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New Enterprise Development - EF317
Dr. Eric Clinton
We hereby certify that this material which we now submit for assessment on the
programme of study leading to the award of (BBS/EB) is entirely our own work, and
has not been taken from the work of others, save, and to the extent that, such work
has been cited and acknowledged within the text of our work.
Signed: _______________________ ID No: ______________ Date: _________
Signed: _______________________ ID No: ______________ Date: _________
Signed: _______________________ ID No: ______________ Date: _________
Signed: _______________________ ID No: ______________ Date: _________
KEYZY BUSINESS PLAN
Summit Enterprises – Team 40
Ronan Martin, Paul Eglington, Fiachra O’Ciardha
and Ann Miggin
A SADL that helps to guide keys into keyholes.
Strictly Private & Confidential
2013
This document is the proprietary property of Summit Enterprises
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 1
Table of Contents
1. Executive Summary............................................................................................................................................4
2. Company Description.........................................................................................................................................5
2.1 Promoters, shareholders and Board.............................................................................................................5
2.2 Advisors ........................................................................................................................................................5
2.3 Products and services...................................................................................................................................5
2.3.1 Website...................................................................................................................................5
2.3.2 Distribution............................................................................................................................6
2.4 Long Term Aim of Business ..........................................................................................................................8
2.5 S.W.O.T. Analysis .........................................................................................................................................8
3. Market Analysis..................................................................................................................................................9
3.1 Target market ...............................................................................................................................................9
3.2 Total market valuation................................................................................................................................10
3.3 Targeted share............................................................................................................................................10
3.4 Market trends..............................................................................................................................................11
3.5 Profile of competitors .................................................................................................................................11
3.6 Blue Ocean Strategy ...................................................................................................................................11
3.7 Competitive advantage ...............................................................................................................................12
3.8 Benefits to clients........................................................................................................................................12
4. Print Media Campaign......................................................................................................................................13
5. Marketing Strategy ...........................................................................................................................................16
5.1 Marketing Strategy .....................................................................................................................................16
5.2 Sales Strategy .............................................................................................................................................16
5.3 Pricing ........................................................................................................................................................17
5.3.1 Manufacturing Costs............................................................................................................17
5.3.2 Competitors Pricing.............................................................................................................18
5.4 Advertising and Promotion.........................................................................................................................18
5.4.1 Print Media Campaign.........................................................................................................18
5.4.2 Public relations....................................................................................................................19
5.4.3 Online Marketing.................................................................................................................19
5.4.4 Word of mouth......................................................................................................................19
6. Research & Development.................................................................................................................................20
6.1 Research and Development ........................................................................................................................20
6.2 Team/Department structure........................................................................................................................20
6.4 Methodology...............................................................................................................................................20
6.5 Milestones to be achieved...........................................................................................................................20
6.6 Technical Partners......................................................................................................................................21
6.7 Patents and Brands.....................................................................................................................................21
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Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 2
7. Staffing and Operations....................................................................................................................................22
7.1 Management Organisation Chart...............................................................................................................22
7.2 Staffing........................................................................................................................................................23
7.3 Training Plans ............................................................................................................................................23
7.4 Operations ..................................................................................................................................................23
8 Financial Projections .........................................................................................................................................25
8.1 Assumptions................................................................................................................................................25
8.1.1 Cashflow ..............................................................................................................................25
8.1.2 Profit & Loss........................................................................................................................26
8.1.3 Balance Sheets .....................................................................................................................27
8.2 Cashflow.....................................................................................................................................................28
8.3 Profit and Loss Accounts............................................................................................................................29
8.4 Balance Sheets............................................................................................................................................30
8.5 Breakeven ...................................................................................................................................................31
9. Sales Pipeline....................................................................................................................................................32
10. Funding Requirements....................................................................................................................................33
11. Promoters – CVs.............................................................................................................................................34
Ronan Martin - CEO ........................................................................................................................................34
Paul Eglington – CFO......................................................................................................................................35
Ann Miggin - COO ...........................................................................................................................................36
Fiachra Ó Ciardha - CMO...............................................................................................................................37
Strictly Private & Confidential
2013
This document is the proprietary property of Summit Enterprises
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 3
Confidentiality Agreement
The undersigned reader acknowledges that the information provided in this business plan is
confidential; therefore, the reader agrees not to disclose it without the express written
permission of Summit Enterprises.
It is acknowledged by the reader that information to be furnished in this business plan is in all
respects confidential in nature, other than information that is in the public domain through
other means, and that any disclosure or use of this confidential information by the reader
may cause serious harm or damage to Summit Enterprises.
Upon request, this document is to be immediately returned to Ronan Martin, CEO.
___________________________
Signature
___________________________
Name (printed)
___________________________
Date
This is a business plan. It does not imply offering of securities.
Strictly Private & Confidential
2013
This document is the proprietary property of Summit Enterprises
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 4
1. EXECUTIVE SUMMARY
Summit Enterprises is made up of Ronan Martin, Paul Eglington, Fiachra Ó’Ciardha and Ann Miggin.
We have prepared this business plan as we have developed an innovative new product. Using this
document we will apply for a grant from Enterprise Ireland. The business plan will go into further
detail with regards the product itself, our organization, the marketing of the product and the financial
projections.
Our product is Keyzy, a unique device that allows the user to quickly and accurately guide their key
into the keyhole. Keyzy is useful for those living with Parkinson’s disease, arthritis and a broad range
of other ailments. This product helps the user to maintain confidence in their own abilities by
enabling them to live independently. Section 2 details the product specifications and our business
model.
In Section 3 our target market is analysed. The target market for Keyzy is substantial; there are
currently 135,000 living with Parkinson’s disease and 11 million living with Arthritis in Ireland and
the UK. There are currently 1.2 million people living with Parkinson’s disease and 15 million living
with arthritis in Europe. There are currently 6.3 million people living with Parkinson’s disease and
140 million living with arthritis worldwide. There is nothing like Keyzy that exists in the current
market.
Our print media campaign summary is included in Section 4, along with the 5 advertisements. In
Section 5, our marketing plan is further explained. This includes the sales strategy, pricing and
promotional campaigns.
In Section 6, we go into further detail into our plans for further research and development of other
products to build a sustainable business. Our target milestones are broken down per year, and patents
and our brand are also discussed.
The management team is delegated as follows: Ronan is our Chief Executive Officer, Paul is our
Chief Financial Officer, Fiachra is our Chief Marketing Officer and Ann is our Chief Operations
Officer. A full overview of our organizational structure is found in Section 7.
In Section 8, we have prepared cash flows, profit and loss accounts and balance sheets for years 1-3.
These accounts represent realistic projections of our financial situation going forward. They indicate
that we can build a sustainable business, as by Year 3 we will be generating a profit.
To achieve this, we will require initial funding of €75,000. This is further detailed in section 10.
Year 1 Year 2 Year 3
Sales 11,000 20,000 40,000
Exports 7,000 (UK)
16,000
(Europe)
38,000 (EU
& US)
Net Profit before Tax (53,925) (18,994) 90,892
Investment 75,000 - -
Employment 4 persons 4 persons 4 persons
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2. COMPANY DESCRIPTION
2.1 Promoters, shareholders and Board
The shareholders of Keyzy will be Ronan, Fiachra, Paul and Ann. Each person will hold a 25% share
of the business. Ronan will act as CEO; his role will involve overlooking the business as a whole. The
other three will report any issues back to him. As marketing director, Fiachra will be in charge of the
promotion of our product. As Finance Director, Paul will prepare the necessary accounts on day to
day basis for the organization. As Operations Officer, Ann will be in charge of the day to day running
of the warehouse where Keyzy will be stocked and with regards the outsourcing.
2.2 Advisors
Tony Carroll, who is the advocacy manager of the Silver Stream nursing home range, found Keyzy to
be a useful product and one that would be beneficial to those suffering with mobility motor skills. He
declared his interest in the product to such an extent that he would implement Keyzy in the 6 nursing
homes on a trial basis.
Karen O’Regan, who is an executive for Accenture was also interested in Keyzy. She gave us her
contact details to help arrange meetings with John Whelan, who would help us with the production of
Keyzy.
John Whelan is the Managing Director of Seniors At Home, a personal security system for older
adults living alone that lets their family and friends know that they are OK or that they are in need of
assistance.
2.3 Products and services
Keyzy is an innovative device that allows the user to quickly and accurately guide their key directly
into a keyhole. The idea for Keyzy originated when Ronan was working in Lundbeck, a
pharmaceutical company, who work on many Parkinson’s related products. The patients emphasised
their preference for solutions that weren't based on medication. We then looked into this area and
decided to focus on simply aids to daily living. We looked at simply opening a door and the
difficulties that one could face with health difficulties. This is where the idea for Keyzy stemmed
from.
As can be seen below, Keyzy is a small device that can be positioned over the keyhole of a standard
domestic door. The functionality of the device is that there will be two guides either side of the
keyhole which will guide the key to a position directly above the keyhole. At this point the user just
needs to push the key into the keyhole as normal and the device will allow for the swivel mechanism
of the lock to function. For use during the night or in poorly lit areas, the device will have strips of a
phosphorescent (glow in the dark) material attached to either side of the guides to aid the user in such
circumstances. This demonstrates how it may be useful for almost any individual (e.g. if they don’t
have a porch light, arrive home late at night, in a rush etc.).
The unique selling point for Keyzy is that we will donate €1 of every unit sold to a relevant patient
group. We feel that customers will be more proactive when they see 10% being contributed to a non
for profit organization, which supports them.
The advantage of Keyzy to customers is that it will allow easier and quicker access to opening a door,
ultimately promoting independent living. Introducing Keyzy is a stepping stone towards encouraging
independent living as a choice for everyone.
2.3.1 Website
Our website is essential to the business process and will be our main distribution channel. This will
allow us to serve multiple international markets from a very early stage. The main functionality of the
website will be to process orders for Keyzy and to securely accept payment as well as providing
information on the device as and customer service support through e-mail. We will require a built-in
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Content Management System to allow us to change content ourselves, full Search Engine
Optimisation, PHP and MySQL integration and complete HTTPS/SSL support for security.
We have received an estimate of between €3,000 and €9,000 for the development of a site that will
meet our requirements; we will include €8,000 in the budget to cover this. The site development
should take no longer than 4 months and will be ready in time for a prospective product launch in
2014. Hosting costs will be $60 per year and to purchase the domain name KeyzyOnline.com (which
as of 11/12/2012 is available) will be $9.99 for the first year (GoDaddy.com).
2.3.2 Distribution
Our stock will be stored in our warehouse adjoining our office space. At this stage we have found
appropriate premises in Blanchardstown; however the location for this will be decided at a later date.
From here, we can send out the device to customers who have ordered it through our online shop.
Please see below for our Process Flow Map. The devices will be individually packaged when sent
from the manufacturing company to Dublin. We will insert this plus a product and company
information leaflet into a small padded envelope which will be sent to our customers. Postage and
packaging costs for this device will be approximately €2.40 for ROI and Northern Ireland, and €3.00
for Great Britain, Europe and Rest of World.
The main disadvantage with our product is that at this point we do not have any arrangements made
with the HSE, which would be vital for Keyzy with regards the HSE promoting Keyzy. We believe
that we can overcome this and build positive relationships with them by visiting with them explaining
the product and demonstrating how it can be implemented easily nationwide.
Key developments for Keyzy in the future will be acquiring a patent to ensure of its safety. It is vital
that we ensure Keyzy is tested by the relevant authorities to establish it is medically fit to be used.
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2.4 Long Term Aim of Business
As we believe that independent living should be attainable for everyone, regardless of age or ability,
our mission is to become a global leader in mobility products by developing innovative solutions to
everyday problems.
2.5 S.W.O.T. Analysis
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3. MARKET ANALYSIS
3.1 Target market
We aim to supply our product to those who suffer from Parkinson’s disease, arthritis and other
ailments, as well as the elderly in general. With regards the Irish and UK markets, there are 135,000
people living with Parkinson’s disease and 11 million people living with Arthritis.
The end user of our product is unlikely to be the purchaser of the product. We envisage our customers
will be close relatives of the end users who can see them struggle with this task.
There is a growing elderly population globally which results in growth in the market for age related
products. Conditions such as Parkinson’s disease and arthritis are most prevalent in the older age
groups and the risk of being diagnosed increases with age.
Provided that the customers have seen someone they know struggle with this, it will be a rather quick
decision making process. The price will not be one of the key decision making factors because a
premium price is expected due to the perceived level of benefit attached to the product. It is a value
added product and could potentially be an impulse buy for younger persons.
Our target market size in Ireland and United Kingdom is already quite large and it will keep growing
– the graphs below show the ageing Irish population. This exponential growth expected within our
target market means we are targeting an age group which will ensure our future sustainability.
While the sex of a person is not a primary concern within our target, there are substantially more
women than men in this age group. This means we must ensure that women find our product both
useful and aesthetically pleasing. Other demographic factors such as social class, religion and marital
status are not relevant to our target market and will have no bearing on sales.
