1. style and fashion
2. footwear
3. shoes

Chief Executive Officer: Diana Lam
VP of Marketing: Rocio Mancia
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Website: www.DigitalSafari.org/ebizz2006/FeelGood
Executive Summary
Feel Good understands that living in the 21st century is all about fashion statements, money, and
convenience at the heel of your foot. With technology rising at a speeding rate, if businesses expect to
survive, they must produce innovative products.
At Feel Good we have developed Solamente, which is a shoe with an adjustable heel that is designed for
comfort. The heel is equipped with a thermal insole that adjusts the heel’s height and width. Included with
the shoe are cushioned insoles, flexible leather exterior, arch support and the optional remote control key
chain accessory.
Our philosophy at Feel Good is to provide a specialized heel that is affordable, comfortable, convenient,
and stylish for women. We want all of our prized customers to be satisfied with their purchases. We also
want to greatly reduce the number of injuries and surgeries done to women.
In September 2005, Diana Lam and Rocio Mancia were discussing the issues of foot pain caused by the
usage of high heels. This led to the ingenious design of a shoe with an adjustable heel that will reduce the
aching feet dilemma. They partnered with one another and brought their CFO Matt Davis into this huge
invention. These three founded the company, Feel Good.
Due to the growing number of foot injuries Solamente was invented. From a recent study by the American
Orthopedic Foot and Ankle Society, it was reported that 90% of foot surgeries were performed on women
yearly in the United States. From the same study, it was found that 82% of women suffer from foot pain.
This data provides ample support that Solamente is an essential product within the market.
Feel Good is requesting $1.5 million to launch our advertising campaign. Our main marketing plan is to
advertise within print media to reach our target audience. Our major advertising channel would be through
women’s magazines. We will be using the funds efficiently to promote Solamente worldwide.
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Website: www.DigitalSafari.org/ebizz2006/FeelGood
Company Profile
Company History
Feel Good was founded in September of 2005 in Concord, CA. Chief Executive Officer of Feel Good, Diana Lam teamed
up with Rocio Mancia, marketing specialist, to create Solamente. This product will essentially become a revolution in shoe
technology. Afterwards, Matt Davis joined the team as the CFO. Feel Good is located in many cities all over the United
States, but eventually hopes to expand into the international market. Feel Good will be entering into the retail market as a
sole proprietorship. As a new company, Feel Good is in need of money in its early stages.
Product
We have created Solamente, which is a shoe mainly designed for businesswomen. The special feature of this product is
its retractable heel that adjusts to different heights and widths. It provides the ultimate level of comfort for the on-the-go
woman. This shoe allows our customer to eliminate pain while walking as well as maintain a fashionable style.
Goals/Objectives
Feel Good hopes to achieve annual sales of $2 million. Our company hopes to extend into the international market after
the sixth quarter. Also, Feel Good will eventually branch into different categories of shoes, besides business dress. We,
as a company strive to provide top quality customer service and will give a money back-guarantee for anyone unsatisfied
with Solamente.
Mission Statement
Our mission is to provide a comfortable yet stylish shoe for women. We want our customers to be completely satisfied
with their purchase; therefore we promise to give excellent customer service. We want a product that will save time for the
everyday busy woman. With this philosophy, we intend to become the largest shoe company in the United States within 5
years.
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Website: www.DigitalSafari.org/ebizz2006/FeelGood
Executives:
Diana Lam- Chief Executive Officer (CEO):
Ms. Lam attended MIT and graduated with a master’s degree in
management, as well as a minor in technology. She has adept
skills in leading a corporation and has the initiative to get the work
done. Besides the business aspect, Ms. Lam works with non-profit
organizations, giving back to the community in her spare time.
Ms. Lam was born in Martinez, CA. She is currently engaged to be
married, and would like to settle down once Feel Good is up and
running smoothly. She hopes to be successful within the shoe market,
and possibly branch into other endeavors later in the future.
