Sample Business Proposals Equity Ownership Stake Sample Proposal

Equity Ownership Stake Sample Proposal

February 20xx Ben Gerraty Chairman Benson & North Investments P.O. Box New Haven CT Dear Mr. Gerraty As you are no doubt aware every day around the world millions of pets people and valuable pieces of equipment go missing. To date people have generally used RFID tags for tracking purposes. RFID tags have limited range known privacy issues and require specialized equipment for reading. few GPS units have also been developed for specialized tracking uses such as hunting dog collars but these are awkward and require handheld receivers which make the overall product very expensive. At NeverLost Products we have developed new small tag that contains GPS transmitter. We have combined this tag with software that can be downloaded to any smart phone and then used to track the tag. This combination can be manufactured and sold in package costing less than $25 and we believe that consumers would gladly pay as much as $80 for each package.

We are offering you the opportunity to own twenty percent of our company for an initial investment of $700 000.00 which will allow us to begin marketing manufacturing and distributing our products. See the pages within for product descriptions timelines and projected expenses. Sincerely Mark Guymon Partner NeverLost Products LLC 555 555 5555 mg@neverlostproducts.com www.neverlostproducts.com NeverLost Products LLC. 3rd Ave South Ashford CT PH 555 555 5555 FX 555 555 5556 www.NeverLostProducts.com Equity Investment Offer February 20xx

Prepared for. Ben Gerraty Chairman Prepared by. Mark Guymon Partner At NeverLost Products we have developed new small tag that contains GPS transmitter. We have combined this tag with software that can be downloaded to any smart phone and then used to track the tag. We are offering you the opportunity to own twenty percent of our company for an initial investment of $700 000.00 which will allow us to begin marketing We plan to market and package our GPS tag and software combinations in the following products. . Pet tags

We envision that this will be the product line that will initially sell the most. Our tags can be easily made small enough to attach to any medium to large dog as well as to halters worn by various types of livestock. Recommended Retail Price. $79.99 . People tags Similar to pet tags but these tags can be made into attractive jewelry medallions pendants for wear by children or vulnerable adults. Recommended Retail Price. $79.99 $99.99 depending on jewelry design . Tags for valuable merchandise Imagine being able to locate your briefcase purse suitcase luggage or even your car keys with this device. GPS tags can be produced with variety of attachment links for use with various types of merchandise. Recommended Retail Price for tag receiver pack. $79.99 $89.99 depending on design and type of attachment . Software application Each tag must be tracked via our special software application which can be downloaded to any of eight smart phones for use with any of four common mapping programs. As time progresses we will need to continually update and adapt our software for use with new hardware and software.

Download instructions and product key will be included in all packages mentioned above. NeverLost Products has already built two basic prototypes. . sturdy waterproof tag with embedded GPS chip intended for use with animals devices such as luggage or with people . basic packaging for the above with documentation explaining how to download the tracking application to any internet connected phone and input the unique key code as well as how the tracking application interacts with common mapping programs We have tested our tracking software with all cell phone applications supplied by the three major manufacturers of mapping products. The device has performed as expected according to our specifications. We have also tested our software installation instructions with typical smart cell phone users and streamlined our instructions to remove any confusion. With funding we hope to extend our prototyping in two areas.

. We want to develop variety of designs that can be pressed onto the tag. identification information primarily for use with pets or devices and jewelry type designs that can be pressed onto the medallion for attractive wear by people. We have preliminary agreement in place to work with the leading manufacturer of equipment for engraving pet tags and we have several jewelry designers lined up to contribute to our medallion product. . We want to create packaging information that explains how users can have identification engraved on the ID design at their local pet store and information about how to securely attach the designs to the GPS transmitter tag. After working out any glitches in the prototypes we plan to manufacture and distribute our lines of products as quickly as possible. NeverLost Products has already produced and tested basic working prototype of our GPS tag software application product along with basic packaging and instructions. Now we need to extend our prototypes to create multiple product lines get our marketing plan in place get our products manufactured and begin distribution. The Goal Within one year we want to have NeverLost products available in pet stores in luggage stores and everywhere via the internet marketplace. The Process We need to work with marketing experts to refine our basic working prototype to compete as three separate packages for sale to different markets. We estimate that this planning process will take approximately three months. Then we need to produce the products and packaging. We have preliminary bids and schedules from several manufacturers. We believe manufacturing will take approximately five months from signed agreement to shipment stage. We hope to do most distribution directly from the manufacturer but we will also need to secure warehouse space and distribution services for surplus inventory. Important Factors Naturally marketing and manufacturing schedules are key to our success. But one of the biggest factors that may affect our overall schedule is the cell phone business. Smart cell phones and applications for them are exploding into the public sector and we need to keep up with new developments to expand the market for our products. As our GPS tracking software application is downloaded via the internet adding capabilities for new devices and mapping programs will not affect our manufacturing process but may affect our packaging and our marketing efforts.

