Comprehensive Business Plan for PixStix Startup

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Table of Contents
Executive Summary............................................................................................................ 4
Mission Statement......................................................................................................................................................5
Vision................................................................................................................................................................................5
The Company...................................................................................................................... 5
BCG Matrix.....................................................................................................................................................................5
Goals.................................................................................................................................................................................7
Objectives.......................................................................................................................................................................7
Strategic Partnership ................................................................................................................................................8
Management ...................................................................................................................... 9
CEO....................................................................................................................................................................................9
CFO....................................................................................................................................................................................9
COO.................................................................................................................................................................................10
VP of Marketing........................................................................................................................................................10
VP of Sales...................................................................................................................................................................10
Organizational Structure......................................................................................................................................10
Risk Factors....................................................................................................................... 12
Product Failure.........................................................................................................................................................12
Competition................................................................................................................................................................12
Financial Issues.........................................................................................................................................................13
SWOT Analysis.................................................................................................................. 13
Strengths......................................................................................................................................................................13
Weaknesses................................................................................................................................................................13
Opportunities ............................................................................................................................................................14
Threats..........................................................................................................................................................................14
Operations........................................................................................................................ 14
Facilities.......................................................................................................................................................................14
Production Activities..............................................................................................................................................15
Inventory Management.........................................................................................................................................15
Shipping .......................................................................................................................................................................16
Suppliers......................................................................................................................................................................17
Pricing...........................................................................................................................................................................18
Marketing ......................................................................................................................... 18
Target Market.............................................................................................................................................................18
Market Trends............................................................................................................................................................19
Survey Results.............................................................................................................................................................20
Description and Benefits of PixStix..................................................................................................................21
Technology.................................................................................................................................................................21
Pictures..........................................................................................................................................................................21
Competition.................................................................................................................................................................23

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Public Relations..........................................................................................................................................................23
The Marketing Mix........................................................................................................... 23
Product..........................................................................................................................................................................23
Place...............................................................................................................................................................................24
Price................................................................................................................................................................................24
Promotion....................................................................................................................................................................24
Social Media................................................................................................................................................................24
ExpansionPlanfor Future.......................................................................................................................................26
Sales.................................................................................................................................. 26
Sales Strategies.........................................................................................................................................................26
Sales Projections......................................................................................................................................................26
Most Likely Scenario..............................................................................................................................................27
Best Case Scenario...................................................................................................................................................27
Worst Case Scenario...............................................................................................................................................28
Yearly Projections....................................................................................................................................................29
Sales Monitoring .............................................................................................................. 30
Daily Monitoring......................................................................................................................................................30
Weekly Monitoring.................................................................................................................................................30
Monthly Monitoring................................................................................................................................................30
Sample Sales Log......................................................................................................................................................31
Finance.............................................................................................................................. 32
Capital Budget...........................................................................................................................................................32
Reimbursements......................................................................................................................................................33
Financial Projections........................................................................................................ 33
Most Likely Income Statement ..........................................................................................................................34
Most Likely Cash Flow Statement.....................................................................................................................35
Most Likely Balance Sheet ...................................................................................................................................36
Best Case Income Statement...............................................................................................................................37
Best Case Cash Flow Statement.........................................................................................................................38
Best Case Balance Sheet........................................................................................................................................39
Worst Case Income Statement...........................................................................................................................40
Worst Case Cash Flow Statement .....................................................................................................................41
Worst Case Balance Sheet....................................................................................................................................42
Yearly Income Statement.....................................................................................................................................43
Yearly Cash Flow Statement ...............................................................................................................................44
Yearly Balance Sheet .............................................................................................................................................45
Appendix........................................................................................................................... 46
Survey............................................................................................................................................................................46
Events Calendar........................................................................................................................................................48
Reimbursement Form and Policy.....................................................................................................................50
Works Cited ...................................................................................................................... 51

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Executive Summary
PixStix will be at the forefront of smartphone and camera accessories. Customers will
have the ability to take pictures and videos in a new and improved way through the use of
a hand-held, Bluetooth monopod – the selfie stick. Our next generation product will
allow for the ultimate moment-capturing experience.
Since smartphone makers introduced the front facing camera in 2010, the concept of
taking a self-portrait photograph has since grown exponentially. Almost all smartphones
and cameras sold today have the capability to take self-portrait photos, also known by the
slang term “selfie.” The concept has reached all demographics, which has created an
ever-expanding market.
The selfie stick eliminates the need to ask for assistance when taking photos that involve
immense scenery or large groups of people. With the help of PixStix, users will no longer
have to worry about not being able to fit in the entire background or leaving their family
and friends out of a photo or video. With a simple extension of the stick, they will get the
best angle possible leaving them with the upmost satisfaction.
PixStix will appeal to customers who use social media outlets such as Facebook, Twitter,
Instagram, and Snapchat. All of the mentioned platforms give the user a source on which
they can share the images or videos they take with the selfie stick.
Selfie sticks have quickly become one of most popular products on the market both
domestically and internationally. According to National Public Radio and their website
npr.com, companies such as Selfie on a Stick experienced a 3000% growth in sales for
the month of November 2014. It is no question that this product has become a hot
commodity. PixStix aims to target all potential buyers seeking to improve the way they
look at the world around them.
The company is seeking a $2,500 loan to begin purchasing inventory to sell to our
targeted customers. Our exit strategy will be either through a merger or an acquisition
from another company.

