Po·Go

Eyewear

Business Plan

William Kinzel
501 Washington St. #27
Walla Walla, WA 99362
(509) 301-8907
bkinzel@lycos.com
 Executive Summary
The time is excellent to introduce non-prescription eyewear as a fashion
accessory. In a recent study 46% of Americans said that they would wear
glasses as an accessory. No longer are glasses associated with being “geeky.”
Consumers want to look more intelligent for an interview, more playful for an
outing, or more glamorous for an evening on the town. All of these looks can
easily and affordably be accomplished with Pogo’s non-prescription eyewear.

There is no easier way to alter your appearance than to put on a pair of glasses.
Americans are aware of this fact, but up until now there have been few non-
prescription choices. The only option is to visit your local optometrist and sort
through hundreds of frames. Then you have to battle the pushy salespeople and
pay prices often exceeding $200. Finally, you must wait for your order to be
processed which can take up to a month.

At Pogo we want to change all of that. We want to allow consumers to make an

easy stop at our website where they can view free video tutorials regarding
fashion and how to select frame designs and colors based on their own physical
features. Our glasses will be sold affordable at less than $30 and will include a
stylish carrying case and will be shipped the same day. Our selection will be
limited to 20 to 40 of the most current and fashionable styles which will ease the
decision making process for consumers.

Our glasses represent a great gift giving opportunity, and are priced to allow
consumers to own 2, 3, or 4 pairs.

All of this will be supported by 1-800 customer service and a 30 day money back
guarantee. Pogo’s goal is to be the frontrunner in bringing fashionable and
affordable non-prescription eyewear to America.

Mission: To provide stylish eyewear at an affordable price to consumers who

want to augment their appearance with glasses but do not need prescription
lenses. We can and will make well considered sacrifices on quality, and service
to make sure that our product is priced as reasonably as possible.

Keys to Success:
ƒ Current, functional, and attractive ecommerce website

ƒ Pervasive and memorable branding program

ƒ Targeting prices between $10 and $30

ƒ Building a strong association with fashion through public relations,

participation in events, viral marketing, and press coverage.

ƒ Promptly shipping orders and processing returned products

Financial Highlights

We expect to reach over $380,000 in sales in the first year and around 1.7 million
in the second year. Operations should be profitable within the first few months of
start up. In year two we forecast operating income to exceed $430,000.

Year 1 Financial Forecast

$90,000

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000
Operating Income
$20,000 Gross Revenue

$10,000

$0

($10,000)
January

February

March

April

May

June

July

August

September

October

November

December

In order to fund the start up Pogo Eyewear needs a total capital investment of
$164,000. We are seeking an equity investment from outside investors. In
exchange they will receive a 65% ownership stake in the corporation. Investors
should be able to liquidate their investments within a 2 to 3 year time horizon with
a share repurchase program or outright sale of the business. Projected return on
investment ranges from 52% under the share repurchase program to 150% in an
outright sale situation.
 I. General Business Description

Pogo Eyewear will be in the business of retailing non-prescription optical grade

eyewear to consumers throughout the world. Our mission is to provide quality
stylish eyewear to those consumers who desire to augment their appearance
with glasses but do not need prescription lenses. Initially we will market our
products exclusively online through our website. In the future we plan to expand
distribution to independent accessory shops and select national chains. Our
products are designed to be a fashion accessory rather than a medical device
and will be priced to retail between $10 and $30.

According to a recent study conducted by Essilor of America1 46% of Americans

would consider wearing eyeglasses as an accessory even if they didn’t need
them. Our goal is to provide this market with an easily accessible and affordable
product. Because this market is relatively undeveloped there is little evidence to
support initial annual sales volumes. So far there has been no concerted attempt
that we know of to market glasses solely as an accessory.

At Pogo our business philosophy will be to sell fun. We want to breakaway our
product from the traditional classification as a medical device and brand it in our
customer’s minds as a hip and fashionable accessory. Our products will be
designed and priced so that customers can affordably own a variety of styles and
colors of frames to compliment their wardrobe.

