1. VIBE Glasses
Presented to Professor Kise
Bus 310
8 May 2015
Prepared by: Chano Barron, Savanna Hardin, Jesse Cecena,
Michael Anguiano & James Foster
2. Table of Contents
Table of Figures..................................................................................................................................................... 4
Executive Summary .............................................................................................................................................. 5
Business Concept Statement ................................................................................................................................ 8
Product & Service.................................................................................................................................................9
Market Need.........................................................................................................................................................9
Meeting the Market Need......................................................................................................................................9
Industry & Competitive Analysis ...................................................................................................................... 10
Industry Analysis................................................................................................................................................11
STEEPG Analysis ...............................................................................................................................................11
Social...............................................................................................................................................................11
Technological ...................................................................................................................................................12
Economical.......................................................................................................................................................12
Political............................................................................................................................................................12
Seasonality .......................................................................................................................................................13
Porters Five Forces .............................................................................................................................................13
Threats of Substitutes ........................................................................................................................................13
Threats of New Entrants ....................................................................................................................................14
Rivalry among Existing Firms............................................................................................................................14
Supplier Power..................................................................................................................................................14
Buyer Power.....................................................................................................................................................15
Competitive Analysis...........................................................................................................................................16
Direct Competitors ............................................................................................................................................16
Indirect Competitors ..........................................................................................................................................17
VIBE glasses Strengths and Weaknesses.............................................................................................................18
Competitive Analysis Grid.................................................................................................................................19
Marketing Plan.................................................................................................................................................... 20
Target Market.....................................................................................................................................................21
Product Strategy.................................................................................................................................................21
Pricing Strategy..................................................................................................................................................22
Channels of Distribution.....................................................................................................................................23
Branding Strategy...............................................................................................................................................24
Product Performance .........................................................................................................................................24
Customer Service ..............................................................................................................................................24
Operations Freedom Bell ...................................................................................................................................24
Promotions & Advertising...................................................................................................................................25
Support Groups .................................................................................................................................................25
Caregivers ........................................................................................................................................................25
Purchasing Managers.........................................................................................................................................25
Operations & Management Team..................................................................................................................... 27
Management Team.............................................................................................................................................28
Chief Executive Officer, CEO............................................................................................................................28
Vice President of Financials ...............................................................................................................................28
Chief Operating Officer, COO............................................................................................................................28
Marketing Director............................................................................................................................................28
3. Director of Research and Development...............................................................................................................29
Board of Directors.............................................................................................................................................30
Board of Advisors .............................................................................................................................................30
Operations Plan..................................................................................................................................................30
Day-to-Day.......................................................................................................................................................30
Outsourcing & Partnership.................................................................................................................................31
Inventory Management......................................................................................................................................31
Major Tasks and Functions ................................................................................................................................32
Financial Team .................................................................................................................................................32
Legal Team.......................................................................................................................................................32
Web Developing Team......................................................................................................................................32
Customer Support..............................................................................................................................................33
Quality Control .................................................................................................................................................33
Financials ............................................................................................................................................................. 34
Sales Forecast......................................................................................................................................................35
Sales Year 1......................................................................................................................................................35
Sales Year 2......................................................................................................................................................35
Sales Year 3......................................................................................................................................................35
Start Up Expenses...............................................................................................................................................36
Building Lease..................................................................................................................................................36
Remodeling Improvements ................................................................................................................................36
Office Equipment..............................................................................................................................................36
Advertisement & Promotions .............................................................................................................................37
Legal & Administrative Expenses.......................................................................................................................37
Warehouse Equipment.......................................................................................................................................38
Contingency Expenses.......................................................................................................................................38
Cost of Goods Sold..............................................................................................................................................38
Opening Inventory.............................................................................................................................................38
Staffing & General Selling and Administrative (GSA) Expenses.........................................................................39
Startup Expenses...............................................................................................................................................39
GSA Expenses ..................................................................................................................................................39
Funding...............................................................................................................................................................41
Appendix.............................................................................................................................................................. 42
Appendix A.........................................................................................................................................................43
Resumes...........................................................................................................................................................43
Savanna Hardin..................................................................................................................................................... 47
Emily’s Good Things to Eat - Manager...................................................................................................................47
Business Skills and Expertise................................................................................................................................ 47
Professional Highlights......................................................................................................................................... 47
- Business Improvement ...............................................................................................................................47
- Waste Reduction........................................................................................................................................47
- Increased Sales..........................................................................................................................................47
- Vendor Management.................................................................................................................................47
- Employee Management .............................................................................................................................47
- Customer Service.......................................................................................................................................48
Appendix B...........................................................................................................................................................1
6. Try closing your eyes and try to walk around without walking into something. Sure we all remember where
everything is at within our general surroundings, but do we truly know the exact steps from your sofa to the
kitchen or the position of the lamp relative to that same sofa? We cannot imagine ourselves being blind and
having to rely constantly on others for assistance, especially when one steps outside their home. Sustainable
Effective Efficient (S.E.E.) Company has developed glasses to aid those who are visually impaired, live
independent lives freeing them from the constraints of vision loss. Visionary Intelligence by Evolution (VIBE)
glasses will provide the solution to this problem. VIBE glasses will give that blind person the ability to navigate
their surroundings allowing for an independent life.
VIBE glass combines different technological innovations from Microsoft’s Kinect, software, and microchip
technologies in order to achieve its goal of giving the user their vision back. VIBE glasses turn these existing
technologies into a profitable and serviceable product. Combining Kinect with a vast database of recognizable
everyday objects, VIBE glasses would alert the user of hazards and objects within its line-of-sight allowing for
a more independent life. Our engineers have made VIBE glasses operational and are currently outsourcing
manufacturing of our product now in order to for lead times to be minimized and in the possession of our
consumers.
The freedom offered to the consumer is what truly differentiates VIBE glasses from its competitors. Over the
years, the number of blind people keeps on rising. In the United States alone, there are over six million sight
impaired people and our initial target market will be veterans as they get help from the Veteran Affairs (VA)
hospitals to help cover the high cost of VIBE glasses. S.E.E. Company has entered into a contract with VA
hospitals to provide VIBE glasses to veterans.
In order for our company to be ready to start the business we will require and initial funding of $500,000 to
cover our startup expenses. Four of the founders will invest $75,000 in the company and each own 18.75
percent of the company while one founder will invest $100,000 and own 25 percent of the company. In total the
founders will invest $300,000 in the company and $250,000 will be raised via crowd funding.
For the first fiscal year we are projected to have a low number of units to be sold since VIBE will only be
focused on the VA hospitals in the West Coast. Current sales forecasts has our company being profitable in year
2. As we expand to other regions within the VA hospitals and clinics network, we expect our net profits to be
over $1.5 million in year 3. Going from year one to year three we expect our business to significantly increase
as we expand.
Within this report, an in-depth description of VIBE glasses, an industry analysis, a go-to market strategy, and
financial projections are explained in further great detail. With VIBE glasses, “Let us guide you to
independence.”
9. Product & Service
VIBE glasses are a product with the capability of detecting anything that is in front of a person. All the
technology that is necessary in order to create VIBE glasses is in our hands to create them. VIBE glasses will
have a camera on each side of the hinges. The cameras will have the technology that is necessary in order to
detect objects that are in front of a person. In order for the user to know that an object is in front of them an
earpiece will connect via Bluetooth and alert them. VIBE glasses will help visually impaired people identify
items that are around them. The VIBE glasses will operate through the cameras’ scanning feature and translate
its findings via Bluetooth to notify the user. The particular object will alert the user through the earpiece either
by vibrations or sounds. The user will be able to adjust the transmittal features to their preference.
Market Need
Currently there is a limited selection of products that a visually impaired person can use. To add on, all the
products are limited to what they do and does not enable the user to have that customer freedom they desire.
The visually impaired person is always accompanied by a caregiver, a family member or service animal on a
regular basis. We will provide visually impaired people with customer freedom.
Meeting the Market Need
Our company will provide visually impaired people a product that will revolutionize the market. The goal that
we have behind VIBE glasses is to give our customers the opportunity to become independent. Our target
market are those who have limited vision or are fully blind. Our initial focus will be wounded war veterans and
from there we will expand.
11. Industry Analysis
Durable Medical Equipment (DME) can be defined as instruments and products used for medical reasons that
can be reused a number of times. This industry can be seen as a way to improve the quality of life of those that
have illness or injuries (Decisive Bio-Insights). Over the years, technological and medical advancements have
fueled the growth in the DME industry. In 2010, the DME industry was valued at twenty-six billion dollars and
continues to expand each year.
