Business Plan

Myacky Sack
Address: 315 South 700 West SLC, UT
Email: Sam@myackysacks.com
Telephone #: 801-989-4661
Date:1-14-16
Kick it, zip it, flip it

Josh Dunn, Sam Gilson, Jake Williams,

Jake Fuhriman, Benjamin Bywater and
Connor Kloberdanz

Table of Contents

Executive Summary- Page 2

Management and Personnel- Page 6

Description of Our Business- Page 8

Company Analysis and Services- Page 10

Industry Overview/ Market Analysis & Competitive Analysis- Page 11

Marketing Strategy- Page 13

Facility Locations and Operations- Page 15

Exit Strategy- Page 17

Financial Plan- Page 18

Executive Summary
The Myacky Sack, incorporates the fun of a hacky sack (classic foot bag), with the skills
of the myachi sack (hand sack). A hacky sack is a classic game involving all body parts except
for the hands. Play games with friends, or play alone and try to rally by yourself.
The Myachi Original Hand Sack combines the fluid hand motions of martial arts with the
full body coordination of action sports. You can use any body part you want, except no palms are
allowed. Play alone or with friends, indoors, outside, or anywhere at all. A Myachi Hand Sack
has a very similar build as a hacky sack. Both have a bag about 2.5 inches in diameter, and both
are filled with sand. The only difference is the shape. Instead of the original hacky sack with is
round like a sphere, the Myachi sack is rectangular.

Our team consists of a diesel mechanic (Josh), a golf sales associate (Jake W.), a
landscaping genius (Sam), and a football player (Jake F.) This ragtag group of youngsters might
not seem like the perfect owners for a business, but together we make a hardworking team that
has turned our money into a working, operating and profitable business.
Encapsulating the myachi and the hacky sack was done by using our new patented FlyZip
technology where the myachi can transform into a hacky sack. This is done by folding the
myachi in half then simply zipping it up! The simplicity of the FlyZip technology makes us
different from anyone else and is how we have make our money.
Since January 2014, the myachi team has been delivering quality sacks at unbeatable
prices! Our building and factory located in Salt Lake City is perfect because of the close ties to
other states for easy shipping. Our sacks cost $7.45 to make and we sell them for $15.99. The
reason for our price to make being so high is because the Although $15.99 seems like a lot for a
bag full of sand, traditional myachi sacks cost around $8-$20 dollars and quality hacky sacks
cost anywhere from $10-$20. Plus, the fabric on the outside is durable and will last you a long
time no matter how much you use it. Essentially, the Myacky sack can save you up to a total of
$24 dollars.
Currently we are located at a warehouse in Salt Lake City. We sell online, and in large
superstores/sporting goods stores including Big 5 Sporting Goods, Sports Authority, and Target.
We currently manufacture out of our warehouse and ship our products directly from there as
well. Over the next few years we expect to expand into a much larger warehouse, as space is
limited in the one we are currently located in.
Over the past two years, we have made partnerships with shipping companies as well as
retailers across the nation. Our close ties with shipping companies have allowed us to offer free

shipping on our online orders if you spend more than $50 in our online store. We have partnered
with Target, Sports Authority, and Big 5 Sporting Goods. These retailers move their Myachi sack
inventory very quickly, so in the past year we have had to hire more employees.
When we first started this business between our first 4 partners we pooled $100,000.
After the first year we posted our first profit and have not had a net loss since. We believe our
company is worth $350,000, which is why we will be asking for $70,000 in exchange for 20%
share in our company. That way, each member who has put money into the company will have an
equal say, and no one will have full leadership over anyone. With the $70,000 we will make
manufacturing cheaper, which is currently $7.45 to make one. We plan on outsourcing the
production of our sacks to China in order to manufacturing costs, yet still be able to ship orders
from our warehouse. We expect to be under $5 to make one once we find the correct
manufacturer. Other ways we will use the money is decrese the price of our shipping. One of the
reasons our sales are not as big as we would like them to be is because we it is hard for us to get
the products outside of Salt Lake County because we do not have a truck, or truck driver. We
believe that if you invest the $70,000 you will get it back within 2-3 years and by 4 years you
will have made a remarkable profit on the business.

