Note:  You'll find a Small Business Resource and Service Guide in the next section of this policy manual with specific agencies that can be of assistance in establishing a small business or self-employment.

A copy of both the policy and procedure/resource packet should be given to the client at the beginning of the vocational process if considering self-employment. Those things in the policy must be followed so you need to review that with each client.

Background Information

The language in the Rehabilitation Act Amendments of 1998 regarding self-employment, telecommuting, and establishing a small business makes it clear that Congress intends these employment outcomes to be available in assisting individuals with disabilities to obtain employment opportunities consistent with their strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.

The Rehabilitation Act Amendments of 1998

There are two sections of the Act, as amended in 1998, where self-employment, telecommuting, and establishing a small business are cited as appropriate employment outcomes.

The first instance is at §7 (11) (C), under the definition of an employment outcome:

The term "employment outcome" means, with respect to an individual

(C) Satisfying any other vocational outcome the Secretary may determine to be appropriate (including satisfying the vocational outcome of self-employment, telecommuting, or business ownership), in a manner consistent with the Act.

The following are working definitions selected by MCB to help frame an understanding of these terms.

Self-employment is anyone who creates his/her own earnings and opportunities in the form of a business, contract work, or freelance activities.

An example of this type of employment is an individual that runs an on-line business selling items through e-Bay. There is an example business plan that reflects this type of business included in this information.

Telecommuting, as defined by Michael Antoniak in The 21st Century Entrepreneur: How to Start a Home Business, is: "…someone provides services by computer or telephone for an outside employer." Telecommuting is an employment option for an employee of another business; it is not self-employment and is not a small business.

An example of this type of employment is the individual who works for a large corporation such as XYZ Software Company and uses current electronic devices such as the computer to access work from home but are on the payroll of that company.

Small Business is "…independently owned and operated and not dominate in its field. Depending on the industry size, standard eligibility is based on the average number of employees for the preceding 12 months or on sales volume averaged over a three year period". Workforce Development Guidelines, Section 2.4500 .

An example of this type of employment is an individual that has a leather goods business that is made and run from the home. There is an example business plan that reflects this type of business included in this information.

The second instance is at §103 (a) (13), among the vocational services to be provided under the Act:

(13) Technical assistance and other consultation services to conduct market analyses, develop business plans, and otherwise provide resources, to the extent such resources are authorized to be provided through the statewide workforce investment system, to eligible individuals who are pursuing self-employment or telecommuting or establishing a small business operation as an employment outcome.

Pre-Plan Stage

The following steps are assessments of client's skills, experiences, training, etc. that have been found important for successful operations of a small business. Results of these assessments could be an indication of client's strengths and weaknesses as it relates to readiness to operate in a small business. These assessments are available to the counselor for use, based on their professional judgment of the needs of their specific client. It is recognized that few clients would have positive results in all of these assessments. Indication of any possible weaknesses does not mean that the client is not a potential candidate for owning and operating their own business, but rather may indicate the need for the client and counselor to discuss what rehabilitation activity should take place and be included in the IPE to address this.

§ Determine Eligibility by establishing the visual impairment & any other barriers to employment & how our services can benefit

§ Establish that the client has the personal skills to be able to operate a business, to be established through MCB (Rehabilitation teaching #6) assessment form.

If the client lacks certain skills, then it needs to be established how the client will either get the appropriate training or will have someone else take care of that necessary skills, ie. meal preparation, clothing care, etc.

§ Letter of Intent from client to MCB VR Counselor (* resource packet # 1)

- What kind of business does he/she desire to own?

- Why does he/she desire to own this type of business?

- What commitments of time and money is he/she able to give the business? What about time commitment to training, if needed to operate in the business?

- What previous experience does he/she have that would support operations of his/her small business?

§ Research and job shadow three people in the same type of small business or self-employment position.

Ask at least three questions: (* resource packet #)

1. What do you like about this type of work?

2. What do you dislike about this type of work?

3. Who else should I talk to about this type of work?

Add a mentoring statement in IPE or separate release on agreement with client to assist other future MCB self employment candidates statewide.

§ The client should watch MCB Small Business/Self-Employment Video and Give ‘Em the Pickle video and read the book by Deborah Kendrick on Small Business Owners as well as Self Employment: Steps for Vocational Rehabilitation Counselors

(* resource packet #)

§ Complete & Review the Business Assessment Scale** Copyright protected, only those MCB staff who have been trained on the BAS can administer this testing.** to tailor needed training/experiences based on results (* resource packet # Binder)

- Management/Business

- Development of Commitment/experience

- Technical skill/work experience regarding type of business

- Assess business feasibility based on market demand

- Pursue training in business finance/law/taxes or obtain resources for that service (ie. Accountant, lawyer, etc.)

- Take steps to increase personal credit/financial solvency

Assess the following:

- Ability to handle stress & difficult work demands

- Family & Community Support

- Energy Level

- Time Management Skills

- Communication Skills

- Problem solving skills

§ Contact Social Security to determine how benefits might be affected and other resources that might be available.

§ Develop job description, duties, essential functions required to operate business. (* resource packet # Identify any accommodations needed.)

- Establish relationships with Chamber of Commerce and other professional business groups.

- Start developing business plan (if not already done) see the attached examples: (* resource packet # SBA Outline)

- Create outline

- Develop personal/family financial statement (consider your liabilities, assets, monthly & annual expenses, and income)

- Begin process to pursue finances (SBA, Bank, etc.), make sure copies of financial applications, credit reports, etc. are in client's file.

- Supported Employment issues: (* resource packet # 4 & 5) Be sure to determine if the client has a guardian, if so, then that person needs to be aware that the client wants to pursue this type of employment. If there is a guardian she or he will need to be involved in process, as they will need to sign legal and financial documents. In addition, include the follow along agency in the IPE, as that agency/person will need to be aware of the details in order to provide appropriate supports. This is in addition to the identified small business long-term support.

Plan Stage

- Include in the IPE (Individual Plan for Employment) any pre-plan assessment need that has not been addressed (how to complete any trainings or experiences not already done such as Business Math, Marketing, or job specific skills).

- Finish creating the Business Plan, identify, bring in long term outside supports, mentors, etc. (* resource packet # 3)

- Establish definite start-up costs, financial resources & on-going long-term supports and list in business plan. Add signature lines on bottom of plan for all involved parties to sign.

- Include the MCB & Client Responsibilities in the IPE and make sure to identify individual differences based on each case & client's needs/abilities. In addition, client is responsible for submitting business progress reports & financial reports (income vs. expenses) in 30/60/90+ day increments, so that projected business performance can be evaluated against actual performance. Establish realistic date of reaching success, as defined by client and counselor prior to starting business, based on business plan and include updates based on progress reports.

- Determine how long-term financial needs will be met.

Establish some system of direct business accounts, possible loans or available cash flow as a backup (client's capital- own nest egg).

- Determine, Obtain, and Learn how to use equipment.

- Develop a timeframe and attach specifically who is responsible for doing what activities in order to make the process move forward. Make sure all of these identified parties are signators on the business plan.

A successful closure is determined by:

1. Client satisfaction-complete client survey (* resource packet # 2)

2. Guidelines for minimum income by Rehabilitation Services Administration

3. Long-term support(s) progress reports

Post-plan Stage

Dealing with Business Growth & Follow Up:

§ Confirm steps for follow along with identified long term support(s), mentors, or other relevant relationships.

§ Continue to evaluate market changes, customers, and business periodically to make sure that business is doing everything to be successful (* resource packet #)

§ Make sure that there are no Legal/Tax problems.

§ Make sure business reports are coming in on time to ensure that the business plan is being followed and performance expectations are being met. Establish and conduct periodic evaluations of the business- timeframe to be determined by client and counselor.

It is expected that the IPE may exceed the 90 day time frame before a successful closure. Extended timeframe should be determined by mutual consent of client, counselor and long term support(s) identified in the plan with monthly reports from business, including cash flow documentation. It is recommended that follow along services be coordinated by MCB for a period up to 3 years post employment.