A growing number of aging baby boomers have also influenced the need for innovation in the DME industry.
Every year the number of people needing durable medical equipment increases paving the way for new
companies to enter the industry. People in need of durable medical equipment suffer from a variety of illnesses
and injuries so the industry has a lot of needs to meet. As a result the DME industry has been broken into six
main segments.
The six main segments are home respiratory therapy, home infusions, diabetes supplies, patient positioning,
patient mobility, and other durable medical equipment. Each segment has different products that serve different
consumers. Our product will attempt to enter the other durable medical equipment sector. The product we have
designed is attended to specifically adhere to the needs of veterans. People who once had full vision but have
had their vision impaired due to injuries or illness.
STEEPG Analysis
In the STEEPG analysis one is analysis the forces that can have an impact for VIBE glasses. In this case the
STEEPG can give a better understanding on how this forces may affect our product. The six factors that the
STEEPG include are social, technological, environmental, economical, political, and global factors. For this
product one will analyze the factors that can have the greater impact on VIBE glasses.
Social
One out of every four of the 2.3 million who served in Iraq and Afghanistan have a service-connected disability,
according to the Bureau of Labor Statistics (Smith, 2012). Traumatic eye injury is the fourth most common
injury due to war with traumatic head injuries being the most common. Between 2000 and 2010, 186,555 eye
injuries were reported. Also, up to 75% of those affected by traumatic brain injuries experience short or long
term visual dysfunction (visionaware.org). The Armed Forces Health Surveillance Center published a Medical
Surveillance Medical Report (MSMR) that 17,331 had a serious form of eye injury (visionaware.org). This
represents a viable market for our product. VIBE glasses will satisfy this market by enhancing the quality of life
for wounded war veterans. Helping veterans become more independent through assistive technology.
12. Technological
Continued innovation in the video game industry makes our product possible. Microsoft released Kinect in late
2010. Originally, Kinect’s intended use was intended for the gaming console Xbox. Since its release however,
its technology is being experimented for other uses. Kinect works by using software, range camera and
microchip technology to process physical objects from its line-of-sight and recreate a 3D image (Carmody,
2010). VIBE glasses aims to turn this existing technology into a profitable and serviceable product. Combining
Kinect with a vast database of recognizable everyday objects, VIBE glasses would alert the user of hazards and
objects within its line-of-sight allowing for a more independent life.
Economical
Since 2010, the Growth Domestic Product (GDP) growth rate averages at 2.17% per year, with projected GDP
growth rate of 2.15%, 3.09%, and 3.03% in subsequent years following 2013 (Statista.com). These percentages
represent a continued growing economy. Consumer confidence must be present in order for our product to
succeed. VIBE glasses seek to capitalize on a growing economy, as consumers are more willing to spend their
income on medical devices.
Through the VA, funding will be available to assist those that will find VIBE glasses essential to improve
quality of life and promote independence. VIBE glasses, for classification purposes would be categorized as
assistive technology within the umbrella of durable medical equipment. According to the Assistive Technology
Act of 1998, the official definition is “Any item, piece of equipment, or product system whether acquired
commercially, modified, or customized that is used to increase, maintain, or improve functional capabilities of
individuals with disabilities.” Claims made for our product would be made through the VA. The minimum
claim payout for a war veteran is $127 monthly; representing a 10% disability. Full disability payout is a
monthly $2,769. Outlines for qualifications to determine percentage disability were outline in the political
section. Through these claims, wounded war veterans will have assistance to obtain our product and help
maintain low out-of-pocket costs.
Political
The United States Department of Veteran Affairs (VA) has established Blind Rehabilitation Services (B.R.S.)
for both active members of the military and for veterans. Their objective is two-fold; first to regain
independence and improve quality of life for successful integration into family and community life, and
secondly to help through lessening burden of caregiver services by enhancing the home environment and
supporting families and significant others to better understand vision impairment (rehab.va.gov). VIBE glasses
13. will not only enhance the home environment, but also assist with regaining independence and improving quality
of life.
In order for veterans to receive aid, the VA must first determine the level of disability. This allows them to not
only receive aid but also gain transferrable disability qualifications that are recognizable by other insurances.
There are varying degrees of disability and each is depicted with one of 60 letters. It is also possible to receive a
half step in-between two letters, which would be illustrated with the letter and a ½ beside it (vets101.org). There
are checklists to determine what type of disability a veteran may have and then from there they can receive the
appropriate form of aid. The VA also determines what type of assistance one may qualify for. VIBE glasses
would fall under the Adaptive Equipment, Service-Disabled Veterans Insurance, Group-Life Insurance, Group-
Life Insurance Traumatic Injury Protection, Service and Aid for Blind Veterans and Veterans Compensation for
Service-Connected Disabilities (benefits.gov).
Seasonality
VIBE glasses will be available during the entire year and will have the same selling points despite the weather
or season. Blind veterans will be in need of VIBE glasses whenever they end up qualifying for any of the above
mentioned associations, assistance and aid. The U.S. is still in a time of defense and foreign government
assistance so there are a large number of troops deployed in dangerous “war-zone” areas where they can receive
injury. In 2014, there was another deployment of 350 troops sent overseas for National Defense (De Young,
2014)). There are currently 10,000 troops still currently in Afghanistan as of 2015 and another 1,500 in Iraq
(Livingston & O’Hanlon, 2015).
Porters Five Forces
The five competitive forces model is a framework that links the structure of an industry to its profitability. The
Competitive five forces include threat of substitutes, threats of new entrants, rivalry among existing firms,
bargaining power of suppliers and bargaining power of buyers. VIBE Glasses particular industry that it will be
operating in is the Medical Durable Equipment (DME).
Threats of Substitutes
At the moment there are very few to intermediate direct and indirect substitutes, which Vibe glasses would have
to compete with. If the price of VIBE glasses is too hefty in the perspective of consumers, there are other direct
substitutes an individual could prefer. Which would include Long Cane/Laser Cane, Paloron, iGlasses. These
entire devices require technology aid to assist a consumer. A change in substitutes that does not require any
DME or indirect substitutes would be a guide dog or human aid. The threat of substitute’s a consumer can opt
14. out from purchasing VIBE is fairly low. As VIBE would be capable of doing and offering, so much more to the
consumer than existing substitutes. This makes the DME Industry an industry where we can become profitable.
Threats of New Entrants
The threat of new entrants might be difficult or relatively low for a variety of factors. These factors include
capital requirements, distribution channels, government and legal barriers.
Capital requirement: The type of new product SEE is introducing to the industry requires a lot of capital funding
for many reasons. Just like any other technology company, Research and Development (R&D) is a huge factor.
R&D Will account for a majority of its spending as it will take a lot of trial and error to develop a product to the
consumers liking, which will replace old and new substitutes.
Government and Legal Barriers: The DME industry is considered knowledge -intensive. VIBE Glasses and new
entrants would require software, patents, trademarks and copyrights to clear in order to have successful product.
Rivalry among Existing Firms
The rivalry among existing firms is extremely low for many reasons. They include Number and Balance
competitors, Degree of difference between products, and Level of fixed cost.
Number and Balance of competitors: The number of actual competitors in the DME industry is low, Price
cutting from other existing firms would not be a factor.
Degree of difference between products: Vibe Glasses will have a high degree of difference between rivals.
VIBE Glasses is the first innovated product of its kind that will use a few different types of cameras matched
with software, and will be able to identify an object while communicate its findings with the user.
Level of fixed cost: In order for an existing firm to produce a product that will match or exceed VIBE
expectations. A high fix cost will need to be implemented so they can reach their break-even point
Supplier Power
Supplier concentration: as a company, VIBE Glasses will be the only supplier of its kind to provide such a great
innovated product. What this means for the company, we would not sacrifice quality for cost on the product,
therefore allowing S.E.E. in providing the greatest value to the customer without any real competition.
Attractiveness of Suppliers: Another quality and price determinant in the favor of VIBE Glasses, They are no
attractive substitutes out in the market that would surpass the product. Products in the existing market are
15. attractive to supplier since they hold the existing value to the customers. This still will not show that they will
become a threat once we are out in the market.
Buyer Power
Buyers Cost: Buyers for VIBE glasses will share an importance to the product. The price of VIBE will play a
sensitive role, as the majority of our target market would be able to afford the product.
Degree of standardization of supplier’s products: As initial introduction of VIBE glasses, there will be no other
duplicates. The standardization of other products will not hold any power.
