DRAFT
Business Plan 4.0
for the
CleanAir Engine Test Team
April 2003
Business Plan Copy Number ______
This document contains confidential and proprietary information belonging exclusively to Clean Air Engineering, Inc.
Needs Investigation by
Bill Walker, Larry Golden & Don Allen
Business Plan by Bill Walker
Palatine, IL
847-991-3300
Executive Summary 4
Vision / Mission 4
Background 4
Financial Objectives 5
Capital Requirements 5
Team Selection 6
Service Strategy 6
Team Aim 10
Present Situation 10
Vision 12
Goals 12
Company Overview 14
Initial Team Structure 14
Strategic Alliances 16
Service and Product Strategy 17
Marketing and Target Customer Profile 18
Competition 19
Marketing Plan 19
Relationships Strategy 19
Selling Structure 20
Gift Certificates (Discounts) 20
International Market 20
Customer Service 20
Satisfaction Guarantee 21
Advertising And Promotion 21
Public Relations 23
Financial Plan 24
Assumptions 24
Financial Statements 24
Capital Requirements And Financial Risk 25
Exit / Payback Strategy 25
Conclusion 26
Supporting Documents 27
Appendix A 27
Appendix D 31
Appendix E 36
In May 2002 the CleanAir Board approved the Engine Test Team startup. People were on board August 2002 to initiated services to the engine testing markets including test cells, stationary and mobile sources.
Overall, this team will be characterized as a high value provider of air emissions and other related services for select customers.
Examples of some of the possible services are:
1. Rental and sale of test cell specific instruments and equipment.
2. Testing of stationary internal combustion engines.
3. Building and or operating engines test cells is a long-range possibility provided this need can support our high value model.
We have selected our customer and service opportunities to ensure we work on project and processes where we can deliver the 10X CleanAir value.
We do this with a spreadsheet which identifies the companies that recognize the total value concept and reward it.
For several years we have known that the engine test cell market has methods and emission monitoring requirements that are similar to source. The various types of engines have slightly different requirements.
Most engine continuous emissions measurement requires a CEM with a 1-second response time. These instruments are made by Horiba, Siemens, Rosemont (Beckman), Pierburg/AVL, EcoPhysics and California Analytical.
Diesel engines, because they can create soot, must be tested with an ambient air dilution and mixing sampler that provides a time delay before the particulate is filtered. AVL, Horiba and Sierra make these "dilution tunnels" and instruments.
Since each piston emissions may be of interest it is occasionally of interest to measure emissions for every few degrees of crank angle. This requires both fast (less than 1 second response time), and very fast responding CEMs (more than 1000 readings per). The latter instruments are only offered by Cambustion, LTD.
Revenue projected for fiscal year 2002 is projected to be $500,000 (see Appendix B). Annual growth is projected to be >50% per year through 2005. We plan that within 3 years CleanAir Engine Test Team will be a permanent Division of CleanAir Our objective, at this time, is to propel the CleanAir into a prominent market position, primarily within the non-automotive industry.
According to the opportunities and requirements for CleanAir Engine Test Team described in this business plan, and based on our business projections, our total capital requirements is a maximum of $900,000 during the 3 startup years. Borrowing on team assets will generate 67% of this capital and 50% will be recoverable by asset sales if the team is dissolved. See Pro Forma Balance Sheet in Appendix D.
To accomplish this goal we have developed a plan to intensify and accelerate our marketing and relationship activities, product development, services expansion, engineering, distribution and customer service. To implement our plans we project a cash investment totaling $300K then borrowing an additional $600K on team assets for the following purposes:
Build rental instrument inventory to be shared with our rental group. Rental service will be to initiate services and to have a high impact deliverable to advertise
Maximize relationships with an extensive marketing campaign to promote our services.
Launch an online catalog.
Establish Customer Support services to handle the increased demands created by the influx of new orders.
Augment Customer staff to support the technical aspects of engine testing.
Continue Customer Need Research and Operations Development to create additional services as well as to further fine-tune our high value advantages.
