Symptum business plan comp #2
description
Transcript of Symptum business plan comp #2
Overview
• Drive System
• Prototype
• Market
• Environmental Analysis
• Operations
• Financing
• Exit Strategy
Team President: Mitchell A. Angus: Avid sponsored competitive gravity
mountain biker Competing since ‘96: Professional Status 2001-2005 & 2008-
2009
CTO: Vladimir V. Borisov: Bioengineering major with a background in mechanical engineering. Summer internship under supervision of Dr. Davis Previous Small Business Owner
CMO: Michael J. Allan: General Studies major with Entrepreneurship minor. Marketing team member for “ Under the Big Tent Event” at
WSU 6 years customer service and management experience
Symptum CyclesMichael Allan, Mitchell Angus & Vladimir Borisov
The Problem
Current limitations Conventional bicycles have pre-selected gear ratios
The rider is prevented from performing at optimal efficiency
Conventional derailleur’s are prone to the elements Chain jumping or missing Damage and wear caused by dirt and debris Costly and time consuming repairs
Symptum’s Solution
A frictional v-belt drive system with a variable diameter sheave for gear ratio control.
Rational Low production costs Commonly used design Mechanical simplicity Modifying previous
success
Mission Statement
Symptum will set the bar for standardizing specialty mountain bikes.
Reinvent how bicycle gear systems are perceived and how they are designed by the industry.
Set out to introduce a simple solution to the current standard of bikes.
Change the performance and attitudes of all riders
Concept
Continuously Variable Transmission or CVT: No gears necessary Ability to offer an infinite amount of ratios Creates a more balanced bike
Advantages over conventional transmissions Engine performs at a maximum efficiency
Potential to create a biomechanically favorable bicycle Potential to optimize muscle efficiency
Smooth shifting
Conventional Gear System
Requires constant maintenance.
Exposed to the elements. Over time major wear will
occur. Possibility of potentially
damaging beyond repair. Gear selection is severely
reduced.
Symptum Internal Drive System
Requires little to no maintenance.
Not exposed to the elements.
Will be similar in weight.
Shifts more reliably all of the time.
Unique opportunity
Opportunity Rider is given the unique ability to control input to
output “gear” ratio over a continuously variable range
The proposed alternative CVT transmission will allow us to capture a fraction of a multi-billion dollar bicycle market in the U.S. alone
Market
6 Billion Dollar Industry in the US.
Bike Industry is growing at a rate of 6.4%.
Portland regularly ranks at the top of Bicycling Magazine’s list of the best cycling cities.
Portland’s bicycle-related industry was worth $60 million in 2007.
Nation’s highest % of workers who commute by bike, about 3.5%.
The market is still expanding and will continue to thrive with popularity in the sport exploding
Target Market
Male and Female Age: 6-60 Self-motivated Discretionary income
2 Segments Recreational Performance
Aggressive, active and entertaining lifestyle while seeking high quality of perfection and reliability
Competition
The bicycle industry is divided into 4 different distribution channels.
I. Specialty 49% II. Full Line 8% III. Other 6% IV. Mass Merchants 37%
Value Having a standardized internal drive system will set us
apart from the competition.
Marketing & Sales “Making performance
and perfection a standard”
“A sign or indication”
An abnormality to the industry
Market to segments independently
Recreation/Performance
“Total Customization”
Website
Company vehicle to attend all events
Promotion through; key chains, bottle openers, energy drinks, stickers, and decals
Sponsor cycling events in partnership with other outlets
Extend reach by sponsoring conventions and concerts
Studies underway to define target market
Danielle H.
Mitch A.
Income
Revenue: Online Bicycle Retailer
Purchase bikes at a discount or wholesale
The revenue comes directly from the profits made from selling complete bicycles online or to distributors for a wholesale pricing.
Operations
Frame & drive system manufacturer
Local bike shops will be utilized to sell our products Symptum has no physical retail stores.
Bikes designed at Symptum Cycles Sent to manufacturing plant for assembly Sent back to Symptum Cycles once completed
Parts to be assembled onto frames will be sent to Symptum
Distributor purchases a bike Symptum will send them the frame and parts to be assembled on
the bike Sell the bike to the end user
Benchmarks and Goals
Year 1 First 3 months
Design gearbox and frames Acquire patents &
trademarks Second 3 months
Market testing Second 6 months
begin acquiring distributors
Year 2 Official introduction in to
market 5,000 bikes sold,
$2,000,000 sales
Year 5 $8,000,000 in sales International Sales & 1%
of market Buy out investors
Risks & Rewards
Valuation: Year five is $8,572,100.17 Beta: 2.1 Market risk premium: 11.60% Long-term growth rate: 7%
Terminal value: $12,319,705.11
NPV: $8,572,100.17
ProjectionsYear 1 Year 2 Year 3 Year 4 Year 5
Net Income
$(328,451) $1,449,910 $1,899,508 $2,484,760 $3,013,466
Revenue $1,169,028 $7,367,104 $9,778,122 $12,711,558 $15,253,870
Cash $760,186 $1,312,734 $2,988,514 $5,013,003 $7,648,812
Net Profit Margin: 21%
Breakeven
Financing
Required Capital
Year 1 October: $100,000 Founders, Friends, Family Infusions
December-March: $500,000 Total: $2.1 million
Willing to give up 39% of equity
Exit Strategy
Buy out investor at 6 times their original investment Sell designs to other
manufacturers Payout for investors
Investor: $ year 6 Reevaluate
Continue operation
Conclusion
Conclusion
Danielle H.
Dan Castles, CEO of Telestream
Kirk and Miles, Dana Engineering Machine Shop
Dr. Howard Davis, Instructor
Victor Sandrin, Owner of Ride This Bike Shop
Brian Myrick, EVS Marketing Manager
Simon Lawton, Owner of Downhill Northwest Bicycle Shop and Training Camp
Gary Fisher, President of Fisher Bicycle Fisher Bikes
John Pope, Tesoro Chief Chemical Engineer
Rob Aguero, Pivot Cycles International Sales Manager
Michael Hersey, Marin Bikes Director of Operations
Steve Edmiston, Invicta Law Group Attorney at Law
Daniel Lulich, Niitek CTO/Serial Entrepreneur
Denise Caruso, Director of Recruiting at Seven Cycles
Mike Danielson, Angel Investor. Funded shirts, CD’s and business cards.
Consultants