New York City Business Plan Competition 2010-2011

VELOCITY INTERNATIONAL\

WELCOMEEst. 2005

Statement of Purpose• To educate current and potential investors on the company’s

recent and projected performance as well as the company’s goals and objectives and its ability to achieve them.

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Mission Statement• We are committed to promoting an active, healthy lifestyle

through the sale of our extreme sports products. Also, to maintain ethics which correlate to our eco-friendly, health-conscious efforts by offering products in-tune with our environmental and human needs.

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Active Healthy Lifestyle

Eco Friendly mindset

Maintaining ethics

Business Goals and Objectives• Increase Customer Satisfaction• Achieve Annual Sales Exceeding $211,000• Establish Firm as an Eco-Friendly and Health-Conscious Org.• Reduce Accounts Receivable by a Minimum of 50%• Expand Presence in International Market• Secure a Loan of $100,000

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Company Description

• Established December 2005• Company Structure : C-Corporation• Forest Hills, NY• Sell Bikes, Skateboards, Snowboards, Inline

Skates, Electric Scooters, Surf boards and Accessories

• 19 Multicultural Diverse Employees

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

VP – Admin. &

HRArsen

Shimonov

VP – Sales and

MarketingKaren Ramirez

ArpitAssistant

VP

JasonAssistant

VP

Daniela

Kevin

CEOFahad

Anis

VP – Web Design

Rachel Jones

Ho KwongAssistant

VP

Andrew

Daniel

Clifford

VP – AccountingSheyenne Mammina

AngelAssistant

VP

Aashish

Mohit

Anzhelika

Peter

Jasmine

Management Functions

Marketing Plan

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Industry and Competitive AnalysisReal World Virtual World

•Bikes: 18.5 Million Were Sold•Competition:

•Main competition is located in Queens•Snowboards: Decrease 9%

•Skateboards: $2.41 Million Were Sold

•Inline Skates: 26% Increase•No other firm offers the assortment of products like we do

•Scooters: 41.5% Increase

•Surfboards: 7.48 Billion Were Sold

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Target Market• Age- 13 to 25

•Income- V.E . Employee Wage Rate

Geographic Demographic Psychographic

• International -North America -South America -Asia -Europe

• United States• Trade Fair Attendees• VE Employees

• Environmental Conscious(Go Green)

• Health Conscious Extreme Sport Oriented

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Marketing Mix- The 5 P’sProduct

•Bikes•Snowboards•Skateboards•Inline Skates•Scooters (Electric Scooters)•Surf Boards•Accessories

For Both Male and Female

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Marketing Mix (Continued)

Price

• Range from $0.99 (Accessories) to over $20,000 (Bikes)

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Marketing Mix (Continued)

Placement

•Trade Fairs•Website•Direct Mail

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Marketing Mix (Continued)

Promotion

•Flyers•Trade Fairs•Website•Newsletters & Magazines

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Marketing Mix (Continued)

Positioning

• Leader in Extreme Sports Equipment • Eco Friendly / “Green” Company• A Company that Supports its Local Community

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Company Operations

•Acquiring Products

• Storing Products

•Distribution of Products

• Location Benefits

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Economic Conditions

• Prime Interest Rate is 3.25%

• National Unemployment Rate is 9.6%

• Current Rate of Inflation is 1.2 %

• Real GDP Growth is 1.7%

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Strengths Weaknesses• Excellent Communication

• New Fully Functional Website

• Multicultural Background of Our Employees

• High Educational Level of Employees

• The High Payroll

•Accounts Receivable

SWOT Analysis-Internal Audit

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Opportunities Threats

•Trade Fairs

• Public Awareness of “Going Green”

• Mass Media’s Focus on Healthy Lifestyles

•New Loan

•Social Responsibility Programs

•Locally Competitive Firm

• The Turbulent Economy

SWOT Analysis-External Audit

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011

• Turbulent U.S Economy• Philanthropy Programs• Collections and Accounts Receivable• International Expansion

Est. 2005

Business Risks

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Balance SheetAs of 10/31/2010

Assets

Total Current Assets……….… $112,443 (A) Total Fixed Assets……….…... $10,800

Total Assets ……………………………………………..…… $123,243

Liabilities and Shareholders’ Equity

Total Current Liabilities….....$1,678 Long Term Liabilities………….$0 (B)

Shareholder’s Equity Capital Stock………………..….. $90,000 Retained Earnings……………. $31,565

Total Liabilities and Shareholders’ Equity…..…. $123,243

Footnotes(A) – New Accounts

Receivable Strategy

(B) – Secure New Loan

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Projected Income StatementFor the Year Ending April 30, 2010

Projected April 30, 2011

ProjectedApril 30, 2012

Sales Revenues Bikes……………………………… $191,580 Skateboards………………….. $45,320 Snowboards………………….. $33,990 Scooters/Inline Skates…... $15,000 Net Sales……………….……………. $281,602 Cost of Goods Sold………….….. $168,961 Gross Profit........................... $112,641 Total Operating Expense....... $93,920 Income from Operations....... $18,721 Corporate Income Tax........... $2,808

Net Income After Taxes………..$15,913

$204,600 $48,400$36,300$16,500$301,213$180,728$120,485 $95,170 $25,315$3,797

$21,518

$225,060 $53,240$39,930$18,150$331,334 (A)$198,800 (B)$132,534$95,500 (C)$39,034$5,855

$33,179

Footnotes(A) - Based on 5%

Increase(B) - Based on 40%

Markup(C) - Depreciation

Expenses

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Projected Cash FlowsFor the Year Ending April 30, 2010

ProjectedApril 30, 2011

ProjectedApril 30, 2012

Cash Beginning Balance $75,000 $84,000 $99,000

Receipts of Cash:

Sales $270,602 $295,000 $315,000 (A)

Total Cash Receipts $290,450 $305,000 $335,000

Payments of Cash:

Cost of Merchandise $168,961 $180,728 $198,800

Salaries $41,000 $46,000 $46,000 (B)

Total Cash Payments $281,450 $290,000 $302,000

Ending Cash Balance

$84,000 $99,000 $132,000

Footnotes(A) - Trade

Fairs(B) – Our

Largest Revenue Generator

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

Break-Even Analysis

*1 Unit is One Bike at a Cost of $325.

*Must Sell 652 Units to Break Even

Summary Increase Sales & Customer Satisfaction - New Product Lines &

Customer Incentives Reduce Accounts Receivable- VE Law Increase Presence in International Market- New Loan to Expand

Company Establish Firm as Eco and Health Conscious- Initiating Philanthropy

Outreach Programs , New Eco and Health Conscious Products

VELOCITY INTERNATIONALForest Hills, Queens

2010-2011Est. 2005

New York City Business Plan Competition 2010-2011

VELOCITY INTERNATIONAL

Thank You!Est. 2005