The Pull Out Corporation`s Business Plan

Transcription

The Pull Out Corporation Business Plan
The Pull Out Corporation
Business Plan
Company Website: www.thepullout.com
1
Confidential
Contact Geoffrey S. Miller 267-250-8144 [email protected]
Disclosure Document:
The Pull Out Corporation’s Confidentiality Agreement
The undersigned reader acknowledges that the information provided by ________________ in
this business plan is confidential; therefore, reader agrees not to disclose it without the express
written permission of ____________________________.
It is acknowledged by reader that information to be furnished in this business plan is in all
respects confidential in nature, other than information which is in the public domain through
other means and that any disclosure or use of same by reader may cause serious harm or damage
to ________________________.
Upon request, this document is to be immediately returned to _______________________
_______________________________________
Signature
_______________________________________
Name (typed or printed)
______________________________________
Date
This is a business plan. It does not imply an offering of securities.
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Confidential
Disclosure Note:
This business plan has been prepared by The Pull Out Corporation. It is being
furnished solely for use by prospective institutional or private investors considering
investment in the Company. This business plan is proprietary and CONFIDENTIAL and
may not be redistributed or reproduced, in whole or part, or used for any other purpose by
any other person at any time, without the express written permission of The Pull Out
Corporation. If you choose not to investigate the financing further, please return this
business plan and any copies to The Pull Out Corporation. This business plan is intended
to assist interested parties in making their own assessment of The Pull Out Corporation,
is not and does not purport to be all-inclusive or to contain all the information that a
prospective financing source may desire and is not intended to replace a due diligence
review of the Company. Nor is this business plan intended or submitted as a prospectus
offering circular, or private placement memorandum. The Pull Out Corporation makes no
representations or warranties as to the accuracy, validity, or completeness of the
information in the business plan. The information contained herein is not a commitment
or representation as to the occurrence of any future events. The information presented in
the business plan is subject to errors, omissions, and changes, and is subject to
withdrawal. This developmental stage business has all of the risks associated with any
start-up business developing a new product. There is no assurance that the product can
be designed or manufactured as planned and for the costs estimated. There is no
assurance that the product is marketable at the price required for the Company to make a
profit, or that the Pull Out will be accepted by the marketplace. The investor risks losing
his or her entire investment.
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Contact Information:
Mr. Geoffrey S. Miller, President
The Pull Out Corporation
2429 Bryn Mawr Ave.
Ardmore, Pennsylvania 19003
Web Site www.thepullout.com
Company Contact: Geoffrey S. Miller
Phone: 267-250-8144
E-Mail: [email protected]
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Table of Contents:
Front Page…………………………………………………………..1
Confidentiality Agreement…………………………………………2
Disclosure Note…………………………………………………….3
Contacts/Web Site………………………………………………….4
Table of Contents…………………………………………………..6
Product Description………………………………………………..7-- 8
Product Photos……………………………………………………..6-- 19
Executive Summary……………………………………………….10-- 11
Management……………………………………………………….12
Company Overview……………………………………………….13
Marketing Plan…………………………………………………….14-- 16
Current Status……………………………………………………..16
Financial Overview……………………………………………….16, 17
Tables……………………………………………………………..10-- 17
Graphs…………………………………………………………….17
Future Products/Patent Protection………………………..............14
Marketplace Today……………………………………………….18-- 19
Marketplace Tomorrow…………………………………………..20
Structural foam plastic units……………………………………...21-- 22
Other Pull Out Units………………………………………………23--39
Notes………………………………………………………………39--40
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Tool Pull Out unit:
The Product
The Tool Pull Out Unit out of the pick- up truck ready for work at the jobsite.
