Final report - Osvaldas Banys & Petru Simion

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Osvaldas Banys, Petru Simion
ET – Sem. III, International Class
Management, Poul Lundberg Andreasen
Deadline: 8th of December, 2014
Bike’nCharge – UTASBERRY

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Bike’nCharge – UTASBERRY
___________________
Petru Simion
Date: 08.12.204
___________________
Osvaldas Banys
Solemn Declaration
I solemnly declare that I have personally and independently created this report. I have clearly marked
any and all quotes in the text as such, and neither the report nor any essential parts of it are at present
or have previously been submitted for any other examination.
I am aware that any violation of the rules on academic integrity shall be treated in accordance with
Article 19 of the Danish Order No 1016 of 24 August 2010 on Tests and Examinations in vocational
educations.

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Table of Contents
1. Synopsis..............................................................................................................................................4
2. Introduction........................................................................................................................................6
3. General company description ............................................................................................................7
4. Products..............................................................................................................................................9
5. Industry overview.............................................................................................................................13
5.1. Prediction model..................................................................................................................14
5.2. Survey...................................................................................................................................15
6. Competition......................................................................................................................................17
7. Marketing plan .................................................................................................................................18
7.1. Promotional strategy ...........................................................................................................18
7.2. Pricing...................................................................................................................................19
7.3. Target market.......................................................................................................................20
7.4. SWOT analysis......................................................................................................................22
7.5. FAB analysis..........................................................................................................................23
7.6. PEST analysis ........................................................................................................................24
8. Financial plan....................................................................................................................................28
9. Conclusion ........................................................................................................................................32
10. Figures, graphs and tables..............................................................................................................33
11. Bibliography....................................................................................................................................34
12. Appendices – Survey & Budgets.....................................................................................................35

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1. Synopsis
We will demonstrate our knowledge and understanding of management, combined with electronics
and microprocessors principles required for this project, by undertaking the design process for a Bicycle
Dynamo – USB charger for smartphones.
The purpose of a bicycle dynamo is to power the bicycle’s lights. Through this concept the dynamo
maintains its main role, but at the same time provides you with the functionality of being able to charge
your phone using the power generated from spinning the wheels. In order to make it more customer-
friendly, the kit also contains a small LCD, which provides the user with data regarding:
 battery level
 speed
 outdoor temperature
 headlights status (ON/OFF)
Taking in consideration that there are more than 650.000 bikes, only in Copenhagen, you can get an idea
of the significant growth in the cycling industry; therefore the idea of improving and adding new
functionalities to this vehicle. Such devices have been on the market for a few years now and there are
several models which can be acquired for a price varying from 350 up to 1200 DKK, depending on the
specifications of the device.
We will demonstrate the improvements which can be made on such a device and their impact in
offering a more convenient product for the daily user. The cables and connectors will be, as much as
possible, integrated in the bicycle’s structure, without any significant exposure to the atmospheric
circumstances. Moreover our LCD is easily detachable and can be worn as a regular watch, when not
used on the bicycle.

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We decided to startup the business in Denmark, as a partnership business, meaning that it will be
registered as stated in the Danish laws. The online shop will be created as well, and we will ship
products all around the world. The project will also describe all the P&P options and how we will
advertise our product. In order to face our competitors, we will be offering a lower price product with a
good quality and functionality.
Due to a rapid development of digital techniques in a wide range of fields, we believe that the
implementation of this product will provide us with a positive feedback and a financial gain. Both, within
a relatively short period of time.

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2. Introduction
This report is brought to you as a collaboration between Osvaldas Banys, Petru Simion and it primarily
addresses people who are interested in getting a better understanding of how to start a business, plan it
and eventually make a profit out of it. This includes students, teachers with a specialization or interest
within this matter and not only.
The primary purpose of this assignment was to:
 Start our own company which manufactures a certain range of products
 Work with basic principles of management
 Put in practice the knowledge gained during class assignments
 Learn more about marketing strategy and its importance
 Study the current industry and anticipate what will come up next
 Write a firm budget to cover all of the overall expenses
 Get acquainted with structuring such a project
This report represents a complex 3rd
Semester assignment and by finalizing it we hope to obtain a well
written paper, which fulfils the specified requirements, within the given time frame of approximately 2
months. At the same time it stands as a helpful tool in getting familiar with the upcoming internship,
which may involve a touch of management knowledge, and with the procedure of our very last exam, as
well.

