Mr.

Tyler Hansen
1583 University Ave.
Ames, Iowa 50010

Dear Mr. Hansen,
I am Dylan Kay, owner of TemperaGuard Valve Guards. Tim Jones of the
Entrepreneurs Financing Group recommended me to you as a potential investor for my
company.
TemperaGuard produces trumpet valve guards and heated pads that are placed inside the
guard. We offers trumpet players of outdoor marching bands a valve guard that is weather proof
and offers a heat source for when weather conditions are in temperatures that require doctoring
to the horn for it to perform properly. TemperaGuard is currently the only company on the
market that produces valve guards that have built in heat sources.
TemperaGuard is currently in the design stage with a mock-up template and material
composition already completed. TemperaGuard is seeking a $75,000 investment with 10%.
Your consideration in investing with TemperaGuard would be greatly appreciated.
Thank you for your consideration. If you have any questions you can contact me at (712)
249-2969, and you can expect a response within 48 hours of contact.

Sincerely,
Dylan Kay







Dylan Kay Jake Sinnett Danh Phan
(712) 249-2969 (816) 876-7853 (214) 558-3288
April 2014
Table of Contents

1. Executive Summary .................................................... Error! Bookmark not defined.
2. Company And the product ........................................................................................... 2
2.1. Company Summary .............................................................................................. 2
2.2. Company History ................................................................................................. 3
2.4 Product ................................................................................................................ 3
3. Legality ........................................................................................................................ 4
3.1. Legality Issues ...................................................................................................... 4
4. Customer/Market Analysis ........................................ Error! Bookmark not defined.
5. Marketing Plan ............................................................................................................ 6
5.1. Entry Strategy ....................................................................................................... 6
5.2. Pricing .................................................................................................................. 6
5.3. Marketing Budget.7
5.4. Distribution/Location7
6. Competitor Analysis ................................................................................................... 7
6.1. Competitor Analysis ............................................................................................. 8
6.2. Industry Analysis8
7. Management Team...................................................................................................... 8
8. Financial Highlights .................................................................................................. 10
9. Proposed Offering ..................................................................................................... 10
10. Overall Schedule ....................................................................................................... 10


Table of Contents

























1

1. Executive Summary
TempraGuard (Thermal Valve Guard) is a company that produces thermal valve guard for
brass trumpet instruments. The company was founded in 2005 in Ames, Iowa by Dylan Kay. The
company currently sells the thermal valve guards to local high schools and is used by the Iowa
State Cyclone Marching Band.
The Products
TemperaGuard sells valve guards for trumpets, and heated pads that go inside the guard.
The Market
TemperaGuard current sells heated valve guards directly to individual consumers
around Central Iowa and to nationwide distributors. The company is expected to grow, by
selling its product outside of local high schools and Iowa State University. Most
interestingly, there is no other product out there like ours.
Marketing
TempraGuard will focus its marketing strategies with two different ways to reach
its customers. One of the strategies will consist of educating the consumers of the product
through a website. While the website is already up and running, we will continue to
improve it as the company develops. The second strategy will consist of marketing at
industry trade shows. Trade shows will help showcase our product to potential
distributors of instruments.
Financial Highlights
TemperaGuard is forecasted to reach profitability during first year. Our sales
have reached $20,000 in 2014, increasing to $120,000 in 2017. By 2017 we will have a
gross margin of 89.23%.
2

Management Team
Our management team consists of 3 students from Northwest Missouri State.
Each of the students have played an integral role in the formation of this business.
Objectives
To become the leading thermal valve guard manufactures.
Increase profitability to make TemperaGuard a long-lasting company in a new
market.
Increase units sold by expanding our market outside of Central Iowa.
Mission
TemperaGuard is here to revolutionize the way trumpets are played in frigid
temperatures. To improve the quality of sound and ease of play is our products goal.
Key to Success
Produce a consistent product
Provide excellent customer service to both the distributor and consumer.
Stable control of financial budgets
2. The Company and Product
2.1.Company Summary
TemperaGuard is an Iowa-based L.L.C. that was started in early 2005 by
Dylan Kay. The company began as a home based venture with Dylan selling
directly to student at his local high school. Dylan is ready to take it the next level
by hiring new people and selling to distributors in addition to direct to the
consumer. TemperaGuard will use an in house production produced locally. The
product designs have been created and normalized.
3


