Busniess Plan

By Alex Wiseman

For ENT 655

I. EXECUTIVE SUMMARY

A. Vision and Execution.pp. 4-5

B. Mission Statementpp. 5

II. MARKETING PLAN OF ATTACK

A. Psychographics..pp. 6

B. Geographics..pp. 6

C. Behaviorgraphics..pp. 7

D. Demographicspp.7

E. Ideal Client.pp.8-9

F. Positioning Statementpp. 9-10

G. Product Demand Creation Assumptionspp. 10-11

III. COMPETITION

A. Barriers to Entrypp. 12

B. Market Type Assumptions Existing Market...pp. 13

C. Competitive Assumptionspp. 13

D. Industrypp. 13

E. Size..pp. 13-14

F. Growth Potential.pp. 14

G. Industry Trends..pp. 14

H. New Developments...pp. 14

I. Seasonality..pp.14

J. Geographic Locations...pp.15

K. Suppliers..pp. 15

L. Sales Channels.pp. 15

M. Basis of Competition.pp. 15

N. Other Characteristics..pp. 15-16

IV. STRATEGY

A. Introduction..pp. 16

B. How We Came to Be..pp. 16

C. Why We Came to Be..pp. 16-17

D. Profitability.pp. 17-18

E. Product Offered to Customer..pp. 18-19

F. How Product Will Benefit Users...pp. 19

G. Intellectual Property Issues...pp. 19

H. Timetable for Having Product 1.0 Available for Purchase...pp. 19

I. Cost of Product Adoption..pp. 19

J. Dependency Analysis..pp. 20-22

V. MANAGEMENT

A. Wiseman Guitar Company Personnel Plan..pp. 22-25

B. Sample Resumes..Appendix A-C

VI. FINANCIALS

A. Assumptions.......Appendix D

B. Sources & UsesAppendix E

C. Income Statement.Appendix F

D. Balance Sheet..Appendix G

E. Pro-Forma Costs.Appendix H

F. Pro-Forma Revenue..Appendix I

G. Exit Strategy.pp. 25-26

VII. APPENDIX...pp. 27-50

EXECUTIVE SUMMARY

Wiseman Guitar Company will offer high end guitars at affordable prices. The goal is to reach current players, as well as those who may quit playing because they dont think they sound good on the guitar. Offering a guitar to consumers that plays like one they cant afford will draw in musicians and students alike. Wiseman Guitar Company could be the next guitar that beginners set their sights on as they grow as musicians, intermediates pick up in order to continue progressing, and professionals acquire to sound amazing on stage or in the studio. With major players in the market, most notably Gibson, losing business because they are not willing to change and adapt as time progresses; this is the perfect opportunity to grow a company to be the next household electric guitar name.

The guitar store is a dying breed. Local music shops are losing business because Fender decided to sell online and Gibson is producing limited stock because of their current financial situation. Guitar Center is in massive debt and may go bankrupt. There are fewer and fewer outlets for musicians to find instruments and, furthermore, there are fewer items in stock to test the sound of the instrument. Since Fender is the only major manufacturer to begin selling online, there is a need for more companies to offer their product online direct to consumer. Some American made instruments use inferior parts and sell them at a higher price because they are American Made and those that do use high quality parts overprice their instruments to where average players cant afford them.

Wiseman Guitar Company has figured out how to sell high-quality instruments at the same prices as companies that sell at that price point with an inferior product. Another added benefit is that Wiseman Guitar Company will demo each of its instruments online for consumers to hear the tonal quality of any instrument they see for sale on our website. Lastly, Wiseman Guitar Company will sell direct-to-consumer, cutting out the middleman and avoiding upcharges on our instruments. This will allow us to price our instruments at an affordable price that people can actually afford.

Wiseman Guitar Company also recognizes that the music industry is ever-changing and other manufacturers keep making the same guitars, using the same basic principles, over and over again. We will design instruments to meet the needs of players who play many different genres of musicincluding music in todays music industry. This will allow players to choose an instrument that fits their personal playing style, and possibly influence the use of guitars in music that does not use guitars traditionally.

Our intended market will be electric guitar players of all ages, genders, and nationalities. Beyond that, we are catering to the average buyer who buys in the $750-1250 price range. There are between 300,000 and 310,000 people who purchased guitars in that price range based on data collected in 2016. There are no statistics out there to show how many guitar players there are in the world, however, we can safely assume that there are millions of guitar players worldwide. In the U.S. alone, in 2016, roughly 890,000 guitars were sold. The electric guitar industry sold 1.1 million units (up 6.5% from 2015) and revenues were at $540.3 million (up 8.6% from 2015)

We are also going to make a movement into the country music segment. There are basically three guitars that country music musicians play: the Telecaster, Stratocaster, and Les Paul. Honestly, the Telecaster dominates the country music segment. As country music evolves, there needs to be a guitar that fits the style of modern country music, so Wiseman Guitar Company will offer a model that is specifically designed to meet the needs of modern day country music musicians.

Growth will be accelerated through marketing and achieved through volume. Marketing strategies are set in place to advertise online because, frankly, the vast majority of the world likes to research things they want to buy online before they buy. In fact, 81% of shoppers do research online before they buy and 77% of those can be swayed by product videos that are posted online. Wiseman Guitars will reach out to YouTubers who have a large following and post guitar reviews or play original music on electric guitars. By offering a free instrument in exchange for a review, the return on investment has the potential to be great.

To reach our ideal price point, we need to sell guitars in large volumes. The creation of a production model could reduce the price by a few hundred dollars, and the profits will be made up in larger order quantities. This will allow Wiseman to branch out and start producing our own hardware and electronics in order to save money and increase profits per guitar while maintaining price consistency.

When I choose to exit the industry, I plan on leaving my business with my family for continued growth. Having generations of master luthiers to continue the tradition of innovating guitars, as the music industry changes, will be one of the key factors of success for continued growth. I believe a great business mind is key, but having knowledge of what musicians want is equally as important. I will train my successors on how I manage and innovate, which should carry on once I have retired. The Wiseman Guitar Company tradition and style will carry on, which has been what made Fender and Gibson so successful over the years.

Mission Statement

Wiseman Guitar Company will offer high-quality, American-made, electric guitars at affordable prices while maintaining an active online presence for consumer research and purchase, eliminating price hikes by the middle-man.

MARKETING PLAN OF ATTACK

Psychographics

The typical buyer of a Wiseman guitar will desire an American made electric guitar, but cant quite afford it. The average guitar purchase made in the United States is between $500 - $1000 with your price-conscious shoppers. In 2016, the average price of an electric guitar sold was $505 (https://www.statista.com/statistics/440028/average-price-electric-guitars-us/). My professional opinion is that this number is a bit low because of Amazon and eBay offerings of new electric guitars, coming from China, that sell for as low as $50. Outliers, such as the aforementioned guitars, from Amazon and eBay, can skew data a bit. Guitar sales increased by 6.4%, in units sold, going from 2,472,700 units in 2016 to 2,630,950 units in 2017 (http://www.musictrades.com/census.html).

The ideal customer for Wiseman Guitar Company will also have some, or all, of these characteristics:

Wants to get the most out of their money.

Enjoys electric guitar manufacturers who have a strong, interactive social media presence.

May find satisfaction in companies that give back to their communities/environment.

Wants a high-quality guitar for a reasonable price (without the unnecessary price gouging).

Likes to buy from companies that utilize unique characteristics, helping to define the brand.

