentTitle=cohttp://www.linkedin.com/companies/355036/www.GoGreenYogaMats.com?trk=pro_other_cmpyhttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Founder&currentTitle=cohttp://www.linkedin.com/companies/553241/Coastal+Latitude+Consulting?trk=pro_other_cmpyhttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Founder&currentTitle=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&company=The+New+Wave+Project&currentCompany=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Board+of+Director&currentTitle=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&company=Rent+a+Toy&currentCompany=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Partner&currentTitle=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&company=Ignite+It+Consulting&currentCompany=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Co-Founder&currentTitle=cohttp://www.linkedin.com/companies/355036/www.GoGreenYogaMats.com?trk=pro_other_cmpyhttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Founder&currentTitle=cohttp://www.linkedin.com/companies/553241/Coastal+Latitude+Consulting?trk=pro_other_cmpyhttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Founder&currentTitle=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&company=The+New+Wave+Project&currentCompany=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Board+of+Director&currentTitle=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&company=Rent+a+Toy&currentCompany=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Partner&currentTitle=cohttp://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&company=Ignite+It+Consulting&currentCompany=co


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After running Barefoot Solutions for several years, I have worn many hats. At some point in my

company's history I have played the role of consultant, project manager, programmer, designer,

lawyer, accountant, and janitor. I love new and exciting ideas. I like pushing the envelope withtechnology. I'm interested in securing more contracts for my company, building the portfolio of

sites that my company owns, and partnering with other entrepreneurs on their ventures.

EXPERIENCE

Founder/CTO -Anttenna LLC - Privately Held; Computer Software industry

October 2009 Present (8 months)

Anttenna is a free mobile application that facilitates real-time, location-based, person-to-person

exchanges. By turning traditional classified listings into geo-tagged twitter sized microlistings,

Anttenna lets you quickly connect with people nearby. Got an extra ticket? Need an extra ticket?

Lost your dog? Having a yard sale or an open house? Just post a quick mobile microlisting.

As CTO, I focus on product development. This includes the web properties, the iPhone app, and

the upcoming Android and Blackberry apps.

Owner/Founder/CEO - Barefoot Solutions, LLC

Privately Held; 1-10 employees; Computer Software industry

2003 Present (7 years)

I am the Founder/Owner/CEO of Barefoot Solutions, LLC. My position involves overseeing my team

of project managers, graphic designers, programmers, and other web development specialists. Italso involves seeking out clients and securing contracts for web development projects.

W it PHP A hit t C t S ft i d t

CONFIDENTIAL
http://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Founder/CTO&currentTitle=co&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/companies/756803/Anttenna+LLC?trk=pro_other_cmpy&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Owner/Founder/CEO&currentTitle=co&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/companies/248506/Barefoot+Solutions,+LLC?trk=pro_other_cmpy&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Writer&currentTitle=co&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&company=PHP+Architect&currentCompany=co&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Founder/CTO&currentTitle=co&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/companies/756803/Anttenna+LLC?trk=pro_other_cmpy&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Owner/Founder/CEO&currentTitle=co&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/companies/248506/Barefoot+Solutions,+LLC?trk=pro_other_cmpy&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&title=Writer&currentTitle=co&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2http://www.linkedin.com/search?search=&sortCriteria=R&keepFacets=keepFacets&company=PHP+Architect&currentCompany=co&goback=.fps_Hunter+Jensen_*1_*1_*1_*1_*1_*1_*1_Y_*1_*1_*1_false_1_R_true_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2


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FINANCIAL PLAN

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Sales Table

SalesMonth 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month10

Month 11

Month12 0 1 2

Unit sales(units):

website sales 9 15 30 50 60 70 120 135 150 165 180 195 1,179 2,700 4,500

ebay sales 8 9 10 11 12 13 14 15 16 17 18 19 162 250 500Product 3 0

Product 4 0

Unit prices ($):

website sales 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76 70.76

ebay sales 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00Product 3 0.00 0.00 0.00Product 4 0.00 0.00 0.00

Total sales ($):

website sales 637 1,061 2,123 3,538 4,246 4,953 8,491 9,55310,61

4 11,675 12,737 13,79883,42

6191,05

2318,42

0

ebay sales 600 675 750 825 900 975 1,050 1,125 1,200 1,275 1,350 1,425 12,150 18,750 37,500Product 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Product 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total sales ($) 1,237 1,736 2,873 4,363 5,146 5,928 9,54110,67

811,81

4 12,950 14,087 15,22395,57

6209,80

2355,92

0

Unit cost ($):

website sales 49.53 49.53 49.53 49.53 49.53 49.53 49.53 49.53 49.53 49.53 49.53 49.53 49.53 49.53 49.53

ebay sales 63.75 63.75 63.75 63.75 63.75 63.75 63.75 63.75 63.75 63.75 63.75 63.75 63.75 63.75 63.75Product 3 0.00 0.00 0.00Product 4 0.00 0.00 0.00

Total cost ofsales:

website sales 446 743 1,486 2,477 2,972 3,467 5,944 6,687 7,430 8,173 8,916 9,65958,39

8133,73

6222,89

4

ebay sales 510 574 638 701 765 829 893 956 1,020 1,084 1,148 1,21110,32

8 15,938 31,875Product 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Product 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Total cost ofsales 956 1,317 2,123 3,178 3,737 4,296 6,836 7,643 8,450 9,257 10,063 10,870

68,726

149,674

254,769

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Conversion 0.01 0.01 0.01 0.01 0.01 0.01 0.015 0.015 0.015 0.015 0.015 0.015 0.015 0.015

