bracket business plan

BUSINESS PLAN

CRITICAL SUCCES FACTORS

CONTENTS

1. EXECUTIVE SUMMARY PAGE 5

2. BUSINESS BACKGROUND PAGE 5

3. MISSION, VISION CORE VALUES PAGE 7

4. TACTICS PAGE 10

5. OUR TEAM PAGE 11

6. SWOT & CRITICAL SUCCESS FACTORS PAGE 12

7. MARKET RESEARCH PAGE 13

8. MARKET ANALYSIS PAGE 16-17

9. COMPETITOR ANALYSIS PAGE 18

10. MARKETING STRATEGY PAGE 18

11. PRODUCT DEVELOPMENT PAGE 20

12. FINANCIAL PLAN PAGE 22-25

13. COMPLIANCE PAGE 25

14. IT AND EQUIPMENT PAGE 26

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1. EXECUTIVE SUMMARYOUR BRAND Bracket is a customizable furniture system which gives users get the chance to assemble furniture from kits, or with their own materials using standardized joints.

Bracket’s goal is to get people connected to the manufacturing process through self assembly of furniture with customization capabilities.

COMPETITIVE ADVANTAGESOur system offers users many unique experiences. We offer the unique experience of easy user assem-bled furniture. The customization and creative possibilities using our standard joints is limitless, and will allow people to make a wide range of other things using our adaptable joints.

GROWTH PLAN SUMMARYOur company is starting off small, we are able to design and prototype our designs in house, but with production of our product we will need to invest a significant amount to make a mold for injection molding. We will start by selling our products directly to the customer through our website. With growth of our company, and support from investors we hope to bring more of the production and manufactur-ing of our products under our control, by purchasing the necessary machinery as opposed to outsourc-ing to get our products made. In the future we hope to continue to develop our product line through research and development from our experienced product design team, allowing our customers more options for creativity and adaptability. We hope to have products ranging from kit sets of chairs, tables and more, to ‘joint’ sets which provide the customer with a wide range of ‘joint’ options which they can create their own designs out of. The growth of our business will help fulfill the goals of fostering creativity, and a more adaptable product that connects people to the manufacturing process. Our initial kit sets are only the tip of the iceberg for what is possible using universal and adaptable joints in furniture designs. Our company looks forward to exploring these possibilities alongside our customers.

2. BUSINESS BACKGROUNDComing from product and graphic design backgrounds, our team is interested in how things are made, and making things ourselves. We see that most people are not typically aware of how the things that we use everyday are made, however many share the same curiosity as our team. There is a growing disconnect between manufacturing processes and the consumer in modern society. Our goal is to change that by bringing people into the manufacturing process by allowing them to finish the assembly and final design of their furniture themselves. The act of assembling their own furniture allows people to familiarize themselves with their product, and realize its potential to make new things.

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MISSION - To connect people to the manufacturing process.- To foster creativity through adaptable elements in furniture design

VISION- Creating products that allow people to create, adjust, customize and learn through their furniture. - Offering spatial, structural and creative understanding through the physical handling and assembling of furniture.- Giving the public a better appreciation and connection to how things are made.CORE VALUES- Connections: between consumer/ manufacturer/ product/ construction/ materials- Creativity through creation- Customization thanks to adaptability- Understanding through exposure


4. TACTICSE-COMMERCE AND TECHNOLOGYWe will build a custom e-commerce platform on our website which will be the primary channel of selling our product. The website will offer international shipping, as our market is not just limited to New Zealand. Our web-site will include electronic inventory management to make sure we have the products in stock that we sell. We will also use google analytics on our website so we can accurately analyze the viewership on our page. This will give us key information on the demographics of our customers, and who is visiting our site. Our in-house distribution efforts will closely monitor our E-commerce platform to ensure accurate and timely shipments of orders. Our website will offer payment options of all the major credit cards as well as online payment systems like paypal, making our selling capabilities truly international.

PRODUCTION STRATEGY

The plan is to revise and refine traditional production methods with design at the forefront of our production strategy. We plan on using traditional manufacturing methods in order to create a product that is simple to assemble, by doing this we can keep the cost price down, delivering a competitive price point to the customer. We will start with 3D modeling on computer. Throughout the design process, we will prototype and refine the designs. Once a joint design is finalized we will send a file away to get a aluminium tool made for injection molding. Once the mold is made, we will be able to create thousands of the same injection molded piece easily and quickly. We will mill the wood using our CNC routing machine. Our product will incorporate the production method of plastic injection moulding and CNC routing, once produced these parts are unique and universal to our product range and can be incorporated across the home in multiple applications.

