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Spark Life Business Plan


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Spark Life Business Plan

  1. 1. A Digital Safari GreenBizz CompanyChief Executive Officer: Willey RilloChief Financial Officer: Alexandra SangalangVice President of Marketing: Ricardo MartinezMount Diablo High School2450 Grant StreetConcord, CA 94520
  2. 2. Executive “Changing the world, one car at a time. Our company is called SparkLife, Incorporated and is based on creat- ing new ways to power up electronics. We created a better, alternate way to power an electric car called the TurboSpark. The TurboSpark is a power sys- tem that we will implement into a car so that it can be powered completely by electricity. Our product uses energy through capacitors, which are small, metal, and chemical-free plates that are able to be charged with electricity and can be utilized at later times. We created the TurboSpark because the use of hybrid and electric cars is starting to rise and the technology sup- porting those types of cars is being encouraged. Also, we at SparkLife aim to reduce the use of regular car batteries due to their use of dangerous chemi- cals that can potentially hurt the environment through pollution. These chemicals can even harm humans directly, so the TurboSpark was created to completely eliminate these hazards. The TurboSpark, as stated earlier, is a capacitor powered energy source for cars. We shall propose to car companies to create a new model around our TurboSpark system. It’s designed to be placed where car batter- ies would normally be, but would take up more space to match the capacity of a car battery. Capacitors have a quick charging time and will be able to go to 300 miles on one charge under regular use. The TurboSpark will be compatible with nearly any outlet.The price of the TurboSpark will be $7,500 per system, covering the materials and is a current competing price against other electric car companies. The TurboSpark has an opportunity to enter the market with the growing research and use of hybrid and electric cars. Also, regular cars take up limited resources, such as gasoline, that without caution, could be deplet- ed in the near future. Disposal of regular batteries is also a great concern as it creates pollution through toxic chemicals that should not be left unchecked. Greener options for practically any product are also being researched and produced, so creating a non-chemical car power source and reducing use of lead-acid and lithuim-ion car batteries is a perfect opportunity for us.
  3. 3. Summary SparkLife plans to advertise the TurboSpark to the public by first selling to already famous car companies such as Toyota, Honda, General Motors, etc. Selling to other companies will help us avoid the hassle of con- vincing the public that our product is good since they are already trusted companies by the public. Afterwards, we plan to advertise our TurboSpark system through multiple kinds of media such as television, magazines, radio, and online advertisements.Changing the energy, one car at a time.” We at SparkLife hope you will fund our company with a total of $4,000,000 for our operations. With that money, we can drive towards the future of automobiles as well as to a greener future without the use of chemically-filled batteries that could harm the environment and us as well. With the help of you and our CEO Willey Rillo, CFO Alexandra Sangalang, and VP of Marketing Ricardo Martinez, we hope to charge up the future.
  4. 4. CompanyMission Statement/ SparkLife, Incorporated is dedicated to revolutionize the car industry Company History through changing the standards set by companies before us. Founders Willey Rillo, Ricardo Martinez, and Alexandra Sangalang met in the Digital Safari Academy and later again in the University of Phoenix for their physics class, but what they didn’t know was that meeting each other would result in creating a company together in the future. Their physics professor demonstrated a strobe light to the class and taught how a capacitor, an energy storage device much like a battery, but capable of charging and releasing energy much faster, works. History records show that German scientist invented the capacitor in November 1745. Several months later Pieter van Musschenbroek, a Dutch professor at the University of Leyden made a capacitor in the form of the Leyden jar, which was credited as the first capacitor. Fascinated with the origin and the ability of the capacitor, the three believed in the potential of the capacitor to be an alternative power source for an important machine in everyday life: a car. During their free time and on the weekends, they all decided to map out plans for a new way to power cars, and were dedicated to improve all aspects of the project. After graduation, the trio decided to create the company SparkLife Incorporated, believing that large amounts of energy should now come in small packages. Vice President Born in Walnut Creek, California, Ricardo Of Marketing Jose Martinez is the VP Marketing director for SparkLife. He got his degree of marketing at the University Of Phoenix in Arizona. As part of Mount Diablo High School’s Digital Safari Acad- emy, Ricardo has partaken in projects such as cre- ating plans to help third-world countries, as well as creating a spoken word poem with accompa- nying video. He also has experience working in stores, which became helpful in his choosing to pursue a degree in Marketing. His background was hard for him in the past to focus in his life dream to change the world.
