Business Plan

Jarod Salinas-DickUpStart172 Sherman AvenueApartment 47New York, NY 10034530.859.2645 jsalinasdick@gmail.comI. Table of Contents

I. Table of Contents 3II. Executive Summary... 4III. General Company Description 5IV. Products and Services 6V. Marketing Plan 7VI. Operational Plan 15VII. Management and Organization 19VIII.Personal Financial Statement 20IX. Startup Expenses and Capitalization 21X. Financial Plan 22XI. Appendices... 25XII. Refining the Plan 26

II. Executive Summary

In this increasingly digital marketplace, the emergence of online crowdfunding ventures has grown exponentially in the recent years. Unfortunately, however, once these startups receive their funding, they are left with an inflated ego with nowhere to turn. Either they can continue their pursuit of online sales, or they can try their hand at breaking into the retail market. Our team at UpStart LLC has come up with an elegant solution to these woes by creating a storefront dedicated to these successful online crowdfunding campaigns.

Crowdfunding is one of the largest growing industries on the market today. Up from 283 in 2010 to 539 in 2013, the number of active crowdfunding platforms has nearly doubled in 3 years. In that same amount of time, we have seen a $4.6 billion increase of funds exchanged on these crowdfunding platforms.

With these large increases in money and support being generated online, UpStart saw an opportunity to capitalize on these online entrepreneurial trends. UpStart seeks to not only build an industry leading platform for these hopeful entrepreneurs to grow and succeed, but also build a physical business landscape in which innovative ideas can thrive.

UpStarts mission is threefold. The first is to provide a physical space for customers to experience their favorite online campaigns in person. The second is to give startups a place to showcase their products in a retail environment both in our store and in larger retail venues. The final aspect of the UpStart mission is to create a socially conscious business that promotes entrepreneurial success worldwide. By providing microloans to small business hopefuls in developing countries, the entrepreneurial spirit that is shared across borders is ignited. This will be done with the help of our partners at Kiva.

Too often are startups wondering what their next step will be. This process can lead to frustration, decrease in morale and profit, and even failure of the startup. Thanks to UpStart, entrepreneurs have their next steps lined up for them to ensure their startups continue their journey into successful businesses.

Upstart has the opportunity to make entrepreneurs dreams come true by getting their product in the hands of the customers who want it the most. This generation is tech obsessed and constantly yearning to get their hands on the latest and greatest gadget. UpStart has created a unique space for multiple entrepreneurs to showcase their products specifically geared toward those eager customers. We are cultivating an online movement that says that we can make our ideas come to life without depending on high interest loans. Armed with a good idea, any entrepreneur can succeed in todays crowdfunding environment. We are here to propel those ideas to the next phase. III. General Company Description

UpStart is a brick and mortar retail location for successful entrepreneurs to showcase and sell their products. Startups need UpStart to take their online success into a physical space. In addition to the storefront, UpStart also provides expertise services in breaking into the retail industry. This service package, dubbed BreakIn, is the most efficient way for budding entrepreneurs to ensure their product maintains the same level of success in store as it did online.

With UpStart, customers have the extended luxury of experiencing the product with their own hands and eyes. They are able to make up their own opinions about the products instead of placing their trust in the hands of company owners. Physical locations possess a quality that cannot be matched with online retailers; they allow pedestrians to walk in to a store and directly experience the product first hand.

Startups who chose UpStart will also receive the added benefit of industry knowledge. UpStarts agents provide their knowledge and advice to entrepreneurs looking to sell their products at physical locations. Our agents are equipped with the know how to create an opportunity for clients to get in front of potential retailers.

Proof of concept is a requirement to be showcased at UpStart LLC. Startups must successfully complete an online crowdfunding campaign of their choice prior to entry. Offline startups also possess the opportunity to be showcased at UpStarts retail location pending a complete financial history inspection.

Our services are an affordable way for successful entrepreneurs to take their ideas and break into their desired markets.

Mission Statement:UpStart is dedicated to continuing the success of entrepreneurs who are looking to break into the physical market space. Providing startups with the tools they need is at the forefront of our mission. Too often are entrepreneurs left wondering what the next step will be, so weve simplified it for them at UpStart. Our knowledgeable, friendly staff is there to build a robust platform for continued success.

