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Answer Upon - Case Study; Analyzing Personal Tech Prototype Project Costs for a Start-up Company
The decision to extend credit is always going to be risky. Giving credit means that you are taking a chance of not being paid. Possibly losing your profit and also possibly losing what you paid for the goods sold to the customer, or losing all your time spent on the service you provided. This can be a disaster for a small business!Here are 3 ways to help in the decision process, and help minimize the risk of extending credit.1. Evaluate the risk factors of each payment type, and decide on which level of risk you are comfortable with.Cash: zero risk (unless you forget to check for counterfeit bills).Credit Cards: fairly safe, the risk is on the credit card company, as long as you follow the procedures of checking the signature & expiration dates. There is a possibility of a charge back, but you will be able to provide proof of a legitimate sale to resolve that. Sales
Not the easiest business in the world, but if Bob will walk before he runs run here, you can see he might find it possible to shatter these goals prior to end of fiscal year one. Should we throw this case study in the trashcan? Is this a feasible endeavor for Bob, father and husband in a family of five? Should we further look at a better case scenario than the one listed which many could consider next to worse case scenario above? Do we sharpen our pencils for Bob and continue, keep assumptions or quit? We need to be honest with Bob too, because "falling in love" with a business or product can make you dead or broke. This should only be about winning and making money, as Bob Smith the founder of the JoggingLight has built up a nest egg for his family, should he risk it all on this new widget; The JoggingLight?
What are your thoughts on this Case Study; in analyzing a prototype project and it’s costs for a Start-up Company? Would you go with Bob’
Customer service, customer care, customer relations or whatever you want to call it has certainly lost its focus – the customer.Horror stories abound about waiting hours to get a simple problem resolved. Customers now expect to be on terminal hold, expect to argue for their rights, expect to deal with someone thousands of miles away in a foreign country who doesn’t understand American culture, and expect to repeatedly ask for the next level manager until they ultimately slam the phone down in disgust, start cussing up a storm or both.The anger and frustration most people feel about being unable to reach someone knowledgeable enough to solve their problem is making some companies reconsider their decision to outsource customer call centers to places where they have little quality control. Companies are finally starting to realize the customer will and is leaving because they don’t feel va
It is wonderful to see so many garage inventors coming up with so many nifty gadgets. But it is also important before you risk you hard earned dollars to be very careful with what you wish for. Bringing even the simplest product to market is not cheap and very few actually succeed. In this case study we will analyze the reality of a seed to weed concept and look into the formation of a small business to make, market, and sell this product. The fictitious product or widget as they call them in MBA school is called a JoggingLight. It is a relatively simple invention, a light, which is powered by the human motion while jogging rather than a battery, so people can work out after dark and have light while they do so. Now then, first we start out with some real world costs below;
The JoggingLight
Financial Requirements
Prototypes:
Parts $ 8,600.00
Modification Costs 2,000.00
Tools 1,250.00
Work Shop Set Up 1,500.00
Misc. Equipment* 2,000.00
Installation 250.00
Back Up Generator (Honda) 1,200.00
Vacuum 200.00
Injection Molding Engineering 12,250.00
Plastic Cover Prototypes 25,200.00
