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FeasibilityReport

GroupMembers:
JohnLinton:Jrl5308@psu.edu
FahadTaimur:fyt5009@psu.edu
ZahinChowdhury:zic5040@psu.edu
RaulGarcia:reg5156@psu.edu
AnarBayarsaikhan:axb5237@psu.edu

TableofContents
ExecutiveSummary.............................................................................................pg4
aOrganizationDescription.....................................................................................pg4
bCompetitiveAdvantage........................................................................................pg4
cCustomerNeed...................................................................................................pg4
dInitialFinances....................................................................................................pg4
eFoundingTeam...................................................................................................pg5
fKeyPoints...........................................................................................................pg5
BusinessConcept...............................................................................................pg6
aBusinessDescription.........................................................................................pg6
bCustomerDescription........................................................................................pg6
cValueProposition...............................................................................................pg6
dBenefitDelivered................................................................................................pg6
ProductDescription............................................................................................pg7
aDescriptionofProduct........................................................................................pg7
bProductUniqueness...........................................................................................pg7
cProductSuperiority.............................................................................................pg7
dProprietaryRights..............................................................................................pg7
eLiabilities............................................................................................................pg7
fPrototypeModel.................................................................................................pg7
IndustryAnalysis................................................................................................pg9
aIndustries...........................................................................................................pg9
bMarketTrends...................................................................................................pg9
cMarketPatterns.................................................................................................pg9
dIndustrySegment...............................................................................................pg9
eMajorCompetitors..............................................................................................pg9
fSizeofIndustry..................................................................................................pg9
gAdditionalInformation........................................................................................pg9
Market/CustomerAnalysis...................................................................................pg11
aTargetCustomers..............................................................................................pg11
bStrengthsandWeaknessesofProduct.............................................................pg11
cCompetitors........................................................................................................pg12
dSizeofTargetMarket........................................................................................pg12
eCustomersMotivation........................................................................................pg12
fMarketPenetration............................................................................................pg12
gAdditionalInformation........................................................................................pg13
FoundingTeam....................................................................................................pg14
aFoundingTeam....................................................................................................pg14
bCompanyOrganization........................................................................................pg14
cNameofCompany...............................................................................................pg14

dOverallStrategyandObjectives..........................................................................pg14
eAdditionalInformation.........................................................................................pg15
SalesStrategy.....................................................................................................pg16
aProductDistribution............................................................................................pg16
bTechniqueofProductSales...............................................................................pg16
cCommunicationwithCustomers..........................................................................pg16
dAdvertisement.....................................................................................................pg16
eCostsofSalesStrategy......................................................................................pg16
fAdditionalInformation.........................................................................................pg16
FinancialPlan.......................................................................................................pg18
aPriceofProduct...................................................................................................pg18
bAmountofExpectedSales...................................................................................pg18
cCostofProducingProduct...................................................................................pg18
dProFormaIncomeStatement...............................................................................pg19
eProFormaCashFlow..........................................................................................pg20
fCashNeededtoStartBusiness...........................................................................pg20
gBreakEven..........................................................................................................pg20
hImprovements......................................................................................................pg20
iAdditionalInformation..........................................................................................pg20
Feasibility.............................................................................................................pg21
aBusinessFeasibility..............................................................................................pg21
bStrengthsandWeaknessesofBusiness..............................................................pg21
TimelinetoLaunch...............................................................................................pg21
aTasksNeededtoWriteBusinessPlan..................................................................pg21
bHowStartupFundingwillbeAcquired..................................................................pg21
cRolesofFoundingTeamMembers.......................................................................pg22
dPotentialPartners.................................................................................................pg22
eShorttermHires...................................................................................................pg22
fLaunchAnticipation..............................................................................................pg22
Bibliography.........................................................................................................pg24

