Business Plan - Retail Manufacuring Organization

Gulf Coast Nutritionals, Inc. - Business Plan
Company Confidential
i
TABLE OF CONTENTS
I – OPPORTUNITY SUMMARY ................................................................................................. 2
Summary of Business .............................................................................................................................2
4-Year Financial Forecast .......................................................................................................................3
Summary Pro-Forma Profit/Loss Statements (4 Year Plan) ...................................................................3
Requested Capital Investment/Use of Proceeds ....................................................................................3
Exit Strategies .........................................................................................................................................4
II - OVERVIEW OF THE NATURAL PRODUCTS INDUSTRY ................................................... 5
Introduction .............................................................................................................................................5
Natural Products: A Revolution in the Health Industry ............................................................................5
III – ABOUT GULF COAST NUTRITIONALS, INC. ................................................................... 7
Products and Services ............................................................................................................................7
Historical Financial Summary .................................................................................................................9
IV – ABOUT THE ARK NATURALS PRODUCT LINE ............................................................ 11
The Ark Naturals Product Line ............................................................................................................. 11
Analysis of the Natural Pet Products Market ....................................................................................... 15
V - MARKETING STRATEGY .................................................................................................. 19
Target Market for the Ark Naturals Product Line ................................................................................. 20
Market Penetration Plan....................................................................................................................... 20
Sales Strategy ...................................................................................................................................... 21
Marketing & Advertising Strategy ......................................................................................................... 26
VI - MANAGEMENT PLAN ...................................................................................................... 29
Board of Directors ................................................................................................................................ 30
Staffing Plan ......................................................................................................................................... 30
VII - OPERATIONS PLAN ....................................................................................................... 36
Facilities Plan ....................................................................................................................................... 36
Operations Plan ................................................................................................................................... 36
Accounting Operations ......................................................................................................................... 37
VIII - FINANCIAL PLAN ........................................................................................................... 38
Financial Requirement ......................................................................................................................... 38
Use of Proceeds ................................................................................................................................... 38
Financial Analysis and Projections (4 Year Plan) ................................................................................ 38
APPENDIX A – PROFORMA FINANCIAL STATEMENTS ...................................................... 40
APPENDIX B – ORGANIZATIONAL CHARTS ........................................................................ 41
APPENDIX C – ARK NATURALS PRICING CHARTS ............................................................ 46

2
I – OPPORTUNITY SUMMARY
Summary of Business
General Business Information
Gulf Coast Nutritionals, Inc. is involved in producing natural products for the human and
companion animal/pet retail market. The company focuses its efforts in two core areas:
 To produce the market leading and most complete line of natural supplements for pets under
the label Ark Naturals, Products for Pets.
 To provide private label manufacturing, formulating, and consulting services of natural
products for humans and pets for a variety of industry participants, such as Mass Marketing
Stores, Direct Marketing Businesses, and Multi-Level Marketing Companies.
Summary of Business Objectives
Business
Objective
Short Term Goals (12-24 Months) Long Term Goals (2-4 Years)
Profitability  To generate a return on investment
from on-going operations in Year 2.
 To generate $2,569,260 in profitable
income (over $500K Investment).
Revenues  To grow company annual revenues to
$2,250.000.
 To grow company annual revenues to
$6,000,000.
Market
Penetration
 To grow the retail distribution
penetration of the Ark Naturals
product line in the Natural (Health)
Products Marketplace to the following
percentages: Northeast (45%), West
(60+%), Midwest/Central (25-30%),
Southeast (25-30%).
 To show significant growth the
following additional markets: Online,
Veterinary, Catalogues, and Pet
Products.
 To become the leading manufacturer
of natural products for pets along the
East and West Coasts of the US.
 To grow the retail distribution of our
products to 80% of the national
capacity in the Natural (Health)
Products Marketplace.
 To grow market share of the Ark
Naturals Product Line in additional
markets to the following percentages:
Online (80%), Veterinary (45%),
Catalogues (80%), Pet Products
(65%).
 To become the leading manufacturer
of natural products for pets in the US.
Business
Development
 To add 4 products to the Ark Naturals
Line.
 To continue/complete plans for
segment expansion of the Ark
Naturals Product Line.
 To continue diversifying our Private
Label service offering and market
exposure.
 To begin development of a
professional supplement line for the
Veterinary Market.
 To explore additional business
opportunities for natural product
development.
 To add 8 products to the line, and
grow the Ark Naturals Product to 20
products total. New items will include
Pet Food products and Merchandising
items.
 To release to market a professional
line of natural supplements for the
Veterinary Market.
 To identify/penetrate additional
markets for our products or new
company product lines (i.e.: the
equine market, international market).
 To develop/complete plans for Mass
Market penetration.

$6,000,000.00
$5,000,000.00
$4,000,000.00
$3,000,000.00
$2,000,000.00
$1,000,000.00
$0.00
$1,000,000.00
3
4-Year Financial Forecast
Gulf Coast Nutritionals expects to show a loss of $97,500 in the first year as the business after
funding. The business will absorb costs generated from building a retail distribution network in
the regions as well as the marketing and advertising costs associated with creating brand
recognition for the Ark Naturals line. The business expects to operate at a profitable level in year
2, reclaiming all of the first year loss. Gulf Coast Nutritionals expects to be generating significant
profits in year 3 by continuing maket diversification and line expansion of the Ark Naturals and
Private Label business operations. By year 4, the business plans to generate $6,000,000 in
annual revenue through continued business growth and product line/operations expansion,
creating $2,569,260 in operating profit at this point in time.
4-Year Financial Forecast
Year 1 Year 2 Year 3 Year 4
Summary Pro-Forma Profit/Loss Statements (4 Year Plan)
Net Income (Carryforward)
Operating Margin
Sales
Sales
Gross Revenue 1,100,000 2,250,000 3,750,000 6,000,000
Cost of Goods Sold 407,000 787,500 1,312,500 2,100,000
Gross Margin 693,000 1,462,500 2,437,500 3,900,000
Expenses
Payroll & Overhead 481,000 731,260 870,580 1,160,900
Advertising & Marketing 251,500 386,000 603,000 1,071,500
Professional Expenses 58,000 70,000 100,000 140,000
Total Expenses 790,500 1,187,260 1,573,580 2,322,400
Income Operations: (-97,500) 275,240 863,920 1,527,600
Year-End Carry Forward: (-97,500) 177,740 1,041,660 2,569,260
Requested Capital Investment/Use of Proceeds
Gulf Coast Nutritionals will require an initial investment of $500,000 in equity/loan financing for
continuing business operations. This financing will be used in conjunction with on-going
operating revenues to provide $438,604 in operational additions in Year 1 (a complete breakdown
of Use of Proceeds is provided in Section VIII – Financial Plan.) These funds are in addition to
the $270,000 in money and sweat equity contributed to the business to date by the owners.
Those start-up funds have been utilized to develop the Ark Naturals product line, create a base
retail distribution network, support all Sales & Marketing activities to date, and develop the private

4
label business.
Exit Strategies
The company will explore the following exit strategies at the end of the plan:
 Investor Buy-Out/Acquire Growth Financing
 Joint-Venture
 IPO

5
II - OVERVIEW OF THE NATURAL PRODUCTS INDUSTRY
Introduction
The Health Products Industry has changed dramatically over the last 100 years. Originally,
people considered health and wellness issues only in a treatment sense. Over the years,
however, several factors have caused a shift in this way of thinking:
 Scientific research has lead to greater knowledge of the causes of many of society’s health
issues.
 Consumers have become increasingly concerned with the options, manner, costs, and side
effects of the available methods of medical treatment.
 Financial independence and a changing, more flexible work environment have provided more
time and money for individuals to enjoy their lives, fostering a desire to lead a healthier, more
fulfilling lifestyle.
Together, these factors have led to a shift in the health industry’s thinking from treatment to
prevention of illnesses. More and more, research efforts have focused on ways to help people
live healthier, illness-free lifestyles. As a result, an entire industry has emerged, dedicated to
supporting people’s interests in living longer, healthier lives.
Natural Products: A Revolution in the Health Industry
The rise of the natural product supplement market is the result of this growing concern for
alternative health options that has emerged in recent years. People are looking for methods that
will allow them to optimize their health in a natural way, avoiding synthetic products that may not
be safe and are generally expensive. More importantly, people are now demanding products that
can be used, cost-effectively, on an on-going basis to both prevent future illness as well as
increase present overall health and well-being. Natural products answer this need by providing
solutions to health problems while maintaining a safe, economical approach for the user.
Today, natural products can be found almost anywhere. These items, once relegated to small,
poorly lit “Mom & Pop” health food stores, have moved into glamorous supermarket-sized retail
outlets such as Whole Foods, Wild Oats, and GNC. Retail channels previously uninterested in
carrying these products now readily include them on their shelves, seeing them as an emerging
profit-center for their businesses. Further, these products are no longer seen in only the natural
products market. Today, these items can be easily found in Traditional Pet Stores, Mail-Order
Catalogs, Direct Markets, Mass Markets, On-line retailers, and even in the offices of medical
practitioners and Veterinarians.
The number of natural product offerings available in the marketplace have grown and diversified
on a tremendous scale. Gone are the days when vitamins were the only option to prescription
drugs. Today, there are products to meet every consumer need. Vitamins, Minerals,
Homeopathy, Aromatherapy/Personal Care, Sport Supplements, Energy/Mental-State (Gingko,
Kava Kava, St. John’s Wort), Meal Supplements, Herbs/Botanicals, and Pet Products (a new,
rapidly emerging category) now fill the shelves of store across America and internationally.
Sales for the industry reflect the tremendous growth, penetration, and diversification that has
occurred in the natural products marketplace. Total natural product sales grew as an industry to
over $25 Billion in 1998, an 11% increase over 1997. Additionally, total sales for the industry
are expected to reach nearly $40 Billion by the end of 2005. Natural product retail sales, the
largest market segment, grew from $14.9B in 1997 to $18.96B in 1998 (26% growth). Further,
Non-Retail Sales as a category emerged in 1998. This category, which includes mass markets,
mail order catalogues, multi-level marketers, practitioners, and e-commerce sites, contributed an
additional $6.42 Billion in revenues. This represents a total increase of approximately 41%.1
1 Natural Food Merchandiser – 1998 Market Overview, June 1999

