Table of Contents Executive Summary 5

Executive Summary 5

Introduction 5

The Product 5

Marketing 5

Operations 7

Human Resources 7

Financing 7

1 Overview of the Business Plan 9

1.1 Legal Name and Address 9

1.2 Contact Person 9

1.3 History 9

1.4 Project Description 10

1.4.1 Estimated Customer Fees: Post Installation 12

1.5 Project Benefits 12

2 Marketing Plan 13

2.1 Market and Industry overview 13

2.2 Market Analysis 13

2.3 Marketing Plan 14

2.3.1. Product 15

2.3.2 Place 15

Table 1: Sales by Distributor 16

2.3.3 Price 16

Table 2: Price Vertical 16

Table 3: Retail Pricing 17

2.3.4 Promotion 17

Table 4: Marketing Promotion Budget 17

2.4. Competitor analysis 18

2.4.1 Competitive strategy 18

2.5. Cost leadership 18

2.6. Product Differentiation 18

2.7. Marketing Objectives 19

2.8. Marketing Strategy 19

3 The Operations Plan 20

Figure 1: Operations Flow 20

3.1 Phase 1: Production Model 21

3.1.1 Intellectual Property (IP) 21

3.1.2 Design Production Model 22

3.1.3 Regulatory Requirements 23

3.1.4 Production Model Laboratory 23

Figure 2 Office Plan View 1500 ft2 24

3.2 Phase 2: Procurement for Components and Assembly 24

3.2.1 Component Sourcing 24

3.2.2 Assembly 24

Table 5: Cost Structure 25

3.3 Phase 3: Sales Operation 25

3.3.1 Traveling Sales Staff 25

3.3.2 Website 26

4 The Human Resource Plan 27

4.1 Training 27

4.2 Hours of Operation 27

Figure 3: Organizational Chart 28

4.3 Staffing Requirements 28

4.3.1 Board of Directors 28

4.3.2 President 28

4.3.3 Sales 29

4.3.4 Business Manager 29

4.3.5 Future Considerations 29

5 The Financial Plan 31

5.1 Financial Structure 31

5.2 Capital Spending 31

5.3 Financial Analysis 32

Table 6: Financial Projections 32

Table 7: Net Income Breakeven Analysis 33

5.4 Risk Analysis and Contingency Plans 33

Contingency Plan – Should AutoIQ fail to obtain CSA approval, we will peruse International Underwriters Laboratories Certification in the United States. The certification should be easier to obtain and will allow CarBack to be sold in Canada. 33

Contingency Plan – CRTC approval is required for the CarBack product because of the cell phone communications required. Should AutoIQ fail to obtain CRTC approval during the first year of operations, the venture would not be viable and operations would cease. Although the magnitude of the risk is substantial we do not perceive the likelihood of its occurrences as very high. 33

Contingency Plan – We expect production model development of CarBack to take no longer than one year. If however, the development takes longer than expected, sales would be delayed severely impacting profitability and the narrow window of sales opportunity. This risk is primarily mitigated because we have two engineers working on the development and the engineers are principles in AutoIQ. Again, the magnitude of this risk is very high but the likelihood is relatively low. 34

Contingency Plan – Our research indicates the product will be adopted by our target consumer at the projected volume and price levels. Despite this, should actual sales volume not meet projected expectations at the $150.00 price point we can lower the price. 34

Contingency Plan – Increased competition is expected as other companies reverse engineer the product and car manufactures develop similar products (as OnStar already has). If competition enters the market sooner than expected however, we may have to lower prices and/or alter the exit strategy. 34

Summary of the Business Plan 35

Appendices 36

Appendix A: Income Statement 36

Appendix B: Balance Sheet 37

Appendix C: Statement of Cash Flows 38

Appendix D: Schedules 1 – 4 39

Appendix E: Schedules 5 – 8 40

Appendix F: Schedules 9 – 11 41