Fictitious business plan from my EBMS program thesis

1. “Revolutionize Your Digital World”
Business Plan
November 2008
Copy #1
Kenneth Rodgers
President
P.O. Box 567
Nashville, Tennessee
(731) 336-4348
Krodgers@Izonit.com
This document is for information only and is not an offering for sale of any securities of
the company. Information disclosed herein should be considered proprietary and
confidential. This document is property of Izonit, LLC, and may not be disclosed,
distributed or reproduced without the express written permission of Izonit, LLC.

2. Contents
Executive Summary
I. 1
Company Description
II. 2
Industry Analysis and Trends
III. 4
Target Market
IV. 5
Competition
V. 8
Strategic Position and Risk Assessment
VI. 10
Marketing Plan and Strategy
VII. 12
Operations
VIII. 13
Technology
IX. 14
Management and Organization
X. 16
Community Involvement and Social Responsibilities
XI. 18
Development, Milestones, and Exit Plan
XII. 19
Financial Plan
XIII.
Assumptions 20
Sources and Use of Funds
Start-up Costs
Income Statement
Sales Projections
Staffing Budget
Marketing Budget
Appendix
XIV.
Business Agreement
Employee Agreement
Work-For-Hire Agreement
Izonit Equity Chart
Marketing Material

3. Executive Summary
The Company
Izonit is a computer studio located in central Nashville, Tennessee for hobbyist and
professionals alike. We will provide a computer studio that is defined in this manner as a
facility that hosts a local network of custom-built computers to accommodate specific
software. Izonit will serve the greater Nashville area with professional equipment and
hands-on classes for new users.
The Company’s Mission
Izonit’s Mission is to provide an artistic atmosphere, knowledge, and tools of the trade,
that enable creative people, to explore and shape their digital lives in our state-of-the-art
computer suites.
Products and Services
Izonit will offer Yearly, Monthly and Hourly memberships for onsite computer rentals.
We will also offer educational materials, tutorials and classes, as well as small to medium
scale printing jobs.
Target Market
Izonit will target persons 16-45 years of age and the income level will range from
$25,000 to $55,000. We will target both sexes from any ethnicity. Izonit will also target
small and medium sized businesses. These companies will be established for one to ten
years with annual gross revenues from $500,000 to $5,000,000.
Marketing and Sales Strategy
Izonit’s marketing plan includes radio and television advertising, print advertising in
local and niche newspapers, online advertisements and participating in industry trade
shows. Additionally, Izonit will work to form relationships with educators and school
boards to help secure student customers. Izonit staff will create the content of advertising
mediums on our own equipment and software. This will ensure both quality marketing of
our own design and low production costs of these mediums. Izonit plans on hiring an
advertising agency to buy and place our ads. They are experts in selecting media that best
reaches our target audience.
The Competition
Current competition holds a loose footing on the service similar to those provided by
Izonit. Key competitors include large printing and office supply stores, graphic design
houses and computer training centers. Izonit does not plan on competing with software
training from manufacturers, universities and other school educational resources and
government funded resources.
Management
Kenneth Rodgers attended Full Sail University, where he earned an Entertainment
Business Master of Science degree. He has completed extensive hands-on training in
marketing and advertising, business and entertainment law and project management
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4. courses, as well as, various technical skills. Izonit is in progress of seeking a Chief
Financial Director with a four-year Business degree and eight years management
experience. Izonit is in progress of seeking a Chief Technology Director with a four-year
Technology degree. Izonit is in progress of seeking a Chief Operations Director with a
four-year Managerial degree and eight years management experience.
Operations and Technology
Izonit will open its doors for business on January 1, 2009. We will encompass 25 high-
end computers in sectioned areas according to interests. This gives the customer the
power to work on what media is important to them with professional tools and printers
for maximum quality. The product is the print or final version of the work the consumer
makes.
Financials
Izonit’s projections are based off of three years of operations. At the end of year 1, Izonit
will have a gross sale of $298,120 and $247,440 gross profit. In year 2 we project a gross
sale of $909,995 and $755,296 gross profit. For year three we project a gross sale of
$1,724,540 and a gross profit of $1,431,368.
Long Term Goals
Izonit will maintain the same number of employees for the first 3 years. We estimate
adding 4 additional employees by the year 2013. By the year 2013, Izonit wants to have
at least 30% of the market share. Within 10 years, Izonit looks to add another location in
Knoxville, Tennessee.
Funds Sought and Utilization
Izonit will be seeking a total of $588,000 dollars. With these funds, Izonit will purchase
all equipment and software, furniture and décor, construction costs and required
professional services. Izonit’s president will personally contribute $25,000. We are
seeking a secure business loan of $140,000 from a banking institution. We expect an
amortization over 10 years at an 11% interest rate. Izonit is also seeking a single investor
to contribute $423,000. We plan on offering 15% interest on this investment and paying
back the investor in full by year 3. In addition, the investor will hold 10% equity in year 4
and a position on the Advisory Board, as well as have first right of refusal for future
investments. Izonit plans on franchising the business at the end of year 10.
Company Description
Izonit is a computer studio located in central Nashville, Tennessee for both hobbyist and
professionals. We define a computer studio as a facility that hosts a local network of
custom-built computers to accommodate specific software. Izonit will serve the greater
Nashville area with professional equipment and hands-on learning.
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5. Izonit’s Mission
Izonit’s Mission is to provide an artistic atmosphere, knowledge, and tools of the trade,
that enable creative people, to explore and shape their digital lives in our state-of-the-art
computer suites.
Services
Izonit is a fully equipped computer lab that enables first time users, hobbyist,
intermediate users, and small businesses to create digital content as an ‘ad hoc’ as
needed. The lab offers state of the art computers, software and programs that are often
designed for professionals. Izonit is dissected into sections according to the nature of use.
There are sections for audio, film, web design, flash creations, office software and
graphic design. Additionally, Izonit will provide classes, tutorials and have trained staff
on hand to help the customers learn how to properly use the latest hardware and software.
The goal of Izonit is to provide a place for students, hobbyist and small businesses to
create professional presentations, design logos and explore the digital lifestyles without
breaking their wallets. Most state-of-the-art equipment and software is out of the price
range of our target audience and certification classes are for the more advance users.
Izonit’s Yearly members will be entitled to unlimited time on equipment, discounted
printing, fifty tutorials and twenty classes for the year for a fee of $70.00 per month.
Monthly memberships will be awarded unlimited time on the equipment for $50.00 a
month. Hourly customers will be charged $20.00 an hour. Both monthly and hourly
customers will have tutorials and classes available for additional costs. The classes and
tutorials will be the education services available at a charge of $10.00 per tutorial and
$20.00 per class.
Izonit will be in debt only for the first year of operation. Due to the low start-up costs,
Izonit plans to turn a profit in the first quarter of 2010 and break even in the first quarter
of 2012. We project a $561,196 profit by the end of the third year. By this time, Izonit
will be the premier location for user generated computer suites. This will pave the way
for expansion and franchising options.
The company owns a federally registered mark for the name Izonit and for the Izonit
logo. Izonit also owns the slogan, “Revolutionize your digital world.”
Development to Date
To date, Izonit has begun to seek financing and securing the location. Additionally, Izonit
has estimated the costs of renovation and is currently seeking partnerships with hardware
and software manufacturers. We have also, secured registrations and license deals with
the software manufacturers to ensure proper legality of printed tutorial. Izonit is currently
seeking an investor and key management personnel to include:
Chief Financial Director
•
Chief Technology Director
•
Chief Operations Director
•
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6. Legal Status and Ownership
Izonit, LLC is registered under the laws of Tennessee. Izonit will also follow the local
business laws of Davidson County.
Ownership of the business is allotted up to five individuals. The President will have an
initial 51% stake in the business after he contributes $25,000 of personal capital for start-
up costs that include, professional services, marketing and initial inventory. The Chief
Financial Director, Chief Technology Director and Chief Operations Director will be
entitled to 12% ownership. Izonit plans to keep 3% of the equity for retained earnings.
Izonit is seeking an investor to contribute $423,000 with 15% return on investment.
These funds will be used for construction costs, additional rent and proper working
capital. Izonit will also be seeking a secure bank loan of $140,000 for equipment
purchases and furniture. This loan will be amortized over 10 years with an interest rate of
11%.
Industry Analysis
Izonit is prepared to enter the industry while taking full advantage of the increasing
opportunities of the computer market. Izonit will be belonging to three specific industries
based off of the services we provide, Computer Rentals, Computer Training and Digital
printing.
Industry Overview
While being a service-based company, Izonit will belong to three of the fastest growing
industries in the computer related sectors. According to the Census Bureau, Computer
Rental industries have an annual growth rate of 14.8%, Computer Training industries
have a growth rate of 5.5% and the Digital Printing industries have a 97.8% growth rate
as of 2002. This is impressive in comparison to the 4.9% GDP of the nation as a whole.
These industries are expanding to offer new services, better quality and personalized
experiences.
Market Opportunity
The increasing prices of newer, better equipment and software has put a cap on what the
average consumer can afford. The consumer will evaluate the price of the equipment in
comparison to how often they will use it, if they will learn the software and if they can
become proficient in using the gear without the burden of formal training. Izonit will
provide the consumer a place to rent this professional software they dream about without
buying hundreds of dollars worth of software that they do not understand.
The market is emerging with these consumer workstations through more stable industries.
Few companies offer a workstation for the consumer, but they are built into an already
existing printing industry. The industries have a strong potential for profit. Izonit expects
to have around a 95% mark-up on services due to the low costs of goods and fixed
expenses. While there are market leaders in the printing industry, there are no leaders
within the computer rental service. There is a few strong companies that offer computer
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7. training; however, they are equivalent to trade schools and are looking for fully
committed students. We work with the consumer’s needs, not make the consumers work
around us. The customers also have the ability to train themselves through tutorials. This
eliminates the risk for a customer to break their budgets to buy expensive equipment until
they have a solid grasp of what they have the potential to do. Seasonal trends will be
important in deciding to increase focus of the two target market trends. Summer and
winter will be increased focus at the business sectors, while in spring and fall, we will be
increasing student sectors
Barriers to Entry
There are some barriers to entry. The equipment is expensive to acquire and even harder
to find certified individuals to be employed. The equipment requires an extensive amount
of updates and ever changing standards. Izonit will have to stay current in technology to
maintain the excitement from the public. Additionally, the few companies that have
market share in these industries have a strong brand that must be conquered to gain a
foothold for new competitors. The loyalty of the consumers is not one of strong desire,
but rather, the frequency of the larger companies come to mind when thinking about
businesses already in this market.
Long Term Opportunities
Izonit has the ability to stay relevant for years to come. Even with the rise of computer
purchases for consumers, the professional gear prices will continue to stay out of reach of
the hobbyist and beginners. This is the basis of our business model. After the initial
purchases of our equipment, our overhead is low and provides a high margin for profit.
This holds true as the technology changes and integrates more into a mobile generation of
computers. We teach the public how to use equipment so they can create different medias
for their own purposes. As these purposes change, so will Izonit and the Izonit staff, so
we will always be held to a higher standing in closing the professional-consumer gap.
Izonit is ready to take advantage of the industries that we are associated with. These
industries have a proven success rate by staying ahead of the nation’s GDP, as well as
poised to adapt to newer technology.
Target Market
Market Description
Izonit will be operating from with inside of central Nashville. We will provide services to
the greater Nashville area and Davidson County Tennessee. Izonit will be targeting
consumers and small-medium sized businesses that have a high need for computer
services and computer creations. The geographic area includes:
Nashville
•
Brentwood
•
Ridgetop
•
Lakewood
•
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8. And the business centers of:
• Madison
• Oak Hill
• Old Hickory
Market Size & Trends
The greater Nashville area is a strong and healthy economic area. The population stands
approximately around 578,698 according to the 2002 census. The area has a median
household income of $43,392. Nashville’s MSA has a per capita income of $42,092
which is 106% of the United States per capita income. Davidson County is ranked second
in the state based off of per capita income, following nearby Williamson County. Our
target market has a growth rate of 8.7% annually. (2002 Census)
The business climate continues to show promising results due to being the state’s capital
and world known for its musical talents. Also located within Nashville is:
An international airport
•
Several tourist locations,
•
A major medical center
•
A number of colleges and universities
•
According to the 2004 census, the top three industries are shown with the number of
establishments:
Professional, Scientific and Technical Services, 2,018
•
Wholesale Trade, 1,585
•
Health Care and Social Assistance, 1,542
•
Top Five Private Employers Number of Employees
Vanderbilt University and Medical Center 16,327
HCA Inc. 9,657
St. Thomas Health Services 8,500
Nissan North America Inc. 6,600
Shoney's 4,000
Top Five Public Employers Number of Employees
State of Tennessee 19,234
U.S. Government 11,116
Metropolitan Government Nashville & 11,108
Davidson County
Metro Nashville-Davidson County Public 10,500
Schools
Sumner County Government & Public 3,996
Schools
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9. Target Customers
The customers that Izonit will target will include persons 16-45 years of age and an
income level will range from $25,000 to $55,000. We will target both sexes from any
ethnicity. Our individual consumers can be students of high school and college, or older
adults trying to gain a grasp on this fast paced technological society. These individuals
are more likely to indulge in computer creations, as well as, be willing to learn the
features of our state-of-the-art computer suites.
Izonit will also target small and medium sized businesses. These companies will be
established for one to ten years with an annual gross revenue from $500,000 to
$5,000,000. These businesses would be willing to use Izonit’s services primarily for
graphic and logo design. This will save them several hundred of dollars by not utilizing
freelancers and work-for-hires. The nature of the businesses we target is versatile,
because the nature of services we will provide. Managers of these businesses will be
charismatic, responsible and sensitive to added value. Smaller businesses may view
Izonit as an extra expense until they are stable enough to expand their own marketing
budgets while the larger companies may have their own marketing team that is equipped
with the necessary software.
Market Readiness
Izonit has not had the opportunity to survey the population of our target market in
Nashville; however, Nashville offers favorable statistics for our market. There are over
10 high schools and over 22 colleges/universities located in the greater Nashville area.