Human Testing 800.00
Ergonomic Testing (Cal TECH) 10,000.00
Research Paper (Interns) 10,200.00
Digital Photos and 3D Renderings 8,800.00
Sales of Original Prototypes……………<2,000.00>
Sub Total $ 82,250.00
Business Set Up:
Incorporation $ 1,500.00
Parasite Lawyer Retainers 8,000.00
Federal Registration of Trademarks 1,875.00
Concept Patent Filings, Modifications 35,000.00
Procurement Business Registration 4,800.00
Miscellaneous Legal Docs 675.00
CA Trade Marks 1,500.00
Patent Defense and Negotiation Fund……...…..35,000.00
Manual Creation for Consumer Product 1,000.00
Manual Creation for Industrial Product 3,000.00
Business Licenses/F.N.S. Etc. 500.00
Travel Expenses for Business Set Up 2,000.00
BBB and Chamber Memberships 1,500.00
Finish Products Liability Insurance (DP) 3,675.00
Business Insurance Down Payments 1,800.00
Sub Total…….…………….$101,825.00
Start Up Costs Before Marketing……..……..….$184,075.00
- - - - - - - - - - - - - - - - - - -
The JoggingLight
Financial Requirements
Post Business Formation and Prototype
Marketing Costs:
Repayment of Loan for Website Creation $ 2,900.00
Television Infomercial 54,400.00
Art Work for Logo 1,400.00
Stationary, Business Cards, Etc 500.00
Additional Website Ongoing Work 8,000.00
Air Time for Product over basic package 20,400.00
Travel Sales Costs…………………………….… 5,000.00
Promotional, Sponsorships……………..………. 5,000.00
Sub Total $93,100.00
Salary Costs:
Bob Smith Founder (one year) $50,000.00
Health Care Costs……………………………….. 6,000.00
Casual Labor 6,500.00
Sub Total $62,500.00
Total Anticipated Start Up Costs:
Total From Marketing and Salary...………… .$155,600.00
Total From Prototype and Legal……… …… $184,075.00
Perfect World Grand Total Start Up Costs… $339,675.00
30% Fudge Factor and Murphy’ism……… …$101,902.50
Real World Start Up Costs……………...….... $441,577.50
- - - - - - - - - - - - - - - - - - -
Indeed what seemed like a really easy to make product turned into a complete nightmare for Mr. Bob Smith the founder who needs a $5,000 per month income to survive or even be able to quit his job. Already now we have the first one year expenses at over $440,000.00, which is not chump change for the guy who just invested a very useful and needed product for walkers and joggers to stay in shape with.
For first year startups considering only the prototypes being sold and no actual unit sales, which is possible, but unlikely we see that what seems like a great product is hardly cheap to make and bring to market. Let’s say for instance that at 50% gross profit margin per widget sold or $15.00 of the $29.95 target price, that means year one to break even would be 24,439 units would need to be sold. That seems plausible. So on a "Go or No Go" choice it appears to be a viable business, even with some mistakes along the way as you roll with the punches and fouls. You could also make a few dollars on the handling labor costs and thus add $5.00 per unit profit there if you did in-house fulfillment and charged $10.00 thus cutting down the number of units need to be sold by approximately 25% to 18,110 units for a year one ROI kill date.
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed.
Not the easiest business in the world, but if Bob will walk before he runs run here, you can see he might find it possible to shatter these goals prior to end of fiscal year one. Should we throw this case study in the trashcan? Is this a feasible endeavor for Bob, father and husband in a family of five? Should we further look at a better case scenario than the one listed which many could consider next to worse case scenario above? Do we sharpen our pencils for Bob and continue, keep assumptions or quit? We need to be honest with Bob too, because "falling in love" with a business or product can make you dead or broke. This should only be about winning and making money, as Bob Smith the founder of the JoggingLight has built up a nest egg for his family, should he risk it all on this new widget; The JoggingLight?