Our target market will initially be limited to women, but may be extended to
include men in the future as demand warrants. Customers will include individuals
in any age bracket who desire to augment their appearance with glasses. Our
primary target market will be limited though to women ages 16 to 40.

In the long term we see this as a growth industry. Pogo Eyewear hopes to be the
first major brand to market. Our goal is to define the market for fashion optical
eyewear much like Kleenex and tissue, Fossil and fashion watches, as well as
Crocs and clogs footwear.

1
(http://www.beauty.about.com/cs/maybeauty/a/revealglasses.htm)
 II. Products

Our frame offerings will fall under three different categories: Intelligence, Fun,
and Glamour. Each category will contain five to ten different frame designs and
each frame will be offered in a variety of different colors and finishes. Frames will
be of high quality that consumers would expect to receive from a traditional
optometrist. We will offer a variety of both metal and acetate (plastic) frames
which will all come preinstalled with clear polycarbonate lenses.

In addition to the three frame categories listed above we will offer a

“customizable” frame package that will include a basic plastic frame with a
package of adornments such as jewels and crystals. Consumers will have the
ability to create their own customized designs by affixing the jewels to the basic
frame. This will make a great gift idea.

The average optometrist’s office carries over 1,500 frames. Many of these
countless frames are very similar in style and features. At Pogo we will focus on
less than 50 of the most popular designs in order to make the frame selection
process more fun and less stressful.

Each frame will carry an unconditional money back guarantee and will be offered
in small, medium, and large sizes. If customers are unsatisfied with their glasses
they will have the option returning them for a full refund or exchange.

Since our products are optical grade our customers will be able to have them
adjusted at their local optometrist if needed.

Consumers will have the opportunity to select various style and color
combinations from our website and place orders in real time. Due to compact
packaging, shipping charges will be kept to a minimum. Glasses will ship with a
very stylish case that will be embossed with various logos and designs.
 III. Marketing Plan
Product
Men and women alike are constantly looking for ways to make themselves look
and feel better. Whether it’s working out at the gym, buying a new dress, or
having a makeover there is no doubt that our generation places a high value on
appearance. Whether or not you wear glasses plays a large role in ones
appearance. In the past glasses were often associated with being overly brainy.
Now though glasses have evolved into a fashion statement for those who need
them. What about those who don’t? Based on our research there is a growing
interest in using non-prescription glasses to alter your appearance. After all, what
faster and easier way is there to alter your appearance than to put on a pair of
glasses?

In a recent study conducted by Essilor of America it was revealed that 46% of

Americans representing over 130 million people would wear non-prescription
eyeglasses as an accessory. Despite the clear demand for this product there are
few if any (see bleudame.com) companies who are focusing on this market.
These consumers could easily visit their local optometrist and purchase a pair of
frames with non-prescription lenses, but choose not to for a variety of reasons.
This is because the optometrists are not selling the right product, in the right
place, with proper promotion and sales techniques.

At Pogo Eyewear our plan is to make non-prescription glasses available to

everyone with catchy advertising, hip styles, and ease of purchasing. Pogo will
breakaway from the established norms of the current eyewear market and
establish something that is altogether new, fresh, and appealing to consumers.
Below are some interesting statistics regarding eyewear.

ƒ 40% of respondents view people who wear glasses as smart

ƒ 25% of respondents stated that wearing out of date clothing would ruin
your appearance.

ƒ 22% of respondents stated that wearing out of date glasses would ruin
your appearance

ƒ Consumers are not afraid of purchasing glasses online. Within one year of
startup eyeglass.com was receiving over 6,000 hits per day.

ƒ Research conducted by eyeglass.com has revealed that the typical

eyeglass wearer is dissatisfied with the current system of buying glasses.2

2
(http://eyeglass.com/noname26.html)
Customers
There is a demand throughout many demographic groups for non-prescription
eyewear that is worn for fashion at a reasonable price. Interest is highest among
a few select groups who place high importance on fashion and appearance.
Because of this fact we feel it is prudent to begin by targeting these consumers
before expanding our reach to less receptive demographics.