Rocio Mancia-VP in marketing:
Mrs. Mancia graduated from San Francisco State University of
California. She has a bachelor’s degree in Liberal Arts and a minor in
Sign Language. She is currently interpreting for the United Nations. As
a previous job, Mrs. Mancia was the CEO of Digital Safari Design. Mrs.
Mancia possesses many leadership skills and works as a team player.
Mrs. Mancia lives in Cambria, CA with her husband of 6 years, and
their 3 children. She is content with her life and can’t wait to join Feel
Good once her pregnancy is through.
Matt Davis-Chief Technical Officer:
Mr. Davis graduated from Dukes University with a Masters degree in
Computer Science and a minor in Accounting at Marietta College. He
is presently Feel Good’s Chief Technical and Financial Officer. Matt
has participated in many ongoing volunteer projects in part with other
companies. He has a good understanding of how and what is needed
for a business to run efficiently.
Mr. Davis currently resides in Arizona with his wife of 4 years and
his only child. He is looking forward to building a new management
building in Arizona.
Opportunity Assessment
In order to assess whether our product will be a success within the market, we must research the latest trends. This
information can help identify whether our product will have a potential future to grow.
In our society, most women tend to wear high heels in the working environment. This increasing demand is due to the
number of women gaining executive positions “women now hold 8.8 percent of executive business positions.” (The
Advertiser) According to a survey by The American Pediatric Medical Association, almost three-quarters of women wear
high heel shoes on a regular basis, and 39 percent wear high heels everyday. The trend of wearing heels gives women
the professional and power status they need to compete with their male counterparts.
Also, women choose to wear high heels during special occasions, such as a wedding or parties. “Eighty-three percent
wear high heels for fashion or style and another 72 percent said they needed the shoes to complete their wardrobe.”
(Canarsie Courier) In another study, it was stated that “fifty percent of women can’t find dress shoes that are fashionable
and comfortable.” (American Orthopedic Foot and Ankle Society)
The increased usage of heels has caused many women a vast amount of “foot problems, such as bunions, blisters, and
calluses”. (Stevens Point Journal) “42 percent of women said they wear high heels, despite the pain, for the sake of style
or to look more attractive.” (Canarsie Courier) “The footwear that some feel obligated to wear in the workplace may be
playing a role in foot problems.” (Dr. Foot) “Women have about four times as many foot problems as men and high heels
are partly to blame.” (Gulf News online) “A shoe with a higher heel than 1-1/4 inch can throw off the body’s alignment and
cause ankle, knee, and hip problems.” (Gee 7) In other cases, “Seventy-two percent of women suffer from one or more
foot deformities.” (AOFAS)
With the rise of foot problems, many companies have created many products to alleviate pain and reduce problems, such
as Dr. Scholl’s. Many products typically used for foot problems include insoles, silicone elasticated metatarsal pads, heel
cups, heel balm or foot cream, and sometimes a toe spreader for bunions. Dr. Scholl’s products have created items that
help alleviate the common foot problems, and this technology has expanded over the last decade. (Schering Canada
Inc) Women have eagerly searched for “comfortable and attractive ‘walking’ shoes (also called ‘comfort’ or ‘performance’
shoes) for work or social activities.” (Dr. Foot) The comfort shoe market, which includes high-tech heels as well as flats,
has been growing over the past few years and its customer base has been getting younger according to Footwear News.
There is a tremendous need for a shoe with comfort and style within this market; therefore our company Feel Good will be
successful.
Our product, Solamente, is a shoe with an adjustable heel that provides long-lasting comfort to alleviate these
troublesome foot problems. It can change to four different heights and widths to supply the maximum level of comfort.
With the rise to foot problems, Solamente is the perfect product to solve this dilemma.
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Web site: www.DigitalSafari.org/ebizz2006/FeelGood
Product Description
Our product, Solamente, provides many things for the everyday woman. When your feet get tired, you will be able to
make yourself comfortable by turning the heel into a flat shoe. Or if you are coming from your daily run, and you want to
go out dancing, you can easily change your shoe into a heel. Then, when you get tired from a long night of dancing, you
can switch back non-stop! Our product provides comfort and stability in the most convenient way possible. Never again
will you complain about discomfort or aching feet.
