Rising Sun Breads

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BUSINESS PLAN Rising Sun Breads March 2009

DARLA main–SCHNEIDER 1014 Mulberry Road Martinsville VA 24112 P 276 956 2293  M 414 379 0006 www.risingsunbreads.com

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A. Executive Summary 

 page 6

B. Management and Organization Plan 

 page 9

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

C. Product/Service Plan 

 page 13

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

D. Marketing Plan 

 page 17

Industry Profile  17 Current Size Growth Potential Industry Trends Other Characteristics Distribution Channels

Competitive Analysis  19 Direct Competition Indirect Competition Future Competition Competitive Analysis

Market Analysis  21 Target Market Profile Customer Profile Future Markets

Pricing  23 Pricing Strategy Price List Pricing Policies

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D. Marketing Plan (Cont.) 

 page 26

Market Penetration  26 Company Image Customer Service Location Direct Sales Force Sales Representatives Licensing or Distributors Advertising and Promotion Publicity Telemarketing/Direct Mail Internet Trade Shows Market Penetration Effectiveness

E. Financial Plan 

 page 29

Start-Up Costs Sales Projections Income Projections Cash Requirements Sources of Financing Exit Strategy Projected Financial Statements Monthly Cash Flow Report (for three years) Year-End Income Statement Year-End Balance Sheet Ratio Analysis

F. Appendix

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A  Executive Summary

R ISI N G SU N B R E A DS

Rising Sun Breads is a new organic, nutritionally evidenced-based

bakery specializing in artisan breads and bagels; baked locally with no preservatives; initially serving the wholesale markets within a fifty mile radius of Martinsville, Virginia. There are no other baking facilities in the area which offer fresh, nutritionally-dedicated, consumer-driven and locally sensitive alternatives. Our Mission: Provide top-quality, all natural ingredients, baked in an old world bread-baking technique, to create baked goods for everyone to love. To be sensitive to the often over-looked allergy sufferers and cater to their needs for healthy, delicious baked goods. Mission Statement: One body, One planet. Eat well. The legal name of the bakery is Rising Sun Breads, LLC . Start-up baking production to be located in conjunction with The Cakes & Dessert Pantry LLC, locates at 6629 Greensboro Road, Ridgeway, Virginia. Open six days a week, Monday thru Saturday. Owner Derrick Beverley, a Johnson Wales Graduate with multiple years experience in the food service industry has graciously agreed to mentor Darla and provide a designated baking area to begin the production requirements for Rising Sun Breads. The legal form of the business will be an LLC, as registered in the States of Virginia and North Carolina. Estate planning will be combined with the LLC. Founder of Rising Sun Breads, Darla Main-Schneider, holds an MBA in Business Management from the University of Wisconsin - Milwaukee and recently completed an Artisan Bread Baking program at The French Culinary Institute of New York. With over twenty five years in Materials Management with several Fortune 500 Corporations, Darla has decided to transition her skills, gifts and talents in order to fulfill her dream of owning her own business. With over twenty years of experience in business, hands on training in artisan bread baking, and a well-developed business plan, Darla MainSchneider is well–positioned to start a new business that will flourish, as indicated in the market analysis in this business plan will amply demonstrate. With a unique concept and the ability to fill a genuine unmet need in a healthy community, this bakery has the potential to become a keystone business in its locale. The location at 6629 Greensboro Road has proven retail traffic. Strategically located with easy access to Greensboro, Danville, Martinsville, Stuart, and Roanoke. 6

A  Executive Summary (Cont.)

R ISI N G SU N B R E A DS

Management’s vision is to make Rising Sun Breads a cornerstone bakery operation in the Martinsville area within the next five years. Creating a neighborhood atmosphere where customers feel comfortable and become instant regulars. The primary clientele of the business will be adults aged 18 to 99, for whom healthy eating is a goal. Overall national trend indicates that people are eating with a more health conscious trend. The US Bakery Industry forecasts a growth at an annual compounded rate of 3.8% between 2007 and 2012. Wholesale opportunities, direct purchase of core products, with establishment of a retail market for local products Artisan breads and bagels provide a healthy alternative to the morning donut or biscuit readily available in the area. As the founder of Rising Sun Breads, I believe that the metropolitan area is a great place to develop my bakery. There are no other freshly baked bread and bagel shops in the area. The closest competition is The Daily Grind in uptown Martinsville. Rising Sun Breads fits well into the Martinsville/Henry County

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

wholesale and the retail markets in 2009 with a plan to obtain a balance of 60 percent wholesale and 40 percent retail business in the first year. The bakery business has potential growth of 3.8% compounded annually according to the October 2008 US Bakery report, with Artisan Breads as the top trend setter with high margins. Areas for potential marketing are the Martinsville Farmers Market, Taste of Town event, donations to local Charity events, A Holiday Open House, Fast Track 2010, and a shared concession spot at the new soccer fields. Rising Sun Breads will seek fair and responsible profit, enough to keep the

company financially healthy for the long term and to fairly compensate owners and investors for their money and risk. The initial investment to start-up Rising Sun Breads will be the Capital Expense required to purchase/ lease equipment currently not available at The Cakes and Desserts store. Other start-up costs include: Advertising Brochures Bakery Inventory Insurance Minor Improvements to the designated Baking Area

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B  Management and Organization Plan

Legal Form of Business

R ISI N G SU N B R E A DS

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

Management Team

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

Board of Directors/ Advisory Board

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

Recruitment and Selection of Employees

Recruitment of employees will be done through word of mouth and placing Help Wanted ads in the Martinsville Bulletin. A partnership with Patrick Henry Community College to develop an exclusive Bread and Pastry Program with a defined Apprenticeship Program is planned for the future. A job application will need to be filled out with a drug test prior to starting work. All references will be checked. The owner will interview candidates, hiring the best person for the job. The addition of new employees will be based on a target percentage of gross income for payroll and will be revised yearly. Compensation will be the current minimum wage with monetary increases equivalent to learned skill sets. A training manual with specific job descriptions and the expected dress code will be provided to all new employees.

Compensation and Ownership

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

Employee Reward and Incentive Plan

“People want to be part of a Successful Company.” A key toward the success of the employees and Rising Sun Breads is treating all employees fairly with respect, rewarding performance, and a critique of unsuccessful performance. Sharing the big picture lets employees know and understand how their job fits into the businesses success. A personnel goal is to be a role model who is comfortable discussing what has been learned from her mistakes, to develop an experimental, learning attitude with the employees. As Rising Sun Breads or an individual contributor reaches a milestone it will be celebrated. Those who produce will share in the rewards. Saying “Thank You” will provide priceless affirmation of effort and interest. 9

B  Management and Organization Plan (Cont.)

Communication

Infrastructure

R ISI N G SU N B R E A DS

Creating a healthy organizational culture at Rising Sun Breads, where it will be fun, interesting, motivating, and provide opportunities for each individual involved is an important piece of the business plan. Specific goals with results will be established and posted around the baking workplace, with monthly updates that are highly visible, easy to read and understand. People need to know their roles and responsibilities and how they relate to the working team, so these will be an integral part of the written job specific activities (JSA). Finally, direction and the purpose for Rising Sun Breads will be developed and posted in the workplace. Chris Fields, CPA Molenda & Associates 9401 West Beloit Road Milwaukee, WI 53222 (414) 545- 2800 Janine M. Jacobs Daniel, Medly, & Kirby P.C. 106 East Church Street 2nd Floor Martinsville, VA. 24112 (276) 666-1585 Aaron M. Schneider Creative Director 527 East Blithedale Avenue Mill V alley, CA 94941 Fay DeShazo Personalized Computing and Training 102 Oak Street Martinsville, VA 24112 (276) 866-2669 [email protected]

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C  Product/Service Plan

Purpose of Product/Service

R ISI N G SU N B R E A DS

Provide locally produced, baked daily, breads and bagels containing all natural Ingredients. Healthy bread will be created that is not only unique, but complimentary and sensitive to seasons, holidays, and religious/ethnic requests. Local requests for specialty breads and other bread products from the historical roots of the Martinsville/Henry County area will be encouraged. Rising Sun Breads will offer evidence-based, healthy nutrition products. Freshly baked breads and bagels are currently not available in Henry County. An additional group of allergen free products is planned to be developed within the first year of Rising Sun Breads. This plan will target specialized products that are sugar-free, wheat free (gluten free), and dairy free. Medical and nutritional evidence is clear that there have been significant increases in demand for these bakery products as doctors have begun to diagnosis specific food allergies and specific nutritional limitations. For example, according to Nancy Dietz, a nutritionist in Martinsville, over 9% of the population has been diagnosed with diabetes at differing levels of severity. Individual requests with these nutritional limitations for these products in the local community will be encouraged.

Features and Benefits

All Rising Sun Bread products will be made from scratch; using unbleached flour, whole grains, stone ground flours, real honey, molasses and no preservatives or harmful additives. Our dough will rise slowly and gently, leaving vitamins and nutrients whole, thus imparting a fuller, less yeasty flavor. These products will be created using a reliance on tradition, and as little mechanical interference as possible. Each product will be a unique fingerprint to the consumer; conveying taste as well as presentation. Consumer input will be ongoing. Superior quality will be guaranteed. Bagels meet the needs of the “breakfast on the go” individual, as a healthy alternative to fattening fast food. With a variety of flavors available, a warm, crusty, 5 oz kettle boiled bagel with cream cheese or butter is a healthy start to the day.

Stage of Development

Product/Service Limitations

Conception stage: developing training plan timeline, business plan development—with product mix and wholesale, retail, and farmers market timeline projects. Daily production is required to provide a superior quality product. The shelf life on Artisan breads and bagels is 48 hours; with fresh first day and day old second day. Continual product research and development is required to meet customer requirements and stay on the cutting edge of trends. Today in Martinsville and the surrounding area, trained resources are limited. A co-operative program to provide “hands on training” through Patrick Henry Community College is being developed. 13

C  Product/Service Plan (Cont.)

Product Liability

R ISI N G SU N B R E A DS

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

Production

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

Facilities

Rising Sun Breads will begin production in a co-leased facility in Ridgeway,

Virginia. The owner, Derrick Beverly, has designated an area 12 foot by 12 foot for the production of artisan breads and bagels. There are separate areas designated for clean up, mixing, and storage provided above the 144 square feet designated for production. In addition to a production area Derrick will provide a designated section of retail space for the sale of bagels and Artisan breads. Classroom space is also available for future classes in the baking of artisan breads. As Rising Sun Breads becomes recognized in the community a new facility will be built to meet the baking and retail requirements of Rising Sun Breads, along with the addition of local wines, cheeses, and organic produce. The actual site has not yet been selected, but several options have been investigated. The key factors is that the location offer ample parking, easy in and out access for the morning and afternoon rush times, and high visibility from the road. Suppliers

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

Related Products/ Services and Spin-Offs

A local resident of Martinsville has voiced a desire to join Rising Sun Breads. Her specialties are pies, cakes, and an array of miscellaneous baked products. She brings her talents and gifts along with an established customer base. A website for Rising Sun Breads which will include forms to order breads and gift baskets by the Fall of 2009.

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C  Product/Service Plan (Cont.)

