Business Plan DevelopmentThe Sleep Sound design team team is working in conjunction with a business team. The business team is in association with a special topics course in business plan writing here at the U of Idaho. This page is to serve a dual purpose. It will primarily function as the teams' repository for industry/market research findings which can be used in compiling the final business plan. Secondly, the page will remain available to any parties interested in the development of this plan or any one interested in obtaining some information about the SIDS monitor industry.
Info on the SIDS monitor industry and demand The following is from the American SIDS Institute website: Consider using home monitoring systems (apnea/bradycardia monitors) in an attempt to prevent sudden death in high-risk infants.The risk of SIDS in the following groups exceeds that of the general population by as much as 5 to 10 times:
- Infants born weighing less than 3.5 pounds.
- Infants whose sibling died of SIDS.
- Infants exposed to cocaine, heroin, or methadone during the pregnancy.
- The second or succeeding child born to a teenage mother.
- Infants who have had an apparent life-threatening event.
From http://www.sids.org/
Start Up Cost Estimates Facilities
Land Cost: 18,700 sqr feet for building space and 18,700 sqr feet for parking space @ $4/sqr foot average for southern Idaho as outlined at www.southernidaho.org/utilities/
Building Cost: 18,700 sqr feet total @ $60 per sqr foot as given by www.southernidao.org/businesscosts assume 50 workers at 200sqr feet per worker(standard) = 10,000 2,500 sqr feet for shipping bays 1,200 sqr feet for office and support facilities 5,000 sqr feet for storage
Time Clock estimate from www.item.express.ebay.com
Office Furniture: Quote from 24/7 Workspace http://www.247workspace.com/?gclid=CIefyvin94oCFQ5fggodEnb6pw
Assuming 10 Office workers, 2 executive types and 8 subordinates.
8 247-S44 office chairs 5 247-S24 waiting room chairs, 8 cubicle desk units (4 HMI AO2C Bull Pen (two people per) cubicle units 2 MAiSPACE 247ws-D06-004 office desks 2 247-S42 Executive Chairs 4 247-S17_C Office Guest Chairs 1 The Boxwood Reception desk 1 247-S29 Task chair for receptionist
No Response from 24/7 Workspace as of yet
Office Depot price for
8 office chairs = 8 x 72.99 = ......................................................... 583.92 2 Executive chairs = 2 x 115 =....................................................... 230.00 5 waiting room chairs = 5 x 99.99 = ................................................500.00 4 office guest chairs = 4 x 99.99 = ..................................................400.00 1 Drafting chair for receptionist = .....................................................99.99 10 office computers (average 1,500.00 each) = ..........................15,000.00 1 multipurpose fax, printer, copy machine (Lexmark X422) = 849.99.00 2 office printers for the executives 2 x 129.99 = .............................260.00 10 multi-line phones 10 x 99.99 = ................................................1,000.00
(still missing: 8 cubicle desk units, 2 office desks, 1 reception desk.) rough estimate: 8 x 1,000 + 2 x 1,000 + 1,000 =........................ 11,000.00
Total estimate of office furniture and machines......................... $ 29,923.9
Production Machines and Equip.
25 Industrial Sewing Machines Given 10,000 sqr foot for production area, = 100 foot by 100 foot area. Any length of conveyor belt can not be longer than about 85 feet (seems reasonable).
From ebay, highest found = $1,000.00 So 25 x 1,000.00 = 25,000.00
25 sewing machines dump their product onto one conveyor belt that goes directly to the packaging holding cell. Sewing machines are arranged in a 5x5 grid. Each set of two rows dumps to a shared belt. This belt feeds the main sewing line belt, which then goes into the packaging holding cell. One continuous belt will be used for assembly. 10 workers on each side. The remaining five are hauling boxes of components. Moving the finished boxes into the storage area etc.
7 lengths of conveyor belt required. 30' for assembly line 3 x 50' for sewing shared primary belts 60' sewing main belt 15' packaging holding cell feeder belt 30' packaging exit belt.
Total = 285' of conveyor belt Just from looking on ebay, conveyors go can go from around $12 to $100 per foot. High ball estimate, use the 100. Total = 285 x 100 = $28,500.00
Fork lift = $20,0000 from www.globalindustrial.com Used fork lift prices on ebay (buy now price) 8,500 – 10,000 Low ball this one with 10K.
