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Business plan
1. SlideWinder Corporation
Data as of 5/24/2015
Summary
Company Contact Privacy & Confidentiality
SlideWinder Corporation
1072 Geneva Ave
San Francisco, CA 94112, United States
www.slidewinderring.com
Alex Calder
(415) 706-9412
slidewinderring@gmail.com
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BUSINESS SUMMARY
Company description: SlideWinder Co., a Delaware-registered “C” corporation, owns a number of patent-pending innovations based on its
proprietary “active analog” technology, invented by company founder, Alex Calder, of San Francisco. Mission statement: “Innovation Fueling
Inspiration." SlideWinder Corporation has patent-protected musical tools which accomplish for music, what the mouse did for the computer. In other
words, with the SlideWinder Ring, for example, the relationship between a person and their music becomes POSITIONAL, not TECHNICAL.
Therefore, for the first time, creating music becomes intuitive, easy, and virtually effortless -- without lessons, hours of practice, and tedious
memorization exercises. It's simply: touch the strings with the SlideWinder Ring, and you are playing music. The SlideWinder invention (Active
Analog) can be considered: "the *MOUSE* for music." The SlideWinder Ring™, our flagship product, incorporates powerful rare-earth magnets
within a unique ring design to ease and enhance musical instrument playability --- thereby greatly expanding the type, range, variety, and numbers
of sounds possible from instruments such as: guitar (electric and acoustic), bass, ukulele, banjo, etc. A number of professionals have already
adopted this tool and it has become a mainstay in their developing style (Joe Perry, Tony Saunders, Nate Lopez, Rama Satria Claproth, and others,
for example)
Age of Enterprise (years) 1
Legal Structure Corporation
Historical Financial Records Complete
Financial Projections Complete
Market Assessment Complete
Competitive Assessment Complete
Business Plan Complete
MILESTONES
MonthYearMilestone
Jan 2014Market potential
Jan 2014Market forecasting
Jan 2014Establish adoption percentage rate
Jan 2014Market research
Jan 2014Business channel development
Jul 2014Artist endorsements
Sep 2014Registration as C-corporation
Jan 2015Introduction to key professional adopters at NAMM (National Association of Musical Merchants
Apr 2015
We will introduce the SlideWinder Ring in person, to more than a dozen guitar shops in Southern California, gaining acceptance of our
production model, and securing pre-orders to stock these stores in May.
Apr 2015
On-air, live-radio interview scheduled for Saturday, April 18, 11AM, San Diego. The SlideWinder will be featured in a live broadcast with:
interviews, product demos, Q&A, and a special event -- a live on-air demo given by SlideWinder Inventor and CEO, Alex Calder, to:
WOLF MARSHALL, playing the SlideWinder Ring for the first time. Wolf is a legitimate legend in the guitar world -- having literally
written the book on how to play modern guitar (electric and acoustic). Wolf sits on the faculty at UCLA School of Music, and remains an
active musician. We will invite Wolf to sit on our board of adv
May 2015Obtain investor funding
May 2015Complete first batch of production rings, and begin shipping orders to individual buyers directly, and stores (our wholesale channel).
Jun 2015Formalize corporate Advisory Panel membership with a diverse body of high-value team members.
Jul 2015
Expand distribution and sales volume to match increased production capacity, to meet growing demand from direct (consumer), and
distributor (wholesale) sales channels.
Jul 2015
Attend Summer NAMM, in Nashville, introducing our product to the American Musical heartland for: Country, Bluegrass, Folk, Gospel,
Delta Blues, Chicago Blues, Rock, Jazz, New Orleans Funk, Southern Rock and Soul, etc.
Jul 2015
Expand professional endorsements to include additional internationally-recognized artists in: Country music, Folk Music, Blues, Jazz,
Bluegrass, Salsa, Rock, etc.
Aug 2015Begin hiring key employees, in proportion to increasing revenue income and growing profit reserves.
2. Sep 2015Develop high-end signature ring series with our roster of endorsement professional artists.
Sep 2015Expand distribution channels to stores in: United Kingdom, Japan, Australia.
Oct 2015Achieve and/or exceed revenue targets for Q3.
Dec 2015
Achieve or exceed revenue and unit sales targets for Q4 2015. Expand sales distributorships to include Rest-of-Europe, South America,
Israel, South Africa, Indonesia, South Korea.
Jan 2016
Launch SlideWinder instructional video series using top-level artist endorsement roster. Expected result: significant increases in
worldwide demand and sales.
