Business Plan

1. 2014
Raffi Garnighian,CEO
PinionPins
4/19/2014
Business Overview

2. 1. EXECUTIVE SUMMARY
1.1 Product
Pinion Pins are a multi-use, industrial strength product that binds various fabrics or flexible
materials together for storage, solutions, and security. This product was awarded a patent early
in December 2013. This new innovation has three main categorical functions: Solutions,
Security, and Storage. Solutions include using the product for securing duvet covers, pillow
covers, bedding, car covers, tent covers, or curtains in a safe and aesthetically pleasing manner.
In addition, the product is highly customizable with printed designs and can be used by crafters
for various applications. Security includes the locking jewelry, drawers, or items onto
bags/backpacks as the pins cannot be opened by any conventional magnet. Storage includes
pinning clothing or covers together to provide more closet space, or pinning items together to
be able to quickly find them in a purse or cluttered drawer.
Initially the product will be focused towards the household goods industry with the intent to
test possible market penetration in the Beauty and Cosmetic, Hotel, Medical, Outdoor Sports,
and Camping industries.
The application possibilities of this product are truly unlimited and we have just begun to
scratch the surface.
1.2 Technology
Pinion Pins utilizes the same technology that similar magnetic devices such as security tags use
to create a strong, protective hold while not damaging the fabric. Our product is much smaller,
less intrusive, safer on the hands (can be handled by children), and made from higher quality
materials. In addition, our magnetic remover is specialized to interact only with this product. At
a specialized Tesla level, the magnet is able to open the pin (normal magnets cannot), while at
the same time, it cannot be used to open store security tags and other such things. Finally, our
suppliers use the very best in manufacturing to make sure each pin is secure, functional, and
beautifully designed.
1.3 Customers
The target customers are consumers that have a need to safely secure fabrics in place at home,
at work or on the go. Pinion has multiple uses and can have a diverse consumer base, ranging
from young adults using the Pinions for decorating their rooms or dorms, to the hotel industry
using Pinions to secure bedding sheets and Duvet covers, and small business owners can use
Pinion in several different applications targeted to their own business profile.

3. 1.4 Driving Factors
Creative solutions to problems new and old, all while transforming the world around you in
novel and inventive ways- this message is written on the spirit of every Pinion Pin. We hope to
be able to offer a product that, rather than responding to existing demand, creates demand in
itself, and allows its user base to reinvent home solutions. To do this, we hope to make this
product available in many retail and online locations, as well as through our own simple, easy-
to-use website.
2. COMPANY DESCRIPTION
2.1 Mission Statement
Our Company’s mission is to offer a new innovative product that is versatile, easy to use and
highly customizable to everyone who wants to keep fabrics together. From the homemaker to
the outdoorsman we are sure the product will make things easier. We want to be the next
''Velcro'', an innovative product that people turn to for countless applications and solutions.
2.2 Principal Members
Pinion Pins operates under a team of diverse and skilled members:
Raffi Garnighian- Duke University 2016, Economics. Is acting CEO, holds the Patent for the
product, operates management of Marketing and Financial teams, actively seeks new markets
for product expansion. Board Member.
Tawnja Peterson- Talk show host (Tawnja Show) and personality. Provides animations and
commercials for use online and on television. Promotes product through social media and
through live appearances.
2.3 Legal Structure
At this time, the company structure is LLC, with legal name “Rage Enterprises.”
3. MARKET RESEARCH
3.1 Industry
The primary industry that Pinion Pins operates in is that of small household goods and
home/garden products. The largest potential retailer in this category is Bed Bath and Beyond
Inc (BBBY), which has had significant growth in the past 5 years to a market cap of 13 billion,
and has had increasingly profitable years with a higher EPS of 4.79 and a share price expected
to increase by 13% in the next year. Comparables have also grown similarly. One notable