2.2.Company History
The company was created in 2014 by Dylan Kay when he used his
background in music to discover a solvable problem that will help aid in the use
of instruments in cold weather.
2.3.Product
TemperaGuard produces two products: valve guards for trumpets and a
heated 1 time use pads that go inside of our valve guards. The valve guard itself
is comprised of an elastic synthetic neoprene rubber that is weather resistant in
temperatures decreasing all the way down to -58o F. After multiple tests of
materials, Dylan found that the neoprene would best suit the TemperaGuard
because of its elastic nature that would help it fit snugly around valves of all
instruments that the product is intended for. In addition to the elastic nature, the
neoprene material is weather resistant and does a great job at retaining heat.
CITE The inner lining of the pad will consist of a fleece material that will also
hold a heated pad. Fleeces soft and fluffy material will provide a nice
breathable cushion for the valves that will also do a good job at retaining heat.
The heated pads, currently provided by Hot Hands, are comprised of a perforated
pouch with a combination of cellulose, iron, and active carbon that heat to an
average temperature of 138
o
F when exposed to oxygen. CITE The heated pads
are purchased in air-tight packages and are activated when opened and exposed to
the air. After the heating pad is opened and activated, it will be place in the fleece
4

pouch on the valve guard. The Temperaguard will go around the valves of the
trumpet and be fastened on with a Velcro strip.
What makes us so unique from any competition is that there is no other
product out there like ours. The TemperaGuard offers players of brass
instruments with valves a simple, yet quality solution to the sticking and freezing
of valves which common in cold weather situations. The TemperaGuard provides
trumpet players the ease of mind knowing that they can perform with an
instrument that will work properly in temperatures that otherwise would freeze
their valves. In addition to the TemperaGuards heating capabilities, it also acts
as a standard valve guard without the heated pad in place giving the user a soft,
comfortable material for their hand to grip onto which would relieve any hand
fatigue and protect the valves from sweat, grease, or any other harmful things to
the brass.
Currently the TemperaGuard is still in the design stage of development.
We have a template for the shape and proportion of the valve guard itself. (Weber
2011) We would also like to attempt to create our own heated pads similar to the
heated pads that we are purchasing, but our research for that part of the product
has yet to reach that extent.
3. Legality
3.1.Legal Issues
TemperaGuard will require a multitude of things to make sure our product stays
with our company legally.
5

First our company name TemperaGuard will need a copy right for its title. If we
are going to own the company and run it then we need to make sure no other
company can take our name.
Patent: Our product, since it is unique and distinct, will need its own patent. A
patent will ensure that once our product is created will not be able to be made
through other companies.
License: Of course according to the Small business administration we will need to
get a business license. In order to do this we will have to fulfil the checklist
required by the Missouri SBA.
http://www.business.mo.gov/BusinessRegistrationChecklist.pdf after this
registration is completed we will be able to start hiring and moving our business
forward.
Insurance: We would have to gain business insurance. This will be located
through insureon where we can specifically design an insurance based on our
companys needs. This will help protect our company in the instance of an
accident that may hinder our company in the future.
4. Customer/Market Research and Analysis
Our market is very specific, consisting only of marching band trumpet players.
Although we have a very specific customer base, our market is still quite large. Division
1 colleges have the average size of 275 members per band. Out of those members, 20%
is composed of trumpet players. We calculated that 20 Division 1 schools would benefit
from our product so that gives us a market of roughly 1,080 players just within Division 1
colleges. (K. Strickland, personal interview, March 31, 2014) Through Division 2
6

colleges, we found 40 schools that could benefit from our product. With an average of
150 students per band and an average of those is 16 percent, we found that our market
would be around 1,200 players in Division 2 bands. The Division 1 and 2 numbers were
the most consistent so those are the only numbers that we used to forecast our financials.
Competitive marching bands within Drum Corp International and high schools would
also benefit from our product, but the numbers were not nearly as consistent, making
forecasting difficult. (K. Strickland, personal interview, March 31, 2014)
5. Marketing Plan
5.1.Entry Strategy
TempraGuard will use a differentiation focus marketing strategy with two
different ways to reach its customers. One of the strategies will consist of marketing
to the basic consumer through our website and local communities. While the website
is already up and running, we will continue to improve it as the company develops.
TempraGuard will be set up a pay per click advertisement through well-known music
internet sites. While local efforts will be contacting Central Iowa school districts.
The second strategy will consist of marketing at industry trade shows. Trade shows
will help showcase our product to potential distributors of musical instruments. The
main trade show called National Association of Music Merchants (NAMM), which
consist of over 75% of the business transactions of instrument retailers and
distributors, will be our primary marketing target.
5.2.Pricing
TemperaGuard will use a partition pricing strategy because it needs two
components for the product to fully work. The valve guard itself will be priced at
7

a $15.99 and the one time use heated pads priced in bulk at $7.99 for 6-pack,
$12.99 for 12-pack, $19.99 for 24-pack, and $29.99 for 36-pack. These prices
will be discounted with large quantity purchases through high schools and
colleges depending on the quantity purchased.
5.3.Marketing Budget
TemperaGuard will focus on two marketing segments to reach consumers.
Marketing for individuals will be done primarily over the internet and local
communities. Another segment will be trade shows.
5.4.Distribution/Location
TemperaGuard headquarters will be based out of Ames, Iowa. Products
will be sold around Central Iowa to local high schools. Our online website will
help educate distributors of our products and complete contracts.