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3. General company description
About the company
Under the name of Bike ‘n Charge, our company has its headquarter based in Copenhagen, Denmark.
The company manufactures, assembles and sells a touchless bicycle dynamo that is capable of charging
a rechargeable battery. In addition to that we can offer more products to our customers: bicycle
computer, spare components and etc.
Bike ‘n Charge manufactures its devices at KEA. At this institution we use qualitative compatible and
productive equipment, provided to us by well-known suppliers. Therefore we can offer our customers a
much better quality at a low price.
Ownership
Petru Simion and Osvaldas Banys have registered the company – Bike ‘n Charge, in Denmark as a
partnership business for operating the business, according to the applicable laws. The allocation of
profits and losses, management and operation of the partnership is set forth in a written "partnership
agreement", signed by both partners. All of the earnings within the partnership are allocated and taxed
directly to the individual partners, this being one of the reasons why this form of business was chosen,
over others, such as a corporation.
We agreed to have an ownership as a rule of 50/50, without any requirements regarding a minimum
capital of the business.
Who are our customers?
The product we offer is intended for active and new technology friendly people. The number of
smartphone users is increasing year by year. At the same time, these devices are always improving,
being able to offer more features with more applications, and therefore making the consumer's life
much easier. However, as the usage of your device increases, so does the power consumption, resulting
in a short battery span, which is in fact the biggest disadvantage of owning a smartphone.

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Why we started?
We decided to start this business in order to provide a solution to the matter just brought into question:
smartphones with short battery life. The current market already offers similar devices, like power banks,
however it was not what we wanted. A power bank has to be charged the same as a phone.
Inspired by the Danish culture, which involves riding a bike to work or school every day, we thought, to
give the bicycles an additional feature, by using the energy that can be created from the spinning wheels
to charge a power bank. We tried to look for existing products similar to what we wanted; however, we
did not find any available ones for a reasonable price. In consequence we decided to manufacture
ourselves a product and now we want to offer it to others!
Mission
What we do, is to provide an easy solution for a universal problem, by involving and at the same time
promoting the usage of green energy. The product can reach a very wide area of potential clientele,
being able to satisfy the market’s request. The less obvious purpose of our company is to also make
people more aware about their environmental contribution. It would help them see how easily they can
contribute and how daily activities can be even more benefic.
Vision
At the same time, we aim to become a well known provider, with a large and loyal number of
customers, within less than 5 years from the launch of the very first product. Building a strong
reputation of a reliable company, will be the goal we reach for. In the beginning we start with only 2
packages, but in the future we see ourselves developing other related devices that could facilitate our
costumer’s needs. At that point we would already have a strong network within the market, making it
easier to present future products.

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4. Products
UTASBERY - What is it?
UTASBERY is a powerful touchless magnetic electrical generator that generates energy from a spinning
wheel of the bicycle and charges a battery. Rechargeable battery, which is charged by electrical
generator, provides 5V at 500mA power. That means, every device that can be charged with a USB
connection can be charged from UTASBERY. All the components are water resistance and the total
weight of BASIC kit is 500g.
Why use UTASBERY?
UTASBERY can be used as a power bank for your mobile device whenever you need it. You do not need
to think about charging it, it charges while cycling. At the same time, UTASBERY can be used to power up
a bicycle lights at night. In addition to that, we offer a small bicycle computer that keeps track of all
important information while cycling.
How to set it up?
UTASBERY can be used on any type and size of the bicycle.
UTASBERY is easy to set up and it can be done just in 5 minutes and does not require any special tools.
Two magnets are attached to the front wheel with 2 screws, each. The generator has to be attached to
the fork, using 2 screws. When the wheel spins, the magnets have to be maximum 4mm from the
generator and they should not make contact. The battery is attached on a handlebar on the special
battery holder that also has contacts to charge a battery. A mobile phone holder is attached on a
handlebar and can be used for any mobile phone.

