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Write You - Case Study; Analyzing Personal Tech Prototype Project Costs for a Start-up Company
If you are looking for a franchise opportunity that will offer you a good earning potential, you may want to consider purchasing a fitness franchise. The current health obsessed climate makes a fitness franchise a good way to create a money-making business while helping people look and feel their best. There are a number of fitness franchise opportunities out there, and finding the right one can be a satisfying venture for your entrepreneurial spirit.One type of fitness franchise is to open a fitness center. There are a number of types of fitness centers available for your fitness franchise purchase. You can even get specific with your fitness center. There are fitness franchise opportunities that are fitness centers exclusively for men or women or even ones that cater more to the serious fitness guru. Some fitness centers offer only specific types of fitness like jazzercise.Anothe
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed
I am going to write something that may not be popular, but if it offends you in anyway, it probably means that I’m writing this for you. I’m writing this to help you…not to criticize or belittle you. I want every entrepreneur to continue to grow throughout his online career and sometimes when we don’t accept change…we stop growing. I don’t want that to happen to you.Lately, I’ve seen a lot of online service-based business complain that cheaper alternatives are driving them out of business. I’ve seen virtual assistants angry that anyone would work for US $10 per hour. I’m surprised by that anger because $10 is above the minimum wage in every single state in the U.S. and province in Canada (2005 statistics). Yes, I know running a VA business carries expenses, but many people working online just want enough to be able to stay home, instead of trudging to a crappy job. Good for them for being resou
It is wonderful to see so many garage inventors coming up with so many nifty gadgets. But it is also important before you risk you hard earned dollars to be very careful with what you wish for. Bringing even the simplest product to market is not cheap and very few actually succeed. In this case study we will analyze the reality of a seed to weed concept and look into the formation of a small business to make, market, and sell this product. The fictitious product or widget as they call them in MBA school is called a JoggingLight. It is a relatively simple invention, a light, which is powered by the human motion while jogging rather than a battery, so people can work out after dark and have light while they do so. Now then, first we start out with some real world costs below;
The JoggingLight
Financial Requirements
Prototypes:
Parts $ 8,600.00
Modification Costs 2,000.00
Tools 1,250.00
Work Shop Set Up 1,500.00
Misc. Equipment* 2,000.00
Installation 250.00
Back Up Generator (Honda) 1,200.00
Vacuum 200.00
Injection Molding Engineering 12,250.00
Plastic Cover Prototypes 25,200.00
Human Testing 800.00
Ergonomic Testing (Cal TECH) 10,000.00
Research Paper (Interns) 10,200.00
Digital Photos and 3D Renderings 8,800.00
Sales of Original Prototypes……………<2,000.00>
Sub Total $ 82,250.00
Business Set Up:
Incorporation $ 1,500.00
Parasite Lawyer Retainers 8,000.00
Federal Registration of Trademarks 1,875.00
Concept Patent Filings, Modifications 35,000.00
Procurement Business Registration 4,800.00
Miscellaneous Legal Docs 675.00
CA Trade Marks 1,500.00
Patent Defense and Negotiation Fund……...…..35,000.00
Manual Creation for Consumer Product 1,000.00
Manual Creation for Industrial Product 3,000.00
Business Licenses/F.N.S. Etc. 500.00
Travel Expenses for Business Set Up 2,000.00
BBB and Chamber Memberships 1,500.00
Finish Products Liability Insurance (DP) 3,675.00
Business Insurance Down Payments 1,800.00
Sub Total…….…………….$101,825.00
Start Up Costs Before Marketing……..……..….$184,075.00
- - - - - - - - - - - - - - - - - - -
The JoggingLight
Financial Requirements
Post Business Formation and Prototype
Marketing Costs:
Repayment of Loan for Website Creation $ 2,900.00
Television Infomercial 54,400.00
Art Work for Logo 1,400.00
Stationary, Business Cards, Etc 500.00
Additional Website Ongoing Work 8,000.00
Air Time for Product over basic package 20,400.00
Travel Sales Costs…………………………….… 5,000.00
Promotional, Sponsorships……………..………. 5,000.00
Sub Total $93,100.00
Salary Costs:
Bob Smith Founder (one year) $50,000.00
Health Care Costs……………………………….. 6,000.00
Casual Labor 6,500.00
Sub Total $62,500.00
Total Anticipated Start Up Costs:
Total From Marketing and Salary...………… .$155,600.00
Total From Prototype and Legal……… …… $184,075.00
Perfect World Grand Total Start Up Costs… $339,675.00
30% Fudge Factor and Murphy’ism……… …$101,902.50
Real World Start Up Costs……………...….... $441,577.50
- - - - - - - - - - - - - - - - - - -
Indeed what seemed like a really easy to make product turned into a complete nightmare for Mr. Bob Smith the founder who needs a $5,000 per month income to survive or even be able to quit his job. Already now we have the first one year expenses at over $440,000.00, which is not chump change for the guy who just invested a very useful and needed product for walkers and joggers to stay in shape with.