To begin with we will target females aged 16 to 40. Because our product will be
sold through pogoeyes.com it will be available to anyone in the world, but we will
be specifically targeting US residents. According to the Census Bureau there are
approximately 51 million females aged 15 to 40 in the United States.

We will not segregate our customers based on income or education levels

because people rich and poor, educated or not have a desire to “look good.” In
addition we have adopted a pricing strategy that makes our product affordable to
all but the most impoverished families which should make economic status
generally a non-issue. For the same reasons we will not segment our market
based on marital status.

In the future we may expand our target demographic to include men as well as
older women.

It should be noted that the purchasers of our product will not always be the end
consumer. One of our strategies will be to position Pogo Eyewear as a very
“giftable” product. As such we will develop marketing strategies to target gift
givers such as children, coworkers, and spouses.

Competition
At this time we have been unable to identify any direct competition to our planned
business model although we will compete with other companies indirectly. We
will compete indirectly with prescription frame manufacturers/wholesalers who
distribute their products through optometrists and national chains. Examples of
these indirect competitors include Safilo and Marchon. In reality few if any
consumers will make a direct comparison between our products. It would be like
comparing a Timex to a Rolex. Sure both products tell time, but they are so
differentiated in terms of price, distribution, and brand imaging that few
consumers would seriously consider both a Timex and Rolex as comparable
products. Below is a table that includes a competitive analysis of Pogo Eyewear.

Niche
Pogo Eyewear is unique in that we do not seek to occupy a small niche within a
larger market. Rather we seek to define the entire market for non-prescription
eyewear. We will offer products delivered with a brand image that is so pervasive
that Pogo and non-prescription eyewear will become synonymous.
Promotional Strategy
The single most important aspect of Pogo Eyewear will be our promotional
strategy. Our strategy is founded based on “Breakaway” positioning. The idea is
to breakaway non-prescription glasses from their current association with
medical devices and to reclassify them as a fashion accessory. The essence of
this strategy is based on building a very strong brand that consumers will
associate exclusively with the non-prescription eyewear industry.

The Harvard Business Review (HBR) cites many notable success stories of
Breakaway Positioning3 including: The Simpsons, Swatch, and EZ-Squirt
Ketchup. Here are three outstanding examples of a business taking a product
that was stagnant (cartoons, watches, and ketchup) and returning in to a period
of growth by redefining it in consumers minds (cartoons for adults, watches for
fun, craft food). According to HBR, after implementing a Breakaway strategy
consumers no longer “see the breakaway product as simply an alternative to
others in its category, consumers will perceive it as altogether different.”

In order to accomplish the breakaway strategy you must alter the marketing mix
as a way to distance the product from its old class and associate it with a new
one in consumer’s minds. There are many tools that can be used in order to
execute a Breakaway strategy. Our plan will be focused around three main
areas: brand building and protection, viral marketing, and providing value to our
customers by offering tips, tutorials, and other fashion and beauty information.

Brand Building and Protection

One of our first tasks is to develop the logo and packaging that will be associated
with Pogo Eyewear products, materials, and web content. Once we have the
initial branding package completed we will develop awareness through selective
online advertising. We will protect our images, and trademarks, by filing them
with the appropriate legal authorities. Our unique brand will establish Pogo
eyewear as distinct in consumer’s minds from traditional eyewear.

Viral Marketing
Pogo will utilize online networks, blogs, and discussion groups in order to
develop brand awareness. In addition we will offer free product samples to
opinion leaders (actors, the media, etc.) who will present a positive image of our
products in the community. We will seek to place our product in features or
segments in mass media such as news shows and magazine articles. In addition,
we will develop promotional videos which will draw attention to our brand through
channels such as YouTube and our website pogoeyes.com

Customer Value
Once potential customers reach our website we don’t just want to sell them a
product. Instead we want to offer our customers tips, advice, and information that
3
Moon, Youngme “Break Free from the Product Lifecycle.” Harvard Business Review May 2005: 87-94
will be of value to them in regards to fashion and beauty in general. Our
information will emphasize how adding glasses to your wardrobe can
dramatically improve your appearance. Glasses can add sophistication,
playfulness, or glamour to your look.