Figure 1: Five Forces Model Diagram
Competitive Forces Low Medium High
Threats of Substitutes X
Threats of New Entrants X
Supplier Power X
Buyer Power X
Threats of Industry Profitability
16. Competitive Analysis
In order for VIBE glasses to create a competitive advantage over its competitor’s one will have to differentiate
the direct and indirect competitors. We have identified direct competitors as products designed to allow
individuals to move by themselves. Indirect competitors will be physical assistance whether from a person, or
dog. Currently some of the direct competitors that VIBE glasses will face are a laser cane, long cane, polaron,
iglasses, and ray electronic mobility aid. The indirect competitors will be guide dogs and caregivers. The
following paragraphs will go into further detail on how each one of the aforementioned products serve a blind
person.
Direct Competitors
Long Cane/Laser Cane
The long cane is a product that is held in either hand that can give basic information about the environment. A
patient uses the long cane by moving it in a sweeping direction motion to detect any object. This makes the long
cane really user friendly because of the simplicity that it is to use. To an extent this product would not be so
efficient because it would only be able to detect what is in front but not be able to know what the object in the
front is.
The laser cane has similarities to the long cane but it has more differences. The laser cane uses laser beams in
order to detect obstacles, drop offs, and other hazards in the surrounding area (Even Grounds, Accessibility
Consulting). When the laser cane detects any of the previous mentioned items it produces a specific audio
signal. The reliability with this product may be in jeopardy when being in a loud environment because the user
may not hear the sound. By using this product, a blind person will still have a hard time getting around hazards
because the only information that they are getting come from vibration or noises.
Polaron
The Polaron is a compacted aid that uses ultrasonic technology to detect objects from four, eight, or sixteen feet.
The Polaron goes around the neck and when an obstacle is within a range it either vibrates or creates a sound. It
is suggested that if a person is using a Polaron they also have a long cane (Orientation and Mobility Training:
The Way to Go). Without the cane the Polaron will not be as efficient because a user would still not know if the
object is to their right or left hand side. This makes the blind person have a lot of accessories, which can get
annoying.
17. iGlasses
The iGlasses are designed as a secondary mobility device alongside a guard dog or a long cane (Ambutech
iGlasses). These glasses provide a vibration feedback when there is a hazardous obstacle above chest level of
the user (Ambutech, iGlasses). For example, if a branch were in front of the person the glasses would start
vibrating. This limitation of the iGlasses only detecting things above chest level brings its efficacy down
because it would not be able to detect anything that is below chest. These glasses cannot be so reliable if using
by themselves because the blind person may not feel safe if the glasses are not able to detect everything that is
in front of them.
Ray Electronic Mobility Aid
The Ray is a small, extremely sensitive electronic mobility device that vibrates, or makes a sound when an
object is near (Caretec, Ray). This device can be held in the hand, put inside a pocket, or put around one’s neck.
It also has an earphone jack where one can plug in headphones to hear the audio when an obstacle is near. To
add on, Ray has a special “escape” mode where it enables the user to locate small gaps such as, a door entrance
or passageway through a crowd of people (Caretec, Ray). The Ray would not be able to detect drop-offs such as
curbs. This device is used in addition to the cane and not to be used solely.
Indirect Competitors
Guide Dog
The guide dog is another mobility aid for a blind person. Guide dogs can guide people around obstacles,
through crowds, stop at curbs and stairs (Dog Guides for People with Vision Loss). In addition, a guide dog can
also be trained to find a limited number of objects (Dog Guides for People with Vision Loss). For example, a
blind person can state commands like, “find the chair”, “find the door”, or “find the elevator.” As a guide dog
would be helpful for a person there would be people who are allergic to dogs or do not like them in general.
This can cause a problem to a blind person in the way that he/she would not be able to get near an allergic
person or be around people who dislike dogs. The guide dogs begin with their training when they are between
6-8 weeks. At this point they begin to learn house manners and obedience. Then at 14-16 months their formal
guide training begins which takes 2-3 months. When they reach the age of 1 ½ years old they meet with the
blind person and train for two weeks. After they go on their own but the guide dog never ends training because
they can always keep on learning (guide dogs).
Human Aid
A person is the first one that would help out a blind person at any given moment if that person is available to
assist. They can help navigate obstacles and hazards and assist with arrival at their designated location. When
18. going to places a blind person can be holding or wrapping their hand around the person in order for them to get
around places. At times the blind person would be alone because people have things to do at times. It would be
difficult for a blind person to only rely on the help of a human aid to get around obstacles or anything in which
they might need help in.
VIBE glassesStrengths and Weaknesses
One of VIBE glasses greatest strengths will be the freedom that the customer will have. The customer will be
able to look like anyone else and have a better capability to surpass obstacles. With all the technology out the
innovation of the VIBE glasses will enable blind people to also enjoy having technology. As this glasses will
allow the user to create an image in their head of what is being said through the earpiece of the glasses. For
example, the glasses would tell the user “chair to your right in 3 feet” this will allow the user to create an image
in their mind and not stumble over a chair. Most of the competitions that VIBE glasses will have require a user
to not only use their product but also have a long cane or guard dog. With VIBE glasses the user will have both
hands-free so they can use them in any way that they want. In the other hand a weakness that VIBE glasses may
have is how user friendly it would be. The user will have to adapt to the new technology that they are wearing
and leave behind any previous product that they were using. For some customers this can be something hard to
do because they are used to doing things one way and prefer to stay with it. We believe that VIBE glasses will
be worth 2,500 because of all the technology supporting its features. Potential buyers may not be happy with the
price but after they see what VIBE glasses can do for them the price should not be an issue. In conclusion,
VIBE glasses will be an innovation that will be really helpful to the blind community.
19. Competitive Analysis Grid
The competitive analysis grid will show the advantages and the disadvantages of VIBE Glasses. The different
products will be compared in the criteria of reliability, hands-free, user friendly, innovative, price, features,
efficiency, and customer freedom. This competitive analysis grid is portraying all the different competitors that
VIBE glasses will have in the market. The more number of “X’s” indicate that a product is sufficient in the
criteria. The maximum number of “X” is three and the lowest will be one. If the box is left blank it does not
apply to the product, animal, or person.
Figure 2: Competitive Analysis Grid
Criteria Direct Competitors Indirect Competitor
VIBEGlasses LongCane Laser Cane Polaron iGlasses RayElectronic Guide Dog HumanAid
Customer Freedom XXX X X X XX X X
Reliability XXX X XX X X X XXX
Hands-free XXX X XXX X X X
User Friendly XX XXX XXX XXX XXX XXX X
Innovative XXX X XX XX XX XX
Price X XXX XXX XXX XXX XXX XX
Features XXX XX XX XX XX XX X
Efficiency XXX X XX X X XX X
21. Target Market
Our product will serve veterans who have once seen and lost their sight due to their military services. The
number of veterans that have become visually impaired from war increases every year. Currently there are
thousands of veterans who are in need of a device to assist with their loss of vision. In addition we plan to have
our VIBE glasses available on the open market. We want our product to be available to everyone that needs it,
therefore we will not limit our market to only those who are covered under the Veterans Association. Hospitals
will be able to sell VIBE glasses to patients who are diagnosed with blindness.
These versatile glasses are designed for both men and women. Our target market will be Veterans who are
covered under the VA program. Not only is this a channel of revenue for our company it is beneficial to
veterans who cannot necessarily afford the glasses. Due to the fact that many Veterans can develop blindness at
a later age, our target age group will be people between the ages of twenty-five and sixty-five. Instead of
targeting a specific consumer income level, we will shift our focus specifically to the VA who can purchase and
supply VIBE glasses to its patients.
The purpose of VIBE Glasses is to provide veterans with a product that can help them perform like they could
before they lost their sight. Part of our goal is to give the consumer something that will enhance their life. That
is why we have designed our product to be fashionable, comfortable, and affordable. Our agreement with the
Veteran’s Association makes our product affordable to the end user and is beneficial for all parties.
Product Strategy
Beginning with an effective product strategy will be the foundation to VIBE’s success. It will layout the perfect
execution plan to so we can continue to grow towards the future. Just like the product itself, VIBE glasses will
hold a unique product strategy. Although it is in its early stages, combining the latest technology available to
create new features to be easily used by anyone.
The three essential components of a product are core, formal, and augmented (ADD AUTHOR of our book).
VIBE glasses ultimately will hold all three-product components; however at the moment we will focus on the
core benefit. The core benefits that VIBE will initially provide are performance, safety, and community service.