1 Team Business Leader
1 Team Relationship Leader
1 Team Technical Leader
We will interview both internal and external applicants.
Additionally, other CleanAir leaders will act as advisors and provide creative input and will provide unified support.
Initial Services
We anticipate the initial services to be instrument rental, on site testing and instrument maintenance. As we garner competence we will move into consulting and knowledge management.
Operations
Operations will function as a self-directed team for all engine test cell related work and will be responsible meeting for Sales and Profit as projected in the Base Plan spreadsheet..
Customer Profile
CleanAir Engine Test Team's target market is the high-end quality company that operates test cells. A partial list of potential customers is attached as Appendix A.
Competition
For rental competition we found Pierburg (recently merged into AVL ) Richardo, Rauch and Cosworth all of which apparently only have one instrument to rent. . In addition Lubrizol was leasing a portable system from Environment Canada
Risk
The top business risks that CleanAir Engine Test Team faces as it begins is the challenge of placing a value on the service needs. Most test cell operators considered their internal customers to be Sales, R&D and Engineering. Therefore there does not appear to be a market-based approach to test cells. They are viewed as a necessary business function such as accounting.
Marketing Plan
Advertising and Promotion
Our advertising and promotion strategy is to position CleanAir Engine Test Team as the leading service provider in the market.
Public Relations
CleanAir Engine Test Team will focus on the following publicity strategies:
We plan to issue an email newsletter every quarter to provide value to our customers, to identify value opportunities and remind them of the value we have delivered.
We plan to help our customers' public relations efforts by identifying environmental friendly results and then helping them communicate these to the public.
Financial Plans
Exit / Payback
The Engine Test Team will be operated as a business unit for the 3-startup years. Accounting will provide do a simplified balance sheet and cash flow in addition to the team income statement. If the initial seed money is depleted no additional CleanAir investment will made unless the actual results are better than the Base Plan.
The attached financial projections indicate that the Engine Test Team will be a full contributing CleanAir team by January 2005.
The exit strategy is that the team will be sold, liquidated, dissolved or replaced after 4 quarters of missing the Base Plan.
CleanAir payback will be to welcome an exciting new growth team in 2005.
Conclusion
Based on our preliminary market research the CleanAir Engine Test Team has an opportunity to create a high value new service business.
We will provide services valued at 10X cost, to the engine manufacturers, test cell operators, engine component suppliers and engine owners and thereby help them improve global air quality.
This is a new concept niche business. There are very few business currently addressing some of the niche we are targeting.
During September, October and November of 2001 the ad hoc team of Bill Walker, Larry Golden, Don Allen, and Dr. Sorin Petreanu* visited the following eight engine test facilities:
1. Navistar - Melrose Park, IL
2. Kabota - Lincolnshire, IL
3. Waukesha - Waukesha, WI
4. Kohler - Kohler, WI
5. Mercury - Fond du Lac, Wi
6. Caterpillar - Peoria, IL
7. Labeco - Torino, Italy
8. Lubersol- - Painesville Ohio
The needs we identified are listed in Appendix F.
From these needs we have identified the following immediate market opportunities:
1. Instrumentation Market Maker to buy and sell quality rental instruments
2. Rental of instruments and instrumentation systems
3. Testing for performance guarantees
4. Remote monitoring for reliability and maintenance of owned or rented instruments.
These could lead us to additional opportunities such as:
1. Consulting on monitoring process improvement
2. Distributor of spare parts for test cell equipment
3. Emissions trading service
4. Repair of instruments
5. Training on instruments
* Recent mechanical engineering graduate of University of West Virginia who specialized in internal combustion and diesel engines.
Initial Services
The easiest business needs to fill which will also help to get quick recognition are renting high profile instruments, brokering used instruments and instrument maintenance including on-site repair.
Market Environment
The marketplace is undergoing rapid changes due to the US EPA and the European Common Market ratcheting down on emissions . The diesel manufactures in the USA are in a life or death race with the Tier 3 requirements promulgated for 2008. Other engine manufactures have major environmental hurdles and disruptive technology such as fuel cells. This market is ready for harvested!
