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VOLARE GEAR Inc. 2009: ABSTRACT WELCOME Mr. Cuban to Volare Gear Inc., an innovative and revolutionary product to promote motorcycle safety and style. Volare Gear Inc.; is on the verge of an amazing transition into a heavily increasing market. We are offing a multi-million dollar corporation, with huge returns for potential investors all based off of obtaining less than 1% of our U.S. market. We will also go global from day one, as our product will be adopted worldwide. Everywhere you turn you see more and more motorcycles on the road. From crouch rockets, to mopeds, to custom built Harley’s, the fact is that motorcycles have increased drastically over the last 10 year period. There are many reasons for the increase, one of which is; economic concerns due to higher gas prices. Likewise with the increase in riders there has also been an increase in motorcyclist fatality rates. According to the National Highway Safety Commission and the Department of Transportation, the motorcycle fatality rate has increased by over 127% since 2006. The second most common factor for all motorcycle related fatalities is the inability of other drivers on the road not having a clear visibility of the motorcyclist. In United States market alone there are over 6.7 million registered riders, with over 45,000 pubic sector motorcycles in use. (DOT) These facts alone only represent the United States, however this is a truly global product where there will be no limits to the success of the company as we reach for Asia, Europe, and South America. Volare Gear Inc. has developed a state-of-the-art, motorcycle safety vest that allows 360 degrees complete visibility of the rider when in use. Volare Gear’s fully patented vest allows “A WAY TO BE SEEN,” (corporate tagline) for all motorists on the road. The vest itself has a wide range of capabilities that allows the motorcyclist to signal when making turns, stops, or using its hazards. The vest has been through R&D for over 6 years and is now ready for production. We have abilities for second passengers, cell phones, MP3 Player, and 2-way radio adapters etc. We are currently pursuing three main target markets. They include, Military bases, Police Officers, Leisure Riders, and various Government Agencies. Our intentions are to make our product a requirement for all riders to ensure their safety. Financially our figures are gathered off of obtaining less the 1% of our total U.S. market within five years. We did a marketing analysis of 100 motorcyclist and 87 of them would purchase the product that is an extremely good percentage once again our figures do not calculate the 100 million + riders around the world. However, we will assure a breakeven point within 60 days, and a profit within 90 days with the website open for business, Volare Gear Inc. has the capability to be completely self sufficient within a 3 month period. Our initial funding request will be approximately 240,000.00 US Dollars. This will suffice to erect the company and initialize production. Volare Gear Inc. is a completely flat organizational structure, with room to grow, likewise; this product will generate a substantial number of jobs within this country alone. For instance, Volare Gear is projected to be worth over 23,000,000.00 in 5 years. Not only will jobs be generated internally, but also all the way down our supply chain, retail, transportation, logistics, legal, and R&D. Volare Gear will be a contributor to assist in stimulating the economy. I will offer a 20% return on debt generated within our 90 day dead line. After the 3 month period, you will once again be in position to join our team with 20% of the company. Mr. Cuban this is technology driven company we want to set the standard with the best materials, quality control and design for safety. I strongly believe with your investment and your input in our vision will help us become a Reality Thank You, Mario Maese/President Dan Dorsett/ Vice President
Citation preview
““A WAY TO BE SEEN”A WAY TO BE SEEN”
Copyright 2009: Dan DorsettCopyright 2009: Dan Dorsett
VOLARE GEAR Inc, VOLARE GEAR Inc, 4609 Esparza Ln.4609 Esparza Ln.El Paso, TX 79934El Paso, TX 79934
President/Founder: Mario MaesePresident/Founder: Mario [email protected]@yahoo.com
(915) 727-3443(915) 727-3443
Vice President: Dan DorsettVice President: Dan [email protected][email protected]
(915) 740-0970(915) 740-0970
STATISTICSSTATISTICS
Fatalities among motorcycle riders have increased by more than 127% since Fatalities among motorcycle riders have increased by more than 127% since 1997. (NHTSA, 2007)1997. (NHTSA, 2007)
Per vehicle miles traveled, motorcyclists are about 21 times as likely as passenger Per vehicle miles traveled, motorcyclists are about 21 times as likely as passenger car occupants to die in a traffic crash and four times as likely to be injured. car occupants to die in a traffic crash and four times as likely to be injured. (NHTSA, 2001)(NHTSA, 2001)
Motorcycle deaths now represent fully Motorcycle deaths now represent fully 10.5 percent of all annual motor vehicle 10.5 percent of all annual motor vehicle
fatalitiesfatalities..
