Regional Distributor startup with core stock only estimated at 150 to 200 items: estimated initial capital investment of $20-$25,000 US dollars. This will be modified based on several factors, including amount of core stock brought in per item, source of items (many can be provided from the reserves or First Nations based operations, for instance, herbs and herbal teas, etc.). Over time, of course, the core stock can be expanded to include many more items, including foods, and pharmaceutical items, etc., to cover all the basic needs of the First Nations communities.

For purposes of model example, we will assume all the initial 150-200 items are going to be supplied (at least temporarily) by Lotus Light Enterprises, a major wholesaler of herbs and supplements in the USA, although it is anticipated that this will only be a short term arrangement on many of the items as it becomes possible to move the supply line closer to First Nations manufacturing opportunities. A "pro forma" core stock order is attached for exemplary purposes with a value under $12,000 US. Specifics of each distribution center will be worked out on a case by case basis.

Regional Distributors will turn around and supply small "micro businesses" or "reserve" storefronts, or apply to supply contracts to the Canadian Government under the 3% reserve rules.

By bringing the products in at wholesale (less any occasional or promotional incentives we negotiate and advertise to the regional importer/distributors) through the reserves, there is a savings on taxes, excise and duties as against standard commercial "health food stores".

The micro businesses will also operate on a lower overhead, and employees will not have the withholding taxes, etc., as in the regular economy. All of this provides approximately 20-30% potential cost savings to the end user of the products.

Higher savings can be effectuated as the promotional allowances of "specials" are factored into the costing of the products.

In order to ensure long term success of the project, there are a number of support activities that will be part of the basic "package" that the regional distributor/franchisee receives.

I. PACKAGE TO INCLUDE:

       1.) Core inventory (modified per needs of specific community)

       2.) Training on use and application of core inventory

      3. ) Basic business skills training

      4.) inventory control

      5.) store management

      6.) reordering

      7.) money management

      8.) employee issues

      9.) laws, red tape and dealing with various governments

    10.)Simplified Accounting (note that our suggestion for organizing the regional distributor business will include       use of computer and computerized accounting/invoicing/inventory control functions using a simple accounting package)

    11.) Money Management Issues: Reviewing all the basic requirements of running a business and reviewing cash flows, managing use of cash, investing in growth and expansion, etc.

    12.) Preparing micro loan applications

    13.) Dealing with business licenses and other red tape (import restrictions, health inspections, sanitary situations, health claims, medical claim issues, etc.)

    14.) Outreach/Marketing: How to let people know what you are doing and get them interested

    15.) Education: helping people to use the products effectively

    16.) Diet, Health and Whole Foods Seminars: upgrading the core diet of the people is the single most important step in achieving and maintaining basic health

    17.) Herbs and Supplements role in health maintenance

    18.) Training Seminars

    19.) Community Education Seminars

    20.) Other products/expansion from core list (note that Lotus Light alone stocks more than 7000 different products and any of these can be purchased on the same basis as the core inventory, although it is not recommended to do so in the initial phases of startup due to requirement to concentrate the funds on the primary needs. However, once there is a view to expansion, or if there are special order needs, these can be added at any time to any order without minimums or other requirements. For instance, if a particular herb, not in the core inventory is needed for a specific reason, it can be added to any order and supplied to the distributor.

    21.) Outreach to the "non First Nations" peoples: over time the storefronts will become more substantial and their ability to offer quality products at more reasonable prices will become a sales advantage to the First Nations businesses, which can be used to attract people to visit the reserve store and do business with the First Nations communities. This provides the opportunity to provide a positive impression about the industry, culture and traditions of First Nations people, and an opportunity to build inter-community relations on a positive basis. This opportunity will, also, be net worked with other communities of the human family who would like to join First Nations in these developments.

Out of the above, with discussion, modifications, etc., some core inventory lists can be pulled together and within these, "essential" items can be supplied to all regional distributors, while they "mix and match" to build up the rest of their core lists from the available extra choices. In terms of eventual expansion, the items listed above would provide good areas for review in the catalog for eventual additions to stocked product lines.

Any products sourced or manufactured on a particular Reserve or Reservation will of course be provided for their own needs and not purchased externally. In addition, these products can be supplied to the main distribution facilities for distribution to other locations, thereby creating the economy of scale and market access needed for products developed ineach area.