BusinessPlan

Contact: Voula Konstantarakis
Phone: (702) 596-3333
E-mail: voulatsunamicosmetics@yahoo.com

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Tableof Contents
ExecutiveSummary.................................................................................................... 4
Use of Funds........................................................................................................ 5
Company Ownership........................................................................................... 5
Company Location............................................................................................... 5
Mission................................................................................................................. 5
Services.................................................................................................................... 6
Product Description.............................................................................................. 6
MarketAnalysisSummary............................................................................................ 8
Market Segmentation........................................................................................... 9
Market Needs..................................................................................................... 10
Industry Analysis................................................................................................ 11
Competitive Comparison................................................................................... 11
Strategyand ImplementationSummary........................................................................ 13
Competitive Edge............................................................................................... 13
Marketing Strategy............................................................................................. 13
ManagementSummary.............................................................................................. 15
FinancialIndicators................................................................................................... 16
Appendix.................................................................................................................. 26

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and backed by the personal integrity. Aleksandar Maric and Shannon Cobb will own and operate the Company. Within that large grouping. experience. and renewed. European-formula body care products designed to help women feel beautiful. Through these proven marketing efforts. Tsunami Body Works intends to promote its line of body and skin care products to retail salon environments. collateralized by the assets of the Company. bolder. and will conduct the bulk of its business via the Internet. as well as to consumers. To achieve the Company’s objectives. Tsunami Body Works. With a focus on excellent customer service and affordable. networking. use of a website. Both owners have extensive experience in the beauty and skin care industry. In order to take advantage of the high-end salons and spas that accompany some of the world’s most luxurious hotels. please refer to the Management Summary. Tsunami Body Works will provide the highest quality natural cosmetic products. For further biographical information on each member of the management team. Tsunami Body Works will position itself as a leading beauty products supplier in the online marketplace. Tsunami Body Works intends to achieve a loyal customer base and expand its product line.000 in total funding through bank or Small Business Administration (SBA)-backed lending. by launching a creative promotional campaign intended to saturate the market with brand awareness. offering unique formulations that have a large and growing need.ExecutiveSummary Tsunami Body Works. Tsunami Body Works will be able to establish and build a strong and sustainable brand image. In addition. Buying products over the Internet has become the norm in the past decade. and a contractual guarantee from the owners. By catering both directly to consumers and to beauty shops. ranging from providing spa services on major cruise lines to serving as a hair stylist for 25 years. The bank or SBA-backed loan will be paid back from the cash flow of the business within seven years. The Company will utilize state-of-the-art technology to make superior products that feature all-natural ingredients. one of the world’s premier tourist destinations. and television commercials. the Company expects growth as a result of positive word of mouth referrals from customers who experience its outstanding European products and competitive prices. Internet marketing. _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 4 . LLC is seeking $150. Specific advertising channels will include flyer distribution. natural cosmetic products have become some of the highest sellers. The Company will cater directly to women who earn mid-level salaries and are interested in salon level products that can be used in the privacy of their own homes. Nevada that is scheduled to begin operations in October 2010. Nevada. The Company will be headquartered in Las Vegas. LLC (also referred to as “the Company”) is a start-up business headquartered in Las Vegas. Tsunami Body Works will be able to offer customers across the country the highest quality beauty products without having to cater to a specific area of operation. high-quality products. The Company will be a unique online retailer offering a wide selection of high-quality. Tsunami Body Works will offer its line of beauty products to spas and salons in the Las Vegas area. with any type of product available and usually for a reduced price. Beauty products make up a large segment of the American consumer economy.

975 Start-up Assets Working Capital $84.000 Consultants $5. Sahara Avenue Las Vegas.000 Stationery $6. LLC will be a Limited Liability Company registered in the state of Nevada.000 Total Start-up Expenses $39.000 Ow ner Investment Investor $0 $0 Total Source s $150.” _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 5 .000 Brochures $1. The Company will be jointly owned by Shannon Cobb (50%) and Aleksandar Maric (50%).Use of Funds The table below outlines the sources and uses of funding: SOURCES OF FUNDS Loan $150. By providing superior products sourced from nature’s finest ingredients.000 USES OF FUNDS Start-up Expenses SOURCES & USES Legal $20.025 $150. we are dedicated to helping our clients maximize their individual beauty.000 Rent R& D $975 $2. Nevada 98117 Mission The Company’s mission statement is as follows: “At Tsunami Body Works.025 Inventory Equipment Property Other Long-term Assets Total Start-up Ass ets Total Uses $20. LLC will be located at the following address: 8663 W. we offer a variety of treatments designed to enhance each client’s unique features while ensuring that she has a relaxing and memorable experience.000 $0 $0 $110.000 Other $2.000 Company Ownership Tsunami Body Works.000 Insurance $3.000 $6. Company Location Tsunami Body Works.

With continued use. all of which feature formulations that are designed to nourish and protect the skin. and sizes and attacks areas such as the buttocks. making all women look and feel younger. _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 6 . shapes. thighs. The Company will offer three unique product lines. tone. and hydrate the body.Services Tsunami Body Works will be an online retailer offering various body care products for women. Tsunami Body Works’ products are as follows: Tsunami Hot and Cold: • Cellulite & Weight Loss o Tsunami Cellulite Cream o Tsunami Cold Gel • Hand and Foot Care o Tsunami Foot and Nail Cream Lavendina: • Body Care o Lavendina Body Cream o Lavendina Lotion o Lavendina Shower Gel with Scrub • Hand and Foot Care o Lavendina Hand Cream o Lavendina Foot and Nail Cream Fabulous Vegas Baby: • Body Care o Vegas Baby Body Cream o Vegas Baby Lotion o Vegas Baby Shower Gel with Scrub • Hand and Foot Care o Vegas Baby Hand Cream Product Description Tsunami Body Works is dedicated to improving the quality and accessibility of body care products for women across the globe. The Company will combine traditional European beauty formulas with modern technology to create highquality products made from all natural ingredients. and renewed. the Company has developed Tsunami Hot and Cold. and arms. To help women feel more confident about their bodies. Tsunami Body Works’ three product lines are further described below: Tsunami Hot and Cold: Tsunami Hot and Cold has been scientifically formulated to reduce the appearance of cellulite – a serious problem for most women. bolder. Cellulite affects women of all ages. all natural ingredients. products define. The Company is committed to helping women uncover their natural beauty by providing them with superior products made with the finest. a scientifically formulated line designed to reduce the appearance of cellulite.

improving the appearance of unsightly dimpled skin. and grapeseed oil. and E. as well as protein and amino acids. The Lavendina product line will feature the essence of lavender to help women experience serenity and tranquility. Lavendina: For many centuries. while Shea Butter is known to reduce wrinkles and protect skin against environmental aging. overworked skin. and well-hydrated after using Lavendina products. Fabulous Vegas Baby: The Fabulous Vegas Baby line is designed to quench and hydrate parched. Products will be made from finest emollient ingredients such as avocado oil. grape seed oil. _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 7 . Avocado oil is rich in vitamins A. lavender has been used to soothe and calm the mind and promote restful sleep. C. flaky skin. rich in essential fatty acids. Shea butter. soft. damaged skin. skin will be left clean. helps protect and soothe dry. Additionally. By combining natural ingredients and essential oils. and softens and conditions dry.