SELLING STRATEGYWe will be limiting our selling strategy to direct online sales through our website. As a small start up we cannot afford to lose the high margin required to sell our products at a brick & mortar location, or through third party retailers. Our product is very expensive to produce, and the markup needed to sell our product through retailers would make the cost too high for most people in our target market. By selling our products directly from online sales, we cut out the need for distribution accounts, and the loss in profit associated with dealing with retailers. We can contribute more of the revenue from sales to producing top quality product, as well as the development and expansion of our line. Customers will be able to order all of our products directly from our website, where we will ship directly from our headquarters, worldwide. All of our marketing tactics will be focused on driving customers to our website where they can find out more information and buy our product all in one place.

DISTRIBUTION STRATEGYWe will ship all of our products directly from our headquarters to customers worldwide. We have decided to make our target market larger than just New Zealand. There would not be enough customers locally to support our brand, so it is necessary to branch out globally from the start. For shipping we will create an account with Fed Ex, and will do our shipping through them. The added cost of shipping internationally will be covered by an extra fee for the customer, so international distribution will not take away from our profit margin.

STRATEGY CHANGES WITH GROWTHAll of the above strategies are current strategies used during the initial start up period based on our current funding levels. Our growth plan highlights some key changes to some of these strategies. Depending on sales fig-ures and investment levels, our goals and strategies are likely to change. For further information regarding plans for growth and how our production, selling and distribution strategies will change see section 11 (financial plan).

CREDIBILITY AND RISK REDUCTIONBefore fully launching our brand we will fully register as an LLC, which will allow us legal standing. We will work to-wards creating legal creative ownership of our designs to minimize risk of competing products. We will also hire an accountant twice a year, or as needed to make sure our financial records are sufficient and up to date. All of our designs will go through extensive product testing to ensure safety and strength. Our products will be engineered to the highest quality and backed by a ten year warranty for any defective parts..


5. OUR TEAMMANAGEMENT STRUCTURE

CEO- Brian CulmoLEAD DESIGNER- Will Bamber DESIGN AND PRODUCTION TEAM- Antonio Garnet Wan, Daniel Smith

BUSINESS OWNERSHIP STRUCTUREOur team (Brian, Will, Antonio, and Daniel) are prepared to invest a total of $20,000 of our own money into the business. We will still need an investment of $70,000 in order to purchase our own CNC machine and produce tooling for injection molding of the joints. For this investment we are looking to give away 35% equity in our busi-ness. The four team members will hold equal shares of the remaining 60% of the business (15% each).

BRIAN CULMO CEOBrian is Studying graphic Design and Digital media. He brings experience in building brands and marketing. His skills in design thinking, and entrepreneurship will help the company have successful strategy for marketing and development in the future. His skills in design will ensure the core values and mission of the brand will be communicated and envisioned through the production and selling of our product.

Skills and qualifications: Graphic design, Marketing, Branding, Organisation, Entrepreunership, Technical focus, Aesthetic, Conceptual Thinking

WILL BAMBER LEAD PRODUCT DESIGNERWill is an experienced and diverse skilled Industrial Designer. Initially focused towards a professional career in motorsport, Will has remained true to his roots with a technical approach to design. With an expertise for computer aided design, manufacturing process and human centered design, he is a well rounded and suited product designer. Identifying, satisfying and surpassing true needs of users is at the heart of his work and his international travels will ensure Bracket’s endeavours are contextual, opportunistic and managed.

Skills and qualifications: Product design, manufacturing, prototyping, organisation, business minded, human centered design, entrepreneurial

DANIEL SMITH PRODUCTION MANAGERDaniel is a third year student studying Product design at AUT. He is more connected with the technical side of design excelling at product development and final concept prototyping. He is an asset to the company in respect to ongoing product development and his drive to sell a successful product in the market place. His knowledge of manufacturing processes has helped the company understand the feasibility of products and developing new processes that could be incorporated in our product line.

Skills and qualifications: Product design, technically minded, prototyping/concept delivery, CAD, machinery

TONY GARNET WAN PRODUCT DEVELOPMENTAntonio Wan is currently studying Industrial design and innovation at AUT. He specializes in designing for emo-tional response. He brings to the company a growing knowledge of batch production of craft design, using design thinking and human centred design approaches to counter and refine design problems. The intrinsic value imbedded into the design will be shown through the use of the product.