For first year startups considering only the prototypes being sold and no actual unit sales, which is possible, but unlikely we see that what seems like a great product is hardly cheap to make and bring to market. Let’s say for instance that at 50% gross profit margin per widget sold or $15.00 of the $29.95 target price, that means year one to break even would be 24,439 units would need to be sold. That seems plausible. So on a "Go or No Go" choice it appears to be a viable business, even with some mistakes along the way as you roll with the punches and fouls. You could also make a few dollars on the handling labor costs and thus add $5.00 per unit profit there if you did in-house fulfillment and charged $10.00 thus cutting down the number of units need to be sold by approximately 25% to 18,110 units for a year one ROI kill date.
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed
There are welding defects that are sometimes overlooked or not considered. Each welding project requires careful considerations. They include:The process, the type of welding i.e. stick, MIG, TIG.The composition of the base metal and thickness.The welding position, i. e. flat, vertical, horizontal, overhead.The weld joint and type.Electrical supply and equipment.And finally, the welding techniques to be used.To minimize the chance of welding defects be sure to consider 1) the travel speed of the pass; 2) the size and type electrode; 3) machine settings; 4) make sure the welding is done in accordance with the plan and the current conditions.Most of, or a great deal of, welding defects can be identified by the "naked eye." By knowing what is likely to produce welding defects you will learn how t
The JoggingLight
Financial Requirements
Prototypes:
Parts $ 8,600.00
Modification Costs 2,000.00
Tools 1,250.00
Work Shop Set Up 1,500.00
Misc. Equipment* 2,000.00
Installation 250.00
Back Up Generator (Honda) 1,200.00
Vacuum 200.00
Injection Molding Engineering 12,250.00
Plastic Cover Prototypes 25,200.00
Human Testing 800.00
Ergonomic Testing (Cal TECH) 10,000.00
Research Paper (Interns) 10,200.00
Digital Photos and 3D Renderings 8,800.00
Sales of Original Prototypes……………<2,000.00>
Sub Total $ 82,250.00
Business Set Up:
Incorporation $ 1,500.00
Parasite Lawyer Retainers 8,000.00
Federal Registration of Trademarks 1,875.00
Concept Patent Filings, Modifications 35,000.00
Procurement Business Registration 4,800.00
Miscellaneous Legal Docs 675.00
CA Trade Marks 1,500.00
Patent Defense and Negotiation Fund……...…..35,000.00
Manual Creation for Consumer Product 1,000.00
Manual Creation for Industrial Product 3,000.00
Business Licenses/F.N.S. Etc. 500.00
Travel Expenses for Business Set Up 2,000.00
BBB and Chamber Memberships 1,500.00
Finish Products Liability Insurance (DP) 3,675.00
Business Insurance Down Payments 1,800.00
Sub Total…….…………….$101,825.00
Start Up Costs Before Marketing……..……..….$184,075.00
- - - - - - - - - - - - - - - - - - -
The JoggingLight
Financial Requirements
Post Business Formation and Prototype
Marketing Costs:
Repayment of Loan for Website Creation $ 2,900.00
Television Infomercial 54,400.00
Art Work for Logo 1,400.00
Stationary, Business Cards, Etc 500.00
Additional Website Ongoing Work 8,000.00
Air Time for Product over basic package 20,400.00
Travel Sales Costs…………………………….… 5,000.00
Promotional, Sponsorships……………..………. 5,000.00
Sub Total $93,100.00
Salary Costs:
Bob Smith Founder (one year) $50,000.00
Health Care Costs……………………………….. 6,000.00
Casual Labor 6,500.00
Sub Total $62,500.00
Total Anticipated Start Up Costs:
Total From Marketing and Salary...………… .$155,600.00
Total From Prototype and Legal……… …… $184,075.00
Perfect World Grand Total Start Up Costs… $339,675.00
30% Fudge Factor and Murphy’ism……… …$101,902.50
Real World Start Up Costs……………...….... $441,577.50
- - - - - - - - - - - - - - - - - - -
Indeed what seemed like a really easy to make product turned into a complete nightmare for Mr. Bob Smith the founder who needs a $5,000 per month income to survive or even be able to quit his job. Already now we have the first one year expenses at over $440,000.00, which is not chump change for the guy who just invested a very useful and needed product for walkers and joggers to stay in shape with.