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What is in the package?
Our company’s system is made up of component products intended for both combined and individual
use. Therefore spare components can be provided at the customer’s request. At the moment we offer
two different kits: Basic and Premium. Customers can choose a kit depending on their needs and price
they want to pay. Both packages include:
 high speed overload protection
 simple installation instructions
 light weight device
 waterproof safety
Basic Kit
The basic kit includes all the parts that are required for a
proper and operation of the core device:
 2 x magnets
 1 x generator (cable for charger)
 1 x lithium ion battery
 1 x battery holder
 1 x phone holder
Premium Kit
In addition to the Basic package we offer an extra battery
which will increase the charging performance and a
bicycle computer to help you monitor the status of
different features:
 Battery level
 Speed
 Distance
 Temperature
 Lights status

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Performances
The lithium Ion Battery runs at 3.7V 2200mAh, with a charging time that can vary depending on the
bicycle speed (shown in a table below). The battery will provide an output of 5V and 500mA. The same
figures apply for a PC, USB 2.0 connection, meaning that the battery will be able to charge at the same
speed as most computers.
The table below shows the dependency between the charging and the cycling speed
Table 1: battery charging time
Once the device is fully charged, the power coming from the wheel will not be lost, but used to charge
the battery mounted on the biked. A fully charged battery will be able to provide enough power to
charge 70% of an iPhone’s battery.

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Principles behind the design
The process starts with the usage of 2 magnets attached on the front wheel. On the fork blade we have
a stationary magnet with a coil of wires. Each time the wheel completes a spin, the 2 magnets will pass
the stationary one, creating a changing magnetic field, which generates an electrical output.
From here the power is transferred in two different directions. Wires will conduct the power directly to
the lights and to the lithium ion battery. The output of the battery will be able to supply enough volts
and amperes to power an electronic device, via an USB connector.
The output will of course depend on the speed of movement and the variations can be noticed both in
voltage and current, but at all times it will be an Alternative Current (AC), above 6V. The voltage
regulator, plus a diode bridge and 3 capacitors do the AC to DC conversion, so that the power can be
used for your electronic device.
The VK2200 LCD offers relevant data about the
current state and is controlled with an
ATmega328P, running at a frequency of 16MHz.
Figure 1: Bicycle Computer

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5. Industry overview
The success of our product depends on the development of two worldwide major industries:
 smartphones – estimated value of $300 billion
 bicycles – estimated value of $60 billion
The increase of bike users is due to its characteristic of recreational or fitness activity and other factors,
such as the growing traffic congestions and the rising fuel prices. This results in a growing demand of
low-cost transportation in developing countries, which help this industry to thrive.
Although the product will be available to all european countries, we want to focus on the countries
where cycling is most popular. This includes the scandinavian countries, plus other countries with a
strong culture regarding cycling, such as: Netherlands, Germany, Switzerland and Spain.
At the same time there are other countries outside Europe, where this culture is under development.
Therefore, expanding our horizons and including countries as Japan, China or even South Korea can be a
good market to explore. Percentages of people using bikes in these countries grow year after year. Just a
quick look at the statistics unveils the potential behind this future markets.
Table 2: number of bicycles outside Europe

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5.1. Prediction model
The current figures are again, on our side. The increase in smartphones usage is fairly obvious for every
average person and we can all see it around us. At the same time, the number of bikes is going up as
well, but maybe not as many people manage to notice this change.
Here we can see
how the number
of smartphones
users has
increased
annually, since
2007 till 2013.
Graph 1: smartphones users
Although it doesn’t have the same
amplitude or stability, the number of
bikes has been and is increasing. The
table on the left shows the development
of bicycles production from 1950 till
2010.
Graph 2: number of bicycles

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5.2. Survey
The survey was performed on 24 individuals with 8 of them being women. We advertised our survey on
social networks (Facebook) and although the contributors are anonymous we tend to believe that most
of them have their residence in Denmark. This process provided us with plenty of relevant data, directly
from the source:
 80% of the people involved were willing to buy this product, if it would be available, but they
wished to pay a price within the 300 – 500 DKK range.
 The top 2 most important features they want to see in our product, are price and quality (as
expected)
Graph 3: survey. Most important features in the product
The following diagram describes the likeliness of people recommending our product to other
acquaintances, after making use of it. The answers are based on a scale from 1 to 10 (1 – not likely at all,
10 – extremely likely).
Graph 4: survey. Would
you recommend our
product?

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Since the group we target is represented by bicyclists, we wanted to know how many of the survey
contributors use a bike as a way of getting from one destination to another. Surprisingly, only 36.5% of
them use a bike as their main vehicle of transportation, a figure which is equal to the percentage of
people who prefer the public transportation.
Graph 5: survey. What means of transportation do you mostly use?
Judging by this chart, and with the risk of sounding a bit too optimistic, we could say that our product
can stir up the interest of persons who are not involved in the biking activity.

