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Businnes Plan

Eye Surgery Equipment Maker Business Plan


Eye Surgery Equipment Maker Business Plan


This business plan is designed to present NovOculi, Inc., to potential investors, and to raise equity capital necessary to start production and continue research and developing its patented products.

The Company

NovOculi, Inc., is a new company that plans to market and develop ophthalmological surgical techniques and tools. During the past two years, NovOculi’s principals have had extensive experience with refractive correction techniques (both laser and non-laser based). The principals have begun to test a new method of incisionless refractive treatment called NICS (Noninvasive Corneal Sculpting br>).

All current refractive procedures, including LASIK and PRK, require the destruction of at most a portion the protective epithelial layers over the cornea. This can lead to complications. The principals have developed an effective method that involves iontophoresis using an ionic drug and a wavelength -specific laser. It allows for efficient refraction with minimal epithelium damage.

NovOculi plans on using NICS to profit from the market opportunities for market expansion and penetration within the laser refraction industry, which is experiencing a nearly doubled demand each year.

Based on financial projections that were prepared by the company’s management it was estimated that equity investment would be required in order to start the company’s operations. The funds will be used in order to test, market, and produce NICS as well as provide initial capital for the first 2 years.

Market Potential

There is a large market for laser refractive surgeries. It is estimated that approximately 54% of the U.S. population (~162 million) has refractive errors, approximately 90% of which are eligible for correction using current techniques or those on the near horizon (Federal Air Surgeon’s Medical Bulletin). In contrast, only 900,000 Americans have had LASIK (the most popular laser correction technique) as of two years ago. This represents just 0.6% market share, leaving 99.4% untapped. (&#8220/Bye-Bye glasses, EyeCare Online). Further, the demand in laser refractive is nearly doubling each year (&#8220/ByeBye Glses,&#8221/ EyeCare Business Online).

The company has contacted nine of the leading ophthalmological medical institutions in the U.S. Seven out of nine leading ophthalmological medical institutions in the U.S. have expressed an interest in collaborative research. They also hope to commercially perform NICS once it becomes available. John Hopkins University (Harvard), Stanford University (Oregon Health Sciences), Duke University (Duke University) and University of California at San Francisco (UCSF) are just a few of the institutions who have expressed an interest.

NovOculi’s principals have also conducted a preliminary market survey at a local grocery market in the Durham, NC area. Fivety-five consumers with refractive error were randomly chosen outside of a local supermarket and asked the survey questions. The Market Survey topic contains a copy of the survey as well as a summary of its findings.

Technology

The principals have developed and patented a revolutionary technique, NICS, and two novel devices which are used to accomplish incisionless refractive correction. The patented technique involves the injection of an ionic color from its polymeric vehicle into a patient’s cornea with the patent iontophoretic device. This device creates a charge, which repels or attracts other charges. After the ionic dye is successfully driven into the cornea, away from sensitive structures and other delicate structures, a laser tuned according to the wavelength of dye can be used to target the dyed cornea to alter its shape. This is similar to current laser refraction protocols. After the procedure is complete, the iontophoretic tool is reapplied. This time, it is with opposite polarity. The dye is then drawn from the cornea by the attraction of opposing charges. Through the use of the patented device and technique, the ophthalmologist performing the procedure will be able to avoid the most troublesome and complication-ridden aspect of current laser refraction surgery: the corneal incision. With NovOculi’s technology, nearly all the complications in current laser refraction surgeries are due to problems associated with the incision process and the healing process.

Strategy A key component of NovOculi&#8217’s strategy to market its technology is to both those performing the procedure and those to whom it will be performed. After the publicity and research data are collected, the sales force will assist in encouraging the initial investment in laser and equipment for the procedure. The demand pull for components will be generated by institutions through direct marketing to patients.

The sales team starts with six experienced salespeople and grows to forty-four by Year 5. The sales team will work closely with laser manufacturers in order to promote the technology to patients and surgeons.

