earth elements business plan

8/8/2019 Earth Elements Business Plan

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Earth Elements

Business Plan

Nicole Silva



Mission Statement

Earth Elements’ mission is to inspire the alternative athlete by bringing the fun back into the outdoors with

high quality clothing and equipment for the ever-changing environment.

Image Statement

• At Earth Elements we want to provide a comfortable atmosphere where children and their parents

can come to purchase equipment designed for recreational use. We are determined to make sure that

people are able to take the time to enjoy what the Earth has given them in a positive and healthy

manner. It is important that our customers are happy with their products and they feel comfortable

in purchasing products from a local, non-chain store. At Earth Elements we want the customer to

know that we are here to provide for their enjoyment and needs. It is important for us to give

exceptional service that generates a loyal clientele.

Product/Service

• Earth Elements’ products are designed to target outdoor sports for all seasons that vary from

skateboarding, surfing, wakeboarding, and snowboarding. Each product at our store has been

carefully chosen to meet the individual’s needs. Such products will include apparel: tee shirts, pants,

shorts, dresses, jackets, swimwear, socks, shoes, and sweatshirts. Hard goods such as skateboards,

snowboards, wakeboards, and surfboards. Accessories such as sunglasses, watches, scarves, gloves,

helmets, handbags, backpacks, and messenger bags.

• Earth Elements will carry all brand name products that pertain to the alternative sports industry.

Some names include: Burton, Hurley, Quicksilver, Spit Fire, DC Shoes, Etnies, and Volcom.

Location and Market Scope

• Location: Laguna Beach, CA

• Laguna Beach is located in a dramatic coastal location. Known for its growth in tourism, influence of

the arts, and an active citizenry with a strong internal sense of community is the main factors in

shaping the City’s history.

• Laguna Beach is located near many growing communities including Dana Point, Laguna Niguel,

Laguna Woods, Irvine, Newport Beach, and Orange County. With an increase in population there is

an increase in tourism.

• Earth Elements’ grand opening will take place in early July of 2010.



Funding and/or Offering

Current Funding Sources

• Earth Elements is a sole proprietorship and will start the store with 50% of its funding from personal

finances and 50% from investors. We will use Bank of America for our main investor. Success Factors

Five Success Factors

1. The population of Laguna Beach has grown 1.83 percent since 2000. The recent job growth

is positive with an increase of .78 percent.1 With a positive job and population growth it

would be sensible to open a new business in Laguna Beach.

2. Significant external impact on Laguna Beach within the last 30 years has been due to the

dramatic growth of the surrounding communities in Central and South Orange County.

These cities have been growing faster than Laguna Beach. The population in Orange County

grew 13.5% and housing stock by 9.1% between 1990 and 1999. In comparison with a 5.0%

growth for Laguna Beach during these years. 2

3. Laguna Beach currently only has one shop that meets the existing demand for this product,

Laguna Surf Shop, 1088 South Coast Highway. 3 The closest shop located next to Laguna

Beach is Dana Point. With Laguna Beach being located directly on the water it is necessary

to provide customers with an efficient supply of products.4. As of November 4, 2008 the United States voted in democrat Barack Obama into office.

Obama had declared the United States needs emergency assistance for small businesses. He

calls for a “small business rescue plan” of tax incentives and loans.

5. During Obama’s campaign platform called for proposals for eliminating capital gains tax on

gains from investments in startups and for a tax credit for businesses that offer workers

health care. He also calls for the SBA’s loan guarantee programs to temporarily eliminate the

fees they charge lenders and agencies to increase the guarantees it offers to banks that lend

to qualifying small companies.

1 www.bestplaces.net/city/Laguna_Beach-California.aspx2 www.lagunabeachcity.net/community/visionlaguna/ataglance/vlgl-pg33a.pdf 3 maps.google.com/maps?hl=en&rlz=1G1GGLQ_ENUS304&um=1&ie=UTF-8&q=skate+and+surf+shops+in+laguna+beach&fb=1&sa=X&oi=local_group&resnum=1&ct=image



Section Summaries

Company Overview

• Earth Elements’ basic business concept is to bring the fun back into the outdoors by delivering

high quality goods for the alternative athlete. In order to deliver high quality we will have fivecompany objectives within the first year, which are increase foot traffic, become more involved

with the community, maximize long-term profits, develop a strong online site, and have superior

customer service. Within the first three years our objectives are to have growth in revenue,

growth in earnings, and expand sales to existing customers. Earth Elements’ basic orientation

will have a basic orientation of market and volume.

Market Analysis

•

The ideal client at Earth Elements lives an alternative lifestyle that is relaxed and free of everyday worries. They have satisfied the three lower levels of Maslow’s Hierarchy of Needs. The

customer’s buying motivators are based on self-expression, self-esteem, entertainment,

technology, and image. The marketing environment is strong due to the increase population in

nearby cities and growth in tourism.

Market Strategy

• The image of Earth Elements is to provide a comfortable atmosphere where children and their

parents can come to purchase equipment designed for recreational use. We will carry brand name

products that pertain to the alternative sports industry. The pricing strategy that will consist of

product bundling and promotional pricing and the markup plan that will be based around a

standard 300 percent. The distribution of products will be in-store with over the phone

purchases.

Operations Plan

• Earth Elements do extensive trend and forecasting by attending various conventions throughout

the United States. Such conventions include The California Xtreme Sports Show, Magic in Las

Vegas, Nevada, and ASR (Action Sports Retailer Convention). Records of all hiring, firing,

benefits, inventory, and taxes will be saved in three areas. In written form, in-store computer

database, and out-store computer database. All new hires will go through a four part hiring

process that will consist of five days.



Financial Plan

• For the first year Earth Elements will have a total income of $424,600. A gross profit retail of

$237,545 with a 57% gross margin retail. Rent will be $14,400 per year with a loan payment of

$13,700. We will spend $8,288 on annual advertising. Total profit will be $531 within the first

year.

Appendices

• Including in the appendices will be various marketing tools including a resume and business card.

Product images, city maps of Laguna Beach and the surrounding cities, bus and metro routes,

and signage of Earth Elements.



Owner & Organization

Basic Business Concept

• Earth Elements is an alternative sports store that inspires the alternative athlete by bringing the fun

back into the outdoors. It is important to deliver high quality clothing and equipment for the ever-changing environment and active lifestyle that the alternative athlete leads. It is our commitment to

be fully involved within the community as well as giving back. We have donated our walls to local

artists and created a skate ramp in the back in order to provide a relaxing and comfortable

atmosphere. It is a place where people can come and hangout with their friends and family. It is our

goal to create an environment that is family oriented.

