Veggie Heaven Business Plan

Abby Rosen Veggie Heaven 1 of 23
Abby Rosen
Veggie Heaven
Opening July 2014
Business Plan

Table of Contents
I. Executive Summary 3
II. Business Description 4
Product/Service Description 5
III. Industry/Market Analysis 6
IV. Marketing Plan 10
V. Management Team/ Personnel/Skills 11
VI. Financing Needed 13
Sources &Uses of Funds 13
Capital Expenditure List 14
VII. Financial Statements and Projections 15
Opening Balance Sheet 15
Income Statements 15
Assumptions Behind Sales 17
VIII. Bibliography 18

I. Executive Summary
Veggie Heaven is great new local café located in downtown Natick, MA. It has a
completely vegetarian menu, with options for people that are gluten free and vegan. There is
nothing like us in the area, the closest vegetarian restaurant is in Boston. The restaurant market
is stable, and Boston is one the top 10 markets for trending towards healthy fast food. We plan
on marketing our café through a few different local media, including advertisements in local
newspapers, including the Boston Globe. For our personnel team, we expect every employee to
be skilled in all of the elements when dealing with a customer. They will all be trained in how to
prepare all the meals and drinks that we offer, and also how to use the register. Abby Rosen, the
owner of Veggie Heaven, will also be the manager.
For our financials, we expect to be very profitable. We expect to have a 2% increase in
revenues every month, and we will have a net profit of $3496 at the end our first fiscal year. By
the end of our second year, our net profit will be $10,786. We are seeking a loan of $40,000 from
Middlesex Savings Bank. We have extensively researched the market in the Metrowest area. We
have already capital of almost $80,000, but we want the loan as a way to pay off our expenses
until we are earning a steady profit. We will use the money for big expenses like rent and all the
capital equipment that we need.

II. Business Description
Veggie Heaven is a completely vegetarian cafe. It will be a place for vegetarians, vegans
and anyone else who wants to eat healthy. We will offer many different kinds of foods like
sandwiches, soup and salads. There will also be a smoothie bar with other drinks like coffee and
tea.
The café will be located in Natick, MA, a suburb of Boston. The largest mall in New
England is located in this town and draws many people from all over Massachusetts to shop here
every day. Having Veggie Heaven located near the mall is a great way to bring customers in. The
café will be located in downtown Natick, which is only ten minutes away from the mall. There is
also a train station two minutes away from the restaurant. This is a great spot for us because
many commuters take this train into Boston every day. We will be there to provide them coffee
and a quick breakfast in the morning before they get on their train to work. Although our main
target market is vegetarians, vegans and anyone interested in eating natural food, we will also
target the commuters. Our last target is consumers that want a place to sit and hang out with
friends while eating tasty, healthy food.
Since Veggie Heaven will have a casual atmosphere, it will attract a younger crowd that
wants a place to hang out with their friends and eat great food. Downtown Natick is conveniently
located within walking distance of the high school too. Although there are no other vegetarian
restaurants in the area, there are other potential competitors. When customers are getting
breakfast and coffee in the morning there are other options available like Dunkin Donuts and
Java Jim’s. To set our restaurant apart we will offer healthier options for breakfast, and also
specialty smoothies, coffees and teas. The coffee will be a step up from Dunkin Donuts and the

food will be better for customers with higher quality ingredients. Our main goal is to make
customers happy with the high quality vegetarian meals that we will serve to them.
Product and Service Description:
Veggie Heaven is a small café that offers breakfast, lunch and dinner every day off the
week. There are tables and booths for the customers to eat at and a counter for them to order at.
There will also be a smoothie and drink bar.
We have a lot of options available for breakfast. We have an Avocado Omelet, filled with
avocados, tomatoes, onions, pepper jack cheese, and cilantro, served with salsa on the side.
Customers can get any of our omelets with egg whites or egg substitution instead of regular eggs.
We will offer other egg dishes too, along with pancakes and waffles. Another meal that we will
serve is a healthy parfait with fruit, low-fat yogurt and homemade granola made at the restaurant.
We will always offer locally grown produce when in season.
One of the great things about Veggie Heaven is that we will try to accommodate to
everyone as best we can. Many vegetarians like an alternative to meat, for example,
MorningStar, like “bacon,” “sausage patties,” “chicken” strips, and “beef” strips. We will also
offer veggie burgers, but they will be homemade at the restaurant. A lot of people have celiac
disease and can’t eat gluten, so we also offer gluten free bread, muffins, pancakes and waffles.
We will also try to be accommodating to vegans, by substituting eggs for an egg substitution and
cheese for soy cheese. All of these substitutions can be made for a small extra fee.
We will offer the same meals for lunch and dinner, but we will have many options. There
will be soups, salads, veggie burgers, sandwiches, and pasta dishes. One salad we have is the
Spinach Salad, with tomatoes, cucumbers, “chicken” strips, pine nuts, goat cheese, blueberries,

