Business Plan for Fashionandyou

Harpreet singh,Yogesh singh,Anoopdeep singh,Amandeep sidhu mba.twinning@gmail.com

Academic Version

Confidentiality Agreement The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities.

Academic Version

Table of Contents
1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 1.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . 1.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 1.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 2.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 2.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.3 Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 3.1 Product and Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 3.2 Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 3.3 Sales Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3.4 Fulfillment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 3.5 Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3.6 Future Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 4.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 4.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 4.2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 4.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4.3 Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 4.3.1 Business Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 4.3.2 Distributing a Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 4.3.3 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 4.3.4 Main Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Web Plan Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 5.1 Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 5.2 Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 6.1 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 6.1.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 6.1.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 6.1.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 6.1.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 6.2 Strategy Pyramid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 6.3 Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 6.4 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 6.5 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 6.5.1 Positioning Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 6.5.2 Pricing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 6.5.3 Promotion Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 6.5.4 Distribution Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 6.5.5 Marketing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 6.6 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 6.6.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 6.6.2 Sales Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 6.7 Strategic Alliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 6.8 Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 7.1 Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 7.2 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 7.3 Management Team Gaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 7.4 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

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Table of Contents
8.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 . 8.1 Start-up Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 . 8.2 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 8.3 Key Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 8.4 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 . 8.5 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 8.6 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 8.7 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 8.8 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 8.9 Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 8.10 Payback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 .

Academic Version

Business Plan for Fashionandyou

1.0 Executive Summary

1.1 Objectives
1.To Acheive a target sales of 2 lac pieces/year for our customized products. 2.To become a market leader of customized products within next 2 years. 3.To make the most visited website of online shopping within an year. 4.To have continious customer satisfaction survey through feedback and phone calls.benchmark of minimum 80% satisfaction level will be set.

1.2 Mission Fashion&you.com is about taking fashion to the people, no matter where they are from or what they are doing,the more you know about fashion,the less scary it is to figure out your personal style .

1.3 Keys to Success

customized products with high quality and refined printing with printer sublimation technology.

To have a high variety of customized products with a efficient and reliable distribution network.

Since we deal in services therefore our main motive will be to long term relation with customers and provide a satisfactory response within 12-24 hrs.

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Have a freindly relation with employees adopting a informal performance appraisal techniques.

2.0 Company Summary

fashion&you.com, an online personalized merchandise portal. This is an online platform for ondemand unique and creative merchandise where you can personalise almost anything from T-shirts to mugs, watches, coasters, posters, greetings, notepads, calendars, plates, teddy bears, pendants or even mouse pads.The business office will be located in new delhi but since the business deals in online shopping therefore the location in new delhi will only be concerned with operations part therefore the customers have nothing to do at the physical office.The business is new and has a very vast potential because most of the people love wearing customized stuff and are are more attracted towards personal customized products.The scenario of today provides least time for the customers to shop in a shopping mall therefore the time demands more of a eshopping.the competitive edge technology is the printer sublimation technology which provides a high graphic design and more accurate designs for customers.the target audience includes youth,college going students,children and customers who prefer buying cusomized prducts with low price,the target audience also includes the working women and housewives which have hobbies of collecting unique products for there home or office.

2.1 Company Ownership

The company will be owned through a partnership of 4 partners.the fashion&you will be a private company including active partners.the proportion of each partner which includes profit and loss will be 25% respectively.Interest on drawing and capital will be charged @ 6%.

2.2 Start-up Summary

Legal expenses which includes registration of the company,other notary expenses expenses for developing webpage and contract signing with vendors and courier services. the assets required for the start up of company includes the accomodation like air conditioner,computer,internet connection,furniture. Since we are not indulged in any debts therefore we will manage funds by ourselves,the business is small scale business therefore we dont require any borrowings/loan.

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Table: Start-up Start-up Requirements Start-up Expenses Legal Stationery etc. Insurance Rent Computer brochures leased office euipment website consultants Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements

$1,000 $500 $0 $2,000 $30,000 $0 $10,000 $10,000 $5,000 $58,500

$401,500 $0 $0 $401,500 $460,000

2.3 Company Locations and Facilities

The business is mainly through online buying therefore having an office in aprome location to attract customers is not the priority.the location of our office will be at okhla industrial area whichs the main hub of cloth industry in new delhi,the motive of having such place for our office is that we can fetch raw material from better vendors hand on hand will decrease the transporting cost,any actions/conspiracies can be handheld easily. the rent agreement/lease agreement will be for 2 years minimum.the time period has not been set long because with the passage of time we will expand our business and will try to buy a office place rather then on rent basis. the area will 1000 square feet with 100*100 dimensions divided into different cabins and offices.

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3.0 Products and Services
fashion&you.com, an online personalized merchandise portal. This is an online platform for ondemand unique and creative merchandise where you can personalise almost anything from T-shirts to mugs, watches, coasters, posters, greetings, notepads, calendars, plates, teddy bears, pendants or even mouse pads. the products and services will be provided to individual customers and large corporate houses.since the business of corporate houses deal in bulk therefore we will focus on corporate houses specially during evenst such as sports events,cultural events,the advanatage of corporate houses is that the large orders provide a huge profit hand on hand a free advertisement. the products will be delivered directly to the customers from the printing hub place,the dealing of courier services tothe customers will be timely monitered by our customer service executives to provide the best of services.the feedback and customer response will be monitered on regular basis and the small lacking will be erectified.