Visit the EPA Office of Transportation and Air Quality for additional information.
Pricing and Profitability
Pricing for all services will value based not unit based. We will initially set be set higher pricing and then reduced as we find the support levels. Instrument rental fixed prices will be 6 month return for the higher end and hard to get items.
Customers
‡ Manufactures of autos, trucks, tractors, marine engines, locomotives, small engines and large engines.
‡ Suppliers of additives, lubricants and catalysts.
‡ Operators of pipelines, diesel generators, railroads and ships.
‡ Consultants to test cell operators
Distribution
We will use all existing CleanAir offices and plan new offices in Detroit, Shanghia,Shanghai, Munich and other engine manufacturing centers.Financial Status
[] Summary data from your financial statements should be plugged in below. Please refer to the Financial Plan section.
Current cash available is $[x].
Our Current Ratio is: Assets / Liabilities = [x].
Our Quick Ratio is:
(Cash and Equivalents + Accounts Receivable + Notes Receivable) divided by Total Current Liabilities = [x].
By 2005 CleanAir Engine Test Team will be generally known as the best engine test cell service provider. We will become the leader in fast response problem solving. Sales will exceed $1M/year in 3 years and CleanAir Engine Test Team and CleanAir Trading Company will actively be promoting our high value.
We will build on the core competencies of CleanAir such as instrument rental, instrument repair, fast shipping, reliable data and responsible service.
Primary goals will cover the following areas:
‡ Client Value Creation
‡ Profits for both CleanAir and our Clients
‡ Quality measured using feedback on every engagement
‡ Growth
In order for CleanAir Engine Test Team to attain its vision in the manner described in our vision statement, the following primary strategic goals need to be achieved:
Team Formation: By the end of the 2nd month after the CleanAir board approval the Engine Test Team will be interviewed, selected, replaced, transferred and settled in their new team environment. They of course will be available for occasional consultation by their previous team but it is expected that 90% of their effort will be on Engine Test Team work.
Services: By the end of the 4th month after the CleanAir board approval the Engine Test Team will invoiced their first $10,000. We expect to sell and deliver services as we define and build the team business structure.
Marketing: By the end of the 8th month after the CleanAir board approval the Engine Test Team will have contacted the 30-targeted Midwest client with a list of services offered. We will have an active customer base of over 10 companies. To reach these customers we plan to call, visit and email on a weekly basis. We will then expand our marketing efforts to the other regions.
Sales: By the end of the 14th month after the CleanAir board approval the CleanAir Engine Test Team will [Sales-related goal(s)]. Ourour services will be known to all the major test cell operators. Additionally, all CleanAir employees will be aware on the Engine Test Cell offerings and be supportive of our services and team.
By the end of the first 12 months total sales will exceed $500,000.
By the end of the first 24 months the prior 12 months total sales will exceed $750,000. With a 10% profit before overhead.
By the end of the first 36 months the prior 12 months total sales will exceed $1,200,000. With a 20% profit before overhead.
By the end of the first 48 months the prior 12 months total sales will exceed $1,800,000. With a 30% profit before overhead.
By the end of the first 24 months CleanAir Engine Test Team will:
1. Understand customers, value opportunities and the industry
2. Have established product, services, and sales channels.
3. Balance people / leadership / business goals
4. Transition from single-point to 2 sales and service locations
5. Have 24/7 service availability with delivery
6. Be operating at $200,000 per year sales per employee*
7. Contributed to the CleanAir high values and trust culture
8. Hire the best people
* This is team only excluding overhead allocation
We feel confident that the above goals can be reached.
Leadership
The team will initially report directly to the President . The team will have freedom to self select a leadership model that works.
Business Leader*
Sales, Marketing and Relationship Leader *
Technical Leader*
* Initially two of these positions will be filled by one person.