The largest, Middle Tennessee State University, has over 22,000 students. The
educational system today incorporates multiple computer classes and a higher amount of
digital media creations for projects and assignments. If Izonit can reach just 3% of the
student body at Middle Tennessee State University, that will result in over 660
customers.
The business-to-business sector is equally impressive. With over 39,000 businesses in the
Nashville area, Izonit has great promise in gaining trust from several small and medium
business owners.
Strategic Opportunities
Izonit will form strong community ties with business owners, school boards and general
educators to identify new potential clients and in increase productivity in both our fragile
business sectors and young adult students. Our services will give our customers a
cheaper, more productive resource to create professional grade content. Students can save
on purchasing equipment to deliver projects and businesses can reduce their marketing
production budgets. Izonit plans on attending open-house meetings with local
government and help co-sponsor community events. Networking with these businessmen
and women, Izonit will be able to gain viral marketing among the elite and further prove
our dedication to help others learn new software and equipment. The school’s officials
will help assist Izonit by recommendations to the student body, as well as include Izonit
in new student handouts about the local areas.
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10. By identifying our market, Izonit has overwhelmingly favorable odds in becoming
successful. Nashville is the perfect city to perpetuate this business because the large
amount of schools and businesses in need and the large population of our target
demographic. There is a substantial need for our services, and there is very little
competition.
Competition
Izonit stands in good faith in the competition analysis. Due to the specific nature of our
business, there are few companies offering the same services. Some of the competition
offers similar services; however, there are no known businesses that offer all the aspects
of Izonit. Izonit is a unique business concept that includes:
Digital Design
•
Computer Rental
•
Printing
•
Educational support
•
Izonit does not plan on competing with software training from manufacturers, University
and other school educational resources and government funded resources. Izonit will
consider private computer training programs as competition. Izonit will focus on three
key competitors in the greater Nashville area. Each key competitor is competing with
Izonit in a different industry.
Key Competitors
The first and largest competitor is FedEx Kinko’s. With over 10 separate locations in the
greater Nashville area alone, they have successfully gained strong brand recognition and
loyal customers. FedEx Kinko’s is financially healthy from the parent company and have
the capital resources to expand efforts with a new competitor gaining market share. They
also offer user workstations with some digital manipulation software, as well as, high-
quality digital printing.
The next competitor, Logoworks, is an online business that specializes in graphic design
for clients. A professional creates the work by submitting certain criteria of the
consumers’ choice. The consumer is then limited to a number of revisions before
acquiring extra charges. The final product is then sent in a digital format directly to the
consumer. They offer competitive rates and package deals that may drive business from
Izonit. Logoworks has formed partnerships with office supply chains such as, Office
Depot and Staples.
The last key competitor, New Horizons Computer Learning Center, has only one location
in the greater Nashville area. They focus on software training in a formal educational
atmosphere. The programs offer certifications and additional computer training and the
program is structured around a strict schedule.
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11. Other Competitors
Other competitors will include freelancing artists, mom and pop design companies, work-
for-hire companies and computer tutors. As Izonit grows, we expect copycat businesses
to appear. Presently, very few companies impose a specific threat to Izonit because of our
wide view of service offerings.
Competitive Positions
The market share could not be officially acquired; however, local market shares can be
estimated based off of size, nature and number or locations. Our estimates are as follows:
FedEx Kinko’s has over 10 separate locations in the greater Nashville area. Due
•
to the nature of services provided, we estimate they have over 50% of the market
share of computer rentals and printing industries within Nashville. While FedEx
Kinko’s offers user workstations, the equipment is not state-of-the-art, nor do they
have staff trained specifically for the software. Their primary business is to sell
office supplies, printing and shipping.
Because Logoworks is an online business with physical locations acting as
•
partners, the room of local market share is low. Within Nashville’s graphic design
industry, we expect Logoworks make up around 10% of the market. With Internet
presence becoming more prevalent, online businesses may increase their
Nashville market share. Logoworks is not a personable business and they retain
rights to the work they create.
New Horizons Computer Learning Center has only one location and they are very
•
limited in the nature of services. Research of the computer training industry of
Nashville, we estimate that they have less than a 10% market share.
Advantages Over Competition
In relation to our present competitors, Izonit offers several services and experiences that
will separate us from our competition. Some of these concepts are as follows:
Personalized services to fit the users’ needs
•
User workstations for creation of their own digital works
•
State-of-the-art technologies, computers and software
•
Trained staff on perpetual patrol to help struggling users
•
Additional educational tools available upon request
•
High quality small and medium sized print jobs
•
Personal face-to-face customer service and support
•
User storage space
•
Local advantages of loyalty, benefits and resources
•
Future Competition and Their Barriers to Entry
The barriers to entry for future competitors are relatively difficult. High start up costs for
equipment and software combined with having the properly trained staff is the biggest
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12. barrier. Existing companies have gained high brand recognition, as well as gained
customer loyalty. Future competition will need to have unique position to gain market
share in the industries that which Izonit specializes in. Existing establishments may be
slow to adapt new services to further compete with Izonit based off the protocols of large
corporations.
Strategic Opportunities
Research of the growing industries and large numbers of potential consumers give Izonit
a higher chance of survival. We will target a market that live on the edge of digital
transitions and will not only provide equipment that is out of their price range, but teach
them how to properly use the software for there own personalization of digital media.
With high value of education, we hope to team with various partners to give Izonit a local
loyalty that our competitors will be lacking.
The competition appeals to a large number of customers on many levels; however, there
is a technological gap that is being neglected. Izonit will have the personable, local home
field advantage that will separate our services from the larger corporations’.
Strategic Position and Risk Assessment
Izonit has one objective, to be Nashville’s leading computer experience. To conquer this
goal, we have developed a strategic position that focuses on.
Customized educational tools
•
High end computers and software
•
User experience
•
Face-to-face customer support
•
Izonit’s Strategic Position is based off of the following factors:
i. Industry Trends
ii. Target Market
iii. Competitive Environment
iv. Company Strengths
v. Risks
Industry Trends
As the more of the American culture shifts to a digital continuum, the amount of
computer skills needed in the business setting is increasing. Schools are requiring work
assignments to be typed, printed and leaning to multimedia presentations. Likewise, small
to medium sized businesses are demanding that they gain more for their marketing
dollars. This shift to digital is increasing year after year.
Target Market
The target market is increasing in the student/young adult sectors. Nashville is home to
over 23 high schools and universities. This particular market is more accepting of
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13. computer related medias, as well as, they tend to be less-price sensitive when compared
to the older age group of our target market. The business market is strong and healthy in
Nashville, and many are preparing to market internationally. This will increase their need
for high quality ‘ad hocs’ and online promotion.
Competitive Environment
There are several businesses in the greater Nashville area that may offer services not
unlike Izonit’s; however, there is not a business that offers all of Izonit’s services. This
will allow Izonit to form relationships with schools, businesses, charitable organizations
and government/municipality entities. The competition will be strong with companies
such as FedEx Kinko’s. They have similar services and financially backed by the parent
company. We expect competitive pressure from them, especially if they widen their
services.
Company Strengths
Izonit’s staff is trained in all the latest software for Apple and PC. They are always on
patrol to help struggling users, guiding a beginner to the right direction and offer
personable support. We are able to translate descriptions of ideas to help a user choose
which program is best for their specific needs.
Risks
With the increase of consumer technology, a major risk is that prices of more advanced
technology may become more affordable for our target market. With this more affordable
technology, consumers may lose the need for rental computers. As a start-up business,
Izonit must be able to secure additional capital for increased marketing campaigns that
will compete with larger businesses. We will also face the risk of existing companies
with stronger brands to widen their scope of business and gain more of Izonit’s market
share. Izonit is completely dependent on electrical power. While there is insurance that
can help mediate damages, total power outage will render Izonit ineffective. This risk can
be mitigated with the use of auxiliary power sources. The last risk that we may face is
user infringement on copyrighted material. This infringement may increase the legal
liability that Izonit will face.
Strategic Position
Even in light of recognizing our risks, we have concluded that our biggest risk is our
competitors expanding their services. We will have to wisely choose our target market,
and suit the needs of our consumer to separate our services from the competition. In
regards to future competitors, Izonit will have formed relationships and loyalty with
strategic members of our community.
We believe that even in light of cheaper, easier to use equipment and software, there still
will be an added value for our consumers to continue to utilize our services. Professional
grade equipment is complicated and meticulous for an average computer user to master.
With our educational services and trained staff, customers can effectively learn the skills
and knowledge to create the content of their choice.
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14. The narrow target markets we serve are less sensitive to traditional advertising and
traditional products and services; however, the brand loyalty they share is strong. They
are early adapters, trendsetters and they represent the next creative generation. Izonit can
appeal to their needs by creating a creative environment, unlimited resources and a place
for like-minded individuals to network.
Marketing Plan
Izonit will distinguish itself from the competition by relating our services to the needs of
our customers. We understand how our target market thinks, how they behave and what
they value, far better than our present competition. Today’s market thrives on
personalized experiences and Izonit is the only business that fully provides the customer
a chance to have a customized experience.
Unique Position in the Market
With the increase of digital medias and our society’s perpetual transition to digital
creations, Izonit has an edge over our competitors. Consumers demand higher quality,
productive and personalized experiences in their entertainment and educational choices.
Izonit not only provides professional quality, but we empower our customers to think
outside of the norm to learn, operate and master their own arts. Izonit realizes our
consumers also want:
Creative freedom User friendly instructions
• •
Affordable prices Creative environments
• •
Ease of use Understanding support
• •
Izonit realizes these consumers want to be treated as professionals, even though many
may not have ever used a computer. Izonit’s slogan “Revolutionize your digital world” is
the essence of user empowerment. It tells the consumer that they can. Even the Izonit
name signifies the importance of user creations by playing on the words “Eyes on it” as if
to attract attention to what the user is capable of, while keeping it memorable and unique.
Marketing Plan
Izonit has a unique marketing plan that includes radio and television advertising, print
advertising in local and niche newspapers, online advertisements and participating in
industry trade shows. We will be able to produce the marketing material ourselves by
using our professional equipment. This will greatly reduce our expenses and allow more
placements for our marketing dollar. We also plan on using an ad agency to help buy ad
placement for various medias that include radio and television commercials. Izonit plans
to utilize street teams to pass out flyers and brochures around Nashville with a greater
focus on campus grounds. Izonit wishes to gain the respect of school boards and
educators alike in order to have their backing and referrals for our hands on training and
educational supportive tools. As broken down in our marketing budget, we have allocated
$10,000 annually for hiring an advertising agency to place ads, $12,000 annually for print
advertising placement and $5,000 annually for radio and television advertising
placements.
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15. Izonit will form close ties to the Nashville Chamber of Commerce and respectable
business clubs by memberships and sponsorships. In doing so, we hope to gain the trust
and respect of small and medium sized businesses so that we may gain them as long-term
customers.
Sales Strategy
Every member of our staff, as well as our customers, is vital to our overall sales strategy.
While our staff is on perpetual patrol to help those in need, they will not be alone on the
floor. We will ensure all customers are greeted as they come into our business. There will
be a front desk located near the entrance, and all persons will check in with the employee.
Each employee is responsible for answering questions and selling our services. We
encourage visitors to tour the facility and view our showcased customer’s creations. All
of our employees will not only be trained in tech services, but also be well versed in
salesmanship. The process is simple to register new customers because we will
implement a computer program to input all needed information. The management team
will conduct regular checks to ensure proper steps are taken and will supervise the Izonit
team. Forms of payment will vary; however, we will accept cash, credit cards, money
orders, gift certificates and business checks. We will not accept personal checks due to
liability risks.
Operations
Overview of Company Operations
As a customer walks in the door, they will be greeted promptly by one of our employees.
If the visitor is new, they will be offer a tour and information on what is possible in our
studios. Return users will check in with our desk and be directed to the station that suits
their needs. Customers will have the reassurance of trained staff nearby to answer
questions, give tips and assist with tutorial help. The environment is creative with various
artworks from staff and other customers and we will have dim, but visible light to
increase imagination. Our facility will be located in a “Class A” office space with 5,000
square feet. Rent will be $10.00 per square foot annually. Additionally, we expect to
spend $25.00 per square foot for renovation and construction costs. Izonit will be open 7
days a week, for 12 hours a day. Utilities will be high with an average amount of $1,500
monthly. Seasonal factors will vary on a low scale. During summer and winter months,
climate control will raise the amount of kilowatt-hour; however, we expect a lower
amount of occupancy during these months. Likewise, spring and fall months will lower
climate control costs, but the amount of occupancy will increase with the change of
school semesters. The Chief Operations Director will ensure proper scheduling and
performance checks on employees. Employees and management will wear matching
uniforms consisting of shirt color and style. T-Shirts or Polo’s will be worn with jeans or
long-legged pants. All personal will act as cashier, greeter, helper or educator as the time
call for need. Izonit’s president and vice president will maintain responsibility for
accounts receivable and ensuring the accountant is up to date on deposits and withdraws
from our account.
Proprietary Information 13
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Confidential

