LIG ASSETS INC BUSINESS PLAN

Transcription

1 2010 LIG ASSETS INC BUSINESS PLAN CREATING YOUR DREAMS FROM SMALL BEGINNINGS Exhibit 2.1

2 Executive Summary In 2007 Jeff Love created a real estate investment company located in Dallas, TX which purchased and sold homes throughout the United States. He chose to locate our office in the area of most revenue potential. He targeted, the Dallas and Houston areas, which showed stability and growth. In the year of its inception, his company grossed over $20 million in sales. In 2008, sales were $15 million; the minor decline was due to factors in the broader economy. Jeff spent much of the fourth quarter of 2008 developing a slightly different business model to compensate for changes in the marketplace. Later, in 2009 as a response to the failing market we shifted from residential real estate to commercial and in 2010 began due diligence on an oil and gas concession. In order to complete the transition, Jeff Love thought in his best interest to form a new entity in order to approach a different market, thus forming LIG Assets Inc. LIG became a proactive, focused exploitation and production company that is committed to employing technical and operational expertise in the geologic trends generating hydrocarbons for a demand-driven market while acquiring new concessions. Therefore, our goal for 2011 is to increase profit from 2007 levels by over 50%. We know this goal can be achieved through our strong financial position, ability to leverage commercial estate holdings, new upcoming oil and gas projects, and LIG Assets Inc. becoming a publicly traded company by mid-year ) Objectives The five major objectives for our business plan are: (1) Purchase and sell at least 10 commercial properties a year. (2) Make 50% profit on all purchases. (3) Increase sales. (4) LIG will exploit the oil and gas concession and its potential in becoming a powerhouse in the overseas hydrocarbon market. (5) Flip the concession for more than double what it is worth. (6) LIG will then reinvest money in future oil and gas opportunities or LIG can decide to keep cash flow of $150 million for other business opportunities. 1) Mission beginnings We plan to create investment income through the purchasing and reselling of distressed commercial properties. We will target 100% profitability by performing cosmetic or functional improvements to properties. Once a property is acquired, our plan is to renovate it to match or exceed current market standards. We believe these renovations will significantly increase the value of the property and make it available for sale to a focused customer marketplace. We believe the process from start to finish takes six months to a year on the average. LIG Assets Inc. (LIG) will also serve the overseas oil and gas industry by providing over 1 million barrels of crude oil to prospective buyers from a well-established hydrocarbon region in South America. Being a sales driven and crude oil producing firm; LIG will emphasize the support of their product and their customers with a high level of production quality and innovative means of increasing profitability in the already profitable concession. LIG will accomplish this by purchasing the concession from an undisclosed company for the amount of Five Hundred Thirty Million Dollars (USD $ 530,000,000.00). The firm will exponentially grow to meet an unquenchable customer demand by expanding drilling operations and capitalizing on untapped gas reserves that encompass the parameter. 2

3 2) Keys to Success The keys to success in our business plan are: (1) Advertisement-all forms including website, word of mouth, satisfied clients, brochures, newspaper, commercials, radio, business cards, stationary, flyers, postcards, and signage. (2) Buying below 50% of the market value, charging a very competitive interest rate, and selling 5% below market value. (3) To continue to expand the number of properties owned and maintained, while also increasing the level of profits for us and our investors. (4) We believe our growth will be determined by how accurately and efficiently we are able to implement the facets of this business plan. (5) Forming strong relationships with banks and promising investors. (6) LIG is negotiating with the company to keep the current operator of the oil field for an agreed 6 month time frame (with an opportunity for a long term extension). LIG will be free to pursue commercial real estate back home without interruptions in schedule. (7) Contacting medical facilities and providing samples of the product for testing. 3) Ownership LIG Assets, Inc. was formed on October 14, 2008 as a Nevada corporation. We are owned and operated by our sole officer and director, Mr. Jeff Love. Jeff Love started in the construction business and has six years of experience. He has bought and sold hundreds of properties and run several companies. Mr. has lived in the area for 26 years. 4) Products and Services 1. Real Estate Our principal service consists of a plan to sell commercial real estate in a targeted market is $2 million plus. Mr. Love is committed to success in the commercial real estate market and adheres to the strict rules handed down by the Texas Real Estate Commission. We are currently focused on renovating downtown Dallas to its former fame by rehabilitating a few historical buildings and creating a single and family friendly atmosphere. These specific buildings will be designed and fashioned into affordable lofts, shopping centers and new entertainment not seen in Dallas before; such as a movie theater, bowling alley and adult arcade. Our high level of commitment will enable us to attract top professionals as sales associates and clients looking to buy and sell commercial real estate. 2. Commodities The commodities industry allows an opportunity to invest in various types of goods such as diesel fuel, crude oil and sugar, cement and so forth. Through the many investment opportunities LIG has had the past it has become a leader in the ability to purchase and sell commodities from qualified buyer and sellers. A. Gas -- LIG is investing and searching for current producing gas developments throughout the U.S. and overseas to increase our market and establishing a foothold in the industry. The gas division is based on lease structures that allow us to use the stranded and flare gas in the 3

