1 business plan morpower equipment company, inc. 2 table of contents page # page # front cover 1...
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Business PlanMorpower Equipment Company, Inc
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Table Of ContentsTable Of Contents
Page Page ##
Front CoverFront Cover 1 1Table of ContentsTable of Contents 2 2SummarySummary 3 3Solid FoundationSolid Foundation 4 4Dealer MapDealer Map 5 5Market OverviewMarket Overview 6 6Sales & Marketing StrategySales & Marketing Strategy 7 7Benefits of Corporate StructureBenefits of Corporate Structure
8 8Operations Phase ImplementationOperations Phase Implementation
9 9Steps to Reduce RiskSteps to Reduce Risk
1010Sales % by Market/ Stock Plan 11Sales % by Market/ Stock Plan 11Base Case Sales ForecastBase Case Sales Forecast 1212Base Case Return on Investment 13Base Case Return on Investment 13
Page #Page #
Base Case Share ValueBase Case Share Value1414
Base Case FinancialsBase Case Financials15-1615-16
High Case Sales Forecast High Case Sales Forecast 1717High Case Return on Investment 18High Case Return on Investment 18High Case Share ValueHigh Case Share Value
1919High Case FinancialsHigh Case Financials
20-2120-21Low Case Sales ForecastLow Case Sales Forecast 2222Low Case Return on InvestmentLow Case Return on Investment
2323Low Case Share ValueLow Case Share Value
2424Low Case FinancialsLow Case Financials 25-2625-26Management Personal ProfilesManagement Personal Profiles
27-2827-28Contact InformationContact Information 2929Back CoverBack Cover 3030
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Morpower Equipment IncMorpower Equipment IncMajor OpportunityMajor Opportunity
Who We Are:Who We Are:
:: Manufacturing CompanyManufacturing Company
Fast Growing Dealer BaseFast Growing Dealer Base Track record of 8 YearsTrack record of 8 Years Proven Management TeamProven Management Team Proven Recession ResistantProven Recession Resistant StrategyStrategy Niche Products & Markets Niche Products & Markets Flexible Import vs. ProductionFlexible Import vs. Production Bold Yet Conservative Vision for Bold Yet Conservative Vision for
FutureFuture Innovative with New ProductsInnovative with New Products
InvestorInvestor
Designed to Minimize RiskDesigned to Minimize Risk Designed to Maximize ReturnsDesigned to Maximize Returns
Manufacturing Sales AgenciesManufacturing Sales Agencies
Own the company you RepresentOwn the company you Represent
Choose Level of ParticipationChoose Level of Participation
Purchase Capital Stake into CompanyPurchase Capital Stake into CompanyMinimum 1% - $10,000Minimum 1% - $10,000
Sales % should equal 2 x Ownership Sales % should equal 2 x Ownership PercentagePercentage
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Morpower Equipment, IncMorpower Equipment, IncSolid Foundation Solid Foundation
Blast Wholesale Established 2004Blast Wholesale Established 2004 Proven marketing strategy and track recordProven marketing strategy and track record Established and Reliable Sales Network in PlaceEstablished and Reliable Sales Network in Place Over 500 Dealers Nation Wide in United StatesOver 500 Dealers Nation Wide in United States Current Dealer Network in 34 of the 50 States in U.S. Current Dealer Network in 34 of the 50 States in U.S. Most of these dealers are servicing dealersMost of these dealers are servicing dealers Our warranty service network will satisfy EPA Our warranty service network will satisfy EPA
requirementsrequirements Building in Missouri, Good Logistics for NationwideBuilding in Missouri, Good Logistics for Nationwide
ShippingShipping Solid Management team Solid Management team Proven SuccessProven Success Brand Name “Morpower” is registered Brand Name “Morpower” is registered Morpower is familiar with many key people in IndustryMorpower is familiar with many key people in Industry Solid foundation to launch a quick growth strategySolid foundation to launch a quick growth strategy
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Market OverviewOutdoor Power Equipment
● Overall Market Outdoor Power Equipment $5.5 - $6.0 Billion in US alone
● Consumer Market Dominated by Large Mass MerchantsBox Stores, Clubs, Discount Houses
● Industrial and Commercial Grade Equipment sold primarily by smaller dealers and industrial supply houses.
