rising sun breads

BUSINESS PLAN Rising Sun Breads

March 2009

DARLA MAIN–SCHNEIDER1014 Mulberry Road Martinsville VA 24112P 276 956 2293 M 414 379 0006www.risingsunbreads.com

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A. Executive Summary page 6

B. Management and Organization Plan page 9

Legal Form of Business 9Management Team 9Board of Directors/Advisory Board 9Recruitment and Selection of Employees 9Compensation and Ownership 9Employee Reward and Incentive Plan 9Communication 11Infrastructure 11

C. Product/Service Plan page 13

Purpose of Product/Service 13Features and Benefits 13Stage of Development 13Product/Service Limitations 13Product Liability 14Production 14Facilities 14Suppliers 14Related Products/Services and Spin-Offs 14Trademarks, Patents, Copyrights, Licenses, Royalties 15Governmental Approvals 15

D. Marketing Plan page 17

Industry Profile 17Current SizeGrowth PotentialIndustry TrendsOther CharacteristicsDistribution Channels

Competitive Analysis 19Direct CompetitionIndirect CompetitionFuture CompetitionCompetitive Analysis

Market Analysis 21Target Market ProfileCustomer ProfileFuture Markets

Pricing 23Pricing StrategyPrice ListPricing Policies

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D. Marketing Plan (Cont.) page 26

Market Penetration 26Company ImageCustomer ServiceLocationDirect Sales ForceSales RepresentativesLicensing or DistributorsAdvertising and PromotionPublicityTelemarketing/Direct MailInternetTrade ShowsMarket Penetration Effectiveness

E. Financial Plan page 29

Start-Up CostsSales ProjectionsIncome ProjectionsCash RequirementsSources of FinancingExit StrategyProjected Financial Statements

Monthly Cash Flow Report (for three years) Year-End Income StatementYear-End Balance SheetRatio Analysis

F. Appendix

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R ISING SUN BR E ADS

Rising Sun Breads is a new organic, nutritionally evidenced-based bakery specializing in artisan breads and bagels; baked locally with no preservatives; initially serving the wholesale markets within a fifty mile radius of Martinsville, Virginia. There are no other baking facilities in the area which offer fresh, nutritionally-dedicated, consumer-driven and locally sensitive alternatives.

Our Mission: Provide top-quality, all natural ingredients, baked in an old world bread-baking technique, to create baked goods for everyone to love. To be sensitive to the often over-looked allergy sufferers and cater to their needs for healthy, delicious baked goods.

Mission Statement: One body, One planet. Eat well. The legal name of the bakery is Rising Sun Breads, LLC.

Start-up baking production to be located in conjunction with The Cakes & Dessert Pantry LLC, locates at 6629 Greensboro Road, Ridgeway, Virginia. Open six days a week, Monday thru Saturday. Owner Derrick Beverley, a Johnson Wales Graduate with multiple years experience in the food service industry has graciously agreed to mentor Darla and provide a designated baking area to begin the production requirements for Rising Sun Breads.

The legal form of the business will be an LLC, as registered in the States of Virginia and North Carolina. Estate planning will be combined with the LLC.

Founder of Rising Sun Breads, Darla Main-Schneider, holds an MBA in Business Management from the University of Wisconsin - Milwaukee and recently completed an Artisan Bread Baking program at The French Culinary Institute of New York. With over twenty five years in Materials Management with several Fortune 500 Corporations, Darla has decided to transition her skills, gifts and talents in order to fulfill her dream of owning her own business.

With over twenty years of experience in business, hands on training in artisan bread baking, and a well-developed business plan, Darla Main-Schneider is well–positioned to start a new business that will flourish, as indicated in the market analysis in this business plan will amply demonstrate. With a unique concept and the ability to fill a genuine unmet need in a healthy community, this bakery has the potential to become a keystone business in its locale.

The location at 6629 Greensboro Road has proven retail traffic. Strategically located with easy access to Greensboro, Danville, Martinsville, Stuart, and Roanoke.

A Executive Summary

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Management’s vision is to make Rising Sun Breads a cornerstone bakery operation in the Martinsville area within the next five years. Creating a neighborhood atmosphere where customers feel comfortable and become instant regulars. The primary clientele of the business will be adults aged 18 to 99, for whom healthy eating is a goal. Overall national trend indicates that people are eating with a more health conscious trend. The US Bakery Industry forecasts a growth at an annual compounded rate of 3.8% between 2007 and 2012. Wholesale opportunities, direct purchase of core products, with establishment of a retail market for local products

Artisan breads and bagels provide a healthy alternative to the morning donut or biscuit readily available in the area. As the founder of Rising Sun Breads, I believe that the metropolitan area is a great place to develop my bakery. There are no other freshly baked bread and bagel shops in the area. The closest competition is The Daily Grind in uptown Martinsville.

Rising Sun Breads fits well into the Martinsville/Henry County demographics, as 37% of the households fall into the $50,000 plus per year income level. Bagel consumers come from all income levels in the market. The area also contains over 20,000 people residing in a 3 mile radius from which to draw business. Repeat sales of bread and bagels by the dozen are the key factor to be considered in the marketing approach.

Rising Sun Breads will provide artisan breads and bagels in both the wholesale and the retail markets in 2009 with a plan to obtain a balance of 60 percent wholesale and 40 percent retail business in the first year. The bakery business has potential growth of 3.8% compounded annually according to the October 2008 US Bakery report, with Artisan Breads as the top trend setter with high margins.

Areas for potential marketing are the Martinsville Farmers Market, Taste of Town event, donations to local Charity events, A Holiday Open House, Fast Track 2010, and a shared concession spot at the new soccer fields. Rising Sun Breads will seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk.

The initial investment to start-up Rising Sun Breads will be the Capital Expense required to purchase/ lease equipment currently not available at The Cakes and Desserts store. Other start-up costs include: Advertising Brochures Bakery Inventory Insurance Minor Improvements to the designated Baking Area

A Executive Summary (Cont.)

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The legal form of the business will be an LLC, as registered in the States of Virginia and North Carolina.

Founder of Rising Sun Breads, Darla Main-Schneider, holds an MBA in Business Management from the University of Wisconsin - Milwaukee and recently completed an Artisan Bread Baking program at The French Culinary Institute of New York. With over twenty five years in Materials Management with Fortune 500 Corporations, Darla has decided to transition her skills, gifts and talents in order to fulfill her dream of owning her own business. Initially, Darla is committed to building the business as the sole manager with additional management added to meet the expansion needs of the business.

The Advisory Board for Rising Sun Breads will include members of the local SCORE and Lisa Fultz, Director of Small & Minority Business Development.

Recruitment of employees will be done through word of mouth and placing Help Wanted ads in the Martinsville Bulletin. A partnership with Patrick Henry Community College to develop an exclusive Bread and Pastry Program with a defined Apprenticeship Program is planned for the future.

A job application will need to be filled out with a drug test prior to starting work. All references will be checked. The owner will interview candidates, hiring the best person for the job. The addition of new employees will be based on a target percentage of gross income for payroll and will be revised yearly.

Compensation will be the current minimum wage with monetary increases equivalent to learned skill sets. A training manual with specific job descriptions and the expected dress code will be provided to all new employees.

The owner, Darla Main-Schneider, will retain 50% plus, controlling interests in Rising Sun Breads, with compensation when funds become available.

“People want to be part of a Successful Company.” A key toward the success of the employees and Rising Sun Breads is treating all employees fairly with respect, rewarding performance, and a critique of unsuccessful performance. Sharing the big picture lets employees know and understand how their job fits into the businesses success. A personnel goal is to be a role model who is comfortable discussing what has been learned from her mistakes, to develop an experimental, learning attitude with the employees.As Rising Sun Breads or an individual contributor reaches a milestone it will be celebrated. Those who produce will share in the rewards. Saying “Thank You” will provide priceless affirmation of effort and interest.

B Management and Organization Plan

Legal Form of Business

Management Team

Board of Directors/

Advisory Board

Recruitment and

Selection of Employees

Compensation and

Ownership

Employee Reward

and Incentive Plan

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Creating a healthy organizational culture at Rising Sun Breads, where it will be fun, interesting, motivating, and provide opportunities for each individual involved is an important piece of the business plan. Specific goals with results will be established and posted around the baking workplace, with monthly updates that are highly visible, easy to read and understand.People need to know their roles and responsibilities and how they relate to the working team, so these will be an integral part of the written job specific activities (JSA). Finally, direction and the purpose for Rising Sun Breads will be developed and posted in the workplace.

Chris Fields, CPAMolenda & Associates9401 West Beloit RoadMilwaukee, WI 53222(414) 545- 2800

Janine M. JacobsDaniel, Medly, & Kirby P.C.106 East Church Street 2nd FloorMartinsville, VA. 24112(276) 666-1585

Aaron M. SchneiderCreative Director527 East Blithedale AvenueMill V alley, CA 94941

Fay DeShazoPersonalized Computing and Training102 Oak Street Martinsville, VA 24112(276) [email protected]

B Management and Organization Plan (Cont.)

Communication

Infrastructure

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Provide locally produced, baked daily, breads and bagels containing all natural Ingredients. Healthy bread will be created that is not only unique, but complimentary and sensitive to seasons, holidays, and religious/ethnic requests. Local requests for specialty breads and other bread products from the historical roots of the Martinsville/Henry County area will be encouraged. Rising Sun Breads will offer evidence-based, healthy nutrition products. Freshly baked breads and bagels are currently not available in Henry County.

An additional group of allergen free products is planned to be developed within the first year of Rising Sun Breads. This plan will target specialized products that are sugar-free, wheat free (gluten free), and dairy free. Medical and nutritional evidence is clear that there have been significant increases in demand for these bakery products as doctors have begun to diagnosis specific food allergies and specific nutritional limitations. For example, according to Nancy Dietz, a nutritionist in Martinsville, over 9% of the population has been diagnosed with diabetes at differing levels of severity. Individual requests with these nutritional limitations for these products in the local community will be encouraged.

All Rising Sun Bread products will be made from scratch; using unbleached flour, whole grains, stone ground flours, real honey, molasses and no preservatives or harmful additives. Our dough will rise slowly and gently, leaving vitamins and nutrients whole, thus imparting a fuller, less yeasty flavor.

These products will be created using a reliance on tradition, and as little mechanical interference as possible. Each product will be a unique fingerprint to the consumer; conveying taste as well as presentation. Consumer input will be ongoing. Superior quality will be guaranteed.

Bagels meet the needs of the “breakfast on the go” individual, as a healthy alternative to fattening fast food. With a variety of flavors available, a warm, crusty, 5 oz kettle boiled bagel with cream cheese or butter is a healthy start to the day.

Conception stage: developing training plan timeline, business plan development—with product mix and wholesale, retail, and farmers market timeline projects.

Daily production is required to provide a superior quality product. The shelf life on Artisan breads and bagels is 48 hours; with fresh first day and day old second day. Continual product research and development is required to meet customer requirements and stay on the cutting edge of trends. Today in Martinsville and the surrounding area, trained resources are limited. A co-operative program to provide “hands on training” through Patrick Henry Community College is being developed.

C Product/Service Plan

Purpose of

Product/Service

Features and Benefits

Stage of Development

Product/Service

Limitations

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A general liability policy, quoted at $500/year, will be purchased to cover the liability of the product and the owner. Additional vehicle insurance with Liberty Mutual, quoted cost of $250/year, will be added to cover deliveries of the baked products to wholesale accounts.

The entire artisan bread and bagel production process will be done on site using the authentic slow, simple methods of the past. Artisans that understand the alchemy that turns four basic ingredients; high quality organic flours, fresh yeast, fine sea salt, and conditioned water into the greatest, most complete food on earth. A distinctive signature for Rising Sun Breads will be done by hand scoring before baking. Stone hearth ovens evenly bake the breads and bagels; producing crunchy crust outside, dense, chewy texture on the inside.

Rising Sun Breads will begin production in a co-leased facility in Ridgeway, Virginia. The owner, Derrick Beverly, has designated an area 12 foot by 12 foot for the production of artisan breads and bagels. There are separate areas designated for clean up, mixing, and storage provided above the 144 square feet designated for production. In addition to a production area Derrick will provide a designated section of retail space for the sale of bagels and Artisan breads. Classroom space is also available for future classes in the baking of artisan breads.

As Rising Sun Breads becomes recognized in the community a new facility will be built to meet the baking and retail requirements of Rising Sun Breads, along with the addition of local wines, cheeses, and organic produce. The actual site has not yet been selected, but several options have been investigated. The key factors is that the location offer ample parking, easy in and out access for the morning and afternoon rush times, and high visibility from the road.

A screening process to qualify suppliers before providing products to Rising Sun Breads will be completed by Darla. To date, several suppliers have been contacted, price listings have been provided, and meetings will be scheduled in February 2009. High-quality ingredients are key to the success of Rising Sun Breads. See appendix for supplier information.