ExecutiveSummary
3.a.
OrganizationDescription
Blowoutisacompanydedicatedtomakingtheprocessofbodilydryinglessphysicallystraining
andmoreenjoyable.Thebusinessisanelectricalapplianceandwillbecompetingwithother

bathroomappliancescompanies.
3.b. CompetitiveAdvantage
TheBlowoutisuniquemethodwhichutilizesanexistingdryingtechniquebutexpandssothatit
canbeusedforthewholebody.Thisproductcanbeusedinmanysettingsandoffersa
handsfreealternativetodryingoffwhenwet.WhatmakestheBlowoutuniqueisthatitcanbe
installedintoshowerssothattheusercaninstantlyuseitoncetheyhavecompletedshowering.
Itisanappliancethatusesminimalelectricityandcanreplacelargeamountsoflaundry.
3.c.
CustomerNeed
Asopposedtousingwettowels,ordoinglaundry,theBlowoutoffersyouaneasyandeffective
waytodryyourself.TheNationalCenterforAssistedLivingstatesthat64%oftheirregistered
residentsneedassistanceduringtheprocessofbathing.Showeringinandofitselfcanbea
difficultprocess,andtherehavebeenseveralproductsthatcanassistwithbathing.Therehas
beenlittledonetoassistthoseinneedofdryingthemselvesaftershowering,whichiswhy
Blowoutisenteringthemarket.
3.d. InitialFinances
Approximately$24,000willbeneededtoinitializethecompany.Thiswillbeaccomplishedby
havingeachmembercontribute$4,800.Thisseemedlikeanappropriateamountbecausethis
willsufficeforabasicprototypedesignandtesting.

3.e.
FoundingTeam
Thefoundingteamwillbeasfollows:
Table1ManagementTeam
Position Name

Qualifications Skills

CEO

JohnLinton

Engineering

ProjectManagement

R&D

FahadTaimur

Engineering

Design,Process&ProjectEngineering.

CMO

AnarBayarsaikhan

Management

Marketingbackgroundandexperience

COO

RaulGarcia

Management

Managementbackground.

R&D

ZahinChowdhury

Engineering

Design,Engineering

3.f.
KeyPoints
TheBlowoutisafullbodydryerthatoffersconveniencesfullbodydryingthatwillserveusefulfor
thosewhohavetroubledryingthemselveswithoutassistance,aswellaspeoplewhoare
physicallyhandicapped.Itwilladdtotheappealofluxuryhotelsthatwanttofindanedgeover
theircompetitors,

BusinessConcept
4.a.

BusinessDescription

Blowoutisacompanywhichwillsellafullbodydryerthatcanbeusedasanalternativetothe
commontowelfortheprocessofdrying.Thebusinesswilltargetmajororganizationsthatwillbe

abletousethisproductintheirfacilitiesfortheircustomers.
4.b. CustomerDescription
ThemaincustomerswhowillpurchaseBlowoutdryerswillbehotels,assistedlivingand
retirementhomefacilities,gymsandpeoplewhoareaffluent.
4.c.
ValueProposition
Afullbodydryercannotonlyaddtotheappealofaluxuryhotel,butalsoaidassistedliving
facilitiesindryingpeoplewhohaveahardtimedryingthemselves.Whenitcomestodryingafter
ashower,Blowoutdryergetsthejobdone.Thefourmainthingsacustomershouldthinkwhile
theyareusingtheBlowoutisthatittakesminimalefforttodry,itiswarmandcomfortable,itis
luxurious,anditpromotesaneasierlifestyle.
4.d. BenefitDelivered
TheBlowoutwillbeprovidedtotheircustomerwithcompetitiveshippingandhandlingprices.
Ourtechnicianwillinstallourproductforasmallfeeinaprompteffectivemanner.

ProductDescription
5.a.
DescriptionofProduct
TheBlowoutisafullbody,inshowerdryer.Ourproductwillsupplyyouwithwarmair,allowing
youtodrycompletelyinlessthan30seconds.Unlikemanycommonlyfoundhanddryers,the
Blowoutwillfocuslessonthevelocityoftheflowrateofairandfocusmoreontheheatoftheair
thatisproduced.Thiswillallowtheindividualtodryinacomfortablemannerwithoutthe
unwantedexcessnoiseanddiscomfort.
5.b. ProductUniqueness
WhatisuniqueabouttheBlowoutisitsreliability.Theproductwillhavesettingsforairpressure,