16. Efficiencies
Izonit will use computer software to keep basic finances and employee scheduling to
increase productivity. In addition, Izonit will use basic office tools and software to ensure
proper communication. Suppliers are abundant and reliable in the greater Nashville area,
making purchases very easy. Inventory is low, affordable and easy to replace. Izonit
performs all tasks on site; however, large-scale printing will be outsourced to a larger
printing business. Izonit will issue club cards for members to sign in and out of the
facility to base the billing amounts. Also these club cards will record which client used
which machine at what time. This will assist in targeting theft, damage or trouble-
shooting.
Competitive Advantages
Izonit will provide a service that no other business offers, namely digital craftsmanship.
We provide our customers with state-of-the-art tools, used by industry professionals, and
make available hands-on training how to create their own digital works. We will
encompass 25 high-end computers in sectioned areas according to interests. This gives
the customer the power to work on what media is important to them with professional
tools for maximum quality. The product is the print or final version of the work the
consumer makes. Additionally, Izonit will offer classes and have tutorials available for
easy learning.
Problems Addressed
To date, our biggest problem is ensuring licensing is up to date and properly registered.
These licenses are secured through software manufactures to allow us to create tutorials
for our educational services. Piracy is another pressing issue. To prevent theft, Izonit will
implement anti-piracy software, user logs and video surveillance. Customer suggestions
and complaints can be inputted in-store and on the Izonit website, and all customer
problems will be addressed promptly by a management member. Located within blocks
from major universities, interstates and business districts, we sit in the prime location for
attraction. The facility offers ample parking, maximum visibility and it is in the center of
9 schools.
Technology Plan
Izonit will have a large technological responsibility. Our mission is to provide high
quality, professional gear to consumers. Izonit can only stay as advanced as the machines
we rent. To ensure our status is protected, we must keep our gear updated and running
with the speed and quality our customers will expect, if not better. Izonit will form
relationships with our manufactures to keep costs low and to ensure the maintenance of
equipment is above par. We have separated our technology into four major sections to
break down every component we will be facing, Software, Hardware,
Telecommunications and Website plans.
Software Needs
Izonit will need to implement several software programs to conduct business. First and
foremost is the creative software that will be used by Izonit staff and customers. Software
Proprietary Information 14
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Confidential

