Business Plan: Contact: Summer Jackson and Scott Landrum Phone: (530) 742-8482 E-Mail: E-Mail

Business Plan
Contact: Summer Jackson and Scott Landrum Phone: (530) 742-8482 E-mail: summer.jackson@VIVAchoices.com E-mail: scott.landrum@VIVAchoices.com
MISSION
To become Americas fastest-growing, most trusted source for life services, resources, products, and support necessary to free the Baby Boomer from worry, stress, and guilt and to help their parents live a wonderful quality of life while aging in the comfort and familiarity of their own homes.
2 CONFIDENTIAL Do Not Distribute Without Permission
Table of Contents 1.0 Executive Summary ...................................................................................... 4 1.1 Financial Objectives ..................................................................................... 5 1.2 Company Ownership ................................................................................... 7 1.3 Company Location ....................................................................................... 7 2.0 Products and Services ................................................................................. 8 2.1 Product and Service Description .................................................................. 9 2.2 Revenue Opportunities .............................................................................. 10 3.0 Market Analysis Summary ......................................................................... 11 3.1 Market Segmentation ................................................................................. 20 3.2 Market Needs............................................................................................. 20 3.3 Industry Analysis ........................................................................................ 21 3.4 Competitive Comparison ............................................................................ 21 4.0 Strategy and Implementation Summary ................................................... 23 4.1 Competitive Edge....................................................................................... 23 4.2 Marketing Strategy ..................................................................................... 24 5.0 Management Summary ............................................................................... 26 5.1 Personnel Plan........................................................................................... 30 6.0 Financial Indicators .................................................................................... 31 6.1 Revenue Forecast...................................................................................... 32 6.2 Break-even Analysis .................................................................................. 33 6.3 Projected Profit and Loss ........................................................................... 34 6.4 Projected Cash Flow .................................................................................. 36 6.5 Projected Balance Sheet ........................................................................... 37 6.6 Sensitivity Analysis .................................................................................... 38 Appendix ............................................................................................................ 39
1.0 Executive Summary

There are nearly 77 million Baby Boomers in America who control more than $2 trillion annually in spending power. By 2030, this vital generation will comprise 20% of the U.S. population. Inevitably, this massive aging of the populace will have an increasing financial impact on healthcare and other service providers that allow them to function in daily life. There are an estimated 34 million Americans caring for aging parents (or an aging spouse) who spend an average of $5,500 a year to cover the costs of groceries, household goods, drugs, medical copayments, and transportation, totaling an annual expenditure of $187 billion. As a result, new opportunities exist to aid in everything from legal advice to transportation to taking out the trash. Baby Boomers are the main reason the health advocacy field is estimated to become a $1 billion market soon. As Baby Boomers are now relied upon to care for their elderly parents, soon also their children will be called upon to do the same. Corporations too are getting on board, realizing that employees need help caring for their parents. Services are being unveiled that marry everyday tasks with professional organizations created solely to meet this new market need. VIVA! Choices, Inc. (also referred to as the Company) is a new venture that, with one phone call or online order, can connect Baby Boomers and their parents with all of the resources and services they need. VIVA! Choices is a membership organization that will be the first point of contact and central source for the resources, products, and home and personal services necessary for Boomers and their families to live an unprecedented quality of life, well into their 100s. VIVA! Choices will help the Boomer recapture their time and will provide the services that their family members need to live a happy and complete life. A large network of VIVA! Personal Assistants, along with Family Concierges, who are employees and independent contractors, will perform services such as transportation, errand services, housekeeping, light maintenance, grocery and prescription delivery, personal shopping, and much more. With Team VIVA!, a Preferred Provider network of planning, health, and wellness professionals in approximately 75 fields, members can get advice on legal, financial, and medical issues, as well as have access to specially trained realtors and aging-in-place consultants. VIVA! Choices will provide Americans with the Choices necessary to live a healthy, consistent, safe, and comfortable life as they age. Revenue is generated by consumer, vendor, and Preferred Provider membership fees, as well as service revenues from VIVA! Personal Assistant, VIVA! Family Concierge, and Real Estate and Universal Design services. Additional revenue will be generated through course participation in the VIVA! Center for Life Development and Planning and the VIVA! Choices Marketplace. VIVA! Choices will initially serve the Baby Boomer and aging population surrounding its headquarters in Marysville, California. Within just a fifty mile radius of the Companys planned location, there reside more than 2 million individuals, with 37.2% of this population (or approximately 889,869 people) over the age of 45. The Company will target relatively affluent children of the elderly and those entering retirement age with a particular focus on female Baby Boomer professionals who desire more free time, less stress, and help with the increasing demands of their lives. VIVA! Choices is the vehicle by which the Baby Boomer will re-define aging as we know it. Life is busy. Trying to manage work and family obligations can often be difficult; leaving individuals caught between lifes many demands. Enter VIVA! Choices. The Companys provision of reliable, quality services for the Boomer and their family members, as well as providing resources, information, and tools to age successfully and comfortably in their own homes will meet a growing need in the industry today. The Company in currently working with Cazarin Web Group, www.cazarin.com, on the development of the VIVA! Choices website and social network and has set up a strategic alliance with the publisher of Rocklin & Roseville Today, www.rocklintoday.com , as well as Sacramento Today to develop, as a Preferred Provider benefit, online news and yellow pages in every community where VIVA! Choices operates. The Company has negotiated the licensing of 900 courses on a per use basis from Westnet Learning for the VIVA! Choices Center for Life Development and Planning, and is a member of the National Aging in Place Council. The VIVA! Choices Corporate Office was acquired rent-free in exchange for stock, and the Company has enlisted experienced 4 CONFIDENTIAL Do Not Distribute Without Permission
advisors who have consulted for companies such as Warner Bros. Studios, Eastman Kodak, Bausch and Lomb, Lee Hecht Harrison, Right Management Consultants. These advisors, who have been involved with the development of VIVA! Choices from the beginning, will prove a valuable element of the extended VIVA! Choices Team. To promote its services, VIVA! Choices will use direct sales teams, strategic Internet advertising, referral marketing, established industry relationships, and media promotions through public relations, a press kit, and a radio program. All marketing efforts will highlight the Companys core values and mission. To achieve the Companys objectives, VIVA! Choices, Inc. is seeking $1,000,000 in total funding through outside investment in four rounds of $250,000 each. Summer Jackson and Scott Landrum will own and operate the Company. Each member of the management team is vastly experienced in their chosen field and qualified to drive the success of the VIVA! Choices venture. For a detailed description of the specific qualifications and achievements of management and Company advisors, please see 5.0 Management Summary.
1.1 Financial Objectives

The following table and graphs illustrate the financial goals of the Company during the next five years:
Financial Highlights ($000)

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Y ear 2 Year 3 Year 4 Year 5
Revenue Gross Margin Operating Expenses EBITDA Net Profit
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
12 12 47 (35) (35)
16 16 59 (43) (43)
25 25 94 (70) (70)
32 32 104 (72) (72)
43 43 109 (66) (66)
72 72 124 (51) (51)
77 77 141 (64) (64)
276 276 677 (401) (401)
6821 6821 5311 1510 1122
10972 10972 8351 2621 1704
14728 14728 10534 4194 2726
19237 19237 12985 6252 4064
Gross Margin/Revenue EBITDA/Revenue Net Profit/Revenue
0% 0% 0%
0% 0% 0%
0% 0% 0%
100% 100% 65%
100%
100%
100%
100%
100%
100%
100% -71% -71%
100% -83% -83%
100% -145% -145%
100% 22% 16%
100% 24% 16%
100% 28% 19%
100% 32% 21%
100% -291% -263% -282% 65% -291% -263% -282%
-227% -156% -227% -156%
Net Cash Flow Cash Balance - Ending
0 0
0 0
0 0
0 0
0 0
248 248
(42) 205
(66) 139
174 313
(70) 243
(48) 195
(51) 143
143 143
1729 1872
1773 3646
2800 6446
4160 10605
Projected Operating Hig hlights By Year $25,000
($ 0 00 )
Pr oj ected Reven ue B y Year $25,000
($ 00 0)
$20,000
$20,000
$15,000
$15,000
$10,000
$10,000
$5,000
$0
$5,000
-$5,000
Year 1 Yea r 2 Year 3 Year 4 Year 5
$0
Ye ar 1
Yea r 2
Y ea r 3
Ye ar 4
Ye ar 5
Revenue
Gross Margin
EBITD A
Net Profit
Projected Cash Flow By Year $12,000
($ 0 00 )
Projected Net In come B y Year $4,500 $4,000
($ 00 0 )
$10,000
$3,500 $3,000
$8,000
$2,500 $2,000 $1,500
$6,000
$4,000
$1,000 $500
$2,000
$0 -$500
$0
Year 1
Year 2
Year 3
Year 4
Year 5
-$1,000
Year 1
Year 2
Year 3
Year 4
Year 5
N et C ash Flow
C ash Balance
1.2 Company Ownership

VIVA! Choices, Inc. is an S-corporation registered in the state of California. The Company will be jointly owned by Summer Jackson (66%) and Scott Landrum (34%).
1.3 Company Location

VIVA! Choices, Inc. is currently headquartered at the following address: 1126 D Street Marysville, California 95901
2.0 Products and Services