Management and
Personnel
Josh Dunn - Co-founder and co-owner. Josh is a high school student who currently
attends Olympus High School. Josh is on the baseball and golf team and enjoys playing any kind
of sport. Josh has experience in being an entrepreneur. He works with his father who is the
president of Metro Ready Mix. Josh also has a job in the summer where he works as a diesel
mechanic fixing concrete trucks for his dads company. Josh has put in a total of $25,000 in the
business and enjoys coming to the office after school to work. Josh oversees our online portion
of the business and is currently closing in on a deal for the company with Dicks Sporting Goods.
Jake Williams- Jake is one of the original four owners and founders of Myacky Sack. He
is young at only 17 years old, but he has quickly learned business strategies. Jake loves to golf
and is playing varsity on his high school team, and hopes to take the next step onto college. He
was the one who first came up with the idea to combine handbagging and footbagging, and when
he pitched the idea to his friends, they were all over it and started designing prototypes
immediately. He currently has a part time job as a sales associate at Uinta Golf. He has worked
in the retail business for a while and has gained lots of great experience by doing so. These skills
is what has helped him close both the deals with Sports Authority and Target. Jake has also
invested 25,000 dollars into this company as well as countless hours in order to make this
business a success.
Sam Gilson- Sam is a hard working individual who gives this business everything hes
got. As a key member in the managerial side of the business, Sam keeps order around the office
and factory, arranges meetings with potential investors/ sellers, and oversees the production and

assembly of the bags. On the side, Sam enjoys reading, running, and learning new things. Having
started a lawn care business when he was 12, Sam has always loved entrepreneurship and was a
great addition to this team.
Jake Fuhriman- Jake currently owns one fourth of Myacky Sack and has invested
$25,000 in the company. Jake used to work part time at The Cowboy Grub Restaurant as a Server
and Cashier. He uses the people skills he has learned while working to be very good at
organizing promotional events and marketing. The bulk of his time is spent planning events for
hobby shops as well as some high end toy stores. These events are fun, excite our sales base, and
introduce customers to our innovative product.
Benjamin Bywater- Benjamin was a recent addition to the Myacky Sack team. He was
hired to increase productivity by assembling the bags. He also mainly deals with the shipping of
the bags, and the intakes of materials. Benjamin has been one of the hardest working people at
the company. Benjamin loves to play football and has received several division one scholarship
offers. The traits Benjamin has learned playing football have directly translated into being a key
role player for this company.
Connor Kloberdanz- Connor is currently a grateful employee of the Myacky Sack
Corporation and has always had a passion for money as well as employment. Connor one day
hopes to become a manager of the Myacky Sack Corporation. Connor started out cooking
waffles at Saturdays Waffles and uses his experience in customer service to help customers find
just what they need. Connor spends the majority of his time dealing with customers and dealing
with customer mail.

Description of Our
Business
Myacky Sacks is a partnership owned company with four owners. We started our
company in the summer of 2014 and have been in full operation ever since. We started this
business because we felt there needed to be a way to unite handbagging and footbagging, both of
which are passions of ours, without compromising performance. We saw this need in the world
and decided we could try and fix this ourselves. We made prototype after prototype but could
not quite get the product just right. We kept trying and trying when finally we felt we had made
a quality and durable bag to satisfy both needs without having to own to separate bags. With our
skills combined, we felt we could start a company to produce our bags and make them a huge
success. Thus, Myacky Sacks were born. Between the four owners, we have invested a total of
one hundred thousand dollars into this company. As you can see we are fully committed to the
success of our company. We have been operating from our office located in Salt Lake City,
Utah. Together we have been using each of our specific skill sets to expand our business and
reach our full potential, which we believe to be much higher than the level that we are at
currently. We are seeking investors to propel us to new heights so we can continue to grow.
Myacky Sacks is already in a few retail stores in Utah such as, Sports Authority, Target, and Big
5 Sporting Goods. We also are selling our sacks online on our website. It costs $7.45 to produce
each Myacky Sack. We sell these premium sacks at $15.99 per sack. This may seem a bit pricy

but when you consider both footbags and handbags sell for around 10-20 dollars each, which
means if a consumer were to buy both you would spend 20-40 dollars, buying just the Myacky
Sack saves at least four dollars. We are also seeking investors to figure out how to lower the cost
to produce our Myacky Sacks. Even though we do make eight dollars and fifty-four cents per
sack, we would like to raise that profit. As you can see our business is profitable, based on the
fact that we have not received a net loss since our first few months in operation, but we are
nowhere near the level we could be at. If Myacky Sacks indeed does succeed, we would then try
and broaden our horizons by coming up with new products for our consumers to enjoy, but we
would not take that large step until we feel we have a comfortable footing inside the marketshare
of the footbag world. After we have established our company, the possibilities for our business
our endless. We see ourselves being a powerhouse in the toy industry. However, we cannot
make that leap until our current product has become a huge hit, and that cannot happen without
the funding of investors. We envision Myacky Sacks to be the next big hit for future generations.
As you can see based on the fact that we have invested a large amount of our own money into
this company, and how most of us have already quit our previous jobs to focus on the Myacky
Sack, we are 100% committed to the success of this company. We seek investors that share our
same values to launch Myacky Sacks to greater heights than we have ever imagined.

