MADE IN AMERICA

Business Plan

Ellie Anderson CEO

Paul Dau CTO
Jared Britson CFO
Sterling Nielsen COO
Updated 12/4/14

Table of Contents:
1 EXECUTIVE SUMMARY
1.1 Business Concept
1.2 Industry Overview
1.3 Target Market
1.4 Competition and Competitive Advantage
1.5 Team and Offering
1.6 Business Model and Finances
2 TEAM
2.1 Management Team
2.2 Compensation
2.3 Board of Advisors
2.4 Organization Chart
3 COMPANY AND PRODUCT DESCRIPTION
3.1 Mission Statement
3.2 Company Description
3.3 Business Model
3.4 Stage of Development
3.5 Trademarks, Domain
4 MARKETING PLAN
4.1 Industry Profile
4.1.1 E-commerce Retail
4.1.2 U.S. Manufacturing
4.1.3 Retail
4.2 Seasonal Trends
4.2.1 Holiday Shopping
4.2.2 Fourth of July Trends
4.3 Market Trends
4.3.1 Cultural Trends
4.3.2 Technology Trends
4.4 Benefits of E-Commerce
4.5 Target Market
4.6 Positioning
4.6.1 Product
4.6.2 Price
4.6.3 Place
4.6.4 Promotion
4.7 Consumer Promotion
4.7.1 Google Display
4.7.2 Search Engine Optimization
4.7.3 Facebook Advertising
4.7.4 Ad Space on other American-Made Forums
4.7.5 Political Campaigns and News Coverage
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4.7.6 Social Media Marketing

4.7.7 YouTube Channel
4.7.8 Referral Strategy
4.7.9 Military Discount
4.7.10 Teacher Discount
5 COMPANIES
5.1 Cold Calling
5.2 Collaboration with sponsors of already existing American-made sites
6 GROWTH PLAN
6.1 Phase 1
6.2 Phase 2
6.3 Phase 3
6.4 Capital Requirements
6.5 Personnel Requirements
6.6 Exit Strategy
6.7 SWOT Analysis
7 BARRIERS TO ENTRY
7.1 Competitive Analysis
7.1.1 Competition for Consumer Spending
7.1.2 Where Consumers Shop
7.1.3 Major Competitors
7.1.4 Amazon
7.1.5 Average Industry Prices
7.2 Potential Partners/Contractible Companies
8 CRITICAL RISKS
9 OPERATIONS PLAN
9.1 Administrative Policies, Procedures, and Controls
9.1.1 Receiving Orders/Billing Customers
9.1.2 Paying the Suppliers
9.1.3 Collecting Accounts Receivable
9.1.4 Distribution of Products
9.1.5 Communicating Orders to Companies
9.1.6 Quality Control Procedures
9.1.7 Accounting Systems
9.1.8 Reporting to Management
9.1.9 Staff Development
9.1.10 Inventory Control
9.1.11 Handling Warranties and Returns
9.2 Sales Policies and Procedures
9.2.1 Customer Purchase Procedure:
9.2.2 Monitoring the Company Budget
9.2.3 Security Systems
9.2.4 Policy and Terms of Condition
9.3 Documents and Paper Flow

9.4 Day-to-Day Activities

9.5 Location
9.6 Customer Service
10 FINANCIAL PLAN
10.1 Financial Assumptions
10.2 Income Projections
10.3 Cash Requirements
10.4 Sources of Financing
10.4.1 Founders
10.4.2 Investors
10.5 Statement of Equity
11 APPENDIX
11.1 Sarah Anderson Resume
11.2 Jared Britson Resume
11.3 Paul Dau Resume
11.4 Sterling Nielsen Resume
11.5 Total Expected Consumer Spending in the United States in 2014, by seasonal event
(in billion US dollars)
11.6 When it comes to online shopping, the convenience factor rules.
11.7 MIA Cash Flow Statement Year 1
11.8 MIA Cash Flow Statement Year 2-3
11.9 Growth Chart
11.10 Income Chart
11.11 Facebook and Twitter
11.12 Average Industry Prices

1 EXECUTIVE SUMMARY
1.1 Business Concept
Made in America (MIA) will be founded on January 1st 2015 as a for-profit LLC to provide an
online, e-commerce marketplace that sells all American-made products. MIA will provide
convenient customer access to quality products that support American manufacturing to create
jobs and stimulate the US economy. MIA will enter the e-retail market offering apparel and
accessory products from trusted American brands, but will progressively expand into other
product categories including luggage, toys, gear and equipment, shoes, health and beauty
products, and home goods.

1.2 Industry Overview

As an online platform, MIA will enter the e-retail industry selling apparel and accessories. The
ecommerce industry is currently $263 Billion and is expected to grow to $414 Billion in 2018 In
2013, the total market size in the USA for apparel was approximately $298,862.5mn and is
expected to grow to $319,538.8mn by 2018.

1.3 Target Market

MIA will target middle-upper class, patriotic Americans, who are care about where their products
are manufactured. These customers seek to make an impact on the US economy and promote
the creation of jobs through their everyday consumer purchases. MIA will reach these
customers through social media advertising, search optimization, Google Display advertising,
and other marketing strategies.

1.4 Competition and Competitive Advantage

MIA will compete directly with Amazon and other online retailers such as Ebay, traditional
retailers, and brick and mortar stores. MIA uniquely aggregates high quality, American-made
goods and offers the customer a convenient way support the American economy and keep jobs
in America. Additionally, it gives companies who find pride in making their goods domestically an
opportunity for longevity, which sets us apart from other companies competitively. MIA does not
anticipate new companies to enter this market, due to the barrier of entry of MIAs projected
future size and magnitude.

1.5 Team and Offering

MIA will remain a relatively flat organization with CEO, CFO, CTO, COO and one part time web
developer. Ellie Anderson will serve as CEO and marketing director, with direct reports Paul
Dau, CTO; Jared Britson, CFO; and Sterling Nielsen, COO.

