Business Plan · Web viewBusiness 2 Planning and Development. Business Plan. The Dentist-to-Go Company. Business 2 Planning and Development. Business Plan. The Dentist-to-Go Company

Business PlanThe Dentist-to-Go Company

Business 2 Planning and Development

Dentist-To-Go Business Plan

Table of Contents

1.0 Executive Summary...................................................................................................................2 1.1 Description of Company................................................................................................2 1.2 Mission...........................................................................................................................2 1.3 Keys to Success..............................................................................................................2

2.0 Business Summary.....................................................................................................................3 2.1 Company History...........................................................................................................3 2.2 Mission Statement..........................................................................................................3 2.3 Vision Statement............................................................................................................3

3.0 Market Definition.......................................................................................................................4 3.1 Target Market.................................................................................................................4 3.2 Market Growth...............................................................................................................6 3.3 Competition....................................................................................................................7

4.0 Description of Product...............................................................................................................7 4.1 Product Design...............................................................................................................7 4.2 Competitive Edge.........................................................................................................10

5.0 Organization and Management................................................................................................11 5.1 Management Heirarchy................................................................................................11 5.2 Management Profile.....................................................................................................11 5.3 Ownership....................................................................................................................12 5.4 Needed Positions..........................................................................................................13

6.0 Marketing Strategy...................................................................................................................13 6.1 Product Plan.................................................................................................................14 6.2 Placement Plan.............................................................................................................15 6.3 Pricing Plan..................................................................................................................16 6.4 Promotional Plan..........................................................................................................17

7.0 Financials.................................................................................................................................18 7.1 Start Up Funding.........................................................................................................187.2 Assumptions.................................................................................................................19 7.3 Projected Profit and Loss.............................................................................................21 7.4 Pro Forma Income Statement.......................................................................................23 7.5 Long Term Plans..........................................................................................................23

Appendices

1.0 Pro Forma Income Statement 8 Quarter............................................................24 2.0 Cost of Goods Sold 5 Year Detail.....................................................................24

3.0 Cost of Goods Sold 8 Quarter Detail................................................................26 4.0 Operating Expenses 5 Year Detail....................................................................31 5.0 Operating Expenses 8 Quarter Detail................................................................36 6.0 Sales Projections and Assumptions...................................................................44 7.0 Start Up Funds

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Detailed....................................................................................44

1.0 Executive Summary 1.1 Description of Company- The Dentist-to-Go company is based on serving travelers and those who need products in a convenient easy to use form. We base our brand currently on the Dentist-to-Go, of which our company is named, an all in one toothbrush that combines brushing, flossing, and toothpaste. We are looking for investment to fund our growth and eventually an IPO. Dentist-to-Go is a New York based company that distributes its products to the continental United States with plans to go global after an IPO. Our product which is our entire product line at this moment consists of a toothbrush that is marketed towards frequent travelers. Our product will be manufactured at our plant in Rochester and will be consistently updated and re-designed to ensure the highest quality. We will price this product using a loss-leader strategy in order to have a high volume of sales and ensure large revenue. We believe that our future lies in our product line which will be developed over time to consist of anything and everything a traveler would need for bodily care. 1.2 Mission Our mission is to establish a profitable brand that provides a more convenient way to travel with all the necessities needed for proper dental hygiene. We will accomplish this mission by having strong manufacturing and development operations, marketing in ways that are specific to our target market, and developing a brand that is known for quality travel related products. 1.3 Keys to Success Our keys to success revolve around our company staying in line with our mission and vision statement in all operations we are involved in. Management This starts at the management level, the four founders of this company have excellent leadership abilities that can get us there. Our management will guide our company by making sound decisions about everything including what happens day to day but more importantly how we position ourselves for the future. The Market and Our Customer Our company’s target market is mainly business travels and frequent flyers. We also want to gear our company toward families who travel for leisure on a frequent basis. After the Dentist-To-Go becomes a larger company, we want to expand into other products that ease the stress to those who travel frequently. Dentist-to-Go has a special opportunity because we possess a brand that offers a toothbrush specially marketed to travelers, which no other company does. The market for this product is large at around 200 million people coming in and out of the U.S. This market is in a growth period after being in a retraction during the recession. We feel this can help us more easily gain a foothold in the market and become profitable more quickly. Our customer is any frequent traveler though we cater especially to business travelers. This is a market segment that has clear divisions and can be marketed to effectively. Our targeted consumer is a professional traveler who does not have much time available for things outside their job and values convenience heavily. We will market our product using a strategy based on maximizing the value to our target customer. Our product will be designed so that every feature will be useful to a traveler. We designed this product using materials that are lightweight and durable all of which are perfect for those on the go. We plan to sell our product in very few places to start out. The best places to sell our product would be in places where travelers often are, for example, in airports and train stations. We also plan in the future to sell directly to dentist offices after our

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brand has been better established. People can also purchase our product directly online. We will use the online store as testing grounds for new product lines in the future of our corporation. The Competition The product we are making is unlike many other products, its combination of all tooth care products into one is seen only by one other company. Our competition is only one other company called Fresh & Go. This company’s product only contains toothpaste, where as our product contains floss and toothpaste. Fresh & Go’s product is not marketed towards any specific group and is only available on the internet. They are not customer friendly as they only ship in bulk. We feel we will overtake the small market monopoly this company has easily, there is little entry difficulties into the market we are targeting. Fresh & Go simply is not competitive in their operations and is not considered an obstacle to our growth and profitability. Financial Projections and Plans In order to begin operating our business we will need start-up costs covered by investors wishing to be a part of this lucrative opportunity. Sales of our product will grow rapidly during the first five years and will sustain growth at these levels for a few years after. Our company will become profitable in the third year of operation. Our financial growth will be because of strong product branding and marketing and our goals are challenging yet attainable. Investing in our company will allow us to begin operation and the value we need, around half a million dollars, will be returned sixteen fold at the end of five years. At this time we plan to go public and the return on your investment can be realized. Our company offers an investment vehicle with much profitability and consciousness of time. Our sales volume, gross margin, and net income are detailed below to show the profitability of our company and where we are going financially.

