A Digital Safari GreenBizz Company Business Plan Competition 2012

Chief Executive Officer Chief Financial Officer Chief Technical Officer Marketing Director Nina Tran Bany Noguera Eddie Duenas Rjay Molo

Mt. Diablo High School - Concord, California 94520

Executive Summary

The Market and OpportunityThroughout the years, statistics have shown that as age increases, muscle and mobility issues become more common and the ability to be independent becomes difficult. There have been an increased num-ber of patients in nursing homes and hospitals for physical rehabilitation and therapy for those suffering with these issues. However, with the growing senior population, the demand for a product to satisfy this need increases. M-Power Inc. promotes safety and independence as it works to help prevent future inju-ries, aid in the rehabilitation process, and restore self sufficiency to leave the nursing home.

CompetitionWith many products out in the market to help in promoting independence, M-Power Inc. competes with walker and power scooter manufacturers such as Hugo Walkers, Afhkim Scooters, and Pride Mobility. Walkers and power scooters provide mobility for those struggling to get around, but the M-Power Muscle Enhancement Wear provides strength and mobility with no restrictions to ensure comfort and freedom for the user.

Marketing and AdvertisingTo bring the M-Power Wear to the market, we will launch our marketing campaign in year two. We will broadcast commercials on news channels and basic cable channels during the day. We will post print advertisement in local hospitals, clinics, physical therapy offices and rehabilitation centers. We willl hire sales representatives to hold presentations within hospitals and attend medical conventions to educate and inform professionals on our new and emerging technology that can help serve patients.

Financial Projections The M-Power Muscle Enhancement Wear is available in arms or a set of legs. The arm costs a wholesale price of $450, with a retail of $900. The set of legs costs a wholesale price of $950, and a retail price of $1900. In it’s first year, we will undergo product development and manufacturing to prepare for the second year out in the market where we expect sales of 12,500 arms and 11,250 legs after launching our marketing campaign. In it’s third year out in the market, we will increase advertising and continue to sell with sales of 25,000 arms and 22,500 legs. In year 4, we will continue to expand and increase advertising to reach a sales estimate of 50,000 arms to be sold and 45,000 legs. And lastly, in year 5, we will expect the largest amount of arms and legs sold due to advertising and publicity. We expect a sales of 100,000 arms and 90,000 legs. The total net income of the M-Power Muscle Enhancement Wear in it’s first 5 years will be $71,775,000.

Funds RequestedIn series A, we received $5,000,000 in investment money to pay for building the facility, resources, and all costs of production. For series B, we are asking investors for $2,000,00 to pay for the expenses of launching our marketing campaign and costs of production to go beyond the second year. With this investment, M-Power Inc. will be able to continue business and expand to grow in sales for further years.

CompanyM-Power Inc. was founded by four individuals with an aim to help promote safety and independence in the lives of those whose daily living has been impacted due to muscle or mobility issues. Nina Tran, the Chief Executive Officer of M-Power Inc. manages the overall success of the business. Eddie Duenas, the Chief Technical Officer of M-Power Inc. communicates operation, mechanics, and disposal of the M-Power. Bany Noguera, the Chief Financial Officer communicates costs of production and projections regarding market share, revenue, and profit. Rjay Molo, the Marketing Director communicates distribu-tion, communication, and strategies for advertisement to target customers.

M-Power Inc. specializes in promoting independence and safety in those struggling with muscle or mobility issues through it’s new technology, the M-Power Muscle Enhancement Wear. M-Power Wear is a light weight slip on stocking that is worn on the arm or leg to provide additional strength when resistance is detected to aid those suffering with muscle weakness, injury, or difficulty getting around.

The M-Power Muscle Enhancement Wear aids in the rehabilitation process for common workplace or sports injuries and helps in the prevention of common accidents such as falls. It removes the depen-dence on others, provides strength to perform daily activities, and promotes self sufficiency in the lives of others who’s independence has been impacted by their muscle or mobility issue.