strawberries and a raspberry-pomegranate dressing. We offer an avocado sandwich on whole
grain bread filled with avocados, tomatoes, lettuce, mozzarella and pesto drizzled on top. One of
the pasta dishes we will offer is Green Chicken Alfredo with whole grain pasta, “chicken” strips,
spinach, broccoli, asparagus, and Alfredo sauce.
Next to the counter where customers order will be a drink bar. Customers can order
smoothies, like a Strawberry-Bananarama Smoothie, with strawberries, bananas and soy milk.
And there will be milkshakes like the Nutella Milkshake. We have many coffee drinks available,
especially in the morning when many customers are on their way to work and want a quick
coffee to start their day.
III. Industry/ Market Analysis
Veggie Heaven will be located in downtown Natick, MA. This is a great place to be
located, because many people visit the town every day to go to the very popular Natick Mall.
The commuter rail to Boston stops in downtown Natick, and a lot of commuters are hungry in
the morning. Our restaurant will be there as an option for them to have a healthy meal to start
their day off well.
According to the 2010 census, Natick has a population of 32,786, and a total number of
13,327 households. Veggie Heaven’s target market includes most of the people who live in
Natick since it’s a quick healthy place to pick up a meal on the go or to sit and catch up with
friends. Even though we want everyone to visit, the café will focus on certain groups. Those
groups include consumers who are taking the train and want to get a quick breakfast before they
go work, or are on their way home from the train. We will also focus on high school students
who want to get something before, during or after school, since the café is located less than a

mile away from the high school. Lastly we will focus on anyone who wants a nice, healthy meal
and a place to sit and chat with friends for lunch or dinner. We will not focus on elderly
consumers, since they tend to not care about eating healthy as much, and also because they
usually already have their favorite spot to hang out and eat.
Fifteen to twenty-four year olds only make up 9.1% of the population, so relying on
commuters for business is very important. The average worker is between the ages of 25 and 64
years old, which is 57%; over half the population.1
This also includes the people that are likely to
want to come in to Veggie Heaven and get food too.
Natick is not a very racially diverse town. 87.3% of residents are white; 7.2% Asian;
2.1% African American; and 1.3% are other races.2
We couldn’t find the income distribution, but
the average income is $88,285, which is higher than the average income in Massachusetts of
$69,755.3
It is good that the income is above average, because the food is higher end and more
expensive than regular fast food restaurants.
1
http://www.zip-codes.com/zip-code/01760/zip-code-01760-2010-census.asp
2
http://www.zip-codes.com/zip-code/01760/zip-code-01760-2010-census.asp
3
http://www.city-data.com/city/Natick-Massachusetts.html

Top Ten Markets for Like Trend Towards Healthier Fast Food4
1. Washington et al, DC-MD
2. Juneau, AK
3. Fairbanks, AK
4. San Francisco, CA
5. Honolulu, HI
6. Anchorage, AK
7. Monterey-Salinas, CA
8. Boston et al, MA-NH
9. Hartford &New Haven, CT
10. Baltimore, MD
The market potential for Natick is very high. According to the Source Book of Zip Code
Demographics, dining out has a score of 166, which means that it is 66% higher than average.
Also as shown on the previous page, the Boston area is eighth in the top ten markets for
consumers trending towards eating healthier fast food. This is important, because it not only
shows that eating healthy is popular in the Boston area, but that this is one of the best places for
this market. Both of these data sets how well Veggie Heaven will do located in Natick.
One of the common groups of people living in the town according to PRIZM is the
Movers and Shakers. They are older, wealthy and do not have kids. They commonly own Land
Rovers, play tennis and read Yoga Journal. They are great consumers for the cafe, because they
4
http://www.claritas.com/SRDS/home?user_id=1381282503100374026&auth_token=%2FFmmA8cNLejtd8O6G7K
g%2B15B3lI%3D

