Michael Caston - Business Plan_11.30.2015

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CAMIC designs LLC - New Venture Feasibility

Ergo-Life Assistive ProductsHelping to take the “Dis” out of “Disability”

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I. Executive Summary 3 - 4

II. Company Background 5 - 6 History 5 Mission Statement 5 Company Goals and Objectives 5 Business Philosophy 5 Strengths and Competencies 6 Form of Ownership 6

III. OpportunityIdentification7-8 Target Market 7 Industry Analysis 7 - 8

IV. Products 9 - 14 Product Descriptions 9 - 10 Product Testing 11 - 12 Consumer Feedback 11 - 12 Insights and Iterations 13 - 15

V. Competitive Analysis 15 - 19 Competitive Products (Pros and Cons) 15 - 18 Competition Summary 19

IV. Manufacturing Costs 20 - 22 Ergo-Paint Manufacturing Quote 20 - 21 Ergo-Ware Manufacturing Quote 22

VII. Timeline 23

VIII. Financial Projections 24

VIII. Appendix:DesignIterations25-27 IX. Sources28

Table of Contents

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Executive Summary

Michael CastonCAMIC designs LLC6577S.ClarksonStreetCentennial,CO80121(303)[email protected]

Introduction

The baby boomer generation (born between 1946 and 1964) is aging. This generational population numbers roughly 75.8 million (one-third of the entire American population). Current baby boomers are between the ages of 51 and 69 and make up 44% of the US adult population over 50 years of age. In 5 years, 50% of the U.S. population will be over 50 years of age. The majority are still working, but considering retiring in the next few years. Baby boomers realize that they will be living longer than prior generations and so they are looking for ways to increase their quality of life and stay active. The assistive product industry is growing rapidly. With the aging baby boomer median population currently reaching the retirement age of 65, there is an influx of demand for products to increase the quality of life for the aging population. The Elderly and Disabled Services industry, as a whole is in the growth phase and will continue to grow significantly beyond 2040 when the last of the baby boomer generation turns 75.

Company Description

CAMIC designs LLC is a company that is dedicated to improving lives through design. “Ergo-Life” is a new brand of products, housed under CAMIC designs LLC, specifically designed to assist the aging population with everyday tasks and improve their quality of life. CAMIC designs LLC, is a design firm specializing in product and graphic design as well as packaging design. The company was founded by partners Michael and Cheryl Caston in 2007. Clients include Fortune 500 companies, independent inventors, and various U.S. government agencies. Since its founding, CAMIC designs LLC has helped bring numerous products to market for its clients and under several in-house brands.

CAMIC designs LLC has a mission statement, “To make the world a better place and improve lives through thoughtful, high quality design”. Recently, CAMIC designs LLC has developed two flagship products; one that assists individuals with low motor control in their hands to effectively use tableware when eating and another product that helps similar individuals with painting. These products will be housed under the new brand, Ergo-Life. Ergo-Life’s mission statement is “Helping to take the “DIS” out of “DISABLED”.

CAMIC designs LLC desires to enrich people’s lives through design. We achieve this by investing in projects that we believe to have a positive impact on this world and quality of life. We desire to continue to be a small, agile business, but to grow to a company that employs 5-10 full and part-time employees with gross sales between $1 and $2 million annually. Our business philosophy summarizes our goals: CAMIC designs LLC believes in high quality products that are designed with empathy, delivered with compassion, and backed with responsible responsiveness.

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Market Analysis

The baby boomer market has not reached its full potential yet for the product category developed by Ergo-Life. As the baby boomer generation continues to age, there will be a growing demand for Ergo-Life products. Compounding this, there is a growing trend in ergonomic products. Ergonomic innovations will continue to rise in popularity as more people become more in tune with their bodies and start to regard their health with more awareness. Consumer demand is a growing trend that seemingly began with office products, namely, the office chair. Ergo-Life will compete in the “ergonomic products”, “assistive medical products”, and “housewares” industries.

Industry Analysis

In the United States, the population that is aged 50 and older has $2.4 trillion in annual income, accounting for 42% of all after-tax income in the country. Furthermore, this same population accounts for over half of the nation’s sales of consumer packaged goods, but are targeted by just 10% of marketing. This means that baby boomers have money and are willing to spend it, yet the industry has not fully capitalized on the potential buying power of this generation. Baby boomers want to continue to stay active and independent and are looking for solutions to the ever-changing problems that they face as a result of aging.