For first year startups considering only the prototypes being sold and no actual unit sales, which is possible, but unlikely we see that what seems like a great product is hardly cheap to make and bring to market. Let’s say for instance that at 50% gross profit margin per widget sold or $15.00 of the $29.95 target price, that means year one to break even would be 24,439 units would need to be sold. That seems plausible. So on a "Go or No Go" choice it appears to be a viable business, even with some mistakes along the way as you roll with the punches and fouls. You could also make a few dollars on the handling labor costs and thus add $5.00 per unit profit there if you did in-house fulfillment and charged $10.00 thus cutting down the number of units need to be sold by approximately 25% to 18,110 units for a year one ROI kill date.
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed
The footwork is done, the job is posted, and applicant inquiries and resumes are pouring in. You are at a loss. What are you to do with this mountain of resumes and sea of employment candidates?First things first, here’s how toScreen Job ApplicantsYour first step is to determine who actually qualifies as a job "applicant". If this is the first employee you are hiring, labeling persons as "applicants" is pretty straightforward: anyone who applies is considered an applicant. However, if you currently have fifteen or more employees, the EEOC requires you to keep all records of all applicants for a full year. In the interest of reducing paperwork and file maintenance, determining who is officially considered an applicant and who doesn't make the cut becomes far more important.Next, decide how you plan to respond to applicants. Good business practice dictates the courtesy of a r
CA Trade Marks 1,500.00
Patent Defense and Negotiation Fund……...…..35,000.00
Manual Creation for Consumer Product 1,000.00
Manual Creation for Industrial Product 3,000.00
Business Licenses/F.N.S. Etc. 500.00
Travel Expenses for Business Set Up 2,000.00
BBB and Chamber Memberships 1,500.00
Finish Products Liability Insurance (DP) 3,675.00
Business Insurance Down Payments 1,800.00
Sub Total…….…………….$101,825.00
Start Up Costs Before Marketing……..……..….$184,075.00
- - - - - - - - - - - - - - - - - - -
The JoggingLight
Financial Requirements
Post Business Formation and Prototype
Marketing Costs:
Repayment of Loan for Website Creation $ 2,900.00
Television Infomercial 54,400.00
Art Work for Logo 1,400.00
Stationary, Business Cards, Etc 500.00
Additional Website Ongoing Work 8,000.00
Air Time for Product over basic package 20,400.00
Travel Sales Costs…………………………….… 5,000.00
Promotional, Sponsorships……………..………. 5,000.00
Sub Total $93,100.00
Salary Costs:
Bob Smith Founder (one year) $50,000.00
Health Care Costs……………………………….. 6,000.00
Casual Labor 6,500.00
Sub Total $62,500.00
Total Anticipated Start Up Costs:
Total From Marketing and Salary...………… .$155,600.00
Total From Prototype and Legal……… …… $184,075.00
Perfect World Grand Total Start Up Costs… $339,675.00
30% Fudge Factor and Murphy’ism……… …$101,902.50
Real World Start Up Costs……………...….... $441,577.50
- - - - - - - - - - - - - - - - - - -
Indeed what seemed like a really easy to make product turned into a complete nightmare for Mr. Bob Smith the founder who needs a $5,000 per month income to survive or even be able to quit his job. Already now we have the first one year expenses at over $440,000.00, which is not chump change for the guy who just invested a very useful and needed product for walkers and joggers to stay in shape with.
