TEC ENTERPRISES CORP.

Transcription

1 TEC ENTERPRISES CORP. INVESTMENT TYPE: CIGAR STORE (WORKING OR SILENT PARTNER) As entrepreneurs, we constantly are looking for the next Starbucks. What is Starbucks? A place to drink good, strong coffee (that is a matter of opinion you can t please everyone but it is a numbers game) where they don t mind if you sit for hours, and they do a good take-out business. Just a place to get coffee and they make a fortune. We have spent over two years through our PIP Partner to find, create, design, and develop the next such business. It was also important that in order to include the business into our PIP Program, the investment requirement for such a business would be relatively small, on-going expenses would be minimal, and it would be primarily a dry business (no cooking, etc.). That business is a Cigar Store and Lounge. The concept of the Cigar Store and Lounge also has to differentiate itself from any competition. Here are some of the advantages: - Our PIP Partner has spent two years manufacturing and creating their own premium blends of cigars that are hand rolled. Why is this important?: Most cigar store primarily sell same cigars by other manufacturers. We have our own premium blends which differentiates us from the competition. - Having our own blends allows us to produce high-quality cigars at a low-price point. Why is this important?: Allows you to establish your retail price which increases profitability. - Cigar smokers are always looking for new premium cigars. Why is this important?: Our PIP Partner can offer several new premium blends every year.

2 - Because our PIP Partner can produce their own blends it also means that they can customize a blend for different liquor / alcohol companies: Why is this important? We are able to produce a cigar that has a slight taste of Johnnie Walker Black Label whisky. Advantage of the Cigar Store and Extended Lounge Concept Cigar shops are among the few places that a cigar smoker can call home The majority of cigar stores either just sell cigars or some stores do have a small lounge for maybe 4 or 6 people to sit. The concept of our PIP Manager Cigar Store and Lounge Concept is to have a much larger lounge that can sit at least 30 people and more. The larger lounge area will also have several large TV screens and can be used for people to see sporting events, live entertainment (Jazz, etc.) or hold networking meetings. In addition, the extra space allows companies to hold corporate meetings where smoking a cigar is allowed. Statistics has shown that if you don't have larger capacity for your customers to relax and enjoy themselves, you're going to be at a disadvantage. The cigar lounge is the last refuge of the dedicated cigar smoker. Cigar smokers enjoy other like-minded individuals in an environment where they can be comfortable. It is a place where you are not going to get disapproving stares and you're not going to be hassled by the smoke police. With smoking bans spreading across the United States like an irrepressible, choking weed, the cigar shop is becoming the last safe house available to the cigar smoker. Most of the states, cities and towns that have banned smoking still allow smoking inside cigar shops (Washington State is a noted exception) and savvy cigar store owners are responding by creating lounges inside their shops. Instead of merely being a place in which to purchase a cigar, many cigar shops today are now places for them to be consumed as well that is why our lounge area will be larger.

3 Nationwide Expansion of the Cigar Store and Extended Lounge Concept We strongly feel that the Cigar Store and Extended Lounge will be established in at least 5 major cities in every state. While it is true that some large cities can handle 5 stores alone, we wanted this to be a conservative forecast. It is a low cost to enter business, the profitability factor to sell cigars (especially for us) is rather high, we have a built-in loyal customer, and we anticipate each store to be profitable. LOCATIONS: Any location that generates traffic is perfect for a store. Inner cities with large populations, next to major highways, and right outside of most universities and colleges. Every university or college with at least 15,000 plus students can have at least one cigar store and lounge. We also assume that some locations might not have a lounge (or very small area) because the traffic is so high and space is limited such as major train and bus stations, certain shopping malls, etc. YOUR OPPORTUNITY: The PIP Program allows you to invest money in the overall business, or individual stores. It is important to note that The PIP Program allows you to participate in the profits of the corporation or business. For example: If we had 100 stores and each store has a profit of $100,000 a year total profits for all stores would be $10 million dollars. If you owned 1% of the overall business you would receive $100,000 every year. Or, if you owned 1/10 of 1% (a one time investment of $1,500) of the overall business you would receive $10,000 every year. PIP INVESTMENT IN THE CIGAR STORE: INVESTMENT IN OVERALL BUSINESS The owner of the cigar store business (name will be provided shortly), who is also a friend of the PIP Program, will also allow individuals to be able to join the PIP Cigar Store Program by participating in his business. In effect, you will share in the profits in perpetuity forever (until you decide to offer your percentage back to the company (for a profit).