Everyday, people search for things that will make their lives easier. Solamente will fill that need by reducing the time
people spend switching shoes for different events. This all-in-one shoe will be right on your feet and will provide comfort
everywhere you go. No longer will you have to bear the pain of wearing a heel all day long! This will be a timesaving
device for women with busy schedules that need those extra few minutes throughout the day. Most women need to wear
heels at work or for special occasions, but can’t seem to find elegance and comfort. With Solamente, you’ll receive the
style as well as comfort level you desire.
This is a shoe designed especially for women on the go. A heel that adjusts to various heights for a special occasion or
for everyday walking. With the quick press of a concealed button on the shoe, it activates the heel to the appropriate level.
Or with the extra feature of a remote control key chain, things will be even easier. This shoe can change to four different
height levels (A-D), and four different width sizes (1-4). The shoe is made for casual business attire of for the night
out, without the hassle of changing to another pair. Solamente provides full arch support, ample cushioning and much
flexibility. This product is made with the latest Therma-Set technology that releases a small amount of electricity to couture
to one’s foot size and shape. This versatile product is designed for all weather protection, created for those unpredictable
conditions and moments. Our specialized designers have worked to assure that the Retract-O-Heel will be comfortable,
yet fashionable.
This is the one product you’ve been waiting for Solamente-The one for you.
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Website: www.DigitalSafari.org/ebizz2006/FeelGood
Market Analysis
In order to determine our greatest percentage of sales, we must observe our target audience. We must figure out who are
potential buyers will be, and their willingness to buy our product. Once we figure out who our target audience is, we will be
able to make a connection with them and know how to market our product.
Our target audience for our product is women. We already know that many women of all shapes and sizes wear high
heels for fashion, special occasions, casual wear, or business attire. They are our target audience for many reasons
because we know what their interests are, what kind of environment they work in, and their geographical location. With
this knowledge, we know that they are in need of our product.
Woman from the ages of 23 to 47 would be a perfect match for our Solamente, because they are still working in business
and have to dress the part. Which usually means that they also enjoy partying or dressing up for special occasions so
they could be ultra comfortable.
Business Women tend to be paid very well, so our target women are those of the middle class. Our product would not
sell very much to those who wouldn’t be able to afford it. We do not have a specific race that we will be selling to because
many types of women use high heels, and if we just want to sell to a specific race, we would be cutting out a lot of our
customers.
We will market on women’s and business magazines, billboards, T.V. networks, advertisements in department stores, and
also in other big businesses.
Potential price for Solamente
12
10
10
9
8
6
5
5
$95
$100
Amount of People
The graph to the left analyzes, the
numbers that were collected during a
street survey. These were the results that
were concluded. We observed he price
range that certain women estimated they
would pay for our product. This information
is comparable to the income they earn.
As well as the location in which the survey
was conducted.
4
Amount of People
2
0
$85
$110
Price
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Website: www.DigitalSafari.org/ebizz2006/FeelGood
Competitive Analysis
Insolia
Insolia was established to commercialize and market the weight shift technology invented by Dr. Howard Dananberg, a
world-renowned podiatrist. Dr. Dananberg invented Insolia products in response to hundreds of women in his practice
suffering from injuries due to wearing high-heeled shoes. He recognized the cause was body misalignment and forward
weight shift. By using sophisticated computer pressure mapping technology, Dr. Dananberg identified the “optimal” foot
position and alignment for heels.
Insolia fundamentally changes the inside of high heel shoes by shifting weight off the ball of the foot back to the heel. This
technology makes it feel as though much lower heels are being won, which is a true comfort factor for many women. This
weight shift improves body alignment and balance. Also, it dramatically reduces leg and lower back fatigue while reducing
pressure on the ball of the foot. Their innovation is either built into high heels by shoe designers and manufacturers, or is
also available to insert inside any shoe, regardless of style.