Business Plans

Check out the website information in the resource packet about the Small Business Association's program that assists in writing a business plan. ( * resource packet # * Put in actual SBA business plan outline)

A. The Business Plan: A Road Map to Success

By Nancy Arnold, Research Director for Rural Employment and Economic Development at the Rural Institute's Research and Training Center on Rural Rehabilitation Services

The business plan is like a road map. The process of writing a business plan helps the business owner make good decisions and reach his or her goal or destination. The number one reason businesses fail is lack of planning! Instead of making mistakes on paper, business owners too often make them with real money and real customers. That is why many, but not all, business funding institutions and agencies require business plans and may be reluctant to fund business start-ups that cannot provide a well-developed plan.

Benefits of Planning

- It requires that the business owner evaluate the entire business.

- The business plan contains written information that can be useful to employees, investors, creditors, and other interested parties.

- The business world increasingly is becoming competitive. In order to survive, a small business owner must find a well-defined market niche.

- Planning is a systematic way to identify and capitalize on new opportunities.

- Planning does not end with completion of a written plan--the process is continuous.

The steps in the business planning process are the same for all businesses, but the results differ for each one. A manufacturing company specializing in high-quality custom orders, a fast-food restaurant, a clothing retailer, and an organic herb farm all have very different plans. Each business plan is tailored to the individual business and business owner.

Parts of the Business Plan

Every business plan should include the following information.

Executive Summary

This is the first and most important section of a business plan. Its purpose is to convince the audience that this business is worthwhile. This "opening argument" must capture and hold the intended reader's attention and direct it to a specific purpose.

Business Description

This section describes the business, its history, form of ownership, percentages of ownership, the industry and industry trends and provides background information about the owners.

Marketing Plan

The marketing plan convinces the reader that an opportunity exists and that the proposed enterprise can capitalize on it. In this section, the business owner demonstrates a thorough knowledge of market demands, trends, competition, and customers. This section of the plan discusses the business's products and services, the target market, the business's location, its competition, and advertising and promotion strategies.

Operations Plan

The operations plan explains how the work will be done, how the business will be managed, and the business's location. This section describes:

1. Business Inputs

2. Facilities

3. Operating Costs

4. Licenses, Permits, Zoning, Insurance

5. Capital Equipment

6. Methods for Producing the Business's Product or Service

7. Need for and Types of Employees

8. Outside Services Used by the Business.

Financial Plan

This section discusses the investment required, sources of funds for the business, and financial statements including need for and sources of cash, equipment list, income statement, break-even analysis, cash flow projections, balance sheet, personal financial statement, and other supporting documents. Developing these financial statements is one of the most difficult tasks facing a fledgling business owner, because in most cases there is no history for reference, so these statements will be based on projections.

Attachments

These might include resumes, a rental agreement or lease, a business license, schematics, product sample, or other items mentioned in the body of the business plan.

B.

BUSINESS PLAN

TC GRAPHICS

Presented by: GRACE KELLY

Presented to: THE COMMISSION FOR THE BLIND

DECEMBER 17,1998

TC GRAPHICS

Address

Telephone

STATEMENT OF PURPOSE

The overall goal for the writing of this business plan is to ask for financial assistance from the Commission for the Blind in the implementation of a graphic design and lettering business.

TABLE OF CONTENTS

The Business 1

Product / Service 1

Location 1

Marketing Plan 2

Competition 2

Advertising and Public Relations 3

Management Plan 3

The Financial 3

Appendix 1: Profit & Loss forecast and

Cash Flow Forecast for first year 5

Appendix 2: List of Equipment and its price that I own 6 Appendix 3: List of Equipment and Supplies and their prices 7 Appendix 4: Sales Proposal 8

Appendix 5: Personal Resume 9

Appendix 6: Plotter Specifications 10

Page 1

1. THE BUSINESS

My business will be a sole proprietorship and will be service oriented in nature. The name will be registered and a tax license obtained. The type of business it will be is a graphic design and vinyl lettering business.

Location: Out of my apartment

Days/Hours: Seven days a week, 24 hours a day

Previous Experience: See Appendix 5

A. PRODUCT / SERVICE

Service: The things the company will be selling are as follows:

* graphic design

* window lettering

* vehicle lettering

* recreational equipment lettering

* wooden and metal signs

* business card creation

I feel I will be able to generate a steady flow of cash from month to month. The difference with my product and service will be quality work and particularly the ability to guarantee a quick turnaround.

B. LOCATION

I will be running my business out of my apartment. The space is adequate to perform most of my jobs. Where a larger space is needed, I have access to a 30'X 50'garage barn. The location of my business is desirable because it is right in town with plenty of parking. There is easy access to my apartment with a well-lit street andparking lot. The parking lot and sidewalks are well maintained during the winter months also.

2. MARKETING PLAN

The large majority of my customers will be businesses that are looking to further advertise their business. Additionally, individuals desire to "dress up" their vehicles and recreational equipment. The target markets are businesses and business owners. The town in which I five is expanding rapidly, Therefore, I feel the market will stay steady and even grow in the coming years. As this growth occurs there is a good possibility for business expansion. I feel that with quality work in a timely manner as well as competitive pricing, I will be able to attract, hold and increase my market share. The pricing strategy I will implement in my business will be the service cost and pricing method. I will use service components such as material cost, labor costs, and overhead cost to determine what I will charge for each job.

A. COMPETITION

There are five close direct competitors to me and as far as I can tell there are no indirect competitors that will have any influence on the success of my business. From what I have seen or heard the competitors' businesses are staying steady except for possible one business (it has nothing to do with lack of business.) I have hardly seen any advertising from the competition except for word of mouth. The only strength that my competition has is the established clientele. The weaknesses I have seen in the competition are very little advertising, and in some of them reliability and quality of work.

The product and service I will be offering will be very similar to my competitors', but with quality work and a quick turnaround time, I will be set apart from my competitors.

B. ADVERTISING AND PUBLIC RELATIONS

Adverting is very important to a business and its success. Advertising sources will be as follows:

* direct mail

* newspapers

* Internet

* former customers

* R/C model airplane magazines

3. MANAGEMENT PLAN

As a college graduate I have a degree in business and computers and for a year I worked for a graphic design business. My duties were design and cleanup, installation, ordering supplies and material and handling the invoicing and accounting part of the business. The only weakness that I can find is that I am unable to drive, but I've made accommodations to have my father drive for me. This business is a sole proprietorship and I will be the only one on the management team. My needs are equipment, supplies, and some working capital to start the business. At the present time I will have no need to hire anyone to assist me, but if the business does as well as I hope, there is a possibility for expanding and hiring some employees.

4. THE FINANCIAL PLAN

START-UP BUDGET

a. license / permits $10.009

b. equipment $6840.85

c. Insurance $175.00

d. supplies $972.94

e. advertising $355.00

f. utilities $80.00

g. working capital $2000.00

TOTAL FOR START-UP $10433.79

To begin my graphic design and lettering business I need $8433.79. This amount will supply all of the equipment, supplies and other business related items that are needed for starting a new business and $2000.00 working capital to cover any unexpected expenses I may incur in the first several months that I am open as I get my business established. The accounting software that I will implement in my business will be Quick Books Pro, which is a single entry system. I will also use Quick Books Pro as my day-to-day software for invoicing, inventory and checking account transactions. My profit and sales goal for the next year are to end up in the -black and have a well-established inventory.