6. Competitor Analysis
6.1.Competitor Analysis
TemperaGuards product is unique in that there is little competition in our
market. We are the first of our kind to address the problem of keeping a constant
heat source to brass instrument valves during outdoor performances. Currently, a
standard valve guard is the only in production solution, however, heat is rapidly
lost due to the lack of any heat source so the valves rapidly lose heat and soon
freeze after. How marching bands have been coping with this heat loss problem
in the past is by taking Hand Warmers, putting them in something like a sock, and
then taping that around the valves to keep them warm. This alternative is still not
8

as effective because the sock is bulky and does not fit snugly on the valves, which
is inefficient when trying to keep heat. Another alternative solution is completely
flushing the horn of any valve oil, taking a mix of valve oil and vodka, and then
placing that in the horn. This solution does help from keeping the valve oil from
freezing, but it still doesnt keep the valves from sticking and malfunctioning.
The horn also needs to be flushed again immediately after the performance to
prevent damage to the instrument which is very time consuming.
6.2.Industry Analysis
The product will mainly be on a 3 tier system. It will go from Online store,
to distributor, to customer. We plan on marketing directly to our potential buyers
due to the importance of our high volume sales being from direct buyers such as
musical institutions and schools.
7. Management Team
In 2014 a team of 3 highly innovated college students came together with an idea to
help trumpet players around the nation. The idea started with Dylan having his own
experience in the marching band, his idea is what sparked the creative invention of
TempraGuard. With all of us having a background in the entrepreneurship class we
brought our minds together to make the innovative company. With Danh handling
financing, Dylan handing Research and development, and me handling marketing and
sales we got together to make a great team. With our creative minds and Dylans high
background and interest in the marching band we figured our idea would sky rocket
in the entrepreneur industry. Here is a little background on each of our leading Co.
Founders.
9

Individuals
Danh (Financing): I am from Kansas City and currently a senior at
Northwest Missouri State University, pursuing a double major in Financial
Management and Business Management. My goal to be involved in the company
is taking the role of the financing position. I believe with knowledge our team will
provide anything is possible. I have taken many finance classes and with my
background already starting in finance I was able to dive in to this role. I feel with
my skills I will boost the company to exactly where it needs to be and in the
future even farther than it expected.
Jake (Sales): I am also from Kansas City and am junior at Northwest
Missouri State University. I have had much experience in sales through my past 6
years of work solely in retail. I completed a great internship at Buckle Co. where I
was solely involved in sales, with this background already and a striving
personality my goal in the company will be to get the word out. I have a strong
determination to boost this company to the top that it can be where. A strong start
with a founder with an already experienced background in sales is key. If you
believe in your product you will be able to sell it.
Dylan (Research and Development): I am a student at Northwest Missouri
State University obtaining a Bachelor's of Science Degree in Business
Management as well as in Marketing. Although my studies are in marketing and
management, my real passion is music. Playing the snare drum in the Bearcat
Marching Band for 4 years, percussion, guitar, and saxophone in the Northwest
Studio Jazz Ensemble for 2 years shows my true love for music. My involvement
10

with the marching band is what sparked my initial idea for this product, and my
degree in marketing will provide the knowledge for marketing the product.
8. Financial Highlights
TemperaGuard is forecasted to reach profitability during first year. Our
sales have reached $20,000 in 2014, increasing to $120,000 in 2017. By 2017
we will have a gross margin of 89.23%.
9. Proposed Offering
TemperaGuard is seeking the amount of $75,000 for 10% of return on
investments.
10. Overall Schedule
Schedule
With the creation of TemperaGuard in early 2014 we can understand that
not a lot of sales and production will sky rocket at the begging. Our first milestone
is the creation of our website, we hope to have this up and launched by mid-2014
with the site fully up and running. Of course we will encounter some technical
difficulties as most companies do, so by the end of 2014 we want to have our
website full fastened and secure with easy access and understandable ventures.
Our primary objective following will be to reach out to close businesses and
potential customers that we can sell to and start creating local consumers. This
will start getting our name out and by mid-2015 we want to have a small customer
basis with the hopes of networking that will soon launch our business into the
next level. Since TemperaGuard is based online than the mile stones of finding
and renting a building for offices is not of the most important factors. We at
11

