Final Dollar Power Presentation

Dollar PowerWhere your Dollar has Real Power

By Lupe Gomez-CEO, Eric Andrews-CFO, John Smith-COO and Luis Valentin-CIO

1

2

El Que Compra Barato, Compra

Cada Rato.

3

What does that mean?

You Get What You Pay For!

4

Customers

• Sell Products between $1-$5

• Variety of Household Products

• Quality Products

• Great Customer Service

What We Offer

5

Investors• ROI of 0.20Source: www.YahooFinance.com

• $40 Billion Industry

• Growth Rate 3Xs more than Department Stores

Source: www.koleimports.com

What We Offer

6

What We Offer• “Best Year Ever in 2008 & Success Continues in

2009.”

• “Since 2001 Dollar Stores have grown 54%.”

Source: en-us.nielsen.com

• “Fastest growing and most Profitable business opportunities today.”

According to The Wall Street, USA Today & LA Times

Map Location

7

• 1902 N. Campus Ave Suite G in

Upland Ca. 91785

•5,000 sq. ft.

Hook

8

• We are the Nordstrom Rack of the dollar stores.

• Where your Dollar has real Power.

Target MarketIdeal Customer

• Bargain Shoppers

• Families of 2 or more

• Income of $70,000 +

• Age 35+

9

Demographics

Source: US Census & Yahoo.com10

City Average Income

Average Age

Average # in Household

Growth Rate Of Population

Upland $76,856 34 3 5.20%

Claremont $107,287 37 3 2.60%

Rancho Cucamonga $80,897 33 3 31.80%

Market Research

Survey by MarketResearch.com

• Who was surveyed? Residents of Upland, Rancho Cucamonga, and Claremont.

• How many Surveyed? 4,000

• Response Rate 76%

11

Survey QuestionsHow often do you shop at a discount store?

12

Results

Weekly-10%Bi-Weekly 25%Monthly 50%Never 15%

Market Analysis

13

Quality merchandise is important to me.

Results

Highly Important-55%

Somewhat Important-25%

Not Important-15%

Don't Care-5%

Market Analysis

14

Competitive AnalysisWho’s the Competition?Dollar Tree 99 Cent Stores

Family Dollar Dollar General

Competitive Analysis

14

Stores More Price Range

Higher Quality Name Brands Food

ProductsWide Variety of Products

99 Cent Stores

Dollar Tree

Family DollarDollar GeneralDollar Power Store

16

Merchandise

Products Our Price Dollar Power

Competitor Family Dollar

Party Supplies-Party Bag $1.00 $1.00

Cleaning Products-Bleach $2.00 $2.50

Baby Products-Shampoo $1.00 $1.50

Pet Supplies-Dog Treats $1.00 $1.85

Household Items-Hangers $1.00 $1.25

17

Price vs Cost

Gross Margin• Price $1.00• Cost (0.65)• Gross Margin:

$0.35

18

Advertising

• Internet

www.GoDaddy.com

19

• Printed AdsPennySaver

Inland Valley Daily Bulletin

Advertising

20

Promotion EventsOpening Day

Community Events

Side Walk Sale

Senior Citizen Day

21

Marketing BudgetMedia Monthly Yearly

Other Events $1,000 $12,000

Inland Valley Daily Bulletin $314 $3,768

PennySaver $740 $9,620

Hosted Website-GoDaddy.com $15 $180

Business Cards (2,500 Qty) $34

Even Costs-Opening Day $6,500

Total $32,102

Channel MembersPartner with:

17

John F. SmithChief Operating Officer

Presenting

Store Location

1902 N. Campus Ave, Suite GUpland, CA 91784

Store Front

Floor Plan

Store Picture

Store Picture

Schedule

Risk Matrix

Cost AnalysisItem Cost X Subtotal Total

Rental Deposit $4,000.00 $4,000.00

Rent $19,000.00 $19,000.00

Business License/Permit

$663.00 $663.00

Marketing $32,102.00 $32,102.00

Info. Tech. $12,815.00 $12,815.00

Payroll $10,720.00 $10,720.00

Inventory $25,000.00 $5sq.ft*5000sq.ft.

$25,000.00

Store Sign $3,000.00 $3,000.00

Total Start Up $107,300.00

Operating Strategy

Find Location

Lease

Permits

Utilities

Phone Lines Signs Network Purchase Inventory

Stock Shelves

Publish Number

Walk Troughs

Inventory Input

Installation Hardware InstallPricing Labels

Presenting

John F. SmithChief Human Resource Officer

HR Core Values

• Customer Service• Customer Appreciation• Customer Satisfaction• Rapid response to customer needs• Engage the Customer• Hire and Train Employees to adhere to these

values

Employee Recognition

• Training• Workforce Development and Empowerment• Pep Rallies/Meetings• Evaluations• Promotional Appraisals• Rewards, Employee of the Month

