Business plan hitechdeco

1.Products, Services & Mission2.Market & Opportunities3.Customers4.Competition5.Business Concept6.Pricing 7.Team, Goals & Objectives8.Financial Plan9.Resource Requirements10. Risks analysis

Sylvain REVUZ [email protected]

1.Products, Services & MissionServices: • Hitechdeco provides technologies and solutions to customize personal electronic

devices on-demand via an Internet shop. Two Products: • “Skin” allows user to design a protective outer skins for electronics devices that will be

stick on the electronic device. • “Premium” offers the possibility to print directly on the casing of a brand new product

ordered on our website.One Mission: • Hitechdeco aims to be the French leader in on-demand personalization technology

including the manufacture and distribution of customized products for electronic devices before Dec.2013

Customize your electronic devices…

2009 2010 2011 2012 2013 20140

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Forecast Sales in France of electronic devices by Category: 2009-2014

Portable Media Players Smartphones Laptops

Netbooks Gaming consoles and portables

Market trends• Design matters

• Geek is the New Chic • Online shopping

•Customization (I’m unique) • Crowd sourcing• Cost savvy (DIY)

•Mobile phone & laptop turnover

2.Market & Opportunities


• Step 1

• Step 2

• Step 3

3.Customers


10%

80%

9%

1%

85,847Geeks in France

662,400 “Trendy” in France

B2B

70,000 Artists in France

4. Competition


Barriers to entry•Proprietary products•Economies of scale•Learning curve•Government policy•Switching cost

Customer segments

Customer Relationships

Value proposition

Key activities

Key resources

Key partners

Cost structure Revenue streams

Geek, Design fan…

Corporate

Community membership

referral program

Co created products

Unlimited items

Online customization via design tools

Web platform

Customer behavior intel

Production/delivery

Community management

Engineering

Content producers

Service delivery

Global trend trackers

IT

Server

Marketing

Server Production

Distribution

Platform dev

Product sales(Low volume X unlimited

items)

User

Channels

Online Channels: B2B

B2C

Plotter, printer manuf.

Content producers,

artists designers…

Designer online shopcommission

Photo libraryRoyalty Free

Images

Start up phase

4. Business Concept (Phase 1)


4. Business Concept (Phase 2)Customer segments

Customer Relationships

Value proposition

Key activities

Key resources

Key partners

Cost structure Revenue streams

People looking for a

franchise.

Adv: No specific skill

required, home based

business, after work

possible, no interaction

with customers

PartnershipWeb platform

Web platform

Customer behavior intelCommunity

management

Production platform

Content producers

Global trend trackers

IT, Server

Franchisee

Marketing Server

Platform dev

Franchises royalties

User

Channels

Online Channels

Growth phase

Production platformSupport systemGlobal

purchasing Advertising

brandingFranchise

management

Franchise management

Platforms management

Brand management


Sales Forecast Year

2011Year 2012 Year 2013

Skin products $758,810 $1,751,100 $2,289,900

Premium products

$69,300 $210,000 $405,000

Total Net sales revenue

$828,110 $1,961,100 $2,694,900

Cost of goods sold

$312,498 $661,667 $872,500

Gross profit $515,612 $1,299,433 $1,822,400

6. Pricing


Team:• Six qualified founders of the company.• Good knowledge in the fields of: Printing, Management, Logistics, Marketing and Advertising, Strategies and Branding,

Finance and Administration, Production, Design and Assembly, Computer Science, Research and Development.• Unique insight and knowledge of different European business markets.• Fluency in several foreign languages: French, English, Italian, Spanish, German• Experience in multicultural team work• Flexibility, optimism and dynamism in action• Ability to quickly adapt to new situations and react to the changesGoals:• Focused differentiation (Step1 2011 => 2013)• Cost Leadership eco of scope & scale (Step2 2013=> 2016)• Operation excellent (fully automated solution) • Designer shop (auto promo)• Very short order fulfillment timeline• Real-time trend analysis Objectives:• Establishing an organization and office presence in Paris. • Completing development of the Internet shop before end of 2011. • Marketing the website and its services and products from February 2012. • Takeover 20% of market’s share in France in one year.• Introduce at least 50 new designs every month.• Reach payback before 3 years.