Company Profile

M-Power Inc. was founded by four individuals with an aim to help promote safety and independence in the lives of those whose daily living has been impacted due to muscle weakness, injury, or mobility is-sues. Nina’s grandmother suffered severe muscle weakness as her bones became fragile and her body began to slow down. She became more prone to falls and minor injuries that began to become more severe as time passed. Eventually, Nina’s grandmother needed to be taken care of as she lacked the ability and strength to stand on her own. She rejected the idea of walkers and power scooters because it would bring too much attention upon herself and the application is complicated and bulky. She did not want to be sent to a care home because of the financial costs and the fear of being away from her family. As Nina told her fellow classmates of her situation at home, they were able to relate as they also had family members who began to become more fragile and weak. With this, the four came together to form M-Power Inc., with a goal of finding a solution to improve the lives of those struggling with muscle or mobility issues.

Rjay Molo, the Marketing Director of M-Power, has al-ways been one to express his creativity through visual and auditory media. With 3 years of experience in the Digital Safari Academy, he learned skills necessary for his current position. Rjay learned skills in public speaking and com-munication as well as media skills in Photoshop, Indesign, Final Cut, and Garage Band. He demonstrated his skills and talents through his “Speaking of I.Dentity” video in which he composed an original song, created a video, and performed live in front of an audience. Rjay also applied his media skills in a summer long internship at Under the Sun Studios where he created voice training videos and taught

M-Power Inc. is committed to promoting independence and enhanced qualities of life for all who struggle with issues associated with strength and mobility by providing easy to use, safe, and reliable technology.

Nina Tran, the Chief Executive Officer of M-Power has always been one to accept the role as leader. With 3 years experience in the Digital Safari Academy, she learned the skills neces-sary to communicate effectively as well as organize and direct a group. Since her first enrollment in the DSA, Nina emerged as a natural leader when she led her group in the Legacy of Imperialism project to create an efficient and long lasting water supply in Niger. She also has experience in working with a nonprofit organization called D.R.E.E.M reality, where her team created informational brochures on sustainability as well as designing the company’s logo. She organized weekly business meetings with her clients through online communication as well

as in person. Nina also spent a summer interning at John Muir Health in Walnut Creek in which she cre-ated multiple educational projects and business ads, attended business meetings, and learned skills in time management, proper behavior at the workplace, and the resources and information needed to oper-ate a successful business. With her primary responsibilities of managing M-Power as a whole, her focus, ambition, and leadership will play a key role in the success of the business.

Executives

Edward Duenas, the Chief Technical Officer of M-Power has shown true potential in his ability to be a leader as well as a team player. Edward has been enrolled in the Digital Sa-fari Academy for 3 years and learned skills necessary for his position. With his primary responsibilities in understanding and communicating the mechanics, production, and opera-tion of the Mpower Wear, Edward’s strong leadership and ability to work and communicate well with others makes him well suited for the position. With prior experience construct-ing solutions to worldwide problems, Edward, alongside with his group, was funded in the Legacy of Imperialism competi-tion in which they constructed educational academies for

children and adults in Togo. In his leisure time, Edward participates in extracurricular activities. He is a baseball pitcher and was the quarterback of the football team for 3 years. With his drive, motivation, and experience, Edward plays a major role in the creation and future success of the M-power.

Bany Noguera, the Chief Financial Officer of M-Power, demonstrates strong qualities in leadership through her organization and communication skills. With 3 years experi-ence in the Digital Safari Academy, Bany has learned to communicate and work well with others. With experience in financial handling, Bany has been working as a chief financial organizer at the music school in her church. She manages the money, charges tuition, buys the necessary materials for class, organizes recitals, and works as a tutor to help others. Bany also enrolled in a summer long intern-ship where she worked as a marketing assistant at the Wil-lows Theatre Company. With the primary responsibilities of

understanding and communicating the costs associated with production, as well as projections regard-ing market share, revenue, and profit; Bany’s prior experience in financials and her ability to communi-cate well with others makes her well qualified for this position to ultimately contribute to the success of M-Power Inc.

students in music classes. With the primary responsibilities of communicating to target customers, dis-tribution of the M-power into the market, and strategies for advertisement, Rjay’s creativity will be a key factor in M-Power’s success and expansion throughout the years.

Company History

For those suffering with muscle and mobility issues, M-Power Inc. has invented the solution. We have created the M-Power Muscle Enhancement Wear, an easy to use, slip on stocking that is worn on the arm or legs. It contains patented technology to pro-vide additional strength when resistance is detected to assist the muscles in daily activities.

