Starting A New Venture MGMT

6630
Business Plan:
3D Additive Manufacturing
Technologies, Co. 3-DAMTM

Joe Ott
7-18-2012

1. BUSINESS CONCEPT
1.1. INTRODUCTION / EXECUTIVE SUMMARY
This business plan will outline the scope and make-up of the 3-DAM TM company, the market,
competition, and financial outlook of the proposed company. The business name of the
company to be formed will be 3D Additive Manufacturing Technologies, Co. otherwise
known as 3-DAMTM. This name comes from a combination of the two common names for the
technology the company is based upon, 3D Printing and Additive Manufacturing.
With 3-DAMTM comes manufacturing freedom!! Joe Ott
The initial location of the first office should be located in Houston, TX. According to (Kotkin,
Dec 2011) Forbes Magazine4, this is currently the largest center of manufacturing in the US.
3-DAMTM will utilize the technologies of additive manufacturing and offer a Kinkos TM style of
service and manufacturing to customers.
From ASTM Designation: F2792 10 - Standard Terminology for Additive Manufacturing
Technologies2,
additive manufacturing (AM), nprocess of joining materials to make objects from 3D
model data, usually layer upon layer, as opposed to subtractive manufacturing
methodologies, such as casting, forging, and machining. Synonyms: additive
fabrication, additive processes, additive techniques, additive layer manufacturing,
layer manufacturing, and freeform fabrication. It can encompass metals, polymers,
and electronics and apply to a range of structural and functional materials as well as
components for an array of defense and energy applications.
Why pursue additive manufacturing? There are many benefits in using additive
manufacturing to make hardware over conventional manufacturing5:
Design flexibility
No tooling constraints
Allows complex models
No hard tooling required
No material lead time
Automated process
Reduced development expenses
Faster concept design to functional component
Reduced manufacturing costs
Near wrought material properties
Reduced product life cycle cost
Reduced manufacturing time: hours/days/weeks vs. months
Minimal secondary machining - near-net shape part
Additive manufacturing is an emerging industry.
Some

of the difficulties with additive manufacturing are:

New technology not everyone is familiar, technology evolving
High barriers to entry initial high start-up costs for equipment
Material properties are still being defined
Technical and process models are limited

3-DAMTM projects that it will be able to generate approximately $340,000 in sales in the first
year of operation, in its first store. This is projected to grow by 12.5% per year per store to
$2,343,000 by YR3 as the company opens its 5th store. As 3-DAMTM will be in its initial

growth phase it is not expected to make profit over the first 3 years as the focus will be on
explosive growth to the key manufacturing centers in the US.
The keys to success for 3-DAMTM will be focusing on the following core attributes:
Flexibility providing solutions for variety of customer and their unique requirements.
Adaptability have technology and capability for variety of needs.
Sustained Growth have capacity where and when a customer needs it.
Technical Know-how have understanding of how to use additive manufacturing
technology to provide best results.
Speed providing solutions faster and more efficient than anyone else.
Funding have cash and capital to sustain growth and profit.
The technology has such potential that President Obama announced a Pilot Institute for
Manufacturing Innovation in March 20126. As described in the announcement, "The pilot
institute will host centralized, openly accessible capabilities, the infrastructure needed to
support advances in manufacturing (housed in one or more facilities) through development,
demonstration and evaluation of product and process technologies relating to the
technology area (additive manufacturing)."
This business plan was developed using SmartPlan Generator version 1.5 10

1.2. BUSINESS IDEA

3-DAMTM is manufacturing freedom 3-DAMTM slogan
The business idea behind 3-DAMTM is to cross additive manufacturing technology with the
KinkosTM concept. The company will create business centers of excellence where people
can bring or transmit, by web/email, a design concept (usually in form of a CAD model) and
have the design fabricated in a hours to days into a useable or near usable part. Business
would staff trained engineers and technicians to assist customers in selecting the correct
technology to manufacture their hardware. Staff would have the necessary skills to providing
modifications to designs to use additive manufacturing machines to make best part possible,
set-up and operate machines, and recommend / coordinate necessary post processing. All
necessary raw materials and machines would be stored at each store location.
1.3. BUSINESS MODEL
The business is envisioned to be a Sole Proprietorship during the initial start-up phase. The
business would initially target a small volume of jobs, applying a medium margin. As the
business develops it would expect to grow into medium volume with a medium margin.
A large market exists for this style of business. Additive manufacturing can
compete/complement against all traditional manufacturing methods (castings, forgings,
machining, etc.) and many industries, such as automotive, tooling, aerospace,
medical/dental, hobbyist, could utilize additive manufacturing.
It is envisioned that customers would contact a local 3-DAM TM business center to initiate a
job. A job may consist of a request to assist in engineering an additive manufacturing
solution as well as create some parts/hardware to the customers necessary specifications.
Additional post processing may also be required and would be coordinated with outsource
processing suppliers.
As part of a Diversification Growth Strategy 3-DAMTM would practice Forward Integration by
getting in front of the customer; the customer is the primary focal point. The customer
would pay a fee for evaluation and non-reoccurring engineering to evaluate as well as prep a
part(s) for build. Additionally, a developmental build may require 1-3 test builds to ensure
necessary results. The customer would additionally be charged for materials, machine time,
and technician time to make hardware. Finally, a customer would be required to pay for any
post processing necessary that customer elects for business center to perform (this may be
outsourced to strategic partners and would be a facilitation fee in addition to supplier fees).
1.4. BUSINESS GOALS
The growth of 3-DAMTM will be of primary importance to the businesss success. To assist in
growth the first two years will be spent establishing a solid foundation.
2 years of operation:

Increase market share establish 4 stores in largest US manufacturing locations

(Houston, TX; Milwaukee, WI; Seattle, WA; San Antonio, TX) 4
Increase market penetration over time continue to grow each stores revenue at
least 12.5% yearly (this is the industrys expected growth rate from 2011 to 2020).
Expand the number of clients - commercial, residential, government, and industrial
markets
Establish new pricing incentives and promotions
Build long lasting quality partnerships

Establish relationships with local advertisement agencies (weekly/monthly flyers,

radio, television, news
papers, classifieds, college campuses/websites, Face-book, personal webpage)
Join Committee F42 on Additive Manufacturing Technologies1

6 years of operation:
Increase market share establish a store in 10 major US cities. Have plan developed
to have 50 stores in major US cities by 10 years of operations.
Increase market penetration over time continue to grow revenue at least 12.5%
yearly, per store.
1.5. KEYS TO SUCCESS
The key to success for 3-DAMTM will be focusing on the following core attributes:

Flexibility providing solutions for variety of customer and their unique requirements.
This will be achieved by understanding each markets unique needs (part sizes,
quality level, common materials, etc.)
Adaptability have technology and capability for variety of needs. This will be
achieved by procuring additive manufacturing machines that initially will be able to
serve the needs of the majority of markets.
Sustained Growth have capacity where and when a customer needs it. By targeting
major manufacturing cities and business and residential centers, 3-DAM TM will be at
the fingertips of industry. By taking internet and phone orders can provide service
worldwide.
Technical Know-how have understanding of how to use additive manufacturing
technology to provide best results. Will train and educate sales engineers and
operators in various additive manufacturing technologies. Will provide continuing
education as technologies change and mature.
Speed providing solutions faster and more efficient than anyone else. This will be
achieved by streamlining the stores infrastructure using lean concepts and software
integration. A lean value chain will ensure post processing turn time is minimized.
Funding have cash and capital to sustain growth and profit. Aggressively campaign
for funding via government and private investment.

