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Business Plan 08
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Table of Contents
Section PageExecutive Summary 3
Company Overview 5Mission Statement
Goal
Products and Services 5Cell PhoneGPS Capabilities
Accessories
PricingNavAssist Potential
Market and Competitive Analysis 9Industry Overview
Characteristics and Needs of Target MarketCompetition
Management and Personnel 12Key Individuals
Personnel
Operations Plan 14Expansion
Marketing
Critical Risks 18
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Internal Risks
External Risks
Financial Statements 21Cash Flow
Break-Even Analysis
Income StatementBalance Sheet
Offering 26Funds RequiredROI Potential
Exit Strategies
Appendix A (Technology) 27
Appendix B (Personnel) 30
Appendix C (Sales Forecast) 31
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Executive Summary
Company Overview
NavAssist is a company that will 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.
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.
Market Analysis
The main target market of NavAssist for the first year
of operations will consist of the visually impaired who are
currently employed in the state of Arkansas. Arkansas has
approximately 90,000 blind people, of which 30,000 are
employed. Few companies have offered GPS technology to
assist the blind; however, they have not been widely
accepted due to high pricing and lack of training for the end
user. By eliminating those barriers we will attract this
untapped market.
Management
TheNavAssist 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
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its vision of helping the blind improve their quality of life. To
achieve this, delivering a cost-efficient and high quality
product at all times is the priority. NavAssist management
team is well prepared to handle all aspects of operations to
achieve its goal.
Operations
NavAssist aims to maintain operations that are
simplistic, cost efficient, and that can be handled in a timely
manner. ECCO Design, Inc. will provide the development
and manufacturing of our device. NavAssist will then be in
charge of installing the GPS software package and
applications. At that point the device will be ready for the
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 under-
served market. By empowering this market with greater
mobility, NavAssist has a huge potential to become an
extremely profitable company. After conservatively
forecasting sales among the target market, we have
constructed financial statements that reflect NavAssist
strategy.
Offering
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. 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.
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Company Overview
By using current technology NavAssist will create an
innovative product that will cater to and assist the visually
impaired public. Our product will help the sight-impaired
keep up with a very mobile and fast paced society. By
using GPS technology alongside mobile communications,
NavAssist will bring services that will help increase their
functions in everyday life.
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.
Goals
NavAssist will combine cutting edge GPS elements
with an audio command system to facilitate navigation
within one foot for the blind and visually impaired. The
device will be user-friendly and the operating system will be
easily handled. This device will enhance mobility among the
visually impaired by complementing previously available
alternatives (e.g. seeing eye-dogs) and providing a holistic
depiction of their surroundings. The product will be
manufactured in an economical and cost effective manner,
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
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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.
The appearance of the cellular telephone will have a close
resemblance to a basic cell phone seen in the public today.
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
and an enter button will be a large, easily recognizable, and
centralized on the device. The phone will also have the nine
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digit keys below that. Upon pressing the enter button, an
automated list of menu options will be voiced. The user can
then select the option by: (1) verbal affirmation of the
menu option title, (2) pressing enter as the option is being
said, or (3) pressing the respective number of the desired
command. With the joystick, the user has the option of
scrolling directly to menu of their choice. Additionally, the
phone will have voice dial-up for all the contacts in the
address book, as well as a feature with warning commands
for the status of the system (e.g. low battery, weak signal).
GPS Capabilities
The GPS system will be embedded
in the NavAssist phone, and it will
be able to advise an effective
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
guide users even while riding in a cab or walking down the
sidewalk.1 The information about the destination(s) will be
entered through the keyboard and will be processed by the
software to determine turn-by-turn directions by gathering
data that is transmitted from the satellites to the GPS
receiver. Our GPS contains ample memory for storing
frequently traveled routes as it traces and stores user
movement. Accuracy is notified to users based on the
number of aligned satellites.2
Accessories
Many accessories will be offered to
maximize the usefulness of
NavAssists guidance system and
cell phone. Our headphone will
help the user hear the commands
1 For more information, please refer to Appendix A, p. 27
2
Please refer to Appendix B, p. 30
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and respond to them as well. Protective casing and a
remote-locater (similar to key locaters) will be offered for
the device.3 Maps unique to specific cities and regions will
be available to customers and can be easily uploaded onto
our device from our website. These maps will ensure
detailed and accurate information of the users area,
including building information, street names, sidewalks, and
other man-made and natural structures.
