1. Bryson Wright and Dustyn Grooms
e-Vapes
4724 Natchez Court
Savage, MN 55378
Bryson.eVapes@gmail.com
e-Vapes Business
Expansion Plan

2. Table of Contents
Executive Summary
The Company
Company Executives
Products
The Market
Mission Statement
Objectives
Expansion Summary
Expansion Summary
Expansion Expenses
Expansion Funding
Market Analysis Summary
Market Segmentation
Marketing Strategy
Industry Analysis
Products and Services
Products
Services
Strategy and Implementation Summary
Competitive Edge
Sales Strategy
Sales Forecast
Milestones
Management Summary
Customer Relations
Operational Plan
Location
Business Hours
Personnel
Production
Production Techniques and Cost
Quality control
Inventory
Product development
Legal Environment
Financial Plan
Projected Cash Flow
Projected profitability
Projected Business Finances

3. Executive Summary-The Company
E-Vapes is a Class C Limited Liability Company registered in the State of Minnesota. E-Vapes is Co-Owned by
Dustyn Grooms and Bryson Wright. The company will be considering investors for the purpose of start-up capital
and profit sharing.
e-Vapes has been in business since August 1, 2013. We are currently creating and manufacturing a variety of e-
cigarette liquid. Our flavor catalogue has now reached 32 different flavors. In that short time we have had
nothing but positive feedback from both consumers and retailers in our industry. We have also established
relationships with several retail outlets that are interested in carrying our product. The amount of research and
preparation that we did prior to establishing our business has allowed us to produce high quality products that
have exceeded everyone's expectations. During the early stages of being in business, we have been operating
part time with the executives of the company being able to run the operations while working full time jobs.
However, we have quickly come to realize that the demand for our product, along with the necessity for opening
a retail location, can not be met without full time commitment and additional financial resources. We are
presently running operations out of one of the executives residence but will need to relocate into a business
location to meet production and sales needs as well as establish a retail presence for our expected growth.

4. Executive Summary- Company Executives
Dustyn Grooms
In 2009 Dustyn Grooms had his first experience with electronic cigarettes
living in Fargo, ND. The industry was still in its infancy and options were
limited but he knew that this would revolutionize the tobacco world. As the
industry has evolved, Dustyn has kept a close eye on the environment and
the popularity of the product. He is involved in a few forums, learning of
upcoming changes and constantly seeks the input of other users in the
industry to see what is needed. As a smoker of 16 years and an e-cigarette
user of 3 years, Dustyn has learned the value of flavor variety and quality.
E-smoking is a great alternative but finding the flavors to make you
completely forget about a real cigarette is key to sticking with it. Dustyn has
researched the science and methods for mixing E-liquid and has mixed
flavors from raw materials with success as a hobby. He has also invested
time into learning the different flavor profiles, sustainable providers from
which to get materials and quality practices laid out by the AEMSA
(American E-Liquid Manufacturing Standards Association). Dustyn has
been in the sales and sales management field for the past 12 years, selling
everything from airline tickets to insurance.
Bryson Wright
After smoking cigarettes for 5 years and failing to quit time and time again
Bryson Wright made his first purchase of an electronic cigarette. Although
this was a lower quality device Bryson knew right away that this was the
most viable option for quitting that he had come across. As his knowledge
of the products on the market expanded, Bryson became further convinced
that vaping was the best alternative to traditional tobacco use. After
making a commitment to quitting smoking, Bryson quickly became
intimately knowledgeable of the vaping industry. As a businessman and an
entrepreneur there was a great deal to get excited about. Recognizing the
amount of potential growth and the lack of controlled market shares Bryson
knew that this industry had great potential. With his experience and
knowledge acquired over the previous decade in marketing, sales, and
business management, Bryson knew that the right partners, with more
extensive knowledge of the industry, would prepare them for substantial
success.

5. Executive Summary- Products
E-Vapes will offer E-Cigarette Liquids in up to 150
different flavors with nicotine strengths from 0-24.
Bottles of liquid will be offered from 5ML (sample
size) to 30ML. E-Vapes will also offer Electronic
Cigarettes, Batteries, Disposable Cartomizers for
refillable Cartomizer tanks, drip tips, and smoke
tanks along with all of the accessories and
necessities for vaping.