1.6 Business Model and Finances

MIA will operate under the storefront and affiliate marketing business models. With the
storefront, MIA will purchase products as inventory and mark-up 50% of manufacturer price.
For affiliate marketing model, MIA will take a 5% cut of the final sale. MIA is seeking $247,000
which will enable us to become operational through website development and initial inventory
purchases. This money will be funded by a combination of personal investment and external
investment of high-net worth individuals. Each founder will invest $12,000. Investors will be

given 10% equity in the company in exchange for one $100,000 investment, and the remaining
$107,000 will be paid back to investors beginning at the end of year 4.
MIA projects the following sales and profit during the first two years:
Year One
Year Two
Sales:
$147,600.47 $216,147.31
Cash:
$16,261.62
$22,908.62

2 TEAM
2.1 Management Team
Ellie Anderson: Chief Executive Officer
Qualifications: Business manager/Executive of Blue Key National Honor Society; Cofounder/Business manager of Avodah Journal of Christian Thought; Co-President of Thursday
Night Bible Study; Spanish major and management studies concentrator; Human Resources
intern at Thrivent Financial; relevant courses management, entrepreneurship, and marketing;
summer staff leader at Summit Ministries in Colorado.
Responsibilities: Plans, organizes and leads partner meetings; monitors and motivates team to
ensure quality performance; guides and makes executive decisions on growth and direction of
the company; ensures and facilitates effective communication between team members,
company clients, and customers; conducts strategic planning and plan implementation; leads
company in accordance with mission statement; leads marketing plan execution and develops
marketing materials. 11.1 Sarah Anderson Resume
Jared Britson: - Chief Financial Officer
Qualifications: Finance Intern at All-Star Financial; Economics and Math major; Management
emphasis; and a Statistics concentrator; Relevant courses: Accounting, Managerial Accounting,
Mathematics of Finance, Management, and Entrepreneurship.
Responsibilities: Conducts controllership duties which hold the CFO responsible for reporting
accurate and timely historical financial information of the company; conducts treasury duties
which implies that the CFO is responsible for the current financial conditions; invests company
money; determines the capital structure of the company--mix of debt, equity and internal
financing); economic strategy and forecasting; takes responsibility for companys past, present,
and future financial success, and how MIA can capitalize off of key financial information.1 11.2
Jared Britson Resume

Paul Dau - Chief Technology Officer

Qualifications: Assistant at Revel Sports, online retailer; Retail at Knechts Nurseries and
Landscaping; History Major; and Management studies concentrator. Relevant courses:
Management, entrepreneurship, computer science, website design.

1 http://www.investopedia.com/ask/answers/04/042204.asp

Responsibilities: Responsible for production and upkeep of the technical aspects of the
website, and oversees technological social media; Responsible for familiarity of regulations of ecommerce and future technological technologies prevalent in the field.
11.3 Paul Dau Resume
Sterling Nielsen: Chief Operations Officer
Qualifications: Co-Captain of the St. Olaf Mens Basketball Team; Economics major and
management studies concentrator; Business Management intern at Avera Mckennan Health
System; relevant courses management, entrepreneurship, and economics.
Responsibilities: Responsible for managing the day-to-day operations of the company,
routinely reporting and meeting with CEO about progress of the company and its goals,
responsible for development, design, operations, and improvements of the systems by which
MIAs products and services are produced.
Sterling Nielsen Resume 11.4

2.2 Compensation
Each of the founding members will be compensated $10,000 annually. 11.7 MIA Cash Flow
Statement Year 1

2.3 Board of Advisors

David Anderson: Investment Manager; will provide financial support, help identify
macro-economic trends, and valuable investment opportunities.
Bob Emfield: Retail Advisor and Investor; will provide support on company
growth, and give insight into success in the retail sector.
John Sogn: Business Litigation Lawyer; will guide MIA in legal procedures and
other processes.
Alan Kirk: CEO Bedrock Manufacturing; will advise on how to attain patriotic
customers through offering valuable insight from his experience in running Shinola and
Filson.
Elise Kingman: Accountant; provide insight into bookkeeping and other financial
documentation.
Aaron Smith: Insurance Agent with State Farm; will give advice on what type of
insurance to get and when it is needed.

2.4 Organization Chart

3 COMPANY AND PRODUCT DESCRIPTION

3.1 Mission Statement
MIA believes in the future of the United States of America; through actively investing in small to
medium-sized businesses that manufacture goods in the United States, Americans can
individually impact the American community and re-establish the independence of this nation.
In 2013, the U.S. ran a $335 billion deficit in consumer products, with consumer goods
constituting more than 80% of U.S. imports.2 If every American citizen chose to redirect $3.33 to
buy domestically-made goods each year, 10,000 new jobs would be created. It is projected that
moving manufacturing back to America has the potential to create 2.5-5 million American jobs
this decade-- between 600,000 - 1.2 million factory jobs and 1.9 - 3.5 million jobs in
corresponding industries such as retail and transportation.3 MIA believes in the power of the
people to stimulate economic growth, revitalize this countrys independence through supporting
American companies, and strengthen the American dream.
2 http://www.moneynews.com/NealAsbury/American-made-jobs-manufacturing/2013/12/19/id/542728/
3 http://www.moneynews.com/NealAsbury/American-made-jobs-manufacturing/2013/12/19/id/542728/

MIA will give consumers the ease and access American-made goods, with the understanding
that buying American will:4
Provoke job creation.
Pour consumer dollars back into the US economy, instead of overseas.
Protect and preserve the environment because American manufacturers must
adhere to strict regulation to reduce pollution and carbon footprint.
Conserve energy, time, and resources typically required by importing goods.
Supports human rights because American companies are held to specific labor
standards.
Support democracy and capitalism, and strengthen small businesses in the USA.

3.2 Company Description

MIA will provide a central, online location where patriotic, conscientious consumers have
immediate access to thousands of certified Made in the USA products. Partnering with highquality American heritage brands, MIA will present consumers with a diverse product offering to
satisfy their needs, beginning with apparel and accessories. Consumers will no longer need to
do research and investigation to discover brands that support the mission of bettering America.
MIA offers a one-stop, comprehensive platform where consumers can compare, filter, and
purchase American-made, quality products with the convenience. MIA will uniquely serve as a
trusted destination for citizens to active actively and conveniently support American brands that
fuel economic growth and the creation of jobs in the USA. Through shopping with MIA,
customers have a direct way to support the mission of building a better, stronger, more
financially independent United States of America.

3.3 Business Model

MIA will operate as a for-profit Limited Liability Company with a goal of steady expansion and
continual capital acquisition. As an e-commerce retailer, MIA will conduct business under two
models: storefront and affiliate marketing.5 With the storefront business model, MIA will
purchase products from American companies as suppliers and sell the products directly with
50% mark-up from the wholesale price. With the affiliate marketing model, American companies
will sell their products on miamarketplace.com, and MIA will receive a 5% cut of the total sale.

3.4 Stage of Development

Currently, MIA will enter the e-commerce market as a platform for selling apparel and accessory
products from American brands. After gaining customer and product base according to planned
growth model, MIA will progressively expand to include products from other categories, such as
luggage, kitchen, toys, adventure gear, equipment, shoes, health and beauty, and home goods,
in which customers will be able to confidently compare and purchase all of their consumer
needs while supporting the undergirded mission of MIA-- to support jobs in the USA through
intentionally choosing goods manufactured in the USA.