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
other similar products in the market, our product is over
sixty percent cheaper than the competition.4 The initial cost
for NavAssist device is $570 and it includes all the
3 See also Appendix A, p. 274
Refer to Market and Competitive Analysis Section, p. 9
accessories specified in the package. Shipping is for free.
There is an annual update fee for software upload for maps
and points of interest of $30. Special locations layouts may
be acquired for an extra cost of $10.
The initial investment per customer is as following:
NavAssist Potential
NavAssist is aimed to serve clients who are legally
blind and/or severely visually impaired. With the voice
command system, GPS technology, and mobile
communications, it is in our plans to adopt other services
such as the news, weather forecasts, and satellite music
Product/Service Product/Service price
NavAssist Device $570
Software Maps $ 30
Total $600
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stations for the comfort and enjoyment of the blind. Since
our device is user-friendly and the technology can be easily
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
advances, our product will be modified accordingly.
Upgrades of our product will be available for our customers
with more capabilities and options that will enhance them
with a higher quality of life. We also acknowledge that
software will require attention in this regard as well. Maps of
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.
Market and competitive
analysis
Industry overview
According to the American Foundation for the Blind,
every seven minutes someone in America will become blind
or visually impaired.5 Approximately 10 million Americans
suffer from this kind of disability, and 1.3 million of them
are legally blind. The Arkansas Department of Human
Services reported in a news release in January 2002, that
close to 90,000 Arkansans share this disability.6
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. accessed on 6 Feb. 2007.
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Nationally, among persons aged 21 to 64 that suffer
from visual impairment, only 41.5% are employed.7 This
data is significantly lower than the estimated 84% of
persons within this age who were employed without any
kind of disability. In Arkansas the unemployment rate for
blind people is 70%.8
Mobility is the major challenge for the visually
impaired, and their choices to travel are limited. The
visually impaired need some type of assistance in this
regard; whether by a human guide, a cane, a guide-dog, or
any other device, the blind cannot move from one place to
another on their own.
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.
Characteristics & Needs of Target Market
The main target market of NavAssist for the first
year in phase one of operations will consist of the thirty
percent (27,000) visually impaired who are currently
employed in the state of Arkansas. NavAssist is currently
exploring the possibility of obtaining insurance coverage for
its device so it can be available to blind people that may not
have the economic means.
Within the past three years, few companies have
made attempts to utilize GPS technology to assist the blind.
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
the technology are the high price of the products already
available and the complexity of using the product. Many
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among the blind believe that a GPS guiding assistant
product would be a valuable tool in their life. With this GPS
guiding assistant, the visually impaired can obtain a broader
sense of their surroundings that extends beyond the
immediate awareness that their canes and seeing-eye dogs
provide.
Despite the obvious practical advantages, the
drawbacks of the costs and complexity of use drive
customers away. By integrating existing technology of GPS,
cell phone, and PDA models, and catering the device to the
blind, NavAssist will drive the price down and increase the
products value to the user. Value will increase as clients
begin to have multiple tools to improve their lifestyle in one
reasonably-sized device. NavAssist will focus on the 27,000
potential blind customers who are employed in Arkansas
and draw up to eight percent (2,700 customers) of that
population to buy the product in the first year by reducing
economic limitations set by previous products.
Competition
At present, the product and services offered by
NavAssist have limited direct competition with other
organizations. Very few companies have either produced
integrated GPS navigation systems, or mobile
communications for the visually impaired. The predominant
competitors in this field are the following:
Sendero Group,a Company based out of California,
has developed a GPS navigation system that gives its user
directions by a mechanical voice (voice command system).
