Hide-a-Green Save you space. Save your score.

Authored by: Jesse Himsworth & Mickey Ogg

Contact: Jesse Hirnsworth

1742 Missoula Avenue Missoula, Montana 59802 HideaGreen@gmail.com

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Table of Contents

1.0 Executive Summary . . 1 1.1 Product Overview . 1 1.2 Business Opportunity... .. .. 1 1.3 Industry Overview .. 2 1.4 Target Market .. 3 1.S Management . 3 1.6 Financials . 3

2.0 Product Description . 4 2.1 Fold Out Design & Custom Finish . 4 2.2 Superior Putting Surface . 5 2.3 Adjustable Contour Putting Surface .. 6 2.4 Aesthetically Pleasing Functional Enclosure .. 6

3.0 Industry Overview . 7 3.1 Industry Analysis .. 7

4.0 Marketi ng Strategy . 8 4.1 Market Penetration Strategy . 8 4.2 Target Market . 9 4.2 Integrated Marketing Communications Plan .. 10

5.0 Competitors .. 12 6.0 Customer Service . 13

6.1 Organizational .. 14 6.2 Sustainability .. 14

7.0 Core Competitors .. 14 8.0 Management Team .. 15

8.1 Advisory Board .. 15 9.0 Financials .. 1S 10.0 Proposed Exit Strategy .. 17 11.0 Proposed Offerings . 17 12.0 Assumptions .. 18 13.0 Income Statement . 19 14.0 Break Even Analysis . .. .. 20 15.0 Balance Sheet .. 21 16.0 Cash Flow Statement . 22 17.0 Appendix . 23

17.1 Resumes . 23 17.2 Business Definition . 2S 17.3 Value Chain Analysis .. 26 17.4 Strategy . 27 17.5 Industry Forces . 28 17.6 Competitive Advantage .. 29

1.0 Executive Summary

1.1 Product Overview

With the increasing popularity of the game of golf, the golf equipment and accessories market has grown to a $5.5 Billion a year industry'. The reason for this is simple, as the number of golfers rises, the number of individuals wanting to elevate their level of play rises as well. Any golfer can relate to the experience of practicing their putting stroke on the living room carpet. With changing seasons, and the average individual's schedule becoming more chaotic each day, Hide-a-Green provides golfers with a solution to their practicing woes. Hide-a-Green specializes in the design, manufacture and sales of high quality, fold out, synthetic putting greens. With looks and function similar to that of a Murphy Bed™, the Hide-a-Green is the only high­end, concealable putting green in the industry. Additionally, Hide-a-Green will utilize proprietary camshaft technology to manipulate the putting surface, providing adjustable contours throughout the green. With the ability to change the break of each putt, Hide-a­Green provides users with a changing putting experience each time the user stands on the green.

While the large majority of competitors' products range from 12' to 20' in length, and permanently remain in place, Hide-a-Green recognizes that many individuals cannot dedicate this much space in their home.' To address this concern, Hide-a-Green houses the putting green in a handcrafted cabinet, resulting in a product that is unobtrusive and aesthetically pleasing. To match the consumer's design preferences, Hide-a-Green builds each cabinet with the wood and stain of the customer's choice.

The quality of the Hide-a-Green product is superior to that of its competition. Through quality craftsmanship and materials, Hide-a-Green is able to provide users with a lifelike putting surface to practice on any time of the day, any day of the year. Each putting green is expertly designed to produce consistent rolls and breaks, ultimately creating a more realistic putting experience.

1.2 Business Opportunity

Importance of Putting

Putting is one of the most important aspects of golf. Decreasing the number of putts per round can drastically reduce the golfer's total score and handicap'. Changing seasons, inclement weather and limited hours in a day all interfere with a golfer's ability to get to the course and practice. Hide-a-Green allows users to easily practice what is arguably the most important aspect of their golf game, putting.

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3 "Handicap" refers to a numerical representation of a golfer's playing ability. The lower a goiter's handicap, the better the golfer IS. A 2 handicap is better than a 10 handicap.

Two highly regarded golf instructors have had the following to say about the effect putting has on a golfer's score:

"Not only is putting the most frequent shot in gOlf, It is the most important shot as well, because there is no recovery from bad putting." Dave Pelz

"Golf should be learned startIng at the cup and progressing back toward the tee." Harvey Pennick

As the following table illustrates, the average 26 handicap golfer misses half of all 3-foot putts attempted, while a professional makes virtually all of them. Over the course of a round, a good golfer has less than 30 putts per round. Ifyou figure 10 of those putts are roughly 10 feet in length. the average golfer loses 4 to 5 strokes a round compared to a good player on those putts alone. This illustrates the importance that improvements to one's putting game can have on decreasing overall scores.

Exhibit I: Putt Length Pro Hcp 0-4 Hcp II Hcp 26 3 feet 1.07 1.22 1.35 1.5 6 feet 1.32 1.46 1.62 1.86 10 feet 1.54 1.63 1.83 2.1 IS feet 1.75 1.76 1.98 2.29

Source: http:!fwww.probablegolfinstruction.com/PGI%20Newsletter/news06-01-04.htm

1.3 Industry Overview

Hide-a-Green will compete in the golf equipment and accessory industry. Although this is a saturated industry with a fragmented competitive base, Hide-a-Green will realize significant returns from the underdeveloped, unexploited synthetic putting green sub-industry.

Due to the limited number of competitors, and the limited quality of the competitors' products, Hide-a-Green will gain a sizeable market share in the synthetic putting green industry in a short period of time. The golf accessory and equipment industry is durable. It has experienced 3 percent growth in each of the past five years'. Hide-a-Green will realize more prosperous growth in its sub-industry, synthetic putting greens, due to minimal industry rivalry. (Appendix 4)

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1.4 Target Market

Hide-a-Green's target market is affluent male golfers between the ages of 35 and 54. With a price tag of $5,000, the Hide-a-Green customer has a significant disposable income and a large interest in improving their golf game. The target customer has a handicap of 22 or lower and plays golf an average of 50 days a year. These individuals most likely live in areas where weather conditions and changing seasons limit the number of months that they can play and practice golf.

Equally important is Hide-a-Green's secondary consumer, the golfer's spouse. 5ince the Hide­a-Green product is essentially another piece of furniture, the spouse will have a significant influence on the purchase decision. Hide-a-Green has designed its product to counter any spousal objections that may arise. The fold out, concealable design minimizes the amount of space needed for the product and hides the putting surface when not in use. Consumers also have the ability to choose the wood and stain of their preference, as it is important for the Hide-a-Green unit to match the room's existing decor. Finally, the Hide-a-Green unit has ample storage room for putters and balls to eliminate the unnecessary clutter present with competitor's products.

1.5 Management

With over twenty-five years of golf experience between the two founders, Hide-a-Green's management team has an intense passion for the game of golf and a great understanding of what golfers want. Mickey Ogg, Hide-a-Green's Chief Executive Officer, and Jesse Himsworth, the organization's Director of Sales and Marketing, are pursuing their M.B.A.'s from the University of Montana.

The executive team's golf experience ranges from retail sales of golf equipment and accessories to the advertising and public relations activities for Nike Golf and Pinnacle Golf. They eat, sleep and breathe golf. They formulated the product idea while speaking to Montana golfers who struggle with changing weather conditions, limiting the time available to play and practice golf. They realized the need for a product that would allow golfers to practice putting year round and had this need confirmed by golfers from around the state.

1.6 Financials

Hide-a-Green intends to obtain a total of $70,000 in loans. Approximately $20,000 of the loan will be for a vehicle. Given the founding members strong credit ratings, this loan will be secured from a bank at a reasonable rate. The additional $50,000 will be acquired from friends, family and other investors. The amount of repayment will be determined with the individual lenders based on their financial situation and established relationships with the founding members.