Geographics

Wiseman Guitar Company will be a direct-to-consumer e-commerce business, however, we do understand we will likely gain local traction before reaching a national level. Wiseman Guitar Companys closest metropolitan area will be Charlotte, North Carolina. As of May 19, 2016, Charlottes total population was 827,097 (http://www.charlotteobserver.com/news/local/article78623577.html). The next major area to consider will be the state of North Carolina. As of July 1, 2017, North Carolinas total population was 10.3 Million people (http://demography.cpc.unc.edu/2017/12/20/nc-population-reaches-10-3-million-in-2017/). With the company focus being an online retailer, the next logical step is to be able to reach customers across the entire United States. As of January 25, 2018, there were, roughly, 327 Million people in the U.S. (https://www.census.gov/popclock/). Lastly, the hope is to be able to reach guitar players across the globe. As of January 25, 2018, there were roughly 7.4 Billion people in the world (https://www.census.gov/popclock/).

Behaviorgraphics

There are still millions of electric guitar players in the world. Just on YouTubes Top 50 guitar channels, there are 1.06 Billion views of guitar related channels, as of March 2012. Which may be doubled by today since YouTube is the second most used search engine in the world (http://guitartreats.com/top-50-youtube-guitar-channels). Guitar buyers are still using Guitar Center as a source to purchase guitars. Guitar Center has been working on creating a strong ecommerce presence, however, each item sold online has to be shipped from one of their stores. This means that availability may be limited to brick-and-mortar inventory, and the brick-and-mortar stores are not doing so well right now. Guitar Center still had a 2016 revenue of $2.2 Billion (https://www.forbes.com/companies/guitar-center/).

Here is a table of the top 10 guitar retailers of 2016:

Demographics

Wiseman Guitar Company will target American electric guitar musicians, and students, aged 18-65. Our target demographic will be either male or female and employed. When it comes to electric guitar students, we will focus on reaching out to any student who has passed the beginner phase and ready to buy a higher quality instrument.

HIGH QUALITY

EXPENSIVE

CHEAP

Wiseman

Fender

Gibson

PRS

BUYER PREFERENCE

LOW QUALITY

A bit about the chart

The yellow smiley face is what Wiseman Guitar Company offers electric guitar buyers. The orange square is where Fender Guitars stands in the market. The blue circle indicates Gibson stands in the market and the green stars indicates where Paul Reed Smith stands in the market. The black plus symbol indicates what electric guitar buyers preferences are when shopping for a new electric guitar. One buyer was new to guitar and the other two are considered intermediate, meaning they have played guitar for over a year and have started to learn what their personal preferences are in their ideal electric guitar.

Ideal Client

Previously, I believed my ideal client consisted of these attributes:

Buyers who desire American made electric guitars, but cant afford them.

Buyers who want to get the most out of their money.

Buyers who enjoy electric guitar manufacturers with a strong social media presence.

Buyers who find satisfaction in companies that give back to their communities.

Buyers who want high-quality guitars at an affordable price.

Buyers who like to buy from brands with unique characteristics.

Buyers who find value in instruments priced between $500 and $900.

I have since learned that most of these assumptions DO NOT matter to the end user. The person who is playing the guitar wants, basically, one thingand that is quality. I have learned through my interviews that people do not mind spending extra money to get the quality they desire. What matters most to guitar players purchasing a new electric guitar is quality and feel.

Since not everyone purchasing a new electric guitar is the player, themselves, there are a few more things to consider. When speaking with potential customers, a few did mention that if they were buying a guitar as a gift that price and reputation matter to them. Reputation is not something I had considered as a purchase factor originally. A strong social media presence can help build a reputation since many buyers are connected to social media accounts such as Facebook, Instagram, and (especially) YouTube. Every single potential customer I spoke to said they used YouTube to listen to how a guitar sounds while deciding which instrument to purchase.

In regard to price, family and friends tend to let price dictate their purchase a bit more. It is important to understand that the player is not always the purchaser. This leaves the attribute of price as a decision-making factor in the buying process for SOME buyers.

As of now, my ideal client has these attributes:

Buyers actively looking to purchase an electric guitar for themselves or someone else.

Actively uses YouTube to research electric guitars when making a purchase decsision.

Is price conscious, but insofar as to how the price matches with the quality.

Looking for an electric guitar with a good reputation.

Positioning Statement

Original:

Wiseman Guitar Company will be the frontrunner for electric guitar buyers who want a high quality, American made instrument at an affordable price. Wiseman Guitar Company believes that high quality, American made electric guitars should be available to everyone regardless of skill level or income.

Customers are finally able to acquire a professional instrument made with high quality American components, and assembled in the U.S. without having to break the bank. The customer can buy a comparable guitar from another manufacturer, if they are willing to compromise on quality or price.

Revised:

Wiseman Guitar Company will be the frontrunner for electric guitar buyers searching for quality construction and tone. Wiseman Guitar Company provides American made electric guitars at prices for all budgets. Wiseman Guitar Company believes that our high-quality, American made electric guitars can make a player out of anyone!

Points of Contact Include (but are not limited to):

FacebookEmailTwitter

YouTubeInstagramNewspaper

WebsiteBlogWord of Mouth

Materials and Messages Needed:

CameraComputerInternet

Business CardsLogoFacebook Ads

TestimonialsVideosDemonstrations

Conclusion

I learned a lot from the people I spoke with this semester. Due to life circumstances, I had an influx of people coming to my house multiple times daily, as well as some scheduled interviews with friends, and some cool run-ins with my mechanic and people in the community. This gave me an opportunity to ask questions to more people than I can even remember, however, a few things really stood out to me. The percentage of people who cared about a Made in America guitar was about 50%. Potential guitar buyers are more concerned with quality, and to a lesser extent, price. It seems that guitar players purchasing for themselves dont care about the price of the instrument as long as the price is worth the quality. Guitar purchasers who were younger, or were purchasing for someone else, put a high value on price. These buyers want to get more than their moneys worth.

Another common theme that stood out to me was that reputation mattered to many guitar purchasers. When it comes to buying a guitar that they havent heard of, like a brand-new guitar company, they desire assurances. By this, I mean available replacement parts and warranties. As I began to think about this, offering replacement parts helps build a reputation because customers know they can fix anything that breaks on their instrument. Offering a warranty on all new instruments lets customers know that they can get a replacement instrument and ease the worry of not being able to find another Wiseman Guitar like theirs.

The last major takeaway was that every single person said they used YouTube to do research on items they plan to purchase. This is HUGE in the fact that I know where to market and advertiseas well as how I should advertise. I need to utilize YouTube for sound samples of every instrument and post links in the instrument descriptions on the company website. This will help build a good reputation as well.

Product Demand Creation Assumptions

Competitors:

1. Fender

2. Gibson

3. Ibanez

The major way these 3 companies market their products is through famous musicians. For example, Eric Clapton has a signature model with Fender, Slash has a signature model with Gibson, and Paul Stanley (KISS) has a signature model with Ibanez. All three of these musicians are considered legends and either are, or will be, in the Rock and Roll Hall of Fame. While speaking with Jay Lichty, he mentioned that getting your instruments into the hands of professional musicians is one of the best ways to gain positive exposure. He did mention that they are not likely to mention your guitar during their interviews or concerts, so the best way to capture their support is through photos (and possibly videos) that can be posted on your website.

Fender

Gibson

Ibanez

MARKETING TECHNIQUES

Signature Models

Y

Y

Y

Guitar Print Publications

Y

Y

Y

Word of Mouth

Y

Y

Y

YouTube

Y

N

N

Facebook

Y

Y

Y

Instagram

Y

Y

Y

Twitter

Y

Y

Y

Trade Shows

Y

N

Y

Famous Musicians Playing?

Y

Y

Y

Direct to Consumer

Y

N

N

During the interview with Jay Lichty, he had mentioned that when he started, his marketing budget was $0. He says that it is 100% possible to advertise your product through social media without having to spend a dime. When it comes to my main competitors, they will spend vast amounts of money on print, online, and television/video spots. The big campaign for Fender right now is with their online guitar school that teaches people who want to learn to play guitar. This advertising campaign, most likely, costs in the 6 figuresand even though its about learning to play guitar, it features great guitarists playing Fender instruments. On top of that, it is openly inviting new guitar players to learn on a Fender instrument.

