This Nondisclosure Agreement (the "Agreement") is entered into by and between Daniel Apodaca-Kotick ("Disclosing Party") and Andrew Clausen ("Receiving Party") for the purpose of preventing the unauthorized disclosure of Confidential Information as defined below. The parties agree to enter into a confidential relationship with respect to the disclosure of certain proprietary and confidential information ("Confidential Information").

1. Definition of Confidential Information. For purposes of this Agreement, "Confidential Information" shall include all information or material that has or could have commercial value or other utility in the business in which Disclosing Party is engaged. If Confidential Information is in written form, the Disclosing Party shall label or stamp the materials with the word "Confidential" or some similar warning. If Confidential Information is transmitted orally, the Disclosing Party shall promptly provide a writing indicating that such oral communication constituted Confidential Information.

2. Exclusions from Confidential Information. Receiving Party's obligations under this Agreement do not extend to information that is: (a) publicly known at the time of disclosure or subsequently becomes publicly known through no fault of the Receiving Party; (b) discovered or created by the Receiving Party before disclosure by Disclosing Party; (c) learned by the Receiving Party through legitimate means other than from the Disclosing Party or Disclosing Party's representatives; or (d) is disclosed by Receiving Party with Disclosing Party's prior written approval.

3. Obligations of Receiving Party. Receiving Party shall hold and maintain the Confidential Information in strictest confidence for the sole and exclusive benefit of the Disclosing Party. Receiving Party shall carefully restrict access to Confidential Information to employees, contractors and third parties as is reasonably required and shall require those persons to sign nondisclosure restrictions at least as protective as those in this Agreement. Receiving Party shall not, without prior written approval of Disclosing Party, use for Receiving Party's own benefit, publish, copy, or otherwise disclose to others, or permit the use by others for their benefit or to the detriment of Disclosing Party, any Confidential Information. Receiving Party shall return to Disclosing Party any and all records, notes, and other written, printed, or tangible materials in its possession pertaining to Confidential Information immediately if Disclosing Party requests it in writing.

4. Time Periods. The nondisclosure provisions of this Agreement shall survive the termination of this Agreement and Receiving Party's duty to hold Confidential Information in confidence shall remain in effect until the Confidential Information no longer qualifies as a trade secret or until Disclosing Party sends Receiving Party written notice releasing Receiving Party from this Agreement, whichever occurs first.

5. Relationships. Nothing contained in this Agreement shall be deemed to constitute either party a partner, joint venturer or employee of the other party for any purpose.

6. Severability. If a court finds any provision of this Agreement invalid or unenforceable, the remainder of this Agreement shall be interpreted so as best to effect the intent of the parties.

7. Integration. This Agreement expresses the complete understanding of the parties with respect to the subject matter and supersedes all prior proposals, agreements, representations and understandings. This Agreement may not be amended except in a writing signed by both parties.

8. Waiver. The failure to exercise any right provided in this Agreement shall not be a waiver of prior or subsequent rights.

This Agreement and each party's obligations shall be binding on the representatives, assigns and successors of such party. Each party has signed this Agreement through its authorized representative.

Daniel Apodaca-Kotick (Signature)
Date: 12/12/11

_____________________________________________________ (Signature)
Date:

An interactive dog kennel

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Daniel Apodaca-Kotick

Principles of Entrepreneurship 1300

Executive Summary

The Dog Show is a daycare/kennel facility with central locations in major U.S. cities. The dogs are provided the expected services of human attention and affection, outdoor excursions for exercise and recreation, and various toys and equipment with which to amuse themselves. What sets The Dog Show apart from other kennels is the ability it provides pet owners for remote supervision of their dogs while at the facilities. The Dog Show is equipped with streaming webcams in each room of the facility that houses pets, allowing owners to check in at any given time on their computer or by downloading the Dog Show app to their smartphones. In addition to video sources, Dog Show staff will maintain a company-owned twitter feed with updates about activities throughout the day.

In this time of information saturation, pet owners are already bringing their companions online in droves. By harnessing this trend, The Dog Show will compete directly with pre-existing kennels and offer a unique service to distinguish itself. The Dog Show will reach profitability quickly and generate revenues of $18,000 by its third year.

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Objectives

The objectives for the first three years of operation include:

• To create a service-based company whose goal is to give customers a new and unique experience.

• To increase the number of clients by 20% per year through superior performance and word-of-mouth referrals.

• To develop a sustainable small business surviving off its own cash flow.

Mission

The Dog Show’s mission is to provide the customer with a kennel service that allows the pet owner to stay in contact with the dog, even when physically unable, allowing the customer’s relationship with their dog to bridge even the greatest distances. We exist to attract and maintain customers. When we adhere to this ideal, the solution to any problem will become apparent.

Keys to Success

The Dog Show’s key to success is placing the highest value on the relationship between our customers and their dogs.