Company Analysis and

Services
Myacky Sack started in January of 2014, but before we could begin selling our idea we
had to perfect it. After almost four months of brainstorming and testing prototypes we finally
came up with the perfect solution. Our FlyZip technology changed the game. It managed to

combine the Myachi hand bag with the hacky sack in simple and concise way. The Myacky
Sack team currently consists of four young partners who are working together to make Myacky
the next great thing in the hand and footbagging worlds. We started out with only $100,000 and
have grown each year. We have not had a net loss within our first two years of business and if
sales continue to rise at the rate they are we wont ever lose money. We are currently selling
our product online and in Utah retail stores including Sports Authority, Target, and Big 5
Sporting Goods at $15.99 per sack.
Our product applies to those who enjoy footbagging and handbagging. Individuals who
enjoy one of these games will almost definitely like the other one. Our product combines both
these games into one single toy. Using our FlyZip technology we have made our product very
easy to use without taking away from the experience or fun of either game. Not only do our
customers get a two for one deal, they receive both a Myachi hand bag and a hacky sack for
much less than it would cost to purchase both.

Industry Overview/ Market

Analysis & Competitive
Analysis
Today our our Myacky sacks are limited to sporting goods stores such as Sports
Authority, Big 5 Sporting Goods, and Target. In the near future, we expect to be in most
superstores around the Salt Lake County and into Davis County. We are currently trying to close
a deal with Dicks Sporting Goods to get our product into four of their stores around the Salt

Lake area including the stores in Gateway and Fort Union. Our current competitors would be
any brand of footbag as well as any brand of handbag. Their strengths are that they have already
got a strong hold in the market share as of now, but we are slowly cutting into their numbers. An
advantage we have over them is our new FlyZip technology which allows us to change from a
handbag to a footbag with one easy zip, without sacrificing the look, performance, and feel of a
regular hand or footbag. We already have received a patent on our FlyZip technology meaning
these other large companies cannot copy our zipper allowing the switch between bags. This
prevents them from stealing some of our sales. The market is strong for our product. Kids these
days are looking for ways to get out and exercise without having to put in a ton of effort. Our
product can virtually be used anywhere. It also is found to improve hand-eye coordination, not
to mention the consumer will enjoy it. We have found that the 65% of our customers have
bought the Myacky sack in Target and Sports Authority. With the other 35% coming from either
Big 5 Sporting Goods (10.5%) or online. (24.5%)
Geographically, our target area encompasses Millcreek, Holladay, Murray and Sandy.
Realistically, the majority of our customers originate within a 25-mile radius of our location. We
are looking ahead to possible future expansion throughout the entire Salt Lake County and into
Davis and Utah County throughout the next three years.
The Salt Lake County is expected to grow 8% over the next three years. Our primary
customers range from age 6-17. Within the next three years, more kids for the Salt Lake County
means more primary customers for us. We expect our sales to increase about 15% over the next
five years because of our expansion to Davis and Utah County, as well as a gain in the
population around our main locations.

All of our sales and marketing efforts are tracked, which aids us in refining our Target
Customer profile and focusing our marketing efforts on the strongest and most profitable
markets.

Marketing Strategy
In order to increase sales of our Myacky Sacks, we have been vigorously advertising our
product and showing how great of a product it truly is and why it is the future of recreational
footbagging and handbagging. We have been running advertisements both in the retail stores
which our product is sold, and also on the Internet of sites related to our product. We have also
made social media accounts in order to increase the hype and to spread the word. Our target
consumer is the child to the young adult, and they often have social media accounts. Weve
made accounts for our product on both Twitter and Instagram where we show people our product
and occasionally run promotions where you can win a free Myacky Sack by reposting our
account. We hope this stimulates the interest of consumers and invites them to visit our website
and learn more about our product and hopefully lead them to purchasing our product and
spreading the word to friends and family. We have also ran a few of what we call Demo Days,
where we go to a retail store, such as Sports Authority, and set up a booth near the entrance. This
intrigues people and when they come over we show and explain how our product works. It helps
get the word out to people and helps them understand our product. On the few occasions when
we have done one of these days, we have noticed a substantial increase in sales for the day, so
they have been worthwhile.