7 35.census.76% 0.025.59 672.000 .1% 1. Obtained at: http://bao.4% U.209.999 1 2 210.$24.65 2.241 34. 2009 estimate 1.514 $150.27 1. The following table provides the most current U.787 $42.511 116.025.0 37.375.3 37. Obtained at: http://www. September 2010 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 8 . and the United States as a whole.3% Population.164 $54.0 37.294 311.369 613. a market research firm.496 116.623 3. The following table provides pertinent figures for the populations of Las Vegas.1% 9.333. April 1.MarketAnalysisSummary Tsunami Body Works’ location in Las Vegas. Nevada (Clark County) places it in one of the world’s most popular tourist destinations.esri.871 $44.836 $132.614 $57. Clark County.863 2.546 $65.641 78.2015 Annual Rate 580.773 $29.5 35.212.301 10. This data is provided by ESRI.160 323.8 35. Census Bureau. 2000 1.181 $54. The Company will also target high-end beauty salons in the city of Las Vegas as a way to build a brand image and grow its market share.com/esribis.060 $25.391 1.834 Population.gov/ September 2010 Business Analyst Online.13% 2.16 Median Household Income 2000 2010 2015 $44.587 $26.S.S.738 Tsunami Body Works will primarily provide its products through Internet based sales.341 $161.0 37. 2000 to July 1.442 $61.72 136. the state of Nevada.8% 11.17 3.2 Full Demographic Report Las Vegas – Nevada – United States – Side-by-side analysis United Las Vegas Nevada States 2010 Total Population 2015 Total Population 2010 .2 35.1% 9. 2009 38. Nevada – Population & Growth1 Population. percent change.000 $15.886 1.739 $30.748.761.189 Per Capita Income 2000 2010 2015 $22.989 8.140 2.76% 2010 Households 2010 Average Household Size 2010 Families 2010 Average Family Size 210.999.4% 8.3 Median Age 2000 2010 2015 2010 Households by Income Household Income Base < $15.359 3. The Company’s chosen location will maximize the business’s ability to tap into a steady stream of consumer traffic.367 $62.759.301 2.902.659 $21. Census data with regard to the population growth of Clark County.

6% 6.370.$49.2% 7.6% 75.8% 11. No Degree Associate Degree Bachelor's Degree Master's/Prof/Doctorate Degree 378.2% 1.5% $70. No Diploma High School Graduate Some College.6% 14.4% 14.999 $200. Tsunami Body Works is interested in catering to a large segment of the population.539 205.5% 29.9% 3.999 $150.3% 2010 Population by Sex Males Females 50.999 $50.4% 14.8% 50.6% 11.1% 14.856 8.1% 14.9% 13.7% 7.7% 9.4% 2.7% 15.14 15 .863 7.212.5% 3.$149.999 $100.1% 6. Tsunami Body Works’ line of products will be _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 9 .3% 6.6% 6.$74.4% 7.648 7.8% 29.2% 50.000 + Average Household Income 10.0% 21.$34.210 2010 Population by Age Total 0-4 5-9 10 .64 65 .6% 10.3% 15.8% 21.$99. providing salon.3% 6. The Company will focus on tailoring its products to following types of consumers: • • • • Mid level annual income Between the ages of 21-50 College educated Female Tsunami Body Works will address a large market with a significant portion of its budget already allocated to cosmetics and other beauty products.9% 29.9% 7.2% $71.6% 15.2% 2.34 35 .44 45 .8% 17.4% Market Segmentation Cosmetics and other beauty products are a large and growing industry.6% 23.2% 6.173 2.54 55 .7% 49.4% 6.8% 19.8% 3.9% 14.5% 6.9% 23.4% $69.5% 7.0% 75.4% 14.74 75 .3% 49.0% 4.7% 6.24 25 .4% 22.6% 2010 Population 25+ by Educational Attainment Total Less than 9th Grade 9th .7% 10.4% 3.7% 7.4% 12.7% 14.999 $35.5% 13.000 .1% 11.3% 12.8% 2.8% 6.7% 7.831.8% 4.9% 13.7% 15.000 .000 .000 .9% 7.19 20 .4% 49.330 9.999 $75.748.000 .3% 74.1% 8.7% 7.0% 4.9% 13.3% 9.4% 6.$199.000 .8% 1.0% 6.372 7.294 311.$25.3% 13.8% 6.3% 1.and sp-a level products for home use.9% 9.84 85+ 18+ 580.12th Grade.

and are of higher-quality than their synthetic relatives. Tsunami Body Works will provide the types of products usually found only in high-end salons and spas for women around the country to take home and use in their own bathrooms and houses. Having products available in Las Vegas spas will also help the Company build and sustain its brand image. The Company will meet and address consumer needs on a second level as well. The following chart shows the age-by-sex breakdown of the population of the United States.” Obtained at: http://tinyurl. Natural products are better for the welfare of the planet. Tsunami Body Works will also target its line of products to spas and salons in the Las Vegas area. The benefits of natural and earth-healthy products are two-fold. Tsunami Body Works’ line of beauty products and cosmetics will provide women with the freshest and best natural beauty products. Tsunami Body Works will cover the needs of customers both in the salon and at home. A large number of consumers are becoming aware of the need to purchase products that are created with the overall health of the planet in mind. Women of all kinds have a need for salon and spa quality beauty products outside of the salon and spa. “Natural Ingredients Drive Growth in Cosmetics and Toiletries. Tsunami Body Works will help meet the growing need for natural cosmetic products that is sweeping the cosmetic and beauty product industry. Market Needs According to an article provided by the online service Market Research World. By catering its product line to both women and salons. Nevada is home to some of the world’s most luxurious hotels and spas. Population Age-by-Sex breakdown Market Research World. By pursuing local spas with its products. beyond just satisfying the needs of customers for natural based beauty products. U.derived from natural ingredients from the highest quality sources. The Company will place strong emphasis on this aspect of its product line. demand for cosmetics has been stagnating in developed markets such as the United States during the last five years. In an effort to improve sales. the Company will tap into one of the largest and most stable consumer spending streams in the world.S. Las Vegas.3 By providing the finest quality of naturally-derived beauty products.com/2uj4fgo September 2010 3 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 10 . manufacturers have capitalized on the growing consumer interest in health and wellness by investing in cosmetic products containing natural ingredients. allowing the Company’s target customers to enjoy healthy skin without damaging their skin or the planet as a whole.

6 million 9 $1. establishments: 11.805 $1. state. 4 Dun & Bradstreet.S. and Sundries (5122) Establishments primarily engaged in the wholesale distribution of prescription drugs.4 Industry: Drugs.338 Number of people employed in this industry: 141. and local level. Market Size Statistics Estimated number of U. and Hair Products and Cosmetics. obtained September 2010 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 11 . with its intention of its business over the Internet.3 billion Average number of employees per establishment: 13 Average sales per establishment (unknown values are excluded from the average): $34. % Total Employees Sales Employees Sales Nevada 119 1 1. proprietary drugs. and Sundries industry (Standard Industrial Classification 5122). perfumes. often times offering deals on shipping and handling when items are purchased through their Internet retail outlets. Industry subset data is measured on a national scale only. druggists' sundries.9 7. The Sephora chain includes more than 750 stores in 21 countries. and hair products 1.2 million Market Analysis by Specialty (8-digit SIC Code) Total Total Average Average SIC Code SIC Description No Bus. A detailed analysis of the competitive landscape will prepare the Company for any potential market variables that may arise.346 11. Many high-end retailers carry their full product lists online. allowing the Company to have unlimited access to the entire population of the United States. Proprietaries. will face competition from a variety of types of businesses. as the above chart shows women are a large percentage of the population.6 billion 6 $1.3 M 5122-0101 Cosmetics 1. Industry Data for SIC 5122-0000.8 billion 8 $1 M Competitive Comparison Online shopping is quickly becoming one of the most common purchasing methods in the United States. % Total Employees Sales Employees Sales 5122-0100 Cosmetics.sephora. wholesalers. The Company will also operate in the industry subsets of Cosmetics.7 680 $79. Industry Analysis Tsunami Body Works will operate within the Drugs. Tsunami Body Works is aware of the need to evaluate its competitors. Perfumes.355 $1. Tsunami Body Works.3 million Las Vegas. and toiletries.com • Overview: Sephora is a chain of cosmetics stores founded in 1969 in France.603 Total annual sales in this industry: $317.8 million 9 $1. and.003 $122. Proprietaries.Tsunami Body Works will sell its product line via the Internet.1 million Market Analysis by State and Metropolitan Area Total Total Average Average State/Metro No Bus. A description of Tsunami Body Works’ competition is as follows: Sephora www. These businesses include large retail outlets with well established retail locations nationwide. The Company will primarily target women.923 17 15. The table below shows Dun & Bradstreet data regarding the performance of the businesses in this industry on a national. NV 82 0. and individual cosmetics companies that sell their products direct to consumers via their websites.

