Business Plan

2360 95th Street, Naperville, IL 60564

630-428-6000
Legacy.IL@veiinternational.org
@LegacyVEI

Table of Contents
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Executive Summary………………………………………………………………………………3
About the Business……………………………………………………………………………….4
Organization Chart....……………………………………………………………………………..5

Marketing Plan

Business Rationale………………………………………………………………………6
External Environment…………………………………………………………………...7
SWOT Analysis…………………………………………………………………………...8
Target Market…………………………………………………………………………....10
Product, Price, Place, Promotion, Positioning………………………………………....12
Business Risks…………………………………………………………………………..13

Accounting Plan

Break Even Analysis…………………………………………………………………….14

Profit & Loss Statement………………………………………………………………....15
Balance Sheet…………………………………………………………………………....16
Sales Projection Sheet…………………………………………………………………..17
Income Statement………………………………………………………………………18
Summary of Financial Health…………………………………………………………..19

Design Plan

Research & Development………………………………………………………………20

Web Plan Summary……………………………………………………………………..21
Website Description…… …………………………………………………………….....21

Appendix…………………………………………………….…………………………………..22

Executive Summary
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Founded in 2020, in Naperville, Illinois, Legacy strives to mitigate the problem of

stolen or lost valuables in this world. Theft is a serious problem; however, an even bigger
problem is the threat of losing items. Whether it is a wallet falling out of a pocket or the
misplacement of your phone, everyone loses their valuables. Legacy’s main product is
trackable stickers, that are very easy to use. With just a click, our consumers will be able to
see where all of their stickered valuables are at all times. This product will effectively
reduce the risk of lost or stolen items, and Legacy is very excited to be a leader in this
change.

Legacy’s primary target market includes somewhat affluent members of the late
teen to early twenties age range. We are targeting individuals with fast paced lifestyles, but
are still forgetful. These individuals, we feel, are at a greater risk for theft and losing items.
This target market would include people who tend to carry their valuables, such as, wallet,
phone, etc, with them at all times. Legacy wants its products sold in areas with lots of foot
traffic, as we believe that high traffic areas are the most prone to the loss of valuables. This
would include areas such as large cities. While the price might seem a tad high for such a
young age demographic, we are, also, targeting VEI firms and employees. This means
Legacy is targeting individuals with large amounts of disposable income and want to keep
their valuables safe.

Legacy currently has a starting cash balance of $575.38, as of October, 2020.

Currently, our bank account shows a balance of $127,586.03. This balance is largely due to
a very generous loan of $150,000, which we plan to have repaid by May, 2021.

By the end of May 2021, Legacy hopes to have helped consumers keep track of their
valuables and mitigate the risk of lost or stolen items. Everyone has a “legacy” to protect, so
let us help.

Sincerely,

Erin Lochtefeld, CEO

About the Business

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Overview:
Description: Here at Legacy, our goal is to counteract the common bad habits of
losing necessary items. It is very often that car keys, phones, shoes, jewelry, AirPods,
and more are misplaced. With our state of the art GPS tracker in the form of a
sticker, virtually any item can be found. Our product will come in many forms,
including phone cases and varying sized stickers and much more, all connected to a
digital app that will indicate your products whereabouts. Accidents will happen, but
with this product, consumers can rely on us to ensure that their belongings will
always find their way back to their rightful owner. With this product, customers will
always feel at ease knowing that the stress of losing their belongings is taken care of.

Industry: We will often interact with other VE firms in our industry, one example of
that is the online trade show that recently took place.

Legal Description: We will always strive for fairness and penalize offensive and
illegal behaviors. However, as laws and our environment change, we may revise and
modify some of our policies.

Location: Legacy is based out of Neuqua Valley High school in Naperville, Illinois.

Brief History: Legacy was founded in September of 2020. Legacy was founded to
get rid of the hassle of trying to find misplaced items.

Mission Statement:
We want to provide an innovative and discrete way to ensure the peace of mind of
our customers, helping them feel safer and more at ease knowing should an accident
happen, their Legacy products will return their belongings.

