RDJ Catalog Incorporated

A Pennsylvania Corporation

 

BUSINESS PLAN 2007

 

Principals: Daniel W. & Olga I. Merrick

 

                                                                  858 Rt. 446                                                                                           125 West Main

                                                            Smethport, PA  16749                                                                             Smethport, PA  16749

   (814) 887-5081   Office

(814) 887-5224   Fax

(814) 598-1447   Cell

    Email: daniel@rdjcatalog.com

 

         Web Sites:

www.RDJCatalog.Com – www.InstructionsToMoney.Com  – www.InstructionsToMoney.Net

 

 

 

 

 

 

Outline:

 

Introduction

Executive Summary

Reverse Merger

Financial Restructuring

PROJECTED REVENUES

NET WORTH STATEMENT

Balance Sheet

Restructuring HR

Demographics

CORPORATE GOVERNANCE

Executive Profile

Business History & Company Profile

Products & Service

FLOW CHART

CUSTOMER FINANCE

Services: Real Estate Portfolio of 15 Properties

Summary of Demographics

Marketing Plan

Operational Plan

Direct Marketing

Financial Strategy

Finance Plan to IPO

Conclusion

Forward looking statement

 

 

 

 

 

 

Introduction:

 

RDJ Catalog was born out of the direct sales dream of Robert Merrick who past on that dream to his son. “Direct Retail is not just sales, its entertainment that inspires the purchase”, Daniel Merrick. Retail entertainment as a new approach to marketing in direct sales is not uncommon to the American shopping public. Our goal at RDJC is to transfer the energy, motivation, and excitement of the passion filled movie into a direct buying experience for our customer providing high quality products and services.

 

RDJ Catalog formed as a sole proprietorship in 1999.  In 2001 offering retail merchandise to its customers was a streamline operation in multi-marketing structure. RDJC incorporated with retail storefronts and a direct sales force in place.

 

By 2007 asset building has lead to over 20 real estate properties and a net worth of 7+MM. Branching out into other marketing areas was just natural for Dan Merrick, CFO and co-founder of the corporation. In 2006 Dan released his book ‘Instructions To Money’ and a radio program by the same name. Dan has interviewed such amazing business stars as Carleton Sheets, “No Down Payment”, and Robert Kiyosaki, “Rich Dad Poor Dad”, who co-authored “Why We Want You To Be Rich” with Donald Trump.

 

With Dan’s book sales growing, adding to the healthy bottom line of RDJC, now is the perfect time to expand the momentum of success into the national market.

 

Executive Summary:

 

Proper financial planning is the keystone of any excellent corporation. Using more than the narrow view single purpose corporation, RDJ has positioned itself into a key role for expanding operations in high return profit margins. By expanding operations into new geographic areas with a two fold retail model, RDJ opens both storefront and direct sales operations under one roof in each location. Each office can easily operate at a gross income level or 1 million plus revenue with proper training and management. The goal is to open 100 marketing centers over the next 10 years in a 3 phase strategic plan. The first phase is to open 10 offices in key locations in large metropolitan areas and spring from those locations into 9 additional branches to form divisional management teams. Profits from each operational division will be targeted at 20% to 30% for equity enhancement and investment operations at corporate level. The acquisition and retention of key real estate for operational locations and expanded commercial investments will be the primary purpose of corporate investment operations.  To facilitate the restructure and expansion, RDJC, Inc. will need to go public by purchasing a OTCBB Pink Sheet shell and transitioning the name to meet all SEC reporting and processing requirements.

 

To complete this recapitalization and restructure process will require both private, debit, and equity funding. The funding will be transferred into a new issue of equity stocks sold on the OTCBB. Thereby RDJC, Inc. can transfer existing debit into equity funding positioning the company into a cash return operation while expanding investments into operations and real estate.

 

The primary key offices will be expanded on the following time schedule: 2008, Northeastern division, Southeaster division, Eastern division; 2009, Midwestern division, South-central division, North-central division, Southwestern division; 2010, Central-western division, Northwestern division, Mountain division.