Company Summary

The Dog Show is a kennel service for dogs. When a customer is leaving town, they can bring their dog to their local Dog Show facility, where the dog will be provided love, attention, toys, food, and an individual bed. The customer will then receive an access code for the streaming webcam feeds, which they can view at their leisure.

The first Dog Show facility is located in Los Angeles, CA.

Start-up Summary

The Dog Show will incur the following costs:

• Computer system with printer, Microsoft Office, and QuickBooks Pro.

• Four streaming-capable webcams.

• Creation of Dog Show online viewing software and smartphone app software.

• Ten large dog cages.

• Ten medium dog cages.

• Twenty dog beds.

• Forty water/food bowls and assorted dog toys.

• Variable room gates.

• Twenty-five dog leashes.

• Dog treats.

• Two pooper-scoopers.

|Start-up Requirements | |
|Start-up Expenses | |
|Legal |$500 |
|Website development |$1,000 |
|Facilities |$2,500 |
|Total Start-up Expenses |$4,000 |
|Start-up Assets | |
|Cash Required |$5,000 |
|Other Current Assets |$0 |
|Long-term Assets |$0 |
|Total Assets |$5,000 |
|Total Requirements |$9,000 |

|Start-up Funding | |
|Start-up Expenses to Fund |$4,000 |
|Start-up Assets to Fund |$5,000 |
|Total Funding Required |$9,000 |
|Assets | |
|Non-cash Assets from Start-up |$0 |
|Cash Requirements from Start-up |$5,000 |
|Additional Cash Raised |$0 |
|Cash Balance on Starting Date |$5,000 |
|Total Assets |$5,000 |
|Liabilities and Capital | |
|Liabilities | |
|Current Borrowing |$0 |
|Long-term Liabilities |$0 |
|Accounts Payable |$0 |
|Other Current Liabilities |$0 |
|Total Liabilities |$0 |
|Capital | |
|Planned Investment | |
|Daniel |$3,000 |
|Investor 2 |$2,000 |
|Other |$0 |
|Additional Investment Requirement |$4,000 |
|Total Planned Investment |$9,000 |
|Loss at Start-up |($4,000) |
|Total Capital |$5,000 |
|Total Capital and Liabilities |$5,000 |
|Total Funding |$5,000 |

Company Ownership

The Dog Show is a sole proprietorship founded and owned by Daniel Apodaca-Kotick.

Services

The Dog Show offers canine kennel service at the Dog Show facilities. The dogs remain at the facilities, unless they are being taken out for a walk at the local park. The dogs receive two walks each day and have access to a large indoor playing space, as well as nearby green space. The dogs are provided personal beds to sleep in and personal water and food bowls. Pet owners have the ability to view their dog’s activities at any time via streaming webcams and read updates for Dog Show staff on the company’s official twitter feed.

The Dog Show can house up to ten large dogs and/or up to twenty medium to small dogs at once and charges $50 a day, or $300 a week.

Market Analysis Summary

The Dog Show will develop a loyal customer base through the use of initial advertisements in the Humane Society newsletter and online at popular dog-owner sites, including message boards and retailers like PetCo., informational postings at local veterinarians’ offices, and a word-of-mouth referral system.

Market Segmentation

The Dog Show’s target market is people who feel uncomfortable leaving the care of their dog to a stranger. By providing the ability to keep track of the dog’s activities (and the behavior of the kennel staff) customers who might be hesitant to leave their dog at a kennel will feel reassured. And by providing a steady stream of updates and video of the dog, The Dog Show will reduce the extent to which a customer feels separated from their dog, allowing them to maintain the bond they’ve devoted so much time to developing. The Dog Show is targeting people who consider their dogs to be one of the most important parts of their lives.

The other component of the target market is the customers must have enough money to cover the additional cost of The Dog Show’s unique services. The typical customer will have a household income above $50,000.

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|Market |Analysis | | | | | | |
| | |Year 1 |Year 2 |Year 3 |Year 4 |Year 5 | |
|Potential Customers |Growth | | | | | |CAGR |
|Dog Owners |9% |17,876 |19,485 |21,239 |23,151 |25,235 |9.00% |
|Other |0% |0 |0 |0 |0 |0 |0.00% |
|Total |9.00% |17,876 |19,485 |21,239 |23,151 |25,235 |9.00% |

Target Market Segment Strategy

The Dog Show believes that their service is so distinct and valuable that little will be needed to build a customer base, other than faithfully providing their service. The Dog Show will be working with respected veterinarians, as well as advertising through the Humane Society, online message boards, and local retailers as the means of communicating The Dog Show’s availability to the general public. These will be the only strategies used to develop a loyal customer base.

Strategy and Implementation Summary

The Dog Show will rapidly build a loyal customer base as their service exceeds customer's expectations. The Dog Show will leverage their special program that allows the customers to have constant remote access to their pets to build a strong word-of-mouth referral system that will develop a strong demand.

