Section 1

Team 11

Fall 2022

Business Plan

Business Name: StickyProof

Business Idea: Our product is a non-stick plate. The non-stick plate prevents

sticky/melted foods from getting stuck to the surface. Instead of using a sponge or

scrubbing utensil to clean the product, only water is required to clean the surface of the

plate. StickyProof plates are made with a safe-to-eat, non-stick adhesive called LiquiGlide

that does not scratch or become unusable, unlike most of the non-stick kitchenware

currently in the market. The non-stick plates are valuable for customers who are extremely

busy and have limited time to clean their plates after cooking and eating. The StickyProof

solution avoids the hassle of food sticking to the plate when the consumer cleans it.

Team Members: Signatures Email Addresses

Ari Agrapides
Ari Agrapides Agrapiax@dukes.jmu.edu

Connor Bassett
Connor Bassett Basse2cm@dukes.jmu.edu

Kaylan Campbell
Kaylan Campbell Campbekb@dukes.jmu.edu

Jordan Harris
Jordan Harris Harr25jr@dukes.jmu.edu

Ally Hyers
Ally Hyers Hyersam@dukes.jmu.edu

Tommy Koogler
Thomas Koogler Koogletw@dukes.jmu.edu

John Langan
John Langan Langanjd@dukes.jmu.edu
 Page 1 - Executive Summary

Executive Summary
StickyProof LLC
Connor Bassett
1910 Murphy Ave SW, Atlanta, Georgia, 30310
Phone: (703) 763-6135
E-mail: stickyproof@groups.dukes.jmu.edu
Management: Product:
Titles: General Manager, Operations Manager, Sales & StickyProof plates are 2-lb, 10-inch ceramic
Marketing Manager plates with a 25-degree angled ledge, sold in sets
Industry: NAICS 327110-Kitchenware, commercial of four. This will offer low-income US households
and household-type, vitreous China, manufacturing a more durable plate at an affordable price.
Competitive Advantage:
Number of Employees: 12 Salaried, 11 Full-Time
Each StickyProof plate is coated in LiquiGlide’s
Amount of Financing Sought: patented technology, “a durable slippery coating,
We negotiated a $4,000,000 dollar total from an angel based on the science of liquid-impregnated
investor, with a 50/50 split in common stock (15.78% surfaces (1).” The use of this technology on our
equity) with a long-term convertible debt option. plates sets StickyProof apart from others in that
Investment Sources: they are easier to clean, safe to eat off, and
Each founder contributes $150,000 for $1,050,000 affordable. Our patented lip on the edge of the
and we will receive $4,000,000 from Angel investors. plate stands as a “catch-all,” so that foods cannot
Use of Funds: slip off while eating, cutting, etc., while also
We will use be using these funds for purchasing preventing competition from delving into the new
equipment, leasing the factory, raw materials, market segment. In entering and defending the
advertising, and salaries. market, we will also provide lower prices to
Product/service selling price: create and hold customer loyalty upfront.
Years 1-2: $50.99 online (retail) Markets:
Years 3: $39.20 to distributors (wholesale) Our target market is aimed at Low-Income U.S.
Year 3: $55.99 online (retail) Households Without a Dishwasher and College-
Year 4: $42.70.00 to distributors (wholesale) Aged Students. The potential market size reigns
Year 4: $60.99 online (retail) at 31.2999 million individuals, collectively. While
Year 5: $46.20.80 to distributors (wholesale) there is a projected growth rate increase of
Year 5: $65.99 online (retail) 2.05% for Low-Income U.S. Households Without
Business Description: StickyProof manufactures a a Dishwasher, there is a slight decrease by
non-stick, easily washable, plate based in Atlanta, 1.48% in College-Aged Students. We will use a
Georgia. Our goal is to provide the consumer with a multichannel revenue model that uses direct
cheaper plate alternative and time efficient experience sales through our website and retail sales
washing dishes. through retail stores (Target Corp. and Walmart
Inc.).
Distribution Channels: For the first two years, the company will sell through our online store and use
USPS to transport orders to the consumer. After two years, the company will partner with Walmart and
Target to sell our products in their stores to help reach a larger percentage of our target market.
Competition: Our current competition is Mora Ceramic Plates and Dixie Disposable Plates. StickyProof is
similar to Mora in terms of durability and similar to disposable plates in terms of affordability. Our product
saves the consumer money in two ways. First, the set of plates needs only to be purchased once, saving
money over an extended period of time. Second, by saving in water bills, the compound effect of using less
water to wash plates decreases water bill dues. Another potential competition is the dishwasher itself. For
those homes that have and use dishwashers, it is unlikely that they will purchase a plate that is easier to
clean, considering that they already have an effective dishwashing solution.
Financial Projections (Unaudited):

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue: $668,887 $976,301 $4,680,204 $7,127,579 $8,769,787

EBIT: ($2,166,811) ($2,070,884) ($505,868) $944,376 $1,981,211

 Page 2 - Narrative

Elevator Pitch: “The Average American spends more than six days out of the year washing

dishes.” Our company, StickyProof, creates non-stick plates that anyone can clean within

seconds using only water, meaning less time spent doing dishes and more time spent on the

important things in life. With StickyProof plates, just rinse and let it dry. Our patented lip

around the edge of the plate and the LiquiGlide application work together to create a

durable, safe to eat from, self-healing dish. StickyProof offers all these new factors for

dinnerware while being sold at a low price! How will you spend your newly found time?

Product Description: StickyProof is a 10-inch diameter ceramic plate with a non-stick

coating. The non-stick coating, we are using is called LiquiGlide. The plate also has a lip to

counteract sliding food. StickyProof plates come in a set of four, with color options: red,

white, and blue. StickyProof plates are used to help cut costs of buying single-use products

and create more time at home for users.

Competitive Advantage: The advantage that we have over other companies is our

LiquiGlide component. This gives us a step above our competitors due to the elimination of

physical scrubbing when washing dishes. This component also gives us an advantage over

dishwashers in terms of convenience, saving time, and decreasing the use of water. Our

plates are reusable, so the initial investment is the only cost. When compared to disposable

plates that must be repurchased, purchasing StickyProof saves money overall.

Value Proposition: StickyProof Plates are LiquiGlide coated, non-stick plates, available in

three colors: red, white, and blue. The 2-lb, 10-inch ceramic plate incorporates a 25-degree

angled ledge that is half an inch tall. Plates are sold in sets of four for average-sized

households. Consumers will find convenience in their ceramic durability and affordability.

LiquiGlide while being non-stick, is self-healing. This prevents the surface from being

damaged by utensils and allows for a faster wash. Since the plate is non-stick, this creates

the risk of food sliding while cutting, but our patented ledge combats this problem by

creating a barrier and eliminating this possibility.

 Page 3 - Narrative

Business Strategy: Our business strategy for StickyProof is Focused Differentiation

because our product has a non-stick aspect to our plates which our competitors currently do

not have. Also, compared to our competitors, like Dixie, we have a much narrower market.

We have an R&D Specialist and are increasing the budget through the five years to keep our

competitive advantage. Our key positions in Sales and Marketing ensure the market

understands the benefits of our product that set us apart. Lastly, our operations manager

and staff are crucial to ensuring the products are up to standard and get to our customers in

a timely manner.

Business Location: StickyProof is located in Atlanta, Georgia. Atlanta was a strong suitor

for StickyProof due to its relationship with the Georgian Port Authority, Hartsfield-Jackson

Atlanta International Airport, our retailer's distribution centers, and our target-market:

colleges and universities. The harbor has connections with seven ports in China, from where

we will purchase clay and glazing materials in quantity discounts. We will be using The

Savannah, GA Port, Ocean Terminal, to receive our machines and materials. The airport is

conveniently located seven miles away from our facility, easily accommodating employee

business trips. Atlanta has distribution centers for Bed Bath & Beyond and Target, the two

retailers we chose to sell through. This location lowers the cost of shipping when selling to

retailers. Finally, the Atlanta area houses 57 colleges and universities, a main component of

our segmentation.

Outsourced Function: Beginning in Year 3 we will outsource payroll. We found that by

doing this, we can pay $59 a month and $4 per employee, a cheaper option than creating

an internal responsibility with the need for another employee solely for payroll. On average

we save $49,000 per year by outsourcing payroll versus hiring a Payroll Specialist. We are

also outsourcing clay for plates, colored glazes, and the LiquiGlide coating.

Financial Performance: Each year our organization will experience a growth in sales

revenue. By Year 4 we will become cash flow positive and by the end of Year 5, we will have

a net income of $1,754,191.