3.1 Product and Service Description

fashion&you provides personalise almost anything from T-shirts to mugs, watches, coasters, posters, greetings, notepads, calendars, plates, teddy bears, pendants or even mouse pads. the cost of products will start as followstshirts-range will start from 500-1500,mugs-200-800,walets-500-1500,coasters-500-1000,posters-100500,notepads-100-500,calendars-100-500,plates-1000-2000,teddy bears-500-2000,pendants-1001000,mouse pads-300-800. the products fill the need of every customer who wants a customized produts of his/her choice,since the products range is high therefore it includes almost every aspect of range. every human being no matter rich or poor has a liking for his/er kind of customized products,since the price range starts from a cheap to a premium segment therefore it will tap the whole range of customers. the world of today is involved and satisfied more through service response and satisfaction level therefore we will be more focused on services to customers.the competition in today world ask more for a satisfaction level both in service as well as product,we will try our best so that no stone is left unturned.

3.2 Competitive Comparison

The most printing online portals have printing websites therefore we will be on the competitve edge by providing printer sublimation technology,the printer sublimation technology is provided in briefA dye-sublimation printer (or dye-sub printer) is a computer printer which employs a printing process that uses heat to transfer dye onto medium materials such as a plastic card, paper, or fabric. The sublimation name is applied because the dye transitions between the solid and gas states without going through a liquid stage. Now the next competitve edge is regarding the services provided to customers.a survey done by a private firm indicates a clear point that most of the priting or customized printing firms are more concerned about selling products rather than building a long term relationship with customers as a result the customers buy the products once or twice and then they shift to some other online shop website,we will handle the customer service in a very efficient way with a continious survey of customers and sending them direct mail on special occasions such as birthdays or annivarsary.

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3.3 Sales Literature
The advertisements will be heavily done on social websites such as facebook.com.the personal referalls is one of the prominent ways to advertise by giving discounts to people or customers who refer the webpage link to friends/family,an additional credits will be added to their account. The advertisements through newspaper is very expensive and out dated technique and since the business is an e shopping therefore e advertising will be the best option. the next advertising technique which will be done heavily by having a collateral partnership with famous online shopping websites which have branded product category and an profit share will be provided to them.this technique will be for a short period because are new in this industry and we need to gaian popularity,once the name is established we will be solely using our parent website for customers.

3.4 Fulfillment
There will be no inventory in our business. Since the business online orders,therefore the raw material will be dilvered directly to printing hub from vendor place. After every 10 days we will place the order to vendor. The quantity of order will be maintained with sync to online orders. Transport expenses will be incurred by vendor. The Printed final product will be picked up by the courier service directly from the printing hub. The delivery of order to the customers will be maximum 3 to 4 weeks. Risk is less since the goods are not perishable neither have an expiry date.

Inventory management for corporate orders will be managed on a large scale. The raw material will be provided to printers straighway from vendors and the order will be in bulk quantity. For such projects we will have printers which have capacity to prepare large orders. The supply of products will be managed by courier service only.

3.5 Technology
The technology in our business plays a major role and is also our competitive edge,the technology is a printer sublimation technology whihc is very new in the printing market and has a vast potential in the coming future. since we are totally into online business therefore internet is the backbone of our business and evrything from inventory check list of vendor and placing order to printers,tracking orders of customers and conducting different surveys will be totally done through internet therefore internet is a must provided 24 hr facility for our business to run efficiently. the ordering and inventory inquiry is the core actitivity in our business and we will have aregular check on it,sync between online order by customers and raw material of vendors will be monitored so that a optimum level of bsuiness activity should be carried out without any hassles.

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3.6 Future Products and Services
a long term strategy is surley planned in our business since the product is of non perishable nature and most important thing is that the product is not of fad catefory or a temporary fashion which has a short life span,in the near future our motive will be to seek for international orders since the international market has a high demand for customized products but due to shortage and limited resources and a least experience exporting outside from home country will not be a great and feasible step. the new and service lines will brought up by hiring different designerson a contract basis plus the customers are free to customise the products accordingto the likings,this has a great advantage for us because the designs and concecpts which the customers will provide to us will be saved to our database and time to time the best designs will be displayed on the website,this will help the new customers to look at new designs everyday and we will get new and innovative designs free of cost. A relationship is obviously existing if we take into consideration the market segment and market demand becasue the segment(already described in detail) has the highest demand from rest of the population.the need for customized products will remain life long no matter which fashion is on the peak but the demand for customized products will stay forever,this keeps our business on safe side.

4.0 Market Analysis Summary

The target market includes age group from children from the gae of 10 years to adults upto 55 years,the reason for such a large range is beacuse we are providing products ranging from cups to teddy bears including tshirts,posters etc.each product has different target customers for example teenagers or youth will be targeted for thirts,girls and womern will be targeted for cups,tedd bears etc.

the picture depicts the clear trend of online sale trend whihc is forecasted till 2014,the sale though online has been in a very positive manner.

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4.1 Market Segmentation
The market segment includes the youth ,children,housewives,the product will be specifically targeted for customers such as thirts,pendants for youth,tedy bears for children,glowing tshirts for children,customized mugs,cups,plates,coasters fow housewives or ladies who lovehaving such products at their home.

Table: Market Analysis Market Analysis 2012 Potential Customers Youth/teenagers Housewives/wives children(indirect customers-parents) Corporate houses Total Growth 70% 45% 50% 90% 83.87% 40,000 20,000 9,000 200,000 269,000 2013 68,000 29,000 13,500 380,000 490,500 2014 115,600 42,050 20,250 722,000 899,900 2015 196,520 60,973 30,375 1,371,800 1,659,668 2016 334,084 88,411 45,563 2,606,420 3,074,478 CAGR 70.00% 45.00% 50.00% 90.00% 83.87%

4.2 Target Market Segment Strategy

The groups which we have targeted includes the teenagers,women,children and corporate houses,hence we can say that the target market which we have covered has almost every segment of age group. The target segment which we have targeted has some specific reasons because the product range is large and each product has some specific target maket.for example we can say like the t- shirts are more targeted for youth and teenagers since these are more attracted to such stuff,now the next product is coasters,plates etc which are more of concern for women class,now the next segment is children,the children are indirect customers since the order will be placed by parents and children are only concerned for which type of product they want.Now the next category which includes corporate houses is a target market from whihc we have maximum profit or maximum orders,we will be having a special focus on corporate houses and the corporate houses wil be deal in a particular special kind of market technique each segment has specific demand and therefore we have provided a wide range of product category,the market size is large therefore doing a niche market strategy is not feasible and not profitable.