The M-Power Wear consists of 3 layers. The first layer is made of nylon with embedded copper wires, artifical muscles made of silicon, resistance sensors, a flexible rechargable battery and a pro-grammed computer chip. The second layer is the copper-aluminum shape memory alloy that allows flexibility and the ability for the arm or leg to conform to the position necessary for movement or direction. The third layer is the cotton fabric that is attached to the shape memory alloy in colors black or white.

The stocking functions through the flexible rechar-gable battery pack and the programmed computer chip. When sensors detect resistance within the arm or leg, the chip signals electric current from the battery pack to pass through the copper wires. This stimulates contraction in the artifical muscle to provide strength.

The purpose of the M-Power Muscle Enhancement Wear is to restore independence for those individu-als suffering from muscle or mobility issues. It easily assists in performing daily activites and restores self sufficieny to live independently and free of restric-tions as it maintains range of motion for comfort and flexibility.

M-Power Features:

Exterior• Nylon stocking

• Cotton fabric

Interior• Artifical Muscle made

of silicon

• Resistance Sensors

• Copper Wiring

• Flexible rechargable

battery to power

electrical current

• Programmed

Computer Chip

• Copper-Aluminum

Shape Memory Alloy

M-Power Wear Benefits:

• Restores independence

• Safe to use

• Lightweight

• Assists in everyday activities

• Prevents muscle collapse and fatigue

• Easy to wear, can slip on or off

• Provides additional strength

• Aids in rehabilitation process

• Maintains range of motion

• Can easily be concealed

• Relieves strain on muscles

Product Data Sheet

M-Power Muscle Enhancement WearIt removes the dependence on others and reduces the high costs of nursing homes. It aids in the rehabilitation process for common work-place or sports injuries and helps in preventing common accidents in those suffering with weak muscles and are more prone to falls to decrease death rates and hospital visits.

Opportunity Assessment

In “What Happens to Aging Muscles?”, Brent

Agin, MD and Sharon Perkins describe the trends

in age for muscles to deteriorate, resulting in a

lack of strength. The trends showed that muscle

weakness increased as the population ages.

Statistics show, that on average individuals around

the age of 50-70 lose 30% of their strength, and

1% of muscle strength for each day spent in bed.

In relation to this trend, recent studies by Admin-

istration of Aging have shown that the number of

senior citizens in the U.S is rapidly increasing as

they currently represent 12.4% of our population

but are expected to grow to 19% in the future.

With the increase in age comes higher rates of

muscle weakness and high demand for a product

that would help provide aid or assistance. This

is a good business opportunity for M-Power Inc.

as we provide assistance for those suffering with

muscle or mobility issues by promoting indepen-

dence, through our newly invented technology;

the M-Power Muscle Enhancement Wear.

In “A weak balance: the contribution of muscle

weakness to postural instability and falls,” Writer,

Corrinne GC Horlings, describes the trend of

muscle weakness and its leading role in causing

increased risks of falls and imbalance for seniors.

In recent studies of strength training, weakness

was the consistent risk factor for falls in seniors.

According to Centers for Disease Control and Pre-

vention, statistics have shown that throughout the

years, the intensity of the problem has increased.

One out of three adults age 65 or older fall each

year with death rates rising as sharply as 19,700

older adults in 2008. 2.2 million were treated in

emergency departments for nonfatal fall inju-

ries. These falls have resulted in hip/leg/forearm

fractures, brain damage, lack of mobility, and loss

of physical fitness. Falls have also accounted for

billions of dollars for the U.S health care system, nearly $19-28.2 billion in 2000 as stated by, “Injury Pre-

vention & Control: Home and Recreational Safety”. With the incresing senior population, both the number

of falls and the costs to treat fall injuries are likely to increase. In “Psychosocial consequences of falling:

the perspective of older victims to falls and injuries” describe their feelings of powerlessness as they felt

a lack of control and emotion. One man describes falls as something unpredictable and regardless of

his behavior, they can still occur. “I will walk slowly. However, falls are out of my control. In some circum-

stances, no matter how careful I am, falls still cannot be prevented. ¼ Falls are not preventable. (Client

O)” Muscle weakness accounts for increasing rates of falls and instability as well as financial costs and

physical, emotional, and physiological factors. As seniors become more prone to falling as their muscles

weaken, the time spent recuperating further weakens their muscles to account for more falls in the fu-

ture. This cycle can be prevented as the M-Power Muscle Enhancement Wear will provide the necessary

strength to prevent the muscles from collapsing.