Legal Form and Ownership

• Earth Elements’ legal form of ownership is a sole proprietorship. The sole proprietor is the owner of all assets of the business and its profits generated.

Organizational Chart (Please see chart below)• Owner: Nicole Silva • Accountant: Julie Cox • Lawyer: Paul Wentworh



3. Develop a strong online site

It is important for Earth Elements to have multiple means of communication. We

will showcase new and featured items, promotions, events, and charities that will

take place inside and outside the shop.

4. Superior customer service

In order to develop a superior customer service Earth Elements will have extensive

training in how to handle and communicate with our clientele. Every employee will

be required to attend a yearly customer service class. The class will be three hours

that will guide the employee through various situations and the process of handling

them.

• Three company objectives within the first three to five years

1. Growth in revenue

In order to have a growth in revenue we must obtain a strong clientele base. Thismust be done by having superior customer service, increase in foot traffic, and

higher output in products.

2. Gain a loyal customer base

By gaining a loyal customer base it will ensure a foundation for the business and that

we will have returning customers that will purchase our products. With a stabilized

customer base it will ensure that we can minimize the potential for loosing money if

we don’t get new customers to purchase products.

3. Expand sales to existing customers

By giving exceptional customer service Earth Elements will become more familiar

and aware of our customer’s needs. This will enable our employees to suggest new

products that will complement their existing ones.

Create a website where customers can purchase new and existing products online.

Company Resources

• Management- Earth Elements’ management will be based off having one owner and one manager

that helps in assisting the owner and keeping track of all employees.

• Financial- Earth Elements will use personal finances and loans/investors. We will use Bank of

America for a small business loan. The decision to use Bank of America is based upon previous

experience with personal accounts.

• Market- Laguna Beach is located in a dramatic coastal location. Known for its growth in tourism,

influence of the arts, and an active citizenry with a strong internal sense of community is the main



Customer Profile

Demographics

• Gender: Male and Female

•

Age: Baby Boomers, X Generation, and Millennial • Family Size: Single, Married, with Kids

• Family Life Cycle: Starting a family to having an empty nest

• Income: $30,000-$115,0004

• Occupation: Administrative, Customer Service, Executive, Financial, Government, Health Care, and

Artist/Designer5

• Social Class: *Blue Collar or employees who perform manual labor.6

*White Collar or employees who perform knowledge work, such as those in

professional, managerial or administrative positions.7

• Education: High School Diploma, Undergraduate, Bachelors, Masters

• Religion: Any religious background

• Race: White, Black, Hispanics, Mix

• Nationality: Local customers and tourists

California Demographics

Population 33,871,648Male 16,874,892Female 16,996,756Married 26,076,163Single 7,843,907

Separated 642,670 Widowed 1,457,818Divorced 2,474,567Number of Households 11,502,870 Avg Household Size 2.87 Avg Family Size 3.43Median Age 33.30

Median Household Income $47,493

Average Household Income $11,512,020

Per Capita Income $22,711 White Collar Jobs 11,408,326Blue Collar Jobs 14,434,264Employed 14,718,928Unemployed 1,110,274

profiles.nationalrelocation.com/California/

4 claritas.com/MyBestSegments/Default.jsp5 payscale.com/research/US/State=California/Hourly_Rate6 www.investorwords.com/506/blue_collar.html7 answers.com/topic/



• A typical workday for Earth Elements’ ideal customer would start around 6AM. The morning would

follow as a day off, but after breakfast they would drive to work in their BMW or Volkswagen. The

workday would last from 9AM-5PM. They would have packed all their surf gear so they can venture

to the beach to ride some late afternoon waves before heading home for dinner. Dinner would take

place with friends or family. The night would end just the same as a typical day off except there

would be no drinks at the local pub.

Free Time Activities

• Laguna Beach is a destination that is build around tourism and art. Many of the tourism features

include Captain Dave’ Dolphin and Whale Safari, Dana WharfOcean Adventures, and Laguna Beach

Tours. Also, Laguna Beach offers a variety of Art Festivals throughout the year that include Pageant

of the Masters, Festival of Arts, Sawdust Art Festival, and Art A Fair 8 • Skateboarding Rollerblading Snowboarding Skiing

• Wakeboarding Surfing Bowling Pool

• Magazine Reader: Transworld, Thrasher, The Skateboard Magazine, Powder Room

• Books: How to Build Skateboard Ramps, Hawk: Occupation Skateboarder

• Television: Simpsons, Heroes, South Park, DC Skateboarding, CSI, Smallville, Grey’s Anatomy,

Bones

• Music: Hip Hop, Punk Rock, Classic Rock, Electro, House, Rap, Jazz, Metal

•

Movie: Lords if Dog town, Grind, Trashin’, Stoked, Breakin’ 2: Electric Boogalo

8 lagunabeach.com/activity.html



Buying Motivators

• The ideal clientele of Earth Elements are those that have satisfied the three lower levels of Maslow’s

Hierarchy of Needs. Earth Elements’ customers have satisfied their physiological, safety, and need of

love/belonging. They are placed in between the need for esteem and need for self-actualization. The

clientele that is in the need for esteem needs both self-esteem and esteem from others. Humans tend

to need to feel stable, firmly based, and with high levels of self-respect, and respect from others.

Once these needs are met a person feels self-confident and valuable.9 The other half of the clientele

is in need for self-actualization. This need is best described as one who has met all levels of the

Hierarchy and now feels as if they need to be and do what they were “born to do.” 10 An example of

this would be Norman St. Clair who came to Laguna Beach to paint. 11

Maslow’s Hierarchy of Needs

ruralhealth.utas.edu.au/comm-lead/images/Maslows-needs-Pyramid.jpg

• It is important that Earth Elements has a clear understanding of what their clientele’s buying

motivators are based around. This could be anywhere from understanding the necessary product line

during certain times of the year to sales promotions and demonstrations.

• Many of these include:

• Season Change New Product lines Videos

• Magazines Brand Loyalty Occasions: Holidays

• Sales Promotions Demonstrations Fashion Shows

9 Simons, Irwin, and Drinnien10 honolulu.hawaii.edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow.htm11 orangecounty.net/cities/LagunaBeach.html#history



Market Location and Scope

• Location: Laguna Beach, CA

• Laguna Beach is located in a dramatic coastal location. Known for its growth in tourism, influence of

the arts, and an active citizenry with a strong internal sense of community is the main factors in

shaping the City’s history. It was the Ute-Azteca Indians that first inhabited Laguna’s coastal plain.