Our website will also have specific video tutorials that cover topics related to
eyeglass selection. We will have tutorials to cover topics such as face shapes,
eyeglass materials, and eyeglass colors. Consumers will have the opportunity to
learn how our various products may suit their specific features.

Pricing
Part of our Breakaway strategy is to differentiate the Pogo product based on
price. Traditionally if you wanted to purchase a set of non-prescription
eyeglasses you would visit an optometrist and place an order for prescription
frames with non-prescription lenses. These frames are generally priced from
$100 to $300 per pair with notion that most customers will be billing their
insurance. This pricing strategy is not conducive to owning eyeglasses as a
fashion accessory for the majority of people. Few people can afford to spend
hundreds or thousands of dollars on eyeglasses as a fashion accessory.

Our plan is to make non-prescription glasses available to middle and lower

income individuals. Our products will be priced to retail between $10 and $30 a
pair which will include a high quality case. At this price we hope to allow our
customers to add 2, 3, or 4 pairs of Pogos to their wardrobes.

Distribution Channels
Another way for Pogo Eyewear to differentiate its products is with distribution.
Traditionally non-prescription glasses have been distributed alongside
prescription glasses in optometrist’s offices and national eyewear chains. This
distribution method is outdated and inefficient. In this setting consumers often
feel pressured by commissioned salespeople. In addition consumers don’t have
a chance to fully consider how a specific frame or color may fit into their
wardrobe leaving them with a pair of expensive frames that they later regret
purchasing.

Pogo’s products will be distributed entirely through our website. Our website will
provide a rich shopping environment offering customers tips and advice on how
to properly select glasses for fashion. Consumers can make their purchasing
decisions based on what they like, not what a salesperson pushes to them. Our
customers are invited to take as long as necessary to make their buying
decisions and will be able to create and save shopping carts and wish lists so
that they can return later to shop and complete their purchases.

Once the Pogo brand and customer base are developed (1 – 2 years) we plan to
expand distribution to independently owned and regional shops and boutiques. In
the future we also may explore distribution with national chains that exemplify our
dedication to affordable fashion.

Sales Forecast

Low Plan High

Quantity $$$ Quantity $$$ Quantity $$$
1 100 $2,049 200 $4,098 350 $7,172
2 500 $10,245 1000 $20,490 1500 $30,735
3 550 $11,270 1100 $22,539 1650 $33,809
4 550 $11,270 1100 $22,539 1650 $33,809
5 650 $13,319 1300 $26,637 1950 $39,956
6 750 $15,368 1500 $30,735 2250 $46,103
7 1125 $23,051 1500 $30,735 2250 $46,103
8 1125 $23,051 1500 $30,735 2250 $46,103
9 1125 $23,051 1500 $30,735 2250 $46,103
10 1125 $23,051 1500 $30,735 2250 $46,103
11 1875 $38,419 2500 $51,225 3750 $76,838
12 3000 $61,470 4000 $81,960 6000 $122,940
Year 1 12475 $255,613 18700 $383,163 28100 $575,769

1 3750 $76,838 5000 $102,450 7500 $153,675

2 3000 $61,470 4000 $81,960 6000 $122,940
3 3750 $76,838 5000 $102,450 7500 $153,675
4 3938 $80,679 5250 $107,573 7875 $161,359
5 4500 $92,205 6000 $122,940 9000 $184,410
6 5250 $107,573 7000 $143,430 10500 $215,145
7 6000 $122,940 8000 $163,920 12000 $245,880
8 6000 $122,940 8000 $163,920 12000 $245,880
9 6000 $122,940 8000 $163,920 12000 $245,880
10 6000 $122,940 8000 $163,920 12000 $245,880
11 6750 $138,308 9000 $184,410 13500 $276,615
12 7500 $153,675 10000 $204,900 15000 $307,350
Year 2 62437.5 $1,279,344 83250 $1,705,793 124875 $2,558,689