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Mission Statement
Our mission is to help our customers enhance and capture memories they will cherish
forever through the use of a selfie stick.
Vision
Our vision is to be the leading provider of selfie sticks to all generations in Southern
California. Within the next five years, our company strives to control a sizeable share of
the selfie stick market throughout California by adding more products to our line as well
as opening up new field offices in various locations within the entire state.
The Company
PixStix was founded in February, 2015. The company is a newly formed retail business
that provides customers with an enhanced way of taking photos and videos through their
smartphone or camera with the use of a selfie stick. Based in La Verne, California,
PixStix will seek new sales opportunities by travelling to concerts and music festivals,
sporting events, theme parks, and other scenic areas where people desire to take pictures
and videos.
BCG Matrix
According to the Boston Consulting Group Matrix, PixStix falls under the category of a
Question Mark company. The company does not have a high market share. However, the
potential growth rate within the market is very high. By increasing the company’s market
share, PixStix has the capability to move from the Question Mark category to the Stars
category.

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Goals
The short-term goals for the company during the first year are as follows:
 Form a fully functional and sustainable business that provides a high-quality
product to its valuable customers
 Meet and exceed the sales target of 700 units by May 15th, 2015
 Achieve a net profit of $6,000
 Repay the $2,500 loan with accrued interest
 Maintain a steady growth rate of 5% per quarter, 20% annually.
Once these goals have been met, the company will advance towards focusing on long-
term goals, which include:
 Expanding our product line to include a multitude of smartphone camera lenses as
well as tripods.
 Achieving a net profit of $30,000 per year with the expectation of continuous
growth of 25% every year thereafter.
 Establishing a steady and reliable relationship with suppliers both outsourced in
China and locally here in Southern California.
Objectives
Objectives must be set to meet and exceed the goals set by the company. All functions of
the business must understand the expectations established by the senior management.
Objectives for Management, Operations, Sales and Marketing, and Finance have been
identified as follows:
 Management:
 Distribute workload in an efficient and reasonable manner
 Establish a strong line of communication between senior officers and
middle management
 Set deadlines to ensure all work is done in a timely fashion
 Operations:
 Ensure that cost of goods sold remains below 35% of total sales

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 Keep 15% of inventory on hand to account for any shortages or requests
for large orders
 Maintain inventory logs to ensure that accumulated cash equals to
products sold
 Sales and Marketing:
 Reach and exceed sales projections for each week
 Organize and maintain a steady events schedule
 Finance:
 Income Statements, Balance Sheets, and Cash Flow Statements must be
accurate for the period they cover
 Loan repayment will be based on cash flows
 Steady profit must be maintained to ensure that other functions of the
business can operate properly
Strategic Partnership
PixStix will donate 100% of its profits to the Boys & Girls Club of America. Our specific
strategic partner is a local chapter in Garden Grove, California.
Mary Goodwin, Alice Goodwin, and Elizabeth Hammersley founded Boys & Girls Club
in 1860. Their goal was to provide young boys and girls with a place they could stay
instead of being out on the streets, where they might be exposed to the wrong things.
Over 150 years later, their core values have remained the same. Their mission is to serve
at-risk youth by providing them with a safe environment to learn, establishing and
developing relationships with responsible and caring adults, providing programs that
allow children and teens to grow both academically and psychologically, and by giving
our country’s youth opportunities to do great things on a daily basis.
The Boys & Girls Club in Garden Grove targets local youth who are exposed to the
dangers of being out on the streets. They work with other organizations such as the Los
Angeles Angels of Anaheim in order to raise awareness and provide funding. Their
objective is to provide each child and teenager with a positive learning and growing
experience.
Our company will be working directly with this local chapter of the charity by
coordinating events in which we can sell selfie sticks on their behalf. The ultimate goal is
to generate as much profit as possible to give back to this effective organization that
offers beneficial services to these young children and teenagers.

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Management
Like any other successful business, PixStix will utilize a comprehensive management
structure:
The Chief Executive Officer is responsible for complete oversight of the entire company.
The Chief Financial Officer is responsible for gathering and maintaining financial
information that will be used to create the company’s income statement, balance sheet,
cash flow statement, as well as any other valuable financial documents.
The Chief Operating Officer is responsible for setting costs as well as working directly
with the product supplier.
The Vice President of Marketing is responsible for targeting potential customers,
advertising, and market analysis.
The Vice President of Sales is responsible for creating sales projections and coordinating
events.
The key officers for PixStix are as follows:
CEO – Chief Executive Officer Charles Bromberg
CFO – Chief Financial Officer Stephanie Saldivar
COO – Chief Operating Officer Steven Washbon
Vice President of Marketing Lexi Takanishi
Vice President of Sales Giuseppe Galioto
CEO
Charles Bromberg is an undergraduate student at the University of La Verne. He is
seeking a Bachelor of Science Degree in Business Administration. He played football for
the University during his first two years. His previous work experience includes working
as an inventory manager for Beanstones, a Los Angeles-based clothing manufacturing
company, and as a server at The Cheesecake Factory in Huntington Beach. Presently,
Charles works as a valet for PPS Parking and Transportation.
CFO
Stephanie Saldivar is an undergraduate student at the University of La Verne pursuing
her Bachelor of Science Degree in Business Administration and Bachelor of Arts Degree
in Spanish. She has been an active member of Phi Sigma Sigma, Delta Sigma Pi, Alpha
Lambda Delta National Honor Society, and the First Generation Success Program.