Insolia is a major threat to Feel Good because their products provide essentially what Solamente promises. Solamente
has many features that Insolia does not possess, making our product of higher quality. Solamente is great for the
everyday businesswomen because it can be a flat walking shoe or a high heel dress shoe. The Therma-Set technology
provides flexibility to mold to one’s specific foot contour. Our product features a key chain device to adjust the height or
width level without the hassle of bending over. Feel Good plans to expand by creating different designs and styles of
Solamente.
Dr. Scholl’s
Dr. Scholl’s revolutionized the way Americans care for their feet. Dr. Scholl’s manufactures many different foot care
products to provide comfort and relieve foot, heel, and knee pain. They provide special shoes, padding, and products for
specific feet, heel, and knee problems. Dr. Scholl’s offers the same service asSolamente. Feel Good wants to bestow our
customers with comfort and protection and so does Dr. Scholl’s.
One product that Dr. Scholl’s manufactures is the Massaging Gel Insoles. These insoles provide women with relief from
tired, aching feet. The Massaging Gel Insoles are made with a soft gel and a dual wave design to cushion the balls of the
feet, and the dense heel waves absorb impact and shock. The insoles are inserted into a high heel shoe to prevent pain
while walking. In contrast, Solamente eliminates foot problems by having an adjustable function to change the height of
the shoe.
Feel Good supplies a comfortable high heel, which is what most women dream of. Consumers will buy our product
because they’re looking for a convenient and affordable product. Solamente has a heel that can adjust to different
heights as well as widths, which will prevent prolonged periods of having the foot arched in a painful position. The shoe
can become flat when one needs to walk long distances, but is convenient when one needs a heel for work or special
occasions. Our product comes at an affordable price that will attract many women. It’s the perfect product for women on
the go.
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Web site: www.DigitalSafari.org/ebizz2006/FeelGood
Comfort Channel
Comfort Channel is a division of Zearth.com. Comfort Channel sells a variety of massage tables and supplies, fitness
equipment, outdoor patio furniture, back care, pillows and bedding, and other comfort goods. The reason it creates
competition for Feel Good is its foot massager products.
The La-Vi Pro Portable Electric Professional Foot Massager is designed to pamper one’s feet. A benefit of this massager
is it helps reduce stress and improve circulation. Some of the special features include: a manual massage, three sets of
rollers to stimulate the soles of your feet, and eight adjustable speeds for both rolling and kneading massage. The small
roller wheels stimulate acupressure points in the feet. The La-Vi Pro Portable Electric Professional Foot Massager helps
to relieve tension and stress as well as promote personal whole wellness.
The La-Vi Pro Portable Electric Professional Foot Massager offers a similar element to our product, Solamente. The
massager will relax the feet and treat any foot pains. Solamente is a shoe that provides comfort for the feet by preventing
foot pain. Solamente is a shoe designed for businesswomen that need to walk for lengths at a time. With this shoe, the
pain of the toes will no longer exist. Solamente is a convenient product to possess, as well as a money saving device
since it can be worn with almost any outfit. With this product, foot pain will no longer be a problem and foot injuries will be
reduced, thus eliminating the need for the La-Vi Pro Portable Electric Professional Foot Massager.
Companies/
Features
Feel Good Insolia Lucky Luo Sexy Shoes Stiletto Dr. Scholl’s
Flexibility
H
M
L
L
L
M
Comfort
H
H
M
L
L
M
Price
$95
$69.95
$ 129
$49.95
$150
$39.95
Style
M
M
L
H
H
L
Variety
M
M
M
L
H
L
Durability
H
H
M
L
L
M
Arch support
H
M
M
L
L
M
Stability
Tempur Tech.
Legend:
H=High Level
M=Medium Level
L=Low Level
Y=Yes Included
N=Not Included
H
Y
H
N
L
N
L
N
L
N
M
N
In the following chart, different high heel companies are compared to determine the best overall level of their product, by
analyzing specific criteria. It shows that Feel Good meets the
highest demands that women are seeking for within a heel.