see Competitive Edge. making The Body Shop the second largest cosmetic franchise in the world. Sephora also sells all of its products online. There are currently 2. men.• Advantages: Sephora offers a wide range of cosmetic products in a selection of categories.000 of the world’s finest organic beauty and aromatherapy products. Offering over 1. hair. tools. bath and body. For more information regarding the Company’s competitive advantages.com • Overview: The Body Shop is a cosmetics company founded in 1976 in England.com • Overview: Saffron Rouge is the first beauty retailer in the world to focus exclusively on organics. _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 12 . Saffron Rouge is North America’s number-one online retailer of organic skin care and cosmetic products. or provide evidence that certified organic content is being used as much as possible.saffronrouge. but does not specialize in that type of product. • Disadvantages: The Body Shop sells products only in its own retail stores. • Disadvantages: Saffron Rouge is only an online retail outlet.400 in 61 countries. and does not sell products to salons and spas.thebodyshop-usa. fragrance. and natural and organic. • Disadvantages: Sephora offers a selection of natural and organic products. skincare. selling products provided by other companies and nothing of its own design. including makeup. • Advantages: The Body Shop specializes in natural cosmetics products and is active in many social services and charity programs around the world. Saffron Rouge www. • Advantages: Saffron Rouge offers only products that have at least one of the organic body care certifications. Saffron Rouge offers almost 30 organic cosmetic brands. The Body Shop www.

allowing for increased brand exposure. With its guiding principles established. indicating its functionality beyond skin care and more towards overall health and vitality of the body. Tsunami Body Works will send a clear message about the key benefits of its solutions-based products. These competitive advantages are outlined in greater detail below. that it will use throughout its promotional strategy and within its various marketing materials. These will be distributed within a considerable radius of the Company’s proximity to businesses and residences. For this reason the Company will create commercials to be aired on home shopping networks such as QVC. Competitive Edge Tsunami Body Works intends to capitalize on its core strengths in order to establish itself as a leading supplier of spa and beauty products to the Las Vegas marketplace.        Unmatched customer service All-natural European products Solutions-based to help firm and smooth the skin Competitive pricing structure Ownership experienced in salon atmospheres Consistency in product availability Aggressive marketing campaign Marketing Strategy The Company will generate interest in its beauty products by utilizing a variety of advertising channels to increase Tsunami Body Works’ exposure among its target demographic.Strategyand ImplementationSummary “The European Secret to Beauty and Wellness™” Tsunami Body Works will develop a brand that encompasses quality and availability in its provision of body care products to the Las Vegas marketplace. Specific channels will include the following: • Television advertising: The Company recognizes that television advertising is still an effective means of reaching a large target population. the Company will build on its strengths and advantages as outlined in the following section. • Flyers: Tsunami Body Works will create colorful and informative flyers that will display the Company’s range of products. as well as multiple product logos. the Company has developed a memorable brand logo. To increase brand awareness. _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 13 . This approach intends to help Tsunami Body Works achieve the following objectives:  Establish a strong brand name and reputation  Fuel growth through positive word of mouth referrals  Earn enough revenue to expand operations To reach these operational benchmarks. The Company will illustrate this message with a diverse marketing campaign involving a number of modern and conventional techniques to bolster awareness at the street level as well as online.

This website will be search engine optimized and contain a number of features including: product information.tsunamibodyworks. testimonials. Google AdWords. which accounted for generating another 250 billion impressions. Barb. photo gallery. • **suggestion** Internet advertising: Tsunami Body Works will benefit from using a combination of Internet advertising including Cost-per-Click. Influence posts were numbered at 1. and list of services. Events may include seminars. and luncheons which provide opportunities to speak to and associate with larger audiences. and banner ads. mixers. and colleagues who are pleased with their experiences with a particular business.com/2010/04/25/word-of-mouth-marketing-stats/ 5 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 14 . the Company will benefit from participating in a number of networking opportunities that have the potential to yield new business contacts as well as nourish existing ones. Mashable: the Social Media Guide. location. peers. “The State of Online Word of Mouth Marketing [Stats]. people are making 500 billion influence impressions on one another about products and services every year.”5 Dybwad. This will create a positive business environment that encourages discourse among the Company and its target market.com) to generate interest in its beauty products. According to research conducted by Forrester. • **suggestion** Print media: Tsunami Body Works will place ads in national print publications. • **suggestion** Networking: As with any relationship-based business. These advertisements will include the Company’s location and will also offer limited time discounts or other promotions. Tags. In other words.64 billion per year.• Website: The Company will capitalize on its existing website (www.” Obtained at: http://mashable. company profile. there were “256 billion influence impressions occurring per year [in 2009]. This effort will help generate interest in the Company from the online community and general public. • **suggestion** Word of mouth: Word travels quickly between family members. Tsunami Body Works will attend a variety of events that draw substantial numbers of prospective customers. The Company will rely on this effective and inexpensive resource to generate interest in its beauty products.

Owner Ms. _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 15 . and has devoted her entire professional career as a stylist. serving as a massage therapist for domestic and international clients. long-term clientele. she has owned and operated her salon Hair at the Lakes. For the last 25 years. His professional expertise includes providing concierge-level service among cruise lines. Maric is a Serbian immigrant who has spent only the last five years in the United States.ManagementSummary Shannon Cobb. Cobb is an entrepreneur at heart. Aleksandar Maric. performing hairdressing for a devoted. Owner Mr.

02 7.000 Revenue Direct Costs $400.969) $45. taxes.941 $48.619) $18.615 Net Profit ($70.71% 48.549 EBITDA* ($60.000.73% Interest Coverage Ratio -6.000 Operating Expenses Net Profit $200.000 $600.764 Operating Expenses $429.565 $229.790 Gross Margin $368.427 $656.418 $745.49 Net Cash Flow Cash Balance .FinancialIndicators The following table and graph illustrate the financial goals of the Company during the next three years: FINANCIAL HIGHLIGHTS Year 1 Year 2 Year 3 Revenue $437.29 27.406 $29.000 $800.293 $498.614) $54.Ending ($65.09 6.911 Financial Highlights $1.346 $181.11% 188.279 $552.808 $203.60 Debt Service Coverage Ratio -2.010 $542.838 *Earnings before interest.000 $0 ($200.23 2.000) Year 1 Year 2 Year 3 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 16 . depreciation & amortization Profitability Ratios Gross Margin/Revenue 84% 84% 84% EBITDA/Revenue -14% 8% 23% Net Profit/Revenue -16% 7% 22% Debt Ratios Debt Ratio (Total Debt/Total Assets) 352.141 $885.698 $195.