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Because of her experience and involvement in a variety of organizations, she was
nominated for her current position as Senior Vice President of Delta Sigma Pi, the
national business fraternity, as well as Bursar for Phi Sigma Sigma at the University of
La Verne.
COO
Steven Washbon is an undergraduate student at the University of La Verne seeking a
Bachelor of Science Degree in Business Administration. This is Steven’s first year
attending the University of La Verne as he spent his first two years at the University of
Oregon. Steven has experience in business as an assistant operations manager at Direct-
Transport, a logistics company that works, in part, with large corporations such as Nestle
products, to transport their inventory from their factories to their consumers into grocery
stores. He has been working there since June of 2013.
VP of Marketing
Lexi Takanishi is currently a junior at the University of La Verne, pursuing a Bachelor of
Science Degree in Business Administration with an emphasis in Marketing. She is also a
third year secretary for the Kanaka Hui Ohana (Hawaii Club) on campus. She has worked
as an office assistant at Takanishi Real Estate and presently works at the clothing
company Tilly’s as a sales associate.
VP of Sales
Giuseppe Galioto is an undergraduate student at the University of La Verne. He is
pursuing his Bachelor of Science Degree in Business Administration. His past work
experience includes working as a student employee on campus with Bon Apetit, the
University’s food services. Giuseppe currently plays football, is an active participant in
Enactus, an international non-profit organization that brings students together to work
with entrepreneurial business leaders, and is a new member of the national business
fraternity, Delta Sigma Pi.
Organizational Structure
PixStix follows a functional structure of management as its initial organizational
structure. At the top is the CEO. The second in command is the CFO followed by the
COO. Immediately following the COO is the VP of Marketing and the VP of Sales. The
COO, VP of Marketing, and VP of sales will report their projections to the CFO. The
four officers will report all information to the CEO.
Once senior management has been established, the company will expand the
organizational hierarchy to include managers reporting to the company’s officers. The

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CFO will have one Accounting Manager, the COO will have one Inventory Manager, the
VP of Marketing will have one Public Relations Manager, and the VP of Sales will have
one Sales Manager.
Within five years, PixStix will expand to a broader functional structure. Our vision is to
be the leading provider of selfie sticks in the state of California. Therefore, sectors will be
created to cover different areas of the state. The CEO will receive information from all
senior officers. Senior officers will have several managers reporting to them from several
areas covering San Diego to the Bay Area.
CEO
CFO
Accounting
Manager
COO
Inventory
Manager
VP of
Marketing
Public
Relations
Manager
VP of Sales
Sales Manager
CEO
CFO
Accounting
Manager San
Diego
Accounting
Manager Los
Angeles
Accounting
Manager Bay
Area
COO
Operations
Manager San
Diego
Operations
Manager Los
Angeles
Operations
Manager Bay
Area
VP of
Marketing
Promotions
Manager
Public
Relations
Manager
VP of Sales
Sales Manager
San Diego
Sales Manager
Los Angeles
Sales Manager
Bay Area

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Risk Factors
According to Murphy’s Law, anything that can go wrong will go wrong. Therefore,
potential issues or failures must be accounted for and resolved quickly. The company
must also consider competition and future developments in technology. Top management
must establish a C-Type conflict-resolution protocol to handle such problems in an
efficient and timely manner. A C-Type or “cognitive” type conflict-resolution involves
focusing on solving differences of opinion or interest. The willingness to examine the
issue and seek a possible solution is very critical for this type of conflict-resolution
protocol to work effectively.
Product Failure
One of the goals of PixStix is to provide a high-quality product on which customers can
rely. Therefore, any faulty products must be dealt with accordingly to guarantee that the
customers receive what they pay for.
The supplier of the selfie sticks has given the company terms of a warranty. In the event
of a product malfunction, we can return the faulty product and have it replaced with a
brand new stick. However, any product failure means a potential loss in sales and time.
The goal is to limit rejects to 2% of total inventory to make sure that important time and
funds are not lost.
Our supplier is located in Los Angeles, California, which allows for efficient and
convenient acquisition of inventory. The company has a backup supplier also located in
LA. Having suppliers close by gives PixStix the advantage of limiting or eliminating
shipping costs, as well as quick communication between the seller and us.
Competition
PixStix will be facing a number of competiors throughout the time in which business is
conducted. Companies such as GoPro and Selfie on a Stick provide a similar product. To
compete with these companies, our pricing must be relatively low. This will make the
product we sell more appealing customers seeking to purchase selfie sticks. Instead of
paying more money for a product made by our competitors, customers can come to us
and buy the selfie stick we are selling at a similar quality but a much cheaper price.
Customers will have immediate satisfaction by purchasing the product on-site, rather than
having to wait for a mail order or going to a store.

