This document provides a business plan for Bloom LLC, a startup company developing a solar-powered standing umbrella called the "Bloom 'brella". Key points:
1) The Bloom 'brella has solar panels that charge a built-in fan, lights, and electrical outlets to power small devices. It is targeted towards businesses to provide shade and charging.
2) The plan is to sell 1000 umbrellas over 3 years, with a focus on partnerships with businesses like parks and restaurants requiring a minimum order of 10 umbrellas.
3) An extensive validation process will determine demand before production begins, which will include surveys and a Kickstarter campaign. The diverse founding team believes the product has potential given
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Executive Summary
Background
Bloom LLC is a recently established partnership by its five founding members. Hajar, Haomin,
Ryan, Vinoth, and Yumeng met through a class about launching new ventures while attending
the University of Oregon’s prestigious Charles H. Lundquist College of Business. A highly
diverse company culture is our most valuable asset, which stems from the team’s unique
backgrounds and upbringings. The diverse perspectives of each team member led to the
merging of multiple ideas into one truly unique product. Bloom LLC is proud to present the
Bloom Umbrella, a standing umbrella with a solar powered fan and light system. Affectionately
known as the Bloom ‘brella by our founders, this revolutionary upgrade of the outdated
umbrella will attract consumers and businesses alike. Ultimately, Bloom LLC is determined to
pursue a triple bottom line business model. Establishing a financially sustainable company,
while supporting both the environment and community, represents Bloom LLC’s mission to
become a leader in corporate social responsibility.
Focus
As the American outdoor furniture industry generates annual revenues of $4.5 billion dollars,
Bloom LLC sees substantial market potential that supports further investment. These annual
revenues only include retail consumer purchases and not business-to-business revenues. By
initially targeting businesses and companies, continued operation of Bloom LLC will result in
multiple opportunities for scalability. Partnerships with venues like amusement parks, hotels,
stadiums, and restaurants will require a minimum purchase of ten umbrellas. Partnering with
just a few of these venues could potentially lead to revenues that are significant to Bloom’s
growth and development as a startup company.
Target Objectives
Produce and sell 1,000 Bloom Umbrellas by the end of year 3
Reach 10 B2B partnerships (min. 100 units sold) in year 1
Reach 30 more B2B partnerships (min. 300 units sold) in year 2
Reach 60 more B2B partnerships (min. 600 units sold) in year 3
Strategy
The Bloom team will go through an extensive validation process to determine that demand
exists for solar powered umbrellas. Next, officially incorporating Bloom as a Limited Liability
Company will establish a stable company foundation to build upon. Technological development
and organizational design is a crucial step in the survival of Bloom LLC. The process of research
and development will inevitably be an ongoing evolution for the Bloom Company and product.
Once the solar powered umbrella reaches a stage of repeated functional success, BloomLLC
will announce a Kickstarter campaign and begin preliminary discussions with potential
partnering companies. A successful Kickstarter campaign will demonstrate extensive consumer
feedback that merits continued operation to achieve the target objectives. Contacting
companies will foster connections that can lead to partnerships, while promoting the brand.
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Business Concept
Bloom LLC’s solar powered standing umbrellas are integrated with solar technology that
powers a fan, lights, and two electrical outlets. Bloom LLC’s primary asset is the umbrella’s
Stigma Core, a patented solar energy bank. This central machine includes: slots for the
detachable fan, buttons to control the fan/lights, an energy level indicator, and a manual quick
shutdown switch. Unlike conventional umbrellas, our innovative features offer unexpected
improvements to a rather unchanging product.
The Bloom umbrella will thrive because of various business-to-business opportunities
and applications. By targeting businesses, Bloom has high potential for rapid scalability. Capable
of powering small appliances through solar energy, Bloom’s industrial umbrellas will excel in
theme parks, sports stadiums, outdoor festivals, parades, and much more. Bloom LLC has
created a product that will demonstrate the practicality of using solar energy, in hopes of
shifting the perception of consumers and businesses around the world.
Product Description
Bloom LLC is the newest multipurpose solar umbrella company. The Bloom solar
powered umbrella can store solar energy to power low-energy machines and smartphone
devices through the integrated weatherproof electrical outlet. Also included is an attached
foldable fan inside the umbrella and lighting system(APPENDIX B). Solar panels on top of the
umbrella’s canopy collect sunlight and transfers the energy into the umbrella’s Stigma Core,
which is a small white machine attached to the umbrella pole. The Stigma Core was named
after a plant’s “stigma” which collects and stores sunlight, serving as a core component to the
life and growth of the plant.
Bloom will patent the Stigma Core with a utility patent as it will be a “new and
useful…machine”1 but patenting the rest of the umbrella is slightly more difficult. No one can
1 "GeneralInformationConcerning Patents." UnitedStates Patent and Trademark Office. N.p.,
Oct. 2014. Web. <http%3A%2F%2Fwww.uspto.gov%2Fpatents-getting-started%2F
general-information-concerning-patents%23heading-5>.
5. 5
patent the idea of solar panels on top of an umbrella or electrical outlets built into the
umbrella. However, Bloom can patent the solar panels and electrical outlets that were created
and developed by the founding members. Design patents will be helpful in forcing competitors
to develop their own unique inventions, instead of simply taking the technology that Bloom LLC
independently created.
