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Concept Design Studio, Inc. Erf 7180 Houland Street, Eros, Windhoek, Namibia +264 81 406 3571.

E-mail: mkagube@gmail.com www.conceptdesignstudio.com

Funding Request for Business Start-up


Owner: Michael Kagube

BUSINESS PLAN

Concept Design Studio, Inc

Description
Concept Design Studio, Inc. is seeking N$20,000 (twenty thousand Namibia dollars) cash plus a N$20,000 line of credit in start-up funding for a graphic design, web site and interactive media design business. Funding is required for additional staff and operating expenses.

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Tabke Of Contents
Tabke Of Contents
Executive Summary Executive Summary Organization Company History Mission Statement Legal Structure Services Provided Products Assets Company Operations Officers and Board Personnel Marketing Industry Trends Market and Audience Competitive Analysis Sales Plan Strategic Position Marketing Plan Financial Funding Request Balance Sheet Income Projection Breakeven Analysis Budget Sources of Funds Uses of Funds .................................19 .................................20 .................................21 .................................22 .................................23 .................................24 .................................25 .................................13 ................................14 ................................15 .................................16 .................................17 ................................18 .................................4 .................................5 .................................6 .................................7 ................................. 8 ................................. 9 .................................10 .................................11 ................................12 .................................3

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Executive Summary
The Objectives... Concept Design Studio, Inc. is being developed to offer an affordable image branding product for new start- up businesses and existing small to mid-sized companies. By purchasing from Concept Design Studio, Inc, companies can acquire a professionally design that is unique to their business, while keeping their overall costs down. We offer unique, stylish graphics for our clients. Other graphics companies may charge 10-20 times more for any graphic design of this quality. Using our less expensive services will allow our clients to direct more money into other aspects of their businesses. Our designers have over four years of experience in the web and graphics world, which gives our company a competitive edge. Our technical expertise allows us to also offer e-solutions such as, web design, e-commerce, interactive marketing, printing services, and design services for custom logos and other graphical elements. Highlights... Innovative, Professionally Designed, Affordable Products - Our products are designed with the user/client in mind. We offer quality and unique designs that are cheeper than our competeters. Experienced Developers and Management - Our management team and developers have overfour years of experience in the world of web design and graphics. Their familiarity with industry trends has taught them how to create sophisticated designs that will stand the test of time. Understanding of the Importance of a Logo - A logo is vital to a company: it represents that business and is a recognizable image to its customers. We know that no matter what else may change, companies want to stick with a logo. Thats why we strive to create unique, timeless designs. When a new business purchases a logo from us, that company can be rest assured that the logo design will work well for the entire life of the business. Customers - Concept Design Studio, Inc. will generally target home-based businesses, start-ups, and small to mid-sized companies. We will also approach larger companies through our custom graphic creation, and interactive marketing services.

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Company History
About Us The current owner of Concept Design Studio, Inc. is Michael Kagube. Future registration of our business, as well as partners, may change at any time. Concept Design Studio, Inc. employs two people, with a third to be added shortly. Concept Design Studio, Inc. is headquartered in Windhoek, Eros. We are currently a homebased company only; physical locations or facilities have not been purchased or rented. At this time, to keep costs down, the company runs from an office in the owners home. Products Because our graphics are created with the client in mind, we still offer a range of other products that are compatible to this industry. These include: graphic design (logos, Posters, Business card, Magazines, Booklets, Vouchers as well as anything that can be tangible. Services - Concept Design Studio, Inc. will be a provider of logos and graphical design, business identities, and of business-to-business solutions focusing on the home-based and small to mid-sized business market. This will be combined with strategic advertising that will drive traffic to our web site and allow businesses to showcase and promote their product/company on our site for a fee. Our services of business identity, interactive marketing and business promotion will be augmented by our ability to offer an effective range of web design and e-commerce services. How to Contact Concept Design Studio, Inc. - If you need to contact us for any reason, you can reach us at: Concept Design Studio, Inc. Erf 7180, Houland Street, Eros. Windhoek, Namibia Phone: +264 81 406 3571 E-mail: mkagube@gmail.com URL: www.conceptdesignstudio.com Client contact: Michael Kagube Owner

