Economics of the Business

Gross and Operating Margins

The web provides a fertile ground for this model to operate profitably. Application, material and manufacturing costs are extremely low and and the major expenses of marketing materials and Web site development have been satisfied through the ‘sweat equity’ of the Founder. Golfing Gopher’s Partner will have the main technology infrastructure and technical workforce already in place. The data required to fill our database already exists, it simply needs to be harvested and complied. GopherGear apparel and our ‘knock-off’ equipment can be outsourced and inventories re-filled on an as-needed basis. All of these factors translate into very high gross and operating margins.

Profit Potential and Durability

It is important for GolfingGopher to have a varied and complex revenue stream. We offer many products that create value for consumers and feel GolfingGopher can sustain very high traffic volume as we roll out even more products. As long as we have thousands of users coming to our site to make purchases we can stay profitable. The strategic cooperation we have with our Partner will keep us on the edge of technology.

Months to Break Even and Positive Cash Flow

Given our entry strategy and marketing plan, we feel that we will reach break-even and start having a positive cash flow at 18 months.

Table of Contents:

• Executive Summary
• The Golf Industry
• Golf Market Research
• Economics of Golfing
• Marketng Plan
• Design & Development
• Manufacturing & Operations
• Management Team
• Overall Schedule
• Risk Factors

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