When it comes to Word of Mouth marketing, I like to include company swag along with it. Buying t-shirts and ball caps from your favorite company helps to spread the word. It is a good idea to keep promotional items like as pens, guitar picks, stationary, and other useful knick-knacks to pass out when meeting new clients.

COMPETITION

Wiseman Guitar Company will be entering an existing market. While my price point, design, and construction techniques will be differentit remains that I will be selling electric guitars in an established electric guitar market.

Barriers To Entry

To be quite honest, the major barriers to entry are in the initial phase of getting an electric guitar making business started. There is a good chance there are a few buyers out there looking for, exactly, what you are making and selling. Building the guitar and taking the time to market it online will be the major barriers to entry. The only challenges presented in these two aspects are money, time, and (to a lesser extent) knowledge.

Wiseman Guitar Company will be able to build one Sherry (entry level) model electric guitar, not in bulk, for $385.01, one Tom (Flat Top) model for $445.92, and one Cassidy (Cowboy) model for $412.17.

Each one of these guitars will now sell for:

Sherry - $900

Tom - $1000

Cassidy - $1000

A camera (Canon Rebel T3i) that shoot video in 1080, which is all you need for a high quality video, will cost around $400, a tripod for the camera will cost around $25, Adobe video and audio editing software will cost $32 per month, an audio interface for recording electric guitars to your computer will cost around $150, a decent head (Orange OR15H 15W) will cost $700, assuming we all have computers alreadyI wont add that cost in, recording software (FL Studio) will cost $200, and all the tools to make the guitar will cost around $2400. The total cost to make and market your product will be $3907 plus the cost of making the different models of the guitar. 4970.7

Profits on each of the guitars are as follows:

Sherry $514.99

Tom $554.08

Cassidy - $587.83

I would only need to sell 3 of each guitar to make all your money back on supplies needed to make and market my electric guitars, plus have an extra $1063.70 in profits. Reasonably, I could expect to sell my first 9 guitars in 1-3 months. Thus, the barrier to entry has been conquered and I could begin to operate for continued growth.

Market Type Assumption Existing Market

Since Wiseman Guitar Company will be operating in an existing market, there is not much that Wiseman can offer that customers have not seen before. Wiseman will try to address current issues within the market, such as overpriced instruments and lack of options. Most guitars look like each other and some genres do not have many options to choose from because of the desired tone and aesthetics. Wiseman will address these sub-niches, however, it remains that we will be offering electric guitars for sale in an already existing electric guitar market.

Competitive Assumptions

Going into an existing market where there are more boutique manufacturers than there are production manufacturers will help affirm what Wiseman Guitar Company wants to add to the marketboutique-quality guitars produced in mass quantities, thus lowering the prices. Since the CLOSEST competitor is Fender, there is really only one main company to fight for dominance with.

Conclusion

The barriers to entry are low. Many guitar makers are in the market, but only a few companies try to make their guitars in large-scale production quantities. The asking price of each guitar will allow me to sell 3 of each and make my money back, plus some extra, on all of the tools I will use to make and market each guitar. The excess will allow extra money to buy a large CNC machine to make more guitars faster. The CNC will allow me to grow at a rapid rate and become more competitive with the bigger players in the market Im targeting, such as Fender, Gibson, high-end Ibanez, and PRS. The short time frame it would take to sell the number of guitars needed to break even and the lack of many competitors means the barriers to entry are low. The factor that would make entry hard is if one of the major 2 companies wanted to oust you, but both companies are struggling right now and may not have the time, energy, or money to try to push me out of the marketplace.

Industry

My product will be offered in the Musical Instrument Manufacturing industry, more specific, the (electric) guitar industry. The NAICS code for Musical Instrument Manufacturing is 339992.

Size

The Musical Instrument Manufacturing industry had a total revenue of $7.1 Billion in 2016, with $1.81 Billion being in the Fretted Instrument category (up from $1.77 in 2015, a 2.2% increase). The electric guitar industry sold 1.1 million units (up 6.5% from 2015) and revenues were at $540.3 million (up 8.6% from 2015).

Growth Potential

The growth potential for electric guitars seems like it will remain flat as each time the market takes a dive, it climbs up again the following year to make up for the loss of the previous year. As speculation, I do see the electric guitar market increase as the digital music trend fades (I predict) over the next 5 years. The musical instrument manufacturing industry, however, I predict will continue to increase during the following years. The musical instrument manufacturing industry is now at the level it was in 2007, just before the great recession. In 2007 the total revenue of the industry was $1.80 Billion and dipped to $1.40 Billion by 2009. Each subsequent year, the industry has grown between $30 Million and $120 Million.

Industry Trends

The electric guitar is being adopted into almost every style of music right now, which used to be forbidden in hip-hop or electronic music. Smaller bodies and arm rests on instruments are highly popular. Simple instruments that remind people of how quality came with less complications and technology (people want simpler guitars, not more technologically advanced guitars). The acoustic guitar market sells more when people can come into a store and test them, however, the electric guitar market has been moving online more year in and year out.

New Developments

High priced industrial CNC machines can carve a guitar body in about 9 minutes and a guitar neck in about 8 minutes. This can help speed up production while reducing the labor cost. For example, in an 8-hour workday, a CNC machine can carve 28 guitar bodies and 28 guitar necks. A well-seasoned electric guitar luthier could, reasonably, carve 2-3 bodies and necks in one day. If you assume a 5-day work week and 48 weeks of production per year (by yourself), the CNC will make 6,720 guitars per year and the luthier will make 720 guitars per year at 3 guitars per week. If each guitar costs $1,000 each, the CNC produced guitar will make $6.72 million in guitars per year and the luthier will make $720,000 in guitars per yearonly 10.7% of the production from a CNC machine.

Seasonality

Sales will increase near Christmas time; October, November, and December.

Geographic Locations

My products will be supplied to retailers who wish to sell my product, but my focus is to sell online. I do intend to sell internationally through the internet. I do not intend to start selling internationally until year 2 or 3, this way I can learn and master domestic logistics before trying to tackle international shipping and customs.

Suppliers

I would consider the market to be filled with many suppliers. There are nearly 220 guitar manufacturers in the world, however, the vast majority of them are boutique/custom builders. I would consider my competition to have only a few suppliers with comparable instruments in price and/or quality.

Sales Channels

Electric guitar buyers are buying online more now days. There are several large online stores where electric guitar buyers shop including: Musicians Friend, Guitar Center, Sweetwater, Sam Ash, Reverb, Amazon, and eBay. Some electric guitar buyers still go into the store to test the guitar out, but online is the larger market.

Basis of Competition

I believe I have the ability to compete in the electric guitar industry. The big guy will not want to run me out of business due to the profit margins theyd have to lose to compete with my company. With most large manufacturers being in debt right now, profit margins are not something theyd be willing to give up. Im attacking a very niche market, American Made instrument buyers with smaller wallets. There arent many guitar manufacturers tackling the importance of now, meaning, everyone wants to make simpler instrumentsbut exactly like they did in the 50s or 60s. Few manufacturers are trying to make their guitars relevant, rather than nostalgic. Also, trying to build guitars that cater to specific music niches will help as well because not every style of electronic music, that wants an accompanying electric guitar in the track, meshes well with the few types of guitars that are on the market.

Other Characteristics

The major players in the electric guitar market are in debt right now. This is the perfect opportunity to make a name for yourself in the electric guitar world without being crushed by the big guys. The ability to market with popular YouTube personalities hasnt quite caught on in the electric guitar marketnor do they advertise often or outside of niche publications or websites. This mindset opens a world of possibilities to those entrepreneurs who want to go seize a market that the big guys are ignoring.