 

IT restructures, marketing, and human resources will be expanded and redesigned to increase productivity and revenue. All RE management will be contracted out to local market management companies with proven track records for 95% + occupancy rates.

Reverse Merger

A less costly way of going public is a reverse merger into an existing public shell company. Expenses range from $100,000 to $500,000. A private operating company is merged into the public shell company, which becomes the legal surviving entity. The name of the company is usually changed to the name of the former private company and controlling shares are transferred to the officers of the former private company. After the merger, additional stock offerings to the public can be used to raise more capital. RDJ Catalog, Inc. is planning a reverse merger with a pink sheet OTCBB shell to facilitate expansion and recapitalization using present equity value of the corporation assets.

Income

1999 Started 11/15      $4,000.00

2000 Annual Income $25,630.58

2001 Annual Income $33,764.00

2002 Gross Income   $46,614.17

2003 Gross Income   $291,885.27

2004 Gross Income   $363,000.00

2005 Gross Income   $292,000.00

2006 Gross Income   $208,000.00

2007 Gross Income   $263,000.00 (Projected)

2008 Gross Income   $9,700,000.00 (Projected)

 

 

Financial Restructuring:

 

Below is a breakdown of funding for this transition:

 

Debit:                                                    $520,000.00

RE Equity:                                         $1,131,000.00

Shareholder Equity:                         $7,500,000.00                 (Class A preferred shares)

Partial RE Sale Proceeds:                  $708,000.00                 (Sales pending, refinance, & income notes)

OTCBB shell purchase:                      $250,000.00

Other equity funding                        $4,000,000.00                 (Private Equity Funding)

Cash for equity to shareholders        $200,000.00

Total Closing assets                      $14,309,000.00                 Total Transaction Cash Funding required         $2,028,000.00

Retained assets Transfer to new OTCBB    $3,500,000.00

New property                                                  $1,000,000.00

Estimated Cash in                                          $3,030,000.00

New Debit (Transitional Funding)                 $2,028,000.00    (Paid off with equity funding)

New public offering                                      $24,000,000.00    (Common Stock)

Total D&E new corp. Traded OTCBB          $33,558,000.00

 

All income producing real estate and retail operations will be transferred under the new structure.

 

PROJECTED REVENUES:

 

Year

2008

2009

2010

2011

2012

2015

Retail Sales

3,500,000

10,000,000

25,000,000

40,000,000

90,600,000

120,500,000

RE Income

1,200,000

2,575,000

5,350,000

10,800,000

12,958,000

25,500,000

Stock Sales

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

Gross Income

9,700,000

17,575,000

35,350,000

55,800,000

107,558,000

150,000,000

Projections based on 100 office expansion with internet and catalog revenues: Reference Business Resource Center(BRC)

University of Pittsburgh at Bradford • 300 Campus Drive • Bradford, PA 16701  (Retail COGS and Operational expense @ 20%-30% income).

 

RDJ CATALOG, INC. ( A Pennsylvania Corporation) 08/2007 

PA Dept. of State Entity#: 3065278    EIN: 20-0549680 DUNNS#: 03-994-0056

NET WORTH STATEMENT                                                  ASSETS

ITEM

Description

Cost

Market Value Present

COINS

US Collectable & Bullion

78,000.00

1,400,000.00

PRECIOUS GEMS

LARGE Caret Collectable

58,000.00

1,500,000.00

ART & HISTORICAL

Paintings & Family History

0

158,977.00

Furnishings

Furniture, Fixtures, Equipment, Tools

186,000.00

186,000.00

COMMON STOCKS

Etrade, Scottrade & SDB Holdings

5,680.00

32,786.00

US TREASURY NOTES

Zero Coupon Bonds ‘AAA

230.00

2,600.00

ASCAP Reg. Copyrights

161 Musical Works/intellectual prop.

0   (Based on Royalty Value)

161,000.00

Business Inventory

Retail items RDJ Catalog stock

10,472.00

30,800.00

Automobiles

2002 Excursion/2006 Toyota/86 Pont.

12,000.00

55,000.00

CASH ACCOUNTS

Money Market & Bank Ck/Sv

77,000.00

77,000.00

REAL ESTATE

Schedule Above

222,600.00

1,215,400.00

RDJ CATALOG

Business Value

44,064.00

361,884.80

ACCOUNTS RECIEVEABLE

Notes & Judgments

4000.00

50,000.00

TOTALS

 

 

5,244,448.00

 Note: Pledged assets above may consist of personal property of the corporate officers. IE: RE @ 858 Rt. 446 Smethport, PA  16749.

