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PRINTEMPSDU MONDE
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Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Printemps du Monde,LLC in this business plan is unique to this enterprise and is confidential; therefore, the readeragrees not to disclose any information contained herein or in verbal discussions without theexpress written permission of Printemps du Monde, LLC or its principals.
It is acknowledged by the reader that information to be furnished in this business plan is in allrespects confidential in nature, other than the information that is in the public domain, and thatany disclosure or use by the reader may cause serious harm or damage to Printemps du Monde,
LLC or its entities. Reader acknowledges this information as sensitive and agrees to handle allinformation contained in this document in a strictly confidential manner.
This Business Plan is not an offer, which can only be made by an approved Private PlacementMemorandum. Participatory interest will only be to Accredited Investors.
This Document includes forward looking statements. All statements, other than statements of historical fact within this Business Plan, including statements regarding Printemps du Monde,
LLC for its subsidiaries strategies, plans, objectives and expectations, are all forward lookingstatements. Although Printemps du Monde, LLC believes that the expectations reflected in suchforward looking statements are reasonable at this time, it can give no assurance that suchexpectations will prove to have been correct. Certain important factors that could cause actualresults to differ materially from expectations are set forth herein. Any subsequent written andoral forward looking statements attributable to Printemps du Monde, LLC or persons acting onits behalf are expressly qualified in this regard.
Upon request, this document is to be immediately returned to Printemps du Monde, LLC.
__________________________________ __________________________ Signature Date
Name
Company
Address
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Table of Contents
Executive Summary ................................................................................................................. 1
Introduction ................................................................................................................................ 1Business Highlights ...................................................................................................................... 2Business Model ........................................................................................................................... 3Services & Products ..................................................................................................................... 3Growth Strategy .......................................................................................................................... 4Financial Projections ................................................................................................................... 4
Capital Requirements .................................................................................................................. 5Business Summary ................................................................................................................... 6
Company Profile .......................................................................................................................... 6Historical Background ............................................................................................................. 6 Legal Structure & Ownership .................................................................................................. 7 Location & Facilities ................................................................................................................ 7 Intellectual Property ............................................................................................................... 7
Mission Statement .................................................................................................................. 8 Core Corporate Objectives .......................................................................................................... 8
Business Objectives ................................................................................................................. 8 Financial Objectives ................................................................................................................ 9 Marketing Objectives .............................................................................................................. 9
Critical Success Factors ............................................................................................................. 10
Business Concept and Need ................................................................................................... 11
Market Need ............................................................................................................................. 11Products and Services ............................................................................................................... 11Sourcing ..................................................................................................................................... 13Processing ................................................................................................................................. 14
The Market ............................................................................................................................ 16
Industry Overview ..................................................................................................................... 16Market Trends ........................................................................................................................... 19
Target Market ........................................................................................................................... 21Market Size................................................................................................................................ 22Competitive Environment ......................................................................................................... 22Competitive Advantage ............................................................................................................. 26
Growth Strategy .................................................................................................................... 28
Strategic Initiatives 28
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Management ............................................................................................................................. 32Management Profiles ........................................................................................................... 32
Personnel Plan........................................................................................................................... 33Management Support ............................................................................................................... 34 Advisory Team ...................................................................................................................... 34 Representation ...................................................................................................................... 35
Risk Factors ........................................................................................................................... 36
Meeting Growth Projections ..................................................................................................... 36Management of Growth ........................................................................................................... 36
Market Acceptance ................................................................................................................... 37Economic and Resource Availability Downturns....................................................................... 37
Financial Plan ......................................................................................................................... 38
Income & Expense Statements ................................................................................................. 38Cash Flow Statement ................................................................................................................ 39Balance Sheet ............................................................................................................................ 40
Uses of Proceeds .................................................................................................................... 41
Uses of Proceeds .................................................................................................................... 41
Funding & Expenses .................................................................................................................. 41Capital Expenses........................................................................................................................ 41Working Capital ......................................................................................................................... 41
Appendices ............................................................................................................................ 42
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PRINTEMPS DU MONDE Business Plan
Business Highlights
Strong Management Team: Founder Lily Debiteur is one of the only green marketplaceinnovators to be educated, trained, networked, and employed in the environmental sciencefield. Her credentials allow her to have unprecedented access to industry leading raw materialsproviders, textile development labs, cutting edge manufacturing efforts, and professionalindustry support services. In addition, Debiteur has strong and substantial complimentaryexperience leading branding efforts in the apparel and personal care marketplaces, includingNIKE and LOral.
Innovative Model. Printemps du Monde is a wholly integrated model to leverage proventechnology collaboration, consumer networking, and traditional wholesale retail models withinthe specific, targeted niche market. Printemps du Monde is a solid, profitable product designventure with tremendous growth potential as a lifestyle brand in the high end retail apparelsegment. At the same time, Printemps du Monde incorporates its core altruistic goals to ensureconsumers and marketplace participants are buying products that have releDebiteur in theirlifestyle and their own socially conscious commitments.
Strong Need Driven by Market Dynamics : The global market for green and ecologically conscious products continues to grow and build momentum as it has evolved from a limitedtrend to a well rounded market with a definable and growing consumer base. Consumerswhose purchase decisions are driven primarily by their lifestyle and values are categorized asLOHAS (Lifestyles of Health and Sustainability) customers and they have created a $230 billionmarket segment that transcends all facets of consumer purchases.
According to the LOHAS Journal, which measures the green marketplace, 19 percent of U.S.consumers buy goods with an eye on their sustainability and environmental impact. Greenproducts generate about $227 billion in sales, and that could reach $1 trillion annually within 12years, the journal estimates.
Aggressive Marketing . Management will implement proactive and creative marketingstrategies to promote the socially conscious philosophy of the brand and products. In a phasedapproach to brand building, Printemps du Monde will first execute a pull strategy to introducethe brand in the US market through cost effective public relations, product samples, consumerand trade education about green couture, viral marketing, and other direct to consumerprograms. Once the initial brand presence is well established, the proactive marketing strategywill adopt a push approach to continue the existing campaigns targeting consumers as well as
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Business Model
The management team of Printemps du Monde, LLC has developed a business model tomaximize the full potential of the organic textile technology concepts and applications throughbusiness to business and direct to consumer sales, while increasing its international and U.S.
distribution.
Printemps du Monde, LLC combines a product and service model for generating revenuethrough dual customer markets (consumers and retailers/distributors), leveraging its certifiedorganic fibers, and expanding the national presence through increased retail penetration. TheCompany has crafted a systematic approach to minimizing overhead and nonessentialorganizational development in the early years of operation to create a dynamic business andmaximize financial, human, and intellectual resources. Employing effective strategies for
business growth, Printemps du Monde, LLC will deliver high quality products while minimizingburn rate to effectively and efficiently utilize capital and implement marketing campaigns key tothe Companys success.