Please note that sales volumes could vary significantly from projections. These
numbers do not account for the potential to land a large national retail account
(such as Target).
 IV. Operations

The day to day operations of Pogo Eyewear will be eased through the use of
technology. We will receive daily updates on customer inquiries from the call
center. Upon receipt Pogo’s management can respond as needed. Our website
will handle the processing of customer transactions and we will receive placed
orders each morning for the prior day. Orders will be processed and shipped
immediately from our warehouse. Initially orders will be processed by William.
Once sales volume increases we will hire part time employees to process
outgoing orders and returns.

Other operational tasks involve marketing including making appearances at

events, public relations, trade shows, and distributing samples. These duties will
be executed by William.

Production
Our frames will be manufactured by third parties in other countries – primarily
China. Once we receive the finished frames we will send them out to our optician
to have plastic lenses installed as necessary. After this process is complete we
will package the products in our warehouse and prepare them for shipment.

Location
Our warehouse will be located in Walla Walla, WA. Because our business will be
conducted almost exclusively online warehouse location is not important. There
is an abundant supply of cheap space available locally.

Legal Environment
Pogo will include a disclaimer with each of its products that reminds consumers
that our product is not designed for children and is solely for fashion – not to
correct any vision problems. This should protect us from many legal issues.

We will not offer a warranty but rather a 30 day money back guarantee.
Consumers must pay return shipping on their returns. Of course we will always
have to deal with the implied warranties of merchantability and fitness for use but
we do not foresee significant legal issues arising as a result of consumers
purchasing our products.

We will not have customers visiting our warehouse, but deliverymen will visit so
we will carry a liability insurance policy as well as a policy to cover our inventory.
Our employees will be covered by state workers compensation insurance.

Once we have finalized our logo we will have it registered with the U.S. Patents
and Trademarks office in Washington D.C.

Otherwise there are few licensing requirements for our business other than
obtaining the general state business license which is very simple and costs only
$15. We will only be required to register with Washington State since we won’t
have legal “Nexus” in other states. Because products will be shipped from our
location in Washington primarily to locations out of state we expect minimal if any
state tax liability.

Personnel
Pogo’s personnel requirements will be minimal to begin with. We will outsource
call center functions which means that the only physical labor required will be to
receive incoming inventory shipments, prepare orders for shipment, and actually
shipping the orders. In addition we will need to process returns. Initially these
functions will be done by William. As demand increases part time help will be
hired at a rate of approximately $10 per hour with no benefits.

There is a large supply of available employees locally due to the fact that there
are three colleges in Walla Walla and other job opportunities are scarce. In
addition there are a significant number of seasonal employees in the agricultural
industry who are always seeking employment.

In the future we may bring the call center function in house which will require the
hiring of numerous employees and managers all of which can be procured
locally. In addition we will likely hire an operations manager to oversee
processing of orders and shipments once demand increases. This will free up the
owners to be able to focus full time on marketing, public relations, and other
promotional responsibilities. An operations manager can be hired locally for
approximately $15 per hour with no benefits.

Inventory
At Pogo Eyewear we will be selling a fashion product which means that trends
and tastes can easily render our inventory obsolete which is why we will keep
inventory to an absolute minimum. We will fastidiously monitor customer
response and demand for various designs and adjust future inventory decisions
accordingly.

Initial inventory levels are set at 3,750 units which is enough to cover the first four
months of projected sales. Initially we want to have some extra inventory on hand
in order to accommodate for any unexpected spikes in sales.