 

LIABILITIES

ITEM

HIGH CREDIT / RATING

PRESENT BALANCE

MONTHLY

TOTALS

 ~900K               IO1/RO1

520,594.00

8,831.00

Details on debts and expenses withheld for security purposes.

 

 

 

 

 

 

Balance Sheet

 

 

ASSETS             $5,244,448.00

LIABILITIES       $   520,594.00

 

NET WORTH     $4,723,854.00

 

Annual

 

INCOME               $300,000.00

EXPENSES          $109,572.00

The primary goal and objective of RDJC, Inc. is to build corporate net worth.

RDJC, Inc. CASH FLOW CYCLE: Income > Expenses > Profit > Investment > Net worth.

Restructuring HR:

 

Key officers will be retained in the transition and new management will be assimilated in corporate structure to enhance goal oriented sales revenue. Web presence will be updated to provide user friendly interactive transactions for revenue generation through sales and affiliate advertising income. Media and mass marketing plans centered on PR and attraction of targeted demographic groups will be implemented to insure favorable results.  Projected hiring will be 1000+ over the next 8 years.

 

 

Demographics:

 

21-55 Couples 18K – 75K annual 90% of past sales

55% with children

14% professionals’ 25-38 50K+ with college

21% two income households

21-40 Female (single mother) 15K – 38K annual 10% of past sales

 

Based on past sales, marketing in these distributions have yielded a 75% to 85% closing rate (2 out of 3). By training managers to recruit, hire, and train in the local markets of the expanded target areas, a ready sales growth is developed within areas. Associative marketing results from expanded marketing representatives who move into management in the next phase of expansion.

 

Word of mouth advertising and direct sales force illuminates a great deal of advertising costs while making market loyalty an integrated part of each hire and sale. Training each representative to develop in teams toward the goal of operating his or her own branch office provides the advantage of network marketing without the usual problematic integrity associated with network marketing companies.

 

Practice sales development with friends and family provide a qualified referral resource for future sales and immediate corporate income. In the first 30 to 45 days of operation in Bradford Pennsylvania, RDJ Catalog, Inc. gross sales toped $164,000.00 showing a test market in a less than average market can yield high returns with only a short operational startup.

 

The two fold marketing model allows for both traditional retail store operations and direct marketing techniques to be maximized into a million dollar production operation within the first 12 months of opening. 

 

Divisional Cities for phase one expansion: Pittsburgh; Orlando; Nashville; Chicago; New York; Dallas; St. Louis; Seattle; Sacramento; Denver.

 

 

 

CORPORATE GOVERNANCE:

Mrs. Olga and Capt. Daniel Merrick, Ph.D.; USAR-Ret.

 

 

Executive Profile:  RDJ Catalog, Inc. is a family owned corporation. RDJ’s Operational Manager and President is Daniel W. Merrick, Ph.D. The business has four additional employees and 7 officers at present.

 

Olga I. Merrick, COB

Olga is an immigrant from Ukraine where she studied ecological resource management in Kiev. She has worked with the Ukrainian Forest Service and Postal Service. This has given her insight into finance and international markets. Her experience offers new ideas and reliable methods of supply chain management.  Olga has managed budgets for the Ukrainian Postal Service for over five years with an annual gross in cash of 50M.  She was responsible for pension distribution networks in the Kiev Fastov region and also managed the Forest Service timber management program.  Since 1999 when she helped to establish RDJ Catalog, she has become the driving force to gains in both market share and acquisitions. 

