ToyLearn has been an exciting start up company. They have developed educational tools that engage and entertain children. The company has been founded by the husband and wife team of David and Jen Funster and is registered as an Ohio S-Corp. ToyLearn will be profitable by the end of year one and will have a steep increase in sales for the first several years.
ToyLearn will initially offer three educational toys. NumberToy is the first, which teaches number skills to children. LetterToy, as its name suggests, is a product that helps children learn the alphabet quickly. PhonicToy is the third product. It looks like a mini-PC and teaches math and phonics skills. The products are designed to help young people develop core skills. They are also fun and easy to use. New products are currently in development by the in-house department.
ToyLearn discovered three key keys to success, which are essential for the long-term sustainability of the business. The first is to create educational and engaging toys. Second, financial controls are essential. The final key to success is listening to customers, creating feedback mechanisms for product improvement.
ToyLearn identified two customer segments it will pursue. The first group consists of individual customers. These are parents or grandparents who are purchasing the product for their child. The market segment is expanding at 8% annually and currently has 3354,430 potential customers. Wholesale purchasers, which are usually organizations that buy the products for clients, is the second market segment we will address. These companies are often a nursery/preschool or care center. The segment is growing annually at 10% with 702,335 possible customers.
ToyLearn’s potential for success is ensured by its strong leadership team, which includes Jen Funster and David Funster. David, who heads product engineering, graduated at the University of Rochester in Engineering. After school David went to work for HP in their product development department for a number of years. David was a game developer at Nintendo when he left HP. David is a product of these experiences as well as his education. They have provided him with valuable skills to help ToyLearn expand its market share based on the quality and value of its products. Jen, the other half of our management team, earned her Masters of Education from Case Western Reserve University. Jen brings extensive knowledge in educational tool design to ToyLearn.
ToyLearn has conservatively forecasted sales of $367,000 in year two. In year three, sales will reach $475,000. ToyLearn’s success can be attributed to the combination of exceptional product development, seasoned management and the ability to spot a market opportunity.
1.1 Objectives
- Create a profitable company.
- Make innovative toys for education.
- Improve the learning curve for children through the use of interactive toys.
1.2 Mission
ToyLearn’s goal is to provide the best educational toys. We will be more successful if we can help more children to learn basic functions through our toys.
1.3 Keys for Success
- Develop creative, educational, engaging toys.
- Adopt strict financial controls.
- Pay attention and listen to your customers.