What are your thoughts on this Case Study; in analyzing a prototype project and it’s costs for a Start-up Company? Would you go with Bob’s
Accounting logo designs should comparatively be professional and sober yet somehow attractive. The core stress should be on ‘Professionalism’. Simply, the technique of creating powerful logo designs is to relate them with the organization’s nature. The logo design’s fonts, colors and its over all size should be according to the requirements of the company. In addition, it should be kept in mind that the company’s logo design should not be restricted to one service or product. However, different logos can be designed for different products or services.Accounting is a very sedate profession. Therefore, the advertisement materials for such a profession should also be professional and well designed. The elements of well designed account logos are:Cooperative colors: Using cooperative colors is an important thing while designing accounting logo designs. Cooperative colors include blue, green
Tools 1,250.00
Work Shop Set Up 1,500.00
Misc. Equipment* 2,000.00
Installation 250.00
Back Up Generator (Honda) 1,200.00
Vacuum 200.00
Injection Molding Engineering 12,250.00
Plastic Cover Prototypes 25,200.00
Human Testing 800.00
Ergonomic Testing (Cal TECH) 10,000.00
Research Paper (Interns) 10,200.00
Digital Photos and 3D Renderings 8,800.00
Sales of Original Prototypes……………<2,000.00>
Sub Total $ 82,250.00
Business Set Up:
Incorporation $ 1,500.00
Parasite Lawyer Retainers 8,000.00
Federal Registration of Trademarks 1,875.00
Concept Patent Filings, Modifications 35,000.00
Procurement Business Registration 4,800.00
Miscellaneous Legal Docs 675.00
CA Trade Marks 1,500.00
Patent Defense and Negotiation Fund……...…..35,000.00
Manual Creation for Consumer Product 1,000.00
Manual Creation for Industrial Product 3,000.00
Business Licenses/F.N.S. Etc. 500.00
Travel Expenses for Business Set Up 2,000.00
BBB and Chamber Memberships 1,500.00
Finish Products Liability Insurance (DP) 3,675.00
Business Insurance Down Payments 1,800.00
Sub Total…….…………….$101,825.00
Start Up Costs Before Marketing……..……..….$184,075.00
- - - - - - - - - - - - - - - - - - -
The JoggingLight
Financial Requirements
Post Business Formation and Prototype
Marketing Costs:
Repayment of Loan for Website Creation $ 2,900.00
Television Infomercial 54,400.00
Art Work for Logo 1,400.00
Stationary, Business Cards, Etc 500.00
Additional Website Ongoing Work 8,000.00
Air Time for Product over basic package 20,400.00
Travel Sales Costs…………………………….… 5,000.00
Promotional, Sponsorships……………..………. 5,000.00
Sub Total $93,100.00
Salary Costs:
Bob Smith Founder (one year) $50,000.00
Health Care Costs……………………………….. 6,000.00
Casual Labor 6,500.00
Sub Total $62,500.00
Total Anticipated Start Up Costs:
Total From Marketing and Salary...………… .$155,600.00
Total From Prototype and Legal……… …… $184,075.00
Perfect World Grand Total Start Up Costs… $339,675.00
30% Fudge Factor and Murphy’ism……… …$101,902.50
Real World Start Up Costs……………...….... $441,577.50
- - - - - - - - - - - - - - - - - - -
Indeed what seemed like a really easy to make product turned into a complete nightmare for Mr. Bob Smith the founder who needs a $5,000 per month income to survive or even be able to quit his job. Already now we have the first one year expenses at over $440,000.00, which is not chump change for the guy who just invested a very useful and needed product for walkers and joggers to stay in shape with.
For first year startups considering only the prototypes being sold and no actual unit sales, which is possible, but unlikely we see that what seems like a great product is hardly cheap to make and bring to market. Let’s say for instance that at 50% gross profit margin per widget sold or $15.00 of the $29.95 target price, that means year one to break even would be 24,439 units would need to be sold. That seems plausible. So on a "Go or No Go" choice it appears to be a viable business, even with some mistakes along the way as you roll with the punches and fouls. You could also make a few dollars on the handling labor costs and thus add $5.00 per unit profit there if you did in-house fulfillment and charged $10.00 thus cutting down the number of units need to be sold by approximately 25% to 18,110 units for a year one ROI kill date.
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed.
Not the easiest business in the world, but if Bob will walk before he runs run here, you can see he might find it possible to shatter these goals prior to end of fiscal year one. Should we throw this case study in the trashcan? Is this a feasible endeavor for Bob, father and husband in a family of five? Should we further look at a better case scenario than the one listed which many could consider next to worse case scenario above? Do we sharpen our pencils for Bob and continue, keep assumptions or quit? We need to be honest with Bob too, because "falling in love" with a business or product can make you dead or broke. This should only be about winning and making money, as Bob Smith the founder of the JoggingLight has built up a nest egg for his family, should he risk it all on this new widget; The JoggingLight?
