· Web viewLily Good Path children’s books provide authentic American Indian folklore, ......

Lily Good Path Bakaate.Com1

Lily Good Path Becomes the Buffalo.

Children’s Book Series

2016


I. Executive SummaryLily Good Path is the character for a series of children’s books and is unique in that she follows

authentic American Indian folklore, with moral lessons to take care of the earth and respect all

native cultures.

Lily Good Path becomes the Buffalo was launched March 1, 2016 as an ebook on Amazon and a

print book on Amazon. Two books will follow this year, Lily Good Path becomes the Eagle, and

Lily Good Path becomes the Bear. Lily is also brought to life with an authentic handmade

American Indian doll and also all natural dolls for Lily and Little Storm.

The mission of Bakaate is to inspire and empower children to take care of mother earth and

respect all native cultures through literary books and dolls.

Our target audience is based on research results of women, and teachers who have not had easy

access to such a high quality book and have have an unmet need for historic and authentic

American Indian education with a moral premise. We will reach them primarily through social

media. We have have a website and we also have a facebook page for Lily Good Path becomes

the Buffalo which received over 700 followers in the first month.

Our start up costs are small as the cost to upload each book is less than $500. We use a virtual

office.

When we do move into retail, we will use third parties for manufacturing, inventory and

distribution so that our business model always has low fixed costs and thus low risk.


Table of Contents

I. Executive Summary……………………………………………………….2

Table of Contents………………………………………………………….3

II. Business Description ……………………………………………………..4Value Proposition

Mission

Vision

III. Product Description………………………………………………………4Strengths

Weakness

IV. Industry market Analysis………………………………………………..5Market Potential

Target Profile

Threats

V. Organization…………………………………………………………….. 9

Operations Plan

VI. Marketing Plan………………………………………………………......10Price, Place, Promotion

VII. Finances and Appendices………………………………………………………………..12


II. Business Description and Concept

Value Proposition

Lily Good Path children’s books provide authentic American Indian folklore, with moral lessons

to take care of the earth and respect all native cultures.

Mission and Vision

The mission for Bakaate is to inspire and empower youth to take care of mother earth and

respect all native cultures through our books and dolls.

III. Product Description

Lily Good Path Becomes the Buffalo is based on the “The Great Flood from the Yellowstone

and The White Faced Bear from the Aleuts”. There will be a series of three books about Lily

Good Path, who becomes a buffalo, then an eagle and then a bear. Lily becomes these animals

to experience different parts of life such as protecting her family, seeing new parts of the world,

and understanding the importance of protecting the earth.

Strengths

The stories are versions of newly created or traditional moral stories retold by American

Indians.

All illustrations and photography have been vetted as authentic by American Indians.

Notations are included for the different and specific tribal references for dress, jewelry, abodes,

geography, and other details: such as Hopi katsinas and Crow teepees.


The series will be complemented with dolls of Lily, her Hopi katsina costumes, her horse Little

Storm, her friend Elk Morning, and Grandfather Prays in the Morning.

All books and dolls are made from organic materials.

Weaknesses

The authors and illustrators are unknown in the book market, the publishers have no experience

in book publishing and the publishers have very little equity.

IV. Industry market Analysis

According to Bowker, the biggest group of buyers, and therefore our target audience, for

children’s book purchases are women, age 26 to 44, with an income of $50,000 to $74,000.


Summary of Trends from Bowker:

There is a marked decline in bookstore and library influence.

Friends and family take the top spot as influencers.

Parental attitudes toward kids’ e-books is evolving.

American Indian Trends

Presently, American Indian culture is held in high regard in the more densely populated

metropolitan regions of the U.S. and the EU. (Ehrmann, 2010) In order to ensure that the interest in

American Indian creations is capitalized upon, it is important that the promotion of art remains true

to the culture that produced it.

Market Potential


“I counted 191 picture books with human characters, which is a little over half (53.8 %) of the

total number of this year's picture books in our collection. Of these 191 titles, 28 (or 14.6%)

feature a child of color as the protagonist.” Source 4

The total US children’s book printed industry is valued at $3.3 Billion (about 16% of all books)

and the total electronic children’s book industry is valued at $2.1 Billion. Source 3

Of all children’s books, less than one percent are about the American Indian culture. Source 5

Thus, the value of American Indian children’s book in the printed industry is $19.8 million and

in the e-book industry is $12.6 million or a total of $32.4 million, US

According to Barnes and Noble sales, for age 3-7, there are about a 600 North and South

American children’s books.

