Strategic Sourcing - Deck

ONE SOURCE

UNLIMITED SOLUTIONS

Rhino eMarketing, LLC dba…

"Businesses spend about 19 billion dollars plus or minus on

promotional products, and about 150 or 170 billion on printing…people

are still buying print, people are still buying promotional products and

many of them are looking for people to add value to those products—

not just sell on the cheapest price."

CEO ~ Greg Muzzillo Proforma

“There are no pronounced leader with a dominating market share within

our 19.8 billion dollar industry”

IBIS World ~ Justin Ruthven

Rhino eMarketing, LLC d/b/a Strategic Sourcing (hereinafter “Strategic Sourcing”) Offers:

Strategic Sourcing is a wholesale/distributor providing Print, Promotional Products and Apparel B-2-B.

S2 mission is to empower any sized business, offering marketing and procurement sourcing benefits with cost, exposure and time savings.

S2 sourcing ability includes end-column pricing from 150+ primary industry suppliers, nationally and internationally.

S2 internal information service maximizes data flow between suppliers, customers and our team.

S2 offers numerous beneficial programs from total project management to apparel revenue share.

Overall S2 has been established to A) Help any size business benefit through sourcing aggregates and B) Empower our sales staff to be more effective and happy.

Print, Promotional Products, Apparel

Our Market is $19.8 Billion (promotional Products), $22 Billion (Apparel), $167 Billion (Printing)

Up 7.21% Growth

8 out of 10 Businesses use distributors/wholesalers

Average profit margin of 53%

Industries serving: Education, Financial, Not-for-profit, Health Care, Construction, Trade, Real Estate, Government, Professional, Hospitality

88% recalled the advertiser from a promotional product received in the last 12 months

Brand Awareness

12.67% (11.30%) New

Customer/Account

Generation

10.84% (11.52%)

Trade Shows

10.45% (9.28%)

Public Relations

9.58% (10.71%)Dealer/Distributor

Programs

9.41% (7.59%)

Employee

Relations

and Events

9.40% (9.14%)

Employee Service

Awards

6.59% (4.72%)

New

Product/Service

Introduction

6.16% (9.13%)

Not-for-Profit

Programs

5.50% (7.86%)

Safety Education

5.44% (4.18%)

Internal

Promotions

4.85% (4.44%)

Customer Referral

4.35% (3.76%)

Other

3.56%

(4.98%)

Marketing

Research

1.20%

(1.38%)

Category of Sales

Statistics sited from PPAI Reports

Lack of Service Directed Towards Small and Medium Size Businesses

Uneducated Purchases

Sourcing Inaccuracies and Limitations

Limited Purchasing and Marketing Sourcing Choices

Marketing Project Retention

Up-to-Date Knowledge Base

Lack of Time to Actually Sell

Bogged down with Backend Office Obligations

Limited Customer Service Support

Missing Marketing and Sales Tools

Shrinking Commissions

Rigid Company Culture

Operating Systems that don’t Work

Nickel & Dimed Costs of Selling

For Our Customers For Our Sales Associates

No extra fees…Period

Dedicated customer service person

Product searches and presentations provided by dedicated customer service rep

End-column pricing from 150+ primary industry suppliers

Client proposals, sales orders, acknowledgements, order entry, all handled internally

Order tracking to insure in-hand dates are met, every order

No accounts receivable collections, handled internally

Aggressive commission structure

Sales collateral, business cards provided at no charge

Full Service Offerings no matter the size of the business

eCommerce Solutions

Total Project Management

Managing costs and reducing time

Branding across multiple locations

Supply-chain management

Reduction of time management with multiple vendors

Integration of online and offline marketing

Added value from economies of scale

Extensive breadth of services and products

Reality, we make procurement and marketing easy

There are many distributor/wholesalers but few with successful models targeting our demographics.

True Competitors Proforma – By far the largest with 820+ reps. Challenges occur with the support and

additional costs that are charged. Everything from sales materials to business cards.

Safeguard – Most online advanced. Offerings are pretty deep but concentrate on mostly print.

iPromoteu – More concerned with bringing sales associates aboard. The rep still stays independent but utilizes their internal structure. The independent is responsible for all operations.

American Solutions – Has been around since 1981. They were at their best in the 90’s with challenges occurring in the early 2000’s.

AIA – Was growing dramatically, then had a power struggle internally. Reps show concern with lack of customer service and product sourcing with additional fees.

Strategic Sourcing’s advantage over the most recognizable competition is our ability

to generate strength to any size business and provide our sales associates with

better sales tools, extensive support and generous commissions.

