1. SADIE’S COUNTRY ‘N’ WESTERN

2. Sherry Deissner Krista Grahn Chris Harding Zaya Kadyrova Maura Kearney

3. Proposal Outline Business Potential and Proposal Marketing Plan Operations Plan Human Resources Plan Financial Plan Business Value and Profitability

4. Potential and Proposal Sadie’s Country ‘n’ Western Products Western wear Casual wear Rancher’s supplies and tack (saddles, bridles, halters, leads, etc.) Location: Champion, Alberta

5. Potential and Proposal Champion

6. Potential and Proposal Value in the concept One-stop shop idea Fulfills a need of working area residents (farmers and ranchers) Convenience Low prices

7. Mission Statement Sadie’s Country n’ Western is a retailer of country supplies and casual and Western wear for men, women, and children. Sadie’s is dedicated to providing convenience of a one- stop destination of choice for families of Southern Alberta at competitive prices.

8. Goals Short term goals: 1) Secure our desired location in the mini mall of Champion, Alberta 2) Acquire the necessary financing 3) Enter into supplier agreements with desirable terms 4) Become profitable in the first few years of operations 5) Achieve market share of 10% in the Vulcan County and 1-2% in surrounding counties

9. Goals Long term goals: 1) Monitor key ratios against industry and achieve performance that is at least at par with industry standards 2) Become a well-recognized brand name in Southern Alberta and Western Canada 3) Maintain healthy positive cash flows from operations 4) Maintain low overhead and other operating costs 5) By year 5 or 7 Sadie hopes to open a new location in Lethbridge, AB. If the current location proves to be as successful as projected, a franchising plan will be created enabling us to open new locations across Southern Alberta and Western Canada.

10. Market Overview Target geographic area Vulcan County and other nearby counties 61,803 people, excluding Lethbridge Aiming to get 10% market share Predominately rural Target population Price-sensitive ranchers and farmers Visitors

11. Industry Overview Target geographic area

12. Industry Overview Competition Lammle’s Barriers to entry No direct competition in target area Economic trends Positive in Alberta Food prices Recession/cost of fuel Consumer trends

13. Marketing Plan Place Mini mall Product Convenience, affordability, necessity Promotion Catalogues Stampede Flyers Billboards

14. Price

15. Revenue and Marketing Costs

16. Operations Plan Organizational Structure Incorporation Positive net income anticipated Protection from personal liability Tax deferral opportunities

17. Operations Plan Site Plan -Mini-Mall on 1 st Avenue Main St, Champion

18. Operations Plan Floor Plan 1 st Avenue Register Tack ToysClothes Change rooms Gifts Was hroo Storage/Receiving Toys Tack Gifts Register 1 st Avenue Clothes Change Room Wash Room Storage / Receiving

19. Operations Plan Daily Operations Store Manager Hours of Operation Daily Activities Stampede

20. Operations Plan Suppliers Traditional Western Designs Exclusive contracts (Weaver Leather) Stable well known suppliers North American Based suppliers

21. Operations Plan Working Capital Cash $ 50,000.00 Accounts Receivable $ 1,104.78 Inventories $ 109,863.43 Accounts Payable $ - Total Net Working Capital $ 160,968.21

22. Operations Plan Capital Budget Summary Cash Register's and Micro's POS System $ 6,000.00 Furniture and Fixtures $ 40,000.00 Leasehold Improvements $ 20,250.00 Trailor $ 15,000.00 Leasing Deposit $ 6,000.00 Net Working Capital $ 160,968.21 Total Capital Required $ 248,218.21

23. Operations Plan Cost of Sales

24. Operations Plan Working Capital Management Cash Management Inventory Management Accounts Receivable Accounts Payable

25. Operations Plan Working Capital Management Liquidity management Inventory management AR Policy AP Policy

26. Operations Plan Annual Operating Expenses Gas $ 4,515 Electricity $ 9,996 Insurance $ 4,000 Rent $ 35,000 Telephone $ 720 Office Expenses $ 6,000 Stampede Wages $ 1,360 Wages $ 72,264 Bookkeeping $ 5,040 Accounting $ 1,500 Legal $ 3,800 Site Security $ 348 CCA $ 9,775 Interest Expense $ 7,447 Marketing Expenses $ 106,810 $ 269,935

27. Human Resources Plan Sadie – Owner Manager Will work full time (40 hrs) Ordering Receiving Hiring, training, and supervision Nightly cash out (when required) Bank deposits Estimated annual salary $45,000

28. Human Resources Plan Sales associates Will work part time (20 hrs) Customer enquiry and assistance Stocking goods Taking payment and cashier duties (cash out) Wage: $10/hr Training: on-the-job

29. Financial Plan Highlights: Year 1Year 2Year 3Year 4Year 5 Net income35,555156,624351,491360,382369,764 Cash flows from operations 47,741171,614362,576372,937382,903 Debt / Equity1.40.90.50.30.2 Current ratio2.73.13.74.96.1

30. Net Present Value Net Present Value $177,317 IRR 44%

31. Financial Plan How does Sadie’s stack up? Gross margin % (GM%) Industry averageYear 1Year 2Year 3Year 4Year 5 47%42%41%

32. Financial Plan How does Sadie’s stack up? Pre-tax profit % Industry averageYear 1Year 2Year 3Year 4Year 5 5%6%17%25%

33. Financial Plan How does Sadie’s stack up? Inventory turnover ratio Industry averageYear 1Year 2Year 3Year 4Year 5 3.444444

34. Financial Plan How does Sadie’s stack up? Current ratio Industry averageYear 1Year 2Year 3Year 4Year 5 1.7 2.73.13.74.96.1

35. Financial Plan – Sensitivity Analysis

36. Sources of Financing Capital (financing required) $124,000 Character Collateral Capacity

37. Conclusion Competitive advantage Low prices Untapped market potential Low labour and overhead costs Moderate risk Simple business model Profitable

38. Q&A