Jan 2016
Exhibit at NAMM Anaheim, emphasizing expanded world-wide distributor network and stimulate demand to fully load these channels,
building momentum to drive and sustain rapid revenue growth Q1 through Q4, 2016.
Jul 2016Exhibiting at NAMM, Nashville, to spark and support full saturation of American heartland musical marketplace.
Dec 2016Achieve or exceed Q4, and year-end revenue, profit, and unit sales targets.
Model
BUSINESS MODEL
OVERVIEW: IP-protected innovation (with pent-up demand). Direct sales and distributorships, online sales through Amazon. Lean start-up model.
PRODUCTION: We designed, tested, and identified 2 MVP (minimal viable product) iterations and are ready to produce these in high numbers.
SUMMARY: Demand is established. Marketing and sales infrastructure is primed and ready. Adoption has begun among seasoned pros, early-
adoptors/KOLs, etc. RESULTS with funding (next steps): With capital, we immediately produce product for selling to our existing and growing client-
bases via existing channels. (Further business model details available upon request)
STRUCTURE
Enterprise Industry Sector
Other Electronics &
Instrumentation
Peer Group Industry Sector Electronics & Instrumentation
Number of Board of Directors /Members 0
Number of Board of Advisors 7
Number of Supplier Relationships 4
Number of Buyer Relationships 362
Number of Strategic Relationships 74
Product / Service
GENERAL SUMMARY
Product /
Service
Industry
Sector
Market
Availability
General Description Key Features
Distribution
Channel(s)
Number of
Customers
SlideWinder
Ring
Other
Consumer
Products
2015
The SlideWinder™ Ring represents the world’s first
“Active Analog”* player’s tool. It introduces
musicians to the concept of “making music with
magnets.” <br />In brief, the SlideWinder does for
music, what the "mouse" did for the computer --
removing technique as a barrier to playing music --
and replacing it with an intuitive, position-based,
interface.
*Active Analog - places an
unseen physical force between
the player and instrument for the
first time: A powerful magnetic
field which enforces musical
interactions, aids playing
techniques, and opens up new
musical possibilities.
Direct Sales,
Value Added
Reseller,
Distributor,
Sales
Representative,
Reseller,
Systems
Integrator
552
Intellectual Property
PORTFOLIO
3. Status U.S. Patents International Patents Trademarks Copyrights
Pending 3 3 0 0
Granted 0 0 3 0
Enterprise's Planned Protection of Future Intellectual Property: Patents
Markets
SlideWinder Ring
Market
Year Of
Introduction
General Market
Description
Drivers for Adoption
Barriers to
Adoption
String
Instrument
playing
accessory
2014
Guitar
accessories
market, with over
140 million target
customers
(conservatively) in
North America
and Europe only.
Expert endorsements, plus: The SlideWinder ring provides THE ONLY solution for 2 of the
greatest riddles in the known guitar universe: 1) How to play slide guitar without spending
decades of learning how, and: 2) How to play fingers and slide guitar at the same time.
The SlideWinder provides the only solution for these widely-recognized problems. With the
SlideWinder Ring, any player accomplishes these 2 things, instantly. Every guitarist
recognizes that a product which solves these riddles represents the proverbial "holy grail"
of guitar. The SlideWinder, is that.
Startup funds
to meet
market
demand with
production
forecasts (this
is a one-time
need.).
MARKET SIZE
(in thousands)
Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019
SlideWinder Ring:
String Instrument playing accessory $33,652 $86,822 $224,000 $577,920 $1,491,034 $3,846,867 $9,924,916 $25,606,283
Total $33,652 $86,822 $224,000 $577,920 $1,491,034 $3,846,867 $9,924,916 $25,606,283
Market Source of Market Estimates
String Instrument playing accessory Internal Research, External Industry Research, External Academic Research
MARKET DEVELOPMENT STRATEGY
Marketing Plan: Direct sales to consumers, online sales (via Amazon), and networks of distributorships
Sales Plan: Direct sales to consumers and networks of distributorships - professional artist adoption (targeting early adopters) - professional artist
endorsements - custom product designs for professional artists - instructional videos (YouTube)
Competition
SlideWinder Ring
4.
Competitor Markets Name of Product/Service Competitor Description
No Competitor String Instrument playing accessory N/A
Unpenetrated - The portion of the total market revenue opportunity that is not penetrated (i.e., captured) by the enterprise or any other competitor.
COMPETITIVE PROTECTION STRATEGY
Strategy: Current and on going U.S. and international patents filed.
