Green It - Business Plan

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Natalie Woodham
Mike Hung
Lucas Griffin
Sean McDermott
Jeremy Carter
GreenIT
San Jose, California
1000 North Front Street
San Jose, California 94086
Phone: 408-Gre-enIT
Fax: 408-Gre-enIT-F
GreenIT@GroceryWholesale.com

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I. Table of Contents
I.Table of Contents..............................................................................................................................................3
II.Executive Summary.........................................................................................................................................4
III.General Company Description.....................................................................................................................5
IV.Products and Services....................................................................................................................................6
V.Marketing Plan..................................................................................................................................................7
VI.Operational Plan...........................................................................................................................................27
VII.Management and Organization.................................................................................................................37
VIII.Financials....................................................................................................................................................39
IX.Capital Requirements...................................................................................................................................45
X.Sources Used...................................................................................................................................................47

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II. Executive Summary
GreenIT strives to provide quality food in environmentally friendly packaging and help decrease
landfill space needed in waste management, reduce the wholesale food industry’s carbon footprint
and educate consumers about recycling and environmentalism, while still being profitable.
Our company goal is to provide customers an opportunity to give their buyers a chance to help save
the planet and raise global awareness about the environment.
We believes that it is important to improve sustainability and is concerned with the future state of
the planet, as well as providing the upmost level of food quality and wholesale distribution service
for its customers.
We’ll market our products to higher end specialty food stores such Whole Foods and Trader Joes
Our industry is a growth industry that continues to gain market share and popularity as consumers
become more and more interested in environmentalism and healthy eating. Changes in the industry,
such as more competition, are long term. We plan on taking advantage of these changes by having a
niche recycled packaging that incorporates many of the interests of potential consumers by
providing a dual benefit for both our customers and the final buyer of the food item.
GreenIT’s factors of success include young, educated employees that appreciate and seek to save
the environment and know the importance of recycling and can spread this message. GreenIT
possesses a legal, distinctive package design that provides branding that stands out to the consumer;
our company plans to copy write the packaging process and design used to manufacture the
recycled packing of our food items. We plan to market the company as the original recycled food
packaging company.

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III. General Company Description
Mission Statement:
GreenIT strives to provide quality food in environmentally friendly packaging and help decrease
landfill space needed in waste management, reduce the wholesale food industry’s carbon footprint
and educate consumers about recycling and environmentalism, while still being profitable.
Company Goals and Objectives:
GreenIt’s company goal is to provide customers an opportunity to give their buyers a chance to help
save the planet and raise global awareness about the environment.
Business Philosophy, What is important to GreenIT:
GreenIT believes that it is important to improve sustainability and is concerned with the future state
of the planet, as well as providing the upmost level of food quality and wholesale distribution service
for its customers.
To whom we will market our products:
We’ll market our products to higher end specialty food stores such Whole Foods and Trader Joes.
Describe our industry. Is it a growth industry? What changes do we foresee in the industry, short term and
long term? How will our company be poised to take advantage of them?
Our industry is a growth industry that continues to gain market share and popularity as consumers
become more interested in environmentalism and healthy eating. The competitors in the industry
continually change over the long term. We plan on taking advantage of these changes by having a
niche – recycled packaging – that incorporates many of the interests of potential consumers and
provides a dual benefit to both our customers and the final buyer of the food item.
Describe our most important company strengths and core competencies. What factors will make the
company succeed? What do we think our major competitive strengths will be? What background experience,
skills, and strengths do we personally bring to this new venture?
GreenIT’s factors of success include young, educated employees that appreciate and seek to save
the environment and know the importance of recycling and can spread this message. GreenIT
possesses a legal, distinctive package design that provides branding that stands out to the consumer;
our company plans to copy write the packaging process and design used to manufacture the
recycled packing of our food items. GreenIT plans to market the company as the original recycled
food packaging company.
Legal form of ownership: Sole proprietor, Partnership, Corporation, Limited liability corporation (LLC)?
Why have we selected this form?
We are a limited liability company which means we will be taxed and run as a partnership, taxed
once, and employees are only responsible for their personal investment in GreenIT.

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IV. Products and Services
Depth of our products:
The technical specifications of our company include receiving the food, break bulking, and
repacking it in our branded, recycled packaging then distributing to our customers.
What factors will give us a competitive advantages or disadvantages?
Our competitive advantages include a strong label/logo that symbolizes our mission, recycled
packaging, packaging that is made from recycled materials and a high level of food quality.
Disadvantages against GreenIT include the task of getting people to make the commitment to
recycle our products, the higher pricing of specialty foods, educating the general public about
recycling and dealing with a smaller profit margin while calculating financials and sales goals. Also,
a large part of our product relies on the availability of recycled raw materials such as plastics,
aluminum and cardboard.
We plan on reducing the higher price of our products by providing coupons, advertising, in store
labeling, a plan that will simultaneously market our items and increase brand visibility. The fact that
we will distribute our food items to higher end stores means that the competition created by lower
end priced products will be reduced by the average price of products carried in these higher end
stores.

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V. Marketing Plan
Market research
GreenIT used secondary market research for industry information. The published information came
from sources such as trade journals, newspapers, magazines, census data, and industry and
demographic profiles. This type of information is available in public libraries, industry associations,
chambers of commerce, from vendors who sell in our industry, and from government agencies.
Economics
Facts about our industry’s market share:
• What is the total size of our market?
The wholesale food distribution industry in the US includes about 35,000 companies and has annual
sales over $600 billion. Some of the larger companies include SYSCO, US Foodservice, Supervalu
and Nash Finch. Most of the companies in the whole sale food industry are small, with about only
1,200 companies having annual sales over $50 million and only about 50 companies having over $500
million in sales annually.
• Government share in the industry:
In 2008, the federal government spent a total of $3,834,122,032 on Grocery and Related Product
Wholesalers, awarding 72,153 contracts to 1,241 companies, with an average value of $3,089,542 per
company.
• The primary activities of companies in the Grocery Wholesale Industry are commonly divided into 4
groups:
o General-line groceries wholesaling
o Dry groceries
o Perishable food products
o Non-food products
• How the industry sales are broken down:

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The industry sells a variety of different goods, frozen foods, dairy, poultry, fish, meat, fresh produce,
baked goods, processed and prepared foods and other related items. Only about 150 of the larger
companies deal with a broad line of food products, while the majority of the companies are
specialized in a few products.
Figure 1-1 provides a visual aid as to how the grocery wholesale industry is broken down, above left
is the 3 major area’s companies chose as a focus and bottom right are the categories that are often
focused on among specialty wholesale grocery distributors as of 2002.
Fig. 1-2