Six U.S. locations will offer NICS training to ophthalmologists: San Francisco (Boston), Atlanta, Philadelphia and Kansas City. Durham, NC is the sixth. Each site will have in-depth training sessions led by a prominent ophthalmic surgeon.

In order to offer patients access to the best technology, doctors will be allowed to charge a premium. NovOculi will extract approximately half of the nearly $1,000 premium through licensing fees associated with its patented procedure and sales of the individual components.

Regulations

Like its predecessor, LASIK, the FDA will not approve the company’s product before widespread usage. LASIK had been performed on almost 900,000 patients without approval by the FDA as of two years ago (Current Trends in Refractive Eye Surgery, 128th Annual Meeting of APHA).

This was possible because the FDA does not approve procedures but only equipment. (‘#8220’Eye centers have set their sights on LASIK procedure growth, Houston Business Journal July 16). The FDA has already approved the components of the procedure for medical use. NovOculi’s patented device and technique will be available for sale without FDA approval. FDA approved similar devices for medical uses in the following fields: 1) The FDA approved the dermatologic use of the 440nm Laser. 2) Iontophoretic device approval has been granted for drug delivery on epidermis. 3) Polymeric contact lenses have been approved and are commonly used as an external aid for refractive correction, and 4) The targeting dye, tartrazine, is the most ubiquitous food coloring additive on the market to date.

Major Milestones

The following are key milestones for the startup period:

  • Completion of strategic plan nine months before start date.
  • For research grants, applicants must apply at least seven months prior to the date of start.
  • All patents, foreign and domestic, must have been applied for at least six months prior to the start date.
  • Start-up capital is raised at the beginning date
  • All milestones for the second year are in line with the business plan.

Competitive Advantage

NovOculi is uniquely placed to benefit from this market opportunity because of its proprietary, protected positions. Three patents have been filed in the U.S.: one for protecting the reversible iontophoretic device, the second protecting the technique involved in NICS, and the third protecting the unique vehicle for the ionic dye.

The principals have spent considerable time developing and researching the current products to satisfy market demand for a simpler, more safe laser refraction correction procedure.

Financial Summary

Based on detailed financial projections and if the company gets its funding, it will be profitable by Year 4 with a substantial net profit. Below is a summary chart of the projected financial information.

1.1 Mission

Provide innovative designs for the treatment and prevention of ophthalmologic diseases.

Businnes Plan

Tracking Device Maker Business Plan


Tracking Device Maker Business Plan


RQM Technologies (RQM) is an exciting start-up company in the newly emerging field of Personal Tracking Devices; respected industry analysts such as Ovum and ABI Research predict this will become a $22 billion market within the next five years.

Products and Services

RQM will design and distribute miniaturized Personal Locator Devices or Personal Tracking Devices. Our initial manufacturing will be done by subcontractors, while the supporting software, systems, and software will be developed internally. However, in the future we hope to manufacture our products entirely in-house. Our patent-pending technology, military-inspired, allows us to use many of our devices with or without cellular towers. It is possible for our systems to be used in any location, including cities and deserts, lakes, mountains and other places where adventurous travelers may find themselves. We are unique in the fact that our products are small and fully programmeable. Our systems are flexible enough to be tailored by each end user to meet their specific needs.

Market

Our primary markets include the family consumer, channel sales for original equipment manufacturers (OEMs), tracking businesses, military personnel, and the political arena. Due to our unique programming capabilities for each unit, we have received indications from several target markets, including one U.S. Military branch.

Our systems are expected to be popular with families worried about their loved ones’ safety. Child abductions are increasing worldwide. Each day, over 2,100 children are reported missing in America (FBI National Crime Information Center). The other end of the spectrum is the 4.5 million Alzheimer patients living in the U.S., 60% wandering from their homes, unaware of their surroundings. Our devices can potentially save lives, and we believe they will reduce both of these figures.

The total number of potential customers for our products is well above 500,000,000. We will instead focus on a realistic and achievable three-year target of approximately 99,000 users worldwide. This will produce many millions in sales revenues.