STRATEGY

Introduction

Hello. Wiseman Guitar Company is a guitar manufacturer that specializes in American made electric guitars. We use components that are manufactured here in America such as the pickups, tuning machines, bridges, stringsand we even use only woods that are native to the United States. Our mission is to offer high-quality American-made electric guitars at an affordable price.

How We Came to Be

As an electric guitar player, I am always looking for a guitar that fits me just right. When I went online to shop for a high-quality instrument I tend to gravitate to Paul Reed Smith, Fender or Gibson, however, there are VERY few options within my budget. Fender and Gibson offer a basic, stripped down, instrument for right around $1,000. If you want a guitar with all the features you desire, plan to spend AT LEAST $1500-1600. The current guitars I own come with more features than a stripped down American made guitar, but the American made guitars are still around triple the price. The compromise with having more features on a less expensive instrument is that you are getting low quality parts that have a negative impact on tone. Besides quality and how the guitar feels, tone is one of the most important qualities desired when playing an electric guitar.

Since I could not find a single instrument on the market in my price range, which is around $1000, with all the features I look for in a quality electric guitar, I determined that this niche had not been addressed yet. I have always associated electric guitars and the term American made with the best-of-the-best. There is a need for a high-quality American made electric guitar around the $1000 price range with all the features that other electric guitars, that cost much more, offer. Sowith a passion for crafting, guitar playing, and an entrepreneurial mindsetWiseman Guitar Company was born.

Why We Came to Be

Im clearly a strong advocate for high-quality craftsmanship. When it comes to guitars, the details really matter. Paul Reed Smith describes an electric guitars tone as subtractive. The idea here is that each component of a guitar, by itself, has 100% of a tone it brings to a guitarhowever, when you put the components together, they subtract an element of the purity of that component. For instance, if you gave a score of 100 to a bridge, pickups, neck wood, strings, and body wood individually, when you put them togethertheyd have a lower score. Lets say the bridge now has a score of 90, the pickups have a score of 98, the neck wood has a score of 80, the strings have a score of 91, and the body wood has a score of 95. Each component has had part of its tone subtracted because of the other elements it is now combined with and the goal is to subtract as little as possible by using higher quality parts.

With that being said, I decided that I would create an electric guitar that was made here in the United States, using high-quality American manufactured parts and building from woods native to the United States and sell them at an affordable price. On top of all of this, I noticed that country music is dominated by two electric guitarsthe Telecaster and the Gibson Les Paul (if the player doesnt like the longer scale of the Telecaster). No other company is making an electric guitar to suit the needs of country music electric guitar musicians, so I will address this niche within my niche. One of Wisemans original lineup guitars will be a country music inspired electric guitar.

Profitability (M-C-M)

According to Statista, 35% of electric guitars sold cost more than $1500 and only 22% of the market spent $200 or less on their guitars, meaning that only a small part of the electric guitar market is taken by cheap guitarsand THIS means the majority of the market is searching for higher quality instruments than what is offered in the $200 and below price range. This leaves 43% of the market buying guitars between $201-$1499. Wiseman Guitar Company can grab a share of the 35% buying guitars that cost $1500 or more by offering a guitar with the same, or better, quality for less money. At a price point of $1000, buyers know they will be buying a high-quality instrument and I may be able to capture some of the $1500+ guitar buyersbut mostly those buying closer to the $1500 price point. A wise guitar builder once told me that he was at a guitar show selling guitars for $3500 and only saw buyers that wanted to spend that much money. The buyers looking to spend $1000 werent even coming to look at his guitars because they cost too much and buyers looking to spend $10,000 on a guitar werent bothering to look at, or play, his guitars because they werent expensive enough. The lesson learned here is that price dictates the market, even when trying to offer quality with value.

The goal here is to take control of a niche that doesnt yet exist, as well as steal some market share from Fender in the country music segment. I learned that having a famous professional musician playing my instrument will help add credibility to the brand if I have photos or videos to offer potential buyers. Offering high-quality American made electric guitars at an affordable price will certainly draw in new customers based on price-point alone. Being able to sell Wiseman Guitars and get them into homes across the United States, and the world, will create repeat customers. This will help when it comes to bulk pricing on the building materials.

Buying guitar building materials in bulk will help to create a discount on the per item pricing, thus reducing the cost of manufacturing guitars. Selling in a very large volume will help influence new contracts with suppliers that do not currently offer bulk discount pricing. Eventually, the goal will be to develop our own hardware and pickups to even further reduce the pricing of the guitar, allowing for a new beginners level instrument. Many guitar experts posting content on YouTube have mentioned that a deciding factor of beginning guitarists giving up on guitar is that they dont have a quality instrument that sounds good (thus, making them sound good). Keeping beginner guitarists involved in music can help build a larger market for electric guitars in the future and one way of doing this is to offer a high-quality instrument at an entry level price. Doing this will also solidify Wisemans reputation and create repeat buyers when these beginners decide to upgrade as they progress in their skill level.

Growth Projetions

Product Offered to Customer

Wiseman Guitar Company will offer electric guitars that are American Made at affordable prices. When Wiseman Guitar Company produces a guitar that is American Made, this means that all the wood was sourced from the Appalachian Mountain Range and all major components were handcrafted in the United States, such as: the bridge, tuning keys, and pickups. Each of the minor components (components that dont affect tone) will be purchased from United States based companies. Wiseman will price each of its guitars affordably, offering an entry level guitar at $699, mid-range guitars between $799-$899, and custom shop guitars (handmade) starting at $1500.

How Product Will Benefit Users

Wiseman will offer an alternative to lower-quality, foreign-made electric guitars. Electric guitar buyers will no longer have to compromise between price, quality, and tone when searching for a new electric guitar. By purchasing a guitar made in the United States, that supports U.S. based business, each customer will be indirectly supporting the growth of their domestic economy as well.

Intellectual Property Issues

When it comes to intellectual property, the name of the company, guitar design, and logos need to be unique. Many companies make copies, and some of the larger companies do sue over copyright infringement. The most difficult intellectual property issue to overcome is the design of the electric guitar body and headstock shape. Through extensive research, a new electric guitar company would be fine making a similar design as long as it is not an exact copy.

Timetable for Having Product 1.0 Available for Purchase

Prototype Complete

April 2018

Social Media Audio Samples Released

May 2018

Player Feedback Complete

June 2018

Price Testing Complete

June 2018

Reworks Based on Feedback

August 2018

2nd Round Player Feedback Complete

September 2018

2nd Round Price Testing Complete

September 2018

Reworks Based on Final Feedback and Comments from Audio Samples Complete

October 2018

Product 1.0 Available for Purchase

December 2018

Cost of Product Adoption

I believe the cost will end up being within $50 of my original asking price, with a chance that people would be willing to spend more money on the guitar, rather than lesspossibly $100-$150 above asking price.

Dependency Analysis

After completing the last few assignments, I am realizing more and more that my direct competition are higher-end production guitars. I no longer need to consider budget guitars as competition because the quality does not match up between the instruments. Therefore, I have decided that the price range for my instrument should increase, but still remain true to pricing below my competitors. I have listed five electric guitars that I would consider direct competitors to the three models I intend to start my company with. MIA means Made in America, Gibson and Paul Reed Smith are both exclusively made in the U.S. and Ibanez is made in Japan.

Fender Stratocaster (MIA)

Fender Telecaster (MIA)

Gibson Les Paul

Paul Reed Smith SE Custom 24

Ibanez RG Prestige Series (Japan)

FEATURES

Body Wood

Alder

Ash

Mahogany

Mahogany

Ash

Neck Wood

Maple

Maple

Mahogany

Maple

Maple

Pickups

Fender

Fender

Gibson

PRS

DiMarzio

Bridge

Tremolo

Suspension

Tune-O-Matic

Tremolo

Tremolo

Binding

N

Y

Y

N

Y

Tuning Keys

Fender Locking

Fender Locking

Kluson Deluxe

PRS

Gotoh Locking

PRICING

Lowest

600

500

699

3300

1300

Highest

2000

2500

12650

11580

2200

Median

1300

1500

6675

7440

1750

SALES CHANNEL

Direct

Y

Y

N

N

N

Indirect

Y

Y

Y

Y

Y

WARRANTY

Direct?

