Rosafarbenes Nilpferd & Sons Engineering, Inc. (RNSE) has established a strong foothold in a niche technology market for Product Category One* devices. The potential market demand for 180 million units is far greater than the current supply and is increasing at 22% per year. Recent profits and sales growth at RNSE show the company’s ability to profit from this boom market. Sales are projected to grow from the first quarter of Year 1 total of $280,000 to $1,600,000 by the end of the first year, and to exceed $14 million by the end of the third year of operations. Similar growth patterns will result in significant increases in before-tax profits by Year 1, and continued increase through Year 3. These results can be achieved without the need to increase fixed assets. A relatively small banking facility will be needed in the form of a line of credit of $150,000-$200,000 to support the necessary growth in current assets, half of which will represent prime corporate receivables.
*Note, Propriety and confidential data have been removed or disguised from this sample plan.
1.1 Objectives
While working to develop Rosafarbenes Nilpferd & Sons Engineering’s image as the premier maker of Product Category One devices with the latest cutting-edge technology, the measurable objectives are:
- Complete work to make RNSE’s products compatible with at least five of the most popular first-tier operating systems (by end Month 5, Year 1), and at least three others within one year.
- Complete a thorough website redesign and get out a quality mailer to 300 Value Added Resellers (VARs) (by end Month 6, Year 1).
- Based on a professional media analysis, create an effective advertising campaign for trade publications that targets the telecommunications and industrial automation sectors.
- By networking and partnering operating system developers, technology manufacturer, and other industry actors, you can arrange at most five banners/links in a reciprocal arrangement with key market-related sites.
1.2 Mission
Rosafarbenes Nilpferd & Sons Engineering’s mission is to create cutting-edge Product Category 1 solutions to appliance and equipment manufacturers who are often under pressure due to technology’s rapid pace to bring their products to market quickly. RNSE does this by having a small “:think tank-style technical team and outsourcing manufacturing. It also keeps a marketing offering that caters to the most demanding Product Category One needs, while leaving the simple, high-volume, price-sensitive market requirements to the competition.
Notice: The sample plan has not included confidential or proprietary information.
1.3 Keys to Success
The demand is so great that there is no way to stop it from growing.
- Contract manufacturing of devices is possible, provided you have enough components. Ordering sensitive components requires careful planning. To support long inventory periods, sufficient financing is required.
- Avoid asking for time-consuming inquires from people outside your chosen market. Everyone is interested in Technology 1. It is important to sort through all inquiries and to respond to those within the sales and marketing parameters. These include needs between 100 and several hundred units that are designed for high-ticket, sophisticated equipment.
- To build brand recognition for reliability and cutting-edge technology, you must act quickly. The market need for Product Category 1 devices is potentially so large that more competitors can be expected. It will be difficult to establish an image in the future.