Laguna Beach is characterized by its hidden coves of the pacific coastline and a unique blend of steep

cliffs, rolling hills, and deep canyons. It was the late 1800s that homesteading families arrived in

downtown Laguna to stack their land whereas they served their summer vacations in hopes of

relaxation by the sea. Hotels were among the first to be established in Laguna Beach, with the

Laguna Hotel (1896) that still accommodates tourists to this day. 16

• It was Norman St. Clair that arrived in

Laguna Beach with 30 to 40 other artists inhopes of finding ideal weather and

magnificent scenery; these were the

individuals that collectively established the

City as an artist colony in 1917. It was these

individuals that envisioned the Festival of

Arts during the Depression as an income-

producing event, which in the end created a

tradition that also included the world-

renowned Pageant of the Masters.

• To the right is a map of Laguna Beach,

California.

www.wherela.com/images_maps/oc_map_laguna2.jpg

16 www.lagunabeachcity.net/community/visionlaguna/ataglance/vlgl-pg05a.pdf



Market Size and Growth Rate

• As of 2007, Laguna Beach’s population was 24,161 people. The population has grown 1.83 percent

since 2000. The median home cost was $1,329,200 with the appreciation of the last year being .89

percent. The unemployment rate in Laguna Beach is 2.60 percent with the US average being 4.60

percent. The recent job growth is positive with an increase of .78 percent. 17 With a positive job and

population growth it would be sensible to open a new business in Laguna Beach.

• Significant external impact on Laguna Beach within the last 30 years has been due to the dramatic

growth of the surrounding communities in Central and South Orange County. These cities have been

growing faster than Laguna Beach. The population in Orange County grew 13.5% and housing stock

by 9.1% between 1990 and 1999. In comparison with a 5.0% growth for Laguna Beach during these

years. 18

• Below is a graph showing the population and population projection growth for Laguna Beach and

other neighboring communities.Community 1999

PopulationPopulationGrowth

1990‐1999

Population

Projection

2000-2020

Median

Home

Value

Median

Household

Income

DanaPoint 37,343 17.0% N/A $337,100 $54,516

LagunaBeach 24,325 5.0% 1.7% $463,000 $65,382

LagunaHills 30,757 29.3% ‐3.5% $239,300 $40,489

LagunaNiguel 57,836 32.2% 6.8% $305,312 $68,738

LagunaWoods 19,496 N/A N/A $174,900 $40,612

Irvine 133,700 23.7% 9.3% $294,700 $68,738

NewportBeach 72,623 11.0% 1.5% $500,001 $60,374

OrangeCo. 2,775,619 13.5% 13.2% $275,743 $56,352

www.lagunabeachcity.net/community/visionlaguna/ataglance/vlgl-pg33a.pdf .

Attractive Features

• Laguna Beach is located near many growing communities including Dana Point, Laguna Niguel,

Laguna Woods, Irvine, Newport Beach, and Orange County. With an increase in population there is

an increase in tourism. Also the OCTA transportation system runs from 5:30AM to 10:00Pm

allowing tourist accessible transportation without having to use a car, which could take up more time

due to the unpredictability of traffic. Fares are as low as $0.50 and run up to $3.75. 19

Difficulties and Problems

• Laguna Beach has a medium crime rate averaging on a level from 1 to 10 at a 5. This could

potentially be dangerous for new and existing business owners due to possible robberies.20

• Due to the coastal living Laguna Beach’s cost of living is higher, but is counter attacked with higher

wages.

17 www.bestplaces.net/city/Laguna_Beach-California.aspx18 www.lagunabeachcity.net/community/visionlaguna/ataglance/vlgl-pg33a.pdf 19 www.octa.net/20 www.cityrating.com/citycrime.asp?city=Laguna+Beach&state=CA



Existing Demand for Product

• Laguna Beach currently only has one shop that meets the existing demand for this product, Laguna

Surf Shop, 1088 South Coast Highway. 21 The closest shop located next to Laguna Beach is Dana

Point. With Laguna Beach being located directly on the water it is necessary to provide customers

with an efficient supply of products. To go beyond the envelope Earth Elements will also carry

winter products due to Big Bear Mountain being 112 miles away, equaling a 2-hour drive.22 Also, Big

Bear Mountain is open year round encouraging people to snowboard more often.

21 maps.google.com/maps?hl=en&rlz=1G1GGLQ_ENUS304&um=1&ie=UTF-8&q=skate+and+surf+shops+in+laguna+beach&fb=1&sa=X&oi=local_group&resnum=1&ct=image 22 maps.google.com/maps?hl=en&rlz=1G1GGLQ_ENUS304&um=1&ie=UTF-8&q=skate+and+surf+shops+in+laguna+beach&fb=1&sa=X&oi=local_group&resnum=1&ct=image



SWOT Analysis

• A SWOT analysis is a critical set of steps in a planning exercise is to perform internal assessments

(including an analysis of performance against previous plan) and external assessments (including an

analysis of the operating environment) that result in the identification of strengths, weaknesses,

opportunities, and threats.

• Strengths are the organization’s strong points. It is a resource advantage related to competitors. The

weaknesses are limitation or deficiency in one or more resources or competencies relative to

competitors. The opportunities are favorable events or circumstances that may help a company to

achieve its objectives or gain a Competitive advantage. Threats are unfavorable situations in a

company’s environment.23

23 www.1000ventures.com/business_guide/crosscuttings/swot_analysis.html

Strengths

Competitors Earth Elements

Name Recognition Locally Owned

Financial Backing Creative Marketing

Well Established Quarter Pipe in House

Have own Designers Support Local Activities

Opportunities


Promotion Community Supporters

Brand Loyalty Customer Service

Expansion Loyal Clientele

Technological Advances Immediate Feedback

Weaknesses


Cluttered Stores Product Variety

Internet Services Sole Proprietor

Immediate Feedback Financial Backing

Non Personal Organization

Threats


Competitors Competitors

New Designs Gas Prices

Surveys Team Riders

Shipping Prices Over Stock



Marketing Environment

Economic Issues

National Level

• National Unemployment- On the national level the unemployment rate rose from 6.1 to 6.5

percent during October of 2008, with the number of unemployment persons increasing from

603,000 to 10.1 million. In the past twelve months the number of unemployment persons has

increased by 2.8 million and the unemployment rate has risen by 1.7 percentage points, with the

largest amount of increase within the past three months. During the month of October the number

of involuntary part-time workers rose from 645,000 to 6.7 million. Job losses have continued in

manufacturing, construction, and service providing industries. Healthcare and mining jobs have

continued to increase. The amount of unemployed adult men is 6.3 percent, adult women 5.3

percent, whites 5.9 percent, Hispanics 8.8 percent, blacks 11.1 percent, Asians 3.8 percent, and

jobless teenagers is 20.6 percent. 24 By opening Earth Elements it is opening potential jobs for the

people of Laguna Beach.

