Executive Summary Executive Summary The Business is about Water Purification by xiangpeng

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									                            Executive Summary


      The Business is about Water Purification; our mission is to

provide customers    with   the   finest   quality   water   filtration   units.

Purification is the process of removing undesirable chemicals, materials,

and biological contaminants from raw water. The goal is to produce water

fit for a specific purpose. Most water is purified for human consumption

but water purification may also be designed for a variety of other

purposes, including meeting the requirements of medical, pharmacology,

chemical and industrial applications. In general the methods used

include physical process such as filtration and sedimentation, biological

processes such as slow sand filters or activated sludge, chemical process

such as flocculation and chlorination and the use of electromagnetic

radiation such as ultraviolet light.



      The Water Factory is a network marketing firm that sells Water

Genie home water filtration systems. The Water Factory has chosen the

network marketing business model as a way of creating a recurring

revenue structure in a home business, the founder and owner, has done

a significant amount of research and has determined the filtered water

market is a large, quickly growing market. People are willing to pay up to

five times the cost per gallon for water than they are for gasoline. The

company is going to sell three different kinds of filter only made by Genie
Filtration system. The (1) Carafe, the pitcher shape filter, (2) Faucet

Mount, a large bulb like filter, (3) Counter Mount, a 12-inch tall filter.


         By using the network marketing business model, the owner uses

personal contacts as his target market. This is advantageous because a

bond has already been established with these prospects, making it easier

for the owner to turn prospects into leads. The Water Factory will be

targeting personal contacts as the prospective customers. Additionally,

network        marketing    creates   recurring    revenue   streams     through

commissions that the owner earns for salespeople he recruits. The owner

also receives revenue for each salesperson his sales people recruit. This

revenue stream then turns his job into a business, a way to earn money

even if he is not working. The Water Factory's competitive advantage over

regular outlets of water filtration systems is the ability to generate

revenue streams for sellers of the products. This is the virtue of the

network marketing system. With network marketing, if a buyer becomes

sellers, they can receive their products at wholesale pricing and receive a

commission for products that they sell. Additionally, if they recruit

people to help them sell, they get a commission for every sale that their

recruits make. At the same time, the owner gets a commission of his

recruits as well as his recruit's recruits. This is a relatively easy way to

create     a    recurring   revenue   stream      and   creates   a   competitive

advantage that will help gain market share.
The first month will be spent setting up the home office. There will be no

sales activity. Additionally, the owner will be ordering products to use as

samples.

      The second month will be the first month of sales. During this

month the owner will have signed people up and revenue will be slowly

picking up. It will not be until month five when revenue begins to get

strong. Month six will be the first month when the recurring revenue will

come in from the owner recruited sales people. Through the network

marketing the Water Factory will reach profitability by month 12 and will

have modest, but steady, profits by year three.

								
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