Symptum Cycles Business Plan Presentation


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Won 5th 2008 WSU BPC April. Partner Megan

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Symptum Cycles Business Plan Presentation

  1. 1. Symptum Cycles<br />Business Plan<br />
  2. 2. Overview<br />Internal Drive System<br />Market<br />Competition<br />Operations<br />Financing<br />Exit strategy <br />
  3. 3. The Problem<br />Traditional external bicycle gear shifting reliability depends on <br />User set-up<br />Compatibility of parts<br />The chance of a standard gear system shifting correctly is 26%<br />External gear systems are prone to the elements<br />Maintenance<br />Quality <br />
  4. 4. Symptum’s Solution<br />A standardized Drive System <br />That will reduce the overall weight<br />Guarantees a 98% chance of shift reliability <br />Symptums internal drive system is more efficient then anything out there today on the market. <br />Will be significantly less expensive to manufacture. <br />Frames will be lighter, more durable and reliable. <br />
  5. 5. Mission Statement<br />Symptum Cycles has one ultimate motivation- Change. <br />To be the premiere provider by offering a product that uses the most advanced technology available to assure a more effective and purely exceptional product design. Making performance and perfection a standard.<br />
  6. 6. Business Concept<br />Drive System<br />No gears will be required for shifting.<br />Will use a Infinitely Variable Planetary Drive System. <br />Symptum will pre-select 27 gear ratios to be shifted by a rapid shift mechanism.<br />Ability to offer an infinite amount of gear ratios. <br />Creates a more balanced bike distributing the weight towards the center of the bike. <br />
  7. 7. Standard External Gear System<br />A standard gear systems chances of shifting correctly is less than half than that of an internal gear system. <br />Requires constant maintenance. <br />Exposed to the elements. <br />Over time major wear will occur. <br />Possibility of potentially damaging beyond repair. <br />Gear selection is severely reduced. <br />
  8. 8. Symptum Internal Drive System<br />Requires little to no maintenance. <br />Not exposed to the elements. <br />Will be similar in weight. <br />Shifts more reliably all of the time.<br />
  9. 9. Opportunities<br />All bikes will be made from an Easton proprietary aluminum tube set. <br />Use Hydro-forming and CNC Machining to strengthen and reduce weight in frame designs. <br />Our standardized internal drive system will allow for precision shifting of 98%. <br />They will be designed and handcrafted in the United States.<br />
  10. 10. The Team<br />President Mitch Angus: Avid sponsored bicyclist competing<br />The National Off-Road Bike Association, Oregon Bike Racing Association, Canadian Cup, Washington, Idaho, Montana Mountain Bike Series.<br />COO Meagan Terrell: Recreational bike rider<br />Entrepreneurship Major, Experience with startup companies<br />
  11. 11. Market Summary<br />6 Billion Dollar Industry in the US.<br />Bike Industry is growing at a rate of 6.4%. <br />Headquarters will be located in Portland, Oregon.<br />Portland regularly ranks at the top of Bicycling Magazine’s list of the best cycling cities.<br />Portland’s bicycle-related industry is worth $63 million. <br />Nation’s highest % of workers who commute by bike, about 3.5%. <br />The market is increasing yet stable and will continue to thrive with popularity in the sport starting to increase. <br />
  12. 12. Target Market<br />Active, passionate bike riders ages 15-35 <br />Aggressive, active and entertaining lifestyle while seeking high quality of perfection and reliability <br />Discretionary income <br />
  13. 13. Competition<br />Bicycle industry is divided into 4 different distribution channels. <br />Specialty 49% II. Full Line 8%<br />III. Other 6% IV. Mass Merchants 37%<br />Niche<br />Having a standardized internal drive system will set us apart from the competition.<br />
  14. 14. Marketing and Sales<br />Word of mouth & viral marketing will play a large role in Symptum’s business. <br />Sponsoring events & promoting products at conventions <br />A team vehicle that shows up to local events<br />A team of sponsored riders to ride Symptum bikes at events and hand out advertising products <br />
  15. 15. Operations<br />Local bike shops will be utilized to sell our products. Symptum has no physical retail stores. <br />Bikes designed at Symptum Cycles, sent to manufacturing plant for assembly, sent back to Symptum Cycles once completed <br />Parts to be assembled onto frames will be sent to Symptum<br />Once a distributor purchases a bike Symptum will send them the frame and parts to be assemble on the bike and then sell the bike to the end user <br />
  16. 16. Goals and Objectives<br />Year 1<br />First 6 months design gearbox<br />Acquire patents<br />Second 6 months market testing phase<br />Year 2<br />Introduction in to market<br />350 bikes, $900,000 sales <br />Year 5<br />$3,000,000 in sales<br />International Sales & 1% of market<br />Acquisition/ Buy out investors<br />
  17. 17. Risks and Rewards<br />Design might not meet expectations<br />Market Acceptance of the internal gearbox<br />Valuation- Year 5 is $923,404.36 at a 30% discount rate <br />
  18. 18. Financial Projections<br />Year 1 Year 3 Year 5<br />Net Income 102,537 337,662 532,527<br />Cash 89,100 382119 1,203,386<br />Revenue 190,795 1,844,780 2,877,857<br /><ul><li>Net Profit Margin-19%</li></li></ul><li>Breakeven<br />
  19. 19. Financing<br />Required Capital <br />October- $97,500 <br />February- $150,000<br />August - $100,000<br />Willing to give up 39% of equity<br />
  20. 20. Exit Strategy <br />Year 5 acquisition – <br />First Investor- $1,550,000<br />Second Investor- $400,000<br />Buy out investors at 5x their initial investment<br />First Investor- $750,000- Year 5<br />Second Investor- $500,000- Year 6<br />
  21. 21. Questions?<br />