Business Plan

SECTION IV: THE ECONOMICS OF THE BUSINESS

A. Revenue Drivers and Profit Margins

In ForeFinder’s five years of operation, the company’s revenue driver will be the sales of its RFID golf balls and RFID reader.

| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |

Balls Unit (pack of 3) | 43248 | 43968 | 44408 | 44,851 | 45300 |

Balls Selling Price | $60 | $60 | $60 | $60 | $60 |

Total Revenue of balls | $2,594,880 | $2,638,080 | $2,642,880 | $2,648,280 | $2,654,280 |

Reader Units | 3128 | 1,828 | 900 | 808 | 1,352 |

Reader Selling Price | $399 | $399 | $399 | $399 | $399 |

Total Revenue of readers | $1,248,072 | $729,372 | $359,100 | $322,392 | $539,448 |

Total Revenue | $3,842,952 | $3,367,452 | $3,001,980 | $2,970,672 | $3,193,728 |

ForeFinder’s revenue will fluctuate over time because of its product mix. Because RFID readers have a long-term lifespan and quality level, golf courses will only need to purchase this product once. RFID golf balls have a lifespan of one year due to battery life. Beginning in Year 2, ForeFinder will launch its corporate website to facilitate online retail. This will cause sales to increase during that year. In general, after the first year, golf courses will purchase fewer golf balls only to replace defective products or meet increased customer demands. The variety in life span of ForeFinder’s products will cause revenue to fluctuate throughout the business years.

B. Fixed & Variable Cost Structure

The charts below represent ForeFinder’s fixed and variable cost:

Fixed Cost

| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |

Rent | $25,600 | $38,400 | $38,400 | $38,400 | $38,400 |

Utilities | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 |

Executive Salaries | 150,000 | 150000 | 150,000 | 150,000 | 150,000 |

Legal Fees | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 |

Insurance | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 |

Shipping, Travel and Distribution | 38,000 | 40,000 | 45,000 | 50,000 | 55,000 |...