R ISI N G SU N B R E A DS

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

Governmental Approvals

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

– Federal Employer Identification number – An SS-4 form which registers Rising Sun Breads with the government – OSHA regulations/EPA-SPCC – Clean Air and Water Act – When hiring or providing services for ADA – Latest Regulation: January 2006; Product labeling requirementsa nutritional label must indicate trans-fat content and any known allergens. (FALCPA) Virginia Requirements:

– Virginia retail sales and use tax – Sales Tax Number – Register with the State Department of Taxation. Forms available online at www.tax.state.va.us – VEC for employee withholding Martinsville Requirements:

– Business License Tax – Commissioner of Revenue office – Business Tangible Personal Property Tax – Tax on Prepared Food and Beverages – Commissioner of the Revenue office – A Certificate of Occupancy – Register Rising Sun Breads trade name – Clerk of Court office – Business Location Inspection – Inspections Office – FDA – Health and Sanitation Inspection See Business Pamphlet in Appendix for specifics

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D  Marketing Plan

Industry Profile

R ISI N G SU N B R E A DS

Current Size

As of October of 2008 there were 7,000 small bakeries in the United States with $2 Billion in total revenue. Small bakeries compete by offering specialty goods and superior local distribution services. Annual US per capita consumption of bread is close to 60 pounds, according to The Wheat Foods Council. Growth Potential

The output for US bakery and pasta products is forecast to grow at an annual compounded rate of 3.8% between 2007 and 2012. The consumer price index for food, an indicator of bakery production values, rose 6% in July 2008, compared to one year ago. A recent article, Healthy Gains in Breads, by Phil Lempert, in Facts, Figures, & the Future; Dollar sales of total fresh bakery bread has grown steadily from $5.9 billion in 2004 to $6.7 billion in August 2008 per US FDA data. See copy of article in appendix. • Largest gain in whole Wheat Bread with double digit growth; $881.9M 2004 to $1.6 B 2008 • Preservative free Bread; $381.8M 2006 to $507.2M in 2008 • Natural Breads; $183.2M in 2006 to $303.8M in 2008 • Sweetener presence (sugar amounts); Sales of $121.1 M in 2008 an increase of 36.2% • Organic Breads; $35.8m in 2004 to $95.7M in 2008. Industry Trends

According to the industry profile for Bakeries compiled on October 6, 2008 the following trends and opportunities are available: • Changing consumer tastes have given rise to “artisan” breads, which smaller bakeries like Rising Sun Breads, with flexible production facilities can capitalize on and differentiate with regional and local tastes delivering a wider variety of products at a higher margin. Breads that contain seeds, nuts, and fruits are among new products with high margins. • Demand is rising for Organic foods at a rate of 20% per year, according to the Organic Consumer Trends. • More bakeries are entering the online gift market, which is in Rising Sun Breads marketing plan for 2009. Industry Challenges

• Raw material prices continue to rise due to the rising cost of producing those materials and rising global demand on grains. Bakeries pay for flour, base mixes, and dough rose 26.6% in July 2008 compared to July 2007. • Energy costs have been volatile in 2008, varying more than 50% during the year. Investigating into and signing future contracts can protect a baker against sharp increases in raw material costs. 17

D  Marketing Plan (Cont.)

R ISI N G SU N B R E A DS

• Nationwide deteriorating water quality requires an investment in purification equipment. Martinsville’s water quality remains high. • Bakery products sell more during holiday and spring and summer causing cash flow challenges. Creative product line development and a strong marketing plan to discover untapped markets is required for continual growth. Distribution Channels

The distribution plan for Rising Sun Breads: • Business to Business; 25%, initial sales contacts made by Darla. • Business to Consumer; 70%, with a 5% sales projection from internet sales. Competitive Analysis

Direct Competition

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

Indirect Competition

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

Future Competition

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

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D  Marketing Plan (Cont.)

R ISI N G SU N B R E A DS

Competitive Analysis

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

Target Market Profile

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

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

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

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D  Marketing Plan (Cont.)

Pricing

R ISI N G SU N B R E A DS

Pricing Strategy

Pricing that is set initially will determine the image and value the owner places on the quality of the products baked and sold at Rising Sun Breads. The image for Rising Sun Breads is to represent the value adds to a customer’s meal selection. All the ingredients in Rising Sun Breads are natural, sustainable, baked to produce a tasty good. Limited quantities are available due to the time required to hand form all products. Our mission is to avoid genetically-modified organisms which impact biodiversity in the planned world and have unknown effects on the human body. Bagels are made fresh on site with the highest quality ingredients, high protein, unbleached wheat flour, fresh yeast, water, salt, and malt syrup. They are kettle boiled and baked on a stone hearth, which gives the bagels that crunchy crust on the outside, dense, chewy texture on the inside. Pricing Policies

Wholesale; Volume pricing or tiered pricing with set payment terms of c.o.d. or 2/10. Return on Investment – profit margins expected. Costs – Actual costs for producing products. Price ceiling $2.99 to $4.99 per loaf – Comparison pricing.

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Monday–Friday:  6 am to 5 pm Saturday: 6 am to 6 pm Closed Sunday

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Bread Production Schedule THE BREADS AT RISING SUN BREADS ARE HEART BAKED WITH PATIENCE AND CARE FROM THE FINEST INGREDIENTS.BREADS MARKED WITH A (*) ARE FAT FREE. Daily

Baguette/ Baton Ciabatta Focaccia Seeded Rolls / Petit Pains Monday

Wheat Levain Multigrain Sour Dough Rye Tuesday

Pain de Mie Grissini Pain de Mia Wednesday

Mulitgrain Pain Normand Spelt Whole Wheat Sandwich Thursday

Grissini Pain de Mia Panmarino Wheat Levain Friday

Challah Fougasse Aux Olives Multigrain Saturday

Brioche Grissini Wheat Levain Sourdough Rye Seasonal Special

*Baguette: The strong crust of this 12-ounce loaf conceals a golden thick crumb. It is the perfect beginning for any meal or on its own. *Baton: A smaller version (8 ounce) of our baguette. Brioche: Beautiful, tasty, and rich, this egg and butter bread also makes the best French toast. 1 pound loaf or small popover sizing. Challah: This traditional braided egg bread is available with or without poppy seeds. Call ahead to order for special occasions. Ciabatta: Italian for “slipper”, this bread features a porous interior enclosed in a crunchy crust. Great for dipping in olive oil. Focaccia: Soft Italian bread traditionally filled with delicious seasonal ingredients. Fougasse Aux Olives: An aromatic loaf made with a sourdough starter, Kalamata olives, and fresh thyme. Grissini: Thin, crisp sticks of Italian bread, plain or covered in poppy seeds. Chef’s tip: great with thin strips of prosiutto wrapped around them or served with spicy or creamy dips. Multigrain: Weighing in at a pound and a half, this bread is packed full of cracked wheat, cut oats, barley grits, buckwheat grits, corn grits, wheat bran, millet, and flax seed. Pain de Mie: Long and square, this is the ultimate soft-crust sandwich bread. Made with milk and butter, kids just love it. Pain Normand: Made with diced local apples and cider in a white, whole wheat, and rye flour combination. Delicious toasted. Petits Pains Au Lait: Small rolls made with an enriched bread dough and milk for a soft texture and a golden crust. Panmarino: An aromatic loaf made with a sourdough starter and rosemary. Excellent for dipping in olive oil. Seeded Rolls: Small, soft clover leaf rolls are made with wheat flakes, sunflower, millet, sesame, and poppy seeds for a nutty texture. *Sourdough Rye: A classic European–style rye bread with a robust tangy flavor. *Spelt Bread: Our wheat-alternative bread has a nutty, barley-like taste. We use an organically grown spelt. *Wheat Levain: A sourdough loaf made with stone ground organic whole-wheat flour. *Whole Wheat Sandwich: A hearty bread with whole wheat flour, cracked wheat, poppy seeds, and sunflower seeds. The addition of honey, butter, and milk make this a soft-crusted bread perfect for sandwiches.

D  Marketing Plan (Cont.)

Market Penetration

R ISI N G SU N B R E A DS

Company Image

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

accomplish this a connection will be established by listening to the customers. Customer Service will wear name tags and training will be provided daily on the preparation and ingredients for all baked items of the day. Customer service will be empowered to solve problems immediately. A salutation to all customers upon entering the bakery as well as the use of first names of repeat customers. A wallet size punch card will be provided to hand out to customers. “Thank you” is mandatory. Location Rising Suns Breads will initially be located at 6629 Greensboro Road,

Ridgeway, Virginia. The owner of The Cake and Dessert Pantry, Derrick Beverly, has agreed to mentor Darla and provide a production area for Rising Sun Breads. This site has excellent traffic both North and South on 220, with adequate parking, and a large retail area. Future plans to relocate to an uptown location will be based upon the financial success of Rising Sun Breads. Direct Sales Force and Sales Representatives The customers of Rising Sun Breads will be the salespeople for the bakery. Licensing or Distributors

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

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D  Marketing Plan (Cont.)

Market Penetration (Cont.)

R ISI N G SU N B R E A DS

Advertising and Promotion

A banner announcing “Opening Soon Rising Sun Breads.” Advertisement in Sundays food section of the Martinsville Bulletin a month prior to the actual opening will build up anticipation, costing approximately $____. A grand opening event will be planned which will include advertisement in the newspaper and on the radio, costing $____. The most effective program is word-of-mouth, and its free. At Rising Sun Breads it will be a goal to inform and educate our patrons, provide service that is unique and personal, in a warm, friendly, atmosphere. Our customers will be the extended salespeople for the bakery. In store promotions will include sampling of a new product which may be introduced depending on the feedback from the customers. A wallet sized internal courtesy coupon that can be issued to customers to be used on return visits; also to a customer with complaints. A flyer attached to orders which will introduce upcoming holiday and seasonal specials. Publicity

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

No plan to invest in telemarketing. A direct mail plan may be utilized in the future. Internet

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

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D  Marketing Plan (Cont.)

Market Penetration (Cont.)

R ISI N G SU N B R E A DS

Trade Shows Rising Sun Breads will be at the spring 2010 trade show in Martinsville.

The expectation is to provide samples to approximately 1500 people, with a rebate of $500 to cover costs. I plan to attend the Bakery trade show in Chicago in September of 2009 to network and meet suppliers. Market Penetration Effectiveness

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

28

–E–

FINANCIAL PLAN

29

START-UP FUNDING & EXPENDITURES

Start-Up Cash Equity Investments Loan Proceeds Real Estate Line of Credit Total Start-Up Cash Start-Up Expenditures Security Deposits Rent (last month's) Telephone Deposit Utilities Deposit Other Deposits Total Security Deposits Other Costs Opening Inventory Capital Expenditures Computer Equipment Equipment & Machinery Furniture & Fixtures Vehicles Leasehold Improvements Building Land Total Start-Up Capital Expenditures Start-Up Expenses Accounting Fees Activation Fee Corporate Fees & Taxes Federal Tax ID Fictitious Name Costs Insurance Legal & Consulting Fees Marketing Meals & Entertainment Office Expense Office Supplies Payroll Expenses (training/setup) Salaries & Wages Payroll Taxes Benefits Pre-opening Advertising Printing (cards, stationery, brochures) Rent Sales Tax Permit Other Start-Up Expenses Total Start-Up Expenses Total Start-Up Expenditures

5,000 30,000 30,000 65,000

-

2,500

250 20,000 10,000 30,250

500 20 125 30 60 450 1,000 500 100 100 100 0 1,750 200 30 4,965 37,715

Basic Mechanical Equipment Start-up 23-Apr-09

Name Need to Operate: Spiral Mixer, 60 qrt Mixer, A200- 20 qrt. w/ SS Hobart table Stone/Steam Oven Stone/Steam Oven Electric deck oven Exhaust Hood Stove Refrigerator Refrig under couner 1 door Freezer Coffee Pot Display case Alumium proofer w/ sheet pans Fax Machine Total Would be nice to have: Sheeter table topper Sheeter Sheeter Table top reversable Water Treatment Water Meter Hand Dryer Dough Divider Dough Divider Total Future Purchases: Stone Mill Fermenter Sour Dough Bagel Kettle Total

Estimated Total

Mfg Hobart Hobart Chaney Chaney GE

Delafield Home Home

acme Ecnomo

Quoted Cost Supplier 4100 Gov Deals 1600 1000 Quote 0 0 0 0 100 0 0 1000 0 75 7875

Gov Deals Ad Arkansas ABS, Cedar Rapids Derrick Derrick Derrick Derrick Solo, MV Pinecreast Derrick Office Max

1500 Pinecrest 5400 Atlantic Coast 5000 ABS 200

Transport Cost Repair/Install

Value

Arrange

100000

Arrange PU me Arrange None None None None PU Me Me Me

3750 2000 2000 1000 800 100 100

None

Arrange

Excel Dutchess

400 750 Atlantic Coast 5000 ABS new

Pick-up Arrange

Burr Mill

2000 8000 ABS used

Arrange

Stones $75 ea Solo Quote install Gasket $60

100 20 Clean & reglaze pans

35.00 +

Facility Start-up Costs Plumbing Quote #1 Quote #2

Est. Cost Est. Time Who 1900 1 day Prillman & Pace 1275 2 day Schrader Precision Services

Electrical Quote #1 Quote #2

4239 2 days 2395 2 days

Triangle 276-957-2281 Kenny Hoffman 340-4847

Hood Install Quote

1900 1 day

Solo w/new exhaust fan and roof curb

Repair Oven- Blodgett

120 2 hrs.