• National Labor- In the United States the top ten companies to work for as of October 2008 are as

follows: Google- 8,134 U.S. employees, Quicken Loans- 4,920 U.S. employees, Wegmans Food

Markets- 35,302 U.S. employees, Edward Jones- 31,451 U.S. employees, Genentech- 10,842 U.S.

employees, Cisco Systems 32,160 U.S. employees, Starbucks- 134,013 U.S. employees, Qualcomm-

10,095 U.S. employees, Goldman Sachs- 13,764 U.S. employees, and Methodist Hospitals System-

10,481 U.S. Employees. 25

• National Hourly Wage- Women who worked full time averaged median earnings of $631 per week,

or a 79.3 percent of the $796 median of men. The female to male earnings ration are higher among

Hispanics with an 88.0 percent and blacks with an 82.0 percent, compared to whites with 79.0

percent and Asians with 75.3 percent. Black men working a full time job had median earnings of

$646 per week, compared to white men averaging a median of $816 per week. Black women had an

earnings median of $530 per week while Hispanics had an earnings median of $529 per week

working full time. 26

• National Minimum Wage- As of July 2008 the national minimum wage raised $1.60 from $5.85 to

$6.55 and will raise another $0.70 to $7.25 in July of 2009. 27 Earth Elements will beat the national

minimum wage in order to satisfy employees.

24 www.bls.gov/cps/25 money.cnn.com/magazines/fortune/bestcompanies/2008/full_list/index.html26 bls.gov/news.release/pdf/wkyeng.pdf 27 laborlawcenter.com/t-State-Minimum-Wage-Rates.aspx?gcild=CJvAxZUCFQZqswod-31sig



State Level

• State Unemployment- As of September of 2008 California has 1,425,049 people unemployed

with a 7.7 percent unemployment rate. This puts California up there with Mississippi, rating it

one of the top three highest states to have unemployment. Over 60,000 salaried and self-

employed jobs were lost from July to August and 240,000 jobs were lost since 2007. At the

moment California has 17,067,147 people employed. 28 With California having one of the highest

unemployment levels it would be a positive impact to open a new business that requires hiring

people.

• State Labor- The top ten companies to work for in California are as follows: Adobe Systems

(San Jose)- 1,962 U.S. employees, Adobe Systems (San Francisco)-744 U.S. employees, Alcon

Laboratories (Irvine)- 618 U.S. employees, American Century Investments (Mountain View)- 108

U.S. employees, American Fidelity Assurance (Ontario)- 44 U.S. employees, Arnold and Porter

(Los Angeles)- 113 U.S. employees, Bingham McCutchen (San Francisco)- 351 U.S. employees,Cisco Systems (San Jose)- 16,338 U.S. employees, eBay (San Jose)- 3,970 U.S. employees. 29

• State Hourly Wage- Listed below is California State’s median hourly rate by job.

payscale.com/research/US/State=California/Hourly_Rate

• State Salaries- Listed on the next page is California income statistics based on their jobs and age. It

shows that a majority of residents between the ages of 45-54 have the highest income averaging

between $80,000 and $100,000.

28 www.bls.gov/lau/

29 money.cnn.com/magazines/fortune/bestcompanies/2008/states/CA.html



California Income & Jobs

$0-10,000 164,256$10,000 - $14,999 648,780$15,000 - $24,999 1,318,246$25,000 - $34,999 1,315,085

$35,000 - $49,999 1,745,961$50,000 - $74,999 2,202,873$75,000 - $99,999 1,326,569$100,000 - $149,999 1,192,618$150,000 - $199,999 385,248Over $200,000 409,551

profiles.nationalrelocation.com/California/

neighborhoods.realtor.com/CA/Mission-Viejo/Laguna-Beach/447498/Demographics/

• State Minimum Wage- The California state minimum wage effective of January 1, 2008 is

$8.00 per hour. It increased $0.50 from $7.50 from January 1, 2007. This was a 6.7 percent

increase from 2007. 30 Earth Elements will beat California’s minimum wage in order to satisfy

and help employees with their living needs.

County Level

• County Unemployment- Laguna Beach resides in Orange County and had the lowest

unemployment rate of all counties in California. Orange County has an unemployment rate of 5.7

percent with 94,100 people unemployed. The labor force is 1,637,700 with 1,543,600 employed as of

September 2008. 31

• County Labor- The top companies to work for in Orange County are as follows: Allergan Inc.

(Irvine), Boeing CO (Seal Beach), Brinderson Corp. (Westminster), Burger Robert MD New Patients

(Orange), California State-Fullerton (Fullerton), Employers Resource Inc. (Tustin), First American

30 dir.ca.gov/Iwc/MinimumWageHistory.htm31 labormarketinfo.edd.ca.gov/cgi/databrowsing/localAreaProfileQSResults.asp?selectedarea=Orange+County&selectedindex=30&menuChoice=localAreaPro&state=true&geogArea=0604000059&submit1=View+the+Local+Area+Profile



Title Ins. Co. (Santa Ana), Hoag Hospital (Newport Beach), Hoag Hospital Presbyterian (Newport

Beach), Jones Lang La Salle (Brea). 32

• County Hourly Wages- Listed below is the median salary by job in Orange County.

payscale.com/research/US/City=Orange_County/Salary

Social Issues

• Laguna Beach is part of a citywide effort to get people off the streets. The city is taking actions

against ending panhandling, public urination and camping. The homeless issue was labeled the No 2

issue in Laguna Beach by residents and business owners. It is important to take action in helping the

homeless in order to secure a clean image for Laguna Beach businesses. Laguna Beach has been

looking to expand the city’s Resource center, which offers meals, groceries, clothes and other services

to those in need. City officials hope to enlarge the facility in order to make it a one-stop-shop with

mental health aid and substance abuse counseling.33

Cultural Issues

• Laguna Beach has a long-standing status as the county’s biggest art colonies. In the early 1900’s San

Francisco watercolorist Norman St. Clair arrived by stage and started painting the surroundings. He

persuaded other artists to follow in his footsteps. Within ten years more than thirty artists had had

settled in the coastal village. In 1918 the Laguna Art Association was formed, which still exists today.

By the early 1930’s artists created two of the most popular and enduring annual events: the Festivalof Arts and the Pageant of the Masters. Laguna Beach is now known as the “Creative Getaway.”34

The walls at Earth Elements will consist of murals painted by local artists, which overall will create a

“creative getaway.”

