Bracket Business Plan
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BUSINESS PLAN
2 | BRACKET BUSINESS PLAN<br />
CONTENTS<br />
CRITICAL SUCCES FACTORS<br />
CONTENTS<br />
1. EXECUTIVE SUMMARY PAGE 5<br />
2. BUSINESS BACKGROUND PAGE 5<br />
3. MISSION, VISION CORE VALUES PAGE 7<br />
4. TACTICS PAGE 10<br />
5. OUR TEAM PAGE 11<br />
6. SWOT & CRITICAL SUCCESS FACTORS PAGE 12<br />
7. MARKET RESEARCH PAGE 13<br />
8. MARKET ANALYSIS PAGE 16-17<br />
9. COMPETITOR ANALYSIS PAGE 18<br />
10. MARKETING STRATEGY PAGE 18<br />
11. PRODUCT DEVELOPMENT PAGE 20<br />
12. FINANCIAL PLAN PAGE 22-25<br />
13. COMPLIANCE PAGE 25<br />
14. IT AND EQUIPMENT PAGE 26
1. EXECUTIVE SUMMARY<br />
OUR BRAND<br />
<strong>Bracket</strong> is a customizable furniture system which gives users get the chance to assemble furniture from<br />
kits, or with their own materials using standardized joints.<br />
<strong>Bracket</strong>’s goal is to get people connected to the manufacturing process through self assembly of furniture<br />
with customization capabilities.<br />
COMPETITIVE ADVANTAGES<br />
Our system offers users many unique experiences. We offer the unique experience of easy user assembled<br />
furniture. The customization and creative possibilities using our standard joints is limitless, and will<br />
allow people to make a wide range of other things using our adaptable joints.<br />
GROWTH PLAN SUMMARY<br />
Our company is starting off small, we are able to design and prototype our designs in house, but with<br />
production of our product we will need to invest a significant amount to make a mold for injection<br />
molding. We will start by selling our products directly to the customer through our website. With growth<br />
of our company, and support from investors we hope to bring more of the production and manufacturing<br />
of our products under our control, by purchasing the necessary machinery as opposed to outsourcing<br />
to get our products made. In the future we hope to continue to develop our product line through<br />
research and development from our experienced product design team, allowing our customers more<br />
options for creativity and adaptability. We hope to have products ranging from kit sets of chairs, tables<br />
and more, to ‘joint’ sets which provide the customer with a wide range of ‘joint’ options which they can<br />
create their own designs out of. The growth of our business will help fulfill the goals of fostering creativity,<br />
and a more adaptable product that connects people to the manufacturing process. Our initial kit sets are<br />
only the tip of the iceberg for what is possible using universal and adaptable joints in furniture designs.<br />
Our company looks forward to exploring these possibilities alongside our customers.<br />
2. BUSINESS BACKGROUND<br />
Coming from product and graphic design backgrounds, our team is interested in how things are made,<br />
and making things ourselves. We see that most people are not typically aware of how the things that we<br />
use everyday are made, however many share the same curiosity as our team. There is a growing<br />
disconnect between manufacturing processes and the consumer in modern society. Our goal is to<br />
change that by bringing people into the manufacturing process by allowing them to finish the assembly<br />
and final design of their furniture themselves. The act of assembling their own furniture allows people to<br />
familiarize themselves with their product, and realize its potential to make new things.<br />
CONTENTS<br />
BRACKET BUSINESS PLAN | 5
MISSION<br />
- To connect people to the manufacturing process.<br />
- To foster creativity through adaptable elements<br />
in furniture design<br />
VISION<br />
- Creating products that allow people to create,<br />
adjust, customize and learn through their furniture.<br />
- Offering spatial, structural and creative<br />
understanding through the physical handling<br />
and assembling of furniture.<br />
- Giving the public a better appreciation and<br />
connection to how things are made.<br />
CORE VALUES<br />
- Connections: between consumer/ manufacturer/<br />
product/ construction/ materials<br />
- Creativity through creation<br />
- Customization thanks to adaptability<br />
- Understanding through exposure
10 | BRACKET BUSINESS PLAN<br />
CRITICAL SUCCES FACTORS<br />
4. TACTICS<br />
E-COMMERCE AND TECHNOLOGY<br />
We will build a custom e-commerce platform on our website which will be the primary channel of selling our<br />
product. The website will offer international shipping, as our market is not just limited to New Zealand. Our website<br />
will include electronic inventory management to make sure we have the products in stock that we sell. We will<br />
also use google analytics on our website so we can accurately analyze the viewership on our page. This will give us<br />
key information on the demographics of our customers, and who is visiting our site. Our in-house distribution<br />