6. Executive Summary- The Market
"Imagine a product that is possibly greater
than 99% less harmful than cigarettes,
delivers a similar user experience and offers
a better economic bargain—this is the
proposition of electronic cigarettes (e-cigs)."
Judy Hong of Goldman Sachs. E-cigarettes
are number one on Goldman Sachs’s list of
“The 8 Extraordinary Technologies Forcing
Business To Adapt Or Die.”
E-Vapes, LLC has been in operation as a
retail and wholesale e-cigarette and
accessory provider since 2013. E-Vapes
offers a wide variety of e-cigarette liquid
flavors and necessary consumable
accessories direct to consumer and wholesale
to retailers.
Over the past 6 years, e-cigarette commerce has
boomed in the new health conscious era. E-
smoking has become the prime choice for
traditional cigarette replacement and, as such,
has seen exponential growth. The expected sales
of e-cigarette consumables in 2013 are over 1.7
billion dollars in the United States alone. This
number is expected to double in 2014 and
continue to see strong growth. Many retail
stores, such as E-cig Crib and Smokeless
Smoking have seen success and operate multiple
outlets in the Minneapolis/ St. Paul area. Along
with E-Cigarette specific stores, E-Cigarette
options are offered in Tobacco Shops, Gas
stations and Online. E-Vapes intends to
penetrate the existing market with new and
customizable flavors, Cutting edge devices and
superior customer service.

7. Executive Summary- Mission and
Objectives
Mission Statement
We strive to always maintain
a focus on innovative
thinking, constant research
and development, a
commitment to the use of
industry leading safety and
production methods, and
first class customer service.
Objectives
The objectives for e-Vapes in the first three
years of business will include:
1. Establish brand recognition and company
reputation for providing high quality
flavorful products and first class service
to wholesale and retail customers.
2. Establish 10 wholesale clients.
3. Expand our wholesale distribution outside
of our home market.
4. Process 2000 retail transactions monthly.
5. Open at least one additional retail
location.

8. Expansion Summary
e-Vapes expansion costs will include all the equipment needed for
an office, production lab, retail store, website (and social media)
creation and maintenance, six months of rent and utilities payments,
six months of payroll, production materials, e cigarette hardware,
business insurance, and marketing and advertising costs. The
finances allocated towards our inventory will be roughly 29% of the
expansion cost. The minimum retail value of our investment of
production materials and hardware inventory will exceed $100,000.
Greater than $80,000 of that will be hardware from reputable
suppliers with established market presence.

9. Expansion Summary- Expenses
Expenses
Rent $2,000
Utilities $500
Insurance $480
Accounting $200
Web Services $200
Payroll $5000
Marketing/Sales Material $1,500
Office Supplies $500
Shipping $180
Printing $500
total Expenses $11,060
Assests
Cash Required $49,190
Current Inventory $1,000
Expansion Inventory $34,000
Other current assets $500
Non-cash assets(furniture) $10,750
Total Assets $90,440
Totals summary
Total Assets $90,440
Total Expenses $11,060
Total Required $101,500

10. Expansion Summary- Funding
Expansion Funding
Expansion expenses to fund $11,060
Expansion assets to fund $88,940
Total funding required $100,000
Assets
Non-cash assets initial expansion $39,750
Cash balance after expansion $49,190
Current assets $1,500
Total assets $90,440
Liabilities
Current borrowing $(2,500)
Capital
Planned investment
Investor 1 $100,000
Other $0
Additional investment rq’d $0
Total planned investment $100,000
Loss at start-up $10,010
Total capital $89,990
Total liabilities $(2,500)
Total capital and liabilities $87,490
Total Funding $100,000

11. Market Analysis Summary- Segmentation
Retail
Our retail customers are individuals looking to
fulfill their personal vaping needs. They will
range from the beginner looking to purchase
their first e-cigarette, to the veteran Vaper
purchasing accessories, additional MOD’s or
replacement parts. These consumers will have
a varying degree of knowledge and assistance
needs. Being knowledgeable about the industry,
changes happening and new trends, coupled
with great service and cutting edge equipment,
will be the best way to earn their business.
Wholesale
Wholesale clients will also want flavorful vapes
with a lot of options, however they will have a
higher level of concern for product quality and
production methods as their business’ reputation
will be tied to our product. By manufacturing our
products with the highest quality materials and
meeting or exceeding industry standards for
safety and production methods we can ensure
that our products will be safe, consistent and of
superior quality. The service that we offer to our
wholesale clients is what will secure and build
our wholesale market share.

