NavAssist - Bussiness Plan Competition 2008
Short Description
Business Plan to implement a product for the visually impaired...
Description
Business Plan ‘08
Table of Contents Section Executive Summary
Page 3
Company Overview
5
Mission Statement Goal
Products and Services
5
Cell Phone GPS Capabilities Accessories Pricing NavAssist Potential
Market and Competitive Analysis
9
Industry Overview Characteristics and Needs of Target Market Competition
Management and Personnel
12
Key Individuals Personnel
Operations Plan
14
Expansion Marketing
Critical Risks
18
Internal Risks External Risks
Financial Statements
21
Cash Flow Break-Even Analysis Income Statement Balance Sheet
Offering
26
Funds Required ROI Potential Exit Strategies
Appendix A (Technology)
27
Appendix B (Personnel)
30
Appendix C (Sales Forecast)
31
Executive Summary
Market Analysis The main target market of NavAssist for the first year
Company Overview
of operations will consist of the visually impaired who are currently employed in the state of Arkansas. Arkansas has
NavAssist is a company that will provide visually approximately 90,000 blind people, of which 30,000 are impaired individuals with a device that will help improve employed. Few companies have offered GPS technology to their quality of life. We are dedicated to enabling our assist the blind; however, they have not been widely customers to overcome the mobility barrier by offering accepted due to high pricing and lack of training for the end them an affordable and high quality product. user. By eliminating those barriers we will attract this
Product and Services Our product enhances the ability of the blind to fulfill two of their most important needs: navigation and communication. NavAssist will combine cutting edge GPS elements with an audio command system to facilitate navigation for the blind and visually impaired.
untapped market.
Management The NavAssist management team will be operated by four key individuals with diverse backgrounds and work experience. Those four key individuals include: Ivan Gomez as Chairman, Kyle Wood as Chief Financial Officer, Kris Lance as Chief Marketing Officer, and Pablo Oropin as Chief Technology Officer. Each team member contributes unique skill sets and experiences that will strengthen the daily operations. The management team is committed to live out
Navassist
3
its vision of helping the blind improve their quality of life. To
extremely profitable company. After conservatively
achieve this, delivering a cost-efficient and high quality
forecasting sales among the target market, we have
product at all times is the priority. NavAssist management
constructed financial statements that reflect NavAssist
team is well prepared to handle all aspects of operations to
strategy.
achieve its goal.
Offering
Operations
NavAssist seeks an initial first year investment of
NavAssist aims to maintain operations that are
$625,000 in equity financing. NavAssist requires this
simplistic, cost efficient, and that can be handled in a timely
capital to cover its start-up costs until cash flows are
manner. ECCO Design, Inc. will provide the development
available.
and manufacturing of our device. NavAssist will then be in
in the NavAssist, Inc. We calculate an average per year
charge of installing the GPS software package and
rate of return on investment of 35% over the first five years
applications. At that point the device will be ready for the
of operations.
In return for your risk we offer 30% ownership
customer to order. Upon receiving an order, we will ship product to its destination by way of the UPS carrier.
Financial Statements NavAssist has an opportunity to explore an underserved market. By empowering this market with greater mobility, NavAssist has a huge potential to become an
Navassist
4
Goals
Company Overview
NavAssist will combine cutting edge GPS elements with an audio command system to facilitate navigation
By using current technology NavAssist will create an within one foot for the blind and visually impaired. The innovative product that will cater to and assist the visually device will be user-friendly and the operating system will be impaired public. Our product will help the sight-impaired easily handled. This device will enhance mobility among the keep up with a very mobile and fast paced society. By visually impaired by complementing previously available using GPS technology alongside mobile communications, alternatives (e.g. seeing –eye-dogs) and providing a holistic NavAssist will bring services that will help increase their depiction of their surroundings. The product will be functions in everyday life. manufactured in an economical and cost effective manner,
Mission Statement The mission of NavAssist is to provide visually impaired individuals with a device that will help improve their quality of life. We are dedicated to enabling our customers to overcome the mobility barrier by offering them an affordable and high quality product.
making it affordable to the end user. Our intent is to enable the product to be included in the coverage of health insurance plans.
Product and Services The product and service combination of NavAssist merges the technology in the cell phone and global
Navassist
5
positioning system (GPS) industries in a manner which is practical for improving the lifestyle of the blind. Our product enhances the ability of the blind to fulfill two of their most important needs: navigation and communication. We offer a device similar to a standard cell phone with GPS capabilities. However, our product is based mostly on the reliance of a voice command system that makes the instructions within the menu and the courses of action taken by the user audible. NavAssist also incorporates the latest and most precise GPS systems, helping the blind visualize their route down to a foot of distance.
Cell Phone NavAssist cell phone system will use the GSM 900 and GSM 1800 frequencies so that it will work using any SIM card that cell phone companies may provide.