● Very few Name Brand Players in Industry
● Transition in Marketplace from Manufacturers to Importers
● Importers rarely have good control on quality nor service after sales organizations
● Commercial market wide open for moderate cost, good quality product
with a good after sales support organization
● Large opportunity for niche consumer products that mass merchants
do not carry – such as electric start consumer grade pressure
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Morpower Equipment Inc, Sales & Marketing StrategyMorpower Equipment Inc, Sales & Marketing Strategy
Partner with relevant manufacturing sales agents to rapidly grow our Partner with relevant manufacturing sales agents to rapidly grow our customer base and salescustomer base and sales
Target Small to Medium sized Retailers Target Small to Medium sized Retailers
Target Dealers in These CategoriesTarget Dealers in These Categories Power Equipment DealersPower Equipment Dealers Farm StoresFarm Stores Home CentersHome Centers Contractor Supply CompanyContractor Supply Company Hardware StoreHardware Store Automotive DistributionAutomotive Distribution Industrial DistributorsIndustrial Distributors RentalRental
Target 15% - 20% Export SalesTarget 15% - 20% Export Sales
Invest into Coop Advertising With DealersInvest into Coop Advertising With Dealers
Invest in additional Marketing ActivitiesInvest in additional Marketing Activities
Overtime become THE BRAND NAME in affordable Diesel Powered and Overtime become THE BRAND NAME in affordable Diesel Powered and Contractor Grade Equipment Contractor Grade Equipment
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Morpower Equipment, IncMorpower Equipment, IncMajor Benefits of Corporate StructureMajor Benefits of Corporate Structure
Enable maximum profits and cash flow to be maintainedEnable maximum profits and cash flow to be maintainedfor Growth --- No taxes on corporate profits in Off Shore Companyfor Growth --- No taxes on corporate profits in Off Shore Company
Enable Positive of U.S. Made where appropriate and best cost as neededEnable Positive of U.S. Made where appropriate and best cost as needed
Minimize risk of Lawsuits in USAMinimize risk of Lawsuits in USA
Increase FlexibilityIncrease Flexibility
Best Available Cost PlanBest Available Cost Plan
Minimize Risks of US Government Anti-Business LegislationMinimize Risks of US Government Anti-Business Legislation
Minimize Risks of USA Public Backlash due to Massive Job LossesMinimize Risks of USA Public Backlash due to Massive Job Losses
Minimize Risks of a USA & China - Government FalloutMinimize Risks of a USA & China - Government Fallout
Maximize Market credibilityMaximize Market credibility
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How we Adapt to Economic UncertaintyHow we Adapt to Economic Uncertainty
Economists and business leaders can not get a good handle on our nation’s and the Economists and business leaders can not get a good handle on our nation’s and the world’s economic future and well being. We have forecasts from credible people for our world’s economic future and well being. We have forecasts from credible people for our economic growth to being fairly flat for years. Some believe we will start to grow rapidly economic growth to being fairly flat for years. Some believe we will start to grow rapidly again and still others believe we are at the beginning of a major collapse. As an investor again and still others believe we are at the beginning of a major collapse. As an investor you need to consider what the ramifications to your portfolio for any investment you make you need to consider what the ramifications to your portfolio for any investment you make and make informed and wise choices.and make informed and wise choices.
In periods of great and rapid economic growth any business with a credible product line In periods of great and rapid economic growth any business with a credible product line and business strategy should prosper. With the plan we have developed we will be well and business strategy should prosper. With the plan we have developed we will be well prepared for exponential growth.prepared for exponential growth.
One very likely scenario is a continued and long term period of sluggish growth or even One very likely scenario is a continued and long term period of sluggish growth or even no growth. A company with high overhead and stagnant product lines is in trouble in this no growth. A company with high overhead and stagnant product lines is in trouble in this environment. We have already seen a few significant players go out of business and the environment. We have already seen a few significant players go out of business and the industry restructure and reshuffle. As a smaller, niche market, lean organization, we are industry restructure and reshuffle. As a smaller, niche market, lean organization, we are uniquely adaptable and flexible to meet these challenges. The other major benefit we uniquely adaptable and flexible to meet these challenges. The other major benefit we have built into our plan is the 3 phase implementation. This will keep us from increasing have built into our plan is the 3 phase implementation. This will keep us from increasing our overhead and debt load to quick for our sales. The structure of our capital and debt our overhead and debt load to quick for our sales. The structure of our capital and debt will go a along way to keep our company secure. We will have no outside entity such as a will go a along way to keep our company secure. We will have no outside entity such as a large bank to change the terms of a debt deal and put us out of business.large bank to change the terms of a debt deal and put us out of business.