40
30
20
10
16.35
18.58
6
20.98
23.49
25.79
27.89
29.90
Other research points to the tremendous growth of the natural products industry.
 According to the Natural Foods Merchandiser, there are over 9000 natural food stores in the
U.S. This already large number does not include vitamin type stores such as GNC or Great
Earth Vitamin (Natural food stores and vitamin stores total approximately 14,000) 2.
 Of the 9000 natural food stores, the largest sales growth is in California and Pacific
Northwest (31.3% of total 1998 sales) and East Coast (29.9% for East, Northeast, and
South). Additionally, there is significant growth in the Southwest (13.6%), Mountain (7.7%),
and Midwest (15%)3.
 A study performed by Market Facts for Vitamins.com, a Falls Church VA company found
more Americans are choosing natural remedies over prescriptions. The survey revealed that
almost 50% of Americans are willing to try natural remedies before taking a prescription, with
59.2% of those being women. The study found that 60.5% reported taking vitamins or other
nutritional supplements, up by 47.2% five years ago. More women (63.3%) than men (53.2%)
said they were taking vitamins or other supplements4.
 Another study conducted by Yale University and published in the Journal of the American
Medical Association (JAMA) found that patients reported using alternative therapies in
conjunction with, rather than a replacement for traditional medical care5.
All these statistics demonstrate the enormous growth that exists in the natural products industry.
Gulf Coast Nutritionals, Inc. exists to take advantage of this
opportunity!!!
4 Whole Foods Oct. 99 p. 22
5 Whole Foods Oct. 99 p. 22
31.93
33.92
35.89
37.82
39.69
Natural Products Industry Annual Revenues (Billions of Dollars)

7
III – ABOUT GULF COAST NUTRITIONALS, INC.
Gulf Coast Nutritionals, Inc., located in Naples, Florida, is a subchapter S Corporation,
incorporated in August 1997, and held in total by principals Jay and Susan Weiss. This company
was created to provide products and services for the natural products market. In particular, the
company has targeted the Pet Products industry and the Private Label markets as its primary
areas of focus.
The company recognized that, while there is and will continue to be tremendous growth in the
natural products industry as a whole, business success would depend on going after the
emerging niche markets in the industry. As such, Gulf Coast Nutritionals, Inc. decided to avoid
direct competition with the strong players (Twin Labs, Hartz Mountain, Weider, etc.) in the human
products market and instead go after the promising, emerging market of natural pet products.
Additionally, the owners recognized their previous and on-going manufacturing and retail
expertise was a valuable commodity demanded by other organizations. Because of this fact, it
was decided that the company would enter the traditional natural products markets through the
provision of Private Label consulting services to companies interested in producing and marketing
their own offerings.
Products and Services
Gulf Coast Nutritionals, Inc. provides the following core products and services in its ongoing
operations:
 Ark Naturals Products for Pets
 Private Label Consulting services
Ark Naturals Product Line
The Ark Naturals product line is the primary ongoing concern for Gulf Coast Nutritionals, Inc.
Information regarding the product line and operating activities associated with the line is detailed
in Section IV of this plan.
Private Label Consulting Services
The Private Label marketplace is a rapidly growing revenue opportunity within the natural
products industry. While primary brand names have steadily penetrated the core retail markets,
other segments, like mass-market and other specialty stores, are looking for natural products as
well. Because of the different market dynamics (lower price points, generic consumer
preferences, etc.), established brands aren’t necessarily profitable in these places. Private
Labeling existing products or modifying existing lines in order to market them in these stores
allows manufacturers and retailers to effectively take advantage of this opportunity6.
Gulf Coast Nutritionals provides a variety of private label services to entities that want to market
6 Natural Products Merchandiser – 1998 Market Overview, June 1999: p. 40.

8
human or animal natural products in these “other” markets. These services are provided to
customers on a contractual basis, and represent a growing revenue opportunity for the company.
Through years of manufacturing and marketing in the Natural Products industry we are able to
offer this expertise to other companies. These services include:
Formulations: The Company provides the necessary resource skills to assist industry
participants in developing formulations for products that they wish to market. Our own
formulation specialist develops these products. We use only premium natural botanicals and
ingredients.
Consulting: The company works with business participants to determine what products they can
market and helps them create solutions that will fill needs in their target market.
Manufacturing: All products generated through our private label business are manufactured,
packaged, and shipped to the respective party in completed form ready for retail distribution..
Gulf Coast Nutritionals, Inc. has provided Private Label Services for over 25 companies within the
industry, including Oxyfresh, Nature’s Remedies, and Service Plus. The company will continue to
target organizations that are re-sellers of natural products for its private label business.
The following types of companies utilize these services:
 Multi-Level Marketing companies
 Direct Marketing companies
 New and Existing human and pet product manufacturers
Future Business Opportunities
Gulf Coast Nutritionals, Inc. plans to pursue the following growth opportunities in the future:
Ark Naturals Product Line Expansion
The company will release at least two new products each year as part of a line extension to Ark
Naturals. These extensions will include:
 Additional Wellness and Remedy products
 Food Items (Pet Food, Treats, etc.)
 Brand Name merchandise (bowls, leashes, toys, clothes, etc.)
Private Label Consulting Services Expansion
Gulf Coast Nutrtionals, inc. will pursue the following future activities:
 Operations Diversification (New, Additional Services)
 New Market Opportunities (MLM, Direct, Mass Market, other)
 Product Diversification (Animals, Health, Wellness, Remedy, etc.)
Veterinary Line
The company will develop and release a professional veterinary line in Year 4.
Mass Market Lines
The company will develop and release a product line that will be priced for the Mass Market
community. This segment includes: Target, Wal-Mart, Pet Superstores, and large volume
grocery establishments.
Other Company-Owned Products
As the company builds its presence in the market(s) and becomes profitable, new products,
owned, distributed, and marketed specifically by Gulf Coast Nutritionals, Inc. will be considered.

$700,000.00
$600,000.00
$500,000.00
$400,000.00
$300,000.00
$200,000.00
$100,000.00
$0.00
$100,000.00
$200,000.00
9
Historical Financial Summary
Gulf Coast Nutritionals has continued to demonstrate significant revenue growth. The company
has generated over $540,000 in sales to date, and is on pace to surpass its 1999 goal of
$625,000, while operating at a gross margin in excess of 60%. More significantly, the company
is enjoying an annual growth in revenues of 31%, while continuing to operate without external
funding.
1997-1999 Historical Financial Performance (Est. 1999)
1997 1998 1999
Net Income
Operating Margin
Sales
Historical Annual Pro-Forma Profit and Loss Projections (1997-1999)
1997 1998 1999 (thru 9/30) 1999 (Est.)
Sales
Gross revenue 358,314 489,277 479,895 639,860
Cost of goods 82,847 181,929 180,812 241,083
Gross Margin 275,467 307,348 299,083 398,777
Expenses
Payroll 139,963 80,457 65,400 87,200
Adver/marketing 87,939 97,399 78,672 104,896
Other expense 147,793 155,083 196,142 221,522
Total expenses 375,695 332,939 340,214 413,618
Income Subtotal: (-100,228) (-25,591) (-41,131) (-54,841)
Logo/name change (-10,000) (-40,000) N/A N/A
Net Income (-110,228) (-65,591) (-41,131) (-54,841)
Adjustments to Historical Performance
Operating expenses, along with the costs of building the needed sales distribution network, has
continued to negatively effect company earnings. Other business factors have affected the
overall profitability and operating efficiency of the business in the following areas:
Cost of Goods Sold
The lack of financing and needed cash flow has affected gross margins for the business. The
company has been unable to purchase manufacturing materials in large quantity, preventing it to
gain volume discounts. Thus, an influx of financing will allow the business to see an immediate 4-

10
8% reduction in Cost of Goods Sold, thereby improving overall profitability.
Debt/Interest Payments
The business has continued to be affected by the interest payment resulting from current
financing efforts. Gulf Coast Nutritionals, Inc. continues to pay interest on credit card debt used
in operations. Additionally, the company has continued to miss out on discounts available from
timely payments.
Effects of Lawsuits
Gulf Coast Nutritionals, Inc. has incurred a one-time expense as a result of a brand name
change from Noah’s Ark to Ark Naturals for the pet product line. The business, however, has
absorbed the effects of this action and the additional debt incurred, and is now moving forward
with is current operations.
Financial Performance By Segment
Ark Naturals Business Revenues
Sales revenues for the Ark Naturals product line have shown steady growth, in-spite of a lack of
sale and marketing dollars to effectively push the line commercially. The company has
continued to successfully push for wholesale and retail distribution, as well as brokerage
representation of the Ark Naturals line. As a result, the line is poised for explosive sales growth
in the next 1-2 years. With gross margins on the sales at 68%, the Ark Naturals line remains an
exciting growth opportunity for the future.
400000
300000
200000
100000
0
124276.33
206640.55
377933.47
1997 1998 1999
Private Label Business Revenues
The private label business continues to offer a promising growth opportunity to the company.
Margins on sales for this segment are currently at 25%-30%. The company has secured repeat
business with several reputable customers. Additionally, the company has nearly $100,000 in
business booked in advance for the First Quarter of 2000. Gulf Coast Nutritionals anticipates
increased growth in this business segment as our experience grows, new products and services
are added, and additional high-volume clients are targeted.
200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
106316.43
174008.73
200000
1997 1998 1999

11
IV – ABOUT THE ARK NATURALS PRODUCT LINE
The Ark Naturals Product Line
The Ark Naturals product line was created with the vision of providing an alternative to synthetic
chemical based pet health products (i.e. Hartz Mountain) that are currently available in the
marketplace. The demand for natural (chemical free) pet products is an outgrowth of consumer
“label awareness” combined with a growing grass roots understanding of the benefits of natural
products. Retailers have come to understand that consumers are demanding products for
themselves, their families and their pets that are chemical-free, safe, and effective.
Remedy Products
Joint “Rescue”
This product will "rescue" your pet from chronic
arthritis pain, and will provide relief for swollen joints,
morning stiffness, inability to run and play as well as
age related immobility. Joint "Rescue" contains
University studied nutraceuticals such as
Glucosamine HCL, Boswellin, Curcumin, Yucca, and
Bromelain, all proven to assist in relieving pain and
inflammation while helping to heal damaged cartilage.
This product has been fortified with vitamin’s A, C, E,
and Methionine, Calcium, Zinc, Magnesium,
Manganese, B6, B5, Copper and Selenium, essential
vitamins and minerals which act in synergy, and are
critical in helping to stimulate more effective healing.
Available in bottles of 90, 180
Happy Traveler
The herbal ingredients in this product will relax and
calm an animal that is stressed and nervous. Unlike
FDA tranquilizers, Happy Traveler is non-habit
forming and much more gentle for your pet. This
product contains Valerian, German Chamomile, Kava
Kava, St. John's Wort, and Melatonin. Suggested
uses for this product include: visits to vets, groomers,
kennels, during thunderstorms and fireworks. Happy
Traveler is especially effective in easing anxiety when
crating animals for travel.
Available in bottles of 30