care about their health as shown by keeping fit. Another group similar to the Movers and Shakers
is the Upper Crust group. They are also older, wealthy and do not have kids. The Upper Crust
often shops at Saks Fifth Avenue and likes to vacation in Europe. Since the café is higher end
and a little more expensive than regular fast food, it is a good place for this group to eat when
they want something quick or casual.5
The NAICS Industry code for restaurants is 722513. There are a lot of restaurants
currently in downtown Natick. One of the more popular places for consumers to frequent in the
mornings for a quick breakfast is Dunkin Donuts. They are always busy especially during rush
hour. Another competitor is Java Jim’s. They are a small locally run fast food restaurant. Even
though their food is inexpensive, which draws customers, we will be better than them, because
we have all vegetarian, healthy food. Another place is Bakery on the Common. They sell mostly
baked goods with a few other hot meals. Although they are a little better quality than Dunkin
Donuts or Java Jims, from experience the service is not very good; the employees are usually a
little rude.
There are not as many competitors for lunch and dinner. Downtown Natick mostly has
take-out pizza places for restaurants. They won’t be much of competition, because there will be
very little overlap in food options. Another small restaurant place is Lola’s Italian Groceria and
Sub Shop, but similarly to the pizza places there is very little overlap in the type of food being
served.
5
http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&pageName=ZIP%2BCode%2BLookup&menuOption
=ziplookup

As seen from the chart above, the rate that people eat ‘away from home’ increased until
about 2005. After that it leveled out and stayed about the same. The restaurant industry has
matured and is now at a stable rate. This is good for Veggie Heaven, because we will never have
to worry about people not going out to eat. There will always be a demand for restaurants.
According to the chart about annual expenditures below, consumers living in New England
spend about $2700 on eating ‘food away from home’ each year. That is the second highest
region out of the four regions the US is split into. Consumers spend over a third of their total
food money on ‘food away from home.’

6
Based on our research, Natick will be a great place for Veggie Heaven. The consumers
that live there dine out 66% more than the average American. The Boston area is also in the top
ten places for trending towards healthier fast food. Although there are a few competitors, it is
clear that we will stand out and succeed.
IV: Marketing Plan
When we market Veggie Heaven, we will market it as a healthy vegetarian restaurant. It
is also unique, because there are no other vegetarian eateries in the Metrowest-Boston area. We
will try to accommodate all of our customers’ needs by offering alternatives for people who are
gluten-free and vegans.
When we are pricing are food, we will use the competitive pricing strategy. This is the
best strategy for our company, because we can’t set our prices below the competition’s prices, or
6
http://statab.conquestsystems.com/sa/abstract.html?table-no=701&acc-no=C7095-
1.13&year=2013&z=ED4D6451F08E0518A6C957B30FDCD6125851865E

we would never make any money. We also do not want to set our prices too high, because a lot
of consumers would probably decide to eat at one of the other restaurants in downtown Natick.
We will use a few different marketing strategies to reach out to consumer. One way will
be to put an advertisement in newspapers. The Boston Globe is the most popular newspaper in
the area. On Sundays they have special section just for the Metrowest area. By putting an
advertisement in this section of the newspaper, we will be able to perfectly reach our target
audience, especially the commuters, because they are the people that tend towards reading the
newspaper. The other newspaper will advertise in is the Natick Bulletin & Tab. This newspaper
is specific for people who live in Natick. We will also submit a press release in hopes of an
article being written about Veggie Heaven.
Using direct mail and the radio are also both great ways to connect with customers. We
will put a few commercials on local radio stations to let potential consumers about our café.
Direct mail will be one of the best ways to advertise, because we are able to let all consumers in
the Metrowest area where we are located and what kind of restaurant we are. We will also put a
coupon on the postcard that we send out. This is a great promotion, not only because people will
understand the purpose of our company, but also because people will be motivated to come in
and buy food, also because we will be able to track how useful this promotion is. If not many
people come in with the postcard, then we will know that we need to rethink our marking
strategy. Another way to make sure that our marketing strategies are working is by having all of
our employees politely ask how customers heard or found out about Veggie Heaven. By using
this information, we will be able to tailor our advertising methods to the ones that get the most
customers in the door. The last kind of marketing strategy we will use to keep customers is by
having them sign up for our email list. Every few weeks we will send out a coupon to let them