Ultimately, the appeal of the venture lies in the widespread application of organic textiletechnologies in innumerable, lucrative industries and the matchless product and service offeringthat the Company has developed to introduce its environmentally conscious and progressivetechnology to the global marketplace.
Services & Products
Printemps du Monde is a multi dimensional organic and green textile technology design firmlaunching two designer ecofashion labels, focused on high end casual lines in eco friendly, yetluxurious fabrics, for year round appeal. Under the Printemps du Monde brand, the Companywill launch the Repose line in fall 2008 with the first collections under the labeled focused onthe loungewear and innerwear markets. Expansion of the label will introduce sleepwear to the
line in 2010 and extend to application of organic textile innovation in the home furnishingsmarketplace by 2011. The Fte is the high end apparel line for dress casual wear that bringssolid couture and European fashion to the Printemps du Monde brand. The label incorporatesdaywear and evening wear in the contemporary casual to designer segment and iscomplimented by a full collection of accessories.
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Growth Strategy
The long term growth strategy involves several approaches. The first level of expansion willinclude the introduction of new apparel lines to the overall Repose and Fte collections. Thisincludes growing the homewear Repose line to include sleepwear and home furnishings withinthree years. In the near term, the Fete will continue to introduce new seasonal collections forfall and Spring each year, produced in organic cotton, silk, and cashmere; innovative technology enhanced organic fibers; and other eco friendly materials. The Company has also planned thefuture launch of Printemps du Monde branded line of personal care products for its long termgrowth.
Additionally, all opportunities to utilize emergent environmentally conscious manufacturingprocesses and eco friendly materials in new styles and designs will be monitored andmaximized. Management plans to leverage profits and cash from the existing business to fundlong term growth efforts. Additionally, opportunities to utilize emergent environmentally conscious manufacturing processes and natural and organic materials in new products will bemonitored and maximized.
Financial Projections
The projected financial position of the Company indicates the combination of revenue streamsand additional private investment will enable continued product development for a line of green
brands, expanded production and marketing efforts, and sustainable operations. The Companyanticipates a steady growth with a stable net income, which will be reinvested for growth andoverall business development. Based on sales projections and anticipated expenses once thefirst phase of programs in this business plan are fully launched, management projects Printempsdu Monde will realize modest profits within three years, with continued growth in future yearsas projected in this plan.
The following illustration represents projected sales and profits over five years of operations.
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PRINTEMPS DU MONDE Business Plan
Business Summary
The concept for Printemps du Monde, LLC was founded by Lily Debiteur in 2005 for the researchand development, manufacture, and wholesale and online retail of a unique, upscale line of products that leverage proprietary innovations in organic textiles technology, targeting thefemale consumer with its initial labels for the apparel and accessories markets, and utilizing thefinest quality organic and recycled fibers. Over the course of the past three years, Printemps duMonde, the flagship brand effort of DeVanx, GmBH, has conducted extensive research anddevelopment into all facets of the business, from cultivating relationships with best practicesfirms in the supply chains to defining the final product mix and product labels based oncomprehensive consumer market research and testing. Printemps du Monde is currentlyavailable in Europe, Japan, and the Midwestern United States, and is positioned for itsnationwide launch across America in the fall of 2008.
Company ProfilePRINTEMPS DU MONDE is the seminal brand effort of DeVanx, GmBH, and is currently sold inJapan, Australia, Brazil, Germany, Switzerland, Austria and the U.S. (Midwestern).
Printemps du Monde, LLC is a multi dimensional environmentally conscious and technologically innovative designer of products targeting the eco minded female consumer. The firstapplications of Printemps du Mondes design focus on the womens high end apparel and
accessories markets. The Company has enjoyed numerous successes in its recent operations,increasing nationwide and global distribution through modest product introductions and direct to consumer sales. Printemps du Monde, LLC is a solid design, manufacturing, and distributionventure with tremendous growth potential as a lifestyle brand in the green and organic productretail segment.
Historical Background
Since its inception in January of 2005, Printemps du Monde has actively been building itsorganization and brand, from initial research and development to its current stages inpreparation for the planned fall 2008 US launch. Due diligence in defining thePrintemps du Monde brand and its associated labels and product groups of Reposeand Fete has addressed the mission critical functions to position Printemps du Monde
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and sustained product innovation efforts in R&D with product redesign and multiplesample trials in the marketplace. Product tests were expanded to outlets in theMidwestern United States and Japan by mid 2006 while resources for raw materialsourcing, manufacturing, production, and shipping and distribution were continuallytested against rigorous quality control measures.
With funding in place to support marketing efforts, staffing needs, and production
capacity, PRINTEMPS DU MONDE is on target to launch nationally across America in thefall of 2008.
Legal Structure & Ownership
Printemps du Monde will be incorporated and registered in the United States as alimited liability company.
The principals of Printemps du Monde, LLC are Lily Debiteur, President and Chief Executive Officer, and Gabrielle Argent, Finance Manager. Ms. Debiteur is majorityshareholder of the Company.
Combined with the planned management and operations team, the principals bringadditional skills and background advantageous to the business that will be presented inthe Organization Summary section. Supported by a stellar group of seasoned industry
and business advisors, the management team executes the product development,administrative operations, and sales functions of the business, and has devised athriving business model, poised for tremendous sales success.
Location & Facilities
Printemps du Monde, LLC will conduct launch business activity from its main US based
administrative offices in Chicago, IL. Satellite offices for sales functions will be locatedon both the East and West Coasts, ultimately.
The main design and manufacturing facilities of Printemps du Monde are located inBasel, Switzerland, which is not only a major manufacturing, cargo shipping, andtransportation hub in Europe, but is also deeply committed to energy conservation, at
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All intellectual property rights to the Printemps du Monde brand name, trademarks, andproducts are owned by DeVanx GmBH, the green product design and development firmlocated in Basel, Switzerland and under an 80%/20% distribution ownership betweenPrintemps du Monde principals Lily Debiteur and Gabrielle Argent (respectively). Undera licensing arrangement, DeVanx GmBH will release the existing product design rights toPrintemps du Monde.
Mission Statement
The mission statement of Printemps du Monde, LLC is concise articulation of theCompanys purpose and underlying philosophy:
We are committed to building a stylish, credible, and sustainable green company by offering innovative organic product choice in a range of global consumer
markets. Printemps du Monde seeks fair and accountable profit while raisingconsciousness about global environmental responsibility and maintaining a highaesthetic of sophistication and quality throughout its product lines.