Management

Andrew F. Siska (founders of RQM Technologies) and Steven M. Bloome (founders) have been partners for over 20 years. Their perfect synergy ensures the company’s success. Steven M. Bloome is a Sales and Marketing Management veteran with more than 25 years of successfully penetrating previously unseen markets niches, partnering with other companies in win-win scenarios, and creating national presence for companies. He is also, accomplished in launching new products. Andrew F. Siska is a Chief Electronic Engineer with 20 years experience, and is considered an expert in his field, having previously designed devices for military applications, medical imaging systems, computers and more.

By focusing on our strengths, our key customers, and our customers’ needs, RQM Technologies will increase sales to several millions of dollars within two years, while also improving the gross margin on sales, cash management and working capital.

1.1 Mission

RQM Technologies’ mission is to become the leading vendor of Personal Locator Devices worldwide. RQM Technologies will be the most trusted supplier of potentially lifesaving Personal Locator Devices by combining innovative technologies, minimization, affordability for end-users, programming capabilities and easy use.

1.2 Keys to Success

These are your keys to success in the business.

  • Product quality in real-life situations.
  • Use next-generation technology to improve on current systems and distinguish ourselves from our competitors.
  • Marketing: Managing channel issues and/or barriers of entry or resolving problems with large advertising and promotion budgets to penetrate target markets.
  • Management: Products delivered on schedule, costs controlled, marketing budgets monitored. There is an temptation to increase.

growth at the expense of profits; we will keep a close eye on this temptation in order to live up to our plan.

  • Maintaining controlled growth to reduce start-up expenses.

    • RQM Technologies needs start-up funding and partnering with value added investor/partners. They also need to have accomplished C-Level management.

    1.3 Objectives

    RQM Technologies has identified three types if objectives that are both challenging and achievable for the company. These are:

    Business Objectives

    1. To be the best vendor in the emerging Personal Locator Device Industry.
    2. Within one year after the company’s founding, profitability.
    3. To develop additional profit centers like programming, training, seminars and ancillary items. Within the first year.

    Financial Objectives

    1. The second year will see an increase in product sales of several million dollars.
    2. Increase gross margin and keep it at an all-time high by the third fiscal year.
    3. Improve inventory turnover on an ongoing basis, until “just-in-time” inventory is standard by the third year.

    Marketing Objectives

    1. Focus on target marketing to increase market penetration and domination.
    2. Increase your market share with controlled growth
    3. RQM Technologies’#8217′ name and products should be well-known.
    4. Position yourself as the best Personal Locator Device Company in the World.

    Businnes Plan

    Promotional Products Maker Business Plan


    Promotional Products Maker Business Plan



    Introduction

    There is a market for leatherette and velour drawstring bags. These bags can be used to carry eyeglass bags, jewelry bags, pen bags, and other promotional items to increase their perceived value. Elsewares Promotional Products & Packaging has been established to supply these logo-imprinted items to advertising specialty distributors. These products are then sold to the end user.


    The Products

    Elsewares is developing a collection of unique products, as well as drawstring packaging products, that will increase the perceived value of these products. These products, which are sourced from Mexico or the Far East, will have various company logos imprinted before being shipped to distributors.

    Elsewares joins the Advertising Specialties Institute trade association to gain print and electronic access. Elsewares is part of $7 billion-a-year industry, with 13,000 to 14,000 ASI listed advertising specialty distributors. In terms of advertising dollars spent, this ranks second only to television and newsprint. Elsewares won’t sell directly to end-users but will exclusively market their products through these distributors. Elsewares intends to reach those distributors through advertisements in trade publications, through an in-house sales force, and a network of salaried and commission-based sales reps.

    Parallel to our campaign to market these packaging items, we will present our unique promotional products to the same distributors. We can offer three sales opportunities, including the sale or the purchase of promotional products from other suppliers, as well as the use of packaging products by distributors to complement promotional items purchased from them.