 Page 4- Exhibit 1: Organizational Chart

The General Manager oversees all functions and relationships dealing with the HR Specialist, Sales & Marketing Manager,
Operations Manager, and Accountant.
The Administrative Assistant is there to fulfill any administrative duties for the General Manager and ensure
communication throughout the organization is cohesive.
The H.R. Specialist will ensure that the organization is compliant with the law, the onboarding, termination, training, and
monthly reviews of employees.
The Sales and Marketing Manager makes certain that all marketing and sales goals are met through pricing and targeting
strategies executed by the offices that respond to them (refer to chart above).
The Operations Manager ensures that all production is up to standard, and that quality is being met. Their position will be
in the factory acting as the supervisor. Travel will be implemented to confirm the quality of our imported products.
The Accountant will collect financial information, ensure records on our statements are proper, accommodate bank
statements, and help make decisions about financing. Lastly, they will manage all financial transactions.
The Distribution Sales Associates will oversee working with our retailers, Target, and Walmart, build relationships with
these companies to be our retailers, and create agreements that benefit both us and our retailers. Two Distribution Sales
Associates is enough for the first two years, because we do not sell through retailers until Year 3. Therefore, two years is
enough time for them to cultivate and build relationships with our retailers.
The Web/ IT Specialist oversees web site development and makes sure that the system works flawlessly while
maintaining the website.
The Advertising Associates coordinate the development and execution of marketing, sales, and advertising metrics for the
consumer.
The Manufacturing Associates are responsible for conducting all in-house manufacturing. These roles include the roll
formers, glazers, kiln managers, and the Liquiglide applier.
The Warehouse Associates remove plates from the final drying rack storage area and place them into packaging with the
StickyProof logo. These associates then load packages into shipping boxes to be sent to our distributors or online customers.
The R & D Specialist will design and test new products the company wants to manufacture in the future, like applying
LiquiGlide to food storage containers.

For the first two years, the HR Specialist is going to oversee and complete payroll for the company, however, in Year 3 we
will outsource payroll.

In Year 3, we hired another Distribution Sales Associate, due to the increase in demand and the fact that we are selling at
retail stores starting this year. We also hired one more advertising associate in Year 3 to assist with social media,
promotional tasks, and any additional advertising needs. In terms of production, in Year 3 we hired six manufacturing
 Page 5 – Exhibit 2: Pay and Benefits Table
Team Name: StickyProof Team 11 October 11, 2022
(if wage is used for a position, do the calculation of yearly pay based on hourly wage and total hours worked)
Compensation Mandat ory Payroll Deduct ions Benefits
Position Salary Bonus # for Projecte FICA FUTA* SUTA WC Benefits - Benefits - Benefits - Total Cost
(Salary/W ag or or positio d End of Health Retiremen Any per Employee
e - W ) (Full- W age Commi n Year 2 Cost t Cost other
time for ssion Salary Benefit
Assumed, position or Cost
Part-time - ) W age
PT %)
General 120000 21000 1 141000 8742 42 257 2312 13440 8460 2000 176,253
Manager
Administrati 40000 2400 1 42400 2629 42 257 695 13440 2544 2000 64,007
ve Assistant
Sales & 80000 4800 1 84800 5258 42 257 1391 13440 5088 2000 112,275
Marketing
Manager
Distribution 50000 2500 2 52500 13020 84 513 3444 13440 3150 2000 106,741
Sales
Associates
Web 60000 3600 1 63600 3943 42 257 1043 13440 3816 2000 88,141
Manager
Web/ IT 40000 2400 2 42400 10515 84 513 2781 13440 2544 2000 92,262
Specialist
Advertising 50000 3000 2 53000 13144 84 513 3477 13440 3180 2000 107,458
Associates
HR 65000 3900 1 68900 4272 42 257 1130 13440 4134 2000 94,174
Specialist
Operations 80000 4800 1 84800 5258 42 257 1391 13440 5088 2000 112,275
Manager
Manufacteri 35360 2122 8 37482 148727 336 2052 39341 13440 2248.896 2000 369,448
ng
Associates
Warehouse 35360 2122 3 37482 20915 126 770 5532 13440 2248.896 2000 117,891
Associates
R&D 64000 3840 1 67840 4206 42 257 1113 13440 4070.4 2000 92,968
Specialist
Totals 23 240,628 1,008 6,156 63,650 161,280 46,572 24,000 1,533,891

associates and two warehouse associates, in Year 4 we hired four manufacturing associates and one warehouse associate,
and in Year 5 we hired one more manufacturing associate. We hired these associates to help meet the increasing demand.
Standard Time-off Benefits: All federal holidays will be given off. All employees receive 18 paid vacation days and 3 sick days.
Additional Benefits: 12 weeks maternity/paternity leave, every employee gets two free sets of plates as well as 10% off additional sets,
recharge station with water, coffee, and snacks.
Bonuses: General Manager: 20%, all other salaried employees: 6%. Commissions: All sales employees: 5%.
Key Product Manufacturing Positions Knowledge, Skills and/or Abilities How are you going to secure KSA’s and
Needed verify employee qualifications?
Operations Manager This manager must have experience Each applicant must present proof of a degree
leading large teams of employees. They in a relevant field. They must obtain previous
must have extensive knowledge in experience in operations management or
finance, accounting, project something similar. We will discuss with the
management, and information technology hires past employers to ensure they have
fields. Most importantly, the manager these skills. All managers will take a DISC
needs proficient critical thinking, assessment prior to being hired.
motivation, initiative, and problem-
solving skills.
Manufacturing Associates These associates must understand how to Employees will receive training on how to
utilize the assigned machines and ensure operate each machine process that they
quality products are produced. Most oversee. They will be tested on how to use the
employees should be comfortable around machine and tested on strength (proving that
hot kilns and be able to lift at least 30 they can lift at least 30 pounds).
pounds.
Warehouse Associates The associates must be able to lift at The employee must present a forklift
least 100 pounds to load finished goods certification when requested. They will be
and unload raw materials. A forklift tested on strength (proving that they can
certification is required by all warehouse maneuver 100 pounds worth of goods
personnel. securely).
Motivating Employees:
Employees’ salaries will increase by 3% each year. This includes a 1% yearly increase in base pay as well as a 2% increase to account
for inflation. The Distribution Sales Associate with the highest sales will receive an extra week of paid vacation days. Employees that
have worked at StickyProof for five years will receive a one-month sabbatical. At the end of each busy season (October and January),
employees will be taken out to dinner to celebrate their hard work. We will also have team-building events so all employees feel
comfortable in the work environment and comfortable working with one another. The Manufacturing and Warehouse Associates will
receive a $100 credit towards a new pair of steel-toe work boots at the beginning of each year. All employees will be given a polo shirt
with the company logo.

Segment Segment Growth
Segment Description
Name Size Projection
Targeting
This segment consists of individuals
of all ages, ethnicities, and genders
who are low income and without a
dishwasher. These individuals are
low income and likely looking for a
way to save money. The product will
help the individuals save on the
amount of water needed to clean the
plates which in turn lowers their
Low Income annual water bill. Additionally, our
U.S. product will provide consumers with
11.2689 2.05%
Households an alternative to plastic/nonreusable
million increase
w/o a plates, which are not only harmful to
Dishwasher the environment, but also expensive
overtime. The product will be
marketed for individuals who are low
income and want to reduce their
water usage and water bill.
This segment consists of individuals
attending a four-year undergraduate
program at both private and public
universities in the United States. The
individuals in this segment range
from ages 17-23 and are both male
and female. These individuals are
located throughout the United States
and do not fall into a specific income
group. Our non-stick plate will help
those running on time crunches or
looking for the connivance aspect of
washing their dishes. This product
will help students spend less time
University/ doing dishes, ultimately reducing the
20.031 1.48%
College Aged opportunity cost of schoolwork, jobs,
million decrease
Students or extracurricular activities. College
students view their time as
extremely valuable because they are
always working to meet the next
deadline. This is a result of the
abundant activities schools require
them to perform in order to be
successful in their academics while
also attempting to manage and
balance a life or job outside of their
schoolwork.
Segment Size: We came to the segment size for Low Income U.S. households without a dishwasher by taking 30% of the
U.S. population who does not own a dishwasher (98.85 mill) (McNary, 2017) and multiplied that by the percentage of low-
income households (11.4%) (Creamer, J., Shrider, E. A., Burns, K., & Chen, F., 2022) to arrive at an estimated target
population of 11.2689 million. We came to the segment size of University and College aged students by looking at the
number of students enrolled in colleges and universities in the United States.
Page 6 - Exhibit 3: Market Segmentation and Targeting
Priority
level for Justify Targeting
We chose this segment because of the desire for
low-income households without dishwashers to save
money on not only their water bill, but also their
expense on single use plates. Manually washing
dishes uses around 1.5-2 gallons of water for every
minute the faucet is running (Perlman and Young,
n.d.). A set of 1000 paper plates cost $30 and can
be used by a family of four for 250 meals, needing to
be rebought after 83 days (about 2 and a half
months) (Guirdham, 2021). Therefore, with a
household using a generous amount of water to
2 hand wash dishes or utilizing the use of paper plates
due to lack of dishwasher, either way our product
will prove to be more cost-effective. Our product will
have the technology and a non-stick surface to
prevent food from getting stuck on the face of the
plate. To clean our plates, little to no physical labor
with a sponge will be necessary. Running the dish
under water for several seconds is all that is needed
to clean it. Our plates will require less hand washing
and faucet running time, in return saving several
gallons of water daily, and in turn cutting water bill
costs.
We have decided to target this segment because
college-aged students live highly active lives. The
average student spends roughly 12.5 hours getting
to school, completing schoolwork, eating, attending
extracurricular activities, and finally, working
(Statista, 2010). Additionally, nearly 57% of all
college students work year-round, which means they
not only have to worry about studying but also
executing their internships or job (Statista, 2016).
All these factors cause severe time constraints in
their daily lives, causing many to neglect mundane
tasks such as laundry, cleaning, and washing dishes.
This lifestyle entices the use of single-use disposable
items to avoid cleanup. Our product solves that
problem, as it provides the convenience of minimal
1 cleanup while also being reusable. Another
justification for why we decided to target this
segment is because college students value
sustainability, which ties into our top market
segment. On average, 87% of Gen Z shoppers are
willing to pay an extra 1-20% for sustainable
products (Tighe, 2022). Our product reduces the
time spent on washing dishes, making the task
easier to complete and limiting dirty dish pile-up.
The extra time saved from using this product can
give these students freer time and peace of mind.
Furthermore, 767 dollars were spent on disposable
tableware. Not only is their usage detrimental to the
environment, but it is also fairly expensive, and as
we all know, college kids do not have a ton of
disposable income.