The Centers for Disease Control and Prevention estimated that one in five Americans, about 53 million people, have a disability of some kind. This includes 33 million Americans with a disability that makes it difficult for them to successfully complete daily activities such as getting out of bed, putting on their shoes, eating, personal hygiene, etc. Some people with disabilities require assistance to accomplish basic tasks, but with the availability of family caregivers continuing to decline, this is not always a possibility. Products that can better assist those with a disability, helping them accomplish everyday tasks, will continue to grow in demand.

Management Team:

The founders of CAMIC designs LLC have a combined 25 year history of experience in business, product and graphic design, engineering, website design, marketing, search engine optimization, manufacturing, distribution, and sales. Michael holds degrees in Psychology, Spanish, Industrial Design, and is currently enrolled in an MBA program focusing on entrepreneurship. Cheryl holds an undergraduate degree in Industrial Design and Graphic design and an advanced degree in Industrial Design. In specialty areas that CAMIC designs LLC does not have experience in, they have contracted out through the company’s large industry network. Currently, there are four contractors working for CAMIC designs LLC with skills in ideation, metal fabrication, medical equipment design, automotive design, customer service, distribution, 3d modeling and rendering.

Finances and Timeline:

Designs for both flagship products are currently going through additional iterations of prototyping and field testing. A Kickstarter campaign will be launched in Summer 2016 in order to raise the $50,000 required to launch the first product. Manufacturing will begin in Fall 2016 and products will be available for purchase before the end of calendar year 2016. With the success of each product in the market, new assistive devices will continue to be added to expand the product family.

Executive Summary

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6577 S. Clarkson StreetCentennial, CO 80121(303) [email protected]

History:

CAMIC designs LLC is the parent company of the proposed new subsidiary company and brand “Ergo-Life”, which will be discussed in this business plan document. The parent company, CAMIC designs LLC, is a design firm specializing in product and graphic design as well as packaging design. CAMIC designs was founded by partners Michael and Cheryl Caston in 2007. Since its founding, CAMIC designs LLC has brought numerous products to market under several house brand names to include “CAMIC designs”, “Ballet Gift Shop”, “Nutcracker-Gifts”, “Critter Gift Shop”, and “My Custom Gift Shop”, in addition to a host of products under independent client brand names. CAMIC designs LLC’s clientele include Fortune 500 companies, independent inventors, and various U.S. government agencies.

During the past nine years of business, CAMIC designs LLC has designed several in-house products that they have desired to pursue further, but fall outside of their established pipelines to market. These “new” venues require a large amount of time and effort to research and investigate market feasibility because they are dissimilar to the markets that CAMIC designs currently works in. One of these venues focuses in assistive products for the disabled, differently-abled, and elderly. Recently, CAMIC designs LLC has developed two flagship products; one that assists individuals with low motor control in their hands to effectively use tableware when eating and another product that helps similar individuals with painting.

Mission Statement:

CAMIC designs LLC has a mission statement, “To make the world a better place and improve lives through thoughtful, high quality design”. The new Ergo-Life brand has a more definite mission statement, “Helping to take the “DIS” out of “DISABLED”.

Company Goals and Objectives:

CAMIC designs LLC desires to enrich people’s lives through design. We achieve this by investing in projects that we believe to have a positive impact on this world and quality of life. We desire to continue to be a small and agile business, but to grow to a company that employs 5-10 full and part-time employees with gross sales between $1 and $2 million annually.

Business Philosophy:

CAMIC designs LLC believes in high quality products that are designed with empathy, delivered with compassion, and backed with responsible responsiveness.

Company Background

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Company Strengths and Core Competencies:

The founders of CAMIC designs LLC have a combined 25 year history of experience in business, product and graphic design, engineering, website design, marketing, search engine optimization, manufacturing, distribution, and sales. Michael holds degrees in Psychology, Spanish, Industrial Design, and is currently enrolled in an MBA program focusing on entrepreneurship. Cheryl holds an undergraduate degree in Industrial Design and Graphic design and an advanced degree in Industrial Design. In specialty areas that CAMIC designs LLC does not have experience in, they have contracted out through the company’s large industry network. Currently, there are four contractors working for CAMIC designs LLC with skills in ideation, metal fabrication, medical equipment design, automotive design, customer service, distribution, 3d modeling and rendering.

