Strategic Business and Marketing Plan

Extra Technologies, LLC. is an Exclusive Licensed Distributor for Greenwave Biotech Incorporated's Proprietary Biological Formula, Methodologies, Technologies and Program Applications.

The information in this document is confidential and is to be only read by authorized parties. Please refer to the confidentiality agreement for further details.

Copyright © Extra Technologies, LLC.


The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of Robert Ginzburg, Nick Teeter, or an authorized agent of Greenwave Biotech, Inc.

It is acknowledged by the reader that information furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, and may cause serious harm or damage to aforementioned parties.

This business plan is not to be copied or reproduced by any means without the sole written consent of an authorized agent of Greenwave Biotech, Inc.

Upon request, this document is to be immediately returned.

Table of Contents

1.0 Executive Summary
2.0 The Offer
       2.1 Funds Required
       2.2 Investor Equity
       2.3 Management Equity
       2.4 Board of Directors Composition
       2.5 Exit Strategies
       2.6 Investor Divestiture
3.0 Products and Services
4.0 Overview of the Organization
       4.1 Registered Name
       4.2 Commencement of Operations
       4.3 History
       4.4 Mission Statement
       4.5 Vision Statement
       4.6 Organizational Objectives
       4.7 Organizational Values
       4.8 Founders and Management Team
5.0 Strategic Analysis
       5.1 External Environment Analysis
       5.2 Industry Profile and Analysis
       5.3 Customer Profile
       5.4 Competitive Analysis
6.0 Key Strategic Issues
       6.1 Sustainable Competitive Advantage
       6.2 Basis for Growth
7.0 Marketing Plan
       7.1 Marketing Objectives
       7.2 Sales Forecast
       7.3 Sales Assumptions
       7.4 Marketing Strategies
       7.5 Product Marketing
             7.5.1 Price
             7.5.2 Distribution
             7.5.3 Promotion
8.0 Organizational Plan
       8.1 Corporate Organization
       8.2 Organizational Budget
9.0 Financial Plan
       9.1 Underlying Assumptions
       9.2 Financial Highlights
       9.3 Sensitivity Analysis
       9.4 Source and Application of Funds
       9.5 Financial Proformas
       9.6 Break Even Analysis
       9.7 Business Ratios
       9.8 General Assumptions


A. SWOT Analysis
B. Critical Risks and Assumptions
C. Reference Sources
D. Expanded Financial Analysis Worksheets
       D.1 Expanded Profit and Loss Statement
       D.2 Expanded Cash Flow Analysis
E. Expanded Use of Funds

Executive Summary

The purpose of this business plan is to raise $251,000,000 in funds to startup, manage, and operate a specialized self contained organic waste management and conversion facility. Extra Technologies, LLC, ("the Company" or "ETL") is a business devoted to providing specialized waste management services with the intent to biologically remediate agricultural and animal organic waste into saleable soil and crop enhancers for farm products.

The Team

The Management of the Company (ETL) is comprised of a number of qualified business and scientific professionals that have developed a method of turning agricultural organic and animal waste into cost effective fertilizer replacements and soil enhancers to be used as farm replacement product lines. The business has recruited a number of scientific and business professionals that will not only operate the business on a day to day basis, but will also provide oversight and strategic advice as the business progresses through its operations. The principals of the Company are Robert Ginzburg and Earl Teeter.

The Products and Services

Extra Technologies LLC is seeking to develop a self contained biological and waste conversion facility that will use specifically developed bacterial blends, minerals, nutrients, enzymes as conversion methods to create saleable organic compost as a fertilizers replacement to enhance soil growth potential for a broad array of consumers worldwide. This facility constitute the core elements of a support infrastructure for an industry that will enhance and support an agricultural waste and animal manure management program based on the application of naturally occurring and harvested bacteria, organics byproducts, and related minerals and nutrients to reduce, control and remediate the agricultural waste and animal manure into usable and viable byproducts.

The facilities would be providing services and products related to the remediation process, production and distribution of biological and organic byproducts. The related methodology and technology required in the remediation and conversion of agricultural waste and animal manure into beneficial and environmentally friendly products and byproducts such as: organic composts, fertilizers, adjunct bacterial blends, biological supernatant liquids and nutrients as soil addendums and detoxifiers which when added to toxic soils, surface waters and lakes would convert organic and inorganic chemical waste buildup into viable nontoxic byproducts.