Executive SummaryExecutive Summary ““Volare Gear has the potential to Volare Gear has the potential to
decrease the motorcycle accident decrease the motorcycle accident and mortality rates drastically over and mortality rates drastically over the next few years.” the next few years.”
Volare Gear is on the cutting edge Volare Gear is on the cutting edge of a revolutionary transition in of a revolutionary transition in motorcycle safety. Our goal is to motorcycle safety. Our goal is to visually increase motorcycle visually increase motorcycle awareness through innovation, awareness through innovation, technology, and fashion.technology, and fashion.
With motorcycle riders and sales With motorcycle riders and sales reaching an all time high, Volare reaching an all time high, Volare Gear prides itself as being in the Gear prides itself as being in the forefront of a largely increasing forefront of a largely increasing industry. Our motorcycle safety vest industry. Our motorcycle safety vest is fully patented, licensed, and is fully patented, licensed, and ready to use. ready to use.
Volare Gear will seek Volare Gear will seek endorsements from Public and endorsements from Public and Governmental agencies Governmental agencies throughout the United States throughout the United States and anticipate a more global and anticipate a more global support structure.support structure.
Capitalization through safety Capitalization through safety and innovation will and innovation will predominately position us as an predominately position us as an industry leader in motorcycle industry leader in motorcycle safety for years to come. safety for years to come.
Volare Gear is seeking venture Volare Gear is seeking venture capitalist and start-up investors, capitalist and start-up investors, to provide a security blanket for to provide a security blanket for implementation and mass implementation and mass production processes that are production processes that are currently underway.currently underway.
Product DescriptionProduct Description“Protect, Reflect, & Illuminate”“Protect, Reflect, & Illuminate”
Volare Gear has developed Volare Gear has developed a state-of-the art a state-of-the art motorcycle safety vest that motorcycle safety vest that is connected electronically is connected electronically to the main wire-harness in to the main wire-harness in the motorcycle. the motorcycle.
The vest has incorporated The vest has incorporated the standard safety the standard safety functions of the motorcycle, functions of the motorcycle, such as; to stop, to make such as; to stop, to make turns left or right, and to turns left or right, and to illuminate the rider so that illuminate the rider so that he or she can be seen with he or she can be seen with ease from other motorist on ease from other motorist on the road. the road.
Mission StatementMission Statement
Volare Gear will offer “a way to be Volare Gear will offer “a way to be seen” for all customers to protect, seen” for all customers to protect, reflect, and illuminate. reflect, and illuminate.
We actively promote our products We actively promote our products to enable a feeling of safety and to enable a feeling of safety and security for all drivers on the road. security for all drivers on the road.
Our goal is to visually increase Our goal is to visually increase motorcycle awareness through motorcycle awareness through innovation and technology. innovation and technology.
We will strive to produce our We will strive to produce our products with the highest quality products with the highest quality of compatibility, comfort, and of compatibility, comfort, and design. We will adapt to all of our design. We will adapt to all of our customers needs. customers needs.
Vision StatementVision Statement
Volare Gear will conform to the safety, quality, durability, Volare Gear will conform to the safety, quality, durability, and protection of our consumers’ expectations.and protection of our consumers’ expectations.
Our keys to success include gaining recognition and Our keys to success include gaining recognition and support through endorsements and consumer awareness. support through endorsements and consumer awareness.
Our emphasis is to promote motorcycle safety and Our emphasis is to promote motorcycle safety and awareness not only for the rider but also to provide a sense awareness not only for the rider but also to provide a sense of security for the people that are most important to the of security for the people that are most important to the rider such as friends, family, and other loved ones.rider such as friends, family, and other loved ones.
Through innovation and creativity we will position ourselves Through innovation and creativity we will position ourselves as a pioneer in the transportation safety industry.as a pioneer in the transportation safety industry.
Corporate ValuesCorporate Values Volare Gear will actively and Volare Gear will actively and
continuously provide integrity and continuously provide integrity and ethical business practices with ethical business practices with regards to all stakeholders regards to all stakeholders involved within or around the involved within or around the organization. organization.
We are committed to all of our We are committed to all of our customers and employees alike, customers and employees alike, and will work as a team to provide and will work as a team to provide the trust needed to be a strong the trust needed to be a strong competitor within the industry. competitor within the industry.
We will enforce honesty and We will enforce honesty and openness to all stakeholders openness to all stakeholders involved and will remain focused involved and will remain focused on social responsibility and on social responsibility and corporate citizenship with regards corporate citizenship with regards to the community and all drivers to the community and all drivers on the road. on the road.
Volare Gear is entrepreneurial Volare Gear is entrepreneurial in its endeavors through in its endeavors through innovation and creativity as innovation and creativity as being a one of a kind product being a one of a kind product introduced to this market. introduced to this market.