The management at Pogo believes that in the fashion industry inventory is a

liability rather than an asset. We must attempt to walk the fine line between being
out of stock and having obsolete inventory sitting on the shelves because of
ineffective ordering. In the beginning inventory turns will remain around 3 or 4
because sales will likely be volatile from month to month in the beginning. We will
target 10 to 12 inventory turns per year after operations get up and running.

Inventory lead times vary by model and supplier anywhere from one week to five
months.
We plan to promote Pogo Eyewear as a great gift. As a result we expect
inventory levels to increase during the holiday season from late October through
year end.

Suppliers
Initially our products will be sourced exclusively from two different suppliers:

Alpha Viana Inc.

10699 Hickson St. #23
El Monte, CA 91731

AA Optical Company
2101 Midway Rd. Suite 100
Carrollton, TX 75006

In the future we may establish relationships with alternate suppliers and/or

develop frame designs in house and source frames directly from manufacturers
overseas.

Credit Policies
Payments will be accepted using Paypal or credit/debit cards only.

V. Management and Organization

Pogo Eyewear will be managed and operated primarily by Bill Kinzel.
Mr. Kinzel has significant business as well as finance and accounting experience.
In the past he has held the position of controller at a manufacturing operation in
Yakima, WA with $60 million in annual sales and over 350 employees. Bill has
experience and knowledge with all aspects of business operations and
management including: accounting, payroll, tax reporting, purchasing, material
control, information technology, legal contracts, and human resources.

In addition he has experience as the founder of a tax service in Spokane, WA

and as a franchisee operating an Avis rental location in Spokane, WA.

Bill graduated Summa Cum Laude with a bachelor’s degree in finance.

Bill works a flexible schedule in the retail industry in Walla Walla. Initially he will
maintain his day job until Pogo’s business increases at which point Bill will
transition to part time in his current position and ultimately quit in order to operate
Pogo full time.
 VI. Start up Expenses and Capitalization

PoGo Eyewear
Estimated Start up Costs
Item $$$ Notes
Initial Inventory $75,000 3,750 units at average cost of $20
Web Design $10,000 Design of our ecommerce website
Packaging $7,500 3,750 units at average cost of $2
Rent $7,000 6 months rent on warehouse space
Marketing Services $5,000 Design of online advertisements, etc.
SEO Fees $5,000 Search Engine Optimization of our website
Video Production $5,000 Produce Youtube and Videos for website
Misc Legal Fees $5,000 State registration fees, etc.
Legal Fees $5,000 Writing consumer product warnings
Packaging Design $3,000 N/A
Show/Event Supplies $3,000 Displays, tables for events and shows
Equipment $2,000 Shelving for warehouse
Tooling -- Packaging $2,000 Tooling dies needed to make our packages
Logo Design $1,500 N/A
Insurance $1,200 Insurance -- 1 year
Call Center Set Up $1,000 Set up 1-800 number for customer service
Trademark Fees $1,000 N/A
Quickbooks $500 Software
Working Capital $10,000 2 Months Operating Expenses
Contingencies $13,970 To cover cost overruns, etc.
Total $163,670

The startup expenses will be funded by an investment from Bill as well as other
equity investors.

VII. Forecast Profit and Loss

See Appendix for forecasted profit and loss statements. Please note all
statements are on the cash basis.

VIII. Exit Strategy

Based on the forecasted profit and loss statement Pogo Eyewear will have built
up a cash position of approximately $311,000. At this point the corporation would
have the option of doing a share buyback with $250,000 of the cash which would
result in a 52% return on investment for outside investors.