17. to be included is Adobe Creative Suite, Avid Video and Final Cut Pro, Pro-Tools,
Microsoft Office and iWork. Izonit will be using Windows Vista and Quick Books
Accounting software on the POS system. Additionally, Izonit will implement other
software to help prevent theft or piracy of software in use, as well as, software to be
designed or created as needed for specific purposes. Izonit will ensure all software is
properly licensed and maintained up to date on current up dates and changes in the
industry. We will have a maintenance contract with the manufacturers to help ensure
maximum performance.
Hardware Needs
Izonit will have 25 Apple desktops for customer use and they also will be utilized as
equipment for employees to use as needed. The office will also use an Apple computer
for general business operations. All members of Izonit’s management team will be issued
an Apple MacBook for managerial operations. These laptops will be able to log into the
Izonit network through remote access. Izonit will have a centralized server to host
networks and storage space for both customer works and business back-ups. Izonit will
have three commercial printers and scanners installed to our network for customers to
have their works printed. Additionally, Izonit will implement a POS system and video
surveillance as well. To ensure proper care and maintenance, Izonit will have contractual
agreements with hardware manufacturers to maintain the gear and correct discrepancies.
Telecommunication Needs
The telecommunication needs of Izonit will be small in comparison to other technological
needs. Izonit will have most communication and network lines installed in the
construction process. We will implement a 5-line telephone system for business
operations. This will provide an extension for all management members and provide
communication for general business use. Izonit will also have a fax machine in place for
both customer and business use. Networks will be designed open ended by contracted IT
companies and will serve as the Izonit’s matrix. Additional telecommunications will be
designed by Izonit staff as needed for business expansion.
Website Plan
Izonit’s website will be built primarily as a marketing tool; however, sections will be
required to communicate with the servers. These functions are to include, contact us,
reserve blocks of time and RSVP for events and classes. Also, registered members will be
able to upload content onto the website to be later retrieved in store. They will have the
opportunity to showcase work, network through forums, learn tips from Izonit Blogs,
IzonBlogs, as well as download content they created onto their own personal devices. In
support of the social site trends, we will implement HTML code generators for users to
upload their works online in various areas of the web that accepts HTML. In light of
these codes, Izonit will display codes of Izonit logos and designs to encourage users to
display our site to stir viral appeal.
Proprietary Information 15
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Confidential