Step 1
Step 2
Step 3
Step 4
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Product Description:
The Pull Out is a mobile tool/utility box. It is fully removable, completely, portable and
height adjustable; in short, a dynamic work station! It fits into the back of a pick-up
truck or van and when removed, stands on legs and wheels which lower to the ground
either manually or electrically. The unit is comprised of the shell – the basic structure
that serves as the shop work facility, work surface and workshop. The basic shell has the
tool mounting and storage provisions. The legs, with wheel assemblies, are necessary to
make the shell free standing of the host vehicle and thus integral to The Pull Out. The
Pull Out can be equipped with a complement of power tools, selected by the user, which
can include but is not limited to a table saw, miter saw, drill press, and grinding wheel. A
compressor is available for powering pneumatic tools. An electric generator is optional
for work sites where public utility power is not yet available. The lights are stored inside
the unit, may be mounted for evening or night work. There is space in the unit for storing
hand tools and hardware. Convenience items, such as a coffee maker, radio; even a
microwave oven can be installed. The unit is designed for transport in pick-up trucks and
vans from which it can be easily loaded/unloaded by one person. The Pull Out will do
for the blue collar industry what the laptop/cell phone/fax has done for the white collar
sector for business. The Pull Out unit is the contractors “laptop”- allowing better
organization and increased productivity and therefore increasing profits!
The Tool Workshop Pull Out Unit
View No.1
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What the Pull Out can do for you:
The Pull Out provides today's contractor, carpenter, mechanic, or general pick-up truck
user with the ultimate utility box: A utility box that moves easily on and off the pick-up
truck in minutes. This frees up the pick-up truck for other uses. It can be outfitted for any
trade or profession. We are proud to be the only company to offer contractors and
handymen a portable toolbox/workstation that addresses productivity. This exciting new
product is truly a jobsite revolution that will SAVE HOURS of set up and take down
time per week! We want to be your partner in profitability by freeing up time to allow
contractors to bill additional jobs every month. This portable, ultimate, loadable,
lockable, operational utility toolbox will continue to pay for itself over and over! The Pull
Out is the ultimate in tool management!
ViewNo.2
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View No.3
View No.4
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Executive Summary:
The Pull Out Corporation (the “Company”) has been formed to develop, fabricate, and market new products to assist in increasing worker productivity and thus revenue and
income.
The Company’s first product is the Pull Out, a mobile workbench/shop intended for use
by contractors, carpenters, and the construction trades. The Pull Out can be equipped
with a complement of power tools, selected by the user. It can also be equipped with an
electric generator for sites where public utility power is not yet available. Lights can be
stored inside the Pull Out, to be mounted for evening or night work. There is space in the
Pull Out for storing hand tools and hardware. Convenience items such as a coffee maker,
radio, even a microwave oven can be installed. The Pull Out is designed for transport in
pick-up trucks and vans, from where it is easily unloaded by one person, to stand on its
own drop-down, adjustable-height legs with wheels – for easy positioning at the job site.
Mr. Geoffrey Miller conceived and patented the Pull Out, and constructed a full-scale,
working, advanced development model. The Pull Out patents, both United States and
foreign, are the property of The Pull Out Corporation. The Pull Out has reached the level
of maturity where it is ready for full scale production once the mold has been cut. Our
manufacturing partner will hold the mold for production; while The Pull Out Corporation
retains ownership of the mold. We will need $5 million in funding. These funds will be
allocated according to the use of proceeds table No.7 on page 17 of this plan.
The following table summarizes the sales and earnings projections for the first three year
period for The Pull Out Corporation.
Table 1 Summary Income Projections:
The Pull Out Units
Sales
Cost of Sales
Gross Profit
Year 1
1,300 units
$3,900,000
$1,300,000
$2,600,000
Year 2
2,720 units
$8,160,000
$2,720,000
$5,440,000
Year 3
3,980 units
$11,940,000
$3,980,000
$7,960,000
Total
8,000 units
$24,000,000
$8,000,000
$16,000,000
The completion of the Tool Workshop Pull Out mold establishes full production
capability.
The Company will use, as described in the business plan, a combination of strategic
marketing and tailored systems engineering techniques for the final product development.