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6. Competition
Although it sounds like a fairly new technology, this range of devices has been on the market for
approximately 2 years now. Not a very long time, but still it was enough for some brands to make a
name for themselves. Taking in consideration the performance factor, our biggest competitor would be
“Tout Terrain The Plug III”, which offers a better design, but at a much higher price: 1200 DKK. Judging
by our surveys, most of the potential customers are not willing to pay more than 300 – 500 DKK for our
device or similar ones, therefore we would be able to get ahead of our primary rival, so to speak.
There are other available devices as well, under different names but offering more or less the same
services:
 “Busch and Muller eWerk”
 “Pedal Power Plus V4i Cable and Battery”
 “Zzing Battery Kit”
 “BioLogic ReeCharge”
 “LightCharge USB Charger for Dynamo ”
From all of the above, only the last 2 are able to
offer their device at a price of less than 600 DKK,
but they do not excel on the features side.
The “BioLogic ReeCharge”, for example, is not
detachable, making it very vulnerable to theft and
the “LightCharge USB Charger for Dynamo” does
not include a battery and so it is not possible to
charge a device post-ride.

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7. Marketing plan
7.1. Promotional strategy
The promotion strategy will be based on two different branches:
 Social networks, this includes Facebook and Twitter
 Giveaways
On the official Bike ‘n Charge Facebook group, people will be informed about the latest news in the
company: new products, special offers, season sales and giveaways. During the winter holiday season,
we will offer special discounts to all of our customers. Special T-Shirts with the Bike ‘n Charge logo will
be given away for the first 100 customers.
We will also approach the professional market by presenting our products to bike producers and service
shops. By going directly to companies which manufacture bicycles we can establish a more stable
agreement, rather than selling it online, to one customer at a time. Also, by contacting local shops
specialized in offering services for cyclists, will put us in the position of having more contact with our
possible customers.

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7.2. Pricing
This represents a key factor for getting the attention and the interest of the costumers; therefore we
need to offer a fair price for our products. For producing a basic kit, the costs rise up to an amount of
200 DKK, whereas the premium kit has a production cost of 300 DKK.
These both are satisfactorily figures, because according to our surveys, people are willing to spend 300
up to 500 DKK for such a device. Therefore, the price for buying a basic kit will be 400 DKK and the
premium one will be available at a price of 600 DKK. In this way, we will make a profit of 200 – 300 DKK
per every kit that we sell, which means a mark of 100%. In addition, every order that includes more than
3 kits will be offered a spare component, which will be chosen at the customer’s will.
Buying the components separately for putting together a kit, would be more expensive, of course. Still,
as stated before, we will provide individual parts, at the following prices:
 Bicycle computer – 150 DKK
 Battery – 130 DKK
 Magnet – 110 DKK
 Generator – 100 DKK
 Holder – 80 DKK

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7.3. Target market
As the name suggests “Bike ‘n Charge” focuses on a specific target market: cyclists. The term describes a
very wide area, involving significant numbers which can go up to the order of billions. Out of a 7 billion
population, the number of worldwide cyclists is estimated at approximately 2 billion. The figure includes
not only commuters but tourists, as well.
Graph 6: cycling as main mode of transport (% of population) by countries
Cyclists who use a bike on a daily basis for getting to school/work or maybe just around the city, can
benefit from our product. The reason for this is that they do not need to worry about always
remembering to plug their smartphones to a power outlet, every night before going to bed. Or maybe at
the end of the day the smartphone's battery is dead and its use is urgently necessary. At this point you
know that you have a fully charged battery, which was the result of a morning bike ride.
People who like to spend their free time in an active way, may choose to go for a bike tour. In that case,
most of the times they will need to use a phone as a GPS. We all know how fast it discharges then. The
use of our product would help them forget about the risk of losing their navigation system in the middle
of the tour. Sometimes a tour can involve several days, turning into a road trip. Therefore, it is very easy
to recharge it, just by taking off the battery from the bike.

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The age group of the target market is 14 to 50 years old, so it comes close to no limitations. However, it
can be split into 3 different groups, because there are different needs to ride a bike, depending on age.
Most likely people in the age group of 14 to 18 years,
ride a bike to school or for fun, maybe both. This
means, that we have to offer them a product, which
looks entertaining and some additional features like
an LCD display, to make it more appealing.
Figure 2: children cycling to school poster (graph)
The second age group is 18 to 30 years old which more or less represents adults, mature people. This
includes students and the working class as well. These people go to work or school on a daily basis and
need the device to run at a high performance. Therefore the basic package, with an addition of a
secondary battery could suit them best.
Last but not least we have the age group going from 30 and up to 50 years old, representing the middle
aged class. A “fancy” product might not be necessary, but quality and high performance are still
necessary. Therefore, the basic package could be more than enough, but at the same time, depending
on the personal activities and lifestyle, the premium one would be more suitable.