According to a 2005 study, the number of seniors residing in nursing homes increased to 17% with 1.3

million living in the care homes. The other 83% live with their family for support and assistance in living.

Although nursing homes provide health and safety for seniors, accidents and injuries within the nursing

homes is still very common, About 1,800 people living in nursing homes die each year from falls and

2-6% suffer severe fractures. Due to the common accidents and injuries to seniors, they often seek as-

sistance in daily living as they lose mobility and independence to live on their own due to their fragility.

Data indicates that 91% of all residents within nursing homes seek assistance in daily living activities.

Charts show that 94.7% of seniors need help bathing, 87.5% need help dressing, and 47.1% need help

eating their food. These statistics demonstrate the severity of the problem as death rates have risen for

older adults with nearly 19,700 dead due to unintentional falls. Falls have resulted in mental and physical

disabilities that can affect the mobility and independence of elders to live on their own such as fractures,

fear of falling, dizziness and loss of confidence.

The rate of residents within nursing homes has

increased throughout the years as seniors seek

help in daily activities. This supports our prod-

uct as a need as weak muscles are the leading

cause of falls and imbalance; our product works

to relieve the issue. The M-Power Muscle En-

hancement Wear will help those suffering with

muscle or mobility issues maintain their indepen-

dence longer by assisting them when in need. It

is essential as it provides the necessary strength

for assistance and maintains the range of motion

to allow the patient freedom from restriction.

Therefore, the M-Power Muscle Enhancement

Wear is needed. Statistics demonstrate the det-

rimental effects of weak muscles. Not only does

the M-power Wear provide additional strength,

but it enhances independence in individuals that

have difficulties performing everyday activities.

As the population will contrinue to age, muscle

and mobility issues will increase along with a high

demand of assistance. With its many features and

benefits, the M-Power Muscle Enhancement Wear

is the perfect candidate for providing a happier,

longer, and more independent life without the reli-

ance on others to do so.

Promotes Independence

Enhances strength

Assists in mobility

Maintains range of motion

Prevents muscle collapse/fatigue

Easy to use/wear

M-Power Inc. HugoPride Mobility Afikim

The benefits of M-Power in comparison to leading competition.

Competitive Analysis

M-Power Inc. aims to promote independence in the lives of those struggling with muscle or mobility is-

sues through our newly invented technology, the M-Power Muscle Enhancement Wear.

Other companies specialize in the production of services to benefit patients suffering from injured or

weak muscles. Hugo, a manufacturer of mobility products has provided innovative technologies that

enhance independence for individuals. With an aim to provide “freedom, mobility, and confidence to stay

active and go anywhere, anytime”, Hugo specializes in manufacturing and distributing walkers that pro-

vide stability to the user allowing them to move around a little easier. Their products are well known and

are sold in multiple stores such as Sears and Walgreens.

Another company that is competition is Pride Mobility. Pride mobility is a company that sells electric

scooters. Pride Mobility aims to provide patients with “a life with no boundaries” through their easy to op-

erate power scooters. The patient is provided with easy transportation from place to place. The scooters

come in multiple colors, styles, and comfort levels; however they all work to enhance the independence

of the patients.

Afikim is similar to Pride Mobility. It manufactures advanced, electrically powered mobility scooters.

Afikim’s electric vehicles aim to provide mobility for those who are unable to normally get around due to

muscle weaknesses within the legs. Afikim’s scooters can range from outdoor and indoor mobility scoot-

ers that are designed for user comfort, easy operation, sturdy construction, and reliability in all driving

conditions to promote independence for the patient.