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Financial Issues
Financial troubles can arise at any given time. Ultimately, it is the CFO’s responsibility to
make sure that all financial statements are accurate so that such potential issues can be
resolved before they actually occur. With proper financial planning, such issues will not
arise. In the event that certain financial discrepancies do arise, proper steps must be taken
to correct it. Emphasis will be placed on cash management, budgets, and cost control to
prevent any future problems.
SWOT Analysis
Strengths
One of the advantages PixStix has is the fast growing market for selfie sticks. This
product is a fairly new invention and has only been recently introduced to the U.S.
market. With such untapped potential, the growth of this product is extremely high.
Another strength of the product is how it eliminates the need for assistance when taking a
photo or video of the user and including everyone in a group picture. The selfie stick is
essentially an extension of a user’s arm meaning that the camera angles surpass any
point-of-view that the human arm can achieve.
Weaknesses
Although the market for selfie sticks is rather large, it remains a very specific type of
market, as it will attract only those who have a smartphone or camera with Bluetooth
capabilities. Those individuals without a capable camera device will immediately be
eliminated from our marketing plan.
Another weakness that this product faces is that it does not necessarily satisfy a need but,
rather, a want. Many may simply rule it out, as it is not needed in their lives. A selfie
stick will be hard to classify as a product that the everyday person will need. Therefore,
the market once again becomes more specific and the marketing plan must be tailored to
the number of potential customers and their attitudes towards preserving memories.
A third weakness is the company’s inexperienced management. Many of the senior
officers and management have no prior experience in operating a company. However, it

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is understood that experience will come with time and hard work, which is what every
member of PixStix will be striving to achieve.
Opportunities
PixStix can capitalize on the fact that the selfie stick has very large market potential.
Customers always seek out new products. Until September 2014, the selfie stick was
laying little known. Popularity did not increase in the U.S. until January, 2015, which
means that the growth for this market has only just begun. Showcasing this trending
product to potential buyers may spark a great bit of interest.
Second, by working directly with a charity, customers may feel more comfortable
purchasing a selfie stick because they understand that the money they spend will help
support a greater cause. Donating money to charity interests many people because of the
good that it brings to the community.
Threats
Cheaper products and alternatives serve as potential threats towards PixStix. Although
the selfie sticks are being sold as a convenience to the buyer, potential customers could
easily go online and find a similar or same price as the product we are selling. However,
this is offset by the immediate delivery at the time of sale.
Competing with other companies like GoPro will also challenge our company. A well-
known brand like GoPro may be hard to sway customers from to purchase our product
that has no previous reputation or developed reliability.
To counter these potential threats, the company will stress our enthusiasm, the immediate
gratification upon sale, and the benefits of donating to our partnered charity.
Operations
Steven Washbon and Anissa Melendez will control the operations department. They will
be in charge of managing inventory, inventory sold, and inventory returned. They will
also be in charge of placing orders to the suppliers to keep a reasonable inventory on
hand.
Facilities
Inventory will be stored on campus at the University of La Verne with access during
regular business hours. It will also be accessible on Saturdays from 8:00am-4:00pm.

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Production Activities
The initial order will be 200 units of various colors at a cost of $7.00 per unit. This is
based on the sales projections included in the plan. Future orders will be determined
based on sales and the popularity of colors.
The device is packaged in a secure cardboard pack, with a plastic encasing keeping all the
pieces intact. The packaging originates from our vendors manufacturer.
Inventory Management
The inventory management system PixStix will implement in our operations facility is
First in First out (FIFO). Operations will make sure the entire inventory received earliest
is the first to be given out to sell. It uses a distinct stock method that will always have the
oldest inventory in the front or on top, similar to a grocery store. This will be used
primarily for keeping track of our inventory because we plan to have our entire inventory
from one supplier, and selling at the same price without any differences other than color.
This accounting system will be most efficient for our operations team and our customers.
Group members will be responsible for keeping a written record of the number of units
they have sold. That information along with the total number of units, the number of each
color, the cost of goods, the cost of goods sold, and details on purchases of inventory will
be organized in a workbook and updated weekly. The first sheet of the workbook will
keep track of the overall inventory, including total number of units, a breakdown of each
color, and the total cost of goods.

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Group members will receive a receipt with the total number of units received and the
number of each color when they are given inventory to sell; one receipt will be given if
the group is set to attend and sell products at an event together. Members will also keep
track of the number of units sold. That information will also be logged on a word
document. This makes sure that the Operations team receives the correct number of
unsold inventory and the Finance team receives the correct amount of money.
Defective products from our supplier will be refunded and exchanged as long as the
product is not damaged. Our primary vendor has communicated to us through email that
we can rely on them to replace all defective products that are found. No refunds will be
given, however; customers will be able to exchange their defective products for new,
properly functioning selfie sticks. That defective product will be exchanged or refunded
by the supplier.
Shipping
Best-case scenario: Operations team will need to make six trips to downtown Los
Angeles to purchase inventory. With an estimated freeway MPG of 25 and estimated 2.2
gallons to make the trip, the average cost of a trip to purchase inventory is $6.16.