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The Census of Wholesale Trade has classified Merchant Grocery Wholesale Distributors into three general
distributions types:
• General-Line Distributors - Also referred to as Broad line/ Full-Line Distributors, these are companies handling a broad
line of groceries, along with health and beauty aids and household products, companies such as C&S Grocers, Supervalu,
Nash Finch and Sysco. Companies that have traditionally purchased a wide range of food products from manufacturers
and stocked these goods in one of their distribution centers. Most broad line distributors offer value-added services
designed to meet the needs of single-store restaurants and small chains. For instance, foodservice operators without the
staff to research new products and plan menus may rely on a distributor's sales representative for assistance which is
sometimes provided by companies such as Sysco and U.S. Foodservice that have the resources and funds to gather the
information.
• Specialty Distributors or called Product Specialist - Operations primarily engaged in the wholesale distribution of items
such as frozen foods, dairy products, meat and meat products, or fresh fruits and vegetables. Specialty wholesalers account
for nearly half of grocery wholesale sales. Companies that do not stock a wide range of products; instead they operate in
niche markets where it is necessary to have specialized knowledge about the type of product being handled or type of
operator being served. For example, there are product specialists for specialty cut meats, produce, ice cream, and coffee.
Market specialists serve a wide range of niche operators, such as convenience stores, hotels/motels, and club warehouses.
• Miscellaneous Distributors - or referred to as System distributors are companies primarily engaged in the wholesale
distribution of a narrow range of dry groceries such as canned foods, coffee, bread, or soft drinks. Foodservice wholesalers
serve a customer base that consists mostly of chain restaurants with centralized purchasing and established menus.
Individual operators within the chain may not require the value-added services provided by a broad line or specialty
distributor and may not inquire about information of new products or assistance in developing and preparing new menu
items.
• Classification of GreenIT Merchant Grocery Wholesale Distribution:
GreenIt is going to be a mix of Miscellaneous Distributors and Specialty Distributors that will
primarily focus on products that can be packaged in recycled material and can be deposed of
through recycling. These products will promote saving the earth, recycling and sustainability. The
main products will be on dry groceries, such as canned goods, boxed packaging goods, liquids
either in canned, plastic or paper packaging. Products such as bottled water, bottled nutritional
drinks, canned soups, canned vegetables and boxed snacks will be our staple items.

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• Market Breakdown of Grocery Store/Customers:
According to a report released from the U.S. Food Marketing System. The top ten grocery stores dominated almost 50 percent of
the overall market and represented $728.7 billion in sales. According to the Report, the leading grocery stores in 2002 were Wal-
Mart, Kroger, Costco Wholesale, Albertsons, Safeway, Sam's Clubs, Ahold Retail, Super-Value, Publix, and Fleming, leaving the
remaining market share to other smaller retailers. The report found that the largest grocery markets were in California, Texas,
Florida, New York, Pennsylvania, Ohio, Illinois, North Carolina, Michigan, and Georgia.

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Grocery wholesalers and distributors claim more that 50 percent of the complete grocery and related
product sales. Manufacturers’ sales offices and branches account for 25 percent, while brokers and
agents account for 19 percent of sales, as shown in figure 1-3.
Fig. 1-3

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• GreenIT’s market share and sales:
The US specialty food store industry includes about 20,000 stores with combined annual revenue of
$20 billion. Major players include Whole Foods Market and Trader Joe's. The industry is fragmented
with the 50 largest companies account for less than 50 percent of sales.
We will focus on small market share due to the fact that 50 of the largest distributors hold about 50
percent of the total market. We will push for a market share of LESS than 1 % as a start-up company
for the first five year and a growth rate of 3% for those years. On year five we will reevaluate our
goals in relationship to the market share growth of the past and will also factor in the conditions of
the current economy
• Shift of history of current demand in target market:
Beginning in the late 1980's, a massive wave of consolidation started in the U.S. food brokerage industry, and
didn't end until about 7 years ago. Industry demand changes due to shifting consumer food tastes, but is
limited by the 1 percent annual US population growth. The profitability of individual companies depends on
popular products, contracts with large customers, and efficient operations. Smaller companies can compete
effectively by specializing in specific products or market niches. Specialty and natural foods niche categories
usually ran by independent brokers have historically tended to do better than the large, national mega-brokers
or wholesales. Small companies can also be effective in the import of foreign specialties. Large distributors
have a cost advantage by buying in quantity, but need to operate a more complicated distribution network.
• History of growth trends, trends in consumer preferences:
Growth of the food wholesale industry has continued to climb, mainly in the retail sector.
Grocery wholesale sales to retail food operations, such as supermarkets and convenience stores, totaled $282
billion in 2002, the most recent year of data, or 45 percent of the total grocery wholesale sales volume. This is
up from 40 percent in 1997.
Restaurants and other foodservice companies are also major customers of wholesalers. Sales to these firms
accounted for $118 billion in 2002, or 19 percent of all sales of groceries and related products by all food
wholesalers, down from 22 percent in 1997. While retail grocery outlets and foodservice companies compete for
the consumers’ food dollar, wholesalers that distribute to the foodservice industry and to food retail outlets do
not compete directly with each other for these customers.

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Figure 1-1 breaks down the five top categories by percentage of who is buying from food wholesalers
or type of outlet.
Fig. 1-1
o Examples of the end buyers from the outlet are as follows:
o Exports - to foreign countries
o Foodservice - to restaurants and fast food establishments
o Retailers - to grocery stores, supermarkets, superstores and convenient stores
o Government - to schools, military and administrative facilities
o Other Wholesalers - to other wholesalers which than sold to any of the above types of
outlets
o Others - private venues, parties or individual companies

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• Growth potential and opportunity for a business of our size:
The grocery industry trend is one that commonly buys out other smaller distributors as a way
to expand and grow into new territories and regions.
• Barriers to entry faced when entering the market, some of the typical barriers are as follows:
o TAXATION - At 8.25%, California has the highest state sales tax, which can total up to 10.75% with
local sales tax included, such as the Bay Area Rapid Transit district tax. The capital, Sacramento has a
combined 8.75% sales tax rate, and the largest city of Los Angeles has a combined 9.75% sales tax
rate. In grocery stores, unprepared food items are not taxed but vitamins and all other items are.
Rather than taxing the sale of lump quantities, for instance each time it is sold. From manufacturer to
wholesaler to consumer, it is only taxed on the consumer final product end. California Board of
Equalization (BOE) does require a sellers and resellers to have permits to sell tangible goods, which
also regulates county, state and local district sales tax, failure resulting in misdemeanors. There are
also city and county business tax requirements, general businesses in San Jose requires to pay $150 for
up to eight employees and $18 for each additional employee. Oakland requires $1.20 per $1000 in
gross receipt retail sales.
Theses cost cannot be avoided in some regions, because it is vital to be located near
the majority of grocery stores, which are located in the denser populations. It is an
important part of keeping other costs to a minimum such as transportation. In other
regions we may avoid these costs by analyzing the cost v. benefit gained of have the
centers located outside city limits and making decision based on the results. It is a
cost of business that is sometimes required to be successful in these regions.
o REGULATION - The Department of Health Services (DHS) has been inspecting California
processed food firms since 1907 to ensure the safety of the food supply in California. In 1986,
legislation was passed requiring any person engaged in the manufacturing, packing, labeling, or
holding (warehousing) of processed food in the State of California to register annually with the
Department of Health Services (DHS), Food and Drug Branch (FDB). The registration acts as a
firm’s basic health permit, to legally manufacture or warehouse food at the wholesale level. Currently,
the registration fee is set based on the size of the facility, number of employees, and the activities
conducted at the facility (manufacturing or warehousing). The registration fees pay for statutorily
mandated inspections of food facilities performed by FDB investigators. Investigators examine a
firm’s complete production and quality assurance system including such areas as, qualifications of
responsible personnel, use of food additives, color additives, preservatives, and other chemicals;
control of critical production parameters, and methods of product storage, labeling, and advertising.
Failure to register could lead to arrest, civil penalties, and / or the embargo of all food products at the
unregistered establishment.

