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Dollar PowerWhere your Dollar has Real Power
By Lupe Gomez-CEO, Eric Andrews-CFO, John Smith-COO and Luis Valentin-CIO
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El Que Compra Barato, Compra
Cada Rato.
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What does that mean?
You Get What You Pay For!
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Customers
• Sell Products between $1-$5
• Variety of Household Products
• Quality Products
• Great Customer Service
What We Offer
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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
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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
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• 1902 N. Campus Ave Suite G in
Upland Ca. 91785
•5,000 sq. ft.
Hook
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• 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+
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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%
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Survey QuestionsHow often do you shop at a discount store?
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Results
Weekly-10%Bi-Weekly 25%Monthly 50%Never 15%
Market Analysis
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Quality merchandise is important to me.
Results
Highly Important-55%
Somewhat Important-25%
Not Important-15%
Don't Care-5%
Market Analysis
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Competitive AnalysisWho’s the Competition?Dollar Tree 99 Cent Stores
Family Dollar Dollar General
Competitive Analysis
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Stores More Price Range
Higher Quality Name Brands Food
ProductsWide Variety of Products
99 Cent Stores
Dollar Tree
Family DollarDollar GeneralDollar Power Store
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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
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Price vs Cost
Gross Margin• Price $1.00• Cost (0.65)• Gross Margin:
$0.35
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Advertising
• Internet
www.GoDaddy.com
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• Printed AdsPennySaver
Inland Valley Daily Bulletin
Advertising
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Promotion EventsOpening Day
Community Events
Side Walk Sale
Senior Citizen Day
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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:
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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
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Presenting
Luis ValentinChief Information Officer
Presentation • Logo Design• Problem Analysis• Network Design Strategy• Driving Business Application • Cost Savings
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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
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Starbucks Like
Mr. Bottom Dollar
Problem Analysis • Facilitate the Business Process• Capture Information• Management Information• Business Intelligence• Business Strategic Planning
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•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
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How It All Works
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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
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Business Application
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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
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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
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Presenting
Eric AndrewsChief Financial Officer
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Financial Summary
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Return on Investment 20%
Economic Value Created ($thousands) $ 265
Key Assumptions
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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
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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
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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
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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
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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
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Required Investment
• The Total Startup Investment Required:$220,000
• Loan Details:Maturity: 5 yearsInterest rate: 5%
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Plan BSelling Business
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The Next StepFranchising
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Any Questions?