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Most likely scenario: Operations team will need to make four trips to downtown Los
Angeles to purchase inventory.
Worst-case scenario: Operations team will need to make two trips to downtown Los
Angeles to purchase inventory. All cases will still cost the same amount per trip of $6.16.
Our total cost of shipping will depend on how many trips the operations team has to
make.
Suppliers
Primary - Our primary supplier is a cellular accessories wholesaler named 5th Street
Cellular out of located in downtown Los Angeles. They are within reasonable driving
distance, which will reduce our shipping expense to zero. Our supplier is highly
dependable; they are open six days a week at the most reasonable hours. It is also easy to
contact the manager by phone and email. The wholesaler also has its own website,
www.casetrends.com, where we are able to contact with management and even place
orders. This primary supplier has agreed to $7.00 per unit with a 30 percent down
payment. The other remaining 70 percent will be paid at pickup. This is the most reliable
and best deal we will receive that lowers risk in receiving and shipping, since it will be in
the operations teams’ possession.
Backup - One of our backups is another wholesaler in Downtown Los Angeles, Reiko
Wireless Accessories. Although the driving distance is no further than our primary
supplier, there were certain advantages to working with our primary supplier. This
wholesaler does not have a website. We like the convenience of placing orders online.
Although they, too, were easy to contact, there was minor difficulty in communicating
due to a language barrier. While these are not alarming differences from our primary
supplier, we would not be able to get our desired unit price; the suppliers unit price is 25-
50 cents more than our primary supplier. This is a good back up supplier to have if
something were to go wrong with our primary supplier.
Backup - Our secondary back up is a Chinese supplier registered on Alibaba.com. Their
factory is in the Province Guangxi. This is the only supplier that charges for shipping.
The shipping rate is $30.00 per 100 units and ships within 3-7 days. There are risks using
a Chinese supplier. We have all heard the horror stories about doing business overseas.
There is an increased chance of inventory being damaged during shipping. So, while the
price is lower than any of our other suppliers, at $3.30 per unit, there is too much risk
involved. As a result, we prefer not to order from overseas, even though the product
would be the lowest price per unit, given the unnecessary risk.

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Pricing
Competitors - At Best Buy, the price of very popular GoPro sticks, which are also
monopods, used for similar activities to our product ranges anywhere from $22.00 to
$62.00. Although, our consumer market can find a cheaper product on the Internet, on
Amazon or eBay, where the prices, on average, range from $8.00 and up, we introduce a
convenience factor to our customer that is beneficial.
Customer Sensitivity - The price was determined, in part, with support from our
marketing team’s surveys. The majority of the survey participants wanted and would pay
for the lowest price range which was $15.00-$20.00. To make a reasonable profit, we
concluded that $20.00 would be a reasonable and profitable selling price. The price of
$20 is a number that will not discourage our consumer from trying our product. The
lower price increases the chances of a cash transaction, which is most beneficial to our
company.
Marketing
Target Market
We are aiming for a broad mix of people. Anyone with a camera phone or camera will be
targeted as a potential customer.
PixStix will market to:
 Enthusiastic young adults who have a propensity to take pictures and videos at
social outings and events
 Current and graduating high school and college students
 Family-oriented individuals who wants to enhance their group photos and videos
According to USA Today, over one million selfies are taken on average per day and are
taken by individuals who wish to take a photo without the use of a photographer. It is
especially be useful for tourists, who might have trouble trusting strangers in a foreign
country with their camera. With PixStix, consumers are in charge of the outcome of the
quality of their picture and the safety of their cameras. We will also contact both small
businesses and large companies in an attempt to sell in bulk.

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The goal of the marketing plan is to generate awareness and interest in PixStix Selfie
Stick, resulting in total sales of 700 units to benefit the Boys & Girls Club of America,
the charity of our choice.
Market Trends
Selfie on a Stick, a product sold online and in Nordstrom, had a 3,000 percent growth in
sales in the month of November 2014. The “selfie stick” was made popular in Asia, and
only started to create in interest in the United States late last year. This did not start
trending until early January. Below is a comparison of the United States with Japan,
South Korea, and China. It shows the average interest over time in millions of dollars.
According to the Wall Street Journal’s Google graph, this trend is hitting the United
States from the Pacific Ocean/West Coast. Below is a diagram of the regional interest the
United States has in the “selfie stick”.

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Survey Results
Our survey consisted of ten questions to determine target interest in buying our product
and why/why not. We distributed paper surveys and also conducted a survey online using
surveymonkey.com.
A total of 525 respondents, (197 men and 328 women) completed our surveys; 231
respondents were 18-25 years of age, 131 respondents were 26-40 years of age, and 156
respondents were over 40 years of age. Following are the highlights:
1. 471 owned both a phone with a front facing camera and Bluetooth capability
2. 219 said they take weekly pictures “often” or “all the time”
3. 45 said that they ask people to take their pictures “often” or “all the time”
4. 136 said they would be interested in buying a selfie stick
5. 287 said that they would give the selfie stick as a gift
6. 441 said they would be willing to pay $15-20; 65 said they would pay $21-25
7. 379 said they would prefer black, 148 said they would prefer blue, 146 prefer
white, 127 preferred pink
8. 396 said they would be more likely to buy our product if they were aware that all
profits went to the Boys & Girls Club

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Our survey results confirmed our target as 18-40 years of age. The most popular colors
are: black, blue, white, pink, and red. Since our primary supplier doesn’t have white, we
decided to go with green as our fifth color since we have upcoming events such as the
San Diego St. Patrick’s Day Parade.
Description and Benefits of PixStix
Our product is a lightweight and durable, Bluetooth camera monopod. Its purpose is to
extend the range and ensure the best quality for any photograph or video. With PixStix,
you no longer need a stranger’s help to take a photo or video of you and your friends.
With PixStix, consumers are in charge of the quality of their pictures and the safety of
their cameras.
Technology
 The “selfie stick” is a relatively new product.
 The technology of other similar products ranges from a low-tech stick and harness
to those with Bluetooth and USB charging capabilities.
 Our product has the benefits of Bluetooth technology that will take the picture
using a remote control instead of the camera timer
 Customers can choose from an assortment of colors
Pictures
The selfie stick uses Bluetooth technology to connect with any smartphone or camera.
The user clicks the button on the stick to take a picture or to start a video. The stick
extends to 3 ¼ feet and is easily collapsible for convenient carrying.