4 http://www.madeintheusa.com/why-buy-american.php
5 http://smallbusiness.chron.com/types-ecommerce-business-models-2447.html

3.5 Trademarks, Domain

Domain Name: miamarketplace.com; miamarketplace.info; miamarketplace.biz

Registration cost $17
Trademark for MIA logo: $325

4 MARKETING PLAN
4.1 Industry Profile
4.1.1 E-commerce Retail
By 2018 the e-retail will account for 11% of total retail sales6
Currently, e-retail accounts for 8% of total retail sales
E-retail sales are expected to grow from $263 billion in to $414 billion by 20187 8
This increase is a 9.5% compound annual growth rate
The dollar growth rate over this period is 57.4%
E-retail sales of apparel and accessories are expected to reach $54.2 billion this
year in the United States, which accounts for 20.9% of web sales 9
This statistic and the two previous to it stress the importance of
maintaining a visually pleasing site, that is easy to navigate through, and that is
easy for the user to access
78% of online shoppers are between the ages of 18-54 10
These people are within the age range that MIA is targeting and
will thus be within the group that accounts for the increase in e-retail sales
According to internet retailer, since 2012, the percentage of people who will do
their online shopping strictly with online-only retailers has increased from 44% to 50% 11
This statistic shows the importance of having a well maintained
and updated website over the course of these seasons
Revenue will be at its highest during these seasons
According to KRC Research, 68% of business owners responded that online
communications provides the best return on the money spent managing their brand
Social media can be used as effective method of advertising

6 http://www.internetretailer.com/2014/05/12/us-online-retail-sales-will-grow-57-2018
7 U.S. e-retail sales
8 Forrester Research Inc.
9 http://www.internetretailer.com/2013/04/25/us-e-commerce-sales-could-top-434-billion-2017
10 http://www.statista.com/statistics/239428/number-of-us-online-shoppers-since-2010/
11 https://www.internetretailer.com/2013/10/07/shoppers-will-browse-online

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4.1.2 U.S. Manufacturing

Currently U.S. manufacturing represents 67% of private sector spending and
30% of its productivity growth.
For every $1 spent of U.S. manufacturing, there is a $1.48 return
the U.S. economy.
Over the past 3 years 500,000 plus jobs have been created by U.S.
manufacturing and the trend is expected to continue. 12
In 2015, the gap between the cost to manufacture in China and deliver to the
U.S. versus to manufacture in the U.S. will be less than 10%.
This is leading to more products Made in the USA being sold in
stores.
From research done by the market research firm YouGov, 81% of respondents
said that they would buy American-made goods over others because it will support the
economy.13
Therefore these goods need to be made readily available.

4.1.3 Retail
According to Euromonitor Passport, the market size of the US Apparel market in
2013 was $298,862.5mn, with a projected market value of 319,538.8mn in 2018.14
Year-on-year Growth % of Apparel Retail market in the US:15
2014-15 . 1.5%
2015-16 . 1.7%
2016-17 . 1.9%

4.2 Seasonal Trends

4.2.1 Holiday Shopping
According to the National Retail Federation holiday sales are expected to
increase by 4.1% this year in the retail industry.
Sales in November and December account for nearly thirty percent of a retailer's
annual sales. 16
Clothing is the second highest selling item over November and December behind
toys and games

12 http://business.time.com/2013/04/11/how-made-in-the-usa-is-making-a-comeback/
13 http://industryedge.nationalhardwareshow.com/2013/06/the-rising-demand-for-made-in-the-usaproducts

14 http://www.portal.euromonitor.com/portal/statistics/rankcountries
15 http://www.portal.euromonitor.com/portal/statistics/tab
16 http://research.nrffoundation.com/Default.aspx?pg=55#.VID_L1fF8cp

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 According to the article Peering Through the Digital Window many people will
start shopping extremely early17
Over 50% before Thanksgiving
60% will shop on Thanksgiving weekend
Nearly 81% of shoppers said that they will rely on discounts in order to make
their purchases this holiday season18
People in the 35-49 years old range buy the most during the holiday season19
People in the 25-34 years old range plan to increase their holiday
budget by more than any other group (19%)
Total expected consumer spending in the US in 2014 according to holiday, 602.1
billion US dollars will be spent on the winter holidays.20 11.5 Total Expected Consumer
Spending in the United States in 2014, by seasonal event (in billion US dollars)

4.2.2 Fourth of July Trends

Midwesterners plan to spend the most at an average of $211 on retail products,
while Northeasterners will spend the least, an average of $171.21
According to a survey by Snapette 43% of consumers planning to buy apparel for
the fourth of July will do so online.
The survey also states the following, In terms of July Fourth apparel spending,
15% of consumers will spend $25 or less, while 23% will spend $25-$50; 22% will spend
$50-$75; and 20% will spend $75-$100. Only 14% plan to spend more than $100 and
6% plan to spend more than $200.22

4.3 Market Trends

4.3.1 Cultural Trends
According to Internet Retailer, 63% of shoppers say that they will showroom
products as opposed to 56% in 201223
During holiday seasons, 94% of people say that discounts will be the most
important factor in buying products, as opposed to 84% in 2012
This statistic highlights that it will be important to offer holiday
deals during the respective seasons
17 https://www.thinkwithgoogle.com/articles/2013-holiday-shopper-intentions.html
18 https://www.thinkwithgoogle.com/articles/2013-holiday-shopper-intentions.html
19 https://www.thinkwithgoogle.com/articles/2013-holiday-shopper-intentions.html
20 http://www.statista.com/statistics/319562/us-consumer-spending-by-seasonal-event/
21 http://usatoday30.usatoday.com/money/industries/retail/story/2012-06-28/fourth-of-julyspending/55965344/1

22 http://www.chainstoreage.com/article/july-fourth-apparel-shoppers-go-online
23 https://www.internetretailer.com/2013/10/07/shoppers-will-browse-online

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 In a survey conducted last year, 39% of people said that they would return a
product if they have already bought it and find out that the price has been lowered, and
45% said that they would use competitor comparison online before buying a product
Convenience of online shopping 24 11.6 When it comes to online shopping, the
convenience factor rules.
Can shop whenever they want
Quicker to shop online than at stores
Easier to shop online than at stores
Easier to compare
Better variety

4.3.2 Technology Trends

Facebook and Twitter
Facebook can be a powerful business tool:
It allows MIA to create a public business page at no cost
It will assist in marketing MIAs mission and
products to a wide audience
Facebook and Twitter can allow customers to provide MIA with
instant feedback
These sites can spread the value that MIA places on providing a
platform for people to purchase high-quality, American manufactured products
Facebook and Twitter allow MIA to potentially reach millions of people
There are currently 1.23 billion users on Facebook that could
possibly be marketed to.25
Twitter has 232 million monthly active users that could be
marketed to.26
MIA can employ the sites group feature to network with its target audience
According to International Business Times, 55.5% of Facebook
users are between the ages of 25-542711.11 Facebook and Twitter
Online Blogging
Online blogging is another method that MIA can use to promote its value and
products at a low cost.
Brings traffic to the main site
More product sales
Additional stream of advertising income
Customer service tool
24 http://www.pwc.com/en_us/us/retail-consumer/publications/assets/pwc-us-multichannel-shoppingsurvey.pdf