VIVA! Choices is entering the market at the forefront of a movement to provide quality of life services to Americas aging population. As Baby Boomers enter retirement years one Baby Boomer turns 60 every 11 seconds they are increasingly facing time shortages while still attempting to manage their families, careers, hobbies, fitness, and they are often also caring for their parent/s. VIVA! Choices recognizes that many aging adults want to live at home, but feel threatened or helpless when facing the loss of independence that comes from the physical and mental ailments associated with aging. VIVA! Choices is a membership organization that will be the first point of contact and central source for the resources, products, and home and personal services necessary for Baby Boomers and their families to live an unprecedented quality of life, while aging in their own home, well into their 100s. The Company also realizes that many adult children, because of time or geographic constraints, cannot provide the day-to-day help that their parents may so desperately need. VIVA! Choices goal is to become the premiere guide for Baby Boomers by providing the Boomer and their parents with the life services, resources, products, and support necessary to maintain an active lifestyle while comfortably navigating the transitions of aging. The Company offers an array of services that help Boomers reclaim their own time via flexible, bundled, easy to use services and products. The Baby Boomer and their parents can have access to these services from a single point of contact everything from transportation to the doctors office to errands, a trip out to lunch, in-home dental hygiene, food delivery, in-home chefs, light maintenance/chores, housekeeping, computer support, trash take-out, and much more. In addition to these services, professional referrals for financial planners, attorneys, medi-cal planners, realtors, contractors, health planners, and much more will be available through the Adult Life Guide and the VIVA! Family Concierge. The mission of VIVA! Choices is accomplished through the intuitive connection of its six divisions that all share the same mission to help the aging and their families live a better quality of life in the comfort of their own home. These divisions are further detailed below: VIVA! Personal Assistants and VIVA! Family Concierge: VIVA! Choices will employ a vast network of service providers that allow it to, through a single point of contact, offer members flexible bundled services. VIVA! Personal Assistant services include: transportation, errand services, mobile service providers, home care services, grocery and prescription delivery, personal shoppers, notary public, and much more. For the Baby Boomer that needs more personal attention and help managing family needs, the VIVA! Family Concierge is available to help make life easier. Team VIVA!: Team VIVA! is a preferred provider network of planning, health, wellness, and retail professionals in approximately 75 fields, such as homeopathic practitioners, chiropractors, massage therapists, nutritionists, personal trainers, med spas, health clubs, and more. Other Team VIVA! providers include: o o o o o o o o Environmentally sound products and services In-home technology services Attorneys, accountants, financial planners Life coaches Aging-in-place consultants Realtors Life settlement companies Medi-cal planners
Revolutionary Real Estate: Re-defining Real Estate for Your Future Today Retirement Real Estate. This division features an equity coach called a Boomer Residential Specialist BRS that educates members on for sale by owner (FSBO) programs, reverse mortgages, conventional real estate, and buying a new home. VIVA! Choices uses a holistic approach to transactions with each family member including parents, grandparents, and kids for assessing where they are now and what their needs for 8 CONFIDENTIAL Do Not Distribute Without Permission
the future are in terms of real estate; helping clients to build, save, and enjoy their equity. Revolutionary Real Estate uses both Company-created and established training curricula. VIVA! Center for Life Development and Planning: With around 900 courses in life applications, business skills, career paths, certifications, and so on, this portal will be available to both free consumer members (partial access) and premium paid consumer members. In addition to forming strategic alliances with content providers, the Company will also market this database to potential Team VIVA! partners as an opportunity for them to train their employees and as an employee benefit for personal growth and development. VIVA! Home Remodeling and Universal Design: Universal Design is an approach to remodeling that is being increasingly integrated into the construction industry to aid Baby Boomers and their families. The housing stock in the United States is built to accommodate the average twenty-five year old, six-foot tall male. This model neglects a vast segment of the population. VIVA! Choices will remodel homes to suit the unique needs of any individual or family. VIVA! Choices Marketplace: VIVA! Choices will offer an online mall that has a wide array of high-quality products in such categories as nutrition, anti-aging, healthy pet food, exercise enhancement, weight management, and consumer electronics. VIVA! Choices members can shop and earn VIVA! Credits (1 credit = $1), which they can apply to VIVA! Services or the services of Team VIVA! Preferred Providers.
2.1 Product and Service Description

VIVA! Choices will initially roll out operations in the Greater Sacramento metro market, before regional and national expansion. The Company will introduce a new professional, the Adult Life Guide, who will represent VIVA! Choices in each VIVA! community. The Adult Life Guide will customize services for VIVA! Choices members based on the members needs as well as provide account management. The Companys services are available to clients via two membership packages: the Gold Free Membership and the Platinum Membership. The Gold Free Explore Your Options Membership with Life Choices amenities include: VIVA! Do It Membership Card: Procures VIVA! Personal Assistant for errands only, this card can be loaded with cash or VIVA! Reward Credits obtained from shopping at the VIVA! Choices Marketplace online. VIVA! blogs to talk, learn, and share with others in the community. Access to the VIVA! Choices Center for Life Development and Planning, which includes free and paid options such as take a class and learn something new, get a certification or download articles, surveys, and studies on the Baby Boomer, their parents, and employers relating to aging and lifes transitions. Weekly conference call: Calls featuring information on planning, health, exploring new options, innovative products, and aging. Free quarterly e-newsletter featuring information about Boomers, their families, and their lives. Access to exciting travel opportunities. Access to Team VIVA! Preferred Providers through the VIVA! Choices website: www.vivachoices.com, with links and access information that allow members to explore options for today and the future. Universal Design re-modeling services. Boomer Residential Specialist: Free real estate consultation with the VIVA! Choices Boomer Residential Specialist BRS. Access to VIVA! Family Concierge, who provides a higher level of services than those performed by the VIVA! Personal Assistant. VIVA! Rewards: Earn VIVA! Rewards (credits on VIVA! Choices membership card to use for VIVA! Choices services) with the purchase of Market America products.
The Platinum Peace of Mind Membership amenities include: All the benefits of the Explore Your Options membership. VIVA! Personal Assistant flexible, easy to use, bundled services: Call one number to order transportation, food, have errands run, order housekeeping, yard care, and much more. 9 CONFIDENTIAL Do Not Distribute Without Permission
Adult Life Guide Consultation: Helps get the most out of a membership through personal customization to individual needs and lifestyles. Detailed information and referrals to Team VIVA!, Monthly Accounting: Member or purchaser of membership or both receive a monthly breakdown of the expenditures of prepaid monies.
2.2 Revenue Opportunities

VIVA! Choices will develop multiple complementary revenue streams that ensure steady income year round. These include: VIVA! Choices Personal Assistant: o Monthly membership fees from vendors o 5% per transaction administrative fee for billing and bookkeeping o Interest on prepaid VIVA! Debit Cards o Monthly consumer membership fees o Adult Life Guide fees o Family Concierge fees o VIVA! Vital Document Services Team VIVA! Preferred Providers o Monthly membership o VIVA! web ads VIVA! Choices Revolutionary Real Estate o Real estate sales and referrals o VIVA! FSBO o VIVA! Mortgage o Real Estate Franchise sales o Boomer Residential Specialist fees and commissions o Web Ads VIVA! Center for Life Development and Planning o Learning portal course sales o E-book sales o Boomer residential training and other field specific Boomer training o Web Ads VIVA! Home Remodeling & Universal Design o Home remodeling o Retail product sales o Web Ads VIVA! Choices Marketplace o Business volume generated from consumer and professional membership sales Future growth and development o VIVA! Choices territory/franchise sales o National alliances o VIVA! Magazine o Multicultural development o Business Opportunities Division o International expansion
3.0 Market Analysis Summary