APPENDIX 1: PROFIT & LOSS FORECAST-AND CASH FLOW FORCAST FOR FIRST-YEAR

T C GRAPHICS PROFIT & LOSS FORECAST

Jan-Mar Apr-Dec Year 1

Service Revenue 1,000 1,500 16,500

Operating Expenses

Advertising 180 180 2,160

Telephone 40 40 440

Supplies/Postage 100 100 1200

Travel/Entertainment 50 50 600

Total Expenses 370 370 4400

Profit Before Taxes 630 1130 12,100

T C GRAPHICS CASH FLOW FORECAST

Pre-open Jan-Mar Apr-Dec Year 1

USES OF MONEY

License 10 10

Insurance 175 175

Working Capital 2,000 2,000

Equipment/Supplies 7,813.79 7,700

Utilities 80 80

Printing/Advertising 355 180 180 2,595

Owner Draw 100 100 1,200

Total Uses 10,433.79 280 280 13,760

Sources of Money

Commission f/t Blind 10,433.79

Revenue 1,000 1,500 16,500

Total Sources 10,433.79 1,000 1,500 26,933.79

Net Cash 0 720 1,220 13,140

APPENDIX 2: LIST OF EQUIPMENT AND ITS PRICE THAT I OWN EQUIPMENT

Computer $2,700.00

Printer $300.00

Scanner $169.00

Graphics Software $460.00

Accounting Software $195.00

Word Processing Software $125.00

Computer Desk $150.00

TOTAL PRICE OF EQUIPMENT $4,099.00

APPENDIX 3: LIST OF EQUIPMENT AND SUPPLIES AND THEIR PRICES

EQUIPMENT

Plotter cutter & software $5,435.00

Fax Machine $200.00

2 Line Phone $2,00.00

2 Vinyl Wall Racks $80.00

Heat Gun $79.95

1 & Inch- Cuffing Ruler $15.95

36 Inch Cutting Ruler $21.95

Logo and Trade Mark Software $395.00

Vehical Graphics Software $149.00

File Cabinet $89.00

2 Swing Arm Lamps $10.00

Transfer Tape Applicater $56.00

Cutting & Weeding Table $100.00

12 Application Squeegees $9.00

TOTAL FOR EQUIPMENT $6,840.85

SUPPLIES

5 Xacto Knives. $25.00

100 Xacto Knife Blades $13.00

Vinyl Application Fluid $19.95

5 Cuffing Blades For Plotter $80.00

100 File Folders $7.99

Transfer Tape $89.00

Vinyl $640.00

Magnetic Door Matte $98.00

TOTAL FOR SUPPLIES $972.94

APPENDIX 4: SALES PROPOSAL AND PLOTTER SPECIFICATIONS

APW WAREHOUSE Grayson Business Computers

151.7 S Sam Raybum Freeway

Shermai Texas 75090-8753

(903) 8916834 FAX (903) 693-8473 - (800) 899-5655

email: gbfflignharehousexom

SALES PROPOSAL

SOLD TO: Grace Kelly

DATE: 11/2/98

QTY ITEM DESCRIPTION

1 Pro Series Cutter 48ips, 5OOg downward

pressure, stand, Media handling system 3 yr warranty Parts & Labor

1 Software A bridge program to use with

Corel to run Cutter. Will throw in 600 fonts/600 graphics

Sales Person: Lisa Rodriquez

TOTAL: $5,340.00

SHIPPING: $95.00

DELIVERED: $5,435.00

APPENDIX 5: PERSONAL RESUME

Grace Kelly

Address

Telephone

EDUCATION

Gladwin High School, Gladwin, MI

Graduated: 1986 with emphasis on Business and Computers

Mid Michigan Community College, Harrison, MI

Graduated: 1994 with Associates in Business and Computer Information Systems

WORK EXPERIENCE

June 91 -Dec. 98: Tire Store

Duties included: using a computer, answering, the phone selling tires and parts, running a register, counting the cash and doing the books at the end of a shift, and ordering products for the store.

Feb. 97-Feb. 98: Lettering Store

Duties included: design and cleanup, installation, ordering supplies and material and handling the invoicing and accounting part or the business.

June 94-Feb. 95: Computer Service

Duties included: answering the phone, placing orders selling computer products, invoicing and some service work.

Nov 89-May 91: McDonalds Restaurant

Duties included: cooking, cleaning and unloading trucks.

Nov 85-Nov 89: Ashcrafts Food and Family Center

Duties included: stocking, sorting bottles, unloading trucks ordering and bagging.

APPENDIX 6: PLOTTER SPECIFICATONS

All Ultra Pros Include:

500 Grams Cutting Pressure

48 IPS Speed

50' Guaranteed Tracking Media Handling System Cutter Stand

3-year Parts & Labor Warranty

Raw power, incredible speed, and flawless performance at an all-

inclusive, attractive price!

Specifications:

Model GRC-101s

Operational Method Roller-Type Friction Feed

Maximum Cutting Area 40 inches / 1016mm

Acceptable Material Size 47 inches/ 1200mm (cut sheets & rolls)

Drive Type DC Servo Control

Cutting Force 10-500 grams downforce

Cutting Acceleration 4.2g

Maximum Speed 48.4 inches per second 1230 mm/s

Offset 0-1.0 mm

Mechanical Resolution 0.0125 mm

Software Resolution 0.025 mm

Distance Accuracy 0.254 mrn or 0. 1 percent of move, whichever is greater

Repeatability 0.1 mm

Buffer Size 1 MB or 4MB (Optional)

Interfaces Parallel (Centronics) & Serial (RS-232C)

Commands HP-GL, HP-GI 2 l

Control Panel M (20 digits x 2 lines or 14 digits x 4 lines), 1 LED and 14 control keys

C. TB Fashions

Address

Telephone

Business Plan

12/12/2000

This is the business proposal that will outline the plan for the business known as TB Fashions. TB's will be housed in the basement of our residence. This will be a manufacturing type enterprise and will produce and shop all finished goods from this production sight. It will be located Alger county. In my business enterprise I will employ my wife as a full working partner. The following outline will show the breakdown of the 6 aspects of the proposed business. I look forward to discussing in greater detail this outline in the future.

1) Items to be manufactured

2) Methods of marketing

3) Equipment and goods required for producing goods

4) Business costs

5) Unit costs and pricing

6) Sales projections

1. Items Manufactured

a) Custom embossed leather purses handcrafted and designed in 2 styles and 3 colors. The colors include blue, green and willow and are offered in drawstring and snap closure styles.

b) Laminated cotton handbag with leather trim. This drawstring style would be offered in 6 patterns/prints.

c) Additional items that could be produced and marketed would include vests in both leather and tapestry materials and jackets sewn of woven afghan material, and laminated beach bags. All embossing and selected print patterns would focus on the "Great North & Lodge" look, and feature such things as the great lakes, log cabins, lighthouses, bird houses, moose, deer and the like.

2. Marketing methods

a) Presentation of goods at local and national wholesale trade shows such as Chicago, Traverse City, Detroit, Milwaukee, and Saint Ignace.

b) Web sight on the internet

c) Personal promotion of goods to select local U.R retailers.

3. Equipment and raw material required.

a) Tippmann industrial sewing machine for medium and heavy gauge leather.

b) Juki industrial sewing machine for laminates, light (3oz.) leather, tapestry and canvas materials. **(already purchased)

c) 5hp. Air compressor to operate sewing machine.

d) Commercial sewing Surger machine. **(already purchased)

e) Leather heat embosser.

f) Assorted hand tools i.e.. Scissors, punches, cutters, rawhide mallet, counter top fabric measuring mat etc.

g) Bench top manual grommet machine.

h) Misc. materials to build assembling and shipping tables i.e. Lumber and hardware.

i) Shipping scales labels shipping bags and supplies.

j) Scanner for computer.

k) Telephone answering/mail box machine.

l) Raw leather material

m) Laminated cotton material bolts.

n) Purse hardware and threads i.e. Snaps and buckles etc.

o) Lining fabric blots, cording, and stabilizers.

p) Embossing casting plates - 6 designs.