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Source: Central Statistics Office
3.2 Total market valuation
Within the UK and Irish markets, there are 135,000 people living with Parkinson’s disease and 11
million people living with Arthritis. When we expand to Europe, these numbers increase to 1.2
million for Parkinson’s disease and 15 million for Arthritis. Worldwide, we will be dealing with 6.3
million people living with Parkinson’s disease and 140 million living with Arthritis.
Other potential markets include people who have suffered a stroke, who are living with learning
disabilities, cerebral palsy, neuropathy and other neurological conditions, and the elderly in general.
3.3 Targeted share
Our target share for year 1 is 0.1% of the Irish and UK markets. This accumulates to 11,000 units
sold. This sales target is based on our investment of €10,200 in advertising, in addition to our other
promotional campaign as outlined in section 5.4. We believe 0.1% is a conservative number based on
the fact that our product will be useful to a wide range of users not just those living with the condition.
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3.4 Market trends
People are living longer due to advancements in health. This correlates to a larger market for Keyzy.
The tendency for elderly people living at home rather than nursing homes is increasing. As this
tendency increases, the elderly will be looking for products like Keyzy to implement in the home to
enable independent living.
Political: Unlike pharmaceuticals for example, we will not require reimbursement for this device so
the HSE will have minimal influence on us. This may change if we were to get a lucrative contract
with them to supply public nursing homes, home-help assistants etc. The product itself will be made
from widely available non-toxic plastic so we should not face any legislative issues.
Economic: The global economic crisis has resulted in consumer spending declining considerably. We
believe that the perception of the benefits our product provides outweighs the cost and so the
economic climate will have a lesser impact. The requirements for a successful loan application have
become stricter in recent years. Our trading risk is minor within the Eurozone and we can be relatively
confident about costs and price transparency. However as the UK still use Sterling this may cause
exchange rate fluctuations to negatively impact our bottom line.
Social: Longer life expectancies and an aging population results in the elderly population retaining
their independence for longer. This is set to increase, and Keyzy fits in perfectly with this emerging
mind-set.
Technological: Advancements such as electronic keypads have the potential to take market share
from Keyzy. However these devices are quite a distance from being mainstream products in a
domestic setting and it is not something that is of immediate concern.
3.5 Profile of competitors
Competitors
Collins Care Mobility Products would be our closest competitor. Their product range includes many
items that would be beneficial to our target market for example, for people suffering from Parkinson’s
-“Good Grips weighted cutlery”. The cutlery is specifically aimed at those with tremors and provides
extra weight. Irish competitors, Mobility Online and Murray’s i.e. provide a range of products from
walking aids down to smaller items like key turners. Access Mobility Products and Caregiver
Products are global competitors who stock products for a similar market.
Substitute Products
While there are numerous existing competitors in the mobility aids market, their focus appears to be
on bigger products mainly stair lifts/ramps etc. At present there are two products, the “Cheekey” and
“Keyturner”, which would be substitutes to Keyzy. However these products allow for better grip to
the key, while Keyzy focuses on alleviating the potential trouble of entering your key into the
keyhole. A brief company profile of our closest substitute can be seen below.
Company Name Annual Turnover Profit Margin Company Size
Chimerics Ltd
(Cheekey)
£11,238 £5,606 2 shareholders.
3.6 Blue Ocean Strategy
As we are the only company that is solving this problem in this particular way, it allows us to develop
a Blue Ocean Strategy to maximize the market potential. Our four differentiating strategies can be
seen below, along with a strategy canvas showing how our strategy compares with the aforementioned
substitutes.
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Eliminating: We will not need and a bricks & mortar outlet as we intend to sell online. We will not
incur the cost associated with running a shop and so we eliminate this cost.
Reducing: We will limit our employees to the four founding members. This will reduce our costs and
doesn’t take away from the value offered to the customer.
Raise: Competitor products are generally not aesthetically pleasing. Keyzy will have a paintable
finish which will blend in with any door. We have implemented this due to feedback from the focus
groups.
Create: Our product itself is innovative and has never been offered in this industry before, and this is
how we are creating value for the customer.
3.7 Competitive advantage
Keyzy is a unique and simple device which is easy to set up and implement. Its phosphorescent strips
and channeling guides make it easy for the user to get their key into the keyhole. Regarding price, we
will sell each product for €9.99 plus postage and packaging. This gives us a substantial margin which
will enable us to reinvest in research and development of new, more technical, products to build our
portfolio. A key element to our pricing is that we will donate €1 from every unit sold to a relevant
patient group such as the Parkinson’s Association Ireland.
We believe this is an effective strategy and one that will give us a significant competitive advantage,
as the customer will be more proactive when they see 10% being contributed to a not-for-profit
organization which supports them. We believe that donating to the patient groups is essential to
becoming a successful and socially responsible business.
3.8 Benefits to clients
We will also be developing agreements with retail outlets to stock Keyzy, as we see this as another
key route to market. Potential stockists for Keyzy could be Woodies DIY, Homebase and B&Q, as
these companies now have sections for mobility products in their stores. By stocking Keyzy, this will
increase their range of mobility products, offering more value to their customers.
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4. PRINT MEDIA CAMPAIGN
For our print media campaign, we have developed five advertisements each of which focus on one of
the five key characteristics of our product – accuracy, freedom, simplicity, confidence and speed.
Each advertisement has a different striking image which symbolizes one of our product benefits,
under which we have explicitly included the benefit combined with our tagline of ‘Independence is
Key’. This is a technique widely used in advertising in the pharmaceutical industry, for example the
Lexapro “Russian Doll”. Using powerful, symbolic imagery in this way allows us to accentuate the
benefits of Keyzy for the user.
There are five advertisements in total, three A4 portrait advertisements and two A3 landscape
advertisements which can be spread over two A4 pages in magazines. Please see the five images
included overleaf. As well as the metaphorical image, each advert also has a description of the
product, a link to our e-commerce website, links to our Twitter page to facilitate customer relations
and the Keyzy brand logo.
We will release all adverts at the same time as part of an intensive promotional campaign starting in
January 2014. These adverts will be included in the magazines and newsletters of the relevant patient
groups – Parkinson’s Association of Ireland, Age Action Ireland, Arthritis Ireland etc. This will
ensure our marketing communications is focused on our target market and avoid wasting valuable
resources on more general media. In addition, it will be yet another method of supporting the patient
groups which is essential to our business. This strategy is detailed further in the next section on
promotion.
All images used are either original media or open sourced images, free to use for commercial
purposes.
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5. MARKETING STRATEGY
5.1 Marketing Strategy
The marketing strategy will be carried out by our Chief Marketing Officer, Fiachra O’Ciardha. His
role is solely focused on marketing our product, and therefore he will ensure that we reach our
marketing objectives. Both Fiachra and our CEO, Ronan Martin, have backgrounds in marketing and
this will provide us with the necessary expertise.
At first, we will primarily target the Parkinson’s disease and arthritis segments of our overall potential
market. These segments are easily definable and will get the full benefit from our product. They are
also readily accessible through their relevant patient group which makes marketing to them less
resource intensive. These segments represent a modest share of our total market, and therefore are the
perfect segments to target during the launch phases of Keyzy.
As Keyzy starts to generate revenue, this will allow us to invest more heavily in promotional activity
and enable us to attack further segments such as stroke victims, people with learning disabilities and
the elderly in general. This will be conducted in moderation as it will stretch our resources and take
attention away from our primary markets of Parkinson’s disease and arthritis. However it is important
to note that these segments are not mutually exclusive as conditions such as PD and arthritis are most
prevalent in the older age groups.
As Keyzy is a new innovation in SADL’s (simple aids to daily living) it should not prove difficult to
differentiate it from the substitute products out there. Keyzy has a number of characteristics that will
enable us to do this. First of all, we will not market Keyzy as a medical device, or a device that is for
people with a particular medical condition. This will reduce the stigma associated with this type of
product and position Keyzy as an everyday device that is useful for everyone. Secondly, we have
branded Keyzy in a similar way that other everyday consumer goods are branded. Substitute products
do not have strong brand associations, and this will provide a competitive advantage for us.
Our marketing efforts will emphasize five key characteristics of Keyzy as mentioned before -
accuracy, freedom, simplicity, confidence and speed. These benefits speak directly to our end user,
and to the potential customer of a relative, carer etc. Accuracy, simplicity and speed are product
benefits which convey explicitly how Keyzy helps. Freedom and confidence are the emotional
benefits to the user made possible by the product benefits.
We have been in contact with Tony Carroll, the advocacy manager for a chain of nursing homes in
north Dublin. He is very enthusiastic about the introduction of Keyzy and has offered us his help and
providing us with contacts in the industry. One such contact is Maurice Gueret of the Irish Medical
Directory. Having adverts for Keyzy in this publication would be invaluable as it is the main resource
used by all stakeholders in the health sector from Healthcare Professionals to pharmaceutical sales
reps to patient groups.
5.2 Sales Strategy
Initially, our main point of sale for Keyzy will be through our e-commerce website. This means that
we must invest heavily into the website at first, but over the long-term it will be very cost efficient.
We have budgeted €8,000 for website development in Year 1. This will allow us to comfortably serve
the entire Irish and UK markets in Year 1 as planned, and expand into overseas markets very quickly.
It also means that the distribution chain is completely disintermediated and we can sell directly to the
customers, and therefore benefit from the entirety of the large margin.
We can also retain full control over the positioning of the Keyzy brand and ensure that the key brand
messages do not get lost in the same way that happens to other SADL devices. As the device and
packaging is quite small, and lightweight it makes it a perfect candidate for the worldwide distribution
that the website facilitates. Developing relationships with the patient groups is vital to our business
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model and being able to satisfy their demand directly, in a timely manner, and will help us to keep
these relationships positive.
In addition to the website we will develop agreements directly with homecare retail chains such as
B&Q, Woodies DIY etc. While this will mean that our margin is reduced, it will allow us to increase
sales substantially and penetrate the market at a much quicker rate. It will also open Keyzys scope up
to a more general audience that would benefit from our product, not just healthcare.
5.3 Pricing
The sole income source of our business will come from retailing Keyzy through our e-commerce
website and from wholesaling Keyzy to homecare stores and other retail outlets.
Keyzy will be retailed at €9.99 plus postage and packaging to the customer. We are pursuing a value
based pricing strategy as demand for our product is inelastic due to the perceived benefits to quality of
life. This high margin will enable us to reinvest in research and development of new, more technical,
products to build our portfolio.
As stated before, a key element to our pricing is that we will donate €1 from every unit sold to a
relevant patient group such as the Parkinson’s Association Ireland. We believe this is an effective
strategy, as the customer will be more proactive when they see 10% being contributed to a not-for-
profit organisation which supports them. Our target market has a lot of spending power as declared
revenues of the over 65s in Ireland is €6.6 billion, and in the EU 75% of the wealth is held by the over
50s.
5.3.1 Manufacturing Costs
We have received a quote for the design based on manufacturing 15,000 units to cover expected
demand in Year 1. We were presented with two options for construction material - glass filled nylon
and impact resistant ABS. We decided to go with ABS due to feedback from our focus groups over
the ability to paint the device to fit in with the colour of the door. This is possible with ABS, also it is
the cheaper option and it’s thermally stable. Initial Tooling costs will be approximately $22,967 and
manufacturing costs per unit will be approximately $0.6391. This includes assembly of the finished
device including the addition of adhesive and magnetic strips.
The magnetic strips will be Ferrite magnets with a pull of 200 grams. The cost of the 3 magnetic strips
per unit is €0.00125. The strips of adhesive are double-sided foam, high tack rubber resin adhesive.
The cost of 3 strips of adhesive per unit is £0.000126. We have received an estimate of $0.07907 per
unit (2 strips), (plus delivery of $121.50 to PDM) for strips of luminance PVC-4 to be included with
the mold. We will have to source the magnetic, adhesive and phosphorescent strips separately as the
manufacturing company generally does not supply these. However they will apply these to the
finished device during the manufacturing stage at no extra cost.
From a final design stage, it generally takes 3 to 4 months to get a tool back which will need to be
approved. After that, depending on shop time they can get in-house samples done for us in a week.
From there, a realistic turnaround on production can be estimated, based on quantity ordered. We
could not yet estimate a cost for delivery to our warehouse in Dublin, but we have noted that we will
incur an export fee and have to deal with international customs paperwork.
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5.3.2 Competitors Pricing
While there are no direct competitors for Keyzy, there are two substitute products, Cheekey and
Keyturner. The price of Keyturner is £5.99, which is approximately €7.10 and Cheekey is priced at
£2.69 which is approximately €3.20.
There is not a huge level of competition aside from the products mentioned, there is also little
innovation in the industry and so we will continuously develop Keyzy and other related products to
increase market share.
In our market the buyer is a price taker as the total market is large and there are not many alternative
products. However if we fail to hit our sales targets in the first two quarters, and we attribute this to
Keyzy being overpriced, we will drop the price to €5.99 in order to stimulate demand.