18. Management and Organization
Key Employees
Kenneth Rodgers, President. Prior to the creation of Izonit, founder, Kenneth Rodgers
served honorably in the United States Marine Corps as an airport firefighter. He exceeded
in delegating duties to individuals and ensuring fire protection for hundreds of military
aircraft. This fast paced environment proved to be a daily challenge for training
subordinates and ensuring everyone’s safety. These experiences taught him the value of
working in and managing teams, attention to detail and always preparing for the variables
in our position, because lives depended on our attentive responses. After he was
discharged honorably, Kenneth Rodgers enrolled into Full Sail University, where he
earned an Entertainment Business Master of Science degree. He has completed extensive
hands-on training in marketing and advertising, business and entertainment law and
project management courses, as well as various technical skills. Rodgers will own 51% of
Izonit’s equity and acts as liaison for the Advisory Board.
Chief Financial Director (To Be Selected). In December 2008, Izonit will add this key
person to our team. The Chief Financial Director will have a four-year degree in finance
or business equivalent. This candidate will have a proven track record of handling
business finances for eight years. This member will have excellent communication skills
and he/she will be responsible for any decision making in the absence of the President.
They will also be responsible on a daily basis to make decisions without consent for
Marketing/Promotions up to the amount of $300.00. The Chief Financial Director will
own 12% equity in Izonit.
Chief Technology Director (To Be Selected). In December 2008, Izonit will add this
key person to our team. The Chief Technology Director will be responsible for training
new employees, arranging classes and ensuring all equipment is up to date. Chief
Technology Director is also responsible for ensuring all licenses and contracts with our
software/hardware is current. This candidate will have a four-year Technology degree or
business equivalent. He/She will have eight years technical experience and will have
handled technical operations for another company with proven results of growth or
success. They will have excellent communication and technical skills. The Chief
Technology Director will own 12% equity in Izonit.
Chief Operations Director (To Be Selected). In December 2008, Izonit will add this
key person to our team. The Chief Operations Director with have a four-year Managerial
degree and eight years management experience. Chief Operations Director will be
responsible for all daily operations and scheduling of any employees. This candidate will
have excellent communication skills, as well as handled operations for technical company
for another company with proven results of growth. The Chief Operations Director will
own 12% equity in Izonit.
Proprietary Information 16
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Confidential

19. Consultants
Izonit will hire the consult expertise of an attorney and an accountant. Steve Weaver,
founder of the Music Row Law Firm, will assist Izonit with legal advice. He specializes
in entertainment, intellectual property and business law. He will be compensated a $3,000
retainer and will be re-hired as needed. Izonit will use CPA for Small Businesses, LLC
for accountant duties. They specialize in small businesses and will perform duties of
payroll and local/federal tax filings. We will pay an initial retainer of $2,000 and will re-
hire as needed.
Advisory Board
Izonit will form an Advisory Board to help guide Izonit into success. These members will
help provide networking contacts, suggestions for business operations and help Izonit
maintain the professional services we offer. These members will meet once a month
initially, and then move to quarterly meetings. Compensation for travel and food will be
provided. These members will consist of, but not limited to the following:
Professors from local universities
•
School Board members
•
Graphic Designers
•
Entertainment businessmen/women
•
Management Structure
President, Kenneth Rodgers, will be involved in all day-to-day aspects of business
operations. All management team members will have a large degree of decision-making
authority; however, each will work closely to the President to ensure supporting activates
are met in their areas of responsibility. Izonit has focused on a 360 degree-management
style and encourages creativity in the workplace. All employees will be allowed access to
free use of equipment and reviews of performance may warrant pay raises.
Proprietary Information 17
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Confidential

20. President Advisory
Board
Chief Chief Chief
Financial Technology Operations
Director Director Director
Training Employees
Materials
Community Involvement & Social Responsibility
Company Philosophy
To help Izonit stay ahead of customer needs and to also gain their unchained loyalty, we
will adapt several traits to maintain our focus and desire to better serve our community.
Our “Company Philosophy” will consist of the following:
We will treat every customer and employee with respect and dignity;
•
We will promptly solve any customer concern;
•
We will be fair to our suppliers, customers and each other;
•
We will take responsibility for our actions;
•
We will consider community impact with every decision;
•
We will give back to the community that helped build our success;
•
We will take great efforts to continue satisfying our customers while maintaining
•
high profitability and growth;
Community Involvement
Izonit will contribute free services to not-for-profit charities to help them lower the
operating and production costs they may incur. Izonit believes students are the future of
our society and we would like to reward those who work hard. Based off of educator
recommendations, Izonit may give free memberships and services to those who step
above the crowd in academic performances. Izonit will contribute free or discounted
services to local schools and universities and sponsor events to a limited quantity as we
see fit.
As the events in our community evolve, Izonit is prepared to volunteer manpower and
other services to help with fund raising, cleaning up forces of nature and other events. We
Proprietary Information 18
Izonit, LLC
Confidential