The Stigma Core also has a slot to plug in a backup nine-volt battery that can power the
lights, fan, and small electronic devices when running on low solar energy. For businesses that
operate low energy using appliances, the Stigma Core’s energy level indicator will display when
there isn’t sufficient solar energy. Businesses can still have a conventional propane tank or
generator to serve as a backup to the solar energy.2 While a Bloom umbrella may not be able to
fully power an appliance all day and night, the utilized solar energy means businesses won’t
have to replace propane tanks or generators as quickly or as often.
Another feature that Bloom will thoroughly develop is the umbrella’s canopy. A Bloom
canopy will be made entirely of recycled and biodegradable polymers, with built-in weather,
mold, stain, and fade-resistance making it highly outdoor and eco-friendly. The canopy must be
strong to carry the embedded solar panels and avoid tearing after constant folding. Other
features include:
Wooden pole, which is less prone to electric shock than metals and plastic
Weather protected solar panels attached to each triangle fold of the umbrella
Multiple fabric colors (black, dark red, dark blue, dark green)
Embedded LED lights, which folding even easier without worrying about bulky bulbs
Spray washable canopy fabric
Unique umbrella pole base sold separately (for ground or for sand)
Protective slide cover over exposed electrical outlets
Though we started Bloom to solve a small problem, there are multiple opportunities
that stem from the inability of conventional umbrellas. Businesses can use a Bloomumbrella in
2 "Energy Analysis ofthe Electrification ofFoodCarts and Trucks in New York City."
Www.closedloopadvisors.comIntroduction (2013): 1-17.Web. <http://www.closedloop
advisors.com/wp-content/uploads/case-study-food-trucks-and-carts_June14.pdf>.
6. 6
a wide range of applications. Hotels can provide guests with an even more enjoyable and
relaxing day by the pool through accessible charging outlets and the fan’s breeze. Likewise,
theme parks can place Bloom umbrellas throughout the park for visitors to cool down under
the fan, while charging a camera or phone. As the evening arrives, customers can turn on the
integrated lighting systemto light up the theme park. Farmer markets can use a bloom
umbrella for powering small appliances, light up displays, or a cash register/iPad. Bloom
umbrellas serve a variety of purposes, posing a real threat to existing solar powered umbrella
companies.
Selected Industry
Umbrella manufacturing is currently listed under the “Furniture Stores” code 442110,
according to the North American Industry Classification System. This industry contains an
assortment of primarily consumer facing products like candles, potpourri, and artificial
Christmas trees. Umbrellas have not changed much in 3,000 years of existence because
consumers are unwilling to pay for innovative enhancements.3 The stagnant progression of
umbrella design creates a promising opportunity for Bloom’s reinvented premium products in
the $350 million U.S. umbrella market and $7.5 billion U.S. outdoor furniture market.4
Industry Analysis
O = Effect on industry’s competitiveness now
X = Effect on industry’s competitiveness in future
3 Athavaley,Anjali. "WePuta Man On theMoon..." WallStreet Journal.N.p.,29May
2010. Web. <http://www.wsj.com/articles/SB1000142405274870491200
4575252193811841662>.
4 "Outdoor Furniture &Grills - Industry Market Research,MarketShare, MarketSize, Sales,
Demand Forecast, Market Leaders, Company Profiles, Industry Trends and Companies
including WC Bradley, Brown Jordanand Agio." Freedonia. N.p., Nov. 2013. Web.
<http://www.freedoniagroup.com/Outdoor-Furniture-And-Grills.html>.
7. 7
New Entrants: The threat of new entrants is low because most umbrella manufacturers have
been established in the industry for many years. Since the basic design of current umbrellas has
not changed in centuries, overall consumer consumption has stagnated as product innovation
drives sales.5 Umbrella companies do not propose many new changes to their products, but the
influx of consumers with a demand for constant access to their electronic devices could serve as
a driving force behind improved umbrella design and functionality. This creates a promising
opportunity for Bloom to reveal a new type of umbrella that consumers are not expecting. With
further technological development and new market demand for solar powered umbrellas,
competition in the umbrella industry will grow. Current umbrella companies will invest more
capital into research and development and other umbrella startups could enter the market, but
only after Bloom LLC fulfills a first mover strategy.
O - Low X - Increasing
Substitutes: There are several substitutions that could be made for a solar power umbrella,
such as pergola patio covers and roof awnings. Regular patio umbrellas and square canopy
tents are the primary products consumers and businesses will purchase instead of a Bloom
umbrella. Mobile charging power devices are very abundant in the current market place.
Mophie is one of the leaders in mobile battery packs, while Solar Paper and SunnyBAG offer
small solar power chargers for small devices. These mobile solar panel charging stations offer
the ability to recharge, without the comfort of an umbrella’s shade or a spinning fan’s breeze.
O - Medium X – Increasing
Suppliers: The bargaining power of suppliers is low because there are many suppliers that could
be used for each part in the manufacturing process of an umbrella. There are many options for
suppliers of plastics for building our umbrella fans and of small LED light bulbs. Solar panel
technology suppliers will also have little to no bargaining power because of the advancements
5 "United States Census Bureau." UnitedStates Census Bureau. N.p., n.d. Web.
<http://www.census.gov/cgi-bin/sssd/naics/naicsrch>.
8. 8
in solar technology. Even thin plastic filmsolar panels can generate sufficient energy6, so Bloom
will find cost efficient solar panel companies to partner with for initial production cycles.