Hugo Walkers, Pride Mobility Scooters, and Afikim Scooters are competitors to M-Power Inc. as they all

aim to restore and enhance the independence of those with muscle or mobility issues that prevent them

from performing simple day to day tasks. They all fulfill the same goals for independence and address

the need of safety for the weak or disabled, but with different products. Although these companies all

aim to provide easy to use products that assist in everyday activities and independence, M-Power Inc.

can be distinugished through its use of patented technology and structure to provide additional strength

as well as stability and mobility for individuals. The M-Power Muscle Enhancement Wear is more conve-

nient as it is lighter, less noticable, and can be taken on and off when necessary.

Therefore, consumers will buy M-Power Muscle Enhancement Wear over Hugo, Pride Mobility, and Afi-

kim. It enhances independence by providing muscle strength in the legs for mobility, as well as the arms

for strength. Patients can easily wear the stocking and acquire the additional strength they need to per-

form daily activities and remove their dependence on others. With the M-Power Wear, users can do what

they desire without the hassle of lugging around a big bulky walker or scooter, as our product is light

weight, thin, and allows uses to maintain the range of motion. Users would be able to go places without

limitations and without bringing attention to themselves, something walkers and scooters cannot do.

The M-Power Muscle Enhancement Wear provides strength and promotes independence for those who

have difficulties performing daily activities. M-Power Inc. mainly targets customers with muscle or mobil-

ity issues. Our target customers are the upper middle class suffering from muscle or mobility issues that

impact their independence and ability to perform daily activities that seek a product such as the M-Pow-

er Enhancement Wear that will provide for their needs.

Customer Profile 0%

3.8%

7.5%

11.3%

15.0%%

of Muscle W

eakness

18-24 25-29 30-34 35-39 40-44 45-49

Age

According to Graph A, muscle weakness increas-

es as age increases. In ages 18-24, the rate of

those with muscle weakness was 0%, but as the

population began to age, it increased to 11% for

ages 45-49.

Mobility issues also increase with age.

As the population ages, mobility decreased, as

suggested by the bar graph in Graph B. In people

ages 16-19, their ability to move around easily and

freely was 27%, but decreased to a drastic 1% as

they reached the age of 65.

The increased rates of muscle weakness and

mobility issues create social problems within the

society as it increases the amount of potential falls

and death, as well as people losing the ability

to provide for themselves. M-Power Inc. targets

customers that suffer from these issues and want

to restore their independence.

Lastly, M-power Inc. targets the upper middle

class because the M-Power Muscle Enhancement

Wear would be as costly as other alternatives

such as walkers and power scooters but contain

many more benefits that exceed their competition.

The M-power Wear would be successful in many

states within the U.S, however the state with a pro-

gressing increased rate of growth for seniors is the

coastal region of California. According to Graph

C, there is a higher population of seniors located

there due to the baby boom generation from past

years as well as the influx to California for jobs to

contribute to the growth of our senior generation.

Graph A : Muscle Weakness in Age

0%

7.5%

15.0%

22.5%

30.0%

16-19 20-24 25-34 35-44 45-54 55-64 65+

% o

f Mob

ility

Rat

es

Age

Graph B : Mobility Rates in Age

0

10.0

20.0

30.0

40.0

1900 1991 1992 1993 1994

Pop

ulat

ion

of S

enio

rs in

CA

(m

il)

Year

Graph C : Population Growth in CA

The percentage of muscle weakness within age groups.

The percentage of people mobile within age groups.

The population of seniors within California per year.

Marketing PlanProductWith the goal of restoring independence in all, M-Power

Inc. introduces M-Power Muscle Enhancement Wear.

The M-Power Muscle Enhancement Wear is a light

weight, slip on stocking that is placed on the arm or leg

to provide additional strength when resistance is detect-

ed. It provides mobility, strength, and independence all

in one. It is lightweight, safe to use, and easy to operate

to ensure safety and self suffiency.

PriceDue to the high expenses and large amount of resources

needed to produce our technology, The M-Power Mus-

cle Enhancement Wear for the arm costs $450 wholesale

and $900 retail. The Wear for the leg is $950 wholesale

and $1900 retail for a set of legs. When purchasing the

M-Power Muscle Enhancement Wear, it comes with a

three year warranty. M-Power Inc. will replace any defec-

tive products with a new, fully functional M-Power Wear

for the arms or legs within the 3 year time period of pur-

chase.