For first year startups considering only the prototypes being sold and no actual unit sales, which is possible, but unlikely we see that what seems like a great product is hardly cheap to make and bring to market. Let’s say for instance that at 50% gross profit margin per widget sold or $15.00 of the $29.95 target price, that means year one to break even would be 24,439 units would need to be sold. That seems plausible. So on a "Go or No Go" choice it appears to be a viable business, even with some mistakes along the way as you roll with the punches and fouls. You could also make a few dollars on the handling labor costs and thus add $5.00 per unit profit there if you did in-house fulfillment and charged $10.00 thus cutting down the number of units need to be sold by approximately 25% to 18,110 units for a year one ROI kill date.
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed
It's an issue faced by business owners worldwide -- having to let go of, or "fire" a client. When I started my business, it's not a situation I ever thought I would face, as I was happy to take on almost anyone that wanted to hire me. However, over time, my client scrutinizing skills became more acute, and I began to realize that not every client is a perfect client for me. In fact, more than 50% of the people I speak with are not a good fit for one reason or another. Just like Donald Trump in "The Apprentice", sometimes you just have to say, "You're fired!"What happens to your business when you keep clients that are PITA (I'll let you figure out that acronym) clients? All of your time and energy is drained in serving these clients, you lose any enthusiasm you ever had for your business, and you no longer have the time or desire to go out and market yourself and continue to fill your clien
Sub Total $93,100.00
Salary Costs:
Bob Smith Founder (one year) $50,000.00
Health Care Costs……………………………….. 6,000.00
Casual Labor 6,500.00
Sub Total $62,500.00
Total Anticipated Start Up Costs:
Total From Marketing and Salary...………… .$155,600.00
Total From Prototype and Legal……… …… $184,075.00
Perfect World Grand Total Start Up Costs… $339,675.00
30% Fudge Factor and Murphy’ism……… …$101,902.50
Real World Start Up Costs……………...….... $441,577.50
- - - - - - - - - - - - - - - - - - -
Indeed what seemed like a really easy to make product turned into a complete nightmare for Mr. Bob Smith the founder who needs a $5,000 per month income to survive or even be able to quit his job. Already now we have the first one year expenses at over $440,000.00, which is not chump change for the guy who just invested a very useful and needed product for walkers and joggers to stay in shape with.
For first year startups considering only the prototypes being sold and no actual unit sales, which is possible, but unlikely we see that what seems like a great product is hardly cheap to make and bring to market. Let’s say for instance that at 50% gross profit margin per widget sold or $15.00 of the $29.95 target price, that means year one to break even would be 24,439 units would need to be sold. That seems plausible. So on a "Go or No Go" choice it appears to be a viable business, even with some mistakes along the way as you roll with the punches and fouls. You could also make a few dollars on the handling labor costs and thus add $5.00 per unit profit there if you did in-house fulfillment and charged $10.00 thus cutting down the number of units need to be sold by approximately 25% to 18,110 units for a year one ROI kill date.
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed
What’s stopping you from getting all of the patients you desire? Is it your technique? Your office staff? Your reputation?The answers are most probably no, no, and no.What is it then?Let’s look at the historic facts that most people live with: they hate dentists. Historically, dental work has hurt – especially for us older folk who grew up with a very limited choice of care. So we either don’t go to the dentist regularly, or go only when there is an emergency – and then don’t return.There are several issues here: finding patients, getting patients to return, and having referring dentists choose you to refer their patients rather than their other dentist friends.PATIENTS DECISION FACTORSSince patients don’t like coming to dentists, they have to make a decision to visit one at some point – hopefully prior to having a dental emergency. And, while you can connect
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed.
Not the easiest business in the world, but if Bob will walk before he runs run here, you can see he might find it possible to shatter these goals prior to end of fiscal year one. Should we throw this case study in the trashcan? Is this a feasible endeavor for Bob, father and husband in a family of five? Should we further look at a better case scenario than the one listed which many could consider next to worse case scenario above? Do we sharpen our pencils for Bob and continue, keep assumptions or quit? We need to be honest with Bob too, because "falling in love" with a business or product can make you dead or broke. This should only be about winning and making money, as Bob Smith the founder of the JoggingLight has built up a nest egg for his family, should he risk it all on this new widget; The JoggingLight?
What are your thoughts on this Case Study; in analyzing a prototype project and it’s costs for a Start-up Company? Would you go with Bob’s project or reject it? Do you as a business student think it is feasible? What is the basis for your answer? Are there real life places you could shave costs? Remember it would be better to be wrong on the downside than out of business with an unforeseen blindsided problems that could wipe Bob’s hard earned nest egg out. Think on this.
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