It will include keypad buttons, a microphone, charger input, and a battery. The keypad buttons are the most important in the external design of the product. Up and down arrows
The appearance of the cellular telephone will have a close and an enter button will be a large, easily recognizable, and resemblance to a basic cell phone seen in the public today. centralized on the device. The phone will also have the nine
Navassist
6
digit keys below that. Upon pressing the enter button, an
sidewalk.1 The information about the destination(s) will be
automated list of menu options will be voiced. The user can
entered through the keyboard and will be processed by the
then select the option by: (1) verbal affirmation of the
software to determine turn-by-turn directions by gathering
menu option title, (2) pressing enter as the option is being
data that is transmitted from the satellites to the GPS
said, or (3) pressing the respective number of the desired
receiver. Our GPS contains ample memory for storing
command. With the joystick, the user has the option of
frequently traveled routes as it traces and stores user
scrolling directly to menu of their choice. Additionally, the
movement. Accuracy is notified to users based on the
phone will have voice dial-up for all the contacts in the
number of aligned satellites.2
address book, as well as a feature with warning commands
Accessories
for the status of the system (e.g. low battery, weak signal).
Many accessories will be offered to
GPS Capabilities
maximize the usefulness of The GPS system will be embedded
NavAssist’s guidance system and
in the NavAssist phone, and it will
cell phone. Our headphone will
be able to advise an effective
help the user hear the commands
route when given a location. Accuracy is the defining quality of our GPS system, pinpointing the route within a foot of distance. The NavAssist utilizes the latest civil and military technology to 1
For more information, please refer to Appendix A, p. 27
2
Please refer to Appendix B, p. 30
guide users even while riding in a cab or walking down the
Navassist
7
accessories specified in the package. Shipping is for free. and respond to them as well. Protective casing and a
There is an annual update fee for software upload for maps
remote-locater (similar to key locaters) will be offered for
and points of interest of $30. Special locations layouts may
the device.3 Maps unique to specific cities and regions will
be acquired for an extra cost of $10.
be available to customers and can be easily uploaded onto
The initial investment per customer is as following:
our device from our website. These maps will ensure detailed and accurate information of the user’s area, including building information, street names, sidewalks, and other man-made and natural structures.
Product/Service
Product/Service price
NavAssist Device
$570
Software – Maps
$ 30
Total
$600
Pricing NavAssist has created an affordable product to make it widely available to any visually impaired person who has the desire to improve his/her quality of life. Compared to
NavAssist Potential NavAssist is aimed to serve clients who are legally
other similar products in the market, our product is over
blind and/or severely visually impaired. With the voice
sixty percent cheaper than the competition.4 The initial cost
command system, GPS technology, and mobile
for NavAssist device is $570 and it includes all the
communications, it is in our plans to adopt other services such as the news, weather forecasts, and satellite music
3 4
See also Appendix A, p. 27 Refer to Market and Competitive Analysis Section, p. 9
Navassist
8
stations for the comfort and enjoyment of the blind. Since our device is user-friendly and the technology can be easily
Market and competitive analysis
adaptable, this enables us to tap into other markets; for example, clients with less severe visual impairment problems - especially the elderly. As GPS technology and mobile communications
Industry overview According to the American Foundation for the Blind, every seven minutes someone in America will become blind
advances, our product will be modified accordingly.
or visually impaired.5 Approximately 10 million Americans
Upgrades of our product will be available for our customers
suffer from this kind of disability, and 1.3 million of them
with more capabilities and options that will enhance them
are legally blind. The Arkansas Department of Human
with a higher quality of life. We also acknowledge that
Services reported in a news release in January 2002, that
software will require attention in this regard as well. Maps of
close to 90,000 Arkansans share this disability.6
regions, city layouts, and points of interest change constantly. Our clients will be able to upload the most recent database of maps and have the most accurate information available at their fingertips at all times.
5
Taken from the American Foundation for the Blind.
6 Quinn, Joe, Director of Communications “DHS Division Helps Blind Arkansans Move into Workplace.” Arkansas Department of Human Services. 18 Jan. 2002. < http://www.arkansas.gov/dhhs/oc/nrelease/blindvr.htm> accessed on 6 Feb. 2007.
Navassist
9
Nationally, among persons aged 21 to 64 that suffer from visual impairment, only 41.5% are employed.7 This
Characteristics & Needs of Target Market
data is significantly lower than the estimated 84% of The main target market of NavAssist for the first persons within this age who were employed without any year in phase one of operations will consist of the thirty kind of disability. In Arkansas the unemployment rate for percent (27,000) visually impaired who are currently blind people is 70%.8 employed in the state of Arkansas. NavAssist is currently Mobility is the major challenge for the visually exploring the possibility of obtaining insurance coverage for impaired, and their choices to travel are limited. The its device so it can be available to blind people that may not visually impaired need some type of assistance in this have the economic means. regard; whether by a human guide, a cane, a guide-dog, or Within the past three years, few companies have any other device, the blind cannot move from one place to made attempts to utilize GPS technology to assist the blind. another on their own. However, up until now, it has not been widely available. After interviewing a member of the administration at Arkansas School for the Blind and the Deaf, we were told that there is an extremely small percentage of blind people in Arkansas using a GPS guiding assistant of any form. After research, it is noticeable that the main deterrents of
7
Leonard, Robin. “Statistics on Vision Impairment: A Resource Manual 2002 .” < Research Institute at Lighthouse International. 5th Edition, April 2002. accessed on 6 Feb. 2007. 8
Quinn.