In order to accurately analyze the size of VIVA! Choices market, it is relevant to consider the power of the Baby Boomer population segment. According to a study published by MetLife, there are 76.95 million Baby Boomers in America, and they represent over a quarter of the population. 2005 projections forecast that by the year 2030, the Baby Boomers will be between the ages of 66 and 84 and will make up 20% of the population. The study also found that the spending power of this generation is around $2.1 trillion.1 These charts, which have been sourced from the seminal MetLife study, show pertinent figures regarding the size, income, and expenditures of the Baby Boomer generation.
MetLifes Mature Market Institute. A Profile of American Baby Boomers. Retrieved January 23, 2007 from http://www.metlife.com/WPSAssets/18827370211149688405V1FBoomerProfile6206.pdf.
Health advocacy A Connecticut-based investment and development firm called Intersection recently researched the health advocacy field. Intersection revealed that approximately six companies currently generate annual revenue of about $50 million-$75 million, and health advocacy is on track to becoming a $1 billion industry. According to the San Jose Mercury News: The field is blossoming in the wake of cutbacks in corporate health benefits, an overhaul of Medicare and other changes that have forced medical consumers to shop more for medical care.2 Health Advocate, a health advocacy provider, claims to be the largest. Founded in 2001, it now has more than 3,500 companies, unions, and other organizations as clients, including Johnson & Johnson, American Express, and The Home Depot Inc. Altogether, about 2.6 million employees, or members, are signed up with Health Advocate. But the number who can use it is actually higher; members can share the call-in number with spouses, children, parents, and parents-in-law including older kin who need help picking a Medicare prescription drug plan, finding a nursing home, or arranging transportation for health care.3 Moreover, an increasing number of businesses are including health advocacy services among the benefits they offer to their employees. Health advocates improve health care quality and efficiency, and offer patients peace of mind and the ability to focus on getting and staying well rather than on medical billing errors. Thus, many companies have found these advocates to be an invaluable resource for improving worker health and productivity. Carol Fischer of Health Advocate stated, The employers are interested because it means their employees are not on the phone taking care of doctors visits during work hours.4 The Companys location in the Sacramento, California metropolitan area (encompassing Sacramento County and parts of Placer County, Yuba County, and Sutter County) places it in a growing area. Initial launch of VIVA! Choices services will focus on this area. The following tables provide the most current U.S. Census data with
2 3
News-Medical.net. July 29, 2008. http://www.news-medical.net/?id=40322 Mike Stobbe. Associated Press. Patient Advocacy Industry Booming. July 25, 2008. http://www.kentucky.com/148/story/470930.html 4 News-Medical.net. July 29, 2008. http://www.news-medical.net/?id=40322
regard to the population growth of these counties, which are growing at rates far exceeding the national average of 6.4%: Population & Growth5 Sacramento County, CA 1,374,724 12.4% 1,223,499
Population, 2006 estimate Population, percent change, April 1, 2000 to July 1, 2006 Population, 2000 Population & Growth6
Placer County, CA 326,242 31.3% 248,399
Yuba County, CA 70,396 16.9% 60,219
Population, 2006 estimate Population, percent change, April 1, 2000 to July 1, 2006 Population, 2000
Sutter County, CA 91,410 15.8% 78,930
The following tables provide pertinent figures for the populations of Sacramento County, Placer County, Yuba County, and Sutter County. This data is provided by ESRI, a market research firm. Sacramento County, CA; Placer County, CA Full Demographic Report Sacramento Placer County County 1,423,173 349,470 2008 Total Population 1,557,635 429,757 2013 Total Population 1.82% 4.22% 2008 2013 Annual Rate 2008 Households 2008 Average Household Size 2008 Families 2008 Average Family Size Median Household Income 2000 2008
5 6 7
520,577 2.68 341,633 3.34
134,428 2.58 97,539 3.03
$43,961 $56,746
http://www.census.gov/. http://www.census.gov/. http://www.census.gov/. http://www.census.gov/.
$57,411 $75,554
U.S. Census Bureau data. U.S. Census Bureau data. U.S. Census Bureau data. 8 U.S. Census Bureau data.
Obtained at: Obtained at: Obtained at: Obtained at:
2013 Median Home Value 2000 2008 2013 Per Capita Income 2000 2008 2013 Median Age 2000 2008 2013 2008 Households by Income Household Income Base < $15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 + Average Household Income 2008 Population by Age Total 04 59 10 14 15 19 20 24 25 34 35 44 45 54 55 64 65 74 75 84 85+ 18+ 2008 Population by Sex Males Females
$66,790
$88,301
$141,145 $265,624 $272,835
$208,781 $397,230 $415,750
$21,142 $26,856 $31,841
$27,963 $38,311 $47,400
33.8 34.8 35.1
37.9 38.9 39.4
520,576 10.0% 9.2% 9.6% 14.7% 20.9% 16.5% 11.9% 3.7% 3.5% $72,437
134,427 5.5% 6.2% 6.8% 11.7% 19.4% 15.1% 20.7% 6.9% 7.7% $99,162
1,423,173 7.5% 7.0% 7.1% 7.3% 7.1% 14.3% 14.4% 14.2% 10.2% 5.5% 3.8% 1.6% 73.9%
349,470 6.9% 7.0% 7.3% 6.8% 5.3% 11.2% 15.1% 16.2% 11.6% 6.5% 4.3% 1.7% 74.4%
48.8% 51.2% CONFIDENTIAL Do Not Distribute Without Permission
49.0% 51.0% 14
2008 Educational Attainment (Age 25+) Total Less than 9th Grade 9th 12th Grade, No Diploma High School Graduate Some College, No Degree Associate Degree Bachelors Degree Masters/Prof/Doctorate Degree 2008 Population by Race/Ethnicity Total White Alone Black Alone American Indian Alone Asian or Pacific Islander Alone Some Other Race Alone Two or More Races Hispanic Origin Diversity Index
910,257 6.7% 8.6% 22.5% 25.4% 8.9% 19.1% 8.7%
232,916 2.8% 5.4% 22.2% 27.1% 9.9% 22.2% 10.3%
1,423,173 58.5% 9.9% 1.0% 13.7% 9.2% 7.7% 19.7% 74.8
349,470 85.3% 0.9% 0.9% 3.9% 4.4% 4.6% 12.7% 43.3
Yuba County, CA; Sutter County, CA Full Demographic Report Yuba County 75,161 2008 Total Population 88,479 2013 Total Population 3.32% 2008 2013 Annual Rate 2008 Households 2008 Average Household Size 2008 Families 2008 Average Family Size Median Household Income 2000 2008 2013 Median Home Value 2000 2008 2013 Per Capita Income 2000 2008 2013 25,506 2.90 18,383 3.42
Sutter County 97,115 111,310 2.77% 32,506 2.94 23,989 3.47
$30,476 $37,086 $42,869
$38,336 $48,542 $57,177
$89,471 $183,782 $186,408
$119,881 $245,996 $251,320
$14,124 $16,511 $19,020 CONFIDENTIAL Do Not Distribute Without Permission
$17,428 $21,219 $24,588 15
Median Age 2000 2008 2013 2008 Households by Income Household Income Base < $15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 + Average Household Income 2008 Population by Age Total 04 59 10 14 15 19 20 24 25 34 35 44 45 54 55 64 65 74 75 84 85+ 18+ 2008 Population by Sex Males Females 2008 Educational Attainment (Age 25+) Total Less than 9th Grade 9th 12th Grade, No Diploma High School Graduate Some College, No Degree Associate Degree Bachelors Degree Masters/Prof/Doctorate Degree
31.3 32.2 33.5
34.0 34.8 35.3
25,506 17.9% 13.8% 15.8% 18.0% 20.7% 6.6% 4.6% 1.2% 1.4% $47,673
32,506 12.9% 11.4% 12.3% 14.8% 19.0% 15.6% 8.9% 2.6% 2.4% $62,512
75,161 8.4% 7.6% 7.6% 7.8% 8.3% 13.7% 12.4% 13.1% 10.4% 6.0% 3.4% 1.2% 71.6%
97,115 7.6% 7.1% 7.3% 7.6% 6.9% 13.6% 13.3% 13.6% 10.5% 6.5% 4.1% 1.7% 73.2%
50.4% 49.6%
49.5% 50.5%
45,308 11.6% 13.7% 29.4% 24.6% 9.3% 7.6% 3.9%
61,594 11.9% 12.3% 25.4% 23.8% 9.7% 12.0% 4.9% 16
CONFIDENTIAL Do Not Distribute Without Permission
2008 Population by Race/Ethnicity Total White Alone Black Alone American Indian Alone Asian or Pacific Islander Alone Some Other Race Alone Two or More Races Hispanic Origin Diversity Index
75,161 64.7% 3.2% 2.5% 9.2% 12.4% 8.0% 21.6% 71.7
97,115 61.4% 1.9% 1.5% 13.5% 15.8% 6.0% 27.1% 76.1
The following tables provide pertinent figures for the population surrounding the Company, including projected 2008 healthcare spending. This data is provided by ESRI, a market research firm. Marysville, CA and Environs Full Demographic Report Radius: Radius: Radius: 10 miles 25 miles 50 miles 143,560 263,134 2,392,123 2008 Total Population 168,030 303,745 2,650,287 2013 Total Population 3.20% 2.91% 2.07% 2008 - 2013 Annual Rate 2008 Households 2008 Average Household Size 2008 Families 2008 Average Family Size Median Household Income 2000 2008 2013 Median Home Value 2000 2008 2013 Per Capita Income 2000 2008 2013 Median Age 2000 2008 2013 2008 Households by Income Household Income Base < $15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 + Average Household Income 2008 Population by Age 18 CONFIDENTIAL Do Not Distribute Without Permission 47,888 2.95 34,760 3.49 90,718 2.86 66,918 3.35 885,952 2.65 591,589 3.24
$34,253 $43,068 $50,300
$35,456 $44,875 $52,472
$42,838 $55,195 $65,291
$105,148 $114,922 $147,571 $214,674 $242,840 $289,547 $219,976 $252,399 $299,509
$15,795 $19,072 $22,125
$16,433 $20,074 $23,237
$21,207 $27,430 $32,977
32.7 33.2 34.0
34.3 35.5 36.5
34.7 35.7 36.2
47,888 15.3% 12.6% 13.8% 15.9% 19.1% 12.0% 7.3% 2.1% 2.0% $56,223
90,719 14.3% 12.3% 13.1% 15.9% 20.7% 12.1% 7.7% 1.9% 2.1% $57,455
885,951 10.8% 9.7% 10.1% 14.5% 20.5% 14.7% 12.0% 3.8% 4.0% $73,034
Total 0-4 5-9 10 - 14 15 - 19 20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+ 18+ 2008 Population by Sex Males Females 2008 Educational Attainment (Age 25+) Total Less than 9th Grade 9th - 12th Grade, No Diploma High School Graduate Some College, No Degree Associate Degree Bachelor's Degree Master's/Prof/Doctorate Degree 2008 Population by Race/Ethnicity Total White Alone Black Alone American Indian Alone Asian or Pacific Islander Alone Some Other Race Alone Two or More Races Hispanic Origin Diversity Index
143,557 8.1% 7.4% 7.5% 7.9% 7.4% 13.9% 13.0% 13.3% 10.1% 6.0% 3.8% 1.6% 72.0%
263,132 2,392,121 7.5% 7.0% 7.1% 6.7% 7.3% 7.0% 7.6% 7.5% 7.0% 7.6% 12.8% 13.3% 12.7% 13.6% 13.9% 14.4% 11.2% 10.8% 6.8% 6.0% 4.3% 4.2% 1.7% 1.8% 73.3% 74.9%
49.6% 50.4%
49.7% 50.3%
48.9% 51.1%
88,468 12.5% 13.5% 26.6% 23.9% 9.6% 9.7% 4.2% 143,559 60.6% 2.4% 1.9% 13.1% 15.0% 6.9% 25.6% 76.2 143,559
167,022 1,534,330 10.7% 6.5% 12.5% 8.6% 28.2% 23.3% 25.2% 25.4% 9.0% 8.9% 9.9% 18.2% 4.5% 9.2% 263,134 2,392,124 67.1% 66.9% 2.0% 6.1% 2.0% 1.2% 8.9% 10.2% 13.5% 9.0% 6.4% 6.6% 24.1% 19.0% 70.9 68.0 263,134 2,392,124
Retail Goods and Services Expenditures Health Care Total $ Average Spent Spending Potential Index9 Within a 50-mile radius of Marysville $3,488,339,871 $3,926.06 96
The national average is benchmarked at 100
3.1 Market Segmentation

The Company will have three primary market segments: The Baby Boomer Age: 44 to 62 years Income: high-end, typically $75,000 per year and above Sex: majority female (statistically, daughters make the living decisions for their parents more often than sons) Aging Adults Age: 75 and older (average age 83) Sex: at least 60% will be female Other: a small portion of residents (approximately 10% or less) will be married couples Location: most currently live in the greater Sacramento area. Some will be from other states; they move to the area after retirement to be near their children who work nearby. Businesses and Corporations VIVA! Choices will contract with corporations and businesses to offer VIVA! Choices services as part of a cafeteria benefit plan or as part of retirement plans. Studies have shown that employers are losing approximately $39 billion each year from absenteeism due to employees caring for their elderly parents. Employers need benefit programs that will keep employees on the job and reduce the stress and anxiety caused by not knowing how to take care of family concerns. Demand is high and growing for human resource products and services catering to employees needs.
3.2 Market Needs