Organization Chart
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Business Rationale
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The frequent loss of items is a plague that can affect anyone and cause consequences
ranging from the mildest of annoyances (such as looking for a misplaced remote) to the
most dire of situations (such as feverishly hunting for a stolen purse). In order to sell an
effective solution for this problem, our product needs to be attractive to potential
customers- primarily educated people between the ages of 16-25. In order to be attractive
to consumers in this age bracket, our product must provide more value than it costs-
therefore, common solutions like a tracker won’t work. There must be a facet of our
product which competitors don’t provide- something that makes our product worth
buying.

For this reason, we believe that the best product to solve the issue of frequently
losing items, a solution which provides customers with more value than is justified by the
cost, is a small, adhesive GPS tracker which can be tracked down via a smartphone app.
This will allow the user to monitor the location of select devices while maintaining the
aesthetics of the aforementioned devices and doing so in a technologically efficient manner.

The GPS trackers will be sold for $500 per tracker. The production costs of the
product are relatively low, but the cost of continued operation is quite high per month.
Projected sales are approximately $25,000 per month, so in order to generate adequate
revenue, this was the retail price that was reached. This also aligns with the general
markup trends that are shown in the VEI marketplace.

External Environment
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External environmental factors on the sales of Legacy’s line of Adhesive GPS Trackers
1. The Economy
a. If the economy is doing well and national GDP is on the rise, American
citizens will have more purchasing power, which would allow them to afford
more goods and services. Since our product is a want and not a need, the
purchasing power of the average consumer would greatly affect our sales.
High employment levels, low interest rates, a slight inflation rate (to benefit
the vast majority of the consumer base in debt), and high government
spending will all increase the GDP and the purchasing power of the average
consumer, allowing them to afford our product, which will increase our sales.

2. Covid-19 Restrictions
a. As travel is heavily restricted due to the ongoing Covid-19 pandemic, people
are confined to their homes and are leaving them far less frequently than
they would be doing otherwise. The pandemic is causing a crash in the
economy out of the people's fear and as a result of everyone being at home,
and there is not a lot of faith in the market because it seems unstable and
people are hesitant to buy and invest. Restricted travel means less space for
people to lose their items in, meaning that our product, currently, won’t be in
high demand. The demand of our product will fluctuate with the severity of
travel restrictions along with the fear of going out.

3. Markets for Complementary Products

a. Our products would be most used on products like remotes, which are easy
to misplace, or handbags and purses. Therefore, the demand for our product
will increase or decrease according to the sales and markets for
complementary products, such as remotes, handbags, or purses.

SWOT Analysis
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Internal Strengths
At Legacy, our strengths can be seen in the product demand and the way our
products operate. With the flexibility and open mind set each one of our employees share,
we are constantly conjuring up new ideas. We take initiative and get our ideas and plans to
efficiently circulate around the company. With our desirable and useful products, we work
towards having a progressive system with outstanding organizational skills. Our hard
work and dedication is what makes our product standout from other companies. We are
different from our other competitors because our strength is from the device’s high tech
tracking equipment that makes it manageable to track from anywhere, while other
competitors have a bluetooth connection that makes the device only accessible to a certain
radius from you and will disconnect if it's too far. Our product is unique because of its
adhesive property, assuring that our product won't go anywhere without your item! This
makes our product one of a kind and ten times more reliable and durable than any other
company’s product.

Internal Weakness
Although Legacy is a new product line, weaknesses can arise from just about
anywhere. Having jump-started our product during a global pandemic, there are many
limitations forced onto the company's operation. Lack of face to face interactions has
definitely placed a strain on our efficiency and cooperation. Although there are several
disadvantages of a virtually produced company, Legacy’s Chief Officers assigned to each
department work diligently on each of our projects. We tend to spend weeks editing
documents and ensuring customer satisfaction which can often distract from other
deadlines.
As unique as Legacy’s product line is, our product does have several mutually
shared characteristics to outside companies. The lack of recognition we have, being a newly
founded company, puts us at a disadvantage amongst competitors. However, here at
Legacy, we work long and hard to ensure that our product line stands out amongst
competitors and are always looking for new aspects to implement into what Legacy entails.