Customer service is key to our success and a cornerstone of our brand identity.Printemps du Monde understands that our core consumers care as much as wedo about environmental consciousness and that we have a responsibility to themand those ideals. We are profoundly connected to our consumers, listening to
and creating a dialog with them to ensure product releDebiteur, satisfaction,and customization.
Aiming for a fair balance between our channel partners, creativity,distinctiveness, quality, and go to market pricing, our corporate structure as agreen enterprise is focused on true value exchanges. We believe that all of channel participants from raw material suppliers to our end consumer and beyond are a vital extension of our green identity and their efforts are supports
accordingly.
Core Corporate Objectives
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Critical Success Factors
Both the short term and long range success of Printemps du Monde, LLC rest in the ability of theCompany to satisfy the needs of the market, while remaining on the cutting edge of luxury hairand skin care products and merchandising, as well as fluctuating customer preferences andinterests.
Fundamentally, success lies in the following elements:
Optimization of the Companys highly motivated and multi talented team, and its unique products and manufacturing adDebiteurments on a growing concept within the personal care product industry.
Favorable negotiation of vendor terms and development of key alliances withbuyers and industry specialists to achieve a high profile product distribution and sustain top of mind positioning with key customers.
Rapid and cost effective capture of market share and optimization of existingclient base to develop new business opportunities.
Accelerated and varied product extensions and concurrent marketing activitiesthat build on the baseline suite and facilitate brand growth. Multi pronged marketing approach that includes both trade and high profile promotions, product placements, and consumer advertising.
Uncompromising commitment to the quality of the end product throughexcellent natural botanical ingredients, superior production processes, and attractive packaging design for sustained growth results.
Commitment to reinvesting profits for further growth through sound financial practices, effective sales and marketing programs, dedication to increasing valueto the customer and guaranteeing satisfaction, and efficient businessmanagement.
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Business Concept and Need
Market Need
Increasing numbers of mainstream consumers, and therefore retailers, are changing theirbuying behaviors from synthetic, man made products to more organic and eco minded products
in all facets. The nonprofit Organic Exchange predicts that sales of organic cotton fiber willreach $226 million by 2009, up from about $19 million in 2004, as consumers actively seek tolessen and offset their personal environmental impact by buying clothes made of recycledmaterials and sustainably harvested, homegrown fibers.
A growing number of apparel makers and retailers are adding eco friendly fashion to theirproduct lineups, and also taking bold steps to implement business practices that alleviateharmful consequences to the environment. The increased consumer awareness and receptivity
to ecofashion are reflected in NPD Group research. In a 2001 survey, 6 percent of respondentssaid they were interested in purchasing apparel, footwear and accessories that are ecologically
friendly. In 2007, that figure had tripled to 18 percent.
Danny Seo, author of the Simply Green lifestyle book series and a leading authority on eco style,sees a wholesale shift occurring on the cultural landscape. "Green is no longer a trend," henoted. "A trend is an Ugg boot. But we've seen green reach a tipping point in automobiles,home products, food and personal care. Fashion is the last to tip, because it's one of the most
complicated."
Products and Services
Printemps du Monde is a multi dimensional design firm launching two designer ecofashionlabels, focused on high end casual lines in eco friendly, yet luxurious fabrics, for year roundappeal. The Printemps du Monde lines use soft, natural yarns, including organic cashmere,
cashmere silk blends, organic cotton, and recycled cashmere and silk to satisfy the unique styleand luxury comfort needs of the high end, trendy apparel female consumer.
Repose is the label representing the homewear group of loungewear, sleepwear, and innerwearapparel from Printemps du Monde. The first collections available in the Repose line will be theloungewear and innerwear for the fall 2008 US launch. The innerwear or lingerie collection
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Fte is the high end contemporary casual apparel line blending solid couture with social andenvironmental consciousness. The form flattering shapes for dresses, shirts and blouses, pants,skirts, shorts, jackets, and coats fit any body type and are just as appealing as professional orcasual day wear, as they are alluring for evening wear. The line is complimented by a fullcollection of accessories including jewelry, handbags, belts, and scarves.
Applying its organic textile technology, Printemps du Monde manufactures and wholesales its
unique lines of ready to wear designer fashions for women. The Repose and Fete lines will beeffectively differentiated in the marketplace on multiple dimensions including design, quality,perceived value, and certified organic materials that incorporate nanotechnology, photovoltaictextiles, and processing methods to create garments and products of the highest aestheticwithout compromising quality or environmental commitment.
MILKOFIL An inn ovativeyarn derived from100% organic milk
Fiber made fromcasein the mainmilk proteinBlendable withorganic cotton.Enviro - BioProcessing, ResourceRepurposing & WasteReduction
1. Skin softeningthrough transferredamino acids2. Casein fiber:- enhanced bloodcirculation- antibacterial agent- negative ions- skin breathability- absorbs humidity
A. Unique respo nseto the Sleepwear Market growth trendB. Partial Exclusivity:LILIMONDE &Loudermilk
C. Full Exclusivity:Customized Fiber Blends
FLEX-GROW 100% Organiccotton andrecycledelastomer cores
Elasticity combinedwith non synthetictouchExtended Wear Enviro Both Organic& Recycled + EarthFriendly Processing
1. Comfo rt wear 2. Soft to the touch3. absorbs humidity
4. Blend of Organic &technology to fulleffect
A. Industry Leading &Proprietary f or the USMarketB. Future Exclusivity:Cutomized Fiber BlendsC. PR PowerfulGreen message
NANO TECH Smart Jacketsconstructed fromOrganic fibers andNano Techn ology
Responsive toweather pattern shifts
Extended Wear Need Reduction - one
jacket for multipleapplications
Enviro Enhanced Organic Base
1. Multi Purpose &Functionalty
2. Comf ort3. Protection
4. Blend of Organic &technology to fulleffect
A. Co-develo pmentwith major textile
player C. Exclusitivity inNorth AmericanMarketC. Brand Buildingw/Organic innovation
PHOTOSYNTH A sun reactive Fiber next generationcombin tion of tech
1. Reduction of enger b ill
A. Industry shaping &le ding
Technology Description Features Benefits CompetitiveAdvantage
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Sourcing
Through its base of design and production operations in Basel, Switzerland, Printemps duMonde is at the center of the global organic textile industry. In addition to utilizing proprietarytextiles exclusive to Printemps du Monde and unavailable to potential competitors in the Northand South American market, the Company works with a vast network of top quality supplierswho source their raw materials from internationally certified organic suppliers who also haveSwiss operations. At this time, 94% of Printemps du Mondes products are manufactured fromcertified organic materials including:
Mongolian Organic Cashmere South African & Indian Organic Cotton Chinese Organic Silk Swiss, French, Italian, and Canadian Reclaimed Textiles, Metal & Fabrication Materials
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Processing
In all aspects of its green operation, Printemps du Monde adheres to its solid environmentalcorporate philosophy and strengthens its competitive advantage as a premiere providerapplying the technological and design advantages afforded by organic textiles to the fashionindustry, initially, while exploring new synergies to harness its trade in other productive,growing markets.