efforts will closely monitor our E-commerce platform to ensure accurate and timely shipments of orders. Our<br />
website will offer payment options of all the major credit cards as well as online payment systems like paypal,<br />
making our selling capabilities truly international.<br />
PRODUCTION STRATEGY<br />
The plan is to revise and refine traditional production methods with design at the forefront of our production<br />
strategy. We plan on using traditional manufacturing methods in order to create a product that is simple to<br />
assemble, by doing this we can keep the cost price down, delivering a competitive price point to the customer.<br />
We will start with 3D modeling on computer. Throughout the design process, we will prototype and refine the<br />
designs. Once a joint design is finalized we will send a file away to get a aluminium tool made for injection molding.<br />
Once the mold is made, we will be able to create thousands of the same injection molded piece easily and quickly.<br />
We will mill the wood using our CNC routing machine. Our product will incorporate the production method of<br />
plastic injection moulding and CNC routing, once produced these parts are unique and universal to our product<br />
range and can be incorporated across the home in multiple applications.<br />
SELLING STRATEGY<br />
We will be limiting our selling strategy to direct online sales through our website. As a small start up we cannot<br />
afford to lose the high margin required to sell our products at a brick & mortar location, or through third party<br />
retailers. Our product is very expensive to produce, and the markup needed to sell our product through retailers<br />
would make the cost too high for most people in our target market. By selling our products directly from online<br />
sales, we cut out the need for distribution accounts, and the loss in profit associated with dealing with retailers. We<br />
can contribute more of the revenue from sales to producing top quality product, as well as the development and<br />
expansion of our line. Customers will be able to order all of our products directly from our website, where we will<br />
ship directly from our headquarters, worldwide. All of our marketing tactics will be focused on driving customers<br />
to our website where they can find out more information and buy our product all in one place.<br />
DISTRIBUTION STRATEGY<br />
We will ship all of our products directly from our headquarters to customers worldwide. We have<br />
decided to make our target market larger than just New Zealand. There would not be enough customers<br />
locally to support our brand, so it is necessary to branch out globally from the start. For shipping we will create<br />
an account with Fed Ex, and will do our shipping through them. The added cost of shipping internationally will be<br />
covered by an extra fee for the customer, so international distribution will not take away from our profit margin.<br />
STRATEGY CHANGES WITH GROWTH<br />
All of the above strategies are current strategies used during the initial start up period based on our current<br />
funding levels. Our growth plan highlights some key changes to some of these strategies. Depending on sales figures<br />
and investment levels, our goals and strategies are likely to change. For further information regarding plans for<br />
growth and how our production, selling and distribution strategies will change see section 11 (financial plan).<br />
CREDIBILITY AND RISK REDUCTION<br />
Before fully launching our brand we will fully register as an LLC, which will allow us legal standing. We will work towards<br />
creating legal creative ownership of our designs to minimize risk of competing products. We will also hire an<br />
accountant twice a year, or as needed to make sure our financial records are sufficient and up to date. All of our<br />
designs will go through extensive product testing to ensure safety and strength. Our products will be engineered<br />
to the highest quality and backed by a ten year warranty for any defective parts..
5. OUR TEAM<br />
MANAGEMENT STRUCTURE<br />
CEO- Brian Culmo<br />
LEAD DESIGNER- Will Bamber<br />
DESIGN AND PRODUCTION TEAM- Antonio Garnet Wan, Daniel Smith<br />
BUSINESS OWNERSHIP STRUCTURE<br />
Our team (Brian, Will, Antonio, and Daniel) are prepared to invest a total of $20,000 of our own money into the<br />
business. We will still need an investment of $70,000 in order to purchase our own CNC machine and produce<br />
tooling for injection molding of the joints. For this investment we are looking to give away 35% equity in our business.<br />
The four team members will hold equal shares of the remaining 60% of the business (15% each).<br />
BRIAN CULMO<br />
CEO<br />
Brian is Studying graphic Design and Digital media. He<br />
brings experience in building brands and marketing. His<br />
skills in design thinking, and entrepreneurship will help<br />
the company have successful strategy for marketing<br />
and development in the future. His skills in design will<br />