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2.0 Product Description

2.1 Fold Out Design and Custom Finish

The primary feature that will distinguish Hide-a-Green from its competitors is that the putting surface will have the ability to be concealed. Existing comparable products take up an incredible amount of space in a room, an obstacle to any golfer trying to have an indoor putting green. See exhibit I.

Exhibit I

Hide-a-Green Schematic

Approximate Dimensions 4S" Wide IS" Deep 74" Tall

Much like a Murphy Bed™, the Hide-a-Green will fold down out of a cabinet. Using a piston lift mechanism, the green will slowly lower and unfold settling on the floor. A locking mechanism prevents the green from being lowered incorrectly and locks it inside the cabinet when not in use. The piston lift mechanism is counterbalanced, designed for daily use. The pistons are not subject to metal fatigue or catastrophic failure. See exhibit 2. Exhibit 2

The front of the unit is ornamental. It folds straight down to the floor.

There is room remaining behind the putting surface when it folds up where balls and putters could be stored.

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The cabinet will be approximately 4 feet wide by 6 feet tall, The putting green will fold down out of the cabinet and will extend to give the user a putting surface that is 4 feet wide and 12 feet long. There will be a hole placed at the end of the green in the middle of the unit. See Exhibit 3.

Exhibit 3

Approximate Dimensions of putting green:

48" wide 144" long

The break is manipulated by a cam system mounted just beyond the center.

An 18" in diameter circle provides instant feedback on quality of putts.

The putting green would have a surface area of approximately 48 square feet. A permanent 48 square foot putting green would be impractical in a typical home. However, the Hide-a-Green would fold away giving the customer the additional space back when they are finished putting.

2.2 Superior Putting Surface

The high-end features offered by the putting surface itself provide a second source of competitive advantage, The putting surface will be the highest quality in the industry. Hide-a­Green will employ top of the line synthetic turf in all of its putting greens. The Hide-a-Green system provides a true roll that the typical indoor putting green does not. The green will have a realistic feel. rolling at a 9-11 on a stimp meters. This will be comparable with what the typical customer would encounter on the greens at his or her course.

Hide-a-Green will apply a sub-layer of padding under the turf, over the wooden frame. This second layer will enhance the realistic feel of the putting green. The green will have a turf-like feel rather than a carpet on wood feel,

:1 A Slimp meter is an instrument used Itl measure the speed of a green by applying a known fOTC[ \\J Ille billl and measuring the distance traveled. Superintendents measure green speed with a Slimp meter. Its readings give a snapshot of the green speed altha! time of day. Stimp meter readings inthe five to six. range mean slow greens, seven 10 eight mean medium, nine to len fast, and above eleven extremely fast.

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Hide-a-Green has developed a system that will minimize the effects of the seams in the putting surface and will never allow the surface to become creased. These two components are central to providing the superior putting experience.

2.3 Adjustable Contour Putting Surface

The camshaft pictured below demonstrates how the putting surface will be manipulated by a rotating camshaft. The camshaft running perpendicular to the green will be mounted under the surface. The shaft will have five cams allowing the raising or lowering of the left right or middle. The user can turn the camshaft to impart a left or right break, or raise the center of the green, allowing various breaks. The cams on the shaft are not symmetrical, as it rotates, the lifters move up and down accordingly, raising and lowering the putting surface.

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2.4 Aesthetically Pleasing Functional Enclosure

The final source of competitive advantage for the Hide-a-Green system comes from the cabinet enclosure itself. The putting green surface will fold up and away into an attractive enclosure. Each enclosure will be customizable with consumer stain and wood preferences to fit the decor of the customer's home.

The cabinet will provide ample storage for all of the golf accoutrements. Since the sections of the green will be relatively narrow, there will be additional space at the back of the cabinet lined with shelves. Along the bottom will be a rack for putters. The innovative storage system will eliminate the clutter that would otherwise be associated with having an indoor putting green.

The enclosure has the benefit of providing the Hide-a-Green with additional protection. The competitors' products, mainly DreamGreen, remain out, taking up a great deal of space in the room. The exposed green is subject to potential damage from kids, pets etc. Our product alleviates this problem by retracting into a cabinet, keeping it free of dust, debris, or damage.

The putting experience provided by the Hide-a-Green system will be unrivaled in the indoor putting green industry. Making both the putting surface and the enclosure from high-quality materials will ensure customer satisfaction. (Appendix I)

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3.0 Industry Overview

Golf equipment and accessories is a $5.5 billion per year industry'. Thanks to a comprehensive marketing communications strategy, Hide-a-Green foresees few problems capturing a substantial market share in the more targeted synthetic putting green sub-industry. The business opportunity becomes much more evident when performing a detailed analysis of the industry (Appendix 4).

Due to the limited number of competitors, and the limited quality of the competitors' products, Hide-a-Green will be able to gain a substantial market share in the synthetic putting green industry in a relatively short period of time. Furthermore, the golf accessory and equipment industry is durable. It has experienced 3 percent growth' in the past five years. Hide-a-Green will realize much more prosperous growth in its sub-industry, synthetic putting greens, as minimal competition has not allowed for the industry to be fully exploited.

Additionally, Hide-a-Green will benefit from the fact that its target market is very reachable. With Internet technology coupled with a comprehensive integrated marketing communications plan, Hide-a-Green will have access to customers in all fifty states.

The synthetic putting green industry is in a fragmented emerging state. There are 26.2 million golfers in the United States. A golfer is defined as anyone age 18 and above who has played at least one regulation round of golf in the past 12 months'. As noted above, individuals spend $5.5 billion on golf equipment and accessories each year. Hide-a-Green is confident that it will be able to utilize its proprietary technology and potential patents to take a dominant position as the leading indoor synthetic putting green manufacturer.

Hide-a-Green will leverage its superior value added features and its direct selling model to realize a 57 percent gross margin. The value added from the non-obstructive, proprietary fold out technology and its adjustable contour putting surface will result in increased customer satisfaction. Hide-a-Green's direct sales model will result in higher profit margins as the organization will not have to worry about intermediary price markup.

3.1 Industry Analysis

As Appendix 4 shows, the synthetic putting green industry has a relatively high threat of new entrants as there are minimal proprietary product differences and limited capital requirements needed to compete in the industry. However, Hide-a-Green will mitigate these threats by using its proprietary fold out technology and cam system to instill formidable barriers to entry. Preliminary patent protection for its fold out technology and cam system will create additional barriers to entry needed to mitigate the threat of new entrants to this attractive industry.

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With a fragmented list of vendors, Hide-a-Green will realize little pressure from suppliers as the options for substitute suppliers and materials are plentiful. There are many on-line suppliers of synthetic turf, all with competitive prices ranging from $6 - $10 per square foot. There are also many local suppliers of wood and hardware, which will be necessary to construct the putting green. Ultimately, this will result in increased negotiating power for Hide-a-Green, leading to decreased materials costs and increased margins for the organization.

Hide-a-Green will also benefit from the fact that there is very little rivalry amongst industry competitors. The large majority of the competition is limited in size and lacks the resources needed to spark fierce competition between industry players. With each company owning virtually no advantages by means of brand identity, product differences and SWitching costs, Hide-a-Green sees a great opportunity to enter the industry with a comprehensive marketing strategy and quality product that aims to capture market share.

There are many other opportunities emerging from external factors. With 78 Million baby boomers reaching retirement ages, the golf industry is beginning to See an influx in the number of baby boomers with increased free time available for recreational activity'. This will result in an increase in the amount of money spent on golf equipment and accessories as well.