Legal form of ownership:

CAMIC designs is a Limited Liability Company, organized in 2007 as a 50/50 partnership between the founding members: Michael Caston and Cheryl Caston. An LLC was selected because of the lawsuit protection, tax benefits, deductible employee benefits, and perpetual duration afforded by the State of Colorado (Companies Inc., 2015). Each of CAMIC designs’ house brands, Balletgiftshop, Crittergiftshop, Mycustomgiftshop, and Nutcracker-gifts, are protected under the CAMIC designs LLC umbrella. Legal advice will need to be obtained to determine whether the new brand “Ergo-Life” will fall under the CAMIC designs LLC domain under a new trade name or if an entirely separate company will be launched.

Company Background

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Target Market:

The target market for the Ergo-Life brand is individuals with disabilities who desire to live a more active life but require assistive products for completing daily tasks. Ergo Life’s initial products are targeting more specifically to individuals with temporary or permanent physical conditions that limit their hand or finger movement. Such conditions include, but are not limited to, physical deformities, paralysis or partial paralysis, arthritis, hand or finger injuries, and carpal tunnel syndrome. The products are to be sold retail direct to consumers as well as indirectly to consumers through retail stores, hospitals, assisted living facilities, and therapeutic centers.

Industry Analysis:

The target market for ergonomic household products is large and contains many segments to include physically disabled, elderly, and baby boomers. Focusing specifically on the largest of all the potential markets, and in the US alone, the baby boomer generation (born between 1946 and 1964) is made up of the biggest defined population boost in the history of the U.S. (Mummer 2004). This generational population totals roughly 75.8 million (one-third of the entire American population).

Opportunity Identification

United States birth rate (births per 1000 population). The red segment from 1946 to 1964 is the postwar baby boom, with birth rates starting to drop around 1960 (Vital Statistics, 2003).

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The baby boom has been described in many ways such as a “shockwave” (Owram 1997) and as “the pig in the python” (Jones 1980). Current baby boomers are between the ages of 51 and 69 and make up 44% of the US adult population over 50 years of age. In 5 years, 50% of the U.S. population will be over 50 years of age. They control around 70% of the disposable income in the country (Introducing Boomers, 2012). The majority are still working, but considering retiring in the next few years. Baby boomers realize that they will be living longer than prior generations and so they are looking for ways to increase their quality of life and stay active. The assistive product industry is growing rapidly. With the aging baby boomer median population currently reaching the retirement age of 65, there is an influx of demand for products to increase the quality of life for the aging population. IBISWorld concludes “The continued aging of the population will boost industry demand” (Diment, 2015). The Elderly and Disabled Services industry, as a whole is in the growth phase and will continue to grow significantly beyond 2040 when the last of the baby boomer generation turns 75.

The baby boomer market has not reached its full potential yet for the product category developed by Ergo-Life. As the baby boomer generation continues to age, there will be a growing demand for Ergo-Life products. Compounding this, there is a growing trend in ergonomic products. “Ergonomic innovations continue to rise in popularity as more people become more in tune with their bodies and start to regard their health with more awareness” (49 Ergonomic Innovations, 2011). Consumer demand is a growing trend that seemingly began with office products, namely, the office chair (Ergonomics 101, 2013).

By 2050, it is anticipated that Americans aged 65 or older will

number nearly 89 million people. (The State of Aging, 2013).

In the United States, the population that is aged 50 and older has $2.4 trillion in annual income, accounting for 42% of all after-tax income in the country. Furthermore, this same population accounts for over half of the nation’s sales of consumer packaged goods, but are targeted by just 10% of marketing (Weigelt, 2015). This means that baby boomers have money and are willing to spend it, yet the industry has not fully capitalized on the potential buying power of this generation. Baby boomers want to continue to stay active and independent and are looking for solutions to the ever-changing problems that they face as a result of aging.

The Centers for Disease Control and Prevention estimated that one in five Americans, about 53 million people, have a disability of some kind. This includes 33 million Americans with a disability that makes it difficult for them to successfully complete daily activities such as getting out of bed, putting on their shoes, eating, personal hygiene, etc. (Courtney-Long, 2015). Some people with disabilities require assistance to accomplish basic tasks, but with the availability of family caregivers continuing to decline, this is not always a possibility (Diment 2015). Products that can better assist those with a disability, helping them accomplish everyday tasks, will continue to grow in demand.

