Business Plan

September, 2016

1950 3rd Street La Verne, CA 91750 (858) 964-8535 phone tinytoolbox18@gmail.com email

Table of Contents Section Page Executive Summary 3

The Company 3

Our Mission 4

Our Vision 4

Our Goal 4

Organizational Objective 4

Managing Officers 4

Management 5

Situational Analysis 5

BCG Matrix 7

Strategic Relationships 8

Exit Strategy 8

The Product -Tyler Fernandez 8

Access to the Product 9

Packaging 10

Vendors 10

Special Orders 11

Target Market 12

Marketing Strategy 13

Psychographics 14

Competition 14

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Why buy from Tiny Toolbox? 15

Potential Expansion 15

Promotional Plans and Advertising 15

Events List 16

Survey Results 16

Social Media 17

Sales Projections Period 17

Most Likely Sales Projection 18

Best Sales Projection 18

Worst Sales Projection 18

Weekly Sales Report 19

Sales Strategies 19

Capital Budget 19

Use of Proceeds 20

Financing Sought 20

Financial Projections 21

Most Likely 21

Best 24

Worst 26

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Executive Summary Our product is the Tiny Toolbox. It is a small, durable multi-tool with 18 functions that

can fit in the credit card slot of a wallet. It has a customizable color and brand logo, and includes a leather case. We chose to sell this product because it is unique, provides a lot of portable utility, and is tough, just like the veterans that we are supporting.

Tiny Toolbox is a start-up business conceived by seven students from the University of La Verne. We intend to sell our product mainly at events including EggFest, Homecoming Weekend at the University of La Verne, Ramirez Intermediate Food Truck Festival & Vendor/Craft Fair, CMM 2nd Annual Poker Run Benefiting U.S. Vets, Phelan Craft Beer Festival, Oktoberfest DTLA, “On a Roll” Casino Night Fundraiser, Amber Waves of Grain, and Ski Dazzle. We’ll make everyone interested in our product aware about our message of supporting veterans through donating our profits to the National Veterans Foundation.

The specific charity we chose to support is the National Veterans Foundation. We chose

this charity because we feel that veterans are a neglected demographic, while having many needs after serving our country. They are headquartered in Los Angeles, so we can communicate easily and are figuring out how to coordinate events. A few of our team members also have veterans in their family, so the issue is close to our hearts.

We are intent on working with our charity to help promote our product and coordinate

going to events with them. Our primary supplier will be Grace Metal Unlimited, located in China, and our secondary supplier is Clamptek Enterprise Co. Ltd., also located in China. We will be marketing our product to veterans and their families, car dealerships and enthusiasts, hobbyists, small businesses, hardware stores, and other corporate businesses. We’ll be advertising our company and cause on our physical product, as well as on banners and the table of our booths. In addition, we’ll run various promotions through the next couple of months. Based on these plans, we have the goal of selling 700 Tiny Toolboxes by the end of ten weeks. In order to fund our business plan, we seek a $2,500 loan. The Company

Tiny Toolbox was formed on August 30, 2016. Our office facilities are located on the University of La Verne campus, and our inventory is stored securely off campus with our COO. Sales will largely rely on showing our product at events in Los Angeles and Riverside Counties.

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We are also intent on selling at a corporate level, and creating a website where people can learn about our cause and buy the product. Mission Statement

Our mission is to provide a tool that creates independence and assistance through highly

portable utility in one’s daily routine. We are all personally invested in the company’s success for the sake of both the National Veterans Foundation and our own personal achievement. Vision Statement

Our vision is to better the lives of neglected veterans through the donation of our profits

to the National Veterans Foundation. One day we hope to see heightened awareness and access to better care and assistance for veterans. Our Goal

As a company, our goal is to sell 700 Tiny Toolboxes by the end of ten weeks. If each one sells at $10 each, we would generate total revenue of $7,000. This will be more than enough to repay our loan with interest in sufficient time and allow us to donate a sizeable amount to the National Veterans Foundation. The donated money will help veterans in need through providing both physical and mental support. Organizational Objective

In order to achieve our goal, we will have to sell 70 Tiny Toolboxes a week on average. Because we want to easily reach enough customers to sell this much every week, we have set the objective of bringing our product to at least one large event each week. In addition, we are seeking out corporate sales, and making a lot of beginning sales to friends and family. We are supplementing the effectiveness of our efforts by making our brand recognizable through building a social media presence, distributing business cards, and creating great logos to put on all our products and marketing assets. Managing Officers

CEO - Kolten Frapwell

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I am a senior at the University of La Verne studying Business Administration with a concentration in Economics. After graduating in the Spring of 2017, I plan on taking a break from school. After working for a while, I may look into getting a Phd in Economics.