NeverLost Products LLC requires startup funding for getting our products to market. We are requesting $700 in startup funds to be used as follows. . Marketing Design & Advertising Campaign Amount. $200 We will use these funds for naming branding our products; designing our packaging; and planning and implementing marketing campaign. . Prototyping Manufacturing & Packaging Amount. $300 As discussed on the Prototyping page we want to refine our basic prototypes to fit three product lines. Initially we plan to manufacture 000 of the pet tag package 000 of the jewelry tag package and 000 of the luggage device tag package. . Sales & Distribution Amount. $200 NeverLost Products will use this money to hire sales representatives to visit prospective customers hire customer service representatives to take orders for our products and to distribute products as needed from our warehouse.

NeverLost Products expect to be self sustaining by the end of our first year and highly profitable by the end of our second year.

Writing the Prototyping document (template originally used to create this sample)

Use the Prototyping template to describe your plans for creating prototypes. The term prototype is often used interchangeably with the term model. Proposal Pack also includes Modeling template that you might choose to use to describe your project. A prototype is representation of an idea built to test design and engineering concepts or to elicit further discussion of project. For example an aviation company might build prototype of new airplane wing in order to test it in wind tunnel; furniture designer might construct prototype of new chair design to get the opinions of furniture retailers. prototype might be constructed to test only the look and feel of new product or it might be working prototype in which the product is fully operational so that its functions can be tested. Prototypes can also be generated by computer programs and exist only as computer files instead of as physical objects. Generally speaking most design projects create several prototypes before settling on final design that will be produced. Introduce the topic of prototyping here and explain why it is vital to your project to create one or more prototypes. Describe your plan for creating one or more prototypes here. Issues to include are. the reasons for constructing the prototype how and when the prototype will be created and how much it will cost how the prototype will be evaluated and what will happen after evaluation is complete.

How do you write a Uses of Funds document? (template originally used to create this sample)

Company name requires funding for the completion of the project. Funds are to be used as follows. Describe all the ways funds granted will be used by your company to accomplish the proposed project. Examples might be. hiring staff upgrading computer systems conducting studies etc. Funding Use #1 Amount. Amount of the funding allocated for this use. Describe how funds will be used. Describe expected results of this use.

Funding Use #2 Amount. Amount of the funding allocated for this use. Describe how funds will be used. Describe expected results of this use. Funding Use #3

Amount. Amount of the funding allocated for this use. Describe how funds will be used. Describe expected results of this use.

How do you write a Time to Market document? (template originally used to create this sample)

Use this page to discuss the length of time you estimate it will take from the initial product concept to getting finished product on the market. Introduce the purpose of this document here and explain the importance of time to market for your proposal. For example your proposed project may only be successful if you start immediately because you are aware of competitor already developing similar product. The Goal Describe your goal the finished product you intend to create. You may need to specify certain quantity of these products as part of your goal. The Process

Describe the process of developing your product from concept to finished product. This section may be quite long or you may want to summarize the process here and reference other documents in your proposal for details. Important Factors Describe your competition any dependencies that may affect the schedule any stages at which major decisions must be made to continue or change course in short anything that may affect the time to market. Add summary statement here. You might want to invite readers to comment on your estimate of time to market or urge them to take action so the process can begin as soon as possible. Web site domain URL