Skills and Qualifications: Product Design, Wood Working, Prototyping, Workshop Machinery, Concept Development

OTHER SHAREHOLDERSWe will need to bring in other investors to purchase our expensive machining. Our incoming investors will hold a 40% share of the business.

OUTSIDE HELP NEEDEDFINANCIAL ACCOUNTANT:

To help with the finance and legal filings of our business, we will need to hire a financial accountant for temporary periods. This position will not be full time, but on a temporary basis, like during the start-up phase, and near the end of the fiscal year. The accountant will ensure safe financial practices and keep the technical, legal and financial records of our company.



6. SWOTINTERNALSTRENGTHS- Easy to assemble furniture, also easy to take apart/move- Customizable, adaptable joints creating endless possibilities- Unique experience of building furniture yourself without the need for tools- Bringing back the DIY mentality into modern Kiwi society- Easily taken apart and put back together for easy moving- Adaptability of the joints for many different furniture applications

WEAKNESSES- Strength of materials could limit customization possibilities- Hard to get people to customize beyond standardized instructions/kits- Assembling of furniture could be seen as overwhelming, complicated or confusing

EXTERNALOPPORTUNITIES- People like making things, especially new, cutting edge things- Scalabilty of our brand to include other types of products beyond a chair kit set- User created content using our product can promote our brand- Very few direct competitors offering the same product and experience

THREATS

- Hard to stand out from larger, build it yourself, customizable, and space saving furniture brands- Our unique experience could be jumbled into other, more competitive markets- Cheaper furniture options, with more variation in design available- Price of materials/kits could make product too expensive for people compared to other options

CRITICAL SUCCES FACTORSThe success of our business relies on some key factors. We need to make sure our product is easily assembled and encourages customization. Our product needs to engage and inspire people to make new things using Bracket joints. Our marketing must show there is unlimited potential for ways to use our product.


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7. MARKET RESEARCHPeople don’t create things anymore. People are afraid of experimenting and adjusting parts of their life. People are intimidated by the complicated and sophisticated tools needed to make functional furniture. Why can’t it be easy like when we were kids playing with LEGO or knex? There is room in the market for a technology or product which gives people a universal, standardized interlocking system in which they can develop, customize, adapt and adjust functional furniture. The current market is flooded with tons of products which offer sophisticated systems to build furniture, but for the average person, it is way too intimidating. Many people are too overwhelmed by wood working tools and the experience neces-sary to make quality furniture. Many people cannot afford all these tools, or cannot devote the time to master using these tools. The experience of making custom furniture doesn’t have to be an all consuming affair of peoples money and time.

Researching and understanding the target market user through qualitative and quantitative means of research tools, has shown that the target end user in today’s society will lead multiple jobs, move homes and live in different and varying cultures. People will be looking for furniture which can be easily taken apart and put back together. The “number 8 wire” of making things is diminishing in New Zealand, and abroad. Our aim is to get more people back involved in making things, using easy to grasp techniques with minimal tools involved. There is a significant opportunity to bring back the pride and satisfaction that people have in actually making something they use everyday.

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8. MARKET ANALYSISMARKET OPPORTUNITY

The self-assemble furniture market is very competitive. Many large brands offer furniture that people can assemble at home. Brands like IKEA dominate this market. We stand out in this market by offering marketing and experience, not just a physical object. Bracket is an idea, an opportunity to create some-thing yourself. Our competition focuses on just the look of a product, and pays little attention to the assembly process. Bracket also differentiates itself in this market by offering a product which is intrinsically easy to understand. Our assembly process is meant to be intuitive, educational and satisfying, as opposed to frustrating, time consuming and confusing like many of our competitors in this market. We want people to have positive attitude about their building process, which will hopefully encourage them to build and experiment more. We want the initial sets to be simple and intuitive so that people feel confident enough to explore more. Many of our competitors in this market offer such confusing products that consumers are inclined to hire someone to deliver and put together their furniture. We think this is flat out wrong. Many people have lost sight of the inherent value of assembling and making things yourself. If done right, making things should be a rewarding process, not a frustrating one, regardless of experience or ability of the customer. Our hope is that by assembling their furniture, consumers are more likely to want to learn more about the rest of the manufacturing process, as opposed to being put off by it, which is the current trend in today’s market.

