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Table of Contents 0
II.
Executive Summary.... 1
III.
IV.
V.
Marketing Plan.... 4
VI.
Operational Plan...... 5
VII.
X.
Financial Plan.... 11
XI.
Appendix....... 12
XII.
XIII.
XIV. References. 20
Halos mission statement is to expand the views of technology from a luxury to a commonality
by making the product available and economical to a wider target of people from the working,
middle and upper class in the United States.
V. MARKETING PLAN
Halo has come to a conclusion that marketing is a major factor during the process of starting up
the business and introducing the product to our main target market. In todays world, a wide
range of the audience uses technology as a way to continuously communicate with people and
get around on a daily basis. Halo has conducted a variety of primary and secondary research to
display the most effective way of promoting the upcoming product. Based on research we have
conducted from experience and online, articles show that 74% of adults use social media
networking websites. Since websites such as Facebook, Instagram, Twitter are used on a daily
basis everyday by a large audience, it is important that Halo gets involved and uses this as an
effective way to increase brand recognition as it is an accessible way to attract new and existing
customers. According to research found, newspaper ads are not as effective when promoting a
product unless it is completed more than once, which may increase costs in upcoming business.
Halo is aiming to attract a large target market by using effective marketing strategies, mainly
social media. According to research and statistics found, 92% of marketers stated that social
media is an important and effective marketing tool to use. Halo will receive more brand loyalty
by connecting with new and existing customers online by creating positive brand image and
name. Additionally, the effectiveness of social media will allow Halo to create a name and
presence for the business itself and allow customers to be aware of the business, leading to
further sales and expansion of the business in the near future. Due to the competition being quite
tough, we hope to increase our audience and convey a positive message to the audience we are
targeting about this innovative and upcoming product.
Once our product line is assembled, a sales team including customer service representatives,
order fulfillment, and a management office will be hired. Roughly one hundred personnel on the
factory floor will be required for operations to be completed. In addition, a location on the west
coast will be essential in relations with China. Being a company based in San Francisco, the
technological hub will provide for numerous advantages.
Simran Bhagnari
Jack Harris
Blaise Slattery
Hana Yoo
Management Advisory Board
Simran Bhagnari
Jack Harris
Blaise Slattery
Hana Yoo
Attorney
Simran:
Total of Assets: $500,000
Total of Liabilities: $80,000
Total Net Worth: $420,000
Jack:
Total of Assets: $700,000
Total of Liabilities: $150,000
Total Net Worth: $550,000
Blaise:
Total of Assets: $500,000
Total of Liabilities: $35,000
Total Net Worth: $465,000
Hana:
Total of Assets: $550,000
Total of Liabilities: $100,000
Total Net Worth: $450,000
The initial research stage of the project started with $20,000. The 4 members of the
founding team each chipped in $5,000 to begin processing our dream into a tangible idea. With
our first model of the product, we presented our project at a technology entrepreneurs event, and
was able to make deals with venture capital firms, Accel Partners and True Ventures. Each firm
individually offered to fund our company $2,000,000 for our early stage + startup + first stage of
our initial commercial manufacturing and sales in the U.S. market and China market. Each v.c.
firm will own 32% of the company, while the four co-founders own a total of 35.8% in 2016. If
we become successful, we may sell some of our ownership shares through stocks to our benefit.
Additionally, co-founder, Hana, who has networking connections with Hana Banks new
CEO, Ham Young Joo pitched the companys product value and interest in entering Asias tech
market; and in response, Hana Bank generously donated $1 million to Halo. With the investors
funds and donation, we immediately grew our startup business.
We plan to lease a factory space and office space with a budget between $1,000-$1,500.
We will use our own office equipment, and since we had previously owned the product
machinery for our first research, we consider them as our assets. We designed and bought our
logo, Halo, and will apply for our choice of business entity, C-Corporation. Then, we will build
our legal structure through consulting and buy insurance. To prepare for manufacturing, we plan
to spend around $3.5 million on wholesale electronics parts manufacturers for product materials
to create 100,000 rings, which will give us an estimate of $2 million profits if all 100,000 rings
are sold in 2016. We calculated $50,000 to use for marketing and advertising our product and we
intend and push strongly to direct our strategies on social media platforms because social media
creates trends and waves for new, better technology. An additional application service for our
wearable product is undergoing significant preparation, from planning to persuading one of our
computer science major and app creator, Ray Wang to join our company; as this is still a work in
progress, this factor wont be added to our startup expenses. Below is our companys current
startup numbers.