2. THE COMPANY
2.1. LEGAL STRUCTURE AND OWNERSHIP
3-DAMTM will be listed with the Internal Revenue Service as a sole proprietorship and will be
privately owned. The principle owner (and equity shareholder) will be Joe Ott. Minor equity
shareholders will be silent partners based upon funding investment agreements but will not
be greater than 49% equity holding.
2.2. BOARD OF DIRECTORS/SECRETARY
Joe Ott will chair the board. As principle owner/CEO/CTO, Joe will have complete oversight
and responsibility for the company. As owner/CEO/CTO Joe will get paid upon the company
making a profit in both cash and ownership equity, to be set aside in an account for use if
equity sold to investors. Payment will be determined after all other monthly debts
accounted.

Additional Board members would be advisors from various investment/venture capital

groups.
2.3. ACCOUNTANT
Accounting and Human Resources will be outsourced to a 3rd party company and overseen
by the CFO. The company will be responsible for all day to day accounting and human
resources activities, including accounts receivable and payable, health and dental care, 401k
management, and taxes, etc.
2.4. TECHNOLOGY TEAM will consist of a materials expert, a technology and processes
researcher, and a Training and Quality expert.
2.5.
BRANCH MANAGEMENT oversee local offices and sales functions.

Figu

Figure 1. Basic Organizational Structure

3. PRODUCTS / SERVICES
3.1. PRODUCT AND SERVICE SUMMARY
3-DAM will provide the following products and services:
Plastic and metal parts and concepts, produced in a few hours or days, using additive
manufacturing technologies. Individual parts or part pieces will generally be as up to
as large as the build chamber of each machine allows and as small as the accuracy of
the technology allows. The initial materials that will be available for customers parts
will be limited to those qualified by the vendor the anticipated plastic and metal
machines allow. Through technology development 3-DAMTM will look to grow this list.
Evaluation and modification of designs/CAD and concepts for application to additive
mfg.
Coordination of post processing. Initially post processing will be outsourced. As 3DAMTM grows it is anticipated that machining/post processing resources will be added
to the product and services summary for each store.
Metrology center accurate measurement evaluation through surface and
dimensional scanning using laser and light machines.
3.2. THE CUSTOMER
The target customers are everyone from local hobbyist and enthusiast to large Fortune 500
companies needing unique part developed and produced. There are many companies

looking into using additive manufacturing to improve their capabilities. GE, Pratt & Whitney,
Boeing, and Lockheed-Martin are some larger companies all looking to improve
manufacturing by printing parts.
The current market doesnt have local to-go-to places where customers can easily
contact/interact with someone who will help them take advantage of additive manufacturing
for their requirements. All competition is located in a few select locations and they provide
services internationally to customers, usually targeting large business. There is no one place
to get all your materials and additive manufacturing methods and post-processing under
one roof.
3-DAMTM would provide a place for customers to have one-stop-shopping for their
manufacturing. Customer(s) can contact the business center by phone, web, or face-to-face.
Sales engineers would be available to help customers work through product development
and iteration until the final product is ready. Pricing would be evaluated based upon the
necessary amount of engineering and development to make hardware, material
considerations, and post processing requirements.
Some of the unique benefits of a "Kinkos" style of additive manufacturing would be 5:
Reduced Weight Structures - components no longer constrained by tooling
definition/capability
Integrated Part Consolidation - advanced single-piece designs
Improved Performance - advanced features can be combined into designs
Embedded Features integral to part
Tailored Materials - functionally gradient alloys, metal-composite components
Speed - Additive manufactured parts often have weeks to months lead time
reduction, in comparison to parts mfg. by castings or forgings.
Tooling - Additive manufactured parts often do not require tooling to be completed.
Expertise - customers would have access to people with expertise in taking concept
ideas from initiation to final delivery.

Pictures courtesy of Rapid Quality Manufacturing5

3.3. COMPETITION
Other companies trying to adopt the Kinkos model are:
1. Mydea Technologies digital model shop and an additive manufacturing and rapid
prototyping provider. http://www.mydeatechnologies.com/ (See Appendix 1).
Owners: Michael Siemer
Annual Sales: $520K
Competitors distribution channel: Internet
Competitors marketing strategy: Internet Sales
Products and Services: Product Development & 3-D CAD Modeling, Rapid
Prototyping/Additive Fabrication, Subtractive Rapid Prototyping, Rapid Tooling &
Manufacturing
Competitors price strategy: mid to high cost.
Fees:
Design & Engineering
3-D CAD Modeling, 2-D to 3-D CAD Conversion, Reverse Engineering - $50/hr
Senior Product Design and Design for Assembly & Manufacturability - $100/hr
Rapid Prototyping & Production By Quote
Rapid prototyping costs are driven by the size, materials and other factors.
2. Shapeways 3D Printing company for designers and Do-It-Yourselfers. Helps people make
and sell their items. http://www.shapeways.com/ (See Appendix 2)
Owners: Peter Weijmarshausen
Annual Sales: $1.90M
Competitors distribution channel: Internet
Competitors marketing strategy: Internet Sales, Arts and Crafts forums, Web sales of clients
products, Do-It-Yourself market.
Competitors price strategy: Low to mid cost.
Products and Services: Tutorials, Shapeways Lab, Software, Metals and plastic fabrication,
Online Sales.
The following companies are a selection that specialize in additive technology and would be
competition for their prospective sub-fields:
Morris Technologies - http://www.morristech.com/ Selective Laser Sintering (SLS) metals
C&A Tool - http://www.catool.com/ SLS metals and machine shop
Paramount Industries http://www.paramountind.com/ - Stereolithography (SLA) and SLS of
plastics

Materialise - http://manufacturing.materialise.com/ - a Belgian firm that uses additive

manufacturing to make a range of products, including medical devices.
3.4. PRODUCTION AND DELIVERY
The following are the anticipated costs considerations to produce the products and services
3-DAMTM would offer.
Evaluation and Non-Reoccurring Engineering - Service cost is the salary of the sales
engineer, the technician labor per hour, and any machine time and materials cost to
develop the builds and post processing requirements.
Make parts on-site - Cost of overhead, machine cost per hour, labor per hour for
technicians, materials costs. Additional cost is cost of any special handling concerns
Post Processing - Service cost is the salary of the sales engineer plus, for internal
processing: the technician labor per hour, and any machine time; for external
suppliers - cost of operation by suppliers
Distribution will be accomplished using services such as FedEx and UPS to move
hardware. In-process hardware will be shipped overnight express between post
processing centers. Shipment to the customer will be express or overnight at the
customers desire and billed accordingly.
Costs will be minimized with implementation of lean manufacturing concepts to
minimize holding costs, turn time, etc. and value chain management for external
suppliers.
3.5. TECHNOLOGY
The following technology is necessary for 3-DAMTM in order to create an output. These will be
key technologies that will enable 3-DAMTM to be competitive and maximize turn-time while
keeping quality. These technologies are generally very expensive capital investments.
Additionally, these machines take up floor space and must have special environmental
controls / PPE. It will require significant investments to procure initial machines and supplies
and floor space.
Powder Bed Technologies - Powder Bed is the distribution of thin layer of powder (metal
or thermoplastic) and uses an energy source to sinter/melt the powder into solid form.
Powder Bed Technologies offer high resolution, medium volume, small to medium sized part
capabilities. Two common methods are:
Selective Laser Melting laser beam power source in an inert atmosphere (nitrogen
or argon)
Electron Beam Melting electron beam power source in a heated, vacuum
environment
Deposition Technologies Metal is introduced via powder nozzle or wire feed into an
energy source directly at the build location, which melts to metal into solid form. Deposition
Technologies offer lower resolution, lower volume, larger sized part capabilities. 3 common
methods are:
Laser Powder Deposition laser/power nozzle combination
Laser Wire Deposition use of a continuous feed wire and laser energy source
Electron Beam Wire Deposition use of continuous feed wire and EB energy source
Specialized Software (CAD/CAM, 3D model analysis, project/customer management) will
be required to seamlessly integrate customer models between additive mfg. platforms and
required post processing technologies.