Company Goals and Objectives:The goal of UpStart is to provide a designated location for entrepreneurs to showcase their products. A growing online community has shown a large interest in funding entrepreneurial campaigns, helping startups gain the capital and awareness their business requires in becoming successful. Unfortunately, however, once the campaign has ended, startups are left with a bloated ego and nowhere else to turn. UpStart LLC gives these successful entrepreneurs a place to continue expanding their reach at a brick and mortar location.

Philosophy:At the very heart of UpStarts philosophy is the desire to foster the entrepreneurial mentality. Entrepreneurs help shape the world we live in today and are becoming increasingly important in todays global economy. We believe that everyone has the ability to pursue his or her dream. We believe in entrepreneurs dedication to solving todays real world issues and wish to help achieve their goals.

As part of UpStarts dedication to entrepreneurship worldwide, a portion of our proceeds will support Kivas mission to provide safe, affordable access to capital to those wishing to create their own small businesses. Kiva has supported over one million people in chronic need of capital to support themselves and their families. Through Kivas microlending program, those with the means to contribute can help finance everything from tuition fees for Najlaa in Jordan to better fishing supplies for Norma in the Philippines. UpStart and Kiva share the same passion for helping entrepreneurs realize their potential.

Target Market:The target market for UpStart will include all successful online crowdsourcing campaigns, including those on Kickstarter and Indiegogo, which have a combined 100,000+ projects successfully funded. Startups in possession of a revenues and proof of concept are also included in the target market. These clients make up the client portion of UpStarts target market. The main target market would be Millennials living in the Brooklyn or greater NYC area. These trendy 20 - 30 year olds are naturally interested in technology, innovation, fashion, music, and the newest thing. Narrowing the market to these specifications allows for a defined target market to exist without over reducing it.

Industry:UpStart is primarily part of the retail industry, however our main service package BreakIn falls into the service industry classification. The clients who choose UpStart come from various industries including electronics, education, entertainment, energy, fashion, food and beverage, music, and technology. According to the Bureau of Labor and Statistics, the retail sector is the dominant source of employment and has seen some of the largest growth rates of any sector throughout the years. Real output for retail trade is expected to grow at a rate of 4.6 percent annually, rising from $1.1 trillion in 2004 to $1.8 trillion in 2014. This type of growth is resistant to fluctuations in the market both short term and long term.

Core Competencies:UpStart specializes in bridging the gap between the virtual and physical market space. We offer reasonable pricing for clients wishing to get their products on the shelves of not only our store, but retail locations throughout the country. Our service package BreakIn allows current clients to continue their retail journey by connecting them with retailers specifically aligned with our clients product.

Legal form of ownership:UpStart will operate as a Limited Liability Corporation (LLC).

IV. Products and Services

UpStarts product line features items which have been successfully funded through online crowdfunding campaigns. The most popular sites, Kickstarter and IndieGoGo, boast a large array of products including pull-tab wallets, low energy Bluetooth locator devices, spoke mounted bicycle lights, smart watches and wearables, trackline belts, multi-function scarves, homemade burger sauces, handcrafted leather bags and iPad cases, and 3-D printers. Each product will be placed in categories aligned with their function. The store will feature titled sections for: technology, home, fashion, music, art, games, photography, and design.

Clients will be charged a one-time entry fee of 3% of their total online revenue generated. For example, if the client received $50,000 from their campaign, a one-time $1,500 fee would be enacted. Any product sold in the UpStart store will be charged a royalty fee of 5%.

UpStarts BreakIn service gives clients the advantage they need in order to break into the retail market space. After showcasing their product at UpStart, hand selected retail experts will act as field agents. UpStart charges the retail location a 5% finders fee and a 3% royalty for any sales our clients incur at the new location.

Additionally, if individual product size is in excess of 2000in3, an oversized product fee of .50 per extra cubic inch will be applied to each product on display and in inventory.

V. Marketing Plan

Market research

UpStart will be conducting its business in areas known for innovation, fast pace, and entrepreneurial spirit. Starting in Brooklyn, our market will incorporate a large number of young, passionate people looking for the newest products to add to their collection. Customers, however, are interested not only in the products we house, but they love the idea of supporting entrepreneurs looking to kickstart their business. There is growing support for crowdfunding worldwide, with $5.1 billion raised in 2013. Such high numbers are a result of higher levels of consumer knowledge regarding crowdsourcing ventures and widespread acceptance of the idea. Economics

Facts about retail industry:The retail sector grew 5% percent from 2013 to 2014 and a steady 4.6% over the past 10 years. This steady rise is projected to continue indefinitely.