Opportunity Identification

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Ergo-Life has plans to launch a large series of assistive products, but initially, Ergo-Life will start with two products: “Ergo-Ware” and “Ergo-Paint”. These products will be described in detail below.

Ergo-Ware

Ergo-Ware flatware has been specifically designed for individuals with low motor control in their hands due to arthritis, cerebral palsy, stroke, or other degenerative diseases and conditions. These implements have carefully designed interfaces to allow for ease of use in multiple eating applications. The utensils are manufactured using injection molded food-safe polypropylene for the body of the handle and stamped stainless steel metal for the stem that will retain flexibility for manipulation into a variety of positions to serve a greater spectrum of users.

Product Descriptions

The initial protoype (pictured center) focused on changing the angle of interaction with the user and the spoon by 45 degrees to put the hand in a more neutral and comfortable position when using the utensil.

A thumb hole was introduced to allow for an anchor point for the utensil. Contours were introduced in the handle that would fit comfortably with the other fingers. An area that extends beyond the handle is used to stabilize the utensil between two fingers.

The second protoype (pictured during use on the left) retained the 45 degree angle of the initial prototype to all for optimized ergonomic interaction with the product. It also kept the thumb hole which allows an anchor point on the utensil.

A gentle curve was introduced to allow the index finger to cup the untensil. A gentle slope was used underneath the spoon handle to allow for the utensil to rest comfortably on top of the other fingers.

See Appendix A for further design iterations.

Standard spoon, initial prototype, secondary prototype

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Ergo-Paint

Ergo-Paint painting implements have been specifically designed for individuals with low motor control in their hands due to arthritis, cerebral palsy, stroke, or other degenerative diseases and conditions. These instruments are designed for individuals who want to continue to participate in productive and creative activities. The paintbrushes have a soft elastomeric body comprised of silicone. These gloves will be manufactured in small, medium, and large sizes. They will be able to stretch to accommodate a variety of hand sizes in between these sizes. Interchangeable brushes clip on and off with a quick slide of a button. This release method was chosen for a specific reason. With the ubiquity of smart devices such as phones and tables, the “press and slide” method for activation has been shown to be the most accessible to the widest range of users (Yu, 2011). A variety of brushes will be made available for applications to include broad based painting such as in painting walls, or fine painting such as in artistic expression on a canvas. Individuals require strength in the shoulder and arm to manipulate the brush. Strength in the hand and wrist is not necessary to utilize these tools.

While this product is designed as an assistive device, it also has market potential for a wider range of users in addition to the niche of assistive devices. Because of its ergonomic design, even able-bodied adults find it fun and easy to use.

Product Descriptions


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Ergo-Ware

While Ergo-Ware will include many different utensils to include forks and knives, two Ergo-Ware spoon prototypes were initially developed and used for testing purposes through interviews with potential customers in order to gain immediate feedback to lead into further design iterations.

Participants were not told how to hold the Ergo-Ware spoon, but were allowed to hold it in the manner that was most intuitive and comfortable for them. While all participants immediately inserted their thumb through the thumb hole (which was the design intent), they experimented with a variety of configurations for their other fingers. They provided commentary on the comfort level and ability to control the spoon.

“The thumb hole is too large” - Karol“The hole feels like the perfect size” - Jerry

“I feel like I have a lot of control when holding it like this” - Jerry (holding the second prototype as intended)

Product Testing

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Ergo-Paint

While Ergo-Paint will include many different style brush inserts, a basic 3” professional paint brush insert was chosen for testing purposes to gain immediate feedback to lead into further design iterations.

Participants were not told how to hold the Ergo-Paint brush, but were allowed to hold it in the manner that was most intuitive and comfortable for them. All participants immediately started using it in the correct manner. The participants experimented with different stroke patterns and different positions of the glove on the hand (how far in or out their hand was). Since the prototype was produced in only one size, there was a difference in opinion between the participants about easy/hard it was to control the brush.

“The glove feels too large. I feel like I need to use my thumb to control it” - Karol“The glove stays on pretty well especially since I am pressing against the wall” - Jerry

“I’ve only had it on for a little bit and I can already tell my hand is getting sweaty” - Karol

Product Testing

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Insights were obtained from the feedback from the initial product testing:

For the Ergo-Ware, it was determined that one-sized thumb hole might not be appropriate for all users. If the hole is too big, the user might lose some of the ability to control the utensil. Different sized holes will be experimented with to determine if there should be a Small/Medium/Large system sizing available to the market. Also, it was observed that sometimes the users placed their index and middle fingers around the end of the spoon handle so that their index and middle finger sandwiched the spoon handle (see picture to left). The idea of being able to partially grip and stabilize the handle by taking advantage of the fingers’ natural neutral position led to another design iteration (pictured below).