A local resident of Martinsville has voiced a desire to join Rising Sun Breads. Her specialties are pies, cakes, and an array of miscellaneous baked products. She brings her talents and gifts along with an established customer base.

A website for Rising Sun Breads which will include forms to order breads and gift baskets by the Fall of 2009.

C Product/Service Plan (Cont.)

Product Liability

Facilities

Production

Suppliers

Related Products/

Services and Spin-Offs

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Complimentary products will be added per customer requests. A systematic evaluation will be conducted for any new product introduced. This will include data from initial taste testing by customers, determination to add or remove the product, and the tracking of sales revenue for the product. Equip the store with a drive-thru window for quick pick-up of baked products. Possible future services may include catering and classroom learning. Based upon the Charlottesville, Virginia model for Fiesta an indoor, year round farmers market which may include; organic meats, flowers, seafood, and fair trade coffees and teas.

The Rising Sun Breads brand name and logo will be trademarked and registered with the Martinsville Circuit Court and Commonwealth of Virginia. Copyright protection for all printed literature and the website will be pursued. All employees and advisors for Rising Sun Breads will be asked to sign a non-disclosure agreement that prohibits them from disclosing any recipes used during their employment at Rising Sun Breads.

Government approvals are required at all levels of the government as stated below:

Federal Requirements:– Federal Employer Identification number– An SS-4 form which registers Rising Sun Breads with the government– OSHA regulations/EPA-SPCC– Clean Air and Water Act– When hiring or providing services for ADA– Latest Regulation: January 2006; Product labeling requirements-

a nutritional label must indicate trans-fat content and any known allergens. (FALCPA)

Virginia Requirements:– Virginia retail sales and use tax – Sales Tax Number– Register with the State Department of Taxation.

Forms available online at www.tax.state.va.us– VEC for employee withholding

Martinsville Requirements:– Business License Tax – Commissioner of Revenue office– Business Tangible Personal Property Tax– Tax on Prepared Food and Beverages – Commissioner of the

Revenue office – A Certificate of Occupancy– Register Rising Sun Breads trade name – Clerk of Court office– Business Location Inspection – Inspections Office– FDA – Health and Sanitation Inspection

See Business Pamphlet in Appendix for specifics

C Product/Service Plan (Cont.)

Trademarks, Patents,

Copyrights, Licenses, Royalties

Governmental Approvals

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Current Size As of October of 2008 there were 7,000 small bakeries in the United States with $2 Billion in total revenue. Small bakeries compete by offering specialty goods and superior local distribution services.

Annual US per capita consumption of bread is close to 60 pounds, according to The Wheat Foods Council.

Growth Potential The output for US bakery and pasta products is forecast to grow at an annual compounded rate of 3.8% between 2007 and 2012. The consumer price index for food, an indicator of bakery production values, rose 6% in July 2008, compared to one year ago.A recent article, Healthy Gains in Breads, by Phil Lempert, in Facts, Figures, & the Future; Dollar sales of total fresh bakery bread has grown steadily from $5.9 billion in 2004 to $6.7 billion in August 2008 per US FDA data. See copy of article in appendix.

• Largest gain in whole Wheat Bread with double digit growth; $881.9M 2004 to $1.6 B 2008

• Preservative free Bread; $381.8M 2006 to $507.2M in 2008• Natural Breads; $183.2M in 2006 to $303.8M in 2008• Sweetener presence (sugar amounts); Sales of $121.1 M in 2008

an increase of 36.2%• Organic Breads; $35.8m in 2004 to $95.7M in 2008.

Industry Trends According to the industry profile for Bakeries compiled on October 6, 2008 the following trends and opportunities are available:

• Changing consumer tastes have given rise to “artisan” breads, which smaller bakeries like Rising Sun Breads, with flexible production facilities can capitalize on and differentiate with regional and local tastes delivering a wider variety of products at a higher margin. Breads that contain seeds, nuts, and fruits are among new products with high margins.

• Demand is rising for Organic foods at a rate of 20% per year, according to the Organic Consumer Trends.

• More bakeries are entering the online gift market, which is in Rising Sun Breads marketing plan for 2009.

Industry Challenges• Raw material prices continue to rise due to the rising cost of producing

those materials and rising global demand on grains. Bakeries pay for flour, base mixes, and dough rose 26.6% in July 2008 compared to July 2007.

• Energy costs have been volatile in 2008, varying more than 50% during the year. Investigating into and signing future contracts can protect a baker against sharp increases in raw material costs.

D Marketing Plan

Industry Profile

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• Nationwide deteriorating water quality requires an investment in purification equipment. Martinsville’s water quality remains high.

• Bakery products sell more during holiday and spring and summer causing cash flow challenges. Creative product line development and a strong marketing plan to discover untapped markets is required for continual growth.

Distribution Channels The distribution plan for Rising Sun Breads:

• Business to Business; 25%, initial sales contacts made by Darla.• Business to Consumer; 70%, with a 5% sales projection from

internet sales.

Direct CompetitionToday there is not a bakery in Martinsville or Henry County that bakes from scratch, artisan breads and bagels. A survey of the competition clearly indicates that Rising Sun Breads will fill a unique niche in the Martinsville market. Given that the American Baking Outlook report identifies “a continued focus on health and nutrition” as the trend, and given that this trend is even more pronounced among the weight-conscious and health-conscious 18–99 year-old demographic, it’s clear that a major opportunity is currently being missed by our competition. There are several retail businesses in Martinsville that sell baked goods retail; The Daily Grind, Binding Times, and Arts, Ect. Additionally there are several specialty baking businesses; The Dessert and Cake Pantry, Tasty Cream, and Cakes with Personality.See Cost Comparison Chart in Appendix

Indirect Competition Martinsville has 2 major food chains; Kroger and Food Lion, with several locations, and Wal-Mart, which sells a limited variety of frozen product, baked on site. Convenience stores/ gas stations stock a limited variety of baked goods, none baked on site or fresh.See Cost Comparison Chart in Appendix

Future Competition According to Nielson Label Trends bakery bread sales showed a 3.1% growth in 2007 and a 6.1% growth in 2008. As the growth of fresh bakery bread continues to trend upward grocery stores and Super Centers may expand their current bakery operations to include fresh baked breads verses the par baked products. The local framers market could expand into more organic produce and baked products. The annual sales of organic breads neared $100 Million in July 2008; up more than 18% from 2007, according to Nielson Label Trends.

D Marketing Plan (Cont.)

Competitive Analysis

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Competitive Analysis The price structure of the breads and bagels at Rising Sun Breads will be about 13%–15% higher than the local grocery stores and equal to the bakeries that I visited. Rising Sun Breads will bake their breads fresh daily, with only the finest ingredients. All artisan breads and bagels are baked on stones to produce a crusty outside with a soft, chewy inside, enhancing the top quality ingredients. Weekly advertisements for breads with seasonal ingredients, holiday specials, and various flavors of cream cheeses and butters, will keep customers coming back. See the chart comparing the competitions strengths and weaknesses in Appendix

Target Market Profile Even with food prices going up, consumers continue to purchase baked goods; particularly “upscale” items. According to Modern Baking, June 2008 edition, specialty breads and rolls have gained market share with donuts and white breads declining. Additionally, organic/natural, gluten-free, and low trans-fat have made sizable increases in the market share. This data supports the decision for Rising Sun Breads target market strategy to provide high quality artisan breads and bagels to the Martinsville area residents. Smaller bakeries have held the pricing increase to 4% in comparison to larger commercial in-store bakeries that have increased their pricing as much as 57%. Sales projections for 2009 continue to remain strong with an average increase in the retail price of 10% overall. Average sales per customer are projected to rise to $3.96; an increase of 19%.

Customer Profile The targeted customer profiles for Artisan breads and rolls; citizens in Martinsville, Henry County between the ages of 25 and 85 with household incomes of $50K or more/year, who are health conscious and prefer to purchase smaller quantities more frequently. According to the 2008 Business Census information for Martinsville/Henry County that would include approximately 11K households or 35K customers. With the addition of bagels, which are a lower cost baked product, with eat on the go convenience, adding in the 18 to 24 year old population would increase the customer base to over 42K.

Future Markets In a published article on October 23, 2008 the CDC states that approximately 3 million children in the US under 18 were reported to have a food or digestive allergy with eight specific types of foods. Baking Business noted in an article published on November 3, 2008 that the CDC states that incidence of diabetes among adults has climbed more than 90% in the last 10 years. Developing grain-based foods that appeal to that group continues to be a challenge. Developing baked products that are allergen or sugar free meet an emerging market for the near future. The wholesale market is open to the addition of complimentary bread items for their menus.


Market Analysis

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Pricing Strategy Pricing that is set initially will determine the image and value the owner places on the quality of the products baked and sold at Rising Sun Breads. The image for Rising Sun Breads is to represent the value adds to a customer’s meal selection. All the ingredients in Rising Sun Breads are natural, sustainable, baked to produce a tasty good. Limited quantities are available due to the time required to hand form all products. Our mission is to avoid genetically-modified organisms which impact biodiversity in the planned world and have unknown effects on the human body.

Bagels are made fresh on site with the highest quality ingredients, high protein, unbleached wheat flour, fresh yeast, water, salt, and malt syrup. They are kettle boiled and baked on a stone hearth, which gives the bagels that crunchy crust on the outside, dense, chewy texture on the inside. Pricing Policies Wholesale; Volume pricing or tiered pricing with set payment terms of c.o.d. or 2/10.

Return on Investment – profit margins expected.

Costs – Actual costs for producing products.

Price ceiling $2.99 to $4.99 per loaf – Comparison pricing.


Pricing

Daily

Baguette/ BatonCiabattaFocacciaSeeded Rolls / Petit Pains

Monday

Wheat LevainMultigrainSour Dough Rye

Tuesday

Pain de MieGrissiniPain de Mia

Wednesday

MulitgrainPain NormandSpelt Whole Wheat Sandwich

Thursday

GrissiniPain de MiaPanmarinoWheat Levain

Friday

ChallahFougasse Aux OlivesMultigrain

Saturday

BriocheGrissiniWheat LevainSourdough RyeSeasonal Special

HOURS:

Monday–Friday: 6 am to 5 pmSaturday: 6 am to 6 pmClosed Sunday

THE BREADS AT RISING SUN BREADS ARE HEART BAKED WITH PATIENCE AND CARE FROm THE FINEST INGREDIENTS.BREADS mARKED WITH A (*) ARE FAT FREE.

*Baguette: The strong crust of this 12-ounce loaf conceals a golden thick crumb. It is the perfect beginning for any meal or on its own.

*Baton: A smaller version (8 ounce) of our baguette.

Brioche: Beautiful, tasty, and rich, this egg and butter bread also makes the best French toast. 1 pound loaf or small popover sizing.

Challah: This traditional braided egg bread is available with or without poppy seeds. Call ahead to order for special occasions.

Ciabatta: Italian for “slipper”, this bread features a porous interior enclosed in a crunchy crust. Great for dipping in olive oil.

Focaccia: Soft Italian bread traditionally filled with delicious seasonal ingredients.

Fougasse Aux Olives: An aromatic loaf made with a sourdough starter, Kalamata olives, and fresh thyme.

Grissini: Thin, crisp sticks of Italian bread, plain or covered in poppy seeds. Chef’s tip: great with thin strips of prosiutto wrapped around them or served with spicy or creamy dips.

Multigrain: Weighing in at a pound and a half, this bread is packed full of cracked wheat, cut oats, barley grits, buckwheat grits, corn grits, wheat bran, millet, and flax seed.

Pain de Mie: Long and square, this is the ultimate soft-crust sandwich bread. Made with milk and butter, kids just love it.

Pain Normand: Made with diced local apples and cider in a white, whole wheat, and rye flour combination. Delicious toasted.

Petits Pains Au Lait: Small rolls made with an enriched bread dough and milk for a soft texture and a golden crust.

Panmarino: An aromatic loaf made with a sourdough starter and rosemary. Excellent for dipping in olive oil.

Seeded Rolls: Small, soft clover leaf rolls are made with wheat flakes, sunflower, millet, sesame, and poppy seeds for a nutty texture.

*Sourdough Rye: A classic European–style rye bread with a robust tangy flavor.

*Spelt Bread: Our wheat-alternative bread has a nutty, barley-like taste. We use an organically grown spelt.

*Wheat Levain: A sourdough loaf made with stone ground organic whole-wheat flour.

*Whole Wheat Sandwich: A hearty bread with whole wheat flour, cracked wheat, poppy seeds, and sunflower seeds. The addition of honey, butter, and milk make this a soft-crusted bread perfect for sandwiches.

Bread Production Schedule

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R ISING SUN BR E ADSD Marketing Plan (Cont.)