Organic BIOTechRaw
Material Production
The natural biologicalgrowth process isenhanced through
innovative tech-organic practices
1. Higher Yield2. High Quality3. Low Impact
5. No waste p roducts6. No chemical usage
A. Backable NoGreen Washing claimB. Strong innovativepositionC. Industry leader
D. Brand messagereinforcement
Oraganic TextileProcessing
SustainableDesizing, Bleaching,Dyeing, Finishing andPrinting operations of
fabric and yarnincluding enhancedeco f riendly machines
1. Greener verticalprocessing2. Reduction o f Carbon Footp rint
3. Innovation4. Strong blend of Organic & technologywith room to g row
A. Industry Leadingorganic Dyeprocesing.B. Industry exclusive
Organic Printprocessing.B. Maximized abilityto custimize fiber blends
C. PR Multi-facetedmessages.
Organic &Sustainable Product
Manufacturing
Smaller productionfacilities withcontroled organic &sustainable practices
1. Reduction inCarbon Footp rint2. Access to highlevels of expertise3. Subs tantially higher quality
4. Human f acto r at apremiem
A. No China-esquemass productio n andexplotationB. True greencompanyC. Brand Buildingw/Organic integrity
Processing Description Benefits CompetitiveAdvantage
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The Market
Industry Overview
As growing numbers of consumersshop with a conscience, the rise of ethical consumerism is driving therapid growth in sales of organic,local, humane, Fair Trade, and eco friendly goods.
Boosted by the burgeoning $15 billion market for organic food, green products are morepopular than ever among consumers in all gender, racial and age categories. The correlation tothe organic food market provides some insights into the emerging trends for other natural andorganic product markets. Nonfood organic items, such as clothing and sheets, are the second fastest growing category of all organic products, with sales jumping to $160 million in 2005 from$85 million in 2003, according to the most recent figures from the Organic Trade Association.Besides using organic cotton, merchants are rolling out garments made from soy, corn, andbamboo. Organic fibers, including cotton, come from farms that use soil without pesticides andchemical fertilizers, and meet all U.S. Department of Agriculture regulations for organic farming,said Holly Givens of the Organic Trade Association.
Consumers whose purchase decisions are driven primarily by their lifestyle and values arecategorized as LOHAS (Lifestyles of Health and Sustainability) customers. By 2005, 63 millionAmericansor 30 percent of the adult populationwere part of the LOHAS market, accordingto the Natural Marketing Institute, a market research firm specializing in defining the LOHAScustomer and quantifying this $230 billion segment.
The LOHAS market is comprised of five sectors: (1) Sustainable Economy (green buildings,renewable energy, socially responsible investing); (2) Healthy Living (natural and organic food,nutritional supplements and personal care); (3) Alternative Healthcare (wellness,complementary and alternative care [e.g., homeopathy]); (4) Personal Development (mind,body, spirit products and services from CDs to seminars) and (5) Ecological Lifestyles (ecologicalor recycled products, ecotourism and travel).
The sustainable economy sector represents a $76.5 billion market; alternative medicine, a $31
"All the retailers are rushing to organic. You can't afford not to. It appeals to the two biggest markets: youth and the baby boomers," said Marshal Cohen, chief retail analyst at NPDGroup, a Port Washington, New York, research firm. "It's cool to care today. Five years ago, it was self indulgence. Now it'sself indulgence with concern."
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A new breed of shopper is walking the streets and the strip malls of America. You probably work with them, or even sleep under the same roof with them, but you may not know of their habits at the store. They are poised to transform the way companies dobusiness. They should be considered armed with both cash and a conscience and they may be dangerous to companies that don't recognize them.
This character is known in the marketing world as the LOHAS consumer. The LOHAS
consumer leads a "Lifestyle of Health and Sustainability," and their buying choices reflect this lifestyle. The defining characteristic of this set of people is their preference for products that are better for the environment, society and personal health. The LOHASmarketplace includes a range of products, from basic consumer goods like organic foodsand natural cleaning products, to pricey services like ecotourism expeditions and evensocially responsible investments. No matter the product, LOHAS consumers base their buying choices on their social and environmental values.
The field of marketing is replete with classifications for different subsets of people, or inmarketing lingo, "market segments," but usually these categories are based ondemographic characteristics such as age, race or income. The drawback of this sort of profiling is that demographic generalizations are often not very accurate. Moreover,offensive stereotypes can arise in market segmentation, as in one notorious classificationsystem identifying groups like the wealthy "blue blood estates" or the poverty stricken"downtown, Dixie style" consumers. The LOHAS consumer segment is different. It isbased not on background and circumstance, but instead on the consumer's expressed
belief that the values of health and sustainability should guide market behavior. TheLOHAS market transcends age, race, gender and other traditional categorizations.
Representing over 68 million people, or one third of the American population, the LOHASconsumer segment is large and growing larger. According to the Natural MarketingInstitute, which conducted the 2003 survey that produced these numbers, the LOHASgroup expanded its ranks by 7 percent over 2002. That is an increase of approximately 4million LOHAS consumers in just one year. It is the kind of increase that businesses
notice. In 2003, LOHAS consumers spent nearly $230 billion on goods and services that improve health, social conditions and the environment.
Beyond Boycotts
The idea of conscious consumption is not a new one The recognition that consumers
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want a piece of the expanding LOHAS market, and some are reforming their business practices to begin meeting the demands of the conscious consumer. For a businesswanting to get in on the action, the question is: what do these LOHAS consumers hold sodear, that they are willing to even pay a premium to attain?
In Search of Sustainability
"Health and sustainability" are the hallmarks of LOHAS, and they are interrelated but distinct concerns. The LOHAS consumer values personal health and development, a fairly straightforward concept that businesses are effectively addressing. The LOHASconsumer's desire for a sustainable product is more difficult to understand and satisfy.Sustainability was originally conceived in the 1970s by ecologists seeking to better understand the world's environmental predicament, and only recently has the term"sustainability" become part of the popular lexicon. The definition of sustainability varieswidely depending on who is using the word, but perhaps the most credible definition
came from the Brundtland Commission's report Our Common Future, which popularized sustainability in the late 1980s. Sustainable development "meets the needs of the present generation without compromising the ability of future generations to meet their needs."