Option Allocation
This team will participate in the CleanAir Options program on the same basis as all other CleanAir operating teams..
Responsibilities
‡ The team will be responsible for all CleanAir services to engine test cell operators.
‡ The team will be responsible for all CleanAir services to internal combustion engine operators including diesels. {excludes turbines engines}
‡ The team will be responsible for delivering CleanAir value at an average of 10X invoice with supporting process and data.
‡ The team will be responsible for a positive bottom line before overhead for the 1st 12 months.
‡ The team will be responsible for a positive profit after overhead at 24 months.
‡ The team will be responsible for a 20% bottom line profit rate1 after overhead at 36 months.
1 rate as used here is for 12 rolling months
Business Leader
Develops and maintains the vision of the team. Coordinates market positioning, product development, operations, finance, customer service, etc. Approves all financial obligations. Seeks business opportunities and strategic alliances with other companies and organizations. Plans, develops, and establishes team policies and objectives of business in accordance with directives and this plan. Directs and coordinates financial programs to provide funding for new or continuing operations in order to maximize return on investments, and increase productivity.
Sales, Marketing and Relationship Leader
Leads market planning, advertising, public relations, sales promotion, merchandising, and facilitating staff services. Identifies new markets and corporate scope and market research. Oversees market research and analysis as well as evaluation of competition. Identifies and set strategy for reaching foreign markets.
Handles staffing and training and to develop and lead relationship program. Analyzes relationships to formulate strategy and promotions. Leads relationships and technical sales activities.
Technical Leader
Directs and coordinates activities concerned with research and development of concepts, ideas, specifications, and applications for organization's new services or services. Oversees product development, including quality control, physical distribution, product and packaging design, new product development and improvements on existing services. Leads technical operations.
CleanAir and Overhead Support
Additionally, CleanAir leadership will provide legal, accounting, IT, and other functions as generally provided to other CleanAir teams.
In addition CleanAir Instrument Rental will provide instrument maintenance and shipping service at an inside service rate.
Staffing
Staff will be transferred or hired as needed to meet the business plan.
There are many ways to reach the top of an oak tree;
(a) start climbing,
(b) sit on an acorn,
(c) make friends with a big bird...
The team will target a list of BIG Birds.
Relationships
CleanAir Engine Test Team will concentrate on establishing a relationship with all the major test cell operators worldwide plus all the all the value driven test cell operators in the central USA.
Supplier Relationship agreements will be established with the major instrument vendors to facilitate a rental inventory.
Proprietary Technology
Our service ideas will be protected by copyright:
We will patent all worth-while new idea.
VALUE or Return on Customer's Investment
For our target customers, our services will deliver greater than 10 times invoice.
High value opportunities for our customers include:
‡ Advantages of independent third party certification
‡ Availability of better-quality instruments
‡ Better timely data for environmental decisions
‡ Faster turnover of inventory
‡ Improved efficiency
‡ Improved product performance
‡ Improved Test Cell productivity
‡ Increased capacity
Planned Services
CleanAir Engine Test Team plans to continually develop new services and enhance existing services.
Initially the following needs have been identified:
‡ Carburetor Setting Service
‡ Cell Construction & Rebuild
‡ CEM, Emissions Test bench & GasMet FT-IR
‡ Contract Engine Endurance Work
‡ Emissions Trading Assistance
‡ Field Emissions Testing
‡ High Speed HC Rental
‡ High Speed NOX Rental
‡ Instrument maintenance Contract
‡ Instrument Parts Supply
‡ ISO 17025 Independent Calibration
‡ Making a market in test stand equipment (buy and sell)
‡ Mobile Van needed
‡ Occasional Instrument Rental Need
‡ Remote Monitoring
‡ Swap out for repair
‡ Test Cell BACT Controls
‡ Trending of Production for product improvement
‡ User Meetings
Rental Instrumentation
It is suggested that we purchase one or two instruments that are considered world class for R & D such as a Cambustion, LTD. HC or NOx high-speed analyzer. Then supplement this with functional used equipment. Replace the used with new as demand grows.