The products and services offered by ETL will be further discussed in the third section of the business plan.

The Offer

The Company and the Management are seeking an investment of $251,000,000 (prices may change without notice!) from an investor with experience in the organic chemical manufacturing industry. For this investment, the returns are:

  • 20% equity in the Company
  • 10 times the original investment by year 2
  • An annual rate of return of (30.0%) per year.

The funds are required in three segments of the Company:

  • Financing of the land and development of ETL self contained manufacturing plant and related research facilities.
  • Development of the Company's sales and marketing channels.
  • Cash for maintaining normal business operations

A vast majority of the financing sought by the Company will go toward the purchase of tangible land and plant assets. Only 5% of the total capital raised will be used for working capital and marketing purposes.

Sales Forecasts

The company anticipates an exceptional rate of growth upon the commencement of operations. Below is a chart that exemplifies Management's vision for growth during the five years of operations. Please note that this business will not begin revenue generating operations until 2011. The Company intends to begin its development operations in 2009.

The Future

Once business operations commence and the Company begins to generate revenue, the Company will actively begin to develop wholesale and OEM relationships with a number of distributors, wholesales, and retailers of soil enhancers, organic composts, solid and liquid nutrients as fertilizer replacements for farm/garden products. Once the facilities are fully developed and operational, the Company will develop an extensive sales network that will actively solicit purchase orders from agricultural, animal and aquatic production corporations.

The Offer

2.1 Funds Required

The business will require a cash inflow of $251,000,000 to properly develop, operate, and maintain its self contained organic waste conversion facility. Below is a brief breakdown of how the funds will be allocated:

The breakdown of these expenditures will be fully documented in the last appendix of the business.

2.2 Investor Equity

The investor/investment firm will receive a 20% ownership interest in the Company. The financial projections forecast an annual rate of return of (30.0%). Dividends and other capital disbursements may be made during this time at the discretion of the board of directors and the Management.

2.3 Management Equity

The current Management of the Company retains a 100% ownership interest.

2.4 Board of Directors Composition

The board of directors will be comprised as follows:

  • Investor (3 Seats)
  • Principals (3 Seats)
  • Independent Chairperson (1 Seat)

2.5 Exit Strategies

The Management has discussed and planned for three possible exit strategies. The first strategy would be to sell the Company to a larger entity at a significant premium. Since, the organic chemical product manufacturing and distribution industry maintains a very low risk profile once the business is established; the Management feels that the Company could be sold for eight to twelve times earnings.

The second exit scenario would entail selling a portion of the Company via an initial public offering (or "IPO"). After a detailed analysis, it was found that comparable companies sell for thirty to fifty times earnings on the open market. However, taking a company public involves significant legal red tape. ETL would be bound by the significant legal framework of the Sarbanes-Oxley Act in addition to the legal requirements set forth in form S1 of the Securities and Exchange Commission. The Company would also have to comply with the Securities Act of 1933 and the Exchange Act of 1934.

The last exit scenario would involve the use of a private placement memorandum to raise capital from private sources. This is also a significantly expensive process that requires the assistance of both an experienced securities law firm and an investment bank. Funds would be raised from private equity and merchant banking sources in exchange for a percentage of the Company's stock.

2.6 Investor Divestiture

The Management will allow the Investor to sell his or her equity interest in the firm after Year 4 either to a third party (subject to Management approval) or back to the Management. The other owners of the firm shall make payable to the Investor a buyout sum equal to ten times the amount of profits earned on the Investor's Interest earned in the preceding year. This scenario will be enacted should the Management and the Investor decide that the aforementioned exit strategies not be proper for the business.

Products and Services

ETL biological remediation products naturally convert the organics and inorganic wastes streams found within agriculture and the environmental areas into friendly byproducts. These byproducts will be utilized by water, soil and crops as natural organic enhancers and organic compost replacements. Extra Technologies, LLC. (ETL) will through the Self Contained Facility (SCF) establish, organize and demonstrate the methodology, technology and physical plant requirements for processing and converting large quantities of agricultural and environmental wastes into these beneficial and environmentally safe, recyclable byproducts. ETL biologicals and biochemical products will be developed by a SCF facility, from agricultural, animal and environmental waste streams, into controlled, environmentally friendly products that can be condensed, liquefied, dehydrated, stored and sold for future soil enhancement and detoxification applications. ETL biologicals are unique because they can be used without having to worry about how they will react when combining it with other products. ETL's biologicals are environmentally friendly.