SWOT Analysis
Strengths
We as a company believe our customer service is of the highest quality. We currently have dedicated
staff, and this allows more employee/consumer interaction. We are quick to absorb feedback from
customers in order to meet their needs and alter our product to their convenience. Feel Good
provides a much needed product within the heel market, as well as excellent service.
Weaknesses
Feel Good is a small, unknown, start-up company with no strong reputation within the market. We
have a small group of employees, which leaves us susceptible if a member is sick or leaves to pursue
other endeavors. Most importantly, our financial state is unstable in our early stages. Without proper
funding, we cannot start up our company; therefore we need investors to help us in beginning. Our
product has the possibility of failing within the market due to consumer tastes as well as the latest
trends.
Opportunities
Our company plans to develop licensing deals with shoe companies such as Louis Vuitton and Steve
Madden. We plan to create new styles of our product, which will hopefully reach a different group
of women. This will in turn expand our business, and we will have new locations to sell. We hope to
continue to expand worldwide and gradually increase production.
Threats
As a new company, Feel Good is faced with the possibility that a larger known company will steal
or copy our technology. Another worry we have is the change in shoe trend, which might affect our
success within the market.
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Website: www.DigitalSafari.org/ebizz2006/FeelGood
Marketing Plan
Product
Solamente is a remarkable innovation created especially with businesswomen in mind. This product creates comfort
for women’s feet during long hours at work as well as saves time for the busy on the go type of person. Solamente is a
shoe designed with an adjustable heel function. It can change to different height and width levels to alleviate foot pains
throughout the day. With our technology, foot injuries will dramatically be reduced.
Solamente includes special features:
- An adjustable heel (four different height levels and width sizes)
- Cushioned insoles
- Arch support
- New Therma-Set Technology-Heat material allows shoe to mold to one’s specific feet design
- Concealed retractor button
- Flexible leather exterior (all weather protective)
- Remote control key chain device
This is one product you’ve been waiting for—Solamente—The one for you.
Solamente includes our Lifetime Guarantee Warranty. If the heel breaks, damaged, doesn’t work properly or if you are
unsatisfied with our product, you may receive your full money back. Our policy promises the heel may be fixed at no
additional cost. We provide 24 hour Customer Service at 1-800-FEEL-GOOD to assure the customer is satisfies with their
purchase.
Pricing
The production costs for Solamente for our basic style is $22 per unit. Our wholesale price for retailers would be $95 per
unit. We want to promote to individuals on-line as well. The price sold on our website for a single pair would be $225 plus
shipping and handling fees. If two units are bought, $25 is taken off the original cost, which totals $425 for two units. Our
MSRP value is $225.
In certain cases, we’ll have discounted prices, around 25% off the original price when a style of shoe isn’t popular with our
consumers. Also, we offer monthly payments for those who can’t afford to pay all at once.
Another option that we have is a 30-day free trial for those who are skeptic of our product and want to try it before actual
purchase.
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Website: www.DigitalSafari.org/ebizz2006/FeelGood
Placement
Feel Good plans to distribute Solamente in common places where women search for the “right” pair of shoes. Our main
location will be department stores such as Bloomingdales, Nordstrom, and Macy’s. We plan to keep a large stock of
our products in order for it to be readily available to the consumer. We want to have at least three of each size at every
location. Once the retail store is low on supplies, we can quickly deliver more. Within two days, a new shipment can arrive.
Another placement we will use is our website. This can be purchased directly by the individual.
Our emphasis is on customer satisfaction, and for any reason our consumer does not like our product, their money can be
returned in full. If the consumer urgently needs Solamente, we have made available our over night shipping at extra cost.
Promotion
Our target customers are mainly businesswomen as well as women in general. The best way to reach our consumer
would be through business pathways; this would include radio stations, magazines and newspaper. For radio stations
we’d most likely advertise in the morning, as business folks drive to work or are stuck in traffic. For magazines, we
specifically want to get women’s business. Placing ads in magazines will attract the attention of many women and in
turn create a great amount of business for the company. Newspaper would be a good means to advertise because
businesswomen read the paper almost daily to receive up-dated information. In order to expand to reach all types of
women, we want to advertise on television as well.