The performance of vibe glasses is a crucial part of the product as it will be the catalyst to success. VIBE
Glasses will perform like no other product in the market, as it will hold the latest technological advances.
Through the use of infrared and regular cameras and fastest processor available, it should be able to respond and
adapt quickly to anything in front of the user. Once we insure performance in our product it will begin a rapid
domino effect to creating safety not only for the user, but also for those around them. There are millions of
22. individuals who are blind worldwide that will benefit from VIBE glasses. In turn, creating community service
attributes that would be another benefit to the glasses.
Attacking the core component first, will show the type of product and attributes VIBE has offer. This
component will also exhibit how it assists and it is beneficial for the users in our target market. With every
successful campaign there are critics and skeptics, with a startup company. The remaining two product
components will also be a vital part of the company; however we must first learn and master the core benefit in
order to continue future growth.
Pricing Strategy
VIBE glasses will be the only product on the market that will provide freedom by enhancing the user’s ability to
detect obstacles in their pad. This strong value set will allow us to position VIBE glasses with a premium retail
pricing of $2,500 per unit. If a company were to want to purchase VIBE glasses as a wholesale the price can be
negotiable. A customer will also have the option to buy extended warranty for $300 a year in case of any
malfunction in the product but it will not cover a broken item. One main asset of having extended warranty for
the customer will be that maintenance checkups will be included. If a customer does not buy warranty it will be
recommended for a customer to have VIBE glasses checked at least once a year. The extended warranty and
maintenance create another revenue source.
23. Channels of Distribution
The main distribution of VIBE glasses will be through the Veteran’s Association Hospitals. The VA Federal
Supply Schedule (FSS) Program establishes long-term government-wide contracts that allow VA facilities and
other government agencies to acquire a vast array of medical equipment, supplies, services, and
pharmaceuticals directly from commercial suppliers. The General Services Administration (GSA) approves
non-government agencies if the equipment is proven to help make lives of wounded veterans easier.
Medical equipment includes all items of a therapeutic or rehabilitative nature, which are determined as
medically necessary for home treatment of eligible veterans, e.g., hospital beds, over-bed tables, bathroom
equipment, invalid lifts, hand cycles, stair glides, room air conditioners, standing tables, portable ramps,
mobility (walking) aids, environmental control units (ECUs), etc. VIBE glasses will be classified as such
walking aids for Veteran’s without sight. S.E.E. can be approved for the VA Schedules Program and be granted
a Schedules Contract, which are government-approved providers. This will be the final step in being able to be
listed on as a provider of Durable Medical Equipment for the VA. We are confident we can compete with
current applicants or the already established list of Schedule Contracts because our glasses are an innovative,
effective care system for blind veterans that have yet to be traversed. With the approval of the GSA and VA
FSS, VIBE will be able to be made available at every VA facility.
Veterans Hospitals are vastly spread out over the United States and are completely funded through the VA so
our consumers will not have to pay out of pocket for VIBE; they simply have to make an appointment with their
physician and receive a prescription for the necessary equipment. There are 152 Veteran’s Medical centers
throughout the United States including some in Puerto Rico as well as nearly 1400 community-based outpatient
and living centers which all fall under the same benefits a blind veteran would receive at a hospital. This would
make our glasses available to our customers nationwide for a fee of little to no cost at all.
Veterans Hospitals are not unlike most hospitals located in the United States. They use Group Purchasing
Organizations to help cut their costs when buying medical supplies and equipment. They are used as a sort of
middleman to negotiate fair pricing through bulk purchasing. This allows the provider/manufacturer to
ultimately make more money off the sale through extra goods sold and staying within the profit margin and the
hospitals are able to have more of our equipment available on hand for customers when they need it. This will
limit customer frustration by convenience and accessibility.
Although our main focus for point of sale will be the Veterans Association and affiliated hospitals and care
centers, there are other channels VIBE glasses will be potentially be available at. The VA funds equipment and
treatment at private sector medical centers so long as the previously stated fall under the necessary equipment
24. approved by the GSA and VA FSS. This would make our glasses available at approximately 15,700 registered
medical facilities in the United States.
Branding Strategy
An effective brand strategy will not only increase our company’s net value but will make new entrants have
difficulties competing within our market. We will make VIBE glasses synonymous with assistive technology,
through an effective brand strategy. Our slogan, “Let us guide you to independence” will communicate VIBE
glasses intended purpose. Through our product’s performance, a strong emphasis on customer service, and a
partnership with National Federation of the Blind’s Operation Freedom Bell, our brand will successfully
communicate our position.
Product Performance
VIBE glasses will endure vigorous testing to ensure that each pair of glasses will function as they are intended.
When a wounded veteran wears a pair of VIBE glasses, they will have full knowledge that they will have a fully
functioning device that they can depend one. Through VIBE glasses performance, consumers will be gaining an
extra sense to ensure their independence.
Customer Service
An emphasis on superior customer service will increase our company’s reputation and increase our brand. To
ensure our consumers pay the least amount of out-of-pocket expenses, our staff will be fully trained to each
different states regulations and policies as well as answer any questions with the utmost professionalism and
courtesy. We will take our customer service to a higher level. We will keep a database to track every single call
a customer makes; adding fun facts about the customer and also encouraging our representatives to engage in
small talk will solving their every need . Our customer service representatives will have access to this database
to give the customer the perception that they have their own personal concierge.
Operations FreedomBell
We will commit 5% of our company’s profits to the National Federation of the Blind’s Operation Freedom Bell.
They provide blind or visually impaired wounded warriors in intensive one-on-one and group training activities
to learn blindness skills needed for independence. Through this partnership, wounded war veterans will
experience the full capabilities of VIBE glasses and integrate our product to their daily lives.
25. Promotions & Advertising
VIBE glasses will use a combination of promotions and advertising to reach our target market and introduce the
benefits of VIBE glasses. In order for this to happen we will target three different audiences, which are: support
groups, caregivers, and purchasing managers. We will take different approaches of promoting and advertising
for each area of focus
Support Groups
The Blinded Veterans Association (BVA) will be a group that one will reach out to and start building a
relationship with. One way to do that is to attend their National Conventions where we can be a key speaker and
have the opportunity to talk about VIBE glasses. As BVA employee seven full-time staff members as National
Field Service Officers (BVA, 2015). Each has a certain region in the United States and their goal is to assist
blinded veterans (BVA, 2015). We will contact the seven National Field Service Officers and tell them who we
are and what we have to offer. By us telling the officers our information they can start promoting our products
via word of mouth to different veterans that they assist all over the United States.
Another group one will also reach out to will be the National Federation of the Blinds (NFB). The NFB is the
largest organization of blind and low-vision people in the United States with over 50,000 members. One will
focus with Operation Freedom Bell because it focuses on rehabilitating the wounded veterans. The
rehabilitation training is a 6-9 months residential program. One will provide the wounded veterans with VIBE
glasses for them to be tested to see if we will need to improve them. By having the Operations Freedom Bell test
our product we will build a good reputation, which can lead to individuals to purchase our product.
Caregivers
One will promote and advertise to caregivers is via the Family Caregiver Alliance (FCA). The FCA is a
nonprofit organization in the country that provides caregivers with the assistance they need, such as education,
services, research, and advocacy (Caregiver, 2015). One will send different brochures and information of who
we are to the board of directors and the staff. We will show our support to caregivers and also try to attend any
conventions that they have to speak to them. The FCA has “tech4care” caregiver products in which they
connect companies that develop products with families they can serve. By being able to be part of this group it
will give us the advantage of being able to connect to our market.
Purchasing Managers
The Association for Healthcare Resources & Materials Management (AHRMM) is the premier membership
groups for healthcare supply chain professionals and it strives to provide education, information, and resources
necessary for its members to remain oat the top of the field (AHRMM, 2015). AHRMM has an annual
26. conference and exhibition where a particular company can raise brand recognition and establish valuable
business relationships, whether onsite or off (AHRMM, 2015). This can be a great opportunity for VIBE glasses
to recognize in a higher scale.
One will also connect with Veteran Affair (VA) hospitals that are all across the United States. There are over
154 hospitals and 875 clinics that are run by the VA. Ophthalmology departments in VA hospitals have invested
in new technology and made improvements to eye clinics—providing veterans access to some of the most
advance eye care equipment and treatment available (VA eyecare, 2015). By VA wanting the best for their
patients it is our opportunity to show them what we have to offer to their veterans with VIBE glasses. This can
be the opportunity for VIBE glasses to become the next great equipment for blind veterans.