Assets
2016
Cash
$20,000
$1,000,000
Office Equipment
$3,000
Machinery
$10,000
$1,533,000
Owners Investment
2016
Co-Founders
$500,000
8%
Jack
$700,000
11%
Simran
$500,000
8%
Hana
$550,000
8.8%
Accel Partners
$2,000,000
32%
True Ventures
$2,000,000
32%
Total Investment
$6,250,000
Expenses
2016
Product Materials
(Including design)
$3,500,000
Marketing
$20,000
Advertising
$30,000
$4,000
Business Entities
$2,000
Insurance
$8,000
$50
Factory Lease
$500
Office Lease
$480
Total Expenses
$3,565,030
CONTINGENCY PLAN
10
Negative
Impacts?
Vulnerabilities?
Contingency in
case of a
disaster?
Equipment (IT
Only)
3 days
No schedule for
production,
meetings, no
track orders,
website
shutdown
No
uninterruptible
power supply,
computer
hardware
malfunctions,
User paper
reports for 3
days, then go
manual for as
many members
as possible
Facility
0 days
No production,
potential for
bankruptcy, IT
non-existent
Find a temporary
location for
office only- at
USF, No Plan B
for factory
Personnel
0 days
Degraded, slow
operations, low
service levels
Use available
staff, hire temps
Raw Materials
25 days before
new deliveries
No materials for
production
Not enough
suppliers
Search for
alternative
supplier
Transportation
System
25 days in/2
days out
No supplies or
deliveries
Location,
problems with
supplying to
retailers/markets
Use personal
transportation,
none
Utilities
0 hours/power
0 hours/water
Increase in
waste, no
heat/AC, no
light, no water,
IT non-existent
Single power
feed, no backup
generator or
water supply
None
Vendors
(Sourcing)
6 hours
No call center,
no supply,
financial
problems
Relationship
with vendors
Set for
temporary
vendors ahead of
time
11
X. FINANCIAL PLAN
12
XI. APPENDIX
The figure above represents market research based on the amount of people who operate a
smartphone over a nine-year time span. As you can tell, the demand for smart phones in on the
rise. In light of this, smartphone accessories are updating in every way to encourage consumers
to maintain brand loyalty. However, there is no denying a possibility of a new mobile phone
technology that could surpass smartphones and overthrow the market. For the foreseeable future,
smartphones are the go-to-gadget and as they evolve constantly, so will the need for accessories.
As the usage of smart phones has grown exponentially in recent years, Bluetooth media has also
seen an increase. The rise of wireless technology has opened up a window for Bluetooth to
become a leading proponent in smartphone accessories. Accounting for a majority of the
accessory market, Bluetooth technology appears to be going up without a decrease in sight.
13
1.
2.
3.
4.
Exit strategies:
Develop the firm to a level that it will be taken over by a larger organization sometime in the
future.
Take the firm public with an initial public offering (IPO) of stock.
The managers who wish to stay in the business take over the investors with replacement capital
from other sources of investment or from the businesss profits.
Merger or acquisition Organization from other parts of the world could buy the venture.
Percent of ownership that you will give up to investors: 1st year - 32% ownership each to Accel
Partners and True Ventures
Milestones or conditions that you will accept:
Keep production costs below $3,500,000
Require profits $6,500,000
Financial reporting to be provided (quarterly):
14
Manufacturing
Planned production levels:
1st year - 100,000 rings
2nd year - 250,000
3rd year - 500,000
5th year - 1,000,000
7th year - 2,000,000
Anticipated levels of direct production costs and indirect (overhead) costshow do these
compare to industry averages (if available)?: Direct production costs - $35, Indirect costs
(machinery, design) - $25~$35
Prices per product line: $100 per ring
Gross profit margin, overall and for each product line: Gross Profit Margin = (Net Sales - Cost of
Goods Sold) Net Sales -> (6,500,000 - 3,500,000) 6,500,000 = 46%
Production/capacity limits of planned
physical plant/Production/capacity limits of
equipment:
15
Yes, rings are the uncommon, wearable tech product that hasnt been widely released/known to
the general public.
What is the status of research and development?
Intermediate stage. We have the materials and equipment to build the ring, however, we are still
in the process of finalizing our best functions and efficient design for our product through
massive research.