12
Gentle Digest
This product restores the ‘good bacteria’ needed in
the digestive tract for healthy digestion. Gentle Digest
contains the preferred form of Lactobacillus
Sporogenes, which has been effectively proven to
restore digestive balance interrupted as a result of
antibiotic therapy. Unlike the traditional Acidophilus
which are dead spores, Lactobacillus is a live spore
which is much more effective as a result. This
product eases periods of diarrhea, and inhibits
intestinal infections.
Available in bottles of 30
Eyes so Bright
This product is formulated to maintain eye health.
Additionally, it is effective in reducing inflammation
and infection, removing foreign debris and
encrustation, cleaning mucous membranes
surrounding the eye and promoting bright healthy
eyes. Eyes so Bright contains Goldenseal,
Echinacea, Witch Hazel, Aloe, and Gotu Kola.
Available in 5 oz bottles
Royal Coat
This product is formulated with premium EFA’s of
pure Omega 6 (Borage Oil) And Pure Omega 3 (Fish
Oil) targeted to cure dry skin, hot spots, rashes,
promote shiny haircoats, and healthy skin. EFA’s are
critical for all carnivores for preventing dry, scaly,
itchy coats. Skin and hair coat problems are caused
primarily by poor diet. Pet foods even premium pet
foods do not provide sufficient EFA’s for animal
health. Unlike our competitor's products which use
cold pressed oils, our product use real Borage and
Fish oil and thus are much more effective. (Note: this
product is taken internally.)
Available in 4oz bottles.
Ears all Right
This product is marketed to heal and maintain healthy
ears. It will remove ear wax and foreign debris safely
and treat ear mite infestations. Ears all Right is
formulated with Aloe Vera to heal wounds, Calendula
to ease pain, Myrrah to stimulate the immune system
and help healing, and Cinnamon leaf oil that acts as
an antiseptic and ear disinfectant.
Available in 4oz bottles

13
Neem Bug-Free Shampoo
Neem Bug Free™ Shampoo provides a safe,
effective natural alternative to synthetic pesticides for
controlling fleas and other blood sucking insects that
infest your pets. Neem Bug Free™ Shampoo is a
gentle, non-drying formulation that releases fleas
from the skin and coat, and kills them. It is also an
effective shampoo for cleaning dirt, oil, and sebum
from all types of dog and cat coats. Neem Bug
Free™ Shampoo is a safe flea removal spray for
dogs, cats, rabbits, ferrets, hamsters, and other
small mammal pets. It kills adult fleas and flea
larvae. Neem Bug Free™ Shampoo should be used
in conjunction with Neem Bug Free™ Repellent.
These two products work together synergistically.
Available in 8 oz bottles.
Neem Bug-Free Repellent
Neem Bug Free Repellent provides a safe, effective
natural alternative to synthetic pesticides for
controlling fleas and other blood sucking insects that
infest your pets. Neem Bug Free Repellent is a
gentle, non-drying formulation that releases fleas
from the skin and coat, and kills them. Neem Bug
Free Repellent is a safe flea removal spray for dogs,
cats, rabbits, ferrets, hamsters, and other small
mammal pets. It kills adult fleas and flea larvae.
Neem Bug Free Repellent should be used in
conjunction with Neem Bug Free Shampoo. These
two products work together synergistically. Available
in 8 oz spray bottles
Neem is a unique natural pesticide and insect repellent derived from the seed oil of the neem tree
(Azadirachta indica), native to India. For thousands of years, the Indian people have appreciated the
medicinal and insect-repellent properties of neem leaves and seeds. Neem extracts have been studied
extensively by the U. S. Dept. of Agriculture, and have been developed into natural commercial
pesticides that are safe for use on food crops. Neem is also a popular medicinal plant in tropical India,
Southeast Asia, and Africa.

14
Wellness Products
Nu-Pet Canine Chewable Wafers
Nu-Pet Canine Chewable Wafers is marketed as a
guilt-free canine pet treat universally loved for its
taste. Formulated as a whole food phytonutrient, it is
the third best selling product in the line. Nu-Pet
Canine Chewable wafers is a low-fat, powerful
antioxidant that stimulates the immune system.
Chewable Wafers provide a natural source of amino
acids, enzymes, vitamins, and minerals vital for your
dog's health. Rather than offer dogs a high calorie
biscuit, Vets, groomers, breeders, and dog handlers
prefer this product to reinforce good behavior. Other
ingredients: Wheat Sprouts, Barley, and Alfalfa.
Available in bottles of 30, 90, 270
Nu-Pet Feline Antioxidant (granular)
This product is a whole food phytonutrient marketed
specifically for the feline marketplace. Feline
Antioxidant bolsters the immune system and contains
measurable levels of SOD (superoxide dismutase),
which supports your cat’s ability to maintain energy,
alertness and vitality. Carbohydrates have been
added to support medical evidence that cats have a
higher need for supplementation of these nutrients.
Additionally, the product is formulated with Vitamins
A, C, and E, Wheat Sprouts and Alfalfa, which is
helpful in maintaining urinary tract health. The
product is flavored with a natural fish taste to appeal
a cat’s preferential tastes. Available in 6 oz (170
grams) granular, packaging includes pre-measured
spoon.
Nu-Pet Granular Greens and Nu-Pet Plus
Nu-pet Plus and Granular Greens are whole foods phytonutrients which bolsters the immune system, and will
nutritionally support and enhance your pet’s ability to achieve better health, strength and vitality. These
products have measurable levels of SOD (super oxide dismutase) which is medically beneficial to animals.
Each is formulated with Wheat Sprouts, Barley, Alfalfa, Spirulina, Kelp, Vitamin B12, and Selenium and is a
source of all the vitamins, minerals, amino acids, and enzymes that are missing from commercial processed
pet foods. The granular form of the Granular Greens product makes it easy to administer to animals. We
encourage owners to mix with pet’s regular food. These products also great for birds and reptiles. Granular
Greens: Available in bottles of 240 grams. Nu-Pet Plus: Available in bottles of 100 & 200 caplets

250
200
150
100
50
0
15
Analysis of the Natural Pet Products Market
Americans LOVE pets! This fact can been seeing virtually anywhere. Animals star in TV and
movies, and often become public favorites (Spuds McKenzie-Budweiser, Taco Bell, etc.).
Animals are mascots for teams and play important roles in sporting events. Parks are filled
every weekend with families, and their pet is rarely absent. Agility sports that require the
teamwork of animals and humans are becoming more and more popular. Animals are even used
as an adjunct therapy for children and adults that are ill. It is clear that pets have moved to center
stage. They are no longer, just part of the family; very often they are the center or cornerstone of
the family itself.
Demographics, changing social attitudes, and the strengthening bond between owner and pet
has accounted for the changes in pet owning behavior. People have become aware that, like
humans, animals can live longer and healthier lives. This has prompted Americans more than
ever to do everything possible to make their pet’s lives happier, healthier, and longer.
While the pet health industry has been growing to meet the increased demand in pet health
items, there has been growing concerns by the public about pharmaceutical drugs for pets.
People are become more aware of and are trying to avoid the many side effects of synthetic
drugs. Further, pharmaceuticals can be very costly to the consumer. Because of these issues,
more and more consumers are turning to natural pet products to answer their animal health
needs.
Pet Product Market Statistics
Pet products awareness and usage is growing dramatically. According to a survey conducted by
the American Pet Products Manufacturers Association (APPMA), over 60% (165 million) of the
population currently use natural supplements, vitamins, and other natural products for
themselves. The study further states that 22.5% of people are using at least one type of natural
pet care product for their pet(s). The study further noted that an additional 27.3% are currently
considering using natural pet care products because they use similar products for themselves
and their family. These numbers represent great opportunities for growth in the natural products
industry. 7
The financial potential of the natural pet products market makes it an exciting business in which
to participate. The natural pet health care segment is the fastest growing segment of the entire
healthcare industry. Natural pet health care industry sales for 1998 accounted for $135 million up
from $65.6 million in 1996 and $2 million in 1993. By the year 2000, industry sales are
anticipated to exceed $200 million. Under this growth model, natural pet product sales could
reach or exceed $500 million dollars by 2005!
Natural Pet Product Sales (in Millions of Dollars)
2
65
1993 1996 1998 2000
Many other statistics support the tremendous growth and opportunity within the natural pet
product market. These facts include:
7 1999-2000 APPMA National Pet Owners Survey
135
220

16
 According to the 1999-2000 APPMA survey, nearly 40 million (4 in 10) households own AT
LEAST one dog and over 32 million (3 in 10) households own AT LEAST one cat in the U.S.
alone8.
 According to the American Humane Society, Americans own collectively 110 million cats and
dogs9.
 Natural Foods Store (where pet products are more readily featured) overall sales grew 9%
vs. 2% growth in conventional supermarkets, demonstrating a shift in consumer buying
patterns.
 Sales of natural pet products including pet food accounted for 1.3 percent ($131,619,263) of
total sales in Natural Products stores alone. This demonstrates a real presence of natural pet
product sales and a need to continue developing space for this growing category10
 Natural pet supplements yield a higher gross profit than other natural pet grocery type items
while occupying a fraction of the shelf space.
 Trade magazines have recognized the significance of the natural pet product category and
are advising merchants to allocate space for natural pet products.11
Customer Demographic Profile
Demographically, natural pet products shoppers are female, well educated, financially stable
($30,000 to $50,000 annual salary) households with children. Three-quarters of all pet owners
earn incomes over $40,000, and show an awareness of the value of natural products for
themselves and members of their family. They are informed consumers and transfer that
information to other products they buy as well.
Market Segment Analysis
Natural Products Market
The natural products industry is the largest market segment for natural pet products. This
segment consists of: Natural Foods Superstores (ie Whole Foods, Wild Oats), Independent
natural food stores, Vitamin Chains (GNC), independent vitamin stores, and alternative
professional practices (ie, Nutritional Care, acupuncture, chiropractors, etc.)
Pet Products Market
The Pet Product market place consists of many different categories, including Independent Pet
Retailers, Pet Superstores, Groomers, Kennels, Breeders, Trainers, and Rescues.
Veterinary/Practitioner Market
The Veterinarian marketplace is an important and growing opportunity for Gulf Coast Nutritionals,
Inc. Veterinarians provide a credible resource for consumers to validate the effectiveness of
health products. In addition, it has been documented that pet owners defer to their vets for
medical advice and knowledge before making decisions for their pets. Thus, presence in the vet
marketplace builds credibility and professional reputation for natural pet product companies.
Mail-Order Catalog (Direct) Market
Mail order catalogs are targeted sales vehicles that provide product-purchasing opportunities
directly to consumer. Often these catalogs are segmented by category (ie Pet Products, Natural
Products, Vitamins, Sports/Fitness, etc.) These catalogs service both national and international
markets.
On-Line Retail Market
The online retail segment is the one of the fastest growing retail segments in the consumer
product industry. Because of this fact, many companies are creating either specific online sites or
8 1999-2000 APPMA National Pet Owners Survey.
9 Newsweek, Oct 11, 1999: p. 60.
10 Natural Foods Merchandiser, June 1999.
11 Health Food Business, August 1998: pp. 18-20.