ensure the core values and mission of the brand will be<br />
communicated and envisioned through the production<br />
and selling of our product.<br />
Skills and qualifications: Graphic design, Marketing,<br />
Branding, Organisation, Entrepreunership, Technical focus,<br />
Aesthetic, Conceptual Thinking<br />
WILL BAMBER<br />
LEAD PRODUCT DESIGNER<br />
Will is an experienced and diverse skilled Industrial<br />
Designer. Initially focused towards a professional career<br />
in motorsport, Will has remained true to his roots<br />
with a technical approach to design. With an expertise<br />
for computer aided design, manufacturing process and<br />
human centered design, he is a well rounded and suited<br />
product designer. Identifying, satisfying and surpassing<br />
true needs of users is at the heart of his work and his<br />
international travels will ensure <strong>Bracket</strong>’s endeavours are<br />
contextual, opportunistic and managed.<br />
Skills and qualifications: Product design,<br />
manufacturing, prototyping, organisation, business<br />
minded, human centered design, entrepreneurial<br />
OTHER SHAREHOLDERS<br />
DANIEL SMITH<br />
PRODUCTION MANAGER<br />
Daniel is a third year student studying Product design<br />
at AUT. He is more connected with the technical side<br />
of design excelling at product development and final<br />
concept prototyping. He is an asset to the company<br />
in respect to ongoing product development and his<br />
drive to sell a successful product in the market place.<br />
His knowledge of manufacturing processes has helped<br />
the company understand the feasibility of products and<br />
developing new processes that could be incorporated in<br />
our product line.<br />
Skills and qualifications: Product design, technically<br />
minded, prototyping/concept delivery, CAD, machinery<br />
TONY GARNET WAN<br />
PRODUCT DEVELOPMENT<br />
Antonio Wan is currently studying Industrial design and<br />
innovation at AUT. He specializes in designing for emotional<br />
response. He brings to the company a growing<br />
knowledge of batch production of craft design, using<br />
design thinking and human centred design approaches<br />
to counter and refine design problems. The intrinsic<br />
value imbedded into the design will be shown through<br />
the use of the product.<br />
Skills and Qualifications: Product Design, Wood<br />
Working, Prototyping, Workshop Machinery, Concept<br />
Development<br />
We will need to bring in other investors to purchase our expensive machining. Our incoming investors will hold<br />
a 40% share of the business.<br />
OUTSIDE HELP NEEDED<br />
FINANCIAL ACCOUNTANT:<br />
To help with the finance and legal filings of our business, we will need to hire a financial accountant for temporary<br />
periods. This position will not be full time, but on a temporary basis, like during the start-up phase, and near the end of<br />
the fiscal year. The accountant will ensure safe financial practices and keep the technical, legal and financial records of our<br />
company.<br />
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SWOT & CRITICAL SUCCESS FACTORS<br />
CRITICAL SUCCES FACTORS<br />
6. SWOT<br />
INTERNAL<br />
STRENGTHS<br />
- Easy to assemble furniture, also easy to take apart/move<br />
- Customizable, adaptable joints creating endless possibilities<br />
- Unique experience of building furniture yourself without the need for tools<br />
- Bringing back the DIY mentality into modern Kiwi society<br />
- Easily taken apart and put back together for easy moving<br />
- Adaptability of the joints for many different furniture applications<br />
WEAKNESSES<br />
- Strength of materials could limit customization possibilities<br />
- Hard to get people to customize beyond standardized instructions/kits<br />
- Assembling of furniture could be seen as overwhelming, complicated or confusing<br />
EXTERNAL<br />
OPPORTUNITIES<br />
- People like making things, especially new, cutting edge things<br />
- Scalabilty of our brand to include other types of products beyond a chair kit set<br />
- User created content using our product can promote our brand<br />
- Very few direct competitors offering the same product and experience<br />
THREATS<br />
- Hard to stand out from larger, build it yourself, customizable, and space saving furniture brands<br />
- Our unique experience could be jumbled into other, more competitive markets<br />
- Cheaper furniture options, with more variation in design available<br />
- Price of materials/kits could make product too expensive for people compared to other options<br />
CRITICAL SUCCES FACTORS<br />
The success of our business relies on some key factors. We need to make sure our product is easily<br />
assembled and encourages customization. Our product needs to engage and inspire people to make<br />
new things using <strong>Bracket</strong> joints. Our marketing must show there is unlimited potential for ways to use<br />
our product.