Pictures courtesy of EOS (http://www.eos.info/en/home.html), Arcam

(http://www.arcam.com/), and Optomec (http://www.optomec.com/)

3.6. REGULATORY ISSUES

Additive Technologies are generally considered "Green Technology". But due to the fine
particle size of powders used in manufacture special PPE and air filters will be required.
Inert gases, such as argon, will be used in the manufacture of 3D parts. This may require a
permit.
Other regulatory considerations will be protection of Intellectual Property of customers. As
this technology can easily be used to copy designs, infringement must be evaluated and
considered7. Also, product liability should be accounted for and proper insurance ($1Million
minimum) carried in the case of a bad part causing damage to persons or property 7 or
litigation.
3.7. FUTURE PRODUCTS
New products/services will need to be included in the 3-DAM TM portfolio in the future. As the
additive manufacturing technology continues to grow and change the company will need to
grow and change with it. This will require yearly review and evaluation of existing and new
technologies. An evolving plan will be managed by the Technology Team to review current
technology capabilities, requirements, and customer needs and feedback.
Recommendations will be made to 3-DAMTM management for necessary re-tooling and
development on a quarterly basis. New machines may be leased or bought outright.
Among the current considerations for individual store growth the following will be of primary
importance to round out the business concept and should be incorporated with-in the first 23 years.

Tool and Finishing Shop a tooling and finishing shop is envisioned to be a necessary
post processing requirement for the current portfolio of additive manufacturing
technologies and market needs. While the current plan is to outsource the addition
of a machine and finishing shop would provide the necessary steps under one roof
that 3-DAMTM needs for the Kinkos business concept.
Stress Relief, Heat Treat, HIP these are also additional post processing steps
necessary to provide metals customers what they need for their specific
requirements.
Grow metrology center the metrology (measurement) center will be the focal point
in each store where production validation and quality will be evaluated for each part
produced. Ensuring accurate measurements and testing will be critical to customer
satisfaction.

As the company develops it is expected that Intellectual Property will be developed. This will
most likely be in form of integrating software that manages models from customer delivery
through final product, and materials, machine and process capability and expertise. As
necessary, patents and trade secrets will be filed and licensed as opportunities are found.

4. THE MARKET
4.1. MARKET ANALYSIS
From A FRAMEWORK FOR REVITALIZING AMERICAN MANUFACTURING11, In 2008
manufacturing produced $1.4 trillion in national income, making it one of the largest sectors
in the American economy. The National Association of Manufacturers has estimated that,
every $1.00 in manufactured goods generates an additional $1.37 worth of additional
economic activity - more than any other economic sector. This also helps create jobs one
study found that each job in manufacturing supported three jobs in the rest of the economy.
American manufacturing has been among the most successful in the world. Figure 2 (below)
demonstrates that U.S. manufacturing output began to increase most rapidly after 1994,
propelled by rapidly increasing productivity. This improvement is unmatched by any other
G7 country.

Picture from A FRAMEWORK FOR REVITALIZING AMERICAN MANUFACTURING 11

A sub-category of manufacturing, additive manufacturing had a total of market size of $1.7

billion worldwide in 2011, according to a new industry report from Wohlers Associates Inc.
Wohlers Associates said the additive manufacturing industry has grown in double digits for
15 of its 24 years. The industry declined by 9 percent in 2009, because of the recession, but
then rebounded in 2010 to grow 24.1 percent, to $1.3 billion. New advances in metals and
design tools are fueling new businesses to do additive manufacturing, the report said.
Thirteen companies in Europe now make additive manufacturing systems, and Wohlers said
Europe is a hotbed of metal-based AM equipment. Direct manufacturingusing additive
manufacturing to make finished products, not just prototypeshas grown from virtually zero
in 2003 to 24 percent of the industrys total revenues in 2011.
Emerging Industry
Additive manufacturing can be considered an emerging industry in the US. From A
NATIONAL STRATEGIC PLAN FOR ADVANCED MANUFACTURING12, the National Science
Foundation states that Advanced manufacturing is emerging as an especially potent driver
of future economic growth. A distinguishing feature of advanced manufacturing is its
continual improvement in processes and rapid introduction of new products. It is this
paradigm-shifting aspect of advanced manufacturing that has the most potential to spin off
entirely new industries and lead to production methods that are most likely to stick in the
United States because they are hard to imitate.
The technology has such potential that President Obama announced a Pilot Institute for
Manufacturing Innovation in March 20126. As described in the announcement, "The pilot
institute will host centralized, openly accessible capabilities, the infrastructure needed to
support advances in manufacturing (housed in one or more facilities) through development,
demonstration and evaluation of product and process technologies relating to the
technology area (additive manufacturing)."

4.2. TARGET MARKET SEGMENT

Competitors are targeting select markets in plastics or metal or both, with low to medium
scale production. No operation is looking to bring all the pieces together. 3-DAM TM will target
this market. Potential Customers can be divided into 3 categories:
Small

Businesses 2+ years old (generally wouldn't be start-ups in their first year)

Income - Have manufacturing costs >$1000 per part.
Need - need fast parts made, short runs
Education - do not need to be educated in how to make the parts but need to
understand hardware end requirements.
Work - manufacturing, research, engineering, automotive, etc.
Geographical location - in key starting cities, some internet sales.

Large

Business 2+ years old

Income - Have manufacturing costs >$1000 per part.
Need - need fast parts made, short runs, development iterations
Education - do not need to be educated in how to make the parts but need to
understand hardware end requirements.
Work - manufacturing, research, engineering, automotive, etc.
Geographical location - in key starting cities, some internet sales.

Hobbyists Age - 16 years or older

Income - able to afford part costs between $100 and $2000.
Need - generally have a concept they want to make or need a replacement part for
one that broke
Gender - male and female
Education - majority expected to have some college and / or trade school
Work - professionals and trades
Geographical location key US manufacturing centers / cities, some internet sales.