25 http://thenextweb.com/facebook/2014/01/29/facebook-passes-1-23-billion-monthly-active-users-945million-mobile-users-757-million-daily-users/

26 http://www.businessinsider.com/twitter-total-registered-users-v-monthly-active-users-2013-11
27 http://www.ibtimes.com/facebook-gets-older-demographic-report-shows-3-million-teens-left-social-network-3years-1543092

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Gives the target market info that they are looking for
Make your mission and voice heard28

E-commerce
Marketing Tools for Online Shopping
Search Engine Marketing is the most effective customer
acquisition tactic
E-mail marketing is the best tool for customer retention
Retailers report a 42% e-mail open percentage on
smart phones
Mobile is becoming a top priority for most retailers
47% of shoppers find things via advertisements
found on their mobile devices29
26% of shoppers use social media platforms like facebook and
twitter to shop for apparel items 30
Individuals are 67% more likely to buy from brands
that they follow on Twitter
Individuals are 51% more likely to buy from brands
that they follow on Facebook
28% of shoppers look at online reviews to determine what stores
they are going to shop at for apparel 31
In research done by BigCommerce, they analyzed a set of e-commerce sites to
see what the top ten things were that influence an individuals purchase decision. When
the customer was asked they could give multiple answers 32
Top 8 influences :
56% said product quality
49% free shipping
35% easy returns
33% customer reviews
30% visual search
26% easy navigation
24% checkout ease
24% multiple options

28 http://www.entrepreneur.com/article/84232
29
https://www.forrester.com/Search+Marketing+Tops+Online+Retail+Customer+Acquisition+Tactics+According+to+Sho
porg+Forrester+Research+Study/-/E-PRE7204

30 http://www.mediabistro.com/alltwitter/digital-apparel_b27744
31 http://www.mediabistro.com/alltwitter/digital-apparel_b27744
32 http://blog.hubspot.com/marketing/why-people-buy-factors-influence-purchase-descision

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4.4 Benefits of E-Commerce 33

Enables businesses to reach a wider geographic spectrum, which means more
customers
Cost reduction and improved efficiencies
Eliminates the need for store fronts and the costs that come along
with it
A limited amount of labor required in fulfilling orders
There is good web traffic growth for a startup company34
10% per week for the early stages of a startup
Growing a large email file is the first step in creating and effective
online marketing program
Very important for retaining customers
Ongoing success of an organization is determined by its ability to effectively
communicate with its customers

4.5 Target Market

Middle-upper class, patriotic American citizens
Avid users of technology and online shopping.
Care about convenience to accommodate busy schedules.
Willing to pay extra for quality, American-made products.
Middle, upper class people who care about the origin of products they consume.
Desire to fulfill patriotic responsibility to support the country through changing
their purchasing habits.
Primarily concerned with quality and price.
This demographic will include, but not limited to:
The American Patriot 35
38% of people said that buying American is part of being patriotic
In a survey by Perception Research Services International, 83% of people said
that they pay attention to where their products come from and 76% said they are more
likely to buy something with the mad in America designation.
63% willing to pay more for an American-made product 36
According to The Fashion Consumer: Identification Analysis, individuals in the
VALS segment believers have the ideals that MIA will target:37
Conservative
33 http://resources.convio.com/rs/convio/images/2012-Convio-Benchmark-Report.pdf
34 http://www.quora.com/What-is-a-fair-growth-rate-for-a-web-startup-for-financial-projections

35 http://industryedge.nationalhardwareshow.com/2013/06/the-rising-demand-for-made-in-the-usa-products
36 http://industryedge.nationalhardwareshow.com/2013/06/the-rising-demand-for-made-in-the-usa-products
37 http://www.prenhall.com/divisions/ect/app/Diamond_temp/source_files/dia76827_ch04.pdf

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Conventional
Concrete traditions
Established codes
Purchase established brands

Middle-Upper Class citizen

Households with an income of $50,000-$69,999 spend 3.2% of their income on
clothing and shoes ($1,600-$2,240)
Households with an income of above $150,000 spend 3.7$ of their income on
clothing and shoes ($5,550 or more)38

4.6 Positioning
With a distinctive demographic of patriotic Americans, MIA will position products on the website
from American heritage brands that meet the Made in USA manufacturing and production
standards according to the following criteria:
Convenient: MIA will create value for the customers by prioritizing convenience
in the construction of an easily navigable shopping platform with custom filters, robust
search, and comprehensive brand offering in various product categories. The
transaction will be safe and quick with seamless integration of shopping cart technology.
Customers purchasing on MIA will have confidence in the products, the service, and the
delivery.
Trusted quality: MIA will position itself as a provider of quality products certified
American-made. Customers will no longer have to do extensive research before making
informed purchase decisions because MIA will provide access to the trusted Americanmade products. Through this diverse product offering, MIA will increase customer
awareness of trusted, quality American brands.

4.6.1 Product
MIA will begin with a narrow focus of quality, American-made apparel and accessory brands.
The e-commerce site will feature a wide-array of apparel products, including, but not limited to,
shirts, pants, sweaters, outerwear, hats, belts, wallets, blankets. MIA partners will select the
products they desire to sell on the MIA platform, as long as the products meet the established
standards. Products will be categorized by items in order to provide an easy route to product
comparison and price awareness; there will also be a brand view, which will allow customers to
shop the collections of specific brands. Companies will use MIA to build their brand and tell
their story through space for images and text when the consumer clicks on their company name.
Apparel and Accessory brands examples that MIA will feature:
Filson Apparel
Pendleton woolens
Woolrich
38 http://www.npr.org/blogs/money/2012/08/01/157664524/how-the-poor-the-middle-class-and-the-rich-spend-theirmoney

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American Apparel
Texas Jeans
Stetson hats
Wigwam socks
Shinola watches
7 for All Mankind
Bedhead sleepwear
Bill Khakis
Carhartt
Lucky Brand
Vermont Flannel
Rag and Bone
Splendid
Hanky Panky Ltd.
Karen Kane
Iron and Resin

4.6.2 Price
For the storefront model (3.3 Business Model) price will be set based on the suggested retail
price of the products from the manufacturers, or 50% above wholesale price. Products sold on
MIA will not be additionally marked-up to accelerate profit, but instead will provide customers
with the best possible prices according to the suggested retail value.

4.6.3 Place
MIA will be a public domain on the Internet that is able to be accessed by anyone in the world.
Through the partnership with the domestic companies, the majority of the purchases will be
assumedly from the within the USA. With the utilization of USPS and FedEx, MIA has the
capacity to ship to anywhere in the world.

4.6.4 Promotion
Advertising for MIA will be two-fold:
Direct customer traffic to the MIA e-commerce platform.
Raise awareness of the national impact of domestic manufacturing and the
support of small American businesses in order to encourage consumers to change their
buying behavior to buy American.