7. MARKET RESEARCH<br />
People don’t create things anymore. People are afraid of experimenting and adjusting parts of their life.<br />
People are intimidated by the complicated and sophisticated tools needed to make functional furniture.<br />
Why can’t it be easy like when we were kids playing with LEGO or knex? There is room in the market<br />
for a technology or product which gives people a universal, standardized interlocking system in which<br />
they can develop, customize, adapt and adjust functional furniture. The current market is flooded with<br />
tons of products which offer sophisticated systems to build furniture, but for the average person, it is way<br />
too intimidating. Many people are too overwhelmed by wood working tools and the experience necessary<br />
to make quality furniture. Many people cannot afford all these tools, or cannot devote the time to<br />
master using these tools. The experience of making custom furniture doesn’t have to be an all consuming<br />
affair of peoples money and time.<br />
Researching and understanding the target market user through qualitative and quantitative means of<br />
research tools, has shown that the target end user in today’s society will lead multiple jobs, move homes<br />
and live in different and varying cultures. People will be looking for furniture which can be easily taken<br />
apart and put back together. The “number 8 wire” of making things is diminishing in New Zealand, and<br />
abroad. Our aim is to get more people back involved in making things, using easy to grasp techniques<br />
with minimal tools involved. There is a significant opportunity to bring back the pride and satisfaction that<br />
people have in actually making something they use everyday.<br />
MARKET RESEARCH<br />
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MARKET ANALYSIS<br />
8. MARKET ANALYSIS<br />
MARKET OPPORTUNITY<br />
The self-assemble furniture market is very competitive. Many large brands offer furniture that people can<br />
assemble at home. Brands like IKEA dominate this market. We stand out in this market by offering<br />
marketing and experience, not just a physical object. <strong>Bracket</strong> is an idea, an opportunity to create something<br />
yourself. Our competition focuses on just the look of a product, and pays little attention to the<br />
assembly process. <strong>Bracket</strong> also differentiates itself in this market by offering a product which is intrinsically<br />
easy to understand. Our assembly process is meant to be intuitive, educational and satisfying, as opposed<br />
to frustrating, time consuming and confusing like many of our competitors in this market. We want<br />
people to have positive attitude about their building process, which will hopefully encourage them to<br />
build and experiment more. We want the initial sets to be simple and intuitive so that people feel<br />
confident enough to explore more. Many of our competitors in this market offer such confusing<br />
products that consumers are inclined to hire someone to deliver and put together their furniture. We<br />
think this is flat out wrong. Many people have lost sight of the inherent value of assembling and making<br />
things yourself. If done right, making things should be a rewarding process, not a frustrating one,<br />
regardless of experience or ability of the customer. Our hope is that by assembling their furniture,<br />
consumers are more likely to want to learn more about the rest of the manufacturing process, as<br />
opposed to being put off by it, which is the current trend in today’s market.<br />
In order to compete in the even larger furniture market, we must create aesthetically beautiful and<br />
unique furniture. Our standardized joints will look unique and our experienced team of designers work<br />
hard to create a product which is both fully adaptable, universal, structurally strong, and beautiful. The<br />
conceptual ideals behind <strong>Bracket</strong> like standardization and adaptability are apparent in the design of our<br />
joints and furniture, making the aesthetic even more appealing to an inquisitive eye.<br />
MARKET STRUCTURE<br />
Furniture<br />
- Self assemble furniture<br />
- No tools needed furniture<br />
- Customizable furniture<br />
- Standardized, universal<br />
furniture building system<br />
<strong>Bracket</strong> fits within all of these markets, depending on how specific we<br />
look. We can analyze our position within these markets. <strong>Bracket</strong> will<br />
compete better in the more specific markets like standardized furniture<br />
building systems, compared to the broader, more competitive markets<br />
like self assemble furniture.<br />
MARKET SIZE AND OUTLOOK<br />
By selling online we are immediately opening our market up to a global<br />
scale. Our target market would be too small in New Zealand to make<br />
our brand sustainable, so we are targeting people all over the world.<br />
Adaptable furniture is emerging as a desirable item, and this market is poised to increase in the coming<br />
years. As our product becomes more popular, our most dedicated users will want more than a few of<br />
our joints to complete their custom projects. We will constantly have a market of returning customers<br />
looking for the materials to help feed their creative explorations.<br />
FUTURE MARKETS<br />
By creating a product so focused on potential and consumer creativity, we are setting our company up to<br />
be able to adapt and grow organically with our market. Our users will dictate the direction of our brand<br />
while we provide them with products which allow them to maximize their creativity. We don’t know<br />
what people will be making with our joints in the future, but we are sure that we will support them in<br />
whatever they are making. By allowing the market to dictate the direction of our brand, we are setting<br />
ourselves up to be relevant and adaptable, just like our products. We will let the speculation and creative<br />
thinking happen within the market. We want people to be involved in the process of creating what they<br />
want, we are just in the business to help foster their creativity and give people a creative development<br />
platform that is accessible to everybody.
