Executive Summary

Artemide Auditing & Consulting AG (Artemide AC) is in the process of being formed as an
ongoing sole proprietorship owned and operated by Sandor Artemide AC. The company is a
spinoff of Daten Riffwald-Ennetmoos AG. Between the owners of Daten Riffwald-Ennetmoos
and Artemide AC there will be 25% cross-participation. This plan is written as a guide
for continuing and managing the business under the new company, and will also serve as the
basis for marketing proposals. The two objectives of Artemide AC are to generate a profit and to
grow at a challenging and manageable rate.
The mission of Artemide AC is to provide fast and reliable services in auditing and consulting to
small and medium businesses (SMB), individuals, and other organizations.
The keys to success for Artemide AC are: visibility to generate new business leads, networking
with other professionals, responsiveness, and quality.
The initial primary service offered will be auditing, although specialized fields will be
considered in future growth.
The overall objective is to focus the activities towards the specialized services (analyses,
investigations, startups, etc.) and to become a leader in this niche in the Luzern area. The
company projects growth to be ~10% of sales in the next three years.
The most important keys to success for Artemide AC are developing visibility to generate new
business leads, strong concentration on relationships with clients, and a high level of quality in
our services.
The cooperation between Daten Riffwald-Ennetmoos and Artemide AC is flexible--with the
objective to change rapidly if the market demands.
The sole proprietorship company "Sandor Artemide dipl. Wirtschaftsprüfer" was founded on 8
March 1996. In the first 10-month period, the company generated sales of $50,000.
Artemide AC is established in a separate office from Daten Riffwald-Ennetmoos AG, in
Luzern. Secretary and telephone response is assumed by Daten Riffwald-Ennetmoos.
There are four major classes of competition in the actual fiduciary business in Switzerland.
These include individual proprietors and small fiduciary and accounting offices and medium
fiduciary offices with between 6 and 25 employees, these offices are available for general
financial and tax consulting. There are also large auditing and consulting companies. These
companies have several hundred employees. They tend to operate more in the lucrative
consulting business. Banks, Assurances and other financial consultants are also new competitors
in this field. Banks are now active in start-up consulting, corporate finance, mergers and
acquisitions, and others.
Technology is, of course, very important to the success of Artemide AC. It is imperative that the
company stay up-to-date on technological developments and it will be important to devote a
reasonable portion of each year's revenues toward upgrading the equipment and software used in
normal operations.
Artemide AC will adopt a focused market strategy. Logical segmentation breaks the market
down into the following: Individuals, Investors, Small Businesses, Medium Businesses, Large
Businesses, and Authorities and Public Organizations. For our further development, we consider
Individual persons and Investors plus Small and Medium Businesses to be crucial.
For our business, we do not have main competitors. We have a lot of widely-sized competitors in
a vast market of services.This market environment gives ample opportunity for Artemide AC to
create and expand a niche in the chosen market fields. Finally, worth noting is the growth trend
for the general market, estimated between 5% and 10%, annually.
There are three different major opportunities (needs) in the fiduciary business over the next
years:

• Bookkeeping and other services related to the operative financial management (payroll,
cost-accounting, accounting for pension funds, etc.).

• Consulting and special mandates such as financial planning, business

evaluation, merger and acquisition valuation, special audits, etc.

• Legal Auditing (incl. IAS and other standards) as an independent and responsible
institution.

In addition, the company sees three primary market trends which seem to be most important in
our business.

• Rapid growth in the complexity of business that requires rapid adaptation in the strategy
and structures of companies.

• More litigation due to higher percentages of unsuccessful ventures.

• The growth of outsourced financial consulting.

All of this provides continuing opportunities for a dynamic company such as Artemide AC.
We believe our business is in a grand change. The competitors must be generalists and specialists
at the same time. For small and medium fiduciary businesses, a focus of one primary segment of
business is necessary. For example, if the "core" business is accounting, the other fiduciary
businesses like tax, auditing, consulting must be reduced to a general level. In the core business,
the company must be current with the services, while having the capacity to innovate (like
new accounting services related to the Internet).
Artemide AC's competitive edge is in the well-established reputation of Sandor Artemide who
has been in the consulting business for over a decade, and the company's ability to focus in this
niche market.
The company's sales strategy will be based on building long-term customer relationships, which
will result in repeat sales. The company estimates that revenues will be approximately $232,000
by Year 3, yielding profits. The company will manage its assets and create profits with no debt
financing. It does not anticipate any cash flow problems.
Sandor Artemide, the majority owner of Artemide AC, will assume strategic management
functions. Brigitte Artemide will be in charge of market research and customer support. Since no
major increases in personnel are expected in the next three years, Mr. Artemide will retain his
managerial functions throughout these years.