Growth Projection: To find the growth projection for College Aged Students, we found the percent change from the year
before the most recent year. We did the same process for Low Income U.S. households without a dishwasher and taking a
similar approach to how the segment size was found (Guirdham, 2021). We took the percentage of households without a
dishwasher and multiplied that by supplemental poverty measure to arrive at 2.05% market growth (McNary, 2017;
Creamer, J., Shrider, E. A., Burns, K., & Chen, F., 2022).
 Page 7 - Exhibit 4: Market Quantification

Total Market Potential Annual

Market Annual W/Sale Retail Annual $
Year (No. of Customers in purchase
Share** Unit Sales Price† Price† Revenue
millions) * amount***
1 31.234 0.21% 0.2 13118 $35.70 $50.99 $668,886.82
2 31.178 0.29% 0.2 18083 $37.80 $53.99 $976,301.17
3 31.131 1.50% 0.2 93393 $39.20 $55.99 $4,680,204.31
4 31.088 2.10% 0.2 130570 $42.70 $60.99 $7,127,579.27
5 31.063 2.39% 0.2 148481 $46.20 $65.99 $8,769,786.70
*To find the total target market we took the population of each segment and multiplied it by their market
growth, both found in Exhibit 3, and added those together. Total market potential decreased by about 171,000
customers, but this number will eventually grow again over time as the other segment will become larger than
the loss of the segment's decay.

**Using data from the survey, we found the market share to be 2.39%. (Math: the number of people willing to
buy the product divided by the number of people who participated in the survey, (73/345) = .2116. Then, we
divided the number of people willing to switch from their current users to our product by the number of people
who participated in the survey (39/345) = .113. Lastly, we multiplied .2116 and .113 to find the market share
of 2.39%. ((73/345) x (39/345)) = .0239)). We expect market share to significantly increase in Year 3 because
of retailers adding value to our products and it being more exposed to the consumer in general. Through
research, we found the market share of small businesses in [327110] Pottery, Ceramics & Plumbing Fixture
Manufacturing is 15.7%. By Year 5 we plan to capture 2.39% of it, according to the data from our survey.

*** We found that dinner plates last about five years with good care, so we made the annual purchase amount
0.2 because one fifth of people would buy a new set of plates each year (Malik, 2022).

† Retail price was calculated by finding the average cost that people were willing to pay from the survey,
$41.50. Comparing that price to our competitors, $8.83 for a less durable plate (Mora Ceramics, 2022) and
$14.99 (Fiesta Factory. Direct, 2022) for a more durable, better colored variety plate, we decided that the retail
price for our plate would lie in between this range. The reason for sticking to the same price for the first two
years is due to our strategy of penetrating the market. In our third year we began selling through Target and
Bed Bath and Beyond, therefore we increased the price to the middle price of that range of the competition
(14.99+8.83)/2. From here on out we increased prices since we are trying to capture a greater market share
and because we are still under most of the competition's price. To find the wholesale price we found that the
average wholesaler markup of Target and Bed, Bath and Beyond is 29.99% (Soehnel, 2019; Statista, 2022).
We subtracted the product of the markup to our retail price. To get the annual revenue, for Years 1 and 2 we
multiplied the retail price by the annual unit sales because for the first two years we will only be selling the
plates through our website. For Years 3-5, we multiplied the annual unit sales by 35% of the wholesale price
and 65% of the retail price. We did this because in these years 35% of the revenue would come from wholesale
and 65% of revenue would come from retail sales.

Fcst Month
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
(YR 1)

Units 388 514 640 882 955 1123 1291 1805 1742 294 1700 1784

15,527. 20,563. 25,599 35,252. 38,190. 44,904.8 51,619 72,183 69,665 11,750 67,986 71,344.
Revenue ($)
83 88 .93 37 07 0 .54 .42 .40 .79 .71 08
 Page 8 - Exhibit 5: Positioning/ Competitive Analysis
Product/Service Branding
StickyProof is more than just plates. Even though it is the only product being offered by our company, what we offer as a
brand is saving you money and time as one of life’s most important and pleasant necessities. Eating should be the most
enjoyable part of the day, while dishes should be a second thought to not ruin the moment. Our company hopes to inspire
consumers to spend less time worrying about doing dishes and more time doing what they enjoy with their free time. Our
product's value derives from its performance. It is affordable because it is a one-and-done purchase that grants a more
durable and aesthetically pleasing product. In the future we hope to expand into other non-stick kitchenware, such as
meal plan kits, silverware, cups, etc.
Pricing
Year 1 Year 2 Year 3 Year 4 Year 5
(1) Dixie Plates (standard pack of 204) $24.59 $26.48 $28.52 $30.71 $33.07
(2) Fiesta Ceramic Plates (Standard
$59.96 $63.26 $66.74 $70.41 $74.28
set of 4)
Our Channel Price: $35.70 $37.80 $39.20 $42.70 $46.20
Our Retail/Customer Price: $50.99 $53.99 $55.99 $60.99 $65.99
Pricing Strategy
StickyProof will be utilizing the Market Penetration pricing strategy for our product and will be sales based. Our wholesale
channel price is calculated by (average markup percentage) x (target retail price). Bed Bath and Beyond Inc. and Target
Corp’s average markup is 29.99%. Our target retail price comes from our survey of more than 350 respondents, and in
addition we also consider the ceramics company fiesta, which we are benchmarking against. Not only are we selling below
their price, but we also provide more value to our consumers than they do thanks to our added technological and
connivence factors. Utilizing the Market Penetration Strategy, for our first two years we are retailing above the survey
price and significantly below our researched competitor's prices, even though our value is better. After Year 1 and 2 we
are going to raise the price each year to help build our market share and stay competitive, while also minding the inflation
rate for the ceramic industry. We determined our competitor Dixie's price increase over the years from a source citing the
inflation price increase for household paper products in the US market from 2021-2022 (Official Data Foundation, n.d.).
For our second competitor, Fiesta Ceramic Plates, another source indicated a 5.5% increase in the price/growth of the
ceramic plate market which is how we calculated the price increase for their product (MarketWatch, n.d.).
Distribution/Location Strategy
For StickyProof our ideal distribution strategy is Producer-Retailer-Consumer, so our distribution associates will be
negotiating wholesale contracts with Bed Bath and Beyond as well as Target. We will also sell from producer to consumer
via online sales. We have decided to do this because we not only want to further our own brand image but also because
we want to form a direct relationship with our customers. Our goal is to build brand identity and originality with our
consumers before competition with equivalent products arises since our product is relatively easy to replicate. We have
chosen to locate StickyProof in Atlanta, Georgia because of its proximity to retailer distribution centers including Bed Bath
and Beyond and Target, enabling us to have cheaper transportation costs. Additionally, our location in Georgia provides us
with the Georgian Ports Authority who has an established relationship with eight ports in China, where we will be getting
our machinery from (Georgia USA, 2021).
Promotional Strategy (In thousands of $)
Year 1 Year 2 Year 3 Year 4 Year 5
$374,416.34 $427,654.76
$53,510.95 $78,104.09 $526,187.20
Total IMC Budget:
$224,649.81 $256,592.85
$32,106.57 $46,862.46 $315,712.32
Advertising Exp:
Sales Promo Exp: $3,745,77 $5,467.29 $26,209.14 $29,935.83 $36,833.10
PR Exp: $12,307.52 $17,963.94 $86,115.76 $98,360.59 $121,023.06
Other Promo Exp: $5,351.09 $7,810.41 $37,441.63 $42,765.48 $52,618.72
We believe that social media targeted ads are the best and most cost effective for our target market. We decided to
allocate 8% of our total revenues to the total IMC budget for the first three years, and then 6% once we are established.
The percentage of our total IMC budget allocated is based off Red Bull’s IMC % allocation, who has a similar target market
to us (Nasari, 2014). Our goals for our promo program are to offer referrals and discount codes to our consumers because
college aged individuals and low-income groups are likely to utilize it. For PR we plan to offer products to college students
and individuals with low income to test before buying. We also plan to utilize targeted advertising through social media like
snapchat, TikTok, Instagram and Facebook.
# Of Salespeople: 0 0 0 0 0
Compensation Method: Not Applicable to Our Company
We will have people responsible for wholesale distribution management between us and our retailers. They are not titled
as Salespeople in our Organization Chart; they are titled as Distribution Sales Associate(s).
 Page 9 - Exhibit 6 Marketing Mix

