Traminer is seeking $675,000 in equity funding for which Traminer will give 25% of company ownership.

1. -``
Business Plan
“Art from the heart of the wine country that will be
treasured for generations to come “
Edward Charlson
Contact Person: Edward Charlson – Founder/CEO
Address: 4490 Silverton Road, Salem, Oregon 97305
Telephone: (503) 881-0477
Email: traminerart@yahoo.com

2. Table of Contents
I. Executive Summary………………………………………………………………………….. 1
Highlights
Objectives
Mission Statement
Keys to Success
II. Description of Business…………………………………………………………………….. 3
Company Ownership/Legal Entity
Location
Products and Services
Management
Financial Management
Start-Up/Acquisition Summary
III. Marketing………………………………………………………………………………………… 9
Market Analysis
Market Segmentation
Marketing Strategy
Strategy and Implementation
Industry Synopsis
Competitive Analysis
Pricing Strategy
Sales Strategy and Implementation
IV. Appendix…………………………………………………………………………………………. 18
Startup Expenses
Startup Capital
Annual Sales
Annual Payroll
Annual Profit & Loss
Break-Even Analysis
Annual Balance Sheet
Sales
Payroll
Profit & Loss
Balance Sheet

3. Executive Summary
This business plan has been prepared to introduce Traminer: Art of Wine, LLC
(hereinafter also called the Company or the Business) and share a comprehensive
understanding of its business operations, growth strategy and financial objectives
necessary to achieve its objectives.
Traminer: Art of Wine, LLC will produce a series of "Collections" of quality wine fine
art prints and winery bronzes to market to affluent wine enthusiasts and wine
collectors worldwide at the retail level. A variety of marketing techniques will be
applied to leverage the excellent market potential of wine enthusiasts in an
environment that offers limited competition. With over 30 years working in the wine
industries of California and Oregon I have now used the knowledge I have gained
and commissioned internationally acclaimed fine artists to visually create the
nuances of wine and the wine lifestyle through fine art bronzes and fine art prints. I
have spent over $215,000 of my money to help launch this company and am now
seeking investors to reach my funding goal.
There is a largely untapped market niche for collectible, gallery-quality fine art that
is related to wine and the wine lifestyle; most notably winery bronzes which depict
top estate and artisan wineries heretofore not produced by any artist anywhere. The
fine art prints will feature depictions of wine and the wine lifestyle from various
perspectives. Traminer forecasts a recurring market for the targeted affluent
customers. There are hundreds of domestic and international wineries to select from
for bronze production. Having the “insider’s eye” and expansive knowledge about
the wine industry I can continue to continue to generate numerous design ideas for
art collections to produce that will bring new customers and allow Traminer to thrive
for years to come through the cultivation of new customers as well as repeat sales.
The combination of unique, collectible fine art products provided at competitive
prices makes the company unique to this market.
Objectives
Traminer: Art of Wine, LLC has three primary goals. The first two relate to the
establishment of a market presence at the outset, while the third is a recurring
objective.
1. Market the company website for retail sales at the national and international level.

4. 2. Establish broad consumer awareness of both product and company through
additional traditional and new media marketing techniques.
3. Maintain Gross Profit Margins of 77% to 93%.
Mission Statement
Traminer: Art Of Wine, LLC is dedicated to offering the retail market the most
innovative, trend-setting, wine-inspired, art gallery-quality fine art pieces. To this
end, the company takes pride in the following characteristics:
1. The highest quality craftsmanship and an ongoing commitment to product
excellence.
2. Dedication to constantly strive to exceed industry-standard turnaround time lines.
3. Customer service that affluent buyers expect.
Keys to Success
Wealthy, affluent customers are driving success in many businesses; most notably
leisure industries that rely on this niche’s large disposable incomes to create
generous profits for enterprises that serve their needs and desires.
Affluent customers distinguish themselves from their non-affluent companion
demographics in a variety of ways. They seek exclusivity. They are drawn to
unique, highly-personalized “one-of-a-kind” products and services that amplify their
perceived standing. They seek convenience, value their time; are willing to pay a
premium for quality, exclusivity and superior customer service. Affluent buyers are
drawn to products that reinforce their high self esteem and superior self expressive
characteristics.
The demand for high quality artwork is very strong in a large share of the affluent
market: 42% of these consumers report that they are likely to make an art purchase
in the upcoming year. Additionally, industry analysts predicted a 5-6% growth in
custom print sales in 2011 (the most recent study of affluent art buyers available).
Traminer: Art Of Wine, LLC is confident that it can quickly and successfully establish
itself in this market. Financial projections are positive, and the company expects to
generate close to $30 million in income with a gross margin of 69% during the first
three years of operation due to the following characteristics:
1. Quality Craftsmanship - Because art is aesthetic in nature, the finished product
must be of impeccable quality.

5. 2. Innovation and Creativity - Custom artwork implies uniqueness, and the customer
expects a one-of-a-kind product individually tailored to his preferences.
3. Embracing Technology - The computer has become an essential time-saver for all
businesses, including art and framing, and computerized equipment is fast
becoming a necessity for the modern art dealer.
Description of Business
Traminer: Art of Wine, LLC is a Start Up, Internet-based business which will initially
create and sell Top Winery bronzes of the United States, limited edition giclées, (fine
art prints), artist remarque’s (engraved plates), photographic prints and posters.
During our three year plan, we will begin expanding our offering to include the same
products devoted to the distinguished wineries of Italy and France. Traminer will
market these unique products to high-income wine collectors and enthusiasts
worldwide at the retail level. Traminer forecasts a continued market; especially for
the winery bronzes as they are a unique product and have never been produced by
any artist anywhere in the world.
With 30 years of diversified experience in the wine industry, Edward Charlson,
company President and CEO, has a unique “insider's view” of the industry;
empowering him to connect with wine enthusiasts and the affluent. His distinctive
insight gives Traminer an exclusive edge as to what types of art will connect with
wine enthusiasts and collectors worldwide and what will sell. To this end, an
assortment of proven marketing techniques will be leveraged to take advantage of
the excellent market potential that is represented from affluent wine enthusiasts in
the face of limited competition.
Company Ownership
Traminer: Art of Wine, LLC is a Limited Liability Company, chartered within the state
of Oregon, United States.
Traminer is seeking $675,000 in equity funding for which Traminer will give 25% of
company ownership.
Upon successful completion of this investor funding, the ownership structure will be
as follows:
Shareholder Percentage of Ownership
Edward Charlson 75%
Additional Investors 25%

