Sample Business Proposals / Equity Ownership Stake Sample Proposal

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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. A 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 a new small tag that contains a 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 a 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. At NeverLost Products, we have developed a new small tag that contains a 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 a 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.

A 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 150 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 a 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 a 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 a 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 $700,000 in startup funds, to be used as follows.

Marketing Design & Advertising Campaign

Amount, $200,000. We will use these funds for naming branding our products; designing our packaging; and planning and implementing a marketing campaign.

Prototyping, Manufacturing, & Packaging

Amount, $300,000. As discussed on the Prototyping page, we want to refine our basic prototypes to fit three product lines. Initially, we plan to manufacture 2,000 of the pet tag package, 1,000 of the jewelry tag package, and 1,000 of the luggage device tag package.

Sales & Distribution

Amount, $200,000. 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.