Market Penetration Company Image Even before a customer walks through the front door of Rising Sun Breads, an enticing aroma of fresh baked breads draws them in. The atmosphere in the bakery is one of warmth with a bit of a European flair. Repeat customers are greeted by name and new customers are immediately welcomed. Baskets of freshly baked breads and bagels, a brightly lit display case showing off cream cheeses in a variety of flavors, and local artists music playing softly in the background. Towards the back are glass windows where anyone can peer in and see the activity of a buzzing bakery, with bakers in white coats and black checkered pants mixing, scoring, removing bread from an oven. From the smiles it appears everyone seems to enjoy whatever activity they are performing. The phone is answered by a live person who genuinely cares that you have called and wants to provide excellent customer service for you. After the customer has tasted the days special, decided what they will purchase, and received their order in a paper bag or reusable tote, a “thank you” is spoken as the customer leaves for another day.

Customer Service The focus of Rising Sun Breads is to make our customers happy. To accomplish this a connection will be established by listening to the customers. Customer Service will wear name tags and training will be provided daily on the preparation and ingredients for all baked items of the day. Customer service will be empowered to solve problems immediately. A salutation to all customers upon entering the bakery as well as the use of first names of repeat customers. A wallet size punch card will be provided to hand out to customers. “Thank you” is mandatory.

Location Rising Suns Breads will initially be located at 6629 Greensboro Road, Ridgeway, Virginia. The owner of The Cake and Dessert Pantry, Derrick Beverly, has agreed to mentor Darla and provide a production area for Rising Sun Breads. This site has excellent traffic both North and South on 220, with adequate parking, and a large retail area. Future plans to relocate to an uptown location will be based upon the financial success of Rising Sun Breads.

Direct Sales Force and Sales Representatives The customers of Rising Sun Breads will be the salespeople for the bakery.

Licensing or Distributors There is no plan to license or establish distributors for Rising Sun Breads at this time.

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Market Penetration

(Cont.)

Advertising and Promotion A banner announcing “Opening Soon Rising Sun Breads.” Advertisement in Sundays food section of the Martinsville Bulletin a month prior to the actual opening will build up anticipation, costing approximately $____. A grand opening event will be planned which will include advertisement in the newspaper and on the radio, costing $____.

The most effective program is word-of-mouth, and its free. At Rising Sun Breads it will be a goal to inform and educate our patrons, provide service that is unique and personal, in a warm, friendly, atmosphere. Our customers will be the extended salespeople for the bakery.

In store promotions will include sampling of a new product which may be introduced depending on the feedback from the customers. A wallet sized internal courtesy coupon that can be issued to customers to be used on return visits; also to a customer with complaints. A flyer attached to orders which will introduce upcoming holiday and seasonal specials.

Publicity The Martinsville Bulletin will do a feature story on Rising Sun Breads and its owner. As a former member of The Charity League, which has a positive impact on the community, Rising Sun Breads will provide breads and bagels for the annual Bargain Fair, a highly advertised event with heavy attendance from the community. An Open house is planned for November; working with Derrick to provide a variety of deserts and breads to enhance and ease the holiday season’s stress. The local farmers market, a county 4-H Fair, and a concession stand at the new soccer complex along with a sponsored team.

Telemarketing/Direct Mail No plan to invest in telemarketing. A direct mail plan may be utilized in the future.

Internet Construction of a web-site is in process. The site will highlight the products with short, descriptive copy and photos that clearly identify baked products to stimulate the viewer’s appetite, along with information about the baker at Rising Sun Breads. Also included will be the bakery hours, location with directions, a phone number, and a comment section, which I will reply to in a timely fashion. Holiday promotions, seasonal specialties, an electronic menu for ordering, and community celebrations that Rising Sun Breads supports will be featured to personalize the website.

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Market Penetration

(Cont.)

Trade Shows Rising Sun Breads will be at the spring 2010 trade show in Martinsville. The expectation is to provide samples to approximately 1500 people, with a rebate of $500 to cover costs. I plan to attend the Bakery trade show in Chicago in September of 2009 to network and meet suppliers.

Market Penetration Effectiveness I will track the number of hits on the Rising Sun Breads website, the number of coupon codes used, comments to samples, names in the guest book, yellow page ads, trade show leads, and send out a prepaid postcard survey. A promotion comparison chart will be used to check the effectiveness of each marketing promotion and how well it is penetrating the market.

– E – FINANCIAL PLAN

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START-UP FUNDING & EXPENDITURES

Start-Up Cash Equity Investments 5,000 Loan Proceeds 30,000 Real Estate - Line of Credit 30,000 Total Start-Up Cash 65,000

Start-Up ExpendituresSecurity Deposits Rent (last month's) - Telephone Deposit - Utilities Deposit - Other Deposits - Total Security Deposits -

Other Costs Opening Inventory 2,500

Capital Expenditures Computer Equipment 250 Equipment & Machinery 20,000 Furniture & Fixtures - Vehicles - Leasehold Improvements 10,000 Building - Land - Total Start-Up Capital Expenditures 30,250

Start-Up Expenses Accounting Fees 500 Activation Fee 20 Corporate Fees & Taxes 125 Federal Tax ID 30 Fictitious Name Costs 60 Insurance 450 Legal & Consulting Fees 1,000 Marketing 500 Meals & Entertainment 100 Office Expense 100 Office Supplies 100 Payroll Expenses (training/setup) 0 Salaries & Wages - Payroll Taxes - Benefits - Pre-opening Advertising 1,750 Printing (cards, stationery, brochures) 200 Rent - Sales Tax Permit 30 Other Start-Up Expenses - Total Start-Up Expenses 4,965

Total Start-Up Expenditures 37,715

23-Apr-09

Name MfgQuoted Cost Supplier Transport Cost Repair/Install Value

Need to Operate:Spiral Mixer, 60 qrt Hobart 4100 Gov Deals Arrange 100000Mixer, A200- 20 qrt. w/ SS Hobart table Hobart 1600 Gov Deals Arrange 3750Stone/Steam Oven Chaney 1000 Ad Arkansas PU me 2000Stone/Steam Oven Chaney Quote ABS, Cedar Rapids Arrange 2000Electric deck oven GE 0 Derrick None Stones $75 ea 1000Exhaust Hood 0 Derrick None Solo Quote install 800Stove 0 Derrick None 100 Refrigerator 0 Derrick None 100Refrig under couner 1 door Delafield 100 Solo, MV PU Me Gasket $60Freezer Home 0 Me 100Coffee Pot Home 0 Me 20Display case 1000 PinecreastAlumium proofer w/ sheet pans 0 Derrick None Clean & reglaze pans 35.00 +Fax Machine 75 Office MaxTotal 7875

Would be nice to have:Sheeter table topper acme 1500 PinecrestSheeter Ecnomo 5400 Atlantic CoastSheeter Table top reversable 5000 ABS ArrangeWater Treatment 200Water Meter Hand Dryer Excel 400Dough Divider Dutchess 750 Atlantic Coast Pick-upDough Divider 5000 ABS new ArrangeTotal

Future Purchases:Stone Mill Burr Mill 2000Fermenter Sour Dough 8000 ABS used ArrangeBagel KettleTotal

Estimated Total

Basic Mechanical Equipment Start-up

Facility Start-up Costs

Plumbing Est. Cost Est. Time Who Mo. Follow-upQuote #1 1900 1 day Prillman & PaceQuote #2 1275 2 day Schrader Precision Services

ElectricalQuote #1 4239 2 days Triangle 276-957-2281Quote #2 2395 2 days Kenny Hoffman 340-4847

Hood InstallQuote 1900 1 day Solo w/new exhaust fan and roof curb

Repair Oven- Blodgett 120 2 hrs. Julian Goode Comfort heating & Cooling

Wall Painting 25 Darla Touch up only

Floor restoration 350 Ramos $50-75/ mo.(1000 sq. ft) 300 Jones Janitorial Phone no visit

Equipment installation ? As Req'd Mike Grant

Fire Extinguisher 54 Comm'l Fryers 81 Dye Plant Rd. 1 a year $15276-632-3473

Printing Business Plan $317 10 bound copies Sanwell 638-3772$165 10 bound copies Quick Print

.49/pg 10 66 page doc Office Max

Start-up Inventory5-Dec-08

Product QtyTotal Cost Per Cost

# to Purchase Total/Mo

Fresh Yeast-SAF 16 3.99 $0.25 1 3.99Fine Sea Salt 50 18.27 $0.37 0.083 1.51641Walnuts 30 128.21 $4.27 0.05 6.4105Butter 64 8.63 $0.13 1 8.63Eggs 180 21.13 $0.12 1 21.13Sugar (white granular) 50 20.96 $0.42 0.083 1.73968Wheat Germ 40 15.16 $0.38 0.083 1.25828Dried Apples 20 86.17 $4.31 0.083 7.15211Caraway Seeds 5 8.07 $1.61 0.083 0.66981Honey 60 99 $1.65 0.083 8.217Vegetable Oil 35 45.39 $1.30 0.083 3.76737Olive Oil 192 88.8 $0.46 0.083 7.3704Malt Syrup(dry diastatic) 50 62.22 $1.24 0.083 5.16426Milk 5 10 $2.00 0.083 0.83Flax Seed 25 19.4 $0.78 0.083 1.6102Sesame Seed 20 50.07 $2.50 0.083 4.15581Sunflower Seed 25 29.09 $1.16 0.083 2.41447Rolled Oats 50 24.32 $0.49 0.083 2.01856Olives 16 2.99 $0.19 0.083 0.24817Poppy Seeds 25 87.24 $3.49 0.083 7.24092Pumpkin Seeds 10 27.23 $2.72 0.083 2.26009Brown Sugar 50 23.15 $0.46 0.083 1.92145Powdered Milk(whole) 50 147.83 $2.96 0.083 12.26989Millet Seeds 25 11.44 $0.46 0.083 0.94952Cracked Wheat 25 13.33 $0.53 0.083 1.10639Dried Blueberries 10 107.46 $10.75 0.083 8.91918Raisins 30 40.64 $1.35 0.083 3.37312Pretzel Salt 10 6.24 $0.62 0.083 0.51792Aple Cider 1 2 $2.00 0.083 0.166Lemons 10 2 $0.20 0.083 0.166Caraway Seeds 5 8.07 $1.61 0.083 0.66981Cardom Seed 2 26.92 $13.46 0.083 2.23436Ground Cinnamin 3 12.07 $4.02 0.083 1.00181Baking Spray 120 39.25 $0.33 0.083 3.25775Molasses 192 42.77 $0.22 0.083 3.54991Wheat Bran 25 8.38 $0.34 0.083 0.69554Splenda 18 11.88 $0.66 0.083 0.98604Splenda Brown Sugar 18 11.88 $0.66 0.083 0.98604Dried Currants 25 44.86 $1.79 0.083 3.72338Dark Brown Sugar 50 23.15 $0.46 0.083 1.92145Sub Total 1359.77 140.56477

Start-up Inventory- Cont'd

QtyTotal Cost Per Cost

# to Purchase Total/Mo

Flours:Dark Rye 40 28.5 $0.71 0.083 2.3655Semolina 50 30 $0.60 0.083 2.49Rice Flour 25 18.67 $0.75 0.083 1.54961Pumkernickel 50 37.19 $0.74 0.083 3.08677Sir Galahad 50 30.3 $0.61 1 30.3Sir Lancelot 50 33.94 $0.68 0.083 2.81702King Arthur Special 50 31.44 $0.63 1 31.44Organic Course Rye 50 37.19 $0.74 1 37.19Organic Fine Wheat 50 54.52 $1.09 0.25 13.63Whole Wheat-course 50 23.5 $0.47 0.083 1.9505Buckwheat- Light 50 28.91 $0.58 0.083 2.39953Duram 50 33.15 $0.66 0.083 2.75145Cornmeal - Course 50 10.9 $0.22 0.083 0.9047WW Graham Flour 50 17.45 $0.35 0.083 1.44835WW Pastry Flour 50 15.39 $0.31 0.083 1.27737Sub Total 431.05 135.6008Sub Total pg 1 2451.1SubTotal 2882.15 135.6008

Subtotal 1 1360Subtotal 2 2883Total 4243

SALES PROJECTIONS

Year 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALSales BudgetBagels - - - - 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 12,480 Baguettes - - - - 750 750 750 750 750 750 750 750 6,000 Rolls/Batons - - - - 500 500 500 500 500 500 500 500 4,000 Artisan Breads - - - - 3,141 3,141 3,141 3,141 3,141 3,141 3,141 3,141 25,128 Misc. Additions - - - - 250 250 250 250 250 250 250 250 2,000 Breakfast Pastries - - - - 792 792 792 792 792 792 792 792 6,336 Product/Service Category G - - - - 500 1,000 1,500 2,000 2,500 2,700 3,000 3,496 16,696 Gross Sales - - - - 7,493 7,993 8,493 8,993 9,493 9,693 9,993 10,489 72,640 Less: Returns & Allowances - - - - - - - - - - - - - Net Sales - - - - 7,493 7,993 8,493 8,993 9,493 9,693 9,993 10,489 72,640 Other Income - - - - - - - - - - - - - Total Income - - - - 7,493 7,993 8,493 8,993 9,493 9,693 9,993 10,489 72,640 Credit Management Sales (cash) - - - - 7,493 7,993 8,493 8,993 9,493 9,693 9,993 10,489 72,640 Sales (credit) - - - - - - - - - - - - - Received on Account - - - - - - - - - - - - - Bad Debt Expense - - - - - - - - - - - - -