  5. 5. ProfileChief Financial Born in the Philippines, Sangalang earned a Bachelor of Science Degree in business administra- tion from the University of Phoenix in Arizona. She is a devout Jehovah’s Witness, with much of work done Officer in the field spreading knowledge of her beliefs. Along with that, she, like her fellow officers, was a part of the Digital Safari Academy, creating a music video for “Tell Me Something Good” by The Rocket Summer. She has also collaborated with groups to create documenta- ries as well. Alexandra Sangalang, chief financial officer, is re- sponsible for ensuring that the flow of money within SparkLife Incorporated is conducive to profitability, and also promotes continuous financial progress. Other areas of responsibility include accounting, tax, budget, treasury, insurance and credit. Chief Executive Born in Vallejo, California, Willey Rillo is the pillar of SparkLife, Incorporated. He was brought up with interest in the creative arts and was mani- fested in his work in the Digital Safari Academy Officer of Mount Diablo High School. There he learned about music, photography, and film production. His projects include creating songs and accom- panying music videos, filming a two-part docu- mentary called “Details in the Fabric” and more. , Through the academy, he was also part of an in- ternship program where he worked in John Muir Health as part of the techincal support team. He later graduated from the University of Phoe- nix in Arizona with a degree of Master of Business Administration and led his fellow officers into creating SparkLife, Incorporated.
  6. 6. Product “Changing the world, one car at a time. Cars are the prominent mode of transportation, and loads of chemi- cals are in each car battery. Problems with car batteries mostly occur during warm weather, and heat causes the chemicals inside to evaporate. Used bat- teries also end up as electronic waste. SparkLife, Incorporated introduces the TurboSpark, an alternative power system for cars that will eliminate the hazards of a regular car battery through the usage of capacitors. The system makes it perfect on the go, and can charge and discharge whereas a regular battery can’t.Features Environmental Benefits Consumer Benefits•Fast Recharge •Chemical-free •No risk of explosions•Can charge/discharge •Reusable •Save time and money from gas•Lasts for a lifetime •Biodegradable •Pay less to use car (electricity)
  7. 7. Changing the energy, one car at a time.” Data Sheet
  8. 8. Market Opportunity Electronics are important everyday factors for each individual, espe-cially battery-powered ones. Globally, the battery market is about $50 billion,and $5.5 billion is set aside to secondary or rechargeable batteries. Technol-ogy continues to grow, driving battery supply and demand to increase aswell. Primary batteries, like alkaline, dominate market because of their higherenergy densities, and will lead the market as years go by. Editor Sam Davis forPower Electronics Technology reported that there is a need for batteries formedical devices because of the growing amount of senior citizens. Researchis being made for looking at alternate sources to power batteries besides thedominant alkaline battery. New chemistries made will make up less than 7%of all secondary batteries. Our product can address these needs by decreas-ing demand for batteries by being a long-lasting product, which couldlower the prices of batteries. With the demand of batteries increasing 2 to 3percent annually, it shows that there’s an opportunity of venturing into thepower source market. Secondary batteries, like the commonly-used lead-acid and lithiumion, are an alternative to primary batteries. But being rechargeable, they weardown over time and lose their energy sufficiency. Rechargeable batterieshelp reduce the number of batteries requiring disposal, yet 80% of themhave nickel cadmium. This component is also harmful for the environment,so they’re no different. Unlike regular and rechargeable batteries that powerup electronics chemically, the TurboSpark consists of millions of conductorplates, and when electrical voltage or a power outlet is applied to the plates,they will become charged, one positively and negatively. When the voltageis removed, the conductor plates remain charged and electricity is pres-ent between the plates naturally. The TurboSpark is acid and chemical free,that even disposing it will not affect the environment in a negative way. TheFreedonia Group Inc., which is an international business research company,predicted a US demand of primary and secondary batteries of $14 billion bythe year 2007, which was met and is expected to continue to rise.
  9. 9. Analysis Furthermore, based on, by 2012, the demand for alka- line will reach a staggering $4 billion alone, and lead-acid will reach an even greater demand of $6 billion. Cars are the prominent mode of transportation, and the hybrid and electric car industry is $29 billion globally, and is expected to rise to almost $65 billion by 2015. A car battery alone has 18 pounds of lead and a pound of sulfuric acid. The TurboSpark would power up a car in a more environmentally friendly way. Without having to deal with the same environmental risks as a regular battery would, the TurboSpark would be a much more efficient use of our resources.The average life of a car battery is three and a half years, and even shorter in warmer climates. Warm weather is the time where car bat- tery problems mostly occur, because heat causes battery fluid to evaporate, damaging the internal structure. The National Car Care Month inspection campaign had a statistic of battery cables, clamps and terminals needed maintenance in 13 percent of the vehicles and seven percent of the batteries were not properly held down. Our aim with the TurboSpark is to decrease theAnalysis use of regular car batteries or to make it a better choice to have, limiting the environmental hazards of batteries. The TurboSpark could meet the growing demand of environmentally friendly products. According to a survey given through SustainableBusiness. com, 35 percent of the people that answered stated that they were willing to pay more for environmentally friendly products. It may seem small, but it has definitely been growing over the past few years, with many products hav- ing offers for greener options. In terms of food and beverages, there’s been a growth of sales from 2006-2008 on natural and organic foods, and is expected to grow another 20 percent from 2010-2012. On the other side of the spec- trum, beauty and personal care products have also had an increase in sales for greener products, from 2006 to present. This shows that people are not only focusing on their needs, but are willing to invest in something they want to buy as well.