4 THE INVESTMENT: 10% of the total profits from all the stores will be allocated to individuals who participate in raising a total of $150,000. The minimum amount of investment is $500. Maximum, is whatever you like. Every investor will receive a PIP Investor document identifying the percentage you will receive from all the profits generated from the Cigar Store business. Example: Depending on the percent of the business you owned, a check or wire transfer will be generated to your account at the end of each calendar year. Every 3 months, the business will present to you the buy-back program in case you wish to give back your PIP percentage back to the company. Once the company has reached the total amount of investment requested ($150,000) The Cigar Store PIP Program for the Overall Business will cease to request any more funds. A separate web site for the business will be created so you can see how your investment is doing. Do not hesitate to CONTACT US if you have any questions or wish to participate in the PIP Program. THE TEC ENTERPRISES CORP PIP PROGRAM HIGHLY RECOMMENDS THE CIGAR STORE AND LOUNGE CONCEPT AS A GREAT PIP INVESTMENT. ADDITIONAL OPPORTUNITY INVESTMENTS FOR CIGAR STORE PIP PROGRAM Opening up a cigar store and lounge can be as little as $400,000. The ownership of the cigar business has approached the PIP Program which will allow individuals to get involved as much, or as little as they want. We have already identified the advantages of why we think the PIP Program Cigar Store and Lounge will be very profitable. You can become a PIP Partner in one or as many stores as you like. Let s go over some of the possibilities (Investments will be from the larger investment to the smaller):

5 THE INVESTMENT This investment is for an individual or a group of friends who want to invest $45,000 to open up a Cigar Store and Lounge in their area. They will also retain the 3 working positions (salaries for the 3 positions range from $45,000 to $50,000. Plus, they retain a bonus - see info below. $45,000 (Working Partners) - We can open up a Cigar Store and Lounge in your area. - Location will be decided by ownership of the business. - Each store will have 3 employees (advisable it come from the investors). One full time employee (earning approximately $25,000 to $30,000 a year) and two part time employees (earning approximately $10,000 a year). There is no problem in making this a family and/or family and friends business. - In effect, investors are reimbursed for their investment by their salaries by the end of the first year. - Primary investor (most likely the full time employee even though it does not have to be) will be invited to Philadelphia (for an all-expense paid trip for at least 2 full days of training). Additional training will continue on an on-going basis. - Investors will also receive a 10% bonus of store profits. - Should ownership open up an additional Cigar Store and Lounge in your city from profits generated from initial store, Investors will also receive a 10% bonus of store profits coming from the additional store. It is understood that Investors can recommend the potential employees for the additional stores - Exit Strategy: Investors will be given an opportunity after two years and thereafter yearly to get back their investment back plus any accrued bonus due to them. $45,000 (Silent Partners) - Investors can receive either a guaranteed 15% yearly interest rate on their investment or receive 10% bonus on store profits whichever is greater (decision can be made at the end of the calendar year).

6 - Location of store will be determined by business ownership and location of store and quarterly financials will be supplied to the Investor. - Exit Strategy: Investors will be given an opportunity once a year to get back their investment back plus accrued interest rate.