17
are adding online web-sites to their pre-existing storefront business.
Product Demand
There is a demand in the natural pet marketplace for a wide variety of products. Animals most
often need eye and ear products, skin medication, medicated shampoos and flea products. The
largest segment of the natural supplement market, however, is for therapeutic products. These
products consist of wellness products such as antioxidant green foods and treats, and remedy
products for arthritic ailments, calming formulas, probiotics, digestive enzymes and essential fatty
acids for nutritional deficiencies caused by poor nutrition.
Competitive Analysis
Competition to the Ark Naturals, Products for Pets line includes the following (ranked in order):
Company Location Markets Product Line Time in Market Pricing
Dancing
California Natural
Multi-Line (Yeast-
New
Paws
(National)
Based): 10 Products.
(1 Year)
Competitive
Halo Florida Natural
(National)
Multi-Line:
5 Products
Old (5 Years) Lower Price
Hip Health California Natural & Pet
(National)
Joint Pain Relief:
1 Product.
Growing
(3 Years)
Competitive
KR for Pets California Pet Stores-
(Direct)
Multi-Line: 10 Prod. Growing
(5 Years)
Competitive
Dr. Goodpet New York Natural & Pet
(National)
Multi-Line: 6 Prod. Old
(12 Years)
Competitive
Barley Dog,
Barley Cat
California Natural & Pet
(National)
Singular (Greens):
2 Yr.
Growing
(2 Years)
Competitive
RX Vitamins
for Pets
New York Veterinarian
(Regional)
Multi-Line:
6 Products.
Growing
(4-5 Years)
Different
Markets
Dr. Dog Mass. Natural
(East-Coast)
Multi-Line
6 Products.
Growing
(4 Years)
Competitive
Dancing Paws: This company is a new player in the game. They are located in San Francisco
and market a multi-product line. This company is extremely well funded. They have great
marketing knowledge and were given distributor and retailer shelf space. The product line,
however, is not technically well formulated. They use shark cartilage for their joint products when
all scientific evidence points to using glucosamine. Additionally their product line is yeast based,
which has no proven health benefits and is highly allergenic to many animals. Their marketing
makes them a serious threat to building our brand loyalty early.
Halo, Purely for Pets: This company, located in Florida, is one of the oldest in the category. They
have a significantly less expensive product line that they sell directly to retailers. They do not use
distributors or independent sales rep. organizations. They offer the retailer little in the way of
national advertising or in-store marketing The ingredients in their products are lower quality then
Ark Naturals. We are beginning to replace them as the products of choice. Recently, they
diversified their line to include natural food products as well.
Dr. Goodpet: This company, located in California, has been around for 12 years. They market
their products in natural and pet stores. Dr. Goodpet is rarely advertised nationally. The
spokesperson for their line is well known in this category, primarily because of the length of time
the products have been in the marketplace. This is a good product line. Overall, our products
seem to complement, rather than compete with this product line. They are one of the original
players in this category.
RX for Vitamins: This company, founded by a veterinarian, produces a good product line. The
marketing and product distribution is almost exclusively through veterinarians.
KR for Pets: This company makes a product line similar to ours. They are, however, rarely seen
in the health food market. They sell almost exclusively in pet stores. Their marketing and sense
of the market dynamics are weak.
Hip Health: The company manufacturers one product for joint pain relief. Their company has

18
been moderately successful in gaining shelf space in both the pet and natural market. They use
their advertising dollars for full color ads in major trades and consumer magazines, but their lack
of a full line is hurting their push into retail markets.
In addition there are several lines that are significantly smaller than the ones listed above.

19
V - MARKETING STRATEGY
Gulf Coast Nutritionals, Inc. has developed a comprehensive sales and marketing plan focused to
develop a strong market presence in our target markets, build market awareness of our products
and services, create brand recognition for the Ark Naturals product line, and build and maintain
customer loyalty.
All current marketing dollars and efforts have been and will continue to be used 100% for building
markets for the Ark Naturals Product Line. Private Label activities have not required any dollars
for this purpose to date. In the future, funds will be allocated when deemed cost-effective to
developing an in-house media kit, attending trade show(s), and advertising in appropriate industry
media. Additionally, a marketing budget will be allocated for the Veterinary Line when released in
Year 4. These funds will be directed solely to distributors to move the Vet product line into
Veterinarian stores. No commercial marketing is needed for this product (products are sold to
consumers specifically in vet stores directly through the recommendation of the Veterinarian
themselves).
A summary of our strategic marketing plan for the Ark Naturals Product Line is listed below.
Sales Marketing
 Gulf Coast Nutritionals, Inc. will maintain
company sales representatives in the East
and West Regions of the U.S. to perform
and support sales activities for our
products.
 The company will utilize industry Broker
relationships to assist in gaining placement
the Ark Naturals product line into our target
market place(s).
 Gulf Coast Nutritionals, Inc. has
successfully obtained and will continue to
pursue distributor representation where
necessary in our target market place(s).
 The company will use internal sales staff to
support the sale efforts of our external
personnel and broker agreements, and to
continue to push our product line into our
target markets.
 Gulf Coast Nutritionals, Inc. will use a
strong Sales Management plan to support
our sales effort at all levels of the process.
 Gulf Coast Nutritionals, Inc. will focus its
marketing effort at every level of the Sales
Network process (Distributor, Broker,
Retail/Consumer).
 The company will utilize industry and
consumer trade shows to both secure retail
placement and promote brand awareness
of the Ark Naturals product line.
 Gulf Coast Nutritionals, Inc. will use a
strategic In-Store Marketing/Sales Strategy
(Point-of-Sale Materials, Promotional
Items/Programs/Samples and
Information/Brochures) to promote the Ark
Naturals product line at the point of
purchase.
 The company will participate in various
distributor-marketing programs to support
Ark Naturals product movement.
Advertising Internet
 Gulf Coast Nutritionals, Inc. maintains a
strategic relationship with an advertising
firm to perform all Marketing & Advertising
activities (Ad design, placement, media
selection, research, etc.) in a cost-effective
manner.
 The company will use various media at the
Distributor, Broker, and Retail levels to
create brand awareness and support.
 Gulf Coast Nutritionals, Inc. will use
various Public Relations activities (Press
Releases, Demos, etc.) to further promote
the Ark Naturals Product Line.
 The company plans to utilizes Radio and
TV in our National and Regional marketing
plan where cost effective to do so.
 The company currently maintains a web
presence (http://www.arknaturals.com) for
all Internet related marketing activities and
information distribution.
 The company plans to utilize the web site
for additional distributor/broker/retailer
activities as well as for private label
activities in the future.
 Gulf Coast Nutritionals, Inc. will utilize
efficient usage of search engines,
newsletters, strategic web-alliances,
banner advertising, on-line information
distribtion, and on-line retailing to further
market and sell the Ark Naturals product
line.

90
80
70
60
50
40
30
20
10
0
Market Penetration Chart (% of Retail Opportunities)
20
Target Market for the Ark Naturals Product Line
Gulf Coast Nutritionals, Inc. will target the Ark Naturals product line in the following segments:
Natural Products Market
Gulf Coast Nutritionals, Inc. will focus its efforts in the following Natural Products industry retail
segments: Natural Foods Superstores (ie Whole Foods, Wild Oats), Independent natural food
stores, Vitamin Chains (GNC), Independent vitamin stores, and Alternative professional practices
(ie, Nutritional Care, acupuncture, chiropractors, etc.)
Pet Products Market
The company will target the following sectors of the Pet Products marketplace: Independent Pet
Retailers, Groomers, Kennels, Breeders, and Trainers
Veterinary/Practitioner Market
The company will push the Ark Naturals line in both Traditional and Holistic practices.
Mail-Order Catalog (Direct) Market
The company will retail its products in the following Mail-Order Catalogs: Holistic Catalogs, Pet
Product Catalogs, Vitamin and Health Catalogs, and General Merchandise Catalogs
On-Line Retail Market
Gulf Coast Nutritionals, Inc. will heavily target the On-Line Retail Market. This segment includes
retailers from every component of the Natural/Pet Products industry (Natural Products, Pet
Products, Vets, etc.) who have either added retail web-sites as storefronts for business or who
operate purely On-Line Retail organizations. The company will pursue opportunities in both
areas.
Market Penetration Plan
This chart illustrates Gulf Coast Nutritionals, Inc.’s projected annual growth in its target markets
25
45
65
80
15
10
5
40
35
15
60
40
75
65
30
45
Natural Products
Pet Products
Veterinary
Mail-Order Catalogs
On-Line Retailers
Year 1
Gulf Coast Nutritionals, Inc. will continue to build its existing presence in the Natural Products
Market. We will focus our Sales & Marketing efforts in the West (West Coast, Northwest, and
Rocky Mountain Region), where the market is the strongest, reinforce our position in the
Southeast, and intensify our efforts for placement in the Northeast. Additionally, the business will
add two new products to the Ark Naturals line. The company will begin to build its presence in
the Pet Products Industry, focusing on obtain placement in key independent retail establishments.