This design iteration has a bevel at the end of the spoon handle to encourage the user to put their index finger above the handle and their middle finger below the handle so as to “pinch” the spoon handle between their fingers as if they were holding a pencil.

A further iteration designed to capitalize on the fingers’ natural, neutral positions led to the addition of a “joystick” in which the user can grasp the utensil with all over their fingers (pictured right). This adds another option for additional stability. Upon initial testing, this design iteration has proven very successful in stabilizing the utensil. Additional testing and design iterations are planned based on this design.

Insights and Iterations

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Insights were obtained from the feedback from the initial product testing:

For the “Ergo-Paint”, design iterations have been planned to include holes in the silicone glove to allow for breathability, and an interior angled ribbing texture that will encourage the glove to slip on easily but not to slip off while in use. The current design (pictured below) has six injection molded components (not including the brush inserts). The manufacturing quotes obtained for this design (see “Costs” section) were high. Another iteration is currently being designed that will reduce the number of components in half so that there are only three components required for the glove.

Additional design considerations are being developed to allow for a place for the thumb to rest. The desire to locate the thumb was noted by users during the field tests with the initial prototype.

Insights and Iterations

Rendering of initial prototype

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The following is a summary of the pros and cons of competitive products of Ergo-Ware as stated by consumers of those products (consumer reviews). Keywords include: ADL – Activities of Daily Living, Medical and Ergonomic Products, Adaptive (eating) products, Elderly/disability products, Assistive living devices/products.

Competition

Abelware’s Utensil Hand Clip Sold on www.amazon.comPrice $12

Pros: • Cheap • Adaptable to insert a variety of existing utensils • Designed for someone with no ability to graspCons: • Can only hold utensil in one orientation • Customers complain that it can be a tight fit and bruise top of hand easily (swollen diabetic hands, fragile elderly skin or due to blood thinners)

Norco’s Universal CuffSold on www.amazon.comPrice $12

Pros: • Cheap • Able to accommodate a variety of existing utensils, even toothbrushes • Design for someone with no ability to graspCons: • Too large for some hands • Customers complain that utensil slips out

Abelware Universal Built-Up HandleSold on www.amazon.comPrice $15.50 (Pack of 4)

Pros: • Can be used with a variety of existing utensils including toothbrushes and pens • Dishwasher safe • Large grip surfaceCons: • Hard to get utensils in and out • Too large and bulky – causes embarrassment in public • Objects can fall out • Too lightweight

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Competition

Easie EatersSold on www.amazon.comPrice: $10

Pros: • Designed for children • A more comfortable angle to move food into the mouthCons: • Designed for children – much too small for an adult • Limited color choices

KE Classic Big Grip TablespoonSold on http://www.arthritissupplies.comPrice$8

Pros: • Features bendable endCons: • Difficult to bend • Made to bend once. Multiple bends cause it to snap • Dull knife • Weighted which makes it difficult to control

OXO Easy Grip Flatware SetSold on www.amazon.comPrice:$37

Pros: • Non-weighted • Sturdy build • Works wellCons: • Expensive • Knife has no edge at all • Spoon too large to fit in mouth

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OXO Easy Grip Flatware SetSold on www.amazon.comPrice:$37

Pros: • Non-weighted • Sturdy build • Works wellCons: • Expensive • Knife has no edge at all • Spoon too large to fit in mouth

Competition

Finger Loop Flatware Sold on www.wrightstuff.bizPrice $10

Pros: • Dignified – close to normal silverware look • Easy to learn how to useCons: • Plastic is easily stained

Dining with DignitySold on www.diningwithdignity.comPrice: $23

Pro: • Dignified – close to normal silverware look • SturdyCon: • Very expensive

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Competition

The following is a summary of the pros and cons of competitive products of Ergo-Paint as stated by consumers of those products (consumer reviews).