7.Team, Goals & Objectives


8.Financial Plan

Skin products Premium products

Total Net sales revenue

Cost of goods sold

Gross profit$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Year 2011 Year 2012 Year 2013

1 2 3

($600,000)

($400,000)

($200,000)

$0

$200,000

$400,000

$600,000

Net Income 2011 to 2013 (Break-even)

Statement of Income — 12/31/2011

(figures in AUD)Operating Revenue

Sales Revenue $828,110 Operating Expenses

Cost of goods sold $312,498 Advertising and marketing $320,000 Selling, general and administrative expenses

$700,670

Depreciation and amortization

$5,000

Total operating expenses $1,338,168 Operating income ($510,058)

Non-operating income $0 Earnings before Interest and Taxes (EBIT)

($510,058)

Net interest expense/income

$0

Earnings before income taxes

($510,058)

Income before provision for income taxes (The standard tax rate in France is 33.3 %)

$0

Net Income ($510,058)Employees 8Revenue Per Employee $103,514


9.Resource Requirements

2011 Fixed Costs

Machinery & Equipments costs

$ 166,990

Office equipments $ 40,500

Cost of setting up the company

$ 50,000

Web hosting + Website Design

$ 40,000

Consultancy services $ 100,000

Electricity $ 3,000

Rent $ 36,000

Insurance $ 8,400

Internet and phone $ 1,380

Administrative salaries $ 254,400

Total $ 700,670

2011 2012 2013Magazines $200,00

0$300,000 $400,000

Internet $50,000 $60,000 $70,000

Trade Shows $50,000 $50,000 $50,000

Student/Schools groups $20,000 $20,000 $20,000

Spending $320,000

$430,000 $540,000

•Based on our forecasts, our start-up requires 510 000 AUD of funding coming from externals partners like startup incubator or investor capital.•Without this capital, the Hitechdeco will never be able to meet his full potential in particular without a strong advertising campaign that will required 320,000 AUD in 2011.


10.Risks analysisPotential key risks

Scale

How to reduce the risk

Design cannot meet customers’ tastes

1

Using licensing agreements with Disney and other entertainment brands, Major League Soccer and other sports leagues to develop quickly a large catalogue.

The range of designs can be not vast enough – our target market compose people who wants unique products

2Increase price and be only focus on high value target and increase artist commission on each sale to improve our artist portfolio.

Product can be copied by another company which can introduce it to the market before us 4

The idea of product should be secured against unauthorized use and the franchise model must be deployed.

Market can occur too big to cope with – if we success very quickly and the demand will exceed our expectations we can be not able to produce enough

3

Increase price to limit the demand.

If we overestimate our competitive position in the market and our competitors occur too strong we will have problems with gaining market share

4We need to follow competitors and monitor their strategy and reaction.

After we establish the company there can be changes in economy that can e.g. cause an increase in bank loan’s interest rates, so if we take a loan we can have problems with payback the loan

2

We need to follow forecast for economy for at least few first years and follow any political and economic changes

The cost of production can totalise for more than our calculation. Costs underestimating can cause bankruptcy

1The costs’ calculation should be very thorough and should predict tolerance in case prices increase

The wrong choice of logo and advertising campaign may cost us a lot of money and cause a failure

4We need consultancies before starting our company.

If we don’t put enough impact on communication and advertising campaign sales targets will be not reachable

3We need to correctly fund or start-up and define a specific marketing program with KPI.

Lack of long term planning will cause a lack of resources and low rate of growth.

3Every 3 month challenge our strategy with consultants.
