[NAMEOFCOMPANY] BUSINESSPLAN

[datebusinessplanissued]

Contact:[name],CEO[orPresident] [address] [phoneno.&faxno.] [email] [website]

Theinformationcontainedinthisbusinessplanisconfidentialandproprietaryto[NAMEOF COMPANY](theCompany)andisintendedonlyforthepersonstowhomitistransmittedbythe Companyoritsrepresentatives.Anyreproductionofthisdocument,inwholeorinpart,orthe divulgenceofanyofitscontentswithoutthepriorwrittenconsentoftheCompany,isprohibited. Thisisabusinessplan.Itdoesnotimplyandshallnotbeconstruedasanofferingofsecurities.Persons interestedinpursuinganinvestmentshouldcontacttheirprofessionaladvisors.

BusinessPlanCopyNo._______

ConfidentialityAgreement Theundersignedreaderacknowledgesthattheinformationprovidedby[NAMEOF COMPANY]inthisbusinessplanisconfidential.Therefore, theundersigned reader agreesnottodiscloseanyofsuchinformationwithouttheexpresswrittenpermission of[NAMEOFCOMPANY]. Itisherebyacknowledgedbytheundersignedthattheinformationtobefurnishedin thisbusinessplanisinallrespectsconfidentialinnature(otherthansuchinformation whichisalreadyinthepublicdomainthroughothermeans)andthatanydisclosureor useofsamebytheundersignedmaycauseseriousharmordamageto[NAMEOF COMPANY]. Uponrequest,thisdocumentistobeimmediatelyreturnedto[NAMEOFCOMPANY].

Signature PrintName Date

TABLEOFCONTENTS
ConfidentialityAgreement.......................................................................................................................................1 TABLEOFCONTENTS............................................................................................................................................2 EXECUTIVESUMMARY..........................................................................................................................................1 I.COMPANYOBJECTIVES.....................................................................................................................................2 II.THECOMPANY....................................................................................................................................................2 III.DESCRIPTIONOFPRODUCTS&SERVICES............................................................................................4 IV.MARKETANALYSIS&MARKETINGPLAN.............................................................................................4 V.MANAGEMENT&ORGANIZATION............................................................................................................6 VI.FINANCIALPLAN..............................................................................................................................................7 APPENDIX A [supportdocuments]..................................................................................................................................15

[NAMEOFCOMPANY] BUSINESSPLAN EXECUTIVESUMMARY

(NOTE:TheExecutiveSummaryisthesectionofthebusinessplaninwhichyougiveanoverviewofthebusiness, itspresentstatusandfuturedirection,andhighlightthekeypointsandthepurposeofyourbusinessplan.This sectionshouldbewrittenaftertherestofthebusinessplan,andshouldnotexceed3pagesinlengththatswhy itscalledasummary.)

CompanyBackground [forexistingcompanies] [NAMEOFCOMPANY](theCompany)isa [describe,e.g.acorporationincorporatedunderthelawsof theState/Provinceof___________] whichhasbeenengagedinthebusinessofdesigning,manufacturing, distributionandmarketingof[describetheclothinglines]inthe_________areaforthepast____years. [fornewcompanies:] [NAMEOFCOMPANY](theCompany)isintheprocessofbeingformed/createdasa [describe,e.g.a corporationincorporatedunderthelawsoftheState/Provinceof___________] ,forthepurposeofdesigning, manufacturing,distributionandmarketingof[describetheclothinglines]inthe_________area. TheCompanywillbemanagedbyateamof_____________individualswithatotalof_______years experienceinthefieldof________________,achieffinancialofficerwith_____yearsofaccountingand administrativeexperience,and_________[list]. Mission [capsuleversionofthecompanysvision/missionstatement] Objectives [brieflydescribetheshorttermandlongtermobjectivesofthecompanywithrespecttosales,profits, growth,etc] TheMarket [brieflyoutlinethemarketandavailablecustomerbaseinthearea,thenumberofcompetitorsalready servicingthatmarket,andthereason(s)whycustomerswillchooseyourbusinessoverthecompetitors]

CapitalRequirements Initialcapitalfundingof$_____________isrequiredfor_________________________.$_______________ ofthisamountwillbeprovidedbytheprincipalshareholder(s).

I.

COMPANYOBJECTIVES

(NOTE:Thissectionsetsoutthecorporateobjectives,missionstatement,currentphaseofyourbusiness,andthe companysgoalsandobjectivesforfuturegrowth.)