32 calmis.ca.gov/file/MajorER/countymajorer.cfm?CountyCode=00005933 xml.latimes.com/news/local/inland/la-me-homeless24apr24,1,4854544.story34 orangecounty.net/cities/LagunaBeach.html#history



Religious Issues

• Listed below are the top ten largest faith groups in Orange County according to the University of

Southern California as of 2000. Earth Elements will not be affected by religious views or issues. The

store is open to all religious types.

Religious Group Number of temples, churches,mosques, or synagogues

Number of adherents

% of totalpopulation

% of totaladherents

Roman Catholic 61 779,647 27.4 61.2

Jewish 28 60,000 2.1 4.7

S. Baptist Conv. 77 32,652 1.1 2.6

Mormon 115 48,776 1.7 3.8

Muslim 16 39,583 1.4 3.1

Ind Charismatic 13 43,100 1.5 3.4

Presbyterian USA 38 25,740 0.9 2

Assembly of God 71 21,918 0.7 1.7

Evangelical Luth.Ch. Amer.

37 22,140 0.8 1.7

Missouri SynodLutheran

30 19,073 0.7 1.5

www.usc.edu/schools/college/crcc/demographics/orange.html

Legal/Regulatory/Tax Issues

• Many of California’s cities, counties, towns, and communities have special taxing jurisdictions

(districts), which impose transactions (sales) and use tax. These districts increase the tax rate in a

particular area by adding the district tax to the combined statewide rate of 7.25% (effective January

1, 2002). The rates for these districts range from 0.10% to 1.00% per district. More than one district

tax may be in effect in a given location. According to the Orange County Local Transportation

Authority Orange County has a 0.50 percent district tax combined with state and local tax equaling

7.75 percent. Laguna Beach has a 2.00 percent tax including state and local tax equaling 8.26

percent.35

• Personal Income Tax

California collects income tax from its residents at the following rates.

For single and married filing separately taxpayers:

-- 1 percent on the first $6,827 of taxable income

-- 2 percent on taxable income between $6,828 and $16,186

-- 4 percent on taxable income between $16, 187 and $25,546



-- 9.3 percent on taxable income of $44,819 and above.

35 boe.ca.gov/pdf/pub71.pdf



A 1 percent surcharge is collected on taxable incomes of $1 million or more, making California's

highest marginal rate 10.3 percent.

For married persons filing joint returns and heads of households, the rates remain the same but the

income brackets are doubled.36

Political Issues

National Level

• As of November 4, 2008 the United States voted democrat Barack Obama. Obama had declared

the United States needs emergency assistance for small businesses. He calls for a “small business

rescue plan” of tax incentives and loans.

“Small businesses employ half of the workers in the private sector in this country, and

account for the majority of the job growth. But we also know that a credit crunch has dried

up capital and put these jobs at risk - shops can't finance their inventories, and small firms

can't make payroll," Obama said at a rally in Chillicothe, Ohio. "If we don't act, we'll be

looking at scaled back operations, shuttered shops, and laid-off workers."

• During Obama’s campaign platform called for proposals for eliminating capital gains tax on

gains from investments in startups and for a tax credit for businesses that offer workers health

care. He also calls for the SBA’s loan guarantee programs to temporarily eliminate the fees they

charge lenders and agencies to increase the guarantees it offers to banks that lend to qualifying

small companies. Obama compares his “rescue plan” to the steps the government took after

September 11 to rush financial assistance to affected small companies. 37 If this plan is put into

play it will help by cutting the costs of opening Earth Elements, which will mean more money to

put toward other business expenses.

City Level

• Within the past two years downtown Laguna Beach small businesses have been suffering. The

planning commission inclined that they wanted reconstruction of buildings and requested that

architects were hired. None of these recommendations were required by any written law.

Because of the new recommendations small businesses owners are being persuaded not to opena business. This makes room for other businesses not usually accepted in Laguna Beach such as

chain operations because of their financial backing. The information persuades us to look

outside of downtown Laguna Beach, which in the end could benefit our business. By having only

chains in downtown would push people to look elsewhere for more unique products. Laguna

36 bankrate.com/brm/itax/edit/state/profiles/state_tax_Cal.asp37 money.cnn.com/2008/10/10/smallbusiness/obama_smallbiz_rescue.smb/



Beach is known for promoting diversity in their businesses especially in downtown where

tourism is extensive. It is an area that strives on tourism and believes the area should not be

subjected to one type of retail category. A more positive route would be to promote and

encourage what the city wants instead of restricting them to what they don’t want. 38

Technology Advances

• Earth Elements will use laptops and desktops. The desktop will be used as the main cash register for

all sales. Inventory will be used through WIS International inventory system. 39 An internet site will

be established and updated on a daily basis. Products will not be sold through the site, but as an

informational tool as to upcoming events and promotions.

38 www.coastlinepilot.com/articles/2008/11/15/townhall/doc488e5420e63b1642090635.txt39 www.kcsi.ca/index.html



Promotional Plan

Image Statement

• At Earth Elements we want to provide a comfortable atmosphere where children and their

parents can come to purchase equipment designed for recreational use. We are determined to

make sure that people are able to take the time to enjoy what the Earth has given them in a

positive and healthy manner. It is important that our customers are happy with their products

and they feel comfortable in purchasing products from a local, non-chain store. At Earth

Elements we want the customer to know that we are here to provide for their enjoyment and

needs. It is important for us to give exceptional service that generates a loyal clientele.

Marketing Mix

• Product- Earth Elements’ products are designed to target outdoor sports for all seasons

that vary from skateboarding, surfing, wakeboarding, and snowboarding. Each product at our

store has been carefully chosen to meet the individual’s needs.

o A complete line of clothes for the guy or gal who may love to surf but doesn't

necessarily need sand between their toes.40

o Amidst a board short crazed industry, Hurley recognized the need for a more

fashion based Apparel Company and began to add modern cut and sew styles to their

clothing collection.41

o "Youth against the establishment" became the major philosophy of

Volcom to support young creative thinking. From wild and humble beginnings grew one

of the biggest clothing companies in the skate, snow, wake and surf culture. 42

o The modern skateboard shoe.43

40 www.quiksilveredition.com/statement.aspx41 www.wakeside.com/category/brands/clothing/hurley.do42 www.wakeside.com/category/brands/clothing/volcom.do43 www.wakeside.com/category/brands/clothing/dc.do



o A mix of progressive design, classic street wear, and apparel basics.44

o A standard for innovative design and high quality action sport

accessories with all the necessary features.45

• Price

o Price Range- $5.00-$400.00

Items such as socks, wallets, belts, and other accessories will be priced on the

lower end of our price range. Items such as hoodies, jeans, shorts, shoes, and

most clothing items will be around mid-level. These items are considered our

price line items. Most of these items will be anywhere from $85.00-$150.00,

depending on brands. Items such as snowboard, wake boards, boots, and

bindings will be our prestige items and can range anywhere from $150.00 to

$400.00.

o Price Line- $85.00 to $150.00

Such items include most apparel such as hoodies, jeans, shorts, shoes, etc.

o Price Zone- Below is a chart representing Earth Elements’ price range. Area 1

represents the promotional pricing. Area 2 represents volume, what our store is aiming

for. Area 3 is prestige items. Bundling will be used to with all three areas.