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The product looks fun, fashionable, and easy-to-use. The selfie stick is available in a
variety of colors. We want consumers to be able to take our PixStix with them wherever
they go. The marketing team will demonstrate all the applications of the new technology
at our booths and other selling opportunities.
We want the potential uses for our product to be limitless. We want to inspire creativity
by providing a useful technology.

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Competition
a. Strengths
 New product, growing market
 Can replace other products, for example the GoPro stick
 Adjustable clasp makes it multifunctional
 Bluetooth capability
 Collapses down to make it into a portable size
 Consumers no longer have to worry about asking strangers to take pictures
 Group photo, everyone is in it; no one has to be left out taking the photo
 Can get the whole background in the shot
 Priced on the lower side compared to similar products
b. Weaknesses
 Newly formed company; consumers may be doubtful about our product
and if our company can be trusted
 Very specific market
 There are different opinions/views on the selfie stick
 It is an accessory, not a necessity
 If they do buy it, it would be a one-time purchase (unless bought as a gift)
Public Relations
PixStix will seek attention through advertising and press releases such as LeoFM, the
University’s radio station, The Campus Times, the University’s newspaper, and flyers.
We are planning to distribute flyers and business cards at our events. Our small sized
flyers are easier to distribute and to hang up around campus. We also plan to use flyers
and a large banner with our company name on it at events so customers know who we are
and what we are selling.
The Marketing Mix
Product
The major difference between our product and other similar products is the Bluetooth
compatibility. In contrast with our competitive substitutes, we have a high quality product
that does more than hold a camera. It can be used as a monopod at concerts to get the
whole picture/scene, and as a way to capture events from a further perspective. It can be
used at social events for people who want to capture memories with big groups of people.

24
Our brand represents simple usage. It is easy to set up and use and portable for easy
carrying.
Place
We are selling our product at a very affordable $20-25 price as opposed to $30 of most
retailers. PixStix will position itself as a premium alternative to its more expensive
competitors. Our company has the flexibility to move to any location to increase sales.
We will travel across California if needed. Selling at events such as concerts, parades,
and sporting events is our primary objective. The high volume of people attending these
events is almost guaranteed to have people buy our product. High Schools and colleges
will also be targeted.
Price
The initial selling price will be $20. Our cost of goods is $7 per unit and we want a 35%
profit margin. If we receive a bulk sale upwards of a 100 units, we will offer a discount;
the exact percentage will be determined by the CFO and be approved by the CEO.
Pricing will also remain flexible as we progress into the business. We will always make
necessary adjustments to accommodate the consumer and our business.
Promotion
The marketing budget will be used efficiently to promote products and minimalize costs.
Our job will be to promote the sale of our specific product by using banners, t-shirts,
flyers, business cards, and school radio ads. We will also set up booths at special events.
Our marketing budget is estimated at $330.
 $150 company shirts (9)
 $10 business cards (500)
 $40 banner (1-3x6)
 $100 flyers
 $50 printing and binding of business plan
 $20 logo
Social Media
It is important to communicate where we will set up booths and at which events to
potential buyers through social media. Establishing Facebook, Twitter, and Instagram
accounts will allow people to track our activities. The marketing department has created
several social media accounts to promote the product. By using the hashtag #pixstixulv
and tagging PixStix via Instagram (@pixstix.ulv), Twitter (@pixstix_ulv), or Facebook
(PixStix ULV), we are able to connect with our customers.

25
Through word-of-mouth, social media, and radio advertising we will be able to achieve
necessary attention. The main focus is to make the product easily available and
convenient as possible. The CEO and CFO will decide to increase or decrease the
marketing budget as they see fit.
In California, we will reach people through selling at local events and personal selling.
We will utilize social media to expand the reach of our company.
The most positive outlook for PixStix is our ability to sell at multiple events, some of
which have upwards of 5,000 people attending. Our slogan “The Sweeter Selfie” will
appeal to the youth market, and the product itself will attract consumers 18-40 years old.
Emphasis will be placed on our affiliation with the University of La Verne and the Boys
& Girls Club for consumers who may be skeptical buying the product. We will
demonstrate our product, allow consumers to try it for themselves, and provide great
customer service. Each member in the company will become an expert on the product.

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Expansion Plan for Future
Following the success of selling our product, PixStix would like to sell other
complementary products:
o A camera lens specifically modified for the front camera is an ideal
complement to the monopod
o Screen protectors for added protection for camera phones
o A small bulb attachment for a camera to create better lighting in darker
areas
Within a year, PixStix aims to be the most popular distributer in Southern California. Our
company will strive to continue to provide affordable and accessible products to all
customers.
Sales
Sales Strategies
The sales strategies our company will implement over the 11-week selling period will be
primarily based on personal selling, along with a mix of large and small events. The
company plans to focus on larger events where we believe our consumers will be taking
pictures or videos. PixStix plans will act as a vendor at outdoor events, sporting events,
music festivals, etc. places that the company collectively believes our product will sell.
At these events, our company has designated two people to demonstrate how to use the
product, different ways of use, and explain the benefits of having a selfie stick. PixStix
will also stress our promise of great customer service by giving our customers a business
card to contact us if they have any issues with their product. In the unlikely case that a
customer has a defective product they can trade it in free-of-charge and get a new one.
Sales Projections
There are three different possible sales projection scenarios that PixStix has considered:
most likely, best, and worst cases. The sales projections have been broken up by the total
number of units sold each week based on color. The top grossing colors are based on our
survey results and, in order, from top to bottom are: Black, Blue, Red, Pink, and Green.
On April 11th we have a large event being held at Angels Stadium with an expected
turnout of more than 5,000 people and with that, we are expected to sell a large number
of the team’s primary color (Red.) Each different sales situation may require more units
of a specific color.