In modern agriculture only about 30% of chemical fertilizer spread on the soil is absorbed by plants. The remaining fertilizer stays in the soil and builds up. ETL's biological and biochemical products free this soil bound fertilizer and allows plants to utilize it. ETL's products are effective because they release a dormant bounty of nutrients that are bound up in the soil, making them available to plant roots. ETL assists the soils' native microbes in forming a union or synergy with the roots, allowing the plant to take up just as much nutrients as it requires for optimum growth. It also assists the healthy microbes in their effort to suppress undesirable soil diseases. ETL helps in the complete break down of undigested organic matter in the soil and can help protect plant roots from the burning effect caused by over fertilization and pH adjustment.

ETL biological and biochemical products can be used alone, or in conjunction with commercial fertilizers. It actually helps reverse many of the long term negative effects that the overuse of inorganic chemical fertilizers and undigested organic matter build-up in soil causes. ETL helps withstand drought conditions by stimulating the water retaining microbial biomass in the soil. It also helps in the wintering over of agricultural crops and increases plant resistance to damage from frost.

With the cost of chemical enhancers and inorganic fertilizers reaching an all time high per ton and with an increase of 42 to 50 % expected within a year, ETL biological and biochemical products are one way a farmer will be able to decrease the chemical enhancers and inorganic fertilizer costs while increasing his crop production and reducing his water requirements.

ETL speeds up the natural rate of decomposition or digestion of organic compostable materials from agricultural waste, animal waste or crop residue; and, enhances over-all nutrient values within organic compost. ETL assists in buffering and chelating compounded nutrients that may be present in organic waste. It aids in the transport of these nutrients to the roots of plants and enhances the activity of the native microbial populations.

ETL provides a buffering effect on undesirable salts in the compost, protecting the microbial and plant cells from excessive salt damage. It is also used to stimulate root development in plants prior to transplanting, thus reducing plant mortality rates.


The proposed plant will have the capability to produce the following products in varying quantities, depending on the demand and availability of raw material (agricultural waste and animal manure).

  1. Liquid Concentrated Enhanced Supernatant
  2. Liquid Supernatant
  3. Enhanced Liquid Supernatant
  4. Blended Supernatant
  5. Solid Concentrated Products
  6. Bacterial Enhanced Supernatant
  7. Compost at various percentages
  8. Enhanced Blended Compost

The primary products produced from the biological conversion/processing of agricultural waste and animal manure can be categorized as:

  • The indigenous bacterial blends
  • Liquid Organic Supernatant
  • Organic Compost
  • Fertilizer enhancers
  • Soil conditioners and detoxifiers
  • Surface (rivers, lake, pond & streams) & ground water conditioners & detoxifiers

Plant Capabilities

Each site will have or provide for the following manure management capabilities:


Animal Manure

  • Bovine
  • Swine
  • Horse
  • Fowl
  • Goats
  • Sheep
  • Other

Green Waste

  • Tree Cuttings
  • Grass
  • Paper
  • Other

Agricultural Waste

  • Husks, Hulls, cellulose waste
  • Soils
  • Bagasse, Sugar Cane, Corn, Cotton, etc.
  • Waste liquids with high Biochemical Oxygen Demand (BOD), sugar syrups, industrial wastes, etc.
  • Malt and fruit sugar waste
  • Other Industrial organic wastes

Preparation of the organic wastes processing environment, to include:

  • Establishment of enzymatic pathways for the remediation of organic waste
  • Breakdown of organic and inorganic solids
  • Capability to aerate or agitate, as necessary
  • Establishment of site specific blended bacterium
  • Establishment of anaerobic, facultative, aerobic biological colonies

Remediation of organic wastes through a biological/chemical/physical process that provides for:

  • Control and/or reduction of pathogens
  • Control and/or reduction organic solids
  • Control and/or reduction noxious odors
  • Production of liquid supernatant
  • Production of solid enhanced compost

Storage of:

  • Organic Liquids
  • Organic Solids
  • Organic Powders

Overview of the Organization

4.1 Registered Name

Extra Technologies LLC, the Company is registered as an "Limited Liability " Corporation in the state of Florida.

4.2 Commencement of Operations

The Company plans to commence construction operations in 2010, with the facility fully operational in 2012 and generating revenue in 2011.