• Place

o Earth Element’s freight will be delivered through UPS unless shipped overnight. In that

case Fed Ex will ship the product. Orders on California based goods will be placed once

a month due to the ease and prompt delivery. All other orders will be placed twice a

month unless on special delivery.

44 www.obeyclothing.com/ 45 www.wakeside.com/category/brands/clothing/dakine.do



• Promotion mix

o Advertising- Advertising for Earth Elements will mainly be done through various local

newspapers such as the Coastline Pilot46, Laguna Beach Independent47, and Laguna

News Post48. Each newspaper has an online site for further advertising online. We will

also have an account set up through Myspace in order to advertise to the younger

generation.49

o Direct Marketing- Earth Elements’ will use mailing lists for loyal and frequent

customers to keep them informed about upcoming promotions and events. Flyers will

also be distributed in store and by hand informing of upcoming contests and

promotions.

o Public Relations

Hiring- Hiring will be done in house by application. Each potential hire will be

done by the owner and is subject to an in house interview. Skate Contests- Earth Elements will showcase a skateboarding contest every

three months with promotions on selected items throughout the store.

Charitable Fundraising- We will conduct various fundraising events to

support local charity such as the Laguna Playhouse and the Zelma Basha

Salmeri foundation for advancement of the arts.

o Personal Selling and Sales Promotion

Earth Elements’ employees will be trained on the job in all areas of customer

service, product knowledge, register, and visual merchandising. The store willconsist of eight employees. One store manager and an associate manager who

will work various shifts throughout the week. There will be two sales associates

that will work full time with four part-time sales associates. Weekday and

weekend shifts will consist of one manager or assistant manager. During the

weekdays there will be two sales associates and four on the weekends. The

manager will have a bachelor’s degree in business with the assistant manager

having a high school diploma and potentially working on a college degree. Our

sales associates will either be seniors in high school, high school graduates, or

college students. Since we target the youth, having a younger work force will

contribute to a more active and fun filled environment that enhances the

experience.

46 www.coastlinepilot.com47 www.lagunabeachindependent.com48 www.manta.com/coms2/dnbcompany_fyn3y749 www.myspace.com



Every three months we will showcase a skate competition with sales

promotions on various products. In addition to the skate competitions there

will be a bi-monthly showing of new and old skateboarding, snowboarding,

wake boarding, and surfing videos. This is done in order to generate more

traffic and comfortable atmosphere for customers.

o Internet- Earth Elements will have an Internet site that is updated on a daily basis. It

will be used to showcase in house items and upcoming events. The site will also consist

of a weekly newsletter explaining new in house artists and charity events. We will also

have various social networking sites such as; Myspace, Facebook, Twitter, and

Friendster consisting of the same information. This will be done to generate feedback

from the youth.



Tactical Plan

Twelve Months Prior to Opening

• July 2009

o Research Location

o Inspect Location

o Meet with Neighboring Stores

o Apply for Valid Business License

o Finish Business Plan

• August

o Sign Lease

o Research and Contact Vendors

• September

o Set up Loans

o Meet with Financers

o Sign Contracts with Vendors

• October

o Research Floor Plan

o Research Décor

o Research Local Artists for Inside Design and Signage

o Create Grand Opening Budget

• November

o Contact Local Media Resources

o Create Signage and Décor

o Create Website

o Work on Grand Opening

o Contact Pro Skateboarders for Grand Opening

• December

o Contact Inside Ramp Companies

o Contact Lawyer about Creating Contract for Inside Skateboarders

o Contact Vendors

o Continue Work on Floor Plan

o Draw up Contracts for Pro Skateboarders

• January 2010

o Order Merchandise

o Contact Caterer for Grand Opening



o Contact DJs for Grand Opening

o Continue in Store Setup

• February

o Hire Caterers

o Hire DJs o Start Promotion

o Finish Store Artwork

o Finish Floor Plan

• March

o Finish Inside Skate Ramp

o Install Shelving

• April

o Interview Potential Managers

o Continue Promotion

o Last Minute in Store Touch ups on Exterior and Interior

• May

o Hire Managers and Start Training

o Receive Packaged Merchandise

o Continue Promotion

o Interview Potential Employees

• June

o

Hire Employees o Train Employees Advertise Grand Opening

o Last Minute Touch-ups on Grand Opening

o Confirmation of all Grand Opening Details

• July

o Grand Opening



Grand Opening

• Earth Elements’ grand opening will take place in early July. We have chosen early July because

everyone is already set in the summer spirit. We will have a quarter pipe set out in the back parking

lot ready for customers to ride. We will have the Quicksilver and Roxy skateboarding team come and

help with a mini skate competition. Prizes of all types will be handed out as well as discounts on all

Roxy and Quicksilver items since they are the sponsoring company. Cupcakes, water, fruit, veggies,

and of course red bull for that extra energy will be complementary. There will be local DJs spinning

records as well as well-known MCs. There will be local artists creating artwork for the various

customers and for the shop.



Reach and Frequency Plan

• The chart below represents the sources of media Earth Elements will use for advertising. The Daily

Pilot will be used on a daily basis and is based out of Newport Beach, Costa Mesa, Corona Del Mar,

and Newport Coast Line. The use of this media will produce advertising towards tourists. 50 The

Laguna Beach Independent is the second source of media that targets the Laguna neighborhoods.

This will help with in-town advertising. Last are social networking site such as Myspace, Facebook,

Twitter, and Friendster. These sites are free and target the younger generation, which is a large

demographic for our store.

www.coastlinepilot.com/

www.lagunabeachindependent.com/

www.myspace.com www.facebook.com www.friendster.com

www.twitter.com

ADVERTISING BUDGET

• Advertising for Earth Elements will average to be around $10,575.00 per year. The total amount of

costs will mainly go towards two sources of media. This amount is accessible due to the free

advertising done through the social networking sites.