1 2 3 4 5-$2,000,000

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000Financial Highlights

Net Operating Income

Products Total

Gross Margin

Years

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As the above graph shows our company will become profitable by sixteen fold of the initial investment. In conclusion by following focusing on our mission and keys to success we will become profitable and grow into a large corporation with a large presence in the travel industry.

2.0 Business Summary

2.1 Company History: We were in our Business class in the Saunders College of Business and we formed into teams of about three or four people. Professor Ward instructed us to brainstorm everyday problems. We discussed many of our daily problems with each other. Our next step was to brainstorm solutions. We came up with the solution as we were discussing traveling back home and forgetting items such as our toothbrushes. After plenty of thinking and collaboration we decided to create a toothbrush that would make traveling easier and improve everyday lives. We decided that this toothbrush would include the toothpaste in it, and have floss attached to it. It would be an all-in-one dental hygiene tool.

2.2 Our Mission Statement: Our mission is to establish a profitable brand that provides a more convenient way to travel with all the necessities needed for proper dental hygiene.

2.3Our Vision Statement: In the future we hope to become a provider of more convenient travel products to our consumers. Our hope is that the Dentist to Go will ease the stress and worry of travel and help make our company more wide-known to all travelers. We want to give our customers the highest quality product at a reasonable price.

3.0 Market Definition

3.1 Target Market Our target market consists of those needing a simple solution for their dental needs while on the go. This market includes travelers, mainly those that do so, on a frequent basis. Business travelers make up a large portion of this market and have defined needs that we tailor to. This type of traveler needs a product that is quick and easy to obtain, reliable, space efficient, and attractive aesthetically. We meet these needs by making the product readily available in travel hubs such as airports and train stations. To make it easy to obtain we also display the product in a visually attractive station that makes it stand out among other goods. The dentist to go needs to be reliable for those who depend on it and knowing this we will make a product that will last in order for the traveler to use it for many trips after the original purchase. Space efficiency is one of the main goals of the dentist to go and in order to tailor to the needs of travelers with limited space in bags etc. we make our product using research done on travel regulations and the average bag size. This market segment needs a product that emphasizes function, quality, and looks, rather than one focused highly on price. This can be explained by examining the demographics of the market segment. Business travelers are wealthier than the average consumer and therefore not as necessarily focused on price as his less wealthy counterpart would be. Also this type of traveler often needs a quick solution that does not require much thought, as they are already dealing with the heavy mental and physical demands of their job. Business people also travel often so our familiar with the travel process therefore we must work hard to integrate our product into their habits and schedules. Our research is summarized in the flow chart below:

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KEY Target market segment Characteristics of segment

Specific needs of segment

How we will meet those needs

In order to arrive at our target market we evaluated what are product has to offer. We then took these strengths and matched them to a consumer that needed those things. This will allow for the customer to be satisfied with our product. This chart helps us to quantify and map out how our product fits in with our target market. The top shows us our market segment and then as it travels down we establish traits specific to our segment. Next we show what need each characteristic fosters or results in. Lastly the orange blocks show how our product and its marketing strategy will fulfill these needs in order to maximize value to the customer. Our target market is not specifically business travelers but all frequent travelers but business travel makes up the larger portion of this market, the basis for it being the focus of this chart.

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Business Travelers

Wealthier

Focused heavier on outward

image

Aethsetically Attractive

product

Concerned less with

price

Less Emphasis on

price

Busy/ Rushed

Easy to access

product

Simple Distrubution

methods

Obvious and clear

advertising

Prominently displayed

advertising

Frequent Traveler

Space Effciency

Designed with

efficiency as a main goal

Reliable Product

High Quality Design

3.2 Market Growth The market of travel is one that is expanding and changing rapidly because of advancements in technology. Namely business travel is an industry that will be ever present even with the advent of technologies such as video conferencing. The industry will always be needed because a face to face meeting will always provide more value in comparison to one over the internet. The industry experienced a retraction during the recession as spending on travel was cut by corporations and businesses looking for much needed cash. As shown in the following charts once again the industry is growing and returning to its former breadth. In the US alone there were over 432 million person trips* in 2009 (US Travel). This results in around a market consisting of around 200 million people more specifically in the 210-220 million range. This is a large market that we can gain a share in and make profit doing so. Along with our main market segment we are targeting all forms of frequent travelers from leisure travelers to family travels. The specific travel segments are shown below with their growth rate for 2010.

Travel Type Growth in 2010Business 5.3%

Leisure/Tourism 6.4%Family 7.2%

Overall Travel Industry 5.9%Source: Travel Wire Industry Publications

The travel market is positioned for growth and our company and product line are poised to capitalize on it. Not only do the recent years show the growth potential of this market but also may industry experts are predicting growth in the future for the travel industry namely airlines. Such a study was done by IATA, the International Air Transport Association. The study concluded that by 2014 there will be an estimate 800 million more air passengers yearly worldwide and about 120 million will be in the United States. This data shows that the market is growing and will provide sustainable revenue for years to come for our company. The growth projected by leading travel information service companies is summarized below to show the growth potential in our market. As you can see the travel industry as a whole and more specifically the business travel sector are projected to grow over the next few years. Suggesting our company will be very profitable.

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Source: Business Travel News

3.3 Competition Though we have competition in terms of the all in one toothbrush by the Fresh&Go Company the market we are targeting has been largely ignored. This opens an opportunity for us to capitalize on. We believe we can capture .005% of business travelers and get them to buy our product within the first year, that’s five in every one thousand, a very attainable goal. This results in a consumer base of 8.64 million trips or around 4.3 million individuals. The market we have defined will provide a space that we can sell our product in. Our competition as said before will present no market entry obstacles. The Fresh & Go Company markets their product to everyone and does not segment the market, an unsuccessful strategy. Fresh & Go is not sold in stores, is only sold online. This is a hindrance to customers and a reason why our customer base will choose us over them. Our comparison to them is noted later as we quantify what we have that makes us better.