the technology are the high price of the products already available and the complexity of using the product. Many
Navassist
10
among the blind believe that a GPS guiding assistant product would be a valuable tool in their life. With this GPS
Competition At present, the product and services offered by
guiding assistant, the visually impaired can obtain a broader
NavAssist have limited direct competition with other
sense of their surroundings that extends beyond the
organizations. Very few companies have either produced
immediate awareness that their canes and seeing-eye dogs
integrated GPS navigation systems, or mobile
provide.
communications for the visually impaired. The predominant
Despite the obvious practical advantages, the drawbacks of the costs and complexity of use drive
competitors in this field are the following: Sendero Group, a Company based out of California,
customers away. By integrating existing technology of GPS,
has developed a GPS navigation system that gives its user
cell phone, and PDA models, and catering the device to the
directions by a mechanical voice (voice command system).
blind, NavAssist will drive the price down and increase the
Sendero’s main market and research is done primarily in its
product’s value to the user. Value will increase as clients
home area. Sendero has had a main competitive advantage
begin to have multiple tools to improve their lifestyle in one
on adapting technology to the blind since the year 2000. It
reasonably-sized device. NavAssist will focus on the 27,000
has developed roughly seven different products catered to
potential blind customers who are employed in Arkansas
the blind. However, its BrailleNote GPS does not provide
and draw up to eight percent (2,700 customers) of that
cell phone capabilities and in addition totes a hefty price tag
population to buy the product in the first year by reducing
at $1,549.
economic limitations set by previous products.
Navassist
11
Trekker, designed and manufactured by Canadabased company, VisuAid, has developed an application
over the competitors to make its device more accessible to those who need it.9
adapted for the blind and visually impaired. The application provides talking menus, talking maps and GPS information that run in a personal digital assistant (PDA). Humanware’s
Management and Personnel
Pocket PC has been adapted to provide functionality to Trekker’s application. Trekker’s device has comparable
Key Individuals The NavAssist management team will be operated by
characteristics to those of Sendero’s BrailleNote GPS, but it
four key individuals with diverse backgrounds and work
also lacks the advantages of cell-phone capabilities. Its
experience. Each team member contributes unique skill
complex design has often resulted in a non user-friendly
sets and experiences that will strengthen the daily
interface with the visually impaired. Its price is $1,695.
operations. The management team is committed to live out
Although NavAssist has a disadvantage entering into
its vision of helping the blind improve their quality of life.
this market niche, NavAssist has the comparative advantage
To achieve this, delivering a cost-efficient and high quality
of providing a device that has been meticulously designed
product at all times is the priority. NavAssist management
for the up most functionality of the visually impaired while
team is well prepared to handle all aspects of operations to
providing navigation assistance and mobile communication
achieve its goal.10
simultaneously. NavAssist also offers an advantage in price
9
See Product and Services Section, p. 8 Please refer to Appendix D, p. 32 Resumes
10
Navassist
12
Kyle Wood
Ivan Gomez
(CFO) Chief Financial inancial Officer/Owner
(CSPO) Chief Strategic Planning Of Officer
Responsibilities: Accounting procedures
& Chairman/Owner
including preparation of financial statements and book
Responsibilities: Leading the strategy framework and
keeping, financial analysis, and administrative management
strategic planning process while capturing and analyzing
by ensuring uring that all of the business finances are-up-to are date
industry trends, competitive threats, ts, expansion
and remain current.
opportunities, internal performance, and deliver delivery of datadriven insights to help the progress of the company.
Pablo Oropin
Kris Lance
(CTO) Chief Technology Officer/Owner
(CMO) Chief Marketing O Officer & Public
Responsibilities: In charge of software
Relations/Owner
development, programming, testing software, creating
Responsibilities: Development and implementation of
training demos for customers, updating maps and
marketing strategies and activities, training and directing
Application Programming Interfaces, and overseeing the t
the sales force, analyzing new trends and markets, and
technology development.
administrative management.