4.3 History

The Company has not yet begun normal business operations. The business was founded after years of development and research on behalf of its principals Robert Ginzburg and E. B. Teeter.

4.4 Mission Statement

Extra Technologies' goal is to further develop and establish the methodology, technology and physical plant required to process and convert large quantities of agricultural waste and animal manure into beneficial and/or environmentally safe products. The business will strive to develop environmentally safe and biodegradable soil enhancers, organic composts and other organic based products in a cost effective and ecologically sound manner.

4.5 Vision Statement

Through our diverse areas of expertise and knowledge, the owners of the Company hope to build a business that will achieve $330 million dollars of net profit by the second year of operations.

4.6 Organizational Objectives

  • To provide a clean and ecologically beneficial alternative to inorganic fertilizers, provide natural products to remediate toxicity in soil and water and produce biological products that will bioremediate organics within domestic and industrial waste streams
  • To develop a proprietary self-contained manufacturing facility that produces ETL's products with as little damage to the surrounding ecological areas as possible.
  • To create a wealth producing vehicle for the Company's senior managers and investors.

4.7 Organizational Values

  • Complete disclosure and transparency regarding all financial transactions.
  • To create a business that provides, on a worldwide basis, a clean organic alternative to dangerous inorganic and organic growth compounds, toxic chemicals and aggressive oxidizers.
  • Setting the standard for ecologically safe conversion of agricultural waste and animal organic waste to profitable organic compounds for farm and garden, and biological remediation of domestic and industrial waste streams. .

4.8 Founders and Management Team

The management team is comprised of qualified and experienced individuals that excel at providing unique research and development services as it pertains to organic compounds and blended biological manufacturing and distribution. The owners of the Company are properly qualified to allow the Company to continue to expand and grow organically while still maintaining a sense of innovation in the types of products and services that they can provide their clients in the future. The team has:

  • Proven start-up skills with a focus on profitability.
  • Scientific experience and education commensurate with the complex operating methods of the business.
  • The ability to manage the complex day to day operations of the Company's organic wastes processing facility.

Strategic Analysis

5.1 External Environment Analysis

The business of manufacturing and developing organic soil enhancers, adjunct fertilizer enhancers and bacteria for organic remediation of toxins in a controlled waste management program is an extremely complex business that has significantly difficult operations to manage. This section of analysis will detail the overall economic climate, and the interest rate environment.

The interest rate environment has recently caused the cost of borrowing to increase for businesses. With the increase in overall market asset value, people are requiring the use of borrowed funds to increase their leverage capacity for real estate and business investments. This trend of rising interest rates is expected to continue as long as inflation remains stable. Our business is no different. As our company expands, we may require the use of large lines of credit to assist us in financing the ongoing cash needs of the Company. Greenwave Biotech, Inc. will not require an immediate cash infusion from a bank or lending institution, but Management fully expects to obtain a sizeable operating line of credit in the third year of operations. This line of credit will be instrumental for the development and maintenance of distribution and sales channels for the Company to distribute its compost based and organic fertilizers.

A primary concern for the Company is its ability to price its services affordably during times of economic recession or spikes of oil prices. As of November, 2008, the price of oil and its associated refined energy products have reached a multiyear high. The Company's self contained manufacturing facility will require a massive amount of energy in order to operate efficiently. While the business is developing facilities that will produce a moderate amount of energy for plant usage, the business will still have an immense dependence on energy as it distributes and produces its organic fertilizers.

Inflation is somewhat of a concern for the Company. As the inflation rate decreases, the purchasing power parity of the American dollar decreases in relation to other currencies. This may pose a significant risk to the Company should rampant inflation, much like the inflation experienced in the late 1970s, occur again. This event would significant weaken the Company's ability to borrow funds, but also would severely impact the gross margins of the business. As Extra Technologies intends to distribute its products on a worldwide basis, strong inflation can impact the business's ability to provide its products on a global scale.

5.2 Industry Analysis

The soil amendment and farm supply industry is one of the country's largest businesses. In the United States there are more than 7,400 companies that manufacturer, mix, market, and distribute farm products directly relating to the growth and maintenance of farms. These businesses do not sell agricultural equipment. Aggregately, these businesses generate more than $60 billion dollars a year and provide jobs for more than 75,000 people. The growth rate of this industry has been magnanimous over the last ten years are international commerce and internet commutations have allowed businesses to operate on a global scale. Companies are now able to connect with farmers and agricultural businesses worldwide, and as such, the demand for American made fertilizers addendums and soil enhancing products has skyrocketed.