4.0 Description of Product

4.1 Product Design Our product is a tooth cleaning product that combines a toothbrush, toothpaste and floss into one. The product was designed with space efficiency in mind and is compact and lightweight. Each part of the Dentist to go is detailed below.

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Floss Head (back)

Neck

Paste Canister

Brush

2010 2011 2012 20135.0%5.2%5.4%5.6%5.8%6.0%6.2%6.4%6.6%

Growth Rate Annually

Business TravelTravel Industry

Parts-

Brush Head-

The brush head consists of nylon fibers that are attached to a plastic heat formed piece. The brush head connects to the neck which dispenses paste through the head and into the bristles. This is possible because of the formation we arrange our bristles in. They are arrange in a total of twenty bundles and in the center of these the toothpaste flows (shown below).

Materials-

-Nylon Fiber (20 groups)

-Plastic head mold

-with molded hole in it

Dimensions-

-Length=1.25 inches

Floss Head-

The floss head is made out of simple prongs strung with floss and angled off the back off the brush and neck head. The floss prongs are molded plastic and the floss string is Teflon string commonly known as dental floss.

Materials-

-Plastic Prongs

-Floss string

Dimensions-

-Length of Prongs

-0.75 inches

-Width of prongs

-0.05 inches

-Floss length

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Front View

Paste Dispensing Hole

Fiber Bundle

Prongs

Brush

Prongs

Floss

Back ViewSide View

-0.60 inches

Neck-

The neck of the toothbrush is a simple yet vital part of the product. It is made of heat molded plastic and connects the head and the paste canister. The neck has a hollow center that allows for the paste to travel up from the canister into the brush.

Materials-

-Plastic

Dimensions

-Length 4 inches

-Width .6 inches

Paste Canister

The paste canister is made out of plastic it is formed into a hollow cylinder. This cylinder can hold a replaceable toothpaste tube that fits inside the plastic shell. The shell has a knob on the outside that when turned pushed the paste through the neck and into the brush. The knob works by using force to squeeze the paste out of the inner tube. The inner tube resembles a normal tube of toothpaste just made into a shape that fits the plastic cylinder.

Materials-

-Plastic

-Turn Knob (plastic)

-Tube of Paste (plastic bagging)

Dimensions-

-Length of Canister

-3.5 inches

-Width

-1.5 inches

-Weight of tube

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Hollow

Paste Tube (fits in canister)

CanisterKnob

-4 ounces

-Design Advantages

-Lightweight

-Compact

-Replaceable toothpaste for multiple uses

-Our product maximizes the needs and wants of our target market. Our product is designed to suit the needs of our consumer. We made the product to be small and easy to travel with.

4.2 Competitive Edge

In reference to the table it can be seen that we have the comparative advantage over others in our industry in terms of product design and specifications. In every category of product design the Dentist to go has the advantage as seen in the above table (advantages are noted with a checkmark). Each category caters specifically to our target market. For example the size of the product, perhaps one of the most important specifications to travelers, we have a smaller and lighter unit than our competition. In conclusion we have the competitive edge in product design and the edge in the features that our target views as most important.

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5.0 Organization and Management The Dentist to go Company is a company managed and organized by highly capable and accredited business professionals. We are organized as corporation that utilizes a hierarchy that is shown charted below.

5.1 Management Hierarchy

5.2 Management Profiles Gauravdeep Singh

Age-19 years old Position-C.F.O Chief Financial Officer and Financial analyst/advisor Job Description-To find ways to increase capital in the firm and find the right places to

invest. Assist clients in planning and arranging financial affairs such as retirement provisions, tax treatments, savings etc. This person is also responsible for assessing the risks of the company and provides record keeping data. They also must analyze this data and report to the other executives and the board.

Work experience-Worked with PBG Private ltd India as Financial trainee for 2 years and worked as a trainee for a year with A.G Ltd India for a year

Qualifications-Graduated from D.P.S International, India with Degree in 4 Cambridge A-level Subjects, Studying finance at R.I.T

Compensation-o Salary- $60,000o Exercisable options- 50,000 shares

Karen Straub

Age-18 years old Position-C.E.O Chief Executive Officer Job description-.Highest ranking corporate officer, who is charge of the management of

the company at the highest level. This person will help guide the company towards the vision of the business. They guide the internal and external affairs and see to it that the

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CEO

CFO CAO Other Executives

Board of Exeutives

Chairman

Other Board Members

company is always working towards its goal. They run the company and oversee the actions of their subordinate executives.

Work experience-Working at Tim Horton’s since 2 years Qualifications-Graduated from Mount Mercy academy, Studying Business Management

at R.I.T Compensation-

o Salary- $85,000o Exercisable options- 80,000 shares

Kaitlyn Kearney

Age-18 years old Position- C.A.O. Chief Accounting Officer Job description- Responsible for overseeing all aspects of the accounting branch of the

company and to provide the rest of the executive officers with this knowledge. Also the C.A.O. acts as an accountant who measures and provide assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources. This person will also prepare accounting reports such as financial statements.

Qualifications-Graduated from Liverpool High School, Studies Accounting at R.I.T Compensation-


Justin Skillman

Age-19 years old Position- Chairman of the Board Job description- Responsible for leading the board of directors for the company.

Appointed by the board members. Acts as the president of the group while in meetings and preside over the actions being taken here. Is involved day to day in the company by advising the CEO on the direction and process of the company. Acts as the public figure head for the company. Sets the style of leadership on the board that filters down through the organization.