$2. $2. $32.723 $140. $6.380 $107.830 $7.764 84% Gross Margin Gross Margin % _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 17 .469 Vegas Baby Body Cream 6 oz.375 $13.544 $3. $16. $4.850 $20.610 $1.883 Tsunami Hot 6 oz.250 $48.163 Tsunami Cool 4 oz.580 $2.816 $5.583 $5.591 $72.064 $17.300 $76.137 Vegas Baby Hand Cream 2 oz. $12.106 Lavendina Body Lotion 4 oz.059 $27.888 $60. $15.065 $4.291 $20. $2.810 $10. $4. $2.839 $29.540 $23.915 $2.285 Vegas Baby Body Lotion 4 oz.042 $4.664 $15.285 $3.101 Lavendina Hand Cream 2 oz.538 $3.394 $53.426 Vegas Baby Show er Gel & Scrub 4 oz.810 $10. Vegas Baby Balm 4 oz.042 $4. $1.692 $2.029 $16.659 Vegas Baby Body Lotion 4 oz.026 $368. $18.791 $26. Lavendina Hand Cream 2 oz.722 $3.149 $0 $103.870 $5. Total Re venue Direct Cost of Revenue Lavendina Balm 4 oz. Direct costs include all costs which can be directly tied to revenue and include “cost of goods.070 $25.149 $103.091 $23.920 $79. $10.229 $28.950 $103.915 $5.718 Lavendina Body Lotion 6 oz. $2.026 $0 Total Direct Costs $69.028 $3.194 $19. $1.080 $37.816 $5.720 $28.723 $0 $140.152 Lavendina Body Cream 6 oz.414 Vegas Baby Hand Cream 2 oz.776 $11.025 $3.487 Vegas Baby Body Lotion 6 oz. $2.225 Subtotal Cost of Revenue Other Direct Costs $69.725 $9.310 $31.107 Vegas Baby Show er Gel & Scrub 6 oz.455 $25.215 $13.575 $15.426 Lavendina Show er Gel & Scrub 4 oz.306 Tsunami Cool 6 oz.225 $5.955 $21. Lavendina Body Lotion 4 oz.The following is a three-year revenue forecast.870 $3.583 $3.722 $2.095 Lavendina Show er Gel & Scrub 6 oz.073 Vegas Baby Show er Gel & Scrub 6 oz. $13.650 $656.141 $34.971 $91. $2.048 Vegas Baby Show er Gel & Scrub 4 oz.746 Tsunami Hot 6 oz.643 Vegas Baby Body Lotion 6 oz.563 $20.544 $3.215 $13. Lavendina Show er Gel & Scrub 4 oz.692 $2.153 $21.194 $15.538 $3. $12. $51.238 Tsunami Cool 4 oz. $14.523 $33. $2.375 $65. $2.580 $3. $7.900 $14.825 $44. $29.790 Lavendina Balm 4 oz.628 $885.925 $44.349 $24.107 Lavendina Show er Gel & Scrub 6 oz.970 $19. $9.863 $21. Lavendina Body Cream 4 oz.908 Lavendina Body Cream 6 oz.100 $437.970 $14.245 $9.418 84% $745.038 $4.610 $3. $6.279 84% $552. $10.598 Vegas Baby Body Cream 4 oz.238 $67.487 Lavendina Body Lotion 6 oz.380 $18.790 Vegas Baby Balm 4 oz. $35. $8.” Year 1 Year 2 Year 3 REVENUE FORECAST Revenue Tsunami Hot 4 oz.079 Vegas Baby Body Cream 4 oz.019 $12.790 Tsunami Hot 4 oz. $1.781 Tsunami Cool 6 oz. $11.148 Lavendina Body Cream 4 oz.394 $17.152 Vegas Baby Body Cream 6 oz.427 $25.043 $3.028 $3.484 $6. $52.

$3.24 $5.126 Vegas Baby Body Cream 4 oz.22 $4.99 $31.22 $4.38 $4.000 600 4. 1.880 Vegas Baby Hand Cream 2 oz.45 $31.32 $4.38 $3.27 $2. $14. Vegas Baby Show er Gel & Scrub 6 oz.99 $11.27 $4.80 $2.50 $21.32 Tsunami Hot 6 oz. $23. Vegas Baby Body Cream 6 oz.27 Lavendina Balm 4 oz. $11.20 Tsunami Cool 4 oz.38 $4.025 2.22 $4.575 2.76 $3. Lavendina Body Cream 6 oz.30 $4.27 $4.20 $23. $28.075 600 19.30 $4.76 $3. $3.800 1.76 $3.99 $18.50 Tsunami Hot 4 oz.45 $31.200 900 28.90 $25.99 Vegas Baby Body Lotion 6 oz.50 $28.038 Tsunami Cool 6 oz.38 $4. 450 675 911 Vegas Baby Show er Gel & Scrub 4 oz.30 Lavendina Show er Gel & Scrub 6 oz.38 Lavendina Show er Gel & Scrub 6 oz. $23.32 $4.50 $27. $39.99 $16. 600 900 1.215 Units Vegas Baby Show er Gel & Scrub 6 oz.99 Lavendina Body Lotion 6 oz. $28.33 $21. Tsunami Cool 6 oz.350 2.27 $4.800 2.215 38.27 $4.54 $2.215 Lavendina Body Lotion 6 oz.250 3. Total Units UNIT ASSUMPTIONS Unit Price Tsunami Hot 4 oz. $31.50 Lavendina Hand Cream 2 oz.33 $21. $2.76 $3.50 Lavendina Show er Gel & Scrub 4 oz. Vegas Baby Balm 4 oz.87 $3.734 Tsunami Cool 4 oz.90 Vegas Baby Body Cream 6 oz. $21.38 $3.30 Direct Unit Cost _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 18 .20 Lavendina Body Cream 6 oz. Vegas Baby Body Lotion 4 oz.99 $36.24 $5. 600 900 1.76 Lavendina Show er Gel & Scrub 4 oz. $18.645 Tsunami Hot 6 oz.50 $4.30 $4. Lavendina Show er Gel & Scrub 4 oz. 450 675 911 3. $28.90 $25.50 $28.99 $14.50 Tsunami Hot 6 oz.50 $28. 450 3.80 $2. Lavendina Body Lotion 4 oz.80 $2.50 $23.27 $4.99 Lavendina Balm 4 oz. 1. Lavendina Hand Cream 2 oz.27 $4. Vegas Baby Body Cream 4 oz. $16.215 Lavendina Body Cream 4 oz. 450 600 675 900 911 1.215 Vegas Baby Body Lotion 6 oz.87 $5.500 900 6.99 $36.94 $3.24 $5.50 $28.94 $3. Vegas Baby Body Lotion 6 oz.50 $28.30 $4.99 $31. $4.87 $3. 1.30 $22.80 $2. $25.50 $21.27 $2.50 $28. 600 900 1. $36.24 $5. $4.54 $2.24 $5.000 675 4.50 $27.The table below shows the units and pricing assumptions underlying the revenue forecast: Ye ar 1 Ye ar 2 Ye ar 3 Tsunami Hot 4 oz.99 $16.87 $5.50 $4. 600 900 1.50 Lavendina Hand Cream 2 oz.50 Vegas Baby Hand Cream 2 oz. Lavendina Body Cream 4 oz. Lavendina Body Cream 4 oz.94 $3.50 $28.99 Vegas Baby Show er Gel & Scrub 6 oz.80 $2.24 $5. 600 900 1.215 Lavendina Body Cream 6 oz. Lavendina Balm 4 oz.30 $22.00 $22.50 Tsunami Cool 6 oz.500 911 6. Vegas Baby Show er Gel & Scrub 4 oz. 450 675 911 Vegas Baby Body Lotion 4 oz.075 1.99 $18.54 $2.050 1.215 Vegas Baby Body Cream 6 oz. 1. $5.500 2. $22.20 $23.87 $3.20 $39.00 $22.99 $11. $27. Vegas Baby Hand Cream 2 oz.50 Vegas Baby Body Cream 4 oz.50 $28.700 3.215 Lavendina Show er Gel & Scrub 6 oz.30 $4. 450 675 911 Lavendina Body Lotion 4 oz.50 $23. Tsunami Cool 4 oz.33 $21.80 $2. $28.20 $39. $4. Lavendina Body Lotion 4 oz.00 Vegas Baby Show er Gel & Scrub 4 oz.99 $31. $22.99 $14.76 $3. Vegas Baby Balm 4 oz.45 Vegas Baby Body Lotion 4 oz.87 Lavendina Body Lotion 6 oz.99 Vegas Baby Balm 4 oz.

000 $200.000 Lavendina $600.000 $25.000 $0 Lavendina Month 12 Month 11 Month 10 Month 9 Month 8 Month 7 Month 6 Month 5 Month 4 Month 3 Month 2 Month 1 Vegas Baby Tsunami Revenue By Year $1.000 $900.000 $300.000 $45.Year 1 Revenue Monthly $50.000 $10.000.000 $800.000 $5.000 $40.000 $500.000 $30.000 $0 Year 1 Year 2 Year 3 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 19 .000 $20.000 $700.000 Tsunami $100.000 $35.000 Vegas Baby $400.000 $15.

116 $140.350 $71.663 $60.000 $0 $66. Year 1 Year 2 Year 3 Manager/Partner 2 2 2 Director pf Operations 1 1 1 Marketing Manager/Executive Assistant 1 1 1 Sales 1 2 3 Assistant/Receptionist 0 1 1 5 7 8 Manager/Partner $70.500 $77.000 $68.000 $68.279 PERSONNEL FORECAST Personnel Count Total Personnel Personnel Wage Assistant/Receptionist Personnel Costs Manager/Partner Director pf Operations Marketing Manager/Executive Assistant Sales Assistant/Receptionist Total Payroll _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 20 .000 $65.170 $25.250 $71.000 $0 $63.000 $23.000 $0 $63.175 Director pf Operations $65.000 $147.920 $302.The Company’s personnel forecast is outlined below.150 $0 $0 $265.150 $0 $0 $23.920 $25.250 $154.116 $317.663 Marketing Manager/Executive Assistant Sales $60. Personnel wages indicate the average wage per position and personnel costs are total wages for each position.000 $73.000 $0 $66.