O - Low X – Decreasing
Buyers: American consumers have high bargaining power for inexpensive products. Consumers
have the ability to choose between multiple umbrella companies if they aren’t interested in
quality. Once umbrellas become more innovative, then buyers will have more purchasing
options. The majority of standing umbrellas currently on the market are simply to provide
shelter from rain or sun. More functionality, as seen in the Bloom umbrella, will attract more
buyers.
O - High X – Increasing
Rivalry: Hampton Bay, Astonica, and Garden Treasures are the primary standing umbrellas sold
at Home Depot and Lowe’s. Solpower Umbrellas and Powerbrella are the only two solar power
patio umbrellas in the market, but are sold exclusively through their websites (APPENDIX E).
These companies rarely invest in expensive advertising campaigns because acquiring new
market share in the umbrella industry is difficult. Consumers do not display brand loyalty to
umbrella companies; so, aggressive customer acquisition strategies are rarely implemented.
O - Low X - Increasing
The overall market for Bloom’s standing umbrella is growing, though there are a few
barriers that will prevent it from reaching full potential. The buyers and rivalry will have the
strongest effect on the profit potential of Bloom. Buyers are big influencers of other potential
customers. Bloom has the ability to capture market share because of its highly innovative
features, as long as the premium product price is justified. The premium price that Bloom will
have to charge will be easier to sell in business-to-business partnerships, rather than directly to
6 Quick, Darren. "Powerbrella: TheSolar-powered Umbrella ThatRecharges theBatteries."
Powerbrella: The Solar-powered Umbrella That Recharges the Batteries. N.p., May 2009.
Web. <http://www.gizmag.com/powerbrella-the-solar-powered-umbrella-that-
recharges-the-batteries/11782/>.
9. 9
individual consumers. Businesses will have more frequent opportunities to use a Bloom solar
powered umbrella, finding value in the product despite the high price point. By aggressively
contacting potential partnering companies, Bloom would become a major contender within the
furniture stores industry, thus gaining brand loyalty through a first-mover market penetration
strategy.
Customer Analysis
Our target customers are high-end businesses. We specifically intend to sell Bloom
umbrellas in the United States, China and Europe. Since amusement park companies, upscale
restaurants, and luxury resort hotels will primarily use our product, we will focus on large cities
with an emphasis on making outdoor space more comfortable and convenient.
To get an idea of how the product will most benefit and attract customers, think of an
amusement park’s guest on a summer day—her kids are enjoying the rides, but she just wants
to sit down, cool off, and check her email. She notices the solar-powered umbrella and muses
on how the park has gone green. She sits underneath and turns on the fan, enjoying the new
breeze. Realizing that her phone is low on charge, she plugs it into the convenient outlet right
there on the umbrella. After she surfs the web, she notices a nearby ice cream stand that uses
the same umbrella. She buys a snack and realizes that the cooler is actually powered using the
same solar power as the fan and outlets at her table! She walks away, wondering if she can get
one of these Bloom umbrellas for her own backyard, or if her friend could use one at her
farmers’ market stall.
High-end businesses must remain constantly up-to-date with the newest technological
developments and changes in public attitude. In recent years there has been a shift to more
eco-friendly products. As people have become increasingly aware of climate change and its
effects, green power has become an increasingly important part of a person’s lifestyle.
Consumers purchase products that are more technologically advanced at saving time and
energy, as well as products that are less harmful to the environment and thus decrease
pollution at a low cost.
10. 10
Our target market is large; we intend to sell Bloom in vast quantities to businesses,
providing outdoor shading for the entire business, amusement park, or upscale restaurant.
We have validated that businesses have a problem with insufficient outdoor shading on
the basis that the only current eco-friendly and/or solar-power umbrellas are sold to
consumers, not in bulk for businesses. The available patio umbrellas also do not provide all the
specifications that Bloom does—in particular, the Stigma Core, foldable/detachable fan, and
eco-friendly canopy.
To prove that our target customer sees Bloom as a solution to their problems, we will
collect data from our Kickstarter campaign to get a better understanding of the specific
companies and businesses interested in our product. Businesses that are not interested in our
product can retain their traditional umbrella or shading devices, meaning they will not have a
multi-functional umbrella that works almost as a 24-hour service with its natural
resources/energy. The motivation for this buying decision is a desire to include renewable
energy in their day-to-day lives, save fuel and money by investing in green products and stay on
the cutting edge of technological developments.
Validation
Bloom LLC will carry out an extensive evaluation process before large-scale production.
The first step in analyzing product potential is by simply sharing the product concept with
consumers and companies. This feedback can be communicated through email, social media, or
in person. As we receive immediate feedback, we will refine our prototype, adjusting features
to fulfill initial consumer preferences. We can gather feedback from a wide range of consumers
because of Bloom’s various applications. After learning more about our consumers, Bloom LLC
can host a campaign on a crowdfunding platform like Kickstarter. This will give us a chance to
observe the level of interest in our products by seeing if we are funded or not. If successfully
funded, the money will be used for manufacturing. Crowdfunding is a vital step in the
evaluation process, as Bloom will have the opportunity to sell some products before agreeing to
a risky production contract.
11. 11
If Bloom LLC experiences a successful crowdfunding campaign, we will capitalize on the
momentum to increase awareness and capture more of the umbrella industry. Since Kickstarter
attracts consumers from all over the world, we will be able to analyze the geographic region
our initial customers live through the list of shipping addresses we receive. We predict most
orders will go to European nations, as Europeans purchase more solar powered backpacks and
solar mobile devices than any other geographic area.7 Europeans are also more willing to pay a
higher price for a quality product. Targeting the massive overseas markets in the long-run will
generate more sales for Bloom, but we’ll initially focus on the United States’ market following
the end of the global Kickstarter campaign.