Over the last ten years, the industry has had average annual receipt growth of more than 7% per year. This rate of growth substantially exceeds the growth of the worldwide increases in population and the growth of inflation.

There has been a shift among these producers to provide fertilizers and soil enhancers that are made from biodegradable materials rather than inorganic chemicals. With global warming and the general ecological environment becoming an increasing concern for many governments and people worldwide, the market is now demanding alternatives to traditional inorganic compounds. This shift in the demand for organically based fertilizer and soil enhancers is expected to grow significantly. The Management of Extra Technologies LLC sees a significant opportunity to develop a business that operates on a global scale and provides a highly efficient (both cost and operation) traditional chemical fertilizer replacement that can be used by farmers worldwide. The most important aspect to the Company's offering is that the business will be very cost competitive in relation to substitute products that are available on the open market.

The market for organic compost based products is significantly smaller than the market for specialized organically enhanced fertilizers. In the United States, the organic compost manufacturing and distribution industry generates approximately $3.7 billion dollars a year in gross receipts. There are only 500 supplies of this product across the country. However, this is expected to change as the organic compost industry has recently had resurgence in popularity over the last six years. For the same ecological reasons listed above, these businesses have had their gross receipts surge over 55% over this time period. While these receipts have increased significantly, the number of agents operating within this market has only increased 10%. This is primarily due to the fact the business of compost mixing and manufacturing is somewhat difficult as there are several problems and issues for dealing with animal and biological waste. The business's high barriers to entry have also caused the slowed growth with regards to the number of agents entering this market.

The last industry that ETL will develop is the agricultural waste management service. Through the business's proprietary method of adding bacterium to animal waste to create specialized organic fertilizer replacements, the Company will be able to manage biodegradable animal and biological waste as an outsourced service provider. The organic compost, soil amendments and biodegradable waste technologies are small industries, but they are developing steadily. As of 2005, the organic compost and waste management industry generated more than $800 million dollars of gross annual income. There are fewer than 400 businesses that operate within these markets. The business employs almost 8,000 people with annual payrolls exceeding $164 million dollars. This discrepancy in the number of people working within the industry against average annual payrolls is primarily due to the fact that the business mainly employs specialized people with scientific skills. As such, these people demand a salary that is toward the upper echelons of the pay scale.

5.3 Customer Profile

As the market for the Company's fertilizer replacement products is decisively broad, it is very difficult to capture the exact demographics of the people and businesses that will purchase ETL's products. Through the Company's multiple distribution channels, the business will be selling its products to major corporate farms, co-op farm associations, and through its OEM capacity; directly to hobby and retail home gardeners. In any setting where fertilizer replacement or farm/garden products are needed, the Company will have a viable economic market to divest its inventory.

5.4 Competition

Since organic chemical manufacturing is effectually one of the most free-market oriented businesses in the country, competition can not be accurately categorized. The business will operate in a number of capacities on the manufacturing and wholesale level. The Company will face competition from smaller farm based fertilizer and organic compost based manufacturers.

The primary differentiating factor that will allow ETL to maintain successful operations is that research and development staff of the business has developed methods that will allow its liquid and solid organic compost, fertilizer replacements, and other biological supernatant farming products to be sold at a price that is extremely competitive within their respective markets. As such, the Company expects that many consumers and purchases of its products will be drawn to its price. Additionally, another competitive advantage enjoyed by the Company is that the products offered by the Company are fully made from animal, organic waste and other natural and biological based products. As stated earlier, with the increased concern relating to the ecological condition of the planet, many people and businesses are seeking ways to alleviate the ecological stress that they place on the environment.

Key Strategic Issues

6.1 Sustainable Competitive Advantage

The Company will be able to maintain successful business operations because of the following:

  • The sale of organic compost, soil enhancers and farm products that will create a predictable stream of revenue from the sale of a commoditized products that are actively sought by the farming market.
  • The ability to generate high margin revenues from the sale of waste management; remediation of toxics soils and water; and research/development services.
  • The ability to create a synergy among the soil enhancer products and scientific services offered by the Company so that our clients can easily access all of their crop growth additives and farm organic and inorganic waste needs from one business.
  • An extremely qualified, educated, and experienced management team that has the ability to make Extra Technologies LLC a very successful enterprise.