4. Business costs.

a) Set up:

Juki sewing machine **(already purchased) N/C

Juki surger machine **(already purchased) N/C

Dell computer & printed **(already purchased) N/C

Tippmann sewing machine $3500.00

Franklin embossing machine $1500.00

Laminated cotton material $725.00

Raw leather sides material $3990.00

Misc. hand tools $250.00

Grommet machine $150.00

Shipping supplies and raw materials for

shelving, cutting and shipping tables $500.00

Phone answering/mail box machine $90.00

Desk top scanner $289.00

b) Start up:

Internet 1 year fee $480.00

Web sight advertising 1 year fee $600.00

Credit card processing home counter terminal $583.00

4 day trade shows entry fees $1800.00

Travel & lodging for 2 people to shows;

12 nights, 12 days meals, travel expense $1200.00

Local, state and federal permits and licenses $250.00

C) Initial setup and 1st Year Start Up Total $15907.00

Page 4

5. Unit cost and pricing (includes material & shipping)

a) Leather purse/hand bag cost EST. $27.00

b) Cotton laminated handbag cost EST. $12.00

c) Leather purse unit wholesale pricing as follows:

1-14ea. $69.00, 15-24ea. $67.00, 25 & over $65.00

d) Laminated hand bag unit wholesale pricing as follows: 1-14ea. $41.00,15-24ea. $40.00, 25 & over $39.00

6. Projections.

A) Leather sales:

GROSS

COST WHOLESALE PROFIT

Al) 1st Yr. 100 unit $27.00 $67.00 $40.00

A2) 2nd Yr. 200 unit $27.00 $67.00 $40.00

A3) 3rd Yr. 300 unit $28.00 $67.00 $39.00

B) Laminated Sales:

GROSS

COST WHOLESALE PROFIT

B1) Ist. Yr. 150 unit $12.00 $40.00 $28.00

B2) 2nd Yr.300 unit $12.00 $40.00 $28.00

B3) 3rd Yr. 450 unit $13.00 $40.00 $27.00

C) TOTALS:

LEATHER UNITS.

GROSS

COST WHOLESALE PROFIT

C1) 1st Yr. $2700.00 $6700.00 $4000.00

C2) 2nd Yr. $5400.00 $13400.00 $8000.00

C3) 3rd. Yr. $8400.00 $20100.00 $11700.00

LAMINATED UNITS.

GROSS

COST WHOLESALE PROFIT

C4) 1st Yr. $1800,00 $6000.00 $2800.00

C5) 2 Yr. $3600.00 $12000.00 $8400.00

C6) 3rd. Yr. $5850.00 $18000.00 $12150.00

D.

In the Woods Auto Inc.

Table of Contents

I. Purpose of Business

II. Organizational Structure

III. Offices and Location

IV. Market Analysis

V. Experience in the Business World

VI. Prior Investigation into Entering New Business

VII. Advantages for this Business

VIII. Special Problems for this Business

IX. Reasons for Locating in Harrison

X. Capital Now Available Through Investors

XI. Final Thoughts

XII. Appendices

A

B

C

D

Purpose of New Business

In the Woods Auto, Inc. is a used car dealer and a repair facility. This corporation was formed to sell and repair cars, trucks, motorcycles, snowmobiles etc. The target market is mid-Michigan areas and beyond.

Organizational Structure

In the Woods Auto, Inc. was incorporated on 17 January 1999 under the laws of Michigan.

III. Officers and Locations

The officers of the corporation are as follows:

Cary Grant - President

Address

Telephone

Lana Turner - Secretary/Treasurer

Address

Telephone

In the Woods Auto is located at:

Address

Telephone

IV. Market Analysis

At the present time, there are four main competitors for In the Woods Auto. These companies sell automobiles only; we plan to differentiate In the Woods Auto from the competition by selling RVs, motorcycles, Jet skis, trailers, and motorhomes. Most competition in central Michigan focus on one type of vehicle (cars and trucks, RVs, snowmobiles and jet skis, etc.) while we will offer a variety of quality vehicles with excellent service so our customers will feel comfortable coming to us for every type of vehicle, whether business or pleasure. In the future, In the Woods Auto also plans to enter the handicap van

Page 4

market. In the Woods Auto is located on a highway, and hopes to draw business from the traveler market. When travelers need maintenance while traveling, we will be able to provide everything they need, from tow service (in the near future) to quality and dependable car repair.

V. Experience

Mr. Grant, the President of Backwoods is a Master Mechanic and has many years of experience working on vehicles. Mr. Grant also co-owned Ti-Po Aluminum in the 1970's, located in Michigan. While working with Ti-Po he handled the management, accounting, and labor.

Mr. Grant then worked for W. Industries in Michigan. While there, he handled the day-to-day administration of the garage. They maintained large equipment such as cranes, stake trucks, backhoes, etc. Mr. Grant built his personal home and barn. For In the Woods, he cleared the land, built the office and garage and will handle maintenance on the buildings.

Ms. Turner runs a business out of her home caring for children. She has been self-employed for the past five years in Michigan. She has to maintain files on each client, and keep daily, monthly, and yearly attendance records. She maintains accurate financial records of expenses and billing.

Ms. Turner also currently supervises a team of professionals for a maintenance and cleaning business. She oversees the cleaning of sixteen different banks and offices. She is responsible for training and maintaining the labor force and conducts nightly inspections to insure quality.

Mr. Grant and Ms. Turner have taken classes offered by the state for RD 108s, New and Used Car Sales, and Salvage in an effort to continue their education and training in this area.

VI. Prior Investigation into Entering the Proposed Business

An extensive personal survey was conducted of many possible customers in the area. A need was found for a fast, reliable, and affordable car repair place within a reasonable driving distance. A desire was also found for a car dealer who would sell quality used cars and stand behind them.

VIL Advantages for this Business

The location is a major advantage for In the Woods Auto. It is centrally located which will make it a convenient repair facility for people in all of these areas as well as travelers on the highway. Travelers will be able to make use of In the Woods Auto for tire repairs, and breakdowns of cars and trailers.

In the Woods Auto plans to obtain a tow truck and several courtesy cars to enable people from towns a little further away to make use of the excellent repair service they will receive from In the Woods Auto without inconvenience.

VIII. Reasons for Locating

This county is growing and there are more elderly people coming to the area to retire than ever before. These people are usually on a set income and need car repair at reasonable prices. The nearest "big" town with competitive car repair and dealers is a college town and the prices and styles of used cars cater to a younger age bracket.

Families with children may have a harder time traveling to that city to take advantage of this competitive market, so In the Woods Auto would fill the need for affordable car repair with less hassle for these families in the area.

IX. Equipment needed for Office

Personal computer Printer

Brother typewriter Executive desks (2)

Executive chairs (2) Office chairs (4)

Touch-tone telephones (2) Four-drawer file cabinet Coffee machine Hewlett-Packard color copier

X. Suppliers for Office Paperwork

Michigan Secretary of State

Ameritech Solutions (mail-order)

Office Quick

Staples

Sid Savage (mail-order)

A local Printer

Suppliers for Garage

P Auto parts

Napa Auto Parts

Bob's Tire Store

As soon as the repair facility is running and the business warrants it, In the Woods Auto will be obtaining additional suppliers. In the Woods Auto is currently looking into replacing current suppliers with less expensive wholesalers willing to deliver in the area.

Chart of Accounts

Current asset

Cash in Checking (100) Cash in Savings (101)

Petty Cash (104) Accounts Receivable (105)

Other current assets (107) Cash Over/Short (109)

Long-term Assets

Machinery &Equipment (201) Tools (202)

Tow Truck (203) Courtesy Cars (204)

Furniture & Fixtures (205)

A/D - Machinery &Equipment (251) A/D - Tools (252)

A/D - Tow Truck (253) A/D -Courtesy Cars (254)

A/D - Furniture & Fixtures (255)

Current Liabilities

Accounts Payable (301) Accrued Wages (302)

Accrued FICA - withholding (304) Accrued Federal withholding (305) Accrued State withholding (306)

Revenue

Sales -Parts (501) Sales - Auto (502)

Sales -Labor (503) Interest Income (507)

Expenses

Cost of Autos (601) Cost of Parts (602)

Utilities (620) Telephone (630)

Wages (640) Office Supplies (650)

Shop Supplies (660) FICA - employer (670) Maintenance & Repairs (680) Dues & Subscriptions (690)

Professional Fees (695) Rent Expense (700)

Advertising Expense (710) Donations (720)

Interest Expense (730) Laundry Expense (740) Miscellaneous Expense (790)

Long-term Liabilities

Note Payable - Cary Grant (401)

Note Payable - Commission for the Blind (402)

Business Plan:

Business Information

Name of Company: In the Woods Auto, Inc.