Total size of your market: Population of 18-35 year old New Yorkers: 2,426,277.

Percentage Share of the market: Less than 1%

Current demand in target market: Above average

Trends in target market: Customers are becoming increasingly interested in consumer end technology and innovative products designed to enhance current living conditions. Our products are not only the newest to market, but also provide customers with a utility for their lives. Products are constantly being cycled through UpStarts inventory due to never ending creation of innovative products. As soon as a new product is developed and funded by an online crowdfunding campaign, they become a candidate for UpStarts one of a kind program. Therefore, consumers know they are receiving the most up to date products on the market.

Growth potential and opportunity: UpStart possesses a unique growth potential through both the physical products offered as well as the service package BreakIn. Initially, products will come from the two most influential and successful online crowdfunding campaigns; Kickstarter and IndieGoGo. Further expansion of this area will include a comprehensive list of crowdfunding sites such as Crowdfunder, RocketHub, Crowdraise, Somolend, AngelList, Invested.in, and Quirky. UpStart will use the same method of recruitment and pricing for said sites. Offline entrepreneurs will also have an opportunity to gain access into UpStarts store pending approval through our list of predetermined requirements such as proof of concept and minimum sales figures. A Shark Tank style interview and testing will occur to ensure these offline startups have products, which are ready for market. BreakIn offers the largest room for growth as we continue to expand our network of clientele and referrals. Our dedication to research and network development will fuel growth and increase opportunities for successful partnerships.

Potential barriers:The main barrier to entry UpStart faces is the recruitment of market ready startups. Creating a line of communication between the startups owner and our agents will be a critical step in acquiring clients. Our agents must incentivize potential clients to sign on with UpStart through deliberate and tactful communication. Proper training must be implemented for all UpStart employees, for both client recruitment and retail referrals. Continuous Employee training will include watching online crowdsource video, reading product information, and maintaining a line of communication between UpStart and the supplier. Another potential barrier is the creation of a network of large retail firms to refer our clients. Brand recognition and reputation must be established in order to break into those larger resellers. Since startups are, by definition, in their infancy as a company, shipments and other organizational logistics may prove to be a potential barrier to entry as well. Fortunately, changes in the technology will only enhance UpStarts business model. Licenses and patents are owned by the clients and thus are not considered a barrier to entry. Product

Features and Benefits:UpStart features products seen on their favorite crowdfunding websites. These customers may have backed a project online and wanted to see first hand how the product really performed, how it felt, or what it looked like in person. Each product will be marked with a sticker of the name of the online crowdsourcing site where they were funded. For instance, if the project was funded through Indiegogo, it will be marked as such. Furthermore, a small description outlining the history, features, and benefits of the project will be included next to the item. This placard will display a QR code that sends the user to the projects campaign website with a video further explaining its features and benefits. Major products or services: The Coolest: Kickstarters most funded campaign. This project had a $50,000 goal which was quickly matched and exceeded, bringing the total amount raised to a staggering $13.2 million. The product is a unique portable cooler with built in features like USB charging, a top mounted blender, LED lid lights, gear tie down, integrated storage for cutting board and knives, and a removable waterproof bluetooth speaker, . Pebble: The first smartwatch device to hit the market. Previously Kickstarters most funded campaign at $10.2 million. Ubuntu Edge: African for Human Kindness Ubuntu is an open source smartphone running on a combination of both Ubuntu and android systems. Indiegogo The Dash: Wireless in-ear buds that not only play music, but have the ability to track performance and vitals like speed, time, distance, and heart rate in real time. It also has 4GB on board storage so music can be played even without a phone. Veronica Mars Movie: The first crowdfunded movie available on DVD. The Micro: The worlds first truly consumer 3-D printer. A 7.3 inch cube can take schematics either downloaded or created from your computer and turn them into real life creations in front of your eyes. Zano: A micro-drone controllable from any smartphone. Star Citizen: The largest crowd funded project of any genre is a space combat video game playable on the PC platform. Many other successful Elevation Dock: A sleek, minimalistic, heavy-duty dock for iPhone that even works with cases and looks great. Trackline belts: Belts with inch notches instead holes to ensure a perfect fit. Fashionable apparel including hoodies, socks, watches, leather shoes and bags, sunglasses, jeans, and shirts. Slim Wallets: Kickstarter has a plethora of slim wallets ranging in materials, functionality, and weight. Tracking devices: Small, low energy bluetooth devices can attach to your most important valuables like your keys, phone, wallet, bike, or computer. If ever lost, users can retrieve these items using the accompanying smartphone app. BreakIn: UpStarts main service package offering clients the ability to break into large retail locations to sell their products.