Wall Painting

25

Floor restoration (1000 sq. ft) Equipment installation Fire Extinguisher Printing Business Plan

350 300 ?

As Req'd 54

$317 $165 .49/pg

Mo. Follow-up

Julian Goode Comfort heating & Cooling Darla

Touch up only

Ramos Jones Janitorial Phone no visit

$50-75/ mo.

Mike Grant Comm'l Fryers 81 Dye Plant Rd. 276-632-3473 10 bound copies Sanwell 638-3772 10 bound copies Quick Print 10 66 page doc Office Max

1 a year $15

Start-up Inventory 5-Dec-08

Product Fresh Yeast-SAF Fine Sea Salt Walnuts Butter Eggs Sugar (white granular) Wheat Germ Dried Apples Caraway Seeds Honey Vegetable Oil Olive Oil Malt Syrup(dry diastatic) Milk Flax Seed Sesame Seed Sunflower Seed Rolled Oats Olives Poppy Seeds Pumpkin Seeds Brown Sugar Powdered Milk(whole) Millet Seeds Cracked Wheat Dried Blueberries Raisins Pretzel Salt Aple Cider Lemons Caraway Seeds Cardom Seed Ground Cinnamin Baking Spray Molasses Wheat Bran Splenda Splenda Brown Sugar Dried Currants Dark Brown Sugar Sub Total

Total Cost

Qty 16 50 30 64 180 50 40 20 5 60 35 192 50 5 25 20 25 50 16 25 10 50 50 25 25 10 30 10 1 10 5 2 3 120 192 25 18 18 25 50

3.99 18.27 128.21 8.63 21.13 20.96 15.16 86.17 8.07 99 45.39 88.8 62.22 10 19.4 50.07 29.09 24.32 2.99 87.24 27.23 23.15 147.83 11.44 13.33 107.46 40.64 6.24 2 2 8.07 26.92 12.07 39.25 42.77 8.38 11.88 11.88 44.86 23.15 1359.77

Per Cost $0.25 $0.37 $4.27 $0.13 $0.12 $0.42 $0.38 $4.31 $1.61 $1.65 $1.30 $0.46 $1.24 $2.00 $0.78 $2.50 $1.16 $0.49 $0.19 $3.49 $2.72 $0.46 $2.96 $0.46 $0.53 $10.75 $1.35 $0.62 $2.00 $0.20 $1.61 $13.46 $4.02 $0.33 $0.22 $0.34 $0.66 $0.66 $1.79 $0.46

# to Purchase Total/Mo 1 3.99 0.083 1.51641 0.05 6.4105 1 8.63 1 21.13 0.083 1.73968 0.083 1.25828 0.083 7.15211 0.083 0.66981 0.083 8.217 0.083 3.76737 0.083 7.3704 0.083 5.16426 0.083 0.83 0.083 1.6102 0.083 4.15581 0.083 2.41447 0.083 2.01856 0.083 0.24817 0.083 7.24092 0.083 2.26009 0.083 1.92145 0.083 12.26989 0.083 0.94952 0.083 1.10639 0.083 8.91918 0.083 3.37312 0.083 0.51792 0.083 0.166 0.083 0.166 0.083 0.66981 0.083 2.23436 0.083 1.00181 0.083 3.25775 0.083 3.54991 0.083 0.69554 0.083 0.98604 0.083 0.98604 0.083 3.72338 0.083 1.92145 140.56477

Start-up Inventory- Cont'd Total Cost

Qty Flours: Dark Rye Semolina Rice Flour Pumkernickel Sir Galahad Sir Lancelot King Arthur Special Organic Course Rye Organic Fine Wheat Whole Wheat-course Buckwheat- Light Duram Cornmeal - Course WW Graham Flour WW Pastry Flour Sub Total Sub Total pg 1 SubTotal

Subtotal 1 Subtotal 2 Total

40 50 25 50 50 50 50 50 50 50 50 50 50 50 50

Per Cost

28.5 30 18.67 37.19 30.3 33.94 31.44 37.19 54.52 23.5 28.91 33.15 10.9 17.45 15.39 431.05 2451.1 2882.15

1360 2883 4243

$0.71 $0.60 $0.75 $0.74 $0.61 $0.68 $0.63 $0.74 $1.09 $0.47 $0.58 $0.66 $0.22 $0.35 $0.31

# to Purchase Total/Mo 0.083 0.083 0.083 0.083 1 0.083 1 1 0.25 0.083 0.083 0.083 0.083 0.083 0.083

2.3655 2.49 1.54961 3.08677 30.3 2.81702 31.44 37.19 13.63 1.9505 2.39953 2.75145 0.9047 1.44835 1.27737 135.6008 135.6008

SALES PROJECTIONS

YEAR 1 YEAR 1 YEAR 1 YEAR 1

Year 1 Sales Budget Bagels Baguettes Rolls/Batons Artisan Breads Misc. Additions Breakfast Pastries Product/Service Category G Gross Sales Less: Returns & Allowances Net Sales Other Income Total Income Credit Management Sales (cash) Sales (credit) Received on Account Bad Debt Expense

YEAR 1 YEAR 1 YEAR 1

Year 1 Assumptions Bagels Baguettes Rolls/Batons Artisan Breads Misc. Additions Breakfast Pastries Product/Service Category G Less: Returns & Allowances Other Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

YEAR 2 YEAR 2 YEAR 2 YEAR 2

Year 2 Sales Budget Bagels Baguettes Rolls/Batons Artisan Breads Misc. Additions Breakfast Pastries Product/Service Category G Gross Sales Less: Returns & Allowances Net Sales Other Income Total Income Credit Management Sales (cash) Sales (credit) Received on Account Bad Debt Expense

YEAR 2 YEAR 2 YEAR 2

Year 2 Assumptions Bagels Baguettes Rolls/Batons Artisan Breads Misc. Additions Breakfast Pastries Product/Service Category G Less: Returns & Allowances Other Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

TOTAL

-

-

-

-

1,560 750 500 3,141 250 792 500 7,493 7,493 7,493

1,560 750 500 3,141 250 792 1,000 7,993 7,993 7,993

1,560 750 500 3,141 250 792 1,500 8,493 8,493 8,493

1,560 750 500 3,141 250 792 2,000 8,993 8,993 8,993

1,560 750 500 3,141 250 792 2,500 9,493 9,493 9,493

1,560 750 500 3,141 250 792 2,700 9,693 9,693 9,693

1,560 750 500 3,141 250 792 3,000 9,993 9,993 9,993

1,560 750 500 3,141 250 792 3,496 10,489 10,489 10,489

12,480 6,000 4,000 25,128 2,000 6,336 16,696 72,640 72,640 72,640

-

-

-

-

7,493 -

7,993 -

8,493 -

8,993 -

9,493 -

9,693 -

9,993 -

10,489 -

72,640 -

.65 ea 12/hr. x 8 hr day x 25 days 2.99 ea x 10/day x 25 days .45 ea x 15/hr x 8 x 25 days 3.49 ea x 6 bread varities x 6 x 25 days Cream Cheese, butter, preservatives Cinnamin Buns, Scones, Sticky Buns, Danish $.99 ea x 4/hr. x 8 x 25 days Wholesale : includes soccer complex

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

TOTAL

2,080 1,121 1,800 5,235 500 1,200 3,500 15,436 15,436 15,436

2,080 1,121 1,800 5,235 500 1,200 3,750 15,686 15,686 15,686

2,080 1,121 1,800 5,235 500 1,200 4,000 15,936 15,936 15,936

2,080 1,121 1,800 5,235 500 1,200 4,250 16,186 16,186 16,186

2,080 1,121 1,800 5,235 500 1,200 4,500 16,436 16,436 16,436

2,080 1,121 1,800 5,235 500 1,200 4,750 16,686 16,686 16,686

2,080 1,121 1,800 5,235 500 1,200 5,000 16,936 16,936 16,936

2,080 1,121 1,800 5,235 500 1,200 5,250 17,186 17,186 17,186

2,080 1,121 1,800 5,235 500 1,200 5,500 17,436 17,436 17,436

2,080 1,121 1,800 5,235 500 1,200 5,750 17,686 17,686 17,686

2,080 1,121 1,800 5,235 500 1,200 6,000 17,936 17,936 17,936

2,080 1,121 1,800 5,235 500 1,200 6,000 17,936 17,936 17,936

24,960 13,452 21,600 62,820 6,000 14,400 58,250 201,482 201,482 201,482

15,436 -

15,686 -

15,936 -

16,186 -

16,436 -

16,686 -

16,936 -

17,186 -

17,436 -

17,686 -

17,936 -

17,936 -

201,482 -

.65 ea x 16/hr. x 8 hr day x 25 days 2.99 ea x 15/day x 25 days .45 ea x 20/hr x 8 x 25 days 3.49 ea x 6 bread varities x 10 x 25 days Cream Cheese, butter, preservatives Cinnamin Buns, Scones, Sticky Buns, Danish $.99 ea x 6/hr. x 8 x 25 days Wholesale: includes soccer complex

SALES PROJECTIONS

YEAR 3 YEAR 3 YEAR 3 YEAR 3

Year 3 Sales Budget Bagels Baguettes Rolls/Batons Artisan Breads Misc. Additions Breakfast Pastries Product/Service Category G Gross Sales Less: Returns & Allowances Net Sales Other Income Total Income Credit Management Sales (cash) Sales (credit) Received on Account Bad Debt Expense

YEAR 3 YEAR 3 YEAR 3

Year 3 Assumptions Bagels Baguettes Rolls/Batons Artisan Breads Misc. Additions Breakfast Pastries Product/Service Category G Less: Returns & Allowances Other Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

TOTAL

2,600 1,500 1,800 7,000 1,000 1,500 6,000 21,400 21,400 21,400

2,600 1,500 1,800 7,000 1,000 1,500 6,250 21,650 21,650 21,650

2,600 1,500 1,800 7,000 1,000 1,500 6,500 21,900 21,900 21,900

2,600 1,500 1,800 7,000 1,000 1,500 6,750 22,150 22,150 22,150

2,600 1,500 1,800 7,000 1,000 1,500 7,000 22,400 22,400 22,400

2,600 1,500 1,800 7,000 1,000 1,500 7,250 22,650 22,650 22,650

2,600 1,500 1,800 7,000 1,000 1,500 7,500 22,900 22,900 22,900

2,600 1,500 1,800 7,000 1,000 1,500 7,750 23,150 23,150 23,150

2,600 1,500 1,800 7,000 1,000 1,500 8,000 23,400 23,400 23,400

2,600 1,500 1,800 7,000 1,000 1,500 8,500 23,900 23,900 23,900

2,600 1,500 1,800 7,000 1,000 1,500 9,000 24,400 24,400 24,400

2,600 1,500 1,800 7,000 1,000 1,500 10,000 25,400 25,400 25,400

31,200 18,000 21,600 84,000 12,000 18,000 90,500 275,300 275,300 275,300

21,400 -

21,650 -

21,900 -

22,150 -

22,400 -

22,650 -

22,900 -

23,150 -

23,400 -

23,900 -

24,400 -

25,400 -

275,300 -

.65 ea 20/hr. x 8 hr day x 25 days 2.99 ea x 20/day x 25 days .45 ea x 20/hr x 8 x 25 days 3.49 ea x 8 bread varities x 10 x 25 days Cream Cheese, butter, preservatives Cinnamin Buns, Scones, Sticky Buns, Danish $.99 ea x 8/hr. x 8 x 25 days Wholesale: includes soccer complex