What are your thoughts on this Case Study; in analyzing a prototype project and it’s costs for a Start-up Company? Would you go with Bob’
There’s only a few weeks left until the big meeting. Thus far, your preparations have run smoothly: almost all of your attendees are registered, the flowers are ordered, the band is booked, and the room design is perfect. All you need to do now is make sure your attendees know each other! So, now it’s time to prepare those stinkin’ nametags.Although preparation of your attendees’ nametags is usually the last thing on your to-do list, it doesn’t mean it’s the least important. There are several important nametag issues to consider that will assure the comfort and approachability of your attendees. Ask yourself the following questions, and you will be able to effectively manage your nametag creation and distribution.What is the dress code? Decide on nametag and holder style that will best accommodate your members’ wardrobes, i.e., adhesive, magnet, clip, lanyard.
Finish Products Liability Insurance (DP) 3,675.00
Business Insurance Down Payments 1,800.00
Sub Total…….…………….$101,825.00
Start Up Costs Before Marketing……..……..….$184,075.00
- - - - - - - - - - - - - - - - - - -
The JoggingLight
Financial Requirements
Post Business Formation and Prototype
Marketing Costs:
Repayment of Loan for Website Creation $ 2,900.00
Television Infomercial 54,400.00
Art Work for Logo 1,400.00
Stationary, Business Cards, Etc 500.00
Additional Website Ongoing Work 8,000.00
Air Time for Product over basic package 20,400.00
Travel Sales Costs…………………………….… 5,000.00
Promotional, Sponsorships……………..………. 5,000.00
Sub Total $93,100.00
Salary Costs:
Bob Smith Founder (one year) $50,000.00
Health Care Costs……………………………….. 6,000.00
Casual Labor 6,500.00
Sub Total $62,500.00
Total Anticipated Start Up Costs:
Total From Marketing and Salary...………… .$155,600.00
Total From Prototype and Legal……… …… $184,075.00
Perfect World Grand Total Start Up Costs… $339,675.00
30% Fudge Factor and Murphy’ism……… …$101,902.50
Real World Start Up Costs……………...….... $441,577.50
- - - - - - - - - - - - - - - - - - -
Indeed what seemed like a really easy to make product turned into a complete nightmare for Mr. Bob Smith the founder who needs a $5,000 per month income to survive or even be able to quit his job. Already now we have the first one year expenses at over $440,000.00, which is not chump change for the guy who just invested a very useful and needed product for walkers and joggers to stay in shape with.
For first year startups considering only the prototypes being sold and no actual unit sales, which is possible, but unlikely we see that what seems like a great product is hardly cheap to make and bring to market. Let’s say for instance that at 50% gross profit margin per widget sold or $15.00 of the $29.95 target price, that means year one to break even would be 24,439 units would need to be sold. That seems plausible. So on a "Go or No Go" choice it appears to be a viable business, even with some mistakes along the way as you roll with the punches and fouls. You could also make a few dollars on the handling labor costs and thus add $5.00 per unit profit there if you did in-house fulfillment and charged $10.00 thus cutting down the number of units need to be sold by approximately 25% to 18,110 units for a year one ROI kill date.
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed.
Not the easiest business in the world, but if Bob will walk before he runs run here, you can see he might find it possible to shatter these goals prior to end of fiscal year one. Should we throw this case study in the trashcan? Is this a feasible endeavor for Bob, father and husband in a family of five? Should we further look at a better case scenario than the one listed which many could consider next to worse case scenario above? Do we sharpen our pencils for Bob and continue, keep assumptions or quit? We need to be honest with Bob too, because "falling in love" with a business or product can make you dead or broke. This should only be about winning and making money, as Bob Smith the founder of the JoggingLight has built up a nest egg for his family, should he risk it all on this new widget; The JoggingLight?
What are your thoughts on this Case Study; in analyzing a prototype project and it’s costs for a Start-up Company? Would you go with Bob’
What is the current state of RFID deployment in Rochester?In general, local companies describe a high degree of interest, but only a modest level of integration.Why the discrepancy between what local companies want to do with RFID and what they are actually doing? I spoke with some of Rochester’s early adopters to put a local face on track-and-trace.Leading folding carton manufacturer Diamond Packaging(Henrietta, NY) is currently evaluating available technologies for in-line applications of RFID tags. “Without question, RFID is one of the hottest topics in packaging”, says Dennis Bacchetta, Marketing Manager at Diamond. “Companies are moving from ‘Does it make sense?’ to ‘How can we implement RFID?’ ”Indeed, RFID seems to make sense to many of the markets Diamond serves. Interest in item-level RFID tagging has been driven primarily by the pharmaceutical, personal car
Real World Start Up Costs……………...….... $441,577.50
- - - - - - - - - - - - - - - - - - -
Indeed what seemed like a really easy to make product turned into a complete nightmare for Mr. Bob Smith the founder who needs a $5,000 per month income to survive or even be able to quit his job. Already now we have the first one year expenses at over $440,000.00, which is not chump change for the guy who just invested a very useful and needed product for walkers and joggers to stay in shape with.