Navassist
13
Personnel NavAssist’s personnel requirements for the first year of operations (phase one) will consist of the following:
room for expansion upon request. The estimated space necessary for operations is 5,000 square feet with a total cost of $4,000 per month. Scott Hamilton warehouse is a heated and air-conditioned facility. The remodeling needed
Office Type Jan '08 Feb '08 Mar'08 Apr '08 May '08 Jun '08 Jul '08 Aug '08 Sep '08 Oct '08 Nov '08 Dec '08 AR Manager 4 4 4 4 4 4 4 4 4 4 4 4 Staf 6 6 6 6 8 8 8 8 8 8 9 14
is minimal and the offices can be easily equipped inside of the warehouse. The equipment requirements consist of basic office equipment and specific software that will enable us to carry the day-to-day operations. The estimated cost for the computers, desks, and accessories the first year is roughly
Operations Plan
$135,000. The software needed consist of the Application Programming Interface (OpenAPI), licensed by MapQuest
NavAssist aims to maintain operations that are simplistic, cost efficient, and that can be handled in a timely manner. The operations will be directed out of the main
with an annual cost of $5,000, and Visual Studio for general programming with a cost of $500. NavAssist operations begin at ECCO Design Inc.
facilities located in Scott Hamilton warehouse, Little Rock,
which will provide the development and manufacture of our
AR. Scott Hamilton warehouse provides NavAssist with
device. ECCO Design is a New York based consultancy,
flexibility of operations since additions to original demands
which is highly experienced in helping businesses to develop
can be done almost instantaneously, thus, leaving NavAssist
innovative products that our users desire. It is also
Navassist
14
experienced in the telephony industry, and it recently has developed a PDA phone that is used by major user ECCO Design
End User
Follow-up
NavAssist
UPS
individually inspected and then passed to the engineering Department. At this point, programmers will
providers
upload the interface and maps, and will check that the
such as
devices perform at their optimal level. Finally, the devices
AT&T and
will be carefully packed along with their accessories and
T-Mobile.
stored at the warehouse until shipment. Once the Sales
Choosing
Department receives an order for the product, NavAssist will
ECCO
send an invoice to UPS for package pick-up. UPS will be
Design,
responsible and liable for the product until it is delivered to
will allow
the end user. Once the product is received and used by the
NavAssist
end user, a NavAssist’s employee will contact the customer
to obtain the device manufactured by Asian companies that
via telephone and ensure full customer satisfaction. If the
presently deal with ECCO Design in a cost effective and
customer requires assistance in how to further use the
timely manner. The estimated price for the development of
device, one of our programmers will proficiently guide them
the device is $80,000, plus a manufactured cost per unit of
in trouble-shooting. In case of a defective product, it will be
$212.
returned to the warehouse via UPS at the expense of After the manufacturing process, the devices will be
shipped to NavAssist warehouse where they will be
NavAssist. NavAssist’s employees will also contact customers periodically concerning updates of maps and improvements in software that will be conveniently available
Navassist
15
in two forms: download at the NavAssist website, or delivery of CD Software upon request. NavAssist will provide a one-year manufacturer
Expansion In Phase one, the first year of operations, NavAssist is expected to acquire eight percent of the employed blind
warranty for its device. In the case of a manufacture flaw,
people in the state of Arkansas. After spending a year in
the device will be returned to ECCO Design for inspection
our home office in Little Rock, AR, we will expand by
and/or replacement.
opening an office in Dallas, Texas. This is represented as phase 2 on the graphic. We will have trained managers and staff in December of the previous year in the Little Rock office to open the Dallas office. Our plan is to aggressively advertise the NavAssist name in Dallas and the surrounding area. Due to the large population in the small area, we foresee sales in the first year at Dallas to be $1,440,000, selling to 2,400 customers. In phase 3, starting in 2010, we will open an office in Houston, Texas. Again, the densely populated area will allow us to advertise aggressively and yield high sales. We plan to see
Phase 1 Phase 2
Phase 3
$1,800,000 in revenues from the first year of operation at the Houston office. In the following years we hope to expand the area of coverage in both Texas offices. In
Navassist
16
Dallas, we look to sale to the entire central region of the
distinctive characteristics.
state, and in Houston, we hope to reach extend its
marketing plan will focus on providing the most information
boundaries as far as Louisiana.
about the benefits of the product and service while forming
We predict sales will climb in each region until we 40% of our target market. When it appears we are
Therefore, NavAssist’s
a bridge of a lasting relationship with the customer. This will be achieved through the following ways:
approaching that mark in Arkansas we will begin selling a newly improved model of our product. We will then be able return to the early adopters of our device, as they will be looking for an upgrade. We predict that it will necessary to release the new GPS cell phone within year 2010 or 2011.
Expos NavAssist will design expos to specifically give
Beyond our five year strategy, we have considered the idea
potential customers the opportunity to test out the product
of opening additional offices in the southeast region and
and see how they can interact with their surroundings.
opening up an avenue for online orders.