Adaptive Grip and Easy-To-Grip BrushesSold on www.dickblick.comPrice: $12 per brush

Pros: • Large handle easier for some to gripCons: • Expensive • Not adaptable to a variety of users

NRS Healthcare Adaptive Handle Paint BrushSold on www.amazon.co.ukPrice: $12

Pros: • Large handle easier for some to gripCons: • Expensive • Not adaptable to a variety of users

Popcorn Yubi-fude Finger BrushSold only on Ebay out of Japan Price: $100

Pros: • Allows user to paint with finger • SimpleCons: • Extremely expensive • Novelty product • Can only be purchased direct from manufacturer in Japan

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Competition Summary

There is considerable competition in the product arena for assistive tableware. These products serve a large variety of conditions that users might have, making some competitive products more appropriate than others for each individual. Some users have no strength in their hands, but have strength in their lower arm and upper arm, so a product that attaches to the hand with the use of a cuff or a hand clip are appropriate. Other users others have a decreased level of strength in their hands but are still able to grasp objects if they are large enough, so they might have success using a product that has a large bulbous handle. The marketplace for ergonomic and assistive paintbrushes is wholly unsaturated. This could either signify a big market opportunity or it could be a sign of a lack of demand for this product. This deserves further investigation through surveys, additional product testing, and searching existing intellectual property to see if similar products have been tested in the marketplace before. A thorough patent search will be conducted into both assistive tableware and assistive paintbrushes to determine patentability of Ergo-Ware and Ergo-Paint.

Plans are being made to purchase and acquire the top-performing and most popular competitive products to include in user-testing specifically with Ergo-Ware. These products will also be examined in terms of their manufacturing, ease-of-use, materials, and aesthetics.

When researching consumer reviews of existing competitive assistive tableware, several themes became apparent. It was noted several times that users were embarrassed to use products that were too large, obtrusive, or strayed too far from the appearance of standard tableware. It is important that the final design be able to blend in with existing tableware or to be able to hide within the palm of the hand (as seen to the right). Also noted with competitive products, many of them are using an angle on the traditionally straight table ware to assist users in moving food to the mouth. Through observation, it has been determined that a 45 degree bend works well for most users, but not all users. If this angle can be easily changed, it will be able to accommodate a wider range of users.

Most of these products were sold on Amazon.com with a majority of them also for sale in retail stores, both “brick and mortar” and e-commerce specialty stores. The following is a list of major online specialty retail vendors carrying a large number assistive products (in alphabetical order):

• Activeforever.com • AliMed.com• AllTimeMedical.com• ArthritisSuppllies.com • BettyMills.com• CareGiverProducts.com • ComfortFirst.com• ComfortHouse.com

• DeluxeComfort.com• ElderStore.com• HealthyKin.com • HMEMedicalShop.com • JRSMedical.com• LibertyHealthSupply.com • MedPlusPro.com• Medical Supply Depot

• OTCStore.com • ParentGiving.com• ProTherapySupplies.com• QuikShipMedical.com • Rehabmart.com • VitalityMedical.com • WholesalePoint.com• WisdomKing.com

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Quotes for tooling and manufacturing were obtained from ProtoMold (www.protomold.com):

Manufacturing Costs

Glove

• 1 cavity• A side finish - light bead blast• B side finish - light bead blast• Silicone (Elastosil 3003/30 A/B)

Tool Cost $10,345$4.69 per piece at 10,000 parts

Top Clip

• 1 cavity• A side finish - low cosmetic• B side finish - low cosmetic• ABS Black (Polylac PA-765)


Bottom Clip and Body

• 1 cavity• A side finish - low cosmetic• B side finish - low cosmetic• ABS Black (Polylac PA-765)


Button Receiver

• 1 cavity• A side finish - non-cosmetic• B side finish - non-cosmetic• ABS Black (Polylac PA-765)


Ergo-Paint:

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Manufacturing Costs

Button

• 1 cavity• A side finish - low cosmetic• B side finish - non-cosmetic• ABS Black (Polylac PA-765)


Brush inserts

• Synthetic Brisles• 1” to 3” width• Manufactured without handle

$0.75per piece at 10,000 parts.Manufacturer not located yet.

1/16” x 2” Steel Pin

• Stainless Steel• Stock Part available at

McMaster-Carr

$0.35 per piece at 10,000 parts

Ergo-Paint Continued:

Total Tooling Costs = $32,245

Total Manufacturing Cost per unit = $15.51 (per complete unit at quantity of 10,000 units)

Suggested Retail Price = $62. 04 ($15.51 x 4)Brush inserts sold separately at $3 each

Tooling costs will be covered through crowdfunding and so they are not amortized in the retail price of the system.