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o COST STRUCTURE – The major demand on capital structure is the building and
warehousing for the goods and the trucks used for transportation if they are not
subcontracted out from a third party. The cost of equipment and products
(materials) are other major costs of establishing a new grocery wholesale company.
o CAPITAL AND LABOR INTENSITY – The labor intensity in the grocery industry is
usually below average with the majority of the work force focusing on the logistic
and management of processes. Some costs related to transportation such as truck
drivers will also require a higher level of capital.
o TECHNOLOGY AND SYSTEMS – The fast changing advancements of today
technology are constant challenges for the grocery wholesale industry. It is difficult
to get companies to transition from current technologies to new and improved ones,
due to the cost and time that is required to implement any changes.
o INDUSTRY VOLATILITY – The first obstacle to overcome will be entry to the
customers (retail grocery stores), due to a lack of industry delivery history. The
customers’ lack of experience of our processes and efficiency procedures will be
major obstacles that will be focused on immensely in the beginning and into the
future of the company.
o GLOBALIZATION - Canada exported a value of $2.5 million in food into the United States.
Thailand was second, with $1.8 million, followed by Mexico with $659,321, China with
$640,776, and Chile with $491,247. The increasing number of grocery distributors
from foreign suppliers’ penetrating the United States has made the opportunities for
market share for domestic wholesale suppliers smaller.
o BRAND RECOGNITION – It is not uncommon for larger distributors to contract with
manufacturers in order to put their own name on product labels. This is done so that
a level of service becomes associated with brand that is controlled by the wholesale
company rather than the manufacturer. GreenIT may also employ this technique to
expand its market coverage so resource can be diverted to other efforts.

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• Change in the Industry, shift to retail owned wholesale distribution center:
The number of grocery retail stores own their distribution centers is increasing, which makes it difficult for private distribution companies to survive
or enter the market with success.
In the late 1990s the industry faced diminished sales growth. In 1997, the top 50 wholesale grocery giants reported sales of $81.1 billion, compared to
$81 billion the previous year. One reason for the stagnation was competition from vertically integrated grocery retailers such as The Kroger Co. and
Safeway Inc., which was caused by their size. They were able to buy goods directly from manufacturers as well as to make many of their own private
label products, rather than relying on other distributors for goods.
The retail food store wholesaling sector continues to undergo important structural changes. In 2003, the Nation’s largest grocery wholesaler, Fleming,
divested the bulk of its operations shortly after its largest customer, Kmart, filed for bankruptcy protection and ended its supply contract with Fleming.
Following the divestitures, the share of general-line grocery merchant wholesale sales accounted for by the top four wholesalers fell from 34 percent in
2001 to 27 percent in 2004, a result of the consolidation of the wholesale industry. As consolidation in food retailing increases, manufacturers and
large retailers that are offering a broad assortment of items have found it more beneficial to negotiate directly with each other, reducing the power and
influence of traditional wholesalers. Self-distribution has become one of the preferred methods of vertical coordination for large grocery chain stores,
mainly those with 11 or more stores. In 2001, 82 percent of chain stores had their own distribution centers.
Given uncertainty about the ability of independent retailers to compete with the larger chains, some of the largest grocery wholesalers are placing
greater emphasis on owning retail operations. This is illustrated by Supervalu’s purchase of Albertsons in 2006, or the second largest grocery
wholesaler purchasing the third largest grocery retailer.
Change in technology:
Food wholesalers lead both in the economic and technological advancements of the wholesale
industry by their continued focus on innovation and cost reduction to increase the small margins
that they make on their products.
The wholesale distribution industry leads the way in productivity technologies that automate
activities like order processing, billing, inventory control, delivery and route scheduling, as well as
automated warehouse management. Adopting these technological advances has allowed the
productivity within the industry to outpace the entire non-farm business sector as measured by
output per hour.
• RFID technology:
Radio frequency identification (RFID) technology is becoming used more frequently by larger
wholesale distributors with warehouses. RFID tags coupled with a satellite and receiver system
allow wholesalers to keep track of the goods they have in stock and through transit to ensure
delivery.

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Change in government regulations:
President Obama has supported the Employee Free Choice Act. This act will make it easier for unions to
form. If it passes, the cost of working with newly formed unions could place added financial pressure on
already struggling distributors. Whether this legislation passes in 2009 or not, it is clear that the current
administration is pushing for unionization and labor laws. It would be wise for those wholesale distribution
companies not currently unionized to strategize how they might respond to potential labor disputes and
examine their current labor policies to determine if unionization is likely.
• GreenIT will also be Certified in CFS (California Food Safety Certified/Certified Professional Food Manager)
to show we have an understanding of how to care for and handle foods properly. The costs are less than $150 per test.
Covers:
• Food hazards
• Food borne illnesses
• Employee health
• Potentially hazardous foods
• Receiving standards
• Cooling/reheating
• Fresh/frozen food
• Meats/poultry/seafood
• Milk and dairy/fruits and vegetables
• Processing food
• Safe cooking and holding temperatures
• Bacteria growth
• Cleaning and sanitizing
• Pest control
• Facilities
• Water supply

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• Hazard Analysis
Change in the economy:
Despite the current economic recession in the United States, wholesale distribution has continued to
be the life blood of manufactures with industry growth that has outpaced growth in GDP. However,
the industry is not immune from the current economic recession. Most manufacturers continue to
rely on wholesale distribution to deliver goods to their customers because they can offer greater
service to their customers due to their local presence, quick response and flexibility.
Distributors generally experience relatively low margins with average operating margins across
product types ranging from 2%-5%. During periods of economic recession it is particularly
important that distributors pay close attention to key performance indicators on a regular basis.
What after-sale services we will give? Some examples are delivery, warranty, support, follow-up, and refund
policy.
GreenIT sale/service is going to use online linked system that track the product from point of
manufacturing, to shipping, to delivery in the stores. The products and materials that are return will
use the same systems. Refunds for damaged products claims must be within a week of receiving at
loading dock of Whole Foods and Trader Joe’s or other grocery stores. Some of the industry
standard systems are created by Creative Systems Corporation, Ramp Systems and EBE
Technologies. Their systems support staff, improves efficiency interfaces, dispatch, and
automation, and are designed specifically to streamline businesses. The systems enable businesses
to integrate their customers and partners together for quicker, easier and a more cost effectively
interaction.
Customers
Targeted customers, their characteristics, and their geographic locations, otherwise known as their
demographics.
The end consumer of GreenIT products is a cost-conscious, health-conscious label-reader who is not tied to national brand
names. Pat St. John, Trader Joe’s vice president of marketing says that Trader Joe's shoppers fall into several sometimes
overlapping types: “There's the frugal foodie looking for the next new thing; the iconoclast who resents "customer loyalty
cards" and dislikes big-box retailers; the health-conscious, ecologically sensitive parent seeking organic and pesticide-free
foods, environmentally friendly cleaning supplies and wholesome snacks; child-free working couples and singles who favor

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the convenience foods packaged just right for one or two; and a whole lot of people who like to indulge in luxuries like
flowers, candy, cheese, wine and Greek yogurt”. For Whole Foods, the company describes its customers as 28 percent of
shoppers defined as those who work to change eating habits promoted by health concerns and interest in self-care. These
individuals that actively seek out health and nutritional information and are younger to middle aged, with medium to high
household incomes.
This graph represents the end consumer of the GreenIT food products.