Potential
Customer

Year
1

Year
2

Year
3

CAGR

Sm. Business

100

513

677

61,30
%

10

52

68

61,48
%

Hobbyists

310

1
590

2
098

61,29
%

Total

420

2
155

2
843

61,30
%

Lg. Business

Figure 3. Expected Number of Customers in Each Market Segment - Expect

average growth of 12.5% per year per store.
4.4. MARKET NEEDS
The current US manufacturing market is still recovering from the 2009 recession and
outsourcing due to Globalization. TJ McCue from his May 2012 article in Forbes 9 states with
financial hardships for many American-based manufacturers, additive manufacturing
technologies offer a way for companies to get started on a shoestring. Additive is the
solution for Americas manufacturing gap with the rest of the world.
Also, the current additive manufacturing market doesnt have a local to-go-to place for
customers interested in taking advantage of the technology. All competition is located in a
few select locations and they provide services internationally to customers. There is no one
place to get all your materials and additive manufacturing methods and post processing
under one roof. Additionally, there is a need for fast development and production of
small/short runs.
4.5. TRENDS

This is a growing market. Technology growth and development of processes and materials
will play a big role in market. Standards and regulation will provide direction for the industry
and technology. The March 2009 RAM workshop, resulted in 26 research recommendations.
Among them13:
1) Produce a new foundation for CAD systems to overcome modeling limitations associated
with building AM parts,
2) Create closed-loop and adaptive control systems with feed-forward and feedback
capabilities for AM
machines,
3) Develop and identify sustainable (green) materials that are recyclable, reusable, and
biodegradable,
4) Develop training programs with certifications for industry practitioners,
5) Develop and adopt internationally recognized standards, such as those initiated by ASTM
International, and
6) Establish a national test bed center with AM machines and expert users to leverage
equipment and human resources in future research.
4.6. GROWTH POTENTIAL
According to TJ McCue in his Mar 2012 Forbes Magazine8 article he states, Additive
Manufacturing, aka 3D Printing, will reach $3.1 billion worldwide by 2016 and $5.2 billion by
2020. If 3-DAMTM can capture even 1% of this market that would be $31 million dollars in
revenue. 5% growth in revenue the next year would result in $32,550,000 of revenue, per
store.

5. THE INDUSTRY
5.1. INDUSTRY ANALYSIS
From A FRAMEWORK FOR REVITALIZING AMERICAN MANUFACTURING11, A sub-category of
manufacturing, additive manufacturing had a total of market size of $1.7 billion worldwide in
2011, according to a new industry report from Wohlers Associates Inc. Wohlers Associates
said the additive manufacturing industry has grown in double digits for 15 of its 24 years.
The industry declined by 9 percent in 2009, because of the recession, but then rebounded in
2010 to grow 24.1 percent, to $1.3 billion. New advances in metals and design tools are
fueling new businesses to do additive manufacturing, the report said. Thirteen companies in
Europe now make additive manufacturing systems, and Wohlers said Europe is a hotbed of
metal-based AM equipment. Direct manufacturingusing additive manufacturing to make
finished products, not just prototypeshas grown from virtually zero in 2003 to 24 percent
of the industrys total revenues in 2011.
5.2. DISTRIBUTION
Business would staff trained engineers and technicians to assist customers in selecting the
correct technology to manufacture their hardware. Staff would have the necessary skills to
providing modifications to designs to use additive manufacturing machines to make best
part possible, set-up and operate machines, and recommend / coordinate necessary post
processing. Agreements would be set up with suppliers to support post processing
requirements initially.
Distribution will be accomplished using services such as FedEx and UPS to move hardware.
In-process
hardware will be shipped overnight express between post processing centers. Shipment to
the customer will be express or overnight at the customers desire and billed accordingly.

Supplies would be managed with Pull-Systems for the various metals and plastic raw
materials. Service
contracts with manufacturers would keep machines running at peak efficiency.

6. SALES
6.1. SALES STRATEGY
It is envisioned that customers would contact a local 3-DAM TM business center to initiate a
job. A job would be evaluated on the spot for low complexity models/hardware and with-in 4
days for complex jobs. Quotations would be valid for 30 days.
Customer information and projects would be kept in a database. Sales engineers would be
able to reference past jobs to speed up processing of repeat customers. Jobs would look to
complete with-in hours for low complexity low volume jobs to a month for higher complexity
jobs.
6.2. PRICE STRATEGY
Pricing would factor in the costs of overhead, materials, and per hour cost for machines and
personnel. The customer would pay a variable fee (set on number of required hours and
difficulty) for evaluation and non-reoccurring engineering to evaluate as well as prep a
part(s) for build. The customer would additionally be charged for materials, machine time,
and technician time to make hardware. Finally, a customer would be required to pay for any
post processing necessary that customer elects for business center to perform (this may be
outsourced to strategic partners and would be a facilitation fee in addition to supplier fees).
A profit mark-up of 30% will be added to each job.
6.3. PROMOTION STRATEGY
Sales will be generated through advertisement and campaigns. The campaign will utilize TV,
trade journals, and the internet (web pages, FaceBook, etc.). Highlights of ads will target
design freedom, no or low tooling, and speed. Additionally, small to large manufacturing
companies will be approached.
3-DAMTM is manufacturing freedom 3-DAMTM slogan
A marketing group will be selected to assist in the marketing campaign on a yearly contract.
A $100k budget will be set for marketing.
6.4. SALES FORECAST
Sales are based upon forecast for 3 major products/services that 3-DAM TM will provide: Sales
Engineering, Fabricated Metals, and Fabricated Plastics.

Sales were forecasted by projected the amount of sales revenue generated by the average
increase in customers each month times the expected revenue each customer would
generate. YR 2 accounts for 4 stores in key cities. YR 3 accounts for 5 stores in key cities.
Expect average growth of 12.5% per year for each store. These numbers are based upon a
best scenario.
Cost of sales is the overhead for the sales engineers and technicians plus an estimated
monthly operating cost for the metal machines of $4000 and plastic machines of $3000.

Sales
Forecas
t
Sales
Engineeri
ng
Powder
Metal
Powder
Plastic

M
1

M
2

M
3

M
4

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

M5

M6

$2,0
00

$5,0
00

$0
$1,0
00

$0
$5,0
00

M7
$10,0
00
$4,00
0
$8,00
0

M8

M9

$10,0
00
$12,0
00
$15,0
00

M10

$15,0
00
$18,0
00
$25,0
00

M11

$18,0
00
$30,0
00
$10,0
00

$18,0
00
$40,0
00
$20,0
00

M12
$20,0
00
$40,0
00
$20,0
00
Total:

YR1

YR2

$98,00
0
$144,0
00
$104,0
00
$346,
000

$503,00
0
$740,00
0
$533,00
0
$1,776,
000

Table 1: Sales Forecast

Sales
Foreca
st
Costs
Sales
Enginee
ring
Powder
Metal
Powder
Plastic

M
1

M
2

M
3

M
4

$
0
$
0
$
0

$
0
$
0
$
0

$
0
$
0
$
0

$
0
$
0
$
0

M5

M6

M7

M8

M9

M10

M11

M12

YR1

YR2

YR3

$30,0
00

$30,0
00

$0
$3,00
0

$0
$3,00
0

$30,0
00
$4,00
0
$3,00
0

$30,0
00
$4,00
0
$3,00
0

$30,0
00
$4,00
0
$3,00
0

$30,0
00
$4,00
0
$3,00
0

$30,0
00
$4,00
0
$3,00
0

$30,0
00
$4,00
0
$3,00
0
Total
:

$240,
000
$24,0
00
$24,0
00
$288,
000

$525,
000
$70,0
00
$52,5
00
$647,
500

$620,
625
$82,7
50
$62,0
62
$765,
437

Table 2: Sales Forecast Costs

Sales

Year 1

Year 2

Year 3

98 000

503 000

664 000

Powder Metal

144 000

740 000

975 000

Powder Plastic

104 000

533 000

704 000

Total sales

346 000

1 776 000

2 343 000

240 000

525 000

620 625

Powder Metal

24 000

70 000

82 750

Powder Plastic

24 000

52 500

62 062

288 000

647 500

765 437

Sales Engineering

Direct costs, sales

Sales Engineering

Total, direct costs, sales

Table 3: Sales Forecast and Costs by YR

YR3
$664,00
0
$975,00
0
$704,00
0
$2,343,
000

Figure 4. - Sales monthly

Figure 5. - Sales yearly

7. THE MARKETING PLAN

7.1. MARKETING PROGRAMS
As part of a Diversification Growth Strategy 3-DAMTM would practice Forward Integration. As
the customer is the focal point for the business model, 3-DAMTM offices will be targeted close
to the customers. Customers will be contacted through advertisement and campaigns. The
campaign will utilize TV, trade journals, and the internet (web pages, FaceBook, etc.).
Highlights of ads will target design freedom, no or low tooling, and speed. Additionally, small
to large manufacturing companies will be approached.
3-DAMTM is manufacturing freedom 3-DAMTM slogan
A marketing group will be selected to assist in the marketing campaign on a yearly contract.
A $100k budget will be set for marketing. The marketing campaign will start in June 2013
and continue through December 2013.
7.2. PARTNERSHIP
The business would initially depend upon partnerships and/or cooperation with machine
shops, until the machines and technicians can be funded and added to the services 3-DAM TM
can provide.
Alliances and partnerships can also be formed with engineering and industrial firms looking
to outsource their manufacturing work or traditional machining houses cant make the parts
their customers desire.

8. MANAGEMENT AND EMPLOYEES

8.1. MANAGEMENT TEAM AND KEY PERSONNEL
CEO / CTO
Joe Ott will perform as CEO/CTO. Joe will have complete oversight and responsibility for the
company as well as technical authority. At 37, Joe is nearing completion of his MBA and
MSME degrees. Joe has experience in additive manufacturing, specializing in the aerospace
industry and requirements. Joe has extensive project management qualifications and is a
registered Engineer-In-Training (EIT) candidate in the state of MA. Joe currently works at
Pratt&Whitney as an Integrated Product Team Lead for the Engineering Integrated Solutions
Group / Engineering Innovation Center.
CFO
The CFO will be hired after the company is funded. The CFO should have the following
qualifications:
Under the direction of the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) has
direct oversight of the following reporting line: Accounting, Accounts, Communications,
Purchasing, Printing & Duplicating, Information Management, Management Information
Systems.
The CFO has overall management responsibilities for Fiscal and Business Services and has
legal responsibilities as the internal auditor for the company. This position is accountable for
the development and implementation of fiscal systems, budgeting processes, financial
reporting, and fiscal policies and procedures.
Ten years of progressively responsible leadership positions with at least five years
experience in manufacturing and/or start-up csompany accounting at a managerial level.
Familiarity with healthcare reimbursement systems. Successful track record in the
management of people, budgets, systems, and processes. College graduate with major in
Accounting/Finance. MBA and/or CPA required.
Accounting and Human Resources
Accounting and Human Resources will be outsourced to a 3 rd party company and overseen
by the CFO. The company will be responsible for all day to day accounting and human
resources activities, including accounts receivable and payable, health and dental care, 401k
management, and taxes, etc. The company should have experience with accounting and HR
in all US states. It would be preferred if the company has experience with start-up
companies.
Technology Team Materials Engineer, Technology Researcher, Training/Quality
The Technology Team will have responsibility for moderately complex engineering projects,
and will work independently or with cross-functional disciplines on key tasks associated with
a project. Serves as consultants, providing technical information and engineering
recommendations that assist various projects and processes and materials. Also coaches
and trains less experienced engineers and technicians. Contributes effectively towards team
goals and influences the work group and works beyond routine nature of tasks utilizing
specialized knowledge to support internal and external customers. Can be assigned as
Technical Leaders for large projects or multiple small projects.
Material Engineer: Provides material selection and related manufacturing process
recommendations to improve quality, performance, cost reduction, product reliability, and/or
standardization through analysis of designs and problem solving techniques.
Preferred Qualifications
M.S. in Materials Science / Metallurgical Engineering or equivalent degree from an
accredited university

 Basic knowledge of polymer component design in transportation applications

Non-destructive testing experience or certification. Basic knowledge of ferrous metallurgy,
heat treating, and failure analysis
Technology Researcher: Reviews and evaluates additive manufacturing technologies for
application to business. Participates in the creation, implementation, and administration of
vehicle group policies, procedures, and work instructions. Utilizes the engineering Maturity
Model concept to drive personal and regional process and knowledge development.
Understands design, development, and failure analysis through assigned engineering
projects. Applies fundamental engineering practices and decision making for problem
solving.
Preferred Qualifications
M.S. in Mechanical or Project Engineering or equivalent degree from an accredited
university
Manufacturing or additive manufacturing experience or certification
Project management experience / PMI certification
Training / Quality: Maintains understanding of the varied and balanced needs of cost
competitiveness, product reliability / robustness, innovation, constraints relating to the
global availability of material and manufacturing processes. Local expert in assigned product
/ process. Educates and manages company Health and Safety: Complies with requirements
of the Quality and Environmental Management Systems.
Preferred Qualifications
M.S. in Quality and Training or equivalent degree from an accredited university
Basic knowledge of lean / 6 sigma
Non-destructive testing experience or certification
EH&S experience or certification
Branch Manager(s) oversee branch offices and perform sales
As an outside sales professional, the primary responsibility is to develop new client
relationships in the assigned territory while growing existing relationships with assigned
clients. You will sell the benefits of Additive Fabrication for the purpose of developing a
pipeline of qualified prospects, and to achieve your sales quota. Sales will address
manufacturing as well as other traditional additive fabrication needs. Interfacing with and
oversee store personnel, customers, and equipment representatives will be required for
ensuring the integration of the product solution and addressing the customers additive
fabrication requirements. You will be measured against key performance indicators and
quota attainment on a monthly basis.
PRIMARY RESPONSIBILITIES:
Through telemarketing, prospecting, account calls, demonstrations and marketing activities,
generate demand and pipeline for assigned products.
Achieve assigned gross profit target each month by selling solutions to discreet & process
manufacturing companies.
Investigate and understand the internal business processes of potential clients; and
strategize, present and demonstrate a tailored technology solution.
Build relationships with key executives (CEO, CFO, and Technology Team) and fellow Branch
Managers.
Hold a technical understanding of customers business objectives in order to map a strategy
consisting of machines, materials, training, and implementation as a solution to those
business objectives.
Develop gross profit, revenue & accurate forecast in coordination with CEO.
MINIMUM REQUIRED SKILLS & EXPERIENCE:
Consistent Top 10% performer

2-4 years of selling experience

2+ years of sales experience with a manufacturing discipline a plus
Successful track record
Computer Skills in MS Office, CRM, Web
MINIMUM EDUCATION REQUIREMENTS:
4-year college degree or equivalent
8.2. EMPLOYEES

Sales engineers customer interface, engineers marry up technology to customer

needs. There will be 2-3 per store.
CAD and Build technicians modify designs to make technology friendly, operate and
run machines. There will be 1 per machine and two CAD operators per store.
Post processing technicians - provide any necessary post processing and
coordination. There will be one per store.
Shipping/Receiving ship and receive hardware, supplies, etc. There will be one per
store.