Affordable

StickyProof

Fiesta

Difficult to Dixie Paper Easy to

Clean Plates Clean

Positioning Statement: StickyProof is manufactured for a

high-quality experience, in terms of durability and
performance, while staying affordable for our consumer. The
product is the first of its kind and will create a new revolution
for kitchenware, with StickyProof leading the way. Our non-
Unaffordable
stick surface with self-healing technology, courtesy of
Easy to Clean LiquiGlide's technology, reduces not only the work of removing
stubborn grime from your plate, but also makes using the
StickyProof
dishwasher a non-necessity.
Fiesta
StickyProof plates are unique to this large existing market,
with many other competitors we expect potential competitors
Nonsustainable eventually, but no other product will have our unique feature
Sustainable

Dixie Paper of our patented lip on the edge to avoid food slipping off prior
Plates to consumption. Our value comes from the benefit of gaining
more time in your day by eliminating the monotonous tasks of
everyday living. None of the competition has this functionality
and therefore creates an opportunity to interest consumers in
our differentiated product. The price of our product is lower
than the ceramic plate competition, and as for our indirect
Difficult to Clean
competition with dixie plates, the cumulative price paid for
Sustainable single-use plates decreases their affordability for the
StickyProof consumer. This gives our product the chance to stand out
against all the competition because we accomplish all the
things that bring value to the consumer when considering
Fiesta
these products, higher durability, affordable and as a bonus,
more efficient.
Affordable
Unaffordable

Dixie Paper
Plates

Nonsustainable
 Page 10 - Exhibit 7: Flow Chart

For each major quality step:

Quality Step What is measured? How often? How will you ensure quality?
Q1 Irregularities in plate The plates will be Any plate that does not have the intended shape or
form. analyzed once a day. density will be discarded.
Q2 How equally or unequally Before every loading Any plate that is under-glazed will be put back into the
the glaze is spread on the rack is placed in the glazing process to ensure an adequate amount of glaze.
plate. kiln. Overglazed will be discarded.

Q3 If any plates have come After every firing If a plate is found with any cracks, they will be discarded.
out of the firing process process the plates
cracked because of the will be checked.
intense heat.
Q4 Any irregularity that may While putting each If a plate is found to be below our product quality
have been missed in the plate into our standard it will be taken out of circulation and disposed
previous quality packaging. of.
checkpoints.
For each critical resource:
Critical Resource Brief Description Unit Cost (in appropriate units) How many?
CR1 LiquiGlide Compound $689.72 per gallon 33 gallons for
Year 1 (250
days of
operation)
Briefly describe your main facility - provide information about layout and dimensions:

StickyProof is operated out of a 43,000-square-foot building at 1910 Murphy Ave Southwest, Atlanta (LoopNet,2022). This
property also has a 14,000-square-foot butler building room. The roll forming machine (55”x44”x60”) (Alibaba, 2022) is the
first piece of equipment in the production line followed by the three glazing machines (66”x50”x68”) (Sama
Maschinenbau,2022), kilns (38”x38”x45”) (Olympic Kilns, 2022), and finally the Liquiglide spray machine (50”x18”x30”)
(Boyko Inc, n.d.). The roll forming machine and kilns are placed near the walls while the glazing machines and Liquiglide
sprayer run parallel to the wall and are offset enough to maneuver around them. The work-in-progress storage racks are in
the middle of the main room so that they are easy to access during the manufacturing process. The finished goods storage
racks are located at the end of work-in-progress racks. Next to the finished goods storage racks is an area to load the plates
into our packaging and shipment packaging. The building room will be used to store surplus raw materials and any surplus
inventory that we purchase and manufacture throughout the year. The building also contains space for an office so that all
our non-manufacturing and non-warehouse employees have a place to work on site. With even more additional space
available, it provides room for our product expansion efforts for StickyProof Tupperware after the 5-year mark.
 Page 11 – Exhibit 8: Quality
Dimensions Why is this dimension important, given your industry & Identify the Quality Step(s) on
of Quality target market? the Process Flowchart /
on which Service Blueprint to which this
you will corresponds.
focus.
Durability The sustainability of our product is of high importance to both After plates are formed and before
the production and end-user. If the plate breaks after a few putting into WIP prior to coloring,
uses, what good is it? Our product eliminates the excessive and at unloading after firing the
cost of paper plates over time by being re-usable, so they plates. (Q1, Q3)
need to be durable for our consumers to save money.
Aesthetics Kitchenware is an important aspect of a household because it During the staging for firing the
ties together your dining tables and kitchen. Our range of plate and after coloring. (Q2)
color options help cater towards that need. Nobody wants to
eat their food on an unappetizing plate, and consequently
aesthetics is highly valued.
Special The entire purpose of our business is to utilize this distinctive At LiquiGlide Application Stage.
Features technology to make the end-users' life easier, which is (CR1)
accomplished by our product’s distinctive features. Without
them we have no business.
Performance The purpose of this product is the increased performance Prior to the packing stage. (Q4)
compared to normal kitchenware. The lip of the plate and the
non-stick coating are above satisfaction. This combination
creates success. Without proper performance, our product is
no more beneficial than the standard plate.
Use the space below to describe any additional Proactive Quality Assurance Plans that are not
connected to a specific activity on your Process Flowchart / Service Blueprint.
There is a lot of waiting throughout the process. During this wait, the manufacturing associates will execute
quality checks on the product. Due to the nature of this product, attention to detail is critical to our success in
delivering this product at its full potential. All this quality assurance is done prior to the plates reaching the
packing stage to ensure the faulty plates are filtered out if there are any present. We check the quality of the
plates once per day as they move through the operation’s process. In addition to inspection, every month the
machines will undergo routine inspection and maintenance to ensure that they are up to standard and working
safely/properly. Also, the employees working directly with the machines must go through a training period and
test before they begin to ensure they know how to safely use them.
Describe any reactive quality assurance plans. Include a recovery plan should a customer receive
poor quality goods and/or services.
StickyProof will replace any plate(s) that are defective and unused. At the customer's discretion, we can either
issue a refund or replacement(s). The customer can ship the defective products back at no expense and
receive replacements at no expense to them. They must contact customer support via email to initiate the
process.
If you will utilize a quality/process improvement methodology, indicate which:
☐ NA ☐ TQM ☐ Six Sigma ☐ ISO ☐ Benchmarking ☐ Other (specify what):
Benchmarking allows us to be aware of our surroundings by determining what our competition is doing best
and how they are doing so. Through self-analysis, we will determine how we can best match or exceed our
competitors. Benchmarking also keeps the customer in mind (considering that the degree being measured is
associated directly to customer requirements). The company we will be benchmarking against is Fiesta’s plate
product line. We used Fiesta’s plates as a benchmark for several stages in our production process including
molding/roll forming, glazing, and firing. Implementing this for StickyProof will require quarterly meetings
between all managers and executing our benchmarking plan above. At such meetings, we will take all
discussed topics into consideration and create an action plan dedicated to each level of management. We will
reconvene on the level of progress per plan in the following quarterly meetings.
 Page 12 - Exhibit 9: Inventory, Suppliers, & Distribution
RAW MATERIAL INVENTORY & SUPPLIER SELECTION If your organization does not have raw material inventory, please
check this box: ☐NA
Item(s) Supplier Name Reason for selecting this Supplier lead Frequency of System of Mode(s) of
& Location supplier time (in replenishme Management Transporta
(City, State, days) nt (in days) tion
Country)
Clay Alibaba (Yuhang They can ship larger quantities at 65 days 123 days Fixed Order ☐ Highway
District, a decent price, compared to Interval ☐ Rail
Hangzhou, other competitors. ☐ Waterway
China) ☐ Air
Glazes Alibaba (Yuhang They can ship a larger supply of 31 days (R&W) 1019 days Fixed Order ☐ Highway
District, several colors of glaze and are 45 days (B) each Interval ☐ Rail
Hangzhou, also priced in comparison to ☐ Waterway
China) competitors. ☐ Air
LiquiGlide LiquiGlide Inc This is the main non-stick coating 10 days 250 days Fixed Order ☐ Highway
(Cambridge, component that sets us apart (Per gallon, 33 Interval ☐ Rail
Massachusetts) from our competitors. LiquiGlide gallons for ☐ Waterway
a safer, more durable coating Year 1) ☐ Air
compared to other non-stick
coatings.
FINISHED GOODS INVENTORY
If your organization does not have finished goods inventory, please check this box: ☐NA
Finished goods produced Frequency of Average level of Finished Amount of safety stock on site
(Per hour) shipping finished goods inventory on site
goods
At the end 26.236 Every 7 days (26.236 finished goods per hour 26.236 finished goods * 8 hours *
of Year 1 *8-hour workdays*7 days)/2= 5 days = 1049.44
734.61 finished goods per day
At the end 36.167 Every 7 days (36.167*8*7)/2= 1012.68 1446.68
of Year 2
At the end 186.786 Every 7 days (186.786*8*7)/2= 5230.01 7471.44
of Year 3
At the end 261.14 Every 7 days (261.14*8*7)/2= 7311.92 10445.6
of Year 4
At the end 296.962 Every 7 days (296.962*8*7)/2= 8314.94 11878.48
of Year 5