Industry Volume Break Down by Product

Baked Breads Rolls, buns, muffins, bagels, Croissants Cakes Other- Pies, Pastries, Donuts, & variety Sweet Goods

Item Baked Breads Rolls, buns, muffins, bagels, Croissants Cakes Other- Pies, Pastries, Donuts, & variety Sweet Goods

Percentage 50 20 11 19

Rising Sun Breads Cash Flow Report (Projected) 2009 Cash In Cash Sales Collections from Accounts Receivables Equity Received Loans Received Other Cash In (receipts from other assets) Other Cash In (for example, interest, royalites) Total Cash In Total Cash Available

Pre Start-Up

2010 Cash In Cash Sales Collections from Accounts Receivables Equity Received Loans Received Other Cash In (receipts from other assets) Other Cash In (for example, interest, royalites) Total Cash In Total Cash Available

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

TOTAL

5,000 5,000

5,000

5,000

500 500 5,250

500 60,000 60,500 55,750

7,493 500 7,993 38,598

7,993 500 8,493 38,983

8,493 500 8,993 38,861

8,993 500 9,493 41,156

9,493 500 9,993 43,556

9,693 500 10,193 44,199

9,993 500 10,493 46,959

10,489 500 10,989 50,220

72,640 10,000 60,000 142,640 147,640

-

-

-

-

-

2,100

150 2,100

150 2,100

150 2,100

200 2,100

200 2,100

200 2,100

200 2,100

1,250 16,800

-

-

-

-

-

200 10 40 -

-

25

200 10 40 100 100 100 100 100 50 25

200 10 40 100 100 100 100 100 50 25

200 10 40 100 100 100 100 100 50 25

200 10 40 100 100 100 100 100 50 25

200 10 40 100 100 100 100 100 50 25

200 10 40 100 200 100 100 100 50 25

200 10 40 100 200 100 100 100 50 25

200 10 40 100 200 100 100 100 50 25

1,800 90 360 800 1,100 800 800 800 400 225

-

-

-

-

100 40

800 80 100 -

800 80 50 -

800 80 50 -

800 80 50 -

800 80 50 -

800 80 50 -

800 80 50 -

800 80 50 -

100 50 40

100 50 40

100 50 40

-

-

-

-

200 1,000

200 -

200 -

100 50 40 400 200 -

100 50 40 400 200 -

100 50 40 400 200 -

100 50 40 400 200 -

100 50 40 400 200 -

-

-

-

-

-

-

-

-

-

6,400 640 550 800 400 360 2,000 1,600 1,000 -

-

-

250 250

10,000 10,000

20,000 1,912 484 2,334 25,145

479 2,334 8,108

1,912 474 2,334 9,115

469 2,334 7,198

464 2,334 7,593

1,912 459 2,334 9,550

454 2,334 7,733

449 2,334 7,728

1,912 444 2,334 9,635

30,250 7,648 4,177 21,006 102,056

5,000 5,000

5,000 5,000

(250) 5,000 4,750

(9,500) 4,750 (4,750)

35,355 (4,750) 30,605

(115) 30,605 30,490

(622) 30,490 29,868

1,795 29,868 31,663

1,900 31,663 33,563

443 33,563 34,006

2,460 34,006 36,466

2,765 36,466 39,231

1,354 39,231 40,584

40,584 40,584

5,000 -

Cash Out Inventory Expenditures Inventory/Raw Material (Cash) Inventory/Raw Material (Paid on Account) Production Expenses Operating Expenses Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Other Other Other Paid on Account Non-operating Costs Capital Purchases Estimated Income Tax Payments Interest Payments Loan Principal Payments Owner's Draw Other Cash Out Total Cash Out Monthly Cash Flow (Cash In - Cash Out) Beginning Cash Balance Ending Cash Balance

JAN

JAN

FEB

MAR

-

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

TOTAL

15,436 15,436 56,020

15,686 15,686 61,218

15,936 15,936 66,665

16,186 16,186 72,363

16,436 16,436 60,044

16,686 16,686 65,511

16,936 16,936 63,789

17,186 17,186 69,766

17,436 17,436 75,998

17,686 17,686 74,507

17,936 17,936 81,249

17,936 17,936 87,996

201,482 201,482 242,066

5,040

5,040

5,040

5,040

5,040

5,040

5,040

5,040

5,040

5,040

5,040

5,040

60,480

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

400 20 20 50 100 150 200 200 100 100 50

4,800 240 240 600 1,200 1,800 2,400 2,400 1,200 1,200 600

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

200 100 40 400 100 200 -

9,600 960 1,200 2,400 1,200 480 4,800 1,200 2,400 -

-

-

-

Cash Out Inventory Expenditures Inventory/Raw Material (Cash) Inventory/Raw Material (Paid on Account) Production Expenses Operating Expenses Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Other Other Other Paid on Account Non-operating Costs Capital Purchases Estimated Income Tax Payments Interest Payments Loan Principal Payments Owner's Draw Other Cash Out Total Cash Out

-

-

-

445 1,594 10,489

435 2,334 11,219

7,445 430 2,334 18,659

-

445 1,594 10,489

10,500 7,031 440 2,334 28,754

-

445 1,594 10,489

425 2,334 11,209

420 2,334 11,204

7,978 415 2,334 19,177

410 2,334 11,194

405 2,334 11,189

500 8,449 400 2,334 20,133

11,000 30,902 5,113 25,788 174,203

Monthly Cash Flow (Cash In - Cash Out) Beginning Cash Balance Ending Cash Balance

4,947 40,584 45,532

5,197 45,532 50,729

5,447 50,729 56,177

(12,568) 56,177 43,608

5,217 43,608 48,825

(1,973) 48,825 46,853

5,727 46,853 52,580

5,982 52,580 58,562

(1,741) 58,562 56,821

6,492 56,821 63,313

6,747 63,313 70,060

(2,197) 70,060 67,863

27,279 40,584 67,863

-

-

-

-

Rising Sun Breads Cash Flow Report (Projected) 2011 Cash In Cash Sales Collections from Accounts Receivables Equity Received Loans Received Other Cash In (receipts from other assets) Other Cash In (for example, interest, royalites) Total Cash In Total Cash Available

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

TOTAL

21,400 21,400 89,263

21,650 21,650 98,834

21,900 21,900 108,655

22,150 22,150 118,725

22,400 22,400 62,686

22,650 22,650 72,427

22,900 22,900 71,995

23,150 23,150 82,246

23,400 23,400 92,701

23,900 23,900 92,687

24,400 24,400 104,103

25,400 25,400 116,523

275,300 275,300 343,163

200 5,540

200 5,540

200 5,540

200 5,540

300 5,540

300 5,540

300 5,540

350 5,540

350 5,540

400 5,540

400 5,540

400 5,540

3,600 66,480

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

1,000 50 25 100 100 200 200 400 100 100 100

12,000 600 300 1,200 1,200 2,400 2,400 4,800 1,200 1,200 1,200

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

400 150 40 400 200 200 -

4,800 960 1,200 4,800 1,800 480 4,800 2,400 2,400 -

-

-

-

Cash Out Inventory Expenditures Inventory/Raw Material (Cash) Inventory/Raw Material (Paid on Account) Production Expenses Operating Expenses Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Other Other Other Paid on Account Non-operating Costs Capital Purchases Estimated Income Tax Payments Interest Payments Loan Principal Payments Owner's Draw Other Cash Out Total Cash Out

-

-

-

400 1,594 12,079

390 2,334 12,909

10,428 385 2,334 23,332

-

400 1,594 12,079

55,000 10,625 395 2,334 78,439

-

400 1,594 12,079

380 2,334 12,899

376 2,334 12,945

10,974 371 2,334 23,914

366 2,334 12,985

361 2,334 12,980

500 11,991 356 2,334 25,465

55,500 44,017 4,580 25,788 252,106

Monthly Cash Flow (Cash In - Cash Out) Beginning Cash Balance Ending Cash Balance

9,321 67,863 77,184

9,571 77,184 86,755

9,821 86,755 96,575

(56,289) 96,575 40,286

9,491 40,286 49,777

(682) 49,777 49,095

10,001 49,095 59,096

10,205 59,096 69,301

(514) 69,301 68,787

10,915 68,787 79,703

11,420 79,703 91,123

(65) 91,123 91,057

23,194 67,863 91,057

-

-

-

-

Sources of Financing – multiple options available to pursue Family: •

Don and Delores Main

•

Ed and Donna Schneider

•

Craig Schneider

$5000

$500/month

Banks: Options of small business or retail as amount is small •

BBT

•

SunTrust

•

Smith River

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

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

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

Con: • I may become so attached to the business being bought by someone nice that I leave too much money on the table. #2 Acquisitions/ Buyout – find someone who wants to purchase Rising Sun Breads. Pro: • If the business has strategic value that an acquirer is seeking, they may be willing to pay a substantial price. •

Best case scenario there may be multiple acquirers, causing a bidding war which may cause the price to sky rocket.

Con: •

Acquisitions can become messy.

•

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

MONTHLY INCOME STATEMENT Rising Sun Breads 2009 Net Sales (less returns & allowances) Cost of Goods Sold Gross Margin Operating Expenses Advertising Bad Debt Expense Bank Charges Depreciation & Amortization Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Other Other Other Total Operating Expenses

Pre Start-Up

-

JAN

FEB

MAR

APR

MAY 7,493 1,873 5,620

JUN 7,993 1,998 5,995

JUL 8,493 2,123 6,370

AUG 8,993 2,248 6,745

SEP 9,493 2,373 7,120

OCT 9,693 2,423 7,270

NOV 9,993 2,498 7,495

DEC 10,489 2,622 7,867

Total 72,640 18,160 54,480

200 10 412 40 100 100 100 100 100 50 25

200 10 412 40 100 100 100 100 100 50 25

200 10 412 40 100 100 100 100 100 50 25

200 10 412 40 100 100 100 100 100 50 25

200 10 412 40 100 100 100 100 100 50 25

200 10 412 40 100 200 100 100 100 50 25

200 10 412 40 100 200 100 100 100 50 25

200 10 412 40 100 200 100 100 100 50 25

100 40

800 80 100 -

800 80 50 -

800 80 50 -

800 80 50 -

800 80 50 -

800 80 50 -

800 80 50 -

800 80 50 -

100 50 40

100 50 40

100 50 40

-

200 1,000

200 -

200 -

100 50 40 400 200 -

100 50 40 400 200 -

100 50 40 400 200 -

100 50 40 400 200 -

100 50 40 400 200 -

827

3,607

2,557

2,557

2,957

2,957

3,057

3,057

3,057

1,800 90 3,886 360 800 1,100 800 800 800 400 225 6,400 640 550 800 400 360 2,000 1,600 1,000 24,811

(827)

2,013

3,438

3,813

3,788

4,163

4,213

4,438

4,810

29,669

484 -

479 -

474 -

469 -

464 -

459 -

454 -

449 -

444 -

4,177 -

(1,311)