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4.2.1 Market Needs
The business which we want to indulge has a high potential because the today scenario has a high variety of brands which have high cost and the market of customized products declined during the past because of less resources and lack of funds but now with the passage of time,internet has emerged as an major way of communication and doing business,this has decreased the expense part and hand on hand provided a great place to find best resources available.take an example of our business,now we dont have expenses to open a retails tore,to have physical assets,to communicate through physical means,now with the growing of internet technology we have an opportunity to deal in business online and and access to our website will be done from each kind of cusomer who has an internet access,therefore the biggest advantage is maintaining a single store for global customers. The customized product need has been in demand forever,we can see people prefering customized products more than branded products when it comes to personal choice. The time to go for shopping exist nowhere for a consumer in todays world scenario therefore people have started showing a trend of buying online,which has a positive forecast for our business,if we can maintain a higher satisfactory percentage both in case of products as well as services,we have an enormous oppurtunity to banf the top position in the coming years

4.2.2 Market Trends

The factors which are defining the market trend can be cleary seen in the following linkhttp://www.forbes.com/sites/lauraheller/2011/04/20/the-future-of-online-shopping-10-trends-to-watch/ The link provides a very positive approach of online shopping in the coming years. As i have explained in the previous sectors,the most domintaing factor which we can see in our business is the emrgence of internet connectivity even to villages and next thing is that the working people have less time to go for shopping into shopping malls and stores and sitting home,buying your customized product could be the best thing which a consumer can do.The online payment through credit and debit card or we can say online banking has increased on a large scale from last 3 to 4 years.people few years back were afraid of online transactions but the technology has emerged on such a large scale that people now prefer buying through credit cards rather than cash. the developing trends are online shopping,more preference for customized products,most people are working class consequently their pocket does not allow them to buy branded products,for such class customized products could be the best option..

4.2.3 Market Growth

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The data clearly depicts the online retail sales growth graph having a positive approach,the period is from 2000 to 2009

4.3 Service Business Analysis

The type industry we are in is online demand personalization.The products ranged from T-shirts, mugs, greeting cards, calendars, key chains, diaries, wine glasses, coasters and many such products with photographs, one-liners and slogans. There will be no inventory in our business.Since the business online orders, therefore the raw material will be delivered directly to printing hub from vendor place.After every 10 days we will place the orer to vendor quantity of order will be maintained with sync to online orders. Transport expenses will be incurred by vendor.The Printed final product will be picked up by the courier service directly from the printing hub.The delivery of order to the customers will be maximum 3 to 4 weeks.Risk is less since the goods are not perishable neither have an expiry date. competitors are myntra.com,rooja.com,jabong.com,hitplay.com etc.these are large firms which have a estanlished name in the industry,we will benchmark one of these for our business.

4.3.1 Business Participants

The nature of industry is somewhat like small to medium size,the participants are smaller and even few in number because the concept of online buying has emerged into market only few years back and since the technology is the main key of doing online business therefore most of the people avoid indulging themselves in such a business due to lac of knowledge and the risk of new business in such type of industry. The business has evolved in india few years back with less than 10 online shopping famous portals. The competiton is not much strong in our business because the business is totally a customized and innovative products,now the next advantage is since the products are customized and only interenational brands prevail in the market,no international firm is operting in india which provides customized products in india(exporting). The culture also plays an important role in our business,the international firms do not understand the business upto the core level,the level with which we understand our local indian culture,we will provide the customized products and innovative designs more concerned to indian culture ,more the culture

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related products more will be attraction of indian people.The western trend in india has emerged upto the maximum level and now agian people look for traditional customized product whichis not avaialabe with renowned brands,our business will provide these range or products and we can gain competitive edge in this regard.

4.3.2 Distributing a Service

The company is into direct sales to consumers,both to idividual consumers and corporate houses.The courier service will pick the product directly from the printing hub and will deliver the product direct to the customers,the courier service with whihc we will have a contract will be reputed one and once the order is shipped to the customer,we will have a regular track to the order until and unless it is delivered to the customer and the customer is fully satisifed with the product. The direct sales to customers will decrease cost and the hadnling of product will also be safe. The manufacturers dont have a direct sales force but we will be directing the courier guys to pick the order from the place of printing hub rather than adopting a strategy in which the printed final product will be delivered to our office and then the courier people will pick the product from our office.this strategy will waste time as well as increase the transporation cost.

4.3.3 Competition and Buying Patterns

The competition in out industry is not high but still the competition exist,as expalined earlier most people shift from one website of online shopping to another becasue the after sales services provided are not satisafatory and the products which the consumers get is little different from what they see online,these two flaws in the online shopping can be easily erectified by providing the best of services and same product which they see online,the main aim of our business will be to provide the fair infrmation regarding the product,the services both pre and post sales,the product will be same like that seen online,a sample of the product after they have finalized will be shown to them online at the same moment. The time of delivery of products is also the major key in online business,usually the products are delayed during the delivery,our system will be so efficient that a proper range of delivery days will be provided after confirmation of place of delivery,the closer the place the lesser days to deliver(this strategy has been started by bludart).