In the Profit and Loss table below.592 Total Personnel Total Op.614) $9.000 $429.600 $13.376 $0 $0 $45.800 $6.200 Marketing $21. gross margin equals revenue minus direct costs.600 $13.427 $656.614 $88.800 $16.The Company intends to deploy its funding to maximize growth and profitability.300 $12.418 $745. Depreciation Payroll Taxes & Benef its $39.790 $69.838 Taxes Incurred Net Profit Net Profit/Revenue $0 ($70.900 $23.600 $6.743 $65.141 $885.010 $317. taxes.710 $203.170 $498.700 $12.000 $12.326 $47.2% 7.000 $1.0% 22.750 $45.900 $6.279 $552.293 $302.408 $203. depreciation.723 $140.000 $15.026 $368.279 $542.615 $7.000 $12.969) -16.579 Utilities $15.149 $103.000 $24. The “bottom line” or profit (as measured before and after interest. Expenses $265.955 $54.1% _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 21 .808 $8.300 $1.764 84% 84% 84% Expenses Rent $11.215 EBITDA Interest Expense ($60.200 Commission $43.014) $54.200 $400 $400 $400 Phone/Internet Of fice Supplies Other/Misc. and amortization) equals gross margin minus operating expenses.698 $195.000 $12.549 Profit Bef ore Interest and Taxes ($61.600 $2. Ye ar 1 Revenue Total Cost of Revenue Gross Margin PRO FORMA PROFIT & LOSS Gross Margin/Revenue Year 2 Year 3 $437.900 Insurance $12.

000 $200.000.000 $35.The charts below demonstrate when the Company is expected to become profitable.000 Revenue Expenses $300. Break-even occurs when revenue exceeds expenses.000 $600.000 $20.000 $500.000 $800.000 $100.000 $0 Revenue Month 12 Month 11 Month 10 Month 9 Month 8 Month 7 Month 6 Month 5 Month 4 Month 3 Month 2 Month 1 Expenses Revenue & Expenses Years 1 to 3 $1.000 $15.000 $25.000 $10.000 $0 Year 1 Year 2 Year 3 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 22 .000 $400. Revenue & Expenses Year 1 Monthly $50.000 $900.000 $45.000 $40.000 $5.000 $700.000 $30.

225 Net Cash Flow ($65.565 Cash Balance $18. Pro forma cash flow is intended to represent the actual flow of cash in and out of the Company.156 $485. Purchase Inventory Purchase Long-term Assets _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 23 .790 $265.000 Year 1 Year 2 Year 1 Year 3 Year 2 Year 3 Cash Re ceived Revenue $437.427 $656. The “pro forma cash flow” table differs from the “pro forma profit and loss” (P&L) table.141 $885.406 $48. the revenue and expense projections on the P&L table include “non-cash” items and exclude funding and investment illustrations.046 $0 $626. L-T Liabilities Principal Repay.The following depictions of the Company’s projected cash flow show that the Company expects to maintain sufficient cash balances over the three years of this plan.834 $302.200 $0 $704.427 $656.141 $885.000 Net Cash Flow $100.619) $29.212 $0 $18.744 $684.000 $220.346 $229.791 $0 $0 $0 $0 $0 $0 Dividends Subtotal Cash Spent $0 $503.279 $367.000 -$100. Cash Flow $250.000 $150.435 $0 $17. In comparison.574 $317.911 CASH FLOW Subtotal Cash Received Expe nditures Expenditures f rom Operations Personnel Expenses Bill Payments Subtotal Spent on Operations Additional Cash Spent Current Borrow ing Repay.834 $607.000 $200.790 New Current Borrow ing $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sale of Other Current Assets $0 $0 $0 Sale of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 $437.941 $181.000 $0 -$50.000 Cash Balance $50.170 $305.456 $0 $19.

461 $29.911 $6.332 $94. liabilities.The balance sheet below highlights the Company’s projected assets.969) ($110.006 $73.246) $130.246) $45.546 $254.000 $6.698 $195.711 Accounts Payable $22.578 Current Borrow ing $0 $0 $0 $0 $22. and capital: Year 1 Year 2 Ye ar 3 Assets Current Assets Cash $18.950 $138.000 $20.546 $254.200 Total Current Assets $229.600 $5.541 Total Liabilities $154.800 $44.000 $6.200 $4.162 $24.346 Other Current Assets $20.788 $114.406 $68.000 $1.975) ($70.006 $0 ($110.711 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 24 .838 ($65.461 $0 $29.119 Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Other Current Liabilities Subtotal Current Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital $0 ($39.911 Long-term Assets BALANCE SHEET Long-term Assets Accumulated Depreciation $400 $800 $5.592 $73.162 $0 $24.578 Long-term Liabilities $132.793 $124.406 $48.000 $38.944) $0 ($65.944) $44.346 $249.000 $20.

293 $498.022 Gross Margin $313.974 -34% -7% 11% ($121.549 ($126.281 $161.560 $307.008 17% $112.776 $88.841 $186.164 $119.719 $752.899 Gross Margin/Revenue Operating Expenses Net Prof it Net Prof it/Revenue Cash Flow Cash Balance 84% 84% 84% $429.010 $542.549 Net Profit ($15.017) $74.921 Cost of Goods $58.280 $857.211) ($37.521 $119.960) ($90.WORST CASE SCENARIO BEST CASE SCENARIO The sensitivity analysis below assumes that revenues are 15% higher or lower than figures projected earlier in this business plan: REVENUE IS 15% GREATER THAN PROJECTED Year 1 Revenue Cost of Goods Gross Margin Gross Margin/Revenue Ye ar 2 Year 3 $503.539) _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 25 .813 $557.030 $423.165) $83.848 30% $293.555 $633.629 84% 84% 84% Operating Expenses $429.361 REVENUE IS 15% LESS THAN PROJECTED Year 1 Revenue Year 2 Year 3 $371.617 ($20.293 $498.155) $69.520 $635.196) ($52.041 $754.010 $542.562 $1.018.221) ($37.512 $480.658 $79.037 $469.703 Net Profit/Revenue Cash Flow Cash Balance -3% ($10.727) $128.

417 $5.417 $5.000 $5.417 $5.000 $5.667 $11.667 $11.000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales A ssistant/Receptionist Total P ayroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $22.417 $5.083 $22.000 $5.833 $5.000 $5.083 $22.083 $22.833 $5.667 $11.000 $5.417 $5.417 $5.417 $5.083 $22.000 $5.667 $11.667 $11.667 $11.833 Director pf Operations $5.833 $5.417 M arketing M anager/Executive Assistant $5.083 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 26 .417 $5.667 $11.417 $5.000 $5.833 $5.667 $11.833 $5.417 M arketing M anager/Executive Assistant $5.000 $5.417 $5.417 $5.833 $5.667 $11.667 $11.417 $5.417 $5.083 $22.417 $5.833 $5.417 $5.000 $5.083 $22.000 $5.000 $5.417 $5.083 $22.667 Director pf Operations $5.000 $5.083 $22.833 $5.417 $5.000 $5.000 $5.083 $22.667 $11.833 $5.000 $5.000 $5.417 $5.000 $5.Appendix M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12 M anager/P artner 2 2 2 2 2 2 2 2 2 2 2 2 Director pf Operations 1 1 1 1 1 1 1 1 1 1 1 1 M arketing M anager/Executive Assistant 1 1 1 1 1 1 1 1 1 1 1 1 Sales 1 1 1 1 1 1 1 1 1 1 1 1 A ssistant/Receptionist 0 0 0 0 0 0 0 0 0 0 0 0 5 5 5 5 5 5 5 5 5 5 5 5 M anager/P artner $5.417 $5.833 $5.000 $5.000 $5.083 $22.833 $5.000 $5.000 $5.417 $5.417 $5.083 $22.000 $5.417 $5.000 Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 A ssistant/Receptionist $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PERSONNEL FORECAST P ersonnel Count Total P ersonnel P ersonnel Wage P ersonnel Costs M anager/P artner $11.