1.1

Goals&Objectives

TheCompanysgoalsare: 1.2 ____productionclientsbytheendofYear1,increasingto______productionclientsby theendofYear3; grossmarginofatleast____%; positivenetworthbytheendofYear___; [other]

PastAchievements

[describethecompanyspastsuccessesintheindustryifthecompanyhasnotrackrecord,citepastachievements intheindustrybyseniormanagement]. TheCompanyhasestablishedaqualifiedmanagementteamwitha combinedtotalof______yearsofexperienceinthe________________industry.TheCompanyscurrent clientsinclude____________________.Wehavedevelopedtacticalallianceswith_________________. 1.3 Vision/MissionStatement

TheCompanyseeksto[establishapresence/leverageitsposition]inthe___________apparelindustry bydesigning,manufacturingandmarketingitsprivatelabelproductlines,andbyprovidingcreative concepts together with theexpertise required todesign, manufacture, import and distribute apparel productstoincreasebrandrecognitionandsales. 1.4 KeystoSuccess

TheCompanyskeystosuccesscanbedefinedasfollows: ability toanticipate and respond quickly tochangesindirectionintheindustry and consumerbuyingtrends ability to meet deadlines and achieve milestones in the design, production and manufacturingprocess [other]

II. THECOMPANY
(NOTE: Use this section to describe the history, structure, purpose, operations, board of directors, outside consultantsandstrategicalliancesofthebusiness.Ifyouarestartingupanewcompany,describetheproposed structure,andsetoutthereasonsforstartingupthebusiness.)

2.1

History&Background

TheCompanywasincorporatedon_____________[date]inthe[State/Province]of__________.Thehead officeoftheCompanyislocatedat[address]. Todate,theCompanyhasissued___________sharesofcommonstock [providedetailsonallsharesofstock issuedandoutstanding].Thefollowingtablesetsoutthecurrentshareholdersandthenumberofshares ownedbyeach:

3 NameofShareholder Address No.&ClassofShares

TheremainderoftheissuedandoutstandingcommonsharesareretainedbytheCompanyfor[future distribution/allocationundertheCompanysemployeestockoptionplan/etc]. The Company currently has outstanding shareholder loans in the aggregate sum of $___________________.Thefollowingtablesetsoutthedetailsoftheshareholderloans: NameofShareholder AmountofLoan DateofLoan BalanceOutstanding

2.2

Directors

The Companys Board of Directors, which [will be/is] made up of highly qualified business and industry professionals/experts, [will be a valuable asset to the Company and instrumental to its developmentbyassisting/assists]ourmanagementteaminmakingappropriatedecisionsandtaking themosteffectiveaction;however,they[willnotbe/arenot]responsibleformanagementdecisions.The followingpersons[willmakeupthe/arethecurrent]BoardofDirectorsoftheCompany: [listeachperson ontheBoard] NameofPerson business & educational background, past industry experience, other companies in which the personplayedakeyrole NameofPerson business & educational background, past industry experience, other companies in which the personplayedakeyrole 2.3 OutsideConsultants&ProfessionalAdvisors

Atpresent,nooutsideconsultantsorprofessionaladvisorshavebeenretained. [ifoutsideconsultantshave beenretained,listthemandtheircredentials:] TheCompanysoutsideconsultantsandprofessionaladvisors provide tremendous input and support to enable management to make wellinformed, creative and appropriatedecisions: 2.4 [accountant/cpa] [legalcounsel] [others]

StrategicAlliances

[Liststrategicallianceswhichassistthecompanyinprovidinghighqualityserviceandestablishing/maintaining itsreputation,andwhichgivethecompanyanadditionalcompetitiveedge]

III. DESCRIPTIONOFPRODUCTS&SERVICES
(NOTE:Inthissection,describeyourcurrentproductsandservices,theuniquefeatures,prices,etcthatyouoffer, currentandfutureR&Dplans,enhancements,productionanddistributionstrategies.Includedataonproprietary processes,patents,copyrights,etc,whichmakeyourproductsunique.)