Clearly this definition goes beyond a strict environmental formulation. The LOHASconsumer wants to see a fundamental change in the way society operates. Bound up inthis conception of sustainability is not only environmental protection, but the question of
human needs, of economy and equity. The LOHAS consumer views sustainability as aholistic concept, encompassing environmental, social and economic concerns and their interactions in a whole system.
Businesses that seek to operate sustainably and enter the $230 billion LOHASmarketplace must expand the horizon of their traditional concerns. The most innovativebusinesses are going beyond the typical financial bottom line to address the "triplebottom line" of economy, environment and society. The triple bottom line acknowledges
costs that were not traditionally included in the balance books, such as employee health,water pollution or impact on local communities. While in the past firms were held accountable solely by economically motivated shareholders, the sustainable firm is now encouraging the participation of all stakeholders, including employees, consumers and community members, to ensure that the triple bottom line is being adequately addressed
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natural products channel, and potential for increased incremental sales opportunities," according to Frank Lampe, editor of the LOHAS Journal.
The first, and most difficult, step for a company to begin harnessing the LOHAS market isto implement changes that result in a more sustainable operation. The next step isletting LOHAS consumers know about those changes through targeted marketingcampaigns. In a recent article, Lampe advises companies on marketing strategies to
reach the LOHAS consumer. He emphasizes quality and authenticity, the antitheses of the outgoing mass production model, and encourages companies to highlight social and environmental responsibility. And importantly, Lampe recommends, recognize that theLOHAS consumer is averse to consumerism and materialism and is generally suspiciousof flashy corporate marketing.
This is salient warning at a time when consumers are becoming more savvy at identifying greenwash. "Greenwash" is a term for environmentally themed marketing of
products and companies that are in fact contributing to environmental degradation. It results when companies skip the first step into the LOHAS marketplace becoming amore sustainable operation and instead start with the second step the marketing of sustainability. Examples of greenwash abound in a number of industries and documentation of misleading environmental marketing is widely available. No fingerswill be pointed here, but suffice it to say, greenwashing is a common practice that threatens the capacity of the LOHAS marketplace to deliver better environmental performance. When conventional companies claim to be more sustainable, LOHAS
consumers become less certain that their buying habits will really make a difference, and the innovative firms pursuing sustainability are robbed of their due distinction.
The uncertainty surrounding greenwash can be partially alleviated by strict verificationstandards, which are already found in several industries. Sustainability certifications area way to verify that companies are backing their words with action. The best of thesestandards provide clear, objective, and consensus based guidelines that areadministered by an independent organization. Certifications are in place for sustainable
agriculture and forestry, for sustainable homes and workplaces, and for "Fair Trade" companies that use, but don't abuse, the global economy.
In conclusion, competitive businesses should be aware: the LOHAS market is growing fast, and participation will require systemic changes in business practices. LOHASconsumers won't settle for low prices they want to change the world
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and social responsibility initiatives are best positioned to capture the LOHAS consumer as wellas build loyalty among the varying shades of green and mainstream consumers.
According The NPD Group, Inc., leading provider of consumer and retail information, 2007 dollarvolume sales in the U.S. apparel market were $195.6 billion, up 3% over the prior year. Inwomens apparel, most notable are sales of dresses. In particular, womens apparel reached$103 billion in 2007. Although the overall womens segment grew only 1%, specific categories
grew substantially, including unprecedented 44% growth in the dress category.
According to a recent press release from the NPD Group, current activity in the womens apparelsegment is driven by consumer preference for style and comfort combined.
Women updated their wardrobes and showed a propensity towards styleand comfort. Accessories provided a great way for women to update their look. Women also pampered themselves with cozy pajamas and robes and other self care products that went beyond apparel, said NPD chief industry analyst, Marshal Cohen.
Big investments were made in the womens jean sector. In 2005, womens jeans were $7.6 billion, up nearly 10 percent in sales. Womens premium jeans (jeans priced over $100) accounted for 18 percent of denim sales inU.S. department stores, up from 12 percent in 2004. Women needed something to wear with their jeans and so, they shelled out over $10 billionon t shirts, posting a 10 percent spurt last year.
Last year was a clear indication of where the consumer is heading for 2006. Todays consumer enjoys splurging on higher end products now and then, but their quest for value still remains, said Cohen.
As a sub sector of the apparel market, lingerie or innerwear is a $9.6 billion industry in theUnited States annually, with the highest consumption of fashionable, tasteful lingerie reportedamong women in committed relationships, as well as by single women, either never married, orrecently divorced.
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While about 85% of retail sales of organic fiber products are credited to apparel, according tothe Organic Trade Association and Organic Exchange, dollar volume in the home textilessegment have shown year to year double digit increases, and trade groups foresee continuingstrong growth at least through 2010. An increasingly diverse product mix in eco friendly hometextiles should serve to heighten awareness and distribution.
Target Market
Though direct sales are made to wholesale buyers, the style, manufacture, and the endconsumer of its products dictates market considerations that the Company must address. ForPrintemps du Monde, the most practical segmentation of the market is based solely on buyingpatterns.
Retail Buyers: Buyers identify and purchase product lines based on personal care product
industry projections and current trends of popularity. Buyers attempt to characterize theproduct interests and key selling points of the shared target consumer in making purchasedecisions. The individual buyer may represent one or several channels including specialtydepartment stores, e tailers, and luxury catalog companies.
Consumers: The traditional organic consumers are usually those who purchase organic productsas part of their beliefs and lifestyle. As the niche market expands, other consumer segments aredrawn to the value of natural and organic products, including aging baby boomers, university
students, and others who perceive organic products as an ethical or chic alternative toconventional goods. Individuals who purchase organic and natural products are not thatdifferent from populations on the whole, transecting all demographics.
DARK GREEN (+/- 5%) - They are highly invested in green livingand spend most o f their time and money concerned with sustainableliving. They only purchase green apparel & home furnishings. Theyare not concerned with the aesthetic rather the content.
MEDIUM GREEN (+/- 20%) They are focused on hearth andhome and are early innovators in the green movement. They are lesslikely to buy g reen apparel & home f urnishings that do not havecontemporary style.
GREEN (+/- 40%) - They have emerged f rom their work haze with a
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Through its online retail and wholesale distribution strategy, Printemps du Monde, is not limitedto the geographic territory surrounding its US base of operations. Similarly, the ultimateconsumer represents a cross section of populations, and is not limited to the United States. TheCompany can further its international awareness, leveraging its sourcing and manufacturingbase in Western Europe, through its marketing strategies and web presence to develop affinityand loyalty, not only with the wholesale trade but also with the crucial consumer segment.