12. Market Analysis- Segmentation Strategy
e-Vapes will target both wholesale and retail
customers with the primary focus being as a Retail
outlet. We feel that Retail sales, in the first 3
years ,will be the most effective and profitable
way to build our business in the current business
climate. Our profit margin is roughly 140% higher
in the retail market and allows us to reach more
individuals on a personal level. However, while
looking at business expansion we have determined
that continual growth of our wholesale program
will be a critical to our success. This will naturally
create a boost to our retail sales as well as help to
establish our business with local end consumers.
In addition to opening a storefront retail location,
we will also be working to establish an online retail
customer base with a professionally built website.
alongside this, we will be managing active social
media accounts providing our followers with
consistent content and posts in an effort to
maintain consumer engagement. Using a mailing
list to send out a periodical email will also help us
to inform our established customers about new
products or promotions in an effort to drive new
and repeat business. Online retail can be a large
portion of our business as currently about 40 % of
industry sales are done online.

13. Market Analysis- Industry Analysis
There are three local wholesale liquids providers that will be our
primary competition in this area of our business; PB Dragon,
Hell’s Vapors and Vermillion River. There are several Electronic
Cigarette stores in the metro area, we feel that our most
established competitors will be; Smokeless Smoking, E-Cig Crib
and Vermillion River. Attached to the business plan are detailed
analysis of these competitors as a benchmark for determining our
competitiveness. We will discuss further in the competitive edge
section of this presentation where we feel we distinguish
ourselves from the competition.

14. Products and Services- Products
E Liquid - E-Cigarette liquid can be made with infinite flavor
possibilities but the basic components are all the same. The
primary ingredients do not change yet slight adjustments can be
made to meet desired characteristics such as a stronger hit or
higher nicotine content. The biggest part of research and
development, as well as production, is the flavoring. Finding the
perfect recipes and being able to duplicate it over and over is what
will establish loyal customers and develop our brand name. Using
the highest quality materials gives us consistency to our product
and makes our flavors really stand out.
E-Cigarettes - The e-cigarette industry is flooded with 100’s of e-
cigarette options for users to choose from. e-Vapes will offer e-
cigarettes for the brand new vaper as well as the veteran vaper
looking for a more customizable experience. Our Brands will
include; Joytech, Smoktech,Provari, E-go, Kanger, iClear and many
others. The brands we carry in our stores and on our website will be
from recognized and reputable suppliers whose names are industry
standard and whose markets are well established. We will offer all
components of the e-cigarette, from the battery to the heating
element to the replacement parts required for continued vaping.
Accessories - E-cigarettes require and are enhanced by the accessories
that are offered for them. Rechargeable batteries, battery chargers and drip
tips are all essential components to every e-cigarette. However, those
items can be upgraded, swapped out and replaced. In addition to these
items there are also cases, lanyards, designer covers and many other
items available for vaper’s to customize their personal vaping device. e-
Vapes will be a premier supplier of all of these accessories by carrying
name brands, such as Cherry Vapes and Surefire. Our accessories will be
of the same high quality as all of our other products at the same great
value.
Return and refund policy- It will be the policy of e-Vapes to refund or
replace any broken or defective hardware items brought back within 30
days**, provided that, the device was not broken due to customer neglect
or directly due to customer use. It will also be our policy to have an in-
store credit program available to customers should they not be satisfied
with their original purchase within the first 30 days. They can return their
purchase for store credit towards a different device. E-liquid, will not be
subject to this program and is non-refundable.
**The exception to this policy will be on any disposable units such as;
cartomizers, replacement coils, wick heads or tank cores. These items will
be nonrefundable.