CFO - Virginia Villagrana I am a junior at the University of La Verne planning to graduate with a bachelor’s degree

in Business Administration and Economics. After graduating in the early Summer of 2018, I will be seeking a career focusing on human resources where I plan to utilize my business skills to start a business of my own in the future.

COO - Tyler Fernandez I am currently a Junior at the University of La Verne on track to graduate with a Bachelor

Degree in Business Administration. I am pursuing a career in some kind of sports marketing or ticket sales for a sports franchise.

Vice President of Marketing - Thomas Annabel I am a junior at the University of La Verne planning to graduate with a degree in

Business Administration with a concentration on Marketing. When I graduate I hope to attain a job with a video game company in their marketing department.

Vice President of Sales - Max Hu I am a junior at the University of La Verne planning to graduate with a major in Business

Administration and Psychology minor. My goal here is to learn as much knowledge as possible, then I will think of starting a company myself, depending on what ideas I get.

Management

Director of Marketing - Anissa Walton Unfortunately, Anissa had to leave our team recently. Her contributions were appreciated

while we had her. Director of Sales - Daniel Li I am a senior at the University of La Verne studying Business Administration and

Management. When I graduating in the winter of 2017, I plan to find a job in the United States. When I get lots of experience, then I will go back to China.

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Situational Analysis Strengths

● Team members have veterans in the family, so we have greater motivation to sell for our cause.

● We are all excited about and believe in our product, so selling it will be second nature. ● Many of our team members already have personal sales experience and as a team can use

our experiences to help assist each other. ● Most of us live on the University of La Verne campus and those that don’t live very

close, so we can assemble ourselves for events very quickly. ● Our product is built to last a long time and has a wide variety of useful functions, so we

are very likely to always have satisfied customers. ● Our unique selling proposition is that all of our profits go to charity.

Weaknesses

● Many of us have a lack of business and sales experience, so we will need to effectively communicate and assist each other when needed.

● We are a new company, so we may have growing pains. ● Both of our suppliers are in China, so shipping time will require us to have very accurate

sales forecasts. ● Our relatively small team means that our labor resources will be stretched thin getting to

every event we want to make. Opportunities

● The product can’t be found in big stores like Target or Walmart. ● Our product is unique, nothing else offers as much portable utility without taking up

space. ● The Tiny Toolbox offers a much less expensive alternative to something like a

Leatherman multi-tool or Swiss Army Knife. ● The holiday season is coming, which is prime time for people to buy. ● Being the first semester of the 2016-2017 school year, students have more spending

money after working more hours over the summer. This is relevant because many of our first weeks of sales will be on the University of La Verne campus.

● Team members have connections with corporations, giving us an edge at making a corporate sale.

● All profits going to charity adds more incentive to buy from us as opposed to any competitors.

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Threats

● One online company also sells this product in the United States under the name of “Wallet Ninja.”

● The “Wallet Ninja” advertises a small knife bundled with it for the same $10 price we will charge.

● People that already own a Leatherman multi-tool or a Swiss Army Knife may not see as much of a need for our product.

● Late delivery of our product could cause us inventory problems right before scheduled events.

● China has less regulations on production than the United States, so there is a chance of having unforeseen problems with our product.

● Our alternate supplier in America is very expensive if both of our China suppliers cannot meet our demand.

