RDJ Catalog
Incorporated
A Pennsylvania Corporation
BUSINESS PLAN 2007
Principals: Daniel W. & Olga I. Merrick
858 Rt. 446
125
West
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
Balance
Sheet
Restructuring
HR
Demographics
CORPORATE GOVERNANCE
Executive Profile
Business History & Company Profile
Products
& Service
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
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
With
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
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:
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
NET WORTH STATEMENT
ASSETS
|
ITEM |
Description |
Cost |
Market
Value Present |
|
COINS |
US
Collectable & Bullion |
78,000.00 |
1,400,000.00 |
|
PRECIOUS |
LARGE
Caret Collectable |
58,000.00 |
1,500,000.00 |
|
|
Paintings
& Family History |
0 |
158,977.00 |
|
Furnishings |
Furniture,
Fixtures, Equipment, Tools |
186,000.00 |
186,000.00 |
|
COMMON
STOCKS |
Etrade, |
5,680.00 |
32,786.00 |
|
US TREASURY
NOTES |
Zero
Coupon Bonds ‘ |
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 |
|
|
Money
Market & Bank Ck/Sv |
77,000.00 |
77,000.00 |
|
|
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
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.
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:
Executive Profile: RDJ Catalog, Inc. is a family owned corporation. RDJ’s Operational Manager and President is
Capt.
Business History & Company Profile
RDJ Catalog
was born out of the marketing Ideas fostered by
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
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
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