912 $5.136 $2.260 $2.243 $4.029 Vegas Baby Body Lotion 4 oz.369 $1.031 $1.127 $2.304 $1.403 $1.832 $1.180 $3.738 $1.501 $1.473 $1.012 Lavendina Body Cream 6 oz.434 $3.440 $1.187 Vegas Baby Body Cream 6 oz.174 $4.673 $1.849 $4.448 $1. $716 $752 $789 Vegas Baby Shower Gel & Scrub 6 oz.975 $4. $640 $672 $706 $741 Vegas Baby Body Lotion 6 oz.455 $4.512 $4. $841 $883 $927 $973 $1.216 $1.345 $2.184 $1.081 $1.062 $3.042 $1.865 REVENUE FORECAST Revenue Vegas Baby Hand Cream 2 oz.512 $1.515 $1. $3. $3.027 $1.666 $3.339 $3.371 $1.669 $40.311 $1.225 $1.130 $1.880 Vegas Baby Body Cream 4 oz.166 $1.041 $2.731 $3.058 $1.442 $1.994 $3.297 $1.095 $720 $756 $794 $834 $875 $919 $965 $1.134 $1.251 $1.082 $1.115 $3.519 $2.094 $1.603 $42.132 $1.517 $1.244 $1.312 $1.271 $3.535 $4. $664 $698 $2.308 $1.126 $1.330 Lavendina Shower Gel & Scrub 4 oz.166 $1.445 $1.300 $3.491 Tsunami Cool 4 oz.003 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 27 .076 $1.099 $1.828 $38.073 $2.008 $1.757 Lavendina Body Lotion 4 oz.058 $1.404 $35.319 $4.670 $1.113 $4.667 $1.135 $1.242 $1. Vegas Baby Balm 4 oz.506 $3. $904 $950 $997 $1.143 $3.917 $3.043 $1.593 $1.064 $829 $870 $914 $959 $1.916 $2.825 $2.336 $1.576 $1.206 $1.851 $2.028 $3.384 Tsunami Hot 6 oz.482 $28.786 $3.235 $1.765 $47.686 $2.110 $1.547 Lavendina Body Cream 4 oz.361 $1.250 $1.918 $3.028 $1.250 $5.M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 Tsunami Hot 4 oz.399 $976 $1.762 $5.266 $1. Lavendina Balm 4 oz. $777 $816 $857 $900 $945 $992 $1.047 $1. $889 $934 $980 $1.438 Lavendina Shower Gel & Scrub 6 oz.314 $1.430 $1.080 $1.272 $1. $1.856 $30.073 $1.154 $1.602 $4.190 $1.149 $1.246 $1.884 $3.974 $2.223 $3.418 Lavendina Body Lotion 6 oz.778 $2.715 $2.416 $5.379 $1.074 $36.022 $1.616 $2.837 $27.025 $1.111 $1.586 $1.590 $1.176 $2.633 $44.967 $3.750 $1.286 $1.376 $1.378 $2.553 $3.224 $732 $769 $808 $848 $890 $935 $982 $1.373 M onth 12 $4. $1. Lavendina Hand Cream 2 oz.587 $1.298 $31.825 $1.813 $33.192 $1.383 $4. M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 $3.212 $1.465 $2.374 $1.306 $1.078 $1.158 $5. $1.655 $1.645 $2.007 $1.013 $1.026 Tsunami Cool 6 oz.681 $3.248 $1.491 $2. $622 $653 $686 Vegas Baby Shower Gel & Scrub 4 oz.463 $2.350 $1. $829 $870 $914 $960 $1.606 $3.000 $5. Total Revenue $806 $846 $888 $933 $979 $1.521 $778 $817 $858 $901 $946 $994 $1.747 $2.285 $2.128 $1.678 $4.325 $3.183 $1.189 $1.234 $2. $2.074 $1.176 $1.

184 $35. $108 $114 $119 $125 $131 $138 $145 $152 $160 $168 $176 $185 Vegas Baby Body Lotion 6 oz. $108 $114 $119 $125 $131 $138 $145 $152 $160 $168 $176 $185 Lavendina Body Lotion 6 oz. $489 $513 $539 $566 $594 $624 $655 $687 $722 $758 $796 $836 Tsunami Hot 6 oz.784 $28. $428 $449 $472 $495 $520 $546 $573 $602 $632 $664 $697 $732 Lavendina Balm 4 oz.561 $4. $127 $134 $140 $147 $155 $162 $170 $179 $188 $197 $207 $218 Lavendina Hand Cream 2 oz. $106 $112 $117 $123 $129 $136 $142 $150 $157 $165 $173 $182 Lavendina Shower Gel & Scrub 4 oz.029 $5.688 $39.029 $5.418 $6. $160 $168 $176 $185 $194 $204 $214 $225 $236 $248 $260 $273 Vegas Baby Body Cream 6 oz. $127 $134 $140 $147 $155 $163 $171 $179 $188 $198 $208 $218 Lavendina Shower Gel & Scrub 6 oz.344 $4. $303 $319 $335 $351 $369 $387 $407 $427 $448 $471 $494 $519 Tsunami Cool 6 oz. $162 $170 $179 $188 $197 $207 $217 $228 $239 $251 $264 $277 Lavendina Body Cream 4 oz.822 $6. $282 $296 $311 $326 $342 $360 $377 $396 $416 $437 $459 $482 Vegas Baby Body Cream 4 oz.430 $23.545 $5.893 $37.123 $29.530 $31.822 $6. $164 $172 $181 $190 $199 $209 $220 $231 $242 $254 $267 $280 Lavendina Body Lotion 4 oz.561 $4.790 $5.573 Gross M argin Gross M argin % 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 84% 84% 28 .344 $4.113 $6.418 $6.739 $7. $428 $449 $472 $495 $520 $546 $573 $602 $632 $664 $697 $732 Vegas Baby Balm 4 oz.545 $5.137 $24.294 $25. $128 $135 $142 $149 $156 $164 $172 $181 $190 $199 $209 $220 Vegas Baby Hand Cream 2 oz.076 $7.M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12 REVENUE FORECAST Direct Cost of Revenue Tsunami Hot 4 oz.006 $32. $164 $172 $181 $190 $199 $209 $220 $231 $242 $254 $267 $280 Vegas Baby Body Lotion 4 oz.790 $5.556 $34.113 $6. $504 $529 $555 $583 $612 $643 $675 $709 $744 $782 $821 $862 Tsunami Cool 4 oz. $160 $168 $176 $185 $194 $204 $214 $225 $236 $248 $260 $273 Lavendina Body Cream 6 oz.509 $26.281 $5. Subtotal Cost of Revenue $162 $170 $179 $188 $197 $207 $217 $228 $239 $251 $264 $277 $4.430 Other Direct Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Direct Costs $4.076 $7. $127 $134 $140 $147 $155 $163 $171 $179 $188 $198 $208 $218 Vegas Baby Shower Gel & Scrub 6 oz.739 $7. $106 $112 $117 $123 $129 $136 $142 $150 $157 $165 $173 $182 Vegas Baby Shower Gel & Scrub 4 oz.281 $5.

