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TRUMP UNIVERSITY WEALTH BUILDING 101

Houston for three years and understands the operations and supply
chain. She has run beading classes in her home for the past six years and
has developed advanced beading skills. Her entrepreneurial enthusiasm
and well-grounded background will enable her to build this chain of
beading stores.
Jeanne Gordon , Vice President, Marketing, is an accomplished jewelry
artist. Her passion is to design, make, and sell unique jewelry from precious
metals, minerals, and beads. Her marketing skills have enabled her to estab-
lish a consignment arts and crafts business locally and over the Internet that
has been profi table for many years.

Financial Projections (All Financial Numbers is $000)

2008 2009 2010 2011 2012
Total number of locations 1 1 1 2 3
Revenue streams
Product sales 110 180 320 500 650
Classes 30 60 80 120 250
Food/beverages 40 80 100 230 300
Total revenue 180 320 500 850 1,200
Cost of goods sold 90 160 250 425 600
Earnings from operations 8 36 55 94 140
Financing needs 100 — — 200 250
Investment Summary
Several factors have resulted in an attractive opportunity for The Beading
Café:
• The management team is strong, motivated, and experienced. Both
partners bring operational, marketing, and artistic talent to the
business.
• Revenue will come from four sources: supplies, classes, food, and
online sales.
• Profits will grow as other locations are opened, franchised, or acquired.

Higher profits will result from economies of scale for inventory, as
well as from uniform fi nancial and operational control systems.

• Profit margins are attractive and will improve with each new store
opening.

• Timeliness. No competitor has emerged to fill this niche for a social
and aesthetic beading café environment.
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