5.4 Advertising and Promotion
5.4.1 Print Media Campaign
As stated previously during the initial launch phase of Keyzy, we will run a print advertising
campaign in the magazines and newsletters published by the Parkinson’s Association of Ireland, Age
Action Ireland, Arthritis Ireland, and Parkinson’s UK etc. This will be comprised of the 5 adverts
included in the previous section. These publications have high readership rates amongst our target
market and will facilitate a focused marketing push.
As we make a donation to these groups based per unit sold, we are confident that they will help us
during the difficult launch phase by offering ad space free of charge or at a reduced rate. This will be
our marketing strategy during the first 6 months after launch and it will be reviewed on a half-yearly
basis to evaluate its effectiveness. We are confident that they will actively promote our product given
our loyalty and support to their groups.
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5.4.2 Public relations
As part of our launch promotions, we plan to develop a PR campaign in conjunction with the
Parkinson’s Association of Ireland and Lundbeck (Ireland) Ltd. We envisage that this will be a
relatively standard photo-call event in order to generate buzz for the product in the Irish media,
support our other launch activities and improve public perception for all involved. As Ronan worked
in Lundbeck last year, we are confident that his contacts there will ensure this campaign will be
developed.
5.4.3 Online Marketing
As our website will be our main point of sale initially, online marketing is a fundamental aspect of our
promotional campaign. Our online promotions will be comprised of two elements - Google Adwords
& advanced Search Engine Optimisation for the website. This will enable potential customers, who
are actively searching in this area, to easily find our product online and link them directly to our
website.
We will budget €10,200 for our Google Adwords campaign, and the service is designed so that we
will not exceed this limit. This will be sufficient to reach our target sales of 11,000 units in Year 1,
when combined with our other promotional strategies.
When we are developing our website, integrating advanced SEO will be one of our priorities. This has
a higher sales conversion rate as customers don’t feel like they are ‘being sold’ a product. While this
requires investment early on, it becomes far more cost efficient over the long term when compared to
advertising.
5.4.4 Word of mouth
We will aim to get endorsements for Keyzy from key opinion leaders in this area and from satisfied
customers. This will help us to promote word of mouth for our product, and having fully satisfied
customers is essential for this. Furthermore, dissatisfied customers can spread negative word of
mouth, and this must be avoided.
Included in our advertisements is our Twitter handle and a ‘hashtag’ so current and potential
customers, and others, can ‘join the conversation’ on Twitter. We see this as being an avenue to
promote our product, complementary services, useful information and links and also provide customer
services. Customer interaction on Twitter is an immediate, transparent method to ensure we doing all
we can to help our customers. It also allows current and potential customers to interact and provide
‘word of mouse’ for Keyzy.
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6. RESEARCH & DEVELOPMENT
6.1 Research and Development
Keyzy is designed so that ‘one size fits all’. This is essential to our business model as it will allow us
expand at a fast rate. While this is appropriate for the majority of standard keyholes, there are certain
designs which are not compatible with Keyzy. To address this, we will develop variations of the
original Keyzy design so that the most common of incompatible keyholes will be catered for.
In Year 3, we will develop a lock with the Keyzy functionality integrated into the design. This will
have many advantages to our product offering such as increased durability and convenience to the
user. Due to the more complicated design we will also be able to charge a more premium price for this
product. This strategy will cannibalise our current Keyzy product and so it will be important to
distinguish the original Keyzy as the mobile version of the device for our target market.
We may choose to produce in a variety of different colors and finishes in order to provide more
choice to consumers. Keyzy is made from ABS plastic which is paintable, but we can also expand the
range to offer wooden and metallic finishes to improve customer choice.
We intend to produce new products aimed at visual and physically impaired persons to aid their
mobility and accessibility. These will be centered on ideas in the technology sector to help people
when using touchscreens, keyboards etc. As a computer literate generation grows older, where these
conditions are most prevalent, there will be a need for these products in the future.
New products will typically be methods of easing ADL’s for those living with particular difficulties,
helping them to maintain their independence.
6.2 Team/Department structure
Our Chief Operations Officer, Ann Miggin, will oversee the implementation of our future product
development plans. Research and development will be outsourced to an engineering firm that
specializes in the medical device industry.
6.4 Methodology
As mentioned above, we will outsource research and development of our product range and our COO
will ensure objectives are met. This is the most cost effective solution for us, as internally we will be
focusing on business development opportunities.
6.5 Milestones to be achieved
In Year 1, we will concentrate on the sales and marketing of the original Keyzy in order to build up
enough resources to properly invest in future R&D.
In Year 2, we will develop variations of Keyzy, in order to satisfy demand for more obscure keyholes.
We will be able to use the feedback from customers in our first year of trading as a basis for our
market research. We will also start to shift our focus to technology accessibility products in Year 2, as
mentioned above.
In Year 3, we will launch the Keyzy integrated lock on to the market. At this stage the design of the
original Keyzy will be optimized and we will start to market it as the ‘mobile’ Keyzy. We also intend
to have 4 new technology products developed to an advanced stage.
In Year 4, we should have at least 1 of the technology products ready to launch which will increase
our portfolio to 3 products. Investment into continuous R&D will be increased substantially this year.
In Year 5, we should be able to launch another 2 products which will bring our portfolio to 5.
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6.6 Technical Partners
We will source all our magnetic strips, adhesive strips and phosphorescent strips to Dalian
Engineering (USA). They will deliver them to our manufacturer, Plastic Design & Manufactuuring.
Our manufacturer will be producing the product and attaching all the components to the product.
Product packaging is also included in their service. They will distribute the finished product directly
to our unit in Blanchardstown.
Other key partners will be the website development firm and R&D firm which we will contract to
carry out those functions.
6.7 Patents and Brands
We will be applying for Intellectual Property rights as soon as possible. This can be a long and costly
process, and there is no guarantee that we will succeed. As this will make us vulnerable to
competitors, we have developed our business model to raise barriers to entry.
As described before, the unique aspect of our business model is that we will donate €1.00 of every
unit sold to a relevant patient group such as Age Action Ireland or Parkinson’s Association of Ireland.
This will enable us to build strong relationships with the groups that have direct access to our target
market. This will make it very difficult for competitors to market a similar product as we will have the
support of the patients groups.
The Keyzy brand is designed to appeal to the consumer market. A white background is used to
indicate pureness and cleanliness, and is commonly used in medical marketing for this purpose. The
word Keyzy and the silhouette of the seagull are in black to indicate strength and confidence. The
brand is punctuated with orange which indicates creativity and freedom. The image of the seagull also
symbolizes freedom and the unlocked padlock that it is carrying relates directly to our product
offering.
Our tagline, “Independence is Key”, promotes the emotional benefits of Keyzy to the user. Consumers
don’t buy product features, they buy product benefits, and our tagline is designed to emphasize this.
When we were developing the brand, we used the concept introduced by Simon Sinek as our
inspiration – “People don’t buy what you, they buy why you do it” (How great leaders inspire action,
TED.com).
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7. STAFFING AND OPERATIONS
7.1 Management Organisation Chart
Our firm size will be small with four members of staff for the first year. We will be fulfilling all four
roles within the organization as outlined above, and will outsource IT.
Our organisational structure takes a functional format as it is most suited to our product offering (Low
technology, Mass production) and small firm size (unlikely to recruit more than one or 2 persons
within the first three years of trading). Our strategy is focus differentiation. It is a niche market and
we have no existing direct competitors.
Ronan is our Chief Executive Officer. Ronan has worked in the pharmaceutical industry, having
worked with Lundbeck, where they have worked on Parkinson’s disease related products. He is
currently class representative of the Business Studies course and Public Relations Officer of the
Investment Society. All managers will be reporting back any issues or potential problems to him.
Ronan is specialising in marketing and thus will have a great scope of the operations. We are
confident that he is the ideal leader for our Keyzy product.
Fiachra is our Chief Marketing Officer. He is currently specialising in marketing. Having worked for
Enterprise Ireland, he will be able to advise the team on any aspects with regards exporting. His main
roles will involve executing advertising campaigns and monitoring sales in conjunction with these
campaigns. In the 1st year the main priority will be building market awareness of our product.
Paul is our Chief Finance Officer. Paul has experience in the finance sector, having worked for
KPMG’s tax and finance department. He is the ideal candidate for this role. Paul will be responsible
for preparing the necessary accounts of the business.
Chief Financial Officer
Paul
Chief Operations Officer
Ann
Chief Marketing Officer
Fiachra
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Ann is our Chief Operations Officer. Her main responsibilities will include; overlooking the
production level, sourcing raw materials, securing supplies and monitoring the distribution of the
product. She has experience in this sector, having organised and managed activities in the Gaeltacht.
This role involves strong communications skills which she has experience in, having worked in the
customer service department of Allianz.
7.2 Staffing
We will not be hiring anybody during the first three years of operations. We have identified IT as a
potential skills gap, however as stated previously we have planned to outsource this role. As our
operations grow in year four and five there may be a need to hire additional staff to assist in the
running of our business.
7.3 Training Plans
Ann will complete a Masters Degree in E-commerce. This will help further build her skills to
optimize the online side of our business. Paul will begin studying tax and will complete the ACA
qualifications. This will allow him to analyse our tax liability and enable us to avail of better taxing
methods to suit our firm. Fiachra will complete the Masters Marketing Degree in DCU. This will
provide him with greater insight into subject itself, which will help improve this aspect of the
business. Ronan will undertake the MBA programme in DCU. This will improve his leadership
abilities and help guide the company to achieve its goals over the next five years.
Continuous up-skilling is essential to ensure we have the necessary skills to grow s sustainable
business. Over the first three years we will allocate funds to invest in this further training of staff
which will begin in year 4.
7.4 Operations
An outline of the physical needs of the company can be found below:
 Premises: We will secure premises in Blanchardstown which will solely be used to hold stock
prior to distribution. It will consist of offices and storage space. This will cost €2,000 per
month.
Product gross
price 60 cent
€ 1 donation
to a relevant
patient group for
every unit sold
Overheads to
be deducted
from sales
Approx €3 will be
left over after all
relevant deductions
this will be used to
fund Research and
development
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 Equipment: Our equipment will be minimal as we are outsourcing production. Our only
physical requirements are basic office equipment consisting of computers, internet, phones,
photocopiers and printers. We have allocated €5,000 to cover these costs. In addition to this
we will pay €16,000 in January 2014 to cover the cost of our initial mould.
 Production facilities: We have outsourced production to a company located in China. There is
a minimum order of 15,000 units at a cost of €0.60 per unit. They will then ship the finished
product to us in Ireland.
 Communications facilities: Our only necessary communication facilities are internet access
and phone lines. Predominantly communication will be via emails due to some language
barriers.
 Suppliers: We will be sourcing the ABS plastic from an American supplier called Plastic
Design & Manufacturing. The ABS plastic raw materials will be forwarded from our
American supplier directly to our manufacturer. We think this will be smooth transaction
and expect this will be quick, convenient and hassle free production.
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8 FINANCIAL PROJECTIONS
8.1 Assumptions
8.1.1 Cashflow
Cash Sales
All sales of Keyzy will be paid on day of purchase through a payment facility of on our e-commerce
website. We have projected sales of 11,000 units of Keyzy during Year 1 with a steady growth in
sales each month as our product becomes well known. 20,000 units will be sold in Year 2 and 40,000
units will be sold in Year 3.
Term Loan
In Year 1, we will receive a long term loan of €25,000 with €12,500 being received in January and the
remaining €12,500 being received in May.
Other Income
The figure of €50,000 as additional cash inflow is derived through a €10,000 initial investment by
each employee as well as an additional €10,000 received from successful application to the Ustart
accelerator programme.
Donations
A key part of our marketing will be a €1 donation to a relevant patient group on each unit sold. Thus
for Year 1 a figure of €11,000 is included as a cash outflow. This figure is €20,000 in Year 2 and
€40,000 in Year 3.
Manufacturing
Manufacturing cost per unit is €0.60 based on a quote we received from PDM plastic design and
manufacturing. We will order 15,000 units in Year 1 in January to cover demand for the year at a total
cost of €9,000. 25,000 units will be purchased in Year 2 and 42,000 units will be purchased in Year 3.
Website
We have allocated €8,000 each year to cover website development and maintenance costs.
VAT
VAT is payable every third month on sales for the previous two months. VAT is calculated on 23% of
cash sales.
PRSI
Employer PRSI is calculated at 4.5% of wages paid each month.
Advertising
We have allocated €10,200 to cover advertising costs for the year. This cost includes Google
AdWords, search engine optimisation as well as a print media campaign in publications aimed at our
target market.
Capital Acquisitions
The figure of €21,000 includes a €16,000 payment in January for our initial plastic tooling mould as
well as €5,000 to purchase office equipment such as computers etc.
Rent
Rent of our office and storage space will be €2,000 per month as per a quotation on daft.ie for
headquarters in Blanchardstown.
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Rates
We have forecasted rates for telephone, electricity etc to be €150 per month.
8.1.2 Profit & Loss
Sales
Sales revenue is as per cashflow and is expected to grow each month.
Opening Stock
Opening stock for a month is equal to the closing stock for the previous month. We will have no
opening stock in January of Year 1.