$32.4 million/600 is $54,000 in annual revenues as a fair share of the market, in the first year.

This is .001% of the entire children’s book market in the US, or a little over 7,000 buyers.

Target Profile

As described above, the largest group of purchases: according to the US Census, there are about

12 million women with income levels $50,000 to $75,000 and about 25% of those are in the age

range of 35 – 44. Thus this target audience is about 3 million in the US.

Teachers: There are 1,519,700 elementary teachers in the US.(Source 7) In 2007–08, about 76

percent of public school teachers were female, 44 percent were under age 40, and 52 percent

had a master’s or higher degree. Source 8


Threats

Authenticity is a pitfall.

One such book is the award-winning Brother Eagle, Sister Sky, In 1992, it was among

the top-selling books in the country—a rare achievement for a children's book. Its strong

message of environmental consciousness appears to be the basis for its continuing broad

appeal. American Indian reviewers have, however, identified significant problems with

the text and with the illustrations (Seale, n.d.; Reese & Caldwell-Wood, 1997).

Valuable and heartfelt though its environmental message may be, and despite the

apparent support of Seattle's descendant, Brother Eagle, Sister Sky is seen as an example

of how Native people's words have been obscured through appropriation.

Teachers are unable to find appropriate books.

Recognition and availability are significant factors for teachers seeking to use

multicultural children's books. Lack of availability and literary content may affect

whether a teacher even knows a book exists.

The four problems teachers may encounter when seeking multicultural picture books for

young children. Highly acclaimed books that portray groups other than European

Americans, such as the American Indian themed books mentioned earlier, may be

criticized for perpetuating stereotypes and mistaken ideas.

Similarly, a single book is unlikely to give an adequate picture of any given culture.

Third, a teacher seeking high-quality multicultural books may be hampered by lack of


author/illustrator recognition and lack of access to small presses with tiny marketing

budgets.” Source 2

V. Organization and Operations

Virtual Office

Our organization has a virtual office, which includes email addresses, mobile phones, and the

Bakaate website which provides us with the tools to perform the functions of an onsite office.

The website is Bakaate.com. A printed version of the book and dolls can be purchased using

paypal. E-book and printed book requests are referred to Amazon.

Operations Plan

The stories are found and edited for the character Lily. They are illustrated by AJ Otjen and

supporting photos are obtained from original sources when needed. The design is completed by

Alphagraphics. From there they are uploaded to Kindle Direct Publishing or printed at

Alphagraphics for retail orders. All printed books ordered from Amazon are shipped directly

from Amazon and the electronic books can be purchased through Kindle. All retail orders will

ship directly from the printer to the retailer.

The dolls are manufactured by Soft Stuff Creations based in Richmond, BC, Canada. They are

industry leaders and offer premium custom plush toys and other “soft” products. Soft Stuff

Creations will directly ship products to buyers and receive payment from Bakaate. The

packaging used by Soft Stuff Creations will be environmentally friendly and biodegradable.

Customers will have the option of expedited delivery through fedex. Dolls, costumes and other

items will be shipped directly from the suppliers to the purchaser for a small shipping and


handling fees. Any inventory for dolls and costumes will be kept by suppliers and payments

made upon sale.

VI. Marketing Plan

As related above in the industry description, there is a clear need for authentic American Indian

children’s books in education and for parents. The children’s book industry is growing at a rate

of 15% per year. Our plan is to sell the books in the channels where this target buys them, and to

promote them where they are most influenced. We believe that our product is competitive with a

differentiated offering based on authenticity, a series of moral lessons, and associated dolls.

Price

Our price will be based on the competition as follows:

Comparable printed books are $10

Comparable electronic books are $7

Comparable manufactured dolls are $20

Comparable all natural dolls are $45

Place

In order to reach the broadest number of purchasers, both the printed and the digital book will be

sold through Amazon and Barnes and Noble as Bowker says these are the number one places

where children’s books are sold. Our website www.Bakaate.com will be another place to

purchase a printed copy and the Lily Good Path dolls and accessories.