What is the lifespan of your
finished goods inventory?
How will you manage the
perishability of Finished
Goods Inventory?
DISTRIBUTION
If your organization does not require distribution, please check this box: ☐NA
Name of transportation
provider/carrier
Sendle
Target/Walmart Freight
trucks
The average lifespan of our plate is 10-20 years; therefore, the lifespan of our finished goods
☐NA
is rather long.
Our product is non-perishable.
☐NA
Reason(s) for selecting this provider/carrier Frequency of Pick Up /
Drop off
The reason for selecting this provider is because for the first two Depending on the number
years of business we will be selling directly to consumers through of demand/online orders,
the website, for which we offer free shipping. To account for this but on average every 7
added cost, we utilized Sendle’s medium package offer under the days (once a week). Our
pro level subscription. This is because they offer further discounts subscription with Sendle
on USPS shipping ($9.71 compared to our previous $11.95), which requires us to send a
saves us a significant amount of money by Years 4 and 5. minimum of 20 packages a
month.
The reason for selecting this provider is because Target and Depending on the number
Walmart provide their own trucks to pick up goods rather than us of demand/online orders,
sending them to the distribution center. This is one of the reasons but on average every 7
why we decided on our location to be near their distribution days (once a week).
centers. The pricing for the pickup will be the flatbed rate of $3.63
per mile (10) from our facility to theirs.
 Page 13 - Exhibit 10: Capacity & Resources
Demand Capacity Utilization Hours of Bottleneck How will you manage /adjust the
(Per hour) (Per hour) (%) Operation name and bottleneck to ensure you can
description appropriately serve or supply your
customers?
At the 26.236 66.67 39.35% 8 Stage 2: 72 For the first year, we decided to run
end of hour drying two rolling machines (Stage 1) in order
Year 1 period to ensure the bottleneck will have
enough input to meet the customer
demand.
At the 36.167 66.67 54.25% 8 Stage 2: 72 For the second year, we decided to run
end of hour drying two rolling machines (Stage 1) to
Year 2 period ensure the bottleneck will have enough
input to meet customer demand.
At the 186.786 200.0 93.39% 8 Stage 2: 72 For the third year, there was a drastic
end of hour drying increase in demand, therefore we
Year 3 period needed to increase the number of
rolling machines to six. This helps
adjust, so the bottleneck will be able to
meet demand.
At the 261.14 266.67 97.93% 8 Stage 2: 72 For the fourth year, we needed to
end of hour drying purchase two more rolling machines in
Year 4 period order to keep up with customer
demand and adjust for the bottleneck.
At the 296.962 300.00 98.99% 8 Stage 2: 72 For the fifth year, we needed to
end of hour drying purchase one more rolling machine in
Year 5 period order to keep up with customer
demand and adjust for the bottleneck.
Hours of Demand/month Demand/hour Capacity/month Capacity/hour Utilization
operation/month

(250 days operating per (26.236 demand per (13118-unit sales (66.67 capacity per 4800 units/72 (26.236
year)/ (12 months per hour)*(8-hour in first year)*(4)/ hour)*(8 hours in a hours= 66.67 units demand per
year) = 20.83 days workdays) =209.888 (250 days working day) = per hour hour)/ (66.67
operating per month demand per day) * operating per year) (533.36 units per capacity per
20.83 days operating (20.83 workdays in a = (209.888 day)*(20.83 working hour) =.3935
per month*(8-hour month) = 4371.967 demand per day) / days in a month) = =39.35%
workdays) = 166.66 demand per month (8-hour workday) 11109.89 capacity per
Hours of Operation per = 26.236 demand month
month per hour
Additional resources (beyond your bottleneck) must be allocated appropriately to support operations. Identify which
resources have a significant impact on capacity at start up and describe why these are appropriate amounts of resources
at start up.
The resources that must be allocated appropriately to support our operations are Stage 1 and Stage 2, which is roll forming the clay and
then placing it on drying racks for the drying process. Therefore, we adjusted for the bottleneck and started with two roll forming
machines in order to meet customer demand, while not overwhelming the bottleneck. Therefore, for the first two years of production
only two manufacturing associates are needed to run both Stage 1 and Stage 2. The bottleneck is the 72-hour drying period because
although there is a large quantity dried at one time, we still must consider that they will be finished at different hours. For this reason,
we used the equation in Year 1 (4800/72=66) to calculate the bottleneck.

Describe adjustments you will make as resource requirements vary with time. Be specific regarding which key resources
(beyond your bottleneck) will be adjusted, when and how. If you will make multiple adjustments, explain each.

We will add additional resources over time when demand increases drastically. In Years 1 and 2, we will have three ovens, then in Year 3
increase to eight ovens. From Year 3 to 4, we will increase from eight to twelve ovens. Lastly, in Year 5, we will purchase one more oven
and have 13. We will add six additional manufacturing associates and two additional warehouse associates during Year 3 to keep up with
the extra machines for Stage 1, ovens, and for the additional demand. We will then add four more manufacturing workers in Year 4 and
one warehouse worker to meet demand and additional resources. Therefore, in the fifth year we will add one more manufacturing
associate to keep up with demand.
How will you manage seasonality?
Our organization will experience seasonality and demand during college move-in months (August-September) and the holiday season
(November-December). We will manage this by using our amount of extra finished goods inventory on sight and shipping it out during these
times of the year. If we see that for the first year it was not enough, we will adjust the number and produce more inventory during those
times of the year.
 Page 14 – Exhibit 11: Income Statement

Key
Pro Forma Income Statement Input Field
Build Formula
Year 1 Year 2 Year 3 Year 4 Year 5
Date Ending Date Ending Date Ending Date Ending Date Ending
2022 % 2023 % 2024 % 2025 % 2026 %

Sales Revenue $668,886.82 100.00%$976,301.17 100.00% $4,680,204.31 100.00% $7,127,579.27 100.00% $8,769,786.70 100.00%
COGS 301,058 45.01% 415,005 42.51% 2,143,369 45.80% 2,996,582 42.04% 3,407,639 38.86%
Gross Profit $ 367,829 54.99% $ 561,296 57.49% $ 2,536,835 54.20% $ 4,130,997 57.96% $ 5,362,148 61.14%

Operating Expenses
Salaries and Wages 1,238,100 185.10% 1,275,243 130.62% 1,313,500 28.07% 1,352,905 18.98% 1,393,492 15.89%
Payroll Tax Expenses 299,300 44.75% 308,279 31.58% 317,527 6.78% 327,053 4.59% 336,865 3.84%
Employee Benefits and Retirement 444,846 66.51% 458,191 46.93% 471,937 10.08% 486,095 6.82% 500,678 5.71%
Advertising and Promotion Expense 53,511 8.00% 78,104 8.00% 374,416 8.00% 427,655 6.00% 526,187 6.00%
Rent Expense 387,000 57.86% 387,000 39.64% 387,000 8.27% 387,000 5.43% 387,000 4.41%
Research and Development Expense 30,000 4.49% 40,000 4.10% 60,000 1.28% 70,000 0.98% 90,000 1.03%
Commissions Expense 5,000 0.75% 5,000 0.51% 7,500 0.16% 7,500 0.11% 7,500 0.09%
General Insurance Expense 755 0.11% 755 0.08% 755 0.02% 755 0.01% 755 0.01%
Travel, Meals, and Entertainment 40,000 5.98% 50,000 5.12% 70,000 1.50% 80,000 1.12% 90,000 1.03%
Website Expense 9,020 1.35% 7,500 0.77% 7,500 0.16% 7,600 0.11% 7,700 0.09%
Licenses 50 0.01% 50 0.01% 50 0.00% 50 0.00% 50 0.00%
Office Expense 20,000 2.99% 15,000 1.54% 15,500 0.33% 16,000 0.22% 16,500 0.19%
Depreciation Expense 7,058 1.06% 7,058 0.72% 16,177 0.35% 23,148 0.32% 23,345 0.27%
Payroll Expense - 0.00% - 0.00% 840 0.02% 860 0.01% 864 0.01%
Total Operating Expenses $ 2,534,640 378.93% $ 2,632,180 269.61% $ 3,042,703 65.01% $ 3,186,621 44.71% $ 3,380,937 38.55%

Earnings Before Interest and Taxes $ (2,166,811) -323.94% $ (2,070,884) -212.12% $ (505,868) -10.81% $ 944,376 13.25% $ 1,981,211 22.59%

Interest Expense 120,000 17.94% 120,000 12.29% 120,000 2.56% 120,000 1.68% 120,000 1.37%

Earnings Before Taxes $ (2,286,811) -341.88% $ (2,190,884) -224.41% $ (625,868) -13.37% $ 824,376 11.57% $ 1,861,211 21.22%

Income Tax Expense - 0.00% - 0.00% - 0.00% 47,402 0.67% 107,020 1.22%

Net Income (Loss) $ (2,286,811) -341.88% $ (2,190,884) -224.41% $ (625,868) -13.37% $ 776,974 10.90% $ 1,754,191 20.00%