aswellasadialtodeterminetheheatoftheair.Thebenefitofourproductisthatyoucandry
quicklyandwillnolongerhavetodealwithlargeamountsofdirtyorwettowels,consequently.
muchlesstimeandmoneywillbespentonlaundry.
5.c.
ProductSuperiority
Ourproductwillbecheaperandmoreefficientthancompetingproducts.Otherproductstryto
outdothemselvesandhavemorecomplicateddesigns.Ourdesignwillbesimple,ultimatelywith
thegoalofcompletelydryingthecustomer.Webelievethatcustomersarelessinterestedinthe
lookoftheproductandmoreinterestedontheefficiency(gettingdryfast).
5.d. ProprietaryRights
Afterlookingatnumerouspatents,wehavedeterminedthattopatentourproductweonlyneed
todifferentiateourdesignfromexistingproducts.Therefore,wewillapplyforapatentforour
design.
5.e.
Liabilities
Oneweaknessofourproductisthatitwillbeexpensivetodesignandmanufactureit.The
installationoftheproductmayalsobepriceyasmanyfactorsneedtobeconsideredwhile
installing.Hardwarefailureisalsoconcernastherecanbeapossibilityofanelectricalshockto
theuser.Thisneedstobeoneofthemainconcernsduringthedesigningphaseaseverywire
needstobeproperlyinsulatedinordertoavoidelectricshock.
5.f.PrototypeModel
Figures1&2showtheinitialprototypefortheBlowout.Thetwolargejetswillprovidethe
majorityofthewarmerairandwillprovideafixedandsteadyairflow.Thesetwojetswillprimarily
focusondryingtheuserthroughheatandasteadyairflow.Theywillberesponsiblefordrying
themajorityoftheindividualincludingthetorso,midsectionandupperthighs.Thesixouterjets
willprovideamoreintenseairflowandwillbedesignedasballinsocketandwillbeabletobe
positionedwithin30degreesinanydirection.Thesejetswillbefocusedonsheddingthewater
offoftheuser.Thesejetscanbepositionedsothattheusersarms,headandlegscanbedried.

Figure1ThreeViewofBlowoutPrototype

Figure23DimensionalViewofBlowoutPrototype

IndustryAnalysis

6.a.
Industries
Themainindustrythatwewillbeenteringisthehospitalityindustry.Thisindustryissubstantial
enoughforourcompanytoprosperwithintheearlyfewyears.Thepositivesideisthatinthe
UnitedStates,thehotelindustryisboomingmorethananywhereelseintheworldaccordingto
JimBurbawhomisonthechairofAmericasLodgingInvestmentSummitandpresidentofthe
BurbaHotelNetwork.AtALIS,theworldslargesthotelinvestmentconference,98percentof
delegates,includinginvestorsandhotelserviceproviders,saidtheyexpectpositiverevenueper
availableroomgrowthin2013.Ourbusinesswillcomplementandaidintheincreasedrevenues
withinthehotelindustrybyaddingadditionalvaluetothehotelsthatuseourproduct.Anotherbig
sourceofrevenuewillbetheassistedlivingfacilities,gymsandthehomeappliancesindustry.
6.b. MarketTrends
Someofthetrendsinthehospitalityaretheamountofpeoplepayingtooccupyroomsaswellas
thesupplyofthosehotels.Asignificanttrendinthenearfutureistheretirementofthe
babyboomersgeneration.Therearemanypeoplewhoaregrowingolder,andwiththeincrease
inmedicaltechnology,thoseindividualswillhaveahigherlifeexpectancy.Thistrendshowsan
increaseintheamountofelderlypeoplewhichwillincreasethecustomerbaseofoneof
Blowoutsmaincustomers.
6.c.
MarketPatterns
Inthehotelindustry,thedemandandoccupancyforroomscontinuestoclimb.Assistedliving
facilitiesarealsogrowingeachyearwithmoreandmorebabyboomersrequiringassistancein
theireverydaylife.Themarketpatternsarepromisingforourcompanytoexplore.
6.d. IndustrySegmentHowdoesthisindustrysegmentthemarket?
Theindustrysegmentwehavechosenconsistsofhotels,retirementhomes,gyms,and
individualswhocanaffordourproduct.Therefore,wewouldfallintheshoweringanddrying
industry.
6.e.
MajorCompetitors
Atthemoment,themarketforfullbodydryersisrelativelysmall.Themaincompetitorsinthefull
bodydryersarethealreadyestablishedTornado,Europeanbodydryer,andtheKingstonBody
dryer.Anothermajorcompetitoristhetowelbecauseitisverycheapandmuchmoreaccessible
tothegeneralpopulation.
6.f.SizeofIndustry
Theindustryinthefullbodydryeriscurrentlyrelativelysmall.Inasimilarmarkethowever,the
handandhairdryerarealargeindustryandiscontinuingtoexpand.Thiscanbeapositivefactor
fortheBlowoutastheindustryofelectricaldryingmachinesareincreasing.
6.g. AdditionalInformation
Additionalinformationthatwillbeneededwillbethecompetitorsyearlysales,customersthat
areinterestedinbuyingourproduct,andthestatisticsofthemarketforthenextdecade.
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Market&CustomerAnalysis
7.a.
TargetCustomers
Thereare3maintargetcustomersforthisproduct.Onewillbeassistedlivingfacilitieswhich
includeretirementhomes,nursinghomesandotherorganizationsthatservetohelpthosewho
havephysicallyhandicapped.TheBlowoutservesasameanstoassistthosewhoare
physicallyunableorhavedifficultywithdrying.
Forthenexttargetcustomers,hotelsandgyms,theBlowoutwillbealuxurywhichcanhelp
organizationsbygivingthemacompetitiveadvantageoverrivalingcompanies.TheBlowoutwill
beseenasafeaturethatcanattractcustomerstousetheirfacilities.Thiscanalsoprovidea
solutiontocuttingdownlaundrycostsasindividualswillneedtouselesstowels.
ThelasttargetcustomerwillbetheaffluentIndividualswhoarewealthyandwhomaydesireto
installthisproductintheirownhometomaketheirhousemoreluxurious.