Qualifications-Graduated Pennridge High School, Studies Finance at R.I.T Ownership- Possesses a majority of ownership in the company in the form of common

stock valued at 15 percent of the outstanding shares. Compensation-


5.3 Ownership Justin Skillman

Owns fifteen percent of the common stock outstanding Chairman of the Board

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Gauravdeep Singh

Owns 6 percent of common stock C.F.O

Kaitlyn Kearney

Owns 5 percent of common stock C.A.O

Karen Straub

Owns 11 percent of common stock C.E.O

Remaining Board Members and Executives

Owns twenty percent total of common stock5.4 Needed Positions

Engineero We will require an engineer or someone with engineering skills as none of us are

from an engineer background and we don’t have expertise in that line of work. Marketer

o A marketing person is one of few very important assets of a company. As marketer is one that can sell a product profitably to the customers. This position will need to be filled by someone with a degree and much experience in the field and is imperative for our business goals.

Product Designero Product designer can help in making the product stylish and attractive. He/she can

give the right design to make the product look stylish and can work closely with the engineer and marketer to bring to together the design and marketing side of production to create a seamless distribution process.

6.0 Marketing Strategy Our target market consists of those looking for a simple solution for their dental needs while on the go. This market includes travelers, mainly those that do so, on a frequent basis. Business travelers make up a large portion of this market and have defined needs that we tailor to. Families that travel are also a large part of our market segment.

Value Proposition Who are we talking to? Frequent business travelers What are we trying to tell them? We promise that our product will free them from the frustration of forgetting their toothbrush, toothpaste or floss when they travel. It will minimize what they need to pack. In turn, traveling will be less stressful. Why should they believe us?

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Our product has been approved and recommended for use. If anything were to go wrong, like perhaps a defect, our company would fix it. Free of charge. What action do we want them to take as a result? We want our customers to try out our product and fall in love with its convenience. We promise to sell at a reasonable price and sell at certain locations. This product is guaranteed to satisfy our customer and will take over the world of dental hygiene. Tagline The Dentist-to-go is a compact travel toothbrush that satisfies all of your dental needs.

6.1 Product Plan

Brush-

Long lasting Inexpensive Nylon Durable

This type of brush will benefit our target market because it will provide a good ownership experience in that the brush will always remain in good condition and perform its job well. Using this material will also keep costs low. The Nylon used is the industry standard and is considered the best material available.

Paste Canister-

Replaceable Easy to use knob Fits paste into brush

The paste canister exceeds the needs of our target market. Travelers need a product that is compact and has many features compiled into one. The toothpaste canister does exactly that. It allows for the paste to be combined with the brush and therefore allows travelers to satisfy their need for small compact items. It also is refillable which helps the target market to always have their Dentist to go for years to come instead of having to replace it every time the paste runs out. This is something our competition doesn’t do that we do that will give us market share.

Floss head-

Replaceable

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Floss Head (back)

Neck

Paste Canister

Brush Head

Durable

Teflon Floss

Heat Molded

Neck

Nylon Brush Fibers

Compact

Floss head

(built in)

SmallNeck

Paste Canister (built in)

Small and streamlined with rest of brush Teflon

The flossing head provides more tools built into one product as did the paste canister. It provides maximum space utility to travellers, one of their biggest needs. It allows for flossing to be less of a hassle and takes less time than with conventional flossing. The Teflon used to make this product also greatly benefits our target market because it is durable and long lasting. As was the toothpaste the floss is replaceable a great thing for travels because it allows them to not have to replace the Dentist-to-go whenever the floss runs out.

Neck-

Compact Durable

The neck of the brush is what holds all the pieces together. It benefits our customers because it is durable, compact, and lightweight. It is made out of heat molded plastic which gives it rigidity even when put under stress. All of these qualities are essential to a traveling related product.

Below is a graphic displaying the qualities of a product that our target market needs and what part of our product fulfills those needs. The qualities that a product must have in order to reach the target market are listed in red while the parts of the

Dentist-to-go that allow for such attributes are in blue.

6.2 Place Plan We plan to sell our product in numerous places that will be most convenient for travelers, our target market, who is interested in the Dentist-To-Go. The places we plan to sell our product are in travel hubs such as train stations, airports, bus stations. We believe that these places will be the best for making a profit with our product because they will be most convenient and most fit for our target market. For example as travelers are walking through an airport and realize they forgot something they need for dental care, they can simply buy it in the mini stores in airports. This is convenient because people won’t have to make a separate trip to a department store to buy them. These places cater to our target market very well because of their nature of convenience and feasibility.

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*Locations for Year 1

Our product will be transported to our selling locations using shipping companies such as UPS or Fed Ex; and it will be shipped in bulk to places where a large volume is necessary. We will start out initially with a national business, across the entire United States while keeping the shipping cheap to provide large breadth of market. Below we have a table exploring different possibilities for shipping with prices included.

*Our rates are computed using the departing location as Rochester, NY and the average cost of shipping to the destinations for Los Angeles, New York City, Chicago, and Miami. With a package of weight equaling 20 lbs. (40 brushes) and two day shipping.

Though our plan during the first few years of our business is to sell exclusively at travel hubs (as shown above) and on the internet we see growth in the consumer purchase industry using channels like Wal-Mart and Target. These channels will be useful once our product is well known and has a loyal consumer base that are willing to go on a separate errand to buy it instead of just getting it on the way during a trip while traveling. We see this as a growth avenue that is a possibility on the horizon and will provide continued profits for our company.