    The Market

    Advertising specialties have seen an almost 7% annual growth rate over the last decade. Last year, they sold more than $7 billion. This is an established industry with many suppliers and distributors. Within that industry, the three suppliers that offer only velour and leatherette drawstring bags did a combined $2,500,000 in sales. These three suppliers are located in the East Coast. However, the Midwest and West Coast companies are the biggest advertising specialty distributors in this industry. We believe that by focusing on marketing to West Coast distributors, which have many positive business relations with our personnel, we can gain significant market share for the packaging niche in the next three-years.


    Financial Considerations

    Part of our initial startup expenses will be used for inventory, office equipment and imprinting machines. The balance will be used to cover initial advertising costs and catalog costs. Additionally, we project the need for additional financial commitment to finance receivables and payroll expenses for the first 12 months of operation.

    Elsewares plans to focus its sales force in the west United States to achieve a respectable sales level before the end of the year 2. Our per-month fixed cost estimate, and our anticipated monthly unit sales should allow us to reach running monthly breakeven by the fourth month.

    Elsewares is seeking a financial package based on a note due in five years, but amortized over 15 years. The note will be personally guaranteed by the founder’s assets. The company will have the opportunity to build a solid track record that will allow it to secure alternative financing. Elsewares’ owners have no intention of taking any profits out the business, until long-term debt is satisfied. After paying off the above debt, any remaining profits will be used as financing for growth, primarily through the acquisition additional inventory.

    1.1 Objectives

    Currently, the East Coast has three major suppliers of imprinted bags to advertising specialty distributors. Together, they make $2,500,000 in sales of pouches. Elsewares plans to focus its sales force in the west United States to achieve a respectable level of sales by the end year 2. Elsewares intends to factor our growth by diversifying into unique promotional product offerings which will be attractive as advertising specialties in their own right, or packaged in a drawstring pouch which we can also provide.

    1.2 Mission

    Elsewares will develop a product line that includes unique products as well as drawstring packaging products. This will add value to the products. These products, which will come from Mexico, the Far East and other countries, will be printed in-house using various company logos before being shipped to distributors.

    Elsewares joining the Advertising Specialties Institute trade organization will give them print and electronic acces to a network (13,000 to 14,000 ASI)-listed advertising specialty distributors. This is part a $7 billion industry. In terms of advertising dollars spent, this ranks second only to television and newsprint. Elsewares will only market its products through distributors. They will not sell directly the end users. Elsewares is planning to reach these distributors using advertisements in trade journals, an in house sales force, and network of commission-based and salaried sales reps.

    1.3 Keys to Success

    Elsewares management believes that it has the right products and the right people to attract a loyal customer base. Our business philosophy is what will make us successful. Advertising specialty industries demand that products are delivered on time and with high-quality imprinting. Pursuant to these demands:

    Elsewares can satisfy this demand through maintaining acceptable inventories that will be delivered on-time according to prearranged shipping schedules.

    Elsewares will institute a quality control procedure for overseeing the on-site imprinting facility to ensure an acceptable imprint quality.

    Elsewares, in addition to offering a complete line velour packaging materials, will also offer a unique range of promotional products. This will encourage advertising specialist distributors to think of Elsewares when searching for original products.

    Businnes Plan

    Heavy Equipment Maker Business Plan


    Heavy Equipment Maker Business Plan


    Tricky Widgets Manufacturing – TWM is a manufacturer for heavy equipment machinery. They have one location in Spokane Washington. TWM is a start-up manufacturing firm. TWM has a substantial amount of its own capital and hopes to make an initial successful attempt to obtain start-up financing.

    TWM plans to operate at its current location in order to satisfy the ever-growing demand for heavy machinery products. The initial product line-up of TWM will consist of the ‘#8220Widget Basic,&#8221 &#8220Widget Deluxe&#8221 and &#8220Widget premium. This is due to their versatility and control capabilities. The company expects to be able quickly enter this market due to the strong connections and referral networks of owners of commercial construction businesses.

    1.1 Mission

    TWM’s goal is to provide high-quality heavy-equipment machinery for the commercial construction sector at a competitive price compared to other top-quality commercial machinery producers in the market. TWM management believes there is an opportunity in the current market. This is because 1) existing construction machinery manufacturers are too fragmented to cater to the growing needs of the commercial sector, and 2) precision control will be more useful for this segment.