In the unlikely event of a near total economic collapse that some pundits are forecasting, In the unlikely event of a near total economic collapse that some pundits are forecasting, we will be in an exceptionally positive position. Every item noted above will be very we will be in an exceptionally positive position. Every item noted above will be very important. However, an even bigger issue is our product line. If major problems start important. However, an even bigger issue is our product line. If major problems start happening, there will always be a need for power equipment such as generators, air happening, there will always be a need for power equipment such as generators, air compressors, and especially diesel engines. By having a portion of our business offshore compressors, and especially diesel engines. By having a portion of our business offshore and with our product lines, we will have as secure a future as possible for any and with our product lines, we will have as secure a future as possible for any organization.organization.
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Projected Sales Growth
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Year
(000
) Outside US Sales
US Sales
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Stockholder Proforma Returns Base Case
-100,000
0
100,000
200,000
300,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Cash Flow Per Year IRR = 38.3% - 20 Year Return $1,441,576
Sample $50,000 Investment - 5% Ownership- Stock Sold Back
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Proforma Sample Return from Dividends Only
-20,000
0
20,000
40,000
60,000
80,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Proforma Return IRR = 26.7% Total 20 Year Return $310,302
Sample $10,000 Investment 1% Ownership Held for 20 Years
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Projected Sales Growth
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Year
(000
) Outside US Sales
US Sales
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Stockholder Proforma Returns Base Case
-200,000
0
200,000
400,000
600,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Cash Flow Per Year IRR = 51.9% - 20 Year Return $2,332,753
Sample $50,000 Investment - 5% Ownership- Stock Sold Back
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Proforma Sample Return from Dividends Only
-50,000
0
50,000
100,000
150,000
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Proforma Return IRR = 40.7% Total 20 Year Return $778,576
Sample $10,000 Investment 1% Ownership Held for 20 Years
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22
Projected Sales Growth
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Year
(000
) Outside US Sales
US Sales
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Stockholder Proforma Returns Base Case
-100,000
-50,000
0
50,000
100,000
150,000
200,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Cash Flow Per Year IRR = 26.9% - 20 Year Return $636,113
Sample $50,000 Investment - 5% Ownership- Stock Sold Back
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Proforma Sample Return from Dividends Only
-20,000
-10,000
0
10,000
20,000
30,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Proforma Return IRR = 17.3% Total 20 Year Return $107,314
Sample $10,000 Investment 1% Ownership Held for 20 Years
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Jim Bradley Personal ProfileJim Bradley Personal Profile
Education:Education:
Bachelor of Science Engineering ManagementBachelor of Science Engineering Management
University of Missouri – RollaUniversity of Missouri – Rolla
Masters of Business AdministrationMasters of Business Administration
Drury College – Springfield, MODrury College – Springfield, MO
Professional Experience:Professional Experience:
Emerson Electric, IncEmerson Electric, Inc
Engineering Manager – Electric MotorsEngineering Manager – Electric Motors
Coleman Powermate, IncColeman Powermate, Inc
General Manager – Generators & Pressure WashersGeneral Manager – Generators & Pressure Washers
Simpson Delco, IncSimpson Delco, Inc
Vice President Operations Vice President Operations Hot and Cold Water Pressure WashersHot and Cold Water Pressure Washers
Business Owner - 14 YearsBusiness Owner - 14 Years
Manufacturing, Importing, WholesalingManufacturing, Importing, Wholesaling
Pressure Washers, Generators, Air CompressorsPressure Washers, Generators, Air Compressors
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Larry BradleyCustomer Service Manager
South Shelby High 1974Moberly Jr. College 1978
Assoc. of Applied Science Agri Business 1978-1985
Renick Feed Store, Feed Sales1985-1991
McBee Agri Supply, Sales Spec. Electric FenceEstablished and maintained dealers
1991-1997Owner Iowa Ag Supply, Sales Spec. Electric Fence
Established and maintained dealers1997-2001
Bradson Industries, Inc., Director of SalesRecruited manufacturer’s reps. worked with the reps to
establish customers2001-2005
PowerRite, Director of salesSold equipment direct to end users
2005-PresentTechnical service manager Sales both retail and dealer, establish and maintain dealer
network
I have extensive sales experience and through working with the equipment have become knowledgeable of the service needs.
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Morpower Equipment, Morpower Equipment, IncInc
Morpower Equipment IncMorpower Equipment Inc
381 Central Avenue381 Central Avenue
PO Box 132PO Box 132
Taneyville, MO 65759Taneyville, MO 65759
Telephone:Telephone: (417) 200-4432(417) 200-4432
FaxFax (314) (314) 735-4044735-4044
Email:Email:[email protected]@morpower.com
WebsitesWebsiteswww.morpower.comwww.morpower.com
(retail)(retail)www.blastwholesale.comwww.blastwholesale.com
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