Go Figure Inc. Business Plan Essay Samples
1. To establish a prototype center for technology demonstration.
2. To successfully convert the three existing accounts to ongoing maintenance and support accounts with rotating fees, at a rate of 100%.
3. To secure no less than 20 new accounts by the end of the fiscal year, and to increase sales by between 20 and 25% annually thereafter.
4. To deploy an automated helpdesk system with 24 hour customer service and technical support.
Mission: To develop technologies that improve circuit board production. To assist businesses in minimizing overhead cost by replacing man hours with effective technology and reducing human error through technical precision.
What are they Key Factors to Success:
Keys to success for Go Figure Inc. are:
High Quality Components: All the components used in manufacturing the device must be of the highest quality both for the device to function with precision, and for the device to hold up to the physical rigors of the testing process.
Value: People will only expand the use of our products in their manufacturing lines if we are providing something of value. We need to ensure that both our product, and our support services are providing value to the companies we serve, and providing measurable savings.
Credibility: Since this is an emerging technology, we need to build credibility in the market. It is essential that we, as a company, and as individuals who serve the company, be seen as experts in the field.
Usability: The product must be easy to use. This does not mean that we can make it any less technical. Instead, we must be proactive in providing the training and support necessary to make the device easy to use, and effective in the workplace.
The purpose of Go Figure Inc. is to provide circuit board manufacturers with a device that can effectively inspect each circuit board for defects. Our device has the ability to test circuit boards for a variety of specific defects in a way that is both time and cost effective.
Initially, Go Figure Inc. has established service contracts with the following companies:
Circuit Circus LLC
Optimum Pro Circuits
It is key to the company’s success that it not only maintain the relationships with these companies, but also build a history of product success, so that we are capable of reaching the more than 30,000 companies in our niche market.
The business is currently a subchapter S Corporation, which was incorporated on February 19, 2014. The corporation has one shareholder, Adam Chandler of Chandler Enterprises and has 3 principals, each sharing equal interest in the corporation. They are Erica Caine, Tyler England and Joe Martin. Erica Caine is the President, Tyler England is the Secretary/ Treasurer, and Joe Martin is the Vice President. 10 million shares of stock were initially issued, with each principal receiving 3 million shares, and with 1 million shares placed in an options pool.
Go Figure Inc. is physically located at, and operated from <555 N Main Drive, Office B, Silicon Valley, CA>.
Product and Services
Go Figure has developed a unique technology that can inspect a circuit board, and test it for defects and errors. We, as a company would provide companies that contract with Go Figure with both the device, and with employee training for how to set up and use the device appropriately.
The technology used to test the circuit board is a combination of traditional electrical current testing technologies and more modern information systems testing components which allow the device to quickly and easily detect any broken welds, faulty soldering areas, or other manufacturing defects.
In terms of circuit board technology, this is a significant quality assurance breakthrough. Every circuit board is made up of 2 to 5 million unique components, and that number is growing as we globally build computer and electrical systems that are both more complex, and more condensed. Each component is placed on a circuit board and soldered individually into place, but the reality is that the speed with which circuit boards are built, often results in pieces assembled with wrong polarity, missing components, duplicated but incorrect components, broken welds or junctions and a variety of other issues. As a result, it is estimated that as much as 25% of the boards that leave the manufacturing lines have serious flaws. The customer service cost of replacing these boards in devices, after they arrive at their final use point, it substantial and could be reduced by more than 80% with the use of our device.
Initial research into the target market found that there are 30,000 marketing lines that could be directly serviced by Go Figure’s new technology, though we have only currently established prototype testing in three of those locations.
In terms of competition, currently there is nothing like our product on the market, and so there is not a competition base. At present, companies are using visual inspection to look for defects in each circuit board, which is costly because of man hours used to complete the inspection, and because it is not very effective; human inspection is both prone to error and extremely time consuming. The reality is that there are simply too many very detailed, very small components in a circuit board and many of the flaws are not visible to the naked eye.