28. Management Team
Chief Executive Officer, CEO
The President and Chief Executive Officer (CEO) of the team is Chano Barron. He received his Bachelor’s
Degree in business with the concentration of management from Cal State Monterey Bay (CSUMB). He was
previously instrumental in developing the Google Glass product during his time as an executive at Google.
Barron has extensive experience in negotiating and landing government contracts for new technology. As CEO,
he will use this experience to supervise the clear communication between manufacturing and marketing of
VIBE glasses.
Vice Presidentof Financials
Jesse Cecana is the Vice President of Financial Analysis and Planning. He received a Bachelor’s Degree in
business with a concentration in accounting. Cecana has experience building sales models and financial
analysis for start-ups during his time as senior advisor at Y-Combinator. He will use the experience gained in
the dynamic incubator environment to guide and analyze VIBE sales goals and revenue plans. He will monitor
revenues with production schedules to optimize manufacturing costs and ensure profitable margins are
attainable by Sales and Marketing. Cecana will report directly to our CEO and collaborate with CMO and Head
of R&D.
Chief Operating Officer, COO
James Foster is the Chief Operations Officer (COO). James Foster received his Bachelor’s degree in business
from CSUMB. He managed Wizcom Tech’s launch of their talk-and-text mobile translator pen. The mobile
translator pen functioned as a technological aid supporting language translation and required expertise in
optimizing the user experience with technology. His experience in multimodal device design will greatly assist
the audiovisual requirements necessary to launch VIBE glasses. Foster reports directly to the CEO and will
supervise R&D, CMO and CFO.
Marketing Director
Savanna Hardin is the Marketing Director. She received two Bachelors in Advertising and Marketing from
Menlo College. Hardin has experience as the chief marketing officer of Sunglass Hut building and executing a
marketing plan supporting national sales. She will use this experience in national brand management in sun
wear specific markets. She will fuse technology and fashion to effectively brand VIBE glasses. Hardin will
report to Operations as well as collaborate with VP of Finance.
29. Directorof ResearchandDevelopment
Michael Anguiano is the Director of Research and Development (R&D). He received two degrees: an associate
and bachelors, both in business administrations with a concentration in information technology/E-commerce.
Anguiano worked on the development team for GoTenna. He has experience fusing multiple wireless
technologies into unified devices. He will use this to build a seamless user interface for the audiovisual
integration necessary for VIBE glasses. Anguiano will report to operations and collaborate with Finance. In
addition to our leadership team, VIBE will also have a competent sales force with experience in government
sector and medical equipment sales in order to put our glasses in the hands of our customers. We will also have
a manufacturing team that is based initially in the United States to maintain quality control.
Figure 3: Management Team
Chief Executive
Officer
Chief Operations
Officer
Vice President of
Financials
Marketing
Director
Sales Team
Research and
Development
Director
Legal Services Manufacturer
30. Boardof Directors
Since we are entering a highly profitable market with lots of potential, as a venture team we will file the
company as a corporation as it will protect the initial founders from in liabilities, so by law we are required to
carry a board of directors. The board of directors we create will hold both internal and external candidates. We
believe we hold a strong foundation with our company, however we sense the need to bring in other highly
qualified individuals to fill any gaps of expertise we might have. The board of directors will be a key
component towards launching VIBE Glasses. The board of directors will appoint any new officers, oversee the
affairs of the company and hold the company to strong ethical guidelines, One Important aspect of the board of
directors is the firm would need to bring as individual onboard that is either a part of the VA or the National
Federation of the blind. This will show a credible signal within our company. Our Board of Directors will be
composed of four different individuals whom work in different companies that are vital to the success of S.E.E.
Company. In our board of directors we will have our own CEO and COO. We will also have the First chief of a
VA center and also the National Vice President of the Blinded Veterans Association.
Chano Barron (CEO/ Founder, S.E.E. Company)
James Foster (COO, S.E.E. Company)
Russell C. Williams (First Chief, VA Hines Blind Rehabilitation Center)
Robert Dale Stamper (National Vice President, Blinded Veterans Association)
Boardof Advisors
S.E.E. would also create a board of advisors that would provide us for guidance and advice. The panel of
experts will hold no legal responsibility and give non-binding advice. The board of advisors will consist of four
different individuals with complementary expertise. Our board of advisors will hold an entrepreneur, a
marketing advisor, engineering technologist, and a management consultant.
Jefferson Kise (Entrepreneur)
Sanjay Lanka (Marketing Advisor)
Miguel Flores (Engineer)
Sumadhur Shakya (Management Consultant)
Operations Plan
Day-to-Day
S.E.E. Company will operate their day-to-day operations from its facility located in Marina, California. To
lower the cost of our production one will be outsourcing the production of the product. Once the manufacturer
ships out product to our facility the inventory management team will be in charge of the inbound and outbound
31. logistics. To add on, within the facility there will also be the, financial team, marketing team, and customer
service team.
Outsourcing & Partnership
The foundation of VIBE glasses starts our partnership with Microsoft. The technology that makes our product
viable starts with innovation made possible because of Kinect. Kinect is a line of motion sensing input device
composed of three-hardware innovative iteams:
Color VGA video camera- the video camera aids in facial recognition and other detection features by
detecting three color components: red, green, and blue.
Depth sensor- an infrared projection and a monochrome complementary metal-oxide semiconductor
sensor work together to see 3-D
Multi-array microphone- array of four microphones that can isolate the voice of a person (Crawford,
2010)
A partnership with Microsoft allows us to build upon this technology and allows for further innovation. Critical
to VIBE’s success is the quality of our glasses. To ensure quality, S.E.E. will outsource manufacturing to
Foxconn. Some of the products that Foxconn manufactures are the Apple iPhones, TVs for Sony, Sharp, and
Toshiba, game consoles for Sony, Microsoft, and Nintendo (Kan, 2012). We will enforce strict quality control
measures with Foxconn and will be included in our contract agreement with Foxconn.
Our company’s main partnership will be with the Veteran’s Association Hospitals. S.E.E. has just obtained
approval from the General Services Administration as a non-governmental agency to supply VIBE glasses to
VA hospitals. S.E.E. has entered into a contract discussions with the VA Federal Supply Schedule program.
This will create a long-term contractual agreement to provide VIBE glasses throughout all VA hospitals.
Inventory Management
Inbound Logistics
The inbound logistics team will be the one in charge of storing all the products in the warehouse. They will also
be in charge of having all the products in individual boxes and ready to ship. To add on, the inbound logistics
team will have to keep count of how many products are in stock. This will be accomplished by using the
barcode system to keep track of the inventory in a dataset. By keeping track of the inventory in the dataset they
can keep track of when inventory is low and a reorder needs to take place. The inbound logistics team will
always have to be in contact with the manufacturer to know where they stand with production.
32. Outbound Logistics
The outbound logistics team main duty will be to take the orders of the VA Hospitals, and customers. Once an
order is taken and processed in the system the system will automatically pass the information to UPS that in
order has been place. By having our system connected with UPS they will know when they have to pick up any
order to be shipped to customers. Lastly, the outbound logistics group will contact the finance department so an
invoice can be processed.
MajorTasks and Functions
The engineers will be the ones to personally teach the account managers all the functions of VIBE glasses and
how they work. The account manager will then be the one to go to the VA hospitals, to talk to administration,
physicians, and therapists. The communication between the account manager and the administration, physicians
and therapists is essential because he will be the one to introduce VIBE glasses. Then it will be important that
the account manager teaches the therapists how VIBE glasses function in order for the therapists to teach the
patients. As there are over 246 VA Hospitals around the United States that can potentially offer VIBE glasses to
their patient’s one will have to have more than one account manager in order to be the most efficient (VA
Governance, 2015).
FinancialTeam
Our financial team will mostly be outsourced to a temp agency to reduce costs. The CFO will oversee this
department and be responsible for all major accounting duties including maintaining of the balance sheet, the
income statement, budgeting, and all financial projections. The CFO will also be responsible for maintaining
relationships with potential investors and bankers if outside funding is ever sought. The outsourced portion will
deal with accounts receivables, accounts payable, and payroll. They will ensure that all invoices will be
collected within thirty days of the invoiced date.
LegalTeam
Legal services will be outsourced to a local legal counsel specializing in contract law. Their primary function
will be the drafting of contracts made to partnerships aforementioned. Once contracts are drafted and agreed
upon, our legal counsel will only be contacted when needed.