4 flat bed hand carts for hauling boxes of components into place at the assembly belt. From www.uline.com ..............$275 for the H61 model 1 ton capacity metal hand trucks
Total Production Machines and Equipment....................................................................$53,775.00
Note: packaging is up in the air at the moment, it may just be done by hand or sent somewhere else to be done. I'm sure it takes additional equipment.
Office Supplies Janitorial..........$200 Includes, vacuum cleaner, cleaning solvents, sponges, mops, hand cleaners, buckets, brooms dust pans
Break Room.............$357.97 Includes, coffee pot, refrigerator, communal food stores Paper Goods ...........$317.97 Includes, toilet paper(80 rolls), Paper towels(24 rolls) two paper towel dispensers.
Ink and Toner...........$230.00 Ink for printer/copy/fax machine (2x$45)
Ink for Office printers (4x$35)
..................................................................................................Total Office Supplies = $1,105.94
Business Cards, Stationary and Brochures
-1,000 double sided brochures.................$229.95
-1,000 double sided business cards ...........$50.00
-1,000 stationary sheets............................$139.95
-1,000 full bleed envelopes......................$249.95 Total.....................................................................$669.85
License and Permit Identification from www.idahobizhelp.org
Assume the following, this business is.. -A manufacturing business
-Electronics manufacturing
-Uses employees and independent contractors(for component production).
-It is a general partnership
-Will have an assumed business name (SleepSound) List of required forms and red tape to go through to start an Idaho business with this criteria can be found at http://www.idahobizhelp.org/cf/Result.cfm
Tax Exemption Need not pay tax on any equipment or raw material used in production. -Conveyor belts
-Forklift
-Sewing Machines
-Molds, PCBs, Material, Thread, Elastic, Wire, Snaps, etc. \ This is accomplished by filling out a “production exemption” form and stapling it to the invoice for purchase or give suppliers a filled out ST-101 form as outlined in- http://www.tax.idaho.gov/pdf/SalesTaxBrochures/Prodexemption.pdf
Worker Liability Insurance -If any employee is injured on the job it must be reported to the industrial commission with the “first report of injury” form.
-If a contracted service member is injured working on your contract. Check with the industrial commission, it will be handl on a case by case basis.
-Must maintain a workers compensation policy.
-Employee liability insurance cost varies with the payroll and type of work performed. Check with private or state insurance groups.
Licenses, Permits and Special Regulations No water, air or soil pollution is anticipated to be created by the operation of the SleepSound manufacturing facility. Therefore, no license, permit or regulation need be obtained from the 169/Division of Environmental Quality.
Typical attorney salary for business/industry from http://www.bls.gov/oco/ocos053.htm#nature Consultant salary estimate from http://www.captureplanning.com/articles/10827.cfm? Promotion Tips from http://www.managementhelp.org/pblc_rel/basics.htm
Magazine Advertisement from http://www.americasmedia.com/ ”American Baby” Circulation: 2,000,000
Frequency: 12 Time(s) Per Year
Minimum Words: 14
Cost Per Word: $44.95
Display Rates (cost per inch): $3,230.00 Demographics:
Women = 88%, Age 18-34 = 73.8%, Age 25-49 = 68.8%, Median age = 29.5 years, Median Household Income = $34,194, Any Children = 84.3%, 2+ Children = 46.4%, 3+ Children = 24.1%, Children 2-5 years = 40.5%, Children 6-11 years = 31.9% Description:
American Baby features articles related to childcare, expectant & new parents. It has a controlled distribution to new and expectant mothers + subscribers from OB/GYN offices and pre-natal classes. 56% readers bought a product as a result of seeing it in American Baby.
”American Baby – First Year of Life” Circulation: 1,000,000
Frequency: 3 Time(s) Per Year
Minimum Words: 2 Lines
Cost Per Word: $140.00 per line
Display Rates (cost per inch): $1,350.00 Demographics:
Child under 1 year = 100%, Median age = 26 years, Median House hold income = $32,500, College educated = 69%, Bought an advertised product = 38% Description:
Published by American Baby First Year of Life is an exciting growth and development guide that highlights baby's first year milestones. From the first smile to sitting, crawling, cruising, and finally, walking. Also, included are answers about typical baby-care issues.