Promotion

According to Bowker, awareness of children’s books is normally via references from online

sources, as well as from friends. Children will help pick out their books based on the cover art

and the familiarity with the character.

Our initial plan is to invest in social media with targeted opinion leaders. We have already

started a targeted campaign with a Lily Good Path FaceBook page , Kindle, and our Website. We

will also attend book shows with opinion leaders.

Once we get into retail stores, we plan to have book signings along with store promotions.

There are many websites that rate, refer and recommend children’s books. These websites exist

for both target audiences with the following example.

http://store.scholastic.com/shop/Books-Kindergarteners/4502~4518~7~4544

VI. Financials and Appendices

The financial plan validates the business model of Bakaate that is based on generating maximum

cash flows requiring a minimal investment from the owners. The financial plan takes advantage

of the grant available from the Indian Equity Fund as the major source of startup money. The

capital structure of the firm is in the table below followed by the initial start up costs.


The next two pages are projected costs.


2016Column1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Number of Amazon Printed Books 0 0 0 100 75 50 125 100 75 150 125 200 1000Number of Retail Printed Books 0 0 0 50 0 0 1000 0 0 0 1000 0 2050

Electronic Books 0 0 0 100 75 50 125 100 75 150 125 100 900Authentic Dolls 0 0 0 0 0 0 25 20 15 25 20 15 120

Organic Lily Dolls 0 0 0 0 0 0 0 0 0 0 0 0 0Little Storm 0 0 0 0 0 0 0 0 0 0 0 0 0Costumes 0 0 0 0 0 0 0 0 0 0 0 0 0

COSTCost Per Unit Column1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

$7.00 Amazon Printed Books $0.00 $0.00 $0.00 $700.00 $525.00 $350.00 $875.00 $700.00 $525.00 $1,050.00 $875.00 $1,400.00 $7,000.00$3.00 Retail Printed Books $0.00 $0.00 $0.00 $700.00 $0.00 $0.00 $3,000.00 $0.00 $0.00 $0.00 $3,000.00 $0.00 $6,700.00$1.20 Electronic Books $0.00 $0.00 $0.00 $119.70 $89.78 $59.85 $149.63 $119.70 $89.78 $179.55 $149.63 $119.70 $1,077.30

$50.00 Authentic Dolls $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,250.00 $1,000.00 $750.00 $1,250.00 $1,000.00 $750.00 $6,000.00$7.00 Organic Lily Dolls $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00$8.00 Little Storm $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00$5.00 Costumes $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

TOTAL PRODUCTION COST $0.00 $0.00 $0.00 $1,519.70 $614.78 $409.85 $5,274.63 $1,819.70 $1,364.78 $2,479.55 $5,024.63 $2,269.70 $20,777.30

Credit Card Processing Fees -$ -$ -$ 42.48$ 31.86$ 23.11$ 184.34$ 117.48$ 100.61$ 143.09$ 126.22$ 184.35$ 953.53$

Column1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALMarketing

Social Media/Facebook/Amazon $0.00 $0.00 $0.00 $650.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $1,000.00 $1,000.00 $2,950.00Book Shows $0.00 $0.00 $0.00 $0.00 $0.00 $200.00 $0.00 $0.00 $200.00 $0.00 $0.00 $200.00 $600.00

Telephone $0.00 $0.00 $0.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $1,350.00Vistaprint Virtual Office $0.00 $0.00 $0.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $18.00 $162.00Transportation & Fuel $0.00 $0.00 $0.00 $30.00 $30.00 $80.00 $30.00 $30.00 $80.00 $30.00 $30.00 $80.00 $420.00Miscellaneous $0.00 $0.00 $0.00 $25.00 $25.00 $100.00 $25.00 $25.00 $100.00 $25.00 $25.00 $100.00 $450.00

TOTAL SG&A $0.00 $0.00 $0.00 $873.00 $273.00 $598.00 $273.00 $273.00 $598.00 $273.00 $1,223.00 $1,548.00 $5,932.00

TOTAL COST $0.00 $0.00 $0.00 $2,435.18 $919.63 $1,030.96 $5,731.97 $2,210.18 $2,063.38 $2,895.64 $6,373.84 $4,002.05 $27,662.83