Market Size
Printemps du Monde, LLC will attract customers in both the consumer and business segments of its target markets. Buyers in the business segment represent the retail clothing industry as wellas specialty stores with multiple merchandise lines. Additionally, buyers may also representcatalog and other non store channel retailers, such as ecommerce retailers.
The US retail clothing industry includes about 40,000 companies that operate 90,000 stores withcombined annual revenue of $130 billion. The industry is heavily concentrated with the 50largest companies operating 30,000 stores and account for 65 percent of industry revenue.Most companies operate a single store. An average store has $2 million in annual revenue.
Some 400,000 specialty retail stores operate in the US, with combined annual sales of about$350 billion. The market consists of shoes and clothing ($125 billion); electronics and appliances($85 billion); jewelry ($25 billion); sporting goods ($25 billion); books ($15 billion); toys, music,luggage, and pet supplies. The typical specialty retailer operates a single store, with annualrevenue under $1 million.
Competitive Environment
The competitive landscape for designers, wholesalers, and manufacturers of apparel in thedesigner category is vast and intensely fragmented. However, hip, high end apparel made of unique, environmentally friendly fabrics and processes create a smaller niche with more specificdirect competition. Although Printemps du Monde, with its Fte and Repose labels, initiallycompetes for share of womens wardrobes, it has fewer direct competitors operating in thespecific niche of organic materials, technologically enabled textiles, and brand positioning.
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The following is a list of core competitors, with information from corporate and other financialprofiling web sites:
Gaiam
Gaiam, Inc., together with its subsidiaries, operates as a lifestyle media company in theUnited States, Canada, Japan, and the United Kingdom. The company engages indeveloping, producing, and licensing information and programs to customers focusingon personal development, wellness, spirituality, ecological lifestyles, media, andconscious community markets. It also develops children's programs, as well as developsand markets music and audio CDs, and publishes printed content. Gaiam primarilyserves national retailers, corporate accounts, and the media markets. It also conductsdirect to consumer business through catalogs, Internet, retailers, direct responsetelevision, electronic downloads, broadband, subscription systems, and communities, as
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EDUN labels itself as a "socially conscious clothing company" which exists to assist inincreasing employment and trade for developing regions, especially Sub Saharan Africa.The Edun label is the company's high end collection of men's and women's clothing soldin stores such as Nordstrom and Barneys New York. The clothing is made in developingcountries from organic materials grown in those countries. The edun Live sub brandconsists of a line of blank cotton T shirts manufactured in Africa from materials grown
there and is aimed at a wider market through higher volume, businessto
businesssales. Additionally, the company supports edun Live on Campus, a pilot program
started at Miami University in Oxford, Ohio. The business model is still being refined,but it consists of the sale by a student run organization of blank edun Live T shirts thatcan be screen printed with custom designs for sale to campus organizations and othergroups.
Frei
Frei is a Chicago based ecofriendly line from designer Annie Novotny. Frei usessustainable fabrics (hemp and bamboo woven into wool), vegetable based dyes, andrecycled materials. The garment tags are made with old office paper.
Ecoganik
Ecoganik is a California based fashion designer manufacturer and is an active member of
the Organic Trade Association, the OTA Fiber Council Committee and Coop AmericaBusiness Network. The organic fibers used for Ecoganik are free of harmful pesticides
and chemicals. The eco friendly natural and recycled fabrics used for the line includeorganic cotton, tencel, hemp, organic indigo denim, silk, organic wool, and eco fleece.
The colored organic fabric is finished with low impact dyes which are free of metal andmordant substances. Such dyeing process protects the earth from wastage of water andelectricity, and eliminates toxic discharge runoff into the waste stream during the
dyeing process.
Ciel
Ciel, a carbon neutral UK based fashion company, is a womens wear label of designerSarah Ratty that unites intelligent eco design with socially conscious production
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Linda Loudermilk
Linda Loudermilk is the pioneer of stylish eco friendly fashions and has been creditedwith the introduction of luxury eco friendly clothing. Her collections are manufacturedfrom 100% organic fabrics made from self sustaining and exotic plants like soya, sea cell,sasawashi and bamboo.
Linda Loudermilks ecofriendly clothing line definitely reflects her companys endeavorthrough the Eco Luxury Stamp of Approval. This stamp has been specifically created by
Loudermilk for the purpose of accreditation process that reviews the company in detailwith regards to the product, manufacture, labor practices, energy usage andenvironmental impacts along with the luxury quotient and aesthetic design of theproduct. The companies manufacturing environment friendly fashion products can applyfor this esteemed accreditation from the Linda Loudermilk Corporation.
Linda has also made use of Eco Spun material that is made from the recycled plasticbottles and spun with organic cotton.
Competitive Advantage
Printemps du Monde is a comprehensive green design, technology development, andproduction firm, applying its innovative uses of exclusive organic textiles and batch dyingprocesses to in demand markets. The Company has devised a market approach that positionsPrintemps du Monde above its direct competition to combine the lucrative sectors of textiletechnology and the LOHAS consumer lifestyle together. Leveraging its sustainable businesspractices and truly ecologically minded operating philosophy, Printemps du Monde is more thanan apparel and accessory brand or a technology company but a true lifestyle company for thegreen consumer, reaching the vast audience of the coveted 30+ year old female consumer on anaggregate level with high quality of a high aesthetic that can be used in every aspect of dailyliving. Printemps du Monde emphasizes these core competencies:
9 First mover advantage in integrating couture quality design with eco fashionlifestyle sensibilities, keeping the product collections and future introductionsrelevant and on the pulse of European and green trends.
9 L d hi i i i i i f i dl i h l i i l di
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9 Clearly defined market niche allowing for unambiguous understanding of productoffering and a targeted marketing campaign.
9 Experienced management team includes expertise in environmental sciences,organic products, finance, technology development, and green consumer audiences.
9 Unparalleled commitment to the level of green production quality, dedication to
human capital and workforce resources, and strict adherence to surpassinginternational and North American regulations for environmentally sound productionprocess and exceptional working conditions.
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Growth Strategy
Strategic Initiatives
Printemps du Monde, LLC has clearly outlined the overarching, long term goals to achievesignificant financial growth and stability, to garner and fortify a viable share of market, and togain top of mind presence and loyalty as a renowned, green product innovator in all industriesin which it applies its textile technology, beginning with its US apparel and accessory marketlaunch. The foremost goals are to:
9 Engage in active energy efficiency programs which minimize the use of non renewable fuels, including use of energy efficient facilities and shipping partnersto reduce emissions.
9 Continually strive for a carbon neutral footprint.9 Hold to product development and production procedures that maximize eco
efficiency to ensure environmental certification adherence and marketcredibility.
9 Build a strong brand name with the consumer as a preferred brand providingunique, aesthetically appealing, and trend setting green products for consumersseeking high quality options that fit their lifestyle commitment.