15. Products and Services- Services
Online Retail: For our retail customers, we will have a professionally designed and
built website to make finding and ordering the products they want quick and easy.
This type of service is nearly a requirement in any retail market today. In this market
it is vital, as online sales account for roughly 40% of all sales in the industry.
In-store experience- Our store will be a welcoming environment for our customers
from the moment they walk through the door. Every customer will be acknowledged,
greeted and thanked for coming in as soon as they walk through our doors. We will
have couches for our customers looking to relax and vape as well as tables and
chairs for customers to set up new devices. Our staff will all be trained in the aspects
of the products we provide to be knowledgeable and possess the ability to assist our
customers in setting up, troubleshooting and assembling new purchases. Our retail
location will be a trusted place to go when you need a question answered or a
problem fixed. Our display cases will be clean, organized and set up to provide
viewing capability to the most customers possible. We will also have all of our liquids
available in our sample area for our customers to taste flavors available to them for
purchase.
Custom Flavors: One of the aspects that we can offer our clients and our retail
customers that no other provider is offering is completely customizable flavors. With
our research and development team at their disposal we will make any flavor that our
customers would like. We can offer them the flavor that they have been looking for
and have not been able to find or we can help to make a flavor they like into one that
they love.
Customer Service: With the primary focus of our business being retail, meeting and
exceeding our customers needs will always be of critical importance to the success
and growth of our business. We understand that every customer will have different
needs and goals and we want to be able to help meet them all. We will take the time
to understand what each customer is looking to get out of their vaping experience.
This will allow us to create customized options based on their needs to help them
find the vape that is perfect for them.
Client Management: We realize that each of our wholesale clients will have a
different set of business needs. In an effort to most accurately serve each client we
will meet with them individually and see where e-Vapes can bring the most value to
their business. It will be our policy to meet with wholesale clients regularly to
evaluate their wholesale program and suggest implementations to better suit their
needs. Our Client Management Program is designed to work in correlation with our
Marketing Partnership to identify the most effective way to generate new customers
and increase revenue in our clients stores.
Marketing Partnership: Many product distributors have overlooked the fact that it is
their responsibility to ensure that their product is purchased. By establishing a
successful marketing partnership with our wholesale clients we can ensure that our
product is being sold, improve and secure our relationship with our retail partners
and build our name as a professional business partner that is invested in the success
of it’s business partners. Doing this job exceptionally well is a vital component to our
business plan. We believe this is the best way for us to ensure our success.

16. Strategy and implementation summary
As a Start-up company in our infancy, our need to monitor, change and
reconsider our marketing strategies will be based upon initial results and
effectiveness. Consideration of expenses and allocation of marketing
budget will be reviewed on a monthly basis to determine effectiveness of
each strategy and redistribute resources accordingly. The overwhelming
positive response our products have seen has greatly impacted our need
for business expansion. By expanding our production and establishing an
effective marketing strategy we will be able to capture available market
shares and achieve our growth potential. We are looking for investors to
help us grow and meet our production needs to match the amount of
interest we are seeing.
Word of mouth and networking through our existing contacts has been a
valuable method of exposing our business and establishing a customer
base in the beginning. Both partners are associated with an exceptionally
large natural market that is saturated with current e-smokers. Access to
this natural market is a critical component of our initial market
penetration. This also lends to a very effective word of mouth campaign
as many will be already loosely associated with the founders of the
company. This gives us a competitive advantage with an already
established customer base prior to opening our doors.
Our first three months of our expansion we will have a grand opening for
our retail storefront and begin to allocate more resources towards
establishing a brick and mortar retail customer base. These marketing
efforts may include, but are not limited to, product presentation events,
product sampling and giveaways, retail partnership marketing, face to
face, street team marketing, viral marketing, and video marketing. We
believe that effectively expanding our marketing efforts will allow our
business to grow more rapidly and reach company objectives at or ahead
of schedule. However, our distribution channel marketing strategy we
are using has been based upon previously successful businesses using this
model. We are currently trying to maximize our channels without
overextending.
Our primary allocation of resources during the first three months will be
focused on establishing our retail location. Additionally we will solidify
wholesale agreements with the retail outlets that are currently interested
in carrying our products. We will then be able to actively pursue new
clientele by regularly stopping in to retail locations with samples of our
products and professionally designed sale materials providing information
about our company and products. If decision makers are unavailable we
will leave a wholesale packet with our samples and follow-up in the
within 3 business days.