21. will help where we can, when we can, however we can, for the benefit of our
community’s future.
Other Policies
Izonit recognizes the environmental impact of e-waste. Electronic waste such as, old
mobile devices, computers, televisions, ink cartridges and other used/old byproducts of
electronics, is dangerous for our health, environment and future. Izonit will implement e-
waste recycling programs and encourage the community to do so as well. Izonit will
recycle all recyclable wastes and will have recycling drives for all members of the
community. We want to increase awareness of e-waste and our actions will speak
volumes over just talk.
Development Plan
Long Term Goals
Izonit plans to grow steadily over the first 5 years, while maintaining the mind of the
consumer. By 2013, Izonit wants to have 30% of the market share at minimum. Within
10 years of existence, we want to expand our company to another location, perhaps
Knoxville. By expanding to this location, Izonit will capture both Middle and East
Tennessean markets.
Strategy for Achieving Goals
As business grows, Izonit will re-evaluate our position every year. Upon re-evaluations,
Izonit may add employees, equipment and services. We estimate adding 4 additional
employees by the year 2013. In due time with the technological trends, Izonit may add
new platforms and software to reach another audience. After the fifth year, Izonit may
consider relocating to a larger facility to help accommodate our business’s growth.
Izonit will increase advertising as the business grows. This will attract new customers,
retain current customers and grow awareness in the community. Also, increasing research
and development will assist us in researching the Knoxville market. If this new market
shows favorable trends, Izonit would like to open a new location within 10 years.
Izonit will ensure debt is managed and investors are paid back. We will accomplish this
through smart financial practices. Our investors will gain equity in Izonit to help lower
debt owed, as well as provide sources for future investments as needed. Bank loans will
be paid a monthly amount of $1,900. The total loan is $140,000 with an interest rate of
11% over 10 years.
Risks
Izonit will encounter risks with the concept of branching to new locations. The Knoxville
market is similar to Nashville’s; however, there may not be a burning need for our
services. Through proper research and evaluations, Izonit will be able to reduce these
risks. Izonit may face copycat companies looking to gain market share in this new area,
but through increased advertising, Izonit will differentiate itself from these competitors.
Proprietary Information 19
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Confidential

22. Exit Plan
Izonit will have the investor paid back in full, plus interest by the end of the third year. At
this time, the investor will be offered a 10% share in Izonit. At the end of year 10, Izonit
will consider franchising at a regional or national level. With key members and the
founder still actively involved, we will grow along side of the company. The key
members will be encouraged to stay with Izonit while maintaining their equity. As we
individually see fit, we will sell our equity back to the company and retire or pursue
future endeavors.
Assumptions
The figure on the following financial forms are based on these assumptions:
Product Line Year 1 Year 2 Year 3 Annual
Net sales/ Net sales/ Net sales/ Growth
Units Units Units Average
Yearly $132,202/ $450,272/ $895,898/ 170%
1,988 6,771 12,574
Memberships
Monthly $101,698/ $323,760/ $609,862/ 153%
Memberships 2,141 6,816 11,672
Hourly Rates $27,398/ $63,403/ $86,498/ 84%
1,442 3,337 3,642
Educational/Printing $21,917/ $27,061/ $46,056/ 47%
1,538 1,899 2,424
Totals $283,214 $864,294 $1,638,313 133%
Average
The above figures are based on a 241% increase in year 2 for Yearly memberships and a
99% increase from year 2 to year 3. The Monthly memberships have a 218% increase
from year 1 to year 2 and 88% for year 3. Hourly rates will increase 131% in year 2 and
36% for year 3. Additionally, Education and Printing will increase 23% in year 2 and
70% for year 3. Price increases of 5% are added in year 3. Units are defined as individual
payments.
Personnel
Staff will stay the same for the first three years of operation. Izonit will maintain five
employees and four management members. Additional personnel will be included in the
Advisory Board, and may be increased as business success grows. Izonit may also offer
internships in year 3 or 4, depending on growth. All staff members will be full-time.
Expansion
Izonit will stay at the same location for five years minimum as according to the leasing
contract. At the end of year 4, we will evaluate the status, and may relocate to a larger
facility.
Proprietary Information 20
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Confidential

23. Financing
Currently Izonit is seeking an investor to contribute $423,000 at 15% interest. This
amount will be paid back in full at the end of year 3. Due to the lack of profit in year 1,
we will contribute 80% net sales to the investor to accommodate the ROI. Izonit’s
investor will be offered 10% equity to maintain the investor in the Advisory Board and
for future investments. Izonit is in the process of securing $140,000 as a business loan
with 11% interest for a term of 10 years. Izonit’s President, Kenneth Rodgers, will
contribute $25,000 from his personal account.
Proprietary Information 21
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Confidential

24. Sources and Uses of Funds
Number of funding rounds expected for full financing : 1
Total amount being sought in this round: $588,000
Sources of Funds
Equity Financing
Preferred Stock : $0
Common Stock : $0
Debt Financing
Mortgage Loans: $140,000
Investor Loan $423,000
Short Term Loans: $0
Convertible Debt: $0
Investment by Principals: $25,000
Total Source Funds $588,000
Uses of Funds
Capital Expenditures
Facilities $135,334
Equipment $134,956
Purchase of Equipment/Furniture: $0
Other :
Working Capital
Materials and fees $24,500
Staff Expansion $0
Product Introduction $0
Additional Marketing Activities $0
Other Business Expansion $0
Other:
Debt Retirement: $0
Total Use of Funds $294,790
Cash Reserve: $293,210

25. Start - Up Costs
( initial capital expenditures)
Facilities
Land __
Building __
Initial Rent $8,334
Deposits (Security/ Utilities/ etc) $2,000
Improvements / Remodeling $125,000
Working Capital $0
other: __ $135,334
Equipment
Furniture $13,600
Printers $2,247
Computers $74,375
Computer Maintenance $7,437
Software $19,875
Software Maintenance $1,987
Management Computers $4,396
Management Computers Maintenance $439
Server $2,500
Server maintenance $250
Cash Registers / POS Terminals $3,500
POS Maintenance $350
Telephone / Telcom equipment $1,200
Security $2,800
other: __ $134,956
Materials / Supplies
Office Supplies $3,000
Stationary / Business Cards __
Brochures / Pamphlets / forms __
other : __
other: __ $3,000
Fees and other Licenses, Permits $5,000
Trade or Professional __
Attorneys $3,000
Accountants $2,500
Insurance $3,500
Marketing / Mgt Consultants __
Design / Technical Consultants $3,500
Advertising / Promotion $2,500
Registration fees $1,500
other: __ $21,500
TOTAL Start - Up Costs $294,790