know about specials that we have. This will be an incentive for customers that have already eaten
at our restaurant to keep coming back.
V: Management Team/Personnel/Skills
Since Veggie Heaven is a small café we won’t need to have a lot of employees. When we
first open we will only employ nine people. When we get more popular, we will need to hire
more people to accommodate our customers. Abby Rosen is the owner and will also be the
manager. She also has a CPA, so we will not need to hire an accountant. We will hire two more
full time employees and the other seven employees will work part time during the busy parts of
the day, like breakfast.
Every employee will be skilled in most aspects of the business. They will all need to
know how to prepare every item on the menu including drinks. They will also be trained how to
use the register and they must be able to be friendly and patient with the customer. Each
employee, especially the full time employees, will need to be skilled at multitasking. When the
café is not busy, like in the afternoon between lunch and dinner, an employee could be the only
one working. It is extremely necessary that they know how to make everything for the customer,
and help them in any way possible. It is also necessary during peak hours, because an employee
must be able to easily move from one task to another. For example, if someone is working at the
register, but then needs to help with food prep, then they should be able to smoothly move from
one station to another.
It can be tough to find potential employees who know how to prepare food, be a barista,
and work a register. That is why we will take a week before Veggie Heaven opens to train
everyone on all the skills they will need to have to work here. All the employees will learn how

to prepare all the menu food and drinks. We will also have a few team building activities.
Although this is not a type of company where everyone needs to be great friends, it is necessary
for everyone to get along well and be able to work and communicate with each other.
We will pay our employees well, as an added value for working at Veggie Heaven. Part
time employees will make $10 an hour, instead of the minimum wage, $8. We will pay them
above minimum wage as an incentive to stay with our company, and also because we value the
amount skills they have from working with us and we want to pay them as such. We want this
work environment to be relaxed and fun for all of our employees. The only uniform requirement
we have is for all employees to wear a Veggie Heaven t-shirt to work, and long pants, as a safety
requirement.
To ensure that all the employees are working hard and are not slacking off, every three
months we will Performance Checks. During this time every employee will meet with Abby one-
on-one to make sure that everything is going alright. During this time Abby will talk with the
employee to make sure that the employee is performing just as well or exceeding her
expectations for their position. If they are exceeding, then there is a chance that earned a
promotion or a raise. The Performance Check is also a time when the employee can bring up any
concerns or ideas that they have. If they think that there are any safety problems or ways that the
company can be more efficient, this is the perfect time to bring it up; also if they have any new
menu ideas or any other ways to improve the café. Even though Abby Rosen is the owner of the
company, every employee is a part of it, and we want their ideas to be heard and shared too.

VI: Financing Needed
We are asking Middlesex Savings Bank for $40,000 to help fund Veggie Heaven. We
will use $14799 of the loan to pay for our Capital Equipment. We plan on saving the rest of the
money to pay for our fixed expenses, like rent. We will also use it to pay for our employees and
other fixed expenses, like our utilities and insurance. This money is important for us to have,
until we are able to make a steady profit on our own, so we don’t have to worry about paying for
these expenses.

Sources and Uses of Funds:
Sources:
 Bank Loan $40,000
 Investment from the Owner $55,000
 Investments from Friends and Family $23,418
Total: $118,418
Uses:
 Monthly Payments
o Rent $18419 ($3069 per month)
o Salaries $67600 ($11266 per month)
o Utilities $3600 ($600 per month)
o Insurance $3000 ($500 per month)
 Inventory $5000
 Capital Equipment $14799
 Renovations $2500
 Advertising $1000
 Cash Reserve $2000
 Supplies $300
Total: $118,418