4.3.4 Main Competitors

the three major competitors of our business are1.Myntra.com a brand established in 2007 having regional offices in New delhi,Mumbai and chennai. 2.ReputationIn 2010 myntra became India's largest on demand personalization platform for products and gift and captured 50% of market share. Swot analysis of myntraStrength-

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The brand is into online business since 2007. the brand is already established in the online industry. Myntra.com has a tie up with more than 200 international and national brands. WeaknessLeast in terms of range of customized products. The myntra has the largest problem of onlien transactions,20 % of online transactions fail The customer base is high and therefore the service quality provided has become poor therefore people have started shifting to other online portals. ThreatThe upcoming of new online shopping portals having lower price and more variety of products. OpportunityThe opportunity for myntra is to start the business in multi brand retail since they have well established name in the market.

5.0 Web Plan Summary

The web plan is the backbone of our business,the business is totally based on online shopping of products,we are not providing any physical retail stores hence the business is wholly and soleley based on online or internet. the website designer will be hired on permamanent basis and on daily basis the webpage will be updated with new designs and customer designs.the webiste is the main source of our business hence the main emphasis will be specifically on the webpage

5.1 Website Marketing Strategy

5.2 Development Requirements

6.0 Strategy and Implementation Summary

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6.1 SWOT Analysis

6.1.1 Strengths
Online shopping is easy and convenient,consumer can purchase products with comfort at their home inspite of spending time in the different shops. provide detailed information about the products in depth. Labour-cost saving since hiring of salespersons are not necessary to serve online customers. Different payment options are being offered (i.e. credit card, cash or cheque on delivery). the site has personalized options. Consumers are able to keep track of what they have recently viewed Value-added features like shopping cart is provided to keep track of the total expenses and the goods bought The site has personalized options. Consumers are able to keep track of what they have recently viewed. Feedback can also be given

6.1.2 Weaknesses
The site has to be maintained and updated regularly. Thus a cost is involved. Many are still uncertain and insecure about online shopping. With many Internet frauds around, consumers may feel threatened when disclosing their personal information or making any transactions online. It takes time before the goods are being delivered to the consumers doorsteps. It is limited to people with Internet access or areas with Internet connections. Majority of the older generation may be computer illiterate. Search Engine UnpredictabilityWeb retailers live and die by organic search engine placement. The higher the store is placed on the search engine result pages (SERPs) translates to more traffic and sales. Search engines regularly change their ranking systems and this can cause major fluctuation in placement and create an unpredictable environment.

6.1.3 Opportunities
The site can offer other services such as, comparison of brand value and price of product substitutes of different brands so as to allow easier decision-making. Seek low cost manufacturing facilities elsewhere (e.g. Thailand, China and Hong Kong) Export its goods or go into globalization to gain a competitive edge.

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6.1.4 Threats
Consumers may enjoy shopping in a physical store the traditional way. New entry of other competitors may also emerge in the near future. The low barriers and the comparatively low overhead costs allow a for a relative easy entry into the market. This increases the level competition and can cause a reduction in prices and profit margins. Threats are produced not only by other retailers within the same industry but also by the manufactures that supply the products that the retailer sells. It is not uncommon for online retailers to directly compete with the manufacturer of the lines they carry. Internet sales only have tax applied to the purchase if the buyer and seller reside in the same state. Considering the growth and amount of tax revenue lost to e-commerce, the federal government and individual states could write legislation to impose tax on all online sales. This would remove one incentive to conducting business online.

6.2 Strategy Pyramid

6.3 Value Proposition

6.4 Competitive Edge

the competitve edge which we will have includes the technology of printer sublimation technology which is new in the industry and also very promising,this technology is highly effective and the graphics and print quality is far much better then already adopted technology. The second competitve edge which we will have is to provide a 100% efficient customer service so that the customers dont switch to other online shopping portals.The services provided will be upto the mark and will have continuous feedback and other survey to keep tracking the amount of service satisafaction of customers the sustainable value is which we ar elooking is to be renowned as one of the most innovative and custom designed online shopping portal,we want day that our customers should perceive our website the most innovative designed website and also where customers can totally customize there products without any constriction.today we see many of the websites provide customized prodcuts but a constraint is always there that you cannot make the exact customized product due to limidity of design or creativity by the printing hubs,in our business we will have 100%customized products.

6.5 Marketing Strategy

The first strategic move for fashion&you must be to improve its website. An amount of $1,000 has been set aside for this purpose. A contract will be signed by the end of december, 2012, with completion due by the end of february in that next year. Assume 50% payable at signing and the rest upon completion. The site must have a shopping cart capability to allow on-line secured credit card transactions. fashion&you in-house designer has had some formal training in this type of work, and should be able to cooperate effectively with the person chosen to construct the site. It is essential that care be taken to cause the most important search engines to find fashion&you website using a variety of key words. Multiple hostings are likely to be necessary to accomplish this. Similar skill needs to be undertaken to bring many more

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visitors to fashion&you site from the online store. The second strategic move is to provide the best of services to customers and have a regular feedback from customers regarding services,we dont want that the customer should shift from one business to other and to avoid such things,we will focus to build long term relationships rather then looking for short term profits,once the name is established we will be the top listed online portal companies.

6.5.1 Positioning Statement

For the people who love customized products such as cloths,plates,teddy bears,we will provide you the product you want,the way you want.be youself be a designer to your clothes to your home unlike the branded available limited products available in market where you have few options to choose from.

6.5.2 Pricing Strategy

6.5.3 Promotion Strategy

6.5.4 Distribution Strategy

The distribution strategy which the company will adopt is simple and very effective. The company will distribute the website link to social websites so that maximum consumers are exposed to the webpage link. we are focusing specially on electronic distribution of our website and ongoing sponsering events will be indukged in. the uniqueness of our business is that the service quality will be upto the top quality mark whihc is hard to copy by customers. The altenate distribution channel to market the website is to sponser the youth events in colleges and universities having small financial budget whihc will market the website on large scale.