2017NUMBER JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL





$7.00 Amazon Printed Books $700.00 $1,400.00 $1,400.00 $2,800.00 $1,400.00 $2,100.00 $3,500.00 $1,400.00 $1,400.00 $3,500.00 $2,100.00 $5,600.00 $27,300.00$2.00 Retail Printed Books $200.00 $400.00 $400.00 $800.00 $400.00 $600.00 $1,000.00 $400.00 $400.00 $1,000.00 $600.00 $1,600.00 $7,800.00$1.00 Electronic Books $100.00 $200.00 $200.00 $400.00 $200.00 $300.00 $500.00 $200.00 $200.00 $500.00 $300.00 $800.00 $3,900.00

$54.00 Authentic Dolls $1,620.00 $1,620.00 $1,620.00 $2,700.00 $1,620.00 $1,620.00 $2,700.00 $1,620.00 $1,620.00 $2,700.00 $1,620.00 $3,780.00 $24,840.00$7.00 Organic Lily Dolls $0.00 $0.00 $7,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $7,000.00$8.00 Little Storm $0.00 $0.00 $8,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $8,000.00$5.00 Costumes $0.00 $0.00 $2,500.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,500.00

TOTAL PRODUCTION COST $2,620.00 $3,620.00 $21,120.00 $6,700.00 $3,620.00 $4,620.00 $7,700.00 $3,620.00 $3,620.00 $7,700.00 $4,620.00 $11,780.00 $81,340.00

Credit Card Processing Fees 118.70$ 168.70$ 208.70$ 293.65$ 183.70$ 228.70$ 398.63$ 233.70$ 258.70$ 348.63$ 253.70$ 609.18$ 3,304.68$

Column1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALMarketingSocial Media/Facebook/Amazon 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 600.00$ Book Shows -$ -$ 200.00$ -$ -$ -$ 200.00$ -$ -$ -$ 200.00$ -$ 600.00$ Telephone 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 1,800.00$ Vistaprint Virtual Office 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 240.00$ Transportation & Fuel 30.00$ 30.00$ 80.00$ 30.00$ 30.00$ 30.00$ 80.00$ 30.00$ 30.00$ 30.00$ 80.00$ 30.00$ 510.00$ Miscellaneous 30.00$ 30.00$ 120.00$ 30.00$ 30.00$ 30.00$ 120.00$ 30.00$ 30.00$ 30.00$ 120.00$ 30.00$ 630.00$

TOTAL SG&A 280.00$ 280.00$ 620.00$ 280.00$ 280.00$ 280.00$ 620.00$ 280.00$ 280.00$ 280.00$ 620.00$ 280.00$ 4,380.00$

TOTAL COST $3,018.70 $4,068.70 $21,948.70 $7,273.65 $4,083.70 $5,128.70 $8,718.63 $4,133.70 $4,158.70 $8,328.63 $5,493.70 $12,669.18 $89,024.68

SELLING, GENERAL & ADMINISTRATIVE COSTS








$7.00 Amazon Printed Books $1,400.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,800.00 $2,100.00 $2,100.00 $2,100.00 $4,200.00 $3,500.00 $5,600.00 $32,200.00$2.00 Retail Printed Books $2,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,000.00 $0.00 $0.00 $2,000.00 $0.00 $0.00 $6,000.00$1.00 Electronic Books $200.00 $300.00 $300.00 $300.00 $300.00 $400.00 $300.00 $300.00 $300.00 $600.00 $500.00 $800.00 $4,600.00

$58.32 Authentic Dolls $1,749.60 $1,749.60 $1,749.60 $2,916.00 $1,749.60 $1,749.60 $2,916.00 $1,749.60 $1,749.60 $2,916.00 $1,749.60 $4,082.40 $26,827.20$7.00 Organic Lily Dolls $0.00 $0.00 $7,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $7,000.00$8.00 Little Storm $0.00 $0.00 $8,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $8,000.00$5.00 Costumes $0.00 $0.00 $5,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5,000.00