TARGET MARKETS<br />
Customer Face 1: DIY Dad<br />
- Male, Married, 30-50 years old, college<br />
educated, has kids age 5-18<br />
- Works in tech industry<br />
- Middle upper class income<br />
- Likes to fix things in house by himself<br />
- Wants to do more projects around the<br />
house, but doesn’t have time with busy work<br />
and family commitments<br />
Customer Face 2: Young Working Professional<br />
- Female, Recently graduated college age 25-30<br />
- Lives in apartment<br />
- Hasn’t settled down in one place yet, keeps<br />
moving to follow jobs, not grounded<br />
- Ready to upgrade from second hand “College”<br />
furniture, to something a little more respectable<br />
- Follows design blogs, tumblr, pinterest, etc. often<br />
TARGET MARKET: GENERIC ATTRIBUTES<br />
- People who want to make things but are intimidated by tools, process and time<br />
- Middle aged working adults (with or without kids)<br />
- Hip modern design thinking people<br />
- People who move apartments/ houses often<br />
- People who like to tinker, alter, and create in other ways<br />
TARGET MARKET DEMOGRAPHICS<br />
PRIMARY TARGET<br />
- Middle upper level income level<br />
- Middle aged adult<br />
- Working professional<br />
- College educated<br />
- Male<br />
- Has family<br />
SECONDARY TARGET<br />
- Middle income level<br />
- Young working professional<br />
- Career in a creative field<br />
- Female<br />
TERTIARY TARGET<br />
- Teenagers aged 12-18<br />
- Hobbyist, or into crafts<br />
- Excels in school, aiming to<br />
attend college<br />
- Supportive family<br />
- Male or female<br />
TARGET MARKETS<br />
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COMPETITOR ANALYSIS & MARKETING STRATEGY<br />
9. COMPETITOR ANALYSIS<br />
There are very few brands that can offer the same value to the customer as <strong>Bracket</strong>. We offer a unique<br />
experience and opportunity for new and exciting creations. By focusing on building and creativity, our<br />
potential is not realized with our initial product. Our customers will make <strong>Bracket</strong> products into amazing<br />
creations which will only further emphasize the power of our product. Many of our competitors are<br />
too focused on providing a singular product, as opposed to an experience or the potential for creative<br />
exploration. <strong>Bracket</strong> is more than a product, but an opportunity to create something more. By focusing<br />
on product potential we are able to differentiate ourselves from most of our competition.<br />
Compared to other custom furniture options, <strong>Bracket</strong> is extremely accessible. Our product is easy to understand,<br />
manipulate and experiment with. No tools or extensive knowledge is needed to adjust, create<br />
or adapt your furniture using our pieces.<br />
IKEA<br />
STENGTHS<br />
- Many design options<br />
- Affordable<br />
- Simple modern design<br />
WEAKNESSES<br />
- Complicated/ confusing to assemble<br />
- Very hard to take apart<br />
- No customization options<br />
- No room for user created adaptability<br />
- Lower quality materials<br />
- No adaptability<br />
LEGO<br />
STRENGTHS<br />
- Teaches people connections of things<br />
- Embraces creativity and development<br />
- Teaches people structure and engineering<br />
- Standardized, adaptable pieces<br />
WEAKNESSES<br />
- Seen as a kids toy, adults afraid to use it<br />
- Can’t be used functionally<br />
- Small model scale<br />
10. MARKETING STRATEGY<br />
Our marketing strategy will involve an aggressive online and viral campaign targeted towards PR. We will<br />
create a website and a press kit in which blogs, websites, and individuals can promote our product. We<br />
will spend time creating a unified brand experience, with striking visualizations of the product, and with<br />
an emphasis on storytelling. Our website and accompanying information will communicate a consistent<br />
story of our brand and our mission to connect consumers to cutting edge manufacturing processes. We<br />
want to drive user created content using our brand as much as possible. We want to see the cool things<br />
people are creating using our platform. We will ask people to share their projects on our website, and<br />
the best projects will be featured to show people the great uses of our product.<br />
MARKETING LAUNCH<br />
We will set up professional product photography, and create consistent brand messaging to make the<br />
visual appearance of our brand on target. We will manage social media and PR campaign to ensure our<br />
brand is getting its name out there. Our aim is to get showcased on design blogs and websites like Supercompressor,<br />
FastCo., Cool Hunting. We will create content that is easily shared in social media channels<br />
like tumblr, personal blogs, pinterest, twitter, and facebook.<br />
MARKETING BUDGET<br />
Most of our marketing efforts will be based on digital and online awareness. We want to build brand<br />
awareness and interest through the viral capabilities of the internet. As a small start-up we cannot afford<br />
lavish marketing campaigns, so we will focus on maintaining a solid web presence and push to promote<br />
our brand through online channels. We will continually work to engage with people online about our<br />
brand, while saving costs by limiting our purchasing necessities for advertising. For more specific<br />
information on our marketing budget see section 11 (financial plan).