This approach imposes discipline on the creative process. The engineering techniques
are tailored to utilize only those elements that are essential to:
1. Develop a product which will meet the needs of the marketplace.
2. Manage the costs of the process
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3. Manage, thus minimize, the project risks
While functionally the Pull Out is innovative, its implementation is based on the
Company selecting well established technology – both for materials and fabrication – to
keep the development costs and risks to minimum levels.
The company will concentrate its initial efforts on developing and introducing the
carpentry/construction model of the Pull Out based on initial indications of high appeal
(at trade shows) and potential market size. The concept, however, is readily transferable
to other applications that have similar needs. These include electricians, utility
companies, the catering industry, and perhaps even flea market aficionados. Another
significant derivative is the institutional Pull Out-sized to fit elevators and hallways and
configured to the needs of the institution, whether a hospital, school/university, office, or
apartment complex. An additional class to be researched is the emergency response Pull
Out, outfitted to deploy support to rescuers in either natural or man-made disaster
response. By the time the first model enters the marketplace, the Company will have
conducted sufficient market studies to select the second Pull Out application for design
and engineering. The timing of introducing derivatives of the carpenter model will be
influenced by the sales rate-and therefore cash flow and profitability – of the carpenter’s
model. Long term plans are for The Pull Out Corporation to introduce a series of
derivatives – a family of products – followed by other carefully selected innovative
products.
The initial market for the Pull Out is the United States and Canada, and ultimately, the
industrialized world. The Pull Out marketing will first focus on contractors, carpenters,
and construction workers who currently own pick-up trucks, over 4,400,000 in the United
States, as the principal target. Various other users, who operate vans as individual or
business fleets, are additional potential customers who, for reasons of conservativeness,
are not part of the plan projections. Based on our three year projections of eight thousand
units – translates to a market share of less than two-tenths of one percent of the allied
trade market alone. Our projections show breakeven with – full recovery of startup costs
– at 2,720 units sold. This conservative estimate will achieve break-even in less than two
years. Substantial profitability will be reached prior to the completion of year three.
The Pull Out Corporation has selected a management approach consistent with the need
to contain development and launch costs and minimize risks.
What makes us so confident about success? The Pull Out is a generalized/specialized
transport and utility work box. It is portable and it goes anywhere. One person can load
and unload the unit. It saves time and money by providing improved access and
convenience while enhancing productivity. Its use also helps to prevent the loss of tools
and equipment by making it easy to see where items are missing and by providing
compartmental storage for other items. In addition, it frees up the truck for other uses.
The Pull Out satisfies the needs of the entire allied trade market by offering a time
management solution that will save hundreds of hours annually- thus allowing significant
increases in profitability.
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Management:
Mr. Geoffrey Miller; the founder of The Pull Out Corporation, invented and patented the
Pull Out. His extensive engineering background has been honed by his hands on design
philosophy. Mr. Miller has the unique ability to take an idea from conception or theory,
build a model which then evolves into the working prototype. Mr. Miller then applies
market needs and innovations to the prototype and transforms it into a precisely
engineered, production ready product. His extensive knowledge of manufacturing
processes and logistics will enable him to preside over the The Pull Out Corporations day
to day operations. Mr. Miller will work with our manufacturing partner to assure that our
product meets the specifications and needs of the end user and is readily available to
satisfy our retail partner requirements.
The Pull Out Corporation at a glance:
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
Date founded 1998
Type S Corporation
Owner Mr. Geoffrey S. Miller
Stock ownership 100% Mr. Geoffrey S. Miller
Company debt 0%
Company Assets R/D shop, Patents, Product inventory & office
Patent firm Akin Gump Strauss Hauer & Feld LLP.
Company bank account. 5,000.00 cash
Personnel money into The Pull Out project 1,200,000.00 to date
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Company Overview:
The Pull Out Corporation (the “Company”) was established to develop and market new products that increase worker productivity. The Company developed The Pull Out –
configured for the contractor/carpenter/construction trades – as its launch product. Future
Company products, after launching The Pull Out and recovering developmental costs,
will be selected from a series of possible derivatives that employ similar concepts, thus
creating a family of products. Additional products may be developed through the
acquisition of licenses for other devices with suitable market characteristics.