7.b. StrengthsandWeaknessesofProduct
ThestrengthsoftheBlowoutisthatitisefficientanditwillmakeiteasierforindividualstodry.It
canalsodecreasetheresourcesusedforlaundry.Thesimpledesignallowstheinterfacetobe
veryuserfriendlyandallowsanyonetobeabletouseit.
Anotherstrengththatcanbenefitorganizationsthatutilizeitisthatitreduceslaundrycosts.This
canallowhotelsandgymstosavealotofmoneythatwouldbeusedforlaundryandtowels.It
wasestimatedbyMODEhanddryersthatelectrichanddryerscouldcutoperationalcosts
significantly,insomecasesupto99%.Thecostofpurchasingpapertowelswasfarmore
expensivethanthecostoffewkilowattsofenergy.Thiscanbetranslatedtothefullbodydryer.
Thecostsofpurchasingtowelsandregularlydoinglaundrycanbecutsignificantlyif
organizationsswitchtoelectricdryers.ThedesignoftheBlowoutwillbemoreefficientthanthe
competitors.Alargeportionofourcostwillbededicatedtooptimizingdesignandforlowering
thecost.BusinesseswillbeabletobuyinbulkwithdiscountsandBlowoutwillprovidefor

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shippingifdryersareboughtinbulk.Tomakeitmorereasonableandaccessible,Blowoutwill
provideaninterestfreefinancingoptionaswellasdiscountsforthebulkamountofproducts
bought.
Theweaknessoftheproductisthatitisexpensiveandmaynotseemlikeabeneficiaryproduct
forcompanieswhoarenotinneedofit.Itmightnotbeeasytoconvincepublicassistedliving
facilitiesconsideringthetightbudgettheyoperateon.

7.c.
Competitors
TornadoBodyDryerandKingstonwillbeourmaincompetitorsintheU.Sinthebeginning.Inthe
futureasweexpandtoforeignmarkets,theEuropeanTowelfreedryerwillalsobeacompetitor.
BymakingBlowoutmoreefficientandcheaper,wewillattractcustomerswhoarelookingtobuy
fullbodydryers.Ourfuturecompetitorscanalsobecompanieswhomanufacturehandandhair
dryerswhoarelookingtoexpand.
7.d. TargetMarket
Oneofthemaintargetmarketprimarilyincludeselderlypeople,inwhichtheUSCensus
estimatedthatthereareover40millionpeoplewhoareovertheageof65intheUS.Thisisa
largetargetaudienceandnarrowingitdownevenmore,thereareover2000continualcare
retirementcommunitiesacrossthenation.
Thenextmaintargetaudienceareupscalehotelsandresorts.Thereareafewhundredofthese
locatedacrosstheUS.Initially,thesuiteswouldbethefirstroomstohaveaBlowoutinstalled,
butovertime,theblowoutcouldbeinstalledintootherroomsinthesehotels.
Gymsarealsoalargetargetaudiencethatistakenintoaccount.WorldFitnessTraining
estimatesthattherearearound4000majorgymslocatedwithintheUnitedStates.TheBlowout
wouldgivegymsacompetitiveadvantageoverothergyms.
Thefinalmarketincludesanyindividualswhowanttopurchasethedryerforpersonaluse.
TheseindividualswouldusetheirownmoneytopurchasetheBlowoutforthepurposeofluxury,
comfortandwellbeing.
7.e.