4. example is Pier 1 Imports, an industry leader in growth with a target increase in share price of
23% in the next year, and a market cap of 2 billion.
Next, this market has experienced tremendous growth in comparison to the benchmark S/P
500, with every company acting as leaders in this industry having high Beta notable excess
returns (Alpha) in portfolios and funds comprised of consumer goods resellers.
The macro elements that propel sales in this industry also indicate an excellent opportunity to
enter the home goods market. Reports by the U.S Census and CPI data indicate that the sales of
furniture have risen by 2.8% in 2013. Alongside, IBM data noted that sales of home-goods rose
2% in the same year. In addition, housing data suggests not only a recovery in the median-
priced home sales, but also more expensive homes, in which the product would most likely
thrive. Bloomberg analysts noted in 2014 that housing prices climbed 7.9% due to large
increases in demand, and slowed sales estimates are primarily due spikes and demand and
shortages of supply, especially in desirable (and expensive) areas in California, Florida, and New
England.
Looking at only sales data, the market size of the Home Goods market is close to $500 billion,
with around $30 billion existing only through online or catalog sales. Crafting, considered an
independent segment, is now a $30.2 billion industry, with an average spending of $467 per
household per year in 2006, where it grew by the amount of the industry, around 3% per year.
Because Pinion is by nature a versatile and evolving product, many other industries are of
course possible to target. From the bedding industry securing your comforter inside a duvet
cover, a pillow in a pillowcase, to the design industry where a wedding planner secures table
cloths and decorations to a table, to the small business industry where a hairstylist secures their
apron around the client before a haircut, to even the outdoors industry where a hunter secures
their favorite accessory to the tent or hunting blind, Pinion will have its hands in many places.
However, in our first year, we will focus on targeting primarily the home and garden industries,
as to not overly confuse our product’s image and to emphasize a high-quality product first and
foremost.
3.2 Competitors
A table listing the 4 major competitors can be seen below:
3.3 Comparative Advantage
Similar items to "Pinion" Duvet Donuts Sheet Grippers Hold On! Sheet Clips Duvet Grips
Companies that sell these items Walmart, Amazon BBBY BBBY, Walmart BBBY
Price $12.95/4 $3.99/4 $5.99/4 $6

5. See Technology section 1.2 for specific product advantages, and see Product section 1.1 for
benefit of uniqueness (many uses).
One major concern one might have is the price difference. Currently, Pinion Pins is significantly
more expensive than the other brands. However, this is justified for a few reasons. First, Pinion
Pins include more pins than competitors, and a separate remover device, which provides value
to the consumer. In addition, adding additional Pinion Pins (set of 6) costs less per pin than the
unit costs of all competitors. In addition, Pinion holds the dual aspect of industrial strength hold
and safety for your bed/duvet/sheets. The competitors fall short in one or both of these
categories:
Duvet Donuts have been proven in testing, and through customer review (average
2.5/5) to not hold if any amount of force is applied to the cover or bed. In addition, the
product requires the folding or compressing of the sheet, which could cause permanent
wrinkling, folding, or damage over time.
Duvet Grips is a product that holds a Duvet cover with adhesive, rather than a physical
hold. In addition to having poor reviews from consumers, the product has great
potential to damage whatever surface it is applied to over time, and in all cases will
leave some unwanted residue.
Sheet Grippers can be used to secure a thin sheet to the bed, but they cannot be used
for a duvet or any thicker fabric (the grips have a specific thickness that they can hold).
This product does not operate in the same market or set of uses as Pinion, but could
cause confusion if customers were unable to properly understand Pinion’s primary
purpose (Duvet, not sheet).
Hold On! is identical to the previous, but with a different brand name.
4. Product Technical Information
4.1 Product Purpose
Pinion Pins refers to the invention that relates to fabric fasteners such as those used to secure
draperies, furniture covers, cushion covers, towels, bedding and the like. More specifically, the
present invention provides fasteners which are aesthetically acceptable, do not damage fabrics
with which the fasteners are employed, and which are highly effective to secure fabric items in
place. Various attempts have been made to address this problem. For example, ribbons have
been sewn to the inside of the duvet covers at the corners. These ribbons may be used to tie
the corresponding corners of the comforter and duvet cover together. This is not an easy task

6. because it often requires turning the duvet cover inside out to perform the task of tying the
ribbons.
Over a relatively short period of time the ribbons tend to become untied requiring the laborious
tying process to be repeated. To launder the duvet cover or comforter, the ribbons must, of
course, be untied to decouple the duvet cover from the comforter. The tying operation must be
repeated once laundering is completed. Other fasteners have been developed to address this
problem in other ways, but these tend to be unacceptable from an aesthetic standpoint or
difficult to use without damage to the fabric.
To address problems discussed above and others associated with securing fabric items to each
other or in place, a unique and novel coupling kit is provided. Each coupling kit includes at least
one pin assembly which cooperates with a catch assembly. The kit also includes a release
member.
4.2 Patent Product Description
The pin assembly comprises a tack having a head and a shaft projecting from the head. The
head may be decorated in any number of ways such as to match accent the fabric with which
the coupling kit is used. Further, and for additional security, the pin assembly may also include a
flange member through which the shaft passes. The flange is intended to engage the head of
the tack and the fabric with which the kit is employed to provide a larger area of contact with
the fabric than the tack’s head could provide on its own. The flange member may be decorated
as desired or made transparent so the pattern and color of the fabric are visible through the
flange.
The catch assembly comprises a first outer housing surrounding a chamber. The housing
includes an engagement member having an engagement surface and a collar surrounding an
opening to the chamber. The outer housing also includes a cover. A hole adapted to receive the
shaft of the tack is centered in the cover and provides a path through the cover into the
chamber.
The engagement member is formed by a wall having an inside surface and an outside surface
which are each tapered from the collar to a point. Located inside the chamber of the outer
housing of the catch assembly is a catch. The catch includes an inner housing comprising a base
having a bottom, tapered side walls and an open top. The inner housing also includes a cover
having a tapered side wall and a top. A hole is provided through the top of the cover for
receiving the shaft of the tack. The base and cover form an inner chamber.
Positioned inside the inner chamber does a pinching element comprised of a frame. The frame
includes opposing end walls and a longitudinal opening for receiving the shaft of the tack