21
In addition, the company will continue developing a presence in the Veterinary Market through
Telemarketing efforts. Finally, the business will focus its research efforts to identify and pursue
future Mail Order and Online opportunities.
Year 2
The company will continue to build its leadership position in the Natural Pet Products market.
Gulf Coast Nutritionals, Inc. will show a strong presence in the West and East, and will
demonstrate high growth in the critical Northeast region. In addition, the company will continue
its efforts in the Southeast and Central Regions. Further, two additional Ark Naturals products
will be added to the line. Gulf Coast Nutritionals, Inc. will focus Sales & Marketing efforts in Year
2 to build its presence in the Pet Products Industry, focusing on solidifying placement in key
independent retail establishments and targeting larger, high-volume Pet opportunities. The
business will continue its gradual penetration of the overall Veterinary market, and use the
strengthening retail position of the Ark Naturals product line to build penetration in the Mail Order
and Online Retail markets.
Year 3
By the end of Year 3, Gulf Coast Nutritionals, Inc. will assume the largest market share for
Natural Pet Products in the Natural Products Industry. Additionally, the company will possess
strong market positions in the Mail-Order and Online Retailing segments. Increased Sales &
Marketing efforts will be used to build and maintain our Natural Products leadership position and
to continue rapid penetration of the Pet Products Industry. During Year 3, the company will
continue to push the Ark Naturals to Veterinarians, and finalize plans for a separate professional
veterinary product line.
Year 4
Year 4 will show increasing market penetration as well as aggressive expansion of business
activities. The company will release its professional veterinary line and focus its development
efforts to create a new Mass Market Brand. Sales & Marketing efforts will be focused on
maintaining its leadership position and continuing growth in its current markets, and aggressively
growing the new Vet Line. Gulf Coast Nutritionals, Inc. expects to possess the market leadership
position for natural pet products in each of its market segments. By the end of Year 4, the
company will have determined its exit strategy for the future direction of the business.
Sales Strategy
Gulf Coast Nutritionals, Inc. markets its products and services in several, distinct market
segments. The selling process is different for each market. These processes and the company’s
strategy to effectively perform the processes are detailed in the following section.
Natural Products
Gulf Coast Nutritionals, Inc. will sell to Natural Products retailers both Direct (Manufacturer to
Retailer), and through the Natural Products Sales Distribution Network. This network is defined
and illustrated below.
Distributors
The ability to achieve national distribution in the natural product marketplace is dependent upon
finding distributors that are willing to warehouse your product line. Distributors allow retailers to
obtain multiple products at one time from one place, providing the following benefits:
 Volume purchasing discounts
 Easier bookkeeping and management of inventory and fulfillment
 Targeted in-store print media to support in-store product movement and promotions
 Free shipping.
Brokers
Brokers are independent sales organizations that have an exclusive territory and are paid
commission by the manufacturer to present product lines to retailers. The brokers support

Natural
Products
Distributors
22
manufacturer product lines by obtaining placement (shelf-space), check product movement and
inventories, re-displaying lines (re-setting products on store shelves), preparing retail promotions,
and organizing in-store product demos and training.
The Natural Products Sales Distribution Network
Broker
s
The Natural Products Sales Distribution Network
Retailers
Gulf Coast Nutritionals, Inc. has successfully created a sales network for the Ark Naturals product
line to penetrate the Natural Products marketplace. This network is diagramed below:
Region Territory Distributor Broker Major Retailer
Northeast ME, NH, VT,
MA, RI, CT,
NY, NJ, E.
PA, DE, MD
Cornucopia
Northeast Coop
Super Nutrition East
Threshold
SGN Sales &
Marketing
Vitamin Shoppe
Whole Foods
Wild Oats
Zigara’s
Southeast VA, NC, SC,
GA, FL, AL,
TN, KY, WV,
MS, LA
Cornucopia
Super Nutrition East
Threshold
U.S. Health
SGN Sales &
Marketing
Vitamin Shoppe
Whole Foods
Wild Oats
Chamberlin’s
Nutrition World
Talley’s
Earth Fare
Midwest/
Central
OH, W. PA,
IN, IL, MI,
WI, MN, ND,
SD, IA, NE,
KS, MO, OK,
AR
Rainbow
Frontier
Fed of Ohio River
Independence
Advanced ROI
Sales &
Marketing
Whole Foods
Alfalfa’s (Wild Oats)
Sunseed Market
Rocky
Mountain
CO, UT, WY Rainbow
Frontier
Super Nutrition West
Threshold
Advantage SW
Whole Foods
Wild Oats
Vitamin Cottage
High Health
Northwest WA, OR N.
CA, ID, MT
Moutain People’s
Nature’s Best
Threshold
Advantage NW
Advantage SW
Bay Point Gemini
(N. California)
Whole Foods
Wild Oats
PCC
Nature’s Fresh (OR)
Seattle Super
Supplements
Moscow Consumer
Co-op
Southwest S. CA, AZ,
NM, TX, NV
Mountain People’s
Nature’s Best
Tucson Cooperative
Threshold
Advantage SW
Best Brokers (S.
California)
Whole Foods
Wild Oats
Sun Harvest
Henry’s

23
Pet Products Industry
Gulf Coast Nutritionals, Inc. will sell to customers in the Pet Products Industry both Direct or
through the Pet Products Industry distribution network.
Pet distributors function differently than natural products distributors. Unlike natural products,
these firms provide sales representation (ie Brokerage) for product placement in retail markets.
In addition, pet representatives handle store merchandising, in-store promotions, manufacturers
promotions, and product training.
Pet Distributors
Currently, Gulf Coast Nutritionals, Inc. is affiliated with two distributor firms for our sales efforts.
These are Evergreen (Washington and Oregon) and Wilson Pet Supply. In addition, Gulf Coast
Nutritionals, Inc. in the process of signing contracts with 6 additional pet industry distributors.
These are:
 Crown Group (Midwest)
 Glyndon Valley Health Distributors (Northeast, Southeast)
 Wow Bow Distributors (Northeast)
 Amazing Pet Products (Southeast)
 Pet Care Wholesalers (Southwest)
 General Pet Supply (Midwest/Central)
Veterinarians
Gulf Coast Nutritionals, Inc. will also sell to Veterinarians either Direct or through a distribution
network. These distributors provide the same function as pet distributors, acting as a product
placement vehicle for the Ark Naturals product line to veterinary retail stores.
Veterinary Distributors
Currently, Gulf Coast Nutritionals, Inc. is affiliated with three veterinary distributors. These are:
 MWI Veterinary Supply (National)
 Parker Veterinary Supply – West Coast Catalog
 Henry Schein, Inc. (International Catalogue, Veterinary and Medical Supply)
Mail-Order Catalogs
The Ark Naturals product line is currently featured in the following catalogs:
Catalog Market Types of Products
Vitamin Shoppe Human & Pet Natural Health Products
VNF Nutrition Human & Pet Natural Health Products
Wilner Pharmacy Human & Pet Natural Health Products
Vitamin Trader Human & Pet Natural Health Products
Morrill’s New Directions Pet & Vet Natural Pet Products
Pet Sage Pet & Vet Natural Pet Products
All the Best Pet Care Pet & Vet Natural Pet Products
Pet Care Wholesaler Pet & Vet Natural Pet Products
Island Pharmacy Vet Natural Pet Products
Maple Street Pets Pet Traditional Pet Products
New England Serum Pet Traditional Pet Products
Online Retailers
Ark Naturals is pursuing preferred vendor alliances with online retailers to take advantage of
online advertising and cross-liking to build online traffic and sales for the product line. Presently,
the company is negotiating with Vitamin Shoppe.com and Animal Fair to complete such strategic

24
partnerships.
Currently, we have online distribution at the following locations.
Web-Site URL
Vitamin Shoppe www.vitaminshoppe.com
Animal Fair www.animalfair.com
Ben Salem Naturals www.bnatural.com
Gaines Nutrition Online www.gaines.com
Herbs, Minerals & Goods www.hmg-eo.com
Home Vet www.homevet.com
Interplanetary Pets www.interplanetarypets.com
Life’s Vigor www.lifesvigor.com
Morrill’s www.morrills.com
MotherNature.com www.mothernature.com
Natural Foods Co-op www.naturalfoodscoop.com
Nature’s Pet Marketplace www.petcarenaturally.com
Organics South www.organix.net
Pet Sage www.petsage.com
The Pet Parade, Ltd. www.thepetparade.com
Towne Critters www.townecritters.com
Vitamin Trader www.vitamintrader.com
Vitamins Plus www.vitaminsplus.com
Whiskers Online www.whiskers.com
In addition, we are continuing to target additional online opportunities in every marketplace.
Pricing Strategy
Ark Naturals products are positioned as a premium, professional line. The company has five
price points:
 We offer 40% off wholesale pricing for Pet Distributors.
 Distributor 1 Pricing is used for major Natural Product Distributors.
 Distributor 2 Pricing is for smaller distributors, catalog companies, and large retailers.
 Wholesale pricing will be reserved for general retailers, veterinarians, and independent pet
stores.
 Export Pricing is used for our International Customers.
Pricing details for each level are provided as an Appendix to this document.
Sales Management Strategy
Gulf Coast Nutritionals, Inc. will utilize both internal and external sales representatives to manage
the overall sales effort, gain placement in target markets, and promote volume movement.
Internal Sales Strategy
Gulf Coast Nutritionals, Inc. will employ in-house sales representatives to grow current accounts
as well as obtain new business for the company. In-house representatives close business at a
high percentage by focusing only our product line (unlike brokers). Additionally, these
representatives are able to close all direct business which results in a higher profit margin for the
company. By using inside sales representative, the business is able to manage a large number
of accounts with the costs associated with support external sales personnel. Specifically, inside
sales representative will perform the following functions:
 Telemarketing (Cold Calls, New Accounts)
 Account Management
 Providing information and relationship support for external sales managers

25
 Customer Service (Retail and Customer Support).
 Product Training
External Sales Strategy
Gulf Coast Nutritionals, Inc. will employ two external sales managers (East and West Region) to
manage the Sales effort at the Distributor, Broker, and Retailer levels of the Sales Distribution
network. These managers will ensure product line growth by:
 Developing sales forecasts for the Ark Naturals product line.
 Communicating product movement and trends within target market.
 Monitoring retail and distributor sales activities for the Ark Naturals line.
 Monitoring competitor products and activities.
 Obtaining product placements to increase market share.
 Supervising Broker sales efforts.
 Developing promotional opportunities
 Building and maintaining relationships with distributors, brokers, and retail customers.
 Providing product and category training (building awareness for the Pet Product category)
Organizational Management
Gulf Coast Nutritionals, Inc. will utilize a national sales manager to coordinate all sales efforts
after Year 2. Additionally, the company will obtain sales information to make intelligent sales
decision (Internal Sales Databases, Velocity Reports from Brokers/Distributors, Market
Information Competitive Analysis).