PlacementAfter manufacturing, the M-Power Muscle En-

hancement Wear will be distributed to local re-

tailers for customer accessibility. The M-Power

Muscle Enhancement Wear will be available

for direct purchase over the counter at special-

ized medical supply and equipment stores like

AlegroMedical, Concord Medical Market, Abil-

ity Medical Supply, Mission Medical Supply,

and NorthWest Medical Supplies.

PromotionM-Power Inc. mainly targets customers with

muscle or mobility issues that impact their in-

dependence and ability to perform daily ac-

tivites. Our marketing message will focus on

promoting independence, safety, and a better

lifestyle. M-Power Inc. intends to use market-

ing strategies in broadcasting informational

advertisements, posting print ads, holding

presentations in local facilities and attending

medical conventions. We will be broadcasting

informational advertising to educate viewers on the M-Power Wear and the benefits that come along

with an independent lifestyle. These commercials will be broadcasted on news channels such as Kron

4 or KTVU 2 as a majority of the population are exposed to news coverage daily. We will also broadcast

commercials on basic cable channels such as Fox, ABC and Lifetime as they are popular and viewers

are more likely to be of older age. We will broadcast commercials during the daytime as a majority of our

customers spend their days at home due to muscle or mobility issues.

Another marketing strategy M-Power Inc. intends to use is print advertisements. We will post print adver-

tisements with information about the M-Power Muscle Enhancement Wear in local hospitals, clinics, physi-

cal rehabilitation centers, and physical therapy offices as many of our target customers may be seeking

assitance in one of these facilities.

M-Power Inc. will also be sending sales representatives to healthcare conventions such as the Medical

Equipment and Supply Association to publicize and be the voice of M-Power Inc. We will also be hiring

sales representatives to schedule presentations in hospitals or centers to educate and attract medical

professions to recommend the M-Power Wear for their patients as prevention from future muscle or mobil-

ity issues.

Acquiring

In the process of creating the M-power Muscle Enhancement Wear,

the materials needed are silicon, cotton fabric, a rechargeable bat-

tery, nylon, copper, a programmed computer chip and a copper-alu-

minum-nickel shape memory alloy (SMA). In comparison to competi-

tion, the M-Power Wear uses more nonrenewable resources.We will

get the computer chip from laboratory profressors who we will hire to

create the technology. We will also need miners, drillers, melters,and

harvesters to obtain the other resources. This will create negative

environmental impacts. Mining for copper leads to air pollution, de-

forestation, and potential wildlife habitat loss. Drilling for oil disturbs

the environment, emits CO2 into the atmosphere, and could lead to

potential destruction of wildlife if there is an oil spill. Melting metals

produces toxins that are harmful and polluting to the atmosphere.

And lastly, harvesting cotton impacts the environment as many toxins

are used in the soil and a large amount of water is needed for it to

grow. The labor needed to make the M-power Wear does create more

jobs, however the working conditions are harmful to human health

due to the potential exposure to toxins.

Manufacturing

After obtaining the necessary resources to create the M-Power Wear,

it will be manufactured in our facility located in California. We will be

manufacturing our product in California because resources and pro-

duction costs are accessable and affordable and there is a high popu-

lation of seniors who would likely purchase the product. We will hire

local california workers who seek employment to create the M-Power

Wear. This creates more job opportunities for the unemployed. Manu-

facturing does create higher amounts of pollution compared to current

products as it emits more CO2 into the atmosphere. The M-Power emits

energy in the production of manufacturing and uses energy from its

small rechargeable flexible battery that would power the device and be

recycled properly after use.

Life Cycle AnalysisTransportation

In transportating the M-Power Muscle Enhancement Wear from manufac-

turing to its sales location, it requires the use of trains and trucks. The M-

Power Muscle Enhancement Wear for arms and legs will be transported

to local sales locations in medical supply and equipment stores. Since

the M-Power Wear is lighter than walkers and power scooters, the envi-

ronmental impact of transporting them is not as severe. M-Power Inc. is

able to transport more of our products per train or truck and cause less

C02 to be emitted compared to the competition.