We will market on channels such as Oxygen or Lifetime. The optimal time for advertising will be in the evening, after most
women are off from work. These tactics will prove effective in reaching our target audience and help our company grow.
Financial Plan
Solamente is the perfect product for businesswomen who are constantly on the go. Feel Good has created Solamente to
relieve women of foot problems as well as to provide convenience for those who can’t spare the time to switch to another
pair of shoes throughout their busy schedules. In order for our product to enter the retail market, we are prepared to prove
that Solamente will be financially successful and worth the investment. Throughout the first 6 quarters Feel Good expects
a gradual increase in revenue and a decline in debt.
Operation Budget
$69,300.00
$920,998.00
$886,148.00
$999,398.00
$974,398.00
$989,398.00
Operating Costs/Quarter
1
2
3
4
5
6
$1,200,000.00
$999,398.00
$1,000,000.00
$920,998.00
$989,398.00
$974,398.00
$886,148.00
$800,000.00
$600,000.00
$400,000.00
$200,000.00
$69,300.00
$0.00
In the graph above, it displays Feel Good’s operating costs per quarter. As we progress from the first quarter to the
second, our costs increased from about $69,000 to $920,000. From the second quarter to the sixth, costs for our company
are relatively stable.
Feel Good ✿ A Digital Safari EBizz Company
2450 Grant Street ✿ Concord, CA 94520
Phone: (888) 555-1234 ✿ Fax: (888) 555-5678 ✿ Website: www.DigitalSafari.org/ebizz2006/FeelGood
Staffing
For our first quarter, Feel Good will only consist of three members, the CEO, CFO, and Marketing Director. The salaries
per quarter have been set at $12,000 (CEO), $11,000 (CFO), and $10,000 (MD). In the second quarter, we will acquire
new staff members. We will need a finance manager ($9,000), Office Manager ($8,500), and a Sales Manager ($9,500).
Then, as we continue to grow, we will need more help to run our company smoothly. We will hire eight sales assistants
and an administrative assistant in the fourth quarter because we hope to expand our business throughout the nation,
and eventually around the world ($8,000 each). These employees are crucial to the progress of Feel Good since each
specialize in a vital area of the company.
Operations
For our company to run efficiently, we need the essential utilities such as phone and power as well as office supplies such
as computers, Internet, and communication equipment. As we employed more people through each quarter, the costs of
our utilities and supplies increased. Our travel expenses are essential because we have eight sales assistants that we
hope to have travel to promote Solamente during our first year. Our sales assistants will travel approximately 21 days per
month. We believe that our travel expenses will pay off when we start different licensing deals.
Research and Development
In the first quarter, the prototype of Solamente was made. We estimate that the costs totaled approximately $27,000.
The cost is necessary to develop the first fully functional model of Solamente, which will be used as a template for mass
production. We want to assure our product remains strong and unique; therefore, we have set aside $7,000 per quarter for
improvement and development of Solamente.
Marketing
Marketing costs are a vital part for sales of Solamente. Print media is our largest form of marketing. The magazines that
Feel Good intends to advertise within are Enterprising Women, Vanity Fair, and Vogue. For Enterprising Women, it costs
$4,270 per issue for an ad to run 10 times, but an additional $975 for full one page 4-color process. For Vanity Fair, a one
page 4 color ad will cost $102,225 per issue for it to run 12 times, which totals $306,675 per quarter. Finally, for Vogue,
the rates are a bit cheaper for the ads to run 12 times, $97,646 per issue for a one page 4 color ad. Through magazine
advertising, we strongly believe that are target audience will be reached and Solamente will be successful. Other means
of marketing that we plan to embark upon are billboards ($75,000 per quarter), Giveaway Promotions ($15,000 per
quarter), and radio ($20,000 per quarter).
These methods of marketing will be profitable for Solamente because they will hit our target market. With the belief that
our product will be an instant favorite among women, we can assure that the money spend towards advertising will have
immense benefits later on.