U.S. consumers will be targeted initially because of the shear size of American homes
compared to Europe. With a bigger average home size than any other country, American
consumers are more likely to purchase standing patio umbrellas. With a fan for hot days or
lights for an evening dinner outside, our product is highly differentiable from any other patio
umbrella. We’re confident that our unique umbrella will lead to small-scale partnerships with
big venues like restaurant chains and hotels, eventually selling to consumers through Home
Depot, Lowe’s, and Target. Partnering with retailers in year 3 to reach our target objective will
create data to measure key performance indicators like customer acquisition cost and average
order volume. We will be able to compare the profitability of selling through retail chains and
selling through the Bloom website directly to consumers. We will analyze similar performance
indicators when selling our standing patio umbrellas to businesses and vendors. We also intend
to target theme parks and sports stadiums, as these food carts usually need just enough power
to maintain a certain temperature for snacks and beverages. Contacting the customer support
phone numbers of these large venues will connect our company with the necessary operations
managers to discuss implementation of Bloom products. If the venues’ managers reject our
product, we can ask for their reasoning to make additional improvements for future sales
meetings with other businesses.
7 Ponsold, Stefan. "SunnyBAG PowerTAB -World's MostEffective Solar Charger." Kickstarter. N.p., n.d. Web.
<https://www.kickstarter.com/projects/sunnybag/sunnybag-powertab-worlds-most-effective-solar-char?ref=users>.
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Organizational / Operations Plan
The legal form of Bloom is a Limited Liability Company because the form has a mix of
financing opportunities and limitless succession growth. We will begin to garner funding with a
Kickstarter campaign. We may also start an investor campaign on Angel List if we do not earn
enough money to launch our business. We will position Bloom as a high-end product, facing
businesses like amusement park companies, fancy restaurants and luxury resort hotels.
The headquarters of our company will be located in Los Angeles, California. The
attractive harbor location is relatively easy for us to ship internationally. The potential growth
rate is higher in California than other states, since it is a developed state and many wealthy
businesses are located there. The businesses pay more attention to providing great services, so
they tend to purchase high-end products for a heightened business image and competitive
advantage. There are many potential customers, like Disneyland and Universal Studios in
California. As an example, Disneyland could purchase fifty umbrellas from Bloom to serve as a
convenience for both its food cart vendors and theme park visitors. Disneyland would also save
money on unsustainable forms of energy, while becoming a more environmentally friendly
company. The eco-friendly nature of solar energy provides benefits to employees and
consumers alike by providing a more hospitable venue.
We plan to outsource manufacturing to China for its low labor cost. Since Haomin and
Yumeng both live in China, they will find a high-quality producer to oversee the manufacturing
process. We will patent multiple components of the Bloom umbrella in both the United States
and China to impede the production and innovation of competitors. China’s rapid development
as an advanced industrial country has seen increases in quality manufacturing.8 Wages in China
have also increased with improvements in quality, so finding a reputable production partner
will be even easier for Haomin and Yumeng. Bloom LLC will negotiate a fair price for production,
8 Swanson, Ana. "WhyIt’s Now Cheaperto ProduceSomeGoods in the Souththan in China."
The Washington Post. N.p., Aug.2015.Web.<http://www.washingtonpost.com /news/wonk blog/wp/2015/08/04/why-its-now-
cheaper-to-produce-some-goods-in-the-south-than-in-china/>.
13. 13
while mandating the manufacturer uses high quality raw materials for the various components
that make up the umbrella.
Bloom will conduct test trials on initial products in China’s large modern theme park,
Happy Valley. We will give the park ten umbrellas to use for free during a three-month trial.
This test trial will allow Happy Valley to assess the value Bloom solar powered umbrellas
creates for their customers and employees. The test trial also allows the Bloom team to identify
flaws with the product, in order to make quick adjustments with manufacturers to alleviate the
problem before large-scale production. If Happy Valley wants to permanently use Bloom
umbrellas after three-months, Bloom LLC will agree to its first partnership, thus establishing
credible success to use as evidence when pitching to future business venues. After
improvements, we will ship our final products to Bloom’s headquarters in Los Angeles,
California. From there, we will implement a similar test-trial promotion strategy for companies
to decide whether or not to partner with Bloom. In order to create customer convenience and
satisfaction, we will offer technical support and rewards for repeat purchases. Our minimum
purchase order is ten Bloom umbrellas, but if the business purchases more than thirty
umbrellas, we will provide shipping, unboxing, 24/7 technical support, and exclusive rewards in
the future. We will also customize and stitch the company’s logo on the umbrella canopy for big
buyers. All Bloom umbrellas will be covered by one-year warranties.
Gradually, Bloom patio will become a mature company if the target objectives after
three years of operation are all achieved. If sales begin to stagnate, Bloom LLC is capable of
extending its product line, as many different applications exist because of the innovative Stigma
Core solar energy bank. The Stigma Core can be integrated with many different products in
many different industries. To extend the umbrella concept in the long run, Bloom hopes to
produce a hand-held solar energy umbrella with a small foldable fan and a single electrical
outlet on the handle. To extend Bloom into other products of the “Furniture Stores” industry,
opportunities exist in producing solar energy tables, pool machine filters, and barbecue grills.