3.1

Facilities&Operations

[describethecompanysoffice(s),squarefootage,location,etc,andwhetherthecompanyownsorleases itsoffice(s)] [describetechnology,computersystems,otherequipmentthecompanyhasatitsdisposal] 3.2 Products&Services

TheCompanyisinthebusinessofdesigning,manufacturing,distributionandmarketingof[describe theclothinglines]. DesignServices. TheCompanyworkswithitsclientstodefinetheclientsmarketingandsalesobjectives. Fromthisprocess,amerchandisedcollectionofapparelandaccessoriesisdesignedanddevelopedto meetthoseobjectives.Oncetheclienthasapprovedtheconcepts,designs,colors,fabrics,targetprices, productionvolumesandtimelines,thetechnicaldesignprocessbegins,anddetailedspecificationsheets arecreated for each product and style. The Company oversees theprototypedevelopment with the manufacturer. ProductLines.ProductlinesdesignedanddevelopedbytheCompanyincludethefollowing:[describe] 3.3 FuturePlans

ActiveSportswear.TheCompanyisseekingtotakeadvantageofopportunitiesintheactivesportswear marketbycreatingateeshirtbrand.Tothatend,wearenegotiatingacontractwith______________, whowillprovideuswithinnovativeteeshirtdesignsandfinishedproducts.Approximately$_________ ofthecapitalraisedwillbeallocatedforproductmarketing,productionandprinting/silkscreening. Firstyearsalesprojectionsofthislineare$______________,increasingto$______________inYear3.

IV. MARKETANALYSIS&MARKETINGPLAN
(NOTE:Usethissectiontoidentifyyourcurrentmarket(ifanexistingbusiness)and/oryourtargetmarket(for neworexpandingbusinesses),thegrowthpotentialofthemarket,marketshare,competitorsandtheirproducts andservices,factorswhichimpactyourbusiness(suchasseasonalsales,nichemarkets,etc).Thissectionwillalso bewhereyououtlineyourmarketingplan(sales,advertising,PR).)

4.1

IndustryAnalysis

[Marketresearchwillberequiredforthissection.Discusstheindustryingeneral,andspecificallyinyourarea, growthorlackofgrowth,currenttrends,etc] Recentmarketresearchshowsthatthedemandforbrandnameclothingandaccessorieshasincreased nationallyattherateof___%peryearoverthepast___years.Currentlynamebrandssell_________ times better than generic lines of the same products. This trend has resulted in fewer quality non branded products available to consumers at lower prices. The Company can take advantage of the opportunitytofillthisvoid,tocreatequalityprivatelabellinesatreasonableprices.

4.2

TargetMarket

[setoutdemographicsforyourtargetmarketagerange,gender,educationlevel,incomelevel,etctocreatea profileofyourtargetmarketsegments.] TheCompanystargetmarketscanbeseparatedintothefollowingsegments: ___________ apparel companies who are seeking to broaden their product range or createnewlinestocomplementtheirexistingproductlines. retaildistributionoutletswhoareseekingtocomplementtheirbrandnamelineswith privatelabeldesignerlines; [other]

___________Apparel Companies. TheCompanywilltargetthosecompanieswhoareseeking adesign consultant,andwhoarelookingtooutsourcetheconceptdevelopmentanddesignofnewapparellines tocomplementtheirexistingproducts. RetailDistributionOutlets.Thesecondtargetmarketistheretaildistributionoutletwhichwantstobring inprivatelabeldesignerlinesdesignedexclusivelyfortheirstores.Theseproductswillallowthemto build equity intheir brand names by selling privatelabellines which havehighgross margins and whichofferahigherlevelofqualitypricedlowerthannationallyadvertisedbrands. [otherdescribe] TheCompanysgoalistoattractclientswhichwillgenerateproductionordersofatleast$____________ peryear. 4.3 Competitors

[Discussthecompanyscompetitorsinthelocalmarket,howmuchofthemarketsharetheyhold,theirstrengths andweaknessesincomparisonwiththecompany] FreeLance Designers. These are often individuals who were previously on staff with brand name companies,whohaveleveragedtheirpastexperiencetoserviceanumberofclientsonafreelancebasis. The Companys advantage over these competitors isthat we offer our clients the ability to use one sourcefortheentireprocess,fromdesignthroughmanufacturing. Private Label Manufacturers. Many large retail distributors have inhouse private label development departments.ThereareopportunitiesfortheCompanytosupplyitemswhichthesemanufacturersare unabletosupply. 4.4 CompetitiveEdge

