PART 1 - MARKET DESCRIPTION

The Company's primary target market will be those individuals wanting to start a home-based business. Our secondary market will be those individuals wanting to open a business in general.

In March 1995 edition of Business & You Magazine, "Link Resources" estimates the number full-time and part-time home-based businesses in United States has grown to 25 million. In the same article, it is estimated that home-based business owners spend $401 billion dollars each year on office supplies, consulting, office equipment, training material, computer software, legal fees, correspondence, and resource material.

The most important statistic, however, is the number of new business start-ups in the United States each year. According to "Link Resources" over 500,000 new small businesses are started each year. In addition, the number of U.S. business start-ups each year represent 5% of the actual number of people who entertain the possibility of starting a business. Therefore, 10,000,000 people in the United States each year will purchase some sort of reading material on "how to start a business". With an average person spending $100 on such material, the total US industry is valued at 1 billion dollars.

A survey administered by "Head Office at Home", a trade magazine, concludes the number of home-based business is certainly on the rise. According to the survey, the main reasons for starting a home-based business are ; - to be their own boss, to make positive changes in their lives, to have more control over their lives and to enjoy more control over their financial affairs.

A more recent survey conducted by "The Management Specialists" concludes the following elements lead their "survey group" to open a home business; - technological advancement in equipment that enables low-cost communication, the tremendous increase in the size of the service sector, the cocooning trend, and the desire to combine career and family more intimately.

In the "Good and Levy Study", the most frequently cited advantage of working at home was "more control over ones work schedule". Wearing more comfortable clothing, avoiding commuting and not having a boss close by were other frequently noted pluses.

Management feels the home based business segment is currently in its growth stage, thus allowing for many future opportunities. This statement is based on the following facts and trends;

• capabilities of today's and the future's technology - individuals do not have to leave their homes to "communicate" to the world;
• the trend towards knowledge-based products;
• lower costs associated with operating out of a home (incremental rent expense is nil);
• More company's will recognize this segment as a major opportunity, thus creating more home-based training products (IE introducing the viability of owning a home-based business to more individuals);
• The increase seen in subcontracting functional area tasks to self-employed workers, thus alleviating the cost of hiring one or several full-time staff member (s); and
• highly skilled managers have and will continue to fall victim to downsizing;

Whatever the reason for the increase in home-based businesses, "they are the fastest growing segment of the North American economy and leading the boom toward increased self-employment activity" asserts W.S. Good and M. Levy of the University of Manitoba in The Journal of Small Business and Entrepreneurship.

Future Opportunities:
J&B has many concept ideas for future product development. Two major initiatives, however, have been classified as Urgent. 1) enhance our distribution network, and 2) modify the Company's initial product so that it targets existing home businesses.