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Most important customer groups and their demographic profile:
• Age
Younger to middle – aged, average age of consumer is 36 years old
• Gender
Both
• Location
Coastal Areas
• Income level
Median Household income: $63,554
• Social class and occupation
Middle Class to Upper Middle Class
• Education
Based on a Nielsen study, 55% of the customers of Whole Foods possess a bachelors degree or higher
For business customers, the demographic factors are:
• Industry (or portion of an industry)
Specialty foods portion of the grocery industry
• Location
Mostly coastal areas
• Quality, technology, and price preferences
Higher end specialty health and organic foods

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Competition (2)
 San Jose Distribution
Can fruit, fruit juices
2055 S 7th St Ste A
San Jose, CA 95112
408-292-9100
History
• 71 plus years warehousing and transportation experience
• 3 pantry warehousing logistics and transportation since 1977
• Established in 1956 when agriculture was at its prime
• Houses food computers and consumer goods and paper products
Make Up
• 200,000 square feet
• Green Friendly Energy Efficient motion detector activated fluorescent lighting
• Single story with cement flooring
• 24 hour monitoring
• Food Grade sanitation, FDA Registered
• State health Certified
Pick /Pack Fulfillment
• Front line for over 20 years
• History of customer weights from 100 to 44000 SKU’s
-Repackage
-Rebuild
-UCC labeling
-Same day shipping
• Instant order status receipt status inventory shipment and inventory replenishment tracking
• Our supply costs are steady
 C&S Wholesale Grocers Inc.
Stats
• One of the largest food whole sellers and the US
• 53,000 grocery products
• 7 distribution centers on twelve states
History
• Founded in 1918 Mass.
-Formed when growing urban population demanded more varied grocery products
- Independent companies came together to for cooperatives to increase buying power
- Provided companies to provide larger orders and to benefit the economy of scales
• Following World War II started supplying to military bases
-Currently supplies 19 bases
• 1958 shifted from independent retailers to chain stores

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• 1988 developed self-managed teams
-Improvement in productivity and lower costs.
We will compete for certain items that are listed below:
We will compete with the competition by really pushing how our packaging is environment friendly. Our brand will be our
selling point. The product is the same but the backing of our name will be what makes us stand out. Our name represents
honesty, integrity and we a guarantee that our packing is Go Green 100 percent.

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Factor GreenIT Strength Weakness Trader Joes Whole Foods
Products Soup/Canned Goods
Cereal
Drinks

Soups/Canned Goods
Cereals
Beverages
Soups/Canned Goods
Cereals
Beverages
Price Soup
Cereal
Canned Goods
Drinks

N/A N/A
Quality Excellent

Excellent Excellent
Selection Selective

Selective Selective
Service Good

Good Good
Reliability 100%

100% 100%
Stability Very

Very Very
Expertise Sustainability

Advance Advance
Company Reputation Good

Good Good
Location California

California California
Appearance Environmentally Friendly

They back the Product Health Conscious
Sales Method Personal Sales

Personal Sales Personal Sales
Credit Policies Standard

Standard Standard
Advertising Coupons, Labeling, Web
Page, Commercials

Frequent Flyer
E-commerce
Web Page
Image 3 markets in CA

National National

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Competitive – advantage/disadvantage:
Our competitive advantage is the backing of our name and brand. The only disadvantage of our
products is the specific and limited categories of products, because we will be specializing in only a
few areas of the food industry. However this product specialization will also be an advantage and
work in our favor. We will be able to focus and perfecting the quality and delivery of our products.
Being a new company that is not well known in the industry and not an established company is one
disadvantage that must be overcome. Companies such as Trader Joes offer a wider varied of foods
and drinks, which will be one of our biggest competitors. They are a company similar to ours
focusing sale on food items, while Whole Foods will give us competition in the drink market.
Niche
GreenIT provides a sustainable, recyclable product that provides a dual benefit to both the supplier
and the end consumer.
Strategy
Marketing Strategy – Niche:
Our niche is very focused on the consumer. As a result, our marketing efforts will be directed at the
consumer. In order to experience success, our company and our products have to gain a positive
reputation. We realize that our “niche” will not appeal to all consumers. Since we will focus heavily
on those consumers that have a higher income and have shown a history of being “environmentally
conscious,” we will use advertising channels that go directly to them. As a startup company we
cannot afford advertise to the wrong markets. A major tool we will use in identifying our target
market is demographics consulting. This will help us determine what will be the most effect
marketing strategies, and which areas will produce the most sales.

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Promotional Budget
Estimated advertising and marketing budget combined just over a $100,000 yearly during the start up phase
of the company. Throughout the years of growth GreenIT plans to grow the advertising and marketing
budget by 10% of sales each year based on its next year’s sales.
Pricing
The Environmental Defense Fund is an organization that partners with companies all over the world
to find practical environmental solutions. The EDF has agreed to start a joint project with GreenIt to
improve California’s recycling and landfill systems. GreenIt packaging will donate 5% of the sales
price for every item it sells toward this project. Even better yet, the EDF has agreed to match
whatever funds we raise. If we meet our sales goals of 1 million dollars, GreenIt and the EDF will
have donated 7,575 dollars each to the project. This, along with our increased costs from producing
easily recyclable packaging, will put GreenIt’s products in the higher price range compared to our
competitors.
Environmental Defense Fund
We do not expect our customers to make their decisions based on price. Our product offers an
opportunity for our customers to get involved with environmental conservation while doing their
weekly shopping. Our customers will have a sense of pride when purchasing our products because
they know they are doing something to benefit the environment.
Proposed Location:
Location criteria affects on our customers:
We have three distribution centers in Los Angeles, Sacramento, and San Francisco (Bay Area). Our
distribution center is located next to the recycling centers, so we can keep our costs low and the
savings will trickle down to our customers. Also our customers do not need to come to our place for
business, since we deliver what they need. The locations are consistent with our image and advocate
recycling. The competition is located throughout the country; our specific location caters to our
local concentrations at our current level of distribution. (see layout for details of design)
Is our location important to our customers?
Our locations are not so important to our customer, because we distribute and deliver the product to
our customers.

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Distribution Channel:
How GreenIT will sell - products and services?
We are wholesale distributors and deliver the food with recycled package to our customers, and the
customer will sell it in their retail store, like Whole Foods and Trader Joe’s. As owners, we will visit
potential customers who fit our target market acting as a direct sales force.
Sales Forecast
GreenIT will strive for at least $1 million in sale for the first five years, than will evaluate the market
in the fifth year to be current with the market standards and the changes in the company due to
growth. We strive to increase sales by 3% on previous year’s sales.
We will use a quantitative method of forecasting called exponential smoothing in which we’ll use a
weighted average based on a previous forecast plus a percentage of the forecast error.
GreenIT sales forecast: Ft = Ft-1 + error (actual sales – previous forecast)
Footnote – Error is minimal, not applied in formula
Error - .0000000001 (added back into forecast)
Period 1 – 1 million sales
Year 1 Forecast – 1 mil
Actual – 1 mil
Year 2 Forecast – 1 mil (.03) 1 mil + 30,000 increase in sales
Year 3 Forecast – 1,030,000(.03) = $1,060,900 in sales
Year 4 Forecast – 1,060,900(.03) = 1,092,727
Year 5 Forecast – 1,092,727(.03) =1,125,508

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VI. Operational Plan
Production
• Production techniques and costs - located closely to the recycling centers, uniform
materials/product to maintain low costs.
• Quality control - RFID, lean operation, vary Reduction (little variation)
• Customer service - location as an advantage, focusing on Relationship building (higher
quality of service)
• Inventory control - RFID, SKU’s, Worldport for tracking of goods while in processing and
delivery
• Product development - Will stick to core group of products to help focus on customers’ needs
(on time delivery) rather than spending resources on R & D efforts.
Location
• Close to recycling center
• Easy access for delivery trucks
• Good view from the road
GreenIT will have facilities located closely to recycling centers, to maintain minimum transportation
cost of shipping of raw materials. The facilities will also be located in the areas of California where
the density of population is the highest, San Francisco, Los Angles and Sacramento, so we have
more store (customers) to each with the lowest cost of transportation of the finished goods.
Physical requirements:
• Type of building – Steel/brick warehouse with steel roof to reduce cost of maintenance and
replacement (such as shingles) (see layout proposal for details of design)
• Zoning - Commercial for the warehouse location
• Power and other utilities - Standard utilities
• Detailed description of size of facility - multiple-occupancy building

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Estimate size of warehouse space is around 25,000 square feet, multiple-occupancy building
Warehousing space. Wholesalers in multiple-occupancy buildings need parking space for
both trucks and cars. Adequate parking for trucks for shipping and receiving operations
would be on the side of the building while directly in front of the facilities will be for
management, sale and visitors.
• Fork lifts
GreenIT will use Sit-Down Counterbalanced Electric Forklifts and a Single-Deep Racking System to
increased warehousing usage and accessibility for inventory. GreenIT will use these types of
forklifts because of their speed, safety, lift capacity (4000lbs to 6000lbs) and height reach. The
forklift will be electrically powered to avoid the required ventilation systems of Butane and gasoline
forklifts.
Access:
Is it important that our location be convenient to transportation or to suppliers?
Yes, so we will not lose potential business due to the convenience factor. The locations will be close
to the freeway or major highway.