Dueto[theCompanys]experienceandexpertiseintheindustry,weareabletoforeseemarkettrends, givingustheabilitytobefirsttomarketwithnewandinnovativeproductstoaddressthosetrends.In addition,productlifecycleisshortintheclothingindustry,andnewproductsarequicklyimitated.The Companycanofferameansforclientstorespondquicklytoimitatorsandtonewinnovations. Eachofourtargetmarketsrecognizestheadvantagesofdesignandproductionoutsourcing.Itallows them to be adaptable and to respond quickly to industry swings, and to avoid the costs of extra

6 personnelandproductionequipment.TheCompanycanhandleallstagesofdesign,developmentand production,providingourclientswiththebenefitofhavingonlyonesourcetodealwiththroughoutthe process. 4.5 MarketNeeds

[discussthemarketneedsofyourtargetmarkets,andhowyouwillmeetthem] Retaildistributorslooktoprivatelabelmanufacturingtoprovidebasiccommodityitemsatreasonable priceswhichtheycanpassontotheircustomers.Theycompensateforlowergrossmarginsperitemby sellinginhighvolume.[setouthowthecompanywillmeetthisneed] [other] 4.6 MarketingStrategy

[describemarketingplatformsandstrategiesthatthecompanywillusetoachieveitsgoals] CurrentlyalloftheCompanysmarketinghasbeenthroughwordofmouthreferrals.TheCompanyis seekingtofocusitsmarketingeffortstospecificallyfocusonitstargetcustomersegmentsbyproactively approachingthemwithmerchandisedconceptsforcompletelinesofproductsandaccessories. [describeplannedmarketingefforts,egtradeshows,brochures,salespresentations,etc] 4.7 PricingStrategy

The Companys revenues will come from several streams: design consulting fees, royalty payments, manufacturingcommissions,anddirectsales. Designconsultingfeeswillbechargedattherateof$___________per______.Royaltyfeesrangefrom ___%to___%ofgrossproductsalesandarebasedon_______________. Manufacturingcommissionsareearnedbymanagingtheproductionofapparel,andrangefrom___%to ___%oftheFOBcost.Theamountofthefeesarebasedon_____________________. Productpricingwillbeasfollows:[setoutproductmarkupstructureandretailcosttoconsumer]

V. MANAGEMENT&ORGANIZATION
5.1 ManagementTeam

The strength of the Companys management team stems from the combined expertise in both managementandtechnicalareas.[ifappropriate:Thishasproducedoutstandingresultsoverthepast____ years. The leadership characteristics of the management team have resulted in the establishment of broad,flexiblegoalsdesignedtomeettheeverchangingdemandsofourquicklymovingmarketplace.] NameofPerson,President(includeprofessionaldesignations,degrees,etc) business & educational background, past industry experience, other companies in which the personplayedakeyrole [includeasectionforeachmemberoftheteamresumes/CVsofeachdirectorandmanagershouldbe includedwiththesupportingdocuments]

5.2

OrganizationalStructure

[Nameofperson]istheChiefOperatingOfficeroftheCompany. [describetheremainderoftheorganization structure,departmentsanddepartmentheads,etc]. 5.3 PersonnelPlan

[setouttheinitialpersonnelnumbers,andexpectationsforincreasedordecreasedstaffrequirementsoverthefirst 3yearsofoperations] TheCompany[willemploy/currentlyemploys]_______officestaff,_______________________ [others list].Weanticipatehiringanadditional_____________staffwithin___daysofinitialcapitalfunding. Theadditionalpersonnelwillberequiredto________________________.

VI. FINANCIALPLAN
(NOTE: Usethissectiontodescribe(forexistingbusinesses)orproject(forneworexpandingbusinesses)your companyscapitalrequirements,projectedprofitsorlossesforthenext15years,theintendeduseofproceedsfrom yourfundraisingefforts,ifraisingmoneythroughinvestors.)

6.1

Sales/RevenueForecast Year1 Year2 Year3

Sales/RevenueStreams Designconsultingfees Royaltyfees Manufacturingcommissions Sales TOTALSALES/REVENUES DirectCostofSales Designconsulting Manufacturing SUBTOTALDIRECTCOSTOFSALES 6.2 ImplementationMilestones

ThefollowingimplementationmilestonesidentifytheexpectationsoftheCompany,aswellassetting outourstartupplan. MILESTONES Incorporation Financialorganization StartDate EndDate Manager Budget