Many golfers would love to have additional time to practice their putting. The time constraints placed upon them makes it difficult to get to the course to practice. The Hide-a-Green addresses this need by allowing busy individuals an easy way to practice their putting any time of day, any day of the year.

4.0 Marketing Strategy

The Hide-a-Green organization will USe a focused differentiation strategy as it seeks to target a single group of customers with a unique product (Appendix 3). The organization understands that building brand awareness and recognition amongst its target audience will be a key challenge. To address this challenge, Hide-a-Green has developed an integrated marketing communications plan that seeks to effectively reach its target audience. This plan will grow the organization's brand awareness and brand identity.

4.1 Market Penetration Strategy

In the organization's initial stages, Hide-a-Green will utilize a direct selling model to effectively and efficiently reach its target customer and move its product down the supply chain. Hide-a­Green will have a limited advertising budget making it essential that the organization reaches and sells its products as efficiently as possible. The direct selling model will allow Hide-a-Green to avoid intermediary markup. Additionally, the organization will deal directly with the customer allowing it to gain key market insight pertaining to detailed customer wants and

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needs. This intimate customer knowledge will assist in developing future products and in modifying the technology to better suit the customer.

While Hide-a-Green will sell the majority of its products directly to its consumer through Internet, phone, and personal selling methods, it will look to eventually enter the business-to­business market. The organization will do this by partnering with catalog retailers and regional retail outlets to further expand its reach.

4.2 Target market

Hide-a-Green's target market is affluent male golfers between the ages of 35 and 54. With a price of $5,000, the Hide-a-Green customer has a significant disposable income and a large interest in improving their golf game. The target customer carries a handicap of 22 or lower and plays golf an average of 50 days a year. These individuals most likely live in areas where weather conditions and changing seasons limit the number of months that they can play and practice golf. Additionally, the typical Hide-a-Green customer will:

• Have a household income of $1 10,000 • Own their place of residence • Hold a professional/managerial position • Be college graduates • Play golf an average of 50 days/year • Be members of a private golf club • Have played golf for at least 10 years • Take 4 golf trips/year

Another important market to address is Hide-a-Green's secondary market, the golfers' spouses. The Hide-a-Green product is designed to counter any spousal objection that may arise (See Exhibit 4). Traditional putting greens take up a great deal of space and create a feeling of clutter in any room regardless of size. The grass colored putting surface used in most putting greens rarely compliments a home's decor. Finally, the typical putting green will cause loose putters and golf balls to be strewn throughout the house.

Exhibit 4:

Hide-a-Green's SolutionProblems -----J

I Other indoor putting greens take up too Fold-out, concealable design much space

I 11Unit has a storage area that houses golf

balls, putters and other accessories 'f Loose putters and balls strewn throughout

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I _wood preferences

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4.2 Integrated Marketing Communications Plan

Hide-a-Green will enlist a comprehensive integrated marketing communications plan to establish and build brand awareness and brand recognition amongst its target audience. The plan will include a mix of interactive communications, print advertising, public relations. P.G.A. event presence, trade shows. celebrity endorsements. giveaways and catalog sales.

Interactive communications

Essential to Hide-a-Green's success will be a comprehensive website detailing the features and benefits of the Hide-a-Green product. The organization will be able to build a fully interactive website through NinjaStar Productions for $10,000. The site will offer video demonstrations depicting the functionality of the product. The site will also have an extensive photo gallery. Consumers will be able to purchase the product or request sales information through the site as well. The website will help build and establish the organization's brand identity.

The website will be an integral tool to Hide-a-Green's success and it is important that the website is given the appropriate support needed through advertising and other marketing activities to drive traffic to the site. This support will be given through print advertising, trade show promotions, P.G.A. event presence. public relations, direct mail and catalog promotions.

Print advertising

Print advertising will be a great way for Hide-a-Green to build brand awareness and brand recognition amongst its target audience. Due to the extremely high costs associated with advertising in national publications such as GolfDigest or GolfWorld, Hide-a-Green has decided to advertise in regional golf publications for a significantly lower cost.

Hide-a-Green will take out half page, full color ads in Golf Styles Atlanta, Golf Styles, Carolina, Golf Styles New England. Golf Styles New Jersey. Golf Styles Philadelphia, Golf Styles Ohio and Golf Styles Washington. Golf Styles is a regional publication with a target audience that matches that of Hide-a-Green. The cost to advertise in the aforementioned seven publications will be $4,0 I0 per month. This is considerably lower than the $52.000 cost for a half page, full color add in one issue of Golf Digest.

In the future. when Hide-a-Green has more capital. the organization will look to advertise in the leading national golf publications as the circulation and reader responsiveness for these publications is traditionally much better than the regional publications. It is important to remember that in order for print advertising to be successful for Hide-a-Green. the advertisements must be large enough to depict the functionality of the product. The organization feels as though half. or full page ads are the only sizes large enough to do the Hide­a-Green product justice.

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P.G.A. event presence

Hide-a-Green will visit P.G.A. (Professional Golf Association) events to demonstrate the benefits of the product to participant's spectators. The average demographics and psychographics of a P.GA spectator fit directly with those of the Hide-a-Green target market. Event presence will be a way for consumers to see the functionality of the product. It will also allow the consumers to demo the product. Ultimately, this will be a great way to build awareness and generate buzz amongst Hide-a-Green's target market.

Hide-a-Green plans to attend the Bank of America Championship held in Concord, Massachusetts from June 18 - 23. A tent at the event costs $5,000 and will provide Hide-a­Green with the opportunity to expose its product to 70,000 golf fans. This is a great opportunity for Hide-a-Green to build brand awareness and brand recognition amongst golf fans with signlficant discretionary incomes.

T. V. Infomercial

Television infomercials are a great way to for Hide-a-Green to detail the functionality of its product to a targeted audience. However, infomercials are very expensive. Hide-a-Green will forego any infomercial production until the organization has a more substantial advertising budget. The average cost for infomercial production ranges from $150,000 - $300,000. The cost to run the infomercial is not included in this figure.

Trade Shows

Hide-a-Green will attend national trade shows to increase brand awareness and create a buzz among industry professionals. Many Pro Shop Managers attend trade shows and return to their courses discussing the details of new products with their members. Hide-a-Green will have a working model at the events allowing Pro Shop representatives, Golf Course Owners, Retail Golf Representative and Corporate Buyers to demo the product.

Many of the industry's top writers attend these events and write articles based on their experiences. This will allow Hide-a-Green to build relationships with many editors and writers for golf publications. Trade show presence will integrate well with Hide-a-Green's extensive public relations efforts.

Two of the top trade shows that Hide-a-Green will consider attending are:

• The National Golf Expo. Boston, Massachusetts. Early May. $1,875 • National Golf Industry Show. Anaheim, California. Late February $1,875

Public Relations

To establish itself as the leading synthetic putting green manufacturer, Hide-a-Green will obtain unbiased third-party reviews of its product in leading golf publications. Publications sought

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include GolfDigest, Golf World, Golf and Golf Week. There will be no better way to build a strong brand identity than to use a credible, non-biased third party sources to review the product.

Catalog Sales

Hide-a-Green will also seek to have its products sold in multiple golf catalogs and upscale catalogs such as Edwin Watts, GolfSmith and Harrington's. These catalogs effectively reach Hide-a-Green's target audience and have extremely large circulations. While it is difficult to get a product listed in such catalogs, Hide-a-Green is not relying on these sales to support daily operations. While Hide-a-Green would receive great exposure if it earned a spot in a catalog, the organization is sustainable without catalog sales and will use a fully integrated marketing communications plan to promote the product and reach sales projections.