7. through each of the end walls. The frame also includes a side wall providing a spring collar at
one end and including three side openings. The pinching element further includes three ball
bearings. The ball bearings are positioned within the three side openings and are able to move
back and forth as discussed further below. The pinching element further comprises a spring
having one end receiving within the spring collar. The other end of the spring engages the
bottom of the base of the inner housing when the catch assembly is assembled. More
specifically, the spring biases the pinching element away from the base and toward the top of
the cover of the catch. The tapered side wall of the cover of the catch imparts an inward
pinching motion against the ball bearings forcing each toward the center of the frame. This
pinching force is sufficient to grip and hold the shaft of the tack when mated with the catch
assembly and, more precisely, the frame of the pinching element.
As such, the pin assembly is quickly and easily coupled and secured to the catch assembly by
passing the free end of the shaft of the tack through the opening extending through the cover
of the outer housing of the catch assembly; through the opening extending through the cover
of the catch; through the spring of the pinching element; through the spring collar of the frame
of the pinching element; and through the longitudinal opening of the frame of the pinching
element and between the three ball bearings. The spring, the frame and the tapered inner wall
of the cover of the inner housing cooperate to press the ball bearings against the shaft of the
tack with sufficient force to prevent retraction of the tack relative to the catch assembly.
From time to time, it will become necessary to separate the pin assembly from the catch
assembly. Thus, a release member is also provided. The release member includes a cylindrical
tube having at least one open end. The diameter of the open end of the tube is such that the
tapered end of the engagement member just fits within the open end of the cylindrical tube.
Recessed within the tube is one or more magnets. A single 3500 Tesla neodymium magnet is
suitable for use. Such a magnet creates a magnetic force which, when properly aligned with the
frame, is sufficient to overcome the force of the spring and retract the frame from the top of
the cover of the catch. Specifically, when the tapered end of the engagement member is mated
with the open end of the tube, the frame of the engagement member is properly oriented with
the magnetic field supplied by the magnet(s) and the sufficient magnetic force is applied to the
frame of the catch assembly to overcome the force of the spring and move the frame toward
the magnet(s).
The taper of the cover of the catch no longer pushes the ball bearings tight against the shaft of
the pin assembly as the frame is moved by the magnetic force. The pin assembly may therefore
be pulled free of the catch assembly. The fact that the release assembly has a recessed magnet
and mates in only one way with the catch assembly ensures the magnetic force is applied along
the correct axis to permit quick and easy decoupling. Those skilled in the art will recognize that

8. in many situations, multiple pin assemblies and catch assemblies may be employed to retain
fabric items in place. Only one release member is required to quickly and easily decouple the
pin assemblies.
4.3 Pricing Structure
To date, the COGS of the product including packaging and shipping is $5.50, with an additional
.35 in cost for packaging and transportation. We sell sets in two configurations: Starter Pack
and Family Pack. The former contains 6 Pins and one magnetic remover, and is priced at $19.99
with a wholesale discount of 25%. The latter contains 40 pins and 2 removers for a price of
$59.99, with identical wholesale discount. Finally, Pins are sold as a $4.99 pack for 6 through
our site, and additional removers are sold for $14.99.
4.4 Intellectual Property Rights
Raffi Garnighian holds a provisional patent.
PTO/AIA/14
US Patent and Trademark Office, Us Department of Commerce
Application Data Sheet 37 CFR 1.76
Attorney Docket Number 20130353.PRO
Application number 61/322,143
“Clips for duvet cover”
5. Marketing and Sales
5.1 Growth Strategy
We plan to use a multifaceted array of techniques to approach and engage with our consumers,
with the creation of a Marketing Team that operates these strategies daily. These include:
 Promotion of or web page through Facebook ads, Google AdWords, and other
online forms of advertising
 Commercials on HGTV and other networks at prime time and when
women/older consumers watch
 Collaborations with organizations that group together homeowners with
different interests and offer incentives for promotion of product
 Sponsorship of outdoors/boating/car events for promotion of product in these
areas