4.7 Consumer Promotion

4.7.1 Google Display
To reach the customers who already are concerned with the mission of MIA, advertising
campaigns will be created monthly and pushed out through Google Display. Through this
advertising platform, advertisements will project onto related sites that are relevant to the target
market MIA seeks to inform.
Google Display offers39:
39
http://static.googleusercontent.com/media/www.google.com/en/us/ads/displaynetwork/pdfs/legacylearning
.pdf

17

 Contextual targeting tool that builds out relevant websites and places ads
accordingly.
Managed placement tool allows for more control on what sites ads show up.
Ability to prohibit ads from showing up on specified sites.
Campaign dashboard tool with tracking and metric data to guide investment and
show value.

4.7.2 Search Engine Optimization

In order to reach customers who do not know to come directly to the website, MIA will optimize
the placement of miamarketplace.com on search engines, to be in the top 3 on any search of
this business type, and a top 5 listing of any product MIA carries. This will help ensure that
customers will find thethe MIA website quickly and without stress while browsing the internet.
MIA will focus these efforts on the following search engines:
Google
Yahoo
Bing

4.7.3 Facebook Advertising

Through specific targeting towards customers that fit the target market, MIA will create ads that
call attention to supporting America and serve as a call to the patriotic duty of all Americans.
Facebook ad campaigns will switch once a month. CEO and COO will be active producers of
the advertising content.
Each ad launched will seek to educate and directly call customers to visit the site
in order to see the product offering and convenience to make purchases of their favorite
brands and other similar, trusted American heritage brands.40
Marketing messages will particularly target Facebook users who currently like
any of the companies on the platform that meet the certification standards of Made in the
USA. These Facebook users will be most likely to want to investigate other companies
with similar quality.

4.7.4 Ad Space on other American-Made Forums

Part of the marketing budget will be spent on buying space on the already-existing forums
geared toward gaining momentum of the Made in the USA movement.
Critical point of entry into the target market because these people have already
dedicated their time to posting and getting involved to educate American consumers on
the influence of their purchases.
Ad space will be utilized to direct forum members to the purchasing platform.
Founders will actively post on the forums to encourage traffic and promotion
through word of mouth and sharing via social media sites.
Posts will be managed and reposted every other week.

40 http://blog.hubspot.com/blog/tabid/6307/bid/33319/10-Examples-of-Facebook-Ads-That-ActuallyWork-And-Why.aspx

18

4.7.5 Political Campaigns and News Coverage

MIA will seek to gain customers through reaching out to political leaders who promote growth of
American economy through investing in American business and job creation through
manufacturing in the USA.
Through positive publicity and strategic placement during election times, public
figures inherently support the creation of new jobs through the promotion of citizens to
buy domestically-made products to fuel national economic growth.
MIA will build relationships with prominent political figures and even the morning
news programs to highlight the mission of MIA and gain visibility in the public eye.

4.7.6 Social Media Marketing

Facebook: MIA will create a page that will be updated three times per week
highlighting a product or brand and promoting domestically manufactured purchases.
Instagram: Photos and promotions will be posted using photos from the
companies. These images will display trends and promote brands, while leading people
to the MIA website. These will also be education posts and photos that help illuminate
the value of buying American.
At startup, founders will take responsibility to post daily updates to the pages and
communicate with customers in rapid response throughout the day.
CEO will be the producer of these ad campaigns utilizing already purchased
Adobe Photoshop tools and other content creation applications.

4.7.7 YouTube Channel

Through monthly videos that spotlight American companies featured on the MIA
site, consumers will have a better understanding of what is happening behind the scenes
at these companies.
Videos will give contracted companies an opportunity to share their stories and
communicate their value proposition, specifically why they have chosen not to outsource
their manufacturing.
These videos will range from interviews with company executives sharing their
companys story, how its made type demonstration of behind the scenes
manufacturing in their US plants, informational chalk board styled videos, and other
promotional short clips.

4.7.8 Referral Strategy

MIA will institute a referral program in which customers will be awarded a $10 gift
card credit to their account when they invite a friend.
The reward will be given when the friend or family member creates an account
and makes their first purchase.
This will help involve MIA customers as MIA marketers because it is to their own
personal benefit to get the word out about the platform.
This will increase attractiveness as MIA works to gain customers and also
company partners because the more impressions on the MIA website, the more products

19

will be sold through the platform; therefore, this referral program will give companies
more assurance in the credibility of MIA and site impressions.

4.7.9 Military Discount

MIA will give active duty military personnel 5% discount at check-out as an expression of
gratitude for their service.
This will increase the credibility of MIA in living out the values of the mission to
support America.
This strategy will attract military personnel and their families, as well as draw the
attention of other shoppers of MIAs strong dedication to the nation.

4.7.10 Teacher Discount

MIAG will give a 5% teacher discount to customers who are able to provide a valid teacher
email from a school in the USA.

5 COMPANIES
To solicit contracts to sell the products of American companies, MIA will execute the following
strategies to get companies to join forces to streamline the consumer purchasing process.

5.1 Cold Calling

Much of the work in establishing this startup will depend on building relationships
with American companies; founders will spend significant amount of time calling and
visiting these clients in order to solidify participation on the MIA site.
MIA will provide value through increased visibility for their products, association
with the social and economic mission of supporting the country, and ease/security of
transaction and interaction with the consumer.

5.2 Collaboration with sponsors of already existing American-made sites

Websites dedicated to furthering the buy American movement have already
created extensive networks of sponsors, American companies who manufacture their
goods in the USA.
MIA will tap into these networks because the companies who have agreed to be
listed on those sites have demonstrated actionable interest in defining their company as
MIA. The e-commerce platform would be a strong next-step in giving customers direct
access to products, like Amazon.
Some of these sites are included below:
http://www.americansworking.com
http://www.madeintheusa.com
http://www.americanmadematters.com
http://madeinusachallenge.com/made-in-america-master-list/

6 GROWTH PLAN

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6.1 Phase 1
Will be the initial growth stage of MIA during years one through three, and will be
defined by rapid growth, a lack of specific systems, financing by investing, and negative
net income.
The company will maintain an initial product offering of apparel and accessories.
MIA will develop consistently growing revenue and solid customer base before
making significant investments or product additions to the website.

6.2 Phase 2
Will be the continuation of this initial growth phase, and will continue until MIA
experiences more steady growth on a quarterly basis.
The company expects that this stage will begin around year four and will continue
for three to four years. Ideally, more systems will be put in place to improve the
productivity of MIAs day-to-day function.
Company systemization will involve moving to a larger and more permanent
solution for inventory storage and distribution.
As revenue statistics begin to grow the company will begin adding employees to
manage the increase in product orders.
MIA will progressively acquire new product offerings in other product categories
such as technology and luggage when revenues hit established benchmarks.
MIA will Implement Subscription Plan as an additional revenue stream at
beginning of Year 4.
Consumers will have the option to subscribe to MIA through
agreeing to a yearly fee of $75 in order to receive free shipping on all purchases
that year.
The subscription enlists them in monthly emails with product deals
and spotlight on different brands. This increased commitment to the company
will give MIA a platform for retaining customers and pushing more product
visibility and site impressions.