Mr. Miller owns the Company’s patent rights and its registered trademark. The Company will provide copies of the Patents and Registered Trademark upon request.
The U.S. is a huge truck market. There are currently some 50 million pick-up trucks
operating in the U.S. Within this total, approximately 4.4 million pick-up trucks are
employed in the contractor/carpenter and allied trades market. It is the latter market that
the Company will initially target. This market includes construction, repairs, and
maintenance in both commercial and residential markets.
The Company has evaluated numerous rates of market penetration. At a 1% penetration
into pick-up truck market as a whole we are looking at 500,000 units sold. As little as
.02% (two-tenths of one percent) penetration into the pick-up truck market translates into
10,000 units. Certainly attainable considering our patented and unique product is the
only one in its class to address productivity and increased earnings for the end user.
Table 2
Potential Market Penetration
Market %
100%
1.0%
0.50%
0.25%
0.06%
0.03%
0.02%
Pull Out Units Sold
Trucks Remaining
Wholesale Sales
0
500,000
250,000
125,000
30,000
15,000
10,000
50,000,000
49,500,000
49,750,000
49,875,000
49,968,750
49,984,475
49,990,000
0
$1,500,000,000
$ 750,000,000
$ 375,000,000
$ 90,000,000
$ 45,000,000
$ 30,000,000
In looking at the total market potential; a sales penetration of two tenths of one percent generates
approximately $30 million in sales with gross profit projected at $20 million.
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Future Products:
Future Company products presently envision the application of The Pull Out concept to
other trades and businesses where an efficient and safe mobile work environment would
enhance productivity. The applications are far reaching, but not limited to the following.
Table 3 Other Markets
heavy construction
home improvement
emergency response
storage
landscaping
sports
catering
fire fighting
paramedics
utility companies
flea markets
plumbing
retail kiosk
municipal
travel/vacation
mobile triage
Dr’s w/out borders
disaster relief (FEMA)
Patent Protection Barriers to Entry Competition:
The Company has been granted patents that cover all major components and
methodology of the Pull Out. In addition, The Pull Out is a Registered U.S. Trademark.
The Company considers this protection, as a major barrier to entry for potentially
competitive firms. The Pull Out’s capability of establishing a mobile workshop,
equipped with tools, power, and a working surface, while releasing the pick-up truck for
other uses is unique with no other competition. The three companies that attempted to
duplicate the Pull Out, infringing on its patents, were successfully issued cease and desist
orders.
Marketing Plan:
The Company will first introduce the Pull Out through key retail partners that cater
specifically to the allied trades like Home Depot, Lowes, 84 Lumber, Canadian Tire and
others. The Company will also sell The Pull Out to retail that caters to the truck
accessory market such as Pep Boys, truck dealers and independent truck customization
companies. The Company will offer consumers an incentive of five hundred dollars in
Tool Money™ that can be spent in the retail location where they purchased The Pull Out
(this will be tied to the successful execution of the warranty card). Prior to the release of
The Pull Out, the Company will distribute press releases to ALL tool manufacturers’
sales and marketing executives making them aware of our product and the significant
increase in Tool Money™ that will be available in our retail partners. This allows them
lead time to create and market their “Pull Out” line of tools in order to capture a larger
share of the Tool Money™.
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Table 4
Key retail
Table 5
Marketing partners
COMPANY
LOCATIONS
MANUFACTURERS
Home Depot
Lowes
Pep Boys
Sears Holding Corp
HD Supply (White Cap Supply)
Canadian Tire
Woodcraft
Sutherland Lumber Co
Tractor Supply Company
84 Lumber Company
Ace Hardware Corp.