Capital Equipment List:
Microwave
Amana Medium Duty
Microwave-100
Programmable Menu-1000 W $464
Stove/Oven
Vulcan Endurance Gas Range-
10 Burners- 2 Ovens $3,855
Refrigerator
Arctic Air Reach-In Two Door
Refrigerator, 49 Cu. Ft. $1,975
Dishwasher
Undercounter Dishwasher
High Temperature $3,819
Coffer Makers
Breville 800ESXL 15-Bar
Triple Priming Die-Cast
Espresso Machine $353
Phones AT&T CL2909 Corded Phone $25
Register
Indoor, Outdoor Cash Register
8 Department $135
Tables (Seven)
Contemporary Designer
Melamine Table Top- Indoor $763
Chairs (Thirty-Five) Plastic Stack Chair $1,295
Cutlery $500
Flatware $700
Safe
Sentry SFW123CS
Combination Fireproof Safe $299
Computer
HP Pavilion All-in-One 20-
B010 20” $399
Desk
Sauder Registry Row Writing
Desk $167
Desk Chair
Glee II Mid-Back Manager
Chair $50
Total $14,799

VII: Financial Statements
Balance Sheet:
Income Statements:
Looking at our potential income statements for the next two years, Veggie Heaven will
do very well. We should be making profit almost every single month. This all made possible if
we have a 2% increase in revenue every month.
Assets Liabilities
CURRENT ASSETS CURRENT LIABILITIES
Cash 30,000$
Petty Cash 2,000$
Inventory 5,000$
Supplies 300$ LONG TERMLIABILITIES
Total Current Assets 7,300$ Bank Loan 40,000$
Total Long Term Loans 40,000$
FIXED ASSETS
Capital Equipment 14,799$ Owner's Equity 39,198$
Renovations 2,500$
Total Fixed Assets 17,299$
Total Assets 79,198$ Total Liabilities and Owner's Equity 79,198$
Veggie Heaven
1-Jul-14
Balance Sheet
June 30, 2015 June 30, 2016
Total Revenue 109349 138678
Cost of Sales 32805 41603
Gross Margin 76544 97075
Total Expenses 72548 84193
Net Profit 3,996$ 12,882$
Veggie HeavenIncome Statements for First Two Years

Income Statement for Year One
12-MonthIncomeStatement07/01/14VeggieHeavenFiscalyearbegins:
July-14
August- 14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
March-15
April-15
May-15
June-15
Total
Revenue(Sales)
Breakfast15501581161316451678171117461780181618521889192720789
Lunch29763036309631583221328633513418348735573628370039914
Dinner22322277232223692416246425142564261526672721277529936
Drinks13951423145114801510154015711602163416671700173518710
TotalRevenue(Sales)8153831684828652882590029182936595539744993810137109349
CostofSales
CostofMaterials24462495254525962648270027542810286629232982304132805
Variablelabor0
TotalCostofGoodsSold$2,445.90$2,494.82$2,544.71$2,595.61$2,647.52$2,700.47$2,754.48$2,809.57$2,865.76$2,923.08$2,981.54$3,041.17$32,804.63
GrossMargin$5,707.10$5,821.24$5,937.67$6,056.42$6,177.55$6,301.10$6,427.12$6,555.66$6,686.78$6,820.51$6,956.92$7,096.06$76,544.14
Expenses
Salaries20382079212121632206225022952341238824362485253427337
Payrollexpenses1431461481511541581611641671711741771914
Benefits2042082122162212252302342392442482532734
Outsideservices0
Supplies(officeandoperating)4084164244334414504594684784874975075467
Repairsandmaintenance0
Advertising10005005005002500
Accountingandlegal0
Rent20002000200020002000200020002000200020002000200024000
Telephone2502502502502502502502502502502502503000
Utilities3003003003003003003003003003003003003600
Depreciation2082082082082082082082082082082082082496
TotalExpenses$6,550.40$5,606.25$5,663.22$5,721.32$6,280.59$5,841.04$5,902.70$5,965.59$6,529.74$6,095.18$6,161.92$6,730.00$73,047.95
NetProfit$(843.30)$214.99$274.45$335.10$(103.04)$460.06$524.42$590.07$157.03$725.33$795.00$366.06$3,496.18