Web Developing Team
Website development will be outsourced to a local website developer. Our website will be our primary source
of information for physicians and friends and family of individuals who are blind. Video demonstrations will be
available on our website to show how VIBE glasses work and their effectiveness.
33. Customer Support
The primary customer support that VIBE will offer to our customers will be a help line. The help line will be in
service weekdays from 8 a.m. to 5 p.m. Pacific Time and Saturdays from 8 a.m. to 2 p.m. Our customers will be
assisted by our operators who have been trained specifically to handle questions or issues that arises with their
VIBE glasses. In addition, we will also have a website where the customer’s caregiver will be able to reach us.
Within the website there will be a place where the caregiver will be able ask any question to our customer
support team. If it is within our work hours the caregiver will receive an answer within 30 seconds. One wants
the customer to have the best customer support available to them. So, by doing this we guarantee that they will
be satisfied with our support.
Quality Control
Our main priority is for our customers to be satisfied 100 percent with their VIBE glasses. In order for VIBE
glasses to achieve the customer’s expectations, the quality control is crucial for our success. Before the
customer receives its VIBE glasses they will be inspected by the R&D team one last time to see if there are any
problems present with our product. One will randomly test samples of our products to see if they properly
function. We will also give our customer a 30-day money-back guarantee if they are not fully satisfied with our
product. A follow-up phone call will be done after 45 days of a customer having VIBE glasses. By doing so,
this will show customers that we value them and any comments that they have for us. In addition to the quality
control that we will provide in our facility our manufacture will have to abide accordingly to a contract that will
state that the service quality of VIBE glasses will be 98 percent. With this being said when we receive
production at most only two percent of VIBE glasses could be deficient if the percentage is larger they will have
to pay a finance fee. This will guarantee us that the manufacturer needs to do a good job in the production of
our product.
35. Sales Forecast
Sales Year1
For the first year sales, we anticipate acquiring a low percentage (2%) of the total number of visually impaired
veterans within our initial target market. There is 1552 VA hospitals and clinics throughout the United States
and Puerto Rico with on average 120 visually impaired veterans per hospital or clinic. We will release VIBE
glasses initially into the Sierra Pacific Network. This market includes 104 VA hospitals and clinics. We expect
to sell 249 VIBE glasses during the first year. At a selling price set at $2,500 and a unit cost of $550, it still
represents a significant gross profit of $468,000. A secondary revenue stream will be available for S.E.E. from
the selling of insurance plans priced at $9.99 per month. For fiscal year 1, this represents an additional $8,000.
For year 1, our total net income is projected to be $161,000. A slow integration will be introduced by fiscal
years end to expand into more VA regions.
Sales Year2
The Desert Pacific Healthcare Network region is Fiscal year 2’s next target market. This region contains 63 VA
hospitals and clinics; representing 167 total VA hospitals and clinics where VIBE glasses would be available.
We anticipate gaining another 1% of the market within the first region and 3% in the new region. Forecasted
sales are set to 360 VIBE glasses in fiscal year 2. This represents a 30.8% increase in sales from year 1 to year
2. As more confidence is built with VA hospitals, continued integration into more regions will occur. VIBE
glasses will be made available to the west coast by the end of fiscal year 3 with plans to expose the entire
network of VA hospitals and clinics to VIBE glasses commencing in the fourth year of operations. Expected
gross profit is set a little over $700,000. Net income for fiscal year 2 is project to be set at $500,000
representing an increase of 68% from the previous year.
Sales Year3
During the beginning of fiscal year 3, an investment of $20,000 will be made for advertising. This will help the
general public be aware of VIBE glasses. Also, full integration into the west coast of the VA network of
hospitals and clinics will be complete by the beginning of fiscal year 3. This means that VIBE glasses will be
made available to a total of 194 VA hospitals and clinics. We project 1,200 units to be sold during this fiscal
year. Projected gross profit is set at $2.4 million and net income projected to be around $2 million. With the
increased exposure and full availability of VIBE glasses throughout the entire VA network, we anticipate sales
to increase substantially in year 4.
36. Start Up Expenses
Building Lease
Budget: $61,440
The company will be leasing a building in Marina, California. The warehouse that one will be established in
will be approximately 6,400 square feet each square feet costing $.80 and a monthly cost of $5,120. Activities
supported by this location include; customer service, marketing, research and developing, and storing the
inventor.
Remodeling Improvements
Budget: $50,000
The warehouse will have to be remodeled in order for us to perform day-to-day operations. Some of the
remodeling that will take place will be to have different offices for the different departments. Other
improvements that will be done will be to add additional restrooms, and a conference rooms. For this
improvements S.E.E. Company will dedicate $50,000 for the different improvements.
Office Equipment
Budget: $30,000
After all the warehouse improvements are completed we will have to invest in office equipment. The equipment
that will be needed in our facility will be computers, chairs, desks, projectors, and telephones in order for
everyone to work efficiently. More office equipment will be purchased as time goes on or if other office
equipment is necessary.
37. Advertisement & Promotions
Budget: $16,500
S.E.E. Company will have different approaches of advertising and promoting for each area of focus that the
marketing department chooses. The focus groups will be support groups, caregivers, and purchasing managers.
Each of this focus will have different expenses.
The Blinded Veterans Association (BVA) holds an annual conference from August 17 to August 21, 2015. They
have an “Exhibits” on August 18-19 where exhibitors and sponsorships have the opportunity to talk. We will
send two of our representatives to attend this sessions and estimate the cost to be $585 per person via American
Airlines. One will also rent a hotel for $200 per night. Once at the event it is most likely that there will be a
conference fee in order to attend it. For this event one is budgeting approximately $2,000 in expenses.
As the Association of Healthcare Resources & Materials Management (AHRMM) hosts an annual conference
and exhibition where a particular company can raise brand recognition. One will send the marketing director
accompanied with the CEO to this event held in Indianapolis Indiana from August 9-12 of 2015. The
registration fee per person will be $1000 and if we include all the other expenses that accumulate when
traveling we are looking to spending around $3,000 per person. We will also want to exhibit VIBE glasses for
the public to be aware of them and in order to rent a booth space the cost will be $2,900. Overall this trip will
cost at around $9,500.
The other focus group that one will have will be reaching out to caregivers. One way to do this will be to attend
a conference that the Family Caregiver Alliance (FCA) offers. As they are located in San Francisco the
traveling expense will not be expensive because one is located in Marina, California. The budget that one will
have for this trip will be approximately $1,000.
In addition, one will have VIBE glasses brochures that will provide information about the product, the different
technology in the product, benefits, and contact information where one can reach our customers service line for
any questions. The cost to make a pack of 100 brochures can range at an average of $150 depending on the
company that one buys from. One will at least purchase ten packs of brochures at approximately $150, which
will cost us a total of $1,500. The brochures will be distributed to VA hospitals, and given in the different
conferences that one will attend.
Legal& Administrative Expenses
Budget: $70,000
In order to keep our facility and our employee’s safe one will have to have insurance. For employees there will
be medical insurance as well as workers compensation. Then one will also have to have insurance for the
38. building. The utility expenses that one will have will be the phone lines, internet, gas, electricity, and water.
Another expense that one will have will be the legal and accounting fees. For those months that the business is
starting one will need to money for the pre-opening salaries.
Warehouse Equipment
Budget: $10,000
Part of our facility will be turned into the warehouse where the VIBE glasses will be stored. Some of the
equipment that will be needed in the warehouse will the utilities that are necessary to package and ship the
VIBE glasses. One will have $10,000 for the warehouse equipment that will be needed.
ContingencyExpenses
Budget: $100,000
One never knows when something may go wrong and money needs to be available for unexpected expenses.
S.E.E. Company will have aside $100,000 in order to cover any expenses that were not accounted for.
Cost of Goods Sold
VIBE glasses will consist primarily of simple materials and modern technology. Partnering with a reputable
sunglass company like Oakley makes consumers confident in the product. Currently Oakley sells a particular
sunglass model called the “oil rig” that sells for $134.00. Adding another small component like ear bud
headphones helps provides more value for the user. Another one of our partners will be Apple. This company
can supply In-Ear Headphones with Remote and Mic for $79. The built in remote and mic make the product
more user friendly and are worth paying for. One of the most important components of the VIBE glasses is the
Kinect sensor. The Kinect system used for Xbox is sold for $70. In addition, VIBE glasses will also have the
software required in order for them to operate efficiently, which will cost around $100. Lastly, one will also
have to have a contract with the manufacturer in order to for them to produce the VIBE glasses. At the end each
unit of VIBE glasses is budgeted to cost $550 to manufacture.