The Bloom mission is to continue inventing products that promote sustainability. Bloom
is a triple bottom line company that will hopefully operate for many years while preserving and
14. 14
protecting our environment and the people within it. Long-term operation by the original
founding team members will likely require an exit strategy of becoming a public enterprise,
subsequently selling common stock to generate interest and investment for further expansion
of the Bloom Company.
Sales Strategy
No company can succeed, much less survive, without an effective sales strategy.
Bloom’s sales strategy in the first two years of operation is a direct business outreach strategy.
We will begin selling our product as the Kickstarter campaign comes to fruition. Pitching the
Bloom solar powered umbrella to businesses and companies will begin on May 1st. Any sales
made to a business will immediately enter the manufacturer’s queue, as production begins
June 1st. We will directly approach businesses like amusement parks, restaurants and luxury
hotels. More specifically, the Bloom team will call, go door-to-door, email, and use LinkedIn to
develop business connections with companies and their organization’s representatives.
Bloom will offer businesses ten umbrellas for a three-month trial. After the test trial, we
will check in with them to see if they want to purchase our product and agree to a partnership.
In order to generate customer favorability and loyalty, we will offer standard technical support,
excellent customer telephone service and even more perks if the business purchases thirty or
more units. If a business does not like the Bloom umbrella, this will serve as a means to convert
a weakness into an opportunity for gaining valuable customer preference research. The Bloom
team members will ask the business why they do not like the umbrella and which aspects they
want us to improve or change. When we obtain feedback, we will adjust product features if
there is a consensus between team members that the revisions are a worthwhile investment.
Any improvements based on consumer feedback will be immediately integrated in the product
proposal to potential business partners.
Bundle selling is another effective sales strategy to attract large business ventures that
consist of many locations spread out around the United States. During negotiation with a
nationally established business, Bloomcan persuade a company’s buyer to purchase more units
to drive costs down, thus obtaining cost efficient savings. Bundle selling offers a valuable deal
15. 15
for national business chains because of the ability to purchase a greater quantity for warmer
states, while giving less of the bundle purchase to colder states.
Compatible relationships with our business partners are vital to the success and
longevity of Bloom LLC. We are pitching both the features of the Bloom solar powered umbrella
and the work ethic and integrity of the Bloom LLC team. Finally, another cost effective sales and
advertising strategy we will adopt is doing interviews for technology websites like cnet.com and
techradar.com. These articles will link to our website to drive increases in traffic and awareness
of the Bloom brand.
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Financial Plan
Expected Revenues
Based on our research of the industry average revenues and the US market size, we
have determined that the revenues for Bloom LLC would start at $36,000 for the first year of
sales. These revenues will not include sales from crowd-funding. Bloom will predict a worst-
case scenario for the Kickstarter campaign, as just 44% of projects are successfully funded.9 The
first year revenue value stems from a minimum of 100 sold units in B2B partnerships. Due to
the seasonality of major cities like Boston, Chicago, and New York, we predict a variable growth
pattern for revenue in these geographic regions. Bloom will pursue opportunities in these cities;
however, targeting consistently sunny cities like Los Angeles, Phoenix, and Dallas will most
significantly affect Bloom LLC’s ability to achieve predicted revenue growth of 200% by year 2.
In the second year, we will sell a minimum of 300 units, and in the third year we plan to
sell a minimum of 600 units. Bloom’s second year of operations will closely resemble the
strategy implemented within year 1. If we successfully sell100 units in the first year, our team
fully believes 300 sold units in year 2 is possible, resulting in an increased revenue of $72,000.
In the third year, Bloom will experience further growth as our unique company and product
captures more market awareness after two years of operation. The third year’s goal of 600 sold
units will equate to $216,000 in total sales (APPENDIX F, Exhibit 8).
Cost of Goods Sold
Our cost of goods sold will equal $150 per unit sold. This incorporates the
manufacturing cost and all the relevant cost associated with the production of our product at
our outsourcing factory in China. On average, we expect that approximately 60% of our
revenues will cover the costs of total products sold (APPENDIX F, Exhibit 12-14).
9 "What Is Kickstarter." Kickstarter.N.p.,2015. Web.
<https://www.kickstarter.com/hello?ref=footer>.
17. 17
Start-Up Cost
To establish Bloom LLC, our founding team will enlist a bootstrap method of financing.
Initially, we require a semi-substantial investment of $23,638 to cover research, development,
testing, and legal fees. These mostly one-time fees will require outside investment, possible
from crowd funding or investors. Once Bloom LLC has a final product, the founding team
members will each make small capital investments of $2,000. Instead of accepting more
external investments in exchange for equity, these personal investments will serve as the
necessary means to continue operation. The founders will undertake a bootstrap strategy for
Bloom LLC, using guerilla business techniques to acquire new B2B partnerships and market
share. Marketing and advertising expenses are $0 in the first two years because Bloom LLC’s
limited capital should be allocated towards opportunities that will reinforce Bloom’s
commitment to continuous innovation and improvements of our existing and evolving product
lines.
The total estimated cost for Bloom LLC in the first year (2016) is $29,950. Estimated
startup costs in year zero (2015) are $47,275 (APPENDIX F, Exhibit 21) but this number can be
broken into four different areas: legal, R&D, insurance, and office headquarters. For initial start-
up costs, the income statement outlines money spent on incorporation and patents,
distribution, attorney, and general administration. Also, Bloom LLC will not pay employee
wages, as the five founding members will work for free and reinvest salaries. With an expected
net income increase to $33,325 in year 2 and $76,283 in year 3, Bloom LLC can afford to pay
employee salaries. Year 2 employee salaries will be small, as each employee can be paid at
most $2000. In year 3, employee salaries will rise due to increases in company revenue, as each
employee can be paid at most $3000 (APPENDIX F, Exhibit 12-14).