Marketing Budget Allocation (% of Total Budget)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
26
Marketing & Advertising Strategy
Gulf Coast Nutritionals, Inc. will use Marketing & Advertising activities to support our Sales
Network(s). The business will facilitate these activities by:
 Utilizing a Strategic Alliance with Who Did That? Creative, Inc. to perform all Marketing and
Advertising activities at Cost.
 Utilizing a diversified mix of Advertising vehicles to build brand awareness and product
movement as illustrated in the graph below.
Public Relations
Promotional Events
Distributor Advertising
In-Store Marketing Support
Media (Print, TV, Radio)
Trade show attendance (Retail and Consumer)
 Targeting its Marketing & Advertising activities at the Distributor, Broker, and
Retailer/Consumer levels as detailed in the following section(s).
Distributor Marketing Support
Gulf Coast Nutritionals, Inc. provides marketing and advertising support to build manufacturer
brand awareness and promote product movement between the manufacturer and the retail
customer. The company will utilize the following marketing mechanisms at the distributor level to
achieve this purpose:
Advertising Contracts
Gulf Coast Nutritionals is obligated to advertise in distributor publications. Distributor catalogues
are published once each month. Major distributors need to be supported 6 times a year. Smaller
distributors need to be supported 3 or 4 times yearly. In addition, dollars need to be allocated for
full color inserts a minimum of 2 times a year.
Retail Trade Shows
Gulf Coast Nutritionals, Inc. attends several retail trade shows each year. These shows are
attended by most industry retailers and brokers, and allow us to gain placement in our target
markets. Retailers, who do not buy direct, obtain manufacturer products from distributors,
promoting product movement.

27
The company currently attends the following trade shows:
Trade Show Market Location
Natural Products Expo East Natural Products Baltimore, MD
Natural Products Expo West Natural Products Anaheim, CA
NNFA – Northwest Natural Products Seattle, WA
NNFA Natural Products Las Vegas, NV
NNFA – SOHO Natural Products Orlando, FL
Northeast Cooperative Show Natural Products Brattleboro, VT
H.H. Backer – Spring Show Pet Atlantic City, NJ
H.H. Backer – Christmas Show Pet Chicago, IL
APPMA Pet Orlando, FL
WWPSA Pet Long Beach, CA
AHVMA Veterinarian Williamsburg, VA
Broker/Sales Representative Marketing Support
Gulf Coast Nutritionals, Inc. provides marketing support to facilitate Ark Naturals product line
presentation to retail stores for Brokers/external sales representatives with the following items:
 Product Brochures and Sell Sheets
 Yearly calendar detailing national sales campaign promotions
 Wholesale and suggested retail pricing information
 Product Samples and Point-of-Sale Materials (displays)
 Materials to conduct product training for retail employees
 Product line extensions
Retail/Consumer Marketing Support
Gulf Coast Nutritionals, Inc. will build product awareness of the Ark Naturals product line at the
Retail level through a mix of in-store and out-of-store marketing efforts.
In-Store Marketing Activities
In-store efforts include providing In-Store marketing materials including: Brochures, Samples,
Shelf-talkers, product coupons, end-cap displays, education for retail staff of our products, and
product demonstrations for customers.
External Marketing Activities
External efforts include advertising in a variety of consumer directed media (print, tv, radio and
internet), attendance at consumer natural health and trade shows, public relations, and external
store events. The company will utilize advertising at the local, regional, and national level where
economic beneficial to do so.
Trade Magazines (Retail Marketing)
Magazine Market
Whole Foods Natural Products
Natural Foods Merchandiser Natural Products
Pet Products News Pet Industry
Veterinary Product News Veterinarian
Pet Age Pet Industry
Nutrition Science News Natural Products
Vitamin Retailers Natural Products
Organic & Natural Natural Products
Journal of Holistic Veterinary Medicine Veterinarian

28
Consumer Magazines
Magazine Market
Dog Fancy Pet Market
Cat Fancy Pet Market
Delicious Magazine Natural Products
The Bark Pet Market
Pet Tribune Pet Market
Healthy & Natural Natural Products
New Age/Body Beautiful Natural Products
Animal Fair Pet Market
AKC (American Kennel Club) Gazette Pet Market
TV Media
Gulf Coast Nutritionals, Inc. will pursue commercial advertising and sponsorship in conjunction
with the following television opportunities:
 Discovery Network
 Wild Animal Kingdom
 Animal Planet
The company will also pursue Infomercial opportunities to market the Ark Naturals product line
after Year 2.
Radio Media
As part of the budget for 1998 and 1999, funds should be allocated for radio. Radio opportunities
include ‘Here’s to Your Health’, a syndicated radio talk show. Costs approximate for radio would
be $3000 to $4000 for 30 spots. Our radio media strategy is defined below:
 The company will pursue radio opportunities in key markets in the Northwest (CA) and
Northeast (NY, New England).
 The business will expand its radio presence to additional key markets (N. Ca, S. Ca,
Portland, Seattle, Denver, Rocky Mountain, Boston, NE, NY Area, New Jersey, Balt./DC,
Phila, Chicago, Atlanta, Charlotte, Raleigh/Durham, Memphis/Nashville, Florida).
 Radio opportunities will be utilized based on current/potential sales revenues in each
geographic segment.
Target Marketing
Gulf Coast Nutritionals, Inc. will target specific customer demographics by purchasing Mailing and
Email lists to conduct targeted marketing campaigns.
Consumer Trade Shows
Consumer shows allow Gulf Coast Nutritionals, Inc. to actively build awareness for the Ark
Naturals product line. These shows are organized and attended by specific consumer interest
groups. Examples of these shows include Pet Expositions, Natural Health Shows, Pet
Competitions, and Specific Breed Shows (Cats, Dogs, Other, Conformation, Agility Competitions,
Obedience Shows).
Gulf Coast Nutritionals, Inc. can represent Ark Naturals products at these shows in two ways. We
can have our own manufacturers booth or be represented by attending retail vendors who will
display our products at the shows. Because of this fact, we plan to show the Ark Naturals line at
several consumer shows in the future. In particular, we are committed to attending the Tufts
University Animal Expo in Boston, Mass., and are planning to attend the Long Beach Animal
Expo, Long Beach, CA. and the Orlando Animal Exposition in the near future.
Public Relations
 Press Releases - Gulf Coast Nutritionals, Inc. will use press releases throughout the year

29
 Marketing Consulting Services -The company has budget dollars to hire a public relations
firm in order to selectively build awareness for the Ark Naturals product line.
 Professional Spokesperson (Veterinarian) - Gulf Coast Nutritionals has a signed contract
with Dr. Shawn Messonnier, a nationally recognized holistic veterinarian, as a national
spokesperson and consultant for our products. Dr. Messionner will also represent the
company at Veterinary trade shows once the Vet Line is released in Year 4.
 Nutritional Expert/Spokesperson - The company employs Dr. Leigh Broadhurst, a
nationally recognized nutritional expert, for all research and development activities for Gulf
Coast Nutritionals, Inc., and to work as a spokesperson for the company. Dr. Broadhurst will
represent us at trade shows as well.
Events
Gulf Coast Nutritionals, Inc. has budgeted for 25 public relations events a year. These event
work to build brand awareness, create goodwill, sell product, and aid/help pet charities and
causes. The company is currently involved in the following events:
 Earth Day, Pet Awareness Day, Dog Washes
 Support a pet charity in a local area
 In-store tasting event.
 Dog Washes/Event Days
Internet Marketing
The company maintains an Internet Presence (http://www.arknaturals.com) to both convey
product and company information as well as provide customer support. The following information
is or will be available at this site:
Consumer Information
 Product Information
 Store-Locators
 Company News Releases (On-site, Newsletter, Banner Ads, Search Engine Placement)
 Promotional Advertising on Web
 Cross-Linking Industry/Informational sites to web
 Market Private Label services to clients
Business-to-Business Information
 E-Commerce (Inventories On-Line, Ordering On-Line, Balances On-Line) with companies
 On-Line Procurement and Fulfillment
 Provide Brokers with Slick Sheets and Product Information in downloadable format.
 Provide distributors and retailers with need product and pricing information
In addition, the company will use future Internet marketing opportunities to build brand
awareness.
Associations
Current Associations
National Nutritional Foods Association (NNFA), World Wide Pet Supply Association (WWPSA),
American Pet Products Manufacturers Association (APPMA), American Humane Society,
American Kennel Club (AKC).
VI - MANAGEMENT PLAN

30
Board of Directors
The Gulf Coast Nutritionals, Inc. Board of Directors currently consists of 9 members. Susan and
Jay Weiss serve as the Joint Chairmen. The 7 additional Board personnel bring a wealth of
experience from all facets of the business world.
Joint Chairmen
President Susan D. Weiss
COO, CFO Jay B. Weiss
Additional Members
Independent Consultant Dr. Marvin D. Jaffe
Financial Consultant Nancy Reynolds, C.P.A.
Business Consultant Daniel Regelski
Scientific Advisor C. Leigh Boardhurst, Ph. D.
Veterinary Representative Shawn Messionner, D.V.M.
Marketing Advisor Staci Gunar
Information/Internet Gregory Weiss
Future Additions to the Board of Directors
 Legal Representative (Future Member)
 Holistic/Animal Activist Representative (Future Member)
Scientific Advisory Board
o Marvin Jaffe
o Leigh Broadhurst – Product Formulations
o Shawn Messonnier, D.V.M. – Licensed Veterinarian
Staffing Plan
Annual company staffing changes are broken down in the 4-Year Financial Plan presented in
Appendix A of this document (Payroll), and in Appendix B in Organizational Chart format. Two
important staffing moves will take place during the four-year plan.
 The company will hire a President, National Sales Manager at the end of Year 2/Beginning
Year 3 to continue managing the growth of the current business as well as effectively pursue
new business opportunities for the company.
 The company will hire a Veterinary Line manager in Year 4 to manage all aspects of the Vet
line business (Company will consider a similar hiring for the Mass Market at that time as
well).
About the Co-Chairmen

