growify what will you grow? presented by: erik tetland
TRANSCRIPT
GROWIFY
What Will You GROW?
Presented by:Erik Tetland
What is GROWIFI?
Who Will Buy it?
Are there Competitors?
$30 $50-$150 $800+
Why GROWIFI?
Mid-Range Price of $100
Why GROWIFI?
How is it Made?
Is it Risky?
Sales200 per month, 20% cushion to breakeven
Competition Small barrier to entry
Minimizing RiskKickstarter
Is it Feasible?
Equity Investment$45,000
Employment Opportunity$15-$30 per hour, PT or FT
Dividends$30,000 in year 3, and increasing
Any Questions?
Parts Quantity Cost EachPurchase Cost Total
Power Supply 1 $3.00 $3.00
Microcontroller 1 $3.00 $3.00
Lights 1 $5.00 $5.00
Pump 1 $4.00 $4.00
Fan 1 $3.00 $3.00
Hose 1 $0.50 $0.50
Switches 2 $1.00 $2.00
Buttons 2 $0.05 $0.10
Cables 15 $0.10 $1.50
Soldering Supplies 20 $0.05 $1.00
Housing 1 $5.00 $5.00
Blank Labels 1 $1.00 $1.00
Packaging 1 $3.00 $3.00
Total: $32.10
Direct Parts Cost Product #1
Direct Labour Cost Product #1
Total Cost Parts Average Shipping Cost Total direct costs per unit$32.10 $15.00 $53.93
Step 1 Preparing PartsStep 1A Wire Harness $1.05
Step 2 Preparing ControllerStep 2A Upload Software $0.18
Step 3 AssemblyStep 3A Housing $1.75Step 3B Attaching parts $1.05Step 3C Connecting Wires $0.35
Step 4 TestingStep 4A Testing $0.70Step 4B Packaging/Labeling $1.75
$6.83
Labour Costs per unit
Total direct labour cost:
Sensitivity Analysis (Sales)
Monthly Sales (Units) 120 150 210 175.5 202.5Net Income -$28,877 -$10,963 $27,115 $92,886 $149,314
172 215 301 252 2910 $23,229 $71,410 $169,144 $253,171
190 238 333 278 321$8,549 $34,379 $87,682 $195,655 $288,511
150 188 263 219 253-$12,290 $10,671 $51,268 $135,985 $208,970
2016 2017 2018 2019 2020
Future Possibilities
Supply Restaurants
Commercial Greenhouses
Seed Pods
Nutrient Solutions
The Team
Income StatementSales Revenue
Model 1 240,000 306,000 436,968 245,139 250,042 Model 2 - - - 318,362 470,858
Total 240,000 306,000 436,968 563,501 720,900
Cost of Goods Sold 172,945 206,723 272,256 267,203 311,303
Gross Margin 67,055 99,278 164,712 296,299 409,597
Management Costs 24,000 24,480 24,970 25,469 25,978 Marketing Costs 14,700 14,994 15,294 15,600 15,912 Software Development 6,000 6,120 6,242 6,367 6,495 Hardware Development 6,000 6,120 6,242 6,367 6,495 Interest 1,000 836 656 458 240
Total Expenses 51,700 52,550 53,404 54,261 55,119
Income before Taxes 15,355 46,727 111,308 242,038 354,478 Taxes 1,996 6,075 14,470 31,465 46,082
Net Income 13,359 40,653 96,838 210,573 308,396
Beg Retained Earnings - 13,359 54,012 113,698 236,636 Net Income(Loss) 13,359 40,653 96,838 210,573 308,396 Dividends - - 37,152 87,635 209,746 End Retained Earnings 13,359 54,012 113,698 236,636 335,286
Dividend Policy $50,000.00
COGSDirect Materials Per Unit 2,016 2,017 2,018 2,019 2,020
Model 1 32.10 77,040 96,300 134,820 74,151 74,151
Model 2 50.00 - - - 60,000 87,000
Direct Labour Cost
Model 1 6.83 16,380 20,475 28,665 15,766 15,766
Model 2 10.00 - - - 12,000 17,400
Average Shipping Cost
Model 1 15.00 36,000 45,000 63,000 34,650 34,650
Model 2 20.00 - - - 24,000 34,800
Direct Costs 129,420 161,775 226,485 220,567 263,767
Overhead
Lease 36,000 36,720 37,454 38,203 38,968
Utilities 6,000 6,120 6,242 6,367 6,495
Insurance 750 765 780 796 812
Capital Cost allowance 775 1,343 1,294 1,269 1,262
Overhead Costs 43,525 44,948 45,771 46,636 47,536
COGS 172,945 206,723 272,256 267,203 311,303
Average cost per Unit 72 69 65 76 77
Average sale price 100 102 104 161 178