RONA Inc
Home Hardware Stores
McCoy's
Northern Tool & Equipment Co
TruServ Corporation
Do It Best Corp
2200
1450
592
3800
200
468
80
67
738
475
5000
500
1000
85
62
7000
4300
Ryobi
Hitachi
Black and Decker
Porter Cable
Milwaukee
Dewalt
Bosch
Delta
Makita
Dremel
Craftsman
Grizzly
Jet
Powermatic
RIDGID
Skil
Tradesman
Shopsmith
Husky
Rockwell
The excerpt below was taken from Lowe’s 2006 annual report. This is an example of just how
big the tool market is as a line item for Lowe’s alone (over $2.5 billion).
Lowe’s Sales Table 6
Lowe’s Companies, Inc.
Sales by Product Category (Dollars in millions)
Appliances
Lumber
Flooring
Millwork
Paint
Building materials
Tools
Lowe’s 2006 Annual Report
Total Sales %
Total Sales %
2006
2005
$ 4,193 9%
$ 3,912 9%
3,690 8
3,689 9
3,214 7
2,883 7
3,137 7
2,935 7
3,073 7
2,774 6
3,002 6
2,756 6
2,563 5
2,428 6
Total Sales %
2004
$ 3,165 9%
3,305 9
2,357 6
2,428 7
2,317 6
2,230 6
2,138 6
The following illustrates how The Pull Out Corporation will be able to control the toolbox market
and tool innovation while building a brand so strong it will virtually prevent competition from
entering the market.
In offering an incentive to the end user of $500 in Tool Money™ to be used at the retail location
where they purchased the Pull Out, we are giving our retail partners an opportunity to up-sell the
customer into purchasing more tools.- thus earning profit on the Pull Out, the initial $500 in Tool
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Money™, and the additional sales generated from up-selling. This is sure to please the Pull Out
buyer and our retail partners.
There will be several opportunities created for our marketing partners (tool manufacturers). First,
the manufacturers will scramble to figure out how they may be able to get Pull Out customers to
spend the majority of the Tool Money™ on their tools. Second, in allowing them to use the “Pull Out” name to be associated with tools that fit into the Pull Out: this will entice them to market a
“Pull Out” line of tools. Most importantly as a whole, this will provide a long awaited
opportunity for manufacturers to design new product lines that are built for the Pull Out. This
will associate their tools with productivity and increased profitability for the end user that, of
course, will own a Pull Out.
Our Current Status:
The Company has selected an award winning, state of the art plastics manufacturing
company that specializes in low pressure injection molding of structural foam and
structural web resins. Horizon Plastics has been a reliable pioneer in the field of custom
molded quality structural foam products since 1972. Their modern plant has indoor rail
and truck facilities that ensure safe, cost effective product handling, and has the best
distribution network in the business. In addition, their manufacturing capabilities will
allow them to mold, assemble, bar-code and shrink wrap 500 units per day/7 days a week.
This capability will allow us to have a virtual on demand inventory.
We are fine tuning our design measurements for the six molds. Machining the molds will
come with a significant up front cost, but will allow us to manufacture nearly two million
units before it needs to be refurbished.
The Company has also been in the process of promoting our tool Pull Out to several key
retailers and tool manufacturers creating enthusiasm for our spring release. In addition,
we are beginning to plan our trade show attendance which will start with the National
Hardware Show in Las Vegas. The Hardware Show will allow us the opportunity to
grow our retail base nationally and lock in tool manufacturers for designing their “Pull Out” lines. Our goal is to lock out any future competitors from entering the market by creating a brand that is synonymous with quality tools and productivity. Thus positioning
The Pull Out – with its unique design, customized features, assortment of compartments
and flexibility in the field – as the latest advance in productivity improvement under the
buyer’s control.
Financial Overview-Capital Requirements:
The Company has prepared financial projections for three years (see Table 1). The
projections are based upon selling the Pull Out at its wholesale price of $3000. The Pull
Out can also be outfitted with a complete line of accessories to be determined post
production. However, a great deal of planning has gone into the design to allow
universal attachment of accessories. Initial sales for the first three years of operations are
forecasted at $24 million, with a resulting gross profit of $16 million (see Table 1). The
Company’s net profit will remain significantly higher than that of comparable companies 16
Confidential
due to the ability of our manufacturer to handle on demand production of inventory,
logistics and short term warehousing.