Year 1 AssumptionsBagelsBaguettesRolls/BatonsArtisan BreadsMisc. AdditionsBreakfast PastriesProduct/Service Category GLess: Returns & AllowancesOther Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

Year 2 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALSales BudgetBagels 2,080 2,080 2,080 2,080 2,080 2,080 2,080 2,080 2,080 2,080 2,080 2,080 24,960 Baguettes 1,121 1,121 1,121 1,121 1,121 1,121 1,121 1,121 1,121 1,121 1,121 1,121 13,452 Rolls/Batons 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600 Artisan Breads 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 5,235 62,820 Misc. Additions 500 500 500 500 500 500 500 500 500 500 500 500 6,000 Breakfast Pastries 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400 Product/Service Category G 3,500 3,750 4,000 4,250 4,500 4,750 5,000 5,250 5,500 5,750 6,000 6,000 58,250 Gross Sales 15,436 15,686 15,936 16,186 16,436 16,686 16,936 17,186 17,436 17,686 17,936 17,936 201,482 Less: Returns & Allowances - - - - - - - - - - - - - Net Sales 15,436 15,686 15,936 16,186 16,436 16,686 16,936 17,186 17,436 17,686 17,936 17,936 201,482 Other Income - - - - - - - - - - - - - Total Income 15,436 15,686 15,936 16,186 16,436 16,686 16,936 17,186 17,436 17,686 17,936 17,936 201,482 Credit ManagementSales (cash) 15,436 15,686 15,936 16,186 16,436 16,686 16,936 17,186 17,436 17,686 17,936 17,936 201,482 Sales (credit) - - - - - - - - - - - - - Received on Account - - - - - - - - - - - - - Bad Debt Expense - - - - - - - - - - - - -

Year 2 AssumptionsBagels .65 ea x 16/hr. x 8 hr day x 25 days Baguettes 2.99 ea x 15/day x 25 daysRolls/Batons .45 ea x 20/hr x 8 x 25 daysArtisan Breads 3.49 ea x 6 bread varities x 10 x 25 daysMisc. Additions Cream Cheese, butter, preservativesBreakfast Pastries Cinnamin Buns, Scones, Sticky Buns, Danish $.99 ea x 6/hr. x 8 x 25 daysProduct/Service Category GLess: Returns & AllowancesOther Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

YEA

R 1 Y

EAR

1 YEA

R 1 Y

EAR

1 Y

EAR

2 YEA

R 2 Y

EAR

2 YEA

R 2

.65 ea 12/hr. x 8 hr day x 25 days YEA

R 1 Y

EAR

1 YEA

R 1

YEA

R 2 Y

EAR

2 YEA

R 2

2.99 ea x 10/day x 25 days.45 ea x 15/hr x 8 x 25 days3.49 ea x 6 bread varities x 6 x 25 daysCream Cheese, butter, preservatives

Wholesale: includes soccer complex

Cinnamin Buns, Scones, Sticky Buns, Danish $.99 ea x 4/hr. x 8 x 25 daysWholesale : includes soccer complex

SALES PROJECTIONS

Year 3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALSales BudgetBagels 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 31,200 Baguettes 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 Rolls/Batons 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600 Artisan Breads 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 84,000 Misc. Additions 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Breakfast Pastries 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 Product/Service Category G 6,000 6,250 6,500 6,750 7,000 7,250 7,500 7,750 8,000 8,500 9,000 10,000 90,500 Gross Sales 21,400 21,650 21,900 22,150 22,400 22,650 22,900 23,150 23,400 23,900 24,400 25,400 275,300 Less: Returns & Allowances - - - - - - - - - - - - - Net Sales 21,400 21,650 21,900 22,150 22,400 22,650 22,900 23,150 23,400 23,900 24,400 25,400 275,300 Other Income - - - - - - - - - - - - - Total Income 21,400 21,650 21,900 22,150 22,400 22,650 22,900 23,150 23,400 23,900 24,400 25,400 275,300 Credit ManagementSales (cash) 21,400 21,650 21,900 22,150 22,400 22,650 22,900 23,150 23,400 23,900 24,400 25,400 275,300 Sales (credit) - - - - - - - - - - - - - Received on Account - - - - - - - - - - - - - Bad Debt Expense - - - - - - - - - - - - -

Year 3 AssumptionsBagels .65 ea 20/hr. x 8 hr day x 25 days Baguettes 2.99 ea x 20/day x 25 daysRolls/Batons .45 ea x 20/hr x 8 x 25 daysArtisan Breads 3.49 ea x 8 bread varities x 10 x 25 daysMisc. Additions Cream Cheese, butter, preservativesBreakfast Pastries Cinnamin Buns, Scones, Sticky Buns, Danish $.99 ea x 8/hr. x 8 x 25 daysProduct/Service Category GLess: Returns & AllowancesOther Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

YEA

R 3 Y

EAR

3 YEA

R 3 Y

EAR

3 Y

EAR

3 YEA

R 3 Y

EAR

3

Wholesale: includes soccer complex

Item PercentageBaked Breads 50Rolls, buns, muffins, bagels, Croissants 20Cakes 11Other- Pies, Pastries, Donuts, & variety Sweet Goods 19

Industry Volume Break Down by Product

Baked Breads

Rolls, buns, muffins, bagels, Croissants Cakes

Other- Pies, Pastries, Donuts, & variety Sweet Goods

2009 Pre Start-Up JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Cash In Cash Sales - - - - 7,493 7,993 8,493 8,993 9,493 9,693 9,993 10,489 72,640 Collections from Accounts Receivables - - - - - - - - - - - - - Equity Received 5,000 - - 500 500 500 500 500 500 500 500 500 500 10,000 Loans Received - - - - 60,000 - - - - - - - - 60,000 Other Cash In (receipts from other assets) - - - - - - - - - - - - - Other Cash In (for example, interest, royalites) - - - - - - - - - - - - - Total Cash In 5,000 - - 500 60,500 7,993 8,493 8,993 9,493 9,993 10,193 10,493 10,989 142,640 Total Cash Available 5,000 5,000 5,000 5,250 55,750 38,598 38,983 38,861 41,156 43,556 44,199 46,959 50,220 147,640

Cash Out Inventory Expenditures Inventory/Raw Material (Cash) - - - - - - 150 150 150 200 200 200 200 1,250 Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - - - Production Expenses - - - - - 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 16,800 Operating Expenses Advertising - - - - 200 200 200 200 200 200 200 200 200 1,800 Bank Charges - - - 10 10 10 10 10 10 10 10 10 90 Dues & Subscriptions - - - - - - - - - - - - - - Insurance - - - 40 40 40 40 40 40 40 40 40 360 Licenses & Fees - - - - - 100 100 100 100 100 100 100 100 800 Marketing & Promotion - - - - - 100 100 100 100 100 200 200 200 1,100 Meals & Entertainment - - - 100 100 100 100 100 100 100 100 800 Miscellaneous - - - - - 100 100 100 100 100 100 100 100 800 Office Expense - - - - - 100 100 100 100 100 100 100 100 800 Office Supplies - - - - - 50 50 50 50 50 50 50 50 400 Outside Services - - - - 25 25 25 25 25 25 25 25 25 225 Payroll Expenses Salaries & Wages - - - - - 800 800 800 800 800 800 800 800 6,400 Payroll Taxes - - - - - 80 80 80 80 80 80 80 80 640 Benefits - - - - - - - - - - - - - - Professional Fees - - - - 100 100 50 50 50 50 50 50 50 550 Property Taxes - - - - - - - - - - - - - - Rent - - - - - - Repairs & Maintenance - - - - - 100 100 100 100 100 100 100 100 800 Shipping & Delivery - - - - - 50 50 50 50 50 50 50 50 400 Telephone - - - - 40 40 40 40 40 40 40 40 40 360 Training & Development - 400 400 400 400 400 2,000 Travel - - - - - - - - - - - - Utilities - - - - - - - - - - - - - - Vehicle - - - - - 200 200 200 200 200 200 200 200 1,600 Other - - - - - 1,000 - - - - - - - 1,000 Other - - - - - Other - - - - - - - - - - - - - - Paid on Account - - - - - - - - - - - - - - Non-operating Costs Capital Purchases - - 250 10,000 20,000 - - - - - - - - 30,250 Estimated Income Tax Payments - - - - 1,912 - 1,912 - - 1,912 - - 1,912 7,648 Interest Payments - - - - 484 479 474 469 464 459 454 449 444 4,177 Loan Principal Payments - - - - 2,334 2,334 2,334 2,334 2,334 2,334 2,334 2,334 2,334 21,006 Owner's Draw - - - - - - - - - - - - - - Other Cash Out - - - - - - - - - - - - - - Total Cash Out - - 250 10,000 25,145 8,108 9,115 7,198 7,593 9,550 7,733 7,728 9,635 102,056

Monthly Cash Flow (Cash In - Cash Out) 5,000 - (250) (9,500) 35,355 (115) (622) 1,795 1,900 443 2,460 2,765 1,354 40,584 Beginning Cash Balance - 5,000 5,000 4,750 (4,750) 30,605 30,490 29,868 31,663 33,563 34,006 36,466 39,231 - Ending Cash Balance 5,000 5,000 4,750 (4,750) 30,605 30,490 29,868 31,663 33,563 34,006 36,466 39,231 40,584 40,584

2010 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Cash In Cash Sales 15,436 15,686 15,936 16,186 16,436 16,686 16,936 17,186 17,436 17,686 17,936 17,936 201,482 Collections from Accounts Receivables - - - - - - - - - - - - - Equity Received - - - - - - - - - - - - - Loans Received - - - - - - - - - - - - - Other Cash In (receipts from other assets) - - - - - - - - - - - - - Other Cash In (for example, interest, royalites) - - - - - - - - - - - - - Total Cash In 15,436 15,686 15,936 16,186 16,436 16,686 16,936 17,186 17,436 17,686 17,936 17,936 201,482 Total Cash Available 56,020 61,218 66,665 72,363 60,044 65,511 63,789 69,766 75,998 74,507 81,249 87,996 242,066

Cash Out Inventory Expenditures Inventory/Raw Material (Cash) - - - - - - - - - - - - - Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - - Production Expenses 5,040 5,040 5,040 5,040 5,040 5,040 5,040 5,040 5,040 5,040 5,040 5,040 60,480 Operating Expenses Advertising 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Bank Charges 20 20 20 20 20 20 20 20 20 20 20 20 240 Dues & Subscriptions 20 20 20 20 20 20 20 20 20 20 20 20 240 Insurance 50 50 50 50 50 50 50 50 50 50 50 50 600 Licenses & Fees 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Marketing & Promotion 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Meals & Entertainment 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Office Expense 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Office Supplies 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Outside Services 50 50 50 50 50 50 50 50 50 50 50 50 600 Payroll Expenses Salaries & Wages 800 800 800 800 800 800 800 800 800 800 800 800 9,600 Payroll Taxes 80 80 80 80 80 80 80 80 80 80 80 80 960 Benefits - - - - - - - - - - - - - Professional Fees 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Property Taxes - - - - - - - - - - - - - Rent - Repairs & Maintenance 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Shipping & Delivery 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Telephone 40 40 40 40 40 40 40 40 40 40 40 40 480 Training & Development 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Travel 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Utilities - - - - - - - - - - - - - Vehicle 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Other - - - - - - - - - - - - - Other - - - - - - - - - - - - - Other - - - - - - - - - - - - - Paid on Account - - - - - - - - - - - - - Non-operating Costs Capital Purchases - - - 10,500 - - - - - - - 500 11,000 Estimated Income Tax Payments - - - 7,031 - 7,445 - - 7,978 - - 8,449 30,902 Interest Payments 445 445 445 440 435 430 425 420 415 410 405 400 5,113 Loan Principal Payments 1,594 1,594 1,594 2,334 2,334 2,334 2,334 2,334 2,334 2,334 2,334 2,334 25,788 Owner's Draw - - - - - - - - - - - - - Other Cash Out - - - - - - - - - - - - - Total Cash Out 10,489 10,489 10,489 28,754 11,219 18,659 11,209 11,204 19,177 11,194 11,189 20,133 174,203

Monthly Cash Flow (Cash In - Cash Out) 4,947 5,197 5,447 (12,568) 5,217 (1,973) 5,727 5,982 (1,741) 6,492 6,747 (2,197) 27,279 Beginning Cash Balance 40,584 45,532 50,729 56,177 43,608 48,825 46,853 52,580 58,562 56,821 63,313 70,060 40,584 Ending Cash Balance 45,532 50,729 56,177 43,608 48,825 46,853 52,580 58,562 56,821 63,313 70,060 67,863 67,863