1,534

2,964

3,344

3,324

3,704

3,759

3,989

4,366

25,492

-

-

-

-

-

7 -

-

-

200 10 412 40 -

-

25

-

-

-

-

7

174 (174)

174 -

-

-

Operating Income

-

-

(7)

Interest Expense Other Income (for example, interest)

-

-

-

Income Before Taxes

-

-

(7)

JAN 15,436 3,550 11,886

FEB 15,686 3,608 12,078

MAR 15,936 3,665 12,271

APR 16,186 3,723 12,463

MAY 16,436 3,780 12,656

JUN 16,686 3,838 12,848

JUL 16,936 3,895 13,041

AUG 17,186 3,953 13,233

SEP 17,436 4,010 13,426

OCT 17,686 4,068 13,618

NOV 17,936 4,125 13,811

DEC 17,936 4,125 13,811

Total 201,482 46,341 155,141

400 20 412 20 50 100 150 200 200 100 100 50

400 20 412 20 50 100 150 200 200 100 100 50

400 20 412 20 50 100 150 200 200 100 100 50

400 20 539 20 50 100 150 200 200 100 100 50

400 20 539 20 50 100 150 200 200 100 100 50

400 20 539 20 50 100 150 200 200 100 100 50

400 20 539 20 50 100 150 200 200 100 100 50

400 20 539 20 50 100 150 200 200 100 100 50

400 20 539 20 50 100 150 200 200 100 100 50

400 20 539 20 50 100 150 200 200 100 100 50

400 20 539 20 50 100 150 200 200 100 100 50

400 20 553 20 50 100 150 200 200 100 100 50

4,800 240 6,101 240 600 1,200 1,800 2,400 2,400 1,200 1,200 600

2010 Net Sales (less returns & allowances) Cost of Goods Sold Gross Margin

(174)

Operating Expenses Advertising Bad Debt Expense Bank Charges Depreciation & Amortization Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Other Other Other Total Operating Expenses

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

800 80 100 -

200 100 40 400 100 200 3,822

200 100 40 400 100 200 3,822

200 100 40 400 100 200 3,822

200 100 40 400 100 200 3,949

200 100 40 400 100 200 3,949

200 100 40 400 100 200 3,949

200 100 40 400 100 200 3,949

200 100 40 400 100 200 3,949

200 100 40 400 100 200 3,949

200 100 40 400 100 200 3,949

200 100 40 400 100 200 3,949

200 100 40 400 100 200 3,963

9,600 960 1,200 2,400 1,200 480 4,800 1,200 2,400 47,021

Operating Income

8,064

8,257

8,449

8,514

8,707

8,899

9,092

9,284

9,477

9,669

9,862

9,848

108,120

445 -

445 -

445 -

440 -

435 -

430 -

425 -

420 -

415 -

410 -

405 -

400 -

5,113 -

7,619

7,812

8,004

8,074

8,272

8,469

8,667

8,864

9,062

9,259

9,456

9,448

103,007

Interest Expense Other Income (for example, interest) Income Before Taxes

MONTHLY INCOME STATEMENT Rising Sun Breads 2011 Net Sales (less returns & allowances) Cost of Goods Sold Gross Margin Operating Expenses Advertising Bad Debt Expense Bank Charges Depreciation & Amortization Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Other Other Other Total Operating Expenses Operating Income Interest Expense Other Income (for example, interest) Income Before Taxes

JAN 21,400 4,494 16,906

FEB 21,650 4,547 17,104

MAR 21,900 4,599 17,301

APR 22,150 4,652 17,499

MAY 22,400 4,704 17,696

JUN 22,650 4,757 17,894

JUL 22,900 4,809 18,091

AUG 23,150 4,862 18,289

SEP 23,400 4,914 18,486

OCT 23,900 5,019 18,881

NOV 24,400 5,124 19,276

DEC 25,400 5,334 20,066

Total 275,300 57,813 217,487

1,000 50 553 25 100 100 200 200 400 100 100 100

1,000 50 553 25 100 100 200 200 400 100 100 100

1,000 50 553 25 100 100 200 200 400 100 100 100

1,000 50 1,374 25 100 100 200 200 400 100 100 100

1,000 50 1,374 25 100 100 200 200 400 100 100 100

1,000 50 1,374 25 100 100 200 200 400 100 100 100

1,000 50 1,374 25 100 100 200 200 400 100 100 100

1,000 50 1,374 25 100 100 200 200 400 100 100 100

1,000 50 1,374 25 100 100 200 200 400 100 100 100

1,000 50 1,374 25 100 100 200 200 400 100 100 100

1,000 50 1,374 25 100 100 200 200 400 100 100 100

1,000 50 1,388 25 100 100 200 200 400 100 100 100

12,000 600 14,042 300 1,200 1,200 2,400 2,400 4,800 1,200 1,200 1,200

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 80 100 -

400 150 40 400 200 200 4,898

400 150 40 400 200 200 4,898

400 150 40 400 200 200 4,898

400 150 40 400 200 200 5,719

400 150 40 400 200 200 5,719

400 150 40 400 200 200 5,719

400 150 40 400 200 200 5,719

400 150 40 400 200 200 5,719

400 150 40 400 200 200 5,719

400 150 40 400 200 200 5,719

400 150 40 400 200 200 5,719

400 150 40 400 200 200 5,733

4,800 960 1,200 4,800 1,800 480 4,800 2,400 2,400 66,182

12,008

12,206

12,403

11,779

11,977

12,174

12,372

12,569

12,767

13,162

13,557

14,333

151,305

400 -

400 -

400 -

395 -

390 -

385 -

380 -

376 -

371 -

366 -

361 -

356 -

4,580 -

11,608

11,805

12,003

11,384

11,586

11,789

11,991

12,194

12,396

12,796

13,196

13,977

146,724

Rising Sun Breads Year-End Income Statement (Projected) Net Sales (less returns & allowances) Cost of Goods Sold Gross Margin Operating Expenses Advertising Bad Debt Expense Bank Charges Depreciation & Amortization Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Other Other Other Total Operating Expenses Operating Income

$

1,800 90 3,886 360 800 1,100 800 800 800 400 225

$

6,400 640 550 800 400 360 2,000 1,600 1,000 24,811

$

29,669

40.8% $

4,177 $

Income Taxes (if C Corp) Net Income

100.0% 25.0% 75.0% $

2.5% 0.0% 0.1% 5.3% 0.0% 0.5% 1.1% 1.5% 1.1% 1.1% 1.1% 0.6% 0.3% 0.0% 8.8% 0.9% 0.0% 0.8% 0.0% 0.0% 1.1% 0.6% 0.5% 2.8% 0.0% 0.0% 2.2% 1.4% 0.0% 0.0% 34.2% $

Interest Expense Other Income (for example, interest) Income Before Taxes

2009 72,640 18,160 54,480

25,492 -

$

25,492

5.8% 0.0% 35.1% $ 0.0% 35.1% $

2010 201,482 46,341 155,141

4,800 240 6,101 240 600 1,200 1,800 2,400 2,400 1,200 1,200 600

100.0% 23.0% 77.0% $

2011 275,300 57,813 217,487

100.0% 21.0% 79.0%

12,000 600 14,042 300 1,200 1,200 2,400 2,400 4,800 1,200 1,200 1,200

9,600 960 1,200 2,400 1,200 480 4,800 1,200 2,400 47,021

2.4% 0.0% 0.1% 3.0% 0.1% 0.3% 0.6% 0.9% 1.2% 1.2% 0.6% 0.6% 0.3% 0.0% 4.8% 0.5% 0.0% 0.6% 0.0% 0.0% 1.2% 0.6% 0.2% 2.4% 0.6% 0.0% 1.2% 0.0% 0.0% 0.0% 23.3% $

4,800 960 1,200 4,800 1,800 480 4,800 2,400 2,400 66,182

4.4% 0.0% 0.2% 5.1% 0.1% 0.4% 0.4% 0.9% 0.9% 1.7% 0.4% 0.4% 0.4% 0.0% 1.7% 0.3% 0.0% 0.4% 0.0% 0.0% 1.7% 0.7% 0.2% 1.7% 0.9% 0.0% 0.9% 0.0% 0.0% 0.0% 24.0%

108,120

53.7% $

151,305

55.0%

4,580 -

1.7% 0.0%

146,724

53.3%

-

0.0%

146,724

53.3%

5,113 103,007 103,007

2.5% 0.0% 51.1% $ 0.0% 51.1% $

Rising Sun Breads Year-End Balance Sheet (Projected) 2009

2010

2011

Assets Current Assets Cash & Equivalents Accounts Receivable Inventory Security Deposits Other Current Assets Total Current Assets

$

40,584 40 40,624

$

67,863 14,179 82,042

Fixed Assets Property, Plant & Equipment Less: Accumulated Depreciation Net Fixed Assets Other Non-Current Assets Total Non-Current Assets

$

30,250 (3,886) 26,364 26,364

$

41,250 (9,987) 31,263 31,263

Total Assets

$

66,988

$

$

(1,250) 23,340 22,090

Long-term Liabilities Loans Mortgages Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities

113,305

$

91,057 26,446 117,504

$

96,750 (24,029) 72,721 72,721

$

190,224

Liabilities Current Liabilities Accounts Payable Line of Credit Other Current Liabilities Total Current Liabilities

$

(1,250) 16,680 15,430

$

(1,250) 10,020 8,770

$

15,654 15,654

$

(3,474) (3,474)

$

(22,602) (22,602)

$

37,744

$

11,956

$

(13,832)

$

10,000 25,492 (7,648) 27,844

$

10,000 120,852 (30,902) 99,949

$

10,000 236,674 (44,017) 202,656

$

65,588

$

111,905

$

188,824

Equity Equity Investments Retained Earnings Less: Owner's & Investor's Draws Total Equity

Total Liabilities and Equity

Rising Sun Breads Financial Ratios Industry Avg

2009

2010

2011

Net Income Net Sales

35.09%

51.12%

53.30%

Gross Margin Net Sales

75.00%

77.00%

79.00%

Operating Expenses Net Sales

34.16%

23.34%

24.04%

Return on Assets (ROA)

Net Income Total Assets

38.05%

90.91%

77.13%

Return on Equity (ROE)

Net Income Total Equity

91.55%

103.06%

72.40%

Cost of Goods Sold Inventory

454.00

3.27

2.19

Yearly Credit Sales Accounts Receivable

#DIV/0!

#DIV/0!

#DIV/0!

Profitability Ratios Net Margin

Gross Margin

Expense Analysis

Efficiency Ratios Inventory Turnover

Accounts Receivable Turnover Liquidity Ratios

Total Current Assets Total Current Liabilities

1.84

5.32

13.40

Current Assets - Inventory Current Liabilities

1.84

4.40

10.38

Debt Ratio

Total Liabilities Total Assets

0.56

0.11

-0.07

Debt to Equity

Total Liabilities Total Equity

1.36

0.12

-0.07

Current Ratio

Quick Ratio

Risk Ratios

Cash Cycle Days Receivable

Accounts Receivable x 365 Sales per year

-

-

-

Days Inventory

Inventory x 365 COGS per year

1

112

167

Accounts Payable x 365 COGS per year

(25)

(10)

(8)

Numer of Days Between Pay Periods

7

7

7

Days Receivable + Days Inventory - Days Payable - Days Payroll Accrual

26

122

175

Days Payable

Days Payroll Accrual

Cash Cycle

–F–

APPENDIX

F  Appendix

List of Potential Suppliers

R ISI N G SU N B R E A DS

Sysco, Inc.

