1. PHILOSOPHOUS GROUP, INC.
Company Description
PHILOSOPHOUS GROUP, INC. (referred to herein as PHILOSOPHOUS) is a newly formed Texas C
Corporation located in Lewisville, Texas. PHILOSOPHOUS was developed to provide for children
between the ages of infancy and twelve an eco-healthy environment for academic, social and physical
development services.
PHILOSOPHOUS will also provide families with a wide arMichael of support services from after school
academic, social and sporting programs to parenting classes and counseling. These services will be
offered daily during normal operating hours of 5:30a.m. - 12a.m., seven days a week.
PHILOSOPHOUS will be housed in a 34,300 sqft. two story building that will be certified as an Eco-
Healthy Child Care (EHCC) facility by the Oregon Environmental Council. (see www.ehcc.org).
PHILOSOPHOUS will include a green facility, as well as, a secured outdoor eco-friendly garden. All
children will be provided with an environment free of toxic chemicals and other pollutants. This green
environment will reduce childhood illnesses, absenteeism and childhood obesity. It will also limit parental
loss of income, due to a parent having to miss work to stay home and take care of a sick child, as well as,
medical visits and expenses.
PHILOSOPHOUS’s founders have extensive business acumen and experience within the Childcare, Non-
Profit, Financial, Technology, Government, and Real Estate sectors. Their vision is to establish a premier
eco-healthy childcare center that provides state of the art education, physical fitness, and nutrition to the
children in the Northern Metroplex of Dallas, TX.
Mission
The mission of PHILOSOPHOUS is to offer children state of the art education, within an eco-healthy
environment.
PHILOSOPHOUS’s mission is to L.E.E.D (Lead, Educate, Explore and Develop).
 Lead innovative programs that will improve the early educational, nutritional and healthcare
needs of a child
 Educate children by offering exceptional childcare resources and educators, which will ensure
future academic readiness
 Explore green way of living, by offering eco-healthy programs that will ensure a healthier future
for our children
 Develop a child’s ability to make healthy, nutritional choices, resulting in a healthier future.
Vision
Philosophous’s vision is to become the national leader in early childhood education, nutritional healthcare
and green environmental innovation.

2. Goals
Philosophous’s goals are to provide families the best available childcare services in a safe and eco-
healthy environment.
PHILOSOPHOUS will lease a 34,300 sq. ft. building that is easily accessible to the community, and turn it
into an eco-healthy family-centric center.
PHILOSOPHOUS will recruit and retain the most highly qualified educators, by offering higher
compensation programs, excellent benefits and the best resources, as well as, a safe, eco-healthy place
to work.
.
Competitors
The Top 4 competitors, within the city of Lewisville, Texas:
 Primrose Schools (4)
 Children’s Courtyard
 Children’s World Learning Centers
 Kids ‘R’ Kids
Currently, the number one competitor within a ten mile radius of PHILOSOPHOUS is Primrose School,
which is a franchisee of the Primrose School Franchising Company, with four locations in the area. Based
on PHILOSOPHOUS’s due diligence, all of the competitors listed are franchised.
Competitive Advantage
PHILOSOPHOUS feels that an eco-healthy environment will attract families and educators alike, who are
searching for a green alternative to the services offered by the local competitors
PHILOSOPHOUS Competitive Advantage
 First eco-friendly, childcare center within the Lewisville area
 School readiness
 State of the art education facility
 Family centric facility
 Customer service centric
 Competitively priced,
 Nutritious garden grown eco-healthy lunch served
 Locally owned
Strategic Management and Planning
PHILOSOPHOUS has established specific goals with respect to business, competition, marketing,
productivity, revenues, profitability, finance, and staffing, partnering and public responsibility. Strategic
planning will be conducted periodically throughout the year. The master plan calls for the monitoring of
progress against specific goals, correcting deficiencies and setting attainable goals in each of these
areas.