Cash Flow Report (Projected)Rising Sun Breads

Cash Flow Report (Projected)Rising Sun Breads

2011 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Cash In Cash Sales 21,400 21,650 21,900 22,150 22,400 22,650 22,900 23,150 23,400 23,900 24,400 25,400 275,300 Collections from Accounts Receivables - - - - - - - - - - - - - Equity Received - - - - - - - - - - - - - Loans Received - - - - - - - - - - - - - Other Cash In (receipts from other assets) - - - - - - - - - - - - - Other Cash In (for example, interest, royalites) - - - - - - - - - - - - - Total Cash In 21,400 21,650 21,900 22,150 22,400 22,650 22,900 23,150 23,400 23,900 24,400 25,400 275,300 Total Cash Available 89,263 98,834 108,655 118,725 62,686 72,427 71,995 82,246 92,701 92,687 104,103 116,523 343,163

Cash Out Inventory Expenditures Inventory/Raw Material (Cash) 200 200 200 200 300 300 300 350 350 400 400 400 3,600 Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - - Production Expenses 5,540 5,540 5,540 5,540 5,540 5,540 5,540 5,540 5,540 5,540 5,540 5,540 66,480 Operating Expenses Advertising 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Bank Charges 50 50 50 50 50 50 50 50 50 50 50 50 600 Dues & Subscriptions 25 25 25 25 25 25 25 25 25 25 25 25 300 Insurance 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Licenses & Fees 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Marketing & Promotion 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Meals & Entertainment 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Miscellaneous 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Office Expense 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Office Supplies 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Outside Services 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Payroll Expenses Salaries & Wages 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Payroll Taxes 80 80 80 80 80 80 80 80 80 80 80 80 960 Benefits - - - - - - - - - - - - - Professional Fees 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Property Taxes - - - - - - - - - - - - - Rent - Repairs & Maintenance 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Shipping & Delivery 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Telephone 40 40 40 40 40 40 40 40 40 40 40 40 480 Training & Development 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Travel 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Utilities - - - - - - - - - - - - - Vehicle 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Other - - - - - - - - - - - - - Other - - - - - - - - - - - - - Other - - - - - - - - - - - - - Paid on Account - - - - - - - - - - - - - Non-operating Costs Capital Purchases - - - 55,000 - - - - - - - 500 55,500 Estimated Income Tax Payments - - - 10,625 - 10,428 - - 10,974 - - 11,991 44,017 Interest Payments 400 400 400 395 390 385 380 376 371 366 361 356 4,580 Loan Principal Payments 1,594 1,594 1,594 2,334 2,334 2,334 2,334 2,334 2,334 2,334 2,334 2,334 25,788 Owner's Draw - - - - - - - - - - - - - Other Cash Out - - - - - - - - - - - - - Total Cash Out 12,079 12,079 12,079 78,439 12,909 23,332 12,899 12,945 23,914 12,985 12,980 25,465 252,106

Monthly Cash Flow (Cash In - Cash Out) 9,321 9,571 9,821 (56,289) 9,491 (682) 10,001 10,205 (514) 10,915 11,420 (65) 23,194 Beginning Cash Balance 67,863 77,184 86,755 96,575 40,286 49,777 49,095 59,096 69,301 68,787 79,703 91,123 67,863 Ending Cash Balance 77,184 86,755 96,575 40,286 49,777 49,095 59,096 69,301 68,787 79,703 91,123 91,057 91,057

Sources of Financing – multiple options available to pursue Family:

• Don and Delores Main $5000

• Ed and Donna Schneider

• Craig Schneider $500/month Banks: Options of small business or retail as amount is small

• BBT

• SunTrust

• Smith River Line of credit from existing Equity in 1014 Mulberry Road Credit card Take out of 401K

Exit Strategy “Every business should be sale ready, even if there is no intention to sell business ever”. It is my personnel goal to build value and equity into Rising Sun Breads by creating unique products, developing strong community and business relationships, and a solid retail and wholesale customer base. Building value lies in the team of Rising Sun Breads to create and refine all the products we offer with methods and systems in place that do not rely on specific people to carry them out. It is important that Rising Sun Breads provide a substantial potion of my retirement funds. As a successful business owner I have determined the following exit strategies: #1. Sell to a Friendly buyer (employees) – passing the ownership of Rising Sun Breads to another true believer(s) will assure that the legacy will be preserved. Possibly financing the sale will allow the buyer(s) to pay it off over time. Win-Win for everyone. Pro:

• Know the buyer(s) and they know me. Less due diligence required.

• The buyer(s) will most likely preserve what’s important to me about the business. Con:

• I may become so attached to the business being bought by someone nice that I leave too much money on the table.

#2 Acquisitions/ Buyout – find someone who wants to purchase Rising Sun Breads. Pro:

• If the business has strategic value that an acquirer is seeking, they may be willing to pay a substantial price.

• Best case scenario there may be multiple acquirers, causing a bidding war which

may cause the price to sky rocket. Con:

• Acquisitions can become messy.

• Sometimes there is a non-compete clause and other strings attached which may make my life a bit unpleasant for a time, but money can overcome that obstacle.

MONTHLY INCOME STATEMENTRising Sun Breads

2009 Pre Start-Up JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TotalNet Sales (less returns & allowances) - - - - 7,493 7,993 8,493 8,993 9,493 9,693 9,993 10,489 72,640 Cost of Goods Sold - - - - 1,873 1,998 2,123 2,248 2,373 2,423 2,498 2,622 18,160 Gross Margin - - - - 5,620 5,995 6,370 6,745 7,120 7,270 7,495 7,867 54,480

Operating Expenses Advertising - - - - 200 200 200 200 200 200 200 200 200 1,800 Bad Debt Expense - - - - - - - - - - - - - - Bank Charges - - - 10 10 10 10 10 10 10 10 10 90 Depreciation & Amortization - - 7 174 412 412 412 412 412 412 412 412 412 3,886 Dues & Subscriptions - - - - - - - - - - - - - - Insurance - - - 40 40 40 40 40 40 40 40 40 360 Licenses & Fees - - - - - 100 100 100 100 100 100 100 100 800 Marketing & Promotion - - - - - 100 100 100 100 100 200 200 200 1,100 Meals & Entertainment - - - 100 100 100 100 100 100 100 100 800 Miscellaneous - - - - - 100 100 100 100 100 100 100 100 800 Office Expense - - - - - 100 100 100 100 100 100 100 100 800 Office Supplies - - - - - 50 50 50 50 50 50 50 50 400 Outside Services - - - - 25 25 25 25 25 25 25 25 25 225 Payroll Expenses - Salaries & Wages - - - - - 800 800 800 800 800 800 800 800 6,400 Payroll Taxes - - - - - 80 80 80 80 80 80 80 80 640 Benefits - - - - - - - - - - - - - - Professional Fees - - - - 100 100 50 50 50 50 50 50 50 550 Property Taxes - - - - - - - - - - - - - - Rent - - - - - - Repairs & Maintenance - - - - - 100 100 100 100 100 100 100 100 800 Shipping & Delivery - - - - - 50 50 50 50 50 50 50 50 400 Telephone - - - - 40 40 40 40 40 40 40 40 40 360 Training & Development - 400 400 400 400 400 2,000 Travel - - - - - - - - - - - - Utilities - - - - - - - - - - - - - - Vehicle - - - - - 200 200 200 200 200 200 200 200 1,600 Other - - - - - 1,000 - - - - - - - 1,000 Other - - - - - Other - - - - - - - - - - - - - - Total Operating Expenses - - 7 174 827 3,607 2,557 2,557 2,957 2,957 3,057 3,057 3,057 24,811

Operating Income - - (7) (174) (827) 2,013 3,438 3,813 3,788 4,163 4,213 4,438 4,810 29,669

Interest Expense - - - - 484 479 474 469 464 459 454 449 444 4,177 Other Income (for example, interest) - - - - - - - - - - - - - -

Income Before Taxes - - (7) (174) (1,311) 1,534 2,964 3,344 3,324 3,704 3,759 3,989 4,366 25,492

2010 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TotalNet Sales (less returns & allowances) 15,436 15,686 15,936 16,186 16,436 16,686 16,936 17,186 17,436 17,686 17,936 17,936 201,482 Cost of Goods Sold 3,550 3,608 3,665 3,723 3,780 3,838 3,895 3,953 4,010 4,068 4,125 4,125 46,341 Gross Margin 11,886 12,078 12,271 12,463 12,656 12,848 13,041 13,233 13,426 13,618 13,811 13,811 155,141

Operating Expenses Advertising 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Bad Debt Expense - - - - - - - - - - - - - Bank Charges 20 20 20 20 20 20 20 20 20 20 20 20 240 Depreciation & Amortization 412 412 412 539 539 539 539 539 539 539 539 553 6,101 Dues & Subscriptions 20 20 20 20 20 20 20 20 20 20 20 20 240 Insurance 50 50 50 50 50 50 50 50 50 50 50 50 600 Licenses & Fees 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Marketing & Promotion 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Meals & Entertainment 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Office Expense 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Office Supplies 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Outside Services 50 50 50 50 50 50 50 50 50 50 50 50 600 Payroll Expenses Salaries & Wages 800 800 800 800 800 800 800 800 800 800 800 800 9,600 Payroll Taxes 80 80 80 80 80 80 80 80 80 80 80 80 960 Benefits - - - - - - - - - - - - - Professional Fees 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Property Taxes - - - - - - - - - - - - - Rent - Repairs & Maintenance 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Shipping & Delivery 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Telephone 40 40 40 40 40 40 40 40 40 40 40 40 480 Training & Development 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Travel 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Utilities - - - - - - - - - - - - - Vehicle 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Other - - - - - - - - - - - - - Other - - - - - - - - - - - - - Other - - - - - - - - - - - - - Total Operating Expenses 3,822 3,822 3,822 3,949 3,949 3,949 3,949 3,949 3,949 3,949 3,949 3,963 47,021

Operating Income 8,064 8,257 8,449 8,514 8,707 8,899 9,092 9,284 9,477 9,669 9,862 9,848 108,120

Interest Expense 445 445 445 440 435 430 425 420 415 410 405 400 5,113 Other Income (for example, interest) - - - - - - - - - - - - -

Income Before Taxes 7,619 7,812 8,004 8,074 8,272 8,469 8,667 8,864 9,062 9,259 9,456 9,448 103,007

MONTHLY INCOME STATEMENTRising Sun Breads

2011 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TotalNet Sales (less returns & allowances) 21,400 21,650 21,900 22,150 22,400 22,650 22,900 23,150 23,400 23,900 24,400 25,400 275,300 Cost of Goods Sold 4,494 4,547 4,599 4,652 4,704 4,757 4,809 4,862 4,914 5,019 5,124 5,334 57,813 Gross Margin 16,906 17,104 17,301 17,499 17,696 17,894 18,091 18,289 18,486 18,881 19,276 20,066 217,487

Operating Expenses Advertising 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Bad Debt Expense - - - - - - - - - - - - - Bank Charges 50 50 50 50 50 50 50 50 50 50 50 50 600 Depreciation & Amortization 553 553 553 1,374 1,374 1,374 1,374 1,374 1,374 1,374 1,374 1,388 14,042 Dues & Subscriptions 25 25 25 25 25 25 25 25 25 25 25 25 300 Insurance 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Licenses & Fees 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Marketing & Promotion 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Meals & Entertainment 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Miscellaneous 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Office Expense 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Office Supplies 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Outside Services 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Payroll Expenses Salaries & Wages 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Payroll Taxes 80 80 80 80 80 80 80 80 80 80 80 80 960 Benefits - - - - - - - - - - - - - Professional Fees 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Property Taxes - - - - - - - - - - - - - Rent - Repairs & Maintenance 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Shipping & Delivery 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Telephone 40 40 40 40 40 40 40 40 40 40 40 40 480 Training & Development 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Travel 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Utilities - - - - - - - - - - - - - Vehicle 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Other - - - - - - - - - - - - - Other - - - - - - - - - - - - - Other - - - - - - - - - - - - - Total Operating Expenses 4,898 4,898 4,898 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,733 66,182

Operating Income 12,008 12,206 12,403 11,779 11,977 12,174 12,372 12,569 12,767 13,162 13,557 14,333 151,305

Interest Expense 400 400 400 395 390 385 380 376 371 366 361 356 4,580 Other Income (for example, interest) - - - - - - - - - - - - -

Income Before Taxes 11,608 11,805 12,003 11,384 11,586 11,789 11,991 12,194 12,396 12,796 13,196 13,977 146,724

2009 2010 2011Net Sales (less returns & allowances) 72,640 100.0% 201,482 100.0% 275,300 100.0%Cost of Goods Sold 18,160 25.0% 46,341 23.0% 57,813 21.0%Gross Margin $ 54,480 75.0% $ 155,141 77.0% $ 217,487 79.0%