TOTAL PRODUCTION COST $5,349.60 $4,149.60 $24,149.60 $5,316.00 $4,149.60 $4,949.60 $7,316.00 $4,149.60 $4,149.60 $9,716.00 $5,749.60 $10,482.40 $89,627.20

Credit Card Processing Fees 413.69$ 208.69$ 208.69$ 208.69$ 208.69$ 253.69$ 468.66$ 218.66$ 218.66$ 628.60$ 338.59$ 444.15$ 3,819.45$

Column1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALMarketingSocial Media/Facebook/Amazon 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 600.00$ Book Shows -$ -$ 200.00$ -$ -$ -$ 200.00$ -$ -$ -$ 200.00$ -$ 600.00$ Telephone 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 1,800.00$ Vistaprint Virtual Office 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 240.00$ Transportation & Fuel 30.00$ 30.00$ 80.00$ 30.00$ 30.00$ 30.00$ 80.00$ 30.00$ 30.00$ 30.00$ 80.00$ 30.00$ 510.00$ Miscellaneous 30.00$ 30.00$ 120.00$ 30.00$ 30.00$ 30.00$ 120.00$ 30.00$ 30.00$ 30.00$ 120.00$ 30.00$ 630.00$

TOTAL SG&A 280.00$ 280.00$ 620.00$ 280.00$ 280.00$ 280.00$ 620.00$ 280.00$ 280.00$ 280.00$ 620.00$ 280.00$ 4,380.00$

TOTAL COST $6,043.29 $4,638.29 $24,978.29 $5,804.69 $4,638.29 $5,483.29 $8,404.66 $4,648.26 $4,648.26 $10,624.60 $6,708.19 $11,206.55 $97,826.65


The next page is projected sales.



Amazon Printed Books 0 0 0 100 75 50 125 100 75 150 125 200 1000Retail Printed Books 0 0 0 20 15 15 400 200 200 200 200 400 1650


Organic Lily Dolls 0 0 0 0 0 0 0 0 0 0 0 0 0Little Storm & Others 0 0 0 0 0 0 0 0 0 0 0 0 0

Costumes 0 0 0 0 0 0 0 0 0 0 0 0 0

REVENUEPrice Per Unit Column1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total

$10.00 Amazon Printed Books -$ -$ -$ 1,000.00$ 750.00$ 500.00$ 1,250.00$ 1,000.00$ 750.00$ 1,500.00$ 1,250.00$ 2,000.00$ 10,000.00$ $10.00 Number of Printed Books -$ -$ -$ 300.00$ 225.00$ 225.00$ 4,000.00$ 2,000.00$ 2,000.00$ 2,000.00$ 2,000.00$ 4,000.00$ 16,750.00$ $3.99 Electronic Books -$ -$ -$ 399.00$ 299.25$ 199.50$ 498.75$ 399.00$ 299.25$ 598.50$ 498.75$ 399.00$ 3,591.00$

$65.00 Authentic Dolls -$ -$ -$ -$ -$ -$ 1,625.00$ 1,300.00$ 975.00$ 1,625.00$ 1,300.00$ 975.00$ 7,800.00$ $15.00 Organic Lily Dolls -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $20.00 Little Storm & Others -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $10.00 Costumes -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

TOTAL REVENUE -$ -$ -$ 1,699.00$ 1,274.25$ 924.50$ 7,373.75$ 4,699.00$ 4,024.25$ 5,723.50$ 5,048.75$ 7,374.00$ $38,141.00






$10.00 Amazon Printed Books 1,000.00$ 2,000.00$ 2,000.00$ 4,000.00$ 2,000.00$ 3,000.00$ 5,000.00$ 2,000.00$ 2,000.00$ 5,000.00$ 3,000.00$ 8,000.00$ 39,000.00$ $10.00 Ratail Printed Books 1,000.00$ 2,000.00$ 2,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 3,000.00$ 3,000.00$ 4,000.00$ 1,000.00$ 2,000.00$ 7,000.00$ 28,000.00$ $3.99 Electronic Books 798.00$ 798.00$ 798.00$ 1,596.00$ 798.00$ 798.00$ 1,995.00$ 798.00$ 798.00$ 1,995.00$ 798.00$ 3,192.00$ 15,162.00$