6 Demographics 4 Regions with Regional Managers (Midwest, South, East, West) and 20+ sales associates within each region

College Sales Model with Manager coordinating 1-3 student associates per college within 85 colleges

Hospitality Model with Manager coordinating 20+ sales associates within 4600 targets

4 Product/Service Lines Print – Management of print, simplifying business processes by analyzing purchases, enhancing

productivity and reducing costs

Promotional Products – Over 1 million products to offer through business marketing initiatives

Apparel – Very unique apparel programs, including revenue share, online designer tools and company storefronts

Total Project Management – Offering a mix of services that facilitates the customer with procurement and marketing end-to-end solutions

Scalable Ability Extremely robust system integrating SAGE, Deco Network and Customer Focus Systems into one MIS

Average profit margins ranging from 25% - 70%

Sourcing Strategies Includes 3 buying groups managing over 500 suppliers

Print sources are arranged demographically to support each region of sales

Todd Kempinger (CEO)

30 years of accomplished Business Leader & Entrepreneurship bringing a strong track record of performance in start-up, turnaround and high-paced organizations. Prior to establishing Strategic Sourcing, Todd founded Rhino Graphics, The Luggage Club and was involved with several other start-ups.

Bernie Emmons (Recruiting and Sourcing)

Over 40 years of experience serving the print and promotional products industry. Bernie brings a wealth of knowledge within the industry that allows S2 the ability to take advantage of personnel and sourcing.

John McCollins (Sales Management)

For the past 40 years John has been involved in the printing and promotional world taking on roles from controller to sales manager to general manager.

Financials are based on an accelerated growth of recruitment of sales associates. Growth ranges from minimal sales associates to over 100+ within 5 years.

All associates are 1099 independent contractors.

Average first year sales of $433,000 per sales associate. Source PPAI.

Sales Management includes 4 regional managers, 1 hospitality manager and 1 college coordinator benefiting from a 8% override on all sales associates invoiced orders.

Even though margins range from 25% - 70%. Financials calculate a 35% margin.

Terms reflect 30 days payable and receivables.

Pro Forma anticipates up to $250,000 investment for this round.

Strategic Sourcing

Forward Looking Financial Statement

Profit & Loss Year 1 Year 2 Year 3 Year 4 Year 5 InvestmentNet Sales $1,275,481 $7,883,849 $17,621,398 $30,788,225 $53,622,258 Founder $55,000

Gross Profit $277,264 $2,199,521 $5,564,435 $9,761,519 $20,954,554 Preferred $0

EBITDA ($239,488) $343,702 $2,005,601 $4,069,164 $11,686,950 Common $250,000

Net Income ($239,488) $298,994 $1,092,246 $2,201,418 $7,749,032 Total $305,000

LoansCash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Total $0

Net Income ($239,488) $298,994 $1,092,246 $2,201,418 $7,749,032 Interest Paid $0

Cash Inc. / Dec.) ($46,777) $95,418 $1,098,203 $1,993,865 $3,676,704 Principal $0

Beginning of Period $0 ($46,777) $48,641 $1,146,845 $3,140,709 End Balance $0

End of Period ($46,777) $48,641 $1,146,845 $3,140,709 $6,817,413

Net Income ($239,488) $298,994 $1,092,246 $2,201,418 $7,749,032 Cash

Breakeven No Breakeven

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5 Least Cash -$314,526

Total Assets $210,479 $1,114,031 $3,059,655 $6,478,957 $12,448,600 Most Cash $6,817,413

Total Liability $199,967 $804,525 $1,657,903 $2,875,788 $1,096,399

Equity $10,512 $309,506 $1,401,752 $3,603,170 $11,352,201

Total Liab. & Equity $210,479 $1,114,031 $3,059,655 $6,478,957 $12,448,600

Valuation $1,913,221 $11,825,773 $26,432,097 $46,182,338 $80,433,387

Revenue (1.5x multiple)

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you like.

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Year 1 Year 2 Year 3 Year 4 Year 5

Profit & Loss

Revenue Expenses Net

Strategic Sourcing Pro Forma Financial StatementsPrepared June 9, 2015

($1,000,000)

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000Cash Flow

($2,000,000)

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58

BreakevenAll the financial information is speculative and reflects Strategic Sourcing's business and financial objectives that are in no way guaranteed or otherwise

assured. Actual results could be substantially less or greater than those included. Strategic Sourcing makes no representation or warranty as to

the attainability of those assumptions or whether future results will occur as projected.

Strategic Sourcing

Forward Looking Balance Sheet

All the financial information is speculative and reflects Strategic Sourcing's business and financial objectives that are in no way guaranteed or otherwise



Strategic Sourcing

Forward Looking Cash Flow Statements




Strategic Sourcing

Forward Looking P&L Statements



the attainability of those assumptions or whether future results will occur as projected

Strategic Sourcing Investor Details

**Additional Option of Convertible Note is available.




Funding round is broken into five timelines within

our full round.

Strategic Sourcing

Projected Start-Up Costs

Strategic Sourcing is seeking up to $250,000 investment to guide us through the set-up stages which

consists of recruiting, training sales associates, finalizing our team and building our infrastructure.

This opportunity offers investors a chance to be part of a business

with scalability, great profit margins and fantastic returns.

CONTACT US TODAY

Strategic Sourcing

PO Box 291

Oshkosh, WI 54903

920-379-5111

www.strategicsourcing2.com

[email protected]

http://www.strategicsourcing2.com/

mailto:[email protected]