50 www.coastlinepilot.com/content/current/services/media_kit/media_kit.pdf

Medium Reach Frequency Type MonthlyCost

YearlyCost

Daily Pilot 1,068,400Subscribers

Daily Per ColumnInch

$500.00 $3,710.40

Laguna

BeachIndependent

15,000

WeeklyCirculation

Weekly 1/8

page

$572 $6864.00

SocialNetworking

Sites

90 Million Daily Online $0 $0



Pricing Plan

Pricing Objectives

• Maximizing long term profits while increasing customer satisfaction and building store traffic are

Earth Elements’ main objectives regarding pricing. It is important that we keep the customer

satisfied with their service and value of the purchased product. By attending to all customer needs we

can gain loyal customers that will continue to maximize profits through a long period of time. It is

also important that there is a constant source of foot traffic that can be used as a source of

advertising, word of mouth. Also, we have created a unique inside layout with artwork designed by

local artist that is attractive and eye catching. By continuing to change artists throughout the year it

will encourage customers to visit the store frequently.

Pricing Strategy

• Earth Elements’ pricing strategy will consist of product bundling and promotional pricing. Product

bundling will be our main pricing strategy due to the amount of products it takes to perform any

extreme sport. By marketing products in a package it is increasing sales and lowering transaction

costs. Also, by strategically placing the products in a bundle it is increasing product visibility.

51Promotional pricing will be used to create a higher traffic within the store. Promotional pricing will

be used for specific sales, such as the anniversary sale and bi-monthly video showings.

Markup Plan

• Clothing at Earth Elements will be based around a standard markup of 300 percent. This initially will

cover the costs of the wholesale value and other expenditures. Accessories will have a standard

markup of 350 percent. Accessories are bought on a daily bases and will be a key factor in raising

potential sales.

• On the next page is a chart demonstrating the different markups we would utilize.

51 www.ehow.com/how_2121280_gain-from-product-bundling.html



Products Markup Markdown

Belts, Wallets, Socks 350% 10%-20%30% during yearly sales

Shoes 325% No Markdowns

T-Shirts, Jeans, Hoodies, Dresses 300% 10%-20%

30% during yearly salesBackpacks 325% 10%

20% during yearly sales

Boots, Binding, Polls 350% 10%-20%30% during yearly sales

Snowboard, Wake Board, Skateboards, Skies 300% No Markdowns

Stock Turnover

• Stock turnover is a measure of inventory performance expressed as the ratio of the cost of units sold

to the average value of stoke. When averaging what kind of stock ratio the store has, the cost of

goods can be divided by the amount of stock. Inventory will be taken once a week in order to keep

an accurate account of merchandise. Earth Elements will use cycle counting as their form of

inventory. There will be five sequential steps in the counting of inventory. 52

1. Print out the inventory status from the system

2. Perform the physical count of the item and record your findings

3. Ascertain the correctness of the count by recounting

4. Record the count result in the system

5. If variances occur, post the stock difference.

Markdowns and Sales Plan

• Earth Elements’ markdowns will not be placed frequently due to being a sole-proprietorship. When a

markdown needs to be taken it will be because the item is not selling or it is the change of the season.

Each markdown item will start at a 10% markdown price and gradually end at 30%. The markdown

item will not exceed a 30% markdown in order to maintain a profit and covering expenditures. In the

event that the item is still not selling at a 30% markdown it will have a higher markdown only in the

case of events such as the anniversary sale.

Terms of Payment

• Earth Elements will accept payments in forms of cash, all major credit cards, debit, travelers’ check,

and in-store gift certificates.

52 it.toolbox.com/blogs/sap-library/cycle-counting-inventory-audit-in-sap-business-one-9848



Distribution Plan

How Product Gets to the Customer

• Merchandise will be sold in-store, but can be purchased over the phone. An Internet site will be set

up showcasing the items carried in-house. UPS will be the main source of delivery for phone orders;

however FedEx will be available for an additional cost. Customers will be responsible for all shipping

fees.

Off-Site Sales

• Off-site sales will not be offered through our company. Customers may phone orders in for in-store

pickup or hold. If a customer would like the item shipped they are responsible for all delivery fees.

Earth Elements’ Internet site will be available for viewing, but will not showcase all items and does

not take orders online.

Means of Shipping

• Shipping to customers will be done primarily through UPS with an occasional FedEx delivery. Below

is a list of price ranges that verifies shipping costs that will be billed toward the customer.

Zones 242 243 244 245 246

Letter** $10.25 $10.55 $11.05 $11.95 $12.95

1 Lbs. 10.55 10.85 11.35 12.35 14.552 10.80 11.15 11.65 13.15 16.45

3 10.90 11.50 12.20 14.40 18.90

4 11.25 11.85 13.40 16.80 21.80

5 11.60 12.25 14.55 18.65 24.30

6 12.10 13.00 15.70 20.35 27.00

7 12.55 13.95 17.00 22.25 30.35

8 13.05 15.25 18.20 24.20 33.55

9 13.75 15.85 19.60 25.90 36.45

10 14.40 16.85 21.10 27.70 38.85

www.ups.com/media/en/2008_daily_rates.pdf



Inventory Control

Projecting Seasonal Needs/Buying• In order for Earth Elements to project accurate seasonal needs we will be attending various outdoor

sports workshops and conventions.o The California Xtreme Sports Show is an exciting, two full days of exhibits, demonstrations,

workshops, and fashion, all dedicated to the world of extreme sports. It is held at the Long

Beach Convention Center in Long Beach, Ca., in November. 53

o ASR (Action Sports Retailer Convention) showcases the latest apparel, footwear, swimwear,

accessories and hard good products from over 700 surf, skate, swim, snow, moto, wake,

lifestyle and street wear brands and continues to identify cutting-edge trends that drive the

diverse segments of the action sports industry. ASR takes place at the San Diego Convention

Center, San Diego, California in January. 54

o The MAGIC Marketplace is the preeminent trade event in the international fashion industry,

hosting global buyers and sellers of men’s, women’s and children’s apparel, footwear,

accessories and sourcing resources. As an incubator of fashion, MAGIC is where new trends

surface and develop into what will be seen on the consumer. The show’s goal is to connect

and inspire the fashion community, fuse diverse trends, while offering unbeatable service to

its customers. Magic takes place at the Las Vegas Convention Center on August 31-

September 2.

o The Surf Expo is where manufacturers and retailers in the surf, skate, water sports, swim and

resort industries have come together in a business-first buying and selling environment. Surf

