Business Proposal

Prepared for: Ryder Aircraft Company, Inc, hereinafter ("Ryder Aircraft Company"), located at 440 Montgomery St., San Francisco, California, 94103 Prepared by: Rothschild Tire Company, hereinafter ("Rothschild Tire Company"), located at 60 Arthur St., San Rafael, California, 94901. Description: Rothschild Tire Company is seeking funding from Ryder Aircraft Company for manufacturing aircraft tires for Ryder Aircraft Company's Jetstream airplane model. The funding request, market analysis, and return of investment analysis of the project are included in this Proposal. Rothschild Tire Company is seeking the flexibility, guidance and funding of Ryder Aircraft Company for growth of business in order to benefit both the parties. Executive Summary The purpose of this proposal is to forge a strategic relationship between Rothschild Tire Company and Ryder Aircraft Company to leverage the customer base for Rothschild Tire Company's newly developed product. The Business has developed a new aircraft landing gear tire which has the following specifications and advantages over similar products in the industry: 4-ply rubber outer layer for durability ribbed inner walls for tube strength 33 psi pressure rating 11 pounds per tire $650 per tire

The Business has a window of opportunity to introduce its products and gain a significant piece of the market share. The new product/service caters to a wide range of customers and is expected to hold a market share of 13%. Project Description The project will be completed at follows: Phase 1, tire design: 6 months Phase 2, tire testing: 6 months Phase 3, tire production: 1 year

Rothschild Tire Company is planning to employ certified engineers to design and test the tires, and will employ a tire production plant in China to produce the tires.. Sales and Marketing Strategy The main target markets for the business include:

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Aviation Industry Aerospace Industry

It is estimated that there are 250 potential customers within the Business's defined trading area that are estimated to spend $2,000,000,000.00. To seek the most profitable market segments in the target markets overall, the Business will focus on the following areas within the target market: landing gear components

Financial Summary The Business is expected to generate $2,700,000.00 in the first year and gross profit is expected to be $432,000.00. Out of the gross profits 25% will be earmarked to pay back Ryder Aircraft Company loans. Ryder Aircraft Company will also get a share of profits generated every year, which shall be determined on a consensual basis. Fixed costs are limited to our office space and equipment lease at $10,000.00 per month. Variable costs include repair and maintenance, sales and marketing expenses. Regular monthly expenses are estimated at $75,000.00 for paying the employee salaries and meeting the administrative costs. Closing Section Future growth prospects are extremely positive for the new business venture. The strategic partnership between Rothschild Tire Company and Ryder Aircraft Company should ensure a 35% of increase in the total revenue from the new business.

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