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Construction:
Minimal costs for remodeling, we will rent or lease building of warehousing.
Business hours: 8:00am – 5:00pm
Warehouse hours: 5:00am – 9:00 pm – earlier and later hours to avoid congested traffic and help
reduce the hours to delivery and the related costs associated with transportation of goods.
Facility Layout:
The facilities will have this basic layout, with office area, quality control area, R & D area, inventory
area, order picking area, loading and receiving areas, and a parking a in back with minimal visitor
parking in front. The layout below provides as an example of all given areas, but is not accurate in

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actual size of each area.
Legal Environment
• Licensing and Permits - Certified in California Food and Safety for added assurance to
consumers (retailers). Processed food registration, California Health and Safety Code
requires businesses that manufacture, repack, label, or warehouse processed food products
to register with the California Department of Public Health Food and Federal Drug Bureau.
This registration serves as the basic heath permit for wholesale manufacture or warehousing
of processed foods in California.

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• Health, workplace, or environmental regulations - Water Supply used in food processing must be
from an approved water system. In rural areas where water is provided by a well or springs,
water must be from a source approved by domestic water permit issued by Environmental
Health Specialist. Waste deposal of service will take care of waste removal.
• Special regulations - Must meet FDA standards of all packaged food products such as canned
goods and bottled water.
• Zoning or building code requirements - Commercial or Industrial District
• Insurance coverage - Property, Employee, Fire, Accidental Injury/Liability, possibly shipping
insurance on trucks/goods (transportation) if they are not contracted out by a third party
• Trademarks, copyrights - GreenIT name and logo (as seen on page 1/cover of business plan)
Personnel
We will have the 5 owners, 1 manager in each distribution facility overseeing the 3 major
locations during the start up phase of company. We will outsource accountants and lawyers and
have 2 internal trucks and 2 drivers and 2 forklift operators for each of the distribution centers
facility.
• Where and how we will find the right employees:
Head hunters and personal interviews by owners will be used to find the right employees for
our GreenIT. We will look for people with experience in the current industry.
• Pay structure:
Hourly for truck drivers and labor with bonuses for on time delivery and salary for the
owners and managers.
• Training methods and requirements:
GreenIT will use an Intranet system module for training of office employees. We will also use a
Mentor System for first year employees lead by owners and managers. We will also have an Internship
program training potential managers that will manager new facilities that will open with future
growth. We will use an internal audit system to monitor employee performance and productivity. We
will install internal CAR system to correct procedural inefficiencies and improvements.

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• Schedules and written procedures:
We will use the Worldport scheduling systems for transportation. Worldport will be connected to our
website so customers can view their shipment schedule and status. The procedures for specific tasks
will be accessible through the intranet system.
• For certain functions, will we use contract workers in addition to employees:
Lawyers, accountants, consultants, and possibly temp services will be outsourcers as the needed.
Inventory
• What kind of inventory will we keep:
Raw materials: Recycled materials plastics/metals/paper goods that are going in to the
finished goods/packaging
Supplies: Finished recycled materials for packaging of goods
Finished goods: Boxes, cans, bottles
• Average Inventory Value at Cost = (Starting Inventory + Ending Inventory)/2
AIVC = (724,998 + 383,248) / 2 = 554,123
• Rate of Turnover = (Cost of Goods Sold)/(Average Inventory Value at Cost)
Rate of Turnover = 360,499 / 554,123 = 0.65
• Seasonal buildups: May have more demand in the summer months than other times of the year, for drinks
and during holiday periods.
Suppliers - 2 types
• Recycled Materials – Waste Management - California
o Products for our use:

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 Through its facilities, Waste Management and WM Recycle America can handle a
broad range of recyclable commodities, the material that GreenIT will reuse include
metals, plastics and fibers such as office paper, newspaper and cardboard.
 By recycling more than 257,000 tons of plastics annually, enough energy is saved to
power almost 130,000 houses for one year. Waste Management processed more than
214,000 tons of metals last year.
The table below gives the breakdown of common recycled materials useable for GreenIT’s products.
Type of plastic
polymer
Properties Common Packaging Applications
Polyethylene
Terephthalate (PET,
PETE)
Clarity, strength, toughness, barrier to
gas and moisture.
Soft drink, water and salad dressing bottles; peanut butter
and jam jars
High Density
Polyethylene (HDPE)
Stiffness, strength, toughness,
resistance to moisture, permeability to
gas.
Milk, juice and water bottles; trash and retail bags.
Polyvinyl Chloride
(PVC)
Versatility, clarity, easing of blending,
strength, toughness.
Juice bottles; cling films; PVC piping
Low Density
Polyethylene (LDPE)
Ease of processing, strength,
toughness, flexibility, ease of sealing,
barrier to moisture.
Frozen food bags; squeezable bottles, e.g. honey, mustard;
cling films; flexible container lids.
Polypropylene (PP)
Strength, toughness, resistance to heat,
chemicals, grease and oil, versatile,
barrier to moisture.
Reusable microwaveable ware; kitchenware; yogurt
containers; margarine tubs; microwaveable disposable take-
away containers; disposable cups and plates.
Polystyrene (PS) Versatility, clarity, easily formed
Egg cartons; packing peanuts; disposable cups, plates, trays
and cutlery; disposable take-away containers;
Other (often
polycarbonate or ABS)
Dependent on polymers or
combination of polymers
Beverage bottles; baby milk bottles; electronic casing.
• Food Manufacturers -
GreenIT’s packaging will use multiple suppliers for increased product market coverage. It will give us the
ability to reach a wider range of end users (personal consumers), while also increasing the bottom line.

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We will also provide our services to any company that would like to explore the marketing and sales
opportunities that come with packaging their product in our recycled materials. GreenIT is going to use
companies that emphases going green, sustainability, recycling, natural, health and environmentally
friendly such as companies the below.
 Kasha Company (acquired by Kellogg’s Company in 2000) - La Jolla, California
 General Mills - Lodi, California
 Mars Incorporated- Carson, California
Reliability/standards will be based on government/industry regulations for both supplier types.
Credit Policies
• Do we plan to sell on credit?
Yes, we plan to sell on credit.
• Do we really need to sell on credit? Is it customary in our industry and expected by our clientele?
No, since we are the starting business, its better not sell on credit. And it would only benefit seller to have enough
working capital, but if seller didn’t payoff bill on time, we will have problem for our working capital. However, if

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we can providing a convenient array of payment options to our customer, it would stimulate business and give
company a competitive edge. A good credit policy should help us attract and retain good customers, without
having a negative impact on our cash flow.
• What policies will we have about who gets credit and how much?
We are planning to let good credit and long-term relationship customer to get credit. How much credit will give
is depend on the quantity of customer’s order.
• How to check the creditworthiness of new applicants.
We will become a member of our local Credit Bureaus. Credit Bureaus provide us with the resources to check out
all our applicants, and the latest up-to-date procedures and policies most companies are using. As well many
offer seminars on credit and collection techniques.
• What terms will we offer our customers; that is, how much credit and when is payment due?
We will use option-terms credit. This type of credit permits a customer to charge up to a limit and pay within
thirty days of the billing date without penalty. We can assign a carrying charge for any amount not paid within
that time period and release additional credit as payments are made. We will offer a relatively low amount of
credit at first. If our customer pays us as agreed over a period of time, we can increase that customer's credit
limit.
• Will we offer prompt payment discounts?
Yes, we will offer prompt payment discount. The bill will deduct 2 percent from the face amount of the bill before
ten days passed. By offer prompt payment discount will encourage our customers to make early payment.
Managing our Accounts Receivable
Receivables Aging Table:
Total Current 30 Days 60 Days 90 Days Over 90 Days
Accounts
Receivable
Aging
100%
50% due to
high risk
50% due to the
short life of
food products
Extend with
built
relationship
Extend with
built
relationship
N/A
Policy for dealing with slow-paying customers:
• When do we make a phone call?
We will make a phone call at 15th
of each month to remind our slow-paying customers in
order to let them have enough time to get ready to pay the bill.
• When do we send a letter?
We will send a letter at 25th
of each month as second remind our slow-paying customers in
order to notify them the bill is due soon.

