1. LIT CYCLE
1. LIT Cycles Executive Summary
2. LIT Cycles Unique Advantages
A. Younger Target Audience
3. S.W.O.T Analysis
A. Strengths
B. Weaknesses
C. Opportunities
D. Threats
4. Current Demand & Future Demand
5. Changes In Price Expectation & Population
6. Current & Future Supply Issues
7. Proposed Pricing
8. Utility Of L.I.T. Cycle
9. Costs
10. L.I.T. Cycles Market Structure
11. L.I.T. Cycles Resources
A. Land
B. Labor
C. Capital
D. Entrepreneurial Ability
12. Conclusion

2. 1. EXECUTIVE SUMMARY
L.I.T. Cycles, Lithium Ion Transport Cycles, is a new alternative transportation company in
O’fallon Missouri. Our focus is on American made electric motorcycles. There are over ten
million riders and climbing in the U.S. and over two hundred million worldwide. L.I.T. Cycles
seeks to create clean energy motorcycles for use by Americans first, then the world. We use
cutting edge technology as convenience, performing and selling features. There are currently
only two viable competitors in the U.S. we are up against and we are learning fast what the
public wants. We will sell a unique riding platform with unparalleled safety and tech features.
L.I.T. Cycles will also focus on sales and development of state of the art riding equipment and
gear. We have a great team of engineers, designers and support staff with a unified vision to
make L.I.T. Cycle a name recognized around the world.
2. L.I.T. CYCLES UNIQUE ADVANTAGES
L.I.T. Cycles desires to give its riders total experience from the initial test rides, to our superior
and innovative technology, to the buying or leasing experience and finally years of fun riding
and lifelong support.
 LIT cycles will sell only top quality machines that have been through all phases of
testing.
 We will offer no hassle repairs and or exchanges on bikes when a problem arises.
Inoperable machines will be retrieved by our staff or a third party transport from any
location and a running motorcycle will be loaned until in-operable machine is repaired.
We are so sure of our quality; no charges will be passed to the customer.

3.  LIT cycles will continue to offer and pursue new tech features for our products. We will
offer smart phone mounting kits and apps to control motorcycle performance from your
phone. This includes security tracking chips in various locations on the bike to
immobilize and locate the motorcycle in case of theft.
 As battery hybrid technology improves, we will continue to develop the world’s first
hybrid gas electric motorcycle for extended use and range.
 We are working with GoPro cameras to integrate various mounting systems on our bikes
for use. Videos of our bike’s performance will be available to see on our website,
GoPro’s website and in our store.
A. YOUNGER TARGET AUDIENCE
L.I.T. Cycles seeks to target young men and women attending college in the surrounding
St. Louis area. There are many universities in the St. Louis area. We seek to persuade those of 18
to 35 years of age to use our products.
3. S.W.O.T. ANALYSIS
A. STRENGTHS
 L.I.T. Cycles has an experienced and knowledgeable team.
 L.L.C. entity
 State of the art technology for better riding comfort, control, and safety
 Affordable purchase and lease programs.
 Zero emissions transportation for the environment
 Geographic location in Midwest
 Partnership with GoPro Cameras allowing for live action bike performance

4. B. WEAKNESSES
 Initial limited capital
 Domestic U.S. battery supply at a higher cost than Chinese batteries for short term
 Possible loss of key employees could hurt production, research and sales.
 Must have 30% growth in 16 months or less to be sustainable
C. OPPORTUNITIES
 Ground floor of an ever growing and emerging niche’ market
 Tremendous growth potential allowing for higher capital gains for product development
and new added tech features.
 Product differentiation is fairly high compared to competitors offering gas powered
motorcycles.
 Build foundation on safe, clean and green transportation for 21st century, by persuading
younger generations to invest in our company for better riding enjoyment with more
riding features.
 Increase in gas prices
D. THREATS
 Overseas pirating of design and technology in Asia
 Growing too big too fast without compensating with reliable support in management,
sales and service.
 Competing against big companies like Honda and Yamaha with potential release of
similar bike platforms