Break-Even Analysis
Analyzing our forecasted cash flow and annual income, Bloom LLC will not be able to
produce a substantial profit in the first and second year of business. After one whole year,
revenues will not exceed costs because of the sizeable startup costs that are incurred
immediately after incorporation. Bloom LLC recognizes that breaking-even or profitability in
18. 18
year 1 is unlikely even if the target objective is fulfilled; although, future operating cycles will
still appear encouraging. In year two, we will see a large increase in profits and almost assuredly
break-even. In year three, we will see a higher volume of unit sales, meaning larger profits and
a rise above the break-even point.
Prospects
Given the numbers previously discussed, the forecasts for Bloom LLC indicates that it is
a valuable investment to pursue. We expect revenues to continue improving in the future
because of current and future market trends towards environmentally conscious lifestyles.
Advocacy from government agencies and officials, private sector companies’ shift to clean
energy alternatives, and criticismfrom media outlets will make Bloom solar powered umbrellas
even more appealing. Bloom umbrella will provide users with an array of useful features, only
costing a small one-time investment. Bloom LLC will also educate consumers on the benefits
and surprising power of sustainable solar energy, demonstrating that the long term cost savings
of a Bloom umbrella will ultimately counteract the premium price tag.
Founding Team
Bloom LLC consists of five highly determined college students, ready to achieve success
outside of the classroom. Bloom’s identity stems from challenging conformity and seeing
through a wide spectrum of perspectives. The team’s diversity drives Bloom’s vision of constant
innovation. Hajar leverages the team’s incredible diversity through patience and commitment
to teamwork, providing superb internal processing capabilities. By listening to each teammate’s
opinion, Hajar’s responses and PowerPoint slideshows perfectly reflect the entirety of the
unique discussion. Furthermore, Hajar’s passion for helping animals and the environment
helped to inspire Bloom’s mission of natural sustainability.
Haomin ignites creative conversations between our group members through her detail-
oriented and inquisitive work ethic. Haomin poses critical questions in response to team
member ideas, constantly questioning the practicality and feasibility of specific features for
each prototype. Ryan also exhibits fearlessness as a devil’s advocate. Criticismis difficult to
19. 19
convey positively, but Ryan’s diverse upbringing in the multiethnic neighborhoods of Southern
California has shaped his ability to unite and inspire dissimilar individuals under a shared vision.
Ryan’s “beach bum” Southern California lifestyle triggered the Bloom concept, inspiring a way
to charge depleted batteries without leaving the sand and sun. Vinoth’s relaxed personality
evokes a very personable and engaging presence when interacting with others in sales
meetings or presentations. Also, Vinoth has primarily studied finance and economics during his
college career, leading discussions on budgeting and investment capital. Finally, Yumeng gives
Bloom LLC a quick learning multi-tasker. Her proficiency and experience in marketing, finance,
operations, and retail gives our team a trusted advisor who can assist in any facet of the
company.
While Bloom LLC has a nucleus of significant skills and characteristics, our founders have
flaws that will be resolved and improved as time progresses. The most noticeable weakness is
our team’s lack of experience with manufacturing and distribution. None of our founders have
a substantial history with woodwork or electrical wiring. Also, none of Bloom’s founders have
predominant backgrounds in accounting or law. While these weaknesses will prolong our go-to-
market strategy, they will not prevent our company’s ability to achieve success. Two founders
are well-versed in computer programming and design software to ease the learning process of
manufacturing and prototyping. We will overcome these weaknesses through research,
experimentation, and the addition of advisors to Bloom LLC. As five young entrepreneurs
starting their first venture, a lack of experience is inevitable, but not discouraging.
20. 20
Feasibility Decision
The current state of Earth’s natural environment is being forced to endure a constant
increase of hazardous pollutants. Many of Earth’s citizens are aware of the severe
consequences that toxic forms of energy emit. Bloom provides a small solution to the pollution
problem. While a solar powered umbrella will not reverse the effects of all environmental
degradation, Bloom can create small eco-friendly opportunities for consumers to adopt. Bloom
wants to educate and advocate, explaining that even small reductions of a consumer’s carbon
footprint will yield powerful results.
Bloom embraces solar-energy and urges both consumers and companies to take
advantage of the limitless energy supply that Earth’s sun provides. Bloom will leverage society’s
shift towards ecological preservation in order to persuade businesses to purchase solar
powered umbrellas. Bloom umbrellas will enhance a company’s daily operations through cost
cutting and customer approval. Businesses save money in energy consumption, while creating
an eco-friendly and sustainable business image. By partnering with Bloom, a company
seemingly goes through a rebranding process, as customers will associate values, like
innovative and ethical, with the business venue. These attractive selling points along with
Bloom’s unique features will attract both businesses and consumers, indicating that this
venture is a feasible business decision.