Building Location:

Square Feet: Shop - 1200 sq. ft. Office - 480 sq.-ft

No. of Floors: Shop - 1 floor Office - 1 floor

Type of Construction: Shop - pole built Office - stick built

Age of Building: New

Lot Size: 12 acres

Owned/Leased: In the Woods Auto rents from Cary Grant & Lana Turner

Value:

Payment: Rent = $500/mo

Lease Expires:

Mission Statement: In the Woods Auto strives to provide its customers with superior auto repair service and quality used cars at a reasonable price. In the Woods Auto us dedicated to serving its customers and to stand behind its products and services.

Date business opened or is projected to open for business: July 1999

Legal form of organization: Incorporation

Owner(s) of business: Cary Grant & Lana Turner

Business Plan: Start-Up Costs Worksheet

BUILDING 1 BUILDING 2

Number of Stories: 1 1

Type of Building: Shop Office

Cost: Rented Rented

Life Expectancy in Years: 35 35

WORKING CAPITAL

Inventory/Raw Materials:

Item: Various tools Auto Parts Used Cars

Source: Cary Grant NAPA Auto parts various

Price: $16,650 varies varies

Comments: Corporation has note payable to Mr. Grant with no interest

LABOR

Skill: mechanic secretary

No. of Persons needed: 1 1

Pay Rate: $200/wk (start) $100/wk (start)

Both staff is willing to let their salary accrue until such time as In the Woods Auto has sufficient Working Capital.

Skill: Bookkeeper

No. of Persons needed: 1 1/2

Pay Rate: Dependent upon-billing

Comments: Most bookkeeping will be done by L. Turner with the monthly financial statements prepared by a contracted bookkeeper until In the Woods Auto can become equipped and trained on Quickbooks Pro.

Living Expenses

Consumers Power $50.00

Telephone $75.00

Primestar $37.00

Propane $50.00

House Insurance $51.00

MI Child (health insurance) $5.00

House Payment $294.16

Land Payment (rental property) $240.00

Internet Connection $22.00

Credit Card Payment $26.00

Groceries $300.00

Miscellaneous $40.00

Monthly Total $1,190.16

Last paycheck to opening day 0

Three months after opening day $3,570.48

Note Payable

The following items have been rented to In the Woods Auto, Inc. by Mr. Grant in exchange for an interest free note payable.

1/4Drive Socket, 3/8 Drive Socket, 1/2Drive Socket, 3/413rive Sockets (6 point). Includes shallow and deep wells, ratchets and extensions. $1000.00

Various Wrenches in all sizes. $1000.00 Snap-On lower toolbox, Craftsman upper tool box. $1800.00

Bearing Puller, Damper Puller, Wheel Puller, Slide Puller, 3 Arm Puller, 2 Ann Puller. $500.00

Various Channel locks, Pliers, Snap ring vise grips, etc. $800.00

Set of Brass hammers (ball pein and claw) $300.00

Die Grinder, Disk Grinder, Bench Grinder, Angle Grinder $500.00

Air Tools $300.00 Floor Jack, Scissor Jacks (1), Bumper Jacks (2), Bottle Jacks (2)

$300.00

Tire machine $3000.00 Electric tools $350.00

Tripod $500.00 Screwdrivers (2 complete sets) $100.00 Battery Chargers (2), Battery Tester $100.00

Torque Wrenches $300.00

Tap and Dies $300.00 Torches $600.00

Arc Welder $400.00

Sand Blaster $200.00 Odds and Ends, miscellaneous tools and supplies $1000.00

Car Dolly $1000.00

Car Hauler $2000.00

Tow Chains $300.00

Total $16.650.00

To be repaid in full to Mr. Cary Grant from Net Profits of In the Woods Auto, Inc.

E. Business Plan

For

C. D. Recycling

Submitted by:

Copper Davidson

&

Au Sable Valley Community Mental Health Services

Submitted to:

Michigan Commission for the Blind

Department of Labor and Economic Growth

Statement of Purpose

The purpose of this plan is to outline the business concept of C. D. Recycling and to demonstrate that this business can earn a profit and provide Cooper Davidson with an opportunity to gain self-sufficiency through business ownership, In addition, C. D. Recycling will provide a valuable community service by offering pick-up and bailing of recycled cardboard and paper, sorting of material to get ready for bailing and assisting customers for Coalition of Volunteer Neighbors Inc. (C.V.N.I.) C. D. Recycling will work along with C.V.N.I. who will subcontract services from C. D. Recycling.

C. D. Recycling will be owned and operated by Cooper Davidson. The business will operate as a sole-proprietor with no current plans to hire employees.

The concept for this business originated from C.V.N.I., a non-profit corporation that handles recycling services for a MI county. C.V.N.I. expressed an interest in purchasing a bailer to handle the increasing demand for recycled cardboard. It was then thought that Cooper, who is currently working for C.V.N.I., could purchase the bailer and then subcontract services to C.V.N.I.

Presently, the interest in recycling has increased since C.V.N.I., was established in 1997. The volume of cars, which drop off materials to be recycled has increased from 50 to 250. The volume has increased such that the center is storing some cardboard and other materials until a bailer is procured.

In submitting this Business Plan, C.D. Recycling is requesting $5,500 from the Michigan Commission for the Blind for the purchase of a bailer, which is critical to its long-term success.

Table of Contents

Business Description 4

Marketing 5

Target Market 5

Competition 5

Industry Trends 6

Marketing Strategies 7

Management 8

Financial Projections 9

Attachments

Letter of Support

DBA

Population Projections: MI Counties

Business Description

C. D. Recycling is a new business, established as a sole proprietorship, which will create an income for its owner, Cooper Davidson. The business will be created from the joint efforts of Au Sable Valley CMH, The Commission for the Blind, C.V.N.I. Recycling, the local township, and Cooper Davidson.

This collaboration reflects a community commitment to this project and the commitment of time and resources by all of the parties involved. Au Sable Valley CMH has purchased a truck, which in part will be used for recycling pick-up, The expenses for operating the vehicle will be paid for by CMH. In addition, the township has provided a location free of charge for Cooper and C.V.N.I. to operate their recycling center. A CMH staff member will be on site to support and help Cooper track hours and assist him in learning the job, In addition, C.V.N.I. volunteers will be on-hand to assist with handling the bailer and will provide other assistance as needed.

The recycling center will be conveniently located in a large facility on a closed military base, The township has re-developed the base into a center for business and industry, Currently several businesses are housed on the base, as well as several government offices.

The business will offer pick-up, bailing, and sorting what ever is needed to prepare the recycled cardboard, paper, and plastic for recycling, The business will initially operate 2 days per week - Thursdays and Saturdays.

Marketing

Target Markets

Existing Customer

C.D. Recycling's primary customer, C.V.N.I. will subcontract with C.D. Recycling to provide the service of picking up materials from local businesses and bailing of said materials, Cooper will bill on a monthly basis for services rendered with assistance from Au Sable Valley CMH and Mr. Davidson's guardian Mr. Rod Dean,

Potential Customers

In addition to these customers, 8-10 other area businesses have expressed an interest in having their recycling picked up. Also, the nearest large city has expressed an interest in having these services available in their area, which would greatly expand C.D. opportunity for growth.

Furthermore, it is expected that the recycling center will continue to attract an increasing number of individual customers who drop off materials on a weekly basis.

Business Conditions Seasonality

Because the area is a popular tourist destination, the population increases in warmer temperatures. Therefore, there is a greater demand for recycling services late spring through early fall. As a result of this seasonality, prices for recycled products increase in off-peak periods. It is the recycling center's strategy therefore, to stockpile recycled materials when possible, and to sell when prices for recycled materials are at their peak.