3. PHILOSOPHOUS will evaluate the success and effectiveness of all aspects of its strategy on an on-going
basis. Some aspects of Philosophous’s strategy, positioning, and strategic direction will change from time
to time. PHILOSOPHOUS will take a pragmatic approach to the implementation of its strategies.
Marketing
Philosophous’s marketing efforts will focus on establishing the School as the leading provider of an eco-
friendly learning environment, along with unparalleled childcare services. Honesty and integrity will be the
essential components of all marketing and sales activities. This will assist the School in becoming the
premier and trusted green, childcare provider.
The Academy’s initial marketing strategy is to establish strategic alliances with various local businesses,
libraries, schools, churches, banks, and retail stores, just to name a few, in order to gain name recognition
along with high quality information, leads and other news. The School plans to develop various marketing
materials, including a multi-facetted website, flyers/brochures, press releases, focus surveys, radio ads
and door-to-door campaigns.
An important aspect of Philosophous’s marketing campaign will be to establish its community presence as
soon as possible.
Target Audiences
PHILOSOPHOUS will be located in an office complex with approximately 3,000 employees which are
Philosophous’s primary targets. Estimates are of the 3,000 employees approximately 10% have children
within Philosophous’s target age group. This scenario provides PHILOSOPHOUS with a value advantage
over its competitor because of the ease and convenience it will provide to the employees in the complex.
In addition Philosophous’s flexible hours for those employees that will need childcare after hours.
This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, high
community visibility and exceptional quality childcare services will be critical to capture this and other
segments of the market.
In addition PHILOSOPHOUS will be targeting families throughout the Northern Metroplex of Dallas,
Texas.
Management Team
Philosophous Group, Inc.’s Board of Directors and Management Team consist of child care industry
veterans and business executives. There are ten members presently serving on the Board of
Philosophous, Inc. The Board realizes that the strength of the management team and its reputation is the
key to its success.
The management team consists of the following experts:
Steven McAllen – CEO/President. Ms. McAllen has been an entrepreneur, arbitrator/mediator,
supervisor, U.S. postal service employee, lead teacher and is an avid volunteer for various charities. Mr.
McAllen’s management experience within the U.S. Postal Service has provided him with the foundation of
managing a successful enterprise.
Nancy Brown – Director of Administration/Operations. Mrs. Brown is the Owner and
Director of Operations of Nana’s Playhouse, which is a licensed childcare learning facility, located in the
State of Texas. She has an extensive background within the childcare industry, including the legal and
licensing regulations for such organizations. Mrs. Brown has worn many hats throughout her career within

4. the childcare industry including: Director, Head Teacher, Manager of Customer Care, Marketing and
Communications, as well as, Food and Nutrition Specialist and Driver. She has served on the Texas
Head Start Health Advisory Committee. Mrs. Brown was awarded in Insert Date a stipend from
AmeriCorps Vista, in which she utilized the funds to begin her own childcare center. Since that time she
has pioneered various pilot programs including: The Buddy System, GED Program and Parents/Child
Nurturing Skill Program (PCNS). Today, Mrs. Brown runs a childcare learning center which consists of 75
to 100 children in attendance and 23 employees; and offers day, afterschool and evening programs. Her
center is the first daycare to provide such services within Brownwood Texas.
Michael Carter – Director of Development. Mr. Carter is the Founder and CEO of c2o
Solutions, LLC., a business performance consulting firm, which focuses on assisting organizations with
optimizing their value through the implementation of strategic processes. He brings his proven successes
in business development and operations, strategic initiations and overall management experience to
Philosophous Group, Inc.’s management team. Mr. Carter presently, serves as a Board Member of the
Atlanta Mutual Housing Association, a non-for-profit economic development firm.
David Pewter – School Administrator. Mr. Pewter is an independent commercial and
residential contractor, with a strong background in finance and the mortgage industries. He recently
renewed his real estate license and is utilizing his finance and mortgage expertise to assist retired
individuals with obtaining reverse mortgages. Mr. Pewter is currently, serving as a board member for A-
Philosophous, Inc. and is a key partner in the development of the School’s facility.
Financial Considerations
The School expects to raise $70,000 of its own capital, and to borrow $1.5MM generated by SBA loans,
municipality, state and federal grants, tax credits, rebates, private donors and other lending institutions.
This will provide the bulk of the financing required.
Financial Projections
Year 1 Year 2 Year 3
Income $1.0MM $1.5MM $2.2MM
Total Operating
Expenses $900,000 $600,000 $750,000
Net Profit $100,00 $900,000 $1.4MM
PHILOSOPHOUS anticipates profits of $100,000.00 in the first year, in the second year $900,000.00 and
$1,400,000.00 in the third year of the plan. Philosophous Group should break-even by the end of the third
year of its operation as it steadily increases its enrollment. The company does not anticipate any cash
flow problems.
Financial Needs and Use of Proceeds
The Company is seeking funding in the amount of $1.5 million for various start-up expenses including
legal costs, logo design, stationary, related expenses and working capital. The Company believes that it
can launch operations with an investment of $883,000.00. The following provides a breakdown of the use
of funds.

5. Expenses
Building Lease $ 200,000.00
Utilities $ 17,000.00
Legal, Acct.& Advisory
Fees $ 25,500.00
Software Licenses $ 2,500.00
Marketing and
Promotion $ 50,000.00
Technical Support $ 5,000.00
Childcare Equipment $ 71,400.00
Office & Food
Supplies $ 19,200.00
Payroll & Taxes $ 432,000.00
Maintenance $ 44,000.00
Insurance $ 4,500.00
Subscriptions $ 400.00
Fees $ 2,000.00
Travel $ 12,000.00
Network Admin. $ 2,000.00
Total $ 900,000.00
Investment Conclusions
PHILOSOPHOUS is poised to become a highly successful and regarded childcare center. The
Company has the potential to provide lucrative returns to investors due to its unique niche,
branding possibilities and profitable revenue model. For PHILOSOPHOUS to proceed, the first
step is to raise capital, which will be used for further development of the business, business
infrastructure and internal systems. The second step is for PHILOSOPHOUS to implement its
Business Plan. Finally, the third step is for the Company to launch new programs and commence
the revenue phase. Providing that all these steps are achieved in a timely manner and orderly
fashion, PHILOSOPHOUS should be able to achieve success for many years to come.