1.1 Mission
Artemide AC's mission is simple and straightforward:

• Purpose - Artemide AC exists to provide complete, reliable and high quality services to
SMBs, individuals, lawyers, and authorities. Services must give solutions and results!
• Vision - By providing innovative services, Artemide AC generates a name in Luzern and
the surrounding area.

1.2 Keys to Success

The keys to success for Artemide AC are:

• Developing visibility to generate new business leads.

• Relationships with clients (developing loyal, respectful, and intensive contact with both
clients and potential clients).
• Marketing/strategy and networking with other professionals.
• Collaboration with Daten Riffwald-Ennetmoos AG for generally fiduciary services and
IT services.
• Responsiveness to clients (fast response time for special problems).
• Quality (especially in reporting information).
• Excellence in fulfilling the promise.
• Openness: languages and willpower for creating interregional and international contacts.

1.3 Objectives
The objectives of this business plan are:

1. To provide a written guide for managing this business; a strategic framework for
developing a comprehensive tactical marketing philosophy.
2. This plan is not intended to obtain financing, it is purely for internal improvements.
3. The scope of this plan is to provide detailed monthly projections for the current plan year,
as well as yearly summaries for the following two years.
The objectives of Artemide Auditing & Consulting are:

1. The overall objective is to focus the activities towards the specialized services (analyses,
investigations, startups, etc.) and to become a leader in this niche in the Luzern area.
2. Cash flow - To generate sufficient cash flow to finance future growth and development,
and to provide the resources needed to achieve the other objectives of the company and its
owners.
3. Growth - To expand the business at a rate that is both challenging and
manageable, serving the market with innovation and adaptability. (Growth projected at 10%
of sales in the next three years.)

Company Summary

Artemide AC will be an ongoing company from the sole proprietorship company Sandor
Artemide dipl. Wirtschaftsprüfer with the following characteristics:

• The goal will be to continue the activities on a larger personal and organizational basis,
still with no debt financing.
• Artemide AC will assume operations of one of the Daten Riffwald-Ennetmoos AG's
divisions.
• Between the owners of Daten Riffwald-Ennetmoos and Artemide AC there will be a 25%
cross-participation.
• The cooperation between Daten Riffwald-Ennetmoos and Artemide AC is flexible--with
the objective to change rapidly if the market demands.

2.1 Company History

The sole proprietorship company "Sandor Artemide dipl. Wirtschaftsprüfer" was founded 8
March 1996. In the first 10-month period, the company generated sales of $50,000.
In the time of general recession, between 1996 and 2000, with a concentrated basis work, the
owner created and assured his independent existence. The name Artemide was made known, and
he has established a good professional reputation in Luzern.
Before starting his own business, Sandor Artemide acquired extensive professional experience as
listed below:

• 5 years ATAG Graff & Altern in Geneva, Switzerland.

• 3 years Ziegfeld in Bern, Switzerland.
• 4 years KUGN in Bienne, Switzerland.

2.2 Company Ownership

Artemide Auditing & Consulting AG will be incorporated in the city of Luzern by Sandor
Artemide, who will be the majority owner. Twenty-five percent of the company will be owned
by Daten Riffwald-Ennetmoos AG, the parent company.
2.3 Company Locations and Facilities
Artemide AC is established in a separate office from Daten Riffwald-Ennetmoos AG, in
Luzern. Secretary and telephone response is assumed by Daten Riffwald-Ennetmoos. In the same
building, on the first level, is established ATO Geistesblitz (sale and consulting of SMB software
sage-KHK).
The structure is well established and satisfies the needs of both Daten Riffwald-Ennetmoos and
Artemide AC. Both companies intend to optimize the office location in the future.

Services
Artemide AC will be the number one company in the Luzern area for specialized and
investigative services in the modern business environment. Artemide AC also offers both classic,
auditing, and general consulting services.

• Artemide AC will offer three main services - Auditing, Consulting, and Investigation.
• There appear to be four main classes of competition, as indicated under section 3.2.
• Fulfillment of services will be provided in the future by Sandor Artemide and other
equally qualified professionals.
• It's important to be current with the classic and special business software.

Detailed descriptions of these points are found in the sections below.

3.1 Service Description
Artemide Auditing & Consulting AG offers three main services:

1. Auditing - Financial data must be checked and confirmed, we consider this normal, as a
service related to auditing. Most of these services are legal audits in the sense of Swiss
company law. A Legal Audit is the most comprehensive assessment of the presentation of
financial data. By contrast, a Review is generally prepared for the assurance of the
management and as a minimum requirement of financial institutions for the propose of
extending credit. Finally an Analysis is limited on the plausibility and the ratios. An
Analysis is normally based on audited or reviewed financial statements.