From January 26, through January 31, we will be running a promotional both online and
in stores where we will be selling our quality bags for $11.99, a four dollar discount, plus we will
be giving free shipping on our website. Even though we will not make as big of a profit per bag
sold, it might encourage consumers to purchase two bags in order to get free shipping for their
item purchased. We also hope this will increase the quantity of bags sold. This helps get our
name out because, one person buys a bag and loves it, so he or she tells his/her friends about
Myacky Sacks and they also purchase our a sack for themselves.
Our product is called the Myacky Sack, and it derives from the popular footbags and
handbags. With our patented FlyZip technology, we were able to encompass both the fun and
challenge of a hacky sack and a myachi in one convenient bag by being able to zip between the
myachi and hacky sack! This is fun for all ages! Our product sells for $15.99 per bag. This is
because we use the finest refined sand as a filler in our bags, and quality textiles as covers to
prevent tears and rips in the Myacky sack. Plus when you consider that an average footbag or
handbag costs around ten dollars, our two-in-one bag would save money. We have been
promoting our products by both running advertising in stores, and online. While this has costed
our company a considerable sum to run our ads, we feel that it will pay off tenfold in the very
near future. We operate our business in Salt Lake City, where we manage our funds and take
care of the financial portion of our business, and also where we produce our product and ship it
from. As we expand our business, we might also need to upgrade to a bigger space in the future
and with an investment that would help our expansion greatly.

Facility Locations and

Operations
Myacky Sacks is a company that we founded in 2014 and we have been operating from
Salt Lake City ever since. We started out in our homes, operating strictly from our website and
doing everything we could to try and spread the word of our company. This included word of
mouth and also social media sites, which are essentially free advertisements, to inform people of
our product. This worked quite well for us and we started to see and increase of orders. At this
time we decided it would be best to reach out to stores such as Sports Authority, Target, and Big
5 Sporting Goods to try and get our product in their locations. We started off by only getting a
few of our products in each store, but quickly after they sold out. So the stores ordered more. At
this point, we decided we could no longer keep up with the orders while still producing our
product in a garage, so we decided to look for a bigger space. We found a modest space, just
over 2,000 square foot warehouse, but it was perfect for us. The rent was only $400 dollars a
month and we felt that was a great deal for us, and that we could continue to afford that space
until we grew out of it, which we hope is soon. Plus there was no long term contract just in case
the business did fail. We hired other employees to help with the increase in orders. The larger
space allowed us to be able to produce our bags more efficiently because of the assembly line
technique. This is also where we send off shipments of our product. We also still had enough
space to put a small office in the building so we could properly manage incoming phone calls,
finances, payroll, and receive orders from online. We felt being located in Salt Lake was perfect
for us because it allows us to ship all over Utah for now and if we do make it big, Utah is very
close to the West Coast and not too far from the East Coast which allows us to keep our shipping

times down. We have plans of expanding in the new future, but for now, our small warehouse is
just what we need.

Exit Strategy
We will continue to run the business for 5-10 years. Depending on how good the company is
doing, we will most likely file for an IPO. Having a business on the stock market has always
been a dream for all four of us. The reasons this can be an advantage is the public awareness the
company receives, and financial benefit in the form of raised capital. The disadvantages that
arise are the strict rules and guidelines a company must follow in terms of financial recording
that are monitored by the Securities and Exchange Commission. Other disadvantages include
partial loss of ownership from the other shareholders, and public scrutiny. So unless the company
does really well publically in the first few months on the market, we will probably just cash out
our large shares and call it good.
Another strategy were considering is selling the business right back to Myachi. Having
our dual bags would open up a huge market for them and increase their revenue stream

significantly. Cashing out right from another business purchasing us would be a good way to
exit.

Financial Plan
Myacky Sack
Income Statement
Year ended, December 31, 2015

Revenues
Net Sales Revenue

191,880.00

Expenses
Cost of goods sold

89400

Salaries

24000

Lease

7440

Utilities

2400

Insurance

1200

Legal

1200

Gen Maintenance/Supplies

6000

Shipping

2640

Marketing & Promotion

1440

Web hosting

240

Big Commerce Subscription

960

Total Expense

(136,920.00)

Net Income

54,960.00
Myacky Sack
Balance Sheet
12/31/2015
ASSETS

Current Assets:
Cash

4,950.00

Accounts receivable

15,990.00

Supplies

1,000.00

Inventory

22,350.00

TOTAL ASSETS

44,290.00
LIABILITIES

Current Liabilities
Accounts payable

7,450.00

Utilities payable

200.00

TOTAL LIABILITIES

7,650.00
OWNERS EQUITY

Capital

36,640.00

TOTAL LIABILITIES AND OWNER'S EQUITY

44,290.00

Myacky Sack
Statement of Cash Flows
Year ended, December 31, 2015
Cash Flows from Operating Activities
Net Income

5,960.00

Adjustments
Increase in accounts receivable

(1,000.00)

Decrease in inventory

3,725.00

Increase in Accounts Payable

3,725.00

Total Adjustments

6,450.00

Net Cash Provided by Operating Activities

12,410.00
Net Change in Cash

12,410.00

Cash Balance

12,410.00