Operating Expenses Advertising 1,800 2.5% 4,800 2.4% 12,000 4.4% Bad Debt Expense - 0.0% - 0.0% - 0.0% Bank Charges 90 0.1% 240 0.1% 600 0.2% Depreciation & Amortization 3,886 5.3% 6,101 3.0% 14,042 5.1% Dues & Subscriptions - 0.0% 240 0.1% 300 0.1% Insurance 360 0.5% 600 0.3% 1,200 0.4% Licenses & Fees 800 1.1% 1,200 0.6% 1,200 0.4% Marketing & Promotion 1,100 1.5% 1,800 0.9% 2,400 0.9% Meals & Entertainment 800 1.1% 2,400 1.2% 2,400 0.9% Miscellaneous 800 1.1% 2,400 1.2% 4,800 1.7% Office Expense 800 1.1% 1,200 0.6% 1,200 0.4% Office Supplies 400 0.6% 1,200 0.6% 1,200 0.4% Outside Services 225 0.3% 600 0.3% 1,200 0.4% Payroll Expenses 0.0% 0.0% 0.0% Salaries & Wages 6,400 8.8% 9,600 4.8% 4,800 1.7% Payroll Taxes 640 0.9% 960 0.5% 960 0.3% Benefits - 0.0% - 0.0% - 0.0% Professional Fees 550 0.8% 1,200 0.6% 1,200 0.4% Property Taxes - 0.0% - 0.0% - 0.0% Rent - 0.0% - 0.0% - 0.0% Repairs & Maintenance 800 1.1% 2,400 1.2% 4,800 1.7% Shipping & Delivery 400 0.6% 1,200 0.6% 1,800 0.7% Telephone 360 0.5% 480 0.2% 480 0.2% Training & Development 2,000 2.8% 4,800 2.4% 4,800 1.7% Travel - 0.0% 1,200 0.6% 2,400 0.9% Utilities - 0.0% - 0.0% - 0.0% Vehicle 1,600 2.2% 2,400 1.2% 2,400 0.9%Other 1,000 1.4% - 0.0% - 0.0%Other - 0.0% - 0.0% - 0.0%Other - 0.0% - 0.0% - 0.0%Total Operating Expenses $ 24,811 34.2% $ 47,021 23.3% $ 66,182 24.0%

Operating Income $ 29,669 40.8% $ 108,120 53.7% $ 151,305 55.0%

Interest Expense 4,177 5.8% 5,113 2.5% 4,580 1.7%Other Income (for example, interest) - 0.0% - 0.0% - 0.0%

Income Before Taxes $ 25,492 35.1% $ 103,007 51.1% $ 146,724 53.3%

Income Taxes (if C Corp) - 0.0% - 0.0% - 0.0%

Net Income $ 25,492 35.1% $ 103,007 51.1% $ 146,724 53.3%

Rising Sun BreadsYear-End

Income Statement (Projected)

2009 2010 2011

AssetsCurrent Assets

Cash & Equivalents 40,584 67,863 91,057 Accounts Receivable - - - Inventory 40 14,179 26,446 Security Deposits - - - Other Current Assets - - -

Total Current Assets $ 40,624 $ 82,042 $ 117,504

Fixed AssetsProperty, Plant & Equipment 30,250 41,250 96,750 Less: Accumulated Depreciation (3,886) (9,987) (24,029)

Net Fixed Assets 26,364 31,263 72,721 Other Non-Current Assets - - - Total Non-Current Assets $ 26,364 $ 31,263 $ 72,721

Total Assets $ 66,988 $ 113,305 $ 190,224

LiabilitiesCurrent Liabilities Accounts Payable (1,250) (1,250) (1,250)

Line of Credit 23,340 16,680 10,020 Other Current Liabilities - - -

Total Current Liabilities $ 22,090 $ 15,430 $ 8,770

Long-term LiabilitiesLoans 15,654 (3,474) (22,602) Mortgages - - - Other Non-Current Liabilities - - -

Total Non-Current Liabilities $ 15,654 $ (3,474) $ (22,602)

Total Liabilities $ 37,744 $ 11,956 $ (13,832)

EquityEquity Investments 10,000 10,000 10,000 Retained Earnings 25,492 120,852 236,674 Less: Owner's & Investor's Draws (7,648) (30,902) (44,017) Total Equity $ 27,844 $ 99,949 $ 202,656

Total Liabilities and Equity $ 65,588 $ 111,905 $ 188,824

Rising Sun Breads

Balance Sheet (Projected)Year-End

Industry Avg 2009 2010 2011

Profitability Ratios

Net Margin 35.09% 51.12% 53.30%

Gross Margin 75.00% 77.00% 79.00%

Expense Analysis 34.16% 23.34% 24.04%

Return on Assets (ROA) 38.05% 90.91% 77.13%

Return on Equity (ROE) 91.55% 103.06% 72.40%

Efficiency Ratios

Inventory Turnover 454.00 3.27 2.19

Accounts Receivable Turnover #DIV/0! #DIV/0! #DIV/0!

Liquidity Ratios

Current Ratio 1.84 5.32 13.40

Quick Ratio 1.84 4.40 10.38

Risk Ratios

Debt Ratio 0.56 0.11 -0.07

Debt to Equity 1.36 0.12 -0.07

Cash Cycle

Days Receivable - - -

Days Inventory 1 112 167

Days Payable (25) (10) (8)

Days Payroll Accrual 7 7 7

Cash Cycle 26 122 175

- Days Payroll Accrual

Accounts Payable x 365COGS per year

Numer of Days

Total LiabilitiesTotal Equity

Total Assets

Days Receivable + DaysInventory - Days Payable

Between Pay Periods

Accounts Receivable x 365Sales per year

Inventory x 365COGS per year

Rising Sun BreadsFinancial Ratios

Net SalesOperating Expenses

Net IncomeNet Sales

Gross MarginNet Sales

Total Liabilities

Total AssetsNet Income

Total EquityNet Income

Current Liabilities

Yearly Credit Sales

Inventory

Accounts Receivable

Total Current Liabilities

Current Assets - Inventory

Cost of Goods Sold

Total Current Assets

– F – APPENDIX

R ISING SUN BR E ADSF Appendix

List of Potential Suppliers

Qualifying Potential

Suppliers

Sysco, Inc.5081 South Valley PikeHarrisonburg, VA 22801Phone# 540-434-0761

Dakota Prairie Organic Flour500 North Street WestHarvey, ND 58341Phone# 701-324-4330

KDL Foods2410 Farrington Point DriveWinston-Salem, NC 27101Phone # [email protected]

Albert Ulster Imports9211 Gaither RoadGaithersburg, MD 208778Phone# [email protected]

Triangle Food Products1334 Bobbitt DriveGarner, NC 27529Phone # 919-773-8677

Dutch Valley Food Distribution, Inc.7615 Lancaster AvenueP.O. Box 465Myerstown, PA 17067800-733-4191www.dutchvalleyfoods.com

Who else does this supplier do business with (references)?

How is the company doing financially? Basic Financial Information Dunn & Bradstreet Better Business Bureau

Payment Terms available.

Inventory Start-up MiscellaneousOriginal 12/5/2008Revised 3/01/2009

Name Mfg Est CostNumber Req. Total

Purchase Date

Bannetons 1 kg Oval 32.8 8 262.4Bannetons - 750 kg Oval 31.7 8 253.6Bannetons - 750 kg Round TBJ 8 8 64 3/5/09Bannetons - 1kg round TBJ 10 8 80 3/5/09Pelle w/handle Lillsum 59 1 59Parchment Paper 18 x 26 500 sheets 56 1 56Alumium Foil 18 x 500' Sam's Club 19.32 1 19.32Bar Towels 60 Sam's Club 17.12 1 17.12Rolling Bins - Flour 28 8 224 3/9/09Lexar Bins w/lids 37 6 222Digital Scale Large used 400 1 400Digital Scale Small 100 1 100Balance Scale Detecto 300 1 300Blackboards- Prod/specials Craig Built 19.95 1 19.95 3/9/09Chalk & Eraser 5 1 5Plastic Scoops 64 oz. 10 20 200Peg Board w/hooks 12.95 1 12.95Baker Racks Pinecrest 100 3 300Plastic Zipper Rack Cover 60 2 120Wooden Proof Boards Lilley 8 12 96Can Opener 10 1 10Metal Padded Stool 65.99 1 65.99Clock 19.99 1 19.99Sheet pan 18x26 10.56 12 126.72Saute Pans 5 qrt. 40 1 40Can Crusher 0 1 0Recycle Bin set 65.61 1 65.61Square Garbage Cans 24.99 2 49.98Compost Bin 24.99 1 24.991st Aided Kit Wall 18.99 1 18.99Flour Sifter-Round SS 26.99 1 26.99Plastic Wrap 18 x 3000 Sam's Club 14.56 1 14.56Coat Hook 2.99 1 2.99Round Laundry Bin 4.99 1 4.99Metal Pitcher 24.99 2 49.98Square Clear Plastic Cont 25 2 50Couche 26" wide 9.5 10 95Radio Home Sony 0 1 0Pullaman Pansw/ lids 23 8 1841 pound loaf pans 11.93 20 238.6Pull Out Drying Rack 14.99 1 14.99 Sink At Bakery 0 0Wooden Table Tops 6' cover SS 300 1 300Delivery Trays pkg 6 98 1 98Rolling Metro shelf 150 2 300Sub Total 4613.71

Inventory Start-up Miscellaneous

Name Mfg Est CostNumber Req. Total

Purchase Date

Scraper Metal 10 1 10Scraper plastic 1 3 3Rolling Pin no handles Lilly 5.45 1 5.45Rolling Pin Marble 16.99 1 16.991" Pastry Brush 1.69 2 3.38Pizza Cutter Metal 4.95 1 4.95Silpat Ateco 35 1 35Brioche Pan Small 24 25 600Brioche Pan Large 30 12 360Stainless Steel Shelf 6' 100 4 400French Ergo Whip 14" 4.99 2 9.98Fluted Tart Tins 1.09 25 27.25Kraft Bags 2 lb 500 ea 7.86 1 7.86Kraft Bags 6 lb 500 ea 9.58 1 9.58Kraft Bags 12 lbs 500 ea 16.63 1 16.63Mandoline Slicer 170 1 170Square Grater 7.99 1 7.99Accurate Grater 21.99 2 43.98SS Strainer 8" med/fine 6.17 1 6.17Round Plastic w/lid 18 2 36Bagel Scoop 46 1 46Sauce Pan Alumium 4.5 qrt 23.99 1 23.99Large offset spatula 10.8 1 10.8Cookie Spatula 3 1 318" Metal Ruler 4.5 1 4.5Oven Thermometer 3.5 2 7Potholders & Mitts 30 1 30Wooden Rolling Pin Ateco 48.99 1 48.99Bakers Blade Holder TMB 6 1 6Flour Brush 18.5 1 18.5Croissant Cutter TMB 122 1 122Bratforms Wicker - Round TMB 20.99 8 167.92Bratforms Wicker - Oval TMB 18.99 8 151.92American Bread Poster TMB 15 1 15Fire Extinguisher + sign 35 1 35Storage Bins Dry Goods Cambro 65 14 910Dunage Rack Flour 300 1 300Jucier- lemons/oranges Home 0 1 0Zester 10 1 10

.

Subtotal 3684.83Subtotal pg.1 4613.71Total 8298.54

Cleaning Equipment and Supplies5-Dec-08

Name Cost Supplier SupplierBrooms 9.21 Liberman Sam's ClubLobby Dust Pan 14.99 Sam's ClubOven Brush 26 Sam's ClubBar towels 16 x 19 10.36 Sam's ClubRecycled tee Shirts 14.88 Sam's ClubSubTotal 75.44

All Non-Toxic Cleaners Meet Green Kitchen Certification Program RequirementsToliet Cleaner 2Multi Purpose Cleaner 8.67Stainless Steel Cleaner 5.87Dish Soap 17Pan Scrubbers 6.88White Vinegar 1.69Bleach 1Subtotal 43.11SubTotal 75.44Total 118.55


Competitive Analysis PRICING INDIRECT COMPETITION Updated Oct-08

Item Description Sam’s Club Food Lion Kroger WalMartMuffins 0.54 0.95 0.99 See NoteWhole Wheat Rolls 0.14 0.26 0.34 Croissants 0.25 0.4 0.99 French Bread 1.99 1.91 1.99 Sour Dough Bread — 3.37 2.99 Tuscan Boule — 3.49 — Hogie Rolls — 0.49 — Hot Dog/ Hamburger Buns 0.16 0.37 0.39 Kaiser Rolls — 0.57 0.59 Bagels — 0.79 0.99 Ecce Pane — 3.29 3.49 Ciabatta — 3.29 3.49 Semolina — 3.29 3.49 Harvest Grain — 3.29 3.49 Sour Dough Bread — 3.99 —

Note: WalMart bakery closed renovations



(Cont.)

