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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