26. Income Statement by MONTH first year of operation Izonit, LLC
for the year 2009 JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEPT OCT NOV DEC TOTAL
INCOME
Gross Sales $6,115 $9,395 $12,425 $15,930 $19,190 $22,555 $25,910 $29,340 $33,110 $37,075 $41,260 $45,815 $298,120
(commissions) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(returns / allowances) -$306 -$470 -$621 -$797 -$960 -$1,128 -$1,296 -$1,467 -$1,656 -$1,854 -$2,063 -$2,291 -$14,906
NET SALES $5,809 $8,925 $11,804 $15,134 $18,231 $21,427 $24,615 $27,873 $31,455 $35,221 $39,197 $43,524 $283,214
(Cost of Goods Sold) $734 $1,127 $1,491 $1,912 $2,303 $2,707 $3,109 $3,521 $3,973 $4,449 $4,951 $5,498 $35,774
GROSS PROFIT $5,075 $7,798 $10,313 $13,222 $15,928 $18,721 $21,505 $24,352 $27,481 $30,772 $34,246 $38,026 $247,440
EXPENSES
Salaries & Wages $24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $295,000
Employee Benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes $2,458 $2,458 $2,458 $2,458 $2,458 $2,458 $2,458 $2,458 $2,458 $2,458 $2,458 $2,458 $29,500
Professional Services $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $5,004
Rent $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,004
Maintenance $0 $0 $0 $200 $0 $0 $200 $0 $0 $200 $0 $0 $600
Equipment Rental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Furniture & Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000
Insurance $233 $233 $233 $233 $233 $233 $233 $233 $233 $233 $233 $233 $2,796
Bank Payment $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $22,800
Utilities $1,400 $1,400 $1,400 $1,400 $1,500 $1,500 $1,600 $1,500 $1,400 $1,400 $1,400 $1,400 $17,300
Telephone Svc $66 $66 $66 $66 $66 $66 $66 $66 $66 $66 $66 $66 $792
Office Supplies $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
Postage / Ship Expense $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
Marketing & Advertising exp $10,181 $2,931 $3,931 $7,681 $2,931 $3,931 $7,681 $2,931 $3,931 $7,681 $2,931 $2,931 $59,672
Travel $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $960
Entertainment $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $900
Technology $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL EXPENSES $48,761 $41,511 $42,511 $46,461 $41,611 $42,611 $46,661 $41,611 $42,511 $46,461 $41,511 $41,511 $523,728
Net Income before Taxes -$43,685 -$33,713 -$32,198 -$33,239 -$25,683 -$23,890 -$25,155 -$17,258 -$15,029 -$15,688 -$7,265 -$3,484 -$276,288
( Provision for income taxes) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
NET INCOME AFTER TAXES -$43,685 -$33,713 -$32,198 -$33,239 -$25,683 -$23,890 -$25,155 -$17,258 -$15,029 -$15,688 -$7,265 -$3,484 -$276,288

27. QUARTERLY Income Statement second year of operation 2010
Izonit, LLC
1st QTR 2nd QTR 3rd QTR 4th QTR year
INCOME
Gross Sales $167,705 $209,180 $245,890 $287,220 $909,995
(commissions) $0 $0 $0 $0 $0
(returns / allowances) -$8,385 -$10,459 -$12,295 -$14,361 -$45,500
NET SALES $159,320 $198,721 $233,596 $272,859 $864,495
(Cost of Goods Sold) $20,125 $25,102 $29,507 $34,466 $109,199
GROSS PROFIT $139,195 $173,619 $204,089 $238,393 $755,296
EXPENSES
Salaries & Wages $77,438 $77,438 $77,438 $77,438 $309,750
Employee Benefits $0 $0 $0 $0 $0
Payroll Taxes $7,744 $7,744 $7,744 $7,744 $30,975
Professional Services $1,314 $1,314 $1,314 $1,314 $5,256
Rent $12,876 $12,876 $12,876 $12,876 $51,504
Maintenance $205 $205 $205 $205 $820
Equipment Rental $0 $0 $0 $0 $0
Furniture & Equipment $0 $0 $0 $0 $0
Depreciation $9,000 $9,000 $9,000 $9,000 $36,000
Insurance $720 $720 $720 $720 $2,880
Interest Expense $5,700 $5,700 $5,700 $5,700 $22,800
Utilities $4,323 $4,545 $4,882 $4,323 $18,073
Telephone Svc $204 $204 $204 $204 $816
Office Supplies $309 $309 $309 $309 $1,236
Postage / Shipp Expense $309 $309 $309 $309 $1,236
Marketing & Advertising exp $17,897 $15,272 $15,272 $14,222 $62,663
Travel $246 $246 $246 $246 $984
Entertainment $231 $231 $231 $231 $924
Technology $0 $0 $0 $0 $0
Other: $0 $0 $0 $0 $0
Other: $0 $0 $0 $0 $0
Other: $0 $0 $0 $0 $0
TOTAL EXPENSES $138,515 $136,112 $136,449 $134,840 $545,917
Net Income before Taxes $680 $37,507 $67,639 $103,552 $209,379
( Provision for income taxes) $238 $13,128 $23,674 $36,243 $73,283
NET INCOME AFTER TAXES $442 $24,380 $43,966 $67,309 $136,096
QUARTERLY Income Statement third year of operation 2011
Izonit, LLC
1st QTR 2nd QTR 3rd QTR 4th QTR year
INCOME
Gross Sales $361,740 $407,445 $451,960 $503,395 $1,724,540
(commissions) $0 $0 $0 $0 $0
(returns / allowances) -$18,087 -$20,372 -$22,598 -$25,170 -$86,227
NET SALES $343,653 $387,073 $429,362 $478,225 $1,638,313
(Cost of Goods Sold) $43,409 $48,893 $54,235 $60,407 $206,945
GROSS PROFIT $300,244 $338,179 $375,127 $417,818 $1,431,368
EXPENSES
Salaries & Wages $81,309 $81,309 $81,309 $81,309 $325,236
Employee Benefits $0 $0 $0 $0 $0
Payroll Taxes $8,131 $8,131 $8,131 $8,131 $32,524
Professional Services $1,314 $1,314 $1,314 $1,314 $5,256
Rent $13,125 $13,125 $13,125 $13,125 $52,500
Maintenance $210 $210 $210 $210 $840
Equipment Rental $0 $0 $0 $0 $0
Furniture & Equipment $0 $0 $0 $0 $0
Depreciation $9,000 $9,000 $9,000 $9,000 $36,000
Insurance $732 $732 $732 $732 $2,928
Interest Expense $5,700 $5,700 $5,700 $5,700 $22,800
Utilities $4,446 $4,724 $5,081 $4,585 $18,836
Telephone Svc $207 $207 $207 $207 $828
Office Supplies $315 $315 $315 $315 $1,260
Postage / Shipp Expense $315 $315 $315 $315 $1,260
Marketing & Advertising exp $18,751 $16,035 $16,035 $14,933 $65,754
Travel $255 $255 $255 $255 $1,020
Entertainment $237 $237 $237 $237 $948
Technology $0 $0 $0 $0 $0
Other: $0 $0 $0 $0 $0
Other: $0 $0 $0 $0 $0
Other: $0 $0 $0 $0 $0
TOTAL EXPENSES $144,047 $141,609 $141,966 $140,368 $567,990
Net Income before Taxes $156,197 $196,570 $233,161 $277,450 $863,379
( Provision for income taxes) $54,669 $68,800 $81,606 $97,107 $302,183
NET INCOME AFTER TAXES $101,528 $127,771 $151,555 $180,342 $561,196