BCG Matrix

We’ve placed Tiny Toolbox in the Question Mark category of the BCG Matrix due to our

company being completely new to the market. The market for a multi-tool that takes up the same space as a credit card is relatively new compared to that of traditional multi-tools such as the Leatherman or Swiss Army Knife. We know that the new market is growing very fast due to

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Wallet Ninja’s growth rate of 300% - 400% every year since being founded in 2010. Our prospects for taking advantage of this growing market look positive because our marketing and sales strategy will be specifically targeting the people most likely to be interested in Tiny Toolbox. Strategic Relationships

We will be donating all of our profits to the National Veterans Foundation. In turn; we are coordinating how to sell our product at their programs and events. We expect this relationship to help the charity by raising funds and awareness. Having greater opportunity to sell product with their message will help our business.

One of our organizational objectives is to make corporate sales. Making a big corporate

sale would be beneficial to both our company, and the corporation’s. On our part, we get to make a large bulk order, knowing that it will leave our inventory instantaneously. This will create a sudden boost to our profits and achieving or surpassing our goal of selling 700 Tiny Toolboxes. On the corporation’s part, they can have their logo on the Tiny Toolbox, so people will think of their company in more everyday situations. They also get positive PR for their shown social responsibility by contributing to charity through us. Exit Strategy

After we have paid off our loan plus interest and finished our ten week goal, our exit strategy is to liquidate and close. First we’ll sell off any remaining inventory and assets at either market value or discounts if necessary. Then we’ll donate all the remaining money we’ve made to the National Veterans Foundation, and close our bank account.

The Product

Our product is called the Tiny Toolbox. Tiny Toolbox is an 18-in-1 mega tool and that

be used as an everyday carry item. It is roughly the size of an average credit/debit card (3.25” x 2.125” x 0.06”, 1.5mm thick). It is made with 4x heat-treated steel, which means no breaking, rusting, or bending. With this item our customers will be ready for any situation they find themselves in. Tiny Toolbox includes 18 handy tools such as two different rulers (centimeter and inches), four different screwdrivers, box cutter, fruit peeler, letter opener, bottle opener, six different hex wrench sizes, nail puller, and to finish it off a phone stand.

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Access to the Product The product will be stored under lock and key right at the University of La Verne. It will

be very accessible at any time of the day. This is the best place to store our product because it will be available any and every time we need to access it. Also, each team member will be allowed access to a minimum of 15-20 units per week to sell. The COO has created a spreadsheet that will track what comes in and out and how each of our six team members will receive inventory and sell it as well. The spreadsheet will also track weekly inventory and inventory we will bring to our 10-15 events. There will be a second section which shows and marks any defective products we may fine in our shipments.

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Packaging This is where our product has a very big upside. Since each one of our units weighs

around 0.036 kilograms (less than a pound per unit), and is no larger than a credit card, shipping will be very easy compared to other products. The manufacturer will be using an express shipping service such as Fedex or UPS. We will be able to fit hundreds of units in one carton, which will help our shipping costs, which will round out at $86 if we order 300 units of this item. For normal orders of the “Tiny Toolbox” (not customized with logo), processing will be 2 days exactly and shipping will be 4-7 days. If any corporations were interested in mass buying our product and we decided to customize a logo for them the processing will be 5 days with the same shipping time of 4-7 days. The unit also comes with a leather sleeve upon delivery, which adds a aesthetically pleasing finish to the piece.

Vendors

Primary Vendor:

Our primary vendor will be available through Clamptek Enterprise Co. Ltd. This manufacturer is located in Dongguan City, China. They were founded in 2003 and generate annual revenue at around $40 million. Every unit will be priced at $0.80, the price of the customization will be $1.70. Some of the perks from this wholesaler site is: 100% product quality protection, 100% on-time shipment protection, and 100% payment protection for a payment limit of $27,000. Processing time is 2 days and shipping ranges from 4 days to 7 days. We picked this as our top supplier because they were very good with communication and they professionally answered our questions when we had any uncertainty about the different colors we could purchase or even the quality of the unit itself. They also sent us 10 samples with no extra cost, which tells us they are very confident they have a good product and we want to jump

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at that opportunity. They also are a bigger and more defined company relative to our other vendors as they have been in business for 10 years and generate a far greater revenue than our secondary vendor.