Promotional Giveaways

In an effort to build awareness, Hide-a-Green will offer free demonstration model putting greens to upscale golf courses for them to display in their pro shops. Hide-a-Green will grant putting greens to the upscale establishments such as Yellowstone Club, Iron Horse and Stock Farm. This will be a great way for Hide-a-Green to get its product in the hands of consumers matching the demographic profile of the Hide-a-Green's target audience.

Pro shop visitors will be able to demo the putting green and discuss the product features and benefits with the P.G.A. Professionals at these well respected golf establishments.

Professional GOlfer/Celebrity Endorsements

Hide-a-Green will also seek to have its product endorsed by a P.G.A. Tour player. This will be a good way for Hide-a-Green to build credibility amongst its target audience. With credibility being the goal, the organization will seek endorsement from one of the P.G.A. Tour's top putters. Padraig Harrington Charlie WI and Brian Gay are the Tour's three best putters and should be relatively inexpensive to partner with for this endorsement.

5.0 Competitors

The primary competitor, DreamGreen TM, has a product with an adjustable contour surface. However, as seen in Exhibit 5, the putting green is large and would take up a great deal of space in any room. Hide-a-Green solves this problem by providing a comparable putting experience with the added advantage of the putting green folding away.

The DreamGreen ™ product ranges from 12 - 20 feet in length and has a price tag of approximately $4,000 - $7,000. Stemming from the fact that the DreamGreen™ does not have the ability to fold away, it is susceptible to damage. It is virtually impossible for owners to guard against children and pets walking on the putting surface, making maintenance and damage control a key concern for any owner.

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Exhibit 5: OreamGreen

A second group of competitors are the large number of companies who manufacture inexpensive, low quality putting greens. Although they do not provide a similar putting experience, there is a chance that a consumer would choose to purchase the inexpensive model regardless of the limited quality and benefits (Appendix 3).

Exhibit 6: Inexpensive Alternatives

6.0 Customer Sel"Vice

Hide-a-Green will have an additional source of competitive advantage in its customer service. The organization will constantly work to provide the consumer with a delightful in-home golf experience.

Once the customer has made the purchase. they will receive a lifetime of superior customer service. The putting greens will require very little maintenance. However, if there are problems. Hide-a-Green will respond in a timely manner to solve any potential problem the customer may encounter. Hide-a-Green will offer a one year warranty on all of its units.

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6.1 Organizational

The organization itself will provide Hide-a-Green with a sustainable competitive advantage. The company will have a flat organizational structure that will result in a high degree of accountability

As was mentioned above, each green and enclosure will be made to order. This will allow Hide-a-Green to have a just in time inventory system which will keep overhead costs low. Although the final product is targeted at a high-end market. the materials used to produce the product are relatively inexpensive and easy to acquire. This will take power away from suppliers.

The company will immediately use its efforts in research and development to gain a competitive advantage. Hide-a-Green will attempt to patent many of the key components of the putting green system including the fold away mechanism and the ability to manipulate the putting service.

6.2 Sustainability

The competitive advantage will be sustainable because the resource will be hard to copy due to the high quality materials used and the proprietary technology found in the folding green and adjustable contour putting surface. The Hide-a-Green is also extremely durable. Once a customer makes the initial investment they will have years of enjoyment from the product. By having the putting surface fold away, it will be protected from pests, dogs and dust. It would be difficult to substitute a different product for the Hide-a-Green because no green on the market has the same package of benefits.

7.0 Core Competencies

Hide-a-Green's core competencies will center on producing high quality greens for a niche market. By focusing on research and development, Hide-a-Green will produce a superior product. The marketing plan will provide greater exposure than competitors currently possess.

The Hide-a-Green founders have substantial experience in the golf industry that they will leverage to provide them with a superior understanding of customer and industry needs. As aforementioned, one of Hide-a-Green's biggest challenges will be building awareness in the saturated golf equipment and accessories industry. The management team will be able to use its marketing, advertising and public relations experience with Nike Golf and Pinnacle Golf to relate to the customer and build their trust. Understanding the consumer will be a key result of Hide-a-Green's efforts.

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8.0 Management Team

Mickey Ogg will be the organization's Chief Executive Officer. Mr. Ogg earned a Bachelor of Arts in History from the University of Washington. He has six years experience working as a paralegal. He currently works as a property manager. Mr. Ogg has extensive experience in customer service from his current jobs as well as those he has held in the past. He is an avid golfer and has previous work experience in the sporting goods retail industry. Mr. Ogg is currently pursuing his MBA at the University of Montana.

jesse Himsworth will be Hide-a-Green's Director of Marketing and Sales. Mr. Himsworth worked as an Assistant to the Professional at a private golf course in Bozeman, Montana. After earning a Bachelor's Degree in Marketing Communications from johnson & Wales University in Providence, Rhode Island, Mr. Himsworth worked as an Account Executive at a New England advertising agency. Through this experience, he worked directly on the day-to-day advertising and public relations activities for Nike Golf and Pinnacle Golf. Mr. Himsworth is currently pursuing his MBA at the University of Montana.

8.1 Advisory Board

Hide-a-Green will seek additional financial and marketing advice from its experienced advisory board. Scott Kremmel is the Head P.G.A. Professional at Valley View Golf Club in Bozeman, Montana. Mr. Kremmel's expertise is in the area of golf and the teaching of golf. He has over 15 years of professional experience. His direct contact with Hide-a-Green's target consumer will prove helpful in assessing consumer wants and needs.

jon Duffy will provide strong guidance for Hide-a-Green's advertising and marketing activities. Mr. Duffy is the President of Duffy & Shanley, lnc., a full service advertising agency in Providence, Rhode Island. He has managed multiple marketing campaigns for Nike Golf, Pinnacle Golf, and Titleist.

9.0 Financials

Hide-a-Green's financial plan is based on a production capacity of 280 units per year in years one through five. The figure is based on potential labor hours and anticipated market demand. Hide-a-Green made modest calculations regarding initial sales in year one, factored in seasonality, and ramped up growth following trade shows every year.

Hide-a-green calculates its breakeven volume at just over 61 units sold in year one, 71 additional units in year two, 87 units in year three, 124 units in year four, and just over 133 in year five. This is relative to projected sales of 70, 112, 159, 154, and 210 units each year.

Break Even Anal sis Breakeven Volume (units) 61.55 71.23 87.17

Units Sold 70.00 112.00 154.00 266.00

133.17

15

~ Hide-a-Green

Based on these calculations Hide-a-Green should break even in year one, earning an operating profit of $15,366, $117,418, $182,728, 243,448, and 640,937 in year five. 5ee consolidated income on the next page.

Hlde-a-Green Income Statement Year I Year 2 Year 1 Year 4 YearS

Sales $325.000 $560,000 $760,000 $1,060.000 $1,340,000

Cost of Goods Sold $145.340 $250.432 $339.872 $474.032 $599,248

Gross Margin $179,660 $309.568 $420,128 $585,968 $740,752

Operating Expenses $164.294 $30,508 $43,108 $85.628 $87.878

- Depreciation $5,030 $5,030 $5.030 $5,030 $5,030

Total Operating Expenses $164.294 $192.150 $237,400 $342,520 $367.270

Operating Profit $15,366 $117,418 $182.728 $243.448 $640.937

Non Operating Income/Expenses

- Interest Expense $5,829 $4,740 $3.549 $2.247 $822

Profit Before Taxes $9.537 $112,678 $179,179 $241,201 $372.660

Inc.ome Taxes $2,861 $34.188 $53,754 $79,634 $116,550

Net Income $6.676 $78,490 $125,425 $161,567 $256.110

Breakeven Analysis

Selling Price $5,000 $5.000 $5,000 $5.000 $5,000

Variable Cost $2.236 $2.236 $2,236 $2.236 $2.236

Contribution $2,764 $2,764 $2.764 $2.764 $2,764

Hide-a-Green plans to initially promote its product locally through strategically donated putting greens. Attempting to place them in the bar or clubhouse of three high end golf courses in Montana. In addition, Hide-a-Green intends to bring its unit to trade shows in an attempt to raise product awareness and look for additional channels of distribution.