6.3 Price Plan Dentist-To-Go will use the loss leader pricing strategy. Our company will use a modified loss leading strategy, by this we mean that we will not incur a loss when selling our main product but we will only profit a very small amount. We believe this is a good strategy because due to our competitions high pricing it is unnecessary to go that low as to incur a loss. We plan to integrate this strategy into how we market and how our product is designed. We will do this by making our toothbrush very inexpensive at close to a loss to our company. The toothbrush will be sold at

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Where it will be sold*: (20 Locations Total)

Train Stations (3)

Bus Stations (2)

Airports (15)

Shipping*

$61.48 bulk or $.49 per brush

$52.43 bulk or $.46 per brush

MagazinesSky Mall

Business Weekly

Traveler's

Family Circle

InternetFacebook

Google Ad's

LinkedIn

a price of $10-$15. After-market products like the floss and toothpaste refills will be sold at $6 and $8 respectively. The floss and the toothpaste roughly equal 30-40% of the selling price of the brush. This will help us drive sales and increase market share.

Toothbrush After-Market Products (floss/paste)

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Loss Leader Strategy

Product

% of Revenue for combined original and after market

product

Our closest competitor up until now has been Fresh&Go. Their product is selling at a price of $21 an almost 100% increase on our price. Our product also uses better advertising and distribution channels and that will give us an edge in the market. The future of our product and its price all depends on growth in the consumer purchase industry. Our future plans are to expand our locations to large chain companies like Wal-Mart and Target. Selling to these companies will raise revenue due to more consumers and loyal customers. Once we sell at these locations, our product will be sold at a general price of $12-$15.

6.4 Promotion Plan Advertising-The Dentist-To-Go will be advertised in numerous places, in order to get out product to be well-known. Many business travelers read certain magazines, which have been listed below. This increases their awareness about our product specifically towards the market we are targeting. Sky Mall is an excellent example of this, it is a magazine that is put in all airliners and will hit our target market spot on. One of our company’s smaller portions of our target, traveling families, can also become aware about the Dentist-To-Go through internet ads as well as magazines directed towards that audience. Advertising on the internet is a cost effective way to get our product out there. We can reach many of the customers we seek to attract using websites such as Facebook and LinkedIn.

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Another part of our advertising strategy is how we will display our product in the stores. We plan to use a corrugated cardboard display as shown below. But instead of a regular rectangular shape our display will be in the shape of a toothbrush with human features such as a face and arms. This display will be useful in driving sales because it is attractive to the eye and shows what our product is right away. The product will be son display inside of the “toothbrush man” in the area where his stomach and chest is. In order to get retailers to sell our product in the displays we want, we are making the display with a small footprint as to not take up a large portion of their store. We will also make it able to be placed at the front of the store where all the customers will see it. These displays will help us drive sales while reaching the target market.

Direct Selling- The Dentist-To-Go will be sold also on the internet directly to the consumers. This is a cost effective way of reaching the target market because in recent years the internet has become a main medium for finding information and buying a product.

Sales Promotion- We will employ as system of sales promotions to increase the volume of sales of our product. One sales promotion we will use is a contest, this contest will consist of the consumer giving their contact information to the company and then we will draw a winner at the end that will receive gifts such as t-shirts, product advertisements, and free giveaways. Contestants may enter every time they purchase a Dentist-to-go. This contest would boost sales because people are trying to win the contest and also increase awareness about our product and company. Our loss leader pricing strategy also is a part of our sales promotion system. It puts the original Dentist-to-go product at a lower price, barely making profit. And then sells the aftermarket products such as refill paste for a higher price to increase revenue.

Public Relations- We will create an image of quality and convenience in the public minds of our company. We will do this by using several different channels. One of our most useful public relations channel will be the newspapers, different from advertising a story or piece about our product will provide a review for customers that will help them to decide to purchase. Brochures are also a useful public relations tool and will be available at our product displays in stores.

7.0 Financials

7.1 Start Up Funding The Start-Up funds that are needed to begin operating are shown below in a table that characterizes the costs into categories. The categories include, cost of sales which is the cost of

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Combine

producing the goods. This includes the raw materials, manufacturing equipment, and the shipping of the goods. The second category is technology costs; this contains all technology related needs such as a computer infrastructure and security system. Administrative costs include costs such as rent, utilities and office supplies. Sales and marketing costs cover the fees incurred in advertising and public relations. Lastly the wages and benefits category analyzes the costs of all employees for the first quarter.

Start Up Funds*Category Cost

Cost of Sales $ 131,856.00

Technology Costs $ 37,857.47

Administrative Costs $ 71,933.33

Sales and Marketing Costs $ 11,400.69

Wages and Benefits $ 171,022.50

Total Funds Needed $ 424,069.99

*Detailed Start Up Funds available in Appendices

7.2 Assumptions We are assuming a certain volume of sales. We arrived at the assumptions about our sales by using a top down and a bottom up system to develop the most accurate number of products we will sell. Using these two projection strategies we can see that they achieve similar estimate and we believe the Bottom Up method yields a more reliable result and thus we will use those figures. The top down process is a process we used to check the validity or correctness of our bottom up process. After comparing the values are similar but we will not base our sales volume off of this method. Using this process we base our numbers off of the total market size and what percentage we think we can obtain. In the first year we estimate we can obtain .005 percent of the market. Every year after that we estimate a growth in market share at varying levels of change shown in the chart. The bottom up process, the one we will use to base our projected sales volume off of, is more reliable and useful. Using this process we base our numbers off how many sales people we have and how many accounts an individual can and will land. We are also assuming where our production is based and thus the shipping costs on average to our projected locations. We also assume that all advertising campaigns are a year long. Our inventory is stored in our manufacturing facility, this is also assumed. All of our assumptions for each year are noted below in the list.

19

Cost of Sales Technology Costs Administrative Costs

Sales and Marketing Costs Wages and Benefits

Year 1-

Headquartered in Rochester, NY Shipping/Selling in continental United States

Using Fed-Ex At a rate of $.49 per unit Wage costs include pay for 4 administrative positions, 10 manufacturing

and 1 sales positions. Advertising costs are for 1 year-long advertising campaign Rental cost based on 1 quarter based on 57000 square foot building in

Rochester Producing 8,000 units Inventory stored in same warehouse used for production 1 account landed is equal to one location, i.e.; store

Year 2-





Year 3-





Year 4-


Using Fed-Ex At a rate of $.49 per unit

20

Wage costs include pay for 4 administrative positions, 15 manufacturing and 7 sales positions.