N

N

N

N

N

Indirect?

Y

Y

Y

Y

Y

Terms

Limited, 1-2 Years

Limited, 1-2 Years

Limited, 1-2 Years

Limited, 1-2 Years

Limited, 1-2 Years

RETURN POLICY

Direct?

N

N

N

N

N

Indirect?

Y

Y

Y

Y

Y

Terms

45 Days, with limitations

45 Days, with limitations

45 Days, with limitations

45 Days, with limitations

45 Days, with limitations

After review of each competing product, here are a few conclusions I have made to make Wiseman Guitar Company competitive while maintaining our vision:

My pricing can be raised to $1000-1150 easily and still cost less than my competition. This still gives people access to high quality American made instruments at affordable pricing for the quality of the instrument. Brand reputation still counts, so the lower side of the aforementioned price range may be the best bet.

Fender is the only competition utilizing direct sales channels, while still maintaining a presence in indirect sales channels. This gives Fender an upper hand in sales because they can make a sale while a customer is on their website researching guitars. This means that Wiseman Guitar Company must utilize direct AND indirect sales channels to reach more customers.

None of the manufacturers posted warranty information or return policy information on their websites. The indirect sales channel used for my research was GuitarCenter.com and they do offer warranties (available for purchase) and a guaranteed return policy. Fender may lose direct sales because they do not offer warranties at all, and have no return policy posted. Wiseman Guitar Company will offer both a warranty and a return policy to make the purchase decision easier when a customer may be uneasy about purchasing from a brand with little, to no, reputation in the marketplace.

As far as features are concerned, binding is offered on 2 of 3 of, what I consider to be, Wisemans top competitors. One of the three top competitors uses a wood that is a controversial tone wood, meaning, some buyers believe Alder to be an inferior wood for making guitars. There is no right answer for which type of hardware to use for each instrument, just which hardware makes the most sense for the tone you are trying to achieve. I would not make any changes to the hardware or wood I am using because they are either equal, or superior, in quality compared to my competition.

When it comes to distribution channels, all of my competitors have a presence on online guitar retailers, such as guitarcenter.com, sweetwater.com, and musiciansfriend.com. Only one competitor sells guitars directly to the consumer, which was a controversial decision in the brick-and-mortar guitar retailer worldleaving some retailers to abandon Fender in the process. Wiseman Guitar Company will not utilize many brick-and-mortar stores, if any. We will focus strongly on selling direct to the consumer via our own company website and reverb.com (which is a popular guitar selling website, similar to Amazon, but only for musical instruments). Once we have developed a brand reputation and lower production costs, utilizing online guitar retailers will be the next step. With careful planning and advertising, this could be accomplished within a year after our first guitar advertisement.

MANAGEMENT

Wiseman Guitar Company Personnel Plan

Early Stages: 250 Employees

ADMINISTRATIVE

President The President manages the executive team. The President must give the final approval on all initiatives proposed by the executive team.

CEO The Chief Executive Officer (CEO) answers only to the President. The CEO is responsible for planning the future growth of the company. The CEO will make connections, promote the company, and plan future developments regarding expansion or operation changes.

CFO The Chief Financial Officer (CFO) answers to the CEO and the President. The CFO monitors all financial transactions made in the company, as well as the Human Resources department. The CFO will also find ways to save costs and boost cash flow for the company.

CMO The Chief Marketing Officer (CMO) answers to the CEO and the President. The CMO is responsible for all marketing initiatives and finding ways to promote the brand of the company. The CMO will also focus on creating and promoting company-wide culture and employee engagement.

Executive Assistant There will be an executive assistant to serve the executive team. This assistant will be responsible for scheduling all travel and meetings for the executive team. The executive assistant will also serve as a liaison between the executive board and store management when executives are not available.

HUMAN RESOURCES

HR Director The Human Resources (HR) Director will report directly to the CFO. The HR Director is responsible for overseeing all hiring and terminations made in the company. The HR Director will be in charge of all benefits enrollments (when/if offered) and manage one HR Partner.

HR Partner The Human Resources (HR) Partner will report directly to the HR Director. The HR Partner will be responsible for the application and recruitment process. The HR Partner will also take control of non-managerial tasks such as ordering uniforms, business cards, helping change names/information in the HRIS system, etc.

SALES

Sales Director The Sales Director is responsible for keeping track of each of the sales contracts and filing them properly. The Sales Manager is also responsible for generating new business and will assist the marketing team in strategies to help achieve higher sales.

Inventory Manager The Inventory Manager reports directly to the Sales Director. The Inventory Manager works with the Sales Director to fill the inventory with the instruments needed. The Inventory Manager also updates the website as new instruments are completed and ready for sale.

ACCOUNTING

Account Manager The Account Manager reports directly to the CFO. The account manager will oversee all accounting transactions. The Account Manager will oversee the responsibilities of the payroll clerk and will make sure all vendors and employees are paid on time.

Payroll Clerk The Payroll Clerk reports directly to the Account Manager. The Payroll Clerk is responsible for making sure all time punches were entered correctly so that employees are paid on time. The payroll clerk is also responsible for printing checks and entering direct deposit information so that employees actually receive their pay checks.

OPERATIONS

Marketing Manager The Marketing Manager reports directly to the General Manager. The Marketing Manager is responsible for all ad campaigns, merchandising, and media marketing for the dealership. The Marketing Manager may appear on radio shows, write newspaper / classifieds ads, and volunteer at local events to help promote awareness of the dealership.

Web Developer / IT The Web Developer reports directly to the Marketing Manager and the IT Manager. The Web Developer is the creator and maintenance worker for the website. The Web Developer is responsible for creating a user friendly website that still allows a lot of information to be displayed (i.e. pictures, prices, VINs, and details about each vehicle).

R&D / Innovation Lead The Research and Development / Innovation Leader will be responsible for designing new guitars, pickups, and developing more efficient ways to build a guitar. This will include trial and error testing, research on current technology and practices, and experimentation with finishes, wood drying practices, and wood breathability.

Luthier Will be responsible for building each guitar from start to finish. This will include cutting guitar bodies and necks, sanding, routing cavities for electronics, painting and finishing, setting up the instrument once its complete, and testing each instrument before adding it to inventory.