In order to compete in the even larger furniture market, we must create aesthetically beautiful and unique furniture. Our standardized joints will look unique and our experienced team of designers work hard to create a product which is both fully adaptable, universal, structurally strong, and beautiful. The conceptual ideals behind Bracket like standardization and adaptability are apparent in the design of our joints and furniture, making the aesthetic even more appealing to an inquisitive eye.

Bracket fits within all of these markets, depending on how specific we look. We can analyze our position within these markets. Bracket will compete better in the more specific markets like standardized furniture building systems, compared to the broader, more competitive markets like self assemble furniture.

MARKET SIZE AND OUTLOOKBy selling online we are immediately opening our market up to a global scale. Our target market would be too small in New Zealand to make our brand sustainable, so we are targeting people all over the world.

Adaptable furniture is emerging as a desirable item, and this market is poised to increase in the coming years. As our product becomes more popular, our most dedicated users will want more than a few of our joints to complete their custom projects. We will constantly have a market of returning customers looking for the materials to help feed their creative explorations.

FUTURE MARKETS

By creating a product so focused on potential and consumer creativity, we are setting our company up to be able to adapt and grow organically with our market. Our users will dictate the direction of our brand while we provide them with products which allow them to maximize their creativity. We don’t know what people will be making with our joints in the future, but we are sure that we will support them in whatever they are making. By allowing the market to dictate the direction of our brand, we are setting ourselves up to be relevant and adaptable, just like our products. We will let the speculation and creative thinking happen within the market. We want people to be involved in the process of creating what they want, we are just in the business to help foster their creativity and give people a creative development platform that is accessible to everybody.

MARKET STRUCTUREFurniture- Self assemble furniture

- No tools needed furniture- Customizable furniture

- Standardized, universal furniture building system


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TARGET MARKETS

Customer Face 1: DIY Dad

- Male, Married, 30-50 years old, college educated, has kids age 5-18- Works in tech industry- Middle upper class income- Likes to fix things in house by himself- Wants to do more projects around the house, but doesn’t have time with busy work and family commitments

Customer Face 2: Young Working Professional

- Female, Recently graduated college age 25-30- Lives in apartment- Hasn’t settled down in one place yet, keeps moving to follow jobs, not grounded- Ready to upgrade from second hand “College” furniture, to something a little more respectable- Follows design blogs, tumblr, pinterest, etc. often

TARGET MARKET: GENERIC ATTRIBUTES

- People who want to make things but are intimidated by tools, process and time- Middle aged working adults (with or without kids)- Hip modern design thinking people- People who move apartments/ houses often- People who like to tinker, alter, and create in other ways

TARGET MARKET DEMOGRAPHICSPRIMARY TARGET- Middle upper level income level- Middle aged adult- Working professional- College educated- Male- Has family

SECONDARY TARGET- Middle income level- Young working professional- Career in a creative field- Female

TERTIARY TARGET- Teenagers aged 12-18- Hobbyist, or into crafts- Excels in school, aiming to attend college- Supportive family- Male or female


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9. COMPETITOR ANALYSISThere are very few brands that can offer the same value to the customer as Bracket. We offer a unique experience and opportunity for new and exciting creations. By focusing on building and creativity, our potential is not realized with our initial product. Our customers will make Bracket products into amazing creations which will only further emphasize the power of our product. Many of our competitors are too focused on providing a singular product, as opposed to an experience or the potential for creative exploration. Bracket is more than a product, but an opportunity to create something more. By focusing on product potential we are able to differentiate ourselves from most of our competition.

Compared to other custom furniture options, Bracket is extremely accessible. Our product is easy to un-derstand, manipulate and experiment with. No tools or extensive knowledge is needed to adjust, create or adapt your furniture using our pieces.

IKEASTENGTHS- Many design options- Affordable- Simple modern design

WEAKNESSES- Complicated/ confusing to assemble- Very hard to take apart- No customization options- No room for user created adaptability- Lower quality materials- No adaptability

LEGOSTRENGTHS- Teaches people connections of things- Embraces creativity and development- Teaches people structure and engineering- Standardized, adaptable pieces

WEAKNESSES- Seen as a kids toy, adults afraid to use it- Can’t be used functionally- Small model scale

10. MARKETING STRATEGYOur marketing strategy will involve an aggressive online and viral campaign targeted towards PR. We will create a website and a press kit in which blogs, websites, and individuals can promote our product. We will spend time creating a unified brand experience, with striking visualizations of the product, and with an emphasis on storytelling. Our website and accompanying information will communicate a consistent story of our brand and our mission to connect consumers to cutting edge manufacturing processes. We want to drive user created content using our brand as much as possible. We want to see the cool things people are creating using our platform. We will ask people to share their projects on our website, and the best projects will be featured to show people the great uses of our product.