Advertising costs are for 1 year-long advertising campaign Rental cost based on 1 quarter based on 57000 square foot building in


Year 5-





7.3 Projected Profit and Loss The Dentist-to-Go company will become profitable in the third year of existence. We plan to grow through the sales of our products and the development of our brand. Our growth plan is one that is challenging yet realistic, that is optimistic yet attainable. Our product sales growth is slow at first in the first several quarters and then grows exponentially around the eighth quarter mainly due to brand prominence and the resulting sales volume.

1 2 3 4 5 6 7 8-$140,000-$120,000-$100,000

-$80,000-$60,000-$40,000-$20,000

$0$20,000$40,000

Profit (quarterly)

Net Income

Quarter

21

1 2 3 4 5-$1,000,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Profit (yearly)

Net Income

Year

1 2 3 4 5 6 7 8-$60,000-$40,000-$20,000

$0$20,000$40,000$60,000$80,000

$100,000$120,000

Gross Margin (quarterly)

Gross Margin

Quarter

1 2 3 4 5-$2,000,000

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

Gross Margin (yearly)

Gross Margin

Year

22

7.4 Pro Forma Income Statement

Dentist-To-Go

Pro Forma Income StatementFirst Five Years

Year 1 Year 2 Year 3 Year 4 Year 5Costs of Goods SoldSales Revenue $95,920 $604,296 $1,918,40

0$4,767,224 $10,359,36

0Cost of Goods Sold $281,691 $310,283 $525,690 $689,785 $1,292,193Gross Margin -$185,771 $294,013 $1,392,71

0$4,077,439 $9,067,167

Gross Margin % -194% 49% 73% 86% 88%Operating ExpensesSales and Marketing Expenses $65,572 $176,843 $270,845 $406,160 $602,281General and Administrative Expenses

$294,260 $316,006 $371,803 $507,475 $731,921

Total Operating Expenses $359,831 $492,849 $642,648 $913,635 $1,334,203Net Operating Income -$545,602 -$198,836 $750,062 $3,163,804 $7,732,964Interest $0 $0 $0 $0 $0Taxes $0 $0 $255,021 $1,075,693 $2,629,208

Net Income -$545,60

2

-$198,83

6

$495,041

$2,088,110

$5,103,757

Net Profit/Sales -569% -33% 26% 44% 49%

7.5 Long Term Plans Dentist-to-Go will grow into a multi-million dollar company and be a high volume distributor of dental products within in the first five years. Our company will start out as purely built around our main product, The Dentist-to-Go toothbrush but we hope to expand later into other travel goods, while always having the traveler’s needs in mind. This growth will be fueled by an IPO we hope to have in our sixth year of operation. This public offering will also allow us to expand our distribution system creating a network with distribution centers all over the country while still being headquartered from a corporate level in Rochester, NY. After we have established ourselves as the leading travel goods producer in the United States we hope to spread our brand over-seas and increase our consumer base. Overall our goal is to become the most recognized brand for traveling related products.

23

Appendices

1.0 Pro Forma Income Statement 8 Quarter

Pro Forma Income Statement

First Eight Quarters

Quarter 1 Quarter 2

Quarter 3

Quarter 4

Quarter 5

Quarter 6

Quarter 7

Quarter 8

Costs of Goods Sold

Sales Revenue $19,184 $19,184 $23,800 $33,572 $115,104 $129,492 $158,268 $201,432

Cost of Goods Sold $74,534 $0 $0 $0 $77,354 $77,839 $79,638 $82,808

Gross Margin -$55,350 $19,184 $23,800 $33,572 $37,751 $51,654 $78,631 $118,625

Gross Margin % -289% 100% 100% 100% 33% $0.40 $0.50 $0.59

Operating Expenses

Sales and Marketing Expenses $5,743 $5,743 $5,743 $5,743 $5,743 $5,743 $5,743 $5,743

General and Administrative Expenses

$73,377 $73,377 $73,565 $73,941 $77,137 $77,701 $78,829 $80,521

Total Operating Expenses $79,120 $79,120 $79,308 $79,684 $82,880 $83,444 $84,572 $86,264

Net Operating Income -$134,469 -$59,936 -$55,508 -$46,112 -$45,129 -$31,790 -$5,941 $32,361

Interest $0 $0 $0 $0 $0 $0 $0 $0

Taxes $0 $0 $0 $0 $0 $0 -$891 $4,854

Net Income -$134,469 -$59,936 -$55,508 -$46,112 -$45,129 -$31,790 -$5,050 $27,507

Net Profit/Sales -701% -312% -233% -137% -39% -25% -3% 14%

2.0 Cost of Goods Sold 5 Year Detail

Cost of Goods Sold Year 1

Production Costs

Raw Materials

Component Description Quantity (Lot) # Lots Cost/Unit

Body Plastic Preform 8,000 1 $ 886.00

Head Nylon Bristle Head 4,000 2 $ 625.00

Floss Prongs Plastic Attachment 4,000 2 $ 500.00

Paste Canister Plastic Cylinder Preform 1,200 6 $ 125.00

Dispensing Knob Plastic knob 2,000 4 $ 350.00

Paste Toothpaste 1,600 5 $ 27.00

Floss Polyethylene 1,200 6 $ 10.00

24

Total $ 5,481.00

Production Payroll

Position Description # Employees Salary (quarter) Cost (yearly)