6.5.5 Marketing Programs

The specific marketing programs discussed in this plan are: 1. Immediate conclusion of a consulting contract to design fashion&you website. Estimated budget $1,000. Time for completion: six weeks. Immediate action to look for for the data anaylsis of metro cities where the popultaion is high and also the demad will be obviously high.the market team will collect the data upto the appropriate level within a time span of 2 months.budget allocated $2000 Direct mail marketing program. A well-researched marketing study to locate attractive market sectors which are ripe for market segmentation. Should include

2.

3.

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a reasonable number of dedicated designs for card faces as well as messages. Specialization in respect to stationery letterhead, name cards, etc. Ad specialties need to be carefully chosen to speak to the chosen industry sector.

6.6 Sales Strategy

The online orders will have a sales strategy in simple and efficient way,once the prodcut is finalized,the cusomer then has the option to continue shopping or proceed to check out,the cotinue shopping will give the consumer more option to buy products where as the checkout box will tak e the custome r to the payment option page where the cusomer will have the option of making payment through debit card,credit card,online banking and last but not the least the latest ales strategy which is being followed is the cash on delivery sales strategy in which the cusomer has the option to paythe price when he or she gets the products,now the sales strategy whihc will add some additional benefits on the checkout page is that once the product is finalized,the consumer will be shown credit points or coupon which will reveal that on next purchase you will get an additional benefir or discount.this will amke the cusomer to buy more products. The salespeople will be compensated with additional benefits,if the customer gives a positive respone about any specific employee,the web designer will be compensated for better and attractive webpage and for the designs whihc will be shown online. The order processing and database management will be followed strictly since this will give us competitive edge in the future,the order processing time will be short as possible,once the product is ordered it will be confirmed within 15 mins of order and for database management we will have personilzed emails and phone numbers to provide updated iformation for latest products and offerings.

6.6.1 Sales Forecast

Table: Sales Forecast Sales Forecast FY 2013 Sales all products Total Sales Direct Cost of Sales row1 Subtotal Direct Cost of Sales $2,170,000 $0 $2,170,000 FY 2013 $1,249,000 $0 $1,249,000 FY 2014 $3,000,000 $0 $3,000,000 FY 2014 $1,800,000 $0 $1,800,000 FY 2015 $4,300,000 $0 $4,300,000 FY 2015 $2,580,000 $0 $2,580,000

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6.6.2 Sales Programs

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6.7 Strategic Alliances
The strategic alliance will be with printing hubs and courier services,the alliance with printing hub will provide a risk free long term relation and a alliance regarding the quality of the printing material will be done so that the quality is not compromised on any stage.the next thing is with courier service,since every online company provides products through courier services but they do not indulge themselves in alliance therefore the realtion with the courier service is not deep rooted but in our business we will have an alliance with courier service so that we can have more effiecient and effective delivery of our services to customers.the tracking of the orders will be doubled checked both by courier service as well as by our customer care executives,a regular phone call or feed back to customers will be done.

6.8 Milestones
Table: Milestones Milestones Milestone Corporate identity Name me Name me Name me Name me Name me Name me Name me Name me Name me Totals Start Date 10-4-2012 10-4-2012 10-4-2012 10-4-2012 10-4-2012 10-4-2012 10-4-2012 10-4-2012 10-4-2012 10-4-2012 End Date 1-5-2012 10-5-2012 10-5-2012 10-5-2012 10-5-2012 10-5-2012 10-5-2012 10-5-2012 10-5-2012 10-5-2012 Budget $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Manager ABC ABC ABC ABC ABC ABC ABC ABC ABC ABC Department Department Department Department Department Department Department Department Department Department Department

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7.0 Management Summary
in our copany their are 10 employees who serves the company. their are following jobs for the employees:One computer system analyst One web page designer Two employees for managing transactions and recording orders- placed by the customers. Two employees responsible for placing the printing orders to vendors Two employees at the service of customers for redressals and grievances in the founder team their are four members who have their own departments according to theri preference and interest . there are following departments assigned to the following members:human resource department assigned to Amandeep Singh Sidhu. Finance deparment is assigned to Harpreet Singh Punia. Marketing department is handled by our most experinced member Anoopdeep Singh. our operation deparment is handeled by yogesh singh sap.

7.1 Organizational Structure

The organisation consist of co/vise president which will deal with the administrative staff and the president will look over the co presidents for the different activities assigned to them,there are four departments which include finance,distribution,development,operations,each department will be assigned different functions example receivables,payables,product receipt,system/product etc.

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Organizational Chart
Anoopdeep singh President

Yogesh singh sap Vice President

Harpreet singh Vice President

Amandeep singh sidhu Vice President

7.2 Management Team

in our managment team their are four members:Anoopdeep singh. Harpreet singh Amandeep singh Yogesh Singh. Background and exprience of all members:Anoopdeep singh anoopdeep is the president of the company. he has done his masters in the businees administration having majors in marketing so he has very deep knowledge in the marketing and sales. he also has the 2 year experience of marketing in renowned organisation he has knowledge about marketing and sales so he handles the markering department of the company and will do his duties very efficeintly.

Harpreet Singh Harpreet singh is the vice president of the company. He also holds the master degree in MBA. major in the finance and minor in marketing. being major in finance he controls the all financial departmental work.

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7.3 Management Team Gaps
At present we believe we have a good team for covering the main points of the business plan. we have specialist in every department and have experince so all are doing his very efficiently At present, we are weakest in the area of technical capabilities to manage the database marketing programs and upgraded service and support, particularly with cross-platform networks. We also need to find a training manager.