GROWTH PLAN<br />
FINANCIAL PLAN OVERVIEW<br />
a paragrpah or 2 explaining our finances in general terms<br />
FINANCIAL PLAN
20 | BRACKET BUSINESS PLAN<br />
PRODUCT DEVELOPMENT<br />
11. PRODUCT DEVELOPMENT<br />
UNIVERSAL JOINT<br />
Our product concept was to create a universal plastic bracket that invited customers to engage with the<br />
manufacturing process but to also gain a greater understanding and appreciation for the future of manufacture.<br />
For this reason, the bracket joins feature an exposing aesthetic to lure examination of the pieces<br />
and potentially encourage experimentation in the future. The refinement process was extensive due to<br />
the considerations for a simple, intuitive and attractive joint that would ultimately be manipulated by the<br />
BRACKET team but also by users and the community for a range of purposes as previous documented.<br />
SIZE<br />
Selecting an appropriate size for both the BRACKETS and accompanying wood pieces were essential<br />
to communicate a perceived and physical quality for the product. The thickness of the BRACKET’s were<br />
increased to insure structural rigidity and the design layout also considers the forces induced upon the<br />
points of connection.<br />
COMFORT VS ERGONOMIC<br />
With the <strong>Bracket</strong> ‘hero’ product being a chair, comfort is of upmost importance. Our mission in this area<br />
was to ensure a physically comfortable chair that still functioned in terms of an intuitive manufacturing<br />
process of which the user is fully in control of. Fitting sleeve like slats over the internal beams of the chair<br />
allowed us to offer a flush finish and develop the form of the surface to offer enhanced product comfort<br />
whilst also improve strength.<br />
3D PRINTING<br />
With our initial mission to educate regular every day consumers with modern day technology and<br />
processes, 3D printing was explored for its unique capabilities to build in a space. Specifically utalising<br />
SLS printing which forms a solid from a nylon powder, such a process would have enabled us to produce<br />
abstract forms that performed a functional purpose. Two reasons shifted our direction – 1. It was<br />
beneficial for a successful business model to produce BRACKET’s that offered a modular purpose for<br />
individual manipulation and 2. Such a process is not viable for mass production due to astronomical costs<br />
and manufacturing time. However, 3D printing was useful in our development to quickly prototype ‘one<br />
off’ BRACKET’s for concept testing and development.
12. FINANCIAL PLAN<br />
FUNDING<br />
We will need to invest a significant amount of<br />
money at the start up phase to allow for the Product development $1,000<br />
purchasing of our own CNC routing machine. We Website $400<br />
will also need to invest in the tooling of a mold<br />
for injection molding. This process is very expensive<br />
upfront, and requires a significant investment CNC machine $15,000<br />
Marketing launch $400<br />
of $50,000. This initial investment will make our<br />
production costs very low for the manufacturing Injection mold tooling $50,000<br />
of our joints after the initial start up phase. We will Start up cost total $66,800<br />
be looking for an investor to help with these<br />
expensive start up costs. The remaining start up costs along with the recurring fixed costs can be covered<br />
by the $20,000 investment from our team. After the initial start up our production will run much more<br />
smoothly financially, with high profit margins which will allow us to pay back the investment on<br />
the equipment.<br />
BREAK EVEN DATE<br />
According to our sales projections we will break even on the fourth month of the second fiscal year.<br />
After breaking even we will continue to make money. By early in the third fiscal year our investors will<br />
make 100% of their investment back. with profits only going up from there.<br />
CASH FLOW FORECAST<br />
Our initial investment of $20,000 from or team will allow our company to operate in the early stages<br />
of starting up. Sales coming in will also bring in enough cash to sustain production to keep up with the<br />
demand. The money from investors will be used for the high upfront costs of purchasing equipment and<br />
molds, thus eliminating any other potential sources of debt. Because of our online selling platform, our<br />
sales revenue gets directly sent to us, allowing us to maintain cash flow compared to third party<br />
distribution and retailers.<br />
VARIABLE COST OF PRODUCTS<br />
CHAIR KIT<br />
Materials-wood $15<br />
CNC tooling $3<br />
Injection molding $1<br />
Laser cutting $1<br />
Packaging $5<br />
Distribution/shipping $5<br />