Secondary Vendor:

Our product is available through the wholesaler: Grace Metal Unlimited. They were founded in 2013, which means they are a fairly new company. They generate $2.5 million of revenue a year. Unit price varies from $.90 (not customized) to $1.70 (fully customized with logo with a one time cost of $50). Some of the perks from this wholesaler site is: 100% product quality protection, 100% on-time shipment protection, and 100% payment protection for a payment limit of $27,000. Our shipment will be available through either sea or air. We will be using airfreight. Grace Metal Limited is a professional metal manufacturer in Foshan, China, and has been in this field for 3 years. They use various amounts of machines that contort metal, such as bending, punching, and cutting. They have enough machines and workers (around 50) to keep production up to at least 100,000 pieces per month. This is our secondary vendor because we aren't really sure if they can meet our demands or even have the funding it takes because they are such a new company in comparison to our other vendor. United States Vendor:

We had a little trouble finding a generic maker of our product. By generic I mean one without any special logo or lettering on it. There is a United States company called “Wallet Ninja”, which we based our product off of, but they have a completely customized version of the product. If we were to run into problems, we technically would be able to use them as our supplier, but our consumers would easily be confused by our brand name versus they brand name for wallet ninja. We plan on not needing this company as we put a lot of trust and have a lot of faith in our first two vendors. The pricer per unit for this product is $8 per unit with free domestic shipping. Special Orders

Both our suppliers do in fact give us the opportunity to purchase special orders. If our company, “Tiny Toolbox”, was to take a corporate direction to sales, we could take their logos and put it on the product for a flat rate of $50 and a price of $1.70 per unit. We can also offer different colors such as purple, blue, green, black, stainless steel, etc. Depending on what sells better, we could easily purchase more of one color or less of one color for a price of $0.90 per unit. Below is a custom one they did for New York University

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Target Market

People are looking for ways to fix their own problems that saves them money and gives

them a new skill. Our product lets people become their own handyman on the go, wherever a problem may occur. With this knowledge we have decided to bring the Tiny Toolbox to the market. Our product is a small multi-tool device with eighteen functions. Our biggest selling point though, it takes up virtually no pocket space because it slips right into your wallet.

Our target market is car dealerships, automotive enthusiasts, hobbyists, do it yourselfers, veterans and their families, mechanics shop, small businesses, hardware stores, construction companies, salesmen and women like relators or car salespeople, any sort of repair shop like carpenters, electricians, landscapers and finally campers and hikers. We believe that many of the people who attend car shows or the drag races, which are two places where we wish to set up booths, are very interested in donating to charities that support our veterans. Hobbyists and do it yourselfers would love our product for when they need to do a quick fix or make something on the go. Campers would love this product because it does not add much room to their carry but gives them a bottle opener, can opener and fruit peeler.

Veterans who are currently living comfortably know exactly how stressful combat can be

and what it can do to a man. They and their families would love to buy our product not for the product itself, but for the charity. Our charity is very much at the forefront of our company. When people see the connection to veterans, they will be more than eager to buy a product to support someone in their family, whether it be a father, a son, an aunt or an uncle.

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Mechanics shops, small businesses, hardware stores and construction companies would like our products for the usability and more for the promotional aspect. They can get their companies name imprinted onto the product, and then sell it or give it away as a promotional item that people would carry with them every day. Repair shops would like the product for the same reason, possibly giving one to the customer when they finish a job so that the people they help remember to call them next time they need something.

Sales people like relators or car salespeople would love our product as a giveaway item

after they make a sale. They could give it to their client as a small present after closing the sale, making the people receiving it happy to have a free gift, and putting the sales person’s name into the pocket of every customer.

In terms of car dealerships, we have over fifty dealerships within fifty miles. We are

going to approach each one individually with the intentions of attempting a bulk sale with a customized version of our product for each dealership. We also intend on contacting as many business as we can outside of that fifty miles that we believe would be interested in our product either as a promotional item or a type of business card with their business printed on it that their customers would carry with them every day. Marketing Strategy

Our marketing strategy wants to make sure that when people buy our product, they know

all profits go to the National Veterans Foundation. We believe that people want to give to veterans and we want people to know that our company is dedicated to giving as much money as we can to helping them in their time of need. Our social responsibility is to make sure that if we can help veterans to put food on the table, have a roof over their head, and give them a support line when they need it, we should do whatever we can to ensure it all happens. We plan on putting the charity at the forefront of our company.