Traffic 900 1500 3000 5000 6000 7000 8000 90001000

0 11000 12000 13000 15000 25000

9 15 30 50 60 70 120 135 150 165 180 195 2700 4500

SALES CHART

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Telephone ($) $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $60 $1,200 $1,200Insurance ($) $0Supplies ($) $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $600 $750 $1,000Travel ($) $0Depreciation ($) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Amortization ($) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Miscellaneous ($) $0Total General andAdministrative

Expenses $55 $55 $55 $55 $55 $55 $55 $55 $55 $55 $55 $55 $660 $1,950 $2,200Other expenses Consultants ($) $0Legal ($) $0

Credit Card Fees $25 $42 $85 $142 $170 $198 $340 $382 $425 $467 $509 $552 $3,337 $7,642$12,73

7Other Payroll Total Otherexpenses ($) $25 $42 $85 $142 $170 $198 $340 $382 $425 $467 $509 $552 $3,337 $7,642

$12,737

Total expenses ($) $80 $97 $140 $197 $225 $253 $395 $437 $480 $522 $564 $607 $3,997 $9,592$14,93

7

Profit ($) $201 $322 $609 $989

$1,18

4

$1,37

9

$2,31

0

$2,59

7

$2,88

5

$3,17

2

$3,45

9

$3,74

6

$22,85

3 $50,536

$86,21

4Interest exp. ST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Interest exp. LT $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Taxes ($) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net profit ($) $201 $322 $609 $989$1,18

4$1,37

9$2,31

0$2,59

7$2,88

5$3,17

2$3,45

9$3,74

6$22,85

3 $50,536$86,21

4

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CASH FLOW TABLE

Cash FlowMonth1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12 0 1 2

Beginning cash -19

451

41,11

82,10

03,28

04,65

56,94

89,54

012,42

015,58

619,04

0 -22,78

173,30

6

Cash in:

Net profit20

132

260

998

91,18

41,37

92,31

02,59

72,88

53,17

23,45

93,74

622,85

350,53

686,21

4Depreciation &amort. - - - - - - - - - - - - - - -Change in acctspayable - - - - - - - - - - - - - - -

Current borrowing -Long-termborrowing -Increase otherliabilities -

Capital input -Total cash in 201 322 609 989 1,184 1,379 2,310 2,597 2,885 3,172 3,459 3,746 22,853 50,536 86,214

Cash out:

Change in A/R - - - - - - - - - - - - - - -Change ininventory 6 2 5 7 4 4 17 5 5 5 5 5 72 11 58Change other STassets -Capitalexpenditures -Loan repayment -

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(ST)Loan repayment(LT) -

Dividends -

Owner withdrawal -

Total cash out 6 2 5 7 4 4 17 5 5 5 5 5 72 11 58

Net cash flow19

432

060

498

21,18

01,37

52,29

32,59

22,87

93,16

63,45

43,74

122,78

150,52

586,15

6

Cash balance19

451

41,11

82,10

03,28

04,65

56,94

89,54

012,42

015,58

619,04

022,78

122,78

173,30

6159,46

2

BALANCE SHEET

Balance SheetMonth1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12 0 1 2

Current assets:

Cash 194 514 1,118 2,100 3,280 4,655 6,948 9,540 12,420 15,586 19,040 22,781 22,781 73,306 159,462

Accounts receivable - - - - - - - - - - - - - - -Inventory 6 9 14 21 25 29 46 51 56 62 67 72 72 83 142

Deposits - - - - - - - - - - - - - - -Total currentassets 201 523 1,132 2,121 3,305 4,684 6,994 9,591 12,476 15,648 19,107 22,853 22,853 73,389 159,603

Fixed Assets

Capital assets - - - - - - - - - - - - - - -

Less accum depre - - - - - - - - - - - - - - -

Book Value - - - - - - - - - - - - - - -

Other assets - - - - - - - - - - - - - - -

Total assets 201 523 1,132 2,121 3,305 4,684 6,994 9,591 12,476 15,648 19,107 22,853 22,853 73,389 159,603

Current Liabilities

Accounts payable - - - - - - - - - - - - - - -

Short-term notes - - - - - - - - - - - - - - -

Other ST liabilities

Total current liab. - - - - - - - - - - - - - - -

Long-termliabilities - - -

Total liabilities - - - - - - - - - - - - - - -

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Beginning capital - - - - - - - - - - - - - - -

Profit or (loss) 201 523 1,132 2,121 3,305 4,684 6,994 9,591 12,476 15,648 19,107 22,853 22,853 73,389 159,603Owner'swithdrawal - - - - - - - - - - - - - - -Capital-end ofperiod 201 523 1,132 2,121 3,305 4,684 6,994 9,591 12,476 15,648 19,107 22,853 22,853 73,389 159,603

Total liab. & equity 201 523 1,132 2,121 3,305 4,684 6,994 9,591 12,476 15,648 19,107 22,853 22,853 73,389 159,603

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FINANCIAL ASSUMPTIONS

Assumptions

Reccurrent ratios

Average account receivable days 30

Average account payable days 1

Inventory days 0

% of sales in cash 100%

% of purchases in cash 100%

% of payroll for taxes & benefits 20%

Short-term interest rate 10

Long-term interest rate 10

% tax rate, federal plus state

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Average COGS for website 70%

Average COGS for EBAY 85%

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biz plan sample (intern1 tnwp's conflicted copy 2010-03-11)

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