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• When do we get our attorney to threaten?
If our slow-paying customers did not pay prior or at due date without any earlier notification,
we will get our attorney to send penalty notice when more than three days overdue.
Managing Our Accounts Payable:
Do our proposed vendors offer prompt payment discounts?
Yes, we will receive a 2 % deduction from the face amount of the bill before ten days passed.
Payables Aging Table:
Total Current 30 Days 60 Days 90 Days Over 90 Days
Accounts
Payable
Aging
100%
50% due to
high risk
50% due to the
short life of
food products
Extend with
built
relationship
Extend with
built
relationship
N/A

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VII. Management and Organization
GreenIT will run in a vertical management system, from the top down. The 5 equal share owners
will oversee and be the decision makers of all aspect of the business. We will employee one manager
in each of the 3 distribution centers. Each of the centers will have 4 distinct areas of operation that
the manager will oversee, finished goods operations, supplies of food products, coordination of
recycled materials and packaging and coordination of transportation of both processes and
products. They will manager 2 forklift operators and 2 truck drivers, while coordinating operations
within their facility in an effort to have a smooth run location. The manager will be responsible for
the shipping using a computer based system (example Worldport) that is linked to coordinate
trucking.
5 Owners
Sacramento San Francisco (Bay Area) Los Angeles
Manger Manager Manager
Finished Goods Finished Goods Finished Goods
Food Goods Food Goods Food Goods
Recycled Goods Recycled Goods Recycled Goods
Transportation Transportation Transportation

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Professional and Advisory Support
• Board of directors: Five board of directors (Owners), no stock, no investors
• Attorney: Hire as needed, specialized in area
• Accountant: : Hire as needed, private firm, outsourced
• Human Resources: Owners/outsourced
• Insurance agent: Outsourced
• Banker: Commercial Loans
• Consultant or consultants: Hire as needed
• Mentors and key advisors: Dr. Daniel Parris

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VIII.Financials
Cash Flow Statement
GreenIT
Fiscal Year Begins: 1/1/2009
PRE-
STARTUP
ESTIMATE 2010 2011 2012 2013 2014 2015 2016 2017 2018
Total Item
EST
Cash on Hand (Beginning of Yr 500,000 2,994,520 4,576,449 6,700,376 9,382,562 12,639,755 16,489,204 20,948,677
26,036,47
6
31,771,45
0
CASH RECEIPTS
Cash Sales 500,000 999,998 1,029,998 1,060,898 1,092,725 1,125,506 1,159,271 1,194,050 1,229,871 1,266,767 6,968,395
Collections from Credit Accounts 500,000 999,999 1,514,998 2,045,446 2,591,809 3,154,562 3,734,198 4,331,222 4,946,158 5,579,541 14,541,011
Bank Loan (Cash) 2,500,000 - - - - - - - - - 2,500,000
TOTAL CASH RECEIPTS 3,500,000 1,999,997 2,544,995 3,106,344 3,684,533 4,280,068 4,893,469 5,525,272 6,176,029 6,846,309 24,009,406
Total Cash Available (before cash
out) 4,000,000 4,994,517 7,121,444 9,806,720 13,067,095 16,919,823 21,382,673 26,473,949
32,212,50
5
38,617,75
8 24,009,406
CASH PAID OUT
Purchases Total (5% Increase Each Yr
Merchandise) 225,000 236,250 248,063 260,466 273,489 287,163 301,522 316,598 332,427 349,049 1,831,952
Purchases (recycled materials 30%) 67,500 70,875 74,419 78,140 82,047 86,149 90,456 94,979 99,728 104,715 549,586
Purchases (food products 70%) 157,500 165,375 173,644 182,326 191,442 201,014 211,065 221,618 232,699 244,334 1,282,366
Gross Wages (2*25,000) 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 350,000
Bonuses 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 175,000
Salary (75000*1+2*35000) 145,000 145,000 145,000 145,000 145,000 145,000 145,000 145,000 145,000 145,000 1,015,000
Payroll Taxes
((B22+B20)*0.11+B218*0.20) 21,450 21,450 21,450 21,450 21,450 21,450 21,450 21,450 21,450 21,450 150,150
Outside Services (Worldport, per year
3LP Central company, $750 monthly) 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 63,000
Supplies (Office & Operations) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 35,000
Repairs & Maintenance 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 70,000
Advertising & Marketing 110,000 103,000 106,090 109,272 112,551 115,927 119,405 122,987 126,677 n/a 776,244
Car, Delivery & Travel - - - - - - - - - - -
Accounting & Legal (startup
100,000/10yrs) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 35,000
Telephone ($100 monthly*employees
1+2+2) 500 500 500 500 500 500 500 500 500 500 3,500
Utilities 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 84,000
CFSC (1people*$150) 150 150 150 150 150 150 150 150 150 150 1,050
Trucks & Trailers ($50,000 per
pair/10yrs) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 100,000
Forklifts ($20kper,new*2) 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 40,000
Racking (cost $50-80 per pallet spot, 3
levels high) 11,850 11,850 11,850 11,850 11,850 - - - - - 59,250
Building Improvements ($20,000) 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 20,000
Misc Expenses 31,497 31,497 31,497 31,497 31,497 31,497 31,497 31,497 31,497 31,497 220,479
General Liability, Worker Comp, etc. 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 7,000
Taxes (region/local) 150 150 150 150 150 150 150 150 150 150 1,050
Patent (idea) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 10,000
Trademark (logo) 200 200 200 200 200 200 200 200 200 200 2,000
Copyright (Name) 40 40 40 40 40 40 40 40 40 40 400
Goodwill 7,575 7,575 7,575 7,575 7,575 7,575 7,575 7,575 7,575 7,575 75,750
Loan payment (n30, pv2,500,000, i/y8) 222,068 222,068 222,068 222,068 222,068 222,068 222,068 222,068 222,068 222,068 1,554,476
Capital purchase (lease building $.32
per sq ft*25000sq ft) 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 672,000
Owners' Salary/Withdrawal - 100,000 103,000 106,090 109,273 112,551 115,927 119,405 122,987 126,677 646,841
TOTAL CASH PAID OUT 1,005,480 418,068 421,068 424,158 427,341 430,619 433,995 437,473 441,055 444,745 2,873,317
Cash Position (end of year) $2,994,520 4,576,449 6,700,376 9,382,562
12,639,75
5
16,489,20
4
20,948,67
7
26,036,47
6 31,771,450 38,173,013
ESSENTIAL OPERATING DATA (non cash flow information)
Sales Volume (dollars) - 999,998 1,029,998 1,060,898 1,092,725 1,125,506 1,159,271 1,194,050 1,229,871 1,266,767 6,468,395
Inventory on hand (eom) - 724,998 383,248 391,521 399,805 408,090 416,363 424,611 432,819 440,971
Depreciation 32,965 32,965 32,965 32,965 32,965 32,965 32,965 32,965 32,965 32,965 329,650
Outstanding Loan Amount 2,477,932 2,454,099 2,428,358 2,400,559 2,370,536 2,338,111 2,303,092 2,265,271 2,224,425 2,180,311
Interest on loan @ 8% 200,000 198,235 196,328 194,269 192,045 189,643 187,049 184,247 181,222 177,954
Opening Day Balance Sheet