Also, NavAssist will provide substantial information about its
Marketing
product and how the blind person can benefit from it. This
NavAssist will have a unique marketing strategy
marketing technique allows for personal interaction with the
through different channels of communication that will help
clients, allowing them to express their inquiries about the
the visually impaired learn about its product. Mass
product and service, and the restrictions that may impede
advertising through media such as television will be of little
them from purchasing the product. Expos provide
use to NavAssist since its target market possesses
NavAssist with a first-hand-experience in identifying specific
Navassist
17
customer needs and enables it to adapt its marketing
confident that word-of-mouth will spread throughout its
strategies in a timely manner. Expos will be held every
networks of friendships and acquaintances.
quarter during the year to increase the awareness of
NavAssist’s Web Page
NavAssist product and to attract new customers. Literature ad Digital Demos Literature and digital demos will be distributed in schools, institutions, and government associations for the
NavAssist Web Page will be the permanent medium of communication that provides broad information about the company, the products and services that it sells, and reviews of customers that are already using the product.
blind. Through these mediums, NavAssist intends to educate the blind population about the benefits that they
Critical Risks
can receive by using its product. Contact information, as well as a request forms, will be endorsed to the literature
Due to the exclusivity of our market,
and digital demos for potential customers that desire to
NavAssist has potential risks which are seen in any startup
know more about the product and service.
business plus others specific to our situation. We have
Word-of-mouth
forecasted these concerns, and we have devised brief plans
NavAssist recognizes that blind people usually have
with which to counter act these potential threats. It is
strong and bonding relationships with one another. That is
essential for our success to implement a corrective strategy
why NavAssist will focus on building long lasting
before a potential threat becomes a problem with financial
relationships with customers. Being helpful and assertive is
repercussions. It is our goal to turn weaknesses into
a priority for NavAssist. With this strategy NavAssist is
Navassist
18
strengths and threats into opportunities. We distinguish
the device effectively to the visually impaired. Some of the
internal risks from external risks below.
most popular selling techniques will fail to develop a desire for the product among the visually impaired. There are also
Internal Risks
certain common courtesies one should be aware of amongst
Lack of Experience in a Small Market
the visually impaired. When our sales force is promoting
In the relatively small visually impaired market, it is
the product we must insure the fact that they know how to
crucial to know their needs, wants, likes, and dislikes. As a
respect the customers and bring product appeal to life for
new business in the field, it will require some catch up on
them. To meet this need we highly encourage prior
research in their market. We have greatly reduced this
experience with visually impaired when hiring staff. We will
threat by gathering information from organizations,
also have periodic in house seminars to keep staff and
institutions, and other businesses established for the
managers sharp on selling strategies.
visually impaired. They have explored what works and what
Over Estimation of Market Demand
fails: we have and will continue learning from that.
We feel we have forecasted sales conservatively, but
Obviously, there is no substitute for first hand experience,
have considered the threat of great market resistance to the
but our constant attentiveness to current trends in the
technology. After research, we have found expense and
market should offset a huge hit.
lack of training to be unrivaled deterrents in the acceptance
Staffing Risks
of similar devices. We are prepared to adjust prices to
Our sales will be sent to a unique set of customers. It will be very important to obtain the ability to showcase
meet desired sales, but we would prefer to increase an expense to offer more training sessions (refer to Advertising
Navassist
19
Expense in Financial Statements). Our goal is to make use of the device common knowledge among the target market.
Costs Increase The cost of our product is definitely vulnerable to
Product familiarity is the key to wide distribution of our
fluctuation. An increase in production costs would directly
product.
affect the price we offer to our customers. We are willing to
External Risks
incur the extra costs without raising the price significantly if
Competition Offering
this occurs early in the business life, but after our name
New and existing companies may be able to offer the product at a reduced price. As price is a major factor in the
gains credibility, we expect that our market will be accepting of a price increase.
industry, they would instantly be a threat. Our first projected line of defense is to have already established a reliable and respected brand name among the blind that they will prefer despite a higher price. If we have not gained that brand recognition, we are prepared to increase training for the product or decrease the price, resembling the solution mentioned to neutralize an over estimation of market demand.
Navassist
20
Cash Flow Statement NavAssist, Inc. Statement of Cash Flow For the Years Ended December 31, 2008-2012
Net CashFlow from Operating Activities Net Income Add: Depreciation Expense Less:
Increase Inventory Increase Supplies Cash Provided by/Used for Operations Cash Flows from Investing Activities Payment for Purchase of Equipment Payment for Purchase of Furniture Cash Provided by/Used for Investing Activities Cash Flows from Financing Activities Received from Capital Contributions Cash Provided by Financing Activities
Net Increase in Cash Beginning Cash Balance Ending Cash Balance
2008
2009
2010
2011
2012
$49,855 21,000
$326,495 48,000
$1,002,040 69,000
$2,052,895 69,000
$2,398,240 69,000
(279,840) (1,000) (209,985)
(16,960) (1,000) 356,535
(312,700) (1,000) 757,340
(75,000) (60,000) (135,000)
(75,000) (60,000) (135,000)
(75,000) (60,000) (135,000)
(291,500) 0 1,830,395
(106,000) 0 2,361,240
0 0 0
0 0 0
625,000 625,000
0 0
0 0
0 0
0 0
280,015 0 $280,015
221,535 280,015 $501,550
622,340 501,550 $1,123,890
1,830,395 1,123,890 $2,954,285
2,361,240 2,954,285 $5,315,525
Navassist
21
Break-Even Analysis
1,600,000
R e v e n u e s
Total Revenues
1,400,000
Profit
1,200,000
Total Costs Variable Costs
1,000,000 800,000 600,000 400,000
Fixed Costs
200,000 2500
2250
2000
1750
1500
1250
1000
750
500
250
0
0
Units Sold
As expressed in the chart above, NavAssist will become profitable in the first year of operations after attaining 2002 units sold, which represents revenues of roughly 1.2 million.