  10. 10. Market Competitive Our competition consists of car companies that sell hybrids andelectric cars because they’re using electricity as an alternative source ofpower for cars. The benefits of electricity for powering up cars are that it’scleaner and inexpensive as well. The TurboSpark aims to be an alternative tobatteries in cars, consisting of thousands of capacitor plates made of metal,hidden behind the car’s exterior, and functions by storing electrical chargeapplied to be used later. One example of our competition is the Nissan LeafSL is powered up by a 24kWh lithium ion battery that experiences a reduc-tion in the amount of electricity or charge it can hold over time, resulting ina reduction in the vehicle’s range. Their power meter indicates the regenera-tion power level provided to the lithium-ion battery system and the energypower consumption level when driving. When the battery has 4kWh remain-ing, the empty warning light will come on as well. Our product is the samein the matters of not lasting longer than a regular battery, but the life staysconsistent. An interesting feature of the Nissan Leaf is that their spoiler is alsoa solar panel, so this can charge the essentials of the car without having todrain the battery. The TurboSpark supports the solar and wind alternative en-ergy as well, acting as a storage option for power received from a solar panel.Driving and storing the Leaf in extreme temperatures will reduce batterycapacity, and also repeatedly recharging for a quick charge several times aday. Our advantage is that no matter how quick the charging and recharging,the metal plates inside the insulator will never wear out its energy capacity,which is convenient for drivers who want to recharge to make sure their carwon’t run out of energy while driving long or short distances. A regular carbattery’s exposure to overheating and overcharge will lead to cell rupture,and in extreme conditions it will be at risk of explosion. The TurboSpark hasno chemicals involved, so no fire or explosions can happen. Another car company that’s another potential competitor is Chev-rolet, and their new car is the 2011 Chevrolet Volt, powered by electricitywithout being tethered to electrical outlets. The volt battery is Lithium-ion as
  11. 11. Analysis well, having went through environment-specific tests, like corrosion and hot and cold weather testing, and customers would only have to pay $1.50 of electricity per day. The Volt can be fully charged in about 10 hours, but with a car filled with millions of tiny capacitor plates, our product could fully charge a car less than 10 hours, because its advantages are rapid charging and can take as much energy as needed. There is no memory or danger of overcharg- ing capacitors so full-charge detection is not needed. Even if full, they just stop accepting the charge. Virtually, they can be recharged and discharged for an unlimited number of times. Ford’s Fusion Hybrid car was awarded the North American Car of the Year in a Detroit auto show, also named Motor Trend’s Car of the Year. Most Hybrid car batteries are either nickel metal hydride, or lithium-ion, and the market for lithium-ion batteries is rapidly expanding as an alternative to the nickel-metal hydride batteries, which have been utilized in the hybrid market. Batteries are big and heavy, while capacitors are small and light. The plates have no corrosive electrolyte and low to no toxicity of materials. SpareAnalysis parts for a hybrid car can be hard to find, but a car filled with capacitors will be easy to replace since SparkLife will offer repair services for our customers. Maintenenace Easy Install Indicator/ Chemical-free Long-lasting Free Power check Solite Battery X X X X AutoZone (Gold-Duralast) X X X X X Interstate Batteries (Toyota Corolla 2009 model) SparkLife, Inc. X X X X X (TurboSpark)
  12. 12. Market CustomerDemographics: Our customers will have to be the makers of cars, who in turn, theircustomers will be drivers of those cars. The car companies would have to becompanies who are currently developing or have already developed greeneralternatives to gasoline-powered cars. As for the people buying the cars,their age range would match the age range of drivers, which is 16 and up.Geographics: Cars and car batteries are being sold everywhere in the nation. Theyare sold in practically every major area in the country, so we would be ableto sell our product to any car company to manufacture and sell to anyonearound the nation.Psychographics: Our customers for the TurboSpark system, in terms of psychograph-ics, would be those who are less willing to pay for the rising prices of gasand are buying hybrid and electric cars. They would be people who are con-cerned with the overusage of our resources as well as those who are againstthe pollution of the air. Another thing a customer would want in this kind ofproduct is ease of use and time efficiency. The TurboSpark is rechargeable inthe same way as regular rechargeable batteries, by plugging it into an outlet.Due to the capacitors in the system, the charge takes up little time, muchbetter than already existing electric cars.