CustomerMotivation

Blowoutisanefficientproductthataddsluxurytothebathroomsof5starhotelsandeases
dryingafterashowerespeciallyforindividualswhoareneedassistancewithdrying.
Gymsspendover100sofdollarsamonthonpurchasingtowelsandkeepingthemclean.Our
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productwillcuttheircost,andevengivegymscompetitiveadvantageovertheircompetitors.
7.f.

MarketPenetration

Wewillstartoffwiththegoalofgettingcontractswithpotentialcustomerswhichwilljumpstart
ourcredibilitywithothercompaniesandindividualconsumersaswell.Oncewecanstart
manufacturinganefficientBlowoutdryer,wewilluseadvertisementsinlocalnewspaper,
YouTube,Socialnetworkingwebsitesbyspecificallytargetingourcustomers.
7.g. AdditionalInformation
Statisticsofhowmanybusinessesandindividualsareactuallyinterestedinourproduct.Our
targetmarketsareincreasingincludingthenumberofretirementhomes,gyms,andluxury
hotels.Wewillneedthemarkettrendsforthenextfiveyears.

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FoundingTeam
8.a.

FoundingMembers

Thefoundingteam,whichwasseeninTable1,consistsof5members.
JohnLintonistheChiefExecutiveOfficer(CEO).Hehasexperienceinprojectmanagementand
leadershipwhichwillallowhimtoproperlyrunthecompany.Healsohasabackgroundin
engineeringandaerodynamicswhichwillbehelpfulduringthedesignprocessasthefluidflow
theBlowoutproduceswillbeanalyzed.
RaulGarciaistheChiefOperatingOfficer(COO).Hehasmanagementbackground,leadership
experience,andworkswellwithotherpeople.
FahadTaimurwillbeinR&D.HeisaChemicalengineerskilledinProcessdesignandproject
development.HehasexperienceinthePharmaceuticalindustrywhereheusedLeanandSix
Sigmatoolstohelpincontinuousprocessimprovement.
AnarBayarsikhanwillbetheChiefMarketingOfficer(CMO).Hehasbothmanagementand
marketingbackgroundandexperience.Hehasdonefulltimeinternshipsasaprojectmanager
andamarketingspecialistinthepastandworkseffectivelywithcoworkersinabusiness
environment.
ZahinChowdhurywillbeinR&D,heaCivilEngineeringskilledindesignandalsohasexperience
ingraphicdesignandbusinessexperiencehelpinghisfatherrunhisfamilybusiness.

8.b. CompanyOrganization
BlowoutwillbeaCorporationwhichwilllowerouroveralltaxliability.
8.c.
NameofCompany
Blowout,inc.Thecompanydoesnotexist,butoncethefoundingteamhasalltherequired
informationincludingoptimaldesignandmarketstatistics,thecompanywillberegistered.
8.d.

OverallStrategyandObjectives

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Theoverallstrategyistoenterthefullbodydryermarketandcompetewithexistingcompanies.
Thegoalofthecompanyistogrowbigreachingrevenuesof$100millionin78years.Blowout
wantstobethebiggestselleroffullbodydryers.Eventually,thecompanywillgopublicwithan
IPOwhichwillenableustoraisecapitalfaster.
8.e.
Whatadditionalinformationdoyouneedtodescribeandorganizeyourfounding
teamandcompany?
Weneedtofigureoutthenumberofemployeesweneedtohire,thesizeoftheR&Dteam
whichwillbeinchargeofdesigning,producingprototypesandperformingextensivetestingon
theBlowout.Themainareasofresearchwillbewithelectricalwiring,fluiddynamics,vibrations
andstructures.Wewillalsoneedinformationaboutmanufacturingcompanieswhichcan
customdesignourproductsatthecheapestpriceforthemostefficientproduct.

SalesStrategy
9.a.
ProductDistribution
Wewillhireasalesteamaswegrow.Asfarasdeliveryoftheproduct(s)isconcerned,wewill
sendittothecustomer,andwewillfindatechnicianinthatareawhocaninstalltheproductfor
thecustomer.
9.b. TechniqueofProductSales
Initially,wewillbeourownsalesrepresentativesandoncewestartgeneratingsignificantprofit,
wewillhiresalesexperts.Wewillusesocialmedia,andadvertisementsaimedtowardsour
customers.Wewillcontacttheowner/administratorsofhotelsandgymstotalktothemabout
product.
9.c.
CommunicationwithCustomers
Blowoutwillbeabletocommunicatetothecustomersusingthefollowing:
Onlinemagazinesandnewspaperadvertisements
Socialmediaadvertisementsaimedtowardstargetmarket
Salesteamwillbeinchargeofcommunicatingwithbusinesses
YouTubeadvertisementsandtestimonials
9.d.