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7.4. SWOT analysis
Strengths Weaknesses
 Cheaper
 Fast charging time
 Touchless dynamo
 Additional features
 Easy to set up
 Production in Denmark
 Slightly heavier
 Small production
 Insignificant chance of theft
 Lack of reputation (we haven’t established
ourselves as a reputable provider)
Opportunities Threats
 Government programs promoting eco-
friendly solutions
 Growing consumer market in the
smartphone & biking industry
 Almost no limitations to the age
coefficient
 Electrical bicycles
 Weather conditions preventing people from
cycling
 Similar products available on the market
Table 3: SWOT analysis
The SWOT analysis was made to compare our product with already existing products in the market, also
to see the opportunities and threats that we might face in the future.
At the moment, our product has more strengths than weaknesses compared with the products that are
already in the market. During time we are sure that we will be able to deal and diminish most of them, if
not all.
Our design can offer faster charging time than others; however that adds weight on the bicycle.
UTASBERY uses a touchless dynamo system to generate energy that means no friction. Moreover,
UTASBERY is manufactured in Denmark, Copenhagen, one of the biggest cyclist cities.

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In the beginning we will have to deal with the other products that have already seized the market. With
good advertising and quality products we will be able to change this, making a name for ourselves and
winning the loyalty of the customers. The long distance threats will be the increase in sales of electrical
bicycles. Using an electric engine, it will also be able to offer power that can be used to charge a device.
7.5. FAB analysis
Features Advantages Benefits
Charges a battery/phone
while cycling
Easy to mount
High performance
No need for external
power supply
Energy saver
Long term investment
No worries if your phone’s battery runs
out of power.
Environmentally friendly device
Personal contribution to the
environment
Table 4: FAB analysis

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7.6. PEST analysis
In collaboration with the SWOT analysis, we also used another analytical business tool to help us
determine our current and future situation, which is the PEST analysis. To get a better understanding of
the related internal and external factors that will affect the performance and activities of our business.
This includes government regulations and legal factors, but the main issue addresses to political
stability, tax guidelines and trade regulations. At the same time the current situation shows that
governments support the idea of cycling by putting together bike sharing programs, due to its
promotion of increased mobility and safer streets for everyone, from the transportation point of view.
Today more than 500 cities in 49
countries host advanced bike-sharing
programs, with a combined fleet of over
500.000 bicycles. Copenhagen’s famed
Bycyklen – City Bike program, was an
inspiration to many cities and countries,
after operating for 17 years with more
than 1.000 bicycles.
Graph 7: countries with bike sharing programs
This resulted in a wide spread of the programs:
 Spain – 132
 Italy – 104
 France – 37
 Germany – 43

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We need to take in consideration and examine the economic issues that are bound to have an impact on
the company, such as international economic growth or changes in interest rates. We want to make it
possible for our customers to be able to make the payments in installments if necessary, with an
additional interest. Therefore the development of interest rates and inflation represents a concern,
which we need to analyze.
Graph 8: market forecast of one ad five year interest rates
Regarding this, the future doesn’t look too bright, with an increase in interests, but of course it should
also be noted that economists and markets have a woeful record of predicting rates. It was only several
years into the crisis that both sides stopped predicting rate rises were around the corner.

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Depending on the region and country, the socio-economic environment of the market can vary.
Therefore our business requires an analysis via elements like cultural limitations, lifestyle attitude or
population growth rate. By using these factors, we can understand how consumer needs are shaped and
what brings them to the market for a purchase.
For overcoming these obstacles we will need to provide top-level support, assuring the customers of a
minimal risk with management and administrative support. A clear and well defined path will help in
breaking through conservative cultures, which by nature, are not innovative.
Estimates of population evolution in
different continents, from 1950 up to
2050, shows a continuous growth in
the world wide population, according
to the United Nations (UN).
Graph 9: estimates of population evolution in different continents. (The vertical axis is logarithmic and is in millions of
people)

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In this case the technological factor has a positive impact on the introduction of our product into the
marketplace. The advancements and the lifecycle of technologies will offer us the necessary
sustainability and at the same time, further developments could require our support. With new
technology coming in, the customers may want certain additional features to an already purchased
product, turning to us for support within the matter.
The use of internet will also facilitate our marketing strategy, making it easier for potential customers to
find and order our products, without any considerable efforts.
Figure 3: internet users by country
On the construction side, we have the automated processes which will increase our production rates
and at the same time, lower the costs. Impact of emerging technologies, could also act as a downside.
The development of electric bicycles might be a big hit for our product, and not in a good way. Such
means of transportation, could easily add the functionality of powering your phone from an already
existing battery, therefore excluding the necessity of our device.

