Anthony Wedo, Chairman & CEO
Carrie Wedo, VP Purchasing & Customer Service
Rod Heckman, VP of Marketing and PR
Janie P. Smyser, VP Sales & Training
Kelly Hax, Director Sales & Training

Product Line or Service — Homes for living™ is a start-up company in the retail direct selling industry. The company will specialize in home décor and candle sales primarily selling through the venues of home shows (70%), corporate and regional presentations (20%), as well as individual (5%) and web site ordering (5%).

Our Mission: "To become the premier direct selling retail brand, specializing in home sales featuring superior quality, high value products to enhance the experience at home."

The company will execute this strategy by utilizing a large network of independent contractors located in 4 areas of influence. Homes for Living, Inc.™ will begin operations on or before August 1, 1998, with 300 or more independent contractors called, Sales Associates, located in the Harrisburg/Philadelphia, Baltimore/Washington, Greensboro/Atlanta, and San Diego/Southern California regional areas.

The first 300 Sales Associates will be highly experience, motivated and a recognized group from the direct selling industry. They will provide a platform to field test our systems and procedures, as well as, a basis for recruiting our target of 1,626 Sales Associates by year-end. This year-end projection is based on only 20% of all Sales Associates recruiting 2 people each per month. This is the current industry standard for more mature brands, typically more difficult to recruit for than an exciting new start-up.

Technology/Proprietary Rights — N/A

Market Opportunities — The direct selling industry is large and experiencing aggressive growth. A $21 billion industry that grew 16% from ‘95 to ‘96 up from 9% growth ‘94 to ‘95.

Additionally, our approach of group sales (a.k.a. party plan sales), represents 21% of the industry, up 400% over the past 5 years. Inside this group selling environment, clearly the home is perceived as the most convenient for the consumer. However, it is important to note that the workplace is becoming more convenient for the consumer, as well as, embraced by employers who are seeking new and novel ways to provide incentive to their employees. At 14%, this category is up 300% over the past 5 years.

Marketing/Sales and Distribution — Company will sell home décor and candles through the venues of home shows (70%), corporate and regional presentations (20%), as well as individual (5%), and web site ordering (5%). Additional order fulfillment will be accomplished through an experienced national vendor located in the Mid-Atlantic region.

Competition — During our 4 months of research on the industry, we concluded that sophistication levels were fairly low and opportunity for growth was high. With the exception of Avon and Amway (A MLM Co.), no one has reached a billion dollars in sales. Furthermore, only a handful of companies even broke the $100M sales level. Most companies were in the $2M to $10M range. Within the $100M plus enterprises 3 companies were particularly interesting because of their similar Sales Associate compensation plans. Longaberger Basket Co., The Pampered Chef and the PartyLite organization. Through a similar compensation plan, Longaberger Basket Co. and the Pampered Chef product offerings are non-consumable in nature and extremely narrow in appeal. Longaberger sells woven baskets of various sizes and shapes and The Pampered Chef sells cooking utensils and pots and pans. However, at $611M and $230M respectively, it’s hard to argue about their success. I would suggest it speaks more directly to the selling venue than the product line. The PartyLite organization sells lower quality candles and home accessories. With $700M in 1997 revenues they will become the K-Mart to our Crate N Barrel/Pier 1 Brand... Homes for Living.

Manufacturing — Company has created relationships with two exclusive vendors; one for candles, the other for home décor. Both vendors will produce private label and proprietary items.