Monthly

Year 1

Year 2

ADMINISTRATIVE

President

$ 10,000.00

$ 120,000.00

$ 132,000.00

CEO

$ 8,000.00

$ 96,000.00

$ 105,600.00

CFO

$ 6,000.00

$ 72,000.00

$ 79,200.00

CMO

$ 6,000.00

$ 72,000.00

$ 79,200.00

Executive Assistant

$ 2,500.00

$ 30,000.00

$ 31,000.00

TOTAL

$ 32,500.00

$ 390,000.00

$ 427,000.00

HUMAN RESOURCES

HR Director

$ 4,000.00

$ 48,000.00

$ 49,000.00

HR Partner

$ 3,000.00

$ 36,000.00

$ 36,500.00

TOTAL

$ 7,000.00

$ 84,000.00

$ 85,500.00

SALES

Sales Director

$ 4,000.00

$ 48,000.00

$ 49,000.00

Inventory Manager

$ 3,500.00

$ 42,000.00

$ 43,000.00

TOTAL

$ 16,000.00

$ 192,000.00

$ 92,000.00

ACCOUNTING

Account Manager

$ 4,000.00

$ 48,000.00

$ 49,000.00

Payroll Clerk

$ 2,500.00

$ 30,000.00

$ 30,500.00

TOTAL

$ 9,000.00

$ 108,000.00

$ 79,500.00

OPERATIONS

Marketing Manager

$ 4,000.00

$ 48,000.00

$ 49,000.00

Web Developer / IT

$ 4,500.00

$ 54,000.00

$ 55,000.00

R&D / Innovation Lead

$ 4,000.00

$ 48,000.00

$ 49,000.00

Luthier 1

$ 3,000.00

$ 36,000.00

$ 36,500.00

Luthier 2

$ 3,000.00

$ 36,000.00

$ 36,500.00

Luthier 3

$ 3,000.00

$ 36,000.00

$ 36,500.00

TOTAL

$ 19,000.00

$ 228,000.00

$ 262,500.00

Sample Resumes

Chief Financial Officer.See Appendix A

Chief Marketing Officer.....See Appendix B

Senior HR Manager...See Appendix C

FINANCIALS

Assumptions..See Appendix D

Sources & Uses.See Appendix E

Income Statement..See Appendix F

Balance Sheet...See Appendix G

Pro-Forma Costs.See Appendix H

Pro-Forma Revenue...See Appendix I

Exit Strategy

The exit strategy I will choose will be family inheritance. The reason I am choosing to leave my company to a family member is because I want to leave something behind for my family that will provide for longer than some lump sum of cash. I am hoping to use this business to teach a son or daughter the value of hard work, failure, and accomplishment. I would like for my business to stay in my family. I am hoping that there will be very little change when I step down completely and relinquish control to my son(s) and/or daughter(s). I plan on having them work their way up through the ranks, building relationships with the stakeholders, and then training under me for many years before taking over completely. This will give them time to gel into the role and for others to get used to them running the company the way they see fit.

In the future, I can see more competitors entering this space, however, the vast majority of them (I believe) will remain boutique manufacturers. Its almost as if boutique guitar builders run their business with a sense of pretentiousness, similar to companies that make craft beer. This will allow Wiseman Guitar Company to continue to grow as a production retailer of electric guitars, and hopefully, other instruments such as basses, acoustic guitars, and other stringed instruments.

My obligation to the stakeholders is to make sure business carries on as usual. Just because Im retiring, that doesnt mean the company should stop what it has been doing for years. I want all the employees to have the same opportunities theyd have had if I was still running the company. I want all customers to continue to expect the same high-quality electric guitars theyve grown accustomed to from Wiseman Guitar Company. I want all the shareholders to have stocks that continue to grow at the rate theyve been growing, or grow even faster.

I plan to achieve this goal by making sure that my successor is one of my own family members. Its very important to me to be able to leave something behind for my children when Im gone. I will make sure my children are properly educated and get to explore life before stepping into this role. Ill hire them in at the bottom and have them work their way to the top, with guaranteed promotions after mastery in each position has been achieved. Once my son or daughter makes it to my position, I will train them and then let them start making decisions with me. Eventually, my decisions will be their decisions and the company will operate the same after Ive stepped down. I will retain some shares in the company to have a say so, if need be, but only a small amount and not enough to make a decision with my vote alone.

The timetable for the transition would look like this: (assuming 1 year mastery)

Year 1: Inventory training

Year 2: Luthier training

Year 3: Luthier training

Year 4: Sales / Marketing training

Year 5: Human Resource training

Year 6+: Executive training

(Appendix A)

SAMPLE CHIEF FINANCIAL OFFICER RESUME

SAM JOHNSON, CPA108 South Newberry Street, Dayton, OH 60606216.352.4388 Res, 216.434.4784 Cell,sjohnson@msn.com

FINANCIAL EXECUTIVE / CFO

Action-oriented leader with a strong track record of performance in multi-channel (store, catalog, and e-commerce) retail businesses

Utilize keen analysis, insights and team approach to driveorganizational improvements and implementation of bestpractices. Superior interpersonalskills, capable ofresolving multiple and complex (sales, human resources, legal,financial, operational) issues and motivating staff to peakperformance.

Proven areas of expertise include:

Strategic Planning & Organizational Leadership

Budgeting & Cost Management

Sales, Marketing & New Business Development

Process Design & Productivity Improvement

Contract Negotiations & Strategic Alliances

Corporate & Investment Finance

Growth & Expansion Strategies

Profitability & Cost Analysis

Systems & Technology Utilization

Team Building & Performance Improvement

PROFESSIONAL EXPERIENCE

Western Corporation, Chicago, ILOne of the largest providers ofelectricity and natural gas in the Upper Midwest and Northwestwith investments in Expanets, a leader in convergedcommunications solutions, and Blue Dot Services, a provider of heating, ventilation and air conditioning services toresidential and commercial customers.

CHIEF FINANCIAL OFFICER / TREASURER, AUG 2001 - PRESENT

Recruited by executive search firm to provide fiscal leadershipof external reporting, tax, treasury, risk management, andprocurement functions. Challenged to reduce expenses and build aconsolidated accounting/finance organization spanning 150+acquisitions in HBAC, Wholesale Propane, and Communications. Worked closely with 3 LOB CFOs to review functions, staffinglevels and operating expenses.

Notable Achievements:

Led effort in attracting and developing finance talent in support of$7B business. Consolidated finance activities in tax,treasury, and corporate accounting, effectively increasing staff from 10 to 24.

Accelerated cash flows by $21M through improved tax planning.

Saved over $10M in potential taxes through accounting and tax treatment in support of divestment of propane LOB.

Established centralized procurement team of 7 professionals achieving savings of $5 million in 2002.

Reviewed finance organization, established new organizational structure and recruited new Director of Taxed and CFO of Utility LOB. Created and filledChief Accountant position.

Key leader of Operation Excellence that eliminated $150M of SG&A costs through furtherorganizational restructuring and cost reductions.

Key member of team implementing enterprise-wide SAP ERP system.

Closed and relocated the finance activities supporting HVAC from Florida to South Dakota in6-month period including re-hiring, training, and transitioning duties performed by 14 finance professionals.

Coordinated effort to transition external accountants from Arthur Andersen; evaluated andselected new accounting firm and conducted re-audit of fiscal 2001.

Initiated and directed the activities associated with Sarbanes-Oxley Section 404 certification of internal control environment. Worked closely with PWC and VP of Audit and controls to perform assessment of controls of utility business.

SAM JOHNSON, CPA, Page 2 of 3

BEAN.COM, SEATTLE, WAThe $300 million direct division of Bean, one of the nation's leading fashion specialty retailers widely known for providing superior service and high quality,distinctive merchandise.

EXECUTIVE VICE PRESIDENT, MAR 1999 - FEB 2001

Reporting to CEO, recruited by executivesearch firm to leverage retail experience and drive operationaland profit improvements. Over saw Strategic Planning, Finance,Information Technology, Merchandise Planning & InventoryControl, Print Production, Human Resources, Call CenterOperations, Distribution, Supply Chain Management, and RetailStore Integration. Accountable for $145M operation and staff of900. Provided strategic vision, championed formal planningprocess, tightened integration of operating departments and revised the organizational structure to meet growth and demandsof the business.

Notable Achievements:

Developed and implemented a comprehensive strategic planning process for the businessproviding greater definition of targeted customers. Improvedalignment of merchandise with numerous defined markets resulting in sales at 130% of budget and 123% ($19M) ofpre-tax profits.

Worked closely with EVP ofMerchandising to evaluate and analyze catalog profitperformance from targeted customer segments resulting in 11%increase in per page productivity and identification of new market/catalog that procured over $65M of new business.

Championed the development andimplementation of a Balanced Scorecard business performancereporting tool to evaluate monthly results against key success measures. Developed performance measures includedfinancial, merchandise, marketing, selling and support, distribution, customer service metrics, channel performance, and information technology.

Formalized seasonal merchandiseplanning process that helped achieve record inventoryturnover rates and lowest markdown rates, effectivelyproducing a 24% reduction in inventory over prior year.