Competition

C.D. Recycling will be the sole provider of pick-up, bailing, and storing of cardboard, paper and plastics for SOAR who is responsible for handling the township's recycling needs. A letter of agreement will

Page 6

be drafted between these parties to ensure that this exclusive arrangement is continued until otherwise agreed upon by both parties. Thus, C.D.'s will operate free of competition and is assured that at a minimum, customers in need of bailing for cardboard, paper and plastics will be served exclusively by them, All C.D. Recycling needs to be concerned with is the level of demand for its services and must encourage area businesses to increase their volume of recycled materials.

Industry Trends

The awareness of the environment and the education of individuals and businesses regarding the benefit of recycling continues to increase as our country's productivity and limited resources creates an ever increasing demand for recycled products. The opportunities for recycling services will only increase over time.

The current challenge in the recycling industry is to flnd ways to cost effectively recycle products so that end-users can afford to pay the price for recycled goods. Devices such as bailers minimize productivity costs, thereby making recycled products more affordable. As communities become more efficient and the recycled products become more affordable, the resulting demand increases.

Market Size

According to population projections (see attachment), the trend in population estimates is expected to increase in C.D. Recycling's service area, Each of the three counties that C.D. Recycling may potentially serve is expecting increases in population,

Marketing Strategies

C.D. Recycling has numerous opportunities for growth and expansion. The expansion strategies currently being considered are as follows:

1 .Add additional days open for business,

As the demand for services continues to grow, C.D. will expand its hours of operation to include additional days open for drop off

As the demand increases for pick-up services, C.D. will expand the hours of operation for pick-up services.

2. Expand services to other communities. C.D. is exploring the possibility of providing its recycling services to West Branch and other communities.

3. Promote pick-up services to local businesses.

Create flyers and informative brochures for distribution among local businesses. C.D.'s may utilize C.V.N.I.'s existing promotional materials or create its own flyer.

C.D. Recycling's overall strategy will be to expand its existing services so that its owner, Cooper Davidson can increase the number of hours worked annually, mid therefore increase the owner's annual earnings.

Management

C.D. Recycling will be owned and operated by Cooper Davidson of Michigan. The owner will be responsible for picking up cardboard, paper, and plastic materials from area businesses and transporting these materials to the recycling center. The owner will also be responsible for bailing the materials and storing the bailed materials until the materials can be sold. Once sold to the end-consumer (this is done by C.V.N.I.), C.D. will loan the truck and prepare the recycled materials for delivery.

The business will utilize the services of an accountant to provide year-end financial statement and tax returns. Cooper Davidson's guardian, Rod Dean, will handle the bookkeeping function. C.V.N.I., will be billed monthly by C.D. Recycling for services rendered.

Community Mental Health Staff and C.V.N.I. volunteers will help on a daily basis as needed.

If for some reason C.D. Recycling ceases to conduct business, at that time the bailer will become the property of The Commission for the Blind.

Financial Projections

As stated there has been an increase in customers using the Recycling Center from 50 cars in 1997 to 250 in 1999. There has also been an increase in the area businesses requesting pickups. The increase in customers and productivity results in an increase in profit and resulting in an increase in estimate earnings for Cooper Davidson on an hourly basis. Increases in the hourly "wage" earned as a result of expanding the number of days open to the public. For example, in order to reach the volume projected in year three, C.D. Recycling must be available to serve customers three days per week.

Assumptions to Financial Projections

1. Sales projected are based on the number of business customers served as well as the volume of material recycled and bailed, Projected sales for 64 pick-up" customers are based on 12 customers for year one, 18 customers for year two and 26 customers for year three. These projections assume a fee of $18.00/month per customer in year one and two with an increase to $20.00 per customer in year three.

2. Estimated assume C.D. Recycling will pay no rent or truck expense.

3. In the first and second year the business will be open two days a week. The days will be spent on bailing pick-up and other miscellaneous activities, which C.V.N.I. will determine depending on demand and need. Cooper Davidson's services will be billed on a monthly basis.

Disclaimer

Disclaimer on page 6 starting with "C.D. Recycling will be the sole provider of pick-up bailing and storing of cardboard, paper and plastic for C.V.N.I. who is responsible for handling the township recycling needs. A letter of agreement will be drafted between these parties to ensure that this exclusive arrangement is contained until otherwise agreed upon by both parties". A letter of agreement will be drafted between all parties. But Cooper will not have exclusive rights for the work at the Recycling Center as other consumers are working there under C.V.N.I. and A.V.C.M.H. contract, we are the employee of record they are billed monthly. David is unable to load the truck himself in a timely manner, that is why it is done by a team, including the volunteers. The other consumers are called in as needed.

This Business Plan has been reviewed and is agreed upon by the following parties.

C.D. Recycling

Rod Dean, Guardian

MI Commission for the Blind

Community Mental Health

September 16, 1999

Points of Working Agreement Between:

Coalition of Volunteer Neighbors, Inc.

Michigan Commission for the Blind

D.C. Recycling

and

Au Sable Valley Community Mental Health

1. Neighbors Will pay Cooper Davidson through an invoice issued by him for the number of hours worked at the recycling facility each Month. The site manager will schedule David for a certain number of hours each week based on Neighbors operating budget C.D. Recycling will only be paid for ft number of hours budgeted unless otherwise approved by the Treasurer. The number of hours available each week will be affected by not only budget but also duties to be performed and whether C.D. Recycling is suited for those tasks.

2. In order to perform cardboard pickup services, C.D. Recycling must be able to haul In an efficient manner as to be cost-effective with Neighbors' schedule of fees. This will probably require the use of a trailer in addition to the CMH pickup truck because of lack of space. Any services sold by C.D. RecyclIng to the county would have to be as a service of Neighbors' at established rates. C.D. Recycling could perform the pickup duties for Neighbors', if cost-effective, or may otherwise work out a commission rate with Neighbors' for the sale of the services.

3. C.D. Recycling would be free to sell their services directly to customers outside of the county for fees of their own choosing as Neighbors has not established rates outside the county. C.D. Recycling is free to bring recyclables collected to the recycling center where they can be processed and marketed. Time spent in collection from the non-Neighbors accounts will be strictly between C.D. Recycling and those clients. No time spent in this endeavor may be invoiced to Coalition of Volunteer Neighbors, Inc.

4. The recycling facility remains the property of the township and will be under lease by C.V.N.I. Inc. Neighbors volunteers will be responsible for insuring the quality of materials by supervising the sorting and processing functions (including the baler). Neighbors also markets all materials and Insures that all funds are invested back into their effort.

5. Neighbors volunteers will endeavor to train C.D. Recycling and Au Sable Valley CMH personnel in order to gradually expand their role in the county's recycling program. The long-range goal will be to act as the central recycling point in all of the county.

Cooper Davidson

Representative of C.V.N.I.

Rod Dean, Gaurdian

MI Commission for the Blind

Au Sable Valley CMH

F.

IMPRESSIONS OF DRAMA JEWELRY

BUSINESS PLAN

Bessie Smith

Address

Telephone

TABLE OFCONTENTS

STATEMENT OF PURPOSE 3

BUSINESS DESCRIPTION 4

MARKETING 5-6

COMPETITION 7

LOCATION 8

MANAGEMENT 9

PERSONNEL 10

CAPITAL EQUIPMENT LIST 11

START-UP COSTS 12

APPENDICES

A - Owner's Resume

B - Financial Projections

STATEMENT OF PURPOSE

Impressions of Drama Jewelry is a new business established for the purpose of selling jewelry designed by the owner, Bessie Smith. Bessie Smith is an artist who has made unique and custom designed jewelry pieces for more than 10 years.

Bessie Smith has been interested in fashion and design as far back as she can remember. Most of her work experience is in retail management of the fashion industry. Ms. Smith has been making and selling her jewelry for many years on consignment, and to family and friends. Her unique jewelry designs are truly works of art and cannot be found elsewhere.

She has retail experience and a strong desire to succeed. In addition, she is personable, hard working, and persistent! For these reasons Dramatic Expressions will be successful!

The anticipated start date is December 1, 1996. A capital investment of $12,560 will be needed to fund initial start-up costs, inventory and equipment.