5081 South Valley Pike Harrisonburg, VA 22801 Phone# 540-434-0761 Dakota Prairie Organic Flour

500 North Street West Harvey, ND 58341 Phone# 701-324-4330 KDL Foods

2410 Farrington Point Drive Winston-Salem, NC 27101 Phone # 336-403-0540 [email protected] Albert Ulster Imports

9211 Gaither Road Gaithersburg, MD 208778 Phone# 201-258-7350 [email protected] Triangle Food Products

1334 Bobbitt Drive Garner, NC 27529 Phone # 919-773-8677 Dutch Valley Food Distribution, Inc.

7615 Lancaster Avenue P.O. Box 465 Myerstown, PA 17067 800-733-4191 www.dutchvalleyfoods.com

Qualifying Potential Suppliers

Who else does this supplier do business with (references)? How is the company doing financially? Basic Financial Information Dunn & Bradstreet Better Business Bureau Payment Terms available.

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

Name Bannetons 1 kg Oval Bannetons - 750 kg Oval Bannetons - 750 kg Round Bannetons - 1kg round Pelle w/handle Parchment Paper 18 x 26 Alumium Foil 18 x 500' Bar Towels 60 Rolling Bins - Flour Lexar Bins w/lids Digital Scale Large Digital Scale Small Balance Scale Blackboards- Prod/specials Chalk & Eraser Plastic Scoops 64 oz. Peg Board w/hooks Baker Racks Plastic Zipper Rack Cover Wooden Proof Boards Can Opener Metal Padded Stool Clock Sheet pan 18x26 Saute Pans 5 qrt. Can Crusher Recycle Bin set Square Garbage Cans Compost Bin 1st Aided Kit Wall Flour Sifter-Round SS Plastic Wrap 18 x 3000 Coat Hook Round Laundry Bin Metal Pitcher Square Clear Plastic Cont Couche 26" wide Radio Home Pullaman Pansw/ lids 1 pound loaf pans Pull Out Drying Rack Sink Wooden Table Tops Delivery Trays Rolling Metro shelf Sub Total

Mfg TBJ TBJ Lillsum 500 sheets Sam's Club Sam's Club used Detecto Craig Built

Pinecrest Lilley

Sam's Club

Sony

At Bakery 6' cover SS pkg 6

Number Est Cost Req. 32.8 31.7 8 10 59 56 19.32 17.12 28 37 400 100 300 19.95 5 10 12.95 100 60 8 10 65.99 19.99 10.56 40 0 65.61 24.99 24.99 18.99 26.99 14.56 2.99 4.99 24.99 25 9.5 0 23 11.93 14.99 0 300 98 150

Total

8 8 8 8 1 1 1 1 8 6 1 1 1 1 1 20 1 3 2 12 1 1 1 12 1 1 1 2 1 1 1 1 1 1 2 2 10 1 8 20 1 1 1 2

262.4 253.6 64 80 59 56 19.32 17.12 224 222 400 100 300 19.95 5 200 12.95 300 120 96 10 65.99 19.99 126.72 40 0 65.61 49.98 24.99 18.99 26.99 14.56 2.99 4.99 49.98 50 95 0 184 238.6 14.99 0 300 98 300 4613.71

Purchase Date 3/5/09 3/5/09

3/9/09

3/9/09

Inventory Start-up Miscellaneous

Name Scraper Metal Scraper plastic Rolling Pin no handles Rolling Pin Marble 1" Pastry Brush Pizza Cutter Metal Silpat Brioche Pan Small Brioche Pan Large Stainless Steel Shelf 6' French Ergo Whip 14" Fluted Tart Tins Kraft Bags 2 lb Kraft Bags 6 lb Kraft Bags 12 lbs Mandoline Slicer Square Grater Accurate Grater SS Strainer 8" med/fine Round Plastic w/lid Bagel Scoop Sauce Pan Alumium 4.5 qrt Large offset spatula Cookie Spatula 18" Metal Ruler Oven Thermometer Potholders & Mitts Wooden Rolling Pin Bakers Blade Holder Flour Brush Croissant Cutter Bratforms Wicker - Round Bratforms Wicker - Oval American Bread Poster Fire Extinguisher + sign Storage Bins Dry Goods Dunage Rack Flour Jucier- lemons/oranges Zester

Mfg

Number Est Cost Req. 10 1 5.45 16.99 1.69 4.95 35 24 30 100 4.99 1.09 7.86 9.58 16.63 170 7.99 21.99 6.17 18 46 23.99 10.8 3 4.5 3.5 30 48.99 6 18.5 122 20.99 18.99 15 35 65 300 0 10

Lilly

Ateco

500 ea 500 ea 500 ea

Ateco TMB TMB TMB TMB TMB Cambro Home

1 3 1 1 2 1 1 25 12 4 2 25 1 1 1 1 1 2 1 2 1 1 1 1 1 2 1 1 1 1 1 8 8 1 1 14 1 1 1

Total 10 3 5.45 16.99 3.38 4.95 35 600 360 400 9.98 27.25 7.86 9.58 16.63 170 7.99 43.98 6.17 36 46 23.99 10.8 3 4.5 7 30 48.99 6 18.5 122 167.92 151.92 15 35 910 300 0 10

. Subtotal Subtotal pg.1 Total

3684.83 4613.71 8298.54

Purchase Date

Cleaning Equipment and Supplies 5-Dec-08 Name Brooms Lobby Dust Pan Oven Brush Bar towels 16 x 19 Recycled tee Shirts SubTotal

Cost

Supplier

9.21 Liberman 14.99 26 10.36 14.88 75.44

Supplier Sam's Club Sam's Club Sam's Club Sam's Club Sam's Club

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

F  Appendix

Competitive Analysis

R ISI N G SU N B R E A DS

PRICING Indirect Competition

Updated Oct-08 Item Description

Sam’s Club

Food Lion

Kroger

Muffins Whole Wheat Rolls Croissants French Bread Sour Dough Bread Tuscan Boule Hogie Rolls Hot Dog/ Hamburger Buns Kaiser Rolls Bagels Ecce Pane Ciabatta Semolina Harvest Grain Sour Dough Bread

0.54 0.14 0.25 1.99 — — —

0.95 0.26 0.4 1.91 3.37 3.49 0.49

0.99 See Note 0.34 0.99 1.99 2.99 — —

0.16 — — — — — — —

0.37 0.57 0.79 3.29 3.29 3.29 3.29 3.99

0.39 0.59 0.99 3.49 3.49 3.49 3.49 —

Note: WalMart bakery closed renovations

WalMart

F  Appendix

Competitive Analysis (Cont.)

R ISI N G SU N B R E A DS

PRICING Bakeries

Updated Oct-08 Item Description

Arts Ect. Martinsville

Hot Cakes Charlottesville

Wild Flowers Roanoke

Daily Grind Martinsville

Croissant Danish-Sticky Bun Scone Muffin Cookie Bars White Baguettes Sweet Potato White Dinner Rolls Foccacia (Bread by Loaf) Bagels Slice Pie Whole Wheat Bread Multi-grain Bread Sour Dough Bread Olive Bread Brioche Challah Rye Bread Ciabatta Whole Wheat C’Berry Walnut

$1.50 $1.25 $1.25 $1.25 $1.50 $1.50 $2.50

$2.25 $2.95 $1.95 $0.95 $0.99 $1.95 $2.95

— — — — $1.50 $2.25 —

$2.25 — $2.25 $1.95 $1.50 $2.25 —

$0.95

$0.65

—

—

— $0.75 $2.00 $4.25 $4.00 $4.00 $3.85 $4.50 $4.50 $4.00 $3.75

$3.25 — — $3.99 $3.99 $3.99 $3.99 $3.99 $3.99 $3.99 $3.99

$4.25 — — $4.25 $4.25 $4.25 $4.25 $4.25 $4.25 $4.25 $4.25

— $1.50 — — — — — — — — —

$4.25

$3.99

$4.25

—

Bagels:

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

F  Appendix

R ISI N G SU N B R E A DS

Competitive Analysis (Cont.)

Competitor A Daily Grind Similar to Starbucks Competitor B Arts Ect. Full Service Breakfast & Lunch Competitor C

Frozen Product Gourmet Pannini Baked on Sit and Stay/ Less than 1 Sandwiches/ Site/Franchis Gourmet Coffees/ yr Good Location e menu Panini Sandwich Diversified Products Retail Original Gift Shop & Name products & Coffee/Wines coffee shop Frame Shop doesn't fit Framing; 45 East Church Sandwiches On Middle to High uptown Good Breakfast and products Sandwiches & Street (Uptown) Variety Breads end cost Reputation Lunch Slow Service Specialty Coffees Sit down and 10 East Church stay awhile High end Street (uptown) Community Highest in Nice restoration meeting rooms Community

Flavored Coffees, Lattes, 115 Spruce Smoothies, Ice Middle to High Binding Times Street Druid Hills Cream, End/Compara 3 Times Breakfast, Lunch Martinsville sandwiches ble to Arts Etc. Relocated Competitor D

Gas Station Competitor E

Food Lion

Multiple Locations

Multiple Locations

None

Mid-high range pay for convenience Steady

Wireless Internet & New/Used Books/ Book Similar to Signings/ SPCA Arts Etc. sponsor theme Not fresh or unique Dependant One stop on supplies for fresh shopping

Offer fresh baked breads and pastriesfrozen than baked

Middle to Low End - 1/2 price of coffee Steady shops

Lower Cost /Quantity/multiple Not fresh or unique products

Specialty is Coffees, Sandwiches, & Reading Area

None

Basic grocery store

6629 Greensboro Rd. 6629 Greensboro Rd Ridgeway, VA 24148

©2007 ESRI

Site Map Martinsville-Henry County February 10, 2009

On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224

Latitude: 36.60127 Longitude: -79.861859

Page 1 of 1

Market Profile Martinsville-Henry County

6629 Greensboro Rd.

6629 Greensboro Rd

6629 Greensboro Rd

Ridgeway, VA 24148

Ridgeway, VA 24148

Ridgeway, VA 24148

Drivetime: 10 minutes

Drivetime: 20 minutes

Drivetime: 30 minutes

2000 Total Population 2000 Group Quarters 2008 Total Population 2013 Total Population 2008 - 2013 Annual Rate

13,800 107 13,459 13,107 -0.53%

77,242 1,381 74,041 72,291 -0.48%

128,550 1,697 125,784 124,098 -0.27%

2000 Households 2000 Average Household Size 2008 Households 2008 Average Household Size 2013 Households 2013 Average Household Size 2008 - 2013 Annual Rate 2000 Families 2000 Average Family Size 2008 Families 2008 Average Family Size 2013 Families 2013 Average Family Size 2008 - 2013 Annual Rate

5,734 2.39 5,749 2.32 5,660 2.3 -0.31% 4,103 2.84 3,967 2.83 3,817 2.84 -0.77%

32,250 2.35 31,487 2.31 30,981 2.29 -0.32% 21,904 2.86 20,632 2.88 19,888 2.89 -0.73%

52,869 2.4 52,665 2.35 52,352 2.34 -0.12% 36,923 2.89 35,616 2.89 34,783 2.9 -0.47%

6,138 74.3% 19.3% 6.4% 6,298 71.3% 19.9% 8.7% 6,306 69.4% 20.4% 10.2%

35,229 65.0% 26.6% 8.4% 35,958 61.4% 26.1% 12.4% 36,253 58.9% 26.6% 14.5%

57,773 67.8% 23.8% 8.4% 59,765 64.7% 23.4% 11.9% 60,671 62.3% 23.9% 13.7%

$36,140 $43,823 $49,619

$30,854 $38,471 $44,163

$31,886 $39,474 $45,248

$83,391 $163,052 $170,035

$70,113 $122,985 $127,144

$71,111 $118,655 $122,671

$20,426 $24,344 $27,051

$17,016 $20,776 $23,237

$16,763 $20,336 $22,643

40.9 44.2 45.9

39.6 42.0 44.0

39.3 41.9 43.8

Latitude:

36.60127

Longitude: -79.861859

2000 Housing Units Owner Occupied Housing Units Renter Occupied Housing Units Vacant Housing Units 2008 Housing Units Owner Occupied Housing Units Renter Occupied Housing Units Vacant Housing Units 2013 Housing Units Owner Occupied Housing Units Renter Occupied Housing Units Vacant Housing Units Median Household Income 2000 2008 2013 Median Home Value 2000 2008 2013 Per Capita Income 2000 2008 2013 Median Age 2000 2008 2013

6629 Greensboro Rd

Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by total population. Detail may not sum to totals due to rounding. Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2008 and 2013.