At these numbers, it is not feasible as a product on the marketplace. Current redesign is underway to reduce the number of components needed for Ergo-Paint. The redesign will have only three pieces that will require tooling.

Based on current market prices, the target retail price for the Ergo-Paint system (including three brush inserts) will be around $25, meaning the total manufacturing costs needs to be under $7. Even with the redesign, this will be very difficult to achieve.

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Quotes for tooling and manufacturing were obtained from ProtoMold (www.protomold.com):

Manufacturing Costs

Ergo-Ware:

Handle Revision 1

• 1 cavity• A side finish - light bead blast• B side finish - light bead blast• PP Homopolymer (Profax6323)

Tool Cost $3,605$1.76per piece at 10,000 parts

Handle Revision 2

• 1 cavity• A side finish - light bead blast• B side finish - light bead blast• PP Homopolymer (Profax6323)


Spoon/Fork/Knife inserts

• Stainless Steel• 2 different sizes per style• Manufactured without handle

$0.50 per piece at 10,000 parts.Manufacturer not located yet.

TotalToolingCosts=$4,580

TotalManufacturingCostperunit=$2.75(per complete unit at quantity of 10,000 units)

Suggested Retail Price = $11 ($2.75 x 4)

Tooling costs will be covered through crowdfunding and so they are not amortized in the retail price of the system. The retail price of $11 falls within pricing for competitive products and is just under the target mar-ket price of $12.

At these numbers, Ergo-Ware is feasible as a product on the marketplace. Current redesign is underway to further refine the form of the “joystick” handle so that it is more bulbous and conforming to the hand. Ribbing will also be introduced to the handle design so that uniform wall-thickness can be achieved. A manufacturer of the spoon/fork/knife inserts will need to be located to complete the tooling for the handle.

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Additional market research and “next steps” are planned for 2016.

January - March: • Redesign of Ergo-Paint and Ergo-Ware to include left/right-handed, small/medium/large sizes, and forks, knives, spoons (for Ergo-Ware). • Field testing with products: - Focus group studies and interviews: show product to 5 - 10 people familiar with the industry (E.g. patients, doctors, caretakers, retailers of similar products). Implement a survey: 1. 3 things they like about product. 2. 3 suggestions for making it better. 3. Whether or not they think the product is feasible. 4. Additional comments / suggestions. • National Consumer Surveys / Buying Intentions Surveys - sent to 25-30 potential customers in the target market. Would they buy or not? How much they would pay for the product? Where would they expect to purchase the product? This will provide insights into sales and distribution channels. • Call and talk to five or more vendors of similar disability products. Ask them for feedback on product. Send them a product sample.February – April: • Survey existing intellectual property . • Apply for patent protection.March – June: • Plan Kickstarter for Ergo-Ware - Shoot video - Send out press releases • Develop marketing list for Kickstarter success and build potential customer database (business-to-business and business-to-consumer) • Build Ergo-Life website • Attend a trade show for medical supplies and assistive products. Bring revised prototypes: - Disabilities Expo in Chicago June 24-26, 2016. www.abilities.com/expos/July – August: • Launch Kickstarter for Ergo-WareSeptember – October: • If Ergo-Ware Kickstarter is successful: - Plan Kickstarter for Ergo-Paint. - Begin tooling for Ergo-Ware spoons. - Obtain NSF (National Sanitation Foundation) certification. - Begin production for Ergo-Ware spoons. - Launch e-commerce store. - Develop relationships with wholesalers and retailers. October: • Attend the CU Denver School of Medicine “Technology, Disability, and Aging” Expo in October 4, 2016 to learn more about potential design opportunities: www.ucdenver.edu/academics/colleges/medicalschool/programs/atp/Events/AnnualEvents/ atexpo/Pages/AT-Expo.aspx • Start design development of next Ergo-Life products. Concepts already in consideration are zipper pulls and elderly mobility products.