85 89 94 98 103 108 114 119 125 132 138 145 Tsunami Cool 4 oz. 94 99 104 109 115 120 126 133 139 146 154 161 Tsunami Cool 6 oz.330 1. 28 30 31 33 34 36 38 40 42 44 46 48 Vegas Baby Body Lotion 4 oz.697 1.616 1. 38 40 42 44 46 48 51 53 56 58 61 64 Lavendina B ody Lotion 6 oz. Lavendina B alm 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64 UNIT ASSUMPTIONS Units Vegas Baby Hand Cream 2 oz.965 2.871 1.396 1. 28 30 31 33 34 36 38 40 42 44 46 48 Lavendina B ody Lotion 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64 Lavendina B ody Cream 4 oz. 28 30 31 33 34 36 38 40 42 44 46 48 188 198 208 218 229 241 253 265 278 292 307 322 Vegas Baby Balm 4 oz.782 1.206 1. 38 40 42 44 46 48 51 53 56 58 61 64 Vegas Baby Shower Gel & Scrub 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48 Vegas Baby Shower Gel & Scrub 4 oz. 66 69 73 76 80 84 88 93 97 102 107 113 Vegas Baby Body Cream 4 oz. 28 30 31 33 34 36 38 40 42 44 46 48 Lavendina Shower Gel & Scrub 4 oz. Total Units 28 30 31 33 34 36 38 40 42 44 46 48 188 198 208 218 229 241 253 265 278 292 307 322 38 40 42 44 46 48 51 53 56 58 61 64 1.466 1. 38 40 42 44 46 48 51 53 56 58 61 64 Lavendina B ody Cream 6 oz.M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12 Tsunami Hot 4 oz. Lavendina Shower Gel & Scrub 6 oz.540 1.063 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 29 . 38 40 42 44 46 48 51 53 56 58 61 64 Vegas Baby Body Cream 6 oz. 113 119 125 131 137 144 152 159 167 175 184 193 Tsunami Hot 6 oz.267 1. Lavendina Hand Cream 2 oz. 38 40 42 44 46 48 51 53 56 58 61 64 Vegas Baby Body Lotion 6 oz.

99 $18.50 $28.50 $21.50 $23.99 $21. $21.00 $22.20 $39.99 $14.99 $14. $25.99 $14.50 $28.50 $21.99 $14.99 $11.99 $11. $14.50 $28.33 $36.50 $27. $16.33 $36.20 $31.50 $21.45 Vegas Baby Body Lotion 4 oz.20 $39.50 $28.50 $21.50 Tsunami Hot 6 oz.30 Lavendina Shower Gel & Scrub 6 oz.50 $23.99 $14.99 $11.50 Tsunami Cool 6 oz.45 $31.99 $21.50 $28.99 $23.45 $31.50 $28.50 $28.20 $39.90 Vegas Baby Body Cream 6 oz. $31.99 $11.50 $28.50 $28.99 $11.50 $28.50 $28.50 $27.33 $36.50 $28.99 $16.45 $31.50 $27.50 $28. $21.50 $27.20 $39.99 $16.00 $22.99 $23.33 $36. $23.33 $36.99 $18.99 $21. $36.00 $22.20 $39.45 $31.00 $22. $22.45 $31.20 $39.45 $31.50 Vegas Baby Body Cream 4 oz.00 $22.20 $31.50 Lavendina Hand Cream 2 oz.90 $25.50 $21.50 $28.30 $22.20 $39.50 $28.99 $16.99 $11.20 $31.30 $22.50 $21.99 $16.99 $18.00 UNIT ASSUMPTIONS Unit P rice Vegas Baby Shower Gel & Scrub 4 oz.99 $18.20 $39.00 $22.30 $22.50 $28.50 Vegas Baby Hand Cream 2 oz.50 $23.30 $22.50 $27.99 Lavendina B alm 4 oz.99 $23.30 $22.50 $27.50 $23.90 $25.90 $25.99 $16.33 $36.45 $31.50 $28.99 $16.20 $31.90 $25.33 $36.20 Lavendina B ody Cream 6 oz.99 $21.50 $28.90 $25.50 $28.50 $21.90 $25.99 $23.30 $22.00 $22.50 $28.30 $22.99 $11.50 $27.99 $14.50 Lavendina Shower Gel & Scrub 4 oz.50 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 30 .99 Lavendina B ody Lotion 6 oz.20 $39.99 $23.99 $16.50 $28.20 $31.50 $28.20 $31.99 $16. $28.99 $14.45 $31. Vegas Baby Balm 4 oz.30 $22.50 $28. $28.50 $27.99 $21.45 $31.50 $28.50 $21.50 $28.99 $18.99 $23.99 $11.50 $27.30 $22.99 $16.50 $23. $18.30 $22.00 $22.50 $28.99 $11.99 $18.20 $31.50 $28.50 $28.50 $28. $27.99 $21.33 $36.45 $31.99 $23.20 $39.50 $21. $31.50 $28.50 $28.90 $25.99 $21.33 $36.99 Vegas Baby Body Lotion 6 oz.99 $14.50 $27.50 $28.99 $16. $11.99 $16.50 $23.50 $28.99 $21. $39.99 $14.99 $14.99 $23.99 $23.99 $18.50 $28.M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12 Tsunami Hot 4 oz.00 $22.99 $11.90 $25.20 $31.99 Vegas Baby Shower Gel & Scrub 6 oz.99 $23.50 $23.99 $18.50 $28.50 $28.99 $18.99 $11.99 $23.50 $28.99 $21.99 Lavendina B ody Cream 4 oz.33 $36.50 $23.50 $28.50 $23.99 $23. $22.50 $21.90 $25.99 $14.50 $21.20 $39.50 $28.90 $25. $28.90 $25.20 $31.00 $22.50 $28.99 $18.30 $22.20 $31. $28.99 $18.50 $28.33 $36.20 $31.50 $28.50 $28.00 $22.50 $27.45 $31.50 $23.20 Tsunami Cool 4 oz.99 $21.99 $21.50 $23.33 Lavendina B ody Lotion 4 oz.50 $28.

87 $2.38 $3.50 $4.94 $5.27 $4.76 $3.50 $4.80 $5.87 $2.87 $2.30 $4.22 $3.27 $4.30 $4.27 $2.27 $2.32 $4. $4.38 $3. $5.30 $4.27 $2.80 $5.24 $4.87 $2.24 $4.80 $5.80 $5.24 $4.32 $4.87 $2.24 $4.30 $4.76 Lavendina Shower Gel & Scrub 4 oz.76 $3.76 $3.87 $2.87 $2.24 $4.38 $3.30 $4.80 $5.24 $4.50 $4.76 $3.50 $4.30 $4.30 $4.30 $4. $2.76 $3.27 Vegas Baby Balm 4 oz.50 Lavendina Hand Cream 2 oz. $4. $3.87 $2.76 $3.24 $4.80 $5.38 $3.80 $5.27 $2.24 $4.32 $4.30 $4.94 $5.27 Lavendina B alm 4 oz.30 Lavendina B ody Cream 4 oz.38 $3.76 $3.87 $2.32 $4.38 $3.24 $4.76 $3.22 Tsunami Cool 6 oz.38 $3.38 $3. $4.54 $4.30 $4. $2.38 $3.30 $4.38 $3. $2.38 $3.54 Vegas Baby Hand Cream 2 oz.27 $4.76 $3.32 $4.87 $2.80 $5.24 $4.80 $5.87 $2.38 $3.30 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 31 .87 $2.76 $3.27 $2.76 $3.22 $3.27 $4.87 $2.27 $4. $3.32 $4.38 $3.54 $4.24 $4.87 Vegas Baby Body Lotion 6 oz.27 $4.87 $2.80 $5.80 $5. $5.94 $5. $4.87 $2.80 Vegas Baby Body Lotion 4 oz.80 $5.80 $5.76 $3.24 $4.54 $4.27 $2.76 $3.38 $3.38 $3.27 Vegas Baby Body Cream 4 oz.38 $3. $4.76 $3.27 $2.30 $4.30 $4.27 $2.80 $5.30 $4.76 $3.80 $5. $5.76 $3.76 $3.54 $4.94 $5.22 $3.27 $2.38 $3.27 $4.30 $4.27 $4.30 $4.50 $4.38 $3.54 $4. $4.32 Tsunami Hot 6 oz.54 $4.38 $3.54 $4.24 $4.24 $4.27 $2.50 $4.80 $5.32 $4. $4.38 Lavendina Shower Gel & Scrub 6 oz.24 $4.22 $3.22 $3.94 $5.27 $2.94 $5.76 $3.30 $4.54 $4.24 $4.27 $2.27 $4.27 $4.76 $3.22 $3.24 $4.32 $4.27 $4.87 $2.80 $5. $3.38 $3.27 $2.54 $4.50 $4.50 $4.22 $3.30 $4.87 $2.50 $4.30 $4.24 $4.24 Lavendina B ody Cream 6 oz.54 $4.87 $2.30 $4.76 Vegas Baby Shower Gel & Scrub 4 oz.87 Lavendina B ody Lotion 6 oz.22 $3.27 $2.76 $3.94 $5.32 $4.27 $2.24 $4.M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12 UNIT ASSUMPTIONS Direct Unit Cost Tsunami Hot 4 oz.24 $4.22 $3.27 $2.80 $5.87 $2.80 $5.30 $4.87 $2.27 $2.80 $5.54 $4.24 Vegas Baby Body Cream 6 oz.32 $4.87 $2.38 Vegas Baby Shower Gel & Scrub 6 oz.76 $3.27 $2.22 $3. $3.94 $5.24 $4.76 $3.27 $2.27 $2.22 $3. $3.32 $4.94 $5.50 $4. $4.38 $3.80 $5.87 $2.94 Tsunami Cool 4 oz.27 $2.94 $5.80 Lavendina B ody Lotion 4 oz.94 $5.24 $4.27 $2.50 $4.80 $5. $2.30 $4.38 $3.