Other options include waiting until the end of the third year to execute a
corporate share repurchase or selling the business entirely to a third party.
Assuming a 2.5 pricing multiple at the end of year 2 the business value would be
$700,000. Assuming a 65% equity interest outside investors would yield
approximately $410,000 on the transaction after fees which would result in a
150% return on investment.
IX. Appendix
 PoGo Eyewear
Year 1
1 2 3 4 5 6 7 8 9 10 11 12 Total
Gross Revenue $4,098 $20,490 $22,539 $22,539 $26,637 $30,735 $30,735 $30,735 $30,735 $30,735 $51,225 $81,960 $383,163
COGS $2,459 $12,294 $13,523 $13,523 $15,982 $18,441 $18,441 $18,441 $18,441 $18,441 $30,735 $49,176 $229,898
Gross Margin $1,639 $8,196 $9,016 $9,016 $10,655 $12,294 $12,294 $12,294 $12,294 $12,294 $20,490 $32,784 $153,265

SG&A
Part-time Labor $0 $0 $0 $0 $0 $600 $600 $600 $900 $900 $900 $1,600 $6,100
Operations Mgr. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,800 $2,800 $5,600
Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
Web Hosting $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400
SEO/Ad Design $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000
Samples $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000
Call Center $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $4,800
Web Advertising $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000
Misc. Advertising $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $3,600
Trans. Fees $102 $512 $563 $563 $666 $768 $768 $768 $768 $768 $1,281 $2,049 $9,579
Travel $0 $1,000 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $10,000
Total SG&A $6,202 $7,612 $6,663 $7,663 $7,766 $8,468 $8,468 $8,468 $8,768 $8,768 $12,081 $13,549 $104,479

Operating Income -$4,563 $584 $2,352 $1,352 $2,889 $3,826 $3,826 $3,826 $3,526 $3,526 $8,409 $19,235 $48,786

Provision for Taxes -$1,597 $204 $823 $473 $1,011 $1,339 $1,339 $1,339 $1,234 $1,234 $2,943 $6,732 $17,075

Net Income -$2,966 $379 $1,529 $879 $1,878 $2,487 $2,487 $2,487 $2,292 $2,292 $5,466 $12,503 $31,711
 PoGo Eyewear
Year 2
1 2 3 4 5 6 7 8 9 10 11 12 Total
Gross Revenue $102,450 $81,960 $102,450 $107,573 $122,940 $143,430 $163,920 $163,920 $163,920 $163,920 $184,410 $204,900 $1,705,793
COGS $61,470 $49,176 $61,470 $64,544 $73,764 $86,058 $98,352 $98,352 $98,352 $98,352 $110,646 $122,940 $1,023,476
Gross Margin $40,980 $32,784 $40,980 $43,029 $49,176 $57,372 $65,568 $65,568 $65,568 $65,568 $73,764 $81,960 $682,317

SG&A
Part-time Labor $2,500 $2,500 $2,500 $2,500 $3,500 $4,000 $4,000 $4,000 $4,000 $4,000 $4,500 $5,000 $43,000
Operations Mgr. $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $33,600
Officers Salary $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000
Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
Web Hosting $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400
SEO/Ad Design $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000
Samples $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000
Call Center $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000
Web Advertising $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000
Misc. Advertising $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $3,600
Eyewear Design $0 $1,000 $0 $1,000 $0 $1,000 $0 $1,000 $0 $1,000 $0 $0 $5,000
Trans. Fees $2,561 $2,049 $2,561 $2,689 $3,074 $3,586 $4,098 $4,098 $4,098 $4,098 $4,610 $5,123 $42,645
Travel $1,000 $1,000 $2,000 $1,000 $2,000 $1,000 $2,000 $1,000 $2,000 $1,000 $2,000 $1,000 $17,000
Total SG&A $18,061 $18,549 $19,061 $19,189 $20,574 $21,586 $22,098 $22,098 $22,098 $22,098 $23,110 $23,123 $251,645

Operating Income $22,919 $14,235 $21,919 $23,840 $28,603 $35,786 $43,470 $43,470 $43,470 $43,470 $50,654 $58,838 $430,672

Provision for Taxes $8,022 $4,982 $7,672 $8,344 $10,011 $12,525 $15,215 $15,215 $15,215 $15,215 $17,729 $20,593 $150,735

Net Income $14,897 $9,253 $14,247 $15,496 $18,592 $23,261 $28,256 $28,256 $28,256 $28,256 $32,925 $38,244 $279,937