5.  Costs of vendor made components increases and or suppliers completely shut down in
U.S. This would force L.I.T. Cycles to purchase components first in Canada, then Mexico
and lastly Asia, all outside of L.I.T. Cycles mission and image of being American made.
 Cheap gas prices and increased fuel mileage on competitor gas powered bikes.
4. CURRENT DEMAND & FUTURE DEMAND
L.I.T. Cycles current demand will be based on its uniqueness and high tech features. We
anticipate the demand to grow quickly and be sustained for the foreseeable future. In relation to
target audience, change of income and price of competitor motorcycles, L.I.T. Cycles will stay
competitive with purchase and lease programs and our marketing strategy. As changes in taste
and preference evolve, LIT Cycles will strive to stay ahead of trends. First, by creating demand
for our motorcycle accessories and adapting to current trends. Then second, research and
development after we have reached sustainability.
5. CHANGES IN PRICE EXPECTATION AND POPULATION
 L.I.T. Cycle users come from middle to upper middle class families making $70,000 to
$120,000 a year. Our customers are not limited to this income restriction due to our
exceptional purchase and lease programs. Motorcycle user ship and college attendance is
increasing. Interest in high technology and the environment in this group is sizable. Many
younger people are holding off on buying an expensive new car, or even getting a
driver’s license. “Getting rides” and public transportation are utilized the most.

6.  LIT Cycles doesn’t expect our prices to change unexpectedly. We will have increases on
gear and motorcycles every 16 months. These increases will not be substantial, but will
be set to provide for our expansion in the long term future.
6. CURRENT AND FUTURE SUPPLY ISSUES
LIT Cycles is on the ground floor of an emerging market. We currently use domestic U.S.
suppliers in the Midwest market to keep costs low and supply efficient. We plan on producing
some components on site at our facility as well as in partnership with a small company in
Wentzville. LIT Cycles will continue to use state of the art tech in our product line, while
keeping supplier lines open through multi- vendor contacts. This will help our company in the
event of cost increases, company shut-downs through strike or economic roadblocks. LIT wants
to help create jobs in the U.S. and stabilize our company’s future without relying on imports
from China.
7. PROPOSED PRICING
L.I.T. Cycles wants to market its product line not based on price competitiveness and
comparison with our gas powered rivals, but on product uniqueness superiority.
 L.I.T. Cycles will always offer top purchase and lease programs. These can be adjusted to
match current economic and market conditions. Our target market is in a stable economic
category and we will have varying increases every 16 months between motorcycles and
riding gear. We will strive to make affordability possible on our motorcycles to all
economic and social levels.
 L.I.T. Cycles will stay competitive with global markets when involving riding gear and
accessories. We will strive to buy components from American manufacturer’s that are as

7. geographically as close to our business as possible. We hope to keep shipping costs
down.
 Tech add-ons will generally be higher priced in the short-term. In the long-term, L.I.T.
Cycles is looking into production of certain features on site at our O’Fallon location and a
site in Wentzville MO. The objective is to lower our tech add-on pricing, as this is one of
our most important selling features.
 Our lease programs will start at down payment levels of $500 down on Model 1, $699
down on Model 2 and $899 down on Model 3 or top model. Monthly payment on leases
will be in the $100 to $175 dollar range depending on model and added features. We will
offer zero down on motorcycle purchases not just once or twice a year, but at all times.
 Depending on model choice, specifically buying Model 2 or 3, certain features will be at
no additional charge. Our GoPro package will be one of these items on Model 3.
 LIT Cycles intends our price to remain stable in the long term. We intend our demand to
remain inelastic on our foundation products, like motorcycle Models 1, 2, and 3.
 For new tech riding gear and components, pricing will be elastic compared to our market
demand. We intend to produce top quality products domestically at a reasonable rate.
Making a higher profit on our related goods will allow us to continue our purchase and
lease programs in the long term, independent of banking institutions if need be.
8. UTILITY
L.I.T. Cycles will provide affordable and reliable transportation to new and existing motorcycle
enthusiasts. We want to bring in new customers who are motorcycle lovers and expose them to
battery powered machines. Currently there are no competitors like Zero or Lightening
dealerships in the St. Louis area. LIT will take advantage of this geographic positive while it

8. remains. We will offer standard items on our motorcycles like Blue Tooth connectivity, ABS
brake systems and traction control without “optional” pricing for these items. This is something
our gas powered competitors do not do.
 Unique bike platform for ease of use with beginning riders
 Longer riding range of 180 miles, up to 220 with solar charge module
 Offering low lease and financing terms year round
 Offering Motorcycle Rider Safety Course at 50% less than all competitors, including
community colleges.
 Every Saturday of the month from 9am to 2pm, test rides and information sessions will
be held on showroom site.
 Customers will be entered into our database to receive emails on product development,
open houses, on road display of bikes and promotional offers.
 Individuals that attend our open houses can be signed up for Motorcycle Safety Training.
Those that successfully pass M.S.T. and lease or purchase a L.I.T. Cycle, will be
refunded their M.S.T. fee.
 During the first six months after our Grand Opening, customers who purchase a L.I.T.
Cycle model 1, 2, or 3, will receive $200, $300, and $500 depending on model towards
purchase of riding gear.
 We warranty our battery packs for 3 years. If a customer purchases our optional state of
the art charging dock, we will warranty the battery pack for 6 years.
 Our motorcycles have fewer moving parts that need maintenance or fail mechanically.
We have a direct drive system for instant torque and speed. Gas powered motorcycles
cannot perform like our L.I.T. Cycles.