Purchases
As described in the cashflow we will purchase €9,000 worth of stock in January to cover demand for
Year 1.
Closing Stock
Closing stock is calculated by our opening stock less stock sold for each month.
Gross Profit
Our gross profit is calculated by sales less the cost of sales. We expect to make a gross profit in Year
1 of €103,290. In Years 2 and 3 we expect to make a gross profit of €187,800 and €378,600
respectively.
Selling and distribution expenses
Selling and distribution expenses include advertising costs for the year and we expect them to total
€10,200 in Year 1, €20,000 in Year 2 and €35,000 in Year 3.
Administrative expenses
Administrative expenses include salaries, PRSI, VAT and website costs for the year. In Year 1
administration expenses will total €108,515, in Year 2 they will total €€137,594 and in Year 3 will
total €183,508
Other expenses
Other expenses include rent, rates and depreciation for the year.
Charitable donations
This expense has been explained in the cashflow notes.
Operating profit
Operating profit is calculated as the gross profit less all expenses. In Year 1 our operating profit is
expected to be a €53,925 loss. In Years 2 and 3 operating profit is expected to be €18,994 loss and
€90,892 respectively.
Interest
The interest expense is calculated on an interest of 4.8% per annum on our long term loan.
Taxation
For the purposes of this business plan and the fact that we are a small start up in Ireland we will be
exempt from corporation tax.
Net Profit
In Year 1 we expect to make a net loss of €53,925. We also expect to make a loss of €18,994 in Year
2 and to make a profit of €90,892 in Year 3.
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8.1.3 Balance Sheets
Our balance sheets are attached with the majority of figures relating to the P&L. VAT payable relates
to VAT costs incurred in November and December of the previous year which will be paid in January
of the following year. Accrued expenses relate to the interest payments that will be paid the year after
they are incurred.
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8.2 Cashflow
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8.3 Profit and Loss Accounts
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8.4 Balance Sheets
BalanceSheetasat31/12/2014BalanceSheetasat31/12/2015BalanceSheetasat31/12/2016
AssetsAssetsAssets
CurrentAssetsCurrentAssetsCurrentAssets
Cash5,864Cash6,229-Cash97,981
Inventory2,400Inventory1,200Inventory4,200
Totalcurrentassets8,264Totalcurrentassets5,029-Totalcurrentassets102,181
Fixed(Long-Term)AssetsFixed(Long-Term)AssetsFixed(Long-Term)Assets
Equipment21,000Equipment21,000Equipment21,000
Lessdepreciation500-Lessdepreciation1,000-Lessdepreciation1,500-
Totalfixedassets20,500Totalfixedassets20,000Totalfixedassets19,500
TotalAssets28,764TotalAssets14,971TotalAssets121,681
LiabilitiesandequityLiabilitiesandequityLiabilitiesandequity
CurrentLiabilitiesCurrentLiabilitiesCurrentLiabilities
VatPayable6,489VATPayable16,690VatPayable37,508
Accruedexpenses1,200Accruedexpenses1,200Accruedexpenses1,200
Totalcurrentliabilities7,689Totalcurrentliabilities17,890Totalcurrentliabilities38,708
Long-TermLiabilitiesLong-TermLiabilitiesLong-TermLiabilities
Longtermloan25,000Longtermloan20,000Longtermloan15,000
Totallongtermliabilities25,000Totallongtermliabilities20,000Totallongtermliabilities15,000
OwnersEquityOwnersEquityOwnersEquity
ShareCapital40,000ShareCapital40,000ShareCapital40,000
Capitalreserve10,000CapitalReserve10,000Capitalreserve10,000
Lossforyear53,925-RetainedEarnings72,919-RetainedEarnings17,973
Totalequity3,925-Totalequity22,919-Totalequity67,973
TotalLiabilitiesandequity28,764TotalLiabilitiesandequity14,971TotalLiabilitiesandequity121,681
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8.5 Breakeven
We have estimated fixed costs to come to a total of €132,040 for the year. These include interest,
salaries, donations, PRSI, website, rent, rates and advertising. Variable costs per unit amount to €0.60.
To break even we need to sell a total of 15,552 units in the year. In terms of Euro this amounts to
€155,368. We don’t expect to break even during the first year, this will happen in Year 3. A graph of
the breakeven analysis can be found above.
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9. SALES PIPELINE
This is our estimated sales and timeline for accomplishment. Size of deal is based on obtaining 0.1%
of those suffering from Parkinson’s disease and arthritis within that geographic market. Given these
conservative figures we are confident that these targets will be achieved by us within 5 years of
trading. We expect to exceed these targets early in year two as our brand image grows and the
business becomes more recognised within the market. We anticipate all of these objectives to be
achievable given that they have been based on a mere 0.1% of our target in each country.
Year
1
• Ireland & UK
11,000 units
Year
2
• Europe
20,000 Units
Year
3
• Europe
&America
40,000 Units
Year
5
• Worldwide
• 200,000 Units
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10. FUNDING REQUIREMENTS
We believe to fund our business to commence trade in January of 2014 we will require initial funding
of €75,000. The source of this funding and what it is required for are outlined below:
Sources:
 €40,000: Each employee in the company will contribute a total of €10,000 each as seed
capital, giving each a 25% equity stake in the business. This €40,000 will be initial seed
capital.
 €25,000: The company will receive a €25,000 bank loan in Year 1 which will be issued in two
payments during the year. We will receive €12,500 in January and a further €12,500 in May
to assist with cash flow.
 €10,000: The company will receive a further investment of capital through successful entry
into the Ustart accelerator programme run by DCU.
Required for:
 In January we will require an initial plastic tooling mould to produce Keyzy. This will cost
€16,000. Other equipment costs are expected to be €5,000 in January.
 Marketing costs are expected to be €10,200 in Year 1.
 Staff costs for the year will be €72,000 as each member of staff will take a salary of €18,000.
 Our initial stock in January will cost €9,000 for 15,000 units.
These requirements will be met through our initial funding and the sales revenue generated
throughout the year.
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11. PROMOTERS – CVS
Ronan Martin - CEO
Profile
I am an enthusiastic and creative DCU Marketing undergraduate, with relevant work experience of
marketing in the pharmaceutical industry and through college societies.
 Strong communication skills, capable of leading and enjoy working as part of a team
 Ambitious, assertive and possess an unyielding desire to succeed
 Adaptable and flexible; well-organised and adept at time-management
 High integrity and honesty; ethical and socially aware with volunteering experience
Education
2009 – 2013-BA Business Studies (Marketing)
Dublin City University, Dublin 9
 Received 1.1 in first year, 2.1 in 2nd
year and expecting an overall 2.1 in final year.
2003 – 2009-Leaving Certificate (520 points)
 Higher Level: Business Studies (A1), Accounting (A2), Economics (B1), Math (B1), English
(B2), French (B2)
Relevant Employment
2011 – 2012 Marketing Assistant, Lundbeck (Ireland) Ltd, Citywest, D24
• Supported the Territory Managers in all their activities, providing them with stocks of
promotional materials as required and sending materials directly to their customers.
• Involved in the creation and design of patient and HCP leave pieces and brand reminders.
This included creating and ordering new items, updating existing items and liaising with our
suppliers over the artwork and design.
• Assisted with the preparation of centrally organised meetings including the Lean On GP
series, the Lean On Me Pharmacy series and the National Memory Clinic Conference. My
role involved booking venues, sending invites and receiving replies and helping out on the
day with registration etc.
• Experienced two PR campaigns and photo calls during the year, the "It makes sense"
campaign which highlighted the significance of non-motor symptoms in the early detection of
PD and the Lean On Me live billboard event.
Sept 2010 – Dec 2010 Peer Tutor, Business Maths, DCU, Dublin 9
• A graduate tutor, another peer tutor and I facilitated these tutorials and helped the students
with any problems that they experienced with the course material.
• Assisted the graduate tutor with a class of approximately 30 students in revising the course
material for that week and answering questions from the worksheets.
Project Work and Experience
 Finalist in Accenture’s Leaders of Tomorrow competition (2012/13)
 Elected as Class Rep for the BS4 class of almost 200 students (2012/13)
 Organised and took part in a charity skydive in aid of Aware (2012)
 Overall highest grade in the BS class in 1st
Year (2010)
References Available on Request
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Paul Eglington – CFO
Profile
I am a focused and enthusiastic DCU Finance undergraduate, with relevant work experience of
Finance in the industry and through college societies.
 Strong numerical skills, confident analyst of financial data
 Determined and driven to succeed
 Hardworking and motivated many varied experience financial experience and interpersonal
skills.
Education
2009-Present BA in Business Studies Finance
Dublin City University
 Received a 2.1 grade for first year, 2.1 grade for second year and a 1.1 in Semester 1 of final
year.
2003-2009 Leaving Certificate (495 points)
 Accounting (C), Maths (B), English (B), German (B), Irish (B), Biology (A), Geography (B)
Relevant Employment
2011-2012 KPMG Financial Services Tax Department, Irish Financial Services Centre
 Responsible for the tax compliance work of a number of Irish and International companies.
 Dealing directly with clients in advising them on numerous issues.
 Correctly filing any correspondence from tax authorities and communicating with them on
behalf of clients.
 Worked effectively as part of a team in order to reach deadlines in a timely manner.
 Communicated effectively with management in dealing with urgent and unpredictable
matters.
2009-2011 Mocha Beans, Roselawn
 Responsible for ensuring correct cash in till at the end of each day.
 Handling pay-outs and recording daily transactions.
 Filing invoices and other such items from creditors.
Project Work
 Accenture “Leaders of Tomorrow” finalist
 KPMG university ambassador.
 Reached the semi-final of “The Apprentice Competition” in DCU as part of a team of four.
Skills
 Team Work: Worked on two teams in KPMG each with different clients and objectives.
 Communication: Building relationships with clients and communicating feedback and
reporting to management.
 Time Management: Effectively manage to balance university and extracurricular activities.
 IT Skills: Confident user of all Microsoft Office Applications, E-mail and Internet.
Interests
 Have a keen interest in all aspects of business, including finance, law, and economics, and
travelling.
 Member and captain of Castleknock Celtic football club.
References: Available on request.
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Ann Miggin - COO
Profile
I am a charismatic and genuine DCU Finance undergraduate, with relevant work experience of
Finance in the Insurance industry and through college societies.
 Great Interpersonal skills, ability to work in groups and lead and manage team.
 Goal orientated with strong ability to work to deadlines.
 Adaptive to changing environments; flexible and desire to self improve
Education
2009-Present BA in Business Studies (Finance)
Dublin City University
 Received a 2.1 grade for first year, 2.1 grade for second year and a 2.1 in Semester 1 of final
year.
2011-2012-Accredited Product Advisor of General Insurance (Level 7, UCD)
2003-2009 -Leaving Certificate (425 points)
 Higher: Business Studies (A2), Accounting (D), English (C2), Irish (C1), Geography (C1),
LCVP Distinction. Ordinary level: Maths (B1), German (B1).
Relevant Employment
2011-2012 Allianz Plc Household Underwriter
 Communicated directly with customers and brokers by phone and email, explaining the cover
in place on our various products, discussed other cover options and suitability. Processing of
proposal forms, Issued and endorsed policy documents using I90 software.
2011-To date Spar Shop Cashier/Supervisor
 First point of contact for customers at the till. Process cash/credit payments and money
transfers.
 Responsible for opening and closing of shop. Accountable for checking and placing orders.
 Manage staff by delegating tasks and ensuring adequately staffed for lunch cover etc.
2003-2011 Gaeltacht Summer Camps Ard Cinnire
 Communicated with Parents regarding any incidents or disputes Accountable for the care of
children and hiring suitable staff.
 Managed a team by constructing roster for hours. Structured kids timetable to ensure balance
of learning Irish, sport and culture and dancing.
Skills:
 IT skills: Proficient user of Microsoft Excel, Word, Power Point and Outlook.
 Managerial skills: Successfully organised timetables for children and supervised the team
and delegated work.
 Accuracy: Exhibited in Allianz setting up policies as it is vital all elements of proposals are
completed.
References
Available on request
Strictly Private & Confidential
2013
This document is the proprietary property of Summit Enterprises
Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 37
Fiachra Ó Ciardha - CMO
Profile
I am a driven and dedicated DCU Marketing undergraduate, with relevant work experience of
marketing and promotions within college societies.
 Creative and enthusiastic to achieve goals.
 Self driven and ambition to be successful.
 Flexible and Adaptive to turbulent and changing environments
Education and Qualifications
2009-Present BA in Business Studies
Dublin City University
 Received a 2.2 grade for first year, 2.2 grade for second year and a 2.1 in Semester 1 of final
year.
2003-2009 Leaving Certificate (425 points)
 Chemistry (B), Maths (B), English (B), French (B), Irish (B), Economics (B)
Work Experience
2011-2012 Enterprise Ireland Accounts Payable/Receivable
Assistant
 I have worked in the Finance department. My responsibilities included: calculating funds
coming in and out of the company; daily trial balances; customer interaction; preparing
payments to clients on a daily basis.