6.2 Basis for Growth

The Company will grow through seven main avenues:

  • The successful marketing and growth of our organic and inorganic liquid and solid waste management solutions.
  • The successful expansion of our fitness service lines.
  • Expansion of the number of facilities owned and operated by ETL.
  • An offering of a product that will be sold at a price that is very competitive within the open market.
  • The reintroduction and marketing of ETL's proven bioremediation of water and waste water treatment bacterial blends worldwide.
  • The reintroduction and marketing of Extra Technologies' proven bioremediation of toxic and contaminated fresh and salt waters and soils worldwide.
  • Increasing crops quality and quantity through the utilization of organic soil enhancers.

Marketing Plan

7.1 Marketing Objectives

  • Utilize immediate contact of Agricultural and Farming consortium for ETL's products
  • Build a large referral network of farming and agricultural development clients.
  • Operate within existing co-operative farm supply programs.
  • Establish connections with nationwide distributors of farm products
  • Development of connections with overseas trade brokers

7.2 Sales Forecasts

7.3 Sales Assumptions

Year 1

  • After a one year development period, the Company's operations will commence and the business will begin to generate revenue.
  • Sales are expected to reach $1.1 billion dollars of revenue in the first full year of operations.
  • Gross profits will reach $803 million in the first full year of operations.

Year 2

  • The business will have begun to develop relationships with farmers and farm product distributors and Extra Technologies' products will be distributed fully on a nationwide basis.
  • Gross receipts will reach $1.6 billion dollars.
  • Gross profits will reach approximately $1.24 billion dollars.

Years 3-5

  • At the onset of the third year, the business expects to acquire a loan of $200,000,000 so that the business can further develop its research and development capabilities and begin the development of its internal distribution networks.
  • By the fifth year of operations gross sales will reach $2.6 billion dollars.
  • ETL's gross margins will increase significant as the Company becomes more established and thus will be able to manage the Company's facilities more efficiently and have the ability borrow at a significant lower rate.

7.4 Marketing Strategies

Management intends to use a qualified advertising and marketing firm to help ETL reach its intended clients. This campaign will include the use of traditional print and media advertising as well as the Internet. Direct advertising campaigns will be of significant importance to the Company as we are offering our programs to a broad spectrum of demographics.

Additionally, conventions, technology trade shows, online advertising activities, sales development and viral marketing campaigns will follow carefully orchestrated strategies by our marketing personnel in conjunction with marketing experts.

Timely coverage of Extra Technologies' innovations will be further directed thru ongoing press relations, news releases and feature stories targeted at key scientific and professional farming communities and other media outlets.

Publicity activities will be designed to generate ongoing coverage about the Company in targeted media by providing writers and editors with newsworthy releases, features, stories, briefs, and visual material for their columns and stories.

Additionally, the business will maintain a broad network of sales agents to contact and develop purchase relationships with major providers of agricultural development services. Additionally, the business will act in an OEM capacity for a number of major suppliers of home supplies. One of the keys to making the business a success is to provide as much of our product through as many distribution channels as possible. One of the primary selling points that the Company will use is its price points. The business will offer its organically based soil enhancers, nursery, and farm products at a price that is significantly lower that traditional chemically based fertilizer enhancers. Additionally, the world has become increasing concerned about the general ecological health of the planet, and as the Company is offering products that are natural and organic, the business will definitely markets this as it distributes its products.

7.5 Product Marketing

The Company will develop its marketing campaign to focus on the new breakthroughs that have been developed by Extra Technologies. This marketing campaign will focus on the cost effective, liquid and solids natural organic compost and farm products offered by the business. From the OEM standpoint, the business will allow its retailers of its products to use the Company's descriptions directly on the product. The business will heavily market the fact that the prices of this natural organic compost are significantly less than traditional chemical inorganic fertilizers.

7.5.1 Price

The Company's pricing structure will vary depending on demand and other external factors such as the price of energy. Additionally, the business's revenue generating operations will not begin until five years after the development of the business. However, Management anticipates that the sale of its farm and soil enhancer's products will generate revenue with 75% gross margins.

7.5.2 Distribution

All of the Company's products will be packaged and distributed among wholesalers, distributors, and directly to retailers.