Each product sold comes with a 30-day money back guarantee. Warrantees are available depending on the product. If the client whose product was sold chooses to include a warranty with his or her product, then one will be attached to the item sold. Customer support is available by our highly trained staff. They possess the ability to resolve issues incurred after the sale and have a direct line of communication with the startups owner to resolve any further problems. Customers

UpStart sells directly to customers through its specialized mix of products. The products come from individual vendors who can maintain their own method of sales alongside UpStart. They may possess their own channel of distributors, wholesalers, and retailers or they can employ Upstart agents to acquire those resources for a marginal fee. The fee would correlate with the selling cost of the startup and a finders fee charged to the firm. Our clients stand to gain access into the retail market space and our agents will act as the middlemen.

Demographic profile:Age: 18-35Gender: MaleLocation: HQ: Brooklyn, NY. Income level: 20,000+Social class: Middle, Upper Middle, and Upper class. Occupation: VariesEducation: High School and/or College graduatesOther (specific to your industry): Technologically interestedOther (specific to your industry): Interested in the newest thing/ideaBusiness customer demographic factors:Industry (or portion of an industry): Other RetailLocation: VariesSize of firm: VariesQuality, technology, and price preferences: HighOther (specific to your industry)Other (specific to your industry)Competition

Major Competitors:Hammacher Schlemmer, Sharper Image.Hammacher Schlemmer and Shaper Image compete with the some of the gadgets that UpStart offers, however these companies lack the broad array of products entrepreneurs create.

Indirect Competition:Kickstarter, IndieGoGo, Investment firms, Angel Investors.

Kickstarter, Indiegogo, and other crowdfunding sites can indirectly compete with UpStart by providing the entrepreneurs enough capital to created their own independent business. Of course, these sites will also be our main partners when recruiting clients, but could ultimately compete with UpStarts mission. UpStart intends to remedy this by incentivizing successful campaigns with our marketing mix. Investment firms and angel Investors can indirectly compete by providing the capital and resources startups need. Entrepreneurs may be unwilling to try UpStart if they have the means to start their company themselves.

Competitive Analysis Table 1: Competitive AnalysisFACTORMeStrengthWeaknessCompetitor: Hammacher Schlemmer*

ProductsBroad array of successful entrepreneurial ventures. Large selection of specialty products.Products are largely nonessential. Nonessential products 1

PricePrices match the selling price of the online campaign for UpStart cardholder.Price structure favors UpStart cardholders. Prices are higher for specialty products.Astronomically higher prices for specialty products. 2

QualityClient quality control and customer testing.High quality after customer testing.Third party clients control quality.Higher quality after quality control.1

SelectionBroad selection across multiple industries. Ability to view all new projects in one place. Too much selection can drive buyers anxiety. Decent selection of specialty items.2

ServiceFriendly, well informed employees with incentives to help both clients and customers.Knowledge of products as well as the next steps for start up businesses.Customers may come to be off put by number of employees willing to provide knowledge.Knowledge of products, but no knowledge of background of products. Online review sites like resellerratings.com paint this company in a very negative light. 1

ReliabilityOur products are as reliable as the clients who provide them. Independent testing and consumer approval are established prior to shelving. Large-scale reliability testing in many cases has not been conducted. No certification from Better Business Bureau (BBB).2

StabilityEntry in reliable growth industry. Retail businesses are growing in number with no signs of stopping.Potentially susceptible to market fluctuations as people with less money will be less likely to buy specialty products. Stable so long as economy allows for customers to afford their high priced specialty goods. 2

ExpertiseIndustry experts recruited for employment.Expert knowledge of products and programs makes customers and clients feel more inclined to trust business and become patrons. Assumptions regarding product knowledge can lead to friction between staff and customers/clients. Corporate training can make anyone an expert, however expertise extends beyond product knowledge. 2