17. Competitive Edge
The knowledge and abilities that we have in producing e-liquid
allows us to do all of our production in house. This keeps the cost
of our liquid considerably lower than purchasing through a 3rd
party wholesaler. This will also allow our prices to always remain
competitive as well as afford us the opportunity to do giveaways,
discounts, and customer loyalty programs. The most significant
advantage this provides is complete control over our flavor line-up
and the ability to offer customizable flavors to our customers.
Creating flavors truly is our passion. We don’t ever expect our
catalogue to be complete because we enjoy creating new flavors.
In our first month in business, we created, tested and developed
over 30 final product flavors. This matches many of our
competitors established catalogues. We always want to be on the
cutting edge of flavoring and setting trends for the rest of the
industry to follow. The larger selection of flavors we offer will
attract a wider consumer base extending our reach and potential
for growth.
Our custom client management program is designed to help us
meet and exceed all of our clients goals and needs. By meeting
individually with each client we can be intimately aware of their
needs and provide personalized service. This approach
differentiates us as a wholesale provider invested in the success
of our clients. More importantly it will establish our commitment to
service and foster a strong long term relationship with retail and
wholesale customers. This will also give us an advantage in our
wholesale efforts by providing potential clients with referrals from
stores that have seen the value that our team brings to their
business.
A marketing partnership is something that is far too often
overlooked. We feel that this is one of the most commonly
neglected areas of business that causes distributors to fail. This
can offer us a significant advantage over our competitors who do
not excel in this area. By focusing our efforts to not only promote
our products, but to promote the business that carry (and
purchase) our products, we can increase sales for our company
as well as our wholesale clientele’s companies. Improving the
success of our clients companies will establish us as a valued
business partner and help us stand out from the competition.

18. Sales Strategy
e-Vapes sales strategy will be targeted at
obtaining wholesale clients as well as
retail customers both online and instore.
These two different sales processes will
require unique sales strategies and
preparation. We have put considerable
time and thought into the challenges that
these different areas of our business will
provide and we feel as though we are
prepared to overcome and succeed in
both markets.
Traditionally, most of our retail traffic will be
people who are looking to buy, as we are a
specialty store with products in a very specific
market. Our prospective customers can get a
similar product from other vendors. With this
in mind, e-Vapes will attempt to close the sale
by showing our high quality products, extensive
product selection, and expert knowledge and
service that sets us apart. Our products will be
competitive in both quality and price, our
service and knowledge will be exceptional and
we will always have a constant focus on
establishing our business’ reputation.

19. Sales Strategy- Market Segments
Retail and Online
We provide several ways to acquire our products in an effort to make our products
readily available and to infiltrate the market as thoroughly as possible. One way is
for the customer to come by our retail store and make a purchase. Here we will
have all of our flavors and hardware on display and ready for sampling. The
customer can also make a purchase on our website and have their order shipped to
them directly. Additionally, our customers will have our liquids available to them
in multiple outlets participating in our wholesale program. Lastly, we will look for
opportunities to get our name and products out in the community at any events
that will be beneficial to our marketing and branding efforts.
In addition to our store, our marketing efforts we will be designed to drive people
to our website. Once on our site, customers will see the wide range of products we
have to offer. The website will have valuable content about the quality of our
materials, our safety standards and our production methods. Online sales will be
especially useful for customers out of town. By establishing a strong online
presence we can effectively reduce geographical restrictions on our retail business.
When a customer establishes a secure account on our site, we will have the
opportunity to offer them advertising and discounts to save on future purchases, as
well as unique service such as auto ordering to ensure that they never run out of
liquid and/or replaceable hardware. Services, such as auto ordering, are a great
way for us to stand out from other online retailers and increase customer
retention.
Wholesale
e-Vapes sales method for wholesale clientele will be a well
thought out presentation of our value as a business partner. We
are confident that after trying our product, store owners will
know that they have a market for our flavors. From there, we will
discuss with them the quality of our materials and our
commitment to final product quality and industry leading safety
and production methods. After establishing e-Vapes as a quality
product, we will place an emphasis on service and discuss briefly
our focus and goals with our custom client management program
and marketing partnership. We feel this direct and effective
presentation of our company's values and objectives will establish
substantial value in creating a business partnership between our
companies. Closing with our prices being equal to or less than all
of our local competitors should finalize the sale. We expect the
most repeat wholesale customers to utilize the website as a
catalogue and ordering system, because it takes less time for
them to order on the web then it does from them to do so in
person or over the phone. This is one of many ways we hope to
make their experience with us easy, and beneficial to their
bottom line.