Competitive Edge

The Dog Show's competitive edge is the ability for the customer to keep abreast of what is happening with their dog in real time. All other alternatives do not provide anything close to the amount of supervision of a dog’s care.

Marketing Strategy

The Dog Show marketing approach will be using guerrilla-marketing tactics in order to be as cost effective as possible. The Dog Show will run an advertisement in the Humane Societies local chapter's newsletter and at select websites online. In addition to this, Dog Show management will speak with several well-respected veterinarians and provide them with several free day coupons. This will be done to develop business that will then report back to the veterinarian. Once a good review is passed back to the veterinarian, this will become a good source of customers. Once The Dog Show has received initial business it will not take long before very little marketing will be needed to fill up the facility's schedule.

Sales Strategy

The sales strategy will be to develop a list of happy past customers (not difficult) who are willing to act as referrals for The Dog Show. Once this list is developed, their names will be given out when a prospective client calls.

Sales Forecast

The first month will be used to set up the space for the dogs, submit the advertisements, and form alliances with a few veterinarians. Beginning in month two there will be some business. Things will grow for a few months until mid year when the bulk of the week will be at capacity.

|Sales Forecast | | | |
| |Year 1 |Year 2 |Year 3 |
|Sales | | | |
|Dog Owners |$32,200 |$42,500 |$45,000 |
|Other |$0 |$0 |$0 |
|Total Sales |$32,200 |$42,500 |$45,000 |
|Direct Cost of Sales |Year 1 |Year 2 |Year 3 |
|Dog Owners |$645 |$850 |$900 |
|Other |$0 |$0 |$0 |
|Subtotal Direct Cost of Sales |$645 |$850 |$900 |

Milestones

The Dog Show will have several milestones early on:
• Business plan completion. This will be done as a roadmap for the organization. This will be an indispensable tool for the ongoing performance and improvement of the company.
• Set up the facilities.
• Initial strategic development complete.
• Full capacity reached.

|Milestones | | | | | |
|Milestone |Start Date |End Date |Budget |Manager |Department |
|Business Plan |11/15/2011 |12/15/2011 |$0 |Daniel |Management |
|Completion | | | |Apodaca-Kotick | |
|Set up the facilities |1/15/2012 |2/15/2012 |$3,000 |Daniel |Management |
| | | | |Apodaca-Kotick | |
|Initial strategic |11/15/2012 |3/1/2012 |$0 |Daniel |Management |
|development complete | | | |Apodaca-Kotick | |
|Full capacity reached |3/1/2012 |7/31/2012 |$0 |Daniel |Management |
| | | | |Apodaca-Kotick | |
|Totals | | |$0 | | |

Web Plan Summary

A website will be developed to provide access to the streaming webcams for owners of pets staying at The Dog Show. In addition, a Twitter feed will be updated by Dog Show staff throughout the day.

Website Marketing Strategy

The website will only be promoted to customers upon registration of their dog at the kennel. The Twitter feed will be public, but only refer to pet names and not disclose any sensitive information about their owners. The smartphone app will be available for free for both iPhones and Android phones, with minimal advertising within the app.

Development Requirements

A web designer and online coder will be hired to create and maintain the website and smartphone apps.

Management Summary

Daniel Apodaca-Kotick is in the process of completing his Bachelor’s degree in Arts Management. He is highly web-savvy and keenly aware of the powerful relationships people have with their dogs. In trying to think of new ways to tap into the pet industry, Daniel realized that while people were already creating online presences for their dogs, there was a lack of options for connecting with your dog when you’re far away.

Personnel Plan

Daniel will act as the top employee and hire staff for necessary duties. Initially, this will include one commissioned web designer, one on-call IT tech, and four part-time kennel staff members. In addition to managerial duties, Daniel will supplement the kennel staff’s activities.

|Personnel Plan | | | |
| |Year 1 |Year 2 |Year 3 |
|Payroll |$80,000 |$80,000 |$80,000 |
|Other |$500 |$0 |$0 |
|Total People |7 |6 |6 |
|Total Payroll |$80,500 |$80,000 |$80,000 |

Financial Plan

The following sections will outline important financial information.

Important Assumptions

The following table details important financial assumptions.

|General Assumptions | | | |
| |Year 1 |Year 2 |Year 3 |
|Plan Month |1 |2 |3 |
|Current Interest Rate |10.00% |10.00% |10.00% |
|Long-term Interest Rate |10.00% |10.00% |10.00% |
|Tax Rate |30.00% |30.00% |30.00% |
|Other |0 |0 |0 |

Break-even Analysis

The Break-even Analysis indicates that approximately $3,500 will be needed in monthly revenue to reach the break-even point.

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Projected Profit and Loss

The following table will indicate projected profit and loss.

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