Company ReputationBuilt upon successful startups, the reputation is built in. Built in online reputation means it can grow exponentially very quickly. No control of clients reputation prior to entry. Limited reach to spread reputation. Previously well known reputable company, however there are a growing number of complaints regarding customer service has begun to taint their reputation.2

LocationStarting in Brooklyn, an innovative metropolis with young entrepreneurial spirit. Densely populated with young, internet savvy culture. Hipsters love crowdsourcing campaigns. One location limits widespread knowledge and market exposure. Higher rent for in demand locations.More locations broaden reach, revenues, and influence.2

AppearanceUpStarts appearance matches the innovative products it displays. Simplistic showcasing compliment the productsPossessing the proper amount of shelving space for inventory and compartmentalizing products.Appearance does not change from store to store. As futuristic as the products may be, the layout hasnt seen a remodel in decades. 1

Sales MethodIn store sales executed by trained salespeople. Point of sale method will be implemented. Higher competency in both previous and current sales environments generates higher sales efficacy. POS sales method could prove to be unfit for UpStarts usage. Proven sales method applicable to retail environment. 2

Credit PoliciesUpStart will accept credit cards on site. Establishing a line of credit available to clients wishing to break into big box retail. More availability to customers and clients wishing to use our credit services. Increased risk taken on and potential loss of revenue if clients default on payments. Merchandise exchanges and store credit available. 2

AdvertisingUpStarts advertising includes new products, weekly specials, and in store discounts. New, exciting products are easier to advertise. UpStart company has a built in audience.Little influence over the ads clients create independently. Consumers may not know what the business is or what the products do. Targeted advertising to ensure most efficient use of marketing budget, while still maintaining large customer interest. 3

ImageUpStarts sleek, designs and entrepreneurial philosophyBetter image generates customer interest and loyalty.Image is largely based on public perception, outside the control of the business. Excellent image built upon years of influence in the marketplace, however online review sites like resellerratings.com are eating away at company image. 2

* Importance to Customer.

UpStart distinguishes itself from its competition through the recruitment of successful crowdfunding campaigns, rather than traditional modes of recruitment. These suppliers offer one of kind products across multiple industries including technology, music, home improvement, fashion, and entertainment. NicheUpStart has a niche market consisting of young, forward minded individuals looking for the next great product. Our unique take on retail makes our business a one of a kind place for customers to explore. Customers have prior knowledge of online crowdfunding and may have backed a few campaigns. They are accepting of new ideas and have a desire for convenience. Upstart provides a centralized location for all of their favorite startup campaigns. StrategyPromotion:Signed clients are contractually bound to notify all backers that their product is available in UpStarts store. Those backers will receive a code, which can be redeemed for a 10% discount on their first purchase within 30 days of receipt. The location of the nearest store will be included in the notification. We will work closely with the crowdfunding sites and create targeted advertisements outlining what Upstart has to offer. Our club card owners will receive up to date information regarding discounts and specials.

Customers can opt in to be a part of UpStarts newsletter to receive up to date pricing, news, and promotions. When customers choose to email their receipt, they will also be prompted to opt in to receive said newsletter. These methods will ensure a way for us to systematically contact customers for repeat business.

Advertising: While UpStart would like to be broadly recognized, we understand that our products are not for everyone. We want our advertising to target the precise demographic we intend to sell product to without coming off as too obtrusive.

UpStart will be extremely active on social media sites like Instagram, Twitter, Facebook, Vines, Pinterest, Google Plus, Tumblr, and LinkedIn etc. Social media is an effective way to spread the word to our target market without allocating excessive amounts of cash toward advertising firms or campaigns. Our in-house social media coordinator will ensure our brand name reaches a high level of saturation within the marketspace. UpStart will engage in a limited amount of paid advertising via catalogues, commercials, and trade shows. This mix of advertising will ensure the biggest return on investment and grow consumer awareness without blowing the budget.

Initially, graphic design work will be done through a personal network of colleagues until a professional graphic design team can be employed. They will design all of UpStarts brochures, logos, cards, letterhead, and interior design as well.

Promotional Budget:UpStart will allow a promotional budget equal to 10% of the annual budget. This allocation is representative of what average small businesses typically put toward their promotional needs. As the business grows, so will the budget, so the 10% allocation will be appropriate both before startup and as an ongoing expenditure.