TemperaGuard are here to sell to distributors who will then relay our product to
potential buyers. By 2016 TemperaGuard will have its name in the music industry
with hopes of expanding nationwide; this will create more buyers and the
potential of even more distributors. Our main focus to start within the early years
of creation is to get our name out, we want the music industry to know that we are
here to help out musicians who face the exact problem that we are trying to fix.
Therefore our next milestone is firmly planting our feet into a nationwide
industry. Music, of course, involves a multitude of industries, companies,
products, and consumers. Therefore once the word gets around of TemperaGuard
we will be having a large amount of traffic for potential buyers and distributors.
Our goal is that by 2020 we will have a stable basis of distributors all over the
nation that will help boost and maintain sales; TemperaGuard is reaching to
everyone who needs our product not just major cities and large music companies.
We understand our product is there to benefit the buyer and that is our main goal.
Milestones
TemperaGuard has come up with a list of milestones that the business wishes to
complete. This chart will show what needs to be accomplished and by the date, it
will also supply the price that will come with it and who is in charge of doing said
task.
Milestone Start-end Date Budget Manager(s) Department
12

Complete
business plan
1/1/2014-4/2/2014 $0 Dylan, Jake, Danh
Strategic
Operations
Creating the
Website
5/1/2014-6/1/2014 $0 Dylan Online Operations
First Sale 6/2/2014-7/2/2014 $0 Danh Distributor Sales
Profitability 1/1/2015-9/1/2015 $0 Danh Accounting

Initial Discussion of risks and problems
With the utilization of our product one can speculate that problems and risks can
occur naturally. Nothing is ever guaranteed pure 100% safety so therefore you can always
expect a risk or a problem. The product itself is supposed to be an asset when playing an
instrument; it involves a source of heat that covers valves making the instrument easier to
play. This is where the risk comes in; having any electronic device you can believe
malfunctions may occur. A major risk we have associated is the possibility of the product
over heating causing instrument damage or worse physical injury to the customer.
Electronics have always had problems and this is one of them. Another risk associated
with the product is the possibility of it not working at all; having electrical issues with the
product could cause it to cop out during a performance which would not be good.
Another risk is the product causing problems with the instrument. The idea of the product
is to help instrument proficiency in cold weather; unfortunately if the weather is to cold
13

and the product is making part of the instrument to hot then a build of condensation can
occur. If a buildup of condensation occurs than this can cause major damage in how the
instrument handles and sounds. This would put the product at inefficient and irrelevant.


















TemperaGuard Income Statement
14

TemperaGuard
For 2014 through 2018




REVENUE 2014 2015 2016 2017
Gross sales $20,000 $48,000 $70,000 $120,000
Less sales returns and allowances 1,000 1,200 1,500 2,000
Net Sales $19,000 $46,800 $68,500 $118,000

COST OF SALES
Beginning inventory $0 $646 $674 $620
Plus goods purchased / manufactured 3,385 5,380 7,580 12,955
Total Goods Available $3,385 $6,026 $8,254 $13,575
Less ending inventory 646 674 620 650
Total Cost of Goods Sold $2,739 $5,352 $7,634 $12,925

Gross Profit (Loss) $16,261 $41,448 $60,866 $105,075

OPERATING EXPENSES
Selling
Salaries and wages $0 $0 $0 $0
Commissions 0 0 0 0
Advertising 1,500 2,000 2,500 3,000
Depreciation 0 0 0 0
Other 500 600 600 700
Total Selling Expenses $2,000 $2,600 $3,100 $3,700

General/Administrative
Salaries and wages $0 $0 $0 $0
Employee benefits 0 0 0 0
Payroll taxes 0 0 0 0
Insurance 2,000 6,000 7,000 7,000
Rent 8,000 8,000 9,000 9,000
Utilities 2,000 2,000 2,000 4,000
Depreciation & amortization 3,000 4,000 4,000 5,000
Office supplies 1,000 1,000 1,000 1,000
Travel & entertainment 300 200 300 300
Postage 100 200 250 400
Equipment maintenance & rental 100 200 300 350
15














TemperaGuard Balance Sheet
Interest 0 0 0 0
Furniture & equipment 400 475 550 750
Total General/Administrative Expenses $16,900 $22,075 $24,400 $27,800

Total Operating Expenses $18,900 $24,675 $27,500 $31,500


Net Income Before Taxes ($2,639) $16,773 $33,366 $73,575
Taxes on income 22 32 26 28
Net Income After Taxes ($2,661) $16,741 $33,340 $73,547