We are driven to succeed We are driven to succeed through adaptability and through adaptability and innovation. innovation.
We strongly encourage We strongly encourage environmental safety and environmental safety and protection as our products will protection as our products will be energy efficient and non-be energy efficient and non-toxic. toxic.
Contributions Contributions STRENGTH:STRENGTH:
- One of a kind revolutionary - One of a kind revolutionary design concept to design concept to promote motorcycle safety.promote motorcycle safety.- Fully functional Patented and - Fully functional Patented and Licensed product Licensed product - Additions and enhancements - Additions and enhancements for future growth for future growth opportunities.opportunities.- Durable and adaptable - Durable and adaptable product designproduct design- Safe and easy to function - Safe and easy to function parts and accessoriesparts and accessories- Low cost of goods and - Low cost of goods and development overheaddevelopment overhead- Adaptability to end user- Adaptability to end user
PRODUCTIVITY:PRODUCTIVITY:
-Trickle Down Job Creation:-Trickle Down Job Creation:
Manufacturing, Manufacturing, Logistics, Logistics, Supply Chain, Supply Chain, R&D, Sales, R&D, Sales, Administration, Administration, Distribution,Distribution,
Legal Legal
ContributionsContributions
OPPORTUNITY:OPPORTUNITY:
-To reduce the number of -To reduce the number of motorcycle accidents motorcycle accidents and mortality rates.and mortality rates.
- Large ROI (Return on - Large ROI (Return on Investment) potentialInvestment) potential
- Focused target markets- Focused target markets
- Large consumer appeal - Large consumer appeal
- Global market place- Global market place
- Investment opportunities - Investment opportunities and joint venture and joint venture outlooks.outlooks.
Positive Reinforcement:Positive Reinforcement:
- Break even in 60 days- Break even in 60 days
- Profit in 90 days- Profit in 90 days
-20% Equity Return Secured-20% Equity Return Secured
- Instantly Global - Instantly Global transformationtransformation
- Stimulation of economies- Stimulation of economies
- Safety, Security, & Style- Safety, Security, & Style
Industry AnalysisIndustry Analysis
As with any new product As with any new product emergence, one of the emergence, one of the most critical forces most critical forces involves gaining consumer involves gaining consumer awareness and appeal. awareness and appeal.
Volare Gear’s goal to Volare Gear’s goal to establish consumer establish consumer interest even prior to the interest even prior to the product being released for product being released for public use. public use.
Our product will Our product will revolutionize the industry revolutionize the industry by incorporating safety and by incorporating safety and style in a way that will help style in a way that will help provide security and provide security and confidence to our riders confidence to our riders and their loved ones alike. and their loved ones alike.
Volare Gear will provide a Volare Gear will provide a large compatibility of styles large compatibility of styles and sizes to accommodate and sizes to accommodate the needs and interest of the needs and interest of our customers.our customers.
MARKET ANALYSISMARKET ANALYSIS
Motorcycle Industry- Has Motorcycle Industry- Has continued growth patterns over continued growth patterns over the last decade. the last decade.
Gaining the support and Gaining the support and recognition from Federal, State recognition from Federal, State and Local law enforcement and Local law enforcement agencies to endorse our products agencies to endorse our products and promote consumer and promote consumer awareness. awareness.
Our goal is to become a global Our goal is to become a global Icon for motorcycle safety in the Icon for motorcycle safety in the Motorcycle Enthusiast Industry Motorcycle Enthusiast Industry within the next five years within the next five years
We will seek strong investment We will seek strong investment and joint venture opportunities to and joint venture opportunities to help gain market advantages. help gain market advantages.
e-Commerce, World Wide Webe-Commerce, World Wide Web Targeting RetailersTargeting Retailers Trade ShowsTrade Shows Biker RalliesBiker Rallies Motorcycle Training AcademiesMotorcycle Training Academies All Public Sector Divisions All Public Sector Divisions
(Military, Police, Customs etc…)(Military, Police, Customs etc…) Plain View, Word-Of-MouthPlain View, Word-Of-Mouth Develop strategic alliances with Develop strategic alliances with
manufacturers of Motorcycle manufacturers of Motorcycle equipmentequipment
InfomercialsInfomercials
COMPETITIONCOMPETITION Homemade LED Kits for Homemade LED Kits for
DIY, with blinking DIY, with blinking patternspatterns
Willie Bogners, Olympic Willie Bogners, Olympic Lighted Ski SuitsLighted Ski Suits
Solar powered lighted Solar powered lighted bicycle vest Europebicycle vest Europe
Lighted Jacket- with Lighted Jacket- with blinkers, but displays no blinkers, but displays no stops or hazard stops or hazard signalingsignaling
IMPLEMENTING STRATEGIESIMPLEMENTING STRATEGIES
Visually increase Visually increase motorcycle awareness motorcycle awareness through innovation and through innovation and technology. technology.