Opening Inventory
Once the company is in order to start selling our opening inventory will be 100 units of VIBE glasses. As each
unit will cost $550 the total amount of expense for the opening inventory will be $55,000.
39. Staffing & General Selling and Administrative (GSA) Expenses
Startup Expenses
We will identify our staffing requirements in three phases by time and/or performance criteria; Startup, Second
Phase and Third Phase. Startup will be defined as the time before initial funding up to and including the first 6
months after funding. First Phase will be 1-2 years after startup or when first contract is landed. Second Phase
will be 2-5 years or after the third contract is landed. Our third phase hires will indicate success in the market
and allow the company to begin focusing on maturing the organization.
Executive Team
CEO, CFO, COO, Director of Marketing (DM), Director of Research & Dev. (DRD)
● CEO
Executive Assistant
● CFO
Financial Analyst
Entry Level College Finance Graduate
Accountant
● COO
Executive Assistant
Legal Consultant
Client Services
● DM
Graphic Designer
Web Designer
Advertising Specialist
Government Channel Manager
Medical Equipment Channel Manager
● DRD
Mechanical Design
Software Design
Integration Specialist
GSA Expenses
40. GSA are the expenses associated with the actual market operations of the firm such as generating revenue,
getting product out the door, dealing with suppliers, responding to customers, paying the bills and other
important expenses.
Salaries & Wages
The majority of GSA expenses for SEE will be in salaries. We will be comprised of a team of highly qualified
individuals that include the five founding members, engineers, customer service representatives, marketing and
legal departments as well as a bookkeeper.
Founders
The initial staff that will be compensated are all five founding members of Vibe Glasses which will receive a
minimal and reduced salary. They will share all aspects of running the business. The implementation of this
salary structure will preserve as much working capital which can be used in other operations. Chano Barron,
Jesse Cecana, James Foster, Savanna Hardin and Michael Anguiano will all receive a salary of $3,000 monthly,
$36,000 annually, which totals $180,000 annually for all five founders for the first year.
Once the first contracts are landed, this will indicate the movement to the second phase which will allow the
team to begin building out the internal systems of the business. The next hire will be an office manager to
handle the increase in administrative duties with the growing team, and act as an executive assistant shared by
the management team. They will work 40 hours weekly at a salary of $1800 monthly. The management team
will still be primarily handling all essential duties of the business at the same pay rate as startup.
Our third phase hires will be full time accountants, legal team, and client services personnel. We will begin
looking at hiring additional R&D staff to begin new product development with an eye to sustaining growth in
the market. The management team salaries will increase to $5,000 monthly compensation.
Research & Development
Research and development will be a main allocation of company funds; we cannot create an effective and
successful product with the latest technology if we do not retain highly qualified engineers. There are minimal
requirements for a candidate to be considered for the position. They must hold a Masters in mechanical
engineering or learning technology. In addition they must have prior experience in our industry. According to
Salaries.com, the median salary for a full time mechanical engineer is $65,606 dollars a year. As a company, we
plan on offering the qualified candidates the median compensation, as it is a fair market salary and will serve as
incentive for the particular individuals to be a part of our great company. We will be hiring a total of two
engineers, which will give us a total annual expense of $131,212.
41. Marketing Sales
Once funding has occurred, the team will begin hiring additional staff and initially focus on building out the
sales team to increase revenue. The first hire will be a Government Channel Manager and Medical Equipment
Channel Manager to assist the Marketing Director to locate and close potential government contracts and giving
market feedback to the Oakley production team. They will be compensated by a salary based commission
structure. They will earn $1,000 monthly salary and 2% commission of any executed contract. Marketing our
new product will be much more simple than expected; we will use VA hospitals as a flagship distribution
channel. There will be a startup budget of $10,000 for marketing dedicated to servicing the VA market. We will
maintain a monthly budget of $1,000 to cover the costs involved to implement the marketing strategy. Simple
commercials will advertise what VIBE glasses are and how individuals interested in our product can obtain
more information.
Customer Sales
Our customer service department will also be a crucial part of our team. We are looking for individuals who
hold a high volume of customer service and call center operations experience. Our customer service
representatives will respond to customer inquiries, compliments, complaints and any troubleshooting questions.
We will start with hiring a client services manager; their annual compensation will be $35,000. Then as funds
increase, the department will expand to house representatives who will be paid hourly and scheduled at the
manager’s discretion. The Customer Service Representative will make $10 per hour, as the company continues
to grow we will assign raises if necessary.
Legal & Accounting
As a company we must insure we are operating under all legal requirements and regulations, we will be hiring
an outside legal and accounting firm. The legal firm will offer limited general legal advice and handle any
disputes that may arise. The legal team will be paid a $20,000 annual retainer for consultation. When funds
allow, an accountant will be hired to aid the CFO and will be given an annual salary of $55,000.
Funding
The founders of S.E.E. Company will be the first ones to put down money to start the company. CEO, Chano
Barron, will be investing $100,000, as he owns 25% of the company. The remaining founders will put down
$75,000 each, as they own 18.75% of the company. All the money that the founders collected is personal saving
and money that they were able to raise from friends and family. In addition, S.E.E. Company will hold a crowd
funding campaign through Kickstarter.com to raise a total of $250,000. Backers could pledge $1,750 and in
return they will receive the presales of VIBE glasses. The backers are getting a 30% discount on the VIBE
glasses that are originally priced at $2,500.
43. Appendix A
Resumes
James Dillon Foster
461 Dela Vina Avenue
Monterey, CA 93940
831-359-7387
jafoster@csumb.edu
Objective___________________________________________________________
To gain an internship in the agricultural industry in the Salinas Valley. I am eager to work with others, face new
challenges and grow as an individual and employee while working as an intern for Serendipity.
Education__________________________________________________________
Cal State Monterey Bay Seaside, CA
Bachelor of Science: Business Administration :Ag-Business Concentration in progress
Work Experience____________________________________________________
Chili’s Restaurant, Seaside,CA 5/17/15-Present
Server/Quality Assurance
Started as host and was promoted to full time server in 5 months
Enhanced Quality Assurance tactics and effectiveness
Gained strong verbal communication skills
On the Beach SurfShop, Monterey, CA 8/1/14-3/1/15
Sales/Retail
Advised customers with expertise on surfboards, wet suits, snowboards, skateboards, etc.
Improved communication strategies with customers
Learned customer service
Qualifications
Work well in team driven environments
Conversational Spanish speaker
Punctual and reliable
Dedicated and driven student
Experience with growing fruits and vegetables
1 3 0 R E CH T S T, H OL L IS TE R , CA , 9 5 0 2 3
P H ONE ( 8 3 1 ) 5 2 4 - 1 6 7 2
44. J E S S E C E C E N A
EDUCATION
B.S. in Business Administration, expected Dec. 2015
California State University Monterey Bay, Seaside, California
Emphasis: Accounting
A.A. in Business Administration, 2012
Gavilan Community College, Gilroy, California
LANGUAGES
English- Fluently
Spanish- Fluently
COMPUTER SKILLS
Microsoft Access, Excel, Outlook e-mail, Power-point,
Word
WORK EXPERIENCE
Rite Aid (Oct. 2004- Present) Assistant Manager
Hire, supervise, and as necessary terminate employees.
Manage supplies and inventory as directed by company and its
suppliers.
Assist Manager in assuring that all employees follow federal and
state labor laws including taking breaks and recording all time
worked.
Attend all policy meetings of the company, meetings with
suppliers and weekly meetings with manager.
Assist the manager in assuring that daily deposits and receipts of
the company are made in the depository designated by the
company and follow deposit and accounting procedures.
45. Michael Anguiano
556 Calaveras Dr.
Salinas, California 93906
831-261-4981
M. anguiano831@hotmail. com
Objective
A intellectually curious individual looking to gain proper experience to reach personal goals, where I can
maximize skills as an individual obtain through my education and previous employment.
Experience
2014 Aug. - Oct JP Morgan Chase (Couldn’t Accommodate School Schedule) Salinas, California
Teller
Participated a vital role in the customer banking experience at Chase
As a Teller I was the first and most frequent point of contact with customers.
Provide high-quality customer service by handling financial transactions accurately and efficiently .
Day-to-day activities spent having professional and friendly interactions with both customers and Chase
team members.