Organizational Chart

Eric Andrews, CFO Luis Valentin, CIO John F. Smith, COO

Lupe Gomez, CEO

Store Manager

Cashier Cashier

Floor Person Floor Person Floor Person

Wage and Cost Breakdown

Position Monthly Salary Hr. Rate Hrs. Tax (30.1%) Total Salary

Manager $15.00 40 $180.00 $600.00

Cashier $10.00 40 $120.40 $400.00

Cashier $10.00 40 $120.40 $400.00

Cashier $8.00 40 $96.32 $320.00

Cashier $8.00 40 $96.32 $320.00

Stock $8.00 40 $96.32 $320.00

Stock $8.00 40 $96.32 $320.00

• Lupe Gomez• Chief Executive Officer• 9 Years Marketing Experience• Keller Graduate School of

Management• Master’s in Business Administration

Dollar Power Team

• John F Smith• Chief Operations Officer• 10 years Operations Manager• 8 Years Human Resource Specialist• Keller Graduate School of

Management• Master’s in Project Management

Dollar Power Team

• Luis Valentin• Chief Information Officer• 15 years Information Technology• C.I.S.S.P. Certified• Keller Graduate School of

Management• Master’s in Information Systems

Management

Dollar Power Team

• Eric Andrews• Chief Financial Officer• 9 Years Certified Public Accountant• Keller Graduate School of

Management• Master of Accounting and Financial

management

Dollar Power Team

42

Presenting

Luis ValentinChief Information Officer

Presentation • Logo Design• Problem Analysis• Network Design Strategy• Driving Business Application • Cost Savings

43

Dollar Power Logo• Let us renew your faith in the mighty dollar• Let us empower you • Let us provide big savings• Let us help you

44

Starbucks Like

Mr. Bottom Dollar

Problem Analysis • Facilitate the Business Process• Capture Information• Management Information• Business Intelligence• Business Strategic Planning

45

•Credit Card Purchases•ATM Purchases•Cash Transactions•Returns

•Customer Information•Transaction Information•Inventory Tracking

•Sales•Inventory•Returns

•Best Selling Item•Customer Demographics•Returned Inventory

•Merchandise Inventory•Advertisement•Sales

Network Design Strategy• Reliable• Efficient• Redundant• Secure• Scalable• Within budget

46

How It All Works

47

Router

Switch

File Server

On-Site Back-Up Server

Register 1Register 2

Workstation

Leased Data Line

Hosted Website / E-mail Service Off-Site Recovery Center

Video Surveillance System

Anti-Virus

NIDS

Video

Uninterruptible Power Supply

Port Closures Firewall Restrictions

Redundancy

Hosted Services

Firewall

Firewall

Network Architectural Plan

48

Business Application

49

QuickBooks Point of Sale Pro V9– Support Peripherals–Manages Sales Transactions–Customer Information– Inventory Tracking– Accounting–Management Reports–Business Intelligence Analysis Reports

Cost Savings

• Outsourced• RFP• Feasibility Test• Bundle Savings• Service Level Agreements– Service Cost–24/7

50

What Does It Mean To You• Sound Network • Strategic design • Business process support– Efficient and Reliable– Secure– Protect business assets

• Real business value / Business Intelligence• Increase the ROI potential

51

Presenting

Eric AndrewsChief Financial Officer

52

Financial Summary

53

Return on Investment 20%

Economic Value Created ($thousands) $ 265

Key Assumptions

54

Sales Growth Rates 4.00%

Loan Amount Requested ($thousands)

220

Loan Maturity (years) 5

Annual Interest Rate 5.00%

Annual Capital Expenditures > Depreciation Expense

Team Contributes $10,000 to Create a C Corporation

Income Statement

55

2011 2012 2013 2014 2015

Sales 10,000 10,040 10,082 11,125 11,170

Operating Income 2,105 2,189 2,277 2,368 2,463

Net Income 1,256 1,307 1,359 1,414 1,471

Balance Sheet

56

2011 2012 2013 2014 2015

Total Assets 1,496 2,804 4,164 5,578 7,050

Liabilities 230 230 231 231 232

Owner's Equity 1,266 2,573 3,933 5,347 6,818

Liabilities & O/E 1,496 2,804 4,164 5,578 7,050

Key Ratios

57

2011 2012 2013 2014 2015

ROI 83.96% 46.61% 32.65% 25.35% 20.87%

Net Income Margin 12.57% 12.57% 12.57% 12.57% 12.57%

Gross Margin 25.00% 25.00% 25.00% 25.00% 25.00%

Tax Rate 40.00% 40.00% 40.00% 40.00% 40.00%

Net Income Growth - 4.02% 4.02% 4.02% 4.02%

Times Int. Earned 191.36 199.02 206.98 215.26 223.87

Break Even Analysis

58

2011 2012 2013 2014 2015

Operating Expenses $395,000 $410,800 $427,232 $444,321 $462,094

Avg. Price per Unit $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00

Cost per Unit $ .65 $ .65 $ .65 $ .65 $ .65

Units to Breakeven 1,128,571 1,173,714 1,220,663 1,269,489 1,320,269

Breakeven Revenues $ 1,129 $ 1,174 $ 1,221 $ 1,269 $ 1,320

Expected Revenues $ 10,000 $ 10,400 $ 10,816 $ 11,249 $ 11,699

59

Required Investment

• The Total Startup Investment Required:$220,000

• Loan Details:Maturity: 5 yearsInterest rate: 5%

60

Plan BSelling Business

61

The Next StepFranchising

62

Any Questions?