An essential part of all audit activities is understanding the business environment in which a
company operates and to evaluate the risks of financial losses. In fact it's necessary to check
past financial statements, but the key for a modern audit is to have time to move from an
accounting approach to a planning approach--from present to future.

2. Consulting - Includes business planning, business evaluation, merger and acquisition,

start-up planning, restructuring, and business-succession planning, etc.
3. Investigation - Our auditing and business expertise provides us with the ability to
perform analysis, specialized audits, and valuation of businesses in business disputes, fraud,
or other cases of incertitude and disputes.
3.2 Competitive Comparison
There seems to be four major classes of competition in the actual fiduciary business in
Switzerland:

1. Individual proprietors and small fiduciary and accounting offices. The primary
business of these competitors is accounting and tax compliance (for individuals and
companies). This offices normally employ between 1 and 5 people. These offices deal in a
large spectrum on a general level, but without specialization. These offices are often
members of the STV.

2. Medium fiduciary offices with between 6 and 25 or more employees. These offices are
also dealing in a large and general spectrum. If there are several partners--with different
formation and specialties--these offices are available for general financial and tax
consulting. This offices are member of the STV or/and the TK.

3. Large auditing and consulting companies. These companies have several hundred
employees. They tend to operate more in the lucrative consulting business. Public
companies are normally audited by these companies. Large companies are normally not
interested in dealing with small and medium business. All large companies have an
international network.

4. Banks, Assurances and other Financial Consultants are new competitors. Financial
services are "in." Banks are active in start-up consulting, corporate finance, mergers and
acquisitions, and others.

3.3 Fulfillment
The fulfillment of services was provided in the past by the owner himself. The
ultimate delivery was the owner's expertise and problem solving capability, coupled with an open
mind and ease of communication. The end result is an established trust with complete customer
confidence and satisfaction.
In the future, the clients must also accept the work of other qualified personnel--it is necessary to
transfer and expand the established personal goodwill into company goodwill. This will only
be possible with qualified and motivated employees.
3.4 Technology
Technology is, of course, very important to the success of Artemide Auditing & Cconsulting. It
is imperative that the company stay up-to-date on the technological developments in the classic
business software like MS-Office, etc. as well as in the special software and tools for auditing,
financial planning, business planning, etc.
In addition, it will be important to devote a reasonable portion of each year's revenues toward
upgrading the equipment and software used by Artemide AC in its normal operations.

Market Analysis Summary

Artemide Auditing & Consulting AG will adopt a focused market strategy.

• Logical segmentation breaks the market down into the following: Individuals, Investors,
Small Businesses, Medium Businesses, Large Businesses, and Authorities and Public
Organizations. Descriptions are provided below.
• The largest and most logical target markets for Artemide AC at the present are small and
medium businesses. In a new "Financial Industry" Individuals and Investors become an
important market segment.
• For our business, we do not have main competitors. We have a lot of widely-sized
competitors in a vast market of services. This market environment gives ample opportunity
for Artemide AC to create and expand a niche in the chosen market fields.
• Finally, worth noting is the growth trend for the general market, estimated between 5%
and 10%, annually.

4.1 Market Segmentation

The following chart and table reflect the estimated market segmentation and growth for this
business.

• Individual persons and Investors

• Small Businesses - Defined as businesses with 1 to 24 employees, this is the second
largest and fastest growing segment in our region.
• Medium Businesses - 25 to 499 employees.
• Large Businesses - 500 or more employees.
• Authorities and Public Organizations

4.2 Target Market Segment Strategy

For our further development, we consider the following market segments to be very important:

• Individual persons and Investors.

• Small and Medium Businesses.

Artemide AC will focus its marketing strategy primarily on these market segments.

4.2.1 Market Needs

There are three different major opportunities (needs) in the fiduciary business over the next
years:
 1. Bookkeeping and other services related to the operative financial management (payroll,
cost-accounting, accounting for pension funds, etc.).
2. Consulting and special mandates.
o Financial-Planning
o Business-Planning
o Business-Evaluation
o Merger & Acquisition
o Startup-Planning
o Restructuring
o Business Succession-Planning
o Coaching in Financial-Managing
o Recovery
o Special Audits, Reviews
o Analyses
o Investigation, Forensic Services
o Other
3. Legal Auditing (incl. IAS and other standards) as an independent and responsible
institution.