Pricing:UpStart will adopt a traditional markup method used in the retail industry. In this method the original price of the item is divided by (100 - markup percentage) multiplied by 100. The number generated will become the new retail price. UpStart will charge a 20% markup so using this method a $50 item would be $62.50. For display purposes, items ending in either .50 or .00 will become .49 and .99, respectively. This structure will allow enough margins to be collected on each item and still allow UpStart to offer 10 - 15% promotional deals and still have margin to spare.

The cost UpStart will pay for the item will be no higher than the lowest price offered throughout their crowdfunding campaign. These prices are typically included in the early bird listing.

The UpStart cardholder program will cost an annual $54.95 to be paid upfront. A 10% discount will be offered off of any initial purchase and a portion of the proceeds will go toward entrepreneurs worldwide through Kiva.org. These customers will receive the latest information regarding new arrivals, discounts, and events.

Clients wishing to break into the larger retail market will be charged a one time application fee of $500 to go toward research and acquisition of possible vendors. These monies are to be refunded if no such acquisition occurs. A 5% perpetuity will be charged to the client one all future sales with that company. Additionally, we will charge a 5% finders fee to the company involved with the sale.

Customers who missed out on the original campaign can still purchase their items in store for a comparable price. However, most customers are not basing their purchase based on price as UpStarts products are largely nonessential. This program keeps the idea of impulse buys intact in that customers can still walk in to the store and buy any product they desire, however they are paying a premium on each item they buy.

Proposed Location:UpStart will begin its journey in Brooklyn, New York. There are many reasons to start this business in Brooklyn. Brooklyn is a hotspot for trendy, urban designs. UpStarts products match this profile and expand on it exponentially. Brooklyn has been named by numerous publications as a top city to start a business in due to its large population of young, well-informed dwellers. Brooklyn is also less expensive than its western neighbor Manhattan, for the most part. The exact neighborhood will be determined by the price and close proximity to Greenpoint, Williamsburg, and/or Fort Greene. These are the fastest growing neighborhoods in Brooklyn and have swiftly increasing income levels. Customers will not be disappointed with the quality and type of products UpStart offers in this hipster mecca.

Pending growth and success, UpStart will create multiple locations in hand-selected cities that are known for their innovation, fast pace, and entrepreneurial spirit. Further expansion will include San Francisco, Silicon Valley, Austin, Chicago, Denver, Boston, and Portland, among others.

Competition is limited considering the nature of this business. Our proximity in relation to our main competitors Hammacher Schlemmer or Sharper Image may affect sales, so our store will situated at a distance from our competition. This, however, will not be the main factor in determining the stores location.Sales ForecastRefer to page 1 of attached financial plans. VI. Operational PlanClient acquisition is at the heart of UpStarts success. That is why every days agenda includes reaching out to successfully funded online crowdfunding website to recruit startup businesses. Our retail location will operate during regular business hours with a 24 hour chat service available to card holders only. Our marketing team will promote previously acquired products through web-based platforms. At the end of the day, our in store sales team will report inventory and sales at every location. They will put the numbers into weekly spreadsheet to use as guidelines and benchmarks for future development and growth. ProductionAll of UpStarts production occurs off site through our clients independent production facilities. There they are able to customize their facility to their specific needs. We make sure our clients are practicing proper production techniques like quality control and inventory control. Our customer service team will work closely with our clients to ensure any customer inquiry can be resolved in a timely manor. LocationUpStarts location will need to house aisles, a register counter, and a small back room for inventory. The space can be as small as 600 square feet or as large as 2000. Smaller spaces are ideal because their rent is lower and the store will appear fully stocked. The building itself will most likely feature retail spaces on the street level and housing units above. UpStart will stand amongst other restaurants and stores so as to potentially catch the eye of a passerby. This preserves the idea of impulse buying in store.

Access:New York is known for its widespread affordable transportation system, however outdated it may be. Almost everyone that lives here uses the subway and walks everywhere they can. UpStarts location will be nearby a train and bus stations to potentially gain the interest of passers by.

Retail space for the desired square footage in Brooklyn can be as low as $2500/mo for 60 months. Utilities averages $500/mo and the insurance premium can be upwards of $1500/year. Remodeling and creating the retail space would cost an initial $2000.

