Life smoke

1. Life smoke Your Alternative Health Smoke

2. Business description Life Smoke, formed as a Sole Proprietor is a one- year old company operating in the Wholesale Trade Agents and Brokers industry. The company's NAICS code is 425120. Life Smoke operates primarily as a service provider. The company is owned by: Eduan Terblanche, who has 13 years of experience in the industry and a credit rating of Good. I have studied Marketing Management and have more than 10 years' experience in Retail. I love new challenges and are very devoted in making them a success. My track record has proven my innovation and problem solving in various sectors and companies. Not accepting the norm, but thinking ahead. If there is a better way of doing things, I will find it and implement it. Working with people and understanding the concept of influencing them is one of my strong points. I love animals and do my part of green by being involved with a small monkey sanctuary that I own.

3. The team The company's management includes the following individuals: Eduan Terblanche, CEO. Stacy Terblanche, Sales Manager. Estelle Cloete, Marketing Manager Joshua Jouber, Store Manager and Juliette Tredoux, Distribution Manager. Marissa Beeslaar, Admin and Human Resource, who plans to recruit Life Smoke’ work force mainly thru Labour Consulting firms when company starts up. Life Smoke will incorporate the use of various outsourcing companies and consultants.

4. Mission & Vision At Life Smoke we strive to be a world-class enterprises of distributing elegant and healthy electronic cigarettes. Building long term partnership, providing professional customer service based on mutual benefits, with quality and stable products at reasonable pricing. We shall adhere to independent innovation and the pursuit of excellence in corporate soul, an attitude of 'serving' towards clients and employees, treating everyone as though it is ourselves. Investing in latest technology equipment, investing in our people through training, conducting research and development, rendering service of the highest standards, resulting in excellent return on investment for our shareholders.

5. Showcase

6. Performance forecast Financial Ratio Forecasts (3rd Year Industry Comparison) Forecasted Ratio Industry Average Current Ratio 46,70 1,60 % Profit Before Taxes/Tangible Net Worth 59,50 26,00 Debt/Worth 0,00 2,00 Financial Analysis Forecast FY1 FY2 FY3 Total Revenue R 244 020 000 R 548 890 000 R 1 085 950 000 Total Operating Expenses R 47 686 500 R 72 806 250 R 115 686 250 Net Profit After Tax R 148 489 563 R 363 479 146 R 752 971 586 Debt R 0 R 0 R 25 000 000 Net Cash Flow R 150 539 258 R 365 709 283 R 779 349 846 Total Liabilities and Capital R 149 091 321 R 513 322 250 R 1 292 618 182 Net Worth R 148 489 563 R 511 968 709 R 1 264 940 295

7. Customers and target market Life Smoke's primary Target Market is 16 million smokers in just SA alone (30% of 50 million population) increasing by the day especially the youth. We will also target Africa and abroad markets. Life Smoke’s customers are especially under the youth, uprising and becoming a “new smoker “. With trends towards health living. In the USA this year has doubled their new customers in 2012. Estimated sales of tobacco in South Africa per house hold. R 300 – R 12 000 per month. To reach our target we only need 1% of the tobacco market

8. distribution Life Smoke distribution strategy is not to create a lot of expenses by building, renting or setting up distribution shops all over the country, with a host of sales labour. There are various different outlet chains already in the market. They have their retail structures in place. The key is to make use of them. Marketing your product to them and the millions of retail shops out there. Rather invest in promotional stands at their outlet to create awareness and support. Network marketing and ecommerce will form a sound form of distribution at Life Smoke, not only to the SA market but all over the world. With an excellent Life Smoke "brand face" for our products, advertised in media, billboards ext. will be the foundation for various marketing companies. And they will be pillars in our marketing and distribution. Life Smoke operations will be mainly consisting of a warehouse distribution. All other operations will be in the form of contracting companies in respect to transport and logistics, sales and retail stores, labour, marketing ext.

9. Competition and competitive edge There are only but a few role players in the industry. Supplying the basic items of electronic smoking, thru experience in dealing with them. There are more than 10 000 listed electronic smoking products, it is a bowl of flowers or pack of liquorish for the smoking lovers available on the abroad market. For the competition it is a form of an income for living. The majority lacks in customer back up service or support. Life Smoke will be marketing diversity, colour and fashion, a niche that will stimulate fashion. Awarded as the sole distributer and supported by a strong supportive customer care. Not enough is done to really draw the smoker away from tobacco. Marketing our products to make a lovely gift item or a souvenir apart from a pack of cigarettes. It is imperative to have our products readily available, like tobacco is in most shops outlets.

10. Pricing and profitability On all Life Smoke product ranges shall the pricing structured be profitable. A 300% + net profit of product cost. The variety of products available from Life Smoke will enable us to set our prices to be below the competitor's pricelist. Huge quantities ordered will make it possible and comfortable to set out items compared (even better) to competition that are below their price range and still make significant profit. Life Smoke will also be setting out ranges that displays good for the poor, compromising the profit margins in a small way, but gaining in quantities sold. For the bold, extravagant and rich will pricing and profitability reach exceptional heights, because of the factors of "niche, fashion and unavailability" in SA.

11. “The deal” For value received, Life Smoke promises to pay to the order of the “Lender” the sum of amount loaned, bearing interest on the unpaid principal at the rate of ???% (% up to Lender). We offer a Payable Maturity date of ???(time period up to Lender), from date loan is received.