6.3 Phase 3
Will be the mature growth stage of MIA, and will begin when the growth rate of
Phase 2 hits an inflection point, having consistent, predictable growth with a diverse
product offering in multiple product categories.
MIA will continue to expand as it acquires more contracts with USA businesses.
New Products and Services - Scale new products and services with Profit Growth
(Generate Statistics later).
Possible future distribution centers - once MIA has a level of inventory that
exceeds 600 sqft. of storage space.
All consumer goods/products hopefully! - Make a quick list - look/cite at VOC Food, luggage, decorations, knick knacks, technology, pet care, recreation goods.
Projected growth based on financial projections in previous models/ determine a
benchmark for how much new revenue new product offerings will give us. Think about
this, but probably not too much time.

21

6.4 Capital Requirements

Company growth will require capital capacity for new inventory and website
development, in creating the new webpages for new product.
In addition, an increase of inventory will require a large space for product, thus
capital will be needed for the rental/purchase of a warehouse.

6.5 Personnel Requirements

Each member of the MIA team can realistically handle 450 packages a day,
equaling 1800 packages a day for four members.
Once this capacity is within a reasonable distance to current workload, additional
personnel will be required, working for minimum - 15$/ hour.

6.6 Exit Strategy

MIA will critically consider two exit strategies dependent on place of growth and size of
company:
MIA would consider being acquired by a company such as Amazon for a
reasonable valuation.
MIA would consider going public (IPO) if sufficiently large. This is in alignment
with our mission statement because a public offering puts the company in the hands of
American citizens.

6.7 SWOT Analysis

Strengths:
Growing e-commerce trends
Positive socio-economic impact on US economy and jobs
Projected growth of Apparel industry
Gives customers an easy way to do good for society and satisfy their consumer
needs
Quality product offering
Relationship with trusted, American brands
Weaknesses:
Requires education/awareness
Difficulty in capturing buyers attention and gaining visibility at startup
Imitatible
Limited scope at startup
Low barriers to entry
Opportunities:
Expansion to other product categories
Free shipping for subscribed customers
Support from politicians
Expand retail revenue model by having greater stock of wholesale products
Threats:
Price pressure from non-American-made products
Competition from e-retail giants, like Amazon
Macro-economic pressures that decrease consumer desire to purchase
American-made

22

7 BARRIERS TO ENTRY
Unique value proposition to support US companies.
Aggregate of products from wide variety of certified American brands.
Duel revenue model allows flexibility for the companies who contract with MIA to
choose which route they want to follow.
MIA will strive to guarantee customer satisfaction through rigid customer service
and quick response to questions or concerns.
Strong marketing presence on Made in USA forums to attract customers right
away who are already committed to the mission of MIA.

7.1 Competitive Analysis

7.1.1 Competition for Consumer Spending
According to the Bureau of Labor Statistics and the U.S. Department of Labor, housing items
and healthcare items are the two items with the largest growth over the past year, as far as what
consumers spend their income on. As part of the retail industry, MIA will have to compete with
these two industries for the income of various individuals.
Percent change on expenditures for health items was 2.1%
Percent change on expenditures for housing items was 1.5%
All together, health and housing costs account for over 51% of the average
households budget.
In addition to those two major categories, transportation (17.6%) and entertainment (5%) both
compete for major chunks of the remaining income that individuals have to spend. These are
both important, because according to the American Express Spending and Saving Tracker,
people have to budget for these activities ahead of time.

7.1.2 Where Consumers Shop

Apparel retail competitors:41
According to ATKearney physical stores account for approximately 90% off all
retail purchases, making them the most popular destination to buy clothing, but the
number of people planning to buy apparel online is expected to grow substantially over
the next three years.
Coming in at 5% are people who purchase buy using multiple channels
Social media
Mobile devices
Other outlets

7.1.3 Major Competitors

Retail Stores: American Eagle, Banana Republic, Gap
E-retail sites: Amazon, eBay, Express, Belk
American Made Retailers: American Apparel, American Giant, Carhartt, Brooks
Brothers
Department Stores: Target, Walmart, Costco
41 http://www.atkearney.com/documents/10192/4683364/On+Solid+Ground.pdf/f96d82ce-e40c-450d-97bb884b017f4cd7

23

7.1.4 Amazon
The dominant competitor in the electronic retail sphere is Amazon.
Amazon had a revenue of $74.45 billion in 2013, selling a vast range of goods-from retail goods, to consumer electronics, to AmazonFresh produce, to Amazon games
and video stream.
Amazon Prime is the membership program that offers members free two-day
shipping, and access to a broad selection of music and video live stream.
MIA will be competing with the often superior pricing of these items. But MIA is
unique in its promise of quality and higher-end retail merchandise guaranteed
manufactured in the USA.

7.1.5 Average Industry Prices

MIA will sell high-quality products with a wide range of prices.42 11.12 Average
Industry Prices

7.2 Potential Partners/Contractible Companies

FedEx

Walmart

Contracts for shipping

Recently committed to increasing the sourcing of their Americanmade goods by $50 billion dollars by 202343
American Made Companies
Need to be high-quality
Could be competitors if they dont contract with us
Examples: American Apparel, Taylor Stitch, Levi Strauss, Baldwin
Denim

8 CRITICAL RISKS
Critical risks for MIA include:
If the website gets hacked.
If companies do not contract to sell their products with MIA.
If a company or customer files a lawsuit against MIA.
If a breach of credit card information occurs.
If an employee commits an act that breaks trust of executives.
If there are problems with product certification of Made in USA.
If MIA is not competitive in price.
If products are not delivered on time.
If domain is lost.
If site traffic is overestimated.
If conversion rates are not accurate.
If there is an excess of inventory because of overestimated demand.
42 http://www.cottoninc.com/corporate/Events/Cotton-Forum/Cotton-Forum-2012/5%20Mexico%20June
%20Final.pdf

43 http://cdn.corporate.walmart.com/51/c5/350e038c4f0cb9f171b5b5171055/us-manufacturing-faq.pdf

24

9 OPERATIONS PLAN
9.1 Administrative Policies, Procedures, and Controls
9.1.1 Receiving Orders/Billing Customers
Customer places the initial order on the Made In America website, and an
accounts receivable is sent to the customers credit card company.
If the credit card company rejects the customers transaction attempt, the
transaction will be stopped at this time.
MIA will employ Shopify Cart Software to facilitate credit/debit card transactions.44
Made In America will assume that credit card companies will pay MIA
immediately. The credit card company will then bill the customer directly.
A typical credit card transaction charge is 1.51% plus $0.10. (Gift Cards would
not have this charge)

9.1.2 Paying the Suppliers

There are two cases:
Affiliate Marketing Model: Supplier sells their product with Made In America as
the middleman.
Contracted company will pay the supplier the entire selling price of
their product minus Made In Americas 5% percentage cut of the sale, and the
credit card charges.
Storefront Model: Made In America buys products from suppliers to sell on the
website
Supplier will charge Made In America an Accounts Payable to pay
back the purchase. The company will wait 30 days to pay off the Accounts
Payable unless there are discounts for hasty payments.
Made In America will only make product purchases from suppliers
when they are extremely confident that they can pay off the Account Payable
within 30 days of the purchase.