Facilities
The team will be located in Palatine using the HR area on the 1st floor of the main building. Space cost will be ramped up quarterly from zero to full rate over 3 years.
Shipping will be handled by rental and billed.
Boxes will be purchased from Rentals
Office space will be in 500 W, Wood Street on the 1st floor. Warehouse space will be in the lower level of 500 W, Wood Street.
We will market based on increasing bottom line profits and meeting customer needs. We will proactively sell partnerships and high value advantages.
We will have a special marketing message for each type of customer?
Innovator
Early Adopter
Early Majority
Late Majority
Laggard
In a slow economy we will focus on maximizing return on existing assets.
In a normal economy we will focus on eliminating constraints, maximizing and minimizing time to market.
In a robust economy we will focus on maximizing capacity and supplementing staff.
In all economies we will maximize through-put.
We will work to identify those companies that encourage partnerships and the individuals that have responsibility for bottom line?
We will target needs for service that are not being offered by any other company. We will try to partner with other service providers to the test cell market instead of competing with them.
We will select 20 target partners to call weekly and visit quarterly until we know their business as well as they do..
Pricing
Pricing will be value based not cost and time based.
Different aspects of our markets such as EPA Tier target dates will affect our pricing. We also may have high and low demand due to the vehicle model year crunch.
Distributors
We may use CleanAir Express and their distribution system to sell products and parts. If so then the internal price will be about 50-70% of the list price.
Direct Sales
We will have outside sales and in-house technical sales functions.
We will offer our partner customers a loyalty discount based on their rolling 12 months sales volume. This system will be in the form of monthly gift certificates issued on receipt of a prompt payment. Our Partner records may be kept online behind a password wall so all can see data such as rolling 12 months sales, discount and $VALUE of what we delivered.
It is important to consider your worldwide opportunities from the start. Our French office will be asked to do a European market needs analysis.
Technical support to marketing and relationships functions will be key. Pre- and post-sales application supported will be by rotating staff on call to provide 24/7 coverage.
We will use the following policy:
"If for any reason is not right we will fix, replace or make a full refund including shipping costs".
Until it is proven that the Engine Test Cell Market is not worthy of this approach.
Our "Promotion Theme" will enhance, promote, and support the fact that our services have a return that more than pays for the cost.
We will prove that good advertising and promotion is an investment, not a cost.
CleanAir Engine Test Team recognizes the key to success at this time requires extensive promotion. This must be done aggressively on a wide scale. Advertising will be by CleanAir Engine Test Team with support from The Trading Company.
Media Objectives
Gain awareness of CleanAiramong industry groups, engineers, buyers, and customers and owners.
Establish an image of CleanAir Engine Test Team as an organization that is professional, completely reliable, and highly positioned in the market.
Media Strategy
Use e-mail, FedEx mailings and targeted publications.
Advertising Campaign
Ideally, after becoming familiar with our product, the consumer will call our toll-free 800 number and place their order using their credit card while looking at our offerings on the Internet.
List Management
Given the growing potential of engine testing we are building our capabilities in database marketing. We will bring our customer list in house for this first phase, as we develop our database sophistication. Our on-line registration and periodic customer surveys will help us improve, understand our customer, and measure the success of our marketing, relationships and product activities. This in-house presence will provide our relationships and tech support teams with tools that streamline their operations, while they update our customer knowledge on a daily basis. We plan to develop an information system that will help us make sound decisions by providing historical data based answers to the questions we pose.
Relationships Support Collateral Materials
CleanAir Engine Test Team will develop a variety of collateral materials to support our relationship efforts. These items include:
Online Video
News Releases
Brochures
Large Post Cards
Convention booth
Position CleanAir Engine Test Team at the leading edge in providing Engine Text Environmental Services.
Communicate on a regular basis with two target publics:
1. Major trade publications
2. Key personnel in the targeted companies
Press Release
CleanAir Engine Test Team will develop a series of press releases on the entire service area. In addition we will do releases for each new major instrument introduction.