MARKETING LAUNCHWe will set up professional product photography, and create consistent brand messaging to make the visual appearance of our brand on target. We will manage social media and PR campaign to ensure our brand is getting its name out there. Our aim is to get showcased on design blogs and websites like Super-compressor, FastCo., Cool Hunting. We will create content that is easily shared in social media channels like tumblr, personal blogs, pinterest, twitter, and facebook.

MARKETING BUDGETMost of our marketing efforts will be based on digital and online awareness. We want to build brand awareness and interest through the viral capabilities of the internet. As a small start-up we cannot afford lavish marketing campaigns, so we will focus on maintaining a solid web presence and push to promote our brand through online channels. We will continually work to engage with people online about our brand, while saving costs by limiting our purchasing necessities for advertising. For more specific information on our marketing budget see section 11 (financial plan).


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FINANCIAL PLAN OVERVIEW

a paragrpah or 2 explaining our finances in general terms

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11. PRODUCT DEVELOPMENTUNIVERSAL JOINTOur product concept was to create a universal plastic bracket that invited customers to engage with the manufacturing process but to also gain a greater understanding and appreciation for the future of manu-facture. For this reason, the bracket joins feature an exposing aesthetic to lure examination of the pieces and potentially encourage experimentation in the future. The refinement process was extensive due to the considerations for a simple, intuitive and attractive joint that would ultimately be manipulated by the BRACKET team but also by users and the community for a range of purposes as previous documented.

SIZESelecting an appropriate size for both the BRACKETS and accompanying wood pieces were essential to communicate a perceived and physical quality for the product. The thickness of the BRACKET’s were increased to insure structural rigidity and the design layout also considers the forces induced upon the points of connection.

COMFORT VS ERGONOMICWith the Bracket ‘hero’ product being a chair, comfort is of upmost importance. Our mission in this area was to ensure a physically comfortable chair that still functioned in terms of an intuitive manufacturing process of which the user is fully in control of. Fitting sleeve like slats over the internal beams of the chair allowed us to offer a flush finish and develop the form of the surface to offer enhanced product comfort whilst also improve strength.

3D PRINTINGWith our initial mission to educate regular every day consumers with modern day technology and processes, 3D printing was explored for its unique capabilities to build in a space. Specifically utalising SLS printing which forms a solid from a nylon powder, such a process would have enabled us to pro-duce abstract forms that performed a functional purpose. Two reasons shifted our direction – 1. It was beneficial for a successful business model to produce BRACKET’s that offered a modular purpose for individual manipulation and 2. Such a process is not viable for mass production due to astronomical costs and manufacturing time. However, 3D printing was useful in our development to quickly prototype ‘one off ’ BRACKET’s for concept testing and development.

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12. FINANCIAL PLANFUNDINGWe will need to invest a significant amount of money at the start up phase to allow for the purchasing of our own CNC routing machine. We will also need to invest in the tooling of a mold for injection molding. This process is very expen-sive upfront, and requires a significant investment of $50,000. This initial investment will make our production costs very low for the manufacturing of our joints after the initial start up phase. We will be looking for an investor to help with these expensive start up costs. The remaining start up costs along with the recurring fixed costs can be covered by the $20,000 investment from our team. After the initial start up our production will run much more smoothly financially, with high profit margins which will allow us to pay back the investment on the equipment.

BREAK EVEN DATEAccording to our sales projections we will break even on the fourth month of the second fiscal year. After breaking even we will continue to make money. By early in the third fiscal year our investors will make 100% of their investment back. with profits only going up from there.

CASH FLOW FORECASTOur initial investment of $20,000 from or team will allow our company to operate in the early stages of starting up. Sales coming in will also bring in enough cash to sustain production to keep up with the demand. The money from investors will be used for the high upfront costs of purchasing equipment and molds, thus eliminating any other potential sources of debt. Because of our online selling platform, our sales revenue gets directly sent to us, allowing us to maintain cash flow compared to third party distribution and retailers.