6. Location
Traminer: Art of Wine, LLC is a Start- Up, web-based business. The company
business office is located at 4490 Silverton Road, Salem, Oregon 97305.
Products & Services
Product Description
Traminer: Art of Wine, LLC will create and sell winery bronzes and wine art prints will
be released as a "Series Collection" to encourage purchases of the entire set. This
type of offering will make the entire set a much more valuable collection for any art
collector. In order to grow the series (12) new prints, along with (12) winery bronzes
will be added in the first year and each following year. the number will stay at (12).
Product line will be sold via the website. Initial art collections are as follows:
Winery Sculpture Collections
The winery sculptures will feature the top 36 wineries in the United States and will be
released as follows: Initial Collections (Napa/Sonoma) will take approximately 4
years to complete.
NAPA ESTATE COLLECTION: (12) of the premier estate and artisan wineries of
the Napa Valley.
SONOMA COLLECTION: (12) of the premier artisan and estate wineries of the
Sonoma Valley.
PACIFIC NORTHWEST COLLECTION: (12) of the premier artisan and estate
wineries in Oregon and Washington.
The bronzes will be released as follows:
ARTIST RESERVE- Edition size: 195 pieces
Retail price: $3,995 to $6,995
Size: various
ARTIST RESERVE PROOFS- Edition size: 25 pieces
ARTIST SILVER EDITION- Edition size: 10 pieces
Size: various
Retail price: $38,000 / $48,000
Artist fee: 10%

7. Complete with a signed and numbered Certificate of Authenticity.The Artist Reserve
bronzes will be mounted on a walnut wood base with a brass plaque denoting winery
name and number of the edition.
Future expansions to the chateaus of France, along with the wineries from other wine
regions, such as Australia, New Zealand and Italy are anticipated.
Wine Art Prints
The initial wine art print collections scheduled will be released as a Four Print
Collection and are as follows:
1) Table for Four- "A humorous look at wine and food pairings"
2) Lifestyles in Wine- "A playfully tongue in cheek look at the wine lifestyle"
3) Surrealistic Wine- "A look into wine through different eyes"
4) The Photographers Glass- "A photographic visualization of wine"
5) Winery Estate Art- "It's all in the name"
6) Masters of Wine- "It Ages well"
7) Winery Crew- “A playful look at the team that makes a winery a success”
8) Tasting Room- “ A look at the “characters” one can find in a tasting room”.
Initial artists:
Artist: Schim Schimmel www.schimschimmel.com
Artist: Jim Warren www.jimwarren.com
Artist: Jeremy Miranda www.jeremymiranda.com
Artist: Darrel Gulin www.gulinphoto.com
Some background and accolades on our initial artists.
Schim Schimmel
In 1991 Schimmel’s artwork was shown at the Tokyo Art expo in Japan. His work was immediately embraced by
the Japanese, and a year later he was asked by Shogakukan, one of the largest book publisher’s in Japan, to
write a children’s book using his artwork. Since then, Schimmel has produced six more books. And has traveled
to Japan over 50 times, attending hundreds of art shows in dozens of cities throughout the four main islands of
the country. Schimmel continues to attend art exhibitions every year with Japan’s number one fine-art company,
Art Vivant.

8. Jim Warren
“I had the pleasure of meeting Jim backstage at a Beach Boys concert at the Mandalay Bay in Las Vegas. His gentle
and unassuming manner belies the amazing talent he possesses. When Jim asked if I would care to write a few words
about his art for his new book, I indeed was honored and at the same time humbled by the prospect of such a task.”
Mike Love
Lead singer of The Beach Boys
“Many of life’s treasures come as a result of another’s contribution to one’s life. One of those life’s treasures comes to our
home as a result of the work of our friend, Mr. Jim Warren. It’s as if God be-gifted us.”
Pat Morita
Actor & star of The Karate Kid
“One of the best.”
The L.A. Times
Newspaper
“Jim is the greatest of the new millennium. His work carries on (in a most beautiful way) the torch for Dali, Norman
Rockwell and Maxwell Parrish. I love this man’s work.”
Chaka Khan
Singer
“Jim’s art really communicates. The word ‘under-achiever’ isn’t even in his vocabulary.”
Nancy Cartwright
Actress & the voice of Bart Simpson
“He truly is a great artist.”
NBC News
Television Show
Shray
Shray’s bronze entitled “Raising tomorrows Olympic Champions”. Shray’s bronze was one of eight USA
entrants to reach the finals and one of two Americans to receive the distinction of “Excellence Works” and
gifted it to Professor Yuan, Chairman of the 2008 Beijing Olympic Landscape Competition for the Yunnan
Government. Shray beat out over 2,300 other artists for this prestigious top prize.
Darrel Gulin
Darrel is one of Canon’s Explorers of Light Photographers. He is past President of the North American Nature
photography association (NANPA). He has been their keynote speaker and has led many workshops and programs
at their Annual Summits. His photography has been published in Outdoor photography, Newsweek, National
Geographic, Audubon, National wildlife, Sunset, Birder’s World, Nature Conservancy, Popular Photography and
many more. He has been showcased in almost every major nature calendar including, Audubon, Inner Reflection,
Sierra Club, Kodak, Browntrout, Nature conservancy, Greenpeace, World Wildlife Fund and Day Dreams.