Manufacturing Production 10 $ 6,905.25 $ 276,210.00

Total $ 276,210.00

Total Cost of Sales $ 281,691.00


Production Costs

Raw Materials









Total $ 34,073.00

Production Payroll



Total $ 276,210.00



Production Costs

Raw Materials

Component Description Quantity (Lot) # Lots Cost/Lot








Total $ 111,375.00

Production Payroll



25

Total $ 414,315.00



Production Costs

Raw Materials









Total $ 275,470.00

Production Payroll



Total $ 414,315.00



Production Costs

Raw Materials









Total $ 601,668.00

Production Payroll



Total $ 690,525.00

Total Cost of Sales $ 1,292,193.00

26

3.0 Cost of Goods Sold 8 Quarter Detail

Cost of Goods Sold Quarter 1

Production Costs

Raw Materials









Total $ 5,481.00

Production Payroll

Position Description # Employees Salary (quarter) Cost (Quarterly)


Total $ 69,052.50



Production Costs

Raw Materials









Total $ -

Production Payroll


Manufacturing Production $ 6,905.25 $ -

Total $ -

Total Cost of Sales $ -


Production Costs

27

Raw Materials









Total $ -

Production Payroll


Manufacturing Production 0 $ 6,905.25 $ -

Total $ -



Production Costs

Raw Materials









Total $ -

Production Payroll



Total $ -



Production Costs

Raw Materials




28






Total $ -

Production Payroll



Total $ -



Production Costs

Raw Materials









Total $ 8,301.00

Production Payroll



Total $ 69,052.50



Production Costs

Raw Materials








29


Total $ 8,786.00

Production Payroll



Total $ 69,052.50



Production Costs

Raw Materials









Total $ 10,585.00

Production Payroll



Total $ 69,052.50



Production Costs

Raw Materials









Total $ 13,755.00

Production Payroll


30


Total $ 69,052.50


4.0 Operating Expenses 5 Year Detail

Operating Expenses Year 1

Sales and Marketing Expenses

Sales and Marketing Payroll

Position Description # Employees Salary (quarter)

Cost (yearly)

Sales Representative Direct Selling to retailers 1 $ 10,925.00 $ 43,700.00

Advertising/Promotion

Type Description Cost

Advertising/Promotion Retail Product Displays/In store ads $ 300.70

Advertising/Promotion Brand Advertising Campaigns $ 1,999.99

Miscellaneous Expenses

Category Description Cost (quarter) Cost

Travel Travel for Sales reps $ 4,000.00 $ 16,000.00

Selling Supplies Miscellaneous Needs $ 892.75 $ 3,571.00

Total Sales and Marketing Expenses $ 65,571.69

% Operating Expenses 18%


General and Administrative Payroll


Cost (yearly)

CFO Chief Financial Officer 1 $ 15,000.00 $ 60,000.00

CEO Chief Executive Officer 1 $ 21,250.00 $ 85,000.00

CAO Chief Accounting Officer 1 $ 14,250.00 $ 57,000.00

Chairman of the Board Leader of the Board 1 $ 18,000.00 $ 72,000.00

Total Payroll $ 274,000.00

Depreciation Expense

Capital Investment Cost/Item Lifespan (years)

Quantity Cost/Year

Fork Lift $ 9,499.00

15 3 $ 1,899.80

Product Assembly Line Machines $ 10,000.00

10 10 $ 10,000.00

Total Depreciation Expenses $ 11,899.80


31


Utilities Water, Gas, Telephone, Sewage $ 275.00 $ 1,100.00

Office Supplies Office Supplies $ 250.00 $ 1,000.00

Internet High Speed Internet $ 225.00 $ 900.00

Shipping Shipping of Goods to Retailers $ 940.00 $ 3,760.00

Other General and administrative Payments

$ 400.00 $ 1,600.00

Total General and Administrative Expenses $ 294,259.80


Total Operating Expenses $ 359,831.49





Cost (yearly)









Selling Supplies Miscellaneous Needs $ 1,785.50 $ 7,142.00






Cost (yearly)








Quantity Cost/Year

32


15 3 $ 1,899.80


10 10 $ 10,000.00


11 2 $ 1,818.18







Shipping Shipping of Goods to Retailers $ 5,922.00 $ 23,688.00


$ 400.00 $ 1,600.00








Cost (yearly)




Advertising/Promotion Retail Product Displays/In store ads $ 1,202.80











Cost (yearly)



33






Quantity Cost/Year


15 3 $ 1,899.80


10 10 $ 10,000.00


11 2 $ 1,818.18


13 4 $ 3,076.92









$ 652.00 $ 2,608.00








Cost (yearly)











34





Cost (yearly)








Quantity Cost/Year


15 3 $ 1,899.80


10 10 $ 10,000.00


11 2 $ 1,818.18


13 4 $ 3,076.92









$ 652.00 $ 2,608.00








Cost (yearly)





35











Cost (yearly)








Quantity Cost/Year


15 3 $ 1,899.80


10 10 $ 10,000.00


11 2 $ 1,818.18


13 4 $ 3,076.92


13 5 $ 3,846.15









$ 1,000.00 $ 4,000.00



Total Operating Expenses $ 1,334,202.54

36

5.0 Operating Expenses 8 Quarter Detail

Operating Expenses Quarter 1




Cost (quarterly)





Advertising/Promotion Brand Advertising Campaigns $ 500.00


Category Description Cost

Travel Travel for Sales reps $ 4,000.00

Selling Supplies Miscellaneous Needs $ 892.75

Inventory Expenses Organizing and storing $ 849.99





Position Description # Employees Cost (quarterly)

CFO Chief Financial Officer 1 $ 15,000.00

CEO Chief Executive Officer 1 $ 21,250.00

CAO Chief Accounting Officer 1 $ 14,250.00

Chairman of the Board Leader of the Board 1 $ 18,000.00




Quantity Cost/Quarter

Fork Lift $ 9,499.00 15 3 $ 474.95

Product Assembly Line Machines $ 10,000.00 10 10 $ 2,500.00




Utilities Water, Gas, Telephone, Sewage $ 275.00

Office Supplies Office Supplies $ 250.00

Internet High Speed Internet $ 225.00

Shipping Shipping of Goods to Retailers $ 188.00

$ 752.00

Other General and administrative Payments $ 400.00



37






Cost (quarterly)
