We also want to make sure that when we sell to corporate accounts that they know

exactly how our product can benefit them. Having a fully customizable product gives us a significant advantage over any competitor and lets our buyers know that we are fully committed to making sure they get exactly what they want. We also want them to know just how important our charity is to us. Having a story to make them feel the way we feel about the charity gives us a better chance not just at a sale, but a larger sale of our product.

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We want to make connections to corporations to open up a continuous account of purchases. If we can get a few repeat customers early on in our sales period, we will have enough capital from them alone to finance the products for individual sales later. Corporate accounts will also make it extremely easy for us to make our money back and pay back not only the loan and interest, but also donate a large sum to our chosen charity.

After receiving an order for a custom product we can immediately send it to our supplier.

From there it takes only four days of processing and then another seven to fourteen days from that to get to us. That means we can have a fully customized product for any client in under three weeks. Psychographics

From both word of mouth and our survey, we have had a mostly positive attitude towards our product and what we are doing with our business. People generally see our product as something small, simple and practical that they would be interested in buying. As soon as we mention the charity however, people’s attitudes jump from interested, to invested in our product. They want the product as soon as possible and usually want multiple for family and friends. While we have no orders currently, we have standing orders from friends and family, people we have told about the product and are working on attaining corporate sales for a large quantity of our product. Competition

One of our main competitors is an online realtor that sells the same product under the name Wallet Ninja. They have a very nice online store, but an advantage we have over them is the fact that we have physical locations to sell and sell at a cheaper price if you include shipping and handling. Our two biggest competitors though are Swiss army knife and Leatherman multi-tool. They both have online stores and are in physical retailers. Our advantage is the customization for companies and coming to them with the product instead of them seeking us out. We also have the advantage not increasing pocket space. Our product slips into a wallet and does not add any bulk or clutter to your everyday carry. Our price point is also, on average thirty percent lower than a basic Swiss army knife online. It is also much cheaper than the Leatherman, as that is a more luxury version of a multi tool and we are a more affordable price.

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Why buy from Tiny Toolbox?

- Tiny Toolbox offers customizable products that allow for you to make everyone you buy from us a business card your customer carries around every day

- Tiny Toolbox donates all profits from sales straight to the National Veterans Foundation, a charity dedicated to helping veterans after they have returned from their tours

- Tiny Toolbox seeks out businesses to bring the product to them and offers it a an affordable price

- Tiny Toolbox is a great promotional item that business would buy to give out in gift bags or after a sale

Potential Expansion

We have the ability to have our product shipped to anywhere in the nation. While we

were looking into dealerships, we saw that most large cities and the surrounding suburbs have an abundance of them. Since we currently want to deal in cities that are within driving distance, we have chosen six cities for possible expansion.

1. Los Angeles 2. Ontario 3. Long Beach 4. San Diego 5. Anaheim 6. Newport Beach

Promotional Plans and Advertising

One of our promotional plans that has already been set in motion is a one dollar off

promotion for taking our survey. If they screenshot the survey they can show that to us and get one dollar off their purchase of the Tiny Toolbox. Our plan to advertise the Tiny Toolbox is to make up flyers and business cards that we can give to everyone. We also would like to take an ad out in our school newspaper, as well as attempt to contact other news outlets that would like to either do a piece on our product, or better yet our company and why we are working so hard to sell as many products as possible. We want our advertising to be about the veterans just as much as it is about the product itself.

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We are currently making designs for our company shirts that we will wear to all events that we attend, as well as putting that design on business cards, flyers, and banners. We want our logo to be simple while also letting people know what are product can do.

Events list

We have looked into events around our local area and these seem like the most promising

events. We are currently working on contacting people at all of these events in order to set up booths for selling our product.