Management
EXISTING MANAGEMENT
Position Name Employed Age Undergraduate Discipline Graduate Discipline
Chief Executive Officer Alex Calder Full-Time 50 Sciences: Natural Business: Marketing/Logistics
Position Name Biographical Information Special Skills
Chief
Executive
Officer
Alex
Calder
Alex is a seasoned, successful business professional, inventor,
entrepreneur, and musician. Alex worked as a research
scientist in the field of bio-medicine, and recently as a business
development professional in bio-research, prior to dedicating
himself full-time to successfully launching the SlideWinder.
Alex is an avid guitar enthusiast and collector. As an inventor,
Alex holds a number of patent applications and is the genius
behind several inventions. There is one invention, however,
which stands out as the most innovative and ground-breaking,
having the greatest potential for development: The
SlideWinder Ring.
1) Guitar-playing and technical expertise, plus deep, seasoned,
target-market knowledge (with extensive, in-house, on-team, VOC -
- very important.) 2) Business management and early-adoption
acceleration -- skills for rapid and sustained market-share gains,
accelerated penetration and sustained growth. 3) Sales, Marketing,
and Business Development expertise, with special emphasis on:
early, rapid, adoptions of disruptive technologies via facilitating
targeted early-adoptions among KOLs, strategic alignments
throughout early-growth-phase adoption-curve models, and
targeted -- specific, key customer, first-to-market accelerators (both
strategic and tactical).
5. ANTICIPATED MANAGEMENT
Position Undergraduate Discipline Graduate Discipline Duration Until Needed
Administrative Human Resources Business: Management/Information Systems None 8 Months
Administrative Information Technology Business: Management/Information Systems None 6 Months
Managing/Manager Operations Business: Other None 8 Months
Acting/Interim Accounting None None 0 Months
Financial
FINANCIAL CHARTS
Black lines represent historical values provided by the enterprise. Blue lines represent values projected by the enterprise.
Black lines represent historical values provided by the enterprise. Blue or other colored lines represent values projected provided by the enterprise.
Black lines represent historical values provided by the enterprise. Blue or other colored lines represent values projected provided by the enterprise.
6. Black lines represent historical values provided by the enterprise. Blue or other colored lines represent projected values provided by the enterprise.
INCOME & CASH FLOW (nominal)
Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019
Revenue:
SlideWinder Ring $0 $0 $0 $1,960,000 $22,000,000 $162,760,000 $230,020,000 $810,040,000
Other $0 $0 $0 $0 $15,000,000 $30,000,000 $48,000,000 $76,800,000
Total $0 $0 $0 $1,960,000 $37,000,000 $192,760,000 $278,020,000 $886,840,000
Number of Units:
SlideWinder Ring 0 0 228 32000 440000 3250000 5750000 16200000
Average Revenue per Unit:
SlideWinder Ring $0 $0 $0 $61 $50 $50 $40 $50
Cost of Revenue:
SlideWinder Ring $0 $0 $0 $18 $16 $15 $14 $13
Other $0 $0 $0 $0 $0 $0 $0 $0
Total $0 $0 $0 $18 $16 $15 $14 $13
Gross Profit:
SlideWinder Ring $0 $0 $0 $1,959,982 $21,999,984 $162,759,985 $230,019,986 $810,039,987
Other $0 $0 $0 $0 $15,000,000 $30,000,000 $48,000,000 $76,800,000
Total $0 $0 $0 $1,959,982 $36,999,984 $192,759,985 $278,019,986 $886,839,987
Operating Expenses:
Sales & Marketing $0 $0 $22,500 $45,000 $90,000 $244,000 $250,400 $368,640
General & Administrative $0 $0 $0 $339,250 $568,025 $749,325 $864,262 $935,409
Research & Development $0 $0 $58,000 $75,000 $125,000 $120,000 $120,000 $125,000
Depreciation & Amortization $0 $0 $0 $1,800 $3,600 $5,400 $18,100 $32,150