7 As the economy continues to improve over the next five years, more consumers will likely indulge in premium cigars at high-end lounges, helping the industry sustain its growth and widen profit margins. There are no major companies that dominate the landscape or account for more than 5.0% of industry revenue. In fact, no company accounts for more than 1.0% of industry revenue. The industry consists primarily of small, specialty establishments that cater to local and regional markets. Many of these lounges or bars are sole proprietorships that operate only one location with only a small number of employees. and 90 percent said the lounge had experienced a recent increase in usage. Having a place to smoke a cigar is increasingly important. The lounge has a few sofas and chairs, an espresso machine and no television. "Cigar lovers hang out, talk and smoke, and shoot the breeze," says Levin, who travels to many cigar shops across the United States as part of representing the cigar brand. "I think [having a lounge] is becoming more of a standard nowadays. In certain parts of the country, it's almost a requirement." And attract he does: his parties draw hundreds of customers. "At our last event I had no way of knowing how many people were at this party, but we had 1,200 people buy something at the register," he says. "My entire focus for the last three years has been to create cigar smokers. Instead of trying to sell wholesale or sell on the Internet, I had to get nonsmokers to come

8 to my parties." His method is hardly revolutionary, but can't be argued: give away free food and beer. - Pierson Geoffreys offers premium hand rolled cigars that can absolutely compete with more well-known, quality brands in the marketplace. We manufacture and create our own blends, in a quality controlled environment. Whether you consider yourself a cigar aficionado, an enthusiast or a beginner, we offer unparalleled products that you can enjoy. Looking for the next Starbucks Industry Analysis & Industry Trends The Cigar Lounges industry has made a strong comeback in the United States over the past five years as a large increase in cigar consumption has boosted demand for cigar lounges. Despite regulatory hurdles in obtaining exemption from state indoor smoking bans, both industry participation and revenue have

9 grown at rapid rates since Additionally, the recent steps toward normalization of relations with Cuba will expand access to the country's high-end cigars, providing an opportunity for the industry... purchase to read more Industry Report - Industry Key Buyers Chapter Market share concentration within the Cigar Lounges industry is low. Some firms may operate multiple establishments in different cities or regions. The widespread nature of the industry adds to its low market share concentration.. CIGAR STORE - With entertainment and without - Looking for the next Starbucks - - Pierson Geoffreys offers premium hand rolled cigars that can absolutely compete with more well-known, quality brands in the marketplace. We manufacture and create our own blends, in a quality controlled environment. Whether you consider yourself a cigar aficionado, an enthusiast or a beginner, we offer unparalleled products that you can enjoy. - Our business is dedicated to becoming one of the top companies in the industry. We work hard to make sure that we always satisfy your needs. Feel confident that you are receiving exceptional products by choosing Pierson Geoffreys. What is the Cigar Lounges Industry? This industry comprises businesses known as cigar bars or lounges, where patrons can purchase and smoke cigars. Players in this industry may also provide limited food and alcohol services.

10 We created a unique organization for individuals who truly want to become entrepreneurs. We are a family and friends organization and each one of us has

11 over 20 years of experience in several businesses. From Wall Street and banking to consumer financing, music, movies, producing products, and more. Most of the businesses we started require you, the entrepreneur, no money to invest in starting up the business. We have already done that. All we need from you is your desire, dedication, and abilities. We have a training program that can assist you in understanding each one of our businesses. We are not just an on-line business. Members of our management and training team will have discussions with you about the best ways to succeed with our program. There are opportunities, through our PIP Program, to partner and get involved in a variety of PIP businesses. You can invest as little or as much as you want. Some businesses will have salaried positions with a bonus, some businesses will allow you to become a silent partner, and we also have situations where you can receive a 15% return on your investment. Whether you are unemployed, under-employed, looking for a full time job, or even want to become a TEC Sales Representative (promoting our entire program) we strongly believe we have designed programs that gives you the ability to choose one (or two) that is just right for you. So, please go through our site, read ABOUT US, YOUR PROPOSAL, the BUSINESS pages, then CONTACT US, and let s discuss how together we can come up with the right position and marketing strategy that combines both our talents. Thanks. THE MANAGEMENT TEAM