External Opportunity
Ambition is a priority here at Legacy. We will take advantage of any external
opportunities that we see fits and will expand our company. Some favorable openings
we've had have been creating new merchandise and products, collaborating with sister
companies, and expanding our market globally. There are many ways for Legacy to grow as
a company, whether that be internal or not. We have many aspirations as a business and
are open to all ideas.

External Threats
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Aside from the unique qualities that Legacy’s products bring to the table, there are
several other sister companies with similar objectives. With software such as Find My
iPhone, Tile, and other GPS Tracking companies, Legacy is not the only company with a
desire to keep track of our customers' belongings. Because we are a relatively new firm, it
will prove to be challenging to create a good reputation while only maintaining such a small
portion of the market. Alternative external threats include the condition of the economy as
we progress with our advancements considering the possible fluctuation of our pricing,
and increases in price may discourage our customers from purchasing our products,
especially with the state of the economy right now.
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Target Markets
Primary Target Market:

The main age demographic we are targeting is the 16-25 age group, we are targeting
this product with both the male and female genders. Any amount of annual income is
favorable for our product, and basic knowledge of tech products is recommended because
people need to know how to be able to use a GPS app and to use its functions. Our tracker
will be marketed towards people that work or are in places where items are more likely to
get lost such as public spaces like schools and workplaces. This product can also be
marketed towards people with a fast paced lifestyle that travel a lot or go to many different
places in a day because they are more likely to lose an item when compared to someone
that is home for a majority of their time. We are aiming to sell our tracker towards people
who value items that they carry around on a daily basis. Our target market may also travel
a lot or may have a busy lifestyle. With so many things on someone's plate, they may most
certainly forget something important once in a while. Some of the behavioral targets that
we are marketing towards are people take these items with them everywhere they go.
Examples would be going out to eat, going to work, or doing other daily tasks outside of
their home. This target market will mostly contain people who are able to afford higher
priced items which they would prefer to keep track of such as iPhones and smart watches.

Secondary Target Market:

The secondary target market we are aiming towards will be between the ages of 55-
70. Our product will be targeted more to females than males because they suffer from
memory loss diseases when compared to their male counterparts as they outnumber them
2 to 1. The family size would range from one to three people showing independence is
heavily a factor in forgetfulness. We will apply our marketing in suburban areas where the
older target market lives and spends most of their time at. Florida and Texas are popular
areas where this target market lives in. Besides these states, the places that are going to be
advertised in are slow-paced towns and cities where the target population stays at. We are
focusing our product for people who forget many things as they suffer from mental
diseases affecting their memory. With a poor memory, these people constantly forget
where they placed their items. They don’t necessarily value every single item, but with
forgetful tendencies, they need the reminder to know where they placed their daily objects.
Our secondary market will possess extremely valuable objects, either in monetary value or
in sentimental value. While they won’t be forgetful, they can’t afford to rely on merely their
behavior to keep their items with them- they are too valuable to lose. These people will be
on the affluent side as they will possess extremely valuable objects which they simply can’t
afford to lose, which is why they would buy the tracker as an insurance to a potential slip in
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safeguarding the issue. While selecting this market, the customers would mainly be their
children or grandchildren, but the main consumers of the products would be females from
the age of 55-70. Due to the fact that the consumers wouldn’t seek out help, the customers
would see the products as a necessity for the elderly market.
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Product, Price, Placement, Promotion, Positioning

Product
Our product is a small bluetooth GPS sticker that you can put on any item that you
misplace often. This device will then be able to track down to the exact location of your
missing object. The reasoning behind why we chose to sell this product is because it takes
too much time and energy to try and find a misplaced item. With many things on one's
plate, the GPS sticker will make this process easier and more efficient.