Expo is produced twice annually by dmg world media for manufacturers and retailers in the

Board, Beach and Fashion industries. It features more than 2,400 booths of apparel and

hardgoods and a full line-up of special events, including fashion shows, annual awards

ceremonies, and skate and other boardsport demos. Average buyer and exhibitor turnout

exceeds 15,000 attendees including retailers, exhibitors and media per show. 55

53 http://goflyxc.com/goadmin/california_xtreme_sports_show™54 http://www.grindtv.com/event/asr_january_2009/263/55 http://surfexpo.com



Tracking Stock on Hand

• Inventory will be taken once a week in order to keep an accurate account of merchandise. Earth Elements

will use cycle counting as their form of inventory on hand. There will be five sequential steps in the

counting of inventory. 56

6. Print out the inventory status from the system

7. Perform the physical count of the item and record your findings

8. Ascertain the correctness of the count by recounting

9. Record the count result in the system

10. If variances occur, post the stock difference.

• WIS International will also take inventory externally. WIS International provides physical inventory

counting services to all types of retail outlets. Proprietary technology and a skilled workforce allow

WIS to efficiently and accurately conduct financial or item level inventory counts. They specialize in

Inventory Counting, Warehouse Inventory Counting, Merchandising Services, Fixed AssetInventories, Retail Price Verification and Cycle Counts.

• Accounting will be done by Julie Cox.

Human Resources

Records• Records of all hiring, firing, benefits, inventory, and taxes will be saved in three areas.

1. In written form

2. In-store computer database

3. Out-store computer database

Hiring and Firing

• The hiring process for Earth Elements will consist of four parts.

1. Defining the position- defining what position is and how many hours needed.

2. Draft a position profile- defining qualifications of position in written/computer generated form.

3. Screen and interview

o Request additional information if a preliminary resume review yields questions. For example

if the resume includes references upon request.

o Conduct a short phone interview.

o Schedule a one-on-one interview with potential candidates.

o Check candidates background and previous work experience

56 it.toolbox.com/blogs/sap-library/cycle-counting-inventory-audit-in-sap-business-one-9848



4. Training- five day process

o Day One: Orientation- includes paperwork, getting to know company values, tour, rules, and

obligations.

o Day Two: Company product overview- employee will review in-store products, pricing, and

placement.

o Day Three: Getting to know POS system- employee will review how to process payments

and how in-tore inventory is taken.

o Day Four: Customer service- employee will review steps to assisting customers and what to

do if there is a problem

o Day Five: Shadowing- employee will shadow another current employee

• The firing process will consist of four parts.

1. Give warning for misbehavior.

2. Upon second misbehavior sit employee down in secluded office and explain firing reasons.3. Document firing for legal reasons.

4. Schedule check to be mailed to former employee within the week of fire.

Benefits

• Employees of Earth Elements will get a 20% discount on all apparel. A 10% discount will be given

on hard goods such as snowboards, wakeboards, and skateboards. For hourly employees, if

employed for one year the employee will get two days of paid vacation. For two years employed the

employee will get four days of paid vacation and after three years they will automatically get one week

paid vacation. It will cap after three years at one week paid vacation. Management will automatically

get one week paid vacation each year. Included are medical and dental benefits for them and their

family.



Facilities Maintenance

Janitorial

• Janitorial duties will entail sweeping, mopping, and vacuuming the floors. Dust and polish

equipment. Empties waste receptacles and disposes of trash; maintains restrooms in sanitary

condition, and replenishes supplies. Washes windows, clears parking lot of all trash, and replaces light

fixtures. Janitorial duties will be done daily by the existing employees of Earth Elements; this includes

management as well as hourly. Every six months we will have Emma’s Professional Cleaning of Long

Beach come into Earth Elements for deep carpet and floor cleaning.

Equipment

• Earth Elements will use CCR Retail Equipment as their primary source for transactions. CCR offers

extremely powerful, fully featured products from StoreNext, Fujitsu, Logivision and Software 4.57 In

order to keep the equipment up-to-date and running well we will have a routine maintenance check

every six months.

Security

• For the safety of Earth Elements we have chosen to use Prime Alert Security Systems.58 Prime Alert

has been providing professional and quality alert systems in California since 1990. We will have not

only an alarm system, but a video system as well. There will a routine six-month check up to make

sure the alarms are working as needed.

57 http://www.ccrretail.com/id13.html58 http://www.primealertsecurity.com/



Management Functions

Planning

• Planning will be done by the owner of Earth Elements. Planning will include identifying goals,

objectives, methods, resources needed to carry out methods, responsibilities and dates for

completion of tasks. These will include strategic planning, business planning, project planning,

staffing planning, advertising and promotions planning.

Trends and Forecasting

• Educational Seminars presented by the Board Retailers Association

• Various magazines such as Transworld, Thrasher, Boardumm, and Huck.

• Various internet sites such as the Board Retailer Association, Burton.com, Skateboard.log,

Skateboard City, Skateboarding: The House.com, Skateboard.com, and Transworld Skateboarding.

Customer Service

Complaints

• In order to deliver excellent customer service earth Elements’ employees will sit through a three hour

class that takes them through the complaints process. Each customer will engage in different

compliant situations and find solutions to each problem. This class will be held once a year and is

mandatory in order to work with the company.

Return

• Customer Return Policy

1. You can return your unwashed, unworn, or defective merchandise to Earth Elements within

30 days of original purchase date.

2. Without an original receipt, Earth Elements require valid identification when processing all

returns and exchanges. Valid identification is also required to receive or redeem a non-

transferable merchandise certificate or mail check.

• Employees will follow a four step process in returning items

1. Accept eligible returns within 30 days of customer receiving order

2. Clearly label a non-returnable item as such in the product description

3. Refund the money in the same way the customer originally paid

4. Process refunds within one week of receiving an authorized return



After-Sale Problems

• If merchandise is found defective after purchase, customers may return the merchandise for a full

refund. Merchandise must not have been defective due to improper use. Inspection of merchandise

will be placed when returning. Employees will follow a four step process in regards to returning

defective merchandise.

• Inspect defective merchandise

• Clearly label merchandise with a defective sticker that includes reason why defective and

when it was purchased/returned

• Refund the money in the same way the customer originally paid

• Process refunds within one week of receiving an authorized merchandise



Financial Strategy

Financial Goals

•

Funding needed for first year• The total amount needed to be funded for the first year is $51,979. Total inventory will cost $21,129,

total equipment and supplies is $11,350, total marketing expenses are $5,400, operating expenses are

$4,600, and total build out expenses are $9,500.

earth elements business plan

Documents