For first year startups considering only the prototypes being sold and no actual unit sales, which is possible, but unlikely we see that what seems like a great product is hardly cheap to make and bring to market. Let’s say for instance that at 50% gross profit margin per widget sold or $15.00 of the $29.95 target price, that means year one to break even would be 24,439 units would need to be sold. That seems plausible. So on a "Go or No Go" choice it appears to be a viable business, even with some mistakes along the way as you roll with the punches and fouls. You could also make a few dollars on the handling labor costs and thus add $5.00 per unit profit there if you did in-house fulfillment and charged $10.00 thus cutting down the number of units need to be sold by approximately 25% to 18,110 units for a year one ROI kill date.
If you were able to stay out of our fudge factor, unless needed for real R and D next generation stuff, you might be able to also cut 20% off that $339,675.00 figure or $271,740.00 and made your $15.00 per unit profit plus $5.00 for in-house fulfillment or $20.00 per unit then you could be home free at 13,587 units sold prior to end of year one, from the day you cash the investors or Venture Capital check. That seems very doable indeed.
Not the easiest business in the world, but if Bob will walk before he runs run here, you can see he might find it possible to shatter these goals prior to end of fiscal year one. Should we throw this case study in the trashcan? Is this a feasible endeavor for Bob, father and husband in a family of five? Should we further look at a better case scenario than the one listed which many could consider next to worse case scenario above? Do we sharpen our pencils for Bob and continue, keep assumptions or quit? We need to be honest with Bob too, because "falling in love" with a business or product can make you dead or broke. This should only be about winning and making money, as Bob Smith the founder of the JoggingLight has built up a nest egg for his family, should he risk it all on this new widget; The JoggingLight?
What are your thoughts on this Case Study; in analyzing a prototype project and it’s costs for a Start-up Company? Would you go with Bob’
Project management (PM) is a process comprised of people, systems, and techniques. The goal of PM is to ensure the successful completion of a project within a specified time frame and budget. There are five steps in the PM process: initiating, planning, executing, controlling, and closing. The project leader or manager coordinates the PM process and leads the project team.The value of PM can be realized with projects of all sizes, however the greatest impact will be felt with projects involving multiple parties, departments, and functions. The weakest link in the PM scheme is failure to identify a suitable project leader.Attributes of a good project leader. So what does it take to be a project leader? Of the greatest importance, the project leader must be a true leader. A project leader must assert his or her authority with fairness, compassion, and firmness. A project leade
Not the easiest business in the world, but if Bob will walk before he runs run here, you can see he might find it possible to shatter these goals prior to end of fiscal year one. Should we throw this case study in the trashcan? Is this a feasible endeavor for Bob, father and husband in a family of five? Should we further look at a better case scenario than the one listed which many could consider next to worse case scenario above? Do we sharpen our pencils for Bob and continue, keep assumptions or quit? We need to be honest with Bob too, because "falling in love" with a business or product can make you dead or broke. This should only be about winning and making money, as Bob Smith the founder of the JoggingLight has built up a nest egg for his family, should he risk it all on this new widget; The JoggingLight?
What are your thoughts on this Case Study; in analyzing a prototype project and it’s costs for a Start-up Company? Would you go with Bob’s project or reject it? Do you as a business student think it is feasible? What is the basis for your answer? Are there real life places you could shave costs? Remember it would be better to be wrong on the downside than out of business with an unforeseen blindsided problems that could wipe Bob’s hard earned nest egg out. Think on this.
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