Hide-a-Green expects to have sales of $325,000 in year one, $560,000 in year two, $760,000 in year 3, $1,060,000 in year four, and 1,340,000 in year five. That is approximately 4-7 units per month in year one, in year two that number grows to 7-11 units per month, 9-15 units per month in year three, 13-21 units per month in year four, and 16-27 per month in year five. Hide-a-Green hopes to leverage direct sales as well as a business-to-business model to support the growth figures. The income statement illustrates the approximate sales per month of Hide­a-green units. The sales calculations are based on total capacity, then seasonality and growth stages were considered. Hide-a-Green anticipates selling a majority of its greens in the months following the golf season, September, October, November and December. It anticipates a sales slowdown in spring followed by an additional sales boost following trade show attendance.

16

Hide-a-Green

Please refer to the Assumptions on page 25, with attached sales projections for additional information.

The cash flow statement and balance sheet reveal that following an original loan of $70,000, Hide-a-Green will maintain a positive cash balance without additional cash inputs. Hide-a­Green anticipates a four month delay before it shows its first positive cash flows. In the subsequent months, the cash flows grow along with revenues and net profit. See consolidated cash flow statement below.

I Consolidated Cash Flow --~

Year I Year 2 Year] Year 4 YearS Ic)p;"ing Cash $0 $48,810 $151,124 $287.093 $464,381

~Sh Flow from Operations $14,567 $116,120 $148,745 $192.478 $298,056

r<... "ow"" ,~••,". A.'."•• lCash Flow from Financing Activities

f---.

-$25.150 $0 $0 $0 $0 .­

$59,393 -$13,806 -$12,777 -$15.189 -$16.610

$177~ $281:446Let Cash Flow $48,810 $102,314 $135,969

I Closing Cash $48,810 $151.124 $287,093 I $464,381 $745.827

10.0 Proposed Exit Strategy

At the beginning of the business, Hide-a-Green would be a lifestyle business. However when the company gains momentum, it could offer much bigger returns. Hide-a-Green will develop a strategy to disperse a portion of the funds to the shareholders and an additional portion to the investors. The reinvestment of the money back into the company will center on the market penetration strategy.

At the end of five years, Hide-a-Green will evaluate sale of the company.

I 1.0 Proposed Offering

Hide-a-Green intends to obtain a total of $70,000 in loans. Approximately $20,000 of the loan will be for a vehicle. Given the founding members strong credit ratings, this loan will be secured from a bank at a reasonable rate. The additional $50,000 will be acquired from friends, family and other investors. The amount of repayment will be determined with the individual lenders based on their financial situation and established relationships with the founding members.

17

~ Hide-a-Green

Hide-a-Green will rent an assembly space with a small office in the corner. which will be necessary to generate revenue with the initial investment. As the business begins to develop. the organization plans to utilize small business loans to facilitate further expansion.

The funds acquired will allow Hide-a-Green to put money into research and development. which will be critical in the early stages of the company. Developing a working prototype will be essential to many of the early marketing efforts. Hide-a-Green will secure patents for the central components of the folding green with the money raised.

Hide-a-Green will travel with the prototype to PGA tour events. and trade shows in an attempt to expose the market to the product. The money raised would also go toward the marketing campaign. which will utilize public relations efforts for local as well as national media. Hide-a­Green will also utilize the marketing option offered by public relations and interactive communications.

Both Mr. Ogg and Mr. Himsworth have little capital to invest in the company. and understand that it may be necessary to give up a significant portion of the ownership. However. they would like to keep this portion as small as possible. with each retaining 40% equity in the company. The final 20% will be reserved to raise capital for growth.

18

.".........................~~ ................ Pricing Strategy Low End tiigh End Wholes.ale Features Hide a Grlten NfA $5,000.00 LmksPutt S581 Fi8 S73900 Lun~ pUltllly surface. manipulated by cups under end, 9 10 15' long. stano on side putter's Edge S36000 Sl.79500 Mat on Floor 4.1:12 to 20xl:2 Duffy Golf(Dream Green) 52,195.00 $7,99500 2)(5, 4x20. ejuetabte contours with roue-s Tour Links 5299.00 51,78900 Two models, Iralnlng aid and Modular Green 10 extn to 12x12 Big Moss $15999 51,300.00 Roll away design, ability 10manipulale break with break snakes, ... long pul version steve I anorte .$17500 $86900 Roll out mat With tencv oescns and aouetatae breaks

COGS Width Length Surface Area Wood Lift Mechanism Cam System (Break rnarnpulauon)

$1,000 00 Home Depot ... Online Lumber dealers $300.00 Create-a-Bed Hardware $400 00 Apprcxnrenon

Inches Feet

4B

•Turf Cost Per SQuare Foot

14' 12

4ROO 4B

$7.00 Turf Cost 5336 00 See Side Calculallons Labor $200.00 Insurance Costs General Liability 5600.00 Total $2,236,00 property 560000

rotet Insurance expense 51.200.00 per year Labor Costs Hours per Unit Per Hour $20.00 Stock 5 $10000 per monlh

Custom 20 "Esumatec Ours 10

total Labor oer Ur1l1!'1i'l 520!hour $200.00 Equipment ''"from James Lee. Artisan Woodwork Breckenridge

Sales Growth Based on Milk Capacity of Year Per Year

1 25%, 40% J 55%

• 75% s 95%

280 Units per Year Per Month (approx)

70 112 154 210 266

6 9

ia 18 22

TableTable S, AorCompressor

Saw Mitre Saw OUler MIse 100ls Computer Total

'47' 5:>0000 $470.00 $380.00

53,00000 51,000.00 $5.15000

"'See Sales Tab for actual monthl sales

Salaries CEQ (Head of Operations) Director of Marketing and Sale:; Lead oesoner

Mickey Ogg Jesse rurnswortn

Hourly Year 1

$20.00

Year 2 $30,000.00 530.000.00

Year 3 S50,00O.OO $50,00000

Year4 S75.000 00 $75.00000

YearS $100,00000 $100,00000

$125,00000 $125,00000

Annual Depredation Rates Additional Assurnptlons Year 1 Y",.r 2

- equipmenl 5 Years

Ycar3

- vehicles 5 Years

Shere Capital $1,000

Interest Rates . long term debt 900%

Income Tax cetcurauon - corporate tax rate 3000%

Monthly Operating Expenses (First Month) Subsequent

_ R"rlt $50000 same - uutnues 5200.00 same - Legal Fees $2,000.00 $100.00 - Insurance - Vehicle Expenses