Senderos main market and research is done primarily in its
home area. Sendero has had a main competitive advantage
on adapting technology to the blind since the year 2000. It
has developed roughly seven different products catered to
the blind. However, its BrailleNote GPS does not provide
cell phone capabilities and in addition totes a hefty price tag
at $1,549.
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Trekker, designed and manufactured by Canada-
based company, VisuAid, has developed an application
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). Humanwares
Pocket PC has been adapted to provide functionality to
Trekkers application. Trekkers device has comparable
characteristics to those of Senderos BrailleNote GPS, but it
also lacks the advantages of cell-phone capabilities. Its
complex design has often resulted in a non user-friendly
interface with the visually impaired. Its price is $1,695.
Although NavAssist has a disadvantage entering into
this market niche, NavAssist has the comparative advantage
of providing a device that has been meticulously designed
for the up most functionality of the visually impaired while
providing navigation assistance and mobile communication
simultaneously. NavAssist also offers an advantage in price
over the competitors to make its device more accessible to
those who need it.9
Management andPersonnel
Key IndividualsTheNavAssist management team will be operated by
four key individuals with diverse backgrounds and work
experience. Each team member contributes unique skill
sets and experiences that will strengthen the daily
operations. The management team is committed to live out
its vision of helping the blind improve their quality of life.
To achieve this, delivering a cost-efficient and high quality
product at all times is the priority. NavAssist management
team is well prepared to handle all aspects of operations to
achieve its goal.10
9 SeeProduct and Services Section, p. 810 Please refer to Appendix D, p. 32 Resumes
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Kyle Wood
(CFO) Chief Financial Office
Responsibilities: Accounting pr
including preparation of financial statements
keeping, financial analysis, and administrativ
by ensuring that all of the business finances
and remain current.
Pablo Oropin
(CTO) Chief Technology Offi
Responsibilities: In charge of s
development, programming, testing softwar
training demos for customers, updating map
Application Programming Interfaces, and ove
technology development.
r/Owner
ocedures
and book
e management
are-up-to date
cer/Owner
oftware
, creating
s and
rseeing the
Ivan Gomez
(CSPO) Chief Strat
& Chairman/Owne
Responsibilities: Leading the strate
strategic planning process while ca
industry trends, competitive threats
opportunities, internal performance,
driven insights to help the progress
Kris Lance
(CMO) Chief Market
Relations/Owner
Responsibilities: Development and i
marketing strategies and activities,
the sales force, analyzing new tren
administrative management.
egic Planning Officer
r
y framework and
turing and analyzing
, expansion
and delivery of data-
of the company.
ing Officer & Public
mplementation of
training and directing
s and markets, and
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Personnel
NavAssists personnel requirements for the first year
of operations (phase one) will consist of the following:
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
Staff 6 6 6 6 8 8 8 8 8 8 9 14
Operations Plan
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
facilities located in Scott Hamilton warehouse, Little Rock,
AR. Scott Hamilton warehouse provides NavAssist with
flexibility of operations since additions to original demands
can be done almost instantaneously, thus, leaving NavAssist
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
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
$135,000. The software needed consist of the Application
Programming Interface (OpenAPI), licensed by MapQuest
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.
which will provide the development and manufacture of our
device. ECCO Design is a New York based consultancy,
which is highly experienced in helping businesses to develop
innovative products that our users desire. It is also
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ECCO Design
NavAssist UPS
End User
Follow-up
experienced in the telephony industry, and it recently has
developed a PDA phone that is used by major user
providers
such as
AT&T and
T-Mobile.
Choosing
ECCO
Design,
will allow
NavAssist
to obtain the device manufactured by Asian companies that
presently deal with ECCO Design in a cost effective and
timely manner. The estimated price for the development of
the device is $80,000, plus a manufactured cost per unit of
$212.