Navassist
22
INCOME STATEMENT NavAssist, Inc. Income Statement For the Year Ended December 31, 2008 January Sales (Cost Of Goods Sold)
February
March
April
May
June
July
August
September
October
November
December
Year End
$6,000 (2,120)
$9,000 (3,180)
$30,000 (10,600)
$39,000 (13,780)
$60,000 (21,200)
$93,000 (32,860)
$108,000 (38,160)
$141,000 (49,820)
$174,000 (61,480)
$192,000 (67,840)
$228,000 (80,560)
$240,000 (84,800)
$1,320,000 (466,400)
Gross Margin Expenses: Advertising Licensing fee Product development Rent Utilities Supplies Depreciation Wages Salaries Commisions (Total Expenses)
3,880
5,820
19,400
25,220
38,800
60,140
69,840
91,180
112,520
124,160
147,440
155,200
853,600
34,500 450 80,000 4,000 800 100 0 16,000 10,200 300 (146,350)
5,700 450 3,000 4,000 800 100 0 16,000 10,200 450 (40,700)
15,300 450 3,000 4,000 800 100 0 16,000 10,200 1,500 (51,350)
5,400 450 3,000 4,000 800 100 0 16,000 10,200 1,950 (41,900)
8,400 450 3,000 4,000 800 150 0 16,000 13,600 3,000 (49,400)
16,800 450 3,000 4,000 800 150 0 16,000 13,600 4,650 (59,450)
7,400 450 3,000 4,000 800 150 0 16,000 13,600 5,400 (50,800)
10,300 450 3,000 4,000 800 150 0 16,000 13,600 7,050 (55,350)
14,600 450 3,000 4,000 800 150 0 16,000 13,600 8,700 (61,300)
7,000 450 3,000 4,000 800 150 0 16,000 13,600 9,600 (54,600)
15,000 450 3,000 4,000 800 200 0 16,000 15,300 11,400 (66,150)
20,000 450 3,000 4,000 800 200 21,000 16,000 22,100 12,000 (99,550)
160,400 5,400 113,000 48,000 9,600 1,700 21,000 192,000 159,800 66,000 (776,900)
Earnings Before Interest & Taxes Taxes (35%)
(142,470) 49,865
(34,880) 12,208
(31,950) 11,183
(16,680) 5,838
(10,600) 3,710
690 (242)
19,040 (6,664)
35,830 (12,541)
51,220 (17,927)
69,560 (24,346)
81,290 (28,452)
55,650 (19,478)
76,700 (26,845)
Net Income
($92,606)
($22,672)
($20,768)
($10,842)
($6,890)
$449
$12,376
$23,290
$33,293
$45,214
$52,839
$36,173
$49,855
November
December
NavAssist, Inc. Income Statement For the Year Ended December 31, 2009 March
April
May
$90,000 (31,800)
$111,000 (39,220)
$159,000 (56,180)
$180,000 (63,600)
$216,000 (76,320)
$264,000 (93,280)
$279,000 (98,580)
$309,000 (109,180)
$384,000 (135,680)
$402,000 (142,040)
$441,000 (155,820)
$525,000 (185,500)
$3,360,000 (1,187,200)
58,200
71,780
102,820
116,400
139,680
170,720
180,420
199,820
248,320
259,960
285,180
339,500
2,172,800
42,938 450 3,000 11,000 2,000 500 0 37,917 30,600 4,500 (132,904)
16,388 450 3,000 11,000 2,000 500 0 37,917 30,600 5,550 (107,404)
43,988 450 3,000 11,000 2,000 500 0 37,917 30,600 7,950 (137,404)
15,525 450 3,000 11,000 2,000 500 0 37,917 30,600 9,000 (109,992)
24,150 450 3,000 11,000 2,000 550 0 37,917 30,600 10,800 (120,467)
48,300 450 3,000 11,000 2,000 550 0 37,917 30,600 13,200 (147,017)
21,275 450 3,000 11,000 2,000 550 0 37,917 30,600 13,950 (120,742)
29,613 450 3,000 11,000 2,000 550 0 37,917 30,600 15,450 (130,579)
41,975 450 3,000 11,000 2,000 550 0 37,917 30,600 19,200 (146,692)
20,125 450 3,000 11,000 2,000 550 0 37,917 30,600 20,100 (125,742)
43,125 450 3,000 11,000 2,000 650 0 37,917 37,800 22,050 (157,992)
57,500 450 3,000 11,000 2,000 650 48,000 37,917 46,800 26,250 (233,567)
404,900 5,400 36,000 132,000 24,000 6,600 48,000 455,000 390,600 168,000 (1,670,500)
(74,704) 26,146
(35,624) 12,468
(34,584) 12,104
6,408 (2,243)
19,213 (6,725)
23,703 (8,296)
59,678 (20,887)
69,241 (24,234)
101,628 (35,570)
134,218 (46,976)
127,188 (44,516)
105,933 (37,077)