Also was successful in making referrals to bankers to cross-sell or up-sell products
2013 Nov-2014 June Finish Line Inc. Salinas, California
Sales Associate
Performed sales and customer service responsibilities.
Have the ability to meet daily and weekly sales goals
Perform cashiering, stockroom upkeep and store upkeep as needed.
Maintain company standards regarding personal sales metrics.
During peak sale periods worked for long periods up to a 10 hour day.
2013 Feb. - Nov. Cardinale Way: Mazda & Volkswagen Salinas, California
Detailer
Clean and refurbished new and used automobiles to reach customer/sales standards.
Work appropriately and accordingly with a team to reach weekly goals
Train new hires on policies, duties, and equipment.
Have effective communication between front office and detail shop.
Maintain great customer satisfaction
Education
2013- Current California State University, Monterey Bay Seaside, California
Bachelor of Science in Business Administration, Expected Spring 2016
Concentration: Information Technology
2010-2013 Hartnell Community College Salinas, California
Associate of Science in Business Administration, May 2013
Grade Point Average: 3.2 out of possible 4. 0
2006-2010 North Salinas High School Salinas, California
High School Diploma, June 2010
40+hours community service completed
Skills/ Interests
Bilingual speaker, writer, reader in English and Spanish
Customer service & Cash handling experience
Proficient user with Microsoft Office programs: Word, Excel, Power Point, Publisher and Adobe Photo Shop
46. Chano Q. Barron
629 Mae Avenue, Salinas CA 93905
(831) 594-3633
cbarron@csumb.edu
Objective
Seeking a position in the agricultural industry to work in thesupply chain or logistics department where I can further enhance my skills, knowledge,
and experience in a team dynamic environment.
Qualification & Skills
Bilingual Spanish/English
Customer Service Specialist
Proficient in Microsoft Software
Team Leader
Adaptableto any situation
Working events up to 500 people
Experience
Salinas Community YMCA Salinas, CA April2013-Present
Membership Staff
Customer Service
Cash Handling
Proficient in office equipment
Custodial duties
Daxko operations
Salinas Community YMCA Salinas, CA September 2013-May 2014
Tutor
Leadership skills
Counseling
Supervising children
Proficient in school material
Salinas Community YMCA Salinas, CA June 2013-August 2013
Summer Camp Counselor
Supervising up to 15 children
Creating games
Always active
Leading children
Education
California State University Monterey Bay Seaside, CA August 2013-Present
Dean’s List
Scholarship Recipient
Business Administration
Hartnell Community College Salinas, CA August 2011-2013
Associates Degree in Administration of Justice
Dean’s List
Athlete
Alisal High School Salinas, CA August 2006-2011
Honors List
Top 100
Avid Graduate
Athlete
47. SavannaHardin
831.345.0420
savhardin13@gmail.com
Emily’s Good Things to Eat - Manager
Experiencedmanagerof all aspectsof businessinbakery,deli andretail operationsforthree years
Managing all operationswithgrosssalesof 1.2 millionannually
Expertise inemployee management,development,andretention,productdevelopment,merchandising,
productionscheduling,processimprovement,salesandmarketing
Extensive marketknowledgeof the Westside of SantaCruz, withprovenabilitytouse ittogrow sales
Business Skills and Expertise
- Quickbooks,Access,Excel
- TimesheetsandPayroll
- Accountmanagement
- Accountreconciliation
- Accountreceivables
- Accountpayables
- Vendormanagement
- AdvertisingandMarketing
- Salesanalysis
- Merchandising
- Productdevelopment
- Procedure refinement
- Procedure development
- Waste reduction
- Hiring/Firing
- Employee retention
- ShiftScheduling
- ProductionScheduling
- Maintenance Scheduling
- Equipmentpurchase
- Donationmanagement
Professional Highlights
- Business Improvement I identifiedandstreamlinedwastefulemployee practicesandinefficienttaskdelegation
indeli,bakery,retail,andfinancial operationsincreasingoverallbakeryproduction.
- Waste Reduction I identifiedandeliminatedingredientcostandproductionschedule
inefficienciesindeli andbakeryoperationstostreamline productionandmatchdemand.
- Increased Sales I increased year on year sales by over 30% in 4th
quarter of 2014 by developing and
bringing to market new products targeting and converting low price point customers into higher profitability
without cannibalizing existing product sales through my personal knowledge and experience in the Westside
Santa Cruz breakfast market.
- VendorManagement I have very strong relationships withall local bakeryrelatedvendors(paper
goods,driedgoods,produce,etc) andaggressivelyreducedvendorcostsbynegotiationandidentificationof
individualvendortechniquestopadinvoices.
- Employee Management I successfullymanageda 17-44 personworkforce withretentionratesregularly
exceedingayear.I am excellentattrainingemployeesandelicitingtheirbestpotential.
48. - CustomerService I trained the staff in sucha waythat our customerservice wasnotonly
impeccable,andincreasedaverage ticketprice,butwasalsoable to retainvaluable marketinformationthatI
couldimplementintoproductdevelopment.
49. 1
Appendix B
FOR IMMEDIATE RELEASE:
Contact:
Chano Barron
Founder
Phone: (831) 555-1324
cbarron@csumb.edu
www.vibeglasses.com
Sustainable Effective Efficient Company Setto Introduce Visionary
Intelligence by Evolution (VIBE) Glasses
Marina, CA, March 14, 2015—
In what many are calling product of the year, Sustainable Effective Efficient (S.E.E.)
Company will make available by year’s end Visionary Intelligence by Evolution (VIBE) glasses.
These revolutionary glasses identify hazardous objects and obstacles by replicating the
environment in the line-of-sight of the person wearing them using existing and innovating
technology. These glasses alerting the consumer through built in ear buds. VIBE glasses will
consumers who are visually impaired regain their independence using our assistive technology.
S.E.E. was founded by Chano Barron, Savanna Hardin, Michael Anguiano, James Foster,
and Jesse Cecena. All five are students at California State University, Monterey Bay. The idea
was formulated on the CSUMB campus as part of a business entrepreneurship class.
Through a partnership with Operation Freedom Bell of the National Federation of the
Blind, S.E.E. has successfully tested VIBE glasses with wounded veterans and helped them gain
full independence using these innovative glasses. VIBE glasses will initially be made available
through the VA or medical practitioners. One can also purchase VIBE glasses directly from their
website, www.vibeglasses.com. S.E.E. is also happy to announce that 5% of profits coming via
VIBE glasses will be made directly to Operation Freedom Bell.
50. 2
Appendix C
Startup Expenses
Startup Expenses 7/1/2015
S.E.E.
SOURCES OF CAPITAL
Owners' Investment (name and
percent ownership)
100,000$
75,000
75,000
Micheal Auguiano 75,000
75,000
400,000$
Crowdfunding
250,000$
250,000$
STARTUP EXPENSES
Buildings/Real Estate
61,440$
50,000
111,440$
Office Equipment List
5,000$
10,000
2,000
2,000
Phones 1,000
10,000
30,000$
Fiscal Year Begins
Furniture
Computers
Printers
Projectors
Other
Total Capital Equipment
Crowdfunding (Kickstarter Campaign)
Total Crowdfunding
Lease
Remodeling
Total Buildings/Real Estate
Chano Barron 25%
Jesse Cecena 18.75%
Savanna Hardin 18.75%
James Foster 18.75%
Total Investment
Location and Admin Expenses
-$
2,300
20,000
5,000
45,000
-
72,300$
Opening Inventory
55,000$
-
-
-
-
55,000$
Advertising and Promotional
Expenses
12,000$
1,500
3,000
16,500$
Other Expenses
10,000$
-
10,000$
100,000$
100,000$
SUMMARY STATEMENT
Sources of Capital
400,000$
250,000
650,000$
Startup Expenses
111,440$
30,000
72,300
55,000
16,500
10,000
100,000
100,000
495,240$
Working capital
Total Startup Expenses
Capital equipment
Location/administration expenses
Opening inventory
Advertising/promotional expenses
Other expenses
Contingency fund
Owners' and other investments
Crowdfunding
Total Source of Funds
Buildings/real estate
Total Advertising/Promotional Expenses
Warehouse Equipment
Other expense 2
Total Other Expenses
Reserve for Contingencies
Working Capital
Other/additional categories
Total Location and Admin Expenses
VIBE Glasses
Category 2
Category 3
Category 4
Category 5
Total Inventory
Travel/Conferences
Printing (Brochuers)
Other
Rental
Utility deposits
Legal and accounting fees
Prepaid insurance
Pre-opening salaries