27
Most Likely Scenario
In this scenario, PixStix enjoys a plentiful selling season and sells 716 units over the span
of 11 weeks. The projections of the unit's color are based on the survey results. Black was
indicated the most popular color. The second most popular color based on survey results
is Blue. Many events will be held starting off in the first week with the San Diego St.
Patrick's Day Parade, followed by the Graffiti Run at the Pomona Fairplex.
The month of April is projected to be the company's best fiscal month selling at three
large events; Los Angeles Angels 5k, San Bernardino Flea Market, and finally the Beer
Festival at Newport Beach. We met our quota of selling to at least 1% of the population
who attended those events. In the second to last week of selling, the event that the
company goes to is the Rose Bowl Flea Market. With help from our solid Operations
department, we will have a good inflow of inventory on a timely basis, which will be
needed in the month of April, as we have four events scheduled with an expected turnout
of more than 5,000 people.
Best Case Scenario
In this scenario, PixStix enjoys a plentiful selling season and sells 815 units over the span
of 11 weeks. For the projections of the unit's color, the numbers are based on the survey
results, with Black being the most popular color. The second most popular color is White;
however, due to the large event being held at Angel Stadium, Red is projected to be our
third best grossing color.
The month of April is projected to be the company's best month selling at four large
events: Los Angeles Angels 5k, San Bernardino Flea Market, Long Beach Grand Prix,

28
and, finally, the Beer Festival at Newport Beach. Lastly, in the second to last week of
selling, we will sell at the Rose Bowl Flea Market.
There is a 12% increase in sales from the Most Likely projections. The reasoning behind
this increase is that we would have a good flow of inventory, especially in the month of
April in which our company has four events with an expected turnout of more than 5,000
attendees where pictures can be taken.
Worst Case Scenario
In this scenario, PixStix struggles during the 11-week selling period only selling 440
units. The company will be able to repay the $2500 loan to Wells Fargo and donate the
remaining profit to charity. Due to a lack of collective focus by the group and
miscommunication on meeting times/event dates, the events yielded low profit.
There is a 39% decrease in sales from the Most Likely projections due to the lack of
inventory in the month of April where we concluded that we would earn a significant
profit. Also a lack of participation from the group altogether during the second week was
a contributing factor why sales were down. Our marketing department did not advertise
our product effectively. The reason there is such a decrease in units sold from Most
Likely is because we expected a higher turnout at our larger events and hoped to sell to
1% - 1.5% of anticipated attendees who were at each event, but only sold to fewer than
.5%.

29
Yearly Projections
After the 11-week selling period, PixStix plans to expand its borders from the University
of La Verne to San Diego County, Los Angeles County, and Sonoma County. Our focus
on those specific counties is because they are the most populous in California.
In 2016, PixStix plans to sell 3900 units due to our foothold in those three counties and
our ability to sell at larger events.
In the following year, our company projects that we will sell 4500 units, because our
company has decided to expand our sales territory from just those three counties and go
statewide.

30
Sales Monitoring
Daily Monitoring
The way that our company intends to monitor the daily sales of our product consists of a
strict list of guidelines for personal sales to document every detail of a transaction. We
will track how the customer paid for the product (Cash or Card,) the number purchased,
and when the transaction was made. At the end of the day, all personal sales will be
documented and stored and reported later in the week.
Weekly Monitoring
For weekly monitoring, the sales team will be emailed all individual sales made during
the week at the end of the week. These sales are totaled up to calculate our total units sold
that week and compared to the week’s projections to see if we met our quota. Event sales
will be calculated in the totals as well. When total units sold have been calculated and,
when that number meets/exceeds our quota for the week, then we will send that
information to financials to calculate total revenue.
Monthly Monitoring
At the end of the sales month, we will calculate our total sales per week to give us our
total units sold in that particular month. Next, we will put our actual sales in that month
versus our projected sales and adjust our event calendar based on those numbers to see if
we need to increase or decrease the number of events in the next sales month.

