Agec Tuesday, December 4, 2007 Business Plan Lynden Butler, Janina Gislason, Chantal Bauche, Katelyn Olsen

Agec Tuesday, December 4, 2007 Outline Introduction Introduction Operations & Human Resource Plan Operations & Human Resource Plan Marketing Plan Marketing Plan Financial Plan Financial Plan Conclusion Conclusion

Agec Tuesday, December 4, 2007 Introduction Company Company Founders Founders Company history Company history Product Product Business Plan Focus Business Plan Focus

Agec Tuesday, December 4, 2007 Operations & Human Resource Plan Organizational Structure Organizational Structure Work Flow Work Flow Cost of Goods Sold Cost of Goods Sold Administration, Marketing & General Expenses Administration, Marketing & General Expenses

Agec Tuesday, December 4, 2007 Organizational Structure Organizational structure Organizational structure President President Duties Duties Investors Investors Accountant Accountant Duties Duties Contract work Contract work

Agec Tuesday, December 4, 2007 Work Flow Products procured Transported to STPC Production of N.Y. Sticks at STPC Order picked up and transported to Versa Cold Sold to Denbar Distribution to convenience stores by Denbar

Agec Tuesday, December 4, 2007 Cost of Goods Sold Data supplied Data supplied Different per SKU Different per SKU Cost breakdown Cost breakdown

Agec Tuesday, December 4, 2007 Administrative, Marketing & General Expenses Yearly basis Total breakdown of costs

Agec Tuesday, December 4, 2007 Marketing Plan Marketing Mix Marketing Mix SWOT Analysis SWOT Analysis Market Analysis Market Analysis

Agec Tuesday, December 4, 2007 Marketing Mix Product Product Pricing Pricing Promotion Promotion Place Place

N.Y. Stick StrengthsWeaknesses Human Resources - Personal interest in the business - Utilizing lots of resources from other companies - DenBar will eventually handle all the marketing - Costly to hire out work at every level of production - Markets are not easily accessed, personal connections can not be forged (DenBar becomes an asset) Physical Resources - Less start- up costs - No interest payment on loans - No need for maintenance of equipment - Still paying for the use of others equipment - No significant long- term assets Financial Resources - Virtual company - Not a significant amount of liabilities - Profitability= fine margin - Not a significant amount of assets SWOT Analysis

Agec Tuesday, December 4, 2007 SWOT Analysis Cont’d OpportunitiesThreats - Expansion into larger convenience store chains - New healthy product with potential - Not large knowledge of product in market place - Many competitors

Agec Tuesday, December 4, 2007 Market Analysis Past Performance The Market Competition Customers Product features Opportunity

Agec Tuesday, December 4, 2007 Financial Plan Dividend Policy Dividend Policy Financial Performance Assessment Financial Performance Assessment Risk Analysis Risk Analysis

Agec Tuesday, December 4, 2007 Dividend Policy Dividends retained vs. Paid Dividends retained vs. Paid Best Case Scenario Best Case Scenario No dividends until eighth year No dividends until eighth year

Agec Tuesday, December 4, 2007 Financial Performance Assessment Cash Flow Statement Cash Flow Statement Negative Negative Net Income Statement Net Income Statement NPV NPV IRR IRR ERR ERR Base run Base run Best case scenario Best case scenario

Agec Tuesday, December 4, 2007 Summary of Financial Results

Agec Tuesday, December 4, 2007 Risk Analysis Critical Variables Critical Variables

Agec Tuesday, December 4, 2007 Risk Analysis (Cont’d) Break- even Analysis Break- even Analysis

Agec Tuesday, December 4, 2007 Risk Analysis (Cont’d) Contingency Plan Contingency Plan Worst Case Worst Case Best Case Best Case

Agec Tuesday, December 4, 2007 Conclusion With the assumptions and numbers used in this business plan, Meat on a Stick can not operate at a profit. They will have to adjust critical variables to realize a profit. With the assumptions and numbers used in this business plan, Meat on a Stick can not operate at a profit. They will have to adjust critical variables to realize a profit.

Agec Tuesday, December 4, 2007 Questions