BUSINESS DESCRIPTION

Impressions of Drama will offer high quality, unique jewelry items and accessories. The owner, Bessie Smith intends to market her products, as well as other manufactured products, through a number of channels.

The business will initially be established as a sole-proprietorship. The owner's private collection will be protected by a trademark. This will give the owner the exclusive right to use the name throughout the United States. This protection will prevent others from capitalizing on the success of the product line and maintain the high-quality and unique nature of the products.

The owner's goal is to begin selling at the flea market on or around December 1,1996. The flea market shop will be open Fridays through Sundays.

Ms. Smith will operate the flea market while seeking other avenues to sell her products. She intends to contact large department stores, (she has already contacted Hudson's) and will work with several small retailers in the Detroit area. Ms. Smith will also consider producing a catalog for distribution to existing and potential customers. If the catalog appears feasible and if, when implemented, proves profitable, the owner may phase out flea market sales entirely.

MARKETING

Target Markets

Impressions of Drama's target market will be upper to middle income professionals in the Detroit metropolitan area. The owner plans to tailor its designs to the needs of the department stores and to the customers who shop the area flea market. By closely monitoring customer responses to specific designs, the owner will gain a perspective on their design preferences and price ranges.

The flea market owners could not provide information regarding the average number of customers who attended the market each day. The owner interviewed 6 merchants at the flea market. The merchants indicated that their sales were good to excellent, ranging for similar priced products, from $200 - $500 per day.

Pricing

Impressions of Drama's products will be sold at the high-end of similar, competitive products. Items should range in price from $30 to $150. Price estimates depend on the cost of materials used, the time required to produce the item, and comparable sales prices of competitive products.

Depending upon the needs of customers, and the requests from department stores, Impressions of Drama Jewelry may sell lower-end merchandise. Careful consideration must be given to the time involved in the production of the merchandise as well as the material costs involved. A pricing analysis for each design series will include a time study to determine the production time.

Customers will typically pay a small premium for Impressions of Drama products because they are assured that they are getting a unique, one-of-a-kind item that is creative, and is as much "a work of art" as it is a piece of jewelry.

Items sold at the flea market will include jewelry items, purses, scarves, hair accessories, and other items, which the owner feels will be of interest to its customers. Flea market merchandise, will include the owner's designs as well as merchandise purchased through dealers and other designers.

Market Strategies

The owner plans to sell her merchandise through a variety of vehicles. Her jewlery will be sold wholesale through department stores, boutiques, and gift shops. The owner has already spoken with several store owners who are interested in seeing her work and who in at least one case have placed orders. Her merchandise is currently available in two locations. She also plans to sell her wares at the local Flea Market.

Bessie Smith intends to market her products in a number of ways. First, as mentioned the products will be sold at the local Flea Market. Second, the owner also plans to sell her private collection through upscale jewelry stores and department stores. Private showings of her merchandise at upscale galleries and stores will attract customers willing to pay more for unique, quality jewelry. Third, in-home parties will bring the convenience of shopping to many busy customers. These parties will be promoted through friends and business contacts.

Ms. Smith will sell her Impressions of Drama line of jewelry through catalog sales via the Internet. A web site will be established for this purpose. This strategy allows national and international exposure of her products without the expense of a traditional catalog.

Purchases via the internet are on the rise, as are mail order purchases in general. The market size reached by the company can broaden dramatically. Ms Smith will also consider producing a catalog of her jewelry targeting customers throughout the country. If the catalog is pursued, it will be tested first in the Detroit area. If demand is high she will expand the catalog to other major cities

throughout the country. Mailing lists will be purchased which isolate those zip codes of upper-income communities.

COMPETITION

There is considerable competition for Impressions of Drama Jewelry. The nature of the competitive market is difficult to assess. There are numerous independent, micro-businesses operating throughout the country where the owners are selling their own hand-made jewelry. It is impossible to know just how many are out there since most of these are very small and operate on a localized basis.

Of the 50 vendors at the Country Fair, only 2 sell jewelry. One vendor sells very cheap jewelry in the $3 to $10 price range, the other specializes in crystal jewelry in the $25-$100 price range. Impressions of Drama will be distinctly different from these because of its unique products and hand-made, quality merchandise will be targeted to those customers who want to purchase quality jewelry and accessories in the $15-$35 price range.

LOCATION

Impressions of Drama Jewelry will be operated from the owner's home. The owner will manage the business using a computer with accounting and inventory tracking software. Orders will be shipped and invoiced from this location. The owner will also handle orders received via the internet.

The business will operate a booth at the local flea market from Friday to Sunday beginning November 15, 1996. The flea market has a long standing reputation in the Detroit area and attracts millions of customers annually. The flea market is open Fridays 4:00-9:00pm, Saturdays 10:00-6:00, and Sundays 10:00-6:00. The vendors pay a weekly rate of $115 and can move out of the flea market at any time.

MANAGEMENT

Bessie will manage the day-to-day operations of the business. She will operate the flea market Friday through Sunday and will concentrate on making her jewelry and selling her products during the week. She will also be responsible for managing matters concerning finances, promotion, and personnel.

The business will use the services of an attorney and accountant. The attorney will provide the necessary guidance for trademarking the Impressions of Drama product line. The owner will handle the finances and record keeping and will rely on her accountant for year end tax returns and quarterly reviews.

Ms. Smith has ten years experience in retail management. In addition she has had formal education in fashion merchandising and marketing. Bessie plans to attend small business management courses to gain knowledge on how to manage a successful small business. She will also need training on the computer and on developing a catalog.

PERSONNEL

Initially, Bessie will operate the business by herself. As demand grows and her business expands, Ms. Smith will hire Rosa Perez to assist with running the store during the evenings, Rosa Perez, a friend of the owner's since high school, is long-time trusted friend who will be available on-call to the owner when needed.

Ms. Perez is also interested in the jewelry business. She has retail experience and is interested in expanding her knowledge of the industry.

Medical benefits will not be offered initially. It is the owner's hope, however, that once the business is successful and employees are hired full-time, employees medical insurance will be paid.

Additional employees may be hired on a temporary basis or as demand requires.

CAPITAL EQUIPMENT LIST

V.33-6 Modem - Needed to set up a Bulletin Board

Service. Will enable customers to retrieve business

information on the Internet, Prodigy, Compuserve,

etc. for advertising all over the world. $140

CPU Maclntosh - with TV hook-up and visual module. $1200

Newton Message Pad 120 $400

Color Ink let Printer $300

Quick Books - Software for bookkeeping. $200

WordPerfect 3.5 $90

Grids (6) - for display of merchandise $200

Wood beams - to section off space for the flea market $100

Track Lighting - for flea market $50

Fabric - for flea market $25

Total Capital Equipment $2680

START UP COSTS

Capital Equipment $2680

Travel Expenses (New York for Supplies) $1000

Flea Market Rental 3 months $1680 ($300 Sec Dep)

Materials/Supplies for jewelry $3000

Initial Inventory for flea market $3000

Misc. Supplies, Professional fees,

Advertising, Insurance, Telephone $1500

Visa/Master Card Equipment & Fees $1000

Total Start Up Costs $13860

Appendix A

Bessie Smith

Address

Telephone Number

Education

Wayne State University

Fashion Merchandising & Marketing

Sophomore Standing

High school

Graduate

Employment

Manager 6/92 to present

THE COLLECTION

Supervisor of three employees, responsible for all store operations, took orders, coordinated fashion shows, and handled all banking

Manager 7/91 to 6/92

THE EMPORIUM

Responsible for store operations, supervised employees, and top sales person for volume and dollar amount

Manager Trainee 10/90 to 2/92

Shoe Store

Assisted with sales, learned store operations including purchasing merchandise, creating special promotions, and accounting procedures

References available upon request

Appendix B

Financial

Bessie provided a detailed break down of projected cash flow for the first and second year of operations as well as the projected income statements for year one and two.

Bessie estimated sales to be from $150 per week to $640 per week including consignment sales. She expected her sales to be seasonal which has been reflected in the projections with peaks in the summer & Christmas seasons. The cost of sales are estimated to be at 40 percent of sales.