Operating Cash Flow $ (2,159,753) $ (2,063,826) $ (489,691) $ 920,122 $ 1,897,537

Free Cash Flow $ (2,396,953) $ (2,226,401) $ (845,611) $ 641,539 $ 1,751,934

Statement of Retained Earnings

Beginning Balance of Retained Earnings $ - $ (2,286,811) $ (4,477,695) $ (5,103,563) $ (4,326,589)

Net Income (Loss) (2,286,811) (2,190,884) (625,868) 776,974 1,754,191

Dividends to Stockholders - - - - -

Ending Retained Earnings $ (2,286,811) $ (4,477,695) $ (5,103,563) $ (4,326,589) $ (2,572,398)

 Page 15 - Exhibit 12: Balance Sheet
Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

As of Inception Date Ending Date Ending Date Ending Date Ending Date Ending
Date % 2022 % 2023 % 2024 % 2025 % 2026 %
ASSETS

Current Assets

Cash and Cash Equivalents $ 5,050,000 100.00% $ 2,653,047 92.96% $ 426,646 63.61% $ (418,966) -321.96% 222,573 23.42% 1,974,507 72.41%
Accounts Receivable - 0.00% - 0.00% - 0.00% 117,002 89.91% 170,394 17.93% 209,272 7.67%
Inventory - 0.00% 66,716 2.34% 117,044 17.45% 138,847 106.70% 147,971 15.57% 152,984 5.61%
Total Current Assets $ 5,050,000 100.00% $ 2,719,763 95.30% $ 543,689 81.06% $ (163,117) -125.35% $ 540,938 56.91% $ 2,336,763 85.69%

Fixed (Long-Term) Assets

Machinery and Equipment - 0.00% 141,165 4.95% 141,165 21.05% 323,540 248.63% 462,960 48.71% 466,905 17.12%
Buildings - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00%
Total Gross Fixed Assets $ - 0.00% $ 141,165 4.95% $ 141,165 21.05% $ 323,540 248.63% $ 462,960 48.71% $ 466,905 17.12%
Less: Accumulated Depreciation - 0.00% (7,058) -0.25% (14,116) -2.10% (30,293) -23.28% (53,441) -5.62% (76,786) -2.82%
Net Fixed Assets $ - 0.00% $ 134,107 4.70% $ 127,049 18.94% $ 293,247 225.35% $ 409,519 43.09% $ 390,119 14.31%

Total Assets $ 5,050,000 100.00% $ 2,853,870 100.00% $ 670,738 100.00% $ 130,130 100.00% $ 950,457 100.00% $ 2,726,881 100.00%

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Current Liabilities

Accounts Payable - 0.00% 14,441 0.51% 19,906 2.97% 102,810 79.01% 143,736 15.12% 163,453 5.99%
Accrued Salaries and Wages - 0.00% 47,619 1.67% 49,048 7.31% 50,519 38.82% 52,035 5.47% 53,613 1.97%
Accrued Payroll Taxes and Benefits - 0.00% 28,621 1.00% 29,480 4.40% 30,364 23.33% 31,275 3.29% 32,213 1.18%
Current Maturity of LT Debt - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00%
Total Current Liabilities $ - 0.00% $ 90,681 3.18% $ 98,434 14.68% $ 183,693 141.16% $ 227,046 23.89% $ 249,279 9.14%

Long-Term Liabilities

LT Debt Less Current Maturities $ 2,000,000 39.60% $ 2,000,000 70.08% $ 2,000,000 298.18% $ 2,000,000 1536.93% $ 2,000,000 210.43% $ 2,000,000 73.34%

Total Liabilities $ 2,000,000 39.60% $ 2,090,681 73.26% $ 2,098,434 312.85% $ 2,183,693 1678.09% $ 2,227,046 234.31% $ 2,249,279 82.49%

STOCKHOLDER'S EQUITY

Common Stock 1,050,000 20.79% 1,050,000 36.79% 1,050,000 156.54% 1,050,000 806.89% 1,050,000 110.47% 1,050,000 38.51%
Preferd Stock 2,000,000 39.60% 2,000,000 70.08% 2,000,000 298.18% 2,000,000 1536.93% 2,000,000 210.43% 2,000,000 73.34%
Retained Earnings - 0.00% (2,286,811) -80.13% (4,477,695) -667.58% (5,103,563) -3921.90% (4,326,589) -455.21% (2,572,398) -94.33%
Total Stockholders' Equity $ 3,050,000 60.40% $ 763,189 26.74% $ (1,427,695) -212.85% $ (2,053,563) -1578.09% $ (1,276,589) -134.31% $ 477,602 17.51%

Total Liabilities and Stockholders' Equity $ 5,050,000 100.00% $ 2,853,870 100.00% $ 670,738 100.00% $ 130,130 100.00% $ 950,457 100.00% $ 2,726,881 100.00%
 Page 16 - Exhibit 13: Cash Flow Statement

Key
Pro Forma Statement of Cash Flows Input Field
Build Formula

As of Inception Date Ending Date Ending Date Ending Date Ending Date Ending
Date 2022 2023 2024 2025 2026
Cash Flows From (For) Operations
Net Income $ - $ (2,286,811) $ (2,190,884) $ (625,868) $ 776,974 $ 1,754,191
Depreciation - 7,058 7,058 16,177 23,148 23,345
Changes in Current Assets
Increase in Accounts Receivable - - - (117,002) (53,392) (38,878)
Increase in Inventories - (66,716) (50,327) (21,803) (9,125) (5,013)

Changes in Current Liabilities

Increase in Accounts Payable - 14,441 5,465 82,904 40,926 19,717
Increase in Accrued Salaries and Wages - 47,619 1,429 1,471 1,516 1,578
Increase in Accrued Payroll Taxes and Benefits - 28,621 859 884 911 938

Net Cash Flow From (For) Operating $ - $ (2,255,788) $ (2,226,401) $ (663,236) $ 780,959 $ 1,755,879

Cash Flow (For) From Investing Activities

Fixed Asset Purchases - (141,165) - (182,375) (139,420) (3,945)

Net Cash Flow (For) From Investing $ - $ (141,165) $ - $ (182,375) $ (139,420) $ (3,945)

Cash Flow From (For) Financing Activities

Issuance of Common Stock $ 1,050,000 $ - $ - $ - $ - $ -
Issuance of Prefered Stock $ 2,000,000 $ - $ - $ - $ - $ -
Long Term Debt Borrowings 2,000,000 - - - - -
Long Term Debt Payments - - - - - -
Dividends Paid to Stockholders - - - - - -
Net Cash Flows From (For) Financing $ 5,050,000 $ - $ - $ - $ - $ -

Net Change in Cash $ 5,050,000 $ (2,396,953) $ (2,226,401) $ (845,611) $ 641,539 $ 1,751,934

Beginning Cash Balance $ - $ 5,050,000 $ 2,653,047 $ 426,646 $ (418,966) $ 222,573

Net Change in Cash $ 5,050,000 $ (2,396,953) $ (2,226,401) $ (845,611) $ 641,539 $ 1,751,934

Ending Cash Balance $ 5,050,000 $ 2,653,047 $ 426,646 $ (418,966) $ 222,573 $ 1,974,507 *

 Page 17 - Exhibit 14: Financial Statement Notes
Accounting Methods

StickyProof uses straight-line depreciation for StickyProof’s assets with a 20-year useful life and little to no salvage value.

Assumptions

The following assumptions are made in developing the pro forma statements:

Revenue:

• Sales Revenue is calculated from: (annual unit sales) x (the retail price) in Exhibit 4.
• Costs of Goods Sold are calculated: (unit sales) x (variable price of one unit (4 plates)) in Exhibit 4.

Expenses:

• The salaries, benefits, and payroll taxes are calculated with a 3% increase each year to account for raises and inflation.
• Rent expense was found to be $32,250 per month (LoopNet, 2022).
• Commissions is allocated $2,500 for every distribution sales associate employed.
• General Insurance the company used was the median cost (Insureon, 2022).
• For Website expense, we took a more expensive approach with a $9,000 expense for the initial design cost and $20 expense for
the domain name (Upwork, n.d.). For Years 2 and 3, it is $625 a month to maintain a small ecommerce website (Monaghan,
2022). However, in Years 4 and 5, we increased it by $100 to account for the additional traffic that will be coming from the
expansion into retail stores.
• License fee is based on Georgia LLC and is renewed each year (ICTSD, 2022)
• Payroll is outsourced for Years 3-5 and is calculated at $4 per employee and $59 per month.

Assets:

• Accounts Receivable are calculated on the assumption that 35% of revenue from Years 3-5 comes from wholesale, which will be on
credit n/60 terms.
• Inventory is calculated with the assumption the factory is working at max capacity. The inventory not sold in one year will be sold
first before the units produced in the following year.

Liabilities:

• Accrued salaries at the end of the year will be two weeks as employees are paid bi-monthly and will be paid the following year.
• Accounts payable are calculated: (cost of goods sold) ÷ (operating months in the year).
• Accrued benefits and payroll tax are calculated using the same method as accrued salaries.