After the manufacturing process, the devices will be
shipped to NavAssist warehouse where they will be
individually inspected and then passed to the
engineering Department. At this point, programmers will
upload the interface and maps, and will check that the
devices perform at their optimal level. Finally, the devices
will be carefully packed along with their accessories and
stored at the warehouse until shipment. Once the Sales
Department receives an order for the product, NavAssist will
send an invoice to UPS for package pick-up. UPS will be
responsible and liable for the product until it is delivered to
the end user. Once the product is received and used by the
end user, a NavAssists employee will contact the customer
via telephone and ensure full customer satisfaction. If the
customer requires assistance in how to further use the
device, one of our programmers will proficiently guide them
in trouble-shooting. In case of a defective product, it will be
returned to the warehouse via UPS at the expense of
NavAssist. NavAssists employees will also contact
customers periodically concerning updates of maps and
improvements in software that will be conveniently available
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Phase 1
Phase 2
Phase 3
in two forms: download at the NavAssist website, or
delivery of CD Software upon request.
NavAssist will provide a one-year manufacturer
warranty for its device. In the case of a manufacture flaw,
the device will be returned to ECCO Design for inspection
and/or replacement.
Expansion
In Phase one, the first year of operations, NavAssist
is expected to acquire eight percent of the employed blind
people in the state of Arkansas. After spending a year in
our home office in Little Rock, AR, we will expand by
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
$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
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Dallas, we look to sale to the entire central region of the
state, and in Houston, we hope to reach extend its
boundaries as far as Louisiana.
We predict sales will climb in each region until we
40% of our target market. When it appears we are
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.
Beyond our five year strategy, we have considered the idea
of opening additional offices in the southeast region and
opening up an avenue for online orders.
Marketing
NavAssist will have a unique marketing strategy
through different channels of communication that will help
the visually impaired learn about its product. Mass
advertising through media such as television will be of little
use to NavAssist since its target market possesses
distinctive characteristics. Therefore, NavAssists
marketing plan will focus on providing the most information
about the benefits of the product and service while forming
a bridge of a lasting relationship with the customer. This will
be achieved through the following ways:
Expos
NavAssist will design expos to specifically give
potential customers the opportunity to test out the product
and see how they can interact with their surroundings.
Also, NavAssist will provide substantial information about its
product and how the blind person can benefit from it. This
marketing technique allows for personal interaction with the
clients, allowing them to express their inquiries about the
product and service, and the restrictions that may impede
them from purchasing the product. Expos provide
NavAssist with a first-hand-experience in identifying specific
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customer needs and enables it to adapt its marketing
strategies in a timely manner. Expos will be held every
quarter during the year to increase the awareness of
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
blind. Through these mediums, NavAssist intends to
educate the blind population about the benefits that they
can receive by using its product. Contact information, as
well as a request forms, will be endorsed to the literature
and digital demos for potential customers that desire to
know more about the product and service.
Word-of-mouth
NavAssist recognizes that blind people usually have
strong and bonding relationships with one another. That is
why NavAssist will focus on building long lasting
relationships with customers. Being helpful and assertive is
a priority for NavAssist. With this strategy NavAssist is
confident that word-of-mouth will spread throughout its
networks of friendships and acquaintances.
NavAssists Web Page
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.
Critical Risks
Due to the exclusivity of our market,
NavAssist has potential risks which are seen in any startup
business plus others specific to our situation. We have
forecasted these concerns, and we have devised brief plans
with which to counter act these potential threats. It is
essential for our success to implement a corrective strategy
before a potential threat becomes a problem with financial
repercussions. It is our goal to turn weaknesses into
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strengths and threats into opportunities. We distinguish
internal risks from external risks below.
Internal Risks
Lack of Experience in a Small Market
In the relatively small visually impaired market, it is
crucial to know their needs, wants, likes, and dislikes. As a
new business in the field, it will require some catch up on
research in their market. We have greatly reduced this
threat by gathering information from organizations,
institutions, and other businesses established for the
visually impaired. They have explored what works and what
fails: we have and will continue learning from that.