©2008 ESRI

On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224

2/10/2009

Page 1 of 8

Market Profile Martinsville-Henry County

6629 Greensboro Rd.

6629 Greensboro Rd

6629 Greensboro Rd

Ridgeway, VA 24148

Ridgeway, VA 24148

Ridgeway, VA 24148

Drivetime: 10 minutes

Drivetime: 20 minutes

Drivetime: 30 minutes

2000 Households by Income Household Income Base < $15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Average Household Income

5,738 18.9% 15.6% 13.9% 18.0% 18.4% 6.9% 4.9% 1.9% 1.6% $47,950

32,398 22.4% 18.2% 15.5% 18.2% 16.0% 5.2% 2.8% 0.8% 0.9% $40,174

52,996 21.8% 17.4% 15.4% 18.8% 16.6% 5.5% 3.0% 0.7% 0.8% $40,275

2008 Households by Income Household Income Base < $15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Average Household Income

5,748 14.2% 13.1% 12.0% 16.6% 22.9% 9.3% 7.9% 1.7% 2.4% $56,363

31,488 17.5% 14.8% 13.2% 17.1% 22.4% 7.8% 4.9% 1.0% 1.3% $48,209

52,665 17.2% 14.2% 12.9% 17.6% 23.1% 8.1% 4.8% 1.0% 1.1% $48,052

2013 Households by Income Household Income Base < $15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Average Household Income

5,659 12.7% 11.6% 11.2% 14.8% 25.4% 10.1% 9.6% 1.8% 2.7% $61,948

30,983 15.5% 12.0% 12.6% 15.8% 25.0% 10.3% 6.2% 1.0% 1.5% $53,473

52,351 15.3% 11.8% 12.0% 16.0% 26.1% 10.4% 6.1% 1.0% 1.3% $53,083

4,545 23.4% 38.8% 20.0% 9.1% 5.7% 1.7% 1.2% 0.0% $104,529

22,945 30.0% 47.5% 13.7% 4.7% 2.5% 0.9% 0.6% 0.1% $83,586

39,062 29.6% 46.3% 14.9% 5.1% 2.8% 0.8% 0.4% 0.1% $83,362

1,155 91.6% 8.4% $329 $363

9,190 92.6% 7.4% $317 $322

13,375 90.6% 9.4% $315 $316

Latitude:

36.60127

Longitude: -79.861859

2000 Owner Occupied HUs by Value Total <$50,000 $50,000 - 99,999 $100,000 - 149,999 $150,000 - 199,999 $200,000 - $299,999 $300,000 - 499,999 $500,000 - 999,999 $1,000,000+ Average Home Value 2000 Specified Renter Occupied HUs by Contract Rent Total With Cash Rent No Cash Rent Median Rent Average Rent

6629 Greensboro Rd

Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest, dividends, net rents, pensions, SSI and welfare payments, child support and alimony. Specified Renter Occupied HUs exclude houses on 10+ acres. Average Rent excludes units paying no cash rent. Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2008 and 2013.

©2008 ESRI

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2/10/2009

Page 2 of 8

Market Profile Martinsville-Henry County

6629 Greensboro Rd.

6629 Greensboro Rd

6629 Greensboro Rd

Ridgeway, VA 24148

Ridgeway, VA 24148

Ridgeway, VA 24148

Drivetime: 10 minutes

Drivetime: 20 minutes

Drivetime: 30 minutes

2000 Population by Age Total 0-4 5-9 10 - 14 15 - 19 20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+ 18+

13,802 5.2% 6.4% 7.1% 6.0% 4.3% 11.7% 15.9% 15.3% 11.9% 9.5% 5.4% 1.3% 77.3%

77,241 5.7% 6.2% 6.8% 5.9% 5.3% 13.0% 15.4% 13.9% 11.0% 8.9% 5.8% 2.0% 77.5%

128,551 5.8% 6.3% 6.7% 6.0% 5.3% 13.1% 15.6% 14.3% 11.0% 8.7% 5.4% 1.8% 77.4%

2008 Population by Age Total 0-4 5-9 10 - 14 15 - 19 20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+ 18+

13,458 5.1% 5.4% 5.8% 5.8% 4.9% 10.6% 13.5% 16.0% 14.8% 9.9% 6.2% 2.0% 80.1%

74,043 5.7% 5.7% 5.7% 5.8% 5.4% 11.9% 14.2% 15.2% 13.0% 8.9% 6.0% 2.5% 79.3%

125,786 5.8% 5.8% 5.8% 5.7% 5.3% 11.9% 14.4% 15.4% 13.2% 8.8% 5.6% 2.2% 79.1%

2013 Population by Age Total 0-4 5-9 10 - 14 15 - 19 20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+ 18+

13,106 5.0% 5.2% 5.6% 5.5% 4.8% 10.4% 12.0% 15.9% 16.1% 10.7% 6.2% 2.4% 80.8%

72,291 5.6% 5.4% 5.7% 5.6% 5.3% 10.9% 12.9% 15.7% 14.5% 9.4% 6.1% 2.9% 79.9%

124,101 5.6% 5.5% 5.8% 5.7% 5.2% 10.7% 13.1% 15.9% 14.7% 9.4% 5.8% 2.5% 79.5%

48.0% 52.0%

47.5% 52.5%

48.0% 52.0%

48.3% 51.7%

47.9% 52.1%

48.4% 51.6%

48.4% 51.6%

48.0% 52.0%

48.5% 51.5%

Latitude:

36.60127

Longitude: -79.861859

2000 Population by Sex Males Females 2008 Population by Sex Males Females 2013 Population by Sex Males Females

6629 Greensboro Rd

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

On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224

2/10/2009

Page 3 of 8

Market Profile Martinsville-Henry County

6629 Greensboro Rd.

6629 Greensboro Rd

6629 Greensboro Rd

Ridgeway, VA 24148

Ridgeway, VA 24148

Ridgeway, VA 24148

Drivetime: 10 minutes

Drivetime: 20 minutes

Drivetime: 30 minutes

2000 Population by Race/Ethnicity Total White Alone Black Alone American Indian Alone Asian or Pacific Islander Alone Some Other Race Alone Two or More Races Hispanic Origin Diversity Index

13,799 76.3% 21.2% 0.1% 0.6% 0.7% 1.0% 1.9% 39.6

77,241 71.2% 25.9% 0.1% 0.4% 1.4% 0.9% 3.2% 46.2

128,551 74.7% 22.6% 0.2% 0.4% 1.3% 0.8% 3.0% 42.7

2008 Population by Race/Ethnicity Total White Alone Black Alone American Indian Alone Asian or Pacific Islander Alone Some Other Race Alone Two or More Races Hispanic Origin Diversity Index

13,460 73.4% 23.1% 0.1% 0.9% 1.1% 1.4% 2.9% 44.1

74,042 68.4% 27.5% 0.2% 0.6% 2.1% 1.2% 4.8% 50.6

125,784 72.2% 23.9% 0.2% 0.5% 2.0% 1.1% 4.5% 47.0

2013 Population by Race/Ethnicity Total White Alone Black Alone American Indian Alone Asian or Pacific Islander Alone Some Other Race Alone Two or More Races Hispanic Origin Diversity Index

13,108 71.4% 24.3% 0.1% 1.1% 1.4% 1.7% 3.7% 47.2

72,290 66.7% 28.3% 0.2% 0.7% 2.7% 1.4% 6.0% 53.4

124,097 70.7% 24.6% 0.2% 0.6% 2.6% 1.3% 5.6% 49.9

2000 Population 3+ by School Enrollment Total Enrolled in Nursery/Preschool Enrolled in Kindergarten Enrolled in Grade 1-8 Enrolled in Grade 9-12 Enrolled in College Enrolled in Grad/Prof School Not Enrolled in School

13,369 1.4% 0.8% 12.5% 5.2% 2.8% 0.9% 76.5%

74,776 1.4% 1.3% 10.8% 5.5% 3.3% 0.5% 77.2%

124,273 1.4% 1.4% 10.9% 5.4% 3.2% 0.4% 77.2%

2008 Population 25+ by Educational Attainment Total Less than 9th Grade 9th - 12th Grade, No Diploma High School Graduate Some College, No Degree Associate Degree Bachelor's Degree Graduate/Professional Degree

9,814 7.9% 15.2% 29.6% 18.0% 7.5% 14.3% 7.6%

53,100 11.2% 16.9% 34.4% 17.5% 6.8% 8.6% 4.5%

90,104 11.5% 17.2% 35.0% 17.7% 6.7% 7.8% 4.1%

Latitude:

36.60127

Longitude: -79.861859

6629 Greensboro Rd

Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different race/ ethnic groups. Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2008 and 2013.

©2008 ESRI

On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224

2/10/2009

Page 4 of 8

Market Profile Martinsville-Henry County

6629 Greensboro Rd.

6629 Greensboro Rd

6629 Greensboro Rd

Ridgeway, VA 24148

Ridgeway, VA 24148

Ridgeway, VA 24148

Drivetime: 10 minutes

Drivetime: 20 minutes

Drivetime: 30 minutes

2008 Population 15+ by Marital Status Total Never Married Married Widowed Divorced

11,261 20.2% 61.7% 7.8% 10.3%

61,366 22.2% 57.2% 9.3% 11.3%

103,926 21.9% 58.8% 8.7% 10.7%

2000 Population 16+ by Employment Status Total In Labor Force Civilian Employed Civilian Unemployed In Armed Forces Not in Labor Force

10,977 59.6% 56.2% 3.3% 0.1% 40.4%

61,925 58.4% 54.5% 3.8% 0.1% 41.6%

102,842 60.0% 56.4% 3.5% 0.1% 40.0%

2008 Civilian Population 16+ in Labor Force Civilian Employed Civilian Unemployed

93.2% 6.8%

92.2% 7.8%

92.6% 7.4%

2013 Civilian Population 16+ in Labor Force Civilian Employed Civilian Unemployed

93.8% 6.2%

92.7% 7.3%

93.1% 6.9%

2000 Females 16+ by Employment Status and Age of Children Total Own Children < 6 Only Employed/in Armed Forces Unemployed Not in Labor Force Own Children < 6 and 6-17 Only Employed/in Armed Forces Unemployed Not in Labor Force Own Children 6-17 Only Employed/in Armed Forces Unemployed Not in Labor Force No Own Children < 18 Employed/in Armed Forces Unemployed Not in Labor Force

5,825 6.1% 4.2% 0.5% 1.5% 4.1% 2.1% 0.4% 1.6% 20.1% 15.1% 0.9% 4.2% 69.7% 30.2% 1.4% 38.0%

33,108 6.5% 4.2% 0.5% 1.8% 4.7% 2.7% 0.4% 1.6% 17.1% 12.3% 0.8% 3.9% 71.7% 29.5% 1.9% 40.4%

54,263 6.7% 4.3% 0.5% 1.9% 4.9% 2.9% 0.3% 1.7% 17.3% 12.7% 0.7% 3.9% 71.1% 30.5% 1.9% 38.7%

Latitude:

36.60127

Longitude: -79.861859

6629 Greensboro Rd

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

©2008 ESRI

On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224

2/10/2009

Page 5 of 8

Market Profile Martinsville-Henry County

6629 Greensboro Rd. Latitude:

36.60127

Longitude: -79.861859

6629 Greensboro Rd

6629 Greensboro Rd

Ridgeway, VA 24148

Ridgeway, VA 24148

Ridgeway, VA 24148

Drivetime: 10 minutes

Drivetime: 20 minutes

Drivetime: 30 minutes

5,591 0.3% 5.3% 26.5% 2.2% 12.8% 3.7% 0.9% 5.3% 38.8% 4.2%

30,355 0.5% 8.0% 28.5% 2.0% 11.4% 4.3% 1.1% 4.3% 36.9% 3.1%

54,120 0.7% 8.8% 28.4% 2.3% 11.2% 4.7% 1.1% 4.2% 35.5% 3.1%

5,590 55.5% 12.1% 18.5% 10.7% 14.2% 12.8% 31.7% 0.1% 5.6% 3.9% 15.0% 7.1%

30,352 46.9% 8.6% 15.7% 9.8% 12.8% 14.1% 39.0% 0.2% 7.1% 5.0% 17.6% 9.0%

54,120 45.1% 8.3% 14.7% 9.2% 12.9% 14.5% 40.3% 0.4% 7.5% 5.7% 17.5% 9.2%

6,056 84.8% 10.7% 0.1% 1.3% 1.4% 1.6%

33,102 80.9% 15.0% 0.4% 1.1% 1.0% 1.6%

56,800 80.9% 15.0% 0.4% 1.2% 0.9% 1.6%

6,056 98.4% 3.0% 14.1% 40.5% 15.4% 14.1% 2.0% 3.3% 3.4% 2.6% 1.6% 21.4

33,100 98.4% 2.7% 12.5% 39.8% 15.7% 13.5% 2.9% 5.4% 4.0% 2.0% 1.6% 22.2

56,801 98.4% 2.9% 10.7% 36.3% 15.7% 15.7% 4.3% 6.7% 4.0% 2.1% 1.6% 23.5

5,724 7.4% 29.7% 40.7% 16.5% 4.2% 1.5% 1.9

32,296 10.3% 32.8% 35.2% 15.9% 4.3% 1.6% 1.8

52,856 9.3% 30.4% 35.8% 17.4% 5.1% 1.9% 1.9

2008 Employed Population 16+ by Industry Total Agriculture/Mining Construction Manufacturing Wholesale Trade Retail Trade Transportation/Utilities Information Finance/Insurance/Real Estate Services Public Administration 2008 Employed Population 16+ by Occupation Total White Collar Management/Business/Financial Professional Sales Administrative Support Services Blue Collar Farming/Forestry/Fishing Construction/Extraction Installation/Maintenance/Repair Production Transportation/Material Moving 2000 Workers 16+ by Means of Transportation to Work Total Drove Alone - Car, Truck, or Van Carpooled - Car, Truck, or Van Public Transportation Walked Other Means Worked at Home 2000 Workers 16+ by Travel Time to Work Total Did Not Work at Home Less than 5 minutes 5 to 9 minutes 10 to 19 minutes 20 to 24 minutes 25 to 34 minutes 35 to 44 minutes 45 to 59 minutes 60 to 89 minutes 90 or more minutes Worked at Home Average Travel Time to Work (in min) 2000 Households by Vehicles Available Total None 1 2 3 4 5+ Average Number of Vehicles Available

6629 Greensboro Rd

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

©2008 ESRI

On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224

2/10/2009

Page 6 of 8

Market Profile Martinsville-Henry County

6629 Greensboro Rd.

6629 Greensboro Rd

6629 Greensboro Rd

Ridgeway, VA 24148

Ridgeway, VA 24148

Ridgeway, VA 24148

Drivetime: 10 minutes

Drivetime: 20 minutes

Drivetime: 30 minutes

2000 Households by Type Total Family Households Married-couple Family With Related Children Other Family (No Spouse) With Related Children Nonfamily Households Householder Living Alone Householder Not Living Alone

5,734 71.6% 55.9% 22.2% 15.7% 10.3% 28.4% 25.4% 3.0%

32,250 67.9% 49.3% 20.0% 18.6% 11.8% 32.1% 28.7% 3.4%

52,869 69.8% 52.3% 21.4% 17.6% 11.0% 30.2% 26.8% 3.3%

Households with Related Children Households with Persons 65+

32.4% 27.7%

31.7% 28.5%

32.4% 27.6%

2000 Households by Size Total 1 Person Household 2 Person Household 3 Person Household 4 Person Household 5 Person Household 6 Person Household 7+ Person Household

5,734 25.4% 37.0% 18.7% 13.1% 4.3% 0.9% 0.5%

32,250 28.7% 35.1% 17.7% 12.2% 4.3% 1.2% 0.8%

52,869 26.8% 35.5% 18.5% 12.7% 4.4% 1.3% 0.8%

2000 Households by Year Householder Moved In Total Moved in 1999 to March 2000 Moved in 1995 to 1998 Moved in 1990 to 1994 Moved in 1980 to 1989 Moved in 1970 to 1979 Moved in 1969 or Earlier Median Year Householder Moved In

5,723 13.8% 23.8% 13.3% 18.3% 14.0% 16.8% 1990

32,295 15.1% 24.1% 13.5% 16.0% 12.6% 18.7% 1991

52,855 14.3% 24.0% 13.8% 16.7% 13.0% 18.2% 1991

2000 Housing Units by Units in Structure Total 1, Detached 1, Attached 2 3 or 4 5 to 9 10 to 19 20+ Mobile Home Other

6,108 74.8% 0.9% 2.3% 2.2% 1.3% 0.8% 1.9% 15.7% 0.0%

35,221 71.5% 1.0% 2.7% 3.3% 3.1% 2.0% 2.1% 14.1% 0.0%

57,666 71.1% 0.9% 2.0% 2.6% 2.5% 1.5% 1.7% 17.5% 0.1%

2000 Housing Units by Year Structure Built Total 1999 to March 2000 1995 to 1998 1990 to 1994 1980 to 1989 1970 to 1979 1969 or Earlier Median Year Structure Built

6,120 1.9% 4.9% 6.2% 13.4% 22.5% 51.2% 1970

35,238 1.4% 4.9% 6.6% 13.3% 18.9% 54.9% 1967

57,726 1.7% 6.2% 7.2% 14.7% 19.5% 50.7% 1970

Latitude:

36.60127

Longitude: -79.861859

6629 Greensboro Rd

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

©2008 ESRI

On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224

2/10/2009

Page 7 of 8

Market Profile Martinsville-Henry County

6629 Greensboro Rd. Latitude:

36.60127

Longitude: -79.861859

6629 Greensboro Rd

6629 Greensboro Rd

Ridgeway, VA 24148

Ridgeway, VA 24148

6629 Greensboro Rd Ridgeway, VA 24148

Drivetime: 10 minutes

Drivetime: 20 minutes

Drivetime: 30 minutes

Southern Satellites Heartland Communities Salt of the Earth

Southern Satellites Salt of the Earth Heartland Communities

Top 3 Tapestry Segments 1. 2. 3.

Southern Satellites Prosperous Empty Neste Salt of the Earth

2008 Consumer Spending shows the amount spent on a variety of goods and services by households that reside in the market area. Expenditures are shown by broad budget categories that are not mutually exclusive. Consumer spending does not equal business revenue. Apparel & Services: Total $ $9,489,791 $45,359,977 $75,222,167 Average Spent $1,650.69 $1,440.59 $1,428.31 Spending Potential Index 61 54 53 Computers & Accessories: Total $ $959,456 $4,648,697 $7,627,630 Average Spent $166.89 $147.64 $144.83 Spending Potential Index 70 62 61 Education: Total $ $5,026,198 $25,416,923 $40,678,747 Average Spent $874.27 $807.22 $772.41 Spending Potential Index 64 59 56 Entertainment/Recreation: Total $ $17,360,213 $80,404,343 $135,060,840 Average Spent $3,019.69 $2,553.57 $2,564.53 Spending Potential Index 81 69 69 Food at Home: Total $ $22,284,982 $105,941,640 $176,842,353 Average Spent $3,876.32 $3,364.62 $3,357.87 Spending Potential Index 79 69 69 Food Away from Home: Total $ $14,975,083 $71,547,064 $118,941,594 Average Spent $2,604.82 $2,272.27 $2,258.46 Spending Potential Index 76 66 66 Health Care: Total $ $21,161,151 $98,960,764 $166,039,827 Average Spent $3,680.84 $3,142.91 $3,152.75 Spending Potential Index 90 77 77 HH Furnishings & Equipment: Total $ $9,210,232 $42,599,380 $70,885,604 Average Spent $1,602.06 $1,352.92 $1,345.97 Spending Potential Index 70 59 59 Investments: Total $ $3,575,271 $16,541,256 $26,244,330 Average Spent $621.89 $525.34 $498.33 Spending Potential Index 61 52 49 Retail Goods: Total $ $124,836,262 $577,144,162 $971,773,298 Average Spent $21,714.43 $18,329.60 $18,451.98 Spending Potential Index 80 68 68 Shelter: Total $ $60,464,053 $285,927,988 $470,508,355 Average Spent $10,517.32 $9,080.83 $8,933.99 Spending Potential Index 68 58 58 TV/Video/Sound Equipment: Total $ $6,245,497 $30,226,267 $49,968,465 Average Spent $1,086.36 $959.96 $948.80 Spending Potential Index 76 67 66 Travel: Total $ $7,937,074 $36,340,181 $60,175,579 Average Spent $1,380.60 $1,154.13 $1,142.61 Spending Potential Index 73 61 61 Vehicle Maintenance & Repairs: Total $ $4,542,932 $21,074,247 $35,341,911 Average Spent $790.21 $669.30 $671.07 Spending Potential Index 80 67 68

Data Note: The Spending Potential Index represents the amount spent in the area relative to a national average of 100. Source: Expenditure data are derived from the 2004 and 2005 Consumer Expenditure Surveys, Bureau of Labor Statistics. ESRI.

©2008 ESRI

On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224

2/10/2009

Page 8 of 8

Darla Main-Schneider 1014 Mulberry Road Martinsville, VA 24112 (276) 632-0454 [email protected]

EDUCATION The French Culinary Institute, New York, NY Diploma

Jan 2009

• Intensive eight week course of study with 240 hours of hands-on training in artisanal breads from France, Germany/ Middle Europe, Italy, and other countries. • Coursework also included owning/operating a bakery, introduction to diabetic and gluten free baking, and advanced braiding techniques. University of Wisconsin-Milwaukee, Milwaukee, WI

May 2002

MBA, Executive Business Program

Bloomfield College, Bloomfield, NJ

May 1996

BS, Business w/Manufacturing and Operations

Hawkeye Community College, Waterloo, IA

May 1986

AS, Architectural and Construction

EXPERIENCE MasterBrand Cabinets, Martinsville, VA Materials Manager

2005 – 2008

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

2005 - 1996

Allied Signal Aerospace, Teterboro, NJ Production Planner

1996 - 1999

Rotary Power International, Previously John Deere REDIV, WoodRidge, NJ Production Control Supervisor John Deere Technologies, WoodRidge, NJ Government Property Administrator

1992 - 1996

ADDITIONAL EXPERIENCE Volunteer at several functions for James Beard Foundation and God’s Love We Deliver Worked in all areas of Food Service during college days, including the Jefferson Inn, NJ CERTIFICATIONS Lean Certification, University of Tennessee, 2001, Knoxville, TN Six Sigma Greenbelt Certification, 2000, Eaton Corporation, Watertown, WI APICS Classes, 1996-1998, Teterboro, NJ Numerous courses on Leadership and Management Skills, Diversity, Communication

1984 - 1992

One body, One planet. Eat well.