9. These prints will be released as follows:
CELLAR EDITION
Edition size: 195 sn
Size: 24” x 30” overall
Retail price: unframed: $695 to $2,895
These prints will be reproduced on museum quality Acid free paper and canvas.
ARTIST PROOFS
Edition size: 25 signed / numbered
Size: 24” x 30”
Retail price: unframed $895 to $3,895
These prints will be reproduced with archival inks on some of the highest quality,
archival paper hand selected by individual artist to ensure a color reproduction of
lasting quality and will be individually pencil signed and numbered by the artist.
ARTIST REMARQUE SERIES
Edition size: To be determined
Retail price: $2,695 to $3,895
These prints will be individually hand embellished by the artist.
Management Team
Edward Charlson
CEO/President, has over 30 years of diversified experience in the wine industries of
California and Oregon. He is responsible for the oversight of daily operations,
business development and management of Traminer: Art of Wine, LLC.
I began my wine industry experience in 1978 where I worked at The Wine Lab as an
experimental research enologist. I led research on the effects various yeast strains
had on a similar grape varietal. I have worked at 3 artisan wineries in both
Californai and Oregon where I learned all facets of winemaking where I was
employed as cellar master and cellar rat. I managed 2 wine shops where I focused

10. on customer service and education. At one of the wine shops I worked at as buyer
and manager I took the smallest of 7 stores and sold within 2% of the #2 store
which had a customer base of around two times mine. In wholesale I took a whole
area in Central Oregon and opened up 42 accounts within the first 3 months of
operations. I also owned and operated a restaurant wine consulting business in the
San Francisco Bay Area. I had 8 restaurants where I helped upgrade the wine lists.
Held staff wine education classes monthly where I tasted and educated the staff of
which foods paired with what wines. Sales at these restaurants increased an average
of 32% withing first three months.
David Gortner
CAO - Has a BS in Business Administration from Northwestern University and post-
graduate MB study at Northwestern and the University of Southern California. He
established the company, DDR in 1981 that successfully sold computer hardware and
software to 30 airlines around the world. These allowed airline data centers around
the world to control all their large IBM mainframe computers from one management
console. David will be responsible for business planning and operations.
John Patacolli
CVO - Owner/Winemaker at Redhawk Winery. Graduated from Harvard School of
Business. He will handle an advisory role in business decisions and operations.
Patrick Maguire
Consultant
Director, Art Angel Foundation. Newport Fine Arts.
Financial Management
The information below lists the initial start-up expenses, assets, working capital, and
total funding requirements in order to launch the business. The initial inventory is
outlined in “Start-up Inventory” document that accompanies this business plan.
Inventory will mostly be kept at each individual artist's place, with the exception of
the bronzes will be secured from the supplier as needed and shipped by Traminer:
Art Of Wine, LLC.
The $215,000 for R&D listed in the Start-up Requirements section below is the
owner's contribution has already been spent.

11. Start-up Requirements Start-up Expenses
Legal $2,500
Stationery, etc. $650
Insurance $3,400
Rent $5,700
Website Design $7,000
Computer (& Software) $1,800
R&D $215,000
Other $21,500
Note * - Website Design expenses only encompass initial development. As inventory
changes, periodic modifications/additions/subtractions will be necessary
Total Start-up Expenses $257,550
Below is an accounting of money spent by Edward Charlson over the past 3.5 years
which was devoted to R&D of the viability of Traminer: Art of Wine.
 Public Relations $25,000
 Art (original - 5) $60,000
 Photography (brochure) $ 4,000
 Design (brochure & poster) $ 3,675
 Travel Trailer $14,000
 Vehicle travel expenses $22,650
 Printing (art poster & brochure) $30,700
 Mailing (brochure) $ 2,100
 (Salary draw) $45,000
 Entertain $ 4,900
 Misc. $ 2,975
Total R&D Expenses $215,000
Start-up Assets
Cash on-hand $356,450
Start-up Inventory $0
Long-term Assets $0
Total Assets $356,450
Total Start-up Requirements $856,450

12. SWOT Analysis
Strengths
 Proven track record in art sales/marketing and marketing to the affluent
 Experienced management and administrative staff in place
 Niche market with limited competition
 Unique product that has strong affluent market appeal and price structure.
Weaknesses
 Limited budget to market the company to the targeted marketing segment.
 The possible limited capacity to meet demand due to the small size of the
company
Opportunities
 Growing market that, to some degree, is unaware of our products
 Opportunity to expand geographically
 Limited competition
Threats
 Long term growth opportunities that could be tied to future slow economies
 As Traminer: Art of Wine successfully leverages this niche, it could be threatened
by new competitors.
Marketing and Sales Strategy
Traminer: Art of Wine’s mission is to create products that impart the art of wine
through production of quality winery bronzes and limited edition giclees. Traminer:
Art of Wine is founded on the concept that exceptionally produced fine art products
will become highly collectible possessions of the affluent, discriminating wine
enthusiast. The art will be created by some of the nation's best artists and reflect
wine - and the wine lifestyle – in a variety of unique and appealing perspectives.