Income Statement for Year Two
12-MonthIncomeStatement07/01/15Fiscalyearbegins:VeggieHeaven
July-15
August- 15
Sep-15
########
#
Nov-15
Dec-15
########
#
Feb-16
March-16
April-16
May-16
June-16
Total
Revenue(Sales)
Breakfast19662005204520862128217022142258230323492396244426362
Lunch37743849392640054085416742504335442245104600469250617
Dinner28312887294530043064312531883251331633833450351937963
Drinks17701805184118781916195419932033207321152157220023735
TotalRevenue(Sales)103401054710757109731119211416116441187712115123571260412856138678
CostofSales
CostofMaterials31023164322732923358342534933563363437073781385741603
Variablelabor0000000000000
TotalCostofGoodsSold$3,101.92$3,163.96$3,227.24$3,291.78$3,357.62$3,424.77$3,493.27$3,563.13$3,634.40$3,707.08$3,781.23$3,856.85$41,603.26
GrossMargin$7,237.82$7,382.57$7,530.23$7,680.83$7,834.45$7,991.14$8,150.96$8,313.98$8,480.26$8,649.86$8,822.86$8,999.32$97,074.26
Expenses
Salaries25852637268927432798285429112969302930893151321434669
Payrollexpenses1811851881921962002042082122162212252427
Benefits2582642692742802852912973033093153213467
Outsideservices0
Supplies(officeandoperating)5175275385495605715825946066186306436934
Repairsandmaintenance0
Advertising3003003003003003003003003003003003003600
Accountingandlegal0
Rent20002000200020002000200020002000200020002000200024000
Telephone2502502502502502502502502502502502503000
Utilities3003003003003003003003003003003003003600
Depreciation2082082082082082082082082082082082082496
TotalExpenses$6,599.36$6,670.19$6,742.43$6,816.12$6,891.28$6,967.95$7,046.15$7,125.91$7,207.27$7,290.25$7,374.90$7,461.24$84,193.05
NetProfit$638.46$712.39$787.79$864.71$943.16$1,023.19$1,104.81$1,188.07$1,272.99$1,359.61$1,447.96$1,538.08$12,881.21

Assumptions Behind Sales:
When we were making our potential first year income statement, we made a lot of
assumptions about our revenue and expenses. We assume that during our first month, we will
sell approximately 10 meals for breakfast costing $5 each day. For lunch we assumed that we
will sell 12 meals costing about $8 each day; for dinner we assumed we would only sell 9 meals
at $8 each day, and we would sell 15 drinks costing $3 throughout each day. After that, each
month we would have a 2% increase from the previous month.
The cost of materials was calculated by taking 30% of the month’s total revenue. We
found the months salaries, by doing a similar technique, and assumed that they were the same as
10% of the revenues. The payroll expenses and benefits were 7% and 10% respectively of the
total salaries. The supplies were 5% of the total revenue.

VIII: Bibliography
Bureau of Labor Statistics. "Table 698: Average Annual Expenditures Of All Consumer Units
By Selected Major Types Of Expenditure: 1990 To 2011 [Selected Years]." ProQuest Statistical
Abstract of the United States:2013. Ed. ProQuest, 2013. Web: ProQuest Statistical Abstract
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1.13&year=2013&z=17E7B4B354B55A2C3813F456403651753B0F169F>
Bureau of Labor Statistics. "Table 701: Average Annual Expenditures Of All Consumer Units
By Region And Size Of Unit: 2011." ProQuest Statistical Abstract of the United States:2013. Ed.
ProQuest, 2013. Web: ProQuest Statistical Abstract 10/13
<http://statab.conquestsystems.com/sa/abstract.html?table-no=701&acc-no=C7095-
1.13&year=2013&z=ED4D6451F08E0518A6C957B30FDCD6125851865E>
"ENTER." PRIZM Market Segmentation Research, Tools, Market Segment Research,. N.p., n.d.
Web. 07 Oct. 2013.
Community sourcebook of ZIP code demographics, 2005
2005, ESRI Press, Vienna, Va., 19th
"Natick, Massachusetts." (MA 01760) Profile: Population, Maps, Real Estate, Averages, Homes,
Statistics, Relocation, Travel, Jobs, Hospitals, Schools, Crime, Moving, Houses, News.
N.p., n.d. Web. 07 Oct. 2013.

"NATICK, MA 01760." 2010 Census for ZIP Code 01760, NATICK MA, Population
Demographics, 2010 Census. N.p., n.d. Web. 07 Oct. 2013.
"Welcome to SRDS." Welcome to SRDS. N.p., n.d. Web. 07 Oct. 2013.

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