We think that the need for consulting and other specialized fields has a strong growth potential.

4.2.2 Market Trends

Three primary market trends seem to be most important in our business:

• Trend 1- (most important) Rapid growth in complexity of business in an ever-changing

market and competitive environment needs continuous and rapid adaptation in both strategy
and structures of companies.

• Trend 2- (moderately important) In the future there will be a percentage of unsuccessful

ventures resulting in more litigation, which, in turn, will emphasize the need for specialized
audits, investigation, restructuring, etc.

• Trend 3- (least important) Predicted continued growth in consulting because companies

will be unwilling to pay fixed costs of salaries, choosing instead to treat specialized
financial knowledge and needs as variable costs from external sources.

Economically it is more expedient to acquire specialized services from a consulting firm that has
its own specialized employees.

4.2.3 Market Growth

As noted in the previous section, several factors are predicted to continue well into the next
decade, not the least of which we estimate the annual market growth rate between 5% and 10%.

4.3 Service Business Analysis

The fiduciary and consulting business for the local area is already well established, yet still
allows ample opportunity for us. This is supported by the following points:

• Already in existence are a large number of firms - we think that most of the small and
medium firms are operating in a limited spectrum of traditional fiduciary services
(accounting and tax) and they do not have enough knowledge and/or time for entering the
field of specialized services - so we have new participants like banks, assurances, lawyers,
and others entering the market.

• Customers in the fiduciary business tend to be loyal, relying on the same consultant for
future needs once a relationship has been established - this fact requires establishing a good
and intensive personal relationship with client. This, in the large, "big 6," firms, is often not
realizable because of staff turn over and inaccessibility of personnel.

• The globalization of markets will increase the demands for expansion of new services
related to our business.

We believe our business is in a in a period of grand change. The competitors must be generalists
and specialists at the same time. For small and medium fiduciary businesses, a focus of
one primary segment of business is necessary. For example, if the "core" business is accounting,
the other fiduciary businesses like tax, auditing, consulting must be reduced to a general level. In
the core business, the company must be current with the services, while having the capacity to
innovate (like new accounting services related to the Internet).
For our business, we do not have main competitors: We have many competitors in diversified
services. More important than the competitors, is the need to get established in the right market
and to develop this market with a strong and flexible strategy.

4.3.1 Competition and Buying Patterns

Competition in the general field of business consulting in the Luzern area is quite intense.
Although numerous established companies offer a variety of services to different customer
segments, Artemide Auditing & Consulting AG considers competition in our focus market niche
of small and medium businesses to be modest. Customers in this segment strongly rely on the
consultant's professional qualifications and the ability to come up with viable solutions in a time-
and cost-effective manner.
Strategy and Implementation Summary
Artemide AC will offer auditing, consulting, and investigation services to small and medium
businesses in the Luzern area. The company will focus on providing excellent customer service,
and that will generate favorable client referrals and increase customer retention.
5.1 Competitive Edge
Artemide Auditing & Consulting's competitive edge is in the well-established reputation of
Sandor Artemide who has been in the consulting business for over a decade. Combining his
professional expertise with the financial, marketing, and technical support of Daten Riffwald-
Ennetmoos AG, the company is positioned to further entrench itself in the growing market of
small and medium business consulting in the Luzern area.
5.2 Sales Strategy
The company's sales strategy will be based on building long-term customer relationships, which
will result in repeat sales. Customer service and 'face time' with clients will be aimed to maintain
a high level of customer retention. The charts and table below outline the Sales Forecast for the
next three years.

Management Summary

Sandor Artemide, the majority owner of Artemide AC, will assume strategic management
functions. Brigitte Artemide will be in charge of market research and customer support. No
major increases in personnel are expected in the next three years.
6.1 Personnel Plan
The following table outlines the two-person management system of Artemide AC.
Financial Plan
The following sections include the annual estimates for the standard set of financial tables.
Detailed monthly pro-forma tables are included in the appendix.
7.1 Important Assumptions
This information is presented in the table below.

7.2 Key Financial Indicators

The Benchmark chart below uses index values to compare past and future financial indicators.
The bars show relative change, not absolute values.

7.3 Break-even Analysis

With our average monthly fixed costs, Artemide will surpass break even consistently throughout
the next year of operations.
 7.4 Projected Profit and Loss
The projected profit and loss information is presented in the table and charts below.

7.5 Projected Cash Flow

The projected cash flow and cash balance information is presented in the chart and table below.

7.6 Projected Balance Sheet

The projected balance sheet information is presented in the table below

7.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 8721.01 - Auditing services, are shown for
comparison.