4 concession to create previously non-existent value and revenue. In the lease structure LIG will perform as an operator (included in the cost of the lease) who manages all of the services needed to run a productive gas business. B. Oil -- The oil division will focus on petrol production from hydrocarbon fields and drilling operations. Another source of revenue in this venue is lease contracts. Topping plants will further increase the value of crude oil. 3. Distribution -- LIG will provide home medical equipment companies, home health nursing agencies, and medical equipment manufacturers with Simple Step Medical Equipment Cleaner & Disinfectant used on CPAP/BIPAP machines, Masks, tubings, Humidifier, oxygen cannulas, concentrators, filters, in home hospital beds, wheelchairs, crutches, oximeters and finger probes, tens units and wires, apnea monitors, EKG machines and leads, and can be used on any other medical equipment that is used by patients. 4. There will always be an open line of communication between buyers and management via our web page and a 24-hour, call-in answering service. Web Plan Summary Our website will be the virtual business card and portfolio for us, as well as its online "home." The website is simple and well designed. It will stay current with the latest trends and provide an informational resource to the customers and a portal to our products and services. We have a website with the ability to obtain information about the company, submit questions or applications browse current listings. Website Marketing Strategy (1) By visiting our website customers can: (2) Ask questions (3) Access listings (4) Contact Info (5) Learn more about us 5) Development Requirements The website will initially have a few technical resources. As the website rolls out future development such as newsletters and information, a technical resource may need to be contracted to build the track able downloadable document and newsletter capabilities. 6) SWOT Analysis The following SWOT analysis captures what we believe are our key strengths and weaknesses, and describes the opportunities and threats facing us. 4

5 7) Perceived Strengths (1) Knowledgeable and friendly staff. (2) Great location with a positive and attractive, inviting atmosphere (3) Clear vision of the market need. (4) Financial backing from high profile investors 8) Perceived Weaknesses 1. Shortage of finances due to mortgage crisis 2. Challenges of the seasonality of the business. 3. Lack of money for purchases 9) Perceived Opportunities 1. Growing market with a significant percentage of our target market still not knowing we exist. 2. Strategic alliances offering sources for referrals. 3. By taking advantage of foreclosed or bankrupt commercial estates were able to sell at a lower cost than market. 4. Entry into the oil and gas industry. 5. Finding new oil and gas concessions to buy. 10) Perceived Threats 1. We believe the real estate market is going back to normal. We can t buy as cheap in a good market, resulting in less profit. 2. Competition in the market. 3. International politics or rumors of war could slow down concession production. 11) Sales, Marketing Strategy 1. Advertisement plans- brochures, newspaper, commercials, web, radio, word of mouth, satisfied customers. 2. Press release of concession purchase. 3. News coverage on the oil and gas purchase. 4. We plan to locate and buy foreclosed and bankrupt commercial estates. 5. We plan to assist in relocating clients to their new destinations and/or assist clients relocating to our area in their business search. 6. We plan to offer an excellent referral service anywhere in the United States. 7. We must be in touch with the needs and desires of our clientele in order to best attract a consistent flow of incoming residents. 8. We plan to offer customer service awards for those who best exemplify our commitment to customers. We will also award existing customers for referring new clientele to us. 5

6 9. It will be important to these types of transactions to have cash on hand to move quickly when opportunities present themselves. 12) Target Segment Strategy A. Real Estate Presently, LIG is finishing due diligence for 3 buildings throughout downtown Dallas. If the acquisition follows through as anticipated the buildings will be funded by stock capital. Outside franchisers and architects will be brought in to develop and run entities. LIG will target the Dallas Downtown tourist, residents and works making a off the different venues brought in. B. Oil and Gas The potential purchase of an overseas concession, will allow LIG will to venture out to other opportunities in the gas and oil industry. After raising capital from established companies we will proceed to finalize the contract with the oil and gas company. Immediately, after purchasing the block, we will also finalize contracts with companies who have leased ready to produce topping plants, thus generating instant capital for LIG. These oil fields will not only self finance current operations, but future projects that will continue to increase profitability. LIG will contract the current owners to be responsible for continued hydrocarbon production, as well as the continuous exploration of the concession. C. Distribution LIG will raise its horizons by investing in Jones Products Company LLC. Product, Simple Step Medical Equipment Cleaner & Disinfectant Spray and wipes. By purchasing it through stock LIG Assets Inc. will own 51% of Jones Product Company. LIG will contract marketers to increase sells and help the distribution, pushing for worldwide recognition. Frances Jones, CEO of Jones Product Company will continue to run operations from headquarters. 13) Management Summary We depend on an organized division of responsibilities in order to run an efficient, diversified enterprise. Main decisions and responsibilities will be made by the CEO. We will focus on maintaining high quality and a cohesive business entity. Top division managers will be given specific responsibilities such as marketing, finance, strategic management, or research and development. We will be organized and managed to generate very high levels of customer satisfaction. We will create a working climate conducive to a high degree of personal development and satisfaction for employees. Job descriptions will be developed to identify necessary competencies and skill sets. Team oriented professionals with common goals will be hired. We will conduct weekly staff meetings to discuss ideas, suggestions, and operations. An annual motivational seminar will be held and we will develop an employee recognition program. As the business grows, we will offer an employee benefit package to include health and vacation benefits for everyone. 14) Personnel Plan We currently have less than 10 employees. Employees have delegated tasks based upon their specialty. Acquisition handle all due diligence, Investment Relations will mediate between LIG and all entities and sales will establish current and future real estate. Every six months, 6

7 the CEO will assess the results of these tasks, and the personality of the employee involved, to determine promotion and/or salary issues. This, coupled with the teamwork and excellent marketing programs we plan to provide, gives us what we believe is a strong recipe for success. 7