Other

8 TOTAL: $

9 6.3 StartUpRequirements STARTUPEXPENSES Legalcosts Consultants Rent Insurance Utilities Expensedequipment Marketingactivities Developmentcosts Other TotalStartUpExpenses StartUpAssetsRequired CashBalanceonStartingDate OtherCurrentAssets TotalCurrentAssets LongtermAssets TotalAssets TOTALREQUIREMENTS FUNDING Investment Investor1 Investor2 Other TotalInvestment CurrentLiabilities AccountsPayable CurrentBorrowing OtherCurrentLiabilities TotalCurrentLiabilities LongtermLiabilities TOTALLIABILITIES LOSSATSTARTUP TOTALCAPITAL TOTALCAPITALANDLIABILITIES

10 6.4 ProjectedProfitandLoss $ Year1 $ Year2 $ Year3

PROFORMAPROFIT&LOSS Sales&Revenues DirectCostofSales Other TOTALCOSTOFSALES GrossMargin GrossMargin% OPERATINGEXPENSES Payroll SalesandMarketingandOtherExpenses Depreciation LeasedEquipment Utilities Insurance Rent Research&Development TravelExpenses Commissions PayrollTaxes Other TotalOperatingExpenses ProfitbeforeInterestandTaxes InterestExpense TaxesIncurred NetProfit NetProfit/Sales

11 6.5 ProjectedCashFlow Year1 Year2 Year3

PROFORMACASHFLOW CASHRECEIVED CashfromOperations CashSales CashfromReceivables SubtotalCashfromOperations AdditionalCashReceived SalesTax,VAT,HST/GSTReceived NewCurrentBorrowing NewOtherLiabilities(interestfree) NewLongtermLiabilities SalesofOtherCurrentAssets SalesofLongtermAssets NewInvestmentReceived SubtotalCashReceived EXPENDITURES ExpendituresfromOperations CashSpending PaymentofAccountsPayable SubtotalSpentonOperations AdditionalCashSpent SalesTax,VAT,HST/GSTPaidOut PrincipalRepaymentofCurrentBorrowing OtherLiabilitiesPrincipalRepayment LongtermLiabilitiesPrincipalRepayment PurchaseOtherCurrentAssets PurchaseLongtermAssets Dividends SubtotalCashSpent NetCashFlow CASHBALANCE

12 6.6 ProjectedBalanceSheet Year1 Year2 Year3

PROFORMABALANCESHEET ASSETS CurrentAssets Cash AccountsReceivable PrepaidandOtherCurrentAssets TotalCurrentAssets LongtermAssets LongtermAssets AccumulatedDepreciation TotalLongtermAssets TOTALASSETS LIABILITIESANDCAPITAL CurrentLiabilities AccountsPayable CurrentBorrowing OtherCurrentLiabilities TotalCurrentLiabilities LongtermLiabilities TOTALLIABILITIES CAPITAL PaidinCapital RetainedEarnings Earnings TOTALCAPITAL TOTALLIABILITIESANDCAPITAL NETWORTH

13 6.7 BusinessRatios
RATIOANALYSIS Year1 Year2 Year3 IndustryProfile

Thefollowingtablecontainsimportantratiosforthe_________industry,asdeterminedbytheStandardIndustryClassification(SIC) code,_________.

SalesGrowth PercentofTotalAssets AccountsReceivable Inventory OtherCurrentAssets TotalCurrentAssets LongtermAssets TOTALASSETS CurrentLiabilities LongtermLiabilities TOTALLIABILITIES NETWORTH PercentofSales Sales GrossMargin Selling,General&AdministrativeExpenses AdvertisingExpenses ProfitBeforeInterestandTaxes MainRatios Current Quick TotalDebttoTotalAssets PreTaxReturnonNetWorth PreTaxReturnonAssets BusinessVitalityProfile SalesPerEmployee SurvivalRate AdditionalRatios NetProfitMargin ReturnonEquity ActivityRatios AccountsReceivableTurnover CollectionDays InventoryTurnover AccountsPayableTurnover PaymentDays TotalAssetTurnover DebtRatios DebttoNetWorth CurrentLiabilitiestoLiabilities LiquidityRatios NetWorkingCapital InterestCoverage AdditionalRatios AssetstoSales CurrentDebt/TotalAssets AcidTest Sales/NetWorth

14
RATIOANALYSIS DividendPayout Year1 Year2 Year3 IndustryProfile

15

APPENDIXA [supportdocuments]
(NOTE:Includesuchthingsasdirector/seniormanagementresumes,financialstatements,designs,copyofthe lease,pressclippings,budgets,marketresearch,allotherrelevantdocumentation)