 

Capt. Daniel W. Merrick, Ph.D. – President; CFO

Daniel is a graduate of The Hebrew Institute for Biblical Studies and holds a doctorate in Linguistics and Iconology. He also has a Masters in Vocational Education and a BS in Psychology and Ministry. He served in the US ARMY in the ARMOR branch as platoon leader, Battalion Intelligence Officer, Liaison Officer, and Company Commander. He has also worked with several fortune 500 companies such as AB Electrolux, Scott & Fetzer, HealthMor, and CT Engineering. Daniel has specialized in motivational psychology and sales marketing strategy. He has also appeared on national TV several times on such programs as “Go For Your Dreams’ on ABC network , “His Place “ and  “ Getting Together “ on CTV network. Daniel is a disabled veteran and is assisting his wife in developing this business.  Daniel is also the owner of Eternal light & Power Company (ASCAP), a music publishing and record company.  Daniel produced “Faith In Action” radio worldwide broadcast for evangelist Ken Gaub from 1996 through 1999. Daniel is a member of the National Society of Sons of the American Revolution, American Legion, The Fraternal Order of Eagles. Military Officers Association of America, Reserve Officers Association, and The DAV.  Daniel sits as head of his family line as President of Merrick Foundation .Org, a family history and genealogy non-profit organization. He has also co-authored a book on his family history published by Higgdonson Books and is the author of Instructions To Money, From Welfare to Millionaire published by Outskirts Press. Dan has been featured in ‘Real Profits’ news letter, national radio & press, and on his own syndicated Radio Show.

 

 

Business History & Company Profile

 

RDJ Catalog was born out of the marketing Ideas fostered by Robert W. Merrick and was established in 1999 as a direct marketing company. Initially the company offered Internet purchasing and limited direct sales activities. In January 2002 the company moved into advanced direct marketing to increase revenue after ending training contracts with S&F. RDJ Catalog has established relationships with major marketing companies and suppliers that have positioned the company for advanced future growth into the market. RDJ Catalog has Internet web domain holdings and intellectual property as well as inventory, investments, and real estate with a net worth of over 7 million dollars.  In 2003 RDJ started advanced investment strategies and acquired real estate holdings in the local market with over 14 lease holdings in the area along with income notes and land. Plan profit reinvestment strategies project future acquisitions and income over 107M by end of 2012

 

 

 

 

Products & Service

 

RDJ Catalog has an active marketing outline in our 7-department program that allows for enhanced sales potential and new market development. Our primary product is 5 Ply and 7 Ply T304 Stainless Steel Steam Control Cookware.  Secondary product line is the Model 2000 water filter system.  Our eighty plus page full color catalog has over 500 additional items for purchase.

 

(17 Piece set pictured above includes a lifetime warranty MSRP$1595.00)

The 7 Departments:

 

a.       Recruiting – This program is designed to hire and train independent 1099 commission sales representatives to market products to customers. The program is modeled after Daniel W. Merrick’s training strategy developed for other direct marketing companies as a consultant.

b.       Sales – The sales team is trained in direct field marketing presentation with the use of video and presentation book. Incentives are in place to help inspire achievement as well as a profitable commission schedule.

c.        Service – Warranty service is handled by the Dallas Distribution Center and through manufacturer guarantees. After initial sale each representative is responsible for customer service and follow-up.

d.       Catalog Follow-up Sales – Each representative is encouraged to contact customers after the sale to offer other products on special or sale items. Accounts are assigned to rep’s in the event termination or for departing rep’s.

e.       Lead Procurement – Telemarketing and direct field techniques are used to acquire potential customers.  Rep’s are also encouraged to get referrals while in the home to seek out new buyers.

f.         Accounting & Investment – Books and ledgers are trained for every prospective distributor to insure that taxes are current and paid on time. This is to insure accurate records are kept and reduce risk of tax liability. This department also includes finance.  Presently all paper sources are non-recourse and only a limited number of security agreements are financed in house. 

g.       Promotion – Each office is to continue to develop representatives and distributors to achieve greater goals through continuing education. Programs and materials that will inspire and motivate by authors as Zig Ziglar, Tom Hopkins, Dale Carnegie, and other book such as “Rich Dad Poor Dad” are to be in office libraries for regular training and morning