Cash Flow Anaylsis
Production
We have contracted with a factory in California to produce Solamente for $22 per unit. We will set the wholesale price at
$95 per unit. The suggested retail price for Solamente is $225, which is a reasonable cost for a high-tech and fashionable
pair of heels. We estimate to produce 10,000 units during the second quarter and increase that unit number by 5,000 each
progressing quarter.
$0.00
-$205,000.00
$675,000.00
$992,500.00
$1,312,000.00
$1,627,500.00
Projected Production
Revenue/Quarter
1
2
3
4
5
6
$2,000,000.00
$1,627,500.00
$1,500,000.00
$1,312,000.00
$1,000,000.00
$675,000.00
$992,500.00
$500,000.00
$0.00
$0.00
-$205,000.00
-$500,000.00
In the following graph, it shows Feel Good’s projected production revenue. Throughout the six quarters, there is an increase in the company’s profit. By the 5th quarter, it is predicted that we will make over $1 million dollars.
Sales
Our revenue will begin starting in the third quarter. We estimate 9000 units sold, leaving a 10% margin for any products
that are unusable as well as samples for our Giveaways as part of our marketing plan. This leaves us with revenue of
$675,000. With each quarter, we have an increased number of outputs, which gives us a increased value of our revenue.
By the sixth quarter, we expect production revenue of approximately, $1,627,500.
0
0
9,000
13,500
18,000
1
22,500
Projected Sales/Quarter
2
3
4
5
6
25,000
22,500
20,000
18,000
15,000
13,500
10,000
9,000
5,000
0
0
0
In this graph, the projected units sold per quarter are shown. As it shows, there is an increase in the numbers sold each
succeeding quarter.
Other Revenue
We have developed a licensing contract with Louis Vuitton. In the first quarter, they want to have a test run of 5,000 units,
and at this time they will apply their label to our adjustable heel. Thereafter, they have promised to take upon 10,000 units,
which will gross in $15,000 for our company per quarter. We will be actively pursuing similar licensing deals with Steve
Madden, Ralph Lauren, and Nine West.
Sources and Funds
The three founders of Feel Good know that this is a product that will be successful within the market. Therefore, the
starting funds have been out of pocket savings. With their belief that Solamente will become a million dollar idea, they
have put their savings together to get the company up and running. Even that was not enough and they took our a few
small loans as well as tapped into credit lines. Solamente is a product that they have given all their support financially in
high hopes that it will be a success within the market.
-$69,300.00
-$1,195,298.00
-$1,406,446.00
-$1,413,344.00
-$1,077,742.00
-$439,640.00
Break-Even Analysis
1
2
3
4
5
6
$0.00
-$69,300.00
-$200,000.00
-$400,000.00
-$439,640.00
-$600,000.00
-$800,000.00
-$1,000,000.00
-$1,077,742.00
-$1,200,000.00
-$1,195,298.00
-$1,400,000.00
-$1,406,446.00
-$1,413,344.00
-$1,600,000.00
In the graph above, Feel Good has presented its break-even analysis. We are in debt approximately $1.5 million until the
sixth quarter. We predict to hit the break-even point by the seventh quarter.
Request for Funding
In conclusion, Feel Good is requesting $1.5 million in funding to start and support an advertising campaign and to help
cover the costs of production throughout the first three quarters. By the sixth quarter, Feel Good plans to begin sales
overseas and expand the market of Solamente worldwide.
Operating Expenses
Operating Expenses
Quarter 1 Dec.’05
Quarter 2 March ‘06
Quarter 3 June ‘06
Quarter 4 Sept. ‘06
Quarter 5 Dec. ‘06
Quarter 6 March ‘07
• CEO
$12,000.00
$12,000.00
$12,000.00
$12,000.00
$12,000.00
$12,000.00
• CFO
$11,000.00
$11,000.00
$11,000.00
$11,000.00
$11,000.00
$11,000.00
• Marketing Dir.