2009-2011 Retail Sales Advisor
 Responsible for ensuring the day to day running of TK Maxx, Zara & Next.
Project Work
 Accenture “Leaders of Tomorrow” finalist
 Secretary for Investment Society in DCU
 Reached the semi-final of “The Apprentice Competition” in DCU as part of a team of four.
Skills
Languages
 Basic written and spoken French and German. Competent at Irish.
Personal
 Strong oral and written communication skills
 From large family, appreciation of fruits of teamwork
 Achieved three All-Irelands in handball
 IT Skills Confident user of Prezi, Excel, Microsoft word and excellent typing skills.
Interests
 Playing football, broad interest of European football
 Reading: factual; broadening vocabulary
 Secretary of Investment Society in DCU
 Marketing: Advertising & Sponsorship
References
Available on request

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Keyzy Business Plan

  • 1. New Enterprise Development - EF317 Dr. Eric Clinton We hereby certify that this material which we now submit for assessment on the programme of study leading to the award of (BBS/EB) is entirely our own work, and has not been taken from the work of others, save, and to the extent that, such work has been cited and acknowledged within the text of our work. Signed: _______________________ ID No: ______________ Date: _________ Signed: _______________________ ID No: ______________ Date: _________ Signed: _______________________ ID No: ______________ Date: _________ Signed: _______________________ ID No: ______________ Date: _________ KEYZY BUSINESS PLAN Summit Enterprises – Team 40 Ronan Martin, Paul Eglington, Fiachra O’Ciardha and Ann Miggin A SADL that helps to guide keys into keyholes.
  • 2. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 1 Table of Contents 1. Executive Summary............................................................................................................................................4 2. Company Description.........................................................................................................................................5 2.1 Promoters, shareholders and Board.............................................................................................................5 2.2 Advisors ........................................................................................................................................................5 2.3 Products and services...................................................................................................................................5 2.3.1 Website...................................................................................................................................5 2.3.2 Distribution............................................................................................................................6 2.4 Long Term Aim of Business ..........................................................................................................................8 2.5 S.W.O.T. Analysis .........................................................................................................................................8 3. Market Analysis..................................................................................................................................................9 3.1 Target market ...............................................................................................................................................9 3.2 Total market valuation................................................................................................................................10 3.3 Targeted share............................................................................................................................................10 3.4 Market trends..............................................................................................................................................11 3.5 Profile of competitors .................................................................................................................................11 3.6 Blue Ocean Strategy ...................................................................................................................................11 3.7 Competitive advantage ...............................................................................................................................12 3.8 Benefits to clients........................................................................................................................................12 4. Print Media Campaign......................................................................................................................................13 5. Marketing Strategy ...........................................................................................................................................16 5.1 Marketing Strategy .....................................................................................................................................16 5.2 Sales Strategy .............................................................................................................................................16 5.3 Pricing ........................................................................................................................................................17 5.3.1 Manufacturing Costs............................................................................................................17 5.3.2 Competitors Pricing.............................................................................................................18 5.4 Advertising and Promotion.........................................................................................................................18 5.4.1 Print Media Campaign.........................................................................................................18 5.4.2 Public relations....................................................................................................................19 5.4.3 Online Marketing.................................................................................................................19 5.4.4 Word of mouth......................................................................................................................19 6. Research & Development.................................................................................................................................20 6.1 Research and Development ........................................................................................................................20 6.2 Team/Department structure........................................................................................................................20 6.4 Methodology...............................................................................................................................................20 6.5 Milestones to be achieved...........................................................................................................................20 6.6 Technical Partners......................................................................................................................................21 6.7 Patents and Brands.....................................................................................................................................21
  • 3. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 2 7. Staffing and Operations....................................................................................................................................22 7.1 Management Organisation Chart...............................................................................................................22 7.2 Staffing........................................................................................................................................................23 7.3 Training Plans ............................................................................................................................................23 7.4 Operations ..................................................................................................................................................23 8 Financial Projections .........................................................................................................................................25 8.1 Assumptions................................................................................................................................................25 8.1.1 Cashflow ..............................................................................................................................25 8.1.2 Profit & Loss........................................................................................................................26 8.1.3 Balance Sheets .....................................................................................................................27 8.2 Cashflow.....................................................................................................................................................28 8.3 Profit and Loss Accounts............................................................................................................................29 8.4 Balance Sheets............................................................................................................................................30 8.5 Breakeven ...................................................................................................................................................31 9. Sales Pipeline....................................................................................................................................................32 10. Funding Requirements....................................................................................................................................33 11. Promoters – CVs.............................................................................................................................................34 Ronan Martin - CEO ........................................................................................................................................34 Paul Eglington – CFO......................................................................................................................................35 Ann Miggin - COO ...........................................................................................................................................36 Fiachra Ó Ciardha - CMO...............................................................................................................................37
  • 4. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 3 Confidentiality Agreement The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of Summit Enterprises. It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than information that is in the public domain through other means, and that any disclosure or use of this confidential information by the reader may cause serious harm or damage to Summit Enterprises. Upon request, this document is to be immediately returned to Ronan Martin, CEO. ___________________________ Signature ___________________________ Name (printed) ___________________________ Date This is a business plan. It does not imply offering of securities.
  • 5. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 4 1. EXECUTIVE SUMMARY Summit Enterprises is made up of Ronan Martin, Paul Eglington, Fiachra Ó’Ciardha and Ann Miggin. We have prepared this business plan as we have developed an innovative new product. Using this document we will apply for a grant from Enterprise Ireland. The business plan will go into further detail with regards the product itself, our organization, the marketing of the product and the financial projections. Our product is Keyzy, a unique device that allows the user to quickly and accurately guide their key into the keyhole. Keyzy is useful for those living with Parkinson’s disease, arthritis and a broad range of other ailments. This product helps the user to maintain confidence in their own abilities by enabling them to live independently. Section 2 details the product specifications and our business model. In Section 3 our target market is analysed. The target market for Keyzy is substantial; there are currently 135,000 living with Parkinson’s disease and 11 million living with Arthritis in Ireland and the UK. There are currently 1.2 million people living with Parkinson’s disease and 15 million living with arthritis in Europe. There are currently 6.3 million people living with Parkinson’s disease and 140 million living with arthritis worldwide. There is nothing like Keyzy that exists in the current market. Our print media campaign summary is included in Section 4, along with the 5 advertisements. In Section 5, our marketing plan is further explained. This includes the sales strategy, pricing and promotional campaigns. In Section 6, we go into further detail into our plans for further research and development of other products to build a sustainable business. Our target milestones are broken down per year, and patents and our brand are also discussed. The management team is delegated as follows: Ronan is our Chief Executive Officer, Paul is our Chief Financial Officer, Fiachra is our Chief Marketing Officer and Ann is our Chief Operations Officer. A full overview of our organizational structure is found in Section 7. In Section 8, we have prepared cash flows, profit and loss accounts and balance sheets for years 1-3. These accounts represent realistic projections of our financial situation going forward. They indicate that we can build a sustainable business, as by Year 3 we will be generating a profit. To achieve this, we will require initial funding of €75,000. This is further detailed in section 10. Year 1 Year 2 Year 3 Sales 11,000 20,000 40,000 Exports 7,000 (UK) 16,000 (Europe) 38,000 (EU & US) Net Profit before Tax (53,925) (18,994) 90,892 Investment 75,000 - - Employment 4 persons 4 persons 4 persons
  • 6. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 5 2. COMPANY DESCRIPTION 2.1 Promoters, shareholders and Board The shareholders of Keyzy will be Ronan, Fiachra, Paul and Ann. Each person will hold a 25% share of the business. Ronan will act as CEO; his role will involve overlooking the business as a whole. The other three will report any issues back to him. As marketing director, Fiachra will be in charge of the promotion of our product. As Finance Director, Paul will prepare the necessary accounts on day to day basis for the organization. As Operations Officer, Ann will be in charge of the day to day running of the warehouse where Keyzy will be stocked and with regards the outsourcing. 2.2 Advisors Tony Carroll, who is the advocacy manager of the Silver Stream nursing home range, found Keyzy to be a useful product and one that would be beneficial to those suffering with mobility motor skills. He declared his interest in the product to such an extent that he would implement Keyzy in the 6 nursing homes on a trial basis. Karen O’Regan, who is an executive for Accenture was also interested in Keyzy. She gave us her contact details to help arrange meetings with John Whelan, who would help us with the production of Keyzy. John Whelan is the Managing Director of Seniors At Home, a personal security system for older adults living alone that lets their family and friends know that they are OK or that they are in need of assistance. 2.3 Products and services Keyzy is an innovative device that allows the user to quickly and accurately guide their key directly into a keyhole. The idea for Keyzy originated when Ronan was working in Lundbeck, a pharmaceutical company, who work on many Parkinson’s related products. The patients emphasised their preference for solutions that weren't based on medication. We then looked into this area and decided to focus on simply aids to daily living. We looked at simply opening a door and the difficulties that one could face with health difficulties. This is where the idea for Keyzy stemmed from. As can be seen below, Keyzy is a small device that can be positioned over the keyhole of a standard domestic door. The functionality of the device is that there will be two guides either side of the keyhole which will guide the key to a position directly above the keyhole. At this point the user just needs to push the key into the keyhole as normal and the device will allow for the swivel mechanism of the lock to function. For use during the night or in poorly lit areas, the device will have strips of a phosphorescent (glow in the dark) material attached to either side of the guides to aid the user in such circumstances. This demonstrates how it may be useful for almost any individual (e.g. if they don’t have a porch light, arrive home late at night, in a rush etc.). The unique selling point for Keyzy is that we will donate €1 of every unit sold to a relevant patient group. We feel that customers will be more proactive when they see 10% being contributed to a non for profit organization, which supports them. The advantage of Keyzy to customers is that it will allow easier and quicker access to opening a door, ultimately promoting independent living. Introducing Keyzy is a stepping stone towards encouraging independent living as a choice for everyone. 2.3.1 Website Our website is essential to the business process and will be our main distribution channel. This will allow us to serve multiple international markets from a very early stage. The main functionality of the website will be to process orders for Keyzy and to securely accept payment as well as providing information on the device as and customer service support through e-mail. We will require a built-in
  • 7. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 6 Content Management System to allow us to change content ourselves, full Search Engine Optimisation, PHP and MySQL integration and complete HTTPS/SSL support for security. We have received an estimate of between €3,000 and €9,000 for the development of a site that will meet our requirements; we will include €8,000 in the budget to cover this. The site development should take no longer than 4 months and will be ready in time for a prospective product launch in 2014. Hosting costs will be $60 per year and to purchase the domain name KeyzyOnline.com (which as of 11/12/2012 is available) will be $9.99 for the first year (GoDaddy.com). 2.3.2 Distribution Our stock will be stored in our warehouse adjoining our office space. At this stage we have found appropriate premises in Blanchardstown; however the location for this will be decided at a later date. From here, we can send out the device to customers who have ordered it through our online shop. Please see below for our Process Flow Map. The devices will be individually packaged when sent from the manufacturing company to Dublin. We will insert this plus a product and company information leaflet into a small padded envelope which will be sent to our customers. Postage and packaging costs for this device will be approximately €2.40 for ROI and Northern Ireland, and €3.00 for Great Britain, Europe and Rest of World. The main disadvantage with our product is that at this point we do not have any arrangements made with the HSE, which would be vital for Keyzy with regards the HSE promoting Keyzy. We believe that we can overcome this and build positive relationships with them by visiting with them explaining the product and demonstrating how it can be implemented easily nationwide. Key developments for Keyzy in the future will be acquiring a patent to ensure of its safety. It is vital that we ensure Keyzy is tested by the relevant authorities to establish it is medically fit to be used.
  • 8. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 7
  • 9. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 8 2.4 Long Term Aim of Business As we believe that independent living should be attainable for everyone, regardless of age or ability, our mission is to become a global leader in mobility products by developing innovative solutions to everyday problems. 2.5 S.W.O.T. Analysis
  • 10. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 9 3. MARKET ANALYSIS 3.1 Target market We aim to supply our product to those who suffer from Parkinson’s disease, arthritis and other ailments, as well as the elderly in general. With regards the Irish and UK markets, there are 135,000 people living with Parkinson’s disease and 11 million people living with Arthritis. The end user of our product is unlikely to be the purchaser of the product. We envisage our customers will be close relatives of the end users who can see them struggle with this task. There is a growing elderly population globally which results in growth in the market for age related products. Conditions such as Parkinson’s disease and arthritis are most prevalent in the older age groups and the risk of being diagnosed increases with age. Provided that the customers have seen someone they know struggle with this, it will be a rather quick decision making process. The price will not be one of the key decision making factors because a premium price is expected due to the perceived level of benefit attached to the product. It is a value added product and could potentially be an impulse buy for younger persons. Our target market size in Ireland and United Kingdom is already quite large and it will keep growing – the graphs below show the ageing Irish population. This exponential growth expected within our target market means we are targeting an age group which will ensure our future sustainability. While the sex of a person is not a primary concern within our target, there are substantially more women than men in this age group. This means we must ensure that women find our product both useful and aesthetically pleasing. Other demographic factors such as social class, religion and marital status are not relevant to our target market and will have no bearing on sales.