9.1.3 Collecting Accounts Receivable

Accounts Receivable will be on a 28 day schedule from the date of purchase.

9.1.4 Distribution of Products

Distribution of products purchased on Made In Americas website to the
customers have two separate cases:
If a company sells their product through Made In Americas
website, that company will be responsible for any required distribution services.
If Made in America is the seller of a product they had previously
purchased and marked-up to retail value, Made In America will be responsible for
distribution. This will be accomplished through a partnership with USPS for
smaller items, and FedEx for larger items.
44 http://www.shopify.com/tour/shopping-cart

25

 Any distribution conducted by Made in America will be made from the Home
Offices distribution center until sales levels require a larger distribution center. At this
time, distribution channels will be relocated to this new location.

9.1.5 Communicating Orders to Companies

For the marketing affiliate model, web developers will integrate a system into the
website that will automatically transfer order and customer information out to the
respective American companies to fill the order and ship the product.
For the storefront model, MIA will already have the inventory to fill the order

9.1.6 Quality Control Procedures

To achieve a high level of quality control, MIA will utilize the Six Sigma doctrine at
every level of its business. This doctrine ensures the following traits:
That continuous efforts to achieve stable and predictable process
results are of vital importance to business success.
Manufacturing and business process have characteristics that can
be measured, analyzed, controlled and improved.
Achieving sustained quality improvement requires commitment
from the entire organization, particularly from top-level management.
Every item will be inspected and properly packaged before being passed along to
USPS or FedEx to help decrease damaged shipments.
MIA will have an automated email sent to customers with a short post-purchase
survey. Results will be aggregated and reviewed weekly by the COO.

26

9.1.7 Accounting Systems

Made In America will utilize the GAAP (Generally Accepted Accounting
Principles) as its framework of guidelines for financial accounting. Thus, any financial
statements--Income Statements, Statements of Cash Flow, Balance Sheet--generated
by Made In America will follow these standards in their preparation and presentation.

9.1.8 Reporting to Management

Citing the organizational tree for Made In America, the CFO, CTO, and COO will
all report to the CEO. The CEO will then report to the board of advisors. Should more
levels of the company be created, those employees will report to the employee directly
above them in the organizational tree.
Reporting to a member of Management should always be an opportunity to
improve the companys performance and operations. As a result, certain steps should be
considered when reporting to upper management.
Assessing the report objectives
Planning the report
Constructing the report
Distributing the report
Collecting and analyzing feedback

9.1.9 Staff Development

Management level positions will be required to attend workshops or lectures to
better themselves as managers on a biannual basis.45 The types of clinics that will be
attended by employees is dependent on their respective department. For example,
employees in the finance department of this company will be required to attend more
financially-oriented seminars.
Training for all new employees will be required upon becoming an employee of
Made In America. These training sessions will range from more broad company-wide
informational sessions to position-specific training. Training will also be required by
employees when new softwares and protocols are introduced into the company
environment.
The goal of Made In Americas staff development is to create an environment
within the company that promotes constant learning in its employees.
MIA will implement bi-annual performance reviews for employees. The CEO will
meet with each employee to discuss the employees conduct, business metrics, and
attitude with candid discourse about clearly established expectations and goals in line
with the company growth and mission.

9.1.10 Inventory Control

Inventory will be constantly and vigorously analyzed to ensure that the company
does not by buy more products than there is in current available storage space, and that
the company does not consciously buy products that will be stored over 30 days.
45 https://www.one-report.com/guide/reporting.htm

27

9.1.11 Handling Warranties and Returns

Warranties will be dealt with according to the specifications of the product
manufacturers. MIA will facilitate the relationship between the customer and the
manufacturer.
Returns for products sold by Made In America will be accepted for two weeks
after the shipment arrives at the consumers address, and return postage will be paid for
by the company. Any products that arrive damaged will either be met with a fullreimbursement, or a replacement product of the same price or type.

9.2 Sales Policies and Procedures

9.2.1 Customer Purchase Procedure:

9.2.2 Monitoring the Company Budget

Supervision of the Company Budget will be the responsibility of the CFO.
Any significant company decisions that result in large-scale purchases or loans
must be approved by the CFO and the CEO.

28

 It is the CFOs and CEOs responsibility to ensure that the company conducts
their business in a way that meets its budget on a year-to-year basis.

9.2.3 Security Systems

In order to secure customer transactions and stand46ard website security, MIA will
extensively utilize the following protective methodologies in its website:
PCI Compliance
Data Encryption
Safe and Secure Login Screens
Constantly Updated Operating Systems
Annual Security Assessments by outside companies

9.2.4 Policy and Terms of Condition

Terms and Conditions of Employment will require agreement by all employees of
Made In America. These will be created by the COO with an annual update that the
CEO must approve.
Terms and Conditions of Sale will require agreement by all customers purchasing
products on Made In Americas website. This document will be a form saying that the
customer agrees to pay the entire amount of their purchase either at the point of sale, or
at a later date. This agreement will be created by the CFO with an annual update that
the CEO must approve.
Terms and Conditions of Companies will require agreement by all companies
who are using Made In America to sell their products. This document will be a form
laying out the rules and regulations behind being a part of the Made In America
community. This will include statistics such as Made In Americas percentage cut of
sales.

9.3 Documents and Paper Flow

All documentation of customer purchases will be kept on file digitally by Made In
America for up to 5-years after the purchasing date. Additionally, documentation of any
purchases made by the company will be kept on file for the same period. After the fiveyear period is over, the invoices can be shredded or discarded, but the basic statistics of
the transactions will be kept for forecasting purposes.
Documentation of any interaction employees have with company clients as well.
The reasoning behind this is that if there happens to be any disagreements that lead to a
lawsuit between Made In America and another customer or company, that Made In
America would be adequately prepared from a documentation standpoint.
All financial and accounting information about Made In America will be
documented on a permanent basis. This includes: cash flow statements, income
statements, balance sheets, loan information, paysheets, and sales statistics.
46 http://www.businessbee.com/resources/technology/security/online-payment-security-5-steps-to-ensure-safetransactions/

29

 Storage of any documents will be done electronically, and will be backed up on a

separate, secure server on a weekly basis.