Although Bessie's projections are good the actual figures are too much to detail here.

G.

BUSINESS PLAN

FOR

HOME BASED ON-LINE AUCTION SALES BUSINESS

Submitted by

Sally Iceberg

and

Au Sable Valley Community Mental Health

Submitted to

MICHIGAN COMISSION FOR THE BLIND

Department of Labor and Economic Growth

TABLE OF CONTENTS

Business Description 3

Management 4

Financial Projection 5

Financial Report 6

Commitment/Responsibilities 7

Attachments Letter of Support 8

BUSINESS DESCRIPTION

A Sole-Proprietorship engaged in Internet marketing of reproduction glassware, garage sale items and various donated items with e-Bay being the primary auction site. Better market exposure is provided on the Internet due to the high traffic generated and is expected to provide demand and push innovation above the bulk unit cost resulting in profits. Sally Iceberg (owner/operator) will have access to e-Bay 24 hours a day, 7 days a week within the first 6 months after the training process, which will leave the time of business operation to the discretion of the operator, It is noted that for this business to be successful, a minimum of 20 hours per week must be dedicated to its operation. Direct competition is minimal, as each item is fairly unique depending on its age and condition, Initial inventory and equipment supplied by Michigan Commission for the Blind with monitoring to be continued for three years. Au Sable Valley Community Mental Health shall be responsible for assisting Sally Iceberg with initial training and problem solving on a consultant basis when training is completed, Internal supports will be set up when possible and as needed. The Supported Employment Team at CV Enterprises, a division of the Behavioral Health Systems, will be responsible for the initial e-Bay sale training as well as being available on a limited basis as a consultant once training is completed.

MANAGEMENT

On-Line Auction Sales Business will be owned and operated by Sally Iceberg of Michigan. The owner will be responsible for repairs and maintenance on equipment (i.e. computer, camera and office fixtures/furniture) utilized in running the business and responsible for monthly service fees for both e-Bay and phone devices as well as postal costs. The owner will also be responsible for bank transactions, postal arrangements and maintaining adequate inventory for successful sales.

The business will utilize the services of one or more of the following: an accountant/payee/guardian, to provide year-end financial statement and tax returns. The business owner will manage daily bookkeeping, with monthly reports to be turned over to the accounting service on a quarterly basis.

Au Sable Valley Community Mental Health Staff will assist Sally Iceberg on a daily basis as needed to assure the necessary supports are in place for Sally to be successful.

If for any reason the On-Line Auction Sales Business ceases to conduct business within three years of the initial equipment being purchased, all equipment purchased by Michigan Commission for the Blind will revert back to their possession.

FINANCIAL PROJECTIONS

On-Line Auction Sales financial projects for Sally Iceberg, with e-Bay being the primary On-Line Auction Service. E-Bay, the #1 Auction Site in the world, as of June 28, 2000, as reported by Auction Watch.com, over 4 billion are served by the auction services provided by e-Bay. As of June 2000, e-Bay had 4,150,000 million auctions daily in over 4000-plus categories. E-Bay has also partnered up with AOL and E-Stamp and bought out the reputable Billpoint on-line banking service and are now running through e-Bay, with the current growth in the on-line auction market, the potential for profits in the business, of selling products through this venue is certain and sure to increase with each year. Sales will only be limited to the availability of product as addressed below and the amount of time Sally Iceberg allows to the dedication of the business, as addressed below and in the Commitment/Responsibilities statement.

Assumptions to Financial Projections:

1. Sales projected are based on the number of items sold per month with the customer base being nationwide, Projected Sales based on a 5 item sale per week for the introductory/training period (approx. 6 months) will show projected sales of 75.00 per month. Upon completion of the introductory/training period based on a 10 item sale per week will show projected sales of S450.00 per month with approximately $160.00 of that being Clear Profit. The potential for sales in excess of these figures is Iikely.

2. The business will pay phone line costs, internet costs and service cost for postage pickup and repair and maintenance of equipment.

3. Inventory will be purchased through wholesale dealers, yard sales, garage sales and various donation sources.

4. In the first three years, the business will be operational a minimum of 20 hours per week dedicated to the business operation. The time will be used to service customers through on-line e-mail communications, posting and re-listing sales, package preparation and handling, inventory tracking and banking, Activities will be based on the demand and need on a per sale/item basis.

FINANCIAL REPORT

Estimated monthly earned income from on-line sales for Sally Iceberg selling reproduction glassware and china and various donated items based on a 10 item sale per week x 4.5 weeks monthly would equal 45 sales monthly.

Expenses Income Current Projected

Phone $26.00 $20.00

Internet Services $20.00 $20.00

Inventory from MCB $300.00 $0.00

Inventory (as needed) $0.00 $157.50

e-Bay expenses $22.50 $50.00

Postage Fees (package pickup) $0.00 $17.00

Technical Assist ($100.00 per yr as needed) $0.00 $8.33

Repair & Maintenance ($100.00 per year) $0.00 $8.33

Office Supplies $10.00 $10.00

Sales $0.00 $450.00

Projected Profit (per month based on the above figures) $158.84

The above estimates based on our experience and research throughout the life of our training program, Listers / Supported Employment on-line sales training services through CV Enterprises, a Division of the Behavioral Health Systems.

Employment Training Specialists

COMMITMENT / RESPONSIBILITIES

I, Sally Iceberg, agree to work a minimum of 20 hours per week on my on-line auction business. The 20 hours should consist of one or more of the following activities:

Listing / Re-listing Auction Sales

E-mail Communications

End of Auction Notification

Packaging Items for Shipping

Shipping Items

Banking

Inventory Management

Feedback Profiling

Reporting

I further agree to report my activity to Au Sable Valley Community Mental Health Supported Employment Program on a monthly basis until such time that it is deemed unnecessary to do so by the Supported Employment Program Au Sable Valley CMH and MCB, The report will contain, but is not limited to, the following information pertaining to my on-line sales business:

Date Worked

Time Started, Time Stopped & Total Hours

Activity

I understand that if for any reason in the next three years my On-Line Sales Business should cease to conduct business, all of the equipment purchased by Department of Labor and Economic Growth, Michigan Commission for the Blind will be returned to then.

SALLY ICEBERG GUARDIAN

SUPPORTED EMPLOYMENT

Au SABLE VALLEY COMMUNITY MENTAL HEALTH

MICHIGAN COMMISSION FOR THE BLIND

LETTER OF SUPPORT

Au Sable Valley Community Mental Health, Supported Employment Program will support Sally Iceberg and assist her when necessary with her On-Line Sales Business on e-Bay. Supported Employment staff and Sally's home staff will assist Sally with bank transactions, postal arrangements and help to obtain stock, which Sally will sell through e-Bay, If Sally is unable, for some reason, to arrange transportation, Au Sable Valley Community Mental Health staff will assist her. A job coach will be provided if Sally needs help with her computer in order to sell merchandise on e-Bay. Au Sable Valley Community Mental Health will assist Sally Iceberg with initial training and problem solving on a consultant basis when training is completed. Supports will be set up when possible and as needed for as long as Sally's business is in operation.

Au Sable Valley Community Mental Health Representative

H. Letter of Intent

To My MCB Counselor

I, George Washington would like to establish a youth recreation center in my hometown. At this time there is nothing but school activities for the children in this area. I feel giving the children a supervised place to go and have fun would be a great attribute in this community. It would keep children off the streets and lower crime rates in the youth of this area if there was somewhere they could go after school and on weekends. I believe that this business will be profitable in this area and be well supported by the community because there would be responsible supervision and management of this business.

The type of business I would like to open will have arcade games, snack bar, music, and pool tables. It would have a fun yet supervised atmosphere.

The projected costs of this would include a building for $130,000, café equipment for $22,000, video equipment for $10,000, initial stock supplies $4,000, and licenses for $120. There would need to be five employees, including myself. I am applying for SBA loans and bank loans to help finance the costs.

I am planning to take courses in small business management through my local community college. I have had experience working at various restaurants. I am planning on taking the MCB Business Enterprise P