Volare Gear will seek Volare Gear will seek endorsements from Public endorsements from Public and Governmental and Governmental agencies throughout the agencies throughout the United States and United States and anticipate a more global anticipate a more global support structure in the support structure in the near future. near future.
We will boost consumer We will boost consumer awareness by targeting awareness by targeting local police and city local police and city agencies to promote our agencies to promote our product. product.
We will also focus on We will also focus on distributing Volare Gear distributing Volare Gear motorcycle safety vest to motorcycle safety vest to local stores and local stores and distributors of motorcycles distributors of motorcycles and products. and products.
IMPLEMENTING STRATEGIESIMPLEMENTING STRATEGIES
““Volare Gear will take Volare Gear will take drastic measures to drastic measures to incorporate building incorporate building strong customer strong customer awareness, investment awareness, investment relationships, and relationships, and implementing the initial implementing the initial product launch of the product launch of the Motorcycle Safety Motorcycle Safety Vest.” Vest.”
STRATEGIC DESIGN CONCEPTSSTRATEGIC DESIGN CONCEPTS
EXPENSES Description Amount YTD Contacts
R and DID Group Inc. Prototyping $ 15,000.00
Administrative Costs $ 60,000.00
Lawyer Trademark, Consultation $ 2,000.00
Trademark $ 500.00
Incorporated Volare Gear $ 350.00
Transportation $ 20,000.00
Logistics $ 15,000.00
Reserve Energy Pack $ 7,000.00
R & D Total $ 119,850.00
Vest Materials approx 5000 UM Unit Price Quantity Description Total Suppliers
Velcro $ 66.30 0
4" 75-50 yards rolls (15%@1500) $ - http://www.jfreeman.com/velcro.html
Cordura 220yrdrll $ 2,366.00 10navy blue 500 vests $ 23,660.00 http://www.ahh.biz/fabric_catagories/heavy_fabrics.htm
Clear Plastic G20 20 Gauge $ 2.30 $ 2,856.00 714yrds*2.30 $ 6,568.80 http://www.novatexintl.com
Moonlight Reflective $ 25.00 500125yards /25 $ 12,500.00 http://www.novatexintl.com
AFRO Perforated AF 929P $ 6.95 1000250yrds / 6.95 $ 6,950.00 http://www.novatexintl.com
Pack Cloth (100% Nylon Coated DWR) $ 3.00 1000250yards / 3.00 $ 3,000.00 http://www.brookwoodcos.com
LED Lighting $ 2.30 1200045000ft/ 2.30 6ft/vst $ 27,600.00 http://www.neo-neon.com
Wiring $ 1.50 20005000 / $ 3,000.00 International Wire
Connector $ 1.50 20005000 MF * 1.50
$ 3,000.00 NA
Total Vest Materials $ 86,278.80 Total Cost/Vest $ 43.14
Selling Price $ 200.00
Projected Total Sales $ 400,000.00
TOTAL FIXED and VARIABLE COST $ 206,128.80
Projected Income $ 193,871.20
Break Even PointFixed Cost/(Unit Selling Price-Variable Cost) $ 1,314.09
Unit Contribution Margin Sell Price-Variable Cost 156.86
Volare Gear Volare Gear
4 Month Cash Flow Part 14 Month Cash Flow Part 1
4 MONTH CASH FLOW 2000 VestsWITH INITIAL DEBT PAYOFF
1. CASH ON HAND Current Month Month #2 Month #3 Month #4
Beginning of month $ 207,000.00 $ 73,491.20 $ 147,156.20 $ 308,625.20
Plus
a. Cash Sales $ - $ 99,995.00 $ 199,999.00 $ 99,995.00
b. Collections from accounts receivable
c. Other cash income
2. TOTAL CASH AVAILABLE $ 207,000.00 $ 173,486.20 $ 347,155.20 $ 408,620.20
3. TOTAL CASH PAID OUT
a. Purchased Inventory $ 86,278.80
b. Gross wages (excludes withdrawals) $ 4,000.00 $ 4,000.00 $ 4,000.00 $ 4,000.00