7.4 Personnel Plan In our company there are total 8 empplyees as following:marketing director designing director designers web administrator office manager marketing staff accountant now if we talk about the payroll of all thse employees , the salary is provided according to there work and duties accomplished to the people in 2013 the salary of marketing director according to the forecast will be 84000 yearly , in 2014 it will be incrimenred by 5% ansd same as in 2015. no according to the forcasted data the salary of designing director will be same as marketing director 84000 yearly and it also be increased by 5% for next 2 years. the salary of designers will be forcated higher than marketing and designing director because the work of designer is responsible and harder. the salary of designer will b
Table: Personnel Personnel Plan marketing director design director designers web administrator office manager marketing staff other accountant Total People Total Payroll FY 2013 $84,000 $84,000 $144,000 $48,000 $36,000 $96,000 $0 $39,000 1 $531,000 FY 2014 $90,000 $90,000 $156,000 $52,000 $39,000 $104,000 $0 $44,000 FY 2015 $95,000 $95,000 $166,000 $56,000 $42,000 $112,000 $0 $48,000

$575,000

$614,000

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8.0 Financial Plan

8.1 Start-up Funding At the time of start of the business ,the expenses are 58500 and assests amount to 14500 which reveals that our total funds required to start the business are 460000.

Now the total assets of business are 401500 which include cash in hand of 401500. Now if look at the liability side the current borrowing amounts to $0 but our long term liabilities are $200000. The additional investment amounts to $ 260000 and the loss at startup is $58500. The total funding amount to $460000
Table: Start-up Funding Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets

$58,500 $401,500 $460,000

$0 $401,500 $0 $401,500 $401,500

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Owner Investor Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital

$0 $200,000 $0 $0 $200,000

$0 $0 $260,000 $260,000 ($58,500) $201,500

Total Capital and Liabilities Total Funding

$401,500 $460,000

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8.2 Important Assumptions

8.3 Key Financial Indicators

8.4 Break-even Analysis Break even point is th point at which cost or expenses and revenue are equal.there is no loss no gain situation. Our break even analysis is based on running cost ,the costs we incur to keep the business running not on theoretical fixed cost that would be relevant only if we were closing ,fixed cost include payroll,rent,utilities and marketing cost.

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Table: Break-even Analysis Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost $177,130

58% $75,178

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8.5 Projected Profit and Loss Income statement is major part of financial statement of business.

Our projected profit and loss account is prepared by taking sales of 2170000 in the starting year of business that is 2013 and will increase in the coming years that is 2014 and 2015 which is 3000000 and 4300000 respectively. The projected balance sheet is calculated till the year 2015. The expenses which include the operating expenses are 902140 where as the expenses incurred for the year 2014 and 2015 will increase to 1027650 and 1172500 respectively, the operating expense includes the rent, sale and marketing expenses, the maximum increase in expenses has been seen in the case of pay roll which has increased from the year 2013 to 2015 as 531000 to 614000 in the year 2015. The net profit calculated is $901 for the first
Table: Profit and Loss Pro Forma Profit and Loss Sales Direct Costs of Goods Other Costs of Goods Cost of Goods Sold Gross Margin Gross Margin % FY 2013 $2,170,000 $1,249,000 $0 -----------$1,249,000 $921,000 42.44% FY 2014 $3,000,000 $1,800,000 $0 -----------$1,800,000 $1,200,000 40.00% FY 2015 $4,300,000 $2,580,000 $0 -----------$2,580,000 $1,720,000 40.00%

Expenses Payroll Marketing/Promotion Depreciation Sales and marketing and other expenses Depriciation Insurance Rent Payroll taxes Other Utilities Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

$531,000 $0 $0 $0 $265,000 $0 $0 $24,000 $79,740 $0 $2,400 -----------$902,140 $18,860 $18,860 $17,574 $386 $901 0.04%

$575,000 $0 $0 $0 $340,000 $0 $0 $24,000 $86,250 $0 $2,400 -----------$1,027,650 $172,350 $172,350 $13,281 $47,721 $111,349 3.71%

$614,000 $0 $0 $0 $440,000 $0 $0 $24,000 $92,100 $0 $2,400 -----------$1,172,500 $547,500 $547,500 $8,801 $161,610 $377,089 8.77%

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8.6 Projected Cash Flow

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Table: Cash Flow Pro Forma Cash Flow FY 2013 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance FY 2014 FY 2015

$2,170,000 $2,170,000

$3,000,000 $3,000,000

$4,300,000 $4,300,000

$0 $0 $0 $0 $0 $0 $0 $2,170,000 FY 2013

$0 $0 $0 $0 $0 $0 $0 $3,000,000 FY 2014

$0 $0 $0 $0 $0 $0 $0 $4,300,000 FY 2015

$531,000 $1,506,257 $2,037,257

$575,000 $2,255,331 $2,830,331

$614,000 $3,227,109 $3,841,109

$0 $0 $0 $44,796 $0 $0 $0 $2,082,053 $87,947 $489,447

$0 $0 $0 $44,796 $0 $0 $0 $2,875,127 $124,873 $614,320

$0 $0 $0 $44,796 $0 $0 $0 $3,885,905 $414,095 $1,028,416

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8.7 Projected Balance Sheet
Table: Balance Sheet Pro Forma Balance Sheet FY 2013 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth FY 2014 FY 2015

$489,447 $0 $489,447

$614,320 $0 $614,320

$1,028,416 $0 $1,028,416

$0 $0 $0 $489,447 FY 2013

$0 $0 $0 $614,320 FY 2014

$0 $0 $0 $1,028,416 FY 2015

$131,842 $0 $0 $131,842 $155,204 $287,046 $260,000 ($58,500) $901 $202,401 $489,447 $202,401