13. A great deal of time, research and planning has been devoted to analyzing the
affluent art buyer, the creation of marketing, sales and service strategies; then
testing and codifying profitable price points that appeal to this affluent buying
segment, and its large discretionary income.
Market Analysis
Key Target Audience - Affluent readers of Wine Enthusiast and Wine Spectator
The Luxury survey, conducted online, consists of a national sample of wealthy American consumers with an average income of $293,000 and an average
net worth of $2.9 million.
Approximately 2.5M to 3.05 million affluent readers read Wine Spectator magazine
(traditional and online) and 754,000 read Wine Enthusiast. They are well educated
and super achievers: 83% have some college, 57% have a degree, and 26% have
graduate study, 61% are professionals and managers and 28% are senior managers,
62% are married.
They are exceptionally affluent: 81% boast a household income of $100,000+, 28%
carry an income of $200,000 + and a median net worth of $448,566 to over
$500,000 +.
Approximately 800,000 affluent buyers read Wine Spectator magazine. Its website
has a verified hit rate of a 3.5 million monthly views. The visitor median salary is
$448,566, 83% have a college degree; 77% are list themselves as either executive,
senior management or professional. The demographics’ median age range is 40 to
45 years.
Key Demographic Information for Unframed Art:
Broad market research strongly indicates that affluent consumers aged 35-54 are
significantly more likely to make multiple purchases. Younger buyers, aged 18-24,
are more likely to make singular purchases. Older consumers, (55+) typically spend
20% less than their younger counterparts.
Buyers in metro urban and suburban areas spend more than those in rural areas,
with a median price of $35; as opposed to $20 in the rural demographic. College
graduates spend an average of $83 per piece, as opposed to $31 spent by their non-

14. college graduate counterparts. Buyers in the $50,000+ income bracket spend 20%
more on average.
Market Segmentation
Target Market Segment Strategy and Testing
Because a majority of Traminer: Art Of Wine, LLC's income is generated by bronzes,
the initial target market segment will be the Internet and Wine Trade and Lifestyle
publications consumer.
Within the broad category of Internet, Wine Trade and Lifestyle publication
consumers, there are additional noticeable distinctions that can be made: such as
gender, age, education, income, and others. Homeowners are a logical focus for
three reasons: they typically earn more than their counterparts, on average they
have more wall space to decorate, and are more likely to remodel their current
home.
These prosperous buyers are inspired to purchase new artwork. A growing number of
affluent homeowners are also building wine cellars, at a cost of thousands of
additional dollars. Due to their generous disposable incomes, many affluent
consumers have a strong wish to accentuate their new wine cellars with
complimentary art work and bronze pieces.
Market Testing
While researching the viability of this wine-related business, a number of questions
needed to be answered:
1. Was there a market for this type of business?
2. What type of product would attract the most customer interest?
3. If there was a market, was it large enough to sustain a profitable business?
4. What pricing structure would prove most profitable?
A promotional wine art print was created that featured the Oregon Pinot Noir to test
these questions. A surrealistic art piece was also created to address the question of
which stylistic approach to take. Artist Judith Sparks was commissioned to produce a
poster of Oregon Pinot Noir.
500 posters were then reproduced. Over a four month period all of these posters
were hand sold by Edward Charlson to customers. This helped identify valuable
information on the art styles collectors would be willing to purchase.

15. Also, a sculpture prototype in this collection was produced of the Far Niente winery.
It was then reproduced in Alabaster. But consultations with Fine Art experts revealed
that a fine art bronze sculpture would produce higher quality art prints and
significantly increase the art offering’s value and collectibility.
The above market information was incorporated into creating the collections
Traminer: Art of Wine, LLC would offer.
Plans to expand this art venture were discussed with various art critics who
suggested the need for a more professional quality artist to be retained in order to
more greatly appeal to an art savvy clientele at the national level. As a result, a
second, more professional print of the same art piece was created by nationally
known artist Michael Cacy, and published in limited edition format: 600
signed/numbered prints.
To further explore this art venture, extensive travel was conducted through the wine
regions of California, Oregon and Washington, lining up premium boutique and
artisan wineries to be part of the initial catalog that will be used to market the art.
A small ad (2 inches x 3 inches) was placed by Tri-Ad Advertising in the nationally
distributed wine magazine Wine Enthusiast, to gauge market response. It ran for
one month over 400 phone calls were received from affluent clients who requested a
catalog.
From this mailing, 89 orders (22.5%) were received for the limited edition prints.
Telephone follow up contacts were made to over 100 of the non-responders to
confirm receipt of the catalog, and to ask respondents’ reasons for not purchasing.
From the majority of their responses, 52 mentioned price of the print ($895) as the
major factor in their decision not to purchase. As a follow up question, they were
asked what would be an attractive price. The majority of those responses generally
fell into $250 - $350 range for the posters and $495 - $595 and limited edition
giclées.
Prior to this marketing study, I was also considering the incorporation of wine retail
sales in conjunction with the art sales endeavor. But this marketing study clearly
indicated that I should focus exclusively on wine-related art sales due to the buying
power of much larger retail wine distributors whose pricing was much lower than my
projected models, and a variety of other factors to which I had very limited control.

16. Conclusions reached after these two market research projects:
1. There was a strong market for wine art.
2. A finer quality art would be needed.
3. Prices would need to drop to between $495 and $695 for the regular edition and
$1,895 for the premium edition. Poster reproductions would need to be priced at
$49 - $149 in order to maximize profits.
After concluding that this entrepreneurial venture could be successful, travel
arrangements were made to search the Northwest in order to visit a generous
sampling of art galleries and winery gift shops and to begin building relationships
with potential artists who could create the collections envisioned for Traminer: Art of
Wine, LLC. As a result, an exclusive list of highly respected artists has been selected
from across the United States that fits the vision of Traminer.
Traminer: Art of Wine, LLC is positioned to reach a segment of affluent consumers
who are likely to purchase collectible art in the price range of $495 to $1,895 for
original art prints and $7,895 to $10,895 for collectible bronzes.
Marketing Strategy and Implementation
Marketing, Sales & Implementation Strategy
The primary focus for Traminer: Art of Wine, LLC is to clearly differentiate itself in
the marketplace by creating a unique series of products that appeal to affluent
buyers who are also wine fanciers. This can be accomplished through Internet and
print advertising, and by striving to build a positive reputation, particularly with
regard to art gallery quality fine art, fast shipping turnarounds and helpful customer
service that meets the stringent requirements of our targeted demographic.
Traminer: Art of Wine, LLC will be successful because it creates and markets highest
quality fine art and t and offering it to the knowledgeable, selective affluent
customers who - as in the wines they choose - seek only the finest and rarest
products that display elegance qnd finesse. Our products will be created to increase
in value with time. Many of them could ultimately approach investment grade. We
anticipate operating costs to remain relatively constant during the initial three to five
years of operations and remain constant with projected revenues.
The marketing strategy for Traminer: Art of Wine, LLC hinges on two primary areas:
Packaging and Promotion/Advertising.

