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Gentleman Market Analysis

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Gentleman is our start-up project for Entrepreneurship Senior Design (EE364E and EE464E). Over the course of a year, we are developing a smart door-opener that meets ADA specifications and implements smart technology, such as 2-Factor Authentication.

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Gentleman Market Analysis

  1. 1. Gentleman Market Analysis
  2. 2. Consumer Problem Trouble physically locking and unlocking door Cheaper alternatives needed for door opener and installation Provide additional home security
  3. 3. Solution Easy, no-drill installation Controlled entirely from smartphone Flexible payment structure 2-Factor Authentication
  4. 4. Customer Identification Age 5-17: 0.6% 18-64: 5.1% 65+: 22.5% Gender: Male: 48.5% Female: 50.5% Median Household Income: $37,400 Education Level: None: 26.1% High School: 22.8% Associates: 25.8% Bachelors: 25.3%
  5. 5. Door: $14.95 B (2018) with 6.6% (YOY) Accessibility: $14 B (2015) with 9.5% growth (YOY) Smart Home: $48.7 B (2018) with 39.1% growth (YOY) Market Analysis Customer Segmentations
  6. 6. Market Analysis Customer Segmentations TARGET MARKET SERVED AVAILABLE MARKET TOTAL AVAILABLE MARKET $77.65 billion (Worldwide) 177.3 million people (Worldwide) 1.2 million people Assuming 10% of 12 million
  7. 7. Competitive Analysis Intellectual Property Door security system (doorbell) via smartphone Mobile communication device system Passive automatic door opener Wireless power transmission system
  8. 8. Competitive Analysis Software Storage: Amazon Web Services Stack: Android: Java iOS: Swift Security: iOS: Face ID/Touch ID integration Smart Home Capability: Amazon Alexa Skills Kit
  9. 9. Competitive Analysis Hardware Power System: Wireless Charging Lock and handle actuation system Door-swinging mechanism
  10. 10. Skylink Otodor Gentleman STANLEY Access Power Outage Functionality ✓ ✓ ✓ ADA Compatible ✓ ✓ ✓ Wireless Capability ✓ ✓ x Mobile Phone Capability x ✓ x 2 Factor Authentication x ✓ x Competitive Analysis Customer Segmentations
  11. 11. Industry Outlook
  12. 12. Cost Analysis Part Cost Software Stack and Mobile Application Cost of Development Motor w/ Lever $150 Wireless Charger (Rx/Tx coils) $20 Lock (Actuator, Bolt) $50 Control System (MCU, WiFi chip, Peripheral Sensors) $50 Additional Costs (Labor, etc) $25 Total Cost Breakdown $245/unit
  13. 13. Margin Analysis Bundle Package Markup: 44% Sale Price: $350/unit Profit: $107.80/unit Gross Margin: 30.56% Subscription Model Markup: 145% Sale Price: $600 ($25 month/24 months) Profit: $355.25 Gross Margin: 59.18%
  14. 14. Revenue Analysis Discounted Cash Flow Years 0 1 2 3 EBITDA $694,575 $798.761.25 $918,575.44 Less: Depreciation ($20,000) ($20,000) ($20,000) EBIT $674,575 $778,761.25 $898,575.44 Less: Taxes ($236,101.25) ($272,566.44) ($314,501.40) Plus: Depreciation Exp. $20,000 $20,000 $20,000 Less: CAPEX ($250,000) ($100,000) ($100,000) ($100,000) Less: Changes in WACC $- $- $- Free Cash Flows ($250,000) $358,473.75 $426,194.81 $504,074.03 Present Values ($250,000) $320,065.85 $339,759.90 $358,789.94 Net Present Value $768,615.68 Assumptions Cost of Capital 12% Units Sold 3,000 (50% B/50% S) EBITDA (Year 1) $694,575 EBITDA Growth 15% (Industry Avg.) Initial Investment $250,000 ($100k for PP&E, $150k for SG&A and R&D) Depreciation over 5 years Salvage Value $- Tax Rate 35%
  15. 15. thanks! ANY QUESTIONS?

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