21. 21
Timeline for Bloom LLC
Following official incorporation (September 2015 – December 2015)
Finalize all LLC papers and fees. Establish calendar tax year
Coordinate operations with manufacturers and transporters
Begin researching, testing, designing
3-months prior to the Kickstarter campaign (January 2016)
Finalize most development of first product offering
Finalize most research of customer market
Begin producing Kickstarter campaign (video, concept, goals)
During the Kickstarter campaign (March 2016)
Promote Bloom’s campaign through grassroots marketing approach
Email surveys to Kickstarter campaign backers and to potential business partners
Gather consumer data from Kickstarter comments, number of backers, and amount
raised
1-month after Kickstarter campaign (May 2016)
Slightly adjust Bloom umbrella specifications based on customer feedback
Finalize manufacturing plan relative to the amount of funding received
Continue approaching potential B2B partners
Production cycle begins (June 2016)
Order a specific number of units from the overseas manufacturer
o Factors affecting number of units to produce: amount of backers from
Kickstarter campaign, amount of demand from B2B partners, amount of capital
Haomin and Yumeng will monitor manufacturer’s processes and quality of products
Entering year 2 of operation (July2016 – December 2016)
Post-Purchase Communications: Send out email communications to new partners and
purchasers of a Bloom solar powered umbrella
Implement evaluation tactics (social media analytics, awareness surveys) and revise
strategy inefficiencies to measure effectiveness of the grassroots marketing campaign
Reach out to more new business partnerships and capitalize on existing partnerships to
increase venue’s amount of units
Maintain or change manufacturer/supplier partnerships
(APPENDIX D)
22. 22
Bibliography
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2010. Web. <http://www.wsj.com/articles/SB1000142405274870491200
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general-information-concerning-patents%23heading-5>.
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Patel, Sujan. "81+ Resources on Validation, Growth, Customer Retention, and Scaling." Sujan
Patel. N.p., 14 Dec. 2014. Web. <http://sujanpatel.com/marketing/startup-
resources/?utm_content=buffer32e67&utm_medium=social&utm_source=twitter.com&
utm_campaign=buffer>.
Ponsold, Stefan. "SunnyBAG PowerTAB - World's Most Effective Solar Charger." Kickstarter.
N.p., n.d. Web. <https://www.kickstarter.com/projects/sunnybag/sunnybag-powertab-
worlds-most-effective-solar-char?ref=users>.
Port, David. "How to Start a Business in 10 Days." Entrepreneur. N.p., 15 Oct. 2013. Web.
<http://www.entrepreneur.com/article/228659>.
Quick, Darren. "Powerbrella: The Solar-powered Umbrella That Recharges the Batteries."
Powerbrella: The Solar-powered Umbrella That Recharges the Batteries. N.p., May 2009.
Web. <http://www.gizmag.com/powerbrella-the-solar-powered-umbrella-that-
recharges-the-batteries/11782/>.
23. 23
Skelton, Kimberly. "You Have an Idea-Now What? 3 First Steps for Your Start-up." The Muse.
N.p., n.d. Web. <https://www.themuse.com/advice/you-have-an-ideanow-what-3-first-
steps-for-your-startup>.
Swanson, Ana. "Why It’s Now Cheaper to Produce Some Goods in the South than in China." The
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blog/wp/2015/08/04/why-its-now-cheaper-to-produce-some-goods-in-the-south-than-in-
china/>.
“Umbrella.” How Products are Made. N.p., n.d. Web. <http://www.madehow.com/Volume-
1/Umbrella.html>.
DeVoss, Matthew. “60Watt Embedded Solar Cell Umbrella.” June 2011,
<http://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=1095&context=
eesp>.
“Solar umbrella design advances Texas A&Mteam in competition” archOne. N.p. Web.
November 21, 2011 <https://one.arch.tamu.edu/news /2011/11/21/solar-umbrella/>.
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<http://www.statista.com/statistics/323242/us-outdoor-furniture-retail-sales/>.
"What Is Kickstarter." Kickstarter. N.p., 2015. Web.
<https://www.kickstarter.com/hello?ref=footer>.
25. 25
APPENDIX B: Product Mockups
Exhibit 2: Represents the first product mockup of a Bloom solar powered umbrella. Integrated lights,
fan, electrical outlets, and the Stigma Core central storage system.
26. 26
Exhibit 3: Depicts Bloom’s first product mockup, illustrating more details of the umbrella
27. 27
APPENDIX C: Validation Survey
Exhibit 4: Customer validation survey to be sent after the Kickstarter campaign. A near-replica
survey will be sent out to other consumers not affiliated with the Kickstarter campaign.
28. 28
APPENDIX D: Visual Timeline
Exhibit 5: A broad visual illustrating the launch of Bloom and short-term operational plans.
29. 29
APPENDIX E: Competitors
Exhibit 6: This is a competing product from SolProX. This solar powered umbrella only offers
two USB outlets for charging smartphone devices.
30. 30
Exhibit 7: Powerbrella solar powered umbrellas only offer electrical outlets for charging devices
31. 31
Year 0 Year 1 Year 2 Year 3
Cash inflows
Capital investments 10,000.00$ -$ -$ -$ Initial investment of $2,000 from each of the members
Grants 50,000.00$ -$ -$ -$ Angel Investors funding for new small business start-up
Revenues - commissions -$ 36,000.00$ 108,000.00$ 216,000.00$ Revenue total from Umbreallas sold to (calculation below)
Total cash inflow 60,000.00$ 36,000.00$ 108,000.00$ 216,000.00$
Cash outflows
Manufacturing Cost -$ 15,000.00$ 45,000.00$ 90,000.00$ Outsource to china with cost of production of $150 per unit including labor cost and all relevant cost for production
LLC annual fee 875.00$ 875.00$ 875.00$ 875.00$ California Secretary of State fee for the LLC Annual Report filing
Legal fees - LLC Startup 3,000.00$ -$ -$ -$ Legal fees for filing for LLC
Office supplies & Equipment 500.00$ 500.00$ 500.00$ 500.00$ Paper, pens, printer ink, etc.