VARIABLE COST OF PRODUCTSCHAIR KITMaterials-wood $15CNC tooling $3Injection molding $1Laser cutting $1Packaging $5Distribution/shipping $5E-commerce $3Labor $10Total cost per chair $43

Retail Value per chair $110

TABLE KITMaterials-wood $8Injection molding $1Laser cutting $1Packaging $5Distribution/shipping $5E-commerce $2Labor $5Total cost per table $27

Retail value of table $70

JOINT ONLY KITInjection molding $2Packaging $3Distribution/shipping $2E-commerce $2Labor $2Total cost per joint kit $11

Retail value of joint kit $45

START UP COSTS

Product development $1,000

Website $400

Marketing launch $400

CNC machine $15,000

Injection mold tooling $50,000

Start up cost total $66,800

FINANCIAL PLAN FY1Month 1 2 3 4 5 6 7 8 9 10 11 12 Y1 total

Chair kit

Sales quantity 30 35 40 45 45 50 55 55 60 65 65 70 615Revenue from sales 3,300 3,850 4,400 4,950 4,950 5,500 6,050 6,050 6,600 7,150 7,150 7,700 67,650

Variable cost of chairs 1,950 2,275 2,600 2,950 2,950 3,250 3,575 3,575 3,900 4,225 4,225 4,550 39,975

Table kit

Sales quantity 10 15 15 20 20 20 25 25 25 30 30 30 265Revenue from sales 700 1,050 1,050 1,400 1,400 1,400 1,750 1,750 1,750 1,750 2,100 2,100 18,550

Variable cost of chairs 270 405 540 540 540 540 675 675 675 810 810 810 7,155

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Variable cost of chairs 275 275 330 385 440 495 550 605 660 715 770 770 6,270

Fixed costs

Product development 200 200 200 200 200 200 200 200 200 200 200 200 2,400Accounting 150 0 0 0 0 150 0 0 0 0 0 200 500Marketing 200 200 100 100 50 50 50 50 50 100 100 100 1150

Website hosting 20 20 20 20 20 20 20 20 20 20 20 20 240Insurance 20 20 20 20 20 20 20 20 20 20 20 20 240

E-commerce 20 20 20 20 20 20 20 20 20 20 20 20 240IT 100 0 0 0 0 100 0 0 0 0 0 0 100

Studio space (rent) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000Utilities 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Fixed cost total 1,910 1,660 1,560 1,560 1,510 1,760 1,510 1,510 1,510 1,560 1,560 1,760 19,370

Start up cost total 66,800 66,800

Profit -66,080 1,410 1,905 2,515 2,735 2,880 3,740 3,910 4,305 4,865 5,035 5,060 -27,720

Break Even -66,080 -64,670 -62,765 -60,250 -57,515 -54,635 -50,895 -46,985 -42,680 -37,815 -32,780 -27,720 -27,720

GROWTH PLANAfter breaking even, we plan on continuing growth. We want to be able to expand our product line beyond the initial product offering. With a great product design team on staff, we want to be continually developing and pushing new ideas. As our brand grows we will work to create more products and offerings that will help to further achieve the core goals of our brand. If funds allow, we would like to invest in more injection molding tools, to allow for more options for joints to make even more creations. We will take suggestions and feedback from our customers, as they will know best what type of pieces they will need. As our brand grows we will work to make other aspects of our business as efficient as possible. We will look to ways to cut costs in areas like distribution, and E-commerce. Our marketing budget will have to increase with more sales numbers to continue to drive demand in the market and to create more brand awareness. We will work hard on keeping past customers en-gaged in our brand by involving them as much as possible in our development and marketing.


FINANCIAL PLAN FY2Month 1 2 3 4 5 6 7 8 9 10 11 12 Y2 total

Chair kit

Sales quantity 70 70 75 80 85 85 85 80 85 90 95 100 1,000Revenue from sales 7,700 7,700 8,250 8,800 9,350 9,350 9,350 8,800 9,350 9,900 10,450 11,000 110,000

Variable cost of chairs 3,010 3,010 3,225 3,440 3,655 3,655 3,655 3,440 3,655 3,870 4,085 4,300 43,000

Table kit


Variable cost of chairs 810 945 945 945 1,080 1,080 1,080 1,080 1,080 1,215 1,350 1,350 12,960