E-commerce $3<br />
Labor $10<br />
Total cost per chair $43<br />
Retail Value per chair $110<br />
START UP COSTS<br />
TABLE KIT<br />
Materials-wood $8<br />
Injection molding $1<br />
Laser cutting $1<br />
Packaging $5<br />
Distribution/shipping $5<br />
E-commerce $2<br />
Labor $5<br />
Total cost per table $27<br />
Retail value of table $70<br />
JOINT ONLY KIT<br />
Injection molding $2<br />
Packaging $3<br />
Distribution/shipping $2<br />
E-commerce $2<br />
Labor $2<br />
Total cost per joint kit $11<br />
Retail value of joint kit $45
FINANCIAL PLAN FY1<br />
Month 1 2 3 4 5 6 7 8 9 10 11 12 Y1 total<br />
Chair kit<br />
Sales quantity 30 35 40 45 45 50 55 55 60 65 65 70 615<br />
Revenue from sales 3,300 3,850 4,400 4,950 4,950 5,500 6,050 6,050 6,600 7,150 7,150 7,700 67,650<br />
Variable cost of chairs 1,950 2,275 2,600 2,950 2,950 3,250 3,575 3,575 3,900 4,225 4,225 4,550 39,975<br />
Table kit<br />
Sales quantity 10 15 15 20 20 20 25 25 25 30 30 30 265<br />
Revenue from sales 700 1,050 1,050 1,400 1,400 1,400 1,750 1,750 1,750 1,750 2,100 2,100 18,550<br />
Variable cost of chairs 270 405 540 540 540 540 675 675 675 810 810 810 7,155<br />
Joint Kit<br />
Sales quantity 25 25 30 35 40 45 50 55 60 65 70 70 570<br />
Revenue from sales 1,125 1,125 1,350 1,575 1,800 2,025 2,250 2,475 2,700 2,925 3,150 3,150 25,650<br />
Variable cost of chairs 275 275 330 385 440 495 550 605 660 715 770 770 6,270<br />
Fixed costs<br />
Product development 200 200 200 200 200 200 200 200 200 200 200 200 2,400<br />
Accounting 150 0 0 0 0 150 0 0 0 0 0 200 500<br />
Marketing 200 200 100 100 50 50 50 50 50 100 100 100 1150<br />
Website hosting 20 20 20 20 20 20 20 20 20 20 20 20 240<br />
Insurance 20 20 20 20 20 20 20 20 20 20 20 20 240<br />
E-commerce 20 20 20 20 20 20 20 20 20 20 20 20 240<br />
IT 100 0 0 0 0 100 0 0 0 0 0 0 100<br />
Studio space (rent) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000<br />
Utilities 200 200 200 200 200 200 200 200 200 200 200 200 2,400<br />
Fixed cost total 1,910 1,660 1,560 1,560 1,510 1,760 1,510 1,510 1,510 1,560 1,560 1,760 19,370<br />
Start up cost total 66,800 66,800<br />
Profit -66,080 1,410 1,905 2,515 2,735 2,880 3,740 3,910 4,305 4,865 5,035 5,060 -27,720<br />
Break Even -66,080 -64,670 -62,765 -60,250 -57,515 -54,635 -50,895 -46,985 -42,680 -37,815 -32,780 -27,720 -27,720<br />
GROWTH PLAN<br />
After breaking even, we plan on continuing growth. We want to be able to expand our product line beyond the<br />
initial product offering. With a great product design team on staff, we want to be continually developing and<br />
pushing new ideas. As our brand grows we will work to create more products and offerings that will help to<br />
further achieve the core goals of our brand. If funds allow, we would like to invest in more injection molding tools,<br />
to allow for more options for joints to make even more creations. We will take suggestions and feedback from our<br />
customers, as they will know best what type of pieces they will need. As our brand grows we will work to make<br />
other aspects of our business as efficient as possible. We will look to ways to cut costs in areas like distribution,<br />
and E-commerce. Our marketing budget will have to increase with more sales numbers to continue to drive<br />
demand in the market and to create more brand awareness. We will work hard on keeping past customers engaged<br />
in our brand by involving them as much as possible in our development and marketing.<br />
BRACKET BUSINESS PLAN |23
FINANCIAL PLAN FY2<br />
Month 1 2 3 4 5 6 7 8 9 10 11 12 Y2 total<br />
Chair kit<br />
Sales quantity 70 70 75 80 85 85 85 80 85 90 95 100 1,000<br />
Revenue from sales 7,700 7,700 8,250 8,800 9,350 9,350 9,350 8,800 9,350 9,900 10,450 11,000 110,000<br />
Variable cost of chairs 3,010 3,010 3,225 3,440 3,655 3,655 3,655 3,440 3,655 3,870 4,085 4,300 43,000<br />
Table kit<br />
Sales quantity 30 35 35 35 40 40 40 40 40 45 50 50 480<br />
Revenue from sales 2,100 2,450 2,450 2,450 2,800 2,800 2,800 2,800 2,800 3,150 3,500 3,500 33,600<br />
Variable cost of chairs 810 945 945 945 1,080 1,080 1,080 1,080 1,080 1,215 1,350 1,350 12,960<br />
Joint kit<br />
Sales quantity 70 75 80 80 85 90 95 100 100 105 110 110 1,100<br />
Revenue from sales 3,150 3,375 3,600 3,600 3,825 4,050 4,275 4,500 4,500 4,725 4,950 4,950 49,500<br />
Variable cost of chairs 770 825 880 880 935 990 1,045 1,100 1,100 1,155 1,210 1,210 12,100<br />
Fixed costs<br />
Product development 300 300 300 300 200 200 200 200 200 200 200 200 2400<br />
Accounting 150 0 0 0 0 150 0 0 0 0 0 200 500<br />
Marketing 200 200 100 100 100 100 100 100 100 100 100 100 1400<br />
Website hosting 20 20 20 20 20 20 20 20 20 20 20 20 240<br />