9. 9. COSTS
 Within 16 months our capital expenditures will remain below our sales, rental, and
operating costs.
 Our marketing costs with motorcycle publications, trade shows and open houses will
contribute to our 30% growth within 16 months.
 We will focus on our 3 motorcycle models and will make no new investments in new
products or markets until our 30% growth minimum is achieved.
 L.I.T. Cycles fixed costs will be in rent with our long-term lease agreement with the
property owners. We do not have a high early lease bailout fee if we need to move out for
expansion purposes.
 Our owners and employees salaries will rise with the company growth every 12 to 16
months.
 Our marketing costs will vary depending on the type of promotions we are using.
 If our projected profits are met, we will increase our marketing and promotion
expenditures in equality with growth.
10. L.I.T. CYCLES MARKET STRUCTURE
 LIT Cycles will have unique products to compete with other traditional motorcycle
monopolies like Honda and Yamaha. It’s this product uniqueness, and we feel product
superiority, that will give us a corner niche’ in this emerging market.
 Motorcycle user ship is up in the last ten years, with steady growth for the foreseeable
future. With our focus on our 3 bike platforms and our unique riding gear features, like

10. our GoPro partnership, LIT Cycles may have the greatest market advantage for years to
come.
11. L.I.T. CYCLES RESOURCES
A. LAND
 L.I.T Cycles will initially have a store and small warehouse facility in O’Fallon Missouri.
We will be open Monday through Friday from 9am to 6pm, and Saturday 9am to 2pm.
We will be in a large middle class community with easy access to all St. Louis
communities. L.I.T. Cycles will promote local community commerce by using locally or
American made components for our products. We want to grow the American economy
and promote our brand by doing this.
 Within four years we will open our second location provided we have achieved our
desired growth percentage. We will determine this final location by recording customer
demographic information and interest in our product at various St. Louis events.
 As L.I.T. cycles grows, we will also offer our badged motorcycle accessory line at local
retail motorcycle gear providers like Cyclegear. We will also promote online at
MotorcycleSuperstore.com. This will help place our name to a broader market.
 By 2016, we intend to open up more motorcycle centers in the Midwest, starting with
Chicago and Kansas City. As we continue 30% growth, we want to venture nationwide.
 L.I.T. Cycles want to recruit young and enthusiastic talent from top local universities for
employment and a customer base. We will attempt to get our name and images on
Missouri and Midwestern college campuses to start. L.I.T. Cycles intends to build and
keep a passion for our product line, from college age through retirement.

11. B. LABOR
 L.I.T., has nine full-time employees that include two of the direct owners, two full-time
mechanical engineers, four employees for tech support and sales and one full-time office
assistant.
C. CAPITAL
 Local St. Louis banks and credit unions, as well as Midwest financial institutions.
 Ownership of 50% of mechanical production machines in excellent working order. This
includes all hand and small electric tools. Remaining equipment is financed.
 Small company fleet vehicle lease program. Complete ownership of two large travel
trailers for trade show and motorcycle transportation and delivery.
 Complete ownership of computer equipment, phones, networking, data, office equipment,
and vinyl graphics printer for promotion and advertising.
D. ENTREPRENURIAL ABILITY
 Our owners, engineers and support staff have years of practical experience and
institutional training with motorcycles and electronic components. The ability of L.I.T.
Cycles to offer unique state of the art motorcycle platforms is quite large.
 The owner’s friendships and partnerships with members of the motorcycle and financial
community in the region is a tremendous asset for L.I.T. Cycles growth.
 L.I.T. Cycles will use innovative approaches for marketing and friendly and simple
business practices. We will make it easy and enjoyable to do business with us in a
manner that isn’t stuffy or old fashioned.

12. 12. CONCLUSION
 L.I.T. Cycles is a dream to create an entry level and performance level motorcycle
platform, manufactured by innovators and ridden by young impressive innovative users.
We have the technology and the drive in a new market to provide practical adventurous
transportation to our American youth first and then to the world that is waiting for us to
show up. Are you ready to follow the LIT that leads the way?

13. L.I.T. CYCLES
BY
MATT HIXSON
BUS203
PRINCIPLES OF MICRO ECONOMICS
INSTRUCTOR
JENNIFER BYERLY
12/9/2013