Professional Baby Boomers, particularly females, desire to stay young and healthy, and to have more time for themselves. Many start second careers after retiring from their primary professions or to supplement their incomes during these volatile economic times. They seek increased peace of mind in regards to the needs and care of their families. Caught between the demands of their growing families and the needs of their aging parents, adult children need services to help them attain a better quality of life and maintain their health. In the United States there are 34,000,000 adult children who are spending, on average, $5,500 per year on their aging parents and the pursuit of the services and information they need to help with the care of their parents is difficult at best.10 For the aging adult, VIVA! Choices will bridge the gap between total independent living in a regular home or apartment and assisted living facilities (or nursing homes). Aging adults are living longer overall, but many still face health problems and mobility issues. They want to maintain their independence as much as possible, but recognize that they have personal limitations. Tasks in everyday life have become more challenging for this group (due to age-related physical limitations and health problems), and because of this they require assistance with: Transportation Errands Meal preparation Yard maintenance Home maintenance (interior and exterior) Paying bills House Cleaning
These aging adults do not have major health problems or disabilities serious enough to warrant constant care, but they cannot comfortably live without assistance any longer. Also, those who are living alone after losing their spouse can face isolation and depression and tend to feel more vulnerable to crime. Many times they cannot live without assistance anymore, and living with their children or other relatives may not be an option for them.
10
Data provided by Company Management. 20 CONFIDENTIAL Do Not Distribute Without Permission
Additionally, businesses desire to keep their employees on the job and performing well so that they can maintain and increase productivity. They also need to have employee retention and recruiting tools that will help them to hire and maintain the best employees in their fields.
3.3 Industry Analysis

There has been a high demand for home care providers, as seen in the employment rise among health care service providers according to the U.S. Department of Labor, as illustrated in the graph below:11
3.4 Competitive Comparison

Because this industry is new, it is also somewhat small. The Company is entering the industry at an optimal time to penetrate a large market share. There are a few websites that offer a partial list of services similar to those offered by VIVA! Choices. Some of these include www.care.com and www.caring.com, as well as sites like www.angieslist.com, which is a general site for finding service providers. Care.com, for instance, has a nationwide directory of service providers, such as adult day care services, errand runners, pet sitters, and housing assistance. More direct competition will come from larger organizations such as Health Advocate. While not offering many of the day-to-day services that VIVA! Choices offers, it has a large network of established connections that allows it to reach every corner of the country. It is profiled below, as is the non-profit National Family Caregivers Association, which is a large resource for families and service providers, as well as Beacon Hill Village, a non-profit company. Health Advocate Health Advocate is centered around its team of Personal Health Advocates, typically registered nurses, and supported by Medical Directors and benefits experts. It helps clients and members navigate the healthcare system with a full spectrum of innovative, time- and money-saving solutions. Its services, aimed at helping employees and their families, range from addressing a host of clinical and insurance issues to one-on-one support for improving health and well-being. Coverage extends to the member, their spouse, dependent children,
11
Nahc.org. Basic Statistics about Home Care. 2007. Obtained at: http://www.nahc.org/facts/07HC_Stats.pdf.
their parents, and parents-in-law. Health Advocate offers additional solutions for both employees and employers that include Wellness Advocate; Benefits Integrator; Enrollment Advocate; FMLA Assistance; and Independent Appeals Administration. Strengths: Health Advocate is the most well-known health advocacy provider in the growing industry. It has a strong brand, and receives excellent reviews from the majority of its users. This company caters to businesses and clients alike, and its website is navigable and easy to use. Weaknesses: Health Advocate is a big corporation that specializes in online services. This company is not personal; it does not make house calls, and is web-based, which is difficult for aging adults who may be out of touch with technology.
National Family Caregivers Association (https://www.thefamilycaregiver.org/about_nfca/mission_and_vision.cfm) Strengths: This organization is a good tool for care givers. Weaknesses: This is a website to be used as a resource for care givers, and does not market to people in need of services. Beacon Hill Village (https://beaconhillvillage.org) Strengths: Beacon Hill Village provides assistance to residents 50 years or older so that they may continue to live independently for as long as possible. It offers concierge services, health and wellness classes, health service assistance, community events, travel opportunities, and daily assistance services. Clients can schedule services through the internet or over the phone. Weaknesses: Beacon Hill Village currently only serves Beacon Hill, Massachusetts and surrounding communities. Beacon Hill Village does not offer Real Estate or remodeling services. It caters to a limited demographic of affluent neighborhoods. VIVA! Choices will outperform its direct and indirect competition because the Company and all of its employees are committed, skilled, and believe in the VIVA! Choices mission. The Company will not be just one component in its clients lives, but will provide the oversight of services, resources, products, and support that will help to ensure each of its members is as happy, healthy, and independent as possible. It is the intuitive connection between the VIVA! Choices divisions that transforms the Companys mission into a reality for the Baby Boomer and their family. The Company has performed exhaustive research into this industry and arrived at the conclusion that no company currently operates in the highly unique fashion that it has developed, with value-added services that will allow for better, more cost-effective services for Boomers and their families. For information regarding the Companys competitive advantages, see 4.1 Competitive Edge.
4.0 Strategy and Implementation Summary

VIVA! Choices Adult Life Done Right. Before a company can effectively market itself, it must first establish a strong brand and identity. The brand name VIVA! Choices was selected to reflect the new attitudes and lifestyles of the 40+ age group. Viva is a word which means life, and is associated with words such as vital and vibrant, all of which have positive connotations. The addition of the exclamation point to the name underscores liveliness and adventure. The word Choices was selected to emphasize that individuals now have many options and alternatives, not only in their living arrangements, but also in their lifestyles. VIVA! Choices will build a brand that embodies its core value of providing quality and trustworthy life services in each of its membership packages. With life becoming busier, there is often simply not time to take care of oneself let alone family members. Through the Companys wide array of services, VIVA! Choices will increase the quality of life for all aging individuals and their families. This will be the cornerstone of its business operations, allowing for rapid growth and superior client satisfaction. To raise brand awareness among its intended audience, the Company will define its brand with the use of its logo and unique selling proposition, Adult Life Done Right. With its brand and guiding principles established, VIVA! Choices will send a clear message about what it stands for, thereby building brand loyalty and encouraging potential clients to patronize the business. Specific advertising channels will include Internet advertising, hosting of a radio program, kiosk advertising, promotions, direct mailing, e-mail blasts, online newsletters, existing industry relationships, public relations efforts, and partnerships. VIVA! Choices intends to achieve the following objectives: Become the first place Baby Boomers go when they need a trusted partner to help them save time and successfully navigate lifes transitions Become Baby Boomers trusted partner to be there for aging relatives when they cannot, thereby helping to free them from the guilt that comes from not having the time or ability to take care of all their relatives needs Help employers keep their employees on the job and give them retirement benefits that include in-home and personal services Establish itself as a trusted name in the aging adult industry Provide outstanding services and resources for aging adults; giving them the respect, love, and attention they deserve Roll out a comprehensive selection of membership packages, to reach a large target demographic Build a loyal base of clientele that is large enough to sustain business Generate enough revenue to expand operations nationally In order to reach these operational goals, the Company will build on its strengths and advantages as outlined in the following section.
4.1 Competitive Edge

While there are several organizations that help people save time and provide care to aging citizens, none have embraced the concept of enhancing quality of life through a distinct array of membership services as has VIVA! Choices. Also, none are focusing on the Baby Boomer as its primary target market. The Company intends to build on its core values of giving individuals tools to age contentedly in the comfort of their own home in order to establish itself as the premier resource for aging adults in the country. VIVA! Choices will capitalize on its competitors weaknesses by building upon the following strengths (also see: 2.1 Product and Service Description): Affordable membership rates Customized memberships available Give clients peace of mind and a more balanced life Community based approach to services and support Services are flexible, bundled, and easy to use Six divisions with specialists in their fields who will help to accomplish the Companys mission Superior level of quality and professionalism 23 CONFIDENTIAL Do Not Distribute Without Permission
Team VIVA! consists of the top professionals in their fields Focus on maintaining complete client satisfaction through superior customer service Talented, experienced, and highly trained management team and staff Extensive marketing tactics will reach a large segment of potential clientele
4.2 Marketing Strategy