Price
We are selling our product for 600$ for one GPS Tracker. This is due to our high tech
equipment that is placed into the small sticker. Also to ensure that the sticker won’t fall off
or easily taken off, we added a special adhesive sticky bottom of the sticker.

Placement
We project that 60% of sales will be from trade shows. Due to COVID-19, web based
percentages will account for more than 90% of our sales, and we estimate that 10% or less
of sales will come from in person sales but we will reevaluate this number once the end of
the pandemic is in sight.

Promotion
Customers know that buying a bundle pack of 3 stickers or 5 stickers will help them
save money on the stickers because we will price the bundle stickers cheaper in order to
have customers buy multiple stickers and save money. In order for our customers to find
out about this, they will need to see this through some form of advertising. Since social
media is used by a large number of people today, this will be the best way to spread the
word about our promotional offer.

Positioning
This tracker can be used in multiple ways that are convenient to the customer. Our
company wants to let the customer know that our products are well fit for everyday life.
Our image appeals to the market as a whole as it is important that the customer knows
where we are when it comes to our product and our best interests.
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Business Risks
Competition
There is always going to be competition in the business world, so the only way to
deal with this risk is to make our product more efficient and refined. Making our product
have a plethora of options in terms of style and color gives us an advantage over the
competing companies. By not only having a different physical appearance, our product will
also have differences in uses and applicabilities which will attract more customers and a
separate target market.

Financial Risks
As a company, we need to keep track of our financial stability by keeping track of all
of the company's expenses and earnings and base our company on the results that we see
in order to not be financially unstable. We can deal with financial risks by keeping track of
all of the funds that the company is spending and earning and see if there are any possible
trends or changes in the economy to predict if something negative might happen.

Environmental Risks
By implementing environmentally friendly packaging that is made from 100%
recycled materials and that are 100% recyclable, we can help limit the amount of fossil
fuels used for our packaging and overall reduce our carbon footprint. With the reuse of
these materials, it prevents pollution and helps sustain the environment for future
generations to come. As climate change is beginning to affect many habitats, using recycled
materials significantly reduces the amount of greenhouse gases released into the
atmosphere that contributes to global warming.
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Break Even Analysis:

Variable
Units Sold Revenue Costs Fixed Costs Total Costs Net Income
0 $0.00 $0.00 $48,813.33 $48,813.33 -$48,813.33
100 $50,000.00 $1,269.00 $48,813.33 $50,082.33 -$82.33
200 $100,000.00 $2,538.00 $48,813.33 $51,351.33 $48,648.67
300 $150,000.00 $3,807.00 $48,813.33 $52,620.33 $97,379.67
400 $200,000.00 $5,076.00 $48,813.33 $53,889.33 $146,110.67
500 $250,000.00 $6,345.00 $48,813.33 $55,158.33 $194,841.67
600 $300,000.00 $7,614.00 $48,813.33 $56,427.33 $243,572.67
700 $350,000.00 $8,883.00 $48,813.33 $57,696.33 $292,303.67
800 $400,000.00 $10,152.00 $48,813.33 $58,965.33 $341,034.67
900 $450,000.00 $11,421.00 $48,813.33 $60,234.33 $389,765.67
1000 $500,000.00 $12,690.00 $48,813.33 $61,503.33 $438,496.67
1100 $550,000.00 $13,959.00 $48,813.33 $62,772.33 $487,227.67
1200 $600,000.00 $15,228.00 $48,813.33 $64,041.33 $535,958.67

Break Even Analysis Legacy 2020-2021:

Costs / (Sales Price per Unit - Variable Cost per Unit)

Fixed Cost Per Month: $5433.33

Monthly Costs: $43,380.00
Sales Price per Unit: $500.00
Variable Cost Per Unit:_________________________________$12.69
Break Even Units: 100.17

Legacy will need to sell 101 units to break even.