Advertisement

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Advertisementsinonlinemagazinesandsocialmediawillraiseawarenessaboutourexistence
inthebeginning.Mostofthesaleswillbebasedonaneedbasis.Webelievethatassistedliving
homeswillbuythesetomakeiteasierforthemtodrytheresidentsiftheyneedspecial
assistance.Thiscouldalsomakethelivesofpeoplewhotakecareofphysicallyhandicapped
peoplemusteasierasfarasdryingafterashowerisconcerned.Usingvariousonlinevideo
testimonialsofpeoplewhohaveboughtandusedourproduct,wewillconvincemorepeopleto
buytheBlowoutdryer.HavingafullbodydryerinVIPbathroomsinhotelswillincreasethe
overallappealofluxuryhotel,henceBlowouthasthepotentialtoattractalargeamountof
customers.
9.e.
CostsofSalesStrategy
Inthebeginning,mostofthesalescostwillberelatedtoadvertisinginvarioussources.Asthe
businessgrows,wewillinvestmoreinadvertisingtoreachabroaderaudiencenationwide.To
helpwithsalesthroughsocialmedia,wewillhireinternswhowillworkexclusivelyonpromoting
Blowout.

9.f.
Whatadditionalinformationdoyouneedtocreateaneffectivesalesstrategy?
Wewillhavetofindoutthecostofadvertisinginmagazines,socialmediaandonGoogleads.
Wewillalsohavetodeterminethebeststrategytoreachourcustomersinthehospitality
industryaswellasprivateandpublicassistedlivingfacilities.Thesizeofoursalesteam
deependsonhowmuchfundingwecangetinthebeginning.

FinancialPlan
10.a. PriceofProduct
TheBlowoutwillbesoldat$1599.99forindividualunits,howevertherewillbediscountstobulk
amountofBlowoutspurchasedasseeninTable2.
Table2Discountsforbulkproducts
Discount

AmountBought

15

5%

10

7%

20

10%

50

15%

100

10.b. AmountofExpectedSales
Inthecourseoffiveyears,weplantosellaround35,500units.Oursaleswillincreaseovertime
almostexponentiallyaswearebecomemorewellknowninourmarket.Weapproximatethatin
thefirstyearwecansellupto1,500units.Byourfifthyearwhereweshouldbeabletosell
approximately15,000units.
10.c. CostofproducingProduct
Thecostsofproducingwillconsistofseveralfactors.Therewillbeinitialdesign,testingand
prototypecostsuntilafullyfunctionalproductiscreated.OncetheBlowoutisverifiedtobe
workingcorrectly,theproductwillbeproducedinmassquantity.Theproductwillcostsaround
$735whentakingintoaccounteconomiesofscale.Thiscostwasdeterminedbyestimatingthe
costoffullbodydryersmadebyourcompetitors.

10.d. ProFormaIncomeStatement
Table3showstherevenueprojectioninorderforBlowouttoachieveits$50million
goal.Itcanbenotedthatthenumberofunitssoldincreasessignificantlyeachyear.
Table3RevenueProjections

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Table4ProFormaIncomeStatement

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Table5ProFormaCashFlowStatement

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10.f. CashNeededtoStartBusiness
Blowoutwillusepurebootstrappinginordertogetofftheground.Atthesametime,wewill
activelypursueventurecapitalists,governmentgrants,andsmallbusinessloansinordertobe
abletoexpandthebusiness.Weestimatethatwewillneedapproximately$24,000toproduce
ourfirstfullbodydryerwhentakingintoaccountdesign,researchanddevelopmentand
productioncosts.
10.g. BreakEven
Weplantobreakevenbetweenoursecondandthirdyearofoperation.
10.h. ImprovementsDothesenumberslookattractiveenoughtoproceed?Howcan
theybeimproved?
Thoughournumberslookverycostly,webelievetheyareattractiveenoughtoproceed.
Eventually,wewillbemakingmillionsofdollarsinprofit.Theprofitcouldbeimprovedbymaking
themostefficientfullbodydryerforthecheapestpriceascomparedtoourcompetitors.Ifwe
canbeatourcompetitorspriceandefficiency,wecanimproveourprofitsignificantly.