PRICING BAKERIES Updated Oct-08

Arts Ect. Hot Cakes Wild Flowers Daily Grind Item Description Martinsville Charlottesville Roanoke MartinsvilleCroissant $1.50 $2.25 — $2.25Danish-Sticky Bun $1.25 $2.95 — —Scone $1.25 $1.95 — $2.25Muffin $1.25 $0.95 — $1.95Cookie $1.50 $0.99 $1.50 $1.50Bars $1.50 $1.95 $2.25 $2.25White Baguettes $2.50 $2.95 — —Sweet Potato White Dinner Rolls $0.95 $0.65 — — Foccacia (Bread by Loaf) — $3.25 $4.25 —Bagels $0.75 — — $1.50Slice Pie $2.00 — — — Whole Wheat Bread $4.25 $3.99 $4.25 — Multi-grain Bread $4.00 $3.99 $4.25 —Sour Dough Bread $4.00 $3.99 $4.25 —Olive Bread $3.85 $3.99 $4.25 —Brioche $4.50 $3.99 $4.25 —Challah $4.50 $3.99 $4.25 —Rye Bread $4.00 $3.99 $4.25 —Ciabatta $3.75 $3.99 $4.25 —Whole Wheat C’Berry Walnut $4.25 $3.99 $4.25 —

Bagels: (VA)Brudders $0.99 (NJ) Bagel Shops $0.90 (VA) Oodels of Bagels $0.70 (VA) Manhatten Bagels —



(Cont.)

Competitor A

Daily Grind

Similar to

Starbucks

10 East Church

Street (uptown)

Nice restoration

Sit down and

stay awhile

Community

meeting rooms

High end

Highest in

Community

Less than 1

yr

Gourmet Pannini

Sandwiches/

Good Location

Frozen

Product

Baked on

Site/Franchis

e menu

Sit and Stay/

Gourmet Coffees/

Panini Sandwich

Competitor B

Arts Ect. Full

Service

Breakfast &

Lunch

45 East Church

Street (Uptown)

Coffee/Wines

Sandwiches On

Variety Breads

Middle to High

end cost

Original

coffee shop

uptown Good

Reputation

Gift Shop &

Frame Shop

Breakfast and

Lunch

Name

doesn't fit

products

Slow Service

Diversified

Products Retail

products &

Framing;

Sandwiches &

Specialty Coffees

Competitor C

Binding Times

Breakfast, Lunch

115 Spruce

Street Druid Hills

Martinsville

Flavored

Coffees, Lattes,

Smoothies, Ice

Cream,

sandwiches

Middle to High

End/Compara

ble to Arts Etc.

3 Times

Relocated

Wireless Internet

& New/Used

Books/ Book

Signings/ SPCA

sponsor

Similar to

Arts Etc.

theme

Specialty is

Coffees,

Sandwiches, &

Reading Area

Competitor D

Gas Station

Multiple

Locations None

Mid-high

range pay for

convenience Steady

One stop

shopping

Not fresh or

unique

Dependant

on supplies

for fresh None

Competitor E

Food Lion

Multiple

Locations

Offer fresh

baked breads

and pastries-

frozen than

baked

Middle to Low

End - 1/2 price

of coffee

shops Steady

Lower Cost

/Quantity/multiple

products

Not fresh or

unique

Basic grocery

store

©2007 ESRI On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224 Page 1 of 1

6629 Greensboro Rd. Site Map6629 Greensboro Rd Martinsville-Henry County Latitude: 36.60127

Longitude: -79.861859Ridgeway, VA 24148 February 10, 2009

http://www.esri.com/bao

Market ProfileMartinsville-Henry County

©2008 ESRI On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224 2/10/2009 Page 1 of 8

6629 Greensboro Rd. 6629 Greensboro Rd 6629 Greensboro Rd 6629 Greensboro Rd

Latitude: 36.60127 Ridgeway, VA 24148 Ridgeway, VA 24148 Ridgeway, VA 24148

Longitude: -79.861859 Drivetime: 10 minutes Drivetime: 20 minutes Drivetime: 30 minutes

2000 Total Population 13,800 77,242 128,550 2000 Group Quarters 107 1,381 1,6972008 Total Population 13,459 74,041 125,7842013 Total Population 13,107 72,291 124,098 2008 - 2013 Annual Rate -0.53% -0.48% -0.27%

2000 Households 5,734 32,250 52,869 2000 Average Household Size 2.39 2.35 2.42008 Households 5,749 31,487 52,665 2008 Average Household Size 2.32 2.31 2.352013 Households 5,660 30,981 52,352 2013 Average Household Size 2.3 2.29 2.34 2008 - 2013 Annual Rate -0.31% -0.32% -0.12%2000 Families 4,103 21,904 36,923 2000 Average Family Size 2.84 2.86 2.892008 Families 3,967 20,632 35,616 2008 Average Family Size 2.83 2.88 2.892013 Families 3,817 19,888 34,783 2013 Average Family Size 2.84 2.89 2.9 2008 - 2013 Annual Rate -0.77% -0.73% -0.47%

2000 Housing Units 6,138 35,229 57,773 Owner Occupied Housing Units 74.3% 65.0% 67.8% Renter Occupied Housing Units 19.3% 26.6% 23.8% Vacant Housing Units 6.4% 8.4% 8.4%2008 Housing Units 6,298 35,958 59,765 Owner Occupied Housing Units 71.3% 61.4% 64.7% Renter Occupied Housing Units 19.9% 26.1% 23.4% Vacant Housing Units 8.7% 12.4% 11.9%2013 Housing Units 6,306 36,253 60,671 Owner Occupied Housing Units 69.4% 58.9% 62.3% Renter Occupied Housing Units 20.4% 26.6% 23.9% Vacant Housing Units 10.2% 14.5% 13.7%

Median Household Income 2000 $36,140 $30,854 $31,886 2008 $43,823 $38,471 $39,474 2013 $49,619 $44,163 $45,248 Median Home Value 2000 $83,391 $70,113 $71,111 2008 $163,052 $122,985 $118,655 2013 $170,035 $127,144 $122,671 Per Capita Income 2000 $20,426 $17,016 $16,763 2008 $24,344 $20,776 $20,336 2013 $27,051 $23,237 $22,643 Median Age 2000 40.9 39.6 39.3 2008 44.2 42.0 41.9 2013 45.9 44.0 43.8

Data Note: Household population includes per sons not residing in gr oup quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by total population. Detail may not sum to totals due to rounding.

Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2008 and 2013.







2000 Households by IncomeHousehold Income Base 5,738 32,398 52,996 < $15,000 18.9% 22.4% 21.8% $15,000 - $24,999 15.6% 18.2% 17.4% $25,000 - $34,999 13.9% 15.5% 15.4% $35,000 - $49,999 18.0% 18.2% 18.8% $50,000 - $74,999 18.4% 16.0% 16.6% $75,000 - $99,999 6.9% 5.2% 5.5% $100,000 - $149,999 4.9% 2.8% 3.0% $150,000 - $199,999 1.9% 0.8% 0.7%

$200,000+ 1.6% 0.9% 0.8% Average Household Income $47,950 $40,174 $40,275

2008 Households by Income Household Income Base 5,748 31,488 52,665 < $15,000 14.2% 17.5% 17.2% $15,000 - $24,999 13.1% 14.8% 14.2% $25,000 - $34,999 12.0% 13.2% 12.9% $35,000 - $49,999 16.6% 17.1% 17.6% $50,000 - $74,999 22.9% 22.4% 23.1% $75,000 - $99,999 9.3% 7.8% 8.1% $100,000 - $149,999 7.9% 4.9% 4.8% $150,000 - $199,999 1.7% 1.0% 1.0% $200,000+ 2.4% 1.3% 1.1% Average Household Income $56,363 $48,209 $48,052

2013 Households by Income Household Income Base 5,659 30,983 52,351 < $15,000 12.7% 15.5% 15.3% $15,000 - $24,999 11.6% 12.0% 11.8% $25,000 - $34,999 11.2% 12.6% 12.0% $35,000 - $49,999 14.8% 15.8% 16.0% $50,000 - $74,999 25.4% 25.0% 26.1% $75,000 - $99,999 10.1% 10.3% 10.4% $100,000 - $149,999 9.6% 6.2% 6.1% $150,000 - $199,999 1.8% 1.0% 1.0% $200,000+ 2.7% 1.5% 1.3% Average Household Income $61,948 $53,473 $53,083

2000 Owner Occupied HUs by Value Total 4,545 22,945 39,062 <$50,000 23.4% 30.0% 29.6% $50,000 - 99,999 38.8% 47.5% 46.3% $100,000 - 149,999 20.0% 13.7% 14.9% $150,000 - 199,999 9.1% 4.7% 5.1% $200,000 - $299,999 5.7% 2.5% 2.8% $300,000 - 499,999 1.7% 0.9% 0.8% $500,000 - 999,999 1.2% 0.6% 0.4% $1,000,000+ 0.0% 0.1% 0.1% Average Home Value $104,529 $83,586 $83,362

2000 Specified Renter Occupied HUs by Contract Rent Total 1,155 9,190 13,375 With Cash Rent 91.6% 92.6% 90.6% No Cash Rent 8.4% 7.4% 9.4% Median Rent $329 $317 $315 Average Rent $363 $322 $316

Data Note: Income represents the preceding year , expressed in current dollars. Household income includes wage and salary earnings, interest, dividends, net rents, pensions, SSI and welfare payments, child support and alimony. Specified Renter Occupied HUs exclude houses on 10+ acres. Average Rent excludes units paying no cash rent.








2000 Population by Age Total 13,802 77,241 128,551 0 - 4 5.2% 5.7% 5.8% 5 - 9 6.4% 6.2% 6.3% 10 - 14 7.1% 6.8% 6.7% 15 - 19 6.0% 5.9% 6.0% 20 - 24 4.3% 5.3% 5.3% 25 - 34 11.7% 13.0% 13.1% 35 - 44 15.9% 15.4% 15.6% 45 - 54 15.3% 13.9% 14.3% 55 - 64 11.9% 11.0% 11.0% 65 - 74 9.5% 8.9% 8.7% 75 - 84 5.4% 5.8% 5.4% 85+ 1.3% 2.0% 1.8%

18+ 77.3% 77.5% 77.4%

2008 Population by Age Total 13,458 74,043 125,786 0 - 4 5.1% 5.7% 5.8% 5 - 9 5.4% 5.7% 5.8% 10 - 14 5.8% 5.7% 5.8% 15 - 19 5.8% 5.8% 5.7% 20 - 24 4.9% 5.4% 5.3% 25 - 34 10.6% 11.9% 11.9% 35 - 44 13.5% 14.2% 14.4% 45 - 54 16.0% 15.2% 15.4% 55 - 64 14.8% 13.0% 13.2% 65 - 74 9.9% 8.9% 8.8% 75 - 84 6.2% 6.0% 5.6% 85+ 2.0% 2.5% 2.2% 18+ 80.1% 79.3% 79.1%

2013 Population by Age Total 13,106 72,291 124,101 0 - 4 5.0% 5.6% 5.6% 5 - 9 5.2% 5.4% 5.5% 10 - 14 5.6% 5.7% 5.8% 15 - 19 5.5% 5.6% 5.7% 20 - 24 4.8% 5.3% 5.2% 25 - 34 10.4% 10.9% 10.7% 35 - 44 12.0% 12.9% 13.1% 45 - 54 15.9% 15.7% 15.9% 55 - 64 16.1% 14.5% 14.7% 65 - 74 10.7% 9.4% 9.4% 75 - 84 6.2% 6.1% 5.8% 85+ 2.4% 2.9% 2.5% 18+ 80.8% 79.9% 79.5%

2000 Population by Sex Males 48.0% 47.5% 48.0% Females 52.0% 52.5% 52.0%










2000 Population by Race/Ethnicity Total 13,799 77,241 128,551 White Alone 76.3% 71.2% 74.7% Black Alone 21.2% 25.9% 22.6% American Indian Alone 0.1% 0.1% 0.2% Asian or Pacific Islander Alone 0.6% 0.4% 0.4% Some Other Race Alone 0.7% 1.4% 1.3% Two or More Races 1.0% 0.9% 0.8% Hispanic Origin 1.9% 3.2% 3.0% Diversity Index 39.6 46.2 42.7



2000 Population 3+ by School EnrollmentTotal 13,369 74,776 124,273 Enrolled in Nursery/Preschool 1.4% 1.4% 1.4% Enrolled in Kindergarten 0.8% 1.3% 1.4% Enrolled in Grade 1-8 12.5% 10.8% 10.9% Enrolled in Grade 9-12 5.2% 5.5% 5.4% Enrolled in College 2.8% 3.3% 3.2% Enrolled in Grad/Prof School 0.9% 0.5% 0.4% Not Enrolled in School 76.5% 77.2% 77.2%

2008 Population 25+ by Educational Attainment Total 9,814 53,100 90,104 Less than 9th Grade 7.9% 11.2% 11.5% 9th - 12th Grade, No Diploma 15.2% 16.9% 17.2% High School Graduate 29.6% 34.4% 35.0% Some College, No Degree 18.0% 17.5% 17.7% Associate Degree 7.5% 6.8% 6.7% Bachelor's Degree 14.3% 8.6% 7.8% Graduate/Professional Degree 7.6% 4.5% 4.1%

Data Note: Per sons of Hispanic Origin ma y be of any race. The Diversity Index measures the probability that two people from the same area will be from different race/ethnic groups.