Profit and Loss Statement

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Balance Sheet
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Sales Projection Sheet

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Income Statement
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Summary of Financial Health

Legacy is a S type corporation that sells GPS trackers. Using projected sales reported
from the marketing department of approximately 300 units sold per month, Legacy will
turn a profit this first active quarter. By the end of this year Legacy should make $450,000,
but after subtracting the price of purchasing more inventory the gross revenue is actually
$432,000. As a result of the current national circumstance, Legacy’s budget is extremely
“bare-bones” so expenses are extremely minimal. After subtracting the cost of operations,
other expenses, and buying more inventory, Legacy is predicted to make $263,105. This is a
very good place to be, and leaves a lot of room for mistakes and unpredicted threats to
business. Projected sales can potentially be inaccurate considering all sales are online even
for trade shows, so predicted revenue can be significantly less. However, after the first
trade show Legacy was able to exceed necessary sales to break even, so using that as a
benchmark for future growth Legacy should still be making a large profit every month. In
addition there are new products slowly being introduced which will introduce even more
revenue. If Legacy continues on the path they are on, they will remain a very financially
stable and profitable company.
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Research and Development

In an increasingly statistical and data-reliant business climate, we recognize the
increasing importance of gathering relevant analytics to gain a stronger understanding of
our target market and what key demographics we need to segment. A preliminary survey
taken by high school students indicated that the problem our company is seeking to solve is
greatly affecting them. 75 % of the respondents marked that they had lost something of
great value that was not easily replaceable, and 83.9% said that a tracking sticker would be
better to help mitigate the issue than other services like Find My iPhone ™, Life 360™, or
Tile™. These initial data points show our firm who relates most to the issue that we are
trying to correct, and how we can stand out compared to our competitors.

Going forward, Legacy plans to turn its research focus towards identifying
consumers who show interest in our product, and how we can continue to innovate and
remain competitive. The main way that we will keep our target markets current and
accurate is through the use of analytics on Instagram. These insights can provide our firm
with critical details to help our marketing team make informed decisions regarding content
platforms, types of content, as well as track growth stemming from our social media
outlets. Some of these statistics include:
1. Accounts reached/followers
2. Content interactions
3. Follower analytics including age, gender, and location
4. Highest performing content
5. Website traffic as a direct result of the app
6. Profile growth over time
7. Impressions

We believe that by examining trends in our social media content and observing
changes in the strategies of our competitors, Legacy is poised to be able to make creative
and excellent decisions to maximize our online presence. During the pandemic and with the
absence of in-person trade shows, the importance of social media marketing will increase
exponentially. By relying on our preliminary data as well as performance trends from our
main social media outlet, Instagram, we will be able to project our brand more effectively in
order to maximize sales and brand recognition.
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Website Description & Web Plan Summary

Once you open the website it takes you to the home page with our company logo at
the top of the site as well as a landscape photo of a city with pin points on it which
represents our products tracking abilities. On the homepage of the website we have
information about our products and the overall products we sell as well as benefits to the
products as a whole. It also includes at the top of the site links to all of our social media
accounts as well as a link to our “Product Store”. Once you click the product store it takes
you to a page that has all of the products listed and able to buy including the prices
involved with each, and a small description for each product.

Using Squarespace we will provide a user friendly website divided into multiple
categories such as a product page which includes merchandising and products to give our
customers an easy purchasing experience, a contact page in case there are questions that
can be answered by our support, and an about us page in order to provide insight into
Legacy, our chief’s and company values. We plan to use Squarespace’s integrated analytical
features to view where our web traffic is coming from and work with the marketing team
to increase website traffic and overall online exposure by specifically targeting
demographic groups that we would like to improve sales in to allow the company to be
more profitable.
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Appendix

Loan Amortization Table

Legacy Loan
Repayment
Schedule

Date Payment Principal Interest Balance

November 22000 22000 0 128000
December 22000 22000 0 106000
January 22000 22000 0 84000
February 22000 22000 0 62000
March 22000 22000 0 40000
April 22000 22000 0 18000
May 18000 18000 0 0

Bank Balance (As of 1/18/2021)

$192,231.82
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Investment Letter