$10000 same $10000

Page 25

Hide-a-Green Balance Sheet Year 1 Year 2 Year 3 Year 4 YearS

April April April April April

Year 5 Avril

$745,826.96 $745,826.96

$5,150.00 $5,150.00

$0.00 $20,000.00 $20,000.00

$0.00 $0.00

$745,826,96

$116,547.03 $0.00

$116,547.03

$10.86 $1086

$0.00 $1,000.00

$628,269.07 $629,269.07

$745,826,96

Assets

Year 1 Avril

$48,81000 $48,810.00

$5,150.00 $1,03000 $4,120.00

$20,00000 $4,000.00

$16,000.00 $20,120.00 $68,930,00

$2,861.11 $12,695.86 $15,556.97

$45,697.10 $45,697.10

$0.00 $1,000.00 $6,675.93 $7,675.93

$68.930.00

Year 2 Avril

$150,960.89 $150,960.89

$5,150.00 $2,060.00 $3,090.00

$20,000.00 $8,000.00

$12,000.00 $15,090.00

$166,050,89

$34,187.54 $13,886.82 $48,074.36

$31,810.28 $31,810.28

$0.00 $1,000.00

$85,166.25 $86,166.25

$166,050.89

Year 3 Avril

$287,092.81 $287,092.81

$5,150.00 $3,090.00 $2,060.00

$20,000.00 $12,000.00

$8,000.00 $10,060.00

$297,152.81

$53,751.11 $15,189.50 $68,940.61

$16,620.78 $16,620.78

$0.00 $1,000.00

$210,591.42 $211,591.42

$297,152.81

Year 4 Avril

$464,380.93 $464,380.93

$5,150.00 $4,120.00 $1,030.00

$20,00000 $16,000.00

$4,000.00 $5,030.00

$469,410,93

$79,631.40 $16,609.92 $96,241.32

$10.86 $10.86

$0.00 $1,000.00

$372,15875 $373,158.75

$459,410,93

Current Assets -Cash

Total Current Assets

Fixed Assets - ecurement

less Accumulated Depreciation net Equipment

- Vehicles less Accumulated DeDreciation net Vehicles

Total Fixed Assets Total Assels

Liabilities and Eauities Current Liabilities

- Income Taxes - Current Portion Long Term Debt

Total Current Liabilities

Lona·Term Liabilities - Lone-Term loans

Total Long Term Loans Owners' Equity

• Share Capital - Retained EarninQs

Total Owners' Eauitv

Total Liabilities and Equities

Page 21

Hide a Green Income Statement Year 1 Year 2 Year 3 Year4 YearS

Sales Cost of Goods Sold Gross Margin

$ 32500000 $ 145340.00 $ 179,660.00

$ 560,000.00 $ 250,43200 $ 309,56800

$ 760000.00 $ 339,872.00 $ 420,128.00

$ 1 060 000.00 $ 47403200 $ 585968.00

$ 1,340,000.00 $ 599248.00 $ 740,752.00

Oneratinq Exnanses - peprsclanon

Total Oneratlno ExDenses

$ 16429400 $ 5,030.00 $ 164,294.00

$ 30,508.33 $ 5030.00 $ 192150.00

$ 43,108.33 $ 5,03000 $ 23740000

$ 85,628.33 $ 5,030.00 $ 342,520.00

$ 87,87833 $ 5030.00 $ 36727000

ooerattna Profit $ 1536600 $ 11741800 $ 182,728.00 $ 243,44800 $ 640,937.17

Non Oneratino Income/ExDenses . Interest ExDense

Profit Before Taxes Income Taxes Net Income

$ -$ 5,828.96 $ 9,537.04 $ 2,86111 $ 6,675.93

$ -$ 4,740.14 $ 112,677.86 $ 34,187.54 $ 78,49032

$ -$ 3549.18 $ 179,178.82 $ 53,753.65 $ 125,425.17

$ -

$ 2,246.50 $ 241,201.50 $ 79,634.17 $ 161,567.33

$ -$ 821.62 $ 372,660.38 $ 116,55006 $ 256,110.32

Page 19

Breakeven Analysis Year 1 Year 2 Year3 Year4 Year !i

SellinQ Price $5,000.00 $5,000.00 $5,000.00 $5,000.00 5500000 Variable Cost $223600 $2236.00 $2,236.00 $223600 $2,236.00 Contribution $2,764.00 $2,764.00 $2,764.00 $2764.00 52,764.00

Fixed EXDenses $170,122.96 $196890.14 $240,949.18 $344,766.50 $368091.62

Breakeven Volume (units) 62 71 87 125 133 Units SDld 70 112 154 210 266

Page 2 0

Hide-a-Green Balance Sheet Year 1 Year 2 Year 3 Year4 Year 5

June

s 271260.81

Aoril Aoril Aoril

$ 287 092.81

May

$ 262051.81

Assets

$ 48810.00 $ 150960.89 Current Assets

• Cash Total Current Assets $ 48810.00 $ 150960.89 $ 287 092.81 s 262051.81 s 271260.81

$ 5 150.00 $ 1030.00 5; 4 120.00 $ 20000.00

$ 5 150.00 $ 2060.00 $ 3 090.00 s 20000.00 $ 8000.00 s 12000.00 $ 15090.00 $ 166050.89

Year 2

$ 5 150.00 $ 3090.00 $ 2060.00 $ 20000.00 $ 12000.00 $ 8 000.00 $ 10060.00 $ 297,152.81

Year3 ADrii

$ 5 150.00 $ 3 175.83 $ 1 974.17 $ 20000.00 $ 12 333.33 s 7666.67 $ 9640.83 $ 271692.64

Year4 May

$ 5 150.00 $ 3,261.67 s 1 888.33 s 20000.00 $ 12666.67 s 7 333.33 $ 9221.67 $ 280482.48

Year4 June

Fixed Assets - Eauioment

less Accumulated Deoreciation net Eauioment

- Vehicles less Accumulated Depreciation $ 4,000.00

s 16000.00net Vehicles Total Fixed Assets $ 20 120.00 Total Assets $ 68,930.00

Year 1 Liabilities and Eauities AmiI Aorll Current Liabilities

$ 2861.11 $ 12 695.86

$ 34187.54 $ 13 886.82 $ 48074.36

$ 31 810.28 $ 31810.28 $ -

$ 1000.00 $ 85 166.25

$ 53751.11 $ 15 189.50 $ 68940.61

$ 16620.78 $ 16620.78 $ -$ 1 000.00 $ 210591.42

$ 53751.11 s 15 303.42 $ 69054.53

$ 15 292.44 $ 15 292.44 $ -

$ 1 000.00 $ 186345.68

$ 56,755.12 s 15418.20 $ 72 173.32

$ 13 954.13 $ 13954.13 s -$ 1 000.00 $ 193 355.03

- Income Taxes - Current Portion Lana Term Debt

Total Current Liabilities $ 15 556.97

$ 45697.10 Lana-Term Liabilities

- Lona-Term Loans Total Long Term Loans $ 45,697.10 Owners' Eauity $ -

$ 1000.00 $ 6,675.93

- Share Capital - Retained Earnintls

Total Owners' Eauity $ 7675.93 $ 86 166.25 $ 211591.42 $ 187 345.68 $ 194 355.03

$ 68,930.00 $ 166050.89 $ 297,152.81 s 271,692.64 $ 280482.48Total Liabilities and Equities

Page 21

Hide-a-Green Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5 ocen.nc Cash $0 $48810 $151 124 $287093 $464,381

Cash Flow from Operations $14 567 $116 120 $148745 $192478 $298056

Cash Flow from Investing Activities -$25 150 $0 $0 $0 $0

Cash Flow from Financinq Activities $59 393 ~13 806 =$12777 ~15 189 -$16,610

Net Cash Flow $48810 $102,314 $135,969 $177,288 $281,446

Closing Cash $48,810 $151,1241 $287,0931 $464,3811 $745,827

** The two large dips in cash flow are a result of Tax Payments

Cash Balance

$800,000 ~

:: $800,000 o ~ $400,000, ~ $200,000 • , ••••.t.." ':' ~~

1 3 5 7 9 11 13 1517 1921 232527293133353739414345474951 53 55 57 59

Month

Cash Flow

I~ $60,00 I 141 'Vir ..... o ............ .. ..'.'.,,...., / ~

$40000 '.'.H , • ~t { ~; ~~ ; \t C7;.~~ ~ ---1t f tl~ 13 15 17 '9 ~ ;;; ;; ;;V\.f~' ;; ;; ;; f~;;;;; ;;! -0:1 ",'~': :':d;:; ":c# ;; ;;"VIi" ~ -I

-$.<10,000~~-~ I

, -$88,000

II ,$80,000" Month

I

Page 22

Mickey K. Ogg 111 Levasseur Street Missoula. MT 59802

406.396.1757 m ickeyozegrnail.com

Profile Personable, professional, self-starter with seven years legal experience. Outstanding communication and interpersonal skills with a history of attention to detail and thoroughness beyond expectation.