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8. Financial plan
The purpose of making this financial plan was to reflect the estimated costs and revenue structure for
the products that we sell, within our company. It will help us provide a reasonable assurance that there
will be sufficient financial resources available for us to implement the product into the market and
complete the project as planned. The financial plan should clearly explain the assumptions about both
costs and revenues.
Opening day balance sheet
The company will start operating from the 1st
of January, 2015 and the following table shows where we
will stand at that time. Our personal investment will be of 50.000 DKK (25.000 / partner) and besides
that we will also be in possession of furniture, PCs and necessary equipped, with a combined value of
11.000 DKK. For the first 2 months of the year, we were able to get a credit from our suppliers.
Therefore, we will start paying our
suppliers from the 1st
of March, and
not from the beginning of the year.
In the end we will have a total liability
and net worth value of 61.000 DKK.
Graph 10: opening day balance sheet

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Break – Even analysis
After the starting point, we need to know how much we need to sell in order to keep our business
afloat. The break – even analysis helps us determine the point at which the incomes received equals the
costs associated with receiving the income. Using the same analysis we can calculate a margin of safety,
referring to the incomes that exceed the break – even point.
The following chart, which applies for a single month, shows that our break – even point is situated at
10.000 DKK and 20 units. Since we want to sell 2 kits, the basic one for 400 DKK and the premium for
600 DKK, we made an average per unit. This means the price per unit, in the table below, is of 500 DKK.
Graph 11: break – even analysis
We expect a higher rate in selling the basic kit, therefore a combination of 11 basic kits, plus 9
premiums, will result in an income of 9.800 DKK. This is the minimum income we need, for keeping the
business alive.

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12 months profit and loss projection
The 12 months profit and loss projection table is attached in appendices (Graph 14). It shows the
forecast for sales, variable costs, gross profit, fixed costs, taxes to be paid and total profit for each
month and total of the year.
We are expecting to sell more of the Basic Kit units than Premium Kits for every month during a year.
The selling prices per unit are as following; 400DKK (Basic Kit) and 600DKK (Premium Kit). The first
month estimated sale of the Basic Kit is 20 units and 10 Premium Kit units, which give a 57.1% of total
sales for Basic Kit and 42.9% for Premium Kit of all incoming sales. In March, we are expecting to sell 10
units of each Kit more than in the first two months and that brings 50% of total sales for both kits.
During the year, every month we expect to sell 10 to 20 units more of each kit, since our market target
group is bicycle users we predict that in the summer months and September, we are going to sell 140
units of Basic Kit and 120 units of Premium Kit, which gives 56.000 and 72.000DKK (43.8% and 56.2% of
sales). The markup of both kits is 100% and we can calculate that the gross profit of each month is half
of the sales.
The fixed costs consist of rent price (utilities are included) and advertising. Advertising will vary from
month to month, but we are willing to spend an average of 1% of sales in the first year.
If we will be able to achieve the set objectives, our company will start making a profit from the first
month of the startup. The total profit will increase the most in September, up to 38.000DKK. The total
profit after taxes in 12 months will be 226.368DKK.
Cash Flow Projection
The cash flow projection table is attached to the appendices (Graph 13). The 12 months cash flow
projection shows how much money we will have coming in and out of the business each month during
the year and a total, at the end of the year.
We have liabilities to suppliers of 14.000DKK which is what we need to cover variable costs for the first
two months. We will start paying to the suppliers from March for January, in April for February and so
on.