Obviously, there is no substitute for first hand experience,
but our constant attentiveness to current trends in the
market should offset a huge hit.
Staffing Risks
Our sales will be sent to a unique set of customers.
It will be very important to obtain the ability to showcase
the device effectively to the visually impaired. Some of the
most popular selling techniques will fail to develop a desire
for the product among the visually impaired. There are also
certain common courtesies one should be aware of amongst
the visually impaired. When our sales force is promoting
the product we must insure the fact that they know how to
respect the customers and bring product appeal to life for
them. To meet this need we highly encourage prior
experience with visually impaired when hiring staff. We will
also have periodic in house seminars to keep staff and
managers sharp on selling strategies.
Over Estimation of Market Demand
We feel we have forecasted sales conservatively, but
have considered the threat of great market resistance to the
technology. After research, we have found expense and
lack of training to be unrivaled deterrents in the acceptance
of similar devices. We are prepared to adjust prices to
meet desired sales, but we would prefer to increase an
expense to offer more training sessions (refer to Advertising
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Expense in Financial Statements). Our goal is to make use
of the device common knowledge among the target market.
Product familiarity is the key to wide distribution of our
product.
External Risks
Competition Offering
New and existing companies may be able to offer the
product at a reduced price. As price is a major factor in the
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.
Costs Increase
The cost of our product is definitely vulnerable to
fluctuation. An increase in production costs would directly
affect the price we offer to our customers. We are willing to
incur the extra costs without raising the price significantly if
this occurs early in the business life, but after our name
gains credibility, we expect that our market will be
accepting of a price increase.
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Cash Flow Statement
2008 2009 2010 2011 2012
Net CashFlow from Operating ActivitiesNet Income $49,855 $326,495 $1,002,040 $2,052,895 $2,398,240
Add: Depreciation Expense 21,000 48,000 69,000 69,000 69,000
Less: Increase Inventory (279,840) (16,960) (312,700) (291,500) (106,000)Increase Supplies (1,000) (1,000) (1,000) 0 0
Cash Provided by/Used for Operations (209,985) 356,535 757,340 1,830,395 2,361,240
Cash Flows from Investing Activities
Payment for Purchase of Equipment (75,000) (75,000) (75,000) 0 0Payment for Purchase of Furniture (60,000) (60,000) (60,000) 0 0Cash Provided by/Used for Investing Activities (135,000) (135,000) (135,000) 0 0
Cash Flows from Financing Activities
Received from Capital Contributions 625,000 0 0 0 0
Cash Provided by Financing Activities 625,000 0 0 0 0
Net Increase in Cash 280,015 221,535 622,340 1,830,395 2,361,240Beginning Cash Balance 0 280,015 501,550 1,123,890 2,954,285Ending Cash Balance $280,015 $501,550 $1,123,890 $2,954,285 $5,315,525
NavAssist, Inc.Statement of Cash Flow
For the Years Ended December 31, 2008-2012
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Break-Even Analysis
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.