Investment Capital

The initial startup costs are funded with $1,050,000 from StickyProof’s founders. $4,000,000 will come from angel investors, where 50% is
a convertible debt with a 6 percent simple interest that can be converted after five years. The other 50% will come from the issuance of
preferred stock. This funding will be used to rent a warehouse that will hold our entire operations, buy equipment and resources, and pay
our employees.

Capital Investments

The initial capital investment is $141,165 for Year 1 for buying machinery that will be in our leased factory.

Risks

• Risks related to manufacturing and warehouse employees that are likely to be injured while operating heavy machinery if not
following safety guidelines.
• Risks related to product quality. Our guidelines to reduce imperfections in product quality. It is possible that our measures will not
be sufficient to satisfy the consumer.

*The excess cash at the end of year 5 will be used to expand into food containers. This cash will be used in hiring new employees, buying
new equipment, renting new facilities, increasing R&D budget, & buying resources.*
 Page 18 – Exhibit 15: Financial Ratios

Key
Financial Ratios Table Input Field
Build Formula

Date Ending Date Ending Date Ending Date Ending Date Ending Industry Average
2022 2023 2024 2025 2026 Ratios

Liquidity Ratios
Current Ratio $ 29.99 $ 5.52 $ (0.89) $ 2.38 $ 9.37 $ 1.87
Quick Ratio $ 29.26 $ 4.33 $ (1.64) $ 1.73 $ 8.76 $ 1.01
Operating Cycle $ 80.89 $ 102.94 $ 32.77 $ 26.75 $ 25.10 $ 113.30

Leverage Ratios
Debt/Equity $ 2.74 $ (1.47) $ (1.06) $ (1.74) $ 4.71 $ 0.04
Times Interest Earned $ (18.06) $ (17.26) $ (4.22) $ 7.87 $ 16.51 $ 18.79

Asset Management Ratios

Inventory Turnover $ 4.51 $ 3.55 $ 15.44 $ 20.25 $ 22.27 $ 10.37
Receivables Turnover $ - $ - $ 40.00 $ 41.83 $ 41.91 $ 12.07
Fixed Asset Turnover $ 4.99 $ 7.68 $ 15.96 $ 17.40 $ 22.48 $ 7.19

Profitability Ratios
Gross Profit Margin $ 0.55 $ 0.57 $ 0.54 $ 0.58 $ 0.61 $ 0.32
Operating Profit Margin $ (3.24) $ (2.12) $ (0.11) $ 0.13 $ 0.23 $ 0.09
Return on Assets $ (0.80) $ (3.27) $ (4.81) $ 0.82 $ 0.64 $ 10.10

DuPont Analysis
Net Profit Margin $ (3.42) $ (2.24) $ (0.13) $ 0.11 $ 0.20 $ 0.65
Total Asset Turnover $ 0.23 $ 1.46 $ 35.97 $ 7.50 $ 3.22 $ 2.17
Equity Multiplier $ 3.74 $ (0.47) $ (0.06) $ (0.74) $ 5.71 $ 1.04
Return on Equity $ (3.00) $ 1.53 $ 0.30 $ (0.61) $ 3.67 $ 0.02

Business Valuation $15,333,703.21

 Page 19 - Exhibit 16: Financial Analysis

Liquidity:

Our company’s current ratio and quick ratio is above the industry average. This indicates we can cover our debt
but are not making efficient use of our assets. Our company’s operating cycle is below industry average, which
means we can convert our inventory to cash from customers quicker than other companies in the same
industry.

Financial Leverage:

Our times interest earned ratio is a little lower than the industry average and indicates that we can repay our
debt repayment and shows our creditors that the company will protect its interests. The debt/equity ratio is
above the industry average, which shows that our company has more risk compared to other companies in our
industry. However, most of the debt is convertible debt, which can change into equity after Year 5.

Asset Management:

The inventory turnover ratio is above the industry average from Year 3 to Year 5, where it is double the industry
average. This shows our company is consistently above average at selling our inventory when we go into selling
with retailers. The receivables turnover ratio is over three times larger than the industry average by Year 5. This
shows that the company is collecting accounts receivable quicker than others and has little outstanding. The
fixed asset turnover begins below industry average in year 1 but becomes above industry average in Year 5
with increases until Year 5 where it is three times larger than the industry average. This implies that the
company is efficiently using its fixed assets to generate revenue.

Profitability:

Our company’s gross profit ratio is almost double the industry average. The operating profit margin starts
negative but becomes positive in Year 4 and above the industry average. The return on asset ratio is lower than
the industry average, which is caused by the company’s investment in new equipment to expand production.
Based on these ratios, the company’s profitability is above the industry average for the first five years.

Dupont Analysis:

The current net profit margin ratio is below industry average but is increasing and the ratio almost double from
Year 4 to Year 5, which encourages us that the company will soon have lower risk that a decline in sales will
erase profits sometime in the future after Year 5. The total asset turnover ratio is just above the industry
average in Year 5, which means the company is using its assets more efficiently than others in our industry. The
equity multiplier ratio is over five times the industry average, which indicates we need a higher cash flow to
sustain our operations and new creditors may be wary of giving more financing. The return on equity ratio is
above the industry average in Year 5, which indicates that the company is efficiently using the finances from the
shareholders to help grow the business.

Valuation Method:

To find the valuation of our business we looked up our industry's valuation multipliers and chose the sales
valuation multiplier for our sales volume category (0.69 multiplier @ $2.5m - $24.9m) and multiplied by our
total sales in the first 5 years (~$18.37m). This gave our business a valuation of ~$12.68m. With lots of cash
at our disposal, we have plenty of room to grow and cover our debts as we expand our product line into
StickyProof Tupperware down the road, which provides extra value beyond our initial valuation.
 Page 20 - Bibliography

Bibliography

1910 Murphy Ave SW, Atlanta, GA 30310 - 1910 Murphy Ave. LoopNet. (2022). Retrieved

October 8, 2022, from http://www.loopnet.com/Listing/1910-Murphy-Ave-SW-

Atlanta-GA/4023537/

Al Bari, S. (2022, August). Ceramics Manufacturing in the US. IBISWorld. Retrieved October

10, 2022, from https://my.ibisworld.com/us/en/industry/32711/key-statistics

Alibaba. (2022). Automation Equipment Ceramic Porcelain Mugs /Cups/Saucers/Plates

Glazing Dipping Machine. Buy ceramic porcelain mug making machine, glazing

machine for ceramic mixer, ceramic tableware outer glaze machine ceramic

machinery for sale. Retrieved October 8, 2022, from

https://www.alibaba.com/product-detail/Automation-Equipment-Ceramic-Porcelain-

Mugs-

cups_1600472006061.html?spm=a2700.galleryofferlist.normal_offer.d_image.5dfe4

d3a4wRKxZ

Alibaba. (2022). China ceramic glaze grade wollastonite power price. Buy ceramic grade

wollastonite powder, wollastonite wholesale for glaze, wollastonite powder.

Retrieved October 8, 2022, from https://www.alibaba.com/product-detail/Ceramic

Glaze-China-Ceramic-Glaze-Grade_1600254026843.html

spm=a2700.7724857.0.0.13332c95e5Z41z&s=p

Alibaba. (2022). Clay slip, pottery, and ceramic clay raw material for making

plate/bowl/mugs. Buy manufacturer of clay product and ceramics foam clay bulk,

ceramic raw materials new bone China clay, grade washed kaolin clay white clay for

pottery. Retrieved October 8, 2022, from https://www.alibaba.com/product-

detail/clay-slip-pottery-and-ceramic-clay_1600328590798.html
 Page 21 - Bibliography

Alibaba. (2022). Iron Oxide Blue Powder pigments for Bricks colorant concrete porcelain

glaze products pigment. Buy pigment for colored asphalt, pigments for color

concrete tile, color pigment for concrete. Retrieved October 8, 2022, from

https://www.alibaba.com/product-detail/Iron-Oxide-Blue-Powder-pigments

for_1600502745097.html?spm=a2700.7724857.0.0.65c24b97T7Zn4x

Alibaba. (2022). Iron Oxide Red Powder pigments for bricks ceramic colored concrete

porcelain products glaze oxide pigments ferric pigment. Buy iron oxide pigment for

plastics, ceramic powder, masterbatch pigment toning. Retrieved October 8, 2022,

from https://www.alibaba.com/product-detail/Red-Pigments-Ceramic-Glaze-

Pigment-

Iron_1600505028531.html?spm=a2700.galleryofferlist.normal_offer.d_image.3cc73

1e1SpPzbo&s=p

Alibaba. (2022). Machine for making ceramic cups and plates. Source Machine for making

ceramic cups and plates on m.alibaba.com. (n.d.). Retrieved October 10, 2022, from

https://m.alibaba.com/product/1600450910657/Machine-for-making-ceramic-cups-

and.html?spm=a2700.details.0.0.6c1c4300H9mOhS&redirect=1

Bed, bath & beyond: Gross margin worldwide 2021. Statista. (2022, July 27). Retrieved

October 10, 2022, from https://www.statista.com/statistics/1076169/gross-margin-

of-bed-bath-and-beyond-

Bizminer 2.0 Web Application. Industry Financial Analysis and Industry Market Analysis.

