Offering Summary

Offering Summary

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Shares Authorized for Issue:		100,000
	Current Shareholders
	Name	Shares
	Founder	20,000
	Other Original/Founding Investors	17,500
	Total Shares Issued	47,500
	Shares Remaining	42,500
	Offering Description
	1 Unit =	2,500	shares
	Share Price =	15
	Maximum Units Available =	21
	Unit Price	37,500
	Desired Initial Subscriptions	7
	Funds available at desired subscription	262,500
	Funds available if fully subscription	$787,500

General Information About CraftSmith Golf
View an Executive Summary go Back to Cleeks

James Smith, the founder, is the former men’s golf coach at the University of Texas at San Antonio where he led Roadrunner program to a nationally ranked position. This was accomplished by using sports science to improve upon traditional coaching. CraftSmith Golf was created in 1990 as a proprietorship when Mr. Smith opened the Gulf Coast Golf Academy (GCGA). Custom clubmaking services were added to the teaching programs. Mr. Smith is a Professional Clubmakers’s Society, Class A certified clubmaker. CraftSmith Golf was successfully active in this form for twelve years. In 1995 CSG ventured into the design, manufacture and marketing of proprietary, original designs golf clubs. The form of business converted into CraftSmith Golf Inc., a Texas close corporation.

Our dominant, driving philosophy is to satisfy an unfulfilled need for more "user friendly" clubs specifically targeted at poorly skilled, recreational golfers. This "niche" market actually represents 80+% of more than 25,000,000 American golfers. Approaching the game from this perspective is an absolutely unique concept. More than twenty new design features, improvements to existing design features or combinations of design features allow CraftSmith clubs to be as close to "idiot proof" as any club in the history of the game. Our clubs break through the clutter of existing and traditional designs without being so radical in appearance they cannot be sold.

Evidence for Success: A general rule of business is to be first, better, different or cheaper. We sell better, different and cheaper. While golf is obviously a crowded market, there is plenty of opportunity for new, unique or better products because golfers are always seeking products that will improve their game. In July of 1995 CraftSmith Golf introduced the "FairwayCleek", for test marketing. While our test marketing was limited, it did indicate a strong acceptance of our concepts and resulted in 60-70% of all response (1-800 telephone) inquiries being converted into sale. More importantly, 90+% of all sales resulted in a customer who was well satisfied with our product. More the $300,000 of these clubs was sold in a three-month period through a single Golf Magazine ad and the Herrington Catalog. This is especially important because the original FairwayCleek is our least marketable club.

Our original concept included five utility irons and two putters which form the "Long Approach System" and the "Greenside Scoring System". The FairwayCleek, MidCleek and ApproachCleek clubs are long hitting approach irons beneficial to players of every skill level. Two additional clubs, the BaffingCleek and the TejasCleek, form our Greenside scoring system.

CraftSmith designs have been developed using the cutting edge, parametric/adaptive, 3-D surface modeling capabilities of Pro/Engineer CAD/CAM. Additionally, we have used the Sander’s Modelmaker II rapid prototyping system for concept modeling and direct casting of wax prototypes into steel clubheads. This same system is also used for rapid tool making (mold patterns for direct casting of soft tooling). We have the same capability to perform a number of FEA, Virtual Prototyping and 3-D Simulations for kinematic analysis as much larger, branded OEMs.

Marketing: Four primary media will form the nucleus of our direct distribution, database marketing strategy: the Internet, direct mail, magazine ads and cable television ads. These media will be supported by trade shows, target market demonstrations and a public relations campaign. Further, regional test marketing will be conducted to determine media and message effectiveness before large scale marketing begins. We will use catalogs and some green grass, custom fitting centers for indirect distribution.

Manufacturing: CraftSmith Golf will operate from a warehouse/office type facility of approximately 1500 s/f during Phase I of our plan. After 9-12 months, we will need to the need to relocate to larger facility. Sites of this nature are readily available on a short-term lease. We will choose from, then deliver our investment molds to a casting vendor who can meet exacting weight tolerances and who provides completive pricing. The finishing process, assembly and packaging of our products can be performed by unskilled labor after a minimum training period. This labor source is readily available and very motivated to work in a humanistic work environment for a better than competitive wage. Additional manufacturing labor can be added as needed. With some vendor assistance, CraftSmith Golf has the proven management skills to manufacture and market our products. Our business plan calls for:

Phase I ... Pre-Production: Includes the final prototyping, mold making, casting and assembly of initial inventory; the improvement of our web site to make it more search engine and artistically friendly and the placement of regional advertisement. We will work from the green back to the tee when introducing each club … putters, then greenside scoring clubs followed by the long approach clubs (Models A and B). All of these tasks can be completed within three months.

Phase II ... Regional Marketing of the Utility Line and product expansion into full sets of clubs: Includes regional marketing for the full line of utility clubs and putters; final prototyping and mold making for three full sets of irons … HackSticks (adaptation of TejasCleek greenside scoring club) for beginning and poorly skilled players and MidStiks and ProStiks (adaptation of original design) for intermediate and highly skilled players. We will purchase generic designs and custom logo metal wood drivers to supplement the utility line until future CraftSmith designs can be brought on line.

Phase III ... National Marketing: After the right mix of media and message has been established on a regional level and all clubs, to include metal woods are available, we will seek additional funding for large scale, national and international marketing. We will continue to add new designs which are now in development.

This plan is a restart of our 1995 effort. Shortly after the introduction of our FairwayCleek, we lost our initial investors. A legal confrontation followed. This dispute was mediated to a favorable settlement where Mr. Smith retained control and the disputing investors relinquished all claims to the business. Unfortunately, this dispute put CraftSmith Golf, Inc. out of business. Today, after having saved and reinvested more money, Mr. Smith is seeking new investors to complete the goals of this venture.

There is every reason to believe investors will have all of their money out of the deal within 18-24 months. Founding investors will also have many non-monetary benefits as motivation to participate in this venture! For immediate, additional information, please visit our website.

In considering this possibility, think in terms of Apple Computer or more directly related to golf, Odyssey putters or Adams golf. While this deal will not rival Apple in total size, the potential for immediate, exponential growth is very large. The story of Odyssey is that of a product that made a big splash for one very important reason ... they sell premium quality products. Finally, the Adams model shows us how a strong willed individual with powerful ideas can make a sustained effort and end up succeeding!

View an Executive Summary go Back to Cleeks