Total $0 $0 $80,500 $461,050 $786,625 $1,118,725 $1,252,762 $1,461,199
Operating Income $0 $0 ($80,500) $1,498,932 $36,213,359 $191,641,260 $276,767,224 $885,378,788
Other Income $0 $0 $0 $0 $15,000,000 $30,000,000 $48,000,000 $76,800,000
Interest Expense $0 $0 $2,000 $4,000 $8,000 $0 $0 $0
Income Tax / Member Tax Payout $0 $0 $0 $45,000 $135,000 $405,000 $810,000 $1,296,000
Net Income $0 $0 ($82,500) $1,449,932 $51,070,359 $221,236,260 $323,957,224 $960,882,788
Cash Flows:
Net Change in Working Capital $0 $0 $0 $1,500,000 $4,500,000 $25,000,000 $50,000,000 $100,000,000
Operating Cash Flow $0 $0 ($82,500) ($48,268) $46,573,959 $196,241,660 $273,975,324 $860,914,938
Capital Expenditures $0 $0 $0 $4,500 $9,000 $15,000 $25,000 $50,000
Free Cash Flow $0 $0 ($82,500) ($52,768) $46,564,959 $196,226,660 $273,950,324 $860,864,938
Capitalization:
New Equity Investment $0 $0 $0 $1,600,000 $0 $0 $0 $0
Grant Capital $0 $0 $0 $0 $0 $0 $0 $0
New Debt Borrowing $0 $0 $0 $0 $0 $0 $0 $0
Debt Principal Repayments $0 $0 $0 $0 $800,000 $800,000 $0 $0
Total Net Capitalization $0 $0 $0 $1,600,000 ($800,000) ($800,000) $0 $0
7. Cash Liquidity Balance $0 $1,547,232 $47,312,191 $242,738,851 $516,689,175 $1,377,554,113
INCOME & CASH FLOW (relative)
Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019
Market Share:
SlideWinder Ring 0.00 % 0.00 % 0.00 % 0.34 % 1.48 % 4.23 % 2.32 % 3.16 %
Annual Growth Rate in Revenue:
SlideWinder Ring 0.0 % 0.0 % 0.0 % 0.0 % 1,022.4 % 639.8 % 41.3 % 252.2 %
Other 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 100.0 % 60.0 % 60.0 %
Total 0.0 % 0.0 % 0.0 % 0.0 % 1,787.8 % 421.0 % 44.2 % 219.0 %
Gross Profit Margin:
SlideWinder Ring 0.0 % 0.0 % 0.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Other 0.0 % 0.0 % 0.0 % 0.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Total 0.0 % 0.0 % 0.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Operating Expenses as a % of Revenue:
Sales & Marketing 0.0 % 0.0 % 0.0 % 2.3 % 0.2 % 0.1 % 0.1 % 0.0 %
General & Administrative 0.0 % 0.0 % 0.0 % 17.3 % 1.5 % 0.4 % 0.3 % 0.1 %
Research & Development 0.0 % 0.0 % 0.0 % 3.8 % 0.3 % 0.1 % 0.0 % 0.0 %
Total Profit Margins:
Operating Profit Margin 0.0 % 0.0 % 0.0 % 76.5 % 97.9 % 99.4 % 99.5 % 99.8 %
Net Profit Margin 0.0 % 0.0 % 0.0 % 74.0 % 138.0 % 114.8 % 116.5 % 108.3 %
BALANCE SHEET
Fiscal Year 12/31/2014
Current Assets:
Cash & Short-Term Investments $0
Accounts Receivable $0
Inventory $8,000
Other Current Assets $0
Total Current Assets $8,000
Long-Term Assets:
Tangible Capital Assets $18,000
Intangible Capital Assets $10,000,000
Accumulated Depreciation & Amortization $0
Total Long-Term Assets $10,018,000
Total Assets $10,026,000
Current Liabilities:
Accounts Payable $0
Short-Term Debt $44,000
Other Current Liabilities $0
Total Current Liabilities $44,000
Long-Term Liabilities $28,000
Total Liabilities $72,000
Equity & Capital:
Paid-In Capital $0
Retained Earnings $0
Interest in Non-Consolidated Enterprise(s) $0
Total Equity & Capital (Net Worth) $0
Total Equity, Capital, & Liabilities $72,000
PROJECTION METHODS
Revenue
Projection
Method
Operational
Cost
Projection
Method
Underlying Projection Assumptions
-Size of target market within patent-protected regional zones (North America, Europe, Japan, South Korea, Australia, Israel,
Latin America, Indonesia, Thailand, and possibly others) -- conservatively estimated in excess of 200 million guitar/bass
players. -Adoption rate in market research -- approaching 100%. Unheard of, in any market, and yet, for the SlideWinder
9. EQUITY EXIT STRATEGIES / DEBT TYPE & DURATION
Ranking Equity Exit Strategy / Debt Type Desired Year Name of Potential Acquirers or Merger Partners
Most Likely Convertible Debt 2016
Likely Short-Term Debt 2016
Least Likely Long-Term Debt 2017