(n.d.). Retrieved October 10, 2022, from https://app.bizminer.com/industry-market-

profile/18180395/market

Bizminer's granular industry financial & market benchmarks. Bizminer. (2022, September

22). Retrieved October 10, 2022, from https://bizminer.com/

 Page 22 - Bibliography

Boyko Inc. (n.d.). Belt conveyor with spray bar. Retrieved October 10, 2022, from

https://www.boykoinc.com/used-equipment/conveyors-conveying-systems/belt-

conveyor/5100007- belt-conveyor-with-spray-bar

Ceramic tableware market size in 2022 with 5.5% CAGR. MarketWatch. (n.d.). Retrieved

October 10, 2022, from https://www.marketwatch.com/press-release/ceramic-

tableware-market-size-in-2022-with-55-cagr-which-segments-are-projected-to-

have-promising-growth-rate-in-future-in-depth-analysis-in-154-pages-report-2022-

07-05

Creamer, J., Shrider, E. A., Burns, K., & Chen, F. (2022, September 13). Poverty in the

United States: 2021. Census.gov. Retrieved October 10, 2022, from

https://www.census.gov/library/publications/2022/demo/p60-277.html

Commercial Property Insurance Cost. Insureon. (2022). Retrieved October 10,

2022, from https://www.insureon.com/small-business-insurance/commercial-

property/cost

Dinner plates. MORA CERAMICS. (2022). Retrieved October 10, 2022, from

https://moraceramics.com/collections/all-plates/products/rimmed-and-flat-dinner-

plates-10-5-in-assorted-neutralsOfficial Data Foundation. (n.d.). Inflation rate for

household paper products between 2021-2022. Household paper products price

inflation, 2021→2022. Retrieved October 10, 2022, from

https://www.in2013dollars.com/Household-paper-products/price-inflation/2021-to-

2022?amount=20

Georgia USA. (2021, March). Georgia China Connection. Georgia Department of Economic

Development. Retrieved October 10, 2022, from

https://www.georgia.org/sites/default/files/2021-

05/georgia_china_connection_2021.pdf
 Page 23 – Bibliography

Glazing systems for ceramic tableware: Sama Maschinenbau. Glazing systems for ceramic

tableware | SAMA MASCHINENBAU. (2022). Retrieved October 8, 2022, from

https://sama.sacmi.com/en-US/Tableware/Glazing

Guirdham, O. (2021, September 21). Convenient Households & increase in working

population are the key reasons for the growth of the dishwasher's market. EIN News.

Retrieved October 10, 2022, from

https://www.einnews.com/pr_news/551926911/convenient-households-increase-in-

working-population-are-the-key-reasons-for-the-growth-of-the-dishwashers-market

How Much Does A Business License Cost In Ga? ICTSD. (n.d.). Retrieved October 10, 2022,

from https://www.ictsd.org/business/how-much-does-a-business-license-cost-in-

ga/#qa_2

How much does it cost to build a website? (2022 data) | Upwork. (n.d.). Retrieved October

10, 2022, from https://www.upwork.com/resources/how-much-does-it-cost-to-build-

website

Howard Perlman, U. S. G. S., & Scott Young, U. S. G. S. (n.d.). How much water do you use

at home? Per capita water use: How much water do you use at home? USGS Water

Science School. Retrieved October10, 2022, from

https://water.usgs.gov/edu/activity-

percapita.php#:~:text=Newer%20kitchen%20faucets%20use%20about,whereas%2

0older%20faucets%20use%20more

Malick, S. (2022, February 23). How long do ceramic plates last? interiorgap.com. Retrieved

October 10, 2022, from https://interiorgap.com/how-long-do-ceramic-plates-last/

McNary, B. (2017, June 19). Dishwashers are among the least-used appliances in American

Homes. U.S. Energy Information Administration. Retrieved October 10, 2022, from

https://www.eia.gov/todayinenergy/detail.php?id=31692#:~:text=Of%20the%2080

%20million%20households,Energy%20Consumption%20Survey%20(RECS).
 Page 24 - Bibliography

Monaghan, M. (2022, February 11). Website maintenance cost: 2022. Website Builder

Expert. Retrieved October 10, 2022, from

https://www.websitebuilderexpert.com/building-websites/website-maintenance-cost/

Nasri, Mohammad (2014, August 18). Integrated Marketing Communications Plan (red bull).

Academia.edu.Retrieved October 10, 2022, from

https://www.academia.edu/8014665/Integrated_Marketing_Communications_Plan_R

ed_Bull_

Olympic Kilns. (2022, August 1). FL53E car kiln - electric, gas, and glass firing kilns:

Olympic Kilns. Electric, Gas, and Glass Firing Kilns. Retrieved October 8, 2022, from

https://www.olympickilns.com/product/fl53e-car-kiln/

Placek, M. (2022, September 30). Flatbed rates in the U.S. 2022. Statista. Retrieved

October 8, 2022, from https://www.statista.com/statistics/1170735/flatbed-rate-us-

trucking/#:~:text=In%20March%202022%2C%20the%20spot,3.39%20U.S.%20dol

lars%20on%20average

Plates. Fiesta Factory Direct. (2022). Retrieved October 10, 2022, from

https://fiestafactorydirect.com/collections/plates

Share of U.S. college students that are employed while attending college in 2016. Statista.

(2016, June 29). Retrieved October 10, 2022, from

https://www.statista.com/statistics/715262/share-of-us-college-undergraduates-

that-work-part-time-while-studying/

Soehnel, E. (2019, September 12). On average, how much does target mark up its items?

Eddie Soehnel. Retrieved October 10, 2022, from https://eddiesoehnel.com/average-

much-target-mark-

items/#:~:text=Not%20including%20produce%2C%20on%20average,price%20

(SRP%20or%20MSRP)
 Page 25 - Bibliography

Technology - liquiglide's permanently wet surface. LiquiGlide. (2021, April 23). Retrieved

October 7, 2022, from https://liquiglide.com/tech/

Tighe, D. (2022, February 4). Shoppers who would pay more for sustainable products by

generation U.S. 2018. Statista. Retrieved October 10, 2022, from

https://www.statista.com/statistics/936491/shoppers-who-would-pay-more-for-

sustainable-products-by-generation-us/

Time use of U.S. college students on an average weekday 2005-2009. Statista. (2010,

September 30). Retrieved October 10, 2022, from

https://www.statista.com/statistics/233258/us-college-students-use-of-time-on-an-

average-weekday/

Uspto fee schedule. United States Patent and Trademark Office - An Agency of the

Department of Commerce. (2022, October 1). Retrieved October 10, 2022, from

https://www.uspto.gov/learning-and-resources/fees-and-payment/uspto-fee-

schedule#Patent%20Fees
My name is Ari Agrapides and I am a Senior transfer student from Bayville, New Jersey. I
transferred from the University of Iowa, where I competed in D1 Gymnastics. I am a Marketing
Major and have plans of graduating in Fall of 2023. In my free time, I enjoy yoga, going to the
beach, reading, and spending time with family and friends.

My name is Connor Bassett, I am a junior accounting student with aspirations of graduating in

Spring 2024. I am from Northern Virginia, more specifically Woodbridge, Virginia. Outside of
my business classes, I am a part of the Admissions Office’s Student Ambassador organization.
In my spare time, I am an avid fan of baseball, especially of the New York Yankees.

My name is Kaylan Campbell. I am a junior transfer student from Madison, Va. I transferred
from Germanna Community College to James Madison University and have plans of graduating
in Marketing, Fall of 2023. I worked with JMU’s Media Production Services as a videographer
and graphic designer during the 2021-22 school year. I am now interning for Rocco Building
Supplies in Harrisonburg. I enjoy kayaking, hammocking, and documenting life through photos
and videos.

My name is Jordan Harris. I am a junior accounting major, with a minor in Economics. I was
born and raised in Waynesboro, Virginia. I hope to graduate with a Master’s in Accounting in
2025. I enjoy reading, making art, listening to music, and visiting museums.

My name is Ally Hyers, I am a junior Marketing student from Winchester, MA. I have plans to
graduate in May 2024 with a degree in Marketing, with a Digital Media concentration and a
minor in Spanish. I am a member of the Student Advisory Council for the College of Business at
JMU as well as an executive member with the title “Tour Coordinator” for this organization. I
am also a part of Sigma Delta Pi, which is a National Spanish Honor Society. In my free time, I
enjoy reading and going on neighborhood walks with my family.

My name is Thomas Koogler, and I am a Management major at JMU with a concentration in

Entrepreneurship, and I am planning on graduating in the spring of 2024. I am originally from
Staunton, Virginia. I have been a member of the Madison Motorsports car club at JMU since
freshman year and have taken courses and have gained certifications from the Madison
Automotive Apprentice Program. In my spare time I enjoy being in nature, restoring vintage
vehicles, and occasionally shooting digital or film photography.

My name is John Langan, and I was born in Sacile, Italy, but I have resided in Northern Virginia
for most of my life. I am a Finance major and am currently working at OTJ architecture in their
finance dept. On campus I am a part of Kappa Alpha Order and serve as our Diversity, Equity,
and Inclusion head. Additionally, I am a board representative for Students Against Sexual
Violence. Outside of class I enjoy playing/watching basketball, baseball, men's softball, and
making bogeys in golf.