Joint kit

Sales quantity 70 75 80 80 85 90 95 100 100 105 110 110 1,100Revenue from sales 3,150 3,375 3,600 3,600 3,825 4,050 4,275 4,500 4,500 4,725 4,950 4,950 49,500

Variable cost of chairs 770 825 880 880 935 990 1,045 1,100 1,100 1,155 1,210 1,210 12,100

Fixed costs

Product development 300 300 300 300 200 200 200 200 200 200 200 200 2400Accounting 150 0 0 0 0 150 0 0 0 0 0 200 500Marketing 200 200 100 100 100 100 100 100 100 100 100 100 1400

Website hosting 20 20 20 20 20 20 20 20 20 20 20 20 240Insurance 20 20 20 20 20 20 20 20 20 20 20 20 240

E-commerce 20 20 20 20 20 20 20 20 20 20 20 20 240IT 100 0 0 0 0 100 0 0 0 0 0 0 100

Studio space (rent) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000Utilities 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Fixed cost total 2,010 1,760 1,660 1,660 1,660 1,910 1,560 1,560 1,560 1,560 1,560 1,760 20,220

Profit 6,350 6,985 7,590 7,925 8,645 8,565 9,085 8,920 9,255 9,975 10,695 10,830 104,820

Break Even -21,370 -14,385 -6,795 1,130 9,775 18,340 27,425 36,345 45,600 55,575 66,270 77,100 77,100

13. COMPLIANCELEGAL AND REGULATORY CONSIDERATIONS

We will fully license our business as an LLC to maintain proper governmental and tax registration. We will look into international standards of safety and ensure our product meets and exceeds those goals. We will work to abide by all international shipping regulations while distributing our product internationally.

INSURANCEWe will pay for insurance which will do some to protect our company from unforeseen dangers. We will also offer a full warranty on our products to ensure customer satisfaction and safety.


14. IT & EQUIPMENTPRODUCTION EQUIPMENT USE

CNC ROUTINGCNC Routing incorporates an automated 3 axis system using a router bit to mill wood and other materials with accuracy, this in turn reduces manual labour. Once a file is loaded onto the system, a G-code is produced and the cut can begin, this G code can be saved and used multiple times. CNC routing is a rather inexpensive process with the only cost being maintenance to the router tool which has to be sharpened after 30-40 hours use. Once sharpened the tool can be used for the same amount of time then has to be replaced in order to attain a perfect cut.

3D PROTOTYPING3D Prototyping is a quick and inexpensive way to physically communicate a complex object that can not otherwise be produced using traditional prototyping methods. It uses a coil of PLA Polymer plastic which is fed through a small element, this is then precision laid through a small nozzle in order to create a 3D object. This helps us as a design team to easily convey product development to possible clients and customers. The process also helps us conceptualise an idea to make sure that it will work with our existing injection moulded range and aesthetic.

PLASTIC INJECTION MOULDINGIn the large scale production, plastic injection moulding is the most cost effective method of manufacturing plastic parts despite the large initial tooling cost. This technology will allow for multiple parts to be produced in a matter of seconds as well as flexibility in plastic density and choice. The initial tooling cost is large as it requires a large aluminum block to be milled via a 5-axis metal cnc followed by hand polishing carried out by specialist tooling companies to make the mould. However because of the extensive pre-injection labour, the mould can withstand over 100,000 repetitions.

LASER CUTTING/RASTERLaser cutting is a machine operated method of cutting or rasterizing various materials such as wood, metal, leather etc. by means of using a intense beam of monochromatic light focused and used across an x and y axis to co-ordinate precise and accurate marks or cuts. We will use this machine to brand our products.

ITKeeping up with software is necessary for our business. We will need to maintain up to date software in Solidworks and Rhino. Our team has multiple people who are experts in using these programs so we will not need to hire outside help to 3D model our designs.

LOCATIONDuring the initial start up phase we will work without a physical location. As a small business we initially cannot afford rent and utilities for a studio space. Because we will be outsourcing much of the production at first (injection molding and CNC routing) we will be able to survive using temporary space to assem-ble, package and ship orders. We will not need a physical location to sell products as we will be selling exclusively through our website. One major plan for growth includes renting a studio space, and this will be one of the first things we will do once we can afford it. our studio space will be used as a workshop only and will not offer a retail environment, thus allowing us a smaller, cheaper space.

© 2014 Brian Culmo, Will Bamber, Antonio Garnet Wan, Daniel Smith


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