Company

LOGO

Velocity InternationalVelocity InternationalForest Hills High School

6701 110th St.

Forest Hills, NY 11375

www.vinyc.net

NEW YORK CITY BUSINESS PLAN COMPETITION 2012-2013

STATEMENT OF PURPOSE

To educate current and potential investors on Velocity International’s goals, and our ability to meet them.

COMPANY DESCRIPTION

Established 2005as ‘BIKEWORKS’

C-Corporation Located in Forest Hills, NY

23 Multicultural Employees

VI Provides Extreme Sports Goods and Accessories

MISSION STATEMENT

To promote outdoor active participation and a healthy lifestyle by providing outdoor enthusiasts with eco-friendly and high quality goods at reasonable prices.

Quality Goods

Reasonable Price

Healthy Lifestyle

ECONOMIC CONDITIONS

Prime Interest Rate: 3.25%Current Inflation Rate: 1.8%USD vs. Foreign Currencies

INDUSTRY ANALYSIS*

2007** 2012** % Change

Bicycle 37.4 39.1 +5 %

Skateboards 10.1 6.6 -35%

Inline Skates 10.7 6.1 -43%

Skis 6.4 6.9 +7.8%

Snowboards 5.1 5.1 0%

Surfboards 2.2 2.2 0%* Based on the information from NSGA** Numbers presented in millions sold

INDUSTRY ANALYSIS

Mixed trend in participation in sports

Rebound from 2009

Real World

No Direct Local Competitors

No other companies offer the same assortment as VI

Virtual

World

COMPETITIVE ANALYSIS

• Direct

• Indirect

MARKET SEGMENTATION

PSYCHOGRAPHIC

DEM

OG

RAPH

ICGE

OG

RA

PH

IC

MARKET SEGMENTATION

GeographicGeographic

InternationalNorth AmericaSouth AmericaAsiaEuropeAustralia

InternationalNorth AmericaSouth AmericaAsiaEuropeAustralia

VI

MARKET SEGMENTATION

DemographicDemographic

Ages 15-40 United States Trade Fair

Attendees VE Employees

Ages 15-40 United States Trade Fair

Attendees VE Employees

VI

MARKET SEGMENTATION

PsychographicPsychographic

Environmentally Conscious

(Go Green) Health

Conscious Adventurous Athletic

Environmentally Conscious

(Go Green) Health

Conscious Adventurous Athletic

VI

MARKETING MIX

Bikes SnowboardsSkateboardsInline SkatesSurfboardsAccessories

PRODUCTS

MARKETING MIX

Products range from $3.00 for simple accessories to even $10,000 in luxury sport goods

PRICE

MARKETING MIX

FlyersNewsletter & MagazinesTrade FairWebsiteDirect Mail and E-Mail

PROMOTION

MARKETING MIX

Leader in Extreme Sports GoodsA company that supports its local community

POSITIONING

MARKETING MIX

PLACEMENT

39%

7%34%

20%

Sales

WebCalifornia Trade FairNYC Trade FairNon-VE Sales

0 200 400 600 800 1000 1200 1400 1600 1800 $-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Velocity InternationalBreak Even Analysis

Fiscal Year Ending, April 30, 2013

Revenue

Average (Variable Cost)

Fixed Cost

Total Cost

Units*

Do

llar

s

BREAKEVEN ANALYSIS

* Number of Units based on $360 per unit sold

PLANNING

Obtain Largest Market Share

Obtain Necessary Funding

Promote New WebsiteS

HO

RT T

ER

M

GO

ALS

PLANNING

Continue Increasing Sales of Green

Products

Reduce Accounts Receivables

Continue Expanding Internationally

LO

NG

TER

M G

OA

LS

COMPANY ORGANIZATION

CEOAanchal Somani

CFOMeijing Yang

Accounting, V.P. Anita Levine

Financial Reporting,

V.P. Prachi Jain

COOShivraj Bhoj

Administration, V.P.

Jamie Cheng

Human Resources,

V.P. Samantha Vasquez

CMO Brian Fontes

Sales V.P. Ana AriasGonzalez

Market Research V.P.

Alexis Weisman

CTODaniel

Nowicki

Help Desk V.P.Eli Bobick

Web Design V.P. Jake

Schwabinger

DIRECTING & CONTROLLING

Online Forum

Weekly Company Meetings

E-Mail

Brand New Server

Balance SheetFiscal Year Ending 04/31/2013

Assets Current AssetsCash in the BankAccount Receivable Inventory Total Fixed Assets Other Total Assets

Liabilities and Shareholders’ EquityTotal Current LiabilitiesLong Term Liabilities

Shareholder’s EquityCapital StockRetained Earnings

Total Liabilities and Shareholders’ Equity

ProjectedSep—Dec $544,073$45,000$81,570$39,089$44,200

$753,932

$119,700$582,362

$90,000$-38,130

$753,932

ActualSep—Dec $39,385$50,150

$120,750$29,100$9,014

$248,399

$168,284$0

$90,000$-9,885

$248,399

ProjectedFiscal Year$476,290$15,000$60,000$20,480$8,830

$580,600

$40,000$420,000

$90,000$30,600

$580,600

Income Statement ProjectedDec 31, 2012

ActualDec 31, 2012

ProjectedFiscal Year

Sales Revenues

California Trade Fair $40,000 $42,800 $42,800

NYC Trade Fair $0 $0 $200,000

Website Sales $100,000 $8,034 $200,000

Other Sales $70,000 $44,274 $147,200

Net Sales $210,000 $95,108 $590,000

Cost of Goods Sold $126,000 $57,065 $354,000

Gross Profit $84,000 $38,043 $236,000

Total Operating Expense $122,130 $47,928 $220,000

Income from Operations $-38,130 $-9,885 $16,000

Corporate Income Tax $0 $0 $2,400

Net Income After Taxes $-38,130 $-9,885 $13,600

Cash Flow Statement

ProjectedDec 31, 2012

ActualDec 31, 2012

ProjectedFiscal Year

Cash Beginning Balance $ 76,658 $ 76,612 $ 76,658

Receipts of Cash:

Sales $195,000 $17,687 $ 516,500

Loan Proceeds $500,000 $0 $ 500,000

Payments of Cash:

Cost of Goods Sold $126,000 $0 $354,000

Salaries $84,515 $47,927 $150,000

Loan Repayment $9,380 $0 $37,513

Other Cash Payments $37,690 $6,987 $67,861

Ending Cash Balance $544,073 $39,385 $478,711

SWOT ANALYSIS

StrengthsStrengths

OpportunitiesOpportunities ThreatsThreats

S W

O T

WeaknessesWeaknesses

SWOT ANALYSIS

Strengths

Highly Qualified Employees

Brand New ServerExcellent Communication Website with Shopping Cart

S W

O T

SWOT ANALYSIS

S W

O T

Weaknesses

Yearly Staff Turnover

High Payroll Expense

SWOT ANALYSIS

S W

O T

Opportunities

NYC Trade FairsCalifornia Trade Fairs

Fully Functional WebsiteNo Direct Competition Locally

National and NYC Implementation of Bike Lanes

The desire for Green Products

SWOT ANALYSIS

Current Economic Slowdown

Competitors in VE NetworkAccounts ReceivablesHurricane Sandy

S W

O T

Threats

BUSINESS RISKS

Turbulent United States Economy

Accounts Receivables

Achieving Projected Sales

SUMMARY

Short Term

Obtain New Loan

Increase Online

Sales

Obtain Largest Market Share

Long TermReduce

Accounts Receivables

Increase International Presence

Thank YouThank You