  13. 13. Analysis This graph shows the demand of batteries now as well as a prediction for how much the demand will grow. SparkLife conducted a survey to random passerbys in a park and asked them if they would be willing to buy an alternative power source like ours. The answers the gave matched what this graph shows, and that they would buy a car using our capacitor system at a reasonable price.Profile This graph shows the sales of cars and usage of gas weekly. What this graph is supposed to show is that there is a market for a new power system for cars. Also shown is a graph of 2010’s weekly retail price per gallon, which is steadily increasing up to $3 a gallon. From an interview with a random pass- erby, they said that they would rather pay for electricity than gas and would want to buy our product as long as it save them money.
  14. 14. MarketingProduct SparkLife, Inc. has developed a new power system specifically made for cars called the TurboSpark. Our product uses millions of capacitor plates as opposed to a lithium-ion or lead- acid battery to power the car. Capacitors are small metal plates that are able to store electricity which can be utilized at later times. The capacitors will be placed within a casing similar in size to a normal car battery. As for the capabilities of the capacitors, they have the ability to be charged faster than the batteries of electric cars and last just as long as a charge from a regular recharge- able battery. The TurboSpark system is chemical-free, which means that unlike regular car batter- ies, there are no fire hazards at all, making the car much safer as well as being emission-free. The system will be sold as a car that is based around our TurboSpark system. As for the features it gives the car, it allows the car to go from an estimated 250-300 miles per full charge and can go from zero to 60 miles per hour in seconds. Our design has the TurboSpark system implemented at either the base of the car or within the frame of the car, depending on which is more efficient on different models. Our system will also have specialized support for it, training and certifying specific people to repair it around the country in repair shops. The TurboSpark power source system will be about $7,500 which would cover the many capacitor plates, the size of the product, knobs for adjusting the voltage, plastic coverings, and Pricing wirings that it would have. The product’s price is also based on a car company named Tesla, in which the prices for car battery systems near $7,500, so we believe it’s reasonable to have the price near theirs. The TurboSpark is lightweight which another factor to its price, and it’s not heavy and bulky like regular car batteries. Different types of other capacitors being made are PET film capacitors, which use polyester film as the dielectric, or the electrical insulator that may be polarized by an applied electric field. Glass capacitors use glass as the dielectric and are reliable, stable, and resistant to nuclear radiation, but expensive. The lithium ion capacitors are a new technology and have a higher power density as compared to batteries. Since capacitors would be a new power source for cars, the price would be a little costly as well. But cars powered by electricity have significantly fewer moving parts which will then lead to less expensive main- tenance and eventually lower production costs. If ever a car company wants their cars to have our power source system as well, we would partner up with them and sell our goods to them. In the future, SparkLife Inc. plans to improve the product as years go by, so discounts are applied to our old models.
  15. 15. Placement Plan First, we will manufacture the actual TurboSpark within our own facil- ity. Afterwards, we will send the units to car companies for them to produce cars based around the TurboSpark. There, those companies will sell the car along with our TurboSpark system through their distribution methods. Those car companies will send their cars to retail stores for their customers to purchase. Once SparkLife becomes more successful, we plan to distribute the system itself through both internet orders and retail stores. Promotion We have planed to show off our new system through print advertisements in car maga- zines. We decided this because people tend to look at those magazines before purchasing a car. After the TurboSpark gains momentum in the market, we will add comercials to our marketing campaign. We plan to air these around 6:00pm and on channels that show sitcoms. We chose this because drivers, our target customers, are usually working until then. Once they’re home, they tend to unwind by watching these kinds of shows. We believe that will get the most viewers that would be interested in our product. With all these advertisements showing the TurboSpark people would get interested on how our system works and want to see its potential as a good clean alternative power source for electric cars.