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In the cash paid out category we added Owners’ withdrawal which will be 20.000DKK each month.
In the table, we can see the total cash in hand in the beginning of the month, in the end of the month
and total cash position in the end of year. We will finish the year with a debt of 103.000DKK to suppliers
for November and December; this amount will need to be paid in the first two months of the next year.
Final balance budget
At the end of the year we end up with a total of 273.368 DKK, representing our cash money. During the
year some of our assets, such as furniture and PCs, depreciated. The PCs depreciation rate is of 10% per
year, resulting in 1000 DKK, in our case. The furniture depreciates at a higher rate, leading us to 200 DKK
per year.
Graph 12: final balance budget
Assets:
237,900
237,900
9800
9800
247,700
Liabilities & Equity
103,000
103,000
103,000
47,000
226,368
Sum 273,368
144,700
Total liabilities and equity 247,700
Equity by end of year
Ultimo
Primo
Liabilities grand total
Short term liabilities
Cash in hand
Bank
Short term assets
Grand total assets
Long term assets
Final balance budget, DEC 31, 2015
Furniture & PCs
Suppliers

32
9. Conclusion
Through this study we observed a market which provides us with the possibility of a successful
approach, due to a continuous growth in both the bicycle and smartphones industry. Our analysis
reveals the opportunity of surpassing our competitors in various ways, the most important factor being
the price. Its cost is insignificant compared to other means of transportation, but it manages to provide
many opportunities for the users.
At the moment we have the necessary technology and technical skills for manufacturing and offering a
good quality for our products, which is a crucial factor in attracting the clientele. At the same time, our
financial plan will stand as a reminder of our short and long term objectives, resulting in an assurance of
meeting our business goals.
On the long term, 3 – 5 years from now, we anticipate an increase of approximately 50% in our profit.
Also, the future of this industry and of the environment as well, will be positively impacted by the usage
of our device.

33
10. Figures, graphs and tables
Figure 1: Bicycle Computer……………12
Figure 2: children cycling to school poster (graph) ……………21
Figure 3: internet users by country……………27
Graph 1: smartphones users……………14
Graph 2: number of bicycles……………14
Graph 3: survey. Most important features in the product……………15
Graph 4: survey. Would you recommend our product……………15
Graph 5: survey. What means of transportation do you mostly use? ……………16
Graph 6: cycling as main mode of transport (% of population) by countries……………20
Graph 7: countries with bike sharing programs……………24
Graph 8: market forecast of one ad five year interest rates……………25
Graph 9: estimates of population evolution in different continents. (The vertical axis is logarithmic and is
in millions of people) ……………26
Graph 10: opening day balance sheet……………28
Graph 11: break – even analysis……………29
Graph 12: final balance budget……………31
Graph 13: Cash flow……………………..38
Graph 14: Profit & loss………………….39
Table 1: battery charging time……………11
Table 2: number of bicycles outside Europe……………13
Table 3: SWOT analysis……………22
Table 4: FAB analysis……………23

34
11. Bibliography
http://www.globalsherpa.org/amsterdam-bike-riding-capital-world
http://www.earth-policy.org/plan_b_updates/2013/update112
http://www.worldometers.info/bicycles/
http://blogs.wsj.com/speakeasy/2012/05/21/why-asia-is-a-hub-for-bikes/
http://pestleanalysis.com/what-is-pest-analysis/
http://cyclingabout.com/list-of-hub-dynamo-power-supplies-for-usb-devices/
http://supernova-lights.com/en/products/the_plug.html
http://www.earth-policy.org/indicators/C48/bicycles_2005

35
12. Appendices – Survey & Budgets
Dynamo-Powered USB Charger for Smartphones
Imagine you have a device that could charge your phone while cycling to work, school, or maybe just
for fun. It would be able to power your device using only the energy generated by pedaling your bike.
What is your gender?*
Male
Female
What is your age?*
Under 18
18 - 20
20 - 23
23 - 25
25 – 30
Over 30
Do you own a bicycle? *
Yes
No
What’s your first reaction to this new product idea? *
Very positive
Somewhat positive
Neutral
Somewhat negative
Very negative

36
How often, if ever, do you currently use other, similar products? *
Extremely often
Very often
Moderately often
Slightly often
Not often at all
How useful would this product be to you? *
Extremely useful
Very useful
Moderately useful
Slightly useful
Not useful at all
If this product were available today, how likely would you be to buy this product?*
Extremely likely
Very likely
Moderately likely
Slightly likely
Not likely at all
How much would you be willing to pay for buying this product?*
Less than 200 DKK
200 - 300 DKK
500 - 600 DKK
More than 700 DKK
How likely is it that you would recommend our new product to a friend or colleague?*
1 2 3 4 5 6 7 8 9 10
Not at all likely Extremely likely