7.5.3 Promotion

The business will use many forms of promotion, including an expansive marketing campaign focused on the farmer's viewpoint of using expensive inorganic chemical fertilizers. We will use specific articles to compare the less expensive organic compost which will generate increased production, etc

Organizational Plan

8.1 Corporate Organizations

8.2 Organizational Budget

Financial Plan

9.1 Underlying Assumptions

The Company has based its proforma financial statements on the following:

  • ETL anticipates that its growth rate will be on average 26.5% per year.
  • The Company will solicit a five year loan of $400,000,000 in the third year of operations to expand the plant's facilities and product distribution channels.
  • Management shall settle most short term payables at the end of each month.

9.2 Financial Highlights

  • Positive cash flow and profitability in each year of operation.
  • The ability to create high gross margin cash flows through the Company's recycled animal wasted products.
  • A large inventory of plant, property, and operating assets that can be divested within two years time.

9.3 Sensitivity Analysis

Extra Technologies, LLC products are generally immune from the changes in the general economy. Farm and fertilizer products are demanded by farms regardless of the direction of the economic markets. This is based on the simple fact that people must eat, and the Company's organic based soil enhancers and products provide a safer, lower cost alternative to chemical based inorganic farm products. However, the Company operates with moderate profit margins, and in the event that the Company's revenues decline, the business may have trouble repaying its debt obligations and maintaining profitable operations.

9.4 Source of Funds

9.5 Financial Proformas

A) Profit and Loss Statements

B) Common Size Income Statement

C) Cash Flow Analysis

D) Balance Sheet

9.6 Break Even Analysis

9.7 Business Ratios

9.8 General Assumptions

SWOT Analysis


  • Recurring streams of high margin revenue from the sale of economically insulated farm products.
  • Experienced, Educated, and Motivated business team
  • Efficient back office support
  • Very high barriers to entry
  • Development of new agricultural products and research and development services is a small portion of the Company's capital budget.


  • A business model that is not patentable and therefore could be copied by a potential competitor.
  • Major, well-financed competitors can develop products that are substantially similar to those of the Company.
  • Very high operating costs


  • Expansion into several national and international markets
  • Multiple streams of revenue generated from each client
  • Development of extensive distribution channels for the Company's compost and fertilizer enhancer products.


  • No patent protection on new business strategies
  • Several competitors can enter the market with relative ease.
  • Liabilites resulting from onsite farming injuries
  • Cost driver prices can suddenly increase, causing a significant change in the Company's profit and loss statement.
  • Operating systems infringement by major competitors.

Critical Risks and Problems

Development Risk - Significant

Extra Technologies LLC is seeking a large amount of financing in order to develop a waste treatment and conversion facility. The development of this project is not only cost intensive, but subject to the development and implementation of a new technology.

Financing Risk - High

Management is seeking in excess of $251,000,000 to develop its facilities. As such, the amount of capital needed is significant. However, a majority of the business's financing will be used for the development of divestible operating assets.

Marketing Risk - Moderate

Farm and fertilizer products are demanded regardless of the general economic environment as people must eat. Additionally, the market for fertilizer and farm products is a very commoditized market, and as such, the business should not have a problem divesting its inventory as long as the business can remain price competitive.

Management Risk - Low/Moderate

The Company has a board of directors and management team that have combined experience exceeding two centuries. The business's management is educated, motivated, and experienced in all aspects of ETL's business.

Valuation Risk - Low

The risk that an investor pays too much for the venture is offset by:

  • Investor funds will be in a Company that generates recurring streams high margin revenue from the sale of economically insulated products.
  • The Company's growth rate will create value and equity in the business very quickly.
  • The business will have a large inventory of operating assets that can be divested within 24 months.

Exit Risk - Low

There is a great demand for established organic chemical and distribution businesses, and the Management of the Company feels that the full sale of all Company assets could occur within one year of marketing the Company for sale. The Company would most likely solicit the help of a major investment bank.

Reference Sources

All statistics and market information was obtained through:

1. U.S. Government Bureau of Labor Statistics
2. U.S. Economic Census
             Fertilizer Manufacturing - NAICS Code - 325314
             Chemical Manufacturing - NAICS Code - 325
             Chemical Consulting - NAICS Code - 541690

Expanded Profit and Loss Statements

Use of Funds Breakdown Prices may change without notice!


Total Expenditures