“Baby Talk – First Months” Circulation: 1,200,000 Frequency: 3 Time(s) Per Year Minimum Words: 14 Cost Per Word: $23.95 Display Rates (cost per inch): $1,450.00 Demographics:
Distribution: 1,200,000 to new parents in the hospital 24-48 hours after the birth of baby, by nurse via First Moments New Parents Sampler. Description:
This magazing offers in-depth information on all concerns for new parents. *Complete Guide to Breastfeeding *User-friendly: step by step mini guides *Two tear-out charts (immunizations, CPR)
“Baby Talk – First Months – Must See Sites” Circulation: 1,200,000 Frequency: 3 Time(s) Per Year Minimum Words: 2 Lines Cost Per Word: $625.00 Demographics:
Distribution: 3,600,000 to new parents in the hospital 24-48 hours after the birth of baby, by nurse via First Moments New Parents Sampler. Description:
This magazing offers in-depth information on all concerns for new parents. *Complete Guide to Breastfeeding *User-friendly: step by step mini guides *Two tear-out charts (immunizations, CPR)
Assuming we run the same 50 word article with a 1” by 1” logo picture in each of the above magazines: American Baby ........................................................................ 2,247.50 + 3,230.00
“ “ First Year of Life (assume 5 lines)................ 700.00 +1,350.00
Baby Talk – First Months ........................................................ 1,197.50 + 1,450.00
Baby Talk – First Months – Must See Sites (assume 5 lines): 3,125.00 (no picture option)
Total...........................................................................................13,300.00
Laborer Salary Estimate: ($12.00/hr x 40 x 52) x 50 workers = 1,248,000.00
Remaining Office Staff Haven't completely figured out how many of these there will be. For now continue with the original assumption. 10 workers: 2 executives, 1 receptionist, 7 general office workers. Executives: 50K/year
Receptionist: 25K/year
Others: 20K/year
Total for one year = 265,000.00
Insurance Excerpt from http://findarticles.com/p/articles/mi_m0DTI/is_9_28/ai_65283467 Industry experts advise that you consider these factors: * Actual value: When purchasing property insurance, know the true value of your property (what it would cost to replace it). Insure your most vital property for its full replacement value. Because that costs a lot, however, consider insuring only the property you absolutely need to continue running your business. * Lenders' stipulations: If you have a loan on property, the lender usually requires you to maintain insurance. If you don't, the lender may foreclose on the property or purchase insurance itself and charge you an exorbitant price for it. * Absolute minimums: When you're our shopping for liability insurance, check with your current agent to learn whether there are minimum insurance limits set by law. These are usually small, however, and you shouldn't expect them to cover you adequately in the event of a serious accident. Sole proprietorships usually need more liability insurance because the owners run the risk of losing personal as well as business assets. Businesses that are incorporated, however, require less liability insurance. Put simply, if a corporation is sued, only its assets can be seized. * Employees: Are your employees experienced professionals or high school kids? Are they accident-prone? If bad things seem to happen to you or your staff, buy more insurance rather than less. Pamela Rohland writes about issues of entrepreneurship for a variety of regional and national business publications. You Can Do It Yourself Well, maybe. Self-insurance was a trend of a decade ago that didn't travel well into the new millennium. Commercial insurance is now competitively priced, and many companies that were self-insuring gave it up. Still, some businesses--usually large corporations with plenty of cash--prefer to self-insure. According to Tepp, a company can do it one of three ways by: * Agreeing to a large deductible, then using cash or credit to fund it. * Self-insuring up to a certain amount (such as $250,000) then purchasing so-called excess insurance, which kicks in when losses above that amount occur. * Joining with a group of businesses operating in a similar industry or region to establish your own insurance fund. Members pay premiums, plus a fee to join. "Alone, these businesses wouldn't be large enough to self-insure, but together they are," says Robert P. Hartwig, vice president and chief economist for the Insurance Information Institute in New York City. "This way, you all have a stake in each other's businesses, and one bad claim won't wipe out a business. The problem is, if the companies in your group have a bad year, you'll be asked to pay more. If there are 100 companies in your group and 10 have fires and are burned to the ground, the premiums could cost much more than anyone expected." Check this out......................................(the monitor to beat) http://www.respisense.com.au/DynamicPages.asp?cid=69&navID=1 | 