2008 Population 15+ by Marital StatusTotal 11,261 61,366 103,926 Never Married 20.2% 22.2% 21.9% Married 61.7% 57.2% 58.8% Widowed 7.8% 9.3% 8.7% Divorced 10.3% 11.3% 10.7%

2000 Population 16+ by Employment StatusTotal 10,977 61,925 102,842 In Labor Force 59.6% 58.4% 60.0% Civilian Employed 56.2% 54.5% 56.4% Civilian Unemployed 3.3% 3.8% 3.5% In Armed Forces 0.1% 0.1% 0.1% Not in Labor Force 40.4% 41.6% 40.0%

2008 Civilian Population 16+ in Labor Force Civilian Employed 93.2% 92.2% 92.6% Civilian Unemployed 6.8% 7.8% 7.4%

2013 Civilian Population 16+ in Labor Force Civilian Employed 93.8% 92.7% 93.1% Civilian Unemployed 6.2% 7.3% 6.9%

2000 Females 16+ by Employment Status and Age of Children Total 5,825 33,108 54,263 Own Children < 6 Only 6.1% 6.5% 6.7% Employed/in Armed Forces 4.2% 4.2% 4.3% Unemployed 0.5% 0.5% 0.5% Not in Labor Force 1.5% 1.8% 1.9% Own Children < 6 and 6-17 Only 4.1% 4.7% 4.9% Employed/in Armed Forces 2.1% 2.7% 2.9% Unemployed 0.4% 0.4% 0.3% Not in Labor Force 1.6% 1.6% 1.7% Own Children 6-17 Only 20.1% 17.1% 17.3% Employed/in Armed Forces 15.1% 12.3% 12.7% Unemployed 0.9% 0.8% 0.7% Not in Labor Force 4.2% 3.9% 3.9% No Own Children < 18 69.7% 71.7% 71.1% Employed/in Armed Forces 30.2% 29.5% 30.5% Unemployed 1.4% 1.9% 1.9% Not in Labor Force 38.0% 40.4% 38.7%

Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2008.

©2008 ESRI On-demand repor ts and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224 2/10/2009 Page 5 of 8






2008 Employed Population 16+ by Industry Total 5,591 30,355 54,120 Agriculture/Mining 0.3% 0.5% 0.7% Construction 5.3% 8.0% 8.8% Manufacturing 26.5% 28.5% 28.4% Wholesale Trade 2.2% 2.0% 2.3% Retail Trade 12.8% 11.4% 11.2% Transportation/Utilities 3.7% 4.3% 4.7% Information 0.9% 1.1% 1.1% Finance/Insurance/Real Estate 5.3% 4.3% 4.2% Services 38.8% 36.9% 35.5% Public Administration 4.2% 3.1% 3.1%

2008 Employed Population 16+ by Occupation Total 5,590 30,352 54,120 White Collar 55.5% 46.9% 45.1% Management/Business/Financial 12.1% 8.6% 8.3% Professional 18.5% 15.7% 14.7% Sales 10.7% 9.8% 9.2% Administrative Support 14.2% 12.8% 12.9% Services 12.8% 14.1% 14.5% Blue Collar 31.7% 39.0% 40.3% Farming/Forestry/Fishing 0.1% 0.2% 0.4% Construction/Extraction 5.6% 7.1% 7.5% Installation/Maintenance/Repair 3.9% 5.0% 5.7% Production 15.0% 17.6% 17.5% Transportation/Material Moving 7.1% 9.0% 9.2%

2000 Workers 16+ by Means of Transportation to WorkTotal 6,056 33,102 56,800 Drove Alone - Car, Truck, or Van 84.8% 80.9% 80.9% Carpooled - Car, Truck, or Van 10.7% 15.0% 15.0% Public Transportation 0.1% 0.4% 0.4% Walked 1.3% 1.1% 1.2% Other Means 1.4% 1.0% 0.9% Worked at Home 1.6% 1.6% 1.6%

2000 Workers 16+ by Travel Time to Work Total 6,056 33,100 56,801 Did Not Work at Home 98.4% 98.4% 98.4% Less than 5 minutes 3.0% 2.7% 2.9% 5 to 9 minutes 14.1% 12.5% 10.7% 10 to 19 minutes 40.5% 39.8% 36.3% 20 to 24 minutes 15.4% 15.7% 15.7% 25 to 34 minutes 14.1% 13.5% 15.7% 35 to 44 minutes 2.0% 2.9% 4.3% 45 to 59 minutes 3.3% 5.4% 6.7% 60 to 89 minutes 3.4% 4.0% 4.0% 90 or more minutes 2.6% 2.0% 2.1% Worked at Home 1.6% 1.6% 1.6% Average Travel Time to Work (in min) 21.4 22.2 23.5

2000 Households by Vehicles Available Total 5,724 32,296 52,856 None 7.4% 10.3% 9.3% 1 29.7% 32.8% 30.4% 2 40.7% 35.2% 35.8% 3 16.5% 15.9% 17.4% 4 4.2% 4.3% 5.1% 5+ 1.5% 1.6% 1.9% Average Number of Vehicles Available 1.9 1.8 1.9








2000 Households by Type Total 5,734 32,250 52,869 Family Households 71.6% 67.9% 69.8% Married-couple Family 55.9% 49.3% 52.3% With Related Children 22.2% 20.0% 21.4% Other Family (No Spouse) 15.7% 18.6% 17.6% With Related Children 10.3% 11.8% 11.0% Nonfamily Households 28.4% 32.1% 30.2% Householder Living Alone 25.4% 28.7% 26.8% Householder Not Living Alone 3.0% 3.4% 3.3%

Households with Related Children 32.4% 31.7% 32.4% Households with Persons 65+ 27.7% 28.5% 27.6%

2000 Households by Size Total 5,734 32,250 52,869 1 Person Household 25.4% 28.7% 26.8% 2 Person Household 37.0% 35.1% 35.5% 3 Person Household 18.7% 17.7% 18.5% 4 Person Household 13.1% 12.2% 12.7% 5 Person Household 4.3% 4.3% 4.4% 6 Person Household 0.9% 1.2% 1.3% 7+ Person Household 0.5% 0.8% 0.8%

2000 Households by Year Householder Moved In Total 5,723 32,295 52,855 Moved in 1999 to March 2000 13.8% 15.1% 14.3% Moved in 1995 to 1998 23.8% 24.1% 24.0% Moved in 1990 to 1994 13.3% 13.5% 13.8% Moved in 1980 to 1989 18.3% 16.0% 16.7% Moved in 1970 to 1979 14.0% 12.6% 13.0% Moved in 1969 or Earlier 16.8% 18.7% 18.2% Median Year Householder Moved In 1990 1991 1991

2000 Housing Units by Units in StructureTotal 6,108 35,221 57,666 1, Detached 74.8% 71.5% 71.1% 1, Attached 0.9% 1.0% 0.9% 2 2.3% 2.7% 2.0% 3 or 4 2.2% 3.3% 2.6% 5 to 9 1.3% 3.1% 2.5% 10 to 19 0.8% 2.0% 1.5% 20+ 1.9% 2.1% 1.7% Mobile Home 15.7% 14.1% 17.5% Other 0.0% 0.0% 0.1%

2000 Housing Units by Year Structure Built Total 6,120 35,238 57,726 1999 to March 2000 1.9% 1.4% 1.7% 1995 to 1998 4.9% 4.9% 6.2% 1990 to 1994 6.2% 6.6% 7.2% 1980 to 1989 13.4% 13.3% 14.7% 1970 to 1979 22.5% 18.9% 19.5% 1969 or Earlier 51.2% 54.9% 50.7% Median Year Structure Built 1970 1967 1970

Source: U.S. Bureau of the Census, 2000 Census of Population and Housing.







Top 3 Tapestry Segments

1. Southern Satellites Southern Satellites Southern Satellites2. Prosperous Empty Neste Heartland Communities Salt of the Earth3. Salt of the Earth Salt of the Earth Heartland Communities

2008 Consumer Spending shows the amount spent on a var iety of goods and services by households that reside in the market area. Expenditures are shown by broad budget categories that are not mutually exclusive. Consumer spending does not equal business revenue.Apparel & Services: Total $ $9,489,791 $45,359,977 $75,222,167 Average Spent $1,650.69 $1,440.59 $1,428.31 Spending Potential Index 61 54 53Computers & Accessories: Total $ $959,456 $4,648,697 $7,627,630 Average Spent $166.89 $147.64 $144.83 Spending Potential Index 70 62 61Education: Total $ $5,026,198 $25,416,923 $40,678,747 Average Spent $874.27 $807.22 $772.41 Spending Potential Index 64 59 56

Entertainment/Recreation: Total $ $17,360,213 $80,404,343 $135,060,840 Average Spent $3,019.69 $2,553.57 $2,564.53 Spending Potential Index 81 69 69 Food at Home: Total $ $22,284,982 $105,941,640 $176,842,353 Average Spent $3,876.32 $3,364.62 $3,357.87 Spending Potential Index 79 69 69 Food Away from Home: Total $ $14,975,083 $71,547,064 $118,941,594 Average Spent $2,604.82 $2,272.27 $2,258.46 Spending Potential Index 76 66 66 Health Care: Total $ $21,161,151 $98,960,764 $166,039,827 Average Spent $3,680.84 $3,142.91 $3,152.75 Spending Potential Index 90 77 77 HH Furnishings & Equipment: Total $ $9,210,232 $42,599,380 $70,885,604 Average Spent $1,602.06 $1,352.92 $1,345.97 Spending Potential Index 70 59 59 Investments: Total $ $3,575,271 $16,541,256 $26,244,330 Average Spent $621.89 $525.34 $498.33 Spending Potential Index 61 52 49 Retail Goods: Total $ $124,836,262 $577,144,162 $971,773,298 Average Spent $21,714.43 $18,329.60 $18,451.98 Spending Potential Index 80 68 68 Shelter: Total $ $60,464,053 $285,927,988 $470,508,355 Average Spent $10,517.32 $9,080.83 $8,933.99 Spending Potential Index 68 58 58 TV/Video/Sound Equipment: Total $ $6,245,497 $30,226,267 $49,968,465 Average Spent $1,086.36 $959.96 $948.80 Spending Potential Index 76 67 66 Travel: Total $ $7,937,074 $36,340,181 $60,175,579 Average Spent $1,380.60 $1,154.13 $1,142.61 Spending Potential Index 73 61 61 Vehicle Maintenance & Repairs: Total $ $4,542,932 $21,074,247 $35,341,911 Average Spent $790.21 $669.30 $671.07 Spending Potential Index 80 67 68

Data Note: The Spending P otential Index represents the amount spent in the area relative to a national average of 100.

Source: Expenditure data are derived from the 2004 and 2005 Consumer Expenditure Sur veys, Bureau of Labor Statistics. ESRI.



Darla Main-Schneider 1014 Mulberry Road

Martinsville, VA 24112 (276) 632-0454

[email protected]

EDUCATION

The French Culinary Institute, New York, NY Jan 2009 Diploma • Intensive eight week course of study with 240 hours of hands-on training in artisanal

breads from France, Germany/ Middle Europe, Italy, and other countries. • Coursework also included owning/operating a bakery, introduction to diabetic and

gluten free baking, and advanced braiding techniques.

University of Wisconsin-Milwaukee, Milwaukee, WI May 2002 MBA, Executive Business Program Bloomfield College, Bloomfield, NJ May 1996 BS, Business w/Manufacturing and Operations Hawkeye Community College, Waterloo, IA May 1986 AS, Architectural and Construction

EXPERIENCE

MasterBrand Cabinets, Martinsville, VA 2005 – 2008 Materials Manager

Eaton Corporation, Forging Division, South Bend, IN 2005 - 1996 1999-2005 Production Manager Master Scheduler/Planner, Industrial Electrical Division, Watertown, WI

Allied Signal Aerospace, Teterboro, NJ 1996 - 1999 Production Planner Rotary Power International, Previously John Deere REDIV, WoodRidge, NJ 1992 - 1996 Production Control Supervisor John Deere Technologies, WoodRidge, NJ 1984 - 1992 Government Property Administrator

ADDITIONAL EXPERIENCE Volunteer at several functions for James Beard Foundation and God’s Love We Deliver Worked in all areas of Food Service during college days, including the Jefferson Inn, NJ

CERTIFICATIONS Lean Certification, University of Tennessee, 2001, Knoxville, TN Six Sigma Greenbelt Certification, 2000, Eaton Corporation, Watertown, WI APICS Classes, 1996-1998, Teterboro, NJ Numerous courses on Leadership and Management Skills, Diversity, Communication

One body, One planet. Eat well.

rising sun breads

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