9 Source products and services that are created by local suppliers to foster truefair trade opportunities and build accountability into partner relationships.
9 Operate with consistently socially and morally responsible employer practices toensure personal accountability filters through employee ranks and results inpredictable, conscientious business outcomes.
9 Develop and launch complimentary products and lines that extend the brandbeyond the apparel and accessory market segment, with phased entry into thegreen home furnishings and personal care markets.
Value Proposition
Printemps du Monde will leverage its value proposition and competitive edge to establish astrong market presence as the foremost provider at the intersection where organic materialsand green processes join with technological innovation. With its premiere application in theapparel and accessory sector, Printemps du Monde marries couture with eco fashion,combining beautifully fitted form with year round function in environmentally responsible
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Marketing Strategy
Management is developing a multi pronged approach to reach its target market through acombination of online and offline programs that will drive traffic to all retail channels.Management intends to commit to a substantial marketing and advertising budget as ittransitions to a more fluid sales and distribution model, and to increase awareness through highprofile product placement and public relations vehicles. The key strategies are highlighted
below.
Moderate to High End Competitive Pricing Creative Participation in Green Living and Eco Fashion Events Sales Representation to Reach Buyers and Showrooms Comprehensive Online Marketing Cooperative Promotions and Advertising with Key Partners (Eco tourism providers,
Organic vintners, Hybrid automobile manufacturers) Guerilla Marketing Directed at Retail Buyers and Consumers Effective Public Relations, Including Editorial Coverage Direct Mail Marketing (Online and Print Catalogs, etc.) Consumer Loyalty Building Programs Look Book & Line Sheet Development Trade Industry Advertising Special Promotions Merchandising Material Client Satisfaction & Service Networking within Industry & Cultivation of Relationships with Key Promoters and
Analysts
Distribution Strategy
The product collection of Printemps du Monde is currently distributed by retailers in Ohio,
Michigan, and Illinois. The current strategy seeks to expand nationwide in the United Statesthrough outside sales representation based on East and West Coasts to gain a continuallyincreasing presence in specialty eco fashion boutiques, department stores, e tailers, greenand LOHAS consumer oriented catalog retailers, and other specialty retailers. In house salesrepresentatives will engage in Phase II of the marketing effort which targets the consumeraudience once the retail presence is well established
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evening wear in organic cashmere, silk, and wools, and reclaimed and recycled silks, amongother materials, range in price from $85 to $1,000.
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Management & Personnel
Printemps du Monde will gradually develop its organizational structure with the addition of keypersonnel instrumental to the success of the business. Effective execution of prescribedstrategies rests in finding ideal candidates to fill key, top level management professionals anddirect specific functional areas of the business. Clear definitions for the critical executivepositions, held by the principals, have been outlined, as have the organization reporting
hierarchy and competitive salary and compensation models.
Management
Printemps du Monde, LLC is managed by its founders who comprise the core management teamfor design operations and financial administration. Each executive brings a wealth of experiencespanning the gamut of essential skills, from entrepreneurship and successful businessmanagement, to functional specialization within the textile technology development and greenmarketing segments. The management team will share all duties and responsibilities of strategicand daily operations with the addition of professional for key functional roles within theorganization. As the business develops, management will continue to aggressively pursue idealcandidates for the needed roles and responsibilities of other staff, while effectively utilizingexternal resources as contract employees to support the business. Once established, the seniormanagement team will determine the necessary size and composition of any additionalworkforce segments.
The current management team is as follows:
Lily Debiteur President & Chief Executive Officer
Gabrielle Argent Finance Manager
TBD US Operations Manager
TBD US Marketing & Sales Manager
TBD Internet Sales Manager
Management Profiles
CEO & President of Printemps du Monde LLC
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Personnel Plan
Current plans for staff, as outlined below with anticipated salaries and wages, fill the essentialpositions to ensure all functions related to design, technology implementation, productdevelopment, manufacturing, fulfillment, sales, and administrative management are effectivelyaddressed. In addition to m, Printemps du Monde currently employs six other key staff members including two developers (one in Italy and one in Switzerland), a pattern maker, a
design production manager, shipping and customer service manager, and a sales supportrepresentative.
The personnel plan combines permanent employment status with contract employees in somedesign, sales, and marketing positions. Printemps du Monde will progressively increase itsorganizational structure with the addition of both categories of employees to maintain leanadministrative operations and ensure coverage of all functions of the business with the mosthighly skilled professionals.
Payroll Expenses
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Management Support
Relationships have been developed with a network of business and professionals in the organictextiles and textile technology markets, as well as experienced consultants to entrepreneurswho provide assistance to Printemps du Monde, LLC as an advisory counsel.
Advisory Team
L. James Newman, Jr. is an international manufacturing executive with expertise inperformance improvement through restructuring, sales growth, cost reduction,partnership creation, and technical and product innovation. He holds a Bachelor of Science in Management Engineering from the University of Vermont and a Masters of Business Administration from the Amos Tuck School of Business Administration atDartmouth College.
Robert Mann is a former Chief Executive Officer of a chain of specialty department
2008/2009Permanent:
Chief Executive Officer
Operations Director
Internet Manager
Admin. Assistant
Contract:
Design Production/PatternMaker
Mfg Developer (Italy)
Mfg Developer(Switzerland)
Marketing & SalesManager
Region 1 Sales
Tradeshow Manager
Controller
2010(additional)
Permanent:
Marketing & Sales Mgr.
Customer Service Mgr.
Contract:
Region 2 SalesNatl Merchandiser I
2011(additional)
Permanent:
Finance Director
Marketing & Sales Asst.Accounting ClerkOperations Asst.
Contract:
3 AddlOps Personnel2 AddlAdmin Personnel
2012(additional)
Permanent:
3 AddlOps Personnel
2 Addl AdminPersonnel
Supply Chain Mgr.Shipping/Dist. Mgr.Mktg. & Sales Asst. II
PR/Advertising Mgr.Jr. Finance Analyst
Contract:
Natl Merchandiser II2 AddlOps Personnel
2 Addl Admin
Personnel
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financial and cash flow planning, as well as tax accounting and wholesale tradecompliance.
Mike Hernandez is a merchandising and marketing advisor with extensive managementexperience in the moderate to high end apparel segment with major US brands.Additionally, his background includes expertise in international trade and in establishingand managing export operations. He holds a Bachelors of Business Administration fromSt. Marys University in San Antonio, Texas.
Larry Tessler is a retail merchandising expert with extensive experience in high endwomens apparel, handbags, hosiery, accessories, and lingerie in specialty boutiquechains and department stores.