$190,163 $0 $0 $190,163 $110,408 $300,571 $260,000 ($57,599) $111,349 $313,749 $614,320 $313,749

$271,965 $0 $0 $271,965 $65,612 $337,577 $260,000 $53,749 $377,089 $690,838 $1,028,416 $690,838

8.8 Business Ratios

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Table: Ratios Ratio Analysis Sales Growth Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout FY 2013 0.00% FY 2014 38.25% FY 2015 43.33% Industry Profile 5.27%

0.00% 100.00% 0.00% 100.00% 26.94% 31.71% 58.65% 41.35%

0.00% 100.00% 0.00% 100.00% 30.96% 17.97% 48.93% 51.07%

0.00% 100.00% 0.00% 100.00% 26.45% 6.38% 32.82% 67.18%

27.19% 88.86% 11.14% 100.00% 39.11% 8.57% 47.68% 52.32%

100.00% 42.44% 42.40% 0.00% 0.87%

100.00% 40.00% 36.29% 0.00% 5.75%

100.00% 40.00% 31.23% 0.00% 12.73%

100.00% 15.22% 4.78% 1.39% 1.21%

3.71 3.71 58.65% 0.64% 0.26% FY 2013 0.04% 0.44%

3.23 3.23 48.93% 50.70% 25.89% FY 2014 3.71% 35.49%

3.78 3.78 32.82% 77.98% 52.38% FY 2015 8.77% 54.58%

2.04 0.91 54.85% 3.71% 8.23%

n.a n.a

12.42 27 4.43

12.17 25 4.88

12.17 25 4.18

n.a n.a n.a

1.42 0.46

0.96 0.63

0.49 0.81

n.a n.a

$357,605 1.07

$424,157 12.98

$756,450 62.21

n.a n.a

0.23 27% 3.71 10.72 0.00

0.20 31% 3.23 9.56 0.00

0.24 26% 3.78 6.22 0.00

n.a n.a n.a n.a n.a

8.9 Use of Funds

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Table: Use of Funds Use of Funds Use Name Name Name Name Total Amount $0 $0 $0 $0 $0

8.10 Payback
Table: Payback Payback

Projected Payback Calculation Investment Cash Returns by Year Combination as Income Stream Cumulative Net Cash Flow to Investors Payback Period Investment $500,000 ($500,000) ($500,000) 5 years FY 2013 $100,000 $100,000 ($400,000) FY 2014 $100,000 $100,000 ($300,000) FY 2015 $100,000 $100,000 ($200,000) FY 2016 $100,000 $100,000 ($100,000) FY 2017 $100,000 $100,000 $0

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Appendix

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Appendix
Table: Sales Forecast
Sales Forecast Jul-12 Sales all products Total Sales Direct Cost of Sales row1 Subtotal Direct Cost of Sales 0% 0% $180,833 $0 $180,833 Jul-12 $104,083 $0 $104,083 Aug-12 $180,833 $0 $180,833 Aug-12 $104,083 $0 $104,083 Sep-12 $180,833 $0 $180,833 Sep-12 $104,083 $0 $104,083 Oct-12 $180,833 $0 $180,833 Oct-12 $104,083 $0 $104,083 Nov-12 $180,833 $0 $180,833 Nov-12 $104,083 $0 $104,083 Dec-12 $180,833 $0 $180,833 Dec-12 $104,083 $0 $104,083 Jan-13 $180,833 $0 $180,833 Jan-13 $104,083 $0 $104,083 Feb-13 $180,833 $0 $180,833 Feb-13 $104,083 $0 $104,083 Mar-13 $180,833 $0 $180,833 Mar-13 $104,083 $0 $104,083 Apr-13 $180,833 $0 $180,833 Apr-13 $104,083 $0 $104,083 May-13 $180,833 $0 $180,833 May-13 $104,083 $0 $104,083 Jun-13 $180,833 $0 $180,833 Jun-13 $104,083 $0 $104,083

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Appendix
Table: Personnel
Personnel Plan marketing director design director designers web administrator office manager marketing staff other accountant Total People Total Payroll 0% 0% 0% 0% 0% 0% 0% 0% Jul-12 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Aug-12 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Sep-12 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Oct-12 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Nov-12 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Dec-12 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Jan-13 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Feb-13 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Mar-13 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Apr-13 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 May-13 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250 Jun-13 $7,000 $7,000 $12,000 $4,000 $3,000 $8,000 $0 $3,250 1 $44,250

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Appendix
Table: Profit and Loss
Pro Forma Profit and Loss Sales Direct Costs of Goods Other Costs of Goods Cost of Goods Sold Gross Margin Gross Margin % Jul-12 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Aug-12 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Sep-12 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Oct-12 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Nov-12 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Dec-12 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Jan-13 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Feb-13 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Mar-13 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Apr-13 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% May-13 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44% Jun-13 $180,833 $104,083 $0 -----------$104,083 $76,750 42.44%

Expenses Payroll Marketing/Promotion Depreciation Sales and marketing and other expenses Depriciation Insurance Rent Payroll taxes Other Utilities Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,636 ($19) ($45) -0.02%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,604 ($10) ($23) -0.01%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,573 ($1) ($1) 0.00%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,542 $9 $21 0.01%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,511 $18 $42 0.02%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,480 $27 $64 0.04%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,449 $37 $86 0.05%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,418 $46 $108 0.06%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,387 $55 $129 0.07%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,356 $65 $151 0.08%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,324 $74 $173 0.10%

$44,250 $0 $0 $0 $22,083 $0 $0 $2,000 $6,645 $0 $200 -----------$75,178 $1,572 $1,572 $1,293 $83 $195 0.11%

