1. BUSINESS PLAN Summary. EARNING PROYECTIONS
The FacyLift, the Instant Face-Lifter by Rhinus Co.
Number of Potential Purchasers x 84,000.000
% of capturable market share x 2% (“only 2 out of 100 Baby Boomers”)
Absolute dollar amount of each sale x $750
Percentage margin of net profit x 85%_______________
Total Potential Profits= $1.07 billion= A Unicorn! (As per David Rose, The
StartUp Checklist, 2016)
United States of America/Population 318.9 million (2014)
% of US Pop. 45-64 Yrs old: 26.4% (84.2 MM)
Miami/Population 417,650 (2013)…….. 110,260
Los Angeles 3.884 million (2013)…….. 1,025.000 (26.4%)
Chicago 2.719 million (2013)……….718,800
NY 8.406 million (2013) ……. 2,218.000 (26.4%).
Pop. 45-64 yrs 26.4% Total in these 4 cities: 15.4 MM x 26.4%= 4,066,000 Baby Boomers
YEAR I
Yr-I aims conquer 1% of 45-64 in 1 major city: NY (8.4 MM x 26.4%= 2.2 MM). (2.2 MM x 1%)= 22,200
people (Total Annual Prodct. Yr-I)
Manuftg costs ($70/ea) = 22,200 x 70= $1,554.000
Gross Revenues (Sales Cost – Retailer Earnings)= ($1,000/ea – $250 (25% retail revenue)= $750/ea ;
22,200 x 750= $16,650.000 Yr-I
Net Profit Year I: (Target 1% pop in 1 major city NY): (Gross Revenues – Manufacturing Costs):
(16.65 MM – 1.55 MM)= 15.1 MM
Cash Available end of Yr-I: 15.1 MM
After selling “only” 2,100 Facylifts (FL), the entire initial investment is recovered, then it strap boots
itself. (2,100x $750= $1.57MM).
YEAR II
Yr-II aims conquering 1% of 45-64 in 4 major cities MIA, LA, CHI, NY: Sum Total: 15.4 MM people
2. (15.4 MM x 26.4%)= 4.07 MM total number of Baby Boomers in 4 large cities.
4.07MM x 1%= 40,700
Manuftg costs ($70/ea)= 40,700 x 70 = $2.85 MM
Carry On Cash Available from Yr.-I to Yr-II: (15.1 MM -2.85 MM = $12.25 MM “Extras”)
Gross Revenues ($1,000/ea – $250 (25% retail revenue)= $750/ea ; 40,700 x 750= $30,500.000
Net Profit Year II: 1% pop in 4 major cities= $30.5 MM
After selling “only” 3,800 FL, the entire initial investment is recovered, then it strap boots itself.
(3,800x$750= $2.85 MM).
Total cash available at end of Yr-II: 12.25 MM (from Yr-I) + 30.5 MM (Yr-II)= 42.75 MM Sum Total
YEAR III
Yr-III aims conquering 1% of 45-64 in 4 major cities MIA, LA, CHI, NY: Sum Total: 15.4 MM people
(15.4 MM x 26.4%)= 4.07 MM total number of Baby Boomers in 4 large cities.
4.07MM x 1%= 40,700
Manuftg costs ($70/ea)= 40,700 x 70 = $2.85 MM
Gross Revenues ($1,000/ea – $250 (25% retail revenue)= $750/ea ; 40,700 x 750= $30,500.000
Net Profit Year III: 1% pop in 4 major cities= ($30.5 MM - $2.85)= $27.65 MM
After selling “only” 3,800 FL, the entire initial investment is recovered, then it strap boots itself.
(3,800x$750= $2.85 MM).
Total cash available at end of Yr-III: 12.25 MM + 30.5 MM (Yr-II) + 27.6 MM (Yr-III)= $70.4 MM Sum Total
YEAR IV
Yr-IV aims conquering 1% of 45-64 US pop : (319 MM x 26.4%)= 84.2MM; 84.2 MM x 1%= 842,000
Manuftg costs ($70/ea)= 842,000 x 70 = $59 MM (I have $70.4 MM) >>> $11.4 MM Extra cash
Gross Revenues ($1,000/ea – $250 (25% retail revenue)= $750/ea ; 842,000 x 750= $631,500.000
Net Profit Year IV: 1% US pop $631MM
After selling “only” 79,000 FL, the entire initial investment is recovered, then it strap boots itself.
(79,000x$750= $59 MM).
3. Cash Available End Yr-IV: 631 MM Yr-IV + 11.4 Yr-III = $642.4 MM Extras Accumulated Yr-IV
YEAR V
Yr-IV aims conquering 2% of 45-64 US pop : (319 MM x 26.4%)= 84.2MM; 84.2 MM x 2%= 1,684.000
Manuftg costs ($70/ea)= 1,684.000 x 70 = $118 MM (I have $642.4 MM) >>> $524.4 MM Extra cash
Gross Revenues ($1,000/ea – $250 (25% retail revenue)= $750/ea ; 1.684MM x 750= $1.26 b
Net Profit Year IV: 1% US pop $1.26 billion
After selling “only” 158,000 FL, the entire initial investment is recovered, then it strap boots itself.
(79,000x$750= $118 MM).
Cash Available End Yr-V: $524 MM Yr-IV + $1.26 b Yr-V = $1.8 b Extras Accumulated Yr-V