Homecoming Weekend 2016 – October 15 Ramirez Intermediate Food Truck Festival & Vendor/Craft Fair – October 14

CMM 2nd Annual Poker Run Benefiting U.S. Vets-Inland Empire – October 15 Pomona Swap Meet and Classic Car Show - October 16 Phelan Craft Beer Festival – October 22

Oktoberfest DTLA – October 23

“On a Roll” Casino Night Fundraiser – November 4

Amber Waves of Grain – November 5

Salute: Beer for a Cause - November 12 SkiDazzle - December 2

Survey Results Our survey was designed to assist in determining consumer’s interests and pinpoints our

target market, which includes a target age group and gender identities. The survey questions covered a variety of topics, such as general information and also switched over to more personal questions. The most important questions covered opinions of our product itself. For example, we asked the consumers how likely would they be to purchase a compact multi-tool gadget the size of a credit card and what colors they would prefer to see. With the company’s mission focusing on helping veterans and their families, we found it necessary to ask questions regarding our charity, the National Veterans Foundation. We designed a series of questions about how the consumers felt about our charity and whether or not they would be willing to purchase our product knowing that we are supporters of veterans. In the end, each of our survey questions assisted in our marketing strategy.

Our company used an online form of distribution for our survey on a site called Qualtrics.

A total of 220 people, 70 men, 146 women, and four specifying no gender, participated in our survey. A total of 23% of our survey participants were between the ages of 18 and 21 and 55%

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were between the ages of 33 and higher. Based on these results, we know that a majority of our participants are either alumni, faculty, staff, or current students of the University of La Verne. Combined, 66% of our respondents said they are “neutral”, “likely”, or “very likely” to purchase a small multi-tool. Including all of our participants, 74% stated they would be more encouraged to purchase a product that supports the National Veterans Foundation compared to the 25% who stated otherwise. Furthermore, when asked about color options, black (65%) and stainless steel (63%) were the most popular amongst our respondents. In conclusion, our findings tell us that the vast majority of our respondents are potential customers.

Social Media

Our company understands that social media plays a significant part in marketing and

advertising. As a result, we will use social media to expand our communication with potential customers about our product and the events we will be attending. Our marketing department has created several social media accounts including Facebook, Instagram, and Twitter in order to stay connected and promote our product. We have created hashtags like #tinytoolboxulv and #handymanulv so customers are able to interact with our marketing team and see what plans we have coming up. Furthermore, we will be making our accounts visually attractive to customers by adding pictures and tutorials on how to use your Tiny Toolbox. Sales Projections Period

Every time we are selling our product, either at an event or online, we will always have some members of our group walking around presenting our product, or in standby prepared to answer any questions or doubts our customers have. Our members will constantly be showing

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around the product, and customers will be more than welcome to ask questions and to try the product out. In This 10 weeks of projection order, our team will do the best to sell as many as possible.

Our first order is going to be a small amount to 100 units to see how well Tiny Toolbox sells. Our first opportunity to sell will be at the University of La Verne. Most Likely Sales Projection In Tiny Toolbox most likely scenario, we will sell 700 toolboxes for 10.00$ each with a revenue of $7,000, which would allow us to pay back the loan and donate quite a lot of money to the Veterans. This projection is based on calculations and estimates between events, opportunities, hours of labors and special days. We don’t have a specific average, because we expect to sell different numbers of units sold based on different events and holidays.

Best Sales Projection

In the best case scenario, we are hoping to sell 805 units, which is a 15% more of our most likely scenario. To achieve our best projection, we can rely on our corporate accounts to help us sell our units to more people in different places, we have contacted some local car dealerships and began making connections between our businesses. We managed to have online accounts as instagram and facebook, where it may help us too after we start posting our products. Lastly, individual selling is going to help us reach our best projection too, through personal connections that each member has, each of us could definitely be able to sell many more Tiny Toolboxes to friends, families, and neighbors.

Worst Sales Projection

In the worst scenario, we may only be able to sell no more than 600 units, which is 15% less than our Most Likely projection. This may be caused by events fail, where they cancel on us, or the price of the costs exceeds our expectations. In this case, we will definitely try to reach

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other events to fulfill our missing ones, so that we could reduce the worst as much as we could. A lot of unexpected reasons might happen, however that does not mean we are not prepared.