$65.00 Authentic Dolls 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 2,275.00$ 23,725.00$ $15.00 Organic Lily Dolls -$ -$ 600.00$ 1,200.00$ 600.00$ 900.00$ 1,500.00$ 600.00$ 600.00$ 1,500.00$ 900.00$ 2,400.00$ 10,800.00$ $20.00 Little Storm & Others -$ -$ 800.00$ 1,600.00$ 800.00$ 1,200.00$ 2,000.00$ 800.00$ 800.00$ 2,000.00$ 1,200.00$ 700.00$ 11,900.00$ $10.00 Costumes -$ -$ 200.00$ 400.00$ 200.00$ 300.00$ 500.00$ 200.00$ 200.00$ 500.00$ 300.00$ 800.00$ 3,600.00$

TOTAL REVENUE 4,748.00$ 6,748.00$ 8,348.00$ 11,746.00$ 7,348.00$ 9,148.00$ 15,945.00$ 9,348.00$ 10,348.00$ 13,945.00$ 10,148.00$ 24,367.00$ $132,187.00






$10.00 Amazon Printed Books 2,000.00$ 3,000.00$ 3,000.00$ 3,000.00$ 3,000.00$ 4,000.00$ 3,000.00$ 3,000.00$ 3,000.00$ 6,000.00$ 5,000.00$ 8,000.00$ 46,000.00$ $10.00 Retail Printed Books 10,000.00$ -$ -$ -$ -$ -$ 10,000.00$ -$ -$ 10,000.00$ -$ -$ 30,000.00$ $3.99 Electronic Books 997.50$ 997.50$ 997.50$ 997.50$ 997.50$ 997.50$ 1,396.50$ 1,396.50$ 1,396.50$ 2,394.00$ 2,593.50$ 3,591.00$ 18,753.00$

$65.00 Authentic Dolls 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 1,950.00$ 2,275.00$ 23,725.00$ $15.00 Organic Lily Dolls 600.00$ 900.00$ 900.00$ 900.00$ 900.00$ 1,200.00$ 900.00$ 900.00$ 900.00$ 1,800.00$ 1,500.00$ 2,400.00$ 13,800.00$ $20.00 Little Storm & Others 800.00$ 1,200.00$ 1,200.00$ 1,200.00$ 1,200.00$ 1,600.00$ 1,200.00$ 1,200.00$ 1,200.00$ 2,400.00$ 2,000.00$ 700.00$ 15,900.00$ $10.00 Costumes 200.00$ 300.00$ 300.00$ 300.00$ 300.00$ 400.00$ 300.00$ 300.00$ 300.00$ 600.00$ 500.00$ 800.00$ 4,600.00$

TOTAL REVENUE 16,547.50$ 8,347.50$ 8,347.50$ 8,347.50$ 8,347.50$ 10,147.50$ 18,746.50$ 8,746.50$ 8,746.50$ 25,144.00$ 13,543.50$ 17,766.00$ $152,778.00


Balance Sheet

ASSETSCurrent Assets Column1 Column2 Column4 Column5

Cash 25,749.18$ 67,550.82$ 116,027.83$ Inventory 1,200.00$ 1,200.00$ (11,600.00)$ Short term Investments -$ - -$ Total 26,949.18$ 68,750.82$ 104,427.83$

Fixed Assets -$ -$ -$

TOTAL ASSETS 26,949.18$ 68,750.82$ 104,427.83$

LIABILITIESCurrent Liabilities Column1 Column2 Column4 Column5

Accounts Payable -$ -$ -$ Deferred Income Tax 1,360.68$ 6,474.35$ 6,322.70$ Total Liabilities 1,360.68$ 6,474.35$ 6,322.70$ Owner's Equity

Equity 17,878.00$ 17,878.00$ 17,878.00$ Retained Earnings 7,710.50$ 44,398.48$ 80,227.12$ Total Equity 25,588.50$ 62,276.48$ 98,105.12$