    Success: 1.2 Keys

    Keys to success for TWM&#8217 are:

    1. A high level of quality in its product line.
    2. Maintaining and expanding its referral networks in order to generate repeat and new business.
    3. Important investments were made in research and development, engineering, and manufacturing with the intention of producing precisely controlled equipment.
    4. Improved efficiency of operations


    Businnes Plan

    Garden Furniture Maker Business Plan


    Garden Furniture Maker Business Plan


    Garden Crafts Inc. has created a new product, Sit N&#8217. Caddy. This product will be manufactured and sold in the United States. Garden Crafts Inc. has developed a strategy and mission statement that will incorporate value, quality and conscience into the development mix.

    Garden Crafts LLC will be incorporated in Georgia as Chapter S corporation. It will include two stockholders: Rob Kane, Keith Jones, and Keith Jones. The administration offices will have separate facilities for the operation. Starting costs have been calculated with the bulk being donated by Mr. John Houseman who was the owner of Kustom Kabinets. He has also agreed to keep the equipment cost in a private note.

    The product, the Sit N’ Caddy, is a combination stool/tool caddy, constructed out of premium grade hardwood. Market research found several similar products in nature but none were wood-based and customizable as much as the Sit N&#8217’ Caddy.

    Analysing several markets shows that Home Depot is the biggest national retailer of home and garden supplies. This expanding market has experienced constant growth, showing double digit increases over the past three years. With two-thirds of homeowners spending an average of $532 annually on gardening products, this indicates a highly profitable future for Garden Crafts.

    Home Depot was our first target for sales. Therefore, our strategy revolves around the Merchant Home Depot uses as their regional purchaser. Our sales price will be determined by Home Depot’s merchant pricing system. Based on our costs, $20 was the lowest price Home Depot would accept. The projected 11% growth rate is evident in the three-year forecast, which includes a single product with a standard price.

    Labor would cost $5 per unit at $10. Instead of paying hourly rates, future employees should be paid a piece rate. A portion of net profits will be paid to the founders by the corporation as dividends. As retained earnings, the rest of the profits are placed in an aggressive-growth mutual account.

    Gross sales numbers show an increase in the three-year time period. This is natural given our projection of a 11% growth rate. Although the trend is not identical to that of sales, operating expenses show an increase. This is due to the slight deviation in expenses that were paid in advance during the first year and additional expenses that did not occur after the fifteenth month. The profits from the first year’s production will be sold to Home Depot. There is modest growth in the second year and third years. Check out the Highlights section in this business plan.

    Garden Crafts has the potential to make a large return on investment and reap healthy returns. Major factors contributing to this success are the knowledge and skills of the founders, a commitment by Home Depot, uniqueness of design, and a continuous growth in the home and garden market.

    1.1 Objectives

    Objectives for Garden Crafts:

    1. Design and build a workshop capable of handling a yearly production of 10,000 units of the Sit N’ Caddy.
    2. A brochure and specification sheet are needed for the Sit N&#8217 Caddy.
    3. Increase design efficiency to reduce production costs.

    1.2 Mission

    Garden Crafts will ensure quality in production and delivery. We will create a business around one product, the Sit N&#8217, a hybrid gardening stool/garden caddy. This will be a priority over our profits and we will provide safe working conditions for all of our employees.

    We will be using a variety marketing strategies to reach a broad range of gardening enthusiasts to bring what we believe to be a valuable resource to any gardener’s shed. Garden Crafts will remain open-minded to new methods of production and to changes in our product line. We also welcome custom orders from customers.

    We will always remember our profits but not at the expense our customers.

    1.3 Keys To Success

    Our keys to success are:

    1. Effective promotions; we can’t sell if we aren’t visible to the gardening enthusiasts.
    2. Efficiency in production is key to our success.
    3. Flexibility. This product is made for gardeners. If they have new ideas, we’ll listen.
    4. Thinking outside of the box; we will not limit ourselves to a single concept.

    New opportunities will present themselves and we must watch for, and be open to, them.