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1/01/2009
Assets
Current Assets
Cash in Bank $ 3,500,000
Accounts Receivable 500,000
Inventory:
Recycled Materials 67,500
Food Products 157,500
Prepaid Expenses:
Insurance:
General Liability, Worker Comp, etc 1,000
Accumulated Depreciation (329,650)
Total Current Assets 3,896,350
Fixed Assets
Machinery & Equipment:
Trucks & Trailer (100,000 per pair) 10,000
Racking (cost $50-80 per pallet spot) 11,850
Fork Lifts ( $20,000 per unit, new) 4,000
Furniture & Fixtures/Supplies 5,000
Leasehold Improvements 2,000
Total Fixed Assets 32,850
Other Assets
Goodwill 7,575
Patent 1,000
Copyright 40
Trademark 200
Total Other Assets 8,615
Total Assets $ 3,937,815
Liabilities & Net Worth
Current Liabilities
Accounts Payable (Loan Yearly Payment Total) $ 222,068
Payroll Taxes Payable 21,450
Regional/ Local Taxes Payable 150
Loan Interest Payable 200,000
Accrued Expenses:
Gross Wages 50,000
Bonus 25,000
Salary 145,000
Advertising & Marketing 110,000
Telephone 500
Utilities 12,000
CFSC 150
Repairs & Maintenance, General cost 10,000
Accounts & Legal 5,000
Outside Services (Worldport) 9,000
Misc Expenses 31,497
Capital purchase (lease building .32 per sq ft*25,000) 96,000
Total Current Liabilities 937,815
Long-term Liabilities
Bank Loans Payable (greater than 12 months) 2,500,000
Total Long-term Liabilities 2,500,000
Total Liabilities $ 3,437,815
Owners' Equity
Paid-In Capital by owners 500,000
Total Owner Equity 500,000
Total Liabilities & Owners Equity $ 3,937,815

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Opening Day Financial Ratio’s
1/01/2009
GreenIT
Working Capital
$ 2,958,535
Working capital simply shows whether a company is making or losing money, and is used by lenders to evaluate whether a
company can survive hard times. It should always be a positive number. Loan agreements often specify how much working
capital the borrower must maintain.
Current Ratio
4.15
The current ratio measures financial strength. The number of times current assets exceed current liabilities shows the company's
solvency. It answers the question, "Does my business have enough current assets to meet the payment schedule of current liabilities
with a margin of safety?" In general, a strong current ratio is two or more. Of course, this will depend on the type business and the
type of the current assets and current liabilities. A very high current ratio might mean that cash on hand isn't being used efficiently.
Quick Ratio
4.06
The quick ratio measures a company's liquidity by looking only at a company's most liquid assets and dividing them by current
liabilities. It helps determine whether a business can meet its obligations in hard times. "Quick" assets are cash, stocks and bonds,
and accounts receivable (all current assets on the balance sheet except inventory). Quick ratios between. 50 and 1. 0 are usually
considered satisfactory if receivables collection is not expected to slow.

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Breakeven Analysis
GreenIT Opening Day 1/01/2009
PRE-
STARTUP
ESTIMATE 2010 2011 2012 2013 2014 2015 2016 2017
Cost Description
Variable Costs
Cost of Goods Sold $ - 360,499 371,314 382,454 393,927 405,745 417,917 430,455 443,369
Inventory 724,998 383,248 391,521 399,805 408,090 416,363 424,611 432,819 440,971
Raw Materials 225,000 236,250 248,063 260,466 273,489 287,163 301,522 316,598 332,427
Direct Labor 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Fixed Costs
Salaries (fixed-payroll taxes) $ 166,450 166,450 166,450 166,450 166,450 166,450 166,450 166,450 166,450
Supplies 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Repairs & maintenance 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Advertising 110,000 103,000 106,090 109,272 112,551 115,927 119,405 122,987 126,677
Car, delivery and travel - - - - - - - - -
Accounting and legal 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Rent 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000
Telephone 500 500 500 500 500 500 500 500 500
Utilities 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000
Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Taxes 150 150 150 150 150 150 150 150 150
Depreciation Expense (32,965) (32,965) (32,965) (32,965) (32,965) (32,965) (32,965) (32,965) (32,965)
Outside Services 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
CFSC 150 150 150 150 150 150 150 150 150
Trucks & Trailers 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Forklifts 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
Racking 11,850 11,850 11,850 11,850 11,850 - - - -
Building Improvements 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Patent 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Trademark 200 200 200 200 200 200 200 200 200
Copyright 40 40 40 40 40 40 40 40 40
Goodwill 7,575 7,575 7,575 7,575 7,575 7,575 7,575 7,575 7,575
Miscellaneous expenses 31,497 31,497 31,497 31,497 31,497 31,497 31,497 31,497 31,497
Principal portion of debt payment 200,000 198,235 196,328 194,269 192,045 189,643 187,049 184,247 181,222
Owner's draw - 100,000 103,000 106,090 109,273 112,551 115,927 119,405 122,987
Total Fixed Costs $ 650,447 741,681 745,865 750,078 754,315 746,718 750,978 755,237 759,483
Total Variable Costs
Breakeven Sales level $ 657,017 749,173 753,399 757,655 761,934 754,260 758,564 762,865 767,154

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Break-Even Analysis – continued
PRE-
STARTUP
ESTIMATE 2010 2011 2012 2013 2014 2015 2016 2017
of $1,000,000 sales
Variable Costs %
0.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
51.2% 16.2% 16.2% 16.2% 16.1% 16.0% 15.8% 15.7% 15.5%
29.3% 29.8% 30.4% 31.0% 31.6% 32.2% 32.8% 33.5% 34.1%
19.5% 18.9% 18.4% 17.8% 17.3% 16.8% 16.3% 15.9% 15.4%
100% 100% 100% 100% 100% 100% 100% 100% 100%
Nine Year Profit Projection
GreenIT
2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales $ 999,998 1,029,998 1,060,898 1,092,725 1,125,506 1,159,271 1,194,050 1,229,871 1,266,767
Cost of Goods Sold - 360,499 371,314 382,454 393,927 405,745 417,917 430,455 443,369
Gross Profit $ 999,998 669,498 689,583 710,271 731,579 753,526 776,132 799,416 823,399
Operating Expenses
Salary (Office & OH $ 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000
Payroll (taxes) 21,450 21,450 21,450 21,450 21,450 21,450 21,450 21,450 21,450
Outside Services 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
Supplies (off. & oper.) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Repairs/ Maintenance 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Advertising 110,000 103,000 106,090 109,272 112,551 115,927 119,405 122,987
Car, Delivery and Travel - - - - - - - - -
Accounting and Legal 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Building Lease 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000
Telephone 500 500 500 500 500 500 500 500 500
Utilities 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000
Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Taxes (real estate) 150 150 150 150 150 150 150 150 150
Interest 200,000 198,235 196,328 194,269 192,045 189,643 187,049 184,247 181,222
Depreciation Expense (32,965)
(32,965
)
(32,965
)
(32,965
)
(32,965
) (32,965) (32,965)
(32,965
)
(32,965
)
CFSC 150 150 150 150 150 150 150 150 150
Trucks & Trailers 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Forklifts 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
Racking 11,850 11,850 11,850 11,850 11,850 - - - -
Building Improvements 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Misc Expenses 31,497 31,497 31,497 31,497 31,497 31,497 31,497 31,497 31,497
Patent 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Trademark 200 200 200 200 200 200 200 200 200
Copyright 40 40 40 40 40 40 40 40 40
Goodwill 7,575 7,575 7,575 7,575 7,575 7,575 7,575 7,575 7,575
Total Expenses $ 716,632 707,866 709,050 710,173 711,227 700,352 701,236 702,016 576,004
Net Profit Before Tax $ 283,366
(38,368
)
(19,
466) 98 20,352 53,174 74,896 97,400 247,395
Income Taxes (N/A) - - - - - - - - -
Net Profit After Tax $ 283,366
(38,368
)
(19,466
) 98 20,352 53,174 74,896 97,400 247,395
Owner Draw/ Dividends - 100,000 103,000 106,090 109,273 112,551 115,927 119,405 122,987
Adj. to Retained
Earnings $ 283,366
(138,368
)
(122,466
)
(105,992
)
(88,921
)
(59,376
)
(41,031
)
(22,005
) 124,408