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Mission Statement
Mission Statement The mission of Concept Design Studio, Inc. is to become a recognizable Windhoek home-based company, utilizing the cutting edge power of interactive marketing to become a leader in the unique graphic design market. We will offer start-ups, home-based businesses, and small to mid-sized companies the opportunity to own a unique, high quality professional graphic design at a lower price than our competitors charge. Further, we plan to deliver an environment that creates trust in Concept Design Studio, Inc. as a web resource of concepts, thus Concept Design Studio. Purpose Statement To accomplish this, Concept Design Studio, Inc. will combine high quality products and cost-effective solutions along with effective and targeted marketing, while creating alliances with similar supporting products to give our customers an allaround company for their needs. As well as offering Electronic media resources and market their businesses, Concept Design Studio, Inc. will enable customers to request quotes for our other services (such as web design) and interactive media marketing.

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Legal Structure
Following is Concept Design Studio, Inc.s legal structure. Concept Design Studio, Inc. is incorporated as an S Corporation in the city of Windhoek. Legal name: Concept Design Studio, Inc. Type of company: Graphic, interactive marketing media and web site design products and services.

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Services Privided
Concept Design Studio, Inc. will be a provider of logos and graphical design, interactive media marketing and of business identities and business-to-business solutions focusing on the home-based and small to mid-sized business market. This will be combined with effective advertising that will drive clients to our company and allow businesses to showcase and promote themselves through our interactive media marketing. Our business identity and promotion applications will be strengthened by our ability to offer an effective range of web design and e- commerce services. Product sales of custorm-designed logos will also be used to drive custom logo design, web site design, and e- commerce development sales. Custom Logo and Graphic Design Custom creation of business logos. Marketing and Promotion Cutting edge interactive media marketing. Web Site Design Custom creation of web sites for clients. E-commerce Services Custom creation of e-commerce business solutions for clients.

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Products
Concept Design Studio will offer customers a range of custorm graphics to reflect their business. Marketing concepts that will showcase company services and products to their respective clients The process of designing any given element will be done with the client in mind which will also save time for both the client and our developers. Off the edge cutting marketing media is meant to reduce traditional marketing costs and expenses by putting all company services and products on mini-sized CD-ROM that is interactive. Respective clents will use this to aquire more information about a certain business without the need to go to internet as previously perceived. Saving time and money is important for any business, and especially so for our primary target market of small to mid-sized companies and home-based businesses. Logos on Demand Pre-designed logos for sale to small to mid-sized companies and home-based businesses. Customers save costs by using the interactive marketing mini CD-ROM media to increase sales and reach out to their cleints. Our graphics are sophisticated, professional designs. We focus on offering a smaller number of high- quality designs, as opposed to competing companies that sell large numbers of mostly lower-quality products.

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Assets
Following is a list of major assets owned by Graphics For You, Inc. Business Identity Our business identity, which includes logo, promotional tag, and slogan, have been developed to be used and recognized by businesses and customers. Our logo is unique to us, displaying an eye- appealing, unique symbol that is easily recognized as Concept Design Studio, Inc., creating brand labelling. Equipment We have purchased three computers, one for office use and two for product development, as well as the web site design, graphic design, and office management software required to launch the business. A Scanner, Laminator, Copier and a Printers. Intellectual Property Concept Design Studio, Inc. owns the business name Concept Design Studio, Inc and all of the logos copyrights.

