The document discusses forming a partnership to manufacture and distribute a portable machine called the DRI Portable. Some key advantages of a partnership include shared capital, flexibility, responsibility and decision making. Potential disadvantages include disagreements between partners, the need for agreement on all decisions, joint liability, and profit sharing requirements. The document provides revenue projections from sales and rentals of the machines, and estimated expenses including manufacturing costs, marketing, repairs and patents. It proposes partnering with manufacturers who can provide bulk pricing and precision manufacturing to specifications. Risks include manufacturers learning designs and creating competing products.

1. Engineered to Protect
DRI Value Your Safety
Proposition

2. Partnership Advantages
 Capital – Partners will fund the business with start up
capital. The more money will allow flexibility and
more potential for growth.
 Flexibility – A partnership is generally easier to form,
manage and run. They are less strictly regulated
than companies, as long as all the partners can
agree.
 Shared Responsibility – Partners can share the
responsibility of the running of the business. They
might well split the work according to their skills.
 Decision Making – Partners share the decision
making and can help each other out when they
need to.

3. Partnership Disadvantages
 Disagreements – One of the most obvious
disadvantages of partnership is the danger of
disagreements between the partners. This can harm
the business and the relationship of those involved.
 Agreement – Because the partnership is jointly run, it
is necessary that all the partners agree with things
that are being done.
 Liability – Business Partners are jointly and individually
liable for the actions of the other partners.
 Taxation – One of the major disadvantages of
partnership, taxation. Some employee benefits are
not deductible from business income on tax returns.
 Profit Sharing – Partners share the profits equally.

4. Income Statement: Revenue
 DRI Machine retail price
 $7500
 Machine Operation certification
 $200 per person
 Rental Prices
 $150 per day
 $50 per hour
 Warranty for retail sales
 $1500, limited
 Warranty for rentals
 $30 per day
 Machine Repair Shop
 Depends on parts/work required/number of machines
 Expected Revenue per Machine: $5,000
 After Expenses

5. Income Statement: Expenses
 DRI Portable cost per Unit $5,000
 Material cost
 Manufacturing cost
 Labor Cost
 Advertising
 $5,000 per year
 Sales Staff
 Depends on number of associates
 $12.00/hour Per sales men
 Machine Repair Shop
 Cost to be determined
 Machine Certification Work Shops
 Cost to be determined
 Warranties
 Cost to be determined
 Patent of DRI Portable
 $10,000 estimated cost
 Expected cost per Machine $6,000

6. Why Partner with US?
 Many manufacturers does straightly manufacturing of
raw materials. The more account they get, the
cheaper they can get raw material pricing from their
sources.
 The potential market for our DRI device will be massive
since there is no direct competitive currently.
 We will be able to buy in huge quantities including
repair parts for future repairs. It will be an ongoing
relationship and not just a one time purchase.

7. Risks
 Some manufacturers, overtime, learn about
our product through manufacturing, and can
potentially steal our design.
 We need to source our manufactures from a
few different companies to protect ourselves.
 We do not want manufactures to make a
competitive product and slap their name on
our machine.

8. Types of Partners Needed
 We will need manufacturers that can provide
us bulk pricing.
 Able to provide parts from SolidWorks
drawings.
 Have excellent quality control and can give
us precisely the weight and shape we wanted
to down to ±0.01lb
 Have 3-4 weeks turn around time. Shipping
from Asia usually takes 2-3 weeks with freight.