The Company will generate interest for its services by utilizing a direct sales team and a variety of other advertising channels that will increase the Companys exposure with consumers and industry businesses. Direct Advertising: Direct mail: VIVA! Choices will create and make available its brochures. These brochures will highlight the Company and its core goals, benefits of its services, and contact information to speak directly to one of the Companys representatives. Investing in brochures can yield the following results: o Promotes Company credibility o Saves time by providing necessary Company information in a single, convenient brochure that prospects can read at their leisure o Reinforces other advertising and direct sales programs Partnerships: The Companys team will focus its efforts on cultivating strong partnerships and connections with industry professionals and businesses that would benefit from working with the Company. Some organizations that the Company has identified include AAA, Care.com, Comfort Keepers, and NAPW (National Association of Professional Women). Existing industry relationships: The Company has already established extensive relationships with existing businesses within the industry. It will capitalize on these relationships to promote its services and increase brand recognition throughout the industry and market. Non-Traditional Advertising: Kiosks: The Company will seek to promote its services through kiosks in hospitals and malls, allowing potential clients to buy the Companys membership services and gift cards, replacing flowers with the gift of services. VIVA! Hub: A content centered social network. Anyone can access the information on the Hub, but one must be a VIVA! Choices member to use the Hubs interactive functions. Rocklin & Roseville Today partnership: Rocklin & Roseville Today is a highly successful online community news and yellow page site. Through it, VIVA! Choices will have direct access to potential Preferred Providers as well as consistent top placement for organic search results. VIVA! Rewards credit system: The VIVA! Rewards credit system will promote the use of VIVA! Choices life services, products, and support, as well as the services of Team VIVA! Preferred Providers. National Aging in Place Council partnership: VIVA! Choices is a current member of the National Aging in Place Council and will be an active participant in the Aging in Place Initiative. Through this partnership, the Council will promote Team VIVA! at Health and Aging in Place events and on its website as well as provide media coverage and other types of advertising. Internet Advertising: E-mail marketing: VIVA! Choices will operate with an e-mail marketing structure that promotes its services by setting up a highly targeted opt-in e-mail blast campaign. This will create an opportunity to generate increased sales for the business and is a convenient and affordable method in reaching thousands of existing and potential members. 24 CONFIDENTIAL Do Not Distribute Without Permission
Newsletter: An e-mail newsletter will be sent out to leads generated from demographic information, strategic industry partnerships, and philanthropic partners. This will reinforce brand building among the Companys target market. Banner Ads: The Company will create a series of non-intrusive banner ads to appear on related websites and partner URLs. These ads will feature the Companys brand name, and may include information about its available services. Primarily, the purpose of these banner ads will be to generate interest in the Company, resulting in visits to its website. Internet Advertising: VIVA! Choices will use a combination of Internet advertising including Cost-perClick, Google Adwords, tags, and the search engine optimization of its website. This multi-pronged effort will help generate interest in the Company from the online community and general public. Media Advertising: Media Kit: A press release kit will be sent to all major media outlets highlighting the launch of the Companys website and services. This kit will include a press release, color postcard/flyers with the Companys mission statement and website address, and a business card. VIVA! Choices will also use this press kit to reach major celebrity figures, such as Oprah, so as to promote its services nationally through celebrity endorsement. Radio: VIVA! Choices will capitalize on prime time driving radio advertising spots through its hosting of a radio program called VIVA! Talk. This will be aired during early morning and early evening hours, to target a large population of commuters who may be interested in the Companys services. Initially, the Company will focus on advertising in large cities across the country, with primary targets in New York, Chicago, Los Angeles, Washington, D.C., Miami, Seattle, and Philadelphia. As the Company expands, it will consider making the radio program into a cable television program, in order to reach an even greater number of interested clients. VIVA! Magazine: The Company will publish a magazine that focuses on issues and trends related to aging in place, as well as subjects of particular interest to Baby Boomers and information of Company services. This magazine will provide information of the realities of independent aging while growing brand awareness within the target market.
5.0 Management Summary

SUMMER JACKSON, Founder & CEO In the formation of VIVA! Choices, a business that will provide resources, services, and support to Baby Boomers and their parents, Summer Jackson brings nine years of experience and community involvement and more than four years of steady planning to fruition. She has 25 years of executive level business experience including ten years in retail management with national chains such as Office Depot in San Francisco; administration of a Retirement Community; Founder and President of a medical management/staff leasing company in Sacramento; and Founder and Owner of two restaurants in Sacramento and Auburn. She is currently a Realtor, SRES, and Co-Founder and President of a local non-profit, Professionals Caring for Seniors, a networking organization. Ms. Jacksons medical management experience involved overseeing the business operations, marketing, technology, and professional staffing of 25 small to mid-sized medical offices as well as three large medical corporations with more than 30 employees each, in northern California and Nevada. As the Administrator of the Retirement Community, Ms. Jackson discovered that it was the children of her residents who lined up outside of her door with questions and concerns regarding their busy lives and the increased responsibility of their parents circumstances. Many times, finding quality services and resources to meet their needs was virtually impossible. As a result of this experience, her life mission became to develop consistent, safe, and easy to use real-life solutions to help people as they age. Ms. Jackson is a true entrepreneur possessing knowledge, skill, and experience in starting a business, marketing, sales, training, human resources, and the development of long-range planning for business growth. Today she is committed to using her past experience and her passion for meeting the needs of people in the 45+ age group through the success of her new venture, VIVA! Choices Adult Life Done Right. SCOTT LANDRUM, Co-founder and Chief Operating Officer As the Accounting Department Manager for The Wild Rice Exchange, Inc., the largest processor and seller of Wild Rice in the United States and Europe in the early to mid 90s, Mr. Landrum experienced the entrepreneurial spirit and the challenges of real world business. Acquisition of competing business, incorporating those teams and systems into the Wild Rice Exchange, expansions into new markets, and product development are some of the areas in which Mr. Landrum has first-hand experience. The Wild Rice Exchange purchased two smaller processors, who operated retail packaging and distribution centers. The company developed their own retail packaging line and brand, expanded to European bulk and retail sales, and was on the forefront of processing quick cook Wild Rice and other grain processes during Mr. Landrums tenure. The experience and challenges of managing the accounting of five profit centers at three locations with a combined budget of $6 million and up to 80 employees during the peak of the rice harvest will serve VIVA! Choices well. Mr. Landrum was directly accountable to the Board of Directors for all accounting functions including budget development, intensive cash management of five bank accounts, multiple lines of credit, Accounting Department personnel, monthly financial reporting to the Board of Directors, and working directly with the CPAs during year-end financial reviews and audits. Since leaving the Wild Rice Exchange, Mr. Landrum has been involved in coaching at the local High School as the Head Coach of the Softball program, founded local non-profit fast pitch softball organizations for young ladies, and has been an active member of youth sports leagues. During his coaching tenure, he operated a successful consulting business. Mr. Landrum is also a licensed Realtor and has been active in the Real Estate and Mortgage business since 2004. The experience of assisting his mother through the loss of his step father, her health challenges, and helping her go through several transitions has been the life experience that has connected him with VIVA! Choices. With four Grandmothers in their late 80s, a mother with health issues, and a new family, Mr. Landrum has experienced first-hand the need for VIVA! Choices and is committed to its success and the contribution it will make to communities nationwide. 26 CONFIDENTIAL Do Not Distribute Without Permission
Donald Finch, Director of Sales and Personnel Mr. Finch is a senior staffing professional with more than 15 years of experience building and managing high performance recruiting teams during rapid growth. He has solid people and business skills including performance metrics, forecasting, and budget management, is a self-starter and highly motivated both as an individual contributor and as a team player in fast paced situations. He has been the Senior Recruiter for Sun Microsystems and KLA Instruments. Mr. Finch also is highly experienced in sales; he is results oriented and has a strong record of building B2B revenue increases by developing and managing direct sales, distributor, and OEM channels. He is adept in developing long-term sales strategies, generating tactical and comprehensive solutions, and managing multi-level client and prospect relationships. Mr. Finchs background with start-up and rapid growth businesses will serve VIVA! Choices well. Bill Loyd, Director of Multi-media and Community Relations Mr. Loyds education includes a Bachelor of Arts degree in political science from University of California, Davis, a Microsoft Certified Systems Engineer Certificate, and a Human Resources Certificate, CSUS. Having served in the United States Army as a Sergeant/ E-5, and worked for Dennys as an area Training Manger for 10 years, Mr. Loyd has a clear understanding of what it takes to be successful. He has extensive computer skills and experience working in communications and has worked for Go Daddy as a support representative. Today, Mr. Loyd is a published author and experienced public speaker who loves to help business owners stay motivated and to help them achieve their goals. As Director of VIVA! Choices Multimedia and Community Relations, Mr. Loyd will continue to help business owners build their businesses by working with them to establish their unique niche in terms of marketing to the Baby Boomer and then developing their audio/video and written materials to be uploaded to vivachoices.com, teamviva.com, and Yubasutterliving.com, as well as Rocklintoday.com. David Glines, Director of the VIVA! Choices Center for Life Development and Planning David comes to VIVA! Choices as a recent graduate of San Francisco State University with a Bachelor of Arts degree in English (concentration in literature). His experience includes being the Editor of his own self-run editing service, and contributor and co-editor of Poetry from the Green Chair, a collection of poetry, short stories, and photography. He was a founding member of the Amicus Books Poetry contest and was awarded the grand prize in the Only Revolutions Readers Guide contest. Mr. Glines has worked with numerous websites, helping with development and editing. He brings his excellent foreign language and compositional skills to the educational field, and is prepared to help those both within and outside of the English speaking community. Mr. Glines is highly motivated and passionate about education and believes that the VIVA! Choices Center for Live Development and Planning will help millions to improve the quality of their lives. He is a California native, and an avid bicyclist. Jon Barnum, General Contractor and Certified Aging in Place Specialist (CAPS) Mr. Barnum has been a licensed contractor with the State of California for more than 15 years and has been remodeling for more than 25 years. He holds two classifications: C-15 and B general building. During his career he has overseen crews of subcontractors with up to 50 employees while performing various activities including concrete, framing, electrical, plumbing, drywall, heating and air, painting, stucco, siding, roofing, finish carpentry, and floor covering. He has also overseen the drafting of plans and the submittal of plans to the building departments in various counties. Mr. Barnum has scheduled and ordered the materials, has acted as estimator, scheduler, and purchaser, and is a trained Certified Aging in Place Specialist ready to serve the growing needs of the Boomer Generation. Terry Witt, Director VIVA! Choices Personal Assistant Mr. Witts experience includes more than 20 years in the construction industry as Owner of a business that remodeled and renovated homes for re-sale. He hired, directed, and coordinated the services of subcontractors and employees, ordered all supplies, worked with prospective buyers, and many times managed the properties after they were sold. Mr. Witt has seven years of experience as the Head Pastor of a church in Northern California where he prepared and delivered sermons, counseled members, managed volunteers, oversaw the maintenance of the church and grounds, and played an active role in developing church programs. 27 CONFIDENTIAL Do Not Distribute Without Permission
Darlene Sparks, Membership Coordinator Ms. Sparks brings more than 10 years experience as an Administrative Assistant to VIVA! Choices. She is familiar with the operations of mortgage companies, law firms, and escrow offices. One of her biggest strengths is her demeanor and keen attention to detail. Ms. Sparks has experience with virtually all types of office equipment and telephone systems. She is willing to do what it takes to get the job done, often going above and beyond the traditional responsibilities of her position. Ms. Sparks skills are exceptional for a start-up, and she is excited about having the opportunity to learn and improve her skills to help make VIVA! Choices a success. Virgil Baker, Chief Financial Officer Virgil Baker served as CFO of ETLS from 2000 to May 2006 and has served as a Director since 2000. From 1996 to 2000, Mr. Baker, along with Terry Eilers, devoted all of his time to the development of online training and the prototype software for Presenta Pro. In 2000, this team formed eTotalSource.com, Inc. and Mr. Baker became the CFO. From 1993 to 1996, he was the controller for The Wild Rice Exchange, Inc, an agriculture corporation. Mr. Baker earned a Bachelor of Arts degree in accounting from California State University in Chico in 1992. Currently, he is the Controller for Glines Carpet One, Inc (GCO), a retail flooring store. At GCO, Mr. Baker is streamlining the use of the accounting program and working on inventory controls, among other duties. He concurrently owns and operates Accounting Plus, and engages in bookkeeping, accounting analysis, and tax preparation. Janet Beaver, Accounting Ms. Beaver brings 25 years in various management positions to VIVA! Choices. As a Finance Manager, she has established accounts receivable, accounts payable, and payroll departments for several start-up companies in Seattle and in Southern California. Ms. Beaver has overseen operations, hired, and managed for physicians, computer firms, and architects. She is also an experienced and licensed Loan Officer.
Advisors Seth Fuhrer, Treasurer, Broker Mr. Fuhrer, the current CEO of Nickell Tax & Financial Planning, began doing taxes in 1996 while still a student at the University of California, Davis. He graduated UC Davis with a Bachelors degree in religious studies and a Bachelors degree in philosophy. Mr. Fuhrer then went on to obtain a Juris Doctorate degree from the University of the Pacific, McGeorge School of Law. In 2000, after obtaining his securities license, Mr. Fuhrer began offering Financial Planning Services as well as tax preparation. He also has an Insurance and Real Estate Brokers license, is an enrolled agent with the Internal Revenue Service, and is a Notary public. Marie Taylor, Marketing Ms. Taylor is a Strategic Planner and Marketing Consultant with more than 20 years of experience in helping businesses create more focused, more powerful, and more profitable positions in their markets. She develops effective marketing, advertising, and public relations programs for entrepreneurs, start-up companies, and growing businesses. Her clients range from industry leaders such as Warner Bros. Studio to real estate companies and independent professionals. Ms. Taylor is active in the arts community and has served as Executive Director for Feats of Clay, a national juried exhibition of contemporary ceramic arts, and as pro bono Marketing Director for MatrixArts of Sacramento. She holds a Master of Arts degree in English, is a published writer, and an exhibiting fine artist in oriental brush work. www.MarieTaylor.CityMax.com.
Steve Gandola, Organizational Development Mr. Gandola is Founder of emPraxis, a professional development company that helps organizations and individuals plan and pursue continued improvements in their success. He founded emPraxis at the beginning of 2003 and has worked with companies in a variety of industries. Mr. Gandola is a professional facilitator for executives and boards of directors; an executive coach for business owners; and trainer for team development within large organizations. A native of Los Angeles, he earned his Master of Business Administration degree from Brigham Young University in 1991 and spent twelve years working in corporate marketing with companies such as Eastman Kodak and Bausch and Lomb. During that time he managed products nationwide and had global responsibility as a manager of market research. www.empraxis.biz Gina Wander, Training Ms. Wander, MS, is a Career Development Consultant and Coach who embraces the concept of from the inside out as her organizational focus. Her business experience spans more than 25 years in the fields of education, commercial real estate, and in marketing sales in the non-profit sector. Ms. Wander has taught Career Counseling for the Graduate Program at Chapman University, and engaged as a consultant with prominent career management organizations such as Lee Hecht Harrison and Right Management Consultants. Teambuilding, effective leadership and communications skills, interviewing techniques, negotiating, and addressing aging issues in the workplace are just a few of the workshops she has created and facilitated over the last ten years. She holds a Master of Science degree in human resources management and a certificate in career planning and development from the New School University in NYC. www.FromTheInsideOut.org. Gary R. Steele, IT Mr. Steele brings ten years of experience in technology to VIVA! Choices. As a field technician for CB Richard Ellis, he supports more than 220 end users. He is familiar with software such as Office, Windows, Novell, SOSI, Adobe, HTML/CSS, DOS/Batch, and others. Resourceful in problem solving, he excels in taking on complex challenges and resolving them. He attended American River College and the MTI College of Business and Technology. Todd Schofield, Partner in Growth and Development Mr. Schofield is the Founder and Owner of Roseville/Rocklin Today, Folsom Today, Lincoln Today, Auburn Today, and Sacramento Today on-line yellow page directories. www.RosevilleToday.com. Steve Lund, CPA 2200 Douglas Blvd., Ste 110 A Roseville, CA 95661 Insurance Risk Management Larry Hazelwood ISU Insurance Services: Cordova Center Rancho Cordova, CA
5.1 Personnel Plan