  • 11. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 10 Source: Central Statistics Office 3.2 Total market valuation Within the UK and Irish markets, there are 135,000 people living with Parkinson’s disease and 11 million people living with Arthritis. When we expand to Europe, these numbers increase to 1.2 million for Parkinson’s disease and 15 million for Arthritis. Worldwide, we will be dealing with 6.3 million people living with Parkinson’s disease and 140 million living with Arthritis. Other potential markets include people who have suffered a stroke, who are living with learning disabilities, cerebral palsy, neuropathy and other neurological conditions, and the elderly in general. 3.3 Targeted share Our target share for year 1 is 0.1% of the Irish and UK markets. This accumulates to 11,000 units sold. This sales target is based on our investment of €10,200 in advertising, in addition to our other promotional campaign as outlined in section 5.4. We believe 0.1% is a conservative number based on the fact that our product will be useful to a wide range of users not just those living with the condition.
  • 12. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 11 3.4 Market trends People are living longer due to advancements in health. This correlates to a larger market for Keyzy. The tendency for elderly people living at home rather than nursing homes is increasing. As this tendency increases, the elderly will be looking for products like Keyzy to implement in the home to enable independent living. Political: Unlike pharmaceuticals for example, we will not require reimbursement for this device so the HSE will have minimal influence on us. This may change if we were to get a lucrative contract with them to supply public nursing homes, home-help assistants etc. The product itself will be made from widely available non-toxic plastic so we should not face any legislative issues. Economic: The global economic crisis has resulted in consumer spending declining considerably. We believe that the perception of the benefits our product provides outweighs the cost and so the economic climate will have a lesser impact. The requirements for a successful loan application have become stricter in recent years. Our trading risk is minor within the Eurozone and we can be relatively confident about costs and price transparency. However as the UK still use Sterling this may cause exchange rate fluctuations to negatively impact our bottom line. Social: Longer life expectancies and an aging population results in the elderly population retaining their independence for longer. This is set to increase, and Keyzy fits in perfectly with this emerging mind-set. Technological: Advancements such as electronic keypads have the potential to take market share from Keyzy. However these devices are quite a distance from being mainstream products in a domestic setting and it is not something that is of immediate concern. 3.5 Profile of competitors Competitors Collins Care Mobility Products would be our closest competitor. Their product range includes many items that would be beneficial to our target market for example, for people suffering from Parkinson’s -“Good Grips weighted cutlery”. The cutlery is specifically aimed at those with tremors and provides extra weight. Irish competitors, Mobility Online and Murray’s i.e. provide a range of products from walking aids down to smaller items like key turners. Access Mobility Products and Caregiver Products are global competitors who stock products for a similar market. Substitute Products While there are numerous existing competitors in the mobility aids market, their focus appears to be on bigger products mainly stair lifts/ramps etc. At present there are two products, the “Cheekey” and “Keyturner”, which would be substitutes to Keyzy. However these products allow for better grip to the key, while Keyzy focuses on alleviating the potential trouble of entering your key into the keyhole. A brief company profile of our closest substitute can be seen below. Company Name Annual Turnover Profit Margin Company Size Chimerics Ltd (Cheekey) £11,238 £5,606 2 shareholders. 3.6 Blue Ocean Strategy As we are the only company that is solving this problem in this particular way, it allows us to develop a Blue Ocean Strategy to maximize the market potential. Our four differentiating strategies can be seen below, along with a strategy canvas showing how our strategy compares with the aforementioned substitutes.
  • 13. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 12 Eliminating: We will not need and a bricks & mortar outlet as we intend to sell online. We will not incur the cost associated with running a shop and so we eliminate this cost. Reducing: We will limit our employees to the four founding members. This will reduce our costs and doesn’t take away from the value offered to the customer. Raise: Competitor products are generally not aesthetically pleasing. Keyzy will have a paintable finish which will blend in with any door. We have implemented this due to feedback from the focus groups. Create: Our product itself is innovative and has never been offered in this industry before, and this is how we are creating value for the customer. 3.7 Competitive advantage Keyzy is a unique and simple device which is easy to set up and implement. Its phosphorescent strips and channeling guides make it easy for the user to get their key into the keyhole. Regarding price, we will sell each product for €9.99 plus postage and packaging. This gives us a substantial margin which will enable us to reinvest in research and development of new, more technical, products to build our portfolio. A key element to our pricing is that we will donate €1 from every unit sold to a relevant patient group such as the Parkinson’s Association Ireland. We believe this is an effective strategy and one that will give us a significant competitive advantage, as the customer will be more proactive when they see 10% being contributed to a not-for-profit organization which supports them. We believe that donating to the patient groups is essential to becoming a successful and socially responsible business. 3.8 Benefits to clients We will also be developing agreements with retail outlets to stock Keyzy, as we see this as another key route to market. Potential stockists for Keyzy could be Woodies DIY, Homebase and B&Q, as these companies now have sections for mobility products in their stores. By stocking Keyzy, this will increase their range of mobility products, offering more value to their customers.
  • 14. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 13 4. PRINT MEDIA CAMPAIGN For our print media campaign, we have developed five advertisements each of which focus on one of the five key characteristics of our product – accuracy, freedom, simplicity, confidence and speed. Each advertisement has a different striking image which symbolizes one of our product benefits, under which we have explicitly included the benefit combined with our tagline of ‘Independence is Key’. This is a technique widely used in advertising in the pharmaceutical industry, for example the Lexapro “Russian Doll”. Using powerful, symbolic imagery in this way allows us to accentuate the benefits of Keyzy for the user. There are five advertisements in total, three A4 portrait advertisements and two A3 landscape advertisements which can be spread over two A4 pages in magazines. Please see the five images included overleaf. As well as the metaphorical image, each advert also has a description of the product, a link to our e-commerce website, links to our Twitter page to facilitate customer relations and the Keyzy brand logo. We will release all adverts at the same time as part of an intensive promotional campaign starting in January 2014. These adverts will be included in the magazines and newsletters of the relevant patient groups – Parkinson’s Association of Ireland, Age Action Ireland, Arthritis Ireland etc. This will ensure our marketing communications is focused on our target market and avoid wasting valuable resources on more general media. In addition, it will be yet another method of supporting the patient groups which is essential to our business. This strategy is detailed further in the next section on promotion. All images used are either original media or open sourced images, free to use for commercial purposes.
  • 15. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 14
  • 16. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 15
  • 17. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 16 5. MARKETING STRATEGY 5.1 Marketing Strategy The marketing strategy will be carried out by our Chief Marketing Officer, Fiachra O’Ciardha. His role is solely focused on marketing our product, and therefore he will ensure that we reach our marketing objectives. Both Fiachra and our CEO, Ronan Martin, have backgrounds in marketing and this will provide us with the necessary expertise. At first, we will primarily target the Parkinson’s disease and arthritis segments of our overall potential market. These segments are easily definable and will get the full benefit from our product. They are also readily accessible through their relevant patient group which makes marketing to them less resource intensive. These segments represent a modest share of our total market, and therefore are the perfect segments to target during the launch phases of Keyzy. As Keyzy starts to generate revenue, this will allow us to invest more heavily in promotional activity and enable us to attack further segments such as stroke victims, people with learning disabilities and the elderly in general. This will be conducted in moderation as it will stretch our resources and take attention away from our primary markets of Parkinson’s disease and arthritis. However it is important to note that these segments are not mutually exclusive as conditions such as PD and arthritis are most prevalent in the older age groups. As Keyzy is a new innovation in SADL’s (simple aids to daily living) it should not prove difficult to differentiate it from the substitute products out there. Keyzy has a number of characteristics that will enable us to do this. First of all, we will not market Keyzy as a medical device, or a device that is for people with a particular medical condition. This will reduce the stigma associated with this type of product and position Keyzy as an everyday device that is useful for everyone. Secondly, we have branded Keyzy in a similar way that other everyday consumer goods are branded. Substitute products do not have strong brand associations, and this will provide a competitive advantage for us. Our marketing efforts will emphasize five key characteristics of Keyzy as mentioned before - accuracy, freedom, simplicity, confidence and speed. These benefits speak directly to our end user, and to the potential customer of a relative, carer etc. Accuracy, simplicity and speed are product benefits which convey explicitly how Keyzy helps. Freedom and confidence are the emotional benefits to the user made possible by the product benefits. We have been in contact with Tony Carroll, the advocacy manager for a chain of nursing homes in north Dublin. He is very enthusiastic about the introduction of Keyzy and has offered us his help and providing us with contacts in the industry. One such contact is Maurice Gueret of the Irish Medical Directory. Having adverts for Keyzy in this publication would be invaluable as it is the main resource used by all stakeholders in the health sector from Healthcare Professionals to pharmaceutical sales reps to patient groups. 5.2 Sales Strategy Initially, our main point of sale for Keyzy will be through our e-commerce website. This means that we must invest heavily into the website at first, but over the long-term it will be very cost efficient. We have budgeted €8,000 for website development in Year 1. This will allow us to comfortably serve the entire Irish and UK markets in Year 1 as planned, and expand into overseas markets very quickly. It also means that the distribution chain is completely disintermediated and we can sell directly to the customers, and therefore benefit from the entirety of the large margin. We can also retain full control over the positioning of the Keyzy brand and ensure that the key brand messages do not get lost in the same way that happens to other SADL devices. As the device and packaging is quite small, and lightweight it makes it a perfect candidate for the worldwide distribution that the website facilitates. Developing relationships with the patient groups is vital to our business
  • 18. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 17 model and being able to satisfy their demand directly, in a timely manner, and will help us to keep these relationships positive. In addition to the website we will develop agreements directly with homecare retail chains such as B&Q, Woodies DIY etc. While this will mean that our margin is reduced, it will allow us to increase sales substantially and penetrate the market at a much quicker rate. It will also open Keyzys scope up to a more general audience that would benefit from our product, not just healthcare. 5.3 Pricing The sole income source of our business will come from retailing Keyzy through our e-commerce website and from wholesaling Keyzy to homecare stores and other retail outlets. Keyzy will be retailed at €9.99 plus postage and packaging to the customer. We are pursuing a value based pricing strategy as demand for our product is inelastic due to the perceived benefits to quality of life. This high margin will enable us to reinvest in research and development of new, more technical, products to build our portfolio. As stated before, a key element to our pricing is that we will donate €1 from every unit sold to a relevant patient group such as the Parkinson’s Association Ireland. We believe this is an effective strategy, as the customer will be more proactive when they see 10% being contributed to a not-for- profit organisation which supports them. Our target market has a lot of spending power as declared revenues of the over 65s in Ireland is €6.6 billion, and in the EU 75% of the wealth is held by the over 50s. 5.3.1 Manufacturing Costs We have received a quote for the design based on manufacturing 15,000 units to cover expected demand in Year 1. We were presented with two options for construction material - glass filled nylon and impact resistant ABS. We decided to go with ABS due to feedback from our focus groups over the ability to paint the device to fit in with the colour of the door. This is possible with ABS, also it is the cheaper option and it’s thermally stable. Initial Tooling costs will be approximately $22,967 and manufacturing costs per unit will be approximately $0.6391. This includes assembly of the finished device including the addition of adhesive and magnetic strips. The magnetic strips will be Ferrite magnets with a pull of 200 grams. The cost of the 3 magnetic strips per unit is €0.00125. The strips of adhesive are double-sided foam, high tack rubber resin adhesive. The cost of 3 strips of adhesive per unit is £0.000126. We have received an estimate of $0.07907 per unit (2 strips), (plus delivery of $121.50 to PDM) for strips of luminance PVC-4 to be included with the mold. We will have to source the magnetic, adhesive and phosphorescent strips separately as the manufacturing company generally does not supply these. However they will apply these to the finished device during the manufacturing stage at no extra cost. From a final design stage, it generally takes 3 to 4 months to get a tool back which will need to be approved. After that, depending on shop time they can get in-house samples done for us in a week. From there, a realistic turnaround on production can be estimated, based on quantity ordered. We could not yet estimate a cost for delivery to our warehouse in Dublin, but we have noted that we will incur an export fee and have to deal with international customs paperwork.
  • 19. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 18 5.3.2 Competitors Pricing While there are no direct competitors for Keyzy, there are two substitute products, Cheekey and Keyturner. The price of Keyturner is £5.99, which is approximately €7.10 and Cheekey is priced at £2.69 which is approximately €3.20. There is not a huge level of competition aside from the products mentioned, there is also little innovation in the industry and so we will continuously develop Keyzy and other related products to increase market share. In our market the buyer is a price taker as the total market is large and there are not many alternative products. However if we fail to hit our sales targets in the first two quarters, and we attribute this to Keyzy being overpriced, we will drop the price to €5.99 in order to stimulate demand. 5.4 Advertising and Promotion 5.4.1 Print Media Campaign As stated previously during the initial launch phase of Keyzy, we will run a print advertising campaign in the magazines and newsletters published by the Parkinson’s Association of Ireland, Age Action Ireland, Arthritis Ireland, and Parkinson’s UK etc. This will be comprised of the 5 adverts included in the previous section. These publications have high readership rates amongst our target market and will facilitate a focused marketing push. As we make a donation to these groups based per unit sold, we are confident that they will help us during the difficult launch phase by offering ad space free of charge or at a reduced rate. This will be our marketing strategy during the first 6 months after launch and it will be reviewed on a half-yearly basis to evaluate its effectiveness. We are confident that they will actively promote our product given our loyalty and support to their groups.