Trade Show
CleanAir Engine Test Team will participate in three engine related trade shows:
1) SAE in Detroit
2) ASME
3) Power-Gen
For a 5 year Income Statement projection refer to Appendix B.
We plan to have working prototypes of the team systems by July 2002.
General inflation rates are assumed to be 0% per year.
Two financial projections have been prepared. Both use the same total sales for each year.
Lower margin projections or Base Plan are given in:
WWW/team90intranet/projects/BIZ PLANS/Engine Test Team/ 5 yr Engine LM Pro Forma 2.htm
Higher margin projections or Goal Plan are given in:
WWW/team90intranet/projects/BIZ PLANS/Engine Test Team/ 5 year spreadsheet HM.htm
The higher margin Goal Plan is summarized here :
Income Ratios (as a percent of sales):
Year 2002 2003 2004 2005 2006
Sales $565,607 $930,000 $1,222,500 $1,833,750 $2,750,625
% Growth NA 86% 58% 50% 50%
Team Profit $74,748 $118,875 $262,957 $465,392 $788,030
% Growth NA 59% 121% 77% 69%
Pre Tax Income ($2,699) $17,687 $107,115 $236,521 $449,552
% Growth NA NA 506% 121% 90%
Year 2002 2003 2004 2005 2006
Operating Income NA 14.90% 21.02% 24.96% 28.30%
Income after OVH and Tax NA 0.96% 4.79% 7.24% 9.27%
Cash Flows Statements
There are Cash Flow projections associated with both the Base Plan and The Goal Plan
Balance Sheets
There are Balance Sheets projections associated with both the Base Plan and The Goal Plan.
The team will need to be able to draw up to $300,00 from aCleanAirseed money account and then be able to borrow on team equipment and A/R for an additional $600,000.
The risk is minimal since the team will be initially small and the assets will be able to be resold.
How Funds Will Be Used
It is very important that the investments have a high return on assets. It is planned that the Rental Return on Depreciated Assets (ROFA) of 115% will not be diluted after the 4th year.
The financial projections indicate that Engine Test Team will be a great addition to CleanAir or it will be shutdown within 3 years. If this business Base Plan projections are not met the team exit strategy can be triggered at any time by the board resulting in a sell off of team assets and a fast orderly exit.
The profits generated by The Engine Test Team will allow us to have the funds to repay the seed investment in less than 5 years.
Note that the borrowing capacity and increase in cash will be ~$3,000,000 after 5 years.
Based on the attached financial projections, we believe that this venture represents a sound business investment.
In order to proceed we are requesting a board commitment to this business plan.
A partial list of potential customers includes:
1. ACME Motori S.r.l.
2. Alaska Diesel Electric, Inc.
3. Allison
4. American Diesel Corporation
5. Arrow Engine Company
6. Basant Products India (Vidhata)
7. Bernard Moteurs
8. Beta Marine Ltd.
9. Briggs & Straton
10. Briggs & Straton Daihatsu
11. Callensen, Heinrich, A/S
12. Capstone
13. Case / New Holland
14. Caterpillar Inc.
15. Chrysler
16. Corning
17. Crusader Engines
18. Cummins Engine Company, Inc.
19. Cummins Natural Gas
20. Daewoo Heavy Industries
21. Daytona Marine Engine Corp.
22. Deere Power Systems Group -- Industrial, off-road and marine diesel engines, CNG truck and bus engines
23. Detroit Diesel Corp.
24. Detroit Diesel of Canada, Ltd.
25. Deutz Corporation
26. Engelhart
27. Ethyl
28. Fairbanks Morse
29. Farymann Diesel/PRP Inc.
30. Ford Power Products
31. GM Powertrain
32. Hatz Diesel of America, Inc.
33. Hercules Engine Co.
34. Hino Motors Ltd.
35. Honda Motor Co.
36. Isotta Fraschini
37. Isuzu Motors Inc.
38. Iveco
39. Jenbacher Werke AG
40. Johnson Mathey
41. Kawasaki Motors Corp.
42. Kohler Co.
43. Kubota Engine America / Kubota Canada Ltd. Engine Division -- Clean emission diesel engines
44. Linamar
45. Lister-Petter
46. Lombardini USA, Inc.
47. Luberzol
48. Mack Trucks, Inc.
49. MAN Engines & Components
50. Mazda Motor
51. Mercedes-Benz AG
52. Mercury Marine
53. Mirrlees Blackstone Ltd.
54. Mitsubishi Engine
55. MTU Motoren und Turbinen Union
56. Navistar International Transportation Corp.
57. Nissan Industrial Engines
58. Onan Corp.
59. Peninsular Engines Inc.
60. Perkins Engines
61. Peugeot Citroen Engines
62. Pratt & Wittney
63. Robin America, Inc.
64. Scania AB, Industrial & Marine Engines
65. Solar
66. Tecumseh Products Co.
67. Volkswagen AG
68. Volvo Penta
69. Wartsila NSD
70. Waukesha Engine Division / Dresser
71. Westerbeke Corporation
72. Westinghouse / Siemens
73. Wis-Con Total Power Corp.
74. Yanmar Diesel America Corp.
Top 20 Questions
The team will be expected to answer board questions in June of 2002. It is anticipated these questions will be similar to:
1. What type of business do you have?
2. What is the main aim of this business?
3. What is the key message or phrase to describe your business in one sentence?
Suggested answer:
Find high value customer metric based needs, innovate and deliver service, service, service!
4. What is the process to establish customer value on each
5.
6. What is your reason(s) for starting this business?
7. What are the product and services?
8. Can you list three unique high value benefits you have provided?
9. Do you have datasheets, brochures, diagrams, sketches, photographs, related press releases or other documentation about your product / service?
10. What is the product application?
11. Is this product or service used in connection with other services?
12. List the top three objections to buying your product / service immediately?
13. When will your product be available?
14. Who is your competition?
15. How is your product differentiated from that of your competition?
16. What is the pricing of your product versus your competition?
17. Are you making any special offers?
18. What plans do you have for advertising & promotions?
19. How will you finance team growth?
20. Do you have the team leadership needed to achieve your goals?
Appendix E - Non-Disclosure Agreement
Non-Disclosure Agreement
The undersigned acknowledges that CleanAir Engine Test Team has furnished to the undersigned Evaluator certain proprietary data ("Confidential Information") relating to the business affairs and operations of CleanAir Engine Test Team for study and evaluation by Evaluator for possibly investing in CleanAir Engine Test Team.
It is acknowledged by Evaluator that the information provided by CleanAir Engine Test Team is confidential; therefore, Evaluator agrees not to disclose it and not to disclose that any discussions or contracts with the CleanAir Engine Test Team have occurred or are intended, other than as provided for in the following paragraph.
It is acknowledged by Evaluator that information to be furnished is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by Evaluator, except as provided in this agreement, may cause serious harm or damage to CleanAir Engine Test Team, and its owners and officers. Therefore, Evaluator agrees that Evaluator will not use the information furnished for any purpose other than as stated above, and agrees that Evaluator will not either directly or indirectly by agent, employee, or representative, disclose this information, either in whole or in part, to any third party; provided, however that (a) information furnished may be disclosed only to those directors, officers and employees of Evaluator and to Evaluator ês advisors of their representatives who need such information for the purpose of evaluating any possible transaction (it being understood that those directors, officers, employees, advisors and representatives shall be informed by Evaluator of the confidential nature of such information and shall be directed by Evaluator to treat such information confidentially), and (b) any disclosure of information may be made to which CleanAir Engine Test Team consents in writing. At the close of negotiations, Evaluator will return to CleanAir Engine Test Team all records, reports, documents, and memoranda furnished and will not make or retain any copy thereof.
_________________________________ ____________
Signature Date
_________________________________
Name (typed or printed)
This is a business plan. It does not imply an offering of securities.