There are currently 5 basic types of circuit boards, which can be used to segment the market and consider market growth possibilities: breadboard, perfboard, etched PCB, print board, and stripboard.
We as a company have found that 80% of the market potential lies with the print and stripboard marketing segments, and so intend to focus our marketing on those areas. These are the types of circuit board used in most personal technologies. The other three segments are stagnating, or becoming technologically obsolete as the printed and stripped market grows.
Strategy and Implementation
At this point our competitive edge lies in our patent. This is an entirely new technology, with no known competitors or similar products, which is replacing an ineffective manual labor process. However, should we fail to secure a full patent on the technology that could change rapidly. It is essential that we pursue and secure the patent in order for our business plan to move forward.
Our primary method of gaining new customers will be through a demonstration of our prototype device in a public and observable manufacturing setting. We have arranged to set up a fully functional prototype at a host location that we can bring potential clients to, in order to demonstrate the product’s effectiveness and scope in a real-world setting. Secondary methods to increase our customer base will include strategically placed ads in technical journals, networking at professional events and related trade shows, and word of mouth.
Repeat wholesale business will be, to some degree limited, by the fact that we do not expect companies to repurchase the device for several years. Meaning, the product should be built to a quality that lasts several years between purchases. However, it should be our goal to maintain accounts, and create a sense of dependence on our product. Repeat customers can be gained by providing companies who use our device with top notch customer service, repeated training on the device, and excellent device maintenance. We will also continue marketing directly to existing customers by promotional items such as t-shirts, office supplies, posters, and other ad products, hoping to increase word of mouth traffic.
Price will initially be set at $900,000 per unit, with sales set of increase price to $1.35 million when we are established beyond the prototype phase, within an 18 month period of the new prototype demonstration center’s launch. We expect each business that chooses to invest in Go Figure’s circuit tester to begin with one device, and then expand, or add devices until there is one device secured in each manufacturing line.
The current management team includes Erica Caine as acting CEO, Tyler England as head of technology development and Joe Martin as head of technology implementation. These three executives have a vested interest in the company and re the product creators. However, the recognized that they, as technology specialists, are not qualified to handle many of the more complex business issues. Jodie Dewitt walker has joined the team as CFO, and manages all the businesses financial matters, and Alan Quartermain has joined the team to be acting Management Executive of Consumer Relations. The addition of Mrs. Dewitt and Mr. Quartermain to the management team will allow Caine, England, and Martin to continue focusing on product development and devices.
Go Figure’s financial projections for the next twelve months, are based on a conservative sales plan, on a month by month basis. We have also analyzed projected sales year-over-year for the four years that fall concurrently after. We will continue to sell the prototype design product, built upon order, until January 2016 at which time we expect to have a manufacturing line sufficiently developed to allow for more mass production. Base price is then expected to raise no later than March of 2015. Beginning February 2015, we will begin to sell extended service contracts on equipment that is already in use with the three companies we already service, as their 1 year free maintenance and support will be coming to a close. We will offer a $500 monthly fee for unlimited tech support and maintenance, or a step down limited 3-call, labor only warrantee for $150 a month.
In order to begin demonstrating use of the prototype and securing new customer accounts we need to set up and begin running the prototype in its host location. This will cost the company an estimated $1.0 million dollars in additional funds, which we intend to gain from outside investors. We will require an initial investment of $25,000, which will be secured by issuing common stock at $1 per share. The entrepreneur and members of the board will maintain existing equity
Currently, we have an expected fixed expenses totaling $3.3 for the 2015 year (Table 1), and we project that those costs to increase by roughly 20% per annum, for the next five years (Table 2). We have current accounts receivable of 1.4 million dollars, and owe nearly 10,000,000 in long term debt, in the form of a start-up loan for operating costs (Table 2). Despite these limitations, have a projected breakeven point of just $344,600 each month for the current fiscal year (Table 1), and at the end of the five year term described in our financial planning, we expect to total liabilities and $82,278,000 (Table 2).