Page 11 - NTIT Solutions, LLC: “Go Locker”
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Execution Strategy A. Overview Overview Ab Machine will seek a $302 thousand equity raise in funding from investors to support the final stages of development and business expansion costs. The Company will function efficiently with minimal overhead and employees, as well as a high return on investments. Development Process: Operational policies and assets will be established and prepared for customers to ensure the greatest chances of a smooth and successful launch. The device will be intuitive and easy to use for casual and expert users. Pre-marketing: The Company has already begun its pre-marketing campaign with traction online via such sites as Kickstarter, Forbes and social media. Web marketing activities will be focused to (a) educate the consumer base, (b) create excitement around the launch, and (c) develop parent/provider interest. Staffing and Training: The Company will function with a relatively low number of employees. All employees will be trained to perform their positions at the highest level of efficiency. As the device grows in popularity, new staff will be hired and trained. Exit Strategy B. Exit Strategy Initial investments in Ab Machine will be used primarily for technology development, research and development, product and packaging, web design, initial marketing and G&A expenses. Management’s forecast model shows sufficient cash flow profile to disburse dividends back to shareholders. Should the need for liquidity arise, management may consider recapitalization or seek additional funding raises from the private capital markets. Additionally, the Company could be an attractive target for acquisition by larger existing fitness company to acquire a market share in the niche market, as the company establishes a reputation. Optimal exit requirements profile includes: Brand name recognition 3 to 5 years operating history and audited financial statements Revenue scale: > $20 million Revenue growth: > 15% per year Profitability: EBITDA > 20% margins 11
