UTD Innovate Business Idea Competition

UT Dallas Business Idea Competition Preliminary Submission

Team: Sprout Crutch Attachment !!!!These are the parameters to change when creating or refining a venture idea. Think of it as sketching your idea.

Please address each of the questions below as fully as you are able within the space provided.

!!1. Summary

2. Who is Your Customer?

a. Briefly describe your business idea. Who is the customer? What is their need or problem (their “job to be done”)? What is your offering? How will it solve the customer’s problem?

PROBLEM: Current crutch models are inconvenient because you have to always think about where you want to put a crutch before you let them go. There is currently no cost-effective solution on the market to remedy this problem. IDEA/OFFERING: An attachment to current crutch models that allows the crutch to stand upright and not fall down when crutch is left unattended. CUSTOMER: The customer is any person with an injury requiring the use of crutches. SOLUTION: An attachment to a crutch that is weight triggered to prevent the crutch from falling. !

a. Who is the user? Who will use and benefit from your offering?

Preliminary Submission Form - UT Dallas Bus Idea Competition - Fall 2012 - v2 ! 1September 2012 – v2

VP

CustomerPeople

Offering

Technology/Science

Value Proposition

Business Model


Team: Sprout Crutch Attachment !!!!USER: Anyone requiring the assistance of crutches.

Statistic: An estimated 566,000 people in U.S. use mobility devices such as canes, crutches, and walkers. (H. Stephen Kayle, 2000)

BENEFICIARY:

• Any person requiring a crutch

• Crutch providers (such as hospitals, clinics etc…)

• Crutch manufactures

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a. Who is the economic buyer? Who will make the purchase decision? Who will pay you?



Team: Sprout Crutch Attachment !!!!

3. What does the Customer Need or Want? What is the Problem to be addressed?

• Crutch users via online marketplace (company website, Amazon, etc…)

• Crutch Providers:

o Hospitals

o Private clinics

o Medical equipment retailers

o Medical equipment manufacturers (i.e. PSS, Gulf South)

!a. How many buyers are there? How many in the market area you can realistically

address?

Statistic: Every year about 10 million pairs of crutches are sold in the United States. !!Source: http://www.twincities.com/business/ci_21761042/building-better-crutch

a. What does the customer need or want? What is the problem to be addressed?

The crutch is limited to the person always holding it and the alternatives are expensive; We are addressing this limitation by providing an innovative and cheaper solution for self-standing standing. !For example when a person has to sit down, they have to let go of the crutch. The person has two options, either lay the crutches out on the floor, or find an unobstructed location to lean the crutch on; this is a hassle for the injured. !Other examples are actions that require you to reach out such as: opening a door, grabbing an object, or getting into the car. !

a. Why is the problem important to the customer? How do you know? How have you validated the need?

Crutches were created to help the patient with their daily activities; however current crutch models are restricted to the person constantly supporting them. Removing this restriction from crutches will give patients a greater degree of freedom.



Team: Sprout Crutch Attachment !!!!a. How is the customer currently addressing this problem? What are his/her

alternatives?

There is currently no cost-effective solution on the market that allows the current crutch to self-stand. !ALTERNATIVES: The only alternatives available to customers right now are:

• Crutch harness/belt – $20 - This is a body belt that secures crutches to your body. The problem with this alternative is that it does not allow you to be independent of crutch.

• Knee Walker - $200 • Hands Free Crutch - $350

!a. Why is the problem important to the economic buyer? How do you know? How

have you validated the need?



Team: Sprout Crutch Attachment !!!!Business: Having a practical crutch is a more desirable solution which will drive sales. !Safety: The attachment allows for a safer crutch, by reducing crutch related injuries.

• Handling the crutch becomes a liability, when you have to let go of it (such as opening a door). !

Our solution is much cheaper and affordable to use for more people. Based off of statistics, large percentage of crutch users are low income people.

!(H. Stephen Kayle, 2000) !About 78% of people feel they are limited by the use of crutches:



Team: Sprout Crutch Attachment !!!!!!!

4. What is Your Offering? How will you solve the Customer’s Problem? a. What type of offering is envisioned? i.e., commodity, good, service, or experience?

Goods

a. Name and describe it…

Name: Sprout Crutch

!Description: An attachment that goes to the base of a crutch, and expands/retracts to prevent the crutch from falling down. This attachment works via weight triggered mechanism.