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
0
250
500
750
1000
1250
1500
1750
2000
2250
2500
Units Sold
R
e
v
e
n
ue
s
Fixed Costs
Variable Costs
Total Revenues Profit
Total Costs
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2008 2009 2010 2011 2012
Sales $1,320,000 $3,360,000 $6,900,000 $10,200,000 $11,400,000(Cost Of Goods Sold) (466,400) (1,187,200) (2,438,000) (3,604,000) (4,028,000)
Gross Margin 853,600 2,172,800 4,462,000 6,596,000 7,372,000Expenses:
Advertising 160,400 404,900 949,400 1,193,900 1,338,400Licensing fee 5,400 5,400 5,400 5,400 5,400Product development 113,000 36,000 36,000 36,000 36,000Rent 48,000 132,000 200,000 208,000 212,000Utilities 9,600 24,000 12,000 14,000 14,000Supplies 1,700 6,600 9,200 9,800 10,000Depreciation 21,000 48,000 69,000 69,000 69,000Wages 192,000 455,000 650,000 650,000 650,000Salaries 159,800 390,600 644,400 741,600 777,600Commisions 66,000 168,000 345,000 510,000 570,000
(Total Expenses) (776,900) (1,670,500) (2,920,400) (3,437,700) (3,682,400)
Earnings Before Interest & Taxes 76,700 502,300 1,541,600 3,158,300 3,689,600Taxes (35%) (26,845) (175,805) (539,560) (1,105,405) (1,291,360)
Net Income $49,855 $326,495 $1,002,040 $2,052,895 $2,398,240
For the Years Ended December 31, 2008
NavAssist, Inc.Income Statement
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Balance Sheet
2008 2009 2010 2011 2012Assets:Current Assets
Cash 280,015$ 501,550$ 1,123,890$ 2,954,285$ 5,315,525$Inventory 279,840 296,800 609,500 901,000 1,007,000Office Supplies 1,000 2,000 3,000 3,000 3,000
Property and EquipmentFurniture 60,000 120,000 180,000 180,000 180,000Accummulated Depreciation-Furniture (6,000) (24,000) (48,000) (72,000) (96,000)Equipment 75,000 150,000 225,000 225,000 225,000Accummulated Depreciation-Equipment (15,000) (45,000) (90,000) (135,000) (180,000)
Total Assets: $674,855 $1,001,350 $2,003,390 $4,056,285 $6,454,525
Liabilities:Stockholder's Equity:
Contributed Capital $625,000 $625,000 $625,000 $625,000 $625,000Retained Earnings 49,855 376,350 1,378,390 3,431,285 5,829,525
Total Liabilities and Stockholder's Equity $674,855 $1,001,350 $2,003,390 $4,056,285 $6,454,525
NavAssist, Inc.Balance Sheet
December 31, 2008-2012
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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 years 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.
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http://www.geosoft-gps.de/images/Gps_config.jpg
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.
11 This microphone has an attached a diagram to the crystal. The crystal will create a signal when sound waves hit the diagram.
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Latitude
Longitude
http://www.enchantedlearning.com/usa/activity/latlong/mapanswers.GIF
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 doesnt 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
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
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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.
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Appendix B (Personnel)
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 4Staff 6 6 6 6 8 8 8 8 8 8 9 14
TX-Dal ManagerStaff
TX-Hou ManagerStaff
Office Type Jan '09 Feb '09 Mar'09 Apr '09 May '09 Jun '09 Jul '09 Aug '09 Sep '09 Oct '09 Nov '09 Dec '09
AR Manager 4 4 4 4 4 4 4 4 4 4 4 4Staff 9 9 9 9 9 9 9 9 9 9 11 16
TX-Dal Manager 3 3 3 3 3 3 3 3 3 3 3 3Staff 8 8 8 8 8 8 8 8 8 8 10 10
TX-Hou ManagerStaff
Office Type 2010 2011 2012
AR Manager 4 4 4Staff 12 12 12
TX-Dal Manager 3 3 3
Staff 12 12 12
TX-Hou Manager 3 3 3Staff 10 12 12
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Appendix C (Sales Forecast)
2008 2009 2010 2011 2012Total Sales $1,320,000 $3,360,000 $6,900,000 $10,200,000 $11,400,000Arkansas 1,320,000 1,920,000 2,940,000 3,720,000 4,080,000Texas-Dallas 0 1,440,000 2,160,000 3,360,000 3,720,000Texas-Houston 0 0 1,800,000 3,120,000 3,600,000
Total # customers 2,200 5,600 11,500 17,000 19,000# Customers Arkansas 2,200 3,200 4,900 6,200 6,800# Customers Texas-Dallas 0 2,400 3,600 5,600 6,200# Customers Texas-Houston 0 0 3,000 5,200 6,000
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