  • 20. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 19 5.4.2 Public relations As part of our launch promotions, we plan to develop a PR campaign in conjunction with the Parkinson’s Association of Ireland and Lundbeck (Ireland) Ltd. We envisage that this will be a relatively standard photo-call event in order to generate buzz for the product in the Irish media, support our other launch activities and improve public perception for all involved. As Ronan worked in Lundbeck last year, we are confident that his contacts there will ensure this campaign will be developed. 5.4.3 Online Marketing As our website will be our main point of sale initially, online marketing is a fundamental aspect of our promotional campaign. Our online promotions will be comprised of two elements - Google Adwords & advanced Search Engine Optimisation for the website. This will enable potential customers, who are actively searching in this area, to easily find our product online and link them directly to our website. We will budget €10,200 for our Google Adwords campaign, and the service is designed so that we will not exceed this limit. This will be sufficient to reach our target sales of 11,000 units in Year 1, when combined with our other promotional strategies. When we are developing our website, integrating advanced SEO will be one of our priorities. This has a higher sales conversion rate as customers don’t feel like they are ‘being sold’ a product. While this requires investment early on, it becomes far more cost efficient over the long term when compared to advertising. 5.4.4 Word of mouth We will aim to get endorsements for Keyzy from key opinion leaders in this area and from satisfied customers. This will help us to promote word of mouth for our product, and having fully satisfied customers is essential for this. Furthermore, dissatisfied customers can spread negative word of mouth, and this must be avoided. Included in our advertisements is our Twitter handle and a ‘hashtag’ so current and potential customers, and others, can ‘join the conversation’ on Twitter. We see this as being an avenue to promote our product, complementary services, useful information and links and also provide customer services. Customer interaction on Twitter is an immediate, transparent method to ensure we doing all we can to help our customers. It also allows current and potential customers to interact and provide ‘word of mouse’ for Keyzy.
  • 21. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 20 6. RESEARCH & DEVELOPMENT 6.1 Research and Development Keyzy is designed so that ‘one size fits all’. This is essential to our business model as it will allow us expand at a fast rate. While this is appropriate for the majority of standard keyholes, there are certain designs which are not compatible with Keyzy. To address this, we will develop variations of the original Keyzy design so that the most common of incompatible keyholes will be catered for. In Year 3, we will develop a lock with the Keyzy functionality integrated into the design. This will have many advantages to our product offering such as increased durability and convenience to the user. Due to the more complicated design we will also be able to charge a more premium price for this product. This strategy will cannibalise our current Keyzy product and so it will be important to distinguish the original Keyzy as the mobile version of the device for our target market. We may choose to produce in a variety of different colors and finishes in order to provide more choice to consumers. Keyzy is made from ABS plastic which is paintable, but we can also expand the range to offer wooden and metallic finishes to improve customer choice. We intend to produce new products aimed at visual and physically impaired persons to aid their mobility and accessibility. These will be centered on ideas in the technology sector to help people when using touchscreens, keyboards etc. As a computer literate generation grows older, where these conditions are most prevalent, there will be a need for these products in the future. New products will typically be methods of easing ADL’s for those living with particular difficulties, helping them to maintain their independence. 6.2 Team/Department structure Our Chief Operations Officer, Ann Miggin, will oversee the implementation of our future product development plans. Research and development will be outsourced to an engineering firm that specializes in the medical device industry. 6.4 Methodology As mentioned above, we will outsource research and development of our product range and our COO will ensure objectives are met. This is the most cost effective solution for us, as internally we will be focusing on business development opportunities. 6.5 Milestones to be achieved In Year 1, we will concentrate on the sales and marketing of the original Keyzy in order to build up enough resources to properly invest in future R&D. In Year 2, we will develop variations of Keyzy, in order to satisfy demand for more obscure keyholes. We will be able to use the feedback from customers in our first year of trading as a basis for our market research. We will also start to shift our focus to technology accessibility products in Year 2, as mentioned above. In Year 3, we will launch the Keyzy integrated lock on to the market. At this stage the design of the original Keyzy will be optimized and we will start to market it as the ‘mobile’ Keyzy. We also intend to have 4 new technology products developed to an advanced stage. In Year 4, we should have at least 1 of the technology products ready to launch which will increase our portfolio to 3 products. Investment into continuous R&D will be increased substantially this year. In Year 5, we should be able to launch another 2 products which will bring our portfolio to 5.
  • 22. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 21 6.6 Technical Partners We will source all our magnetic strips, adhesive strips and phosphorescent strips to Dalian Engineering (USA). They will deliver them to our manufacturer, Plastic Design & Manufactuuring. Our manufacturer will be producing the product and attaching all the components to the product. Product packaging is also included in their service. They will distribute the finished product directly to our unit in Blanchardstown. Other key partners will be the website development firm and R&D firm which we will contract to carry out those functions. 6.7 Patents and Brands We will be applying for Intellectual Property rights as soon as possible. This can be a long and costly process, and there is no guarantee that we will succeed. As this will make us vulnerable to competitors, we have developed our business model to raise barriers to entry. As described before, the unique aspect of our business model is that we will donate €1.00 of every unit sold to a relevant patient group such as Age Action Ireland or Parkinson’s Association of Ireland. This will enable us to build strong relationships with the groups that have direct access to our target market. This will make it very difficult for competitors to market a similar product as we will have the support of the patients groups. The Keyzy brand is designed to appeal to the consumer market. A white background is used to indicate pureness and cleanliness, and is commonly used in medical marketing for this purpose. The word Keyzy and the silhouette of the seagull are in black to indicate strength and confidence. The brand is punctuated with orange which indicates creativity and freedom. The image of the seagull also symbolizes freedom and the unlocked padlock that it is carrying relates directly to our product offering. Our tagline, “Independence is Key”, promotes the emotional benefits of Keyzy to the user. Consumers don’t buy product features, they buy product benefits, and our tagline is designed to emphasize this. When we were developing the brand, we used the concept introduced by Simon Sinek as our inspiration – “People don’t buy what you, they buy why you do it” (How great leaders inspire action, TED.com).
  • 23. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 22 7. STAFFING AND OPERATIONS 7.1 Management Organisation Chart Our firm size will be small with four members of staff for the first year. We will be fulfilling all four roles within the organization as outlined above, and will outsource IT. Our organisational structure takes a functional format as it is most suited to our product offering (Low technology, Mass production) and small firm size (unlikely to recruit more than one or 2 persons within the first three years of trading). Our strategy is focus differentiation. It is a niche market and we have no existing direct competitors. Ronan is our Chief Executive Officer. Ronan has worked in the pharmaceutical industry, having worked with Lundbeck, where they have worked on Parkinson’s disease related products. He is currently class representative of the Business Studies course and Public Relations Officer of the Investment Society. All managers will be reporting back any issues or potential problems to him. Ronan is specialising in marketing and thus will have a great scope of the operations. We are confident that he is the ideal leader for our Keyzy product. Fiachra is our Chief Marketing Officer. He is currently specialising in marketing. Having worked for Enterprise Ireland, he will be able to advise the team on any aspects with regards exporting. His main roles will involve executing advertising campaigns and monitoring sales in conjunction with these campaigns. In the 1st year the main priority will be building market awareness of our product. Paul is our Chief Finance Officer. Paul has experience in the finance sector, having worked for KPMG’s tax and finance department. He is the ideal candidate for this role. Paul will be responsible for preparing the necessary accounts of the business. Chief Financial Officer Paul Chief Operations Officer Ann Chief Marketing Officer Fiachra
  • 24. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 23 Ann is our Chief Operations Officer. Her main responsibilities will include; overlooking the production level, sourcing raw materials, securing supplies and monitoring the distribution of the product. She has experience in this sector, having organised and managed activities in the Gaeltacht. This role involves strong communications skills which she has experience in, having worked in the customer service department of Allianz. 7.2 Staffing We will not be hiring anybody during the first three years of operations. We have identified IT as a potential skills gap, however as stated previously we have planned to outsource this role. As our operations grow in year four and five there may be a need to hire additional staff to assist in the running of our business. 7.3 Training Plans Ann will complete a Masters Degree in E-commerce. This will help further build her skills to optimize the online side of our business. Paul will begin studying tax and will complete the ACA qualifications. This will allow him to analyse our tax liability and enable us to avail of better taxing methods to suit our firm. Fiachra will complete the Masters Marketing Degree in DCU. This will provide him with greater insight into subject itself, which will help improve this aspect of the business. Ronan will undertake the MBA programme in DCU. This will improve his leadership abilities and help guide the company to achieve its goals over the next five years. Continuous up-skilling is essential to ensure we have the necessary skills to grow s sustainable business. Over the first three years we will allocate funds to invest in this further training of staff which will begin in year 4. 7.4 Operations An outline of the physical needs of the company can be found below:  Premises: We will secure premises in Blanchardstown which will solely be used to hold stock prior to distribution. It will consist of offices and storage space. This will cost €2,000 per month. Product gross price 60 cent € 1 donation to a relevant patient group for every unit sold Overheads to be deducted from sales Approx €3 will be left over after all relevant deductions this will be used to fund Research and development
  • 25. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 24  Equipment: Our equipment will be minimal as we are outsourcing production. Our only physical requirements are basic office equipment consisting of computers, internet, phones, photocopiers and printers. We have allocated €5,000 to cover these costs. In addition to this we will pay €16,000 in January 2014 to cover the cost of our initial mould.  Production facilities: We have outsourced production to a company located in China. There is a minimum order of 15,000 units at a cost of €0.60 per unit. They will then ship the finished product to us in Ireland.  Communications facilities: Our only necessary communication facilities are internet access and phone lines. Predominantly communication will be via emails due to some language barriers.  Suppliers: We will be sourcing the ABS plastic from an American supplier called Plastic Design & Manufacturing. The ABS plastic raw materials will be forwarded from our American supplier directly to our manufacturer. We think this will be smooth transaction and expect this will be quick, convenient and hassle free production.
  • 26. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 25 8 FINANCIAL PROJECTIONS 8.1 Assumptions 8.1.1 Cashflow Cash Sales All sales of Keyzy will be paid on day of purchase through a payment facility of on our e-commerce website. We have projected sales of 11,000 units of Keyzy during Year 1 with a steady growth in sales each month as our product becomes well known. 20,000 units will be sold in Year 2 and 40,000 units will be sold in Year 3. Term Loan In Year 1, we will receive a long term loan of €25,000 with €12,500 being received in January and the remaining €12,500 being received in May. Other Income The figure of €50,000 as additional cash inflow is derived through a €10,000 initial investment by each employee as well as an additional €10,000 received from successful application to the Ustart accelerator programme. Donations A key part of our marketing will be a €1 donation to a relevant patient group on each unit sold. Thus for Year 1 a figure of €11,000 is included as a cash outflow. This figure is €20,000 in Year 2 and €40,000 in Year 3. Manufacturing Manufacturing cost per unit is €0.60 based on a quote we received from PDM plastic design and manufacturing. We will order 15,000 units in Year 1 in January to cover demand for the year at a total cost of €9,000. 25,000 units will be purchased in Year 2 and 42,000 units will be purchased in Year 3. Website We have allocated €8,000 each year to cover website development and maintenance costs. VAT VAT is payable every third month on sales for the previous two months. VAT is calculated on 23% of cash sales. PRSI Employer PRSI is calculated at 4.5% of wages paid each month. Advertising We have allocated €10,200 to cover advertising costs for the year. This cost includes Google AdWords, search engine optimisation as well as a print media campaign in publications aimed at our target market. Capital Acquisitions The figure of €21,000 includes a €16,000 payment in January for our initial plastic tooling mould as well as €5,000 to purchase office equipment such as computers etc. Rent Rent of our office and storage space will be €2,000 per month as per a quotation on daft.ie for headquarters in Blanchardstown.