$10,000.00
Staffing
Salaries
$10,000.00
$10,000.00
$10,000.00
$10,000.00
$10,000.00
• Finance Manager
$9,000.00
$9,000.00
$9,000.00
$9,000.00
$9,000.00
• Office Manager
$8,500.00
$8,500.00
$8,500.00
$8,500.00
$8,500.00
• Sales Manager
$9,500.00
$9,500.00
$9,500.00
$9,500.00
$9,500.00
$64,000.00
$64,000.00
$64,000.00
• Sales Asst. (8)
• Admin. Asst.
$8,000.00
$8,000.00
$8,000.00
$12,000.00
$12,000.00
$26,400.00
$26,400.00
$26,400.00
Office Rent ($1500/mo.)
$4,500.00
$4,500.00
$4,500.00
$4,500.00
$4,500.00
Warehouse Rent
($2500/mo.)
$7,500.00
$7,500.00
$7,500.00
$7,500.00
$7,500.00
Phone
$3,500.00
$600.00
$1,500.00
$1,500.00
$1,500.00
Power
$300.00
$300.00
$400.00
$400.00
$400.00
Internet
$600.00
$400.00
$500.00
$500.00
$500.00
Computers
$15,000.00
$5,000.00
$15,000.00
$5,000.00
$5,000.00
Furniture
$4,500.00
Supplies
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$2,000.00
Communication
Equipment
$3,000.00
$750.00
$1,500.00
$1,500.00
$1,500.00
Airfare
$15,000.00
$15,000.00
$15,000.00
$15,000.00
$15,000.00
Hotel
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
Per Diem
$35,000.00
$35,000.00
$35,000.00
$35,000.00
$35,000.00
Benefits (20% of salaries)
$6,600.00
Operations
Utilities
Office Expenses
Travel
Professional Services
$2,500.00
$2,500.00
$2,500.00
$2,500.00
$2,500.00
$2,500.00
Licenses and Fees
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
Insurance
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$7,000
$7,000
$7,000
$7,000
$7,000
•Enterprising Women
$13,785.00
$13,785.00
$13,785.00
$13,785.00
$13,785.00
•Vanity Fair
$306,675.00
$306,675.00
$306,675.00
$306,675.00
$306,675.00
•Vogue
$292,938.00
$292,938.00
$292,938.00
$292,938.00
$292,938.00
Billboards
$75,000.00
$75,000.00
$75,000.00
$75,000.00
$75,000.00
Giveaways
$15,000.00
Radio (740 KCBS)
$20,000.00
$20,000.00
$20,000.00
$20,000.00
$20,000.00
$920,998.00
$886,148.00
$999,398.00
$974,398.00
$989,398.00
Research & Development
Prototype Development
$27,000
Product Improvement and
Development
Marketing
Print Media
Total Expenses
$69,300.00
$15,000.00
$15,000.00
Cash Flow Projections
Cashflow Projections
Quarter 1 - Dec.’05
Quarter 2 - March
‘06
Quarter 3 - June ‘06
Quarter 4 - Sept.
‘06
Quarter 5 - Dec. ‘06
Quarter 6 - March
‘07
10000.00
15000.00
20000.00
25000.00
30000.00
$22
$22
$22
$22
$22
$220,000.00
$330,000.00
$440,000.00
$550,000.00
$660,000.00
Production
Production Units
Per Unit Cost
Manufacturing (per unit
cost X production units)
$0.00
Sales
Projected Units Sold
9000
13500
18000
22500
Wholesale Price
$95.00
$95.00
$95.00
$95.00
$95.00
Suggested Retail Price
$225.00
$225.00
$225.00
$225.00
$225.00
$0.00
$855,000.00
$1,282,500.00
$1,710,000.00
$2,137,500.00
$15,000.00
$150,000.00
$150,000.00
$150,000.00
$150,000.00
Revenue from Sales
$0.00
Other Revenue
Licensing with Louis
Vuitton
Production Revenue
$0.00
-$205,000.00
$675,000.00
$992,500.00
$1,310,000.00
$1,627,500.00
Net Income
-$69,300.00
-$1,125,998.00
-$211,148.00
-$6,898.00
$335,602.00
$638,102.00