502,300 (175,805)
($48,558)
($23,156)
($22,480)
$4,165
$12,489
$15,407
$38,791
$45,007
$66,058
$87,242
$82,672
$68,857
$326,495
January Sales (Cost Of Goods Sold) Gross Margin Expenses: Advertising Licensing fee Product development Rent Utilities Supplies Depreciation Wages Salaries Commisions (Total Expenses) Earnings Before Interest & Taxes Taxes (35%) Net Income
February
June
July
August
September
October
Navassist
Year End
23
NavAssist, Inc. Income Statement For the Years Ended December 31, 2008 2008 Sales (Cost Of Goods Sold) Gross Margin Expenses: Advertising Licensing fee Product development Rent Utilities Supplies Depreciation Wages Salaries Commisions (Total Expenses)
2009
2010
2011
2012
$1,320,000 $3,360,000 $6,900,000 $10,200,000 $11,400,000 (466,400) (1,187,200) (2,438,000) (3,604,000) (4,028,000) 853,600
2,172,800
4,462,000
160,400 404,900 949,400 5,400 5,400 5,400 113,000 36,000 36,000 48,000 132,000 200,000 9,600 24,000 12,000 1,700 6,600 9,200 21,000 48,000 69,000 192,000 455,000 650,000 159,800 390,600 644,400 66,000 168,000 345,000 (776,900) (1,670,500) (2,920,400)
Earnings Before Interest & Taxes Taxes (35%)
76,700 (26,845)
502,300 (175,805)
1,541,600 (539,560)
Net Income
$49,855
$326,495 $1,002,040
6,596,000
7,372,000
1,193,900 5,400 36,000 208,000 14,000 9,800 69,000 650,000 741,600 510,000 (3,437,700)
1,338,400 5,400 36,000 212,000 14,000 10,000 69,000 650,000 777,600 570,000 (3,682,400)
3,158,300 (1,105,405)
3,689,600 (1,291,360)
$2,052,895
$2,398,240
Navassist
24
Balance Sheet NavAssist, Inc. Balance Sheet December 31, 2008-2012 2008 Assets: Current Assets Cash Inventory Office Supplies Property and Equipment Furniture Accummulated Depreciation-Furniture Equipment Accummulated Depreciation-Equipment
$ 280,015 279,840 1,000 60,000 (6,000) 75,000 (15,000)
2009
$
501,550 296,800 2,000 120,000 (24,000) 150,000 (45,000)
2010
$
1,123,890 609,500 3,000 180,000 (48,000) 225,000 (90,000)
2011
$
2,954,285 901,000 3,000 180,000 (72,000) 225,000 (135,000)
2012
$
5,315,525 1,007,000 3,000 180,000 (96,000) 225,000 (180,000)
Total Assets:
$674,855
$1,001,350
$2,003,390
$4,056,285
$6,454,525
Liabilities: Stockholder's Equity: Contributed Capital Retained Earnings
$625,000 49,855
$625,000 376,350
$625,000 1,378,390
$625,000 3,431,285
$625,000 5,829,525
Total Liabilities and Stockholder's Equity
$674,855
$1,001,350
$2,003,390
$4,056,285
$6,454,525
Navassist
25
Offering Funds Required NavAssist seeks an initial first year investment of $625,000 in equity financing. NavAssist requires this capital to cover its start-up costs until cash flows are available. Our start-up costs will include, among other things, expenses for renting a facility out of which to operate, equipment and furniture, initial product development, stocking an inventory, and advertising.
Return on Investment In return for your risk we offer 30% ownership in the NavAssist, Inc. We calculate an average per year rate of return on investment of 35% over the first five years of operations.
Exit Strategy There are basically two different exit strategies offered to NavAssist investors. At the fifth year’s end of operations, the investors have the opportunity to sell their shares back at 35% per year rate of return. At this time, NavAssist plans to become a public traded company, and investors have the choice to either sell their shares at their convenience, or retain ownership in NavAssist.