20. Sales Forecast- Quarterly
● Wholesale ● Retail

21. Milestones
Milestone Date
Sign Lease 11/15/2013
Set-up lab 11/22/2013
Obtain licensure 11/22/2013
Inventory at par 11/29/2013
Soft opening 11/29/2013
Grand opening 12/06/2013

22. Management Summary- Executives
Bryson’s primary position will be as the Head of Marketing
and Business Development. He will manage and oversee the
development process of company marketing materials such
as, but not limited to, company logo, website, product
labels and in store promotional material. His
responsibilities will also include planning and coordinating
marketing and business development related events such as
in-store promotions, product demos, sampling and market
research. Working closely with Dustyn to will develop and
implement sales systems and materials to identify
consumers wants and needs as well as changes in our market
to maximize the effectiveness of our marketing program and
the efficiency of our sales and production teams.
Additionally his time will be spent researching and
identifying prospective wholesale clients, initiating contact,
delivering sales pitch, securing contract and establishing
client management systems to address individual clients
goals and needs.
Dustyn’s primary responsibilities will be as the Head of
Production and Product Development. As the primary
product developer, he will invest time, materials, resources
and knowledge in developing final deliverable products. He
will manage, oversee and and produce final deliverable
products to maintain a prudent inventory to meet the needs
of our clients, both wholesale and retail. He will also work
closely with Bryson and the retail store manager to account
for changing production needs based upon companies sales,
as well as forecasted growth. Dustyn will also be the acting
Inventory and Supply Manager. Responsible for supplier and
buyer relationships and negotiations. Completing research
and identifying changes in the supplier market on a regular
basis to ensure we are always offering our customers the
highest quality products as well as new and changing trends,
while maintaining our competitive prices and maximizing
profit.

23. Management Summary- Customer Relations
Delivery: Will be provided to online retail customers as well
as all wholesale clientele. Shipping costs will be deferred to
online customers at cost. Shipping costs to wholesale clients
will be absorbed by e-Vapes as part of a wholesale incentive
program.
Warranty: All hardware will have a 30 day warranty. Any
product distributed that fails to meet quality standards will be
replaced free of charge and, if determined to be necessary,
all lot and batch items will be recalled and replaced at the
expense of e-Vapes.
Support: Our Wholesale Client Management and our
Marketing Partnership are services that are designed to
provide our clientele with as much support as we can offer.
We will assist anyone in our store with hardware setup and
troubleshooting and will be available by phone and email to
provide the same support to our online customers.
Follow-up: A customer satisfaction email will be sent out to
our online retail customers roughly one week after receiving
their products. This will help to ensure customer satisfaction
as well as provide us with feedback to better improve our
products and services. Consistent follow up will also be a
vital part of our wholesale client management program.
Customer Service: It is the expectation of e-Vapes to
respond to any customer inquiry within a 24 hour time period.
Our policy will also be that of a quality guarantee.

24. Management Summary- Operational Plan
Location-
Our retail location will ideally be in a high traffic retail
commerce strip mall location. We are looking to situate our
retail location in the western suburbs of Minneapolis, with a
focus on the St. Louis Park/ Minnetonka area. This segment
of the market currently does not have a retail e-cigarette
presence with a large market segment available to be
capitalized on.
Business hours-
Our business hours will be as follo
10-8 Monday thru Thursday,
10-10 Friday and Saturday
10-6 on Sunday.
These hours have been decided upon based on other
retailers currently in operation hours’ and the hours of local
businesses near our location.
Personnel-
Our hiring structure is laid out in detail in the investment
finances. Our process for decision in hiring new employees is
a combination of daily traffic count and monthly profit. We
have established these breakpoints in all three scenarios to
follow a logical thought process in deciding when it will be
the most financially responsible to hire employees.
Employee selection and training-
We will source established hiring avenues to acquire
employees. Every employee will go through an interview
process for selection.
Training of new employees will follow the established
handbooks and manuals to ensure continuity of employee
knowledge.

