1. GS 3 Consulting Sean Georget Josh Safronetz Dana Stoughton Dave Sullivan February 2008

2. Live Xtreme Industry Analysis Industry Analysis Goals and Objectives Goals and Objectives Operations Plan Operations Plan Human Resource Plan Human Resource Plan Marketing Plan Marketing Plan Finance Plan Finance Plan Conclusion Conclusion

3. Clark’s Xtreme Sports Company is committed to being the premier Extreme Sporting Goods Store in Saskatoon and area, by serving the alternative sport enthusiasts and providing merchandise of exceptional quality and value in a friendly, service-oriented environment.” “ Clark’s Xtreme Sports Company is committed to being the premier Extreme Sporting Goods Store in Saskatoon and area, by serving the alternative sport enthusiasts and providing merchandise of exceptional quality and value in a friendly, service-oriented environment.”

4.  Establish an image and name  High end alternative sporting goods  Support local Extreme Sport athletes  Maximizes sales at $480,000 by year 5  Monthly sales of $20 per square foot of retail space  20% return on equity

5. Location Location Store Floor Plan Store Floor Plan Average Business Cycles Average Business Cycles Supply Analysis Supply Analysis Capital Budget Capital Budget Operational Expenses Operational Expenses

8. Average Business Cycles Average Business Cycles Average Day Average Day Average Week Average Week Average Month Average Month Average Year Average Year Supply Analysis Supply Analysis

11. Job Description General Manager General Manager Direct Sales Staff Direct Sales Staff Scheduling Scheduling Training Training Labour Costs Labour Costs

13.  Products- High end quality sports merchandise  Pricing- Premium pricing  Promotion- Strategic advertising  Place- Broadway district

14.  Segmentation, Targeting, & Position ◦ Saskatoon and area residents ◦ Above average income ◦ Serious competitors ◦ Health and wellness ◦ Sports teams http://youtube.com/watch?v=WCNk9u2p3PI

15. 

18. ◦ $30,000 Equity ◦ $60,000 Long Term Debt ◦ $10,000 Cash on hand

19. Year20082009201020112012 Sales Revenue 400,000 430,500 451,000 471,500 492,000 Cost of Goods Sold 228,571 244,000 253,563 262,804 271,512 Gross Margin 171,429 186,500 197,437 208,696 220,488 Total Expenses 169,701 179,448 184,443 190,189 196,200 Net Income Before Taxes 1,728 7,052 12,994 18,507 24,289 Income Taxes 322 1,278 2,355 3,353 4,401 Net Income(Loss) 1,406 5,774 10,639 15,153 19,887 Net Cash Flows to Equity 17,853 4,218 5,675 7,430 54,546 Net Present Value (NPV) 16,595 IRR38%

21. VariableBase CaseWorst CaseBest Case Sales (Year 1) 400,000300,000500,000 Mark up 75%65%85% Wage/hr 12.0015.0010.00 Interest Rates 7.4%10.0%5.0% ScenarioNPVIRR Avg Annual Cash Flow Avg Annual Net Income Base Case16,59538%8,80810,572 Worst Case(297,500)n/a(65,926)(63,582) Best Case283,203249%72,20473,502

22.  Low sales – lay off staff ◦ Lowers the breakeven point  $330,000 – Manager + 1 staff  $265,000 - Manager  Low sales for extended period – liquidate

23.  Business is viable ◦ IRR= 38%  Incorporate ◦ Limit liability ◦ Tax implications  Sales are critical! ◦ Brand image ◦ Reputation ◦ Premium Product