Attorney Fees 15,000.00$ -$ -$ -$ One time attorney fees associated with firm start up and service fee
Trademark Fees 400.00$ -$ -$ -$ One timeTrademark licencing cost
Transportation and Distribution 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ Transportation cost from China to US and distrubution to clients
General Administration 1,500.00$ 1,500.00$ 1,500.00$ 1,500.00$ Work related cost
Internet - office -$ -$ -$ -$
Web-site hosting 300.00$ 300.00$ 300.00$ 300.00$ $25 monthly fee for web-site service
Promotion and Advertising -$ 1,000.00$ 1,000.00$ 1,000.00$ Marketing cost annually
Cell phones 1,500.00$ 1,500.00$ 1,500.00$ 1,500.00$ $25 monthly reimbursement to each member for business use of personal cell phones
Travel costs 2,000.00$ 3,000.00$ 3,500.00$ 4,000.00$ Costs for travel to explore business opportunities
Patent for technology 20,000.00$ -$ -$ -$ Fees and costs for patent on technology for 20 year in USA and China
Server fees -$ -$ -$ -$
Payroll-Wages/Taxes -$ -$ 10,000.00$ 15,000.00$ 5 shareholder not taking salary for the 1st year of operation, 2nd year of salary of $2,000 each , 3rd Year $3,000 each
Total cash outflow 50,075.00$ 28,675.00$ 69,175.00$ 119,675.00$
Net cash flow 9,925.00$ 7,325.00$ 38,825.00$ 96,325.00$
Cash Inflow/Outflow Projections
APPENDIX F: Financials
Exhibit 8: Cash Inflow/Outflow Projections
36. 36
Exhibit 13: Income Statement 2017
Revenue
Capital -$
Grant income -$
Sales 108,000.00$
Total Sales 108,000.00$
Expenses
Manufacturing Cost 45,000.00$
LLC annual fee 875.00$
Legal fees - LLC Startup -$
Office supplies & Equipment 500.00$
Attorney Fees -$
Trademark Fees -$
Transportation and Distribution 5,000.00$
General Administration 1,500.00$
Internet - office -$
Web-site hosting 300.00$
Promotion and Advertising 1,000.00$
Cell phones 1,500.00$
Travel costs 3,500.00$
Patent for technology -$
Server fees -$
Payroll-Wages/Taxes 10,000.00$
Total Expenses 69,175.00$
Net Operating Income 38,825.00$
Income Taxes 5,500.00$
Net Income (Loss) After Taxes 33,325.00$
Bloom LLC
Income Statement
For the Period Ending December 31, 2017
37. 37
Revenue
Capital -$
Grant income -$
Sales 216,000.00$
Total Sales 216,000.00$
Expenses
Manufacturing Cost 90,000.00$
LLC annual fee 875.00$
Legal fees - LLC Startup -$
Office supplies & Equipment 500.00$
Attorney Fees -$
Trademark Fees -$
Transportation and Distribution 5,000.00$
General Administration 1,500.00$
Internet - office -$
Web-site hosting 300.00$
Promotion and Advertising 1,000.00$
Cell phones 1,500.00$
Travel costs 4,000.00$
Patent for technology -$
Server fees -$
Payroll-Wages/Taxes 15,000.00$
Total Expenses 119,675.00$
Net Operating Income 96,325.00$
Income Taxes 20,042.00$
Net Income (Loss) After Taxes 76,283.00$
Bloom LLC
Income Statement
For the Period Ending December 31, 2018
Exhibit 14: Income Statement 2018
42. 42
Cash flows from operating activities
Net Income 33,325.00$
Adjustments for noncash effects 140.00$
Changes in operating assets and liabilities -$
Wages payable -$
Net cash flows from operating activities 33,465.00$
Cash flows from investing activities
Payment of security deposit -$
Purchase of office equipment (167.00)$
Payments relating to obtaining patent -$
Net cash flows from investing activities (167.00)$
Cash flows from financing activities
Owner contributions -$
Owner distributions -$
Net cash flows from financing activities -$
Net Increase/Decrease in Cash 33,298.00$
Beginning cash balance 15,070.00$
Ending cash balance 48,368.00$
Bloom LLC
Cash Flow Statement
For the Period Ending December 31, 2017
Exhibit 19: Cash Flow Statement 2017
43. 43
Cash flows from operating activities
Net Income 76,283.00$
Adjustments for noncash effects 140.00$
Changes in operating assets and liabilities -$
Wages payable -$
Net cash flows from operating activities 76,423.00$
Cash flows from investing activities
Payment of security deposit -$
Purchase of office equipment (167.00)$
Payments relating to obtaining patent -$
Net cash flows from investing activities (167.00)$
Cash flows from financing activities
Owner contributions -$
Owner distributions -$
Net cash flows from financing activities -$
Net Increase/Decrease in Cash 76,256.00$
Beginning cash balance 15,070.00$
Ending cash balance 91,326.00$
Bloom LLC
Cash Flow Statement
For the Period Ending December 31, 2018
Exhibit 20: Cash Flow Statement 2018