Weekly Sales Report

Every week we will use different strategies and methods to sell the product, so that in this

10 weeks, we used all the possible ideas to successfully sell as many as we can. Sales Strategies

Most of the time we will use booths at various events and at school (crowded spaces).

We also have a lot of sources that could help us sell our product in their provided locations too, or to groups or people that may need our product (corporate sale). We are also contacting people with experience in website building to create a platform that allows customers to purchase our product online.

Capital Budget

The total funding request is for a $2,500 loan for a period of 10 weeks, The following

calculations are estimates and assumptions that will allow Tiny Toolbox to conduct its operations. The funding proceeds will be used as follows:

T shirts $120 Business cards $20 Table cloth $20 EZ UP $75 Travel $80 Inventory $833 Working Capital $1,352 Total $2,500 Tiny Toolbox plans to market its product with great effort which will include the

production of business T shirts for about $140. There are 6 team members in total with shirts averaging to about $5 to $20 each.

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The company intends to order approximately over 200 business cards estimating to be $20. These business cards will play an essential role to getting our customers to recognize our business. A table cloth will also be utilized for rented table booths which will be $20. Throughout several events, table booths will be rented. In addition, the company will be using an EZ UP for $75.

Travel expense will add up to $80 given the amount of shows and events attended. There are currently 12 events planned and the distance will determine how much gas we will need to travel to such events.

Ordering a large quantity of our product will require a packaging fee. We have concluded that shipping will cost up to $86 per 300 units of inventory ordered.

Since all of Tiny Toolbox’s transactions is going to be through The Square, a small fee will be charged each week based off our ending cash balance for the week, the square fee, 2.75%, and our credit sales.

As for interest, prime rate is 3.5% plus a spread of 2 which will amount to 5.5%. With this as our interest rate, our calculations estimate a $2.64 deduction each week. Use of Proceeds

Over the 10 week period, weekly sales forecasts generate $4,674 for Tiny Toolbox. We plan to donate all of our profits to the National Veterans Foundation. The profit will be a real achievement in helping veterans get the support they need. The proceeds will help them benefit by giving them food and resources they need in order to live the life they destined for themselves.

After week 3, the company will start paying the interest of loan back for a 6 week period The sales projections will meet the demand of the loan payment needed to be made each week. The company seeks to make 2 payments of $500 in weeks 4 and 5. In weeks 6 and 7, we plan to make 2 payments of $450. In week 8, we will make a payment of $350 and in week 9 we will make a last payment of $250 to cover the full loan. Financing Sought

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The requested loan amount Tiny Toolbox plans to start its company on will be $2500. We plan to use this budget immediately for marketing expenses. The majority of marketing expenses will only be purchased once, therefore we aim to spend $285. Our total traveling expenses estimate to be $80 based off the 12 events planned.

Inventory will be order three times over the course of the ten weeks. We plan to sell 700 units and in the first week, our order quantity will be about 200 plus the shipping cost, $1.18. The company will have purchased $238 in inventory up until week 3. We will purchase $357 of 300 units of tiny toolbox for a period of 3 weeks. Our last order of inventory amounts to $238. The loan will also be used for extra expenses such as interest of the loan, the Square fee, and SGA fee.

Financial Projections

The financial projections for this company will be presented in three scenarios: most

likely, best, and worst. Tiny Toolbox will demonstrate it’s plans for sales projections, revenue, and expenses on the income statement, statement of cash flows, and balance sheet.

Most Likely

With a budget of $2500, Tiny Toolbox has forecasted sales projections upon a few

factors. We decided to base projections on a weekly basis for 10 weeks in order to determine the financial status of our business in terms of revenue and expenses. These will be our projections assuming we have received the funding and will be fully operational.

Revenue for week 1 should be relatively low to about $200 given the small amount of

time for funding and for starting our operations. Out of pocket purchases will most likely occur, therefore, leaving the business unable to order its destined inventory leaving the business with low product to sell. Week 1 forecasts a total units sold of 20 and expenses are expected to be high. Since Tiny Toolbox is a start up company, many of the purchases will be made directly toward marketing. Expenses are expected to exceed revenue.