!a. Sketch it… (attach a sketch of the offering if appropriate) !

a. Do you have any core, differentiating technology or science? How will you protect your intellectual property?

The design of this attachment will have to be developed. The IP will be protected via design patent.

a. Are there any legal or regulatory requirements to be addressed?

• CE Certification (for Europe)

• Good Manufacturing Practice (GMP), (US FDA: 21 CFR 820 Subchapter H)

• FDA Class 3 DME Approval (http://tinyurl.com/FDA-medical-devices). Determination of safety and effectiveness.




5. What is your Business Model?

a. What is your revenue model? How will you get paid? !

!b. How will you deliver your product/service? What channels will you use? How will

the channel partners be compensated?

a. How will the user use your offering? Will any special skills or training be required?

No special training is required. The current crutch style has been used for decades and is common knowledge for most of the population. The standing crutch will appear as a normal crutch so it should be intuitive in use.

!The sprout attachment will function via a weight-triggered mechanism. When weight is applied to the crutch (during normal use) the attachment will withdraw. When weight is removed, the attachment will sprout allowing the crutch to stand freely.

!a. Why will the customer/economic buyer choose your solution over the alternatives?

!If a customer is presented with multiple walking aids, they will choose the most convenient aid that will allow them the most function with their condition. A standing crutch will be less limiting for daily activities. Due to increasing costs of health care (medicare requires 20% out of pocket fee), limited coverage by insurance and expensive alternatives: the customer will choose the more cost effective solution.

We plan to outsource manufacturing of attachment (CMTC Solutions), and we will get paid by selling product to distributors and retailers. We will also have an online store to sell directly to customers.

!




!c. What activities will be required to produce/deliver your product/service to the

customer? Which activities will be performed in-house? Which will be outsourced or performed by partners?

!d. What are the key elements of your cost structure? What costs will be incurred in

creating, producing and delivering the product/service to your customer?

!!6. Who are the People?!

We will act like the middleman during the transaction, get the product from the manufacture, and ship/sell to retailer. The channels we will use are: manufacturer, packaging, delivery to distributor, and marketing.

!The manufacturer will be paid per order basis.

The actual manufacturing of the Sprout crutch will be outsourced to another company. Manufactures will be paid per-order basis upfront. !The packaging and marketing will be done in-house. !Inventory will be kept at a storage unit. !Shipping will be done in-house through UPS/FedEx. !Customer support and refund will be done in house.

Key elements

• Production: Cost of 1 Sprout crutch attachment = ~ $3 (in bulk)

• Packaging – Printing and creation of packaging of goods



Team: Sprout Crutch Attachment !!!!a. Who are the people involved in starting this venture? Who is on your team?

David Golynskiy

Shazim Mohammad

a. What relevant knowledge and experience do they bring to the table (technical skills, domain knowledge, startup experience)?

David Golynskiy – Business / Health Care Background , marketing and advertising experience.

Shazim Mohammad – Business / Health Care Background, operations manager.

a. What additional knowledge/skills/experience will you have to add to your team to successfully launch this venture?

• Prototype engineer to finalize design of crutch attachment.

• Customer Service Support Staff

• Shipping/Receiving Manager – Inventory management

• Medical equipment distributor to get product from manufacturer to retailers.

a. Who are your key advisors? What roles will they play?




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7. What will it take to get started?!

• Business advisor to help guide us on key decisions such as selecting manufacturer.

• Software Consultant – custom software for our company operations

• Advertising/marketing professionals



Team: Sprout Crutch Attachment !!!!a. What are the key tasks to be accomplished in order to launch this venture?

(Describe each task and indicate total elapsed time in week from start to launch.)

Task Description Weeks

1 Creation of prototype 4

2 Full Business Plan 6

3 FDA Approval and Licensing 3

4 Find a manufacturer 4

5 Setup packaging/shipment/inventory (in-house) 2

6 Market and show prototypes to potential distributors 10

7 Setup customer support system 3

8

9

10

a. What resources (funding) will be required (just a rough estimate)? How will they be used?

Use of Funds Amount

1 Patent/Design Engineer $10,000

2 File a patent $10,000

3 Testing $2,000

4 Trademark $4,000

5 FDA Approval $62,000

6

7

8

9

TOTAL $88,000



Team: Sprout Crutch Attachment !!!!Bibliography H. Stephen Kayle, P. (2000). Mobility Devices Use in the United States. Disability Statistics

Report , 60.

!