299) $291 $1.812 $35.606 $36.633 $44.790 $5.188) ($6.184 $35.083 $22.482 $28.6% _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 4.074 $36.867 $4.669 $40.5% -19.430 $23.470 $35.418 $6.083 $22.313 $3.313 $3.000 $1.313) ($6.404 $35.743 EBITDA ($11.688 $39.083 $22.083 $22.683 $3.893 $37.828 $38.825 Commission $2.739 $7.083 $22.650) ($8.083 $22.000 $1.700 Utilities $1.000 $1.000 $1.000 $1.825 $1. Depreciation P ayroll Taxes & B enefits $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $3.M onth 1 Revenue Total Cost of Revenue Gross M argin Gross M argin/Revenue M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12 $27.509) ($9.003 $4.996 $36.377) ($8.806) ($3.960 -45.825 $1.406) ($1.687) ($9.030 $3.000 $1.5% -24.340 $3.509 $26.3% -11.507 $3.721) ($9.310 $35.392 $36.159 $35.856 $30.000 $1.825 $1.561 $4.313 $3.615) ($11.000 $1.250 P hone/Internet $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 Office Supplies $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $1.2% 32 .181 $3.313 $3.440) ($2.825 $1.250 $1.493) ($7.294 $25.9% -40.250 $1.2% -34.313 $3.740) ($10.000 M arketing $1.083 $22.0% 0.825 $1.588) ($10. and Tax ($11.113 $6.000 Other/M isc.825 $1.298 $31.526) ($7.829 P rofit Before Int.250 $1.8% -15.250 $1.000 $1.813 $33.313 $3.637 $35.000 $1.776 Interest Expense Taxes Incurred Net P rofit Net P rofit/Revenue $875 $867 $859 $851 $842 $834 $826 $817 $809 $800 $792 $783 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($12.344 $4.250 $1.281 $5.825 $1.000 $1.748 $2.822 $6.707) ($10.137 $24.005) ($499) $1.000 $1.825 $1.107) ($4.346) ($6.545 $5.000 $1.263 $4.573 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% PRO FORMA PROFIT & LOSS Expenses Rent Insurance $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $1.083 $22.313 $3.877 $35.000 $1.814) ($1.060 $4.0% -6.123 $29.825 $1.313 $3.603 $42.313 Total P ersonnel $22.556 $34.083 $22.250 $1.313 $3.076 $7.000 $1.250 $1.941) ($5.772) ($3.617) ($8.784 $28.006 $32.530 $31. Expenses $34.250 $1.000 $1.250 $1.083 Total Op.000 $1.083 $22.116 $2.825 $1.825 $1.313 $3.074) ($4.250 $1.083 $22.476 $4.9% -3.7% -29.029 $5.000 $1.257) ($2.083 $2.250 $1.015 $35.313 $3.886 $3.972) ($466) $1.632) ($4.000 $1.189 $36.765 $47.000 $1.000 $1.000 $1.

442 $42.397 $1.009 ($13.482 $28.298 $31.083 $40.438 $1.404 $35.997 $42.472 $42.827 $42.787 $41.083 $22.003 $22.180 $23.317 $21.591 $18.455 $1.968 L-T Liabilities P rincipal Repay.940 Net Cash Flow $4.170 $41.290 $52.404 $35.765 $47. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1.813 $33.715 $35.592 $43.888 $44.762) ($2.481 P urchase Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 P urchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $23.819 $63.864 $45.765 $47.074 $36.826 $21.828 $38.406 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 33 .083 $22.071 $41.219) ($3.856 $30.482 $28.083 $22.413 $1.364 $44.669 $40.389 $45.034 $74.405 $1.083 $0 $18.358 $20.961 $20. Cash Spent ($625) $1.083 $22.813 $33.464 $1.856 $30.188) ($7.913 $20.389 $1.343 $18.083 $22.422 $1.422 $40.633 $44.376 $22.834 $22.387) ($9.216) ($11.529) ($10.401 $43.074 $36.669 $40.231) Cash Balance $88.083 $22.703 $19.787 $29.828 $38.199 $17.573 $41.903 $43.917 $44.603 $42.909 $43.459 Expenditures Expenditures from Operations P ersonnel Expenses Bill P ayments Subtotal Spent on Operations Additional Cash Spent Current Borrowing Repay.447 $1.603 $42.929) ($6.633 $44.490 $19.087 $19.003 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sale of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sale of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Investment Received CASH FLOW Subtotal Cash Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $27.298 $31.083 $22.200 $42.003 $43.083 $22.435 $43.083 $22.M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12 Cash Received Revenue $27.607) ($5.674 $40.339 $18.472 $1.083 $22.063 $17.083 $22.430 $1.

000 $6.000 $20.549 $61.659 $137.006 Accounts P ayable $17.001 $100.700 $5.715 $55.235 $19.M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12 BALANCE SHEET Current Assets Cash $88.081) ($111.716 $18.920) ($73.000 $6.343 $18.034 $74.827 $19.180 $43.933 $5.106) ($71.000 $6.944) $114.088) ($52.980 $17.406 Other Current Assets $20.590) ($64.000 $20.770 $69.000 Total Current Assets $108.975) ($39.000 $20.000 $6.438 $18.877 $162.190 $78.967 $5.950 P aid-in Capital $0 Retained Earnings Current Retained Earnings Total Capital Total Liabilities and Capital $0 ($39.946 $49.000 Accum.195) ($112.975) $0 $0 $0 $0 ($39.779 $159.968 $37.406 Long-term Assets $6.590 $21.068 $18.770 $69.000 $20.977 $44.975) $0 $0 ($39.193) ($104.000 $20.220) ($72.162 Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Current Liabilities $17.969) ($52.665 $20.752 $89.829 $155.752 $89.549 $61.667 $5.716 $18.833 $5.899 $43.000 $20.000 $6.975) ($39.000 $20.290 $72.741 $134.633 $5.116 $20.788 Total Liabilities $166.252) ($99.290 $52.000 $6.895) ($113.974 $141.000 $6.068 $18.975) ($39.116 $20.396 $142.590 $21.980 $17.975) $0 ($39.218) ($64.001 $100.587 $54.961 $20.162 Total Assets Current Liabilities Long-term Liabilities $148.180 $23.694 $45.767 $5.544 $140.867 $5.000 $6.694 $45.063) ($92.269 $132.600 $114.591 $164.712) ($44.088 $21.178) ($74.787 $29.612 $22.929) ($70.235 $19.635 $42.787 $49.438 $18.824) ($109.977 $44.833 $161.635 $42.809 $144.000 $20.771 $158.715 $35.615) ($24.733 $5.000 $6.961 $40.819 $83.000 $6.190 $78.343 $38.827 $19.000 $20.975) ($39.903 $63.975) ($39.968 $17.000 $20.899 $43.277) ($59.975) $0 ($39.106 $138.611 $147.199 $37.930 $163. Depreciation $33 $67 $100 $133 $167 $200 $233 $267 $300 $333 $367 $400 Total Long-term Assets $5.849) ($69.000 $20.034 $94.088 $21.199 $17.903 $43.819 $63.900 $5.794 $156.800 $5.775 $157.880 $154.904) ($110.000 $6.214 $145.975) $0 ($39.203) ($34.975) $0 ($39.612 $22.975) ($12.687) ($84.946 $49.665 $20.204 $135.801 $160.006 _______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission 34 .587 $54.

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