TOTAL LIABILITIES 26,949.18$ 68,750.82$ 104,427.83$

-$ Additional Financing Needed


Cash Flows

2017 2018Cash Flows from Operating Activities

Cash Collected from Customers 146,187.00$ 182,329.00$ Credit Card Charges (3,654.68)$ (4,558.23)$ Cash Paid to suppliers (74,053.76)$ (85,129.70)$ Cash Paid to SG&A (4,380.00)$ (4,380.00)$ Cash Paid to Income Tax (3,130.68)$ (9,726.38)$

Net Cash Provided by Operating Activities 16,892.12$ 20,353.15$

Cash flows from Investing Activities -$ -$

Cash flows from financing Activities -$ -$

Net Change in Cash & equivalentsCash at start of month 81,624.94$ 156,698.60$ Cash at end of month 98,517.06$ 177,051.75$


Cash flows from Investing Activities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Cash flows from financing Activities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Net Change in Cash & equivalentsCash at start of month 25,749.18$ 26,117.80$ 28,797.10$ 15,196.40$ 19,668.75$ 22,933.05$ 26,952.35$ 34,178.72$ 39,393.02$ 45,582.32$ 51,198.70$ 55,853.00$ Cash at end of month 26,117.80$ 28,797.10$ 15,196.40$ 19,668.75$ 22,933.05$ 26,952.35$ 34,178.72$ 39,393.02$ 45,582.32$ 51,198.70$ 55,853.00$ 67,550.82$

Column1 2018 Column2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecCash Flows from Operating Activities

Cash Collected from Customers 16,547.50$ 8,347.50$ 8,347.50$ 8,347.50$ 8,347.50$ 10,147.50$ 18,746.50$ 8,746.50$ 8,746.50$ 25,144.00$ 13,543.50$ 17,766.00$ Credit Card Charges (413.69)$ (208.69)$ (208.69)$ (208.69)$ (208.69)$ (253.69)$ (468.66)$ (218.66)$ (218.66)$ (628.60)$ (338.59)$ (444.15)$ Cash Paid to suppliers (5,349.60)$ (4,149.60)$ (24,149.60)$ (5,316.00)$ (4,149.60)$ (4,949.60)$ (7,316.00)$ (4,149.60)$ (4,149.60)$ (9,716.00)$ (5,749.60)$ (10,482.40)$ Cash Paid to SG&A (280.00)$ (280.00)$ (620.00)$ (280.00)$ (280.00)$ (280.00)$ (620.00)$ (280.00)$ (280.00)$ (280.00)$ (620.00)$ (280.00)$ Cash Paid to Income Tax (6,474.35)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Net Cash Provided by Operating Activities 4,029.86$ 3,709.21$ (16,630.79)$ 2,542.81$ 3,709.21$ 4,664.21$ 10,341.84$ 4,098.24$ 4,098.24$ 14,519.40$ 6,835.31$ 6,559.45$

Cash flows from Investing Activities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Cash flows from financing Activities -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Net Change in Cash & equivalentsCash at start of month 67,550.82$ 71,580.69$ 75,289.90$ 58,659.11$ 61,201.93$ 64,911.14$ 69,575.35$ 79,917.19$ 84,015.43$ 88,113.66$ 102,633.06$ 109,468.38$ Cash at end of month 71,580.69$ 75,289.90$ 58,659.11$ 61,201.93$ 64,911.14$ 69,575.35$ 79,917.19$ 84,015.43$ 88,113.66$ 102,633.06$ 109,468.38$ 116,027.83$