The Company is currently looking to borrow 5 million dollars. The proceeds are to be
allocated accordingly.
Use of proceeds Table 7
Percent of Funds
25
10
5
20
5
5
5
25
100
Molds
Marketing
Trade shows
Operating income
Payroll
R&D
Insurance
Loan repayment
Total
Table 1 sets forth summary income projections:
The Pull Out Units
Sales
Cost of Sales
Gross Profit
Year 1
1,300 units
$3,900,000
$1,300,000
$2,600,000
Year 2
2,720 units
$8,160,000
$2,720,000
$5,440,000
Year 3
3,980 units
$11,940,000
$3,980,000
$7,960,000
Total
8,000 units
$24,000,000
$8,000,000
$16,000,000
Graph 1
$25,000,000
$20,000,000
$15,000,000
Sales
$10,000,000
Cost of Sales
Gross Profit
$5,000,000
$0
Year 1 Year 2 Year 3
Total
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The Toolbox Marketplace Today:
Included on this page are several types of
toolboxes/worktables that can be hauled
to, and used at the job site. This is what is
currently available to today’s contractor.
Storagemaster Rolling Work Bench:
This is a fine workbench that has wheels
and storage and is extremely durable.
Although the wheels give it the ability roll
around on flat surfaces, it is extremely
heavy. The weight of this particular item
makes it difficult to load into a pick-up
truck, empty, with several strong men.
Forget moving it off a truck when it is
fully loaded.
Knaack Storagemaster HD Rolling Work Bench
Model 59
Knaack Model R-72 Portable Work Table
Portable Work Table: This can be
unloaded from a pick-up truck by one
person even though it is heavy. It is
durable enough to be slid off the truck and
onto the ground but this creates many
safety issues.
Classic Chest: Similar to the JOBOX on
the following page. Both items offering a
secure storage bin to be left around at a
job site, but are little more than that.
Extremely heavy, requiring several people
to move it empty and when full, the tools
are stacked onto one another. Wheels are
available at an additional cost but it does
not address transporting to and from the
job site.
Knaack Classic Chest
Model 3068
Knaack 6" Caster Set
.
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The JOBOX Heavy Duty Steel Vault:
exactly what they say it is, a heavy steel
vault. It is an excellent place to store tools
once at the jobsite. Due to the excessive
weight empty you always have to bring your
tools to the box not your box to the tools.
Should you need to go to a site other than
where your tools are you have to make time
to go to the site where your JOBOX is to
retrieve tools.
JOBOX 72" Long Heavy-Duty Steel Chest
with Site-Vault™ Security System
The tool boxes to the right are what is
currently available to the contractor and are
considered to be today’s standard. This type of toolbox can be easily transported to
and from the job site but are attached to the
truck and have little to offer in terms of
increasing productivity.
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Productivity Marketplace of Tomorrow:
The future contractor will need to be more mobile, organized and productive in
their increasingly competitive industry. They will need to gain the advantage of
being able to arrive on the jobsite unload, set-up, and begin working in a fraction of
the time it currently takes them. The Pull Out satisfies each and every one of these
needs. The Pull Out means business for the 21 st century contractor.
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Structural foam plastic unit front view:
Plastic tool workshop unit
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Structural foam plastic unit back view:
Plastic tool workshop unit
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Other Pull Out Units:
Stainless steel center door hydraulic unit
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Stainless steel flat table manual unit
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Center door electric unit
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Center door electric unit
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Side door electric unit
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Side door manual unit
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31
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Center door manual unit
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Center door manual unit
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34
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Tool workshop pull out unit
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37
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Stainless steel flat table pull out unit being used for plants
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Notes #1:
39
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Notes #2:
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The Pull Out Corporation`s Business Plan

Transcription

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