Oversaw operations of 24x7 inboundCall Center with 450+ agents. Directed implementation of tighter performance metrics, new incentives, and enhancedcoaching/training.

Managed production and mailing of 75million catalogs annually. Implemented strategic plan forPrint Production Department that included RFP processes forprinting services and paper purchasing resulting in expense reductions and cost increase avoidance in excess of $5M.

Provided continuity of leadership anddirection to the organization during the transition into debusiness of 3 new EVPs and the transition out of the business of 2 EVPs.

DIRECTOR OF FINANCE AND INVENTORY, MAR 1999 - JUN 1999

Led task force of senior management individuals to identify, assess, quantify, and implement profit improvement measures.

Notable Achievements:

Established merchandise performance standards to improve analysis and product placement in catalogs.

Increased catalog sales productivity 26% in fall of 1999 and 30% sales increase in Q4 1999.

Introduced new marketing offer that grew 1999 profits by $2.5M.

Saved $2M in postage through revised return policy.

LINDA'S CATALOGUE, DAYTON, OHLeading provider of apparel and personal care products.

VICE PRESIDENT OF MERCHANDISE PLANNING & INVENTORY CONTROL, 1997 - 1999

Promoted to new function directing 40individuals overseeing the planning, placement, and managementof $800M of inventory. Formalized performance standards acrossall classes of merchandise for evaluation of performance.

SAM JOHNSON, CPA, Page 3 of 3

Notable Achievements:

Credited with the introduction ofoperating margin analysis by item, contributing to areduction of inventory levels by 29% on a 2% increase insales.

Streamlined the merchandise planningprocess and increased inventory-buying opportunities throughthe development and implementation of data warehouse and data mining tools.

Developed Analysis Team, implemented Hyperion Essbase data analysis tools for merchandiseperformance and inventory management and shortened dataupdating from 7 days to 2.

Implemented inventory buildingstrategies to focus on "never out of stock" programs for keymerchandise collections.

VICE PRESIDENT - CONTROLLER, 1995 - 1997

Top financial position reporting to theCFO, responsible for a department of 100 individuals overseeingall financial reporting, general accounting, inventoryaccounting, sales auditing, and special handing. Recognized for integrating finance function into daily operations. Tookleadership role and worked closely with department heads to drive process and cost improvements throughout the organization.

Notable Achievements:

Streamlined shipping to Canada byleading project that involved directing IT, Distribution, Customer Service teams, and negotiating third partycontacts. Built alliances for bulk shipments, worked withCanadian government to ensure compliance, and grew marketfrom $10M to $20M. Efforts were subsequently leveraged tothe Japanese marketplace.

Identified and led effort to recapture US Duty on parcels shipped out of the UnitedStates resulting in annual savings of $125K.

DIRECTOR OF ACCOUNTING OPERATIONS, 1994 - 1995DIRECTOR OF FINANCIAL REPORTING, 1990- 1994

Reporting to the CFO, hired and directedteam of 3 individuals responsible for the Division's budgeting,forecasting, reporting, and regulatory compliance.

Notable Achievements:

Designed and led implementation ofnew financial systems including General Ledger, AccountsPayable, Catalogue Cost Accounting, and Financial Reportingfor multiple companies within the Division.

Analyzed corporate tax structure andtaxes paid producing first year savings of $70K for workerscompensation expense, $80K in property taxes, and $350K insales and use taxes.

KPMG PEAT MARWICK, COLUMBUS, OHOne of the world's leading providers of assurance, tax, legal, and financial advisoryservices.

MANAGER AND SUPERVISING SENIOR,1986 - 1990

Led and participated in numerousfinancial audits for organizations of various sizes.

Served as Office Computer ControlsSpecialist; audited Change Controls, Access Controls, andPhysical Controls to financial and non-financial systems.

Recognized as Statistical AuditSpecialist providing assurance and verification of auditingsample sizes to ensure statistically valid results.

Selected to be National Instructor in accounting and reporting standards for government services.

EDUCATION

BA,Accounting, Walsh University, OhioCertified PublicAccountant, Ohio

Sample Resume Source: http://workbloom.com/resume/sample/cfo-03.aspx

(Appendix B)

Emmitt Tether

1883 Severn Avenue | Antonia, IA 11298 | 403.555.1022 | emte@gmail.com | www.linkedin.com/in/emmitttether

CHIEF MARKETING OFFICER | PRESIDENT, MARKETING

Drives business volume through new product creation, innovative branding, effective merchandising and expansive communication distribution to increase profit growth.

Introduced and capitalized on marketing automation tools to improve marketshare by 12% in last three years, in a highly competitive product space.

Balances the need for infrastructure, automation and the team creative collaboration to see consistent ROI, ranging from 9% to 227%, on successful marketing initiatives

Proven ability to mentor and to develop leaders within the organization.

Builds consensus that consistently creates momentum to implement strategic initiatives.

Executive Leadership Competencies:

Strategic Marketing & Branding New Product & Brand Development Distribution Channel Management Public

Relations, Advertising & Promotions Brand Marketing & Consumer Communication Environmental Branding and

Dcor Interactive & Technology Enabled Marketing E-Commerce & Website Evolution Loyalty Marketing &

Customer Segmentation Market Research, Shopper Analysis & Reporting Profit & Loss Statement Accountability

PROFESSIONAL EXPERIENCE

FOOD & HEALTH ORGANICS, INC, Antonia, IA June 1999 present

A Fortune 500 firm and one of the largest organic food retailers in North America, eclipsing $2 Billion in sales in 2013. It has 65,000 employees, 975 stores in US, Europe and Canada and a vast network of distribution, manufacturing and food processing facilities.

Chief Marketing Officer (12/09-present)

Manage Food & Health Organics $114 Million advertising budget, comprised of 150+ total employees, and report directly to the Chairman/CEO/President.

Perform as General Manager to Food & Health Best Organics Generic Brands, $600 Million in sales, with full P&L oversight, starting in 2010.

Spearhead the restructuring plan for the ecommerce unit to achieve profitability within a 12 month period.

Returned $112 Million in profit in 2012 versus $12 Million loss two years prior to take over.

Lead the development of a Consumer Trend Framework to feed strategic planning and brand strategy, which provides improved data for more effective strategic, tactical and financial planning.

Contribute as an Executive Committee Member that approves IT Capital Investment corporate-wide to include marketing automation, online loyalty program and health education.

Create and communicate the consumer facing Health and Wellness communication strategy.

Senior Vice President, Marketing (4/06-12/09)

Managed a $75 Million advertising budget comprised of 150 marketing employees.

Launched Best Organics Brand in 2006 as a generic store brand versus, which yielded $170 Million in its debut year, close to $300M in 2007, $375M in 2008 and $380M+ in 2009.

Developed "CPG Like" Consumer Insight and Research organization to give Food & Health Organics a consistent methodology to measure customer reaction to programs on price, quality and product perception.

Initiated the "Life-Building Ingredients" brand positioning campaign to improve consumer education regarding using organic food and health products.

Created a best in class shopper segmentation scheme and customer segment management process.

Launched Natures Nurture Soup and Clean Eating Brands to yield $45M in debut year to $190M in 2009.

EMMITT TETHER, PAGE 2

403.555.1022 | emte@gmail.com | www.linkedin.com/in/emmitttether

Group Vice President, Marketing (12/03-4/06)

Created and developed an industry leading Customer Segmentation and Analysis organization.

Launched Ranchers Reserve Beef Brands including marketing and branding strategy implementation.

Vice President, Advertising (6/99-12/03)

Centralized and consolidated Safeway advertising and media functions to a corporate office function, resulting in a 8.3% savings of marketing budget, by working closely with Divisional Presidents to streamline use of print, point-of-sale, direct-to-consumer, and broadcast advertising.

Developed and implemented the Loyalty Club program, which consisted of 18 million households, of which 65% shop Food & Health Organics weekly.