  • 27. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 26 Rates We have forecasted rates for telephone, electricity etc to be €150 per month. 8.1.2 Profit & Loss Sales Sales revenue is as per cashflow and is expected to grow each month. Opening Stock Opening stock for a month is equal to the closing stock for the previous month. We will have no opening stock in January of Year 1. Purchases As described in the cashflow we will purchase €9,000 worth of stock in January to cover demand for Year 1. Closing Stock Closing stock is calculated by our opening stock less stock sold for each month. Gross Profit Our gross profit is calculated by sales less the cost of sales. We expect to make a gross profit in Year 1 of €103,290. In Years 2 and 3 we expect to make a gross profit of €187,800 and €378,600 respectively. Selling and distribution expenses Selling and distribution expenses include advertising costs for the year and we expect them to total €10,200 in Year 1, €20,000 in Year 2 and €35,000 in Year 3. Administrative expenses Administrative expenses include salaries, PRSI, VAT and website costs for the year. In Year 1 administration expenses will total €108,515, in Year 2 they will total €€137,594 and in Year 3 will total €183,508 Other expenses Other expenses include rent, rates and depreciation for the year. Charitable donations This expense has been explained in the cashflow notes. Operating profit Operating profit is calculated as the gross profit less all expenses. In Year 1 our operating profit is expected to be a €53,925 loss. In Years 2 and 3 operating profit is expected to be €18,994 loss and €90,892 respectively. Interest The interest expense is calculated on an interest of 4.8% per annum on our long term loan. Taxation For the purposes of this business plan and the fact that we are a small start up in Ireland we will be exempt from corporation tax. Net Profit In Year 1 we expect to make a net loss of €53,925. We also expect to make a loss of €18,994 in Year 2 and to make a profit of €90,892 in Year 3.
  • 28. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 27 8.1.3 Balance Sheets Our balance sheets are attached with the majority of figures relating to the P&L. VAT payable relates to VAT costs incurred in November and December of the previous year which will be paid in January of the following year. Accrued expenses relate to the interest payments that will be paid the year after they are incurred.
  • 29. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 28 8.2 Cashflow
  • 30. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 29 8.3 Profit and Loss Accounts
  • 31. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 30 8.4 Balance Sheets BalanceSheetasat31/12/2014BalanceSheetasat31/12/2015BalanceSheetasat31/12/2016 AssetsAssetsAssets CurrentAssetsCurrentAssetsCurrentAssets Cash5,864Cash6,229-Cash97,981 Inventory2,400Inventory1,200Inventory4,200 Totalcurrentassets8,264Totalcurrentassets5,029-Totalcurrentassets102,181 Fixed(Long-Term)AssetsFixed(Long-Term)AssetsFixed(Long-Term)Assets Equipment21,000Equipment21,000Equipment21,000 Lessdepreciation500-Lessdepreciation1,000-Lessdepreciation1,500- Totalfixedassets20,500Totalfixedassets20,000Totalfixedassets19,500 TotalAssets28,764TotalAssets14,971TotalAssets121,681 LiabilitiesandequityLiabilitiesandequityLiabilitiesandequity CurrentLiabilitiesCurrentLiabilitiesCurrentLiabilities VatPayable6,489VATPayable16,690VatPayable37,508 Accruedexpenses1,200Accruedexpenses1,200Accruedexpenses1,200 Totalcurrentliabilities7,689Totalcurrentliabilities17,890Totalcurrentliabilities38,708 Long-TermLiabilitiesLong-TermLiabilitiesLong-TermLiabilities Longtermloan25,000Longtermloan20,000Longtermloan15,000 Totallongtermliabilities25,000Totallongtermliabilities20,000Totallongtermliabilities15,000 OwnersEquityOwnersEquityOwnersEquity ShareCapital40,000ShareCapital40,000ShareCapital40,000 Capitalreserve10,000CapitalReserve10,000Capitalreserve10,000 Lossforyear53,925-RetainedEarnings72,919-RetainedEarnings17,973 Totalequity3,925-Totalequity22,919-Totalequity67,973 TotalLiabilitiesandequity28,764TotalLiabilitiesandequity14,971TotalLiabilitiesandequity121,681
  • 32. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 31 8.5 Breakeven We have estimated fixed costs to come to a total of €132,040 for the year. These include interest, salaries, donations, PRSI, website, rent, rates and advertising. Variable costs per unit amount to €0.60. To break even we need to sell a total of 15,552 units in the year. In terms of Euro this amounts to €155,368. We don’t expect to break even during the first year, this will happen in Year 3. A graph of the breakeven analysis can be found above.
  • 33. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 32 9. SALES PIPELINE This is our estimated sales and timeline for accomplishment. Size of deal is based on obtaining 0.1% of those suffering from Parkinson’s disease and arthritis within that geographic market. Given these conservative figures we are confident that these targets will be achieved by us within 5 years of trading. We expect to exceed these targets early in year two as our brand image grows and the business becomes more recognised within the market. We anticipate all of these objectives to be achievable given that they have been based on a mere 0.1% of our target in each country. Year 1 • Ireland & UK 11,000 units Year 2 • Europe 20,000 Units Year 3 • Europe &America 40,000 Units Year 5 • Worldwide • 200,000 Units
  • 34. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 33 10. FUNDING REQUIREMENTS We believe to fund our business to commence trade in January of 2014 we will require initial funding of €75,000. The source of this funding and what it is required for are outlined below: Sources:  €40,000: Each employee in the company will contribute a total of €10,000 each as seed capital, giving each a 25% equity stake in the business. This €40,000 will be initial seed capital.  €25,000: The company will receive a €25,000 bank loan in Year 1 which will be issued in two payments during the year. We will receive €12,500 in January and a further €12,500 in May to assist with cash flow.  €10,000: The company will receive a further investment of capital through successful entry into the Ustart accelerator programme run by DCU. Required for:  In January we will require an initial plastic tooling mould to produce Keyzy. This will cost €16,000. Other equipment costs are expected to be €5,000 in January.  Marketing costs are expected to be €10,200 in Year 1.  Staff costs for the year will be €72,000 as each member of staff will take a salary of €18,000.  Our initial stock in January will cost €9,000 for 15,000 units. These requirements will be met through our initial funding and the sales revenue generated throughout the year.
  • 35. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 34 11. PROMOTERS – CVS Ronan Martin - CEO Profile I am an enthusiastic and creative DCU Marketing undergraduate, with relevant work experience of marketing in the pharmaceutical industry and through college societies.  Strong communication skills, capable of leading and enjoy working as part of a team  Ambitious, assertive and possess an unyielding desire to succeed  Adaptable and flexible; well-organised and adept at time-management  High integrity and honesty; ethical and socially aware with volunteering experience Education 2009 – 2013-BA Business Studies (Marketing) Dublin City University, Dublin 9  Received 1.1 in first year, 2.1 in 2nd year and expecting an overall 2.1 in final year. 2003 – 2009-Leaving Certificate (520 points)  Higher Level: Business Studies (A1), Accounting (A2), Economics (B1), Math (B1), English (B2), French (B2) Relevant Employment 2011 – 2012 Marketing Assistant, Lundbeck (Ireland) Ltd, Citywest, D24 • Supported the Territory Managers in all their activities, providing them with stocks of promotional materials as required and sending materials directly to their customers. • Involved in the creation and design of patient and HCP leave pieces and brand reminders. This included creating and ordering new items, updating existing items and liaising with our suppliers over the artwork and design. • Assisted with the preparation of centrally organised meetings including the Lean On GP series, the Lean On Me Pharmacy series and the National Memory Clinic Conference. My role involved booking venues, sending invites and receiving replies and helping out on the day with registration etc. • Experienced two PR campaigns and photo calls during the year, the "It makes sense" campaign which highlighted the significance of non-motor symptoms in the early detection of PD and the Lean On Me live billboard event. Sept 2010 – Dec 2010 Peer Tutor, Business Maths, DCU, Dublin 9 • A graduate tutor, another peer tutor and I facilitated these tutorials and helped the students with any problems that they experienced with the course material. • Assisted the graduate tutor with a class of approximately 30 students in revising the course material for that week and answering questions from the worksheets. Project Work and Experience  Finalist in Accenture’s Leaders of Tomorrow competition (2012/13)  Elected as Class Rep for the BS4 class of almost 200 students (2012/13)  Organised and took part in a charity skydive in aid of Aware (2012)  Overall highest grade in the BS class in 1st Year (2010) References Available on Request
  • 36. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 35 Paul Eglington – CFO Profile I am a focused and enthusiastic DCU Finance undergraduate, with relevant work experience of Finance in the industry and through college societies.  Strong numerical skills, confident analyst of financial data  Determined and driven to succeed  Hardworking and motivated many varied experience financial experience and interpersonal skills. Education 2009-Present BA in Business Studies Finance Dublin City University  Received a 2.1 grade for first year, 2.1 grade for second year and a 1.1 in Semester 1 of final year. 2003-2009 Leaving Certificate (495 points)  Accounting (C), Maths (B), English (B), German (B), Irish (B), Biology (A), Geography (B) Relevant Employment 2011-2012 KPMG Financial Services Tax Department, Irish Financial Services Centre  Responsible for the tax compliance work of a number of Irish and International companies.  Dealing directly with clients in advising them on numerous issues.  Correctly filing any correspondence from tax authorities and communicating with them on behalf of clients.  Worked effectively as part of a team in order to reach deadlines in a timely manner.  Communicated effectively with management in dealing with urgent and unpredictable matters. 2009-2011 Mocha Beans, Roselawn  Responsible for ensuring correct cash in till at the end of each day.  Handling pay-outs and recording daily transactions.  Filing invoices and other such items from creditors. Project Work  Accenture “Leaders of Tomorrow” finalist  KPMG university ambassador.  Reached the semi-final of “The Apprentice Competition” in DCU as part of a team of four. Skills  Team Work: Worked on two teams in KPMG each with different clients and objectives.  Communication: Building relationships with clients and communicating feedback and reporting to management.  Time Management: Effectively manage to balance university and extracurricular activities.  IT Skills: Confident user of all Microsoft Office Applications, E-mail and Internet. Interests  Have a keen interest in all aspects of business, including finance, law, and economics, and travelling.  Member and captain of Castleknock Celtic football club. References: Available on request.
  • 37. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 36 Ann Miggin - COO Profile I am a charismatic and genuine DCU Finance undergraduate, with relevant work experience of Finance in the Insurance industry and through college societies.  Great Interpersonal skills, ability to work in groups and lead and manage team.  Goal orientated with strong ability to work to deadlines.  Adaptive to changing environments; flexible and desire to self improve Education 2009-Present BA in Business Studies (Finance) Dublin City University  Received a 2.1 grade for first year, 2.1 grade for second year and a 2.1 in Semester 1 of final year. 2011-2012-Accredited Product Advisor of General Insurance (Level 7, UCD) 2003-2009 -Leaving Certificate (425 points)  Higher: Business Studies (A2), Accounting (D), English (C2), Irish (C1), Geography (C1), LCVP Distinction. Ordinary level: Maths (B1), German (B1). Relevant Employment 2011-2012 Allianz Plc Household Underwriter  Communicated directly with customers and brokers by phone and email, explaining the cover in place on our various products, discussed other cover options and suitability. Processing of proposal forms, Issued and endorsed policy documents using I90 software. 2011-To date Spar Shop Cashier/Supervisor  First point of contact for customers at the till. Process cash/credit payments and money transfers.  Responsible for opening and closing of shop. Accountable for checking and placing orders.  Manage staff by delegating tasks and ensuring adequately staffed for lunch cover etc. 2003-2011 Gaeltacht Summer Camps Ard Cinnire  Communicated with Parents regarding any incidents or disputes Accountable for the care of children and hiring suitable staff.  Managed a team by constructing roster for hours. Structured kids timetable to ensure balance of learning Irish, sport and culture and dancing. Skills:  IT skills: Proficient user of Microsoft Excel, Word, Power Point and Outlook.  Managerial skills: Successfully organised timetables for children and supervised the team and delegated work.  Accuracy: Exhibited in Allianz setting up policies as it is vital all elements of proposals are completed. References Available on request
  • 38. Strictly Private & Confidential 2013 This document is the proprietary property of Summit Enterprises Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 37 Fiachra Ó Ciardha - CMO Profile I am a driven and dedicated DCU Marketing undergraduate, with relevant work experience of marketing and promotions within college societies.  Creative and enthusiastic to achieve goals.  Self driven and ambition to be successful.  Flexible and Adaptive to turbulent and changing environments Education and Qualifications 2009-Present BA in Business Studies Dublin City University  Received a 2.2 grade for first year, 2.2 grade for second year and a 2.1 in Semester 1 of final year. 2003-2009 Leaving Certificate (425 points)  Chemistry (B), Maths (B), English (B), French (B), Irish (B), Economics (B) Work Experience 2011-2012 Enterprise Ireland Accounts Payable/Receivable Assistant  I have worked in the Finance department. My responsibilities included: calculating funds coming in and out of the company; daily trial balances; customer interaction; preparing payments to clients on a daily basis. 2009-2011 Retail Sales Advisor  Responsible for ensuring the day to day running of TK Maxx, Zara & Next. Project Work  Accenture “Leaders of Tomorrow” finalist  Secretary for Investment Society in DCU  Reached the semi-final of “The Apprentice Competition” in DCU as part of a team of four. Skills Languages  Basic written and spoken French and German. Competent at Irish. Personal  Strong oral and written communication skills  From large family, appreciation of fruits of teamwork  Achieved three All-Irelands in handball  IT Skills Confident user of Prezi, Excel, Microsoft word and excellent typing skills. Interests  Playing football, broad interest of European football  Reading: factual; broadening vocabulary  Secretary of Investment Society in DCU  Marketing: Advertising & Sponsorship References Available on request