Richard Haft is a former Chief Executive Officer and President of Liz Claiborne andprevious entrepreneur of a large handbag and belt design house and wholesaler. He isconsidered one of the pioneers of high end offshore manufacturing in the apparelsegment.
Representation
Additionally, appropriate Swiss and US based attorneys and accountants are utilized tosupport the operations of the business, provide continuing financial guidance, andreview legal documents.
The Company has established relationships with well qualified professionals and firmswho provide services to Printemps du Monde, from financial planning and accounting tointellectual property and product formulation. Key international providers include:
Hugo Schauli, Certified Auditor Wirtschafts Treuhand AG, Switzerland Martin Lutz, Legal Counsel Lutz, Brigger, Grundmann, Kuster & Noll,
Switzerland
Insurer Basler Versicherungen, Switzerland
Representation for United States counterparts will be selected following incorporation.
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Risk Factors
As Printemps du Monde progresses fully into its US launch stage and revenue generating activityin 2009, the Company is less susceptible to the risks facing start up enterprises. However, otherrisks associated with a prominent position in the marketplace are anticipated to arise. Theprincipals have assessed the internal and external threats that present risk to the venture anddeveloped effective, pro active mitigation strategies to address them.
Meeting Growth Projections
The revenue targets outlined within the business plan are realistic and well reasoned; however,management recognizes that unforeseen market conditions could impact sales activitynegatively.
Mitigation Strategy
In developing the existing cost structure and pricing strategies, the principals haveallowed a degree of flexibility to make adjustments in the supply chain, productionprocesses, product design, and market price to accommodate potential risks to marginor net revenue if the pacing of sales activity is slower than anticipated. Maintaining adynamic organizational structure that fosters employee innovation further enablesPrintemps du Monde to maximize its internal resources for design, manufacturing,
sourcing, and marketing adaptability to market conditions and fluctuations.
Management of Growth
The tremendous potential of the applications of the exclusive materials and innovative textilesin the green consumer marketplace may result in actual performance far exceeding projectionswhich could place strains on the enterprise if not properly managed.
Mitigation Strategy
Through the process of determining the primary resources in the supply chain, theCompany has also developed relationships with alternative manufacturers withcomparable capabilities in the segment. Should sales outpace the primary suppliers for
t f d d i i l t d b t
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Market Acceptance
With any new product introduction, acceptance in even the most underserved andundersupplied market is integral to the overall success of a brand. Achieving the goals outlinedin this plan is based upon partner, retail customer, and end consumer acceptance of Printempsdu Monde and its labels in the initial apparel and accessory sectors targeted and in the overallgreen marketplace.
Mitigation Strategy
Employing effective and dynamic marketing and public relations campaign will be key toestablishing the Printemps du Monde brand and supporting its labels. By consistentlyproviding a quality product that exceeds customer expectations and timely service toretailers, Printemps du Monde will demonstrate the depth of its integrity andcommitment, not only to its customers but to its values, as well.
Economic and Resource Availability Downturns
The overall retail sector is unquestionably experiencing difficulty in the United States andglobally with rising gas and general costs of goods prices affecting even the most affluentconsumers behavior. Printemps du Monde is positioned as a premium company with pricing onthe higher end of the spectrum, and relies on raw materials and production processes that aresuperior in the industry.
Mitigation Strategy
With its parent company and origination in Switzerland, Printemps du Monde hasstrong, secure relationships with the first to market Swiss suppliers of organic materialsplacing it in an enviable first come, first served position. However, in being aprogressive, forward thinking venture, management will continue to identify and qualifyalternative supply options that meet its core requirements. Additionally, Printemps du
Monde targets a consumer segment that has a higher level of disposable income that isreserved for purchases that support the lifestyle of health and sustainability. While theconsumer segment is not 100% recession proof, their buying behavior focuses onsupporting businesses that are committed to their values with less regard for cost savings, resulting in more well reasoned purchase decisions.
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Financial Plan
Management has developed the following financial plan to address the strategic andimplementation needs of Printemps du Monde, as summarized in this business plan. Detailedfinancial forecasts for the coming several years have been created utilizing figures based uponexisting and anticipated sales data, the prospect funnel of secured and pending contracts,operating expenses, and marketing campaign estimates. Overall, the ratios for margins, growth,
and expenses are in line with general comparative industry business standards.
The financial plan and projections represent managements best efforts to forecast continuedincome and expenses, based on past performance within this business. The $500,000 investedequity amount will support continued R&D efforts, product development and launch, andmarketing strategies through the Companys sustained growth.
Income & Expense Statements
The projected profit and loss statement represents the expected performance of Printemps duMonde, LLC during the five years of operations presented in this business plan. Company salesare forecast to increase incrementally year after year, aligned with industry ratios. Net profitsare expected to rise steadily as the business matures and the product line becomes increasinglywellestablished in retail environments.
Printemps du Monde Income Statement 2008 2009 2010 2011 2012
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Cash Flow Statement
The Pro Forma Cash Flow forecast illustrates the cash requirements of the Company. A five yearforecast is depicted here. Reimbursement of investments and liabilities is depicted here asrepayment of borrowings.
Cash Flow Projections 2008 2009 2010 2011 2012
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Balance Sheet
The proposed financial plan of Printemps du Monde, provides excellent financial strength andliquidity. Company operations are designed to minimize of expenses while maximizing existingresources in human and financial capital. The balance sheet in the following table is for theinitial five years of operations.
Balance Sheet 2008 2009 2010 2011 2012
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Uses of Proceeds
Funding & Expenses
The Companys launch capital requirements total $500,000 to fund the venture expansion in theUnited States, execute sales and marketing strategies, and recruit essential staff. The requestedinvestment amount provides a sustainable cash balance to support business operations until
specific profitability and sales benchmarks are attained.
Please refer to the chart and table below, detailing the distribution of initial funds. On going useof capital includes funding key positions, expanding strategic marketing programs, andsupporting partner relationships. Future financing needs will be met through conventionalshort term borrowing programs to support inventory acquisition.
U.S. Start-Up Costs
Legal Fees 10,000Trademark Fees 20,000Incorporation Fees 5,000Office Equipment & Software 20,000Samples 60,000Website Creation 30,000Total Start-up expenses 145,000
Capital Expenses
To date, the principals have invested ??? in product research and development, sampleproduction, and advertising and public relations on behalf of the business. Additional samplesand equipment costs total $80,000 for the U.S. launch.
Working Capital
The residual working capital from the first round investment of $500,000, totaling $355,000, willsupport operations providing for the six month period in 2008 of salaries, launch marketingefforts, and operating expenses.
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Appendices2008 Income & Expense Statement
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2009 Income & Expense Statement
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2011 Income & Expense Statement
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2012 Income & Expense Statement