Professional Experience Ogg Law Offices/McCann Law Firm, Missoula, MT Legal Assistant, 2001 - Present Assisted attorneys in preparation for trial through synthesis of medical records and data analysis. Drafted complex court documents and legal correspondence. Performed legal research for both workers' compensation and personal injury claims. Communicated extensively, hath written and verbal, with staff, clients, and professionals.

Implemented new systems for tracking medical records, medical bills and case workload. Combined old and new systems offiling and calendaring utilizing technology. Tracked changing insurance industry practices and updated demand letters accordingly.

Ogg Rentals, Missoula, MT Property Managcr, 2004 - Present Managed and coordinated property operations and administrative functions. Planned, scheduled, and coordinated maintenance. major repairs, and remodeling projects.

Developed and administered annual operating budget. Prepared financial statements and periodic reports on the status of all properties.

Jackson Hole Sports, Teton Village, WY Sales Associate, 2000~2001

Provided Customer Service for individuals looking to purchase outdoor sports equipment. Operated cash register, including balancing the till and books.

Demonsrrated superior customer service and sales skills while interacting with broad range of customers.

Medrecs Copying Service, Seattle. W A Customer Account Representative, 11.199

Acquired medical and employment records for law firms and insurance adjusters from medical providers and businesses throughout the Northwest.

Maintained high level of professionalism with existing business relationships.

Sloel Rives, L.L.P. Seattle, WA Mail/Fax Clerk, 1997-1999 Recorded and routed incoming mail and faxes throughout large corporate law office. Coordinated outgoing legal documents with legal couriers. Itemized shipping bills for accounting department.

Worked with diverse group of individuals to meet strict time constraints placed on deliveries.

Academic Credentials The Univer-sity of Montana ­ Missoula University of Washington - Seattle Masters of Business Administration, 2006 - Present Bachelor of Arts, History, 1999

Community Involvement Habitat for Humanity Chair Public Relations Committee, 2006-2007 Coordinated and ran weekly volunteer meetings. Drafted press releases, planned and coordinated Public Relations events as needed and developed a budget to cover ongoing Public Relations expenses.

Jesse Himsworth 1742 Mi:-,solda Sirell • \1i",~oll]a, Momana 59802· (4061581.24&5 • .JHirns\',orth({~~llla.il.rom

Pro'('!'osionaIOhj('('liYC-: '1'0 olnain 1I positionwithin the marketing/advert i..;ing indus! rv'hal will lxsr utilize my skills, C\IIl'rICIlCC

andnILW<l1 ion.

Edm'alicm: lniwl"sih of Montana Missoula. Montana \fa'iLCrS in Business Admini-tranon Candidate. 0512007 G.P-A. 3.86/4.0

Johnson & '",'alt's Ulli\'('f!'lity l'rovidr-rnx-. Rhode Island Bachelor«I'Sr-icncc in Marketing Communicauous De/(ree.O.l/200S Asvx-iarc of'Scicncr ill Marketing' Ile/(Trr. OJ/2004 Conccntnnion in Applied Mathematics

G.P.A. 4.0/4.0. Summa Cum Laude

\\'ork Experience: As~islanl A«.Jn·nisinj.! A('('cJUnt Ecccurivc 02/05 - 04/06 D1Jj~, & Shanll>', InC.'. Pnuirk-ncc. Rhode Island

• Cuidrd daY-IO-day a<!\crlisLng:acllVilic'i for Anthonv &. Sylvan Pools. Providence/ W::lI'v"il'k Conwmion and '"isitor's Bureau. Rhode Island l'u hlic Truu-ponatiou ami National Crid • Collaborated\vith thr AccountSupervisorill preparationof rccomnuncations.markcung ~tralq.~i...·s and acr ions fur dicllIS • Used.'trong ... 'ommunirauousskills 10 buildand maintain trusted clicm rclauonshipv • Consulted with ereal ivc, media. and researchstaff, to couunnnica«: die III objectives aud 10

drvdup altcruauvc striHegicsohnious

• Hclpedclient"" he their hest!

i\I(·tlia anti At'("(111111 Sc..-rvice... III{(·rn

10/04 - 02/05 ])IIJ~, &:Shanlc'~, Inc. Providence. Rhodebland • As-isrcd public rclatiOIlS tcam m securing 2:") broadcast f('alllrc., and 18 ncv....'..,papn art idcs for [\ ikeGolf", narionwidr CPR promououal tour • I)evcJoj)n! and placed IHIITlcrOU.' iuscniun orders for a multi-million dollaradvcrtising cltcms rc..,uhillg ill lilt" cffirk-m and dli."t'livc lise of their :llh(Tti"ill~ hLHI~t'L'

• W"orknJ with Art-oum EXCClIliH.·s and Media Supen i~ors to construct markciiujr communication..., Illans hv furillIII aunz ideasfor [he (Teatiw (Incl0PJJlt' 1lI of print, radio. and muracti vt- media

(;rac.lmll(" R(·!o.('ar('h Assislani 09/06 - Present I'nivcrsiry of Moutana Missoula. Montana

• (:oll(h('C(l cxn-nsivc re"'...-urc'h 1111 muhi-tl,HI\IIIaI e(Irj)(lralillll'" iurcmanonal adw'nising: pnwliccs 1(1 a.... ~isl

graduu«: professors in publishing n-vcan-h paller.., • (:o-3ulluwnJ IlUmnOlIS ca«: ;,,\\Idies Oil il\1(,J'lIallonalIJll~int'ss ami inWl'lI'A1 ioual nq..!;otiatlon"" and slIhmlucd them for publiruuon tu toll business journals

Tau:;IH:~ S(.·.;,sions (1.)0 slu<!cms) ofjullior k-vc! Ol':;aniz,Hiollal hehaviOl' da~~cs y.,·llCllr\('I' pro«''i'-'(IJ' wasall...rnt

[lif..rlllig1lt~ ofQualilic.'atioll!;:

Sharp. productive. quicklearner: provell ahilit) [() adapt well to a challengc • Emhusiacr il' [cam nu-mberwhose parlicipation hring''' nut the 11('';1 in other", • E.\lTlllionaJ llhility 10 quickly master nrw concepts and apply' its lull range of'capabil iuc-, • SjlITia1 Iluir 1(11' rclat inp: \\ ith a \\idc rallp:c or pcopk. Ilrp;311izatio[IS, and [Illsinnsc",

Honore, A!>l!>lotialion!o and Inrcrcsts: • lIniver.,ity ofMnmara's .I.E, (;O]'CII(' Memorial Scholarship RecipiClll 08/2006 • johnson & "'<1..1('..., Uuivcr..ily Pn-scrk-nual Achicvmcut Award Ikdpiclll OSI200S • Arlncvcd Colden Quill HOllOI' Socicty Rccogniriou rot' Undnp,TadualC Studies 0912002 - 03/2005 • Active American \farkelinJ!; i\~.,ociatiotl Mcmber OX/20().'l Present • Inter~sts include: Golf, Racquetball. F1:y fishing, Running and Mountain Biking

Rdi..rellt'(·... Alail..hle (Ipon K('llll('!,t

~ Customer Groups

Product Market Stakeholders

Primary Customers ·Golfers

Secondary Customers -Golter's spouses

Suppliers •Turi supplier -Lumber ·Golf accessories

Capital Market Stakeholders

Shareholders 'Mickey Ogg -Jesse Himsworth -lnvestors

Major suppliers of capital 'Mickey Ogg -Jesse Himsworth -Investors

Organizational Stakeholders 'Employees -Carpenter (s) 'Installer -Custorner Service

Business Definition Hide-a-Green provides indoor synthetic putting greens that offer the benefit of folding

away when not in use.