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Company Operations
The following is a description of Concept Design Studio, Inc.s operations. All products and services developed by Concept Design Studio, Inc. (logo products, advertising, web design, Marketing, graphic art, etc.) will originate from designers located in Windhoek. Customer Service After purchasing services from Concept Design Studio, Inc., all customers will be able to work with the respected division of our company to allow initial enhancements of services. All forms of products will be delivered via e-mail or other electronic method. All services and associated files (except advertising) can also be requested via CDROM. In the event of an error caused by us, the customer shall be re-issued the service at no extra charge to correct the error. In the event of an error caused by the customer (such as an incorrect content in an advertisement), we will correct the error in a timely fashion as soon as we are notified by the customer. Customers will have the option of contacting us via e-mail, as well as by other means (such as a phone call or messenger service) on pre-scheduled occasions. Sales and Marketing Our promotion will focus mainly on the Namibia market (principally in Windhoek, but also in other towns). Our marketing will utilize ad campaigns targeting large numbers of webmaster-related sites, as well as individual business sites, in order to direct attention to our services. Our advertising campaign is currently in the planning stage. Production Our in-house designers continually create new graphics for sale as stock products and also provide custom services to our clients. When specialized services or heavier-thananticipated workload requires additional staffing, independent contractors or parttime help will be hired on an as-needed basis. Technology Our technology will be scrutinized each month, including hardware that pertains to services (computers, Scanners, Laminators, Copiers, Printers) as well as software programs licensed from third parties to manage our forum, banner placing, and e-commerce setup. Core technology needs are web site and graphic design software and a suite of Windows, Mac and Linux computers for development and testing. 10
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Officers and Board


Management currently consists of Michael, Owner of Concept Design Studio, Inc. He also acts as the web master, having over four years of experience in web development. Dewald De Kok will act as Assistant Manager, delivering assistance when needed and participating in required meetings, as well as delivering opinions and ideas on plans.

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Personnel
The following personnel will be required to operate the company. Personnel have been selected based on their ability to work together as a team with specialties in related projects. Michael Kagube Web Site, Graphic Designer / Manager Michael Kagube is a professional IT technician with over 10 years experience working on a variety of computer systems, and over five years of web site development and graphic design experience. Michaels focus will be on Art Direction, e-commerce web site development, and custom programming services on marketing for clients. Prior to starting Concept Design Studio, Inc., Michael was a freelacer graphic design and IT technician for individuals and small-medium sixed businesses. Michael has a graduate diploma in software analysis from Cambridge International College and a diploma in graphic design from College of the Arts Namibia . Dewald De Kok Assistant Manager Also a graduet from College of the Arts Namibia, Dewald will be responsible for the dayto-day company operations, sales, and client support liaison. Prior to starting Concept Design Studio, Inc. with Michael, Dewald has over six years visual drawing. Louis Nindala Graphic Designer Louis Nindala is a professional graphic designer with four years of experience. Louis will be joining Concept Design Studio, Inc. as a full-time graphic designer as soon as additional funding is secured. Louis will focus full-time on creating new logo products and custom design services for clients and on creating marketing material for Concept Design Studio, Inc. Louis is currently working as a graphic designer for Omalaeti, Inc. Louis graduated with a diploma in Graphic Design from College of the Arts Namibia

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Industry Trends
The graphic design and web site design industry targeted at the small business market is trending towards a more commodity-based industry with add-on services. In the past, when the Internet was getting started as a business platform, most development was only available in the form of high-priced custom services that were out of reach for most small businesses. These trends show that a virtual business with low start-up costs such as Concept Design Studio, Inc. can successfully sell to a lobal market of qualified customers who already aquired pre-designed interactive mini marketing CD-ROM.

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Market and Audience


Concept Design Studio, Inc. will target new companies, as well as focus on existing homebased businesses and small to mid-sized companies. Our reach of business will be lobal, but our main focus and target area will be Windhoek, but also other towns. We will continually strive to deliver high- quality graphics, as well as other products that go handin-hand with our main focus of service. Also, we plan to continually attract more clients with promotional offers, quality graphics, and great savings on price. Concept Design Studio, Inc. will also target businesses for advertising, growing a huge community and providing an interactive marketing media for companies to display their products and services. We will seek out advertisers who are already interested in the development side of business and the web, guaranteeing efficient use of their advertising dollars.