17. Packaging
The primary packaging effort by Traminer: Art of Wine, LLC will concentrate on how
best to introduce and leverage the company's new products. Methods to accomplish
this include (but may not be limited to):
 Web Site and social media development and enhancement which includes:
1. Search Engine Keywords (and key phrases) to drive prospective customers to
our website. On-site marketing to include: keyword research, analysis, SEO,
and opt-in box, embrace automation tools such as landing pages, email auto
responders, shopping carts, customer management software.
2. Targeted web linking to participating wineries, Social Media sites such as
Linkedin and Cruvee (the latter of which focuses solely on the wine industry).
Cruvee’s data is syndicated to 76 partners with a total audience of more than
2.2 million customers and connects with all of the popular social media sites
connecting with sites such as Twitter, FaceBook, Instagram, etc. The Cruvee
platform also monitors over 77 wine-specific presences, 110,000 blogs and
more than 50,000 forums.
3. Establish our own unique Facebook page, Twitter, Instagram and Google
accounts.
4. Media Promotions through viral email blasts to focused audiences.
 Traditional magazine advertising in wine industry and lifestyle publications.
 Wine label promotions.
In November 2007, eMarketer published a report titled "Affluent Internet Users: How
the Rich Live Online." In the report they concluded that the number of affluent
Internet users will grow from 43.7 million in 2006 to 57.1 million in 2011.
 Affluent Consumers and How They Use the Internet, Social Media and Mobile
Devices
Pam Danziger, president of Unity Marketing, shares the key insights from
the Affluent Consumers and How They Use the Internet, Social Media and
Mobile Devices report
As the luxury industry changes and consumers further engage the digital revolution,
today’s brand marketers may never see his or his best customer. Instead, many
affluent consumers are turning to the Internet to investigate brands, form
connections and make purchases. In an attempt to better understand the online
shopping landscape, Unity Marketing has published a new report, Affluent Consumers
and How They Use the Internet, Social Media and Mobile Devices.

18. The research looks at how often affluent consumers use the Internet in support of
luxury goods and services purchases, what do they buy online and how much they
spend. The report also examines how affluent luxury shoppers use social media to
learn about luxury brands, share information about luxury brands, and connect with
people with similar outlooks. This year’s report also includes an in-depth look at how
affluent consumers use their mobile devices to shop, interact, form relationships, and
learn more about their favorite luxury brands.
To better understand the online shopping landscape, Unity Marketing surveyed 1,237
affluent consumers from January 6-13, 2011, with an average income $308,700; age
43.9 years; 42 percent male/58 percent female, who use the internet, social media,
and — new this year — mobile devices.
Through the research, we aimed to answer critical questions about today’s online
environment so that luxury marketers can develop their online marketing strategies,
including how best to use social media for building their brand and how to tap the
rising power of mobile apps to connect with the affluent shopper.
Promotional and Advertising Plans
The following plan will be deployed:
 Product Promotions
 Magazine advertising and other trade and lifestyle publications
 Web Site development and marketing
 Customer referral and word of mouth marketing
 Viral and email marketing to affluent audiences

19. Competitive Analysis
The three major sources for art include art galleries, home product stores and
discount stores. To a limited degree, art is also purchased art from gift shops, art
shows, directly from the artist, from custom frame shops, and from department
stores. Consumer use of the Internet is also rising exponentially as a source for
purchasing fine works of art.
Not surprisingly, art galleries are the leading source for artwork. One third of those
who bought art in 2008 made their purchase at an art gallery. This has been the
case for many years. It is expected that art galleries will remain a significant retail
distributor of artwork.
 Demographic Information for Art Galleries: A higher incidence of purchases
made at art galleries was positively correlated with higher education and income
levels.
 Demographic Information for Artists: Purchasing artwork directly from the
artist was directly correlated with higher income and education levels.
 Demographic Information for Art Shows: Again, a higher incidence of art
show purchases coincided with higher education and income levels.
 Demographic Information for the Internet: Internet purchases were
positively correlated with higher education levels, especially with younger buyers
and the growing segment of tech-savvy affluents.
Competitive Edge
Competitive strategies include new, inventive and unique products as well as efforts
to expand products and sales through owner's 30 years of contacts in the wine
business. The primary advantages of Traminer: Art Of Wine, LLC include:
 Our product has been developed through my “insider’s eye” into the wine
industry.

20.  Fine art quality meets or beats competition.
 Winery Bronzes are unique to Traminer: Art of Wine. This is an exclusive niche as
my research reveals that no other bronzes have ever been produced of any
winery in the world.
 Wineries are already branded entities with customer loyalty. Offering bronzes of
these wineries offers high potential.
 100% Customer Satisfaction is guaranteed or a refund will be provided.
 A full product line will be available through the website no later than the sixth or
seventh month of operations.
Primary Competitors
Competitors who sell wine art via the internet include:
 Wine Enthusiast.com
 CK Arvid
 Guy Buffet.
 Scott Jacob
 Thomas Arvid
 Leanne Laine
The strengths of these competitors lie in the fact that they are already established,
and have experience selling online with a large selection of products. Their
weaknesses lie in the fact that their products offer varying quality, collectibility and
uniqueness. Contrary to our in-development product line, there is very little
“investment grade” potential for these competitors’ products.
Promotion Strategy
In the retail market we cannot afford the appearance of producing second-rate
material. Additionally, poor advertising runs the risk of making our art to appear
inferior. Hence, we intend to use quality advertising and other sales media to
leverage our presence. We intend to create a strong Traminer: Art of Wine brand
through the following:
Traditional Advertising
This shall be undertaken through wine trade and industry publications, as well as
national lifestyle magazines. Additional focus on these advertising outlets will

