Surf Clothing and Sportswear Business Plan

Hang Toes Surfing will expand production capabilities in order to fulfill the requests of overseas customers who are placing larger orders than we are currently able to fulfill. We intend to first maximize the quantity of products offered by introducing new products and apparel to existing channels. Second, we intend to establish additional accounts through targeted marketing efforts on the West and East coasts of the United States to increase sales.

Competitive Edge

Our competitive edge comes from the advantage of having established relationships with Japanese, Italian and Brazilian franchise and distributors ,brokers and wholesalers. Hang Toes has received affirmation of the demand for their product in the form of requests from importers for larger product shipments. We feel we have a superior product offering because of the larger variety of our clothing line, and because we purchase our material direct from the original suppliers (DUPONT & LYCRA) who provide other well-known products. In addition, prompt preparation and shipment provides importers with a product that is manufactured on time.

Our company’s competitive edge exists because we address the needs of our specialty retailers, and their customers’ appetites for active wear. Accessories such as fins, surf boards, and bags encourage our customers to give us a second look.

There are several other projects we are currently working on to further broaden our product lines and open up our markets even more. We will be more than glad to discuss in length some of our future confidential plans, upon request.

Marketing Strategy

Our marketing strategy will include the use of targeted online and print media advertising and direct selling to direct customers and retailers in the United States. We will capitalize on the existing international relationships of our South American manufacturer. We will position ourselves as a differentiated provider of quality active-wear products. The primary goal of all marketing efforts will be to communicate this to existing and potential customers.

The key to our marketing strategy is focusing on dry-fit clothing lines for active consumers such as cyclists, surfers, skaters and fitness enthusiasts. We believe we can cover about 80% of these sports markets since we produce products geared towards such, and another 20% for fitness and family.

Sales Strategy

Our sales strategy focuses on meeting the increased demand of specialty stores in the United States, and international companies with whom we have established relationships for larger orders. These are critical to our ability to acquire additional accounts on both the East and West coasts of the United States. We will focus on increasing the volume in the United States while working on our international marketing.

For now, our products are seen through our website, where our e-commerce lets us sell our products direct at full retail price. We will also gear sales towards the specialty shops with our Hang Toes Surfing clothing line. Through these speciality retail shops, we will further increase our sales.

Visibility will be very important, and we will gain valuable exposure by sponsoring sporting events for surfing, skate boarding and cycling in the South Florida region. We will target our advertising through the major skate, surf and sports magazines and Internet online magazines.

Sales Forecast

The following chart and table show our estimated sales forecast. We project sales to grow by ten to fifteen percent in 2006, and reaching maximum production capacity in 2007. The company will begin by utilizing its extensive contacts with several major distribution companies to leverage contracts through direct sales methods. A number of these companies have expressed an interest in purchasing the Hang Toes Surfing clothing lines. The company’s extensive advertising campaign will be used to create product awareness through the use of trade journals, shows, direct-mail advertising, and the Internet. At some future date, the company will seek sales representation to help increase sales, once the company has established a firm reputation. Post sales servicing and an International division will provide additional sales opportunities for marketing new product lines such as: bands and watches, and we are hoping to associate ourselves with a solid manufacturer of jewelry (NAME REMOVED TO PROTECT CONFIDENTIALITY).

We feel that our sales forecasting is realistic. We will steadily increase sales as our advertising budget allows.

Milestones

The following milestones table outlines the key projects we need to focus on within our first year. We want to have a strong presence at both SurfExpos, to make contact with key distributors and specialty retail shops that cater to our customer base.