Navassist
26
Appendix A (Technology) NavAssist Components
A lithium battery that operates between 15 and 20 hours
A battery charger
Input/Output USB port for uploading and downloading software and maps
512 kbs of memory storage
Magellan Serial GPS receiver
10 alphanumeric keys with Braille keyboard, 1 key for send, 1 key for receive, and a mini joystick
A crystal microphone (optimum for cell phone usage).11
NavAssist Software, which will merge MapQuest API, and GPS receiver software
Circuit Board and Microprocessor designed by ECCO Design Company
GPS information The government of the United States of America is the only institution that operates the Global Positioning System's accuracy and maintenance. The Earth has 24 United States military satellites for the GPS, 12 in each hemisphere. Those 24 satellites rotate around the earth 2 times a day.
http://www.geosoft-gps.de/images/Gps_config.jpg 11
This microphone has an attached a diagram to the crystal. The crystal will create a signal when sound waves hit the diagram.
Navassist
27
A normal GPS receiver picks up around 12 satellites, but the accuracy of your actual position is not very reliable; it ranges around ± 20 feet. For instance, if the GPS receiver tells you that you are 1 foot away from Wal-Mart, it may be that you are actually are 20 feet away from Wal-Mart.
For blind people this represents a huge dilemma because their current
location given by the GPS receiver has to be as accurate as possible to the genuine one. Thus, NavAssist uses a GPS receiver that will be able to register around 16 satellites at a time. 15 of these satellites are United States military satellites and 1 of them will be a geostationary one (it is statitc: it doesn’t not rotate around the earth) called Wide Area Augmentation System (WAAS). NavAssist GPS receiver will then be able to have an accuracy of around ± 1 foot which is as close as possible to the real position; that can make the difference between a sidewalk and a highway. How does NavAssist GPS system work? NavAssist contains a GPS receiver whose
Longitude
purpose is to track at least 16 satellites. This GPS receiver indicates the altitude and latitude of the current location of the device. This information is used to compare it with the database
inside
the
device
by
using
our
NavAssist software so that the device will be
Latitude http://www.enchantedlearning.com/usa/activity/latlong/mapanswers.GIF
Navassist
28
able to determine nearby places, streets, avenues, etc.
NavAssist GPS receiver is a Magellan Serial receiver which uses the NMEA 0183 protocol (this protocol is used by most GPS receivers, and its purpose is to define how data is transmitted between a satellite and GPS receiver). This GPS receiver will be able to pick up the WAAS satellite necessary for the accuracy of our system.
NavAssist Software Given the altitude and longitude by our GPS receiver, our software will be able to generate detailed information about the speed and the direction at which our blind costumer is traveling at.
This software will calculate those parameters by
measuring altitude and longitude samples every half-second from the GPS receiver. Furthermore, this software will be able to calculate the distance and direction from a street or intersection to where our blind customer wants to go by requesting the altitude and longitude coordinates from the place of destination and applying mathematical algorithms. NavAssist software will also complete a text to speech conversion so that our device can interact with our blind costumers. This capability will be made possible by using SAPI 4.0a SDK Suite within our software which is a free open-source application programming interface that converts text to speech.
Navassist
29
Appendix B (Personnel) Office AR
Type Manager Staff
Jan '08
Feb '08
TX-Dal
Manager Staff
TX-Hou
Manager Staff
Office AR
Type Manager Staff
TX-Dal
Manager Staff
TX-Hou
Manager Staff
Office AR
Type Manager Staff
2010 4 12
2011 4 12
2012 4 12
TX-Dal
Manager Staff
3 12
3 12
3 12
TX-Hou
Manager Staff
3 10
3 12
3 12
4 6
Jan '09
Mar'08 4 6
Feb '09
Apr '08 4 6
Mar'09
May '08 4 6
Apr '09
Jun '08 4 8
May '09
Jul '08 4 8
Jun '09
Aug '08 4 8
Jul '09
Sep '08 4 8
Aug '09
Oct '08 4 8
Sep '09
Nov '08 4 8
Oct '09
Dec '08 4 9
Nov '09
4 14
Dec '09
4 9
4 9
4 9
4 9
4 9
4 9
4 9
4 9
4 9
4 9
4 11
4 16
3 8
3 8
3 8
3 8
3 8
3 8
3 8
3 8
3 8
3 8
3 10
3 10
Navassist
30
Appendix C (Sales Forecast)
Total Sales Arkansas Texas-Dallas Texas-Houston Total # customers # Customers Arkansas # Customers Texas-Dallas # Customers Texas-Houston
2008 $1,320,000 1,320,000 0 0 2,200 2,200 0 0
2009 $3,360,000 1,920,000 1,440,000 0 5,600 3,200 2,400 0
2010 $6,900,000 2,940,000 2,160,000 1,800,000 11,500 4,900 3,600 3,000
2011 $10,200,000 3,720,000 3,360,000 3,120,000 17,000 6,200 5,600 5,200
Navassist
2012 $11,400,000 4,080,000 3,720,000 3,600,000 19,000 6,800 6,200 6,000
31
View more...
Comments