Personnel Forecast
Year 1 Pers onnel Count VPA Staff RRE Staff Marketing Place Staff Learning Center Staff Information System Staff Sales and Marketing Staff G and A Staff Total Personnel Pers onnel Wage VPA Staff RRE Staff Marketing Place Staff Learning Center Staff Information System Staff Sales and Marketing Staff G and A Staff Pers onnel Costs VPA Staff RRE Staff Marketing Place Staff Learning Center Staff Information System Staff Sales and Marketing Staff G and A Staff Total Payroll $159,401 $40,834 $0 $0 $11,500 $24,000 $196,556 $432,291 $2,383,759 $183,205 $10,000 $117,000 $112,000 $322,100 $669,838 $3,797,902 $4,640,657 $192,365 $27,000 $279,000 $128,291 $520,315 $703,329 $6,490,958 $5,887,834 $269,312 $36,000 $408,000 $134,705 $655,597 $902,606 $8,294,054 $7,248,126 $353,472 $46,500 $546,000 $141,441 $803,107 $1,120,052 $10,258,697 $21,630 $20,417 $0 $0 $11,500 $24,000 $42,745 $61,384 $61,068 $11,429 $32,651 $61,091 $99,108 $74,426 $64,454 $64,122 $12,706 $41,850 $64,145 $104,063 $78,148 $67,676 $67,328 $14,400 $51,000 $67,353 $109,266 $82,055 $71,060 $70,694 $17,169 $60,667 $70,720 $114,730 $86,158 3.3 0.8 0.0 0.0 0.5 0.5 2.8 7.9 38.8 3.0 0.9 3.6 1.8 3.3 9.0 60.4 72.0 3.0 2.1 6.7 2.0 5.0 9.0 99.8 87.0 4.0 2.5 8.0 2.0 6.0 11.0 120.5 102.0 5.0 2.7 9.0 2.0 7.0 13.0 140.7 Year 2 Year 3 Year 4 Year 5
6.0 Financial Indicators

The following table summarizes the Companys projected financial performance with standardized measurement indicators used to evaluate profitability, leverage, asset turnover, and liquidity. As with any long-range projection, accuracy is based on reasonable estimates of return on investment and past performance. The Company believes the following numbers are attainable and reasonable. However, actual results will vary.
Financial Indicators
Year 1 Profitability %'s: Gross Margin Net Profit Margin EBITDA to Revenue Return on As sets Return on Equity Activity Ratios: Accounts Payable Turnover Asset Turnover Leverage Ratios: Debt to Equity Debt to Assets Ratio Interest Coverage Ratio Liquidity Ratios: Current Ratio Current Debt to Total Assets Ratio Additional Indicators: Revenue to Equity Ratio 2.78 3.96 3.20 2.39 1.88 3.27 30.59% 12.40 8.07% 16.52 6.05% 21.88 4.57% 27.16 3.68% 0.44 30.59% N/A 0.09 8.07% N/A 0.06 6.05% N/A 0.05 4.57% N/A 0.04 3.68% N/A 0.00 1.93 0.00 3.64 0.00 3.01 0.00 2.28 0.00 1.81 100.00% -144.89% -144.89% -279.43% -402.57% Year 2 100.00% 16.45% 22.14% 59.91% 65.17% Year 3 100.00% 15.53% 23.89% 46.73% 49.74% Year 4 100.00% 18.51% 28.48% 42.30% 44.32% Year 5 100.00% 21.12% 32.50% 38.32% 39.78%
6.1 Revenue Forecast

The following is a five-year revenue forecast. Direct costs include all costs which can be directly tied to revenue and include cost of goods.
Revenue Forecast
Year 1 Revenue VIVA! Personal Assistant VIVA! Preferred Providers VIVA! Market Place VIVA! Learning Center Revolutionary Real Estate Total Revenue $141,332 $95,360 $0 $0 $39,728 $276,420 $2,670,789 $1,108,545 $65,700 $284,874 $2,690,685 $6,820,593 $4,006,183 $1,662,818 $198,000 $1,069,137 $4,036,028 $10,972,166 $5,007,729 $2,078,522 $498,000 $2,099,028 $5,045,034 $14,728,313 $6,259,661 $2,598,152 $930,000 $3,142,919 $6,306,293 $19,237,026 Year 2 Year 3 Year 4 Year 5
Year 1 Revenue Monthly

$90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Month 3 Month 4 M onth 1 M onth 5 M onth 7 Month 10 Month 11 $0 Month 2 Month 6 Month 9 Month 8 Month 12 VIVA! Personal Assistant VIVA! Preferred Providers VIVA! Learning Center VIVA! Market Place Revolutionary Real Estate
Revenue By Year
$25,000,000 Revolutionary Real Estate $20,000,000 VIVA! Learning Center $15,000,000 VIVA! Market Place $10,000,000 VIVA! Preferred Providers $5,000,000 VIVA! Personal Assistant $0 Year 1 Year 2 Year 3 Year 4 Year 5
6.2 Break-even Analysis

The following break-even analysis shows the revenue necessary to break-even in the first year of operation. It equilibrates revenue and expenses. As shown below, the Company is expected to incur average monthly fixed costs of $56,411 in Year 1. To cover fixed costs and variable costs, which rise and fall with revenue, the Company must, on average, achieve revenue of $56,411 per month to break-even.
Break-even Analysis
Monthly Revenue Break-even Assumptions: Average Monthly Revenue Average Monthly Variable Cost Estimated Monthly Costs $23,035 $0 $56,411 $56,411
Year 1 Break-even Analysis