32
Finance
Capital Budget
Inventory
The starting amount will be used to purchase our starting inventory for the business. The
amount was based on purchases of 200 units where each unit will be $7.
Marketing
Expenses of $330 for marketing was budgeted for the following items: business cards,
banner, company shirts, flyers, logo of PixStix, printing and binding of Business Plan.
Business cards will be printed with our company information of 500 copies for $10, so
they can be handed out with a purchase of a selfie stick. A 3 x 6 banner will include our
logo and company name for the use at all events. The cost of the banner is $40. Company
shirts with the PixStix logo will be order by a local business for all nine members for a
total of $150. Flyers printed for all events are budgeted to cost $10. Marketing would like
to contract a graphic designer to create the PixStix logo for a total of $20, and, lastly,
$100 is budgeted for the printing of two PixStix Business Plans.
Sales
The Sales team currently has a budget of $430 that includes the cost of obtaining a permit
to sell at each event. During March, PixStix is budgeting to attend the San Diego St.
Patrick’s Day Parade with a permit for $175 and the Graffiti Run whose permit fee is
$100. During April, the San Bernardino Flea Market permit costs $35. Lastly, during
May, the Rose Bowl Flea Market has a permit cost of $120.
Travel
Traveling expenses, at $65, are based on inventory and events scheduled during the next
eleven weeks. Our Operations team has a current budget of $10 for the use of shipment.
Our vendor is located in Los Angeles, California, which allows for the COO to order and
pick up inventory. The budget was calculated through fueleconomy.gov where an
estimated fuel cost was projected to give us an exact amount for gas reimbursement.
Based on our projections, the COO will make four trips to pick up inventory. In addition,
our Sales team has travel expenses for the five events, which were also calculated
through fueleconomy.gov. However, during the first week, our projects cost $36, which
includes only the travel expense of shipment and the St. Patrick’s Day Parade event.
Working Capital
The total working capital after expenses is $559.

33
Reimbursements
As PixStix will only be selling for only 11 weeks, the Accounting team has created
reimbursement rules, a reimbursement form, and a expense report for each budget. These
rules, forms and reports can be found in the Appendix.
Financial Projections
The finance department has created three potential financial scenarios: Most Likely, Best,
and Worst case. Income statements, cash flow statements, and balance sheets have been
made for each scenario to illustrate the company’s financial situation.

34
Most Likely Income Statement

35
Most Likely Cash Flow Statement

38
Best Case Cash Flow Statement

40
Worst Case Income Statement

41
Worst Case Cash Flow Statement

46
Appendix
Survey
1. Gender
Male: 197
Female: 328
2. Age
12-17 yrs: 7
18-25 yrs: 231
26-40 yrs: 131
41+ yrs: 156
3. Do you own a phone with a front facing camera and/or Bluetooth capability?
Yes, I have both: 471
I have a front camera only: 25
I have Bluetooth only: 11
None: 18
4. How often do you take pictures on a weekly basis?
Not at all: 25
Rarely: 93
Sometimes: 189
Often: 140
All the time: 79
5. How often do you ask others to take your picture?
Never: 98
Rarely: 245
Sometimes: 137
Often: 38
All the time: 7

47
6. Would you be interested in buying a selfie stick?
Yes: 136
No: 286
Not sure: 103
7. Would you give a selfie stick as a gift?
Yes: 287
No: 238
8. How much would you be willing to pay for one?
$15-20: 441
$21-25: 65
$26-30: 10
$31+: 9
9. What color selfie stick would you prefer? Choose all that apply:
Pink: 127
White: 146
Yellow: 47
Green: 85
Blue: 148
Purple: 102
Black: 379
Red: 102
10. Would you be more likely to buy our product if you were aware that all profits
went to the Boys and Girls Club?
Yes: 396
No: 129

50
Reimbursement Form and Policy

51
Rules for Reimbursement
1. Keep all of your original receipts from every purchase you want to get reimburse for. If
you do not have the original receipt, the CFO cannot write you a reimbursement check.
2. Fill out a Reimbursement Form with a general summary of what you bought at each
store. Make sure to include store name and date of purchase, the budget the expenses are
coming out of and any other required information.
a. You must save Reimbursement Form under
“Reimbursement Form – Your Name – Committee – Date”
3.Fill out an Expense Report so that it reflects the remaining amount of money you have
in your Budget.
4. Personally deliver to me your Reimbursement Form with all original receipts stapled to
the reimbursement form.
5. Email the CFO a copy of the Reimbursement Form as well as the Expense Report so
they can also keep track of how much money you have left in your budget.
a. Email everything to stephanie.saldivar@laverne.edu
6. All receipts must be given to CFO within 3 Days of the date of purchase or you will
not be reimbursed.
Works Cited
1. Colquhoun, S. (2015, February 2). Why selfies are making the marketing world go
around. Retrieved February 10, 2015, from http://www.smh.com.au/executive-
style/culture/selfie-awareness-why-selfies-make-the-marketing-world-go-around-
20150201-133fcj.html
2. Hu, E. (2015, January 8). The Unstoppable Selfie Stick Trend Has Invaded American
Shores. Retrieved February 10, 2015, from
http://www.npr.org/blogs/alltechconsidered/2015/01/08/375617481/the-unstoppable-
selfie-stick-trend-is-now-on-american-shores
3. Kosoff, M. (2014, July 16). Selfie Sticks Are The New Tool Everyone Is Using To
Help Take Pictures Of Themselves. Retrieved February 10, 2015, from
http://www.businessinsider.com/selfie-stick-2014-7

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4. Cheng, J. (2015, January 9). After Conquering Asia, the Selfie Stick Does Las Vegas.
Retrieved February 12, 2015, from http://blogs.wsj.com/digits/2015/01/09/after-
conquering-asia-the-selfie-stick-does-las-vegas/
5. Selfie-stick-134717 - Best Buy. (2015). Retrieved February 13, 2015, from
http://www.bestbuy.com/site/promo/selfie-stick-134717
6. Cell Phones & Accessories. (2015). Retrieved February 13, 2015, from
http://www.amazon.com/s/ref=nb_sb_ss_c_0_8?url=search-alias=mobile&field-
keywords=selfie stick&sprefix=selfie s,aps,917

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