Usage

The M-Power Muscle Enhancement Wear promotes independence and

aids in decreasing social problems. Although there are environmental

impacts in the production and distribution of the M-Power, the social ben-

efits outweigh the costs toward the environment. The M-Power Wear pro-

motes safety, well being, independence and the best quality of life. Those

struggling with muscle or mobility issues will no longer have to reside in

nursing homes and pay the high costs, so it saves money. Patients will no

longer need to use walkers or power scooters to get around, they will now

be able to move freely with no restrictions or attention being brought upon

themselves. It allows people suffering from muscles or mobility issues to

provide for themselves and perform activities they couldn’t do before.

M-Power Wear aids in rehabilitation processes to allow workers to stay on

the job and continue to make money. It allows sports players to continue

performance even after injury. M-Power Wear prevents muscle collapse

and potential falls to ensure the safety and well being of others to live

longer and more secure. The M-Power Wear creates minimal pollution in

usage because it only uses a small rechargable flexible battery that can

be resused many times.

Disposing

After use, the Wear will be recycled or sent to landfills. When the stocking

is disposed of, the cotton, nickel, aluminum, copper, and battery can be

recycled and reused for other purposes.The silicon and nylon are dis-

posed of in landfills. However this does not create severe environmental

problems as they contain minimal harmful toxins.

Acquiring

Manufacturing

Transportation

Disposal

Financial ProjectionsPricing and Sales ModelsThe M-Power Muscle Enhancement Wear comes in an

arm or a set of legs. The arm costs $450 wholesale and

$900 retail. The set of legs costs a $950 wholesale and

$1900 retail. We will sell the product to retailers who will

distribute it to consumers. The wholesale and retail pric-

es of the M-Power Wear is determined in relation to the

costs of obtaining the resources and the labor needed for

production. The prices are also determined in consider-

ation to our target customers, who we believe are most

commonly placed in the “middle class” of the economy,

so the M-Power Wear is affordable and set at a reason-

able price. In comparison to competition, the M-Power

Wear is more complex and unique, so the price is equal

to or greater than current competitors as it provides a

greater amount of substantial benefits for the consumers.

Costs of GoodsFor the purposes of this project it is assumed

that the costs of goods for our company’s

product compromises 45% of our gross rev-

enue and is composed of the following items:

manufacturing, labor, and materials such as

silicon, copper, cotton, a flexible battery, pro-

grammed computer chip, copper-aluminum

shape memory alloy and resistance sensors.

As we increase procduction levels, these

costs will increase. The fixed cost in the

production of the M-Power Wear accounts

for 30%. This pays for essential employees,

buildings and equipment. Sales and Revenue ProjectionsIn it’s first year, the M-Power Muscle Enhance-

ment Wear will have an initial estimate of sales

and revenue of 0, because we will be primar-

ily focused on developing our business and

manufacturing products to be sold in the mar-

ket. For the second year, we have set an esti-

mated sale and revenue goal of 12,500 arms

and 11,250 sets of legs to be sold. In it’s third

year, we estimate a sales and revenue goal

of 25,000 arms, and 22,500 legs to be sold.

In it’s fourth year, we estimate sales of 50,000

arms and 45,000 legs, and in it’s 5th year, we

estimate 100,000 arms and 90,000 legs to be

sold. With these sales and revenue goals for

the Muscle Enhancement Wear’s first 5 years,

we project $71,775,000 in net income.

We determined our growth estimates by consumer

population. According to current statistics, as an indi-

vidual ages, muscle and mobility issues increase. The

babies in the baby boom generation have aged, and

therefore we have a higher population of seniors and

those more likely to suffer with these issues that seek a

product that provides independence and freedom. We

also estimated these goals by looking at the amount of

marketing we will do for our product. In it’s first year, we

pay marketing expenses for the creation of a business

plan and designers which accounts for no sales. As we

begin a marketing campaign in year 2 with TV commeri-

cals and print ads, we estimate sales to increase and

by year 3 we will hire sales representatives to speak at

conventions and local facilities to create more publicity

to increase sales dramatically by year 5.

The total earnings of M-Power Inc. in 5 years.

The total earnings of M-Power Inc. in 5 years after subtracting expenses from gross revenue.