$80,000 $60,000 $40,000 $20,000 $0 ($20,000) ($40,000) ($60,000) ($80,000) $0 $56,411 Monthly Revenue to Break-Even $112,822
6.3 Projected Profit and Loss

The Company intends to deploy its funding to maximize growth and profitability. In the Profit and Loss table below, gross margin equals sales minus direct costs. The bottom line or profit (as measured before and after interest, taxes, depreciation, and amortization) equals gross margin less operating expenses.
Pro Forma Profit and Loss

Year 1 Revenue Subtotal Cost of Revenue Other Direct Costs Total Cost of Revenue Gross Margin Gross Margin/Revenue Expenses VPA Expenses RRE Expenses Market Place Expenses Learning Center Expenses Information System Expenses Sales and Marketing G and A Depreciation Total Pers onnel
Total Operating Expenses
Year 2 $6,820,593 $0 $0 $0 $6,820,593 100.00%
Year 3 $10,972,166 $0 $0 $0 $10,972,166 100.00%
Year 4 $14,728,313 $0 $0 $0 $14,728,313 100.00%
Year 5 $19,237,026 $0 $0 $0 $19,237,026 100.00%
$276,420 $0 $0 $0 $276,420 100.00%
$17,937 $10,000 $0 $0 $120,000 $62,500 $34,200 $0 $432,291

$676,927
$300,537 $212,000 $59,500 $143,887 $108,000 $494,200 $194,556 $0 $3,797,902

$5,310,582
$303,692 $214,226 $146,600 $390,514 $109,134 $499,389 $196,599 $0 $6,490,958

$8,351,112
$306,881 $216,475 $313,800 $589,103 $110,280 $504,633 $198,663 $0 $8,294,054

$10,533,889
$310,103 $218,748 $548,700 $826,692 $111,438 $509,931 $200,749 $0 $10,258,697

$12,985,059
Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Revenue
($400,507) ($400,507) $0 $4 ($400,511) -144.89%
$1,510,011 $1,510,011 $0 $388,326 $1,121,685 16.45%
$2,621,053 $2,621,053 $0 $917,369 $1,703,685 15.53%
$4,194,424 $4,194,424 $0 $1,468,048 $2,726,376 18.51%
$6,251,966 $6,251,966 $0 $2,188,188 $4,063,778 21.12%
Each pie chart below represents total revenue for five years and illustrates the percentage of revenue allocated to cost of goods (COG), operating expenses and taxes, and interest. The net income piece represents revenue less the aforementioned expenditures.
Year 1 0%
0% 0% 16% 0% 16% 0%
19% 0% 21% 0%
Year 2
Year 3
Year 4
Year 5
6%
8%
10% 11% 71% 68%
78% 100%
76%
Cost of Goods
Total Operating Expenses
Taxes and Interest Incurred
Net Profit
Gross Margin & Profit Monthly

$100,000 $80,000 $60,000 $40,000 $20,000 Gross Margin $0 -$20,000 -$40,000 -$60,000 -$80,000 Month 1 Month 3 Month 4 Month 5 Month 8 Month 6 Month 2 Month 7 Month 10 Month 11 Month 12 Month 9 Profit
Gross Margin & Profit Yearly

$25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 ($5,000,000) Year 1 Year 2 Year 3 Year 4 Year 5 Gros s Margin Profit
6.4 Projected Cash Flow

The following depictions of the Companys projected cash flow show that the Company expects to maintain sufficient cash balances over the five years of this plan. The pro forma cash flow table differs from the pro forma profit and loss (P&L) table. Pro forma cash flow is intended to represent the actual flow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include non-cash items and exclude funding and investment illustrations.
Year 1 Cash
$350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 -$50,000 -$100,000 M onth 1 M onth 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 2 Net Cash Flow Cash Balance
Pro Forma Cash Flow

Year 1 Cash Received Revenue New Current Borrowing New Long-term Liabilities Sale of Other Current Assets Sale of Long-term As sets New Investment Received Subtotal Cash Receiv ed Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Current Borrowing Repayment Long-term Liabilities Principal Purchas e Inventory Purchas e Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $0 $0 $633,086 $143,334 $143,334 $0 $0 $0 $0 $0 $5,591,714 $1,728,879 $1,872,212 $0 $0 $0 $0 $0 $9,198,840 $1,773,326 $3,645,538 $0 $0 $0 $0 $0 $11,928,018 $2,800,295 $6,445,833 $0 $0 $0 $0 $0 $15,077,375 $4,159,650 $10,605,483 $432,291 $200,796 $633,086 $3,797,902 $1,793,812 $5,591,714 $6,490,958 $2,707,882 $9,198,840 $8,294,054 $3,633,964 $11,928,018 $10,258,697 $4,818,678 $15,077,375 $276,420 $0 $0 $0 $0 $500,000 $776,420 $6,820,593 $0 $0 $0 $0 $500,000 $7,320,593 $10,972,166 $0 $0 $0 $0 $0 $10,972,166 $14,728,313 $0 $0 $0 $0 $0 $14,728,313 $19,237,026 $0 $0 $0 $0 $0 $19,237,026 Year 2 Year 3 Year 4 Year 5
6.5 Projected Balance Sheet

Pro Forma Balance Sheet
Year 1 Assets Current Assets Cash Inventory Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $43,845 $0 $0 $43,845 $0 $43,845 $500,000 $0 ($400,511) $99,489 $143,334 $99,489 $151,039 $0 $0 $151,039 $0 $151,039 $1,000,000 ($400,511) $1,121,685 $1,721,173 $1,872,212 $1,721,173 $220,680 $0 $0 $220,680 $0 $220,680 $1,000,000 $721,173 $1,703,685 $3,424,858 $3,645,538 $3,424,858 $294,599 $0 $0 $294,599 $0 $294,599 $1,000,000 $2,424,858 $2,726,376 $6,151,234 $6,445,833 $6,151,234 $390,471 $0 $0 $390,471 $0 $390,471 $1,000,000 $5,151,234 $4,063,778 $10,215,012 $10,605,483 $10,215,012 $0 $0 $0 $143,334 $0 $0 $0 $1,872,212 $0 $0 $0 $3,645,538 $0 $0 $0 $6,445,833 $0 $0 $0 $10,605,483 $143,334 $0 $143,334 $1,872,212 $0 $1,872,212 $3,645,538 $0 $3,645,538 $6,445,833 $0 $6,445,833 $10,605,483 $0 $10,605,483 Year 2 Year 3 Year 4 Year 5
6.6 Sensitivity Analysis

The sensitivity analysis below assumes that revenues are 15% higher or lower than figures projected earlier in this business plan.
Best Case Scenario (Revenue Increases by 15%)

Year 1 Revenue Cost of Goods Gross Margin Gross Margin/Revenue Operating Expenses Net Profit Cash Flow Cash Balance Net Profit/Revenue $317,883 $0 $317,883 100.00% $676,927 ($359,049) $184,797 $184,797 -112.95% Year 2 $7,843,681 $0 $7,843,681 100.00% $5,310,582 $1,646,515 $2,757,176 $2,941,972 20.99% Year 3 $12,617,990 $0 $12,617,990 100.00% $8,351,112 $2,773,471 $3,426,760 $6,368,733 21.98% Year 4 $16,937,560 $0 $16,937,560 100.00% $10,533,889 $4,162,386 $5,019,700 $11,388,433 24.57% Year 5 $22,122,579 $0 $22,122,579 100.00% $12,985,059 $5,939,388 $7,058,669 $18,447,102 26.85%
Worst Case Scenario (Revenue Decreases by 15%)

Year 1 Revenue Cost of Goods Gross Margin Gross Margin/Revenue Operating Expenses Net Profit Cash Flow Cash Balance Net Profit/Revenue $240,365 $0 $240,365 100.00% $676,927 ($436,565) $107,279 $107,279 -181.63% Year 2 $5,930,950 $0 $5,930,950 100.00% $5,310,582 $403,239 $844,444 $951,723 6.80% Year 3 $9,541,014 $0 $9,541,014 100.00% $8,351,112 $773,436 $349,783 $1,301,507 8.11% Year 4 $12,807,229 $0 $12,807,229 100.00% $10,533,889 $1,477,671 $889,369 $2,190,876 11.54% Year 5 $16,727,848 $0 $16,727,848 100.00% $12,985,059 $2,432,813 $1,663,938 $3,854,813 14.54%
Appendix
Year 1 Revenue Forecast
Month 1 Revenue VIVA! Personal Assistant VIVA! Preferred Providers VIVA! Market Place VIVA! Learning Center Revolutionary Real Estate Total Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3 $0 $0 $0 $0 $3 $8 $0 $0 $0 $0 $8 $21 $11,920 $0 $0 $0 $11,941 $4,276 $11,920 $0 $0 $0 $16,196 $11,044 $11,920 $0 $0 $1,740 $24,704 $14,695 $11,920 $0 $0 $5,010 $31,625 $23,278 $11,920 $0 $0 $7,515 $42,713 $37,335 $23,840 $0 $0 $11,273 $72,447 $50,674 $11,920 $0 $0 $14,190 $76,784 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Year 1 Personnel Forecast