Timeline

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Ergo-Paint

Several more design iterations and more field testing will be required of Ergo-Paint. It is estimated that once Ergo-Paint is redesigned to include fewer components, the tooling costs and manufacturing costs could be cut almost in half, making the new tooling costs to be around $20,000 and the manufacturing costs per unit (run of 10,000) to be around $7.50. Two additional “glove” components will also be designed to account for small, medium, and large hands for additional tooling costs of around $20,000. This estimate of $7.50 per unit does not include packaging or marketing costs. Packaging and marketing costs are estimated to be $1.50 per item in a 10,000 unit run, making the projected total cost of the Ergo-Paint redesign, out the door, to be $9.00. This would still be a little too high for the target retail price of $25. The only sales avenue in which this product would be feasible at these costs, would be direct-to-consumer. Additional redesigns will likely be required to reduce overall costs.

*Note: Product design, packaging design, and engineering costs are not included in financial projections because they are being completed by the team members of Ergo-Life.

Ergo-Ware

Additional design iterations and testing are also required of Ergo-Ware to address manufacturability (wall thickness and draft) and ergonomics (handle shape and angles). Considering the current design and pricing, Ergo-Ware is feasible for the marketplace. The current tooling costs for revision 2 (as quoted above) is $4,580 with individual unit cost of $2.75. There will be potentially be additional tooling costs for forks and knives as well as for left and right handed use to include small, medium, and large sizes. Considering all possibilities, total tooling costs could be as high as $82,440 ($4,580 x 18 variations). The manufacturer’s individual unit cost including packaging and marketing would be $4.25 ($2.75 + $1.50) per fun of 10,000 units. The total retail price would be $17, which is higher than the target retail price of $12, which is believed to be what the market will bear based on competitor pricing.

(After additional iterations of design, testing, feedback and redesign for both Ergo-Paint and Ergo-Ware, additional manufacturing quotes will be obtained from a variety of vendors in the U.S. Overseas manufacturing will not be considered as an option.)

The tooling costs and costs for the initial production run will be raised through the crowdfunding platform of Kickstarter. The founders have experience in backing several successful Kickstarter campaigns that were launched by close colleagues. Of Ergo-Ware and Ergo-Paint, Ergo-Ware is planned to be launched first because the costs are lower and the demand for the product is more established at this point in time. A run of 5,000 right-handed spoons and 500 left-handed spoons will serve as the initial launch and help determine funding needed. 5,000 right-handed spoons will cost a total of $22,235 ($3,235 for the tool and $11,500 [$2.30 per unit], plus $7,500 – [$1.50 packaging and marketing per unit]) and 500 left-handed spoons cost a total of $22,235 ($3,235 for the tool and $5,135 [$2.30 per unit], plus $750 – [$1.50 packaging and marketing per unit]) for a total required amount to launch of $27,370 plus $15,000 for intellectual property protection. A funding goal of $50,000 will be set to include “other” costs such as shipping costs for rewards to campaign backers.

Financial Projections

25

The first round of Ergo-Ware prototypes were produced in October 2013 using RTV (room temperature vulanization) silicone molds and polyurethane castings. Handle forms were first formed quickly in pink expanded polystyrene foam. Next, a high-density polyurethan renshape foam was painstakingly shaped and polished by hand into a master mold (shown to the right in grey). The mastermold was cast in a high commercial grade, 24 hour curable, two-part thermoset silicone plastic made by Dow-Corning Company. A stainless steel, off-the-shelf spoon insert was prepared for insertion into the silicone mold. Alumalite brand, polyurethane was used as the casting material (shown to the right in white).

A silicone RTV mold was also used to produce the original Ergo-Paint prototype in October 2012.

Appendix: Design Iterations

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Additional Ergo-Ware designs were created in Solidworks 3D modeling sofware and then rapid-prototyped on a MakerBot Replicator 2 fused deposition plastic printer. The speed of iterations has dramatically increased when using 3d software and rapid-prototyping. Further designs will be able to be created, printed out, and tested in a relatively short period of time. Ten to twenty new designs and revisions to designs are planned to be tested in the field prior to determining a final design for Ergo-Ware.


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Additional Ergo-Paint designs are being created in Solidworks 3D modeling sofware and will be rapid-prototyped on a MakerBot Replicator 2 fusion deposition plastic printer in both PLA and NinjaFlex ™ (a MakerBot propietary thermoplastic elastomer). The next Ergo-Paint design will move from six components to only 3 components which will reduce manufacturing costs as well as the number of steps needed to interact with the painting tool. Further designs will created, printed out, and tested in in order to gain feedback and continue to iterate.


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Works Cited

Documents

Michael Caston - Business Plan_11.30.2015