Insurance 20 20 20 20 20 20 20 20 20 20 20 20 240<br />
E-commerce 20 20 20 20 20 20 20 20 20 20 20 20 240<br />
IT 100 0 0 0 0 100 0 0 0 0 0 0 100<br />
Studio space (rent) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000<br />
Utilities 200 200 200 200 200 200 200 200 200 200 200 200 2,400<br />
Fixed cost total 2,010 1,760 1,660 1,660 1,660 1,910 1,560 1,560 1,560 1,560 1,560 1,760 20,220<br />
Profit 6,350 6,985 7,590 7,925 8,645 8,565 9,085 8,920 9,255 9,975 10,695 10,830 104,820<br />
Break Even -21,370 -14,385 -6,795 1,130 9,775 18,340 27,425 36,345 45,600 55,575 66,270 77,100 77,100<br />
13. COMPLIANCE<br />
LEGAL AND REGULATORY CONSIDERATIONS<br />
We will fully license our business as an LLC to maintain proper governmental and tax registration. We will look into<br />
international standards of safety and ensure our product meets and exceeds those goals. We will work to abide by all<br />
international shipping regulations while distributing our product internationally.<br />
INSURANCE<br />
We will pay for insurance which will do some to protect our company from unforeseen dangers. We will also<br />
offer a full warranty on our products to ensure customer satisfaction and safety.<br />
BRACKET BUSINESS PLAN | 25
26 | BRACKET BUSINESS PLAN<br />
IT & EQUIPMENT<br />
14. IT & EQUIPMENT<br />
PRODUCTION EQUIPMENT USE<br />
CNC ROUTING<br />
CNC Routing incorporates an automated 3 axis system using a router bit to mill wood and other<br />
materials with accuracy, this in turn reduces manual labour. Once a file is loaded onto the system, a<br />
G-code is produced and the cut can begin, this G code can be saved and used multiple times. CNC<br />
routing is a rather inexpensive process with the only cost being maintenance to the router tool which<br />
has to be sharpened after 30-40 hours use. Once sharpened the tool can be used for the same amount<br />
of time then has to be replaced in order to attain a perfect cut.<br />
3D PROTOTYPING<br />
3D Prototyping is a quick and inexpensive way to physically communicate a complex object that can not<br />
otherwise be produced using traditional prototyping methods. It uses a coil of PLA Polymer plastic which<br />
is fed through a small element, this is then precision laid through a small nozzle in order to create a 3D<br />
object. This helps us as a design team to easily convey product development to possible clients and<br />
customers. The process also helps us conceptualise an idea to make sure that it will work with our<br />
existing injection moulded range and aesthetic.<br />
PLASTIC INJECTION MOULDING<br />
In the large scale production, plastic injection moulding is the most cost effective method of<br />
manufacturing plastic parts despite the large initial tooling cost. This technology will allow for multiple<br />
parts to be produced in a matter of seconds as well as flexibility in plastic density and choice. The initial<br />
tooling cost is large as it requires a large aluminum block to be milled via a 5-axis metal cnc followed by<br />
hand polishing carried out by specialist tooling companies to make the mould. However because of the<br />
extensive pre-injection labour, the mould can withstand over 100,000 repetitions.<br />
LASER CUTTING/RASTER<br />
Laser cutting is a machine operated method of cutting or rasterizing various materials such as wood,<br />
metal, leather etc. by means of using a intense beam of monochromatic light focused and used across an<br />
x and y axis to co-ordinate precise and accurate marks or cuts. We will use this machine to brand our<br />
products.<br />
IT<br />
Keeping up with software is necessary for our business. We will need to maintain up to date software in<br />
Solidworks and Rhino. Our team has multiple people who are experts in using these programs so we will<br />
not need to hire outside help to 3D model our designs.<br />
LOCATION<br />
During the initial start up phase we will work without a physical location. As a small business we initially<br />
cannot afford rent and utilities for a studio space. Because we will be outsourcing much of the production<br />
at first (injection molding and CNC routing) we will be able to survive using temporary space to assemble,<br />
package and ship orders. We will not need a physical location to sell products as we will be selling<br />
exclusively through our website. One major plan for growth includes renting a studio space, and this will<br />
be one of the first things we will do once we can afford it. our studio space will be used as a workshop<br />
only and will not offer a retail environment, thus allowing us a smaller, cheaper space.<br />
© 2014 Brian Culmo, Will Bamber, Antonio Garnet Wan, Daniel Smith