Extraordinary gain or loss $0 $0 $43 $0
Income tax on extraordinary gain 0 0 12 0

NET INCOME (LOSS) ($2,661) $16,741 $33,371 $73,547
16

TemperaGuard Corporation
For 2014 to 2017
ASSETS 2014 2015 2016 2017
Current Assets
Cash $2,000 $57 $59 $64
Net accounts receivable $19,000 $46,800 $68,500 $118,000
Inventory $3,385 $5,380 $7,580 $12,955
Temporary investment $0 $0 $0 $0
Prepaid expenses $0 $0 $0 $0
Total Current Assets $24,385 $52,237 $76,139 $131,019
Fixed Assets
Long-term investments $42 $43 $43 $46
Land $0 $0 $0 $0
Buildings (net of depreciation) $0 $0 $0 $0
Plant & equipment (net) $300 $375 $450 $600
Furniture & fixtures (net) $100 $100 $100 $150
Total Net Fixed Assets $442 $518 $593 $796
TOTAL ASSETS $24,827 $52,755 $76,732 $131,815

LIABILITIES
Current Liabilities
Accounts payable $16,400 $21,400 $23,550 $26,700
Short-term notes $2,400 $2,500 $2,600 $2,800
Current portion of long-term notes $1,400 $1,400 $1,400 $1,500
Accruals & other payables $1,400 $1,400 $1,400 $1,400
Total Current Liabilities $21,600 $26,700 $28,950 $32,400

Long-term Liabilities
Mortgage $0 $0 $0 $0
Other long-term liabilities $4,430 $4,850 $5,270 $5,760
Total Long-term Liabilities $4,430 $4,850 $5,270 $5,760

SHAREHOLDERS' EQUITY
Capital stock $3,000 $3,000 $3,000 $3,000
Retained earnings ($4,203) $18,205 $39,512 $90,655
Total Shareholders' Equity ($1,203) $21,205 $42,512 $93,655
TOTAL LIABILITIES & EQUITY $24,827 $52,755 $76,732 $131,815

TemperaGuard Cash Flows
17

2014 2015 2016 2017 - - Total
Beginning Cash Balance $2,115 $25,735 $65,155 $148,200 $148,200
Cash Inflows (Income):
Accts. Rec. Collections 0 0 0 0 0
Loan Proceeds 0 0 0 0 0
Sales & Receipts 20,000 48,000 68,500 118,000 254,500
Other:
0
0
Total Cash Inflows $20,000 $48,000 $68,500 $118,000 $0 $0 $254,500
Available Cash Balance $20,000 $50,115 $94,235 $183,155 $148,200 $148,200
Cash Outflows (Expenses):
Advertising 1,500 2,000 2,500 3,000 9,000
Bank Service Charges 0 0 0 0 0
Credit Card Fees 0 0 0 0 0
Delivery 0
Health Insurance 0 0 0 0 0
Insurance 2,000 6,000 7,000 7,000 22,000
Interest 0 0 0 0 0
Inventory Purchases 3,385 5,380 7,580 12,955 29,300
Miscellaneous 0
Office 0
Payroll 0 0 0 0 0
Payroll Taxes 0 0 0 0 0
Professional Fees 0 0 0 0 0
Rent or Lease 8,000 8,000 9,000 9,000 34,000
Subscriptions & Dues 0
Supplies 1,000 1,000 1,000 1,000 4,000
Taxes & Licenses 0
Utilities & Telephone 2,000 2,000 2,000 2,000 8,000
Other:
0
0
0
Subtotal $17,885 $24,380 $29,080 $34,955 $0 $0 $106,300
Other Cash Out Flows:
Capital Purchases 0
Loan Principal 0
Owner's Draw 0 0 0 0 0
Other:
0
Subtotal $0 $0 $0 $0 $0 $0 $0
Total Cash Outflows $17,885 $24,380 $29,080 $34,955 $0 $0 $106,300
Ending Cash Balance $2,115 $25,735 $65,155 $148,200 $148,200 $148,200



18























19

Citations

Weber, Scott. 2011. Valve Guard Template. Retrieved March 20, 2014, from
https://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnxjb29sbXVza
WNsZXNzb25zfGd4OjI3NWVjMWJlYTAwNmJlMDQ
Strickland, Kathryn. (2014, March 31). Personal interview.
Instant Mini Hand Warmer. (n.d.). www.alibaba.com. Retrieved March 25, 2014, from
http://www.alibaba.com/product-detail/Instant-Mini-Hand-Warmer-2012-Best_598536061.html