25. Production- Techniques and cost
The products we produce will be made in a lab
set up specifically for the manufacture of e-
cigarette liquid. The lab will have stainless
steel tables, sanitary gloves, disposable single
use production supplies and separate individual
compartments for storage. All items used in
the manufacture of e-liquid will be kept at
room temperature, in visible and clearly
labeled containers. All Nicotine, Propylene
Glycol, Vegetable Glycerin, and flavorings are
kept in original labeled containers or are in
approved BPA free bottles with labels
containing all original manufacturer
information.
All e-liquid manufactured in our facility is made in
batches of 1000 ml or smaller. This ensures quality
consistency of product and allows for better
quality control of product. Each batch of liquid is
mixed with minimum nicotine Amount (6mg) to
allow for steeping of flavors and nicotine. The only
exception would be product mixed with 0 nicotine
to be sold as 0 nicotine liquid. All flavor recipes
are written down and recorded in a production log
book and all batches of each flavor are given a lot
number and batch number. Each lot and batch has
recorded amounts of product used in production.
After completion of each batch produced, final
product is “flash steeped” in hot water for 15
minutes to meld individual components of flavor.

26. Production- Quality control
E-Liquid- Each Batch of liquid is tested upon
completion of a 3 day steeping process by 2
separate staff members to ensure quality.
This process is in place to ensure product
quality and consistency for every lot and
batch. Nicotine test kits are also used to test
every bottle of nicotine received and test
results are logged in log book. This is in
effort to make sure every batch of nicotine is
at desired strength and ensures nicotine
levels in completed product is as advertised.
Hardware- All hardware will be checked in and
marked with the date received. Each set of new
hardware will be kept separate based on the date
received so that if any piece of the hardware is
defective, other similar items in that date receipt of
inventory can be tested for defect. Any devices or
batteries going out on to the sales floor will be
tested prior to being set out for merchandising. All
accessories will be checked over for manufacturer
defect prior to being made available for sale. Any
issues determined by sales or pre-sales inventory
will be logged and tracked. If a certain supplier or
manufacturer shows a track record of defective or
damaged products, a conversation will be initiated
to determine whether or not a long term relationship
will continue.

27. Production- Inventory
Our inventory and ordering system will be tracked on an inventory
spreadsheet and managed daily to ensure adjustments are made
as order frequency increases. Plans have been made for a future
inventory management system but the same attention will need to
be paid to this automated system to ensure accurate levels of
product are on hand.
Our inventory level, at any point in time, will be between
$10,000-$35,000 in raw product, bottles, hardware and finished
goods. That $10,000-$35,000 will be valued between
$40,000-$150,000 as finished product depending on retail or
wholesale.
At present, industry standard is that of shortage. Every supplier is
currently working to keep up with demand for product which has
created lapses in product availability. Our goal will be to establish
breakpoints at which we decide to increase par levels for every
inventory item. Lead time on ordering for every product should be
at least a week so we will be ordering on future expectations
every week to ensure always having new product coming in before
need arises.
Inventory will be controlled and monitored as follows:
● An inventory management spreadsheet is already in place
and will be upgraded with an inventory management
software as demand increases.
● Pars for each product offered have been created and will
be updated weekly based upon sales. Pars of product take
into account recurring orders, current orders received and
product on hand.
● The inventory spreadsheet will be updated and monitored
daily and orders of base materials will be ordered in
advance based on Milliliter calculations of material
needed per 1000 ml.
● Wholesale agreements have been set-up with suppliers to
ensure our demand for raw materials can be met and
discussions about product availability at multiple different
need levels have been had to ensure wholesale supplier
can meet growth needs.

28. Production- Product development
● e-Vapes will be in a continual state of product development. Surveys
from the market of product will be used to modify existing products
for maximum flavor potential. New flavors will be created as
suggested and on an ongoing basis by production team.
● Best practices will be monitored on various industry websites to
ensure current production methods and raw materials are up to date
with industry standard.
● Suggestions will be taken from wholesale and retail clients and
reviewed by production team for potential action needing to be
taken.

29. Financial Plan- Sales and cost
Year 1 Year 2 Year 3
Sales
Retail $201,350.22 $598,600 $1,803,100
Wholesale $122,760.00 $301,878 $565,254
Total Sales $324,110.22 $900,478 $2,358,354
Cost
Retail $39,207.43 $116,678.87 $351,459.52
Wholesale $35,596 $87,533.80 $163,903.40
Total Cost $74,803.43 $204,212.67 $515,362.92

30. Financial Plan- Cashflow projections
● Cash Balance ● Net Cash Flow

31. Financials- Profititability
● Sales ● Gross Margin ● Net Profit