of 47
12-Month Sales Forecast
GreenIT
Fiscal Year
Begins 1/1/2009
Jan
09
Feb
09
Mar
09
Apr
09
May
09
Jun
09
Jul
09
Aug
09
Sep
09
Oct
09
Nov
09
Dec
09
Annual
Totals
Power Drink
cat 1 units sold 5,000 5,250 5,513 5,788 6,078 6,381 6,700 7,036 7,387 7,757 8,144 8,552 79,586
Sale price @
unit $ 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19
Cat 1 TOTAL 5,950 6,248 6,560 6,888 7,232 7,594 7,974 8,372 8,791 9,230 9,692 10,177 $94,707
Bottled Water
Cat 6 units sold 7,500 7,875 8,269 8,682 9,116 9,572 10,051 10,553 11,081 11,635 12,217 12,828 119,378
Sale price @
unit $ 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48
Cat 6 TOTAL
11,100 11,655 12,238 12,850 13,492 14,167 14,875 15,619 16,400 17,220 18,081 18,985
$176,68
0
Granola Bars
( box)
Cat 3 units sold 5,000 5,250 5,513 5,788 6,078 6,381 6,700 7,036 7,387 7,757 8,144 8,552 79,586
Sale price @
unit $ 2.49 2.49 2.49 2.49 2.49 2.49 2.49 2.49 2.49 2.49 2.49 2.49
Cat 3 TOTAL
12,450 13,073 13,726 14,412 15,133 15,890 16,684 17,518 18,394 19,314 20,280 21,294
$198,16
8
Breakfast Bars
Cat 2 units sold 5,000 5,250 5,513 5,788 6,078 6,381 6,700 7,036 7,387 7,757 8,144 8,552 79,586
Sale price @
unit $ 1.99 3.49 3.49 3.49 3.49 3.49 3.49 3.49 3.49 3.49 3.49 3.49
Cat 2 TOTAL
9,950 18,323 19,239 20,201 21,211 22,271 23,385 24,554 25,782 27,071 28,424 29,845
$270,25
4
Cereal
Cat 2 units sold 3,422 3,593 3,773 3,961 4,159 4,367 4,586 4,815 5,056 5,309 5,574 5,853 54,468
Sale price @
unit $ 3.49 3.49 3.49 3.49 3.49 3.49 3.49 3.49 3.49 3.49 3.49 3.49
Cat 2 TOTAL
11,943 12,540 13,167 13,825 14,517 15,242 16,004 16,805 17,645 18,527 19,454 20,426
$190,09
5
Can Soup
Cat 5 units sold 2,753 2,891 51 54 52 55 53 56 54 57 55 58 6,187
Sale price @
unit $ 1.09 1.09 1.09 1.09 1.09 1.09 1.09 1.09 1.09 1.09 1.09 1.09
Cat 5 TOTAL 3,001 3,151 56 58 57 60 58 61 59 62 60 63 $ 6,744
Fruit Juice
(Can)
Cat 4 units
sold 2,000 2,100 2,205 2,315 2,431 2,553 2,680 2,814 2,955 3,103 3,258 3,421 31,834
Sale price @
unit $ 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99
Cat 4 TOTAL 3,980 4,179 4,388 4,607 4,838 5,080 5,334 5,600 5,880 6,174 6,483 6,807 $63,350
Monthly totals:
All Categories $ 58,374 69,167 69,373 72,841 76,479 80,303 84,313 88,529 92,951 97,598 102,473 107,597
$999,99
8

of 47
IX. Capital Requirements
• Assets available as collateral for a loan
The owner of GreenIT invested $100,000 cash each into the initial company.
For Raising Capital
The amount of the loan will be $2.5 million with an 8 percent interested rate. GreenIT loans will be secured with our
inventory, assets and accounts receivable. Two million dollars will be used to help with the essential start up costs.
$2,000,000 breakdown $500,000 breakdown
Building Building repairs
Trucks Trucks repair
Machine and Equipment Machine & Equipment repairs
Materials needed for production
• Plastics
• Metals
• Card boards
• Food products
Storage accidents and damages
Licensing issues
Electricity
This plan gives an idea of where our money is going in the first year. This plan makes us a strong company because it
gives us a goal, which will strive to meet. Our goal is to pay the loan back between 15-25 years with an eight percent
interest rate.
Collateral
• House
• Boat

of 47
For Investors
• In the startup phase there will be no outside or public investors. A private company.

of 47
X. Sources Used
• Management 3320_01, Dr. Daniel Parris, PowerPoint and class room information
• Crown manufactures material handling equipment referred to as electric forklift, fork lift trucks, pallet trucks and more.
© 2002-2009 Crown Equipment Corporation,
http://www.crown.com/usa/products/usa_electric_forklift/sit_down_counterbalance/index.html
• Emerald Packaging, Design: Melissa Laux Art Direction & Photography: Erin Jaeb Copywriter: Lorraine Sanders Programming &
Technology: Chris Strobel of Iteon Consulting. http://www.empack.com/
• NETSUITE, Copyright © 1998 - 2009 NetSuite Inc. All rights reserved.
http://www.netsuite.com/portal/industries/wholesale.shtml
• http://www.bls.gov/oco/cg/cgs026.htm
• California Food and Safety. http://californiafoodsafety.com/faq.html
• Sales taxes in the United States. This page was last modified on 23 November 2009 at 02:10. Wikipedia® is a registered trademark of
the Wikimedia Foundation, Inc., a non-profit organization. http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States.
• Groceries and related products, not elsewhere classified (SIC 5149). US Industry Profile. Gale Encyclopedia of American Industries.
Copyright © 2005 by The Gale Group, Inc. All rights reserved. Copyright © 2009 Answers Corporation.
http://www.answers.com/topic/groceries-and-related-products-not-elsewhere-classified
• costhelper What people are paying. Copyright © 2009 CostHelper.com. http://www.costhelper.com/cost/small-
business/copyright.html
• IP Watch Dog. http://www.ipwatchdog.com/patent/provisional-patents/
• Bureau of Insurance. © 2006 All rights reserved.
• General Liability Insurance, Cravens Warren. Site Ensemble CMS Copyright © 2009 Paradigm New Media, LLC. All rights reserved.
http://www.cravenswarren.com/insurance/General-Liability-Insurance/page254.html
• Environmental Defense Fund, Copyright © 2009 Environmental Defense Fund. All Rights Reserved. 257 Park Avenue South, New
York, NY 10010.

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