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Competitive Analysis
Our greatest competitors are: Y&G Advantage This company has been in the advertising business for many years now and has done advertising for a number of companies such as MTC, NamDiaries, Pasta Polana and Namib Mills. They also do mommercial advertising which comes at a higher price than out target market can afford. 3 Dimenssion This company focus mostly on printing services, small-medium sized businesses being their target. They take long to deliver which puts us on an advantage, because we will be working all round the clock to meet the demands of clients who want deliverables on time. Sign Shop This company offers a combination of unique and non-unique graphics. They are based not in the city centre, but on the outskirts of Windhoek. Also their unique graphics are costly.

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Sales Plan
To improve overall sales, additional funding will be used to augment our sales department. The target market has been described in the Market and Audience section of this proposal. Strategic Sales Objective. Generate enough income from product sales to cover all non-payroll expenses at a minimum. Generate enough income from custom services to cover all payroll expenses. Generate an overall profit with a combination of product and service sales. Methods Convert a percentage of product sales into custom service sales. Generate custom service sales from local mailings and cold calls. Custom proposals will be generated and sent to qualified prospects. Additional Sales Improvements Establish monthly training meetings to improve sales techniques. Increase volume of sales calls per day. Word of mouth advertising. Analyze results of past proposals to improve future proposals. Monitor online marketing resources, to assist in improving printed and online advertising.

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Strategic Position
Following is an evaluation of Concept Design Studio, Inc.s strategic position in the marketplace. Our edge in the market will be our price and our high-quality range of graphics. Our main target audience of new businesses and home-based businesses is growing every day. For our main audience, budgets are usually tight, which makes the acquisition of a quality logo for the business a challenge. We aim to fill this gap and help new small to mid-sized and homebased businesses purchase a great unique graphics for a great price. Market and Audience Concept Design Studio, Inc.s advertising side of the business will focus on building a huge database of users interested in the web world, as well as in the structural aspects of it (design, e-commerce, programming, software etc). Market Approach Our community will consist of thousands of members, interested in business development, e- commerce, and virtual communities. From portals to web hosting, businesses will be able to identify which markets to target and thus will be able to increase the size of their client base as well as their sales. Analysis Concept Design Studio, Inc. is at this time the only known provider of low-cost, pre-designed unique graphics as well as interactive marketing media. This approach of offering immediate gratification with one-of-a-kind designs at an affordable price should provide a consistent income and create a customer base for add-on services.

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Marketing Plan
To facilitate creating an environment where sales can take place, the following marketing plan is to be implemented. The target market has been described in the Market and Audience section of the proposal. Marketing Venues Local postcard mailings targeted at local area businesses. Targeted local printed media advertising for custom services. Advertising via local magazines to drive custormers to our web site. Other marketing avenues are being researched, such as affiliate marketing, contests, etc. Marketing Budget Year 1 (last 6 months of the year) : $6,000 Year 2 : $15,000 Year 3 : $15,000 This budget covers costs of printing marketing material, local postage for mailings, targeted local online advertising for services. Marketing Time Table Online advertising campaigns will start immediately. Local postcard mailings will start within two weeks of funding, with follow-up sales calls between two and three weeks. Follow-up Marketing Plan Follow-up sales calls will be made to local area businesses to whom marketing postcards have been mailed. Marketing Analysis Online advertising will use tracking links. Web site sales will request additional where did you hear about us data collection. Phone sales will request information about where the customer found us. Results will be reviewed monthly to help refine marketing messages and expenditures.

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Funding Request
The following summarizes Concept Design Studio, Inc.s request for funding. Funding is to be used for the current start-up year and following year until our third year, when we expect to be profitable. Funding Requested Concept Design Studio, Inc. requests N$20,000 (twenty thousand Namibia dollars) cash plus a $20,000 line of credit for start-up funding. Repayment Plan Concept Design Studio, Inc.s financials are calculated based on a N$20,000 (twenty thousand Namibia dollars) cash loan with payment terms of 7 years at prime + 4% (calculated based on an average of 10%).

Required Funding
Start-up Expenses (Current Year 6 months) Rent / Lease New Equipment Supplies / General Operating Expenses Marketing Personnel Salaries Web Site Developer / Manager Assistant Manager Graphic Designer Current Available Funding Projected Sales for Period Total Start-up Expenses Funding Requested Projected 3-year Funding Needed Projected 5-year Funding Needed $0 $1,000 $4,000 $6,000 $25,000 $22,000 $22,000 $5,000 $64,600 $80,000 $20,000 $0 $0

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Balance Sheet
The following table outlines Concept Design Studio, Inc.s balance sheet for the current year.