I \ Competitive Advantage

Innovation ·Proprietary fold away technology 'Utilization of new high end putting materials -Proprietary cam system to adjust breaks

Customer Relations -Superior customer service "Responsive -Ouick to answer questions leading to delighted customer 'Intimate product knowledge ·Sales and marketing experience

Efficiency -Bullt to order -Expertlse in golf industry -Low cost operation utilizing just-in­time inventory management

Quality 'Handmade 'Quality cabinetry -Srnootn operating mechanism

~

t Capabilities

See Appendix 2

Resources Tangible Resources

Financial -Owners ·Family & friends -Fundinq from investors

Physical -None currently ,W,II be looking for warehousing and manufacturing facility

Technological Proprietary fold away technology

Intangible Resources

Human Resources -Golf expertise:" -Marketinq and advertising expertise:" -Strateqic expertise -Entrepreneurship expertise'" .** ;: through advisors and team

Innovation resources ·Unique product offering 'Patent oppcrtunities

Appendix 1

Customer Needs

Product Market Stakeholders

Primary Customers -Practice putting from home -Fold away putting green

Secondary Customers 'No clutter

Suppliers ·High volume -Consistent purchases -Loyal customer

Capital Market Stakeholders

Shareholders -Reiurn on investment -Start-up experience 'Employment 'Patent protection

Major suppliers of capital 'Product development -Patent protection -Return on investment ·Interest payments

Value Chain Analysis Firm Infrastructure: Flat organization resulting in more immediate service and increased accountability. selling. Efficient warehouse/office for manufacturing and administrative functions

Top management support and ~

Human Resource Management: Limited employees reduces fixed costs. Management knowledgeable about the golf industry. compensated for the work.

Employees well

Technology Development: Innovative product design inherent to the foldout green system to manipulate break.

Handmade production process ensuring quality. Unique cam

Procurement: Reliable sources of high quality materials used to produce putting greens. Materials available on a just in time basis.

Inbound Logistics: Handling of inputs that minimizes damage to putting surface material and lumber. Timeliness of supply to manufacturing process.

Operations: Tight conformance to buyer's specifications. Attractive product appearance. Low defect rates and short time to manufacture.

Outbound Logistics: Rapid and timely delivery. Accurate and responsive order processing. Handling that minimizes damage.

Marketing & Sales: High advertising level and quality. Responsive sales force. Personal relationships with channels of buyers. Extensive product promotion.

Service: Responsive customer service department. One year warranty that product IS free from defects.

···--n···­

Expanded Sales & Marketing Marketing Management - Comprehensive marketing communications plan Advertising - Utilizes internet, print, trade shows, PGA tour events, promotional give aways, direct mail Sales Force Administration and Operations - Small efficient sales force Technical Literature - closely guarded information, but quick to provide nutrition information

Appendix 2 1/

Strategy Products for one Products for many Group of customers kinds of customers

Low-priced products for customers

Differentiated or Unique products for customers

Focused Cost Leadership Strategy

Portable Greens

-lnexpensive materials -Revenues based on volume -Ease of use -Easy storage

Focused Differentiation Strategy

Hi de-a-Green

-High quality materials -Realistic putting surface -Adjustable break -Fold away design saves space -Cabinet eliminates clutter

Cost Leadership Strategy

Inexpensivel Low quality greens

-Revenues based on volume

-Ease of use -Low cost leader -Lacks durability

Differentiation Strategy

Dream Greens

-Hiqh quality materials -Realistic putting surface -Adiustable contour green -Difficult to store -Consurnes a great amount of floor space

Appendix 3

Industry Forces Threat of New Entrants: Moderate - High

Fronomres orScak Many different companies thai could pcuennallv build product Larger companies could use buymg power to offer similar products at 100\cr prices Prorrletar> Product Differences Must indoor purrmg greens have no abIlity ttl fold away or manipulate break

Capnal Requm:menLs l-unds needed La manufacture arc limited but funds for murkeung anu adverusmg are more substanual

Access [0 Drstr.buuon Internet d.smouuon makes entrance into the market easy fix new companies E"pccll:d Rctalrauon b ..cry cum par.y gelling Into market seems to do the status quo Entrv DCKrnng Pncc With high-end putting greens the cmrv pnee will be rcfanvcly high

Swuctuna Costs Moderate SWitching costs as products arc 50 ohtrusrvc and hare to remove

Supplier Power: Low Substuutes Many different \ ender-s SuppLer Concemrauon Very fragmented Impor:ance of Volume 10Supplier Moderate hlf'.'.3nJ Intesranon Lo.....

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Industry Rivalry: Low I ru..l ustrv urowrh 20U.J expcnenccd 3% growth in the gel:' equipment Industry Intermittent merL'apacltv Pctenua! seasonal effects Product differences Broad runge of quality wnh Indoor putung greens Brand 1derll1ty vmuauy no established brands In svruhcue putting green Industry SWllchlng cosrs Shrppmg ecsts. Installation nrnc and change of habits make for high SWitching costs Concentration and balance \ cry fragmented There IS J main eomoentor and hundreds of smaller eompamcs lnfcrmauonal compleXity Pauly complex to make a qualuy product Dlver,lty of competlt(lf~ Ranging from H:ry 10'.'. - faulv hrgh quality

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Buyer Power: Moderate Bargaining I"vt'ugl':

Buver concenuuuon versus suppltcr eoncentrauon l.ow - 37 million golfers Diverse and fragmented Buvcr volume No advantage to huvmg quanuues of seale Huver sv..llehlng cost-, Due to high shrppmg costs. msrat'anon lime and change or babns Buvcr mformanon Buyers have access to large amounts of mformaucn through multiple marketing channelx Ahrhrv to backward II1tegrate Consumers ean backward nucgratc butthey Will not get the same quality Subsmute rroduct:- - The rurear IS high hut the products are not comparable

Price scnsrtlvity Product duterenccs Pnces range from $50 - $K,OI)U

Hrend rdcnutv No estnhhshcd brands lmp<ld 0\1 uuallhlperl'ormJ.IKe Must be hlg.h quull\,:, WIth great performance Buyer profitS WILh quahrv pruduet buyer IS extremely sausncd Dccrscou mukers ' mccnnve... I'raeuce from horne pracnce 111 off seasons

Threat of Substitutes: Moderate

Pncc Performance of Substitutes Lrrrutcd number of quality suhsmu:e products SWItching Costs Shipping l:OSB,

msraltunon tune and change ofhahrtc make Illl hIgh SWllchlllg costs Buyer Propensltv to Subsnturc HIgh One \hreat IS Ih'al customers will no1 buy any procuet

Appendix 4

Competitive Advantage

Efficiency -Built to order -Expertise in golf industry -Flat organization -Low cost operation utilizing just-in-time inventory management

Quality -Handmade -Quality cabinetry -Srnooth operating mechanism

Competitive Advantage: H Focused Differentiation

Customer Relations -Superior customer service -Responsive -Ouick to answer questions leading to delighted customer

~ -lntimate product knowledge -Sales and marketing experrence

Innovation -Proprietary fold away technology -Utlllzation of new high end putting -Materials providing a lifelike roll and break -Proprietary cam system to adjust breaks

Appendix 5