21. include any special editions of these publications; thereby offering premium
promotional opportunities to clearly differentiate the Traminer brand from its
competitors.
Internet Marketing
We intend to actively leverage viral video presentations (YouTube) that is integrated
with targeted email launches to affluent wine collectors and enthusiasts. Additional
specialized Internet promotional opportunities to drive prospective customers will be
incorporated along with other highly focused email promotional campaigns.
All of our communications will emphasize our ability to deliver superior and unique
artwork that will meet or exceed our client needs and wishes. Each promotional
campaign will be highly integrated across multiple media lines and interdependent
with the other in order to offer branding consistency and maximize their impact.
David Baer of Baer on Marketing will be contracted to handle our internet
marketing campaign.
Pricing Strategy
Prices will be established to secure the perceived quality of the art and will target
market perception of price which will be reviewed annually. According to Gateway to
Bronze, Bend, Oregon, pricing of bronzes could be raised at least 500% from initial
offering price structure and still sell out due to uniqueness of bronze product offered.
BRONZES & SILVERS:
Artist Edition Bronzes will retail @ $3,895 to $12,895 each. Silvers will retail @
$38,000 to $48,000 each.
POSTERS / LIMITED EDITIONS / ARTIST PROOFS / ARTIST REMARQUED
Open Edition Posters will retail @ $49 to $59 each
Artist Edition Limited Edition Giclee’s will retail @ $495 to $1,895 each
Artist Remarque Edition will retail @ $2,895 to $3,895
Sales Methodology
The following suppositions have been made in developing this forecast:
 Inventory will mostly be kept at the individual artist's place, with the exception of
the bronzes which will be picked up from the supplier as needed.
 The sales forecast for Bronzes is based on 75 customers per winery bronze and
there will be 6 Bronzes in the first year and 12 Bronzes each year thereafter.

22.  The sales forecast for s/n prints is based on 150 customers per s/n print and
there will be 6 s/n prints the first year and 12 s/n prints each year thereafter.
Upon completion of the business plan our leadership team decided to add a series of
silver sculptures (12 s/n @ $38,000 to $48,000) to the company’s portfolio. Due to
certain constraints, it is not practical to include these sales numbers to the business
plan or financial projections at this time. It should, however, be noted that the total
value of these sales could add several million dollars to financial forecasts within the
first three years.
Customer Service and Support
Customer service and care has a significant impact on marketing and sales efforts;
especially to affluent buyers who expect such superiority as a featured benefit of
their purchase. A happy customer doesn’t need to be “sold twice;” and will most
likely recommend the company to their friends.
Word of mouth is another key benefit to having satisfied customers. Research shows
that the most satisfied customers go out of their way to convince others to do
business with you. Unfortunately, dissatisfied customers make it a point to tell others
to stay away, and dissatisfied customers are significantly more vocal.
This basic concept teaches that:
 Satisfied customers are the foundation of a profitable business.
 Successful retail businesses truly put the customer first.
 The customer’s voice is amplified by the Internet medium with its immediate
feedback channel and the availability of virtually unlimited knowledge. Successful
Internet marketers are true power brokers.
 High satisfaction levels eliminate customer churn (and the replacement value of a
dissatisfied customer, which can cost as much as five times more than it does to
keep a satisfied customer).
Customer satisfaction is a moving target. Consumers expect more, which means
that customer service is constantly undergoing reinvention in order to meet
constantly higher standards.The entire Traminer: Art of Wine organization is
committed to delivering unparalleled, leading-edge customer service to ensure
complete buyer satisfaction; regardless of the level of expectation. Loyalty is one of
the ways that customer satisfaction drives profits. J.D. Powers and Associates'
research shows that consumers are willing to pay a hefty premium to do business
with a company that has a reputation for delivering first-class customer satisfaction.
This even holds true where the choices are otherwise objectively similar. All

23. customer loyalty research clearly shows that not only will satisfied customers pay
more to do business with companies that offer top quality service, they will spend a
larger share of their income. This is important, because in the end, customer loyalty
and brand loyalty are inexorably linked; regardless of the product or service.
EXIT STRATEGY
Investor(s) will be paid back their investment before Traminer:Art of Wine, LLC
receives any money out of the profits. Each investor will have the choice to either get
paid their percentage ownership at the end of each fiscal year or wait until the end of
five years business operations and be bought out with a cash settlement. Each
investor may chose to re-invest back in, at a negotiated percentage of ownership.

24. Appendix
StartupExpenses
Requirements
Startup Expenses
Marketing/Advertising $18,000
Legal Fees $2,500
Total Start-up Expenses ($20,500)
Startup Assets
Cash Required/Contingency $168,360
Startup Inventory/Supplies $314,000
Other Current Assets $0
Long-term Assets $107,140
Total Assets ($589,500)
Total Requirements ($675,000)

25. StartupFunding
Startup Expenses to Fund ($20,500)
Startup Assets to Fund ($589,500)
Total Funding Required ($675,000)
Assets
Non-cash Assets from Start up $0
Cash Requirements from Start up $168,360
Additional Cash Raised $0
Cash Balance on Starting Date $168,360
Total Assets $168,360
Liabilities and Capital
Liabilities
Current Borrowing $0
Conventional Bank Loan $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Owner $210,000
Investor $675,000
Additional Investment Requirement $0
Total Planned Investment $885,000
Loss at Startup (Startup Expenses) ($20,500)
Total Capital ($20,500)
Total Capital and Liabilities ($20,500)
Total Funding $885,000