Value of existing intangible assets already created which are counted as owner equity for purposes of balancing the assets & liabilities + equity in the balance sheet.

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Income Projection
The following table outlines Concept Design Studio, Inc.s projected income for the next three years. Current Year projections are based on a six-month calendar. Sales forecasts for services are based on expected monthly billable hours at a N$60 billing rate.

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Breakeven Analysis
The following table outlines Concept Design Studio, Inc.s breakeven analysis. There are no direct financial fixed or variable costs for our pre-designed logo graphics. Because our logos are created by in-house staff, only hourly work is required to create logo designs. The fixed and per-unit costs do not include the initial cost of hardware and software used to create the products. Expected Unit Sales is a conservative number based on in-house staff s time available to create and replenish unique designs as they are purchased.

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Budget

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Source Of Funds
Following is a list of all sources of funds for the business start-up. Source of Funds #1 Name: Concept Design Studio, Inc. Amount: $5000.00 This constitutes the remainder of funds left at this point. To date, personal funds have been used to buy the current line of products to the current stage, where we are ready to launch the business by adding a full-time employee and starting a sales and marketing campaign.

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Uses Of Funds
Concept Design Studio, Inc. requires funding for the completion of the project. Funds are to be used as follows. Funds will be used as needed for payroll, marketing, and general operating expenses while product and service sales increase to the point where funding is no longer required. The most critical cash flow period is in the first six months. An upfront lump sum of $20,000 (twenty thousand Namibia dollars) is requested to fund the first six months with a $20,000 line of credit for use in the following year if needed. This will provide sufficient funds while also reducing the amount of debt servicing required to repay the loan. The owners salary is set at about 50% of the industry standard salary during the first three years. Sales and Marketing Amount: 10% - 20% (N$2,000 - N$4,000) Funds to be used for printing marketing materials, for postage for sending postcards to local area businesses, and for targeted online advertising. We expect this initial marketing effort to generate enough customers in the short term that sales of services and logo products will provide the income required to operate the business within the first year. Payroll Amount: 60% - 70% (N$12,000 - N$14,000) Funds to be used to pay accrued payroll. Full payment of payroll for our one planned employee is critical. Payroll for the owner will be kept as low as possible for the first six months and will gradually increase over the next two years as cash flow allows. By strictly adhering to a positive cash flow policy by regulating our highest cost item (payroll) as best we can, our financial plan shows that we should break even by our second year and be profitable in the third year and beyond. Other Amount: 10% - 20% (N$2,000 - N$4,000) Funds to be used as needed for general office expenses, computer hardware and software, taxes, etc. Concept Design Studio, Inc. already has all of the office equipment, hardware, and software required to launch the business. Additional costs such as upgrades, new platforms, etc., will be evaluated as needed. 25
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Name: Michael Kagube

Mission Statement
Company Name: Concept Design Studio, Inc

Business Concept The design of unique high quality graphic, web-site design, Printing, and interactice media marketing. Mission Statement The mission of Concept Design Studio, Inc. is to become a recognizable Windhoek home-based company, utilizing the cutting edge power of interactive marketing to become a leader in the unique graphic design market. We will offer start-ups, home-based businesses, and small to mid-sized companies the opportunity to own a unique, high quality professional graphic design at a lower price than our competitors charge. Further, we plan to deliver an environment that creates trust in Concept Design Studio, Inc. as a web resource of concepts, thus Concept Design Studio. Purpose Statement To accomplish this, Concept Design Studio, Inc. will combine high quality products and cost-effective solutions along with effective and targeted marketing, while creating alliances with similar supporting products to give our customers an allaround company for their needs. As well as offering Electronic media resources and market their businesses, Concept Design Studio, Inc. will enable customers to request quotes for our other services (such as web design) and interactive media marketing.

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