  16. 16. Life Cycle1. Aquiring Every product made comes with costs and benefits through its entire existence. In our case, we decided to obtain the materials needed to make a capacitor power source here in the United States. Factories that will make the materials will create smoke, causing air pollution. In order to get the met- als for the plates, our company will have to mine, but loss of biodiversity, and contamination of soil occur in chemicals from mining processes. We will also be re- cylcing any materials that are sent back to us through the disposal and recycling process stated in step five. 2. Manufacturing Metal, plastic, rubber, and wires are the main materials that are need to create the TurboSpark. We will manufacture our product within our own facility in Colorado, due to many of the resources needed are available there. Our construction method will have assembly lines in order to maximize the amount of TurboSpark units produced. 3. Transportation We will transport the TurboSpark from United States to other companies mainly by cargo planes and trains, depending on the area we send them to. Cargo planes would be used if we were to send them to overseas compa- nies. Airplanes will be much faster to send than ships, but would be much more costly com- pared to cargo ships. If the TurboSpark systems are being sent to companies within the United States, then trains are used. When transporting in the company, we believe time will be less of an issue compared to cost.
  17. 17. Analysis4. Using Use of our product would decrease the use of gas and oil, because only electricity is used to power up the car. Using electricity allows the car get better mileage as well as the fact that it’s emission-free. No pollution in the air will be involved because it’s powered by an alternative source. It doesn’t make noise since it’s not pow- ered by gasoline, and since electricity is used, it take a lot of energy to power it up. In terms of costs though, paying for electricity for the charge is more cost-efficient than paying for gasoline. 5. Disposal Although the TurboSpark should not have to be disposed under normal use, it can be disposed of and recycled through a system that allows us to acquire the old system, take it apart or refine it to be put back into use. Should the system be beyond repair, we can salvage any parts still usable and recycle the leftover plastic, rubber and metal. This way, we will be able to efficiently reuse any systems that are sent back to us.
  18. 18. FinancialSales/Revenue We plan to sell the TurboSpark to car companies within the first year of business to have them test it out and create prototypes around it. In the first year, we plan to produce 700 Turbo- Spark systems, which is 0.5% of the hybrid/electric car market. This number is based off of the annual sales of hybrids, in this case, the Toyota Prius. The amount they sold within one year aver- Growth aged to about 140,000 models. We chose to limit our production to minimize costs of operations in the beginning. We also limit the amount produced because we plan to only have companies test out the TurboSpark rather than have it penetrate the market immediately. After a two year testing period, we plan to have it penetrate the market. At this point, we would make enough TurboSpark systems for about 1-4% of the hybrid/electric market as each year passes. Production is expected to spike up to almost 9,500 units by the end of the five years once the TurboSpark officially enters the market. This is realistic due to that hybrid car produc- tion and use is constantly increasing, with today currently having an annual sale of 940,000 glob- ally. It is also realistic due to the fact that other companies will not yet implement our system and may be testing it or not even using it. Hybrid/electric cars are becoming the new trend for reducing pollution and saving money, so it will pick up its pace as the future for transportation. For the purposes of this project it is assumed that the operations budget for our company comprises 65% of our revenue and is composed of the following individual items: Operations •Property in Colorado for manufacturing •Machinery and electricity Budget •Labor and management •Transportation/Delivery Services
  19. 19. Projections For the purposes of this project it is assumed that the cost of goods for our company’s product comprises 50% of our revenue and is composed of the following individual items: Cost of Goods •Metal •Plastic •Conductive Wiring •Silicon •Rubber •Concrete (for facility) •Solder •Capacitor plates For the purposes of this project it is assumed that the cost of goods for our company’sAdvertising/ product comprises 30% of our operations budget, paying for magazine, billboards, and other Marketing Expenses print advertisements. Within the first year, we are planning to spend approximately $1.15 million on those advertisements. An estimated $30,000 will be used on billboards while $560,000 will be used annually on print advertisements. These will be focused on magazines about automobiles. The rest will be focused on prototype demonstrations for companies we plan to partner with. Later on, we will focus on commercials once our product gains popularity. Marketing the TurboS- park is essential to increase sales of our system and our target customers, which are car companies and drivers, will be drawn in to the advertising of our new power system for cars which is both beneficial and environmentally friendly. Use of funds The money that SparkLife gets are from loans from banks, and funds from partner- Sources/ ship with major car companies. The operations budget and sales and revenue growth for the TurboSpark will be our top priorities, because we believe that in order to penetrate the market, we first pitch in our ideas to companies and form partnerships with them. After being approved by major companies, then advertising will be the next step to make our product known to the public.
  20. 20. First YearFinancial
  21. 21. ProjectionsFive Year
  22. 22. Big things should come in small packages... SparkLife, Inc. SparkLife, Inc. Charging up the future. Charging up the future.We’ve revolutionized the way your car runs. The TurboSpark is the future for the power source of automobiles.
  23. 23. You’re never too old to imagine. SparkLife, Inc. Charging up the future.We’ve revolutionized the way your car runs. The TurboSpark is the future for the power source of automobiles.