Fork Lift $ 9,499.00 15 3 $ 474.95









$ 752.00




38






Cost (quarterly)
























Fork Lift $ 9,499.00 15 3 $ 474.95









$ 940.00




39






Cost (quarterly)
























Fork Lift $ 9,499.00 15 3 $ 474.95









$ 1,316.00




40






Cost (quarterly)
























Fork Lift $ 9,499.00 15 3 $ 474.95












41






Cost (quarterly)
























Fork Lift $ 9,499.00 15 3 $ 474.95












42






Cost (quarterly)
























Fork Lift $ 9,499.00 15 3 $ 474.95












43






Cost (quarterly)
























Fork Lift $ 9,499.00 15 3 $ 474.95












44


6.0 Sales Projections and Assumptions

Sales Projections First Five Years Top Down

Year Total Market Size Percentage of Market Products Total % Increase

1 216,000,000.0 0.005% 10,800 N/A

2 231,200,000.0 0.025% 57,800 535%

3 249,400,000.0 0.080% 199,520 345%

4 266,600,000.0 0.170% 453,220 227%

5 287,340,000.0 0.350% 1,005,690 222%

*Numbers in Millions of people (assuming each person buys 1 brush)

Sales Projections First Five Years Bottom Up

Year Sales Associates Accounts Landed Total Products per Account Products Total % Increase

1 1 20 400 8,000 N/A

2 3 42 400 50,400 630%

3 5 80 400 160,000 317%

4 7 142 400 397,600 249%

5 10 216 400 864,000 217%

Sales Projections First 8 Quarters Bottom Up

Quarter Sales Associates Accounts Landed Products per Account Products Total % Increase

1 1 4 400 1,600 N/A

2 1 4 400 1,600 100%

3 1 5 400 2,000 125%

4 1 7 400 2,800 140%

5 3 8 400 9,600 343%

6 3 9 400 10,800 113%

7 3 11 400 13,200 122%

8 3 14 400 16,800 127%

7.0 Start Up Funds Detailed

Startup Costs

Cost of Sales

Raw Materials



45







Total $ 3,359.00

Manufacturing Equipment

Machine Description/Use Quantity Cost/Item Cost

Fork Lift Lifts palettes of products 3 $ 9,499.00 $ 28,497.00

Assembly Line Machines Assemble product 10 $ 10,000.00 $ 100,000.00

Total $ 128,497.00

Shipping

Service Description Quantity Cost/package Cost

UPS UPS Shipping 30 $ 52.43 $ 1,572.90

Shipping Insurance Shipping insurance costs 30 $ 0.29 $ 8.65

Total $ 1,581.55


Technology Costs

Computers

Product Description Quantity Cost/item Cost

Computer Hardware PC's 20 $ 699.99 $ 13,999.80

Computer Software Office, Excel etc. 20 $ 99.99 $ 1,999.80

Printer/Fax/Copy Prints fax’s and copies 2 $ 1,949.00 $ 3,898.00

Servers Host web site 2 $ 499.99 $ 999.98

Total $ 20,897.58

IT

Service Description Quantity Cost/item Cost

Web Development Create company website 1 $ 12,000.00 $ 12,000.00

High Speed Internet Internet for building 1 $ 99.99 $ 99.99

Total $ 12,099.99

Security

Service/Product Description Quantity Cost/Item Cost

Security Cameras Protects facility 8 $ 69.99 $ 559.92

Monitoring TV's Records Camera data 2 $ 149.99 $ 299.98

Installation Setting up system 1 $ 4,000.00 $ 4,000.00

Total $ 4,859.90

Total Technology Cost $ 37,857.47

Administrative Costs

46

Facility Costs

Product/Service/Fee Description Cost

Rent Fee for renting the building from owner. (quarterly) $ 41,024.00

Utilities Water, Gas, Telephone, Sewage $ 1,100.00

Building Maintenance Making sure the building is up to code and safe $ 2,200.00

Total $ 44,324.00

Office Products

Products Description/Use Quantity Cost/item Cost

Desks Workspace 20 $ 499.99 $ 9,999.80

Chairs Office chairs 40 $ 189.99 $ 7,599.60

Meeting Tables Boardroom (seats 10) 2 $ 4,200.00 $ 8,400.00

Filing cabinets Metal 7 $ 229.99 $ 1,609.93

Total $ 27,609.33

Total Administrative Costs $ 71,933.33

Sales and Marketing Costs

Advertising

Advertising Agreements Description Cost

Web Ad Campaign On the internet $ 799.99

Magazine Ad Campaign In Sky Mall etc. $ 1,200.00

Total $ 1,999.99

Physical Advertising Description Quantity Cost/item Cost

Product Displays Cardboard display 30 $ 8.99 $ 269.70

Signboards For in the stores 20 $ 1.55 $ 31.00

Total $ 300.70

Public Relations/Client Sales

Service/Product Description Quantity Cost/item Cost

Travel for Clients/Sales Airfare/Lodging 4 $ 2,200.00 $ 8,800.00

News Agency Story News Story 6 $ 50.00 $ 300.00

Total $ 9,100.00

Total Sales and Marketing Costs $ 11,400.69

Wages and Benefits

Payroll

Position Description People Salary (quarter) Cost

Administrative Office Jobs ie:CFO 4 $ 14,261.50 $ 57,046.00


Sales Sales 4 $ 11,231.00 $ 44,924.00

Total $ 171,022.50

Total Wages and Benefits Costs $ 171,022.50

47

Total Startup Costs $ 424,069.99

48

Documents

Business Plan · Web viewBusiness 2 Planning and Development. Business Plan. The Dentist-to-Go Company. Business 2 Planning and Development. Business Plan. The Dentist-to-Go Company