Business hours are 11-7 seven days a week. Legal EnvironmentUpStarts products are all owned by their respective startup companies. Trademarks, copyrights, and patents are all owned by the individual startups. Any use of these legal conditions by UpStart will be agreed upon prior to shelving. UpStarts legal obligations will fall in line with that of the retail sector. PersonnelUpStart will employ salesmen, marketers, and recruiters for the labor force. Salesmen must be willing and able to devote their time to research the products they are selling. Marketers will come with years of experience so our staff needs to only provide minimal training. Our recruiters will require the most experience and the most training for the position. Finding the right employees for this position is crucial, so using a hiring agency may be necessary. All other hiring will be done through online job listing sites like indeed.com and careerbuilder.com.

Employees will be paid on hourly, starting at minimum wage for entry level employees. Wages will increase 10% every year that employee is working at UpStart. Contract workers may be hired for the recruitment process. A small number of employees will be hired and trained prior to the stores grand opening to serve as the sales and marketing team. No more than 5 employees will be hired during this time. InventoryAll inventory stocked at UpStart will be finished goods. A small amount of excess inventory will provide all the necessary product overflow for the business. This small amount is sufficient due to a low product turnover rate. Customers will not likely be purchasing large quantities of UpStarts specialty products.

Stocking inventory will be UpStarts greatest challenge. Startups on crowdfunding platforms can take months to fulfill shipping orders. The shipping dates are subject to change due to organizational issues, delays in production, or other miscellaneous delays. SuppliersThe suppliers for UpStarts inventory include successfully crowdfunded campaigns from top crowdfunding sites like Kickstarter and Indiegogo. The type of inventory furnished can include anything from wireless Bluetooth speakers to leather wallets. Each supplier will possess their own history and reputation, however due to the nature of a startup business, the largest indicator of success is the amount raised on their fundraising platform. It is expected that supply costs will be constantly changing due to the various locations our products are coming from.

Kickstarter and Indiegogo are the largest platforms, accounting for over $2 billion in combined pledges, however they do not make up the entire supplier database. Crowdfunder, RocketHub, Crowdraise, Somolend, AngelList, Invested.in, and Quirky make up the other 90% of crowdsourcing platforms.Credit PoliciesUpStart plans to eventually extend a line of credit to clients who are looking to expand their startup, however no such offering will exist in the beginning. VII. Management and OrganizationUpStarts management structure follows that of typical retail environments. The general manager handles the day-to-day operations and makes sure his or her sales team is performing at its highest level. The GM has prior experience in management and knows what it means to successfully lead a group of people. VIII. Startup Expenses and CapitalizationUpStart will maintain 100% ownership of its startup during the initial launch. A portion of the seed money will come from UpStarts owners as well as family and friends wishing to assist in the capitalization. A repayment agreement will be put in place similar to a loan, however at a highly discounted rate and without the risk of defaulting. UpStart is confident these contributions will be paid in full within 5 years of the stores opening.

Further funding will come from credit and small business loans. They will be used to pay for the main business expenses such as rent, utilities, labor, and interior design. The contingency fund will be comprised of the savings possessed by the owners which will be equal to at least 20% of the total start up expenditure budget.

Rent - $3500/mo ($40,000/yr)Utilities - $500/mo ($6,000/yr)Insurance - $1500/yearLabor - $120,000/yrInterior design - $5000Contingencies - $20,000Year 1 expenditure budget: $192,500IX. Financial PlanThe financial plan consists of a 12-month profit and loss projection, a four-year profit and loss projection (optional), a cash-flow projection, a projected balance sheet, and a break-even calculation. Together they constitute a reasonable estimate of your company's financial future. More important, the process of thinking through the financial plan will improve your insight into the inner financial workings of your company.12-Month Profit and Loss ProjectionRefer to page 2 of attached financial plansProjected Cash FlowRefer to page 3 of attached financial plansOpening Day Balance SheetRefer to page 4 of attached financial plans

X. AppendicesInclude details and studies used in your business plan; for example: Brochures and advertising materials Industry studies Blueprints and plans Maps and photos of location Magazine or other articles Detailed lists of equipment owned or to be purchased Copies of leases and contracts Letters of support from future customers Any other materials needed to support the assumptions in this plan Market research studies List of assets available as collateral for a loanXII. Refining the PlanFor Raising CapitalFunds for Upstart will be used for purchasing product from clients. This is the most crucial aspect of the business and will be the largest strain on the budget. Any alleviation in this department will allow UpStart to allocate more funds toward our referral program research and development.

In return for any financial compensation, investors will be offered a small percentage of the company, up to 10%.