Consolidated agency support and streamline processes to capitalize on the leverage and synergies created from a company-wide buy.

Managed a team of six and an advertising budget of $350-$400 Million.

Oversaw director-level reports for Corporate Advertising, Electronic Marketing, Card Loyalty Programs, Creative, Print and Brand Management.

CARDINAL TOYS, Chicago, IL 1988 1999

Advertising Director, International (2/93-5/99)

Handled oversight for US franchise operations advertising programs and regional operators consisting of a combined media spend of $100 Million and a staff of 8.

Launched Cardinal Toys in Asia, Europe and the Middle East and hired, trained and evaluated staff of 25 for new country start-up operations.

Developed US based support organization designed to leverage corporate marketing capabilities and efficiencies across global network retail operations.

Created and implemented brand strategy to introduce the brand to 20 new markets around the world.

Managed advertising production for international markets including, but not limited to, entities in Canada, Europe, Asia and Australia and franchised operations in Dubai, Saudi Arabia and Israel.

Advertising Manager, International (2/89-2/93)

Spearheaded adverting creation and production for Canada, Singapore, Hong Kong and England.

Reviewed work in progress and consults on advertising merchandising in international markets

Managed and cultivated agency relationships and accountable for an advertising budget of $50 Million

Advertising Coordinator (5/88-2/89)

INDUSTRY & CHARITABLE LEADERSHIP

Information Resources Incorporated (IRI), Retail Advisory Board Member, 2006 present

The Food & Health Organics Foundation, Board Member

Food & Health Organics CSR Committee Team Lead - Marketing Communications Group

EDUCATION

ARKANSAS STATE UNIVERSITY, Bachelor of Arts - Communications

Sample Resume Source: http://chameleonresumes.com/wp-content/uploads/2014/06/Chief-Marketing-Officer-Resume-Sample.pdf

(Appendix C)

WALTER DIETZ

123 Westfield Avenue Ash Ferry, NY 10522 212.123.4567 wdietz125@aol.net

SENIOR HUMAN RESOURCES MANAGER

ORGANIZATIONAL CULTURE AND VISION PROACTIVE BUSINESS LEADERSHIP POLICY PROCESS SYSTEMS

BUILDING OUTSTANDING WORKPLACES AND PERFORMANCE DRIVEN ORGANIZATIONS

Strategic business partner and catalyst for innovative initiatives that address todays business challenges of attaining revenue goals, controlling expenses, satisfying customers, and attracting/retaining talent while achieving business and profitability objectives. Capable of transitioning underperforming organizations into highly effective ones as well as leading organizations through accelerated growth or rapid change.

KEY ACCOMPLISHMENTS

Built high-performing, results-driven staffing function in a highly competitive, rapid-growth sales environment.

Devised a comprehensive succession planning and leadership development program.

Resolved bi-cultural, complex, sensitive staff-relations issues following merger. Coached executive management team on planning and communications skills to increase productivity levels.

KNOWLEDGE AND EXPERTISE

Strategic Planning/Implementation Leadership Development Selection Techniques /Assessment Tools

Restructuring and Revitalization Recruitment and Staffing Organizational Development/Change

Employee Relations HRIS Technology EEO/Regulatory Compliance

Succession Planning Climate Surveys Benefits/Compensation Management

Training/Employee Development

PROFESSIONAL EXPERIENCE

Regional Director, MET, Inc., New York, New York June 2005 Present

Subsidiary of Cendant Corporation and the largest residential real estate brokerage company in the country.

Senior HR Executive for 3 MET divisions, Habitats (rentals), The Alliance Group (re-sales), and The HomeLife Group (new development). Hold complete strategic planning, leadership, and operating management responsibility for all HR activities. Lead a direct staff of 8 HR Professionals.

Restructured the HR department, consolidating 3 separate departments into one. Reduced costs by sharing applicant databases and leveraging recruiting activities for multiple positions. Increased employee retention and satisfaction by providing more opportunities for advancement.

Strengthened relationships with functional departments, making HR a strategic partner in process development, staffing, and employee relations.

Collaborated with senior staff to manage the post-merger integration of two new development companies. Streamlined and redefined workflow, roles and responsibilities, and compensation/pay practices. Restored employee confidence and trust, overcoming initial resistance to change as employees moved from a privately held company to publicly traded corporation. Persuaded key contributors to stay with the organization.

Simplified sales employment process and agreements, eliminating time consuming contract negotiations to quickly fill critical sales positions. Modified the sales compensation plan, implementing a pay for performance model using incentives and bonus to motivate performance while reducing base pay salaries.

WALTER DIETZ

Page 2

HR Consultant/Executive Coach, At Your Best Coaching, Ash Ferry, NY August 2004 June 2005 Recruited by the president of an energy services company to effect behavior changes in the management team resulting in increased performance/productivity and to provide staffing and employee relations leadership.

Coached staff members individually, helping them to identify and overcome barriers to their success.

Devised and established HR policies and procedures.

Advised managers on employee relations matters as well as staffing and candidate selection.

Vice President, Human Resources, Action Technologies, White Plains, NY September 2000 May 2004 Promoted from Regional HR Manager to lead the corporate HR function during rapid growth through acquisition and expansion in the Northeast Region. Participated in positioning the company for sale in 2004.

Realigned/restructured the sales organization to support the new business objectives and strategy. Recruited and hired a new Sales EVP. Defined sales roles and created new position profiles.

Shortened hiring cycle to meet the demands of accelerated growth. Selected and implemented an assessment tool to evaluate both new candidates and current employees.

Reduced costs while maintaining comparable benefits by outsourcing payroll and benefits. Served as champion of the new provider and program to preserve employee confidence.

Elevated employee morale and increased confidence through communication forums, employee opinion survey, and incentive bonuses in lieu of merit increases during the "dotcom bust." Created an environment of inclusion, open communication, and honesty during times of change.

Assistant Vice President, Bank of Tokyo, New York, NY October 1997 March 2000

Challenged to lead integration efforts following the merger of 2 banks with vastly different cultures and management styles. Re-established balance in the workforce and addressed staff relations issues that arose post merger. Advised/trained expatriate management staff in EEO law, coaching and counseling, and performance management.

Employed the Birkman Method team-building instrument to foster open communications, build trust, and create a much needed unified culture among the Tokyo Mitsubishi Securities group.

Resolved employee relations issues that emerged in the post-merger environment. Earned the confidence and trust of the expatriate managers helping them to transform and strengthen relationships with the existing staff.

Designed and deployed a job-specific and goal-based Performance Management program. Trained and advised management staff on how to apply the new program.

Human Resources Manager, Xerox Business Solutions, New York, NY 1990 1997

Began tenure as the first recruiter hired. Promoted to HR Manager supporting 1,000 employees in 9 locations.

Implemented annual climate survey that became an integral part of the company culture. Survey feedback resulted in actionable plans that contributed to the overall growth and success of the company.

Created a highly effective/responsive staffing function during rapid growth; devised comprehensive leadership development program and succession plan.

Re-engineered and integrated back office functions to create a single, highly efficient order fulfillment customer interface. Cross-trained employees on multiple functions to facilitate a single point for problem resolution.

EDUCATION / PROFESSIONAL CERTIFICATIONS / AFFILIATIONS

B.A. English, State University of New York, Stony Brook, NY

Intensive Executive Development Workshop, Farr Associates

Certified Strategic Corporate Coach, Corporate Coach U

Member, Society of Human Resources Management (SHRM) and International Coaching Federation (ICF)

Sample Resume Source: https://wp.quintcareers.com/story-resume1.pdf

(Appendix D)

(Appendix E)

(Appendix F)

(Appendix G)

(Appendix H)

(Appendix I)

Year 1Annual Product Sales59.0Year 2Annual Product Sales341.0Year 3Annual Product Sales740.0

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