Description of My Business

I plan to market CowZ, a mechanical cow used for the purpose of training and showing cow horses. CowZ may be configured to provide a highly effective training session, or realistic competitive show simulations. CowZ offers a remote transmitter that will allow a horse rider to fully control the unit while remaining mounted. CowZ may be sold outright or leased. Sold and leased units include a vending feature that will allow the unit to provide an on-demand service to the general public. CowZ has been integrated into the DallyPost Versatility program which will allow purchasers or leasers to offer affordable competitive showing opportunities for horse owners.

Targeted Market and Customers

My customers will include public and private arena owners, horse trainers, and equine clinicians. CowZ will significantly increase the value of the customer's existing program while providing new income streams.

Growth Trends

The equine business has been significantly damaged with concerns about the struggling economy. Additionally, similar products on the market are currently available to professional horse trainers. This results in a marked and unfair advantage over the non-professional trainer. CowZ will stimulate growth in the following ways:

1. A mechanical cow will now be available for use by the general public in a large variety of locations and at an affordable hourly rate.

2. Cows will allow for the production of competitive show opportunities for a fraction of the cost of producing a show with live cattle.

3. Arena owners will see more arena usage and a related rise in arena usage fees because the CowZ service is provided at their facility.

Pricing Power

The opportunity to lease CowZ rather than purchase a unit will allow an individual to secure a unit at about twenty-five percent of the cost associated with purchasing a similar device from our competition. The vending feature of CowZ will result in regular cash flow from a large pool of people. A leased unit will be more affordable for those who use it and ultimately more profitable for this company.

The Vision

I have a long-term plan to create a highly profitable business by utilizing the specialized industry knowledge I have gained through long experience in producing and competing in horse shows. The business relationships I have developed include arena owners, trainers, clinicians and event promoters. I am the right person to pursue this opportunity because I intimately know and understand the equine market, especially as it pertains to the western performance horse. There are special market conditions that are favorable at this time. Key among these is the fact that in the current economy, people are looking for ways to train, show, and enjoy their horses as they once did without paying what it once cost. CowZ will provide this opportunity.

Lance Earl

CowZ is a modern electrical device including a micro-controller, data storage, LCD display, controls, indicators and a remote control. Because I designed, programmed, and manufacture every aspect of this device, I will not require additional personnel to complete all aspects of manufacturing and maintenance.

I created and managed the DallyPost Versatility program. At its height, we were producing approximately fifty days of clinics and competitions over a five state area. Because the current economy has significantly reduced participation and because of the high cost of leasing live cattle, the number of shows we currently produce have been significantly reduced. CowZ will make it possible to produce a profitable show while offering a fifty percent reduction in the entry fee.

Mindy Earl

Mindy shall be responsible for all accounting and business records.

Mindy is currently the director of Medical Records at a community hospital. This employment requires excellent technical and organizational skills which she will use to organize and maintain accurate business records.

Computer and Communications Tools

I plan to take advantage of all the computer and communications tools presently available to establish myself as a leader in the industry. A marketing web site, including a weekly newsletter, on-line CowZ vending services, DallyPost Versatility rules and score cards are currently in place. Because I am an accomplished developer of interactive web sites, I will not need the services of an outside web site team to offer these services. Following are the tentative specifications and budget for equipment required to continue these services.

1. Cellular telephone: $120.00 per month.

2. Internet Connectivity: $50.00 per month.

Business Organization

I will form a Limited Liability Company (LLC) for my business. This business structure will afford me some limits of liability. I feel this is the right form of business for me. I intend to depend on my attorney to handle all aspects of setting up the corporation and maintaining proper corporate records.

Liability Insurance

All but a few states have a law on the books that shelter equine professionals from liability. These laws are not identical but are very similar in nature. Basically, they state that horse riding is inherently dangerous and that when a person participates in equine activities, they assume all risk for such activities. Further, they state that a person may not sue an equine professional for injuries or damage resulting from hazards that are inherent to equine activities. Nonetheless, I will maintain a liability insurance policy to protect company assets in the event of litigation. The anticipated monthly cost for said insurance is unknown.

My due-diligence procedures for licenses, permits and business names will be as follows:

DBA: I plan to do business as DallyPost, LLC.

Patent: A patent application has been filed with the United States Patent and Trademark office.

EIN: None are required as we will have no employees.

 Accounting, product order and inventory shall be managed using webERP. This software package is a state of the art Enterprize Resource Management system that will accurately record all monetary and material resources of the company.

Quarterly tax returns will be filed and paid in the appropriate time frames.

Bank accounts will be reconciled on a monthly basis.

Attached is a starting balance sheet.

A profit and loss report will be created monthly.

Attached is my projected income statements for the first six months and one year.

 My requirements for start-up capital are as follows:

1. $100.00 for the creation of a limited liability company.
2. Approximately $5000.00 to secure FCC approval of the CowZ transmitter and receiver.

E-Commerce Plans

A website focusing on E-commerce and information dispersal will be an important tool in my overall marketing program. The web site is currently in place and includes the following features:

1. All marketing materials for CowZ and the associated DallyPost Versatility program.

2. An event calendar to promote all clinics and versatility events offered by this company, its regional representatives, and its vendors.

3. An equine newsletter that will be shipped via email to our current mailing list of approximately 2500 persons and to additional subscribers, prospective and business associates as they become available.

4. An interface to allow persons who wish to use CowZ a method to purchase time on that machine via PayPal.

5. An interface that will allow persons to enter clinics and shows offered by this company, its regional representatives, and its vendors via PayPal.

Additional features are currently being designed and will be added to the site as follows:

1. A marketing tool that will allow individuals to prove a horse in the DallyPost Versatility program and market the horse using it's accomplishments as search criteria.

Marketing Plan

The company will primarily market its products and services through a network of Regional Representatives and Vendors. Regional Representatives will be contracted because of their unique and extensive experience in the performance horse marketplace. Regional Representatives shall typically include:

1. Horse trainers.

2. Horse show producers.

3. Equine clinicians.

4. Horse association officers.

Initial marketing efforts shall initially be made through established media which may be obtained without cost including:

1. Horse association web sites and newsletters such as the Colorado Reined Cowhorse Association.

2. Breeders associations web sites and newsletters such as the Rocky Mountain Breeders Association.

3. Print magazines such as Rocky Mountain Rider who will trade advertising for equine articles such as Caint and Able.

4. News releases which will be submitted to print and digital publications.

Other marketing efforts will include:

1. Sanctioned horse clinics where our products and services will be used.

2. Sanctioned Versatility Ranch Horse shows where CowZ will be used in place of live cattle.

3. Personal contacts via telephone, email and personal visits.

4. CowZ demonstrations and practice sessions at cutting and cow horse shows.

Each Regional Representative and Vendor will receive a free web site similar to www.dallypost.com and www.dallypost.com/lanceearl. These sites are separate and distinct, yet integrated. This integration allows:

1. Individual web masters to share web site content which will strengthen the site of the content creator and the site of the one who imports the content.

2. An event calendar that allows the web master to create sanctioned DallyPost events and non-sanctioned events. Non-sanctioned events will only be viewed on the site where the event originated. Sanctioned events, however, will be displayed on the calendars of all web sites. This strategy will produce maximum exposure for all sanctioned shows and clinics.