Month 1 Personnel Count VPA Staff RRE Staff Marketing Plac e Staff Learning Center Staff Information System Staff Sales and Marketing Staff G and A Staff Total Personnel 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 0 0 0 1 1 3 7 5 2 0 0 1 1 5 14 6 2 0 0 1 1 5 15 7 2 0 0 1 1 6 17 9 2 0 0 1 1 6 19 11 2 0 0 1 1 6 21 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Personnel Wage VPA Staff RRE Staff Marketing Plac e Staff Learning Center Staff Information System Staff Sales and Marketing Staff G and A Staff $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,583 $1,300 $0 $0 $0 $1,000 $0 $7,187 $3,427 $4,083 $0 $0 $1,500 $0 $6,012 $4,174 $4,083 $0 $0 $1,500 $6,000 $6,012 $4,242 $4,083 $0 $0 $2,500 $6,000 $5,595 $4,216 $4,083 $0 $0 $2,500 $6,000 $6,095 $4,272 $4,083 $0 $0 $2,500 $6,000 $5,262
Personnel Costs VPA Staff RRE Staff Marketing Plac e Staff Learning Center Staff Information System Staff Sales and Marketing Staff G and A Staff Total Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $13,167 $13,167 $2,600 $0 $0 $0 $1,000 $0 $21,560 $25,160 $17,136 $8,167 $0 $0 $1,500 $0 $30,060 $56,863 $25,041 $8,167 $0 $0 $1,500 $6,000 $30,060 $70,768 $29,691 $8,167 $0 $0 $2,500 $6,000 $33,570 $79,928 $37,941 $8,167 $0 $0 $2,500 $6,000 $36,570 $91,178 $46,991 $8,167 $0 $0 $2,500 $6,000 $31,570 $95,228
Year 1 Profit & Loss

Month 1 Revenue Direct Costs of Revenue Other Direct Costs Total Cost of Revenue $0 $0 $0 $0 Month 2 $0 $0 $0 $0 Month 3 $0 $0 $0 $0 Month 4 $3 $0 $0 $0 Month 5 $8 $0 $0 $0 Month 6 $11,941 $0 $0 $0 Month 7 $16,196 $0 $0 $0 Month 8 $24,704 $0 $0 $0 Month 9 $31,625 $0 $0 $0 Month 10 $42,713 $0 $0 $0 Month 11 $72,447 $0 $0 $0 Month 12 $76,784 $0 $0 $0
Gross Margin Gross Margin/Revenue
$0 N/A
$0 N/A
$0 N/A
$3 100.00%
$8 100.00%
$11,941 100.00%
$16,196 100.00%
$24,704 100.00%
$31,625 100.00%
$42,713 100.00%
$72,447 100.00%
$76,784 100.00%
Expenses VPA Expenses RRE Expenses Market Place Expenses Learning Center Expenses Information System Expenses Sales and Marketing G and A Depreciation Total Personnel Total Operating Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $731 $0 $0 $0 $30,000 $0 $2,796 $0 $13,167 $46,694 $2,152 $0 $0 $0 $20,000 $6,500 $4,996 $0 $25,160 $58,808 $1,139 $2,000 $0 $0 $20,000 $9,000 $5,370 $0 $56,863 $94,371 $1,503 $2,000 $0 $0 $10,000 $14,000 $5,296 $0 $70,768 $103,567 $2,257 $2,000 $0 $0 $10,000 $9,500 $5,486 $0 $79,928 $109,171 $5,094 $2,000 $0 $0 $10,000 $9,500 $5,960 $0 $91,178 $123,732 $5,061 $2,000 $0 $0 $20,000 $14,000 $4,296 $0 $95,228 $140,584
Profit Before Interest and Taxes Interest Expense Taxes Incurred
$0 $0 $0
$0 $0 $0
$0 $0 $0
$3 $0 $1
$8 $0 $3
($34,753) $0 $0
($42,612) $0 $0
($69,668) $0 $0
($71,942) $0 $0
($66,458) $0 $0
($51,284) $0 $0
($63,800) $0 $0
Net Profit Net Profit/Revenue
$0 N/A
$0 N/A
$0 N/A
$2 65.00%
$5 65.00%
($34,753) -291.04%
($42,612) -263.11%
($69,668) -282.01%
($71,942) -227.49%
($66,458) -155.59%
($51,284) -70.79%
($63,800) -83.09%
Year 1 Cash Flow

Additional Cash Received Revenue New Current Borrowing New Long-term Liabilities Sale of Other Current Assets Sale of Long-term Assets New Investment Rec eived Subtotal Cash Received Month 1 $0 $0 $0 $0 $0 $0 $0 Month 2 $0 $0 $0 $0 $0 $0 $0 Month 3 $0 $0 $0 $0 $0 $0 $0 Month 4 $3 $0 $0 $0 $0 $0 $3 Month 5 $8 $0 $0 $0 $0 $0 $8 Month 6 $11,941 $0 $0 $0 $0 $250,000 $261,941 Month 7 $16,196 $0 $0 $0 $0 $0 $16,196 Month 8 $24,704 $0 $0 $0 $0 $0 $24,704 Month 9 $31,625 $0 $0 $0 $0 $250,000 $281,625 Month 10 $42,713 $0 $0 $0 $0 $0 $42,713 Month 11 $72,447 $0 $0 $0 $0 $0 $72,447 Month 12 $76,784 $0 $0 $0 $0 $0 $76,784
Cash Spending Bill Payments Additional Cash Spent Current Borrowing Repayment Long-term Liabilities Principal Repayment Purchase Inventory Purchase Long-term Assets Dividends Cash Spent
$0 $0
$0 $0
$0 $0
$0 $0
$0 $1
$13,167 $1,120
$25,160 $33,531
$56,863 $33,777
$70,768 $37,352
$79,928 $32,681
$91,178 $29,353
$95,228 $32,981
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $1
$0 $0 $0 $0 $0 $14,287
$0 $0 $0 $0 $0 $58,691
$0 $0 $0 $0 $0 $90,640
$0 $0 $0 $0 $0 $108,119
$0 $0 $0 $0 $0 $112,608
$0 $0 $0 $0 $0 $120,531
$0 $0 $0 $0 $0 $128,208
Net Cash Flow Cash Balanc e
$0 $0
$0 $0
$0 $0
$3 $3
$7 $10
$247,654 $247,664
($42,495) $205,169
($65,936) $139,232
$173,505 $312,738
($69,896) $242,842
($48,084) $194,758
($51,424) $143,334
Year 1 Balance Sheet

Month 1 Current Assets Cash Inventory Total Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $3 $0 $3 $10 $0 $10 $247,664 $0 $247,664 $205,169 $0 $205,169 $139,232 $0 $139,232 $312,738 $0 $312,738 $242,842 $0 $242,842 $194,758 $0 $194,758 $143,334 $0 $143,334 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $3
$0 $0 $0 $10
$0 $0 $0 $247,664
$0 $0 $0 $205,169
$0 $0 $0 $139,232
$0 $0 $0 $312,738
$0 $0 $0 $242,842
$0 $0 $0 $194,758
$0 $0 $0 $143,334
Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1 $0 $0 $1 $3 $0 $0 $3 $32,409 $0 $0 $32,409 $32,527 $0 $0 $32,527 $36,258 $0 $0 $36,258 $31,706 $0 $0 $31,706 $28,268 $0 $0 $28,268 $31,469 $0 $0 $31,469 $43,845 $0 $0 $43,845
Long-term Liabilities Total Liabilities
$0 $0
$0 $0
$0 $0
$0 $1
$0 $3
$0 $32,409
$0 $32,527
$0 $36,258
$0 $31,706
$0 $28,268
$0 $31,469
$0 $43,845
Paid-in Capital Retained Earnings Current Retained Earnings Total Capital Total Liabilities and Capital
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $2 $2 $3
$0 $0 $7 $7 $10
$250,000 $0 ($34,746) $215,254 $247,664
$250,000 $0 ($77,358) $172,642 $205,169
$250,000 $0 ($147,026) $102,974 $139,232
$500,000 $0 ($218,968) $281,032 $312,738
$500,000 $0 ($285,426) $214,574 $242,842
$500,000 $0 ($336,711) $163,289 $194,758
$500,000 $0 ($400,511) $99,489 $143,334
Net Worth
$0
$0
$0
$2
$7
$215,254
$172,642
$102,974
$281,032
$214,574
$163,289
$99,489

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Business Plan

2 CONFIDENTIAL Do Not Distribute Without Permission

3 CONFIDENTIAL Do Not Distribute Without Permission

1.0 Executive Summary

1.1 Financial Objectives

Financial Highlights ($000)

Revenue Gross Margin Operating Expenses EBITDA Net Profit

32 32 104 (72) (72)

43 43 109 (66) (66)

72 72 124 (51) (51)

77 77 141 (64) (64)

276 276 677 (401) (401)

6821 6821 5311 1510 1122

10972 10972 8351 2621 1704

14728 14728 10534 4194 2726

19237 19237 12985 6252 4064

Gross Margin/Revenue EBITDA/Revenue Net Profit/Revenue

100% 100% 65%

100% -71% -71%

100% -83% -83%

100% -145% -145%

100% 22% 16%

100% 24% 16%

100% 28% 19%

100% 32% 21%

100% -291% -263% -282% 65% -291% -263% -282%

-227% -156% -227% -156%

Net Cash Flow Cash Balance - Ending

Projected Operating Hig hlights By Year $25,000

Pr oj ected Reven ue B y Year $25,000

5 CONFIDENTIAL Do Not Distribute Without Permission

Projected Cash Flow By Year $12,000

Projected Net In come B y Year $4,500 $4,000

6 CONFIDENTIAL Do Not Distribute Without Permission

1.2 Company Ownership

1.3 Company Location

7 CONFIDENTIAL Do Not Distribute Without Permission

2.0 Products and Services

2.1 Product and Service Description

2.2 Revenue Opportunities

10 CONFIDENTIAL Do Not Distribute Without Permission

3.0 Market Analysis Summary

11 CONFIDENTIAL Do Not Distribute Without Permission

12 CONFIDENTIAL Do Not Distribute Without Permission

Placer County, CA 326,242 31.3% 248,399

Yuba County, CA 70,396 16.9% 60,219

Sutter County, CA 91,410 15.8% 78,930

520,577 2.68 341,633 3.34

134,428 2.58 97,539 3.03

Obtained at: Obtained at: Obtained at: Obtained at:

13 CONFIDENTIAL Do Not Distribute Without Permission

$141,145 $265,624 $272,835

$208,781 $397,230 $415,750

$21,142 $26,856 $31,841

$27,963 $38,311 $47,400

33.8 34.8 35.1

37.9 38.9 39.4

48.8% 51.2% CONFIDENTIAL Do Not Distribute Without Permission

910,257 6.7% 8.6% 22.5% 25.4% 8.9% 19.1% 8.7%