26. SalesProjections
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Sales
Bronze Products Sold $1,764,750 $3,529,500 $3,882,450 $4,270,695 $4,697,765
Prints Sold $373,500 $747,000 $822,304 $904,534 $994,987
Total Sales $2,138,250 $4,276,500 $4,704,754 $5,175,229 $5,692,752
Bronze Products Cost ($294,150) ($323,565) ($355,921) ($391,514) ($430,665)
Prints Cost ($66,600) ($73,314) ($80,645) ($88,710) ($97,581)
Subtotal Direct Cost of
Sales ($360,750) ($396,879) ($436,567) ($480,223) ($528,246)
CompanyStaff
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Edward Charlson $75,000 $108,750 $121,800 $127,890 $134,285
David Gortner $25,000 $26,250 $26,775 $28,114 $29,519
Total people 2 2 2 2 2
Total Payroll $100,000 $135,000 $148,575 $156,004 $163,804

27. PoFormaProfitandLoss
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Total Sales $2,138,250 $4,276,500 $4,704,754 $5,175,229 $5,692,752
Bronze Products Cost ($294,150) ($323,565) ($355,921) ($391,514) ($430,665)
Prints Cost ($66,600) ($73,314) ($80,645) ($88,710) ($97,581)
Total Direct Cost of Sales ($360,750) ($396,879) ($436,567) ($480,223) ($528,246)
Gross Margin $1,777,500 $3,879,621 $4,268,187 $4,695,006 $5,164,507
Gross Margin % 83.13% 90.72% 90.72% 90.72% 90.72%
Expenses
Payroll $100,000 $135,000 $148,575 $156,004 $163,804
Rent/lease $4,500 $4,590 $4,682 $4,775 $4,871
Marketing & Advertising $22,053 $22,494 $22,944 $23,402 $23,871
Utilities $1,931 $1,969 $2,009 $2,049 $2,090
Equipment/Leasing $2,940 $2,999 $3,059 $3,120 $3,183
Repair/Maintenance $1,419 $1,447 $1,476 $1,505 $1,536
Bank charges $8,641 $8,813 $8,990 $9,169 $9,353
Dues and subscription $5,416 $5,525 $5,635 $5,748 $5,863
Insurance/liability $7,648 $7,800 $7,956 $8,116 $8,278
Legal and professional $4,101 $4,183 $4,267 $4,352 $4,439
Taxes and licenses $4,398 $4,486 $4,575 $4,667 $4,760
Telephone $2,038 $2,078 $2,120 $2,162 $2,206
Miscellaneous $3,972 $4,051 $4,133 $4,215 $4,299
Total Expense $169,055 $205,436 $220,420 $229,285 $238,551
Total Operating Expenses ($169,055) ($205,436) ($220,420) ($229,285) ($238,551)
Profit Before Interest and Taxes $1,608,445 $3,674,185 $4,047,768 $4,465,721 $4,925,956
EBITDA $1,608,445 $3,674,185 $4,047,768 $4,465,721 $4,925,956
$0 $0 $0 $0 $0
Depreciation ($27,592) ($32,558) ($38,418) ($45,334) ($53,494)
Interest $0 $0 $0 $0 $0
Incomes Taxes $0.00 $0.00 $0.00 $0 $0
Net Profit $1,580,854 $3,641,627 $4,009,349 $4,420,387 $4,872,462
Net Profit/Sales 73.93% 85.15% 85.22% 85.41% 85.59%

28. Break-evenAnalysis
Monthly Units Break-even
Monthly Revenue Break-even $14,467
Assumptions:
Average Percent Variable Cost 17%
Estimated Monthly Fixed Cost -$14,088

29. ProFormaBalanceSheet
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Assets
Current Assets
Cash $1,749,214 $3,641,627 $4,009,349 $4,420,387 $4,872,462
$0 $0 $0 $0 $0
Total Current Assets $1,749,214 $3,641,627 $4,009,349 $4,420,387 $4,872,462
Long-term Assets
Long-term Assets $197,083 $232,557 $274,418 $323,813 $382,099
Accumulated Depreciation $0 $0 $0 $0 $0
Total Long-term Assets $197,083 $232,557 $274,418 $323,813 $382,099
Total Assets $197,083 $232,557 $274,418 $323,813 $382,099
Loan Balance $0 $0 $0 $0 $0
Total Debt $0 $0 $0 $0 $0
Retained Earnings $2,335,333 $4,509,057 $4,979,172 $5,499,042 $6,074,852
Earnings $2,138,250 $4,276,500 $4,704,754 $5,175,229 $5,692,752
Total Capital $2,138,250 $4,276,500 $4,704,754 $5,175,229 $5,692,752
Total Liabilities and Capital $2,138,250 $4,276,500 $4,704,754 $5,175,229 $5,692,752
Net Worth $2,335,333 $4,509,057 $4,979,172 $5,499,042 $6,074,852

30. esProjections
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
Sales
Bronze
Products
Sold
$128,187 $129,469 $130,764 $133,379 $136,046 $140,128 $145,733 $150,105 $156,109 $163,915 $172,110 $178,806
Prints
Sold
$25,870 $26,646 $27,445 $27,994 $28,834 $29,699 $30,590 $31,508 $33,398 $34,400 $35,432 $41,681
Total
Sales
$154,057 $156,115 $158,209 $161,373 $164,881 $169,827 $176,323 $181,613 $189,508 $198,315 $207,543 $220,487
Bronze
Products
Cost
($21,366) ($21,580) ($21,796) ($22,232) ($22,676) ($23,357) ($24,291) ($25,020) ($26,020) ($27,321) ($28,687) ($29,804)
Prints
Cost
($4,613) ($4,751) ($4,894) ($4,992) ($5,142) ($5,296) ($5,455) ($5,618) ($5,955) ($6,134) ($6,318) ($7,432)
Subtotal
Direct
Cost of
Sales
($25,979) ($26,331) ($26,690) ($27,223) ($27,818) ($28,652) ($29,746) ($30,638) ($31,976) ($33,455) ($35,006) ($37,236)
CompanyStaff
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Edward Charlson $75,000 $108,750 $121,800 $127,890 $134,285
David Gortner $25,000 $26,250 $26,775 $28,114 $29,519
Total people 2 2 2 2 2
Total Payroll $100,000 $135,000 $148,575 $156,004 $163,804