Income Statement

COST OF GOODS SOLDPRODUCTION 19,577.30$ $81,340.00 $102,427.20 $114,718.46 $128,484.68 $134,908.91

SG&A 6,885.53$ $7,684.68 $8,199.45 $9,183.38 $10,285.39 $10,799.66OTHER COSTS 2,607.00$ $0.00 $0.00 $0.00 $0.00 $0.00

TOTAL OPERATING EXPENSES 29,069.83$ $89,024.68 $110,626.65 $123,901.85 $138,770.07 $145,708.57

INCOME FROM OPERATIONS 9,071.18$ $43,162.33 $42,151.35 $47,209.51 $52,874.65 $55,518.39

INCOME TAX @15% 1,360.68$ $6,474.35 $6,322.70 $7,081.43 $8,218.66 $8,879.60

NET INCOME 7,710.50$ $36,687.98 $35,828.65 $40,128.09 $44,655.99 $46,638.79

ADDITION TO RETAINED EARNINGS 7,710.50$ $36,687.98 $35,828.65 $40,128.09 $44,655.99 $46,638.79

Required Rate of Return 8%Rate of Growth 12% 12% 12% 5%

Terminal Value or Horizon Value $1,554,626.32

Value of Firm $1,184,975.32


2016 2017APRIL MAY JUNE JULY AUG SEP OCT NOV DEC JAN FEB MAR

TOTAL SALES 1,699.00$ 1,274.25$ 924.50$ 7,373.75$ 4,699.00$ 4,024.25$ 5,723.50$ 5,048.75$ 7,374.00$ 4,748.00$ 6,748.00$ 8,348.00$

COST OF GOODS SOLDPRODUCTION 1,519.70$ 614.78$ 409.85$ 5,274.63$ 1,819.70$ 1,364.78$ 2,479.55$ 5,024.63$ 2,269.70$ 2,620.00$ 3,620.00$ 21,120.00$

SG&A 873.00$ 273.00$ 598.00$ 273.00$ 273.00$ 598.00$ 273.00$ 1,223.00$ 1,548.00$ 280.00$ 280.00$ 620.00$ OTHER COSTS 42.48$ 31.86$ 23.11$ 184.34$ 117.48$ 100.61$ 143.09$ 126.22$ 184.35$ 118.70$ 168.70$ 208.70$

TOTAL OPERATING EXPENSES 2,435.18$ 919.63$ 1,030.96$ 5,731.97$ 2,210.18$ 2,063.38$ 2,895.64$ 6,373.84$ 4,002.05$ 3,018.70$ 4,068.70$ 21,948.70$

INCOME FROM OPERATIONS (736.18)$ 354.62$ (106.46)$ 1,641.78$ 2,488.83$ 1,960.87$ 2,827.86$ (1,325.09)$ 3,371.95$ 1,729.30$ 2,679.30$ (13,600.70)$

INCOME TAX @15% (110.43)$ 53.19$ (15.97)$ 246.27$ 373.32$ 294.13$ 424.18$ (198.76)$ 505.79$ 259.40$ 401.90$ (2,040.11)$

NET INCOME (625.75)$ 301.43$ (90.49)$ 1,395.51$ 2,115.50$ 1,666.74$ 2,403.68$ (1,126.33)$ 2,866.16$ 1,469.91$ 2,277.41$ (11,560.60)$

ADDITION TO RETAINED EARNINGS (625.75)$ 301.43$ (90.49)$ 1,395.51$ 2,115.50$ 1,666.74$ 2,403.68$ (1,126.33)$ 2,866.16$ 1,469.91$ 2,277.41$ (11,560.60)$

Appendices

A. Top literary character dolls: Paddington Bear, The Velveteen Rabbit, and The Wild

Things. They are not organic and range in price from small for $20 to larger for $40.


This handmade doll is priced at $90. There are no dolls

with complimenting katsina costumes. Organic rag dolls are priced at $45.

Citations

1 file:///C:/Users/afran_000/Downloads/kei78569_ch03.pdf

2 http://ecrp.uiuc.edu/v3n2/mendoza.html

3http://www.publishersweekly.com/pw/by-topic/childrens/childrens-industry-news/article/

61167-children-s-books-a-shifting-market.html

4 http://ccblogc.blogspot.com/2013/07/i-see-white-people.html

5 http://www.huffingtonpost.com/kyle-zimmer/diversity-in-childrens-bo_b_5365694.html

6http://www.huffingtonpost.com/david-henry-sterry/the-inside-skinny-on-

kids_b_806300.html

7 http://www.bls.gov/k12/students.htm


8 http://nces.ed.gov/fastfacts/display.asp?id=28

9http://searchenginewatch.com/article/2350899/Google-Top-Search-Ads-Increase-Brand-

Awareness-by-6.6-Study

Others:

http://www.slideshare.net/PubTrack/childens-book-consumer-in-the-digital-age?related=4

hhtp:/ccbc.education.wisc.edu/book/pcstats.asp

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