c. Officer’s salaries $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00
d. Payroll expenses (taxes, etc.) $ 2,200.00 $ - $ 2,200.00 $ -
e. Outside services $ 10,000.00 $ - $ 10,000.00 $ -
f. Supplies (office/operation) $ 400.00 $ 200.00 $ 200.00 $ 200.00
g. Repairs & maintenance
h. Advertising $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
i. Car, delivery, travel $ 6,250.00 $ 2,000.00 $ 2,000.00 $ 2,000.00
j. Account & legal $ 2,000.00 $ - $ - $ -
4 Month Cash Flow Part 24 Month Cash Flow Part 2
k. Rent $ 1,200.00 $ 1,200.00 $ 1,200.00 $ 1,200.00 l. Telephone $ 300.00 $ 300.00 $
300.00 $ 300.00
m. Utilities $ 500.00 $ 500.00 $ 500.00
$ 500.00
n. Insurance $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 o. Taxes $ 1,000.00 $ 2,750.00 $ 2,750.00 $ 2,750.00 p. Interest expense $ 1,380.00 $ 1,380.00 $ 1,380.00 $ 1,380.00 q. Owner’s withdrawal $ -
r. Loan principal payment $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 s. Miscellaneous (unspecified) t. Other expenses (specify) u. Other expenses (specify)
4. TOTAL CASH PAID OUT $ 133,508.80
$ 26,330.00
$ 38,530.00
$ 26,330.00
5. CASH SURPLUS (deficit) $
73,491.20 $ 147,156.20
$ 308,625.20
$ 382,290.20
6. BORROWINGS $ 65,000.00
$ -
$ -
$ -
Volare Gear 1 YearVolare Gear 1 Year
VOLARE GEAR Inc. PROJECTION 1st YEAR
CONSTANT PRICING
DESCRIPTION 2009NUMBER OF UNITS SOLD 2000PRICE $ 150.00 SALES $ 300,000.00 FIXED COSTS $ 119,850.00 VARIABLE COST $ 86,278.80
EBIT $ 93,871.20
PROJECTED PRICING INCREASE
DESCRIPTION 2009NUMBER OF UNITS SOLD 2000PRICE $ 199.99 SALES $ 399,980.00 FIXED COSTS $ 119,850.00 VARIABLE COST $ 86,278.80
EBIT $ 193,851.20
BASIC MODEL MATERIAL COSTBASIC MODEL MATERIAL COST
Volare MaterialsVolare Materials
Police Beta-PrototypePolice Beta-Prototype
Design Input Design Input
DescriptionDescription ColorColor U/MU/M Price/UnitPrice/Unit Quantity/VestQuantity/Vest AmountAmount
Clear Plastic G20 20 GaugeClear Plastic G20 20 Gauge TransTrans YardYard $2.30$2.30 0.130.13 $0.29$0.29
Moonlight ReflectiveMoonlight Reflective ReflectiveReflective YardYard $25.00$25.00 0.250.25 $6.25$6.25
AFRO Perforated AF 929P AFRO Perforated AF 929P BlackBlack YardYard $6.95$6.95 0.500.50 $3.48$3.48
Pack Cloth (100% Nylon Coated DWR)Pack Cloth (100% Nylon Coated DWR) Navy BlueNavy Blue YardYard $3.00$3.00 0.500.50 $1.50$1.50
$11.51$11.51
DescriptionDescription ColorColor U/MU/M Price/UnitPrice/Unit Quantity/VestQuantity/Vest AmountAmount
LED Strip (6 strips @ 1.5')LED Strip (6 strips @ 1.5') RedRed FootFoot $2.30$2.30 9.009.00 $20.70$20.70
PROJECTED SALESPROJECTED SALES
$-
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
5000 10000 20000 40000 80000
PROJECTED SALES
PROJECTED SALES
OBTAINING 1% MARKET SHAREOBTAINING 1% MARKET SHARE5 YEAR PROJECTION5 YEAR PROJECTION
1% OF MARKET SHARE
2009
2010
2011
2012
2013
5 YEAR MINIMUM MARKET5 YEAR MINIMUM MARKETPENETRATIONPENETRATION
- 1,000,000.00
2,000,000.00
3,000,000.00
4,000,000.00
5,000,000.00
6,000,000.00
7,000,000.00
8,000,000.00
9,000,000.00
10,000,000.00
5000
10000
20000
40000
80,000.00
MARKET PENETRATION
Projected Sales
Potential Market
VOLARE GEAR INC.VOLARE GEAR INC.
THANK YOU FOR YOUR THANK YOU FOR YOUR CONSIDERATIONCONSIDERATION
PLEASE REFER TO THE PLEASE REFER TO THE ENCLOSED BUSINESS PLAN ENCLOSED BUSINESS PLAN
FOR FULL DETAILS AND FOR FULL DETAILS AND INFORMATION ON FINANCIALSINFORMATION ON FINANCIALS