31. ProFormaProfitandLoss 2 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
Total Sales $154,057$156,115$158,209$161,373$164,881$169,827$176,323$181,613$189,508$198,315$207,543$220,487
Bronze Products Cost ($21,366)($21,580)($21,796)($22,232)($22,676)($23,357)($24,291)($25,020)($26,020)($27,321)($28,687)($29,804)
Prints Cost ($4,613) ($4,751) ($4,894) ($4,992) ($5,142) ($5,296) ($5,455) ($5,618) ($5,955) ($6,134) ($6,318) ($7,432)
Total Direct Cost of
Sales ($25,979)($26,331)($26,690)($27,223)($27,818)($28,652)($29,746)($30,638)($31,976)($33,455)($35,006)($37,236)
Gross Margin $128,078$129,784$131,519$134,150$137,063$141,175$146,578$150,975$157,532$164,859$172,537$183,251
Gross Margin % 83.14% 83.13% 83.13% 83.13% 83.13% 83.13% 83.13% 83.13% 83.13% 83.13% 83.13% 83.11%
Expenses
Payroll $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333
Rent/lease $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375
Marketing & Advertising $1,710 $1,732 $1,755 $1,778 $1,801 $1,824 $1,848 $1,872 $1,896 $1,921 $1,946 $1,971
Utilities $160 $160 $160 $160 $161 $161 $161 $161 $161 $161 $162 $162
Equipment/Leasing $228 $231 $234 $237 $240 $243 $246 $250 $253 $256 $259 $263
Repair/Maintenance $110 $111 $113 $114 $116 $117 $119 $120 $122 $124 $125 $127
Bank charges $670 $679 $688 $696 $706 $715 $724 $733 $743 $753 $762 $772
Dues and subscription $420 $425 $431 $437 $442 $448 $454 $460 $466 $472 $478 $484
Insurance/liability $593 $601 $609 $616 $624 $633 $641 $649 $658 $666 $675 $684
Legal and professional $318 $322 $326 $331 $335 $339 $344 $348 $353 $357 $362 $367
Taxes and licenses $341 $345 $350 $354 $359 $364 $368 $373 $378 $383 $388 $393
Telephone $158 $160 $162 $164 $166 $169 $171 $173 $175 $177 $180 $182
Miscellaneous $308 $312 $316 $320 $324 $329 $333 $337 $342 $346 $350 $355
Total Expense $13,724 $13,788 $13,852 $13,917 $13,982 $14,049 $14,117 $14,185 $14,254 $14,324 $14,395 $14,467
Total Operating
Expenses ($13,724)($13,788)($13,852)($13,917)($13,982)($14,049)($14,117)($14,185)($14,254)($14,324)($14,395)($14,467)
Profit Before Interest and
Taxes $114,353$115,996$117,668$120,233$123,080$127,126$132,461$136,790$143,278$150,535$158,142$168,784
EBITDA $114,353$115,996$117,668$120,233$123,080$127,126$132,461$136,790$143,278$150,535$158,142$168,784
Depreciation ($1,500) ($1,572) ($1,647) ($1,726) ($1,809) ($1,896) ($1,987) ($2,083) ($2,183) ($2,287) ($2,397) ($2,512)
Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Incomes Taxes
Net Profit $114,353$115,996$117,668$120,233$123,080$127,126$132,461$136,790$143,278$150,535$158,142$168,784
Net Profit/Sales 74.23% 74.30% 74.37% 74.51% 74.65% 74.86% 75.12% 75.32% 75.61% 75.91% 76.20% 76.55%

32. ProFormaBalanceSheet Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
Assets
Starting
Balances
Current Assets
Cash $168,360 $282,713 $284,356 $286,028 $288,593 $291,440 $295,486 $295,486 $295,486 $295,486 $295,486 $295,486 $295,486
Total Current
Assets
$168,360 $282,713 $284,356 $286,028 $288,593 $291,440 $295,486 $295,486 $295,486 $295,486 $295,486 $295,486 $295,486
Long-term Assets
Long-term Assets $107,140 $112,283 $117,672 $123,321 $129,240 $135,443 $141,945 $148,758 $155,898 $163,382 $171,224 $179,443 $188,056
Accumulated
Depreciation
Total Long-term
Assets
$107,140 $112,283 $117,672 $123,321 $129,240 $135,443 $141,945 $148,758 $155,898 $163,382 $171,224 $179,443 $188,056
Total Assets $107,140 $112,283 $117,672 $123,321 $129,240 $135,443 $141,945 $148,758 $155,898 $163,382 $171,224 $179,443 $188,056
Loan Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retained Earnings $268,398 $275,881 $284,694 $294,121 $305,271 $318,268 $330,371 $345,406 $361,697 $378,767 $399,930 $2,326,306
Earnings $154,057 $156,115 $158,209 $161,373 $164,881 $169,827 $176,323 $181,613 $189,508 $198,315 $207,543 $220,487
Total Capital $154,057 $156,115 $158,209 $161,373 $164,881 $169,827 $176,323 $181,613 $189,508 $198,315 $207,543 $220,487
Total Liabilities and
Capital
$0 $154,057 $156,115 $158,209 $161,373 $164,881 $169,827 $176,323 $181,613 $189,508 $198,315 $207,543 $220,487
Net Worth $107,140 $266,340 $273,787 $281,530 $290,613 $300,324 $311,772 $325,081 $337,511 $352,889 $369,539 $386,985 $408,543