9.4 Day-to-Day Activities

Day-to-Day operations will take on a large array of differing tasks. However, the majority of
which can be explained with the following:
Communication with customers, including receiving orders and handling
customer service calls.
Communication with the companies that have product offerings on MIA. This will
largely entail maintaining positive relationships and handling purchase orders.
Employees will also be required to handle all distribution requirements. The will
entail the employee getting all shipping information, packaging the order, and shipping
the product out via the mail service provider.
Marketing content creation and publication responsibilities. This requires handling
the general execution of the companys marketing plan and networking with companies
to gain more product offerings for the website.
Maintaining up-to-date financial information to record cash flow and manage the
financial statements.

9.5 Location
MIA will operate online.
A single room space will be dedicated to the business as an office space in the
CEOs house.
A 600 square foot garage will be used to store inventory to accommodate the
inventory from the retailer revenue model.

9.6 Customer Service

Customer Service will serve as a major quality control component of MIA.
Founders will rotate shifts working customer calls to ensure strong customer
satisfaction and immediate problem resolution.
Quality of business must be constantly improving, so a Customer Service record
system in Excel has been developed to record and track problems from customers.
A confirmation email will be sent to a customers at point of purchase with
shipping information.
A thank-you email will be sent after product has been successfully delivered.
This email will contain a message of encouragement, and a link to related products in
which the customer will be prompted to continue shopping on MIA.

10 FINANCIAL PLAN
10.1 Financial Assumptions
There is an average mark-up for retail sales of 50%. This will be used to
approximate sales projections.47
47 http://www.entrepreneur.com/article/193986

30

Assume for sales revenue projections:

Average number of unique visitors on a startup website as 159.3
48
customers
Average conversion rate is 5.31%49
Average person spends $1604 per year on apparel50, and 50% of
their purchases will be made on MIA.
50% of what average apparel purchases each year will be
purchased using MIA e-commerce platform51
To calculate sales revenue, the following calculation has been made:
(($1604/12 months)(50%)(159.3 customers) = $10,646.55 for first month of

sales
E-retail sales are expected to grow at a rate of 57% (dollar growth rate), with an
compound annual growth rate of 9.5%52. MIA will assume 30% growth rate per year after
startup.
Compound annual growth rate for apparel industry is 1.3%53.
The average advertising budget for online retailers is 5-7%. MIA will utilize 6% of
sales to promote the company to customers and companies54.
Based on the requirements of the Secretary of State, LLCs with a total value
below $500,000 have an $0 minimum fee. Income of the partners will be taxed on their
individual income according to federal and state income tax rates55.
In order to create an advanced online e-commerce platform from scratch, MIA
will outsource web design at startup. At an average $50 per hour, working full-time for 6
months designing, implementing, testing, and launching the site, MIA will pay 4
contracted designers a total of $196,000 for startup.56
To maintain advanced functionality, MIA will staff one full-time developer as a part
time employee at startup for $4,000 a month.
In order to secure customer transactions, MIA will utilize the following protective
softwares:
48 http://www.mediacollege.com/internet/statistics/successful-sites.html
49 http://www.wordstream.com/blog/ws/2014/03/17/what-is-a-good-conversion-rate#
50 http://www.bls.gov/news.release/cesan.nr0.htm
51 http://www.bls.gov/news.release/cesan.nr0.htm
52 http://www.internetretailer.com/2014/05/12/us-online-retail-sales-will-grow-57-2018
53 http://www.portal.euromonitor.com/portal/dashboard/index
54 http://smallbusiness.chron.com/average-marketing-advertising-budget-company-30993.html
55 http://www.nolo.com/legal-encyclopedia/minnesota-state-business-income-tax.html
56 http://www.fastcompany.com/1841912/true-costs-launching-startup

31

 McAfee Small Business Security package (15 devices protected at

23.85 per month)57
Shopify Cart Software Professional package ($79/month)58
Assume $1,000 website protection fees per year
Assume 30% yearly sales during Christmas season. Assume revenue increases
during patriotic times, July (Independence Day) and November (election time).
Assume income of advertisement will be total pageviews divided by 1,000 x
$1.20 = Revenue Earned59

10.2 Income Projections

MIA will have a net positive cash flow in the first year during September. The following 2 months
will be negative, however MIA will end the first year with a positive net cash flow. As all startup
costs come from investors all positive net cash flow will be profit.
11.9 Growth Chart, 11.10 Income Cart, 11.7 MIA Cash Flow Statement Year 1 , 11.8 MIA Cash
Flow Statement Year 2-3

10.3 Cash Requirements

MIAs cash requirements are $240,000 for startup. This price includes the $196,000 website that
will be the platform for the business, as well as initial inventory and various legal fees, and
miscellaneous charges.
MIA will need additional financing at the start of the 2nd year. This is due to the low predicted
sales for the middle of the year. This additional financing of $15,000 will keep the companys
current cash positive. After the 2nd year however, projection shows that the company will be self
sufficient.

10.4 Sources of Financing

MIA will receive the total of $255,000 of investment from two primary sources: founders
personal investing and outside investors.

10.4.1 Founders
Each of the 4 founders of MIA will put forth $12,000, adding up to $48,000. This is essential both
to decrease the amount of financial sourcing that is coming from the outside, but also to show
outside investors the stake that they have in the company.

10.4.2 Investors
The remaining $207,000 in investment will come from outside investors. MIA will pitch the
company to an already established network of high-net worth individuals with interest in startup
ventures. These investors have expressed interest:
Bob Emfield, Founder of Tommy Bahama
57 http://www.shopmcafee.com/store/mfesmb/en_US/pd/ThemeID.36633000/productID.306353400
58 http://www.shopify.com/pricing
59 http://blogs.imediaconnection.com/blog/2011/11/18/projecting-online-ad-revenue/

32

Alan Kirk, CEO Bedrock Manufacturing

Mark Evenstad, CEO Upsher Smith
Bill Sanford, Sanford Hospitals

MIA will assume that one $100,000 investment will come from one investor in exchange for 10%
equity in the company. The other $107,000 investments will be repaid to the individuals
beginning after the fourth year of operation with a 2-3% interest rate per year.

10.5 Statement of Equity

MIA will be divided according to the following distribution:
30% Ellie Anderson
20% Jared Britson
20% Sterling Nielsen
20% Paul Dau
10% - Outside Investor Bob Emfield

33

11 APPENDIX
11.1 Sarah Anderson Resume

34

11.2 Jared Britson Resume

35

11.3 Paul Dau Resume

36

11.4

Sterling Nielsen Resume

37

38

11.5 Total Expected Consumer Spending in the United States in 2014, by

seasonal event (in billion US dollars)

11.6 When it comes to online shopping, the convenience factor rules.

39

11.7 MIA Cash Flow Statement

Year 1

40

11.8 MIA Cash Flow Statement Year 2-3

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11.9

Growth Chart

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11.10 Income Chart

11.11 Facebook and Twitter

11.12 Average Industry Prices

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