Personn
el
CEO/CTO
CFO
Technolo
gy Team
Branch
Manager
s
Sales
Eng. And
Techs

M1
$6,666.6
7
$6,666.6
7
$20,000.
00

M2
$6,666.6
7
$6,666.6
7
$20,000.
00

M3
$6,666.6
7
$6,666.6
7
$20,000.
00

M4
$6,666.6
7
$6,666.6
7
$20,000.
00

M5
$6,666.6
7
$6,666.6
7
$20,000.
00

M6
$6,666.6
7
$6,666.6
7
$20,000.
00

M7
$6,666.6
7
$6,666.6
7
$20,000.
00

M8
$6,666.6
7
$6,666.6
7
$20,000.
00

M9
$6,666.6
7
$6,666.6
7
$20,000.
00

M10
$6,666.6
7
$6,666.6
7
$20,000.
00

M11
$6,666.6
7
$6,666.6
7
$20,000.
00

M12
$6,666

$5,833.3
3

$5,833.3
3

$5,833.3
3

$5,833.3
3

$5,833.3
3

$5,833.3
3

$5,833.3
3

$5,833.3
3

$5,833.3
3

$5,833.3
3

$5,833.3
3

$5,833

$30,000.
00

$30,000.
00

$30,000.
00

$30,000.
00

$30,000.
00

$30,000.
00

$30,000.
00

$30,000.
00

$30,000.
00

$30,000.
00

$30,000.
00

$30,00

$6,666

$20,00

Total:

Table 4: Monthly Payroll

Personal

Year 1

Year 2

Year 3

CEO/CTO

80 004

80 000

80 000

CFO

80 004

80 000

80 000

Technology Team

240 000

240 000

240 000

Branch Managers

69 996

280 000

350 000

Sales Eng. and Techs

360 000

360 000

1 440 000

Total wages

830 004

1 040 000

2 190 000

Table 4: Yearly Payroll

8.3. FUTURE
3-DAMTM will have 1 initial store in a major manufacturing center of USA. The plan will be to
grow to 2 stores by end of second year. The next goal will be to grow the business to have
stores in each of 5 major manufacturing centers in USA in 5 years. The long term plan will
be to grow to have one store in 50 major cities in 10 years.
8.4. KEY FIGURES

We plan to hire 3 sales engineers and 3 technicians and 1 Branch Manager in the first year
for the first store.
By year two, we plan to hire 9 sales engineers, 9 technicians, and 3 branch managers to
staff 3 additional stores.
We plan to implement an annual training curriculum for each person for updating their
technical knowledge.

9. ACTIVITY PLAN
This section describes some activities that will be needed to implement the whole or parts of
the business plan.
Order and Install Machines machines and installation at $1,000,000 a-piece. 1 plastics, 2
metals, 1 metrology and inspection, 1 oven and autoclave = $5,000,000
Store 15,000 sq. ft. * $3.523 per foot per year = $52,800. Plus $1,000,000 for upgrades
and office requirements. Equals $1,052,800.00
Hire Accounting / HR - $100,000
Supplies - $100,000
Advertising Campaign - $100,000
Responsib
le

Department

5 000
000

CTO

Technology
Team

06/01/201
3

1 052
800

CTO

CEO

01/02/201
3

05/31/201
3

100 000

CFO

CEO

Supplies

03/01/201
3

06/01/201
3

100 000

CEO

CEO

Advertising Co.

04/01/201
3

06/01/201
3

100 000

CEO

Branch
Managers

Activity

Start date

Stop date

Budget

Order and Install

Machines

03/01/201
3

06/01/201
3

Store

03/01/201
3

Hire Accounting / HR

Total

Table 5: 2013 Activities

6 352
800

Figure 6. Activities Calendar

10. FINANCE AND ECONOMY FIGURES

10.1 STARTUP FUNDING

Start-up Costs
Research Technology

100 000

Research Store Location

200 000

Permits and Fees

100 000

Marketing Study

100 000

Total Start-up Costs

500 000

Start-up funding
Bank Loans

3 000 000

Bank Loans

2 000 000

Other Investors

2 000 000

Grants

2 000 000

Government Loans

1 000 000

Total Start-up funding

Total Equity

10 000 000
9 500 000

Table 6: Start-Up Funding

Figure 7. Financed Capital vs. Remaining Capital After Costs

The following are Seed Capital funding expenses that will be incurred prior to the business
starting:
Research Technology $100,000 this is to research the best metal, plastics, and
metrology machines necessary to support the business concept.

Research Store Location $200,000 This is to find and fund the initial store location
plus other 3 locations for next 3 stores.
Permits and Fees $100,000 This will fund necessary permits and fees for
establishing the store in first store location.
Marketing Study - $100,000 This will fund a marketing study for the Houston, TX
area specifically and US in general to help target large businesses, small business,
and hobbyists.

The following describes all the Start-up through Second Stage funding (existing and
needed) for the project:
Bank Loans $3,000,000 Secured against the procured equipment. Equipment,
Real-estate, and Long-term loans.
Angel Investors $2,000,000
Other Investors $2,000,000 Informal Risk Capital, Venture Capital
Grants $2,000,000 SBIR - Phase I and Phase II, Fed, State, Local.
Government Loans - $1,000,000 SBA (504, SBA), etc.
Total: $10,000,000
Third stage (growth) funding would be necessary for expansion beyond the first store and
would be necessary at last quarter 2013.
The following describes the long term assets. Depreciation period was calculated at
minimum 3 years. Smartplan10 calculate a depreciation of 1/5 per/year as standard.
Yr1
Yr2
Yr3
Equipment $5,000,000 $20,000,000 $25,000,000
Real-estate $1,052,800
$ 4,211,200 $ 5,264,000
Total:
$6,052,800 $24,211,200 $30,264,000
The following describes long-term liabilities; debts that would be paid back over a period of
more than a year.
Interest
Amortization/Yr
Bank Loans $3,000,000
6%
12/1
Angel Investors $2,000,000
4%
12/1
Other Investors $2,000,000
4%
12/1
Government Loans $1,000,000
3%
12/1
*interest rates and amortization/yr. have been assumed.
Profit and loss expenses other anticipated costs (short term liabilities) for the operation of
your business.
M1
Accountin
g / HR /
Advertisin
g Services
Supplies
(office and
operating)
Utilities,
Web, IT,
Phone
Insurance
Maintenan
ce Plan

M2

M3

M4

M5

M6

M7

M8

M9

M10

M11

M12

YR1

YR2

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$8,333

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$100,00
0

$200,00
0

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$8,333

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$8,33
3

$100,00
0

$400,00
0

$0
$83,3
33

$0
$83,3
33

$2,00
0
$83,3
33

$2,00
0
$83,3
33

$2,00
0
$83,3
33

$2,00
0
$83,3
33

$2,00
0
$83,3
33

$2,00
0
$83,3
33

$2,00
0
$83,3
33

$2,00
0
$83,3
33

$2,00
0
$83,3
33

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$20,000
$1,000,0
00
$100,00
0
$1,320,
000

$96,000
$4,000,0
00
$400,00
0
$5,096,
000

$2,000
$83,33
3
$100,0
00

Total:

Table 7: Profit and Loss Monthly Expenses

10.2 PROFIT & LOSS TABLE

Year 1

Year 2

Year 3

Sales

346 000

1 776 000

2 343 000

Sale costs

288 000

647 500

765 437

--------------BTO profit

---------------

---------------

58 000

1 128 500

1 577 563

17 %

64 %

67 %

Salaries

830 004

1 040 000

2 190 000

Additional Salaries costs

273 901

343 200

722 700

6 352 800

1 210 560

6 052 800

12 105 600

Accounting / HR / Advertising Services

99 996

200 000

200 000

Supplies (office and operating)

99 996

400 000

500 000

Utilities, Web, IT, Phone

20 000

96 000

120 000

Insurance

999 996

4 000 000

5 000 000

Maintenance Plan

100 000

400 000

500 000

Research Technology

100 000

Research Store Location

200 000

Permits and Fees

100 000

Marketing Study

100 000

BTO profit %
Expenses

Marketing and activity costs

Depreciation

--------------Sum direct costs

Financial costs
Profits before tax
Profit before tax %

Table 8: PROFIT & LOSS TABLE

Figure 8. - Net profit monthly

---------------

---------------

4 134 453

18 884 800

21 338 300

-0

-0

-0

-4 076 453

-17 756 300

-19 760 737

-1 178 %

-1 000 %

-843 %

Figure 9. - Net profit yearly

Figure 10. - Gross margin monthly

Figure 11. Gross margin yearly

10.3 BALANCE SHEET

Year 1

Year 2

Year 3

1 297 208

-9 265 893

-22 254 593

346 000

1 776 000

2 343 000

1 643 208

-7 489 893

-19 911 593

Fixtures and fittings & fixed assets

6 052 800

29 264 000

54 528 000

Acc depreciation fixtures & fittings/fixed assets

1 210 560

7 263 360

19 368 960

Total fixtures and fittings/fixed assets

4 842 240

22 000 640

35 159 040

Total assets

6 485 448

14 510 747

15 247 447

10 000 000

10 000 000

10 000 000

Accounts payable

288 000

647 500

765 437

Accrued taxes

273 901

343 200

722 700

Long-term liabilities

Balanced profit/loss

-4 076 453

3 520 047

Total liabilities & equity capital

10 561 901

6 914 247

15 008 184

Profit for the year

-4 076 453

7 596 500

239 263

Current assets
Liquid assets
Sales
Total current assets
Fixed assets

Liabilities
Share capital & risk capital

Table 9: BALANCE SHEET

Current Ratio =
Debt Ratio =

YR1

YR2
0.16

YR3
-1.08

6.43

-0.92

-0.75

Debt to Equity =
Net Profit Margin =
more

1.32
-11.78 4.28

-1.33

*indicates low liquidity

*indicates business while taking on more debt is

working out of debt
*High capital industry/business

0.10

*indicates high initial risk but business becoming

stabile.

ROI =
more

-0.63

0.52

0.02

*indicates high initial risk but business becoming

stabile.
Generally these ratios are stating that the business will be very risky at the onset due to the
high amount of debt the company will have. This debt will continue to grow as the company
expands but the expansion and income will stabilize the company as it grows out of debt in
its first decade.
These ratios can be compared (Appendix 3) against just the initial store. We see the same
risk but slower recovery, though more stability.
10.4 CASH FLOW ANALYSIS

Year 1

Year 2

Year 3

Liquid assets, incoming

10 000 000

6 644 130

-6 790 066

346 000

1 776 000

2 343 000

346 000

1 776 000

2 343 000

612 082

2 859 146

2 479 729

Increase in accounts payable

Increase in short-term liabilities

Increase in long-term liabilities

Sale of current assets

Sale of fixed assets

New capital increase

958 082

4 635 146

4 822 729

Cash expenditure

2 937 992

13 136 300

9 275 437

Total expenditure from activities

2 937 992

13 136 300

9 275 437

323 160

721 842

1 253 200

Reduction in short-term liabilities

Reduction in long-term liabilities

Purchase of current assets

Purchase of fixed assets

1 052 800

4 211 200

5 264 000

Total liquid assets spent

4 313 952

18 069 342

15 792 637

-3 355 870

-13 434 196

-10 969 908

6 644 130

-6 790 066

-17 759 975

Liquid assets obtained from activities

Sales
Other earnings
Total earnings from activities
Other liquid assets obtained
VAT and tax refunds

Total liquid assets obtained

Liquid assets spent

Other liquid assets spent

VAT and tax payments

Net cash flow

Liquid assets, outgoing

Table 10. CASH FLOW

11. NETWORK & SERVICE PROVIDERS

11.1 BANK

3-DAMTM will initially work with USAA Bank, located in TX. This is an all purpose international
bank that has no branches, that instead works entirely online.
11.2 ACCOUNTANT
Accounting and Human Resources will be outsourced to a 3rd party company and overseen
by the CFO. The company will be responsible for all day to day accounting and human
resources activities, including accounts receivable and payable, health and dental care, 401k
management, and taxes, etc.
11.3 WEB-& WEBHOSTING AGENCY
A web hosting firm will be solicited once a location has been determined for the initial
Houston, TX store.
11.4 BUSINESS DEVELOPMENT SERVICE
3-DAMTM will contact the Houston, TX local small business administration business
development services upon business starting.
11.5 ADVERTISING- & MARKETING AGENCY
A marketing group will be selected to assist in the marketing campaign on a yearly contract.
The initial marketing group should be experience in a regional to national campaign, working
with manufacturing, and start-up businesses.
A $100k budget will be set for marketing. The marketing campaign will start in June 2013
and continue through December 2013.
11.6 INVESTORS & VENTURE FIRMS
11.7 IT PROVIDER
An IT firm will be solicited once a location has been determined for the initial Houston, TX
store.
11.8 INSURANCE COMPANY
3-DAMTM will initially work with USAA Bank, located in TX. This is an all purpose international
insurance company that has no branches, that instead works entirely online.
11.9 NETWORKS WITHIN YOUR BUSINESS
3-DAMTM will join Committee F42 on Additive Manufacturing Technologies 1.
3-DAMTM will also network in each citys chamber of commerce and register with the Small
Business Administration.

REFERENCES:

1. "ASTM International Technical Committee F42." ASTM International Technical

Committee F42. N.p., n.d. Web. 17 July 2012.
<http://www.astm.org/COMMITTEE/F42.htm>.
2. "Designation: F2792 12a - Standard Terminology for Additive Manufacturing
Technologies." ASTM F2792 - 12a. ASTM, 17 July 2012. Web. 2012.
<http://enterprise.astm.org/filtrexx40.cgi?+REDLINE_PAGES/F2792.htm>.
3. "Industrial Space Cost Comparison." Greater Houstono Partnership. Cushman &
Wakefield, Third Quarter 2011, 2011. Web. June 2012.
<http://www.houston.org/pdf/research/17CW005.pdf>.
4. Kotkin, Joel. "Heavy Metal Is Back: The Best Cities For Manufacturing." Forbes. Forbes
Magazine, 15 Dec. 2011. Web. 17 July 2012.
<http://www.forbes.com/sites/joelkotkin/2011/12/15/heavy-metal-is-back-the-bestcities-for-manufacturing/>.
5. Liechty, Eli. "Commercial Benefits of Metals Additive Manufacturing for Aerospace
Production." Midwest SAMPE. Mar. 2011. Lecture.
www.midwestsampe.org/content/files/events/.../Metals%20Liechty.pdf
6. "Manufacturing.GOV." National Network for Manufacturing Innovation (NNMI). N.p.,
n.d. Web. 17 July 2012. <http://www.manufacturing.gov/amp/pilot-institute.html>.
7. Marcus, Adam. "3D Printing: The Future Is Here." 3D Printing: The Future Is Here. The
Technology Liberation Front, 10 June 2011. Web. 17 July 2012.
<http://techliberation.com/2011/06/10/3d-printing-the-future-is-here/>.
8. McCue, TJ. "3D Printing Industry Will Reach $3.1 Billion Worldwide by 2016." Forbes.
Forbes Magazine, 27 Mar. 2012. Web. 17 July 2012.
<http://www.forbes.com/sites/tjmccue/2012/03/27/3d-printing-industry-will-reach-3-1billion-worldwide-by-2016/>
9. McCue, TJ. "Additive Manufacturing Will Change in the Next 5-10 Years." Forbes.
Forbes Magazine, 02 May 2012. Web. 17 July 2012.
<http://www.forbes.com/sites/tjmccue/2012/05/02/additive-manufacturing-willchange-in-the-next-5-10-years/>.
10. Smartplan Generator Ver. 1.5- http://download.cnet.com/Smartplan-Generator/30002076_4-10708683.html
11. USA. EXECUTIVE OFFICE OF THE PRESIDENT. EXECUTIVE OFFICE OF THE PRESIDENT.
A FRAMEWORK FOR REVITALIZING AMERICAN MANUFACTURING.
Http://www.whitehouse.gov/, Dec. 2009. Web. June 2012.
<http://www.whitehouse.gov/sites/default/files/microsites/20091216-maunfacturingframework.pdf>.
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NATIONAL STRATEGIC PLAN FOR ADVANCED MANUFACTURING.
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<http://www.whitehouse.gov/sites/default/files/microsites/ostp/iam_advancedmanufa
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Appendix 1: Mydea Technologies

Appendix 2: Shapeways, Inc.

APPENDIX 3: Single Store (Houston, TX) FINANCE AND ECONOMY

FIGURES
TARGET MARKET SEGMENT
Potential Customer

Year 1

Year 2

Year 3

CAGR

Sm. Business

100

113

127

6,16%

Lg. Business

10

12

13

6,78%

Hobbyists

310

350

395

6,25%

Total

420

475

535

6,24%

SALES FORECAST
Sales

Year 1

Year 2

Year 3

Sales Engineering

98 000

110 250

124 032

Powder Metal

144 000

162 000

182 250

Powder Plastic

104 000

117 000

131 625

Total sales

346 000

389 250

437 907

240 000

270 000

303 750

Powder Metal

24 000

27 000

30 375

Powder Plastic

24 000

27 000

30 375

288 000

324 000

364 500

Direct costs, sales

Sales Engineering

Total, direct costs, sales

Sales monthly

Sales yearly

EMPLOYEES
Personal

Year 1

Year 2

Year 3

CEO/CTO

80 004

80 000

80 000

CFO

80 004

80 000

80 000

Technology Team

240 000

240 000

240 000

Branch Managers

69 996

70 000

70 000

Sales Eng. and Techs

360 000

360 000

360 000

Total wages

830 004

830 000

830 000

STARTUP FUNDING
Start-up Costs
Research Technology

100 000

Research Store Location

200 000

Permits and Fees

100 000

Marketing Study

100 000

Total Start-up Costs

500 000

Start-up funding
Bank Loans

3 000 000

Bank Loans

2 000 000

Other Investors

2 000 000

Grants

2 000 000

Government Loans

1 000 000

Total Start-up funding

10 000 000

Total Equity

9 500 000

10.2 PROFIT & LOSS TABLE

Year 1

Year 2

Year 3

Sales

346 000

389 250

437 907

Sale costs

288 000

324 000

364 500

--------------BTO profit

---------------

---------------

58 000

65 250

73 407

17 %

17 %

17 %

Salaries

830 004

830 000

830 000

Additional Salaries costs

273 901

273 900

273 900

6 352 800

1 210 560

1 210 560

1 210 560

Accounting / HR / Advertising Services

99 996

100 000

100 000

Supplies (office and operating)

99 996

100 000

100 000

BTO profit %
Expenses

Marketing and activity costs

Depreciation

Utilities, Web, IT, Phone

20 000

20 000

20 000

Insurance

999 996

1 000 000

1 000 000

Maintenance Plan

100 000

100 000

100 000

Research Technology

100 000

Research Store Location

200 000

Permits and Fees

100 000

Marketing Study

100 000

--------------Sum direct costs

Financial costs
Profits before tax
Profit before tax %

Net profit monthly

Net profit yearly

---------------

---------------

4 134 453

9 987 260

3 634 460

-0

-0

-0

-4 076 453

-9 922 010

-3 561 053

-1 178 %

-2 549 %

-813 %

Gross margin monthly

Gross margin yearly

10.3 BALANCE SHEET

Year 1

Year 2

Year 3

1 297 208

-1 068 693

-3 427 343

346 000

389 250

437 907

1 643 208

-679 443

-2 989 436

Fixtures and fittings & fixed assets

6 052 800

5 052 800

4 052 800

Acc depreciation fixtures & fittings/fixed assets

1 210 560

2 421 120

3 631 680

Total fixtures and fittings/fixed assets

4 842 240

2 631 680

421 120

Current assets
Liquid assets
Sales
Total current assets
Fixed assets

Total assets

6 485 448

1 952 237

-2 568 316

10 000 000

10 000 000

10 000 000

Accounts payable

288 000

324 000

364 500

Accrued taxes

273 901

273 900

273 900

Long-term liabilities

Balanced profit/loss

-4 076 453

-8 645 663

Total liabilities & equity capital

10 561 901

6 521 447

1 992 737

Profit for the year

-4 076 453

-4 569 210

-4 561 053

Liabilities
Share capital & risk capital

10.4 CASH FLOW ANALYSIS

Year 1

Year 2

Year 3

10 000 000

6 644 130

-201 497

346 000

389 250

437 907

346 000

389 250

437 907

612 082

1 961 333

891 638

Increase in accounts payable

Increase in short-term liabilities

Increase in long-term liabilities

Sale of current assets

Sale of fixed assets

New capital increase

958 082

2 350 583

1 329 545

Cash expenditure

2 937 992

8 826 800

2 514 500

Total expenditure from activities

2 937 992

8 826 800

2 514 500

323 160

369 411

381 349

Reduction in short-term liabilities

Reduction in long-term liabilities

Purchase of current assets

Liquid assets, incoming

Liquid assets obtained from activities
Sales
Other earnings
Total earnings from activities
Other liquid assets obtained
VAT and tax refunds

Total liquid assets obtained

Liquid assets spent

Other liquid assets spent

VAT and tax payments

Purchase of fixed assets

1 052 800

Total liquid assets spent

4 313 952

9 196 211

2 895 849

-3 355 870

-6 845 628

-1 566 305

6 644 130

-201 497

-1 767 802

Net cash flow

Liquid assets, outgoing

YR1
Current Ratio =
Debt Ratio =
Debt to Equity =
Net Profit Margin =
toward
ROI =
more

YR2
0.16
1.62 3.34
1.32
-11.78 -11.74

YR3
-0.10
0.76

-0.63

1.78

-2.34

-1.5
*indicates low liquidity
*indicates store is working out of debt
*High capital industry/business
-10.42 *indicates high initial risk but business working
stabilizing.
*indicates high initial risk but business becoming
stabile.