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FeasibilityDecision
11.a. BusinessFeasibility?
Aftercarefulconsideration,theproducthasbeendeemedfeasiblewithattentivebusiness
strategiesinuse.Wemustbeefficientinmarketingourproducttocatchtheattentionofpotential
customersandtogetournameoutthereintheindustry.Ourbusinessisveryfeasibleifwecan
contractwithcompaniesmoresothanindividuals.Contractswithhotelsandgymswillincrease
ourfeasibility.
11.b. StrengthsandWeaknessesofBusiness
Webelievethatthestrengthofthebusinessisthatitisverycreativeandinnovative.Itcanadd
appealtoaluxuryhotel.Itcanimprovethelivingstandardsofretirementhomesaswellasthe
livesofphysicallyhandicappedpeople.Theabilitytodesignandsellanefficientandrelatively
cheaperfullbodydryerascomparedtoourcompetitorswillbeourmainstrength.Theweakness
ofourbusinessisthatitwillbeverycostlytostartproducingfullbodydryersinthebeginning
consideringthecostofresearchanddevelopmentaswellasproduction.

TimelinetoLaunch
12.a. TasksNeededtoWriteBusinessPlan
Itwillbeimportanttofindouttheexactcostofmanufacturingthefullbodydryer,thepriceof
eachunit,priceofunitssoldinbulk,andthemostprobableinvestorsorsourcesoffundingas
wellasoverallannualcosts.Contractswithcustomerswillalsoenableustowritethebusiness
plan.
12.b. StartUpFunding
Eachmemberwillinvest$4800tomakethefirstfewprototypes.Wewillrelyonbankloansor
Venturecapitaliststosecurefurtherfunding.Wewillhiresomeonewhohasexpertisein
EconomicsorFinancefromPennStatetooverseetheprocessofsecuringfunding.Thepros
andconsofventurecapitalismversusbankloanswillbeinvestigatedtodeterminethebest
strategyforthecompany,

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12.c. RolesofFoundingTeamMembers
JohnLintonwillworkasCEOofthecompany.Hisprojectmanagementexperiencecoupled
withhisleadershipskillswillallowhimtotakethecompanywhereitneedstobe.
FahadTaimurasanEngineerwillworkcloselywiththeR&Dteamaswellasproduction
contractorstoproduceefficientdryers.UsinghisLeanandSixSigmaexperience,hewillplaya
vitalroleinoptimizingtheprocessaswellascuttingwastewithintheR&Dteamandinthe
productionline.
AnarBayarsaikhanwillworktowardsmarketingtheproductandthebusinessastheCMOofthe
company.Usinghispastexperienceasamarketingspecialist,hewillknowhowtoadvertisethe
Blowoutefficientlyandcommunicatewithotherbusinesswhenmakingcontractsanddeals.
RaulGarcia,asCOOwillmanagethedaytodayoperationsofthefirm.Hehasamanagement
backgroundalongwithleadershipexperience.Hewillworkcloselywithallemployeestoseethat
tasksareaccomplished.
ZahinChowdurrywillworkinR&DalongwithFahadTaimur.Heisanengineerandhas
experiencehelpingrunhisfathersbusiness.
12.d. PotentialPartners
BlowoutwilltrytoformstrategicpartnershipswithGeneralElectric,Xceleratorhanddryersand
othercompanieswhichwillprovetobemutuallybeneficial.Itmightbeeconomicallybeneficialfor
Blowouttopartnerwithacademicconsultantsinthefieldofaerodynamicsandengineeringto
optimizethedesignofthedryeraspartofourR&Dteam.
12.e. ShorttermHires
Wewillneedtohireachieffinanceofficer,internsandtechnicianstoinstallourproductforour
customers.
12.f. ProductSecurity
Blowoutwillpartnerwithproductdesignspecialistsandmanufacturerstodevelopthefullbody
dryer,butthedesignwillbetheintellectualpropertyofourcompany.Toprotectourdesignfrom
ourcompetitors,wewillpatentthedesign.
12.g. BusinessLaunch
ThebusinesswillbelaunchedinJuneof2013andbusinesswillcommenceinthesameyearas
westarthiringthepeopleweneed,aswellascontractingwithcustomerstogiveusajump
start.

21

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