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A T RACTION To the individualist who loves to be bold and stand out from the crowd, aTraction turns unfortunate injuries into personalized statements.

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Presentation on theme: "A T RACTION To the individualist who loves to be bold and stand out from the crowd, aTraction turns unfortunate injuries into personalized statements."— Presentation transcript:

1 A T RACTION To the individualist who loves to be bold and stand out from the crowd, aTraction turns unfortunate injuries into personalized statements. Jenn Egroff & Delia Edwards

2 P RODUCT Short and Long Arms & Legs Customizable Sizing & Embroidery Handmade, local product Various Product Lines: Kids Young Females Sports Injuries

3 P LACEMENT Largely website-based Customized orders Within Canada and the United States We hope to establish retail partnerships

4 P ROMOTION Website Online Google Adwords Facebook Page and interactive contests Sponsored ads Partner with athletic teams Partner with medical professionals Hand out samples and pamphlets Attend medical and pharmaceutical tradeshows Incentive Program: With purchase, customers get a code for a 15% discount on the next purchase online. Can easily share with friends! Incentive Program: With purchase, customers get a code for a 15% discount on the next purchase online. Can easily share with friends!

5 P RICING Customized Items Additional $1.00 for every added inch of fabric Embroidery ranges between additional $1.00 to $5.00 Shipping calculator available online ItemOnline/ Portion of Retail Sale Arm CoversHalf Arms (S - L) Full Arms (XS - L) Between $8.00 to $14.00 Leg CoversHalf Legs (S – L) Full Legs (XS – L) Between $12.00 to $18.00

6 O PERATIONS Part-time, home-based business Extremely flexible Paid hourly based on production requirements BEST CASE20112015 Minutes/arm Seamstress time6.004.48 Minutes/leg Seamstress time7.505.60 Total Annual Hours Required:163261 Only requires 4 hours each for production and administration duties per week!

7 C APITAL B UDGET S UMMARY P ROFITABILITY AND C ASH F LOW 20112012201320142015 Net Income (3,177)2,3283,6056,30210,625 Cash Balance End yr 3382,9486,71113,18823,474 Total Investment: $5,250 each for $10,500 in equity financing Initial Capital Investment for Fixtures and Equipment: $5,697 Gross Profit Margin67%58% 60%63% Net Profit Margin-19%11%15%21%29%

8 P RODUCT M ARGIN C OMPARISON ItemCostSelling PriceMargin Arms$4.47$10.0044.7% Legs$5.47$14.0039.1% ItemCostSelling PriceMargin Arms$3.86$10.0038.6% Legs$4.81$14.0034.4% Year 5: Year 1:

9 P AYBACK, NPV, & IRR Year20112012201320142015 Total Cash Flow to Equity Investors(10,500) 3382,6103,7646,47610,286 PaybackGross23,474 Net12,974 Present Value of the Cash Flows9,891 Net Present Value(609) Internal Rate of Return23.0% Our required rate was 25%

10 Q UESTIONS & COMMENTS ? C ONCLUSION Home Business Good Returns Minimal time requirements


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