28. Izonit, LLC
Izonit, LLC
Monthly Sales Projections first year of operation
Izonit, LLC
JUNE JULY AUGUST SEPT OCT NOV DEC TOTAL
for the year 2009 JAN FEB MARCH APRIL MAY
Yearly Memberships
Units / volume 25 50 76 102 127 152 177 203 227 253 282 314 1988
Unit price $ $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70
Gross sales $1,750 $3,500 $5,320 $7,140 $8,890 $10,640 $12,390 $14,210 $15,890 $17,710 $19,740 $21,980 $139,160
( commissions ) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
( returns / allowances ) -$88 -$175 -$266 -$357 -$445 -$532 -$620 -$711 -$795 -$886 -$987 -$1,099 -$6,958
Net Sales $1,663 $3,325 $5,054 $6,783 $8,446 $10,108 $11,771 $13,500 $15,096 $16,825 $18,753 $20,881 $132,202
Monthly Memberships
Units / volume 26 52 79 107 134 162 190 219 247 275 308 342 2141
Unit price $ $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Gross sales $1,300 $2,600 $3,950 $5,350 $6,700 $8,100 $9,500 $10,950 $12,350 $13,750 $15,400 $17,100 $107,050
( commissions ) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
( returns / allowances ) -$65 -$130 -$198 -$268 -$335 -$405 -$475 -$548 -$618 -$688 -$770 -$855 -$5,353
Net Sales $1,235 $2,470 $3,753 $5,083 $6,365 $7,695 $9,025 $10,403 $11,733 $13,063 $14,630 $16,245 $101,698
Hourly Rates
Units / volume 70 80 70 82 90 100 105 110 140 175 195 225 1442
Unit price $ $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20
Gross sales $1,400 $1,600 $1,400 $1,640 $1,800 $2,000 $2,100 $2,200 $2,800 $3,500 $3,900 $4,500 $28,840
( commissions ) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
( returns / allowances ) -$70 -$80 -$70 -$82 -$90 -$100 -$105 -$110 -$140 -$175 -$195 -$225 -$1,442
Net Sales $1,330 $1,520 $1,330 $1,558 $1,710 $1,900 $1,995 $2,090 $2,660 $3,325 $3,705 $4,275 $27,398
Educational Materials/Printing
Units / volume 111 113 117 120 120 121 128 132 138 141 148 149 1538
Unit price $ $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15
Gross sales $1,665 $1,695 $1,755 $1,800 $1,800 $1,815 $1,920 $1,980 $2,070 $2,115 $2,220 $2,235 $23,070
( commissions ) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
( returns / allowances ) -$83 -$85 -$88 -$90 -$90 -$91 -$96 -$99 -$104 -$106 -$111 -$112 -$1,154
Net Sales $1,582 $1,610 $1,667 $1,710 $1,710 $1,724 $1,824 $1,881 $1,967 $2,009 $2,109 $2,123 $21,917
ALL PRODUCT LINES
Total volume / units 232 295 342 411 471 535 600 664 752 844 933 1,030 7,109
Total Gross Sales $6,115 $9,395 $12,425 $15,930 $19,190 $22,555 $25,910 $29,340 $33,110 $37,075 $41,260 $45,815 $298,120
( total commissions ) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
( total returns / allowances) -$306 -$470 -$621 -$797 -$960 -$1,128 -$1,296 -$1,467 -$1,656 -$1,854 -$2,063 -$2,291 -$14,906
TOTAL Net Sales $5,809 $8,925 $11,804 $15,134 $18,231 $21,427 $24,615 $27,873 $31,455 $35,221 $39,197 $43,524 $283,214

29. Izonit, LLC Izonit, LLC
Quarterly Sales Projections Quarterly Sales Projections
second year of operation third year of operation
for the year 2010 1st quarter 2nd quarter 3rd quarter 4th quarter total for the year 2011 1st quarter 2nd quarter 3rd quarter 4th quarter total
Yearly Memberships Yearly Memberships
Units / volume 1187 1539 1846 2199 6771 Units / volume 2576 2953 3332 3713 12574
Unit price $ 70 70 70 70 Unit price $ $75 $75 $75 $75
Gross sales 83090 107730 129220 153930 $473,970 Gross sales $193,200 $221,475 $249,900 $278,475 $943,050
( commissions ) 0 0 0 0 $0 ( commissions ) $0 $0 $0 $0 $0
( returns / allowances ) -4155 -5387 -6461 -7697 -$23,699 ( returns / allowances ) -$9,660 -$11,074 -$12,495 -$13,924 -$47,153
Net Sales 78936 102344 122759 146234 $450,272 Net Sales $183,540 $210,401 $237,405 $264,551 $895,898
Monthly Memberships Monthly Memberships
Units / volume 1239 1562 1850 2165 6816 Units / volume 2474 2769 3040 3389 11672
Unit price $ 50 50 50 50 Unit price $ $55 $55 $55 $55
Gross sales 61950 78100 92500 108250 $340,800 Gross sales $136,070 $152,295 $167,200 $186,395 $641,960
( commissions ) 0 0 0 0 $0 ( commissions ) $0 $0 $0 $0 $0
( returns / allowances ) -3098 -3905 -4625 -5413 -$17,040 ( returns / allowances ) -$6,804 -$7,615 -$8,360 -$9,320 -$32,098
Net Sales 58853 74195 87875 102838 $323,760 Net Sales $129,267 $144,680 $158,840 $177,075 $609,862
Hourly Rates Hourly Rates
Units / volume 795 821 844 877 3337 Units / volume 882 903 908 949 3642
Unit price $ 20 20 20 20 Unit price $ $25 $25 $25 $25
Gross sales 15900 16420 16880 17540 $66,740 Gross sales $22,050 $22,575 $22,700 $23,725 $91,050
( commissions ) 0 0 0 0 $0 ( commissions ) $0 $0 $0 $0 $0
( returns / allowances ) -795 -821 -844 -877 -$3,337 ( returns / allowances ) -$1,103 -$1,129 -$1,135 -$1,186 -$4,553
Net Sales 15105 15599 16036 16663 $63,403 Net Sales $20,948 $21,446 $21,565 $22,539 $86,498
Educational Materials/Printing Educational Materials/Printing
Units / volume 451 462 486 500 1899 Units / volume 521 555 608 740 2424
Unit price $ 15 15 15 15 Unit price $ $20 $20 $20 $20
Gross sales 6765 6930 7290 7500 $28,485 Gross sales $10,420 $11,100 $12,160 $14,800 $48,480
( commissions ) 0 0 0 0 $0 ( commissions ) $0 $0 $0 $0 $0
( returns / allowances ) -338 -347 -365 -375 -$1,424 ( returns / allowances ) -$521 -$555 -$608 -$740 -$2,424
Net Sales 6427 6584 6926 7125 $27,061 Net Sales $9,899 $10,545 $11,552 $14,060 $46,056
ALL PRODUCT LINES ALL PRODUCT LINES
Total volume / units 3672 4384 5026 5741 18823 Total volume / units 6453 7180 7888 8791 30312
Total Gross Sales $167,705 $209,180 $245,890 $287,220 $909,995 Total Gross Sales $361,740 $407,445 $451,960 $503,395 $1,724,540
( total commissions ) $0 $0 $0 $0 $0 ( total commissions ) $0 $0 $0 $0 $0
( total returns / allowances) -$8,385 -$10,459 -$12,295 -$14,361 -$45,500 ( total returns / allowances) -$18,087 -$20,372 -$22,598 -$25,170 -$86,227
TOTAL Net Sales $159,320 $198,721 $233,596 $272,859 $864,495 TOTAL Net Sales $343,653 $387,073 $429,362 $478,225 $1,638,313