1 2 3 4 5

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

Gross Revenue

Years

Pri

ce

1 2 3 4 5

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

Net Income

Years

Pri

ce

s

Sources and Uses of Funds

In series A funding, M-Power Inc. recieved $5,000,000 to cover start up costs and develop our technol-

ogy. With this fund, we were able to purchase the resources and facility in which we are manufacturing

the M-Power Muscle Enhancement Wear. We also paid for marketing expenses to develop a business

plan and graphic designers. To continue business beyond the second year, we will ask for a series B

funding of $2,000,000. This will pay for expenses in launching our marketing campaign and distribution

to retailers to begin sales of the M-Power Muscle Enhancement Wear. With this investment, M-Power Inc.

will be able to make a profit that exceeds that of the investment money given. Series B funding will be

primarily used on manufacturing and advertising. We will spend about 20% on advertising and 45% on

manufacturing to attract customers and expand production. Series A will own 50% of our company and

series B funders will own 25%.

Financial Model

Year 1 Year 2 Year 3 Year 4 Year 5

Sales Product/Revenue Source

1 M-Power Arms

Projected Units Sold 0 12,500 25,000 50,000 100,000

Sales Growth 100% 100% 100%

2 M-Power Legs

Projected Units Sold 0 11,250 22,500 45,000 90,000

Sales Growth 100% 100% 100%

Income

Gross Revenues

1 M-Power Arms $- $5,625,000 $11,250,000 $22,500,000 $45,000,000 2 M-Power Legs $- $10,687,500 $21,375,000 $42,750,000 $85,500,000

Total Gross Revenue $- $16,312,500 $32,625,000 $65,250,000 $130,500,000

Cost of Goods

1 M-Power Arms $- $2,531,250 $5,062,500 $10,125,000 $20,250,000 2 M-Power Legs $- $4,809,375 $9,618,750 $19,237,500 $38,475,000

Total Cost of Goods $- $7,340,625 $14,681,250 $29,362,500 $58,725,000

Gross Profit $- $8,971,875 $17,943,750 $35,887,500 $71,775,000 Gross Margin 0% 55.0% 55.0% 55.0% 55.0%

Financing Founders $1,000,000 Friends & Family $250,000

Series A Round $5,000,000 Series B Round $2,000,000

Net Income $6,250,000 $10,971,875 $17,943,750 $35,887,500 $71,775,000

Expenses

Product Development $4,000,000 Marketing $100,000 $3,400,000 $6,000,000 $12,000,000 $20,000,000 Company Formation $250,000 Operations (Fixed Cost) $1,000,000 $7,413,750 $9,935,775 $19,773,716 $39,545,474

Total Expenses $5,350,000 $10,813,750 $15,935,775 $31,773,716 $59,545,474

Profit

Net Profit (EBITDA) $(5,350,000) $(1,841,875) $2,007,975 $4,113,785 $12,229,526

Net Operating Margin -11.3% 6.2% 6.3% 9.4%

Cash Flow

Beginning Balance 0 $900,000 $1,058,125 $3,066,100 $7,179,885

Ending Balance $900,000 $1,058,125 $3,066,100 $7,179,885 $19,409,410

Shares to Seed Investors

10.00%

Shares to Series A Investors

50.00%

Shares to Series B Investors

25.00%

Shares to Founders

15.00%

Return on Investments

Company ValuationOur company will be worth $45,860,721. Series A investors will make four times their investment of

$5,000,000. Series B will make approximately eight times their investment of $2,000,000. Series A inves-

tors will make $22,930,361 and series B investors will make $11,465,180.

Advertising and Marketing ExpensesThe costs of marketing needed to advertise the M-Power Muscle Enhancement Wear accounts for 20%

of our gross revenue. In year one of marketing, we will pay expenses for the creation of our business

plan and hiring graphic designers. In year 2, we will effectively begin our marketing campaign with a few

TV commericals and print ads. We will pay expenses for distribution costs and advertising. In it’s third

year, we will pay expenses in hiring sales representatives and protoypes of the M-Power to be displayed

in medical conventions or presentations in medical facilities. In years 4 and 5, we will continue to expand

and increase our advertising and marketing to match the amount of sales to ensure a steady flow of

profit.

Percentage of shares owned by each group.