Week 2 predicts its revenue to be 6 times more than week 1 due to the large event we will

be attending, Homecoming. With a large population of alumni and students, we forecasted we would sell 120 units resulting in $1,200. The source of the highest expense will be the SGA expense and we planned travel expenses that week for $25. The Square fee will also add up to $9.90 since our credit sales will most likely be high.

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In week 3, our revenue will drop to $900 and since the previous week was filled with a

massive event, this week we don’t plan on selling as many units. We will be making an order of 357 units and because we have no extra expenses other than the SGA, interest, and the Square fee, expenses are low and revenue is high. However, the only major expense will be SGA.

For week 4, our company forecasted projections to be high equaling to 100. Since the

previous week’s sales were lower, we believe with the events planned during this week will boost our sales. The events will allow Tiny Toolbox to increase its revenue to $1,000 by having exposure to a wider market and more people. Expenses are expected to remain low and is limited to the SGA fee for $150.

The fifth week’s predictions for revenue will be $800. Given that Halloween is near this

week, it will be an advantage to sell a fair amount with the help of Halloween events. With high projections from the previous week and no planned events,we will still have a traveling expense of $15. The source of expenses here is SGA.

Week 6 will earn a revenue of $900. The units sold this week will be consistent with the

previous week because there are not many events. This week also does not consist of major expenses other than traveling for $15. We aim to still travel to other locations in order work hard to sell.

Our revenues will be decreasing throughout the next few weeks given the remainder of

time and units we still have to sell. Tiny Toolbox predicts its revenue to add up to $600 for week 7. There are only a couple of events we will be attending which should influence our sales. With no expenses this week other than SGA, the largest expense, and the Square and interest fee, we will have a gross profit of $529.20.

Revenue is predicted to be $400 for week 8. In this week Thanksgiving will take place

meaning team members will be spending more time at home with family preparing. Therefore, we know we will sell a low amount of units, but the benefit from this is that there are no marketing expenses to be made. The same expenses of interest, the Square, and SGA are still considered.

Our financial projections for week 9 conclude our revenue will estimate to $600. The

company’s expenses are still limited to interest, the Square fee, and SGA, which is also the

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highest source calculating to be about $90. Since this is the second to last week to sell, our goal is to sell 60 units.

Tiny Toolbox will be generating a revenue of $400 for the last week. We do not want to

take chances in selling too many since it is the last week. We believe 40 units will be sold and the only expenses to be made this week are the SGA fee and interest.

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Best

With a budget of $2500, Tiny Toolbox has forecasted sales projections upon a few factors. We decided to base projections on a weekly basis for 10 weeks in order to determine the financial status of our business in terms of revenue and expenses. These will be our projections assuming we have received the funding and will be fully operational. In the Best case scenario, we are hoping to sell 806 units, which is 15% more than our most likely scenario. To achieve our Best projection, we can rely on our corporate connections to help us sell our units to more people in different places. Lastly, individual selling is going to help us reach our Best projection too, members may be able to sell our products to friends or relatives during week days.

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Worst

With a budget of $2500, Tiny Toolbox has forecasted sales projections upon a few factors. We decided to base projections on a weekly basis for 10 weeks in order to determine the financial status of our business in terms of revenue and expenses. These will be our projections assuming we have received the funding and will be fully operational. In the Worst scenario, we may only be able to 612 units, which is 15% less than our Most Likely projection. This may be caused by failed events, where they cancel on us, or the price of the costs exceeds our expectations. A lot of unexpected reasons might happen, however that does not mean we are not prepared. Annual Projections

2017- $24,668 2018- $28,368

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The forecasted annual projections for Tiny Toolbox in 2017 amounts to $24,668. Assuming the Most Likely scenario, within a three month period our gross profit adds up to $6,167. Given the period will be twelve months, we believe our annual projections will be four times that amount.

In 2018, the company forecasted its annual sales projections to estimate to $28,368. We

predicted Tiny Toolbox will increase its sales by 15% as a result of gaining corporate sales. The company’s prosperities have also relied on planned events with a large portion of our target market.

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