37
When you consider new products in this area, what are the top 2 things you generally consider?*
Price
Performance
Innovation
Quality
Endurance
What means of transportation do you mostly use?*
Public Transportation
Bike
Personal car
How often do you go on a bike road trip? (More than a day)*
2 - 3 times per month
Every month
Every 2 months
Every half a year
Once a year
Very rare
Never

38
Graph 13: cash flow

39
Twelve-month profit and loss projection Bike 'n Charge Fiscal Year Begins Jan-15
Jan-15
%
B/A
Feb-15
%
Mar-15
%
Apr-15
%
May-15
%
Jun-15
%
Jul-15
%
Aug-15
%
Sep-15
%
Oct-15
%
Nov-15
%
Dec-15
%
YEARLY
%
Revenue (Sales)
Basic Kit 8,000 57.1 8,000 57.1 12,000 50.0 16,000 47.1 20,000 45.5 28,000 40.0 32,000 40.0 44,000 44.9 56,000 43.8 48,000 44.4 44,000 44.9 48,000 44.4 364,000 44.4
Premium Kit 6,000 42.9 6,000 42.9 12,000 50.0 18,000 52.9 24,000 54.5 42,000 60.0 48,000 60.0 54,000 55.1 72,000 56.3 60,000 55.6 54,000 55.1 60,000 55.6 456,000 55.6
Total Revenue (Sales) 14,000 100.0 14,000 100.0 24,000 100.0 34,000 100.0 44,000 100.0 70,000 100.0 80,000 100.0 98,000 100.0 128,000 100.0 108,000 100.0 98,000 100.0 108,000 100.0 820,000 100.0
Variable Costs
Basic Kit 4,000 50.0 4,000 50.0 6,000 50.0 8,000 50.0 10,000 50.0 14,000 50.0 16,000 50.0 22,000 50.0 28,000 50.0 24,000 50.0 22,000 50.0 24,000 50.0 182,000 50.0
Premium Kit 3,000 50.0 3,000 50.0 6,000 50.0 9,000 50.0 12,000 50.0 21,000 50.0 24,000 50.0 27,000 50.0 36,000 50.0 30,000 50.0 27,000 50.0 30,000 50.0 228,000 50.0
Total Variable Costs 7,000 50.0 7,000 50.0 12,000 50.0 17,000 50.0 22,000 50.0 35,000 50.0 40,000 50.0 49,000 50.0 64,000 50.0 54,000 50.0 49,000 50.0 54,000 50.0 410,000 50.0
Gross Profit 7,000 50.0 7,000 50.0 12,000 50.0 17,000 50.0 22,000 50.0 35,000 50.0 40,000 50.0 49,000 50.0 64,000 50.0 54,000 50.0 49,000 50.0 54,000 50.0 410,000 50.0
Fixed Costs
Advertising 2,200 15.7 500 3.6 200 0.8 200 0.6 200 0.5 500 0.7 500 0.6 700 0.7 1,000 0.8 200 0.2 100 0.1 800 0.7 7,100 0.9
Rent 4,000 28.6 4,000 28.6 4,000 16.7 4,000 11.8 4,000 9.1 4,000 5.7 4,000 5.0 4,000 4.1 4,000 3.1 4,000 3.7 4,000 4.1 4,000 3.7 48,000 5.9
Depreciation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1,200 1.1 1,200 0.1
Total Fixed Costs 6,200 44.3 4,500 32.1 4,200 17.5 4,200 12.4 4,200 9.5 4,500 6.4 4,500 5.6 4,700 4.8 5,000 3.9 4,200 3.9 4,100 4.2 6,000 5.6 56,300 6.9
Net Profit 800 5.7 2,500 17.9 7,800 32.5 12,800 37.6 17,800 40.5 30,500 43.6 35,500 44.4 44,300 45.2 59,000 46.1 49,800 46.1 44,900 45.8 48,000 44.4 353,700 43.1
Taxes 36% 288 2.1 900 6.4 2,808 11.7 4,608 13.6 6,408 14.6 10,980 15.7 12,780 16.0 15,948 16.3 21,240 16.6 17,928 16.6 16,164 16.5 17,280 16.0 127,332 15.5
TOTAL 512 3.7 1,600 11.4 4,992 20.8 8,192 24.1 11,392 25.9 19,520 27.9 22,720 28.4 28,352 28.9 37,760 29.5 31,872 29.5 28,736 29.3 30,720 28.4 226,368 27.6
Graph 14: profit and loss

Final report - Osvaldas Banys & Petru Simion

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