31
Susan Weiss, President/Director of Sales & Marketing
Education:
 MA 1967 American History, Hunter College, NYC, NY
 BA 1964 History, Hunter College, NYC, NY
Professional Experience:
Susan Weiss has over 3 years of experience in the natural products industry. She has served in her
current role as President of Gulf Coast Nutritionals, Inc. for over 2 years. In this role, she has
successfully created an entire Natural Pet Product Line from the ground up. She has gained
national product distribution, national product sales representation, and has created a national
marketing campaign for the Ark Naturals line. Previously, she served as Vice President of Sales &
Marketing for Biogenetics, Inc., a manufacturer of natural products and supplements for animal and
human marketplace.
Mrs. Weiss brings over 20 years of management and marketing experience. Much of this expertise
has been gained during her involvement in entrepreneurial ventures. In three different instances,
she created a successful Retail Outlet Center, an In-House Retail Travel component and a Retail
Group Travel Department. In addition, through her education and work experience in the field of
History, she brings acute research skills and integrity to the natural pet category.
Memberships:
National Nutritional Foods Association; Natural Pet Products Association; Naples Chamber of
Commerce
Jay Weiss, Chief Operating Officer
Education:
 BS 1967 Industrial Engineering, Fashion Institute of Technology, NYC, NY
Jay Weiss is the Chief Operating Officer, Chief Financial Officer and Co-Founder of Gulf Coast
Nutritionals, Inc. As CFO, Mr. Weiss is responsible for all financial decisions regarding Gulf Coast
Nutritionals, Inc. In his role as COO, he oversees all operating activities for the company including:
purchasing, production, pricing, and formulations for all private label sales and Ark Naturals.
Prior to his involvement in the nutritional industry, Mr. Weiss was a clothing manufacturer and
contractor in a self-owned factory in SE Pennsylvania. During that time period, he was responsible
for the manufacturing of large clothing contracts for major manufacturers including: Liz Claiborne, JC
Penny and Macys. He was also the owner of two retail outlet stores. Additionally he manufactured
and distributed his own line under the “Just Allison” label.
Memberships:
National Nutritional Foods Association; Natural Pet Products Association; Naples Chamber of
Commerce

32
Key Operating Personnel
Catherine Leigh Broadhurst, Ph.D., Scientific Advisor
Education:
 Ph.D. - Planetary Geochemistry, University of Arizona, Tucson – 1989.
 B.S. - Geology, University of Maryland, College Park –1983 (Cum Laude).
 NASA Graduate Student Researchers Fellowship (1986-1989).
 University of Arizona Tuition Scholarship (1984-1986)
 Sulzer Fellowship in the Geosciences (1983-1984)
Dr. Broadhurst is responsible for all product formulations, product testing, and research and
development for Gulf Coast Nutritionals, Inc.
Dr. Broadhurst brings a wealth of nutritional and scientific experience to Gulf Coast Nutritionals, Inc.
She is the President of 22nd Century Nutrition, a company that creates products formulation for
private and corporate nutrition, science and naturopathic medicine uses for over 200 clients. In
addition, she is a frequent contributor to natural science journals, and has appeared on various talk
shows and nutritional speaking engagements.
She is also actively involved in nutritional scientific research. Currently, she is conducting research
in the area of Trace Element Nutrition. Additionally, she has experience with high precision atomic
absorption measurement of trace elements in blood, urine and tissues.
Dr. Broadhurst has formed a cooperative alliance with Dr. James Duke (formerly with the USDA) to
identify active phytochemicals utilized in many products within the Natural Products Industry through
the study the insulin potentiating effects of various common spices and plants. Dr. Duke is a leading
authority of herbs and medical plants in the US, with hundreds of books and publications.
Memberships:
International society for the study of Fats and Lipids; Institute for the Study of Optimal Nutrition; Herb
Research Foundation; Amazon Center for Environmental Education and Research; Phi Kappa Phi,
American Geophysical Union, American Preventive Medical Association, American Institute of
Nutrition.

33
Marvin E. Jaffee, M.D., Independent Industry Consultant
Education:
 Dr. Jaffe graduated from Temple University and received his medical degree and specialty
training in neurology at the Jefferson Medical College.
Marvin E. Jaffe, M.D. was the President of the R. W. Johnson Pharmaceutical Research Institute, an
independent Johnson & Johnson company, from its founding in 1988 until 1994. PRI was
established for the purpose of providing globally integrated research and development support to
several companies within the J&J pharmaceutical sector, including Ortho Pharmaceutical, McNeil
Pharmaceutical, Ortho Biotech and Cilag.
Dr. Jaffe began his industrial career at Merck in 1970 and spent 18 years with that company, rising to
the position of Senior Vice President, Medical Affairs. At Merck, he was responsible for the
World-Wide Medical Group, the Japanese development organization, and the technical evaluation of
external opportunities.
During his extensive experience in the pharmaceutical industry, Dr. Jaffe has been responsible for
the pre-clinical and clinical development of new Drugs and Biologicals in nearly every therapeutic
area. He has created effective multi-disciplinary working teams which have resulted in many new
drug approvals in the US and overseas. Several of these have set a standard for others by being first
in class.
His research has been published extensively in medical journals in the field of cerebrovascular
diseases. Additionally, he is an expert in cerebral metabolism and pharmacologyas well as the drug
development process.
Memberships:
Dr. Jaffe was Chairman of the R&D Section Steering Committee of the Pharmaceutical
Manufacturer's Association and a Commissioner of the Pharmaceutical Manufacturer's Association
commission on Drugs for Rare Diseases. He is a Fellow of the American Academy of Neurology,
and a member of the American Society of Clinical Pharmacology and Therapeutics and the Drug
Information Association. Dr. Jaffe is a Fellow of the Royal Society of Medicine in England and
President of the Royal Society of Medicine Foundation, Inc. in the United States. He is a Board
Member of the Society for Chronic Diseases, and also serves on the Advisory Committee to the
Harvard-MIT Division of Health Sciences and Technology. He is also a Board member of several
public and privately held biopharmaceutical companies. He is board certified in neurology.

34
Kendall C. Loomis – Western Regional Sales Manager
Education:
 BA 1981 History, University of Washington, Seattle
Kendall Loomis (Casey) joined Ark Naturals as Western Regional Sales Manager in January 1999.
Mr. Loomis’ responsibilities include all matters dealing with sales in the western portion of the U.S.
(Colorado, All States West, Alaska, Hawaii). Additionally, he will oversee our broker network as well
as increase distributor, catalogue, and retail business.
Mr. Loomis brings a broad range of natural products experience and skills to Gulf Coast/Ark
Naturals including:
1996-1998: Account Executive, NorthWest Specialties Brokerage
NW Specialties is one of the largest natural product brokers in the U.S. covering five states. While
at NW, Ark Naturals was one of the lines he managed, and was instrumental in creating a natural
pet category in that brokerage firm.
1994-1996: Purchasing Executive, Nutrasource/Mountain Peoples Warehouse
MPW, a division of United Natural Foods, the largest natural products distributor in the United
States, covers the western part of the U.S. Mr. Loomis was responsible for purchasing and
inventory vendor/broker relations in grocery, non-food supplements, and pet products.
1989-1994: Management Team, Puget Consumers’ Cooperative (PCC).
PCC is the largest natural foods cooperative in the U.S.
1974-1989: Mr. Loomis spent ten years working in the mass-market grocery industry working with
Albertsons and Holiday Foods and five years in retail management in the gift and specialty market.
During this time period, he founded and co-owned an import product sales company.
Memberships:
Affiliated with Gulf Coast Nutritionals, Inc. and associated organizations

35
Shawn Messonnier, D.V.M – Veterinary Representative
Fomer Editor-in-Chief, DVM Management Consultant Reports
Former Columnist, Veterinary Economics
Author, Be Your Own Boss, Starting Your Veterinary Practice, Mosby
Author, Marketing Your Veterinary Practice, Volumes I and II, Mosby
Creator and Editor-in-Chief, Exotic Pet Practice, Mosby
Author, Exotic Pets: A Veterinary Guide for Owners, Seaside Press
Author, Common reptile Diseases and Treatment, Blackwell Science/Lippincott
Author, Information by Prescription, Lifelearn
Contributor, Reptile and Amphibian Magazine
The Holistic Veterinarian, City + Country Pets
The Holistic Doctor, The Holistic Networker
Holistic Columnist, Veterinary Product News
Holistic Columnist, Dog Fancy
Holistic Columnist, Cat Fancy
Pet Care Naturally, Series, Prima
Former Host of Fox TV’s “4 Your Pets” series
Author, Your Puppy’s First Year, Seaside Press
Author, Your Kitten’s First Year, Seaside Press
Author, Handbook of Toxicology and Small Animal Poisoning, Mosby
Frequent Media contact and Nationally know Pet Care Advocate
Memberships:
Association of Avian Veterinarians, Association of Retile and Amphibian Veterinarians, Holistic
Veterinary Association, Advisory Board, Veterinary Forum
Gregory Weiss, Chief Information Officer/Internet Operations
Education:
 BS 1997 Decision Information Sciences/Computer Science, University of Maryland, College
Park
Mr. Weiss is currently acting as CIO/Director of Internet Operations. In this capacity, he is
responsible for all computer software, hardware issues for the company. Additionally, he has
developed and maintains the Sales Management Information System. Mr. Weiss is in charge of all
Internet Sales and Marketing activities including the company’s website
(http://www.arknaturals.com).
Mr. Weiss brings 4+ years of Information Technology experience to Gulf Coast Nutritionals, Inc. He
spent 3 years in GE’s Information Management Leadership Program, where he was involved in
several cross-functional assignments. In this role, he served as project manager and lead developer
for several system integration projects utilizing Internet/E-commerce technologies.
Resumes for Staci Gunar and Nancy Reynolds will be provided upon request (were not available
prior to this publishing.