And what is required to:
Bring product/service to market?
16
Company is already competitive because the tech industry is a competitive market. Nonetheless,
we need to keep creating the best, new, and beneficial product that everyone will want to buy and
not regret buying it.
How does the company:
Protect intellectual property?
Using model from Fourth Dimension in Building: Strategies for Avoiding Obsolescence
(1993)
Actions in Planning and Programming
Scanning for trends that may foster obsolescence
Programming for the possibilities of future functional change
Preparing for design through pre-design analysis
Actions in Design
Types
17
Actions in Construction
Commissioning
Key personnel are intensively educated in business and trained to have responsibility and
integrity.
18
1.
2.
3.
4.
5.
6.
19
businesses should also avoid creating negative tension and anything that is related to politics
during meetings. Engaging in a different culture can be tough although, businesses should aim to
avoid showing anger and frustration, as it may display a sense of weakness in the business.
o How is business negotiated in this culture?
Having a negotiating strategy in the business world is an important factor in the Chinese culture.
Many negotiations can be done in a range of different ways and may take a while. However,
having a clear mind set and an idea of goals and how to accomplish it is crucial. In addition to
this, it is also very important to constantly keep an accurate record of results from each
negotiation in the business. Furthermore, negotiating in China can lead to a lot of competition.
Therefore, it is important to carefully identify the decision maker in the business and who
influences them.
o What should be known about dining etiquette during business meetings in this culture?
The image of a business is an important factor when setting up a business meeting in a particular
culture. The acceptable dining etiquette during business meetings in chinese culture includes
majority of the following points, paying attention to specific details as it will strengthen the
organization's position when dealing with business negotiations. Additionally, businesses should
also be mindful of table manners, one of the most important factors of dining etiquette in China.
These include arriving early or being on time, allowing someone else to pour your beverage and
using utensils in the correct manner at the table.
References
Accel. Retrieved December 7, 2015, from http://www.accel.com/
Bhasin, G. (2012, April 19). 29 Rules Of Etiquette For Your Next Business Lunch. Retrieved
December 7, 2015, from http://www.businessinsider.com/rules-of-dining-etiquette-2012-4
20
Chandran, N. (2015, December 3). Guess where Asia's fastest-growing clean tech industry is.
Retrieved December 7, 2015, from http://www.cnbc.com/2015/12/03/chinese-greenenergy-companies-among-asias-fastest-growing-tech-firms-deloitte-says.html
Corporation | The U.S. Small Business Administration | SBA.gov. Retrieved December 8, 2015,
from https://www.sba.gov/content/corporation
Digital Transformation in the High-Tech Industry. (2014). Harvard Business Review. Retrieved
December 7, 2015, from
https://hbr.org/resources/pdfs/comm/sap/18764_HBR_SAP_High_Tech_Aug_14.pdf
Doing Business in China. Retrieved December 7, 2015, from
http://www.kwintessential.co.uk/etiquette/doing-business-china.html
Free Logo Maker. (n.d.). Retrieved December 7, 2015, from https://www.graphicsprings.com/
Hofstede, G. What about China? Retrieved December 7, 2015, from http://geerthofstede.com/china.html
Mack, L. Chinese Business - Chinese Business Meeting Etiquette. Retrieved December 7, 2015,
from http://chineseculture.about.com/od/businesseconomy/a/Chinese-Business-ChineseBusiness-Meeting-Etiquette.htm
Perkowski, J. (2011, March 28). Negotiating In China: 10 Rules for Success. Retrieved
December 7, 2015, from
http://www.forbes.com/sites/jackperkowski/2011/03/28/negotiating-in-china-10-rules-forsuccess/
Subramaniam, A. (2009, June 6). Supply Chain Risk Management. Retrieved December 7, 2015,
from http://www.slideshare.net/anandsubramaniam/supply-chain-risk-management
Tools & Calculators. Retrieved December 7, 2015, from
https://www.edwardjones.com/preparing-for-your-future/calculatorschecklists/calculators/investment-return-calculator.html
True Ventures. Retrieved December 7, 2015, from https://trueventures.com/
10 Ways to Protect Your Intellectual Property. (2012, April 19). Retrieved December 7, 2015,
from http://www.inc.com/kelly-fitzsimmons/ten-ways-to-protect-your-intellectualproperty.html