9.  Creation of events on college campuses to promote sales through commission
for interested candidates as well as build brand awareness
 Creation of an “Ambassador Program” in which individuals receive commission
at our wholesale rate
 Creation of a summer sales program in which applications are trained to sell the
product in targeted neighborhoods for a duration of the summer through
commission structure
Each of these strategies will ultimately allow us to generate sales and greater brand awareness.
After some time, we hope to reach out to larger companies like Bed Bath and Beyond, Kirkland,
Pier 1, Walmart, and Sears to carry our product and allow us to greatly increase sales at
wholesale rates. In addition, we hope to sell through consumer-specific alternative venues like
Skymall and QVC, allowing us to attract consumers looking for products of innovative and
useful nature.
5.2 Communication
Our communications to our customers will primarily be through social media, through our
Facebook and Twitter pages. In addition, we will operate a company telephone number and
email for ordering and product inquiry. Finally, we plan on participating in trade shows and
sponsoring events to better engage with consumers.
6. Financials
6.1 Valuation
Using a 10 year Discount Cash Flow (DCF) model, accounting for current COGS and estimated
sales off commercial advertising, we proposed a valuation of $904,789.
6.2 Assumptions
Our valuations stem from our initial investment of $35,000, in addition to a proposed $50,000
in additional investment and expenses. Of this, $20,000 total is capital investment, while the
rest is advertising and other expenses. A proposed $15,000 will go towards the future
purchasing of a printing machine to offer Pinion Pins in a customized format. In addition, new
technology needs to be built into the website in order to customize Pinion online. Depreciation
is taken account into the model.
The model is quite conservative. The projected volume of boxes sold is based on a .05%
purchase rate of the two rounds of advertising through prime time television. No sales were
projected off the other proposed methods from our Marketing Team in order to focus on

10. numbers stemming from non-risky methods. Overall, the model is quite bearish, and we still
see a high return on investment (IRR) even with sales projections which we believe to be low.
7. Appendix
7.1 DCF Table
0.5 1 2 3 4 5 6 7 8 9 10
Volume, in boxes 3000 9437 18874 20761 22838 25121 27633 30397 33436 36780 40458
Price 19.99
Gross Sales 59970 188646 377291 415020 456522 502175 552392 607631 668394 735234 808757
Reported Net Sales 59970 188646 377291 415020 456522 502175 552392 607631 668394 735234 808757
COGS / case 5.85 -23550 -74080 -110413 -121454 -133600 -146960 -161656 -177821 -195603 -215164 -236680
Manufacturing 5.50
Packaging 0.10
Transportation 0.25
Depreciation 0 -700 -700 -700 -700 -700 -700 -700 -700 -700 -700
Gross Margin 36420 113865 266178 292866 322223 354515 390037 429110 472091 519370 571377
Travel/Trade Shows -5000 -5000 -5000 -5000 -5000 -5000 -5000 -5000 -5000 -5000 -5000
Product Dev/Insurance/Legal -10000 -10000 -5000 -5000 -5000 -5000 -5000 -5000 -5000 -5000 -5000
Advertising/Marketing 0 -40000 -50000 -55000 -60500 -66550 -73205 -80526 -88578 -97436 -107179
Salary Costs 0 0 -25000 -25000 -25000 -25000 -25000 -25000 -25000 -25000 -25000
Earnings before Taxes 21420 58865 181178 202866 226723 252965 281832 313585 348513 386935 429198
Taxes 38%
Earnings after Taxes 13280 36496 112331 125777 140568 156838 174736 194423 216078 239899 266103
Outflows
Capital Investment and Salvage 20000 15000 -8000
Change in Working Capital - (Incr)/Decr 0 0 0 0 0 0 0 0 0 0
Inflows
Earnings 13280 36496 112331 125777 140568 156838 174736 194423 216078 239899 266103
Add back Depreciation 700 700 700 700 700 700 700 700 700 700
Total Free Cash Flow -6720 22196 113031 126477 141268 157538 175436 195123 216778 240599 274803
Discount Rate (WACC) 10% -6407 20179 93414 95024 96488 97819 99029 100129 101129 102038 105948
NPV 904,789
IRR 546%

11. 7.2 Product Images