36
VII - OPERATIONS PLAN
Facilities Plan
Present Facilities
Gulf Coast Nutritionals, Inc. conducts all operations in a 2,000 square foot leased facility in
Naples, Florida. This leasing arrangement is renewed on an annual basis. The location houses
all company office space as well as all warehouse and distribution operations.
At present, the company has budgeted $3,500 in Year 1, and $5,000 in Year 2 for office furniture
and computer equipment.
Future Facilities Changes and Improvements
The company expects to maintain its current facilities through Year 2 of this plan. In Year 3, Gulf
Coast Nutritionals, Inc. anticipates a need for 1,000 additional square feet of leased space to be
used for both office/personal and warehousing operations.
The company has budgeted $15,000 in Year 3, and $7,500 in Year 4 for facilities upgrades and
improvements. Money in Year 3 will be used for leasehold improvements of the offices and
warehouse space.
Operations Plan
Manufacturing
All products produced by Gulf Coast Nutritionals, Inc. are manufactured off-site in FDA and OTC
approved contract laboratories, and are made to the company’s formulation specifications.
Finished products are shipped to the home office, inventoried and inspected before being shipped
to the retail community.
Scientific Formulations
Leigh Broadhurst, a product formulator from 22nd Century Nutrition, and Shawn Messionner,
D.V.M., of Pet Care Naturally, develop formulations for all products produced by Gulf Coast
Nutritionals, Inc.
Distribution
All orders are shipped to our customers utilizing UPS, Priority Mail, and national trucking firms.
Inventory
The company maintains inventory of only Ark Naturals products. All Private Label contracts are
received, inspected, and shipped out immediately upon completion of the order.
Gulf Coast Nutritionals, Inc. utilizes the following inventory controls:
 Product inventory levels will be maintained at $40,000-$60,000 in our warehouse facility.
As sales increase, the company will maintain inventory for 60 days of projected
forecasted sales.
 Re-order points will be flagged when inventory reaches 50% in-house.
 Re-order lead times are 4-6 weeks to replenish our inventory.
Quality Control
The following quality control procedures are in place:
 Good Manufacturing Practices (GMP) are in place and followed as per the standards
established by the National Nutritional Foods Association (NNFA).
 All inventories are shipped on a FIFO (first-in, first out) basis.
 Certificates of Analysis will be produced for all raw materials used in the manufacturing
process.

37
 Input Analysis is required for all production lots.
 The company will maintain samples of all products, including lot samples for seven years.
 All orders are logged with lot #’s and expiration dates.
 All finished products are safety sealed.
 The company inspects all the facilities that produce our products.
Accounting Operations
Gulf Coast Nutritionals, Inc. retains the services of Reynolds and Associates, P.A., Naples, FL.
for all accounting services.

VIII - FINANCIAL PLAN
Financial Requirement
Gulf Coast Nutritionals, Inc. requires additional funding of $500,000 in the form of an equity/loan
investment. The summarized financial information (historical and future), as well as the detailed
information included in the exhibits, supports the need and usage of the funding.
Use of Proceeds
38
Business Area Investment Outlay
Payroll/Employment Additions $102,000
Sales Activities/Additions $86,500
Marketing & Advertising Activities $171,604
Repayment of Debt $75,000
Operational Improvements $3,500
Total Increased Business Expenditure $438,604
The business will increase its total operational expenses by $438,604 (funded through business
operations and investment funding) during Year 1. This money will be used for the following
activities:
 Payroll: The owners, Susan and Jay Weiss, will each draw a $45,000 salary for the year.
Additionally, the business will add a part-time bookkeeper at a cost of $12,000.
 Sales: The business will add an East Coast Sales Manager ($40,000) and an additional
Inside Sales Representative ($26,500). $20,000 has been allocated for increased sales-related
travel expenses.
 Marketing and Advertising: The Company will increase its Marketing & Advertising
expenditure by $171,604. This money will be utilized for a Marketing Assistant ($25,000),
increased Advertising Expense ($85,000), and Marketing Expense ($61,604).
 Repayment of Debt: Gulf Coast Nutritionals, Inc. will use $25,000 to repay a secured loan
from Bank of America. In addition, the business will pay off $50,000 in high-interest Credit
Card debt, used for previous business funding purposes.
 Operational Improvements: The Company will use $3,500 to upgrade computer equipment
(hardware, software, and network), and purchase office equipment.
Financial Analysis and Projections (4 Year Plan)
Year 1 - Projections
Gulf Coast Nutritionals, Inc. will grow its annual revenues to $1.1 million in its first year after
funding. We will aggressively increase our sales and marketing efforts, increasing our position in
current market segments, and expanding into new markets. The business will increase Payroll
Expenses by $216,700, which will be used for adding an East Coast Sales Manager, Inside Sales
Representative, and a Marketing Assistant to the current staff. Additionally, the company will
increase its annual Marketing and Advertising budget to $250,000 to continue building brand
recognition and increasing market penetration for the Ark Naturals product line. The influx of
financing will strengthen the company’s cash flow position and profitability. Cost of Goods Sold
is expected to be reduced 5%, improving Gross Margins and overall profitability of the business.
Although the business expects to lose $97,500 in Year 1, the increased expenses and added
resources will position the business for explosive growth in the following years.

39
Gulf Coast Nutritionals, Inc. will show a dramatic increase in sales in Year 2, with annual
revenues expected to reach $2.25 million and end of year profits totaling $275,240. This growth
in sales will allow the business to show overall profit of $177,740 from continuing operations.
The. The company will continue to build on its Year 1 sales and marketing strategy by increasing
the annual marketing budget to $386,000. These efforts will allow the business to increase its
presence in the Natural Products industry in the Western US, and to strengthen its position in
other Regions, particularly the Northeast. Additionally, Gulf Coast Nutritionals, Inc. will
aggressively penetrate the Pet Products and Veterinary Markets. The company expects to see a
continued growth in Mail Order and Online Retail business as well as its Private Label operations.
The improved cash position will allow the company to reduce Cost of Goods Sold an additional 3-
5%, improving overall profitability.
Gulf Coast Nutritionals, Inc. will again show a dramatic increase in sales in Year 3, with annual
revenues expected to reach $3.75 million (67% Growth) and end of year profits totaling $863,920.
This growth in sales will allow the business to show overall profit of $1,041,660 from continuing
operations. The company will continue increasing its Sales effort by adding a National Sales
Manager as well as an additional Inside Sales Representative. Annual Marketing and Advertising
budgets will be increased to $603,000 to strengthen the company’s leadership position in the
Natural Products industry and to build its presence in additional segments. The business will
continue targeting the Pet Product, Veterinary, Mail-Order, and Online Retail markets as well as
aggressively move into the Mass-Market segment, pushing its Ark Naturals product line as well
as private label offerings to high-volume retailers such as Fred Meyers, Krogers, and PetCo.
Gulf Coast Nutritionals will attain its goal of $6 million in annual revenues in Year 4. At the end of
the year, the business expects to achieve an operating profit of $1,527,600, and overall four-year
profits are expected at $2,569,260. The company will be the leading manufacturer of natural pet
supplements in the Natural Products market, and will hold major market share in its other target
segments.
The business will consider various strategies for the future. These may include: purchase of
complementary product lines, entering into international trade, entering other animal markets,
such as horses, birds, or fish, or selling the business to a larger natural product manufacturer for
a large profit over investment.

40
APPENDIX A – PROFORMA FINANCIAL STATEMENTS

41
APPENDIX B – ORGANIZATIONAL CHARTS
Present Organizational Structure
Susan Weiss
President, Director of Sales and
Marketing, Advertising, Public
Relations, Business Development
Jay Weiss
COO
Accouting, Warehouse
Private Label Business
Jim McClenithan
Warehouse Manager
Sue Segal
Insides Sales Representative
Customer Relationships
Retail Accounts
Casey Loomis
Director of Sales, West Region
Distributor, Broker, Retail
Accounts
Board of Directors
Chairmen
Susan Weiss, Jay Weiss
Members
Dr. Marvin Jaffe
Nancy Reynolds
Dan Regelski
C. Leigh Broadhurst
Shawn Messionner, D.V.M
Staci Gunar
External Personnel
C Leigh Broadhurst Scientific Advisor
Shawn Messonnier, D.V.M. Veterinary Representative
Nancy Reynolds CFO, Accounting
Staci Gunar Marketing/Advertising Operations
Gregory Weiss CIO/Internet Operations
Daniel Regelski Business Consultant

42
Year 1 - Organizational Structure
Susan Weiss
Director of Sales,
Marketing & Advertising,
Public Relations
Business Development
Operations
TBD
Bookeeper/Office Coord.
Casey Loomis
Distributor, Broker,
Retail Accounts
TBD
Director of Sales, East Region
Retail Accounts
Sue Segal
Inside Sales Representative
TBD
Marketing,
Advertising, Public
Relations
Unpaid Internship
Jay Weiss
COO
Accounting, Warehouse
Private-Label Business
Jim McClenithan
Warehouse Manager
TBD
TBD
Inside Sales Assistant
Unpaid Internship
Board of Directors
Chairmen
Members
TBD - President, Director of Sales
Dr. Marvin Jaffe
Nancy Reynolds
Dan Regelski
C. Leigh Broadhurst
Staci Gunar
TBD - Legal Representative
TBD - Holistic Rep, or Animal Activist
External Personnel
TBD
Marketing,
Advertising,
Public Relations

43
Year 2 - Organizational Structure
Susan Weiss
Director of Sales,
Marketing & Advertising,
Public Relations
Business Development
Operations
TBD- Bookeeper
Casey Loomis
Retail Accounts
TBD
Director of Sales, East Region
Retail Accounts
Sue Segal
TBD
Marketing, Advertising,
Public Relations
Unpaid Internship
Jay Weiss
COO
Accounting, Warehouse
Private-Label Business
Jim McClenithan
Warehouse Manager
TBD
TBD
Inside Sales Assistant
Unpaid Internship
Board of Directors
Chairmen
Members
TBD - President, Director of Sales
Dr. Marvin Jaffe
Nancy Reynolds
Dan Regelski
C. Leigh Broadhurst
Staci Gunar
TBD - Legal Representative
TBD - Holistic Rep, or Animal Activist
External Personnel
TBD
HQ Office Manager
Assistant to President
TBD
Marketing,
Advertising, Public
Relations
TBD
Part-Time Warehouse

Business Plan - Retail Manufacuring Organization

Business Plan - Retail Manufacuring Organization

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Business Plan - Retail Manufacuring Organization

Similar to Business Plan - Retail Manufacuring Organization (20)

More from Gregory Weiss

More from Gregory Weiss (20)

Recently uploaded

Recently uploaded (11)

Business Plan - Retail Manufacuring Organization