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Appendix
Table: Cash Flow
Pro Forma Cash Flow Jul-12 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

$180,833 $180,833

0.00%

$0 $0 $0 $0 $0 $0 $0 $180,833 Jul-12

$0 $0 $0 $0 $0 $0 $0 $180,833 Aug-12

$0 $0 $0 $0 $0 $0 $0 $180,833 Sep-12

$0 $0 $0 $0 $0 $0 $0 $180,833 Oct-12

$0 $0 $0 $0 $0 $0 $0 $180,833 Nov-12

$0 $0 $0 $0 $0 $0 $0 $180,833 Dec-12

$0 $0 $0 $0 $0 $0 $0 $180,833 Jan-13

$0 $0 $0 $0 $0 $0 $0 $180,833 Feb-13

$0 $0 $0 $0 $0 $0 $0 $180,833 Mar-13

$0 $0 $0 $0 $0 $0 $0 $180,833 Apr-13

$0 $0 $0 $0 $0 $0 $0 $180,833 May-13

$0 $0 $0 $0 $0 $0 $0 $180,833 Jun-13

$44,250 $4,554 $48,804

$44,250 $136,627 $180,877

$44,250 $136,606 $180,856

$44,250 $136,584 $180,834

$44,250 $136,562 $180,812

$44,250 $136,540 $180,790

$44,250 $136,518 $180,768

$44,250 $136,497 $180,747

$44,250 $136,475 $180,725

$44,250 $136,453 $180,703

$44,250 $136,431 $180,681

$44,250 $136,410 $180,660

$0 $0 $0 $3,733 $0 $0 $0 $52,537 $128,296 $529,796

$0 $0 $0 $3,733 $0 $0 $0 $184,610 ($3,777) $526,019

$0 $0 $0 $3,733 $0 $0 $0 $184,589 ($3,755) $522,264

$0 $0 $0 $3,733 $0 $0 $0 $184,567 ($3,733) $518,530

$0 $0 $0 $3,733 $0 $0 $0 $184,545 ($3,712) $514,819

$0 $0 $0 $3,733 $0 $0 $0 $184,523 ($3,690) $511,129

$0 $0 $0 $3,733 $0 $0 $0 $184,501 ($3,668) $507,461

$0 $0 $0 $3,733 $0 $0 $0 $184,480 ($3,646) $503,814

$0 $0 $0 $3,733 $0 $0 $0 $184,458 ($3,625) $500,190

$0 $0 $0 $3,733 $0 $0 $0 $184,436 ($3,603) $496,587

$0 $0 $0 $3,733 $0 $0 $0 $184,414 ($3,581) $493,006

$0 $0 $0 $3,733 $0 $0 $0 $184,393 ($3,559) $489,447

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Appendix
Table: Balance Sheet
Pro Forma Balance Sheet Jul-12 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Starting Balances Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

$401,500 $0 $401,500

$529,796 $0 $529,796

$526,019 $0 $526,019

$522,264 $0 $522,264

$518,530 $0 $518,530

$514,819 $0 $514,819

$511,129 $0 $511,129

$507,461 $0 $507,461

$503,814 $0 $503,814

$500,190 $0 $500,190

$496,587 $0 $496,587

$493,006 $0 $493,006

$489,447 $0 $489,447

$0 $0 $0 $401,500

$0 $0 $0 $529,796 Jul-12

$0 $0 $0 $526,019 Aug-12

$0 $0 $0 $522,264 Sep-12

$0 $0 $0 $518,530 Oct-12

$0 $0 $0 $514,819 Nov-12

$0 $0 $0 $511,129 Dec-12

$0 $0 $0 $507,461 Jan-13

$0 $0 $0 $503,814 Feb-13

$0 $0 $0 $500,190 Mar-13

$0 $0 $0 $496,587 Apr-13

$0 $0 $0 $493,006 May-13

$0 $0 $0 $489,447 Jun-13

$0 $0 $0 $0 $200,000 $200,000 $260,000 ($58,500) $0 $201,500 $401,500 $201,500

$132,074 $0 $0 $132,074 $196,267 $328,341 $260,000 ($58,500) ($45) $201,455 $529,796 $201,455

$132,053 $0 $0 $132,053 $192,534 $324,587 $260,000 ($58,500) ($68) $201,432 $526,019 $201,432

$132,032 $0 $0 $132,032 $188,801 $320,833 $260,000 ($58,500) ($69) $201,431 $522,264 $201,431

$132,011 $0 $0 $132,011 $185,068 $317,079 $260,000 ($58,500) ($48) $201,452 $518,530 $201,452

$131,990 $0 $0 $131,990 $181,335 $313,325 $260,000 ($58,500) ($6) $201,494 $514,819 $201,494

$131,969 $0 $0 $131,969 $177,602 $309,571 $260,000 ($58,500) $58 $201,558 $511,129 $201,558

$131,947 $0 $0 $131,947 $173,869 $305,816 $260,000 ($58,500) $144 $201,644 $507,461 $201,644

$131,926 $0 $0 $131,926 $170,136 $302,062 $260,000 ($58,500) $252 $201,752 $503,814 $201,752

$131,905 $0 $0 $131,905 $166,403 $298,308 $260,000 ($58,500) $381 $201,881 $500,190 $201,881

$131,884 $0 $0 $131,884 $162,670 $294,554 $260,000 ($58,500) $533 $202,033 $496,587 $202,033

$131,863 $0 $0 $131,863 $158,937 $290,800 $260,